VBRA, the Vehicle Builders and Repairers Association, has warned its members to contact insurers providing them with work to renegotiate their terms of contract after some vehicle manufacturers began slashing their motor trade discounts.
It said some vehicle manufacturers had reduced their parts margins to their main agents, which has impacted on the discounts available to motor traders, including body repair companies.
It urged body repairers who had signed insurer or accident management approved repairer agreements to immediately contact those supplying them with work to renegotiate the terms and conditions of their contracts.
VBRA director general Ron Nicholson, said: "The retained margin from the sale of parts is a vital element of any body repair business as the labour rate has been virtually static over the past 8/9 years.
"Responsible insurers and accident managers will recognise the dramatic financial impact that these sudden changes will have on each and every repair business."
VBRA said it had already written to insurers to warn them of the situation.
