Aftermarket February 2024

implications: “The additional training and certification requirements for technicians could lead to increased service costs, which might be passed on to consumers.” Access is a key issue as well: “The scheme might affect the availability and diversity of repair services, particularly if smaller independent garages face challenges in meeting the new requirements.” Hayley continued: “Businesses are grappling with the need for additional training, certification, and the associated costs, all of which are essential for compliance with SERMI. Another significant concern is the potential for vehicle manufacturers to use SERMI as a tool to restrict access for independent operators, which could upset the competitive equilibrium in the aftermarket sector.” There are expected to be regional variations too, connected to the consequences of Brexit: “In Northern Ireland, bound to follow EU regulations, including SERMI, due to the Northern Ireland Protocol, the situation is uniquely complex. This regulatory difference within the UK underscores the need for a strategic approach to ensure uniformity and compliance across different regions.” Hayley added: “As the industry prepares for this transition, collaboration among various stakeholders, including the development of a UK-specific SERMI scheme, becomes essential. The focus is on easing the sector's adaptation, ensuring access to necessary information, and maintaining a competitive and fair market. The resilience and adaptability of the UK's automotive aftermarket will be key in navigating these regulatory changes, ensuring the sector's sustainability and growth in a rapidly evolving landscape.” Roll-out Neil Pattemore, IAAF and UK AFCAR Technical Director, said: “At last, the roll-out of the SERMI scheme across Europe has begun, which provides a standardised framework and accreditation scheme for independent workshops that is then used by all vehicle manufacturers to provide access for independent operators to security related repair and maintenance information, anti-theft related, which could have wideranging implications for garages. The requirement to have technicians cleared to access security related items for a vehicle could cause major problems for individual businesses and the whole sector if not implemented correctly. “The Department for Transport is proposing that it be a voluntary scheme, but the scheme needs to be implemented correctly and used by all vehicle manufacturers, otherwise independent businesses in the industry could find themselves at a disadvantage.” “The leading aftermarket associations, such as the IAAF, are calling for it to be referenced in legislation, not only for the scheme to be fully implemented, but also because it is likely that the framework will be used for other requirements in the future such as cybersecurity certificates or for verification of technical competency requirements.” On the potential impact of the scheme in its current form, Neil said: “If the scheme is voluntary, then this could mean that vehicle manufacturers do not use the SERMI scheme, but implement their own arbitrary requirements, which may be more restrictive and more demanding.” With the vehicle manufacturers themselves keen to gain a further foothold in the aftermarket, how would the SERMI scheme help independents? Neil observed: “It is important to remember that the SERMI scheme is a sub-set of the rights of independent operators to access repair and maintenance information. These rights are in legislation to ensure that a competitive marketplace that supports consumer choice is possible. With vehicle manufacturers now increasingly active in the aftermarket, providing both direct and indirect services to the vehicle owner or driver, without the SERMI scheme being fully and correctly implemented, there is a real risk that the market could be distorted.” Neil added: “An open discussion needs to take place with the key stakeholders, that would include the aftermarket associations, the organisations that provide the SERMI framework, the vehicle manufacturers and the UK Government, to explore the details of why the SERMI scheme is needed, both now and in the future, and if a voluntary scheme is still a possible solution. They also need to explore what needs to be in place to ensure that the legislative requirements are fulfilled correctly.” Agreement In the UK, the SERMI scheme is set to be delivered for the industry by RMI Standards and Certification, which is a Type A ISO17020 body, owned by the IGA’s parent organisation, the Retail Motor Industry Federation (RMI). IGA Chief Executive Stuart James observed: “It's an RMI-owned company, but it is completely separate and impartial from membership of the trade body. It's a level playing field for all parties involved.” Stuart continued: “The European SERMI standard has been rolled out in a couple of countries so far. It's moving quite slowly at these early stages, but it is embedded in European law and other countries are manoeuvring themselves to pick it up in the near future. As we are now outside of the EU the positioning is 10 AFTERMARKET FEBRUARY 2024 BIG ISSUE www.aftermarketonline.net

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