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PART Act targets catalytic converter theft: why traceability matters across the parts chain

The PART Act aims to curb catalytic converter theft by improving parts traceability and tightening controls on resale channels. For recyclers and repairers, it signals a shift toward stricter documentation, verified sourcing and greater supply-chain transparency, helping reduce illegal flows while increasing confidence in legitimate parts.

Used catalytic converters in a recycling setting, highlighting the components targeted by theft and the need for improved traceability and control across the automotive parts supply chain. — Image credit: Shutterstock

As catalytic converter theft surged across the US in recent years, collision repairers were left dealing with the operational fallout. Vehicles arrived noisy, damaged and often undrivable, while workshops faced high replacement costs, parts shortages and difficult sourcing decisions.

Federal lawmakers are now trying to address the issue through the PART Act, a bill designed to strengthen traceability, tighten record-keeping and disrupt the black market for stolen parts. For repairers, the legislation may not change workshop procedures significantly. But for recyclers, parts suppliers and the wider aftermarket, it points to a more tightly controlled and transparent parts ecosystem.

A theft problem with wider supply-chain consequences

At its core, the PART Act aims to close gaps in how automotive parts, particularly catalytic converters, are tracked once they enter the market.

“The PART Act is about addressing an issue that has impacted consumers, law enforcement and shops for several years,” said Automotive Service Association’s (ASA) Washington, D.C., Representative Robert L. Redding Jr. “Right now, there’s a significant gap in how certain automotive parts are tracked and identified once they enter the marketplace.”

That gap has made it easier for stolen converters to circulate through informal channels. While the theft itself is highly visible, the deeper issue is the weakness it exposes in parts traceability, documentation and verification.

“The timing of the legislation is important,” Redding said. “Vehicles are becoming more complex and more expensive to repair, and supply chain challenges have increased pressure on the parts market. That makes it even more critical that everyone has confidence in the origin and integrity of the parts being used.”

High costs and difficult sourcing decisions

For Dan Stander, chairman of ASA and owner of Fix Auto Highlands Ranch in Littleton, Colorado, the impact of converter theft was immediate and practical.

During the Covid-era surge, his shop saw a sharp rise in theft-related repairs.

“We were doing three, four, five catalytic converters a month, sometimes more,” he said.

Replacement costs were often substantial, typically ranging from $4,000 to $5,000, and in some cases reaching $8,000 to $10,000 for trucks with multiple converters. Some otherwise serviceable vehicles were written off because the cost of replacement alone was too high.

For the parts market, the theft wave also exposed the strain caused by limited OEM availability. With converters on backorder, some repairers were pushed towards low-cost online alternatives of uncertain origin and quality.

“You could find something online for a few hundred dollars, but there’s no way it had the same level of precious metals or met the same standards,” Stander said. “That created real concerns about compliance and performance.”

Colorado’s experience points to what works

Colorado responded to the spike in thefts by tightening controls on recyclers and scrap transactions, including ID verification, transaction records and documentation tied to the vehicle of origin.

According to Stander, the results were striking.

“By 2024, they were saying there was about a 95 percent drop,” he said. “In the last couple of years, I’ve maybe seen one case.”

That matters beyond collision repair. It suggests that stronger controls on the resale and recycling side of the market can materially reduce theft by making stolen converters harder to monetise. For legitimate recyclers and parts handlers, that supports the case for clearer standards and more consistent enforcement.

What the PART Act would change

The legislation focuses on increasing accountability across the parts and recycling chain. Its main elements include VIN- or ID-based marking systems for catalytic converters, stricter documentation and record-keeping requirements, increased penalties for theft and illegal resale, and a federal grant programme to support marking and tracking.

For recyclers and distributors, that would likely mean more formalised processes and greater scrutiny over proof of origin. For repairers, the benefits are more indirect but still significant: better visibility, greater confidence and less exposure to questionable parts.

“The biggest shift would be greater accountability throughout the supply chain,” Redding said. “For repair shops, it’s more about verification and confidence. Shops may need to be more diligent in confirming the source of parts, but in return, they gain more assurance that what they’re installing is legitimate.”

A prevention-focused approach

Stander does not expect major day-to-day disruption for repairers.

“I don’t think there would be any added compliance on our side,” he said. “This really targets the bad actor and how stolen converters are sold or scrapped.”

Even so, the bill sends a broader message to the industry. Traceability is becoming more important, not just for theft prevention, but for confidence in reused, recycled and replacement parts more generally.

Redding said workshops should already be reviewing supplier documentation, intake procedures and record-keeping.

“Awareness is key,” he said. “Shop owners should understand where their parts are coming from and what documentation is being provided by their suppliers.”

For the sector, the PART Act is ultimately less about adding red tape to repairs than about shifting the market away from reactive theft-related replacement work and towards prevention, transparency and supply-chain integrity.

As Stander put it: “We don’t want catalytic converters being stolen just to create work. At the end of the day, this is about protecting the customer.”

Source autobodynews.com