The Automotive Retailers Association says Insurance Corporation of BC's projected $1.3 billion losses by April is not the fault of the repair industry.
President Ken McCormack calls on the Province and ICBC to cut repair costs without sacrificing safety -- and made a number of recommendations.
One of the recommendations is changing ICBC's salvage procurement policies to allow access to 'like new' used parts for vehicle repairs.
" What I can tell you is that between 2011 and 2017 requests by body shops for recycled parts has gone up 37%. In fact satisfying that demand by the body shops has reduced by roughly 3%. It's making it much much more difficult for our industry to access used parts to keep those costs down. "
He says motorists are buying more expensive, technologically-advanced vehicles and the parts to repair these vehicles are more expensive forcing repair shops have to invest heavily in equipment and training to keep up.
McCormack maintains the shops already have low profits and the collision sector has had no substantial increase for the past 8 years -- longer than that for rate increases in other sectors including glass, towing and salvage.
Among other recommendations is increased support for industry-led technician certification programs designed to save ICBC money through efficiencies and quicker turnaround times.