The Progress of this case will be followed from a
CASE DIARY
in chronological order with links to appropriate documents.
Top of Memorandum on the
Racketeering Nature of State Farm's Misconduct
for which this is an exhibit.
The List of Exhibits
Exhibit 6
State Farm Mutual Automobile Insurance Company
One State Farm Plaza
Bloomington, Ill. 61710
G. Robert Mecherle JD, CPCU, CLU
Claims Vice President
Area Code 309 764-2700
November 12, 1990
Mr. Pier Talenti
Detroit Testing Laboratory, Inc.
7111 East Eleven Mile
P.O. Box 869
Warren, MI 48090-0869
Dear Pier:
This letter is an attempt to clarify Detroit Testing Laboratorys
authority as validator of the Certified Automobile Parts Association
program. It is also an attempt to share concerns of the CAPA Board of
Directors regarding our relationship with Detroit Testing Laboratory
and concerning the overall testing program.
First of all, the Board is in complete agreement that under the terms
of our contract with DTL, DTL has the sole authority for determining
whether tested parts are in compliance. Although not covered directly
in the contract, decertification of manufacturer would be implied and
also within your authority, and we believe it is implied from the fact
that plant approval must be given by DTL for a plant to have a part
certified.
In this regard, you have recommended that three manufacturers be
decertified: CFU, Huar Tay and Conjoin Key. That is your decision, and
we presume you will be able to justify it to those manufacturers. It
as been suggested by Frank McGiboney, whose company has had some
experience in dealing with Far Eastern companies, that it would
probably be more tactful to simply require those three companies to
have their plants approved rather than use the negative
"decertification". Until they are approved we would remove all parts
from the directory and he would be instructed not to use any [CAPA]
seals.
The primary concern of the CAPA Board is to make certain that only
high quality parts receive the CAPA seal. The quality of the CAPA
program is being attacked on many different fronts. Rumor has it the
Federal Trade Commission is investigating the CAPA program. We know
that Ford has an outside company testing CAPA parts and plans to
release the results at the NACE Convention at the end of November. Ken
Myers in a press release has already signaled those results wont be
good for CAPA. The Ferrari Brothers, body shop owners in southern
California, at the Collision Industry Conference showed a comparison
of ten CAPA parts (actually, one part was a certified-applied-for
part) versus the OE. The difference between the CAPA parts and OE
[Original Equipment] were spelled out. We believe they are continuing
their comparison in the other areas, and we suspect that they are
financially sponsored by Toyota.
Although numbers of complaints have been increasing, it is very
difficult to judge the significance of this, since we do not know how
many parts are being produced. DTL has been unsuccessful in getting
production counts from the Taiwanese manufacturers, probably because
giving these would be an admission the manufacturers are not buying
the seals.
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Created: February 4, 2000
Last Updated: May 28, 2000