State Combats Illegal Dismantlers

By Staff Writer January 20, 2020

 

The State of California Auto Dismantlers Association is drawing public attention to the need to extend a highly effective DMV strike team program that was established to combat the underground economy of illegal auto dismantlers. This first-in-the-nation program expired Dec. 30 and could be extended provided legislation advances by Jan. 24.

According to California Department of Motor Vehicles (DMV) data there is strong evidence that the size of the underground economy of unlicensed auto dismantlers has surpassed the number of licensed dismantlers.

In 2000, there were 1,552 licensed dismantlers in California.  Today, the number has declined 17.5 percent to 951, even as the number of vehicles has increased.  By contrast, since 2017 the DMV raided 824 unlicensed operations before its “Unlicensed Auto Dismantling Industry Strike Team” program expired. By all accounts, there are hundreds of operations yet to be targeted by the DMV.

The underground economy of unlicensed auto dismantling creates unfair competition, costing legitimate licensed small business owners over $1.5 billion a year in potential earnings and over $100 million in uncollected taxes. Over 360,000 of 1.2 million end-of-life vehicles go unaccounted for each year in California.

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Last modified on Friday, 24 January 2020 15:50