From standardizing procedures to advancing education, training, advocacy, and exploring new business models, the Specialty Equipment Market Association (SEMA) and MEMA Aftermarket Suppliers (MEMA) recently hosted private sector leaders to shape the future of safe, tech-driven aftermarket mobility.

During the symposium held at the SEMA Garage in Plymouth, Michigan, the growing challenges associated with advanced driver assistance system (ADAS) calibrations were addressed, according to a SEMA press release.

SEMA says industry professionals discussed creating a clear, industry-wide roadmap to ensure ADAS functions safely and reliably in every vehicle, whether a car is factory-original or modified in the aftermarket.

A renewed federal regulatory focus on mobility issues, vehicle safety, and rapid advancements in vehicle technology are moving the aftermarket industry to enhance its ability to service vehicles, according to the release.

“SEMA and the aftermarket are traditionally known for performance and style but our legacy of safety innovation runs just as deep,” said Jim Moore, SEMA’s OEM and product development vice president, in the release.

“What starts in the aftermarket often shapes the broader industry. With the rapid adoption of ADAS technology, we have a unique opportunity to lead again — helping define a safer, more adaptive, and more personalized driving experience. The ADAS Symposium brought together innovators, experts, and stakeholders from across the industry to chart a path forward. It’s not just about reacting to change — it’s about taking a leadership role in building a future where advanced safety and aftermarket innovation go hand in hand.”

The National Highway Traffic Safety Administration (NHTSA) finalized a new Federal Motor Vehicle Safety Standard in 2024 that will require automatic emergency braking (AEB) and pedestrian AEB to come standard on all passenger cars and light trucks by September 2029, with the expectation that it will reduce rear-end and pedestrian crashes.

The regulation mandates that all cars be able to stop and avoid contact with a vehicle in front of them up to 62 miles per hour, and for ADAS to detect pedestrians in daylight and darkness. SEMA says this presents a challenge to OEMs, Tier 1 suppliers, and those who modify vehicles.

The standard also requires ADAS to automatically apply the brakes at speeds up to 90 mph when a collision with a lead vehicle is imminent, and up to 45 mph when a pedestrian is detected.

For grassroots racers, many of whom use street-legal vehicles in competition at the local racetrack, this presents a challenge if they are unable to temporarily disable AEB and PAEB systems, the release states.

Addressing challenges associated with ADAS-related issues in the collision repair sector, Peter Reszczynski, president of Fix Auto Chicago, explained in a May 28 Autobody News op-ed why insurers’ capping reimbursement rates for ADAS “threatens the safety of vehicles, the profitability of repair shops, and ultimately the reputation of the collision repair industry.”

“Perhaps the most concerning consequence of capped reimbursement rates is the potential for compromised safety,” Reszczynski wrote. “When shops are pressured to stay within a set price cap, they may resort to cutting corners. This could include rushing through the calibration process or opting for cheaper aftermarket tools rather than using OEM-certified equipment. The result? Inaccurate calibrations that could lead to malfunctions in key safety features like automatic braking, lane departure warnings, or adaptive cruise control. These malfunctions put drivers at risk and expose repair shops — and insurers — to increased liability.”

He added that capped reimbursement rates also don’t account for continual and expensive upgrades of diagnostic tools, calibration targets, and software to keep pace with evolving technology, plus the substantial cost of training technicians to use the new equipment and tools.

“A blanket cap on reimbursement fails to account for these ongoing expenses, discouraging shops from investing in the necessary tools and expertise,” he wrote. “This results in a reduction in service quality, which can have serious safety implications.”

As Reszczynski noted, ADAS are not one-size-fits-all, and neither are calibration requirements. Some vehicle models require more complex calibrations or an entirely different type of calibration, such as dynamic rather than static.

“Capping reimbursement rates ignores these complexities, forcing repair shops to absorb additional costs,” Reszczynski wrote. “This threatens to create a ‘race to the bottom’ where shops are incentivized to cut corners just to break even.”

According to Reszczynski, the caps will also lead to:

• • Erosion of OEM standards: “[C]ertified procedures ensure that the vehicle’s safety features work as designed, preserving the integrity of the vehicle and its warranty. However, adhering to OEM standards can be more expensive than using aftermarket alternatives. A cap on reimbursement rates could push repair shops toward cheaper, less reliable methods, eroding the adherence to OEM standards.”
  • Shrinking pool of qualified repair shops: “Shops that have heavily invested in ADAS calibration technology may find it financially unsustainable to perform these services under a capped reimbursement model. As a result, many high-quality shops may opt out of insurance networks altogether, reducing the overall pool of qualified repair facilities.”
  • Profitability at risk: “The collision repair industry already operates on slim margins… If shops cannot cover their expenses, they may be forced to cut costs in other areas or pass those costs onto customers in less transparent ways.”
  • Liability risks for the industry as a whole: “If a system fails due to an improper calibration, the repair shop could be held liable for any resulting accidents or injuries. What’s more, the liability exposure could extend to the entire network of shops participating in an insurer’s direct repair program. The financial and reputational risks are enormous…”

Reszczynski concludes that instead of reimbursement caps, a collaborative approach is needed that balances cost management with the complexities and safety requirements of ADAS calibrations.

“Insurers and repair shops must work together to ensure that calibrations are performed correctly, using OEM-certified tools and procedures, while still allowing repair facilities to remain financially viable,” he wrote. “The future of vehicle safety depends on our ability to adapt to new technologies like ADAS without compromising on quality or safety.”

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