The Minister of Economy is right: the exorbitant price of spare parts in Israel is part of the cost of living.
The question is, will his initiative lead to a solution? (Photo: ShutterStock)
Economy Minister Nir Barkat is right in promoting the move against the excessive profitability of car importers in the spare parts sector, but it is not certain that the move he is proposing is the most practical, and that the Ministry of Economy is the one who should take care of this consumer problem.
This is one of the well-known secrets of the automotive industry.
While in car prices there is competition between importers which curbs profitability and, unfortunately, is felt less by the consumer due to the high taxation on a new vehicle, the spare parts sector is a different story.
Here the state takes less taxes, and the importers have much more left over.
In every part where the car importer enjoys exclusivity, such as sheet metal parts, engines, gearboxes and passenger compartment components, it was found that the prices in Israel are usually 2 to 5 times more expensive (!) than in Europe and the USA. In every part where there is competition from replacement parts, such as Bumpers, or oil filters, the prices are closer to abroad.
According to the State Comptroller's report from last year, which examined the competitiveness of the automobile industry, automobile importers import and sell 60% of the parts on the market themselves, the auditor also found that the proportion of original parts in Israel is estimated at 61%, compared to 48% in Germany, 29% in France and 27% in the United Kingdom .
A large part of the importers' spare parts price lists is an agreed bluff, as in the case of spare parts purchased by insurance companies.
According to the reviewer, these receive discounts of 50% to 90% from the price list.
Garages also receive discounts, and only the private customers who purchase parts themselves are the suckers who pay the full and exorbitant price.
Exclusive: What does Barkat's spare parts reform mean?
- https://finance.walla.co.il/item/3555005
Minister of Economy, Nir Barkat.
Bottom line, he touched on an important point, but it is not certain that his step will be useful - and in any case, cooperation with the Ministry of Transportation will be required (Photo: Reuven Castro)
Dr. Elon and Mr. Musk?
All of this, as mentioned, is an open secret, and a series of moves made by the Ministry of Transportation in the last decade have not really changed the.
the situation
Therefore, the intervention of another government department may be required.
The problem is that all authorities in the field of vehicle importation, including spare parts, are under the purview of the Minister of Transportation, Miri Regev, and not with Barkat.
The move of separating the import of spare parts from the car manufacturers and the import of the car itself is unprecedented in the world.
This is a very centralized field, and the car manufacturers (abroad) will not want to start dealing with two different importers in Israel all the time. This is a move that will require a change in the traffic regulations and the manufacturers' agreement. They would prefer to drag their feet, and not allow the precedent. And what will the legislator do with a car manufacturer that operates here directly, like Tesla, sells both the cars and the parts itself? Will it be split into Elon Motors and Musk Motors?
so what are we doing?
There are a series of effective moves that can be made quickly and without legislation: for example, obliging importers to display their spare parts price list in a clear and visible way, so that drivers can compare them before buying.
We will explain: today the price lists of the parts that the Ministry of Transportation requires them to present are hidden on their websites, written in codes, and often without the manufacturer's codes - so that an Israeli driver will not be able to check how much the part costs abroad - and after he recovers from his astonishment - he will order it from there himself. In the vehicle department of the Ministry of Transportation They know that they are working on him and the consumers, but nothing is being done.
More in Walla!
B-Cure Laser - does it really help?
The truth is revealed
Served on behalf of B Cure Laser
Transport Minister Miri Regev.
The vehicle division of the Ministry of Transport knows that the importers work for the customers, but do nothing (Photo: Flash 90, Yonatan Zindel)
Between Barkat and Regev
So after we have understood what is not being done - and what is the problem with the proposed idea, although it is aimed at a good goal, here are some things that can be done to reduce the gaps between the reasonable prices abroad and the exorbitant price in Israel: Car importers
should
be required to display their basket of spare parts on their websites and in
showrooms The vehicle will be needed, both original and replacement. We need a government spare parts price list that will allow drivers to compare them. The data exists in the databases of companies that serve the insurance industry, we just need to open them to the public. We
need to make it
easier to import spare parts personally
: limit the fees of shipping companies, and the requirement for approvals from the Technion regarding The safety of the parts. The importers
should
be obliged to sell spare parts to private individuals at the same price they sell them to the insurance companies
. The insurance companies
should
be allowed to offer the insured a repair with used spare parts where this does not harm safety
, while giving a suitable discount to those who agree to it.
Tires and brake pads are not, but doors, 'grill', mirrors, air conditioner vents and headlights, there is no reason not to.
Bottom line, Barkat raised a point here.
Now we have to hope that Miri Regev will not object and the Ministry of Transport will finally start doing and not just talking about lowering the prices of spare parts.
Of money
news
Tags
vehicle
Car importers
Spare parts
Insurance companies
Nir Barkat
Minister of Economy
Miri Regev
