Tire dealers in Ohio continue to fight catalytic converter theft and the financial incentive of selling converters without proof of ownership.
In conjunction with the Ohio Tire & Automotive Association (OTAA), representatives from two of the state’s largest dealerships recently sent letters to the Ohio House of Representatives, expressing their support for Ohio House Bill 110.
Jamie Ward, CEO and president of Cincinnati, Ohio-based Tire Discounters Inc., wrote that the impact of catalytic converter theft “hurts several aspects of the customer service experience, not to mention that adverse financial impact it places on our organization.
“When a catalytic converter is stolen off a vehicle, that customer now must wait for us to order, receive and replace the part, which in some instances can take weeks. Supply chain issues have only added to this problem and (have) increased the overall cost of replacement.
“There is also the financial impact to our organization for replacing stolen catalytic converters,” wrote Ward. “The average cost of parts and labor is between $1,500 to $3,000 to replace a catalytic converter. We have spent anywhere from $18,000 to $36,000 over the past four years on these types of claims. This does not factor in the cost of rental vehicles that we secure for our customers for the period it takes to complete the repairs.
“In addition, several years ago we had the catalytic converters stolen from all our delivery vehicles, which delayed business-essential tire deliveries to our stores. Overall, there is a perverse, detrimental impact on both customers and businesses while these thefts continue to grow.
“We believe removing the financial incentive of selling used converters without proof of ownership to scrap metal dealers … would dramatically cut down on the theft of catalytic converters,” he concluded.
John Marhsall, corporate secretary at Grismer Tire Co., a 24-location dealership based in Dayton, Ohio, wrote that “over the past few years, we have personally observed a dramatic rise in (converter) thefts, including 44 documented incidents impacting just our company alone.
“We have also documented over a hundred thefts impacting our customers. In fact, just last year police apprehended a theft ring in central Ohio suspected of being responsible for over 1,100 of these thefts,” wrote Marshall. “In addition, according to the National Insurance Crime Bureau, the number of catalytic converter thefts reported in claims to insurance companies jumped from 3,389 in 2019 to 14,433 in 2020.
“These thefts impact both our customers and our own fleet vehicles. The cost of replacing a catalytic converter is approximately $3,000. This is a significant cost to customers who are often the main victims of these crimes. When businesses are targeted, not only do companies have to incur the cost of fixing their own fleet vehicles, but they must also bear rising insurance premiums, as well.”
Marshall continued that criminals “have targeted catalytic converters as a valuable commodity they can turn into quick cash by selling these stolen parts to scrap metal dealers. Too often, these transactions are met with little or no scrutiny regarding how individuals came to acquire these parts.”
Legislation “would put in place additional guardrails that would require scrap metal dealers to stipulate proof of ownership when individuals are seeking to sell a catalytic converter. We feel this is a common sense approach to handling these transactions.”
House Bill 110 is currently being heard in the Ohio House Criminal Justic Committee. “There have been three hearings thus far,” says OTAA Executive Director Alex Boehnke.
