President Obama signs Federal Vehicle Repair Cost Savings Act of 2015

On Oct. 7, 2015, President Obama signed S. 565, The Federal Vehicle Repair Cost Savings Act of 2015. Remanufacturing legislation is now law.

The new law requires federal agencies to encourage the use of remanufactured parts in federal vehicle repairs when doing so lowers costs, maintains quality and performance, and does not compromise safety. The bipartisan legislation was introduced by Senator Gary Peters (D-Mich.) and Senator James Lankford (R-Okla.) in February 2015. One month later, in March, Congressman Bill Huizenga (D-Mich.) introduced the companion legislation in the U.S. House of Representatives.

The Motor & Equipment Manufacturers Association (MEMA) and its remanufacturing division the Motor & Equipment Remanufacturers Association (MERA) applaud the efforts of policymakers and industry members for pursuing this effort.

“The federal government spends nearly $1 billion per year on maintenance for federal vehicles, and promoting the use of less expensive remanufactured parts for repairs will cut costs and save taxpayer dollars,” said Senator Peters. The Senator was citing a 2013 Government Accountability Office study which also found that the federal fleet numbers more than 588,000 vehicles.

Steve Handschuh, president and CEO, MEMA, said, “We applaud President Obama for signing this legislation into law. We also appreciate the efforts of Senators Gary Peters and James Lankford and Congressman Bill Huizenga to advance this bipartisan legislation.”

John Chalifoux, president and COO, MERA, stated, “It is clear the leaders of our country recognize the quality, value and sustainability benefits of remanufactured products. This new law will lead to a reduction in government spending, while supporting good jobs in the remanufacturing industry.”

“MERA’s mission is to advance the remanufacturing industry and the business interests of our members, remarked Shawn Zwicker, MERA chairman and global operations leader, remanufacturing, Cummins Inc. “This new law, the favorable ruling last summer from the U.S. Federal Trade Commission, and our ongoing work to advance a remanufacturing standard will help keep the momentum going.”

“I continue to express special thanks to many, particularly Jack Vollbrecht of Remy, Tom Lehner and Ann Wilson at MEMA, and George Zauflik and team at CARDONE, added John Chalifoux. “There is still work to be done, but the passage of this law represents a landmark event for the remanufacturing industry and our members!”