LKQ and Mobileye led the dip today while Tesla was the lone green spot in an otherwise soft session across the board.
Data via Yahoo Finance
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California regulators are sounding the alarm on counterfeit airbags becoming harder to spot on collision shop floors. Meanwhile, insurers just posted their best underwriting year in two decades, and Driven Brands is pushing franchisees toward alternative parts to boost cash.
INDUSTRY
1. Counterfeit airbags pose growing risk to collision shops
California regulators and industry groups are warning that fake safety components are now harder to detect. These parts slip past inspectors and into repairs, exposing shops to liability and drivers to real danger. The issue is accelerating and affects any shop that sources airbags from multiple channels.
Mark says: Establish a single OEM parts supplier for airbags and document it on every estimate and invoice this week.
2. Driven Brands pushes franchise shops toward alternative parts
During Q1 earnings, Driven Brands CEO Danny Rivera told investors the franchise division is focused on cash flow, with a push to use aftermarket and alternative parts. This signals pressure on independent franchisees to cut material costs and accept lower-grade repairs. Shops signing new franchise agreements need to understand the margin expectations baked into the deal.
Mark says: Review your franchise agreement's parts language now if you're signed with Driven Brands or considering it.
3. Insurers post most profitable year in 20+ years
Public Citizen's analysis shows 2025 was the best underwriting year for property and casualty insurers since the early 2000s. That profit cushion strengthens their negotiating position on claims and gives them less incentive to fund proper repairs. Expect harder pushback on supplements and total loss thresholds in the coming months.
Mark says: Prepare OEM-backed supplement language now; insurers won't volunteer to fund safety-critical repairs without push.
4. AASP/NJ advocates to state insurance regulator on repair standards
New Jersey's automotive service provider alliance met with the state's banking and insurance commissioner to push back on claim practices and consumer safety concerns. The meeting signals growing state-level action on repair quality and insurer pressure. Other states are watching how New Jersey moves.
Mark says: Join your state's service provider alliance if you're not already; regulatory momentum is real and local.
The Safety Record has documented cases where decorative steering wheel emblems interfere with airbag deployment and cause serious injury. Amazon and other retailers continue selling these parts unchecked. Shops should flag customer-installed bling during intake and document it on the estimate and in photos.
Mark says: Add a check-in question: 'Have you added anything to the steering wheel?' Document findings in writing on every intake.
Denied a supplement because the insurer won't fund the OEM repair procedure? Submit the claim to our free Calibration Denial Audit. You'll get a one-page rebuttal citing the exact OEM bulletin in 60 seconds. No signup, no pitch.
Published by Absolute ADAS. Mark Fowler, owner. Mobile ADAS calibration in Western Washington. 50,000+ calibrations on the floor.
👀 Tomorrow: watch for state regulators beyond New Jersey to respond on repair standards, plus more on how counterfeit airbag sourcing gets traced back to specific distribution channels.