July 2012 Western Edition by Autobody News

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VOL. 30 ISSUE 6 JULY 2012

Birmingham, AL, Shop Owners Drop State Farm’s Select Service Due to PartsTrader

State Farm PartsTrader Issue Resuscitates Mississippi Collision Repair Association

Several Birmingham, AL auto body shops have dropped State Farm rather than be forced to use its new PartsTrader procurement software within its Select Service Program. Auto body shops in Birmingham are located in one of four test markets where the pilot PartsTrader program, an online parts ordering/bidding software system developed by a New Zealand firm, is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets nationwide: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot.

Anger over the proposed State Farm PartsTrader program revived a sleeping giant in Mississippi, revitalizing the previously dormant Mississippi Collision Repair Association, which met on May 23 for the first time in many years. “Due to many factors, our association as been inactive for almost eight years,” said Chad Smith, treasurer of the Mississippi Collision Repair Association and co-owner of The Mississippi Collision Repair Association met on May Smith Bros. Collision Center 23 for the first time in 8 years, with special guest Attorwith two locations in ney General Jim Hood in attendance. Brookhaven and McComb. “But the State Farm Proposed Parts Procurement See Mississippi Reacts, Page 41 new State Farm program has re-ignited

by Melanie Anderson

According to a report released by the Automotive Services Association (ASA), 17 Select Service shops in Birmingham, AL, removed themselves from the program prior to any registration or use of the application. “We are in a pilot—a pilot is still a process where you are learning,” said George Avery, a Property & Casualty Claims Auto Consultant who has been with State Farm for 33 years. “We had an unfortunate incident in Birmingham because some repair facilities decided to leave the Select Service program before we even got there. They made that decision before the pilot was even over or without even trying the tool, but that was a decision they felt they needed to make, See Birmingham Reacts, Page 34

our association’s fire!” The years may have gone by in comfort and complacency, but the controversy and negativity surrounding the

by Melanie Anderson

Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” but Decried by Insurers Insurance companies are pushing for Rhode Island Gov. Lincoln Chafee to veto a bill passed by the General Assembly which is currently on the governor’s desk. The bill would allow auto body shops to directly sue insurers for reasonable reimbursement. Insurers are urging a veto to prevent a flood of law-

suits. The legislation was originally sponsored by the Auto Body Association of Rhode Island (ABARI) and sought by body shop owners, including the father and sister of state Rep. Peter Petrarca. It cleared its final legislative hurdle at 3:00 am on the final day of

Columnist David M. Brown starts a new series of articles on Nationwide Technician Training for Collision Repair Students. Special to Autobody News see p. 16

the legislative session. Representatives from auto body shops say the bill is about equity. They claim they don’t have a chance to set their own rates because insurance companies refuse to negotiate. “It shouldn’t cost the consumer anything that’s not what it’s about. The

issue is more about getting the insurance companies to actually negotiate as opposed to taking a take it or leave it stance, which some of them currently do,” said Randy Bottella, president of the Auto Body Association of Rhode Island. See Great Consumer Bill, Page 49

We asked BMW North America: What Does it Take to Become a BMW Certified Collision Repair Center? Why there are only 69 in the US... see p. 14

CCC’s Director, Industry Analyst, Susanna E. Gotsch addresses Disruption as the New Normal —Macro Trends in the Industry Special to Autobody News

see p. 24

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Presorted Standard US Postage PAID Ontario, Ca. Permit No. 1

2 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

REGIONAL

‘51 Chevy Truck Stolen from Fresno Body

Shop Crashes . . . . . . . . . . . . . . . . . . . . . . 6

Arizona and California Schools Preparing for

Collision Repair’s Future . . . . . . . . . . . . . . 16

Bill Restricting Access to Parts and Repair

Stolen Iguana Returned to Bellflower, CA,

Auto Shop . . . . . . . . . . . . . . . . . . . . . . . . . 6

Watsonville, CA, Shop Owner Arrested

for Fraud . . . . . . . . . . . . . . . . . . . . . . . . . 12

COLUMNS

Information Advances in CA Legislature . . 33

Evans - Building a Junior Motor Sport Vehicle

Refresher Course . . . . . . . . . . . . . . . . . . 22

Franklin - Maximizing Referrals to Your Shop. 53

CAA San Diego Gets a Robert Rick

CAA SD Holds 18th Annual Golf Tourney . . . 20

for 11-Year-Old Driver . . . . . . . . . . . . . . . 50

Hey Toby - Matrix Wand is a Game Changer . 13

Caliber Collision Refurbishes Vehicle

Sisk - Al Brodeur’s Auto Body Offers Honesty,

Caliber Collision’s Summer Food Drive

Weaver - Take it to the Dealer! . . . . . . . . . . . 31

in San Diego. . . . . . . . . . . . . . . . . . . . . . . . 9

CDI Releases Proposed Aftermarket

Part Regulation. . . . . . . . . . . . . . . . . . . . . . 3

Chapter Meeting Features CA Labor

Enforcement Task Force . . . . . . . . . . . . . . 48

Charles Sawyer, Shop Owner in

Los Banos, CA, Dies . . . . . . . . . . . . . . . . . 6

Chef’s Stolen Lamborghini Found a Year Later . 9 Consumer Watchdog Seeks to Stall Google’s

Driverless Cars on California Roads . . . . . 10

Farmers Insurance Involved in Two Fraud Prosecutions, Two Shop

Inspires Loyalty . . . . . . . . . . . . . . . . . . . . 38

Williams - Downtown Motors of LA—Where

Customers are Familiy . . . . . . . . . . . . . . . 18

Yoswick - SCRS Meeting Discusses Insurance

Regulation, State Farm . . . . . . . . . . . . . . . 52

NATIONAL

Birmingham, AL, Shop Owners Drop State

Farm’s Select Service Due to PartsTrader . 1

Body Shop Does Paint Job on Paint Blob . . . 21 Canadian Shop Comments on Rhode Island

Legislation . . . . . . . . . . . . . . . . . . . . . . . . . 8

Disruption Became the New Normal in 2011. 24

Owners Arrested for Fraud . . . . . . . . . . . . 51

Epidemic of Scrap Metal Thefts Prompts

No Cars Damaged . . . . . . . . . . . . . . . . . . . 4

Ford and State Farm Collaborate on

Fire Disrupts Tuscon Body Shop,

Fire Guts Montana Shop, $200,000 in Damages. 6

Founder of Corliss Paint & Repair in OR

Dies at Age 61 . . . . . . . . . . . . . . . . . . . . . . 4

G&C AutoBody Expands to Ukiah & Fairfield . . 8

New Restrictive Bill. . . . . . . . . . . . . . . . . . 49

Insurance Savings . . . . . . . . . . . . . . . . . . 36

Geico Settles Lawsuit with Gunder’s. . . . . . . 33

Honda to Add Acura MDX to Alabama Plant

for Sales . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Gulick’s Auto Body Founder, Shirley Ann

Iowa Dealership Refuses to Participate

Information Shops Can Use Presented at

Matters of the Heart—Body Shop Owner

Insurance Petition Moves Forward . . . . . . . . . 9

NABC Helps Operation Comfort’s

Gulick, Dies . . . . . . . . . . . . . . . . . . . . . . . . 6

East Bay CAA Meeting . . . . . . . . . . . . . . . 46

Lakeside NAPA Hosts Car Show, Customer Day . 8

Michael Vick Visit Causes Backlash

at Dealership . . . . . . . . . . . . . . . . . . . . . . . 8

Mike Rose Auto Body Opens Ninth Location

in Fairfield, CA . . . . . . . . . . . . . . . . . . . . . . 4

Nevada Gets Disaster Vehicle . . . . . . . . . . . . . 4

in PartsTrader. . . . . . . . . . . . . . . . . . . . . . 10

Saves Adjuster’s Life . . . . . . . . . . . . . . . . 26

Automotivation Secure a New Facility

for Disabled Vets . . . . . . . . . . . . . . . . . . . 12

PartsTrader Issues Open Letter . . . . . . . . . . . 54

Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” but

Decried by Insurers . . . . . . . . . . . . . . . . . . 1

Pajaro, CA, Shop Employees Fight off

SCRS Hosts Repairer Driven Education at

Re-repairs Needed for Bad Welds,

Service, Diagnostic and Mechanical News . . 30

Four Brothers . . . . . . . . . . . . . . . . . . . . . . . 4

SEMA 2012 Featuring “Innovation Forum” 18

No Anticorrosion . . . . . . . . . . . . . . . . . . . . 4

State Farm PartsTrader Issue Resuscitates

Board of Directors . . . . . . . . . . . . . . . . . . . 6

Student Restores Comet for Senior Project . . 21

Richard Mattiussi Appointed to CAWA Ripon, CA, Police’s Bargain: Convicts

Painting Cars . . . . . . . . . . . . . . . . . . . . . . . 4

Sherwin-Williams Offers A+ Workshop

in Anaheim. . . . . . . . . . . . . . . . . . . . . . . . 10

Mississippi Collision Repair Association . . . 1

Unique Lego Car Sold for $1,626 for Charity. 20

What it Takes for a BMW Dealership to

Autobody News incorrectly stated in its sidebar to CAA San Diego Chapter Meeting Goes Nuts Over Efficiency, (p. 46) that Amato’s Auto Body Inc. “is also the only BMW factory trained repair center in San Diego.” The line should have read “...only Aston Martin factory trained... ” Apologies to the BMW CCRC certified centers in San Diego county: BMW San Diego and BMW Escondido, for the error. See p. 14.

Become a BMW CCRC . . . . . . . . . . . . . . . 14

Autobody News failed to properly name and credit “Drew CollisionFix Auto and Glass” in the June, 2012, issue (p. 9) and apologizes for the oversight. Congratulations to Larry Houk, the Collision Center Manager, as well as Ted Stein, Service, Parts and Collision Director, for reaching VeriFacts’ Medallion status for collision repair quality. Fix Auto was instrumental in getting the coveted award.

CDI Releases Proposed Aftermarket Part Regulation

The California Department of Insurance has released its proposed regulations on “standards for repair and use of aftermarket parts.” The proposed changes to the Fair Claims Settlement Practices Regulations largely pertain to the specification and use of aftermarket parts, but also include new requirements for adjusting estimates as well as new consumer disclosures and increased insurer responsibilities in the event a defective part is used for a repair. The first change adds more specific requirements for estimates written by insurers. Current law simply

Indexof Advertisers

for Student . . . . . . . . . . . . . . . . . . . . . . . . . 8

Correction on Naming “Drew Collision-Fix Auto and Glass”

requires insurers to write an estimate that will allow the repairs to be made in “a workmanlike manner.” The newly proposed sections of law would require insurer-written repair estimates to be in accordance with “accepted trade standards for good and workmanlike automotive repairs by an auto body repair shop,” and require that “An insurer shall not prepare an estimate that is less favorable to the claimant than the standards, costs, and guidelines provided by the [estimating software].” See story with more details at Autobodynews.com.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Audi Wholesale Parts Dealers . . . . .48 Automotive ID . . . . . . . . . . . . . . . . . .18 Autowest Chrysler-Jeep-Dodge . . . .11 BMW Wholesale Parts Dealers . . . .43 CCC Information Services . . . . . . . . .5 California Superstores . . . . . . . . . . .17 Capitol Mazda . . . . . . . . . . . . . . . . . .8 Classifieds . . . . . . . . . . . . . . . . . . . .54 Completes Plus . . . . . . . . . . . . . . . .16 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .19 Drew Hyundai . . . . . . . . . . . . . . . . . .9 Elk Grove Toyota . . . . . . . . . . . . . . .38 Enterprise Rent-A-Car . . . . . . . . . . .49 Equalizer Industries . . . . . . . . . . . . .22 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .35 Galpin Motors . . . . . . . . . . . . . .21, 33 Garmat USA . . . . . . . . . . . . . . . . . . .14 Glenn E. Thomas Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . .23 GM Wholesale Parts Dealers . . . . . .44 Henderson Chevrolet . . . . . . . . . . . . .6 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .28-29 Hyundai Wholesale Parts Dealers . .47 Irvine Subaru . . . . . . . . . . . . . . . . . . .4 Kearny Mesa Subaru-Hyundai . . . . .32 Kia Motors Wholesale Parts Dealers .39 Levan Group, Inc. . . . . . . . . . . . . . .31

Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Western

Contents

Correction on Amato’s Auto Body Story May, 2012, Issue

LKQ . . . . . . . . . . . . . . . . . . . . . . . . .55 Maita Subaru . . . . . . . . . . . . . . . . . .10 Mazda Wholesale Parts Dealers . . .46 MINI Wholesale Parts Dealers . . . . .51 Mitsubishi Wholesale Parts Dealers .52 MOPAR Wholesale Parts Dealers . .27 Moss Bros. Chrysler-Jeep-Dodge . . .7 Nick Alexander BMW . . . . . . . . . . . .15 Nick Alexander MINI . . . . . . . . . . . .56 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .40 North County Kia . . . . . . . . . . . . . . .26 Pro-Spray . . . . . . . . . . . . . . . . . . . . . .2 Rare Parts Inc. . . . . . . . . . . . . . . . . .24 RBL Products, Inc. . . . . . . . . . . . . . .36 Replica Plastics . . . . . . . . . . . . . . . .45 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .12 Safety Regulation Strategies . . . . . .34 Shingle Springs Nissan-Subaru . . .37 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .20 Solution Finish . . . . . . . . . . . . . . . . .50 Subaru Wholesale Parts Dealers . . .41 Timmons VW-Subaru . . . . . . . . . . . .13 Toyota Wholesale Parts Dealers . . .53 Volkswagen Wholesale Parts Dealers .48 Volvo Crash Wholesale Dealers . . .42 Weatherford BMW . . . . . . . . . . . . . .25

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 3

Re-repairs Needed for Bad Welds, No Anticorrosion

At the April CIC meeting in Oklahoma City, OK, industry trainer and Autobody News columnist Toby Chess brought a quarter panel removed from a vehicle repaired at a “nationally represented corporate body shop.” Chess said the spot welds used to “attach” the quarter panel didn’t penetrate, and no weld-through primer or corrosion protection had been applied. “You could literally just pull the panel off,” said Paul Val, the general manager of Raintree Autobody in Scottsdale, AZ, which did $3,000 in re-repairs to the vehicle. Val said the shop that had done the original work under an insurer direct repair program paid his shop for the rework with a credit card —and remains on the direct repair program. “Someone is going to get killed in one of these cars,” Val said.

Ripon, CA, Police’s Bargain: Convicts Painting Cars

The Ripon, CA, Police Department has a history of finding bargains, whether for firearms or vehicles. This time it is using convicts from a nearby prison to paint their police cars for a bargain. “Some of the correctional facilities have work programs to keep inmates busy, whether it’s auto body, mechanics, or paint,” officer Alex Burgos said. “The labor through the facility is free.” Though labor is free, paint and decals still cost about a $1,000 per vehicle. Still, the department is paying about a $1,000 per car for the paint jobs, instead of about $4,000. Ripon officials aren’t announcing which prison is doing the work, because that facility has asked to remain anonymous. “They have a set schedule and can only take a certain amount of cars,” Burgos said. “We jumped in line on that.” Four cars are budgeted to be painted this year.

Nevada Gets Disaster Vehicle

Nevada Senator Harry Reid and Washoe County Sheriff Michael Haley unveiled a special communications vehicle that will help officials set up a mobile command center during a disaster. The Critical Incident Response Vehicle was unveiled in Reno. It will carry vital communications equipment and intelligencegathering staff, and is the first of its kind in Nevada. Haley says it’s critical that agencies can communicate with each other during a crisis situation. Total cost for the vehicle is approximately $573,000.

Pajaro, CA, Shop Employees Fight off Four Brothers

Four brothers are accused of assaulting employees of a body shop and a tire business in Monterey County. According to the Monterey County Sheriff’s Office, Jorge Mendoza and his three younger brothers, Jaime, Oscar and Damian, entered Joe’s Body Shop on Salinas Road in Pajaro just before 5 p.m. on May 31. Traffic came to a halt heading into Pajaro as workers at the auto body shop fended off the would-be robbers. The four robbers were fought off by employees, turning the robbery attempt into a free-for-all melée, and sheriff’s deputies responded to sort things out. Deputies arrived and took three of the Mendoza brothers into custody. The fourth- Damianfled the scene and was later found hiding at a nearby residence. The Mendoza brothers are accused of assaulting two of the employees with a steel pipe, a tire iron and a chain. Witnesses reported that Damian and Oscar Mendoza assaulted two more employees next door at Los Pelones Tire Shop. The suspects suffered defensive injuries from the victims, deputies said. The brothers were taken to Natividad medical center for treatment of their injuries.

Mike Rose Auto Body Opens Ninth Location in Fairfield, CA

Mike Rose Auto Body based in Concord, CA, announced the opening of its ninth collision repair facility in Fairfield, CA, on June 18. Mike Rose Auto Body’s acquisition of the new 16,000-square-foot shop, previously known as Watson’s Auto Body of Fairfield, is its second expansion effort in 2012. The company opened a facility in Lafayette, CA, in January. “I wanted to sell the business to an organization that believed in the same principles that we at Watsons have built our reputation on, being very community-minded and putting the customer first. Mike’s Auto Body was the company of choice because they clearly embrace the same principles,” said Scott Watson, former owner of the shop. “We’ve been looking for the right location to expand and Scott Watson has established himself over the last 30 years as a high integrity, community-based quality operator, and that fits our model perfectly. We are in a growth mode right now and diligently looking for quality repair facility’s to join the Mike’s Auto Body team,” said Brennan Rose, vice president of Mike Rose Auto Body.

4 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Fire Disrupts Tuscon Body Shop, No Cars Damaged

A fire started just after 8:30 p.m. on June 13 at Tucson’s Royal Collision Center in the attic space. No one was injured and no cars were damaged. However it took firefighters from two companies nearly two and half hours to put out the fire, Capt. Barrett Baker, a Tucson fire spokesman said. Firefighters from the first engine company checked the building for people, and tried to find the fire but were unsuccessful because there was so much smoke. A ladder crew used chainsaws to cut holes in the roof and found fire in the attic. Ladder trucks sprayed water on the building and firefighters cut open the attic space from several different areas to put out the fire, the release said. The fire was contained to front offices and customer waiting room. The repair shop is fully functional, David Roemer, the collision center manager. “(Customers’) cars are OK and it won’t affect their repairs at all,” he said. But, customers can expect phone and computer delays, Roemer said. Repair work on the front of the building could take about six months.

Founder of Corliss Paint & Repair in OR Dies at Age 61

Former Corvallis, OR, resident James “Jimmy” H. Corliss, 61, of Lebanon died May 21, in Portland. Jimmy was born on Oct. 15, 1950, in Lebanon to Jim and Beverly Corliss. The Corliss family moved to Corvallis when he was six years old. Jimmy was the eldest of five siblings and had his work cut out for him as the leader of the pack of that rowdy crew. He graduated from Corvallis High School in 1968 and went on to study at Oregon State University. Jimmy was proud to have served as a drill instructor in the U.S. Army Reserves. In 1972, Jimmy’s lifelong love of cars and trucks merged with his entrepreneurial spirit, and he opened Corliss Paint and Repair. His endless drive and dedication made his business a success, and he was excited to celebrate the 40th anniversary of the shop, Corliss Collision Carstar, this year. Jimmy met Dawn Sahnow in 1981, and they were married on June 11, 1983. Upon marrying Dawn, he became a father to Brady (then age 8) and Brittany (then age 5). Jimmy valued his membership in the Oregon Auto Body Craftsmen Association.

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 5

Stolen Iguana Returned to Bellflower, CA, Auto Shop

Richard Mattiussi Appointed to CAWA Board of Directors

A man and his pet iguana were reunited and a suspected thief is behind bars nearly six months after the 41/2-foot-long, 30-pound reptile was stolen from a Bellflower auto body shop. The reptile was taken during a burglary that occurred at the shop in early December. Sheriff’s deputies returned the iguana name Lizard to its owner of 17 years. Lizard was taken on Dec. 9 or 10 after someone forced his way into the Performance 4-Wheel Auto Shop at 9817 Park Street in Bellflower, said Lt. Steve Sciacca of the Los Angeles County sheriff’s Lakewood Station. The iguana was the only thing taken during the burglary, he said. Investigators used “advanced investigative techniques” and identified a suspect, 19-year-old Jesus Alcaraz of Downey, who they knew from previous contacts, Sciacca said. Blood found at the crime scene was matched to Alcaraz, and a search warrant was served on his residence, where investigators found the iguana, along with a loaded handgun, marijuana, hash oil and gang paraphernalia, Sciacca said.

Richard Mattiussi has been appointed to the California/Nevada/Arizona Automotive Wholesalers Association’s (CAWA) Board of Directors, representing Merles Automotive Supply in Tucson, Arizona. He was appointed by Chair of the Board, Steve Sharp of WORLD PAC in Newark, CA. “Mr. Mattiussi has a diversified career in the automotive aftermarket industry and currently serves as the Sales and Marketing Director for one of our well respected members in Arizona” said Mr. Sharp. “Mr. Mattiussi’s breath of industry experience will be a great addition to the board of directors and we’ll welcome his contributions to the automotive aftermarket industry and its trade Association out west,” said Sharp. CAWA is an automotive aftermarket trade association, which represents auto parts jobbers, warehouse distributors, retailers, manufacturers and manufacturer representatives in California, Nevada and Arizona. The Association provides education, legislative, regulatory and business support to the industry and its membership.

Charles Sawyer, Shop Owner in Los Banos, CA, Dies

Gulick’s Auto Body Founder, Shirley Ann Gulick, Dies

Charles L. Sawyer of Los Banos, CA, passed away on May 23, 2012, at the age of 88 surrounded by his family. Charles was born October 21, 1923 in Fresno, CA; however, he lived most of his life in Los Banos. The Sawyer family moved to Los Banos when Charles’ father, James, began Jim’s Radiator and Fender Shop. Charles attended Los Banos Elementary and Los Banos High School. He graduated in the Class of 1943. After graduation, Charles was drafted in the United States Army and served in World War II from 1944–1945. He was discharged in 1946 and met Helen Taylor. They were married July 13, 1946, and returned to Los Banos to begin his career in the auto body business and raise a family. Charles worked with his father, James, and ran Sawyer’s Auto Body Repair until his retirement in 1989. Charles is survived by two sons: Steven of Nevada and Randall of Los Banos; grandsons, Zachary and Jacob; a nephew, Tom; a niece, Becky; and many dear friends. He is preceded in death by his wife, Helen.

Shirley Ann Gulick, a 50-year resident of Petaluma, CA, died at home after a battle with lung cancer. She was 77. Shirley and her husband of 55 years, Jerry, opened Gulick’s Auto Body in Petaluma in 1967. Shirley handled all the office work at the auto body shop while Jerry worked on cars. It still does a brisk business today under their son, Ken, who took over in 1998. Born in Modesto and raised there and in Patterson, Gulick met her future husband in 1956 when he was in the Army honor guard stationed at the Presidio in San Francisco. They married the next year in Reno, NV, and had a later ceremony at the Immaculate Conception Catholic Church in San Francisco. A few years later, the couple was driving through Petaluma in a 1947 Ford with their infant daughter, Diane. The young family saw and bought a house for $14,000. “And we’re still in the same house,” Jerry Gulick said. In addition to her husband, Gulick is survived by her children, Diane Gulick of Santa Rosa and Ken Gulick of Middletown; a sister, Dorothy Schollenberger of Santa Rosa; four grandchildren and three great-grandchildren.

6 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Fire Guts Montana Shop, $200,000 in Damages

Fire officials estimate the damage to a Helena, MT auto body shop, Hazen Auto Repair & Custom Exhaust, at about $200,000 after an aggressive, quick-moving fire gutted the Euclid Avenue shop. Flames shot out of the windows and smoke billowed from both ends of the building at around 11:30 a.m. The cause of the fire was a mechanical accident, said Lewis and Clark County Sheriff Leo Dutton. An employee was working on a turbocharger when the heat caused a fire in the cab of the vehicle, he said. The interior of the building sustained extensive damage. Bob Harvey, battalion chief with the Helena Fire Department, said flames were coming out of the windows when he arrived at the shop. Black smoke could be seen from blocks away. Harvey said when firefighters arrived on scene, employees were running in and out of the burning building, trying to salvage what they could, removing motors and other car parts from the building at 2296 Euclid Ave. One of the employees was treated at the scene for smoke inhalation.

‘51 Chevy Truck Stolen from Fresno Body Shop Crashes

A 22-year-old Fresno, CA, man was arrested May 25 on suspicion of stealing a restored 1951 Chevrolet truck after crashing the pickup with police in pursuit. Officers responded to a call about 2:15 a.m. from a security guard who was following a man in the truck stolen from an auto body shop at Greenway Auto Body, 1497 N. Blackstone Ave., police said. As officers tried to stop the truck, the vehicle sped onto northbound Highway 99 at Olive Avenue. The driver attempted to exit at the Shaw Avenue offramp, but instead crash the truck into an embankment. The truck caught on fire, forcing officers to break a window to free the suspect, who resisted arrested. The suspect reportedly stole another vehicle and vandalized others at the dealership. He was treated at Community Regional Medical Center for minor injuries and then booked into the Fresno County jail. The man was arrested on charges that included two counts of stealing a vehicle, six counts of vandalism and a count of resisting arrest, along with outstanding warrants.

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 7

Michael Vick Visit Causes Backlash at Dealership

Caliber Collision Refurbishes Vehicle for Student

A seemingly innocuous visit from Philadelphia Eagles quarterback Michael Vick caused such a backlash for a Toyota dealership in Henderson, NV., that it was forced to shut down the promotional page on its website. Vick, who was convicted of dogfighting charges in 2007, was in town for a youth football camp and stopped by the dealership to sign autographs and meet with fans, the Las Vegas Sun reported. But after the dealership posted pictures of Vick’s appearance on its website, angry comments started flying in. One commenter described Vick as a “dog killer,” while another threatened to beat him up. Others said they would boycott the dealership for sponsoring Vick for promotional and charity events. The dealership was initially just deleting comments but eventually had to shut down the page. “We’re just trying to do something right for the kids and people just forget about that,” said Stephanie Bernas, marketing manager and social media director for the dealership.

Caliber Collision Centers recently refurbished a 2003 Kia Optima that was donated to a high school graduate in Tucson, AZ. The vehicle donation was made through Project Graduation, a national program designed to promote drug and alcohol free graduation nights and keep high school graduates off the roads. Matthew Tyrrell, a 2012 graduate of Ironwood High School in Tucson, received the vehicle after being the grand prize winner in a drawing held after the school’s graduation ceremony. Caliber said the vehicle was purchased with donations from community members and parents of students. Several local businesses also donated services to refurbish the vehicle, including Dent Solutions, Big O Tires, Lefty’s Custom Striping, Mercado Del Rio Car Wash and The Specialist. Joyce Contrades, chair of Project Graduation, said 95 percent of the school’s senior class participated in the event. Caliber said its Tucson location has sponsored Project Graduation since the program’s inception in 2004.

Lakeside NAPA in Tahoe hosted a car show and customer appreciation day on May 31. More than 20 classic vehicles were showcased. Locals, including Charlie Struve from Struve Automotive with his 1956 Ford T-

with his 1964 Chevy Chevelle; and Bob Lopez, a local retired fireman with his 1934 Ford Pick-up and 1940 Ford Woody, all made the show a success. “Locals serving locals” was an appropriate motto for the event. Lakeside gives any classic car enthusiast the opportunity to bring out a cruising ride for the community to admire. “Everyone had to come together to make this happen,” said Bob Pederson, owner of Lakeside NAPA Auto Parts. A group of corporate NAPA Auto Parts members came out to judge the Best of Show contest for all the vehicles there. This year, Gert Lehman of South Tahoe Refuse took the prize with his 1939 Chevy sedan, a shiny, two-tone, silver and burgundy car.

Lakeside NAPA Hosts Car Show, Customer Day

Gert Lehman won Best of Show with his 1939 Chevy

Bird; Rick Taylor of South Y Fireplace with his 1937 Packard; Ryan Feliciano of South Side Auto Body

Canadian Shop Comments on Rhode Island Legislation

John Keen of Downtown Auto Collision Centre in Toronto says that "We could definitely use similar legislation here in Canada. This is exactly what we need,” says Keen. “There is no practical remedy in this province to resolve a claim fairly and in a timely

fashion. Some insurers have created an environment of fraudulent activity that has turned the body shop/claims industry into the ghetto of the car business.” Keen believes that insurance industry manipulation has led to a lot of unsafe vehicles on the road.

8 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

G&C AutoBody Expands to Ukiah & Fairfield

The impact of a tough economy has totaled a number of North Bay automobile body repair shops, but it hasn’t seriously dented growth plans for G&C AutoBody, which has about doubled its number of locations in the past few years. The Santa Rosa-based company opened a 16,000-square-foot store in Ukiah on May 29 and a 10,000square-foot shop in Fairfield on June 4. That follows openings in Novato and Rohnert Park last year and one in Windsor in 2010. G&C AutoBody (707-525-3520, www.gandcautobody.com) now has nine locations, 75 staff and 60 independent contractor repair technicians, repairing an average of 215 vehicles a week. The other locations are in Santa Rosa, Petaluma and San Rafael, which has two shops. The company plans to open a 10th store this year. Company revenue was $22.75 million last year and is projected to grow by 30 percent this year to $30 million. Growth so far this year is 28 percent ahead of the same pace in 2011. “The new shops are going to give us a shot in the arm in the third quarter,” said Shawn Crozat, chief operating officer.

Ukiah and Fairfield are good expansion areas for G&C because competition isn’t as fierce as elsewhere in the North Bay, and asking prices for businesses and real estate isn’t as steep as Napa, where the company has been looking for opportunities to expand, Mr. Crozat said. The Fairfield-Suisun City area with its 130,000 population and Interstate 80 thoroughfare has been a target expansion area long in G&C’s five-decade history. “Fairfield was supposed to be the location of the second shop, but a deal never materialized,” Mr. Crozat said. The Solano County location at 2011 N. Texas St. formerly was Fairfield Auto Body, started by Bruce Schafer in 1980 and operated for three decades. That business had closed when G&C secured the property. The shop now has five employees and was renovated over three months to have a similar exterior and high-end interior look of the other locations. “It’s been crazy, but we’ve kept it all together,” Shawn Crozat said. “We’ll keep growing as long as service and quality don’t diminish.”

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Insurance Petition Moves Forward

A petition seeking heavier regulations within the California insurance industry surpassed the threshold of signatures needed to put it to a statewide vote, moving the initiative a step closer to getting on the November ballot. The petition for the Insurance Rate Public Justification and Accountability Act (IRPJA) garnered more than 800,000 voter signatures, according to Consumer Watchdog, which recently reported the numbers and is spearheading the campaign behind the proposal. The proposal mostly has to do with bringing health coverage regulations in line with the extensive auto insurance regulations already in place in the state. But part of the proposal would also solidify a current ban on rating drivers based on whether they have been continuously covered, which may butt heads with a separate, industrybacked proposal to eliminate that ban. The auto insurance quotes California policyholders get currently may be affected by whether they’ve been insured by the same company for a number of years, but they can’t be affected by whether the applicant had been through a period of being uninsured.

The IRJPA would reinforce that ban. But, if approved to be put before voters, IRPJA would share the same ballot as the Automobile Insurance Discount Act (AID), which was approved by the Secretary of State in January for a vote this November. AID would do just the opposite of the IRPJA’s auto provision: open consumers’ prior coverage history, regardless of carrier, to insurers for rating purposes, which supporters say would be used in discounts for policyholders remaining insured and increase competition between insurers. Consumer Watchdog is one of AID’s strongest opponents, saying that many would see premiums increase as a result of the proposal and that it would make it harder for currently uninsured drivers to enter the market. AID clashes directly with IRPJA, and it’s unclear how passage of both proposals would ultimately be resolved. State law requires 504,000 signatures to bring a measure to the ballot for consideration by voters.

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Chef’s Stolen Lamborghini Found a Year Later

Sometimes, truth is stranger than fiction. A Lamborghini stolen from celebrity chef Guy Fieri was found a year after it went missing. The Lambo was pilfered by a thief who literally rap-

pelled off the roof of a building in order to get access to the Italian Stallion. It seems the perpetrator had a thing for stealthy operations – the ve-

hicle turned up during an investigation that began after a motorcyclist wearing all black fired a gun into a parked car. The gunman was a 17-year-old boy. Fieri’s car was located in a storage container in Point Richmond, CA., along with the boy’s motorcycle and apparent evidence linking him to the shooting. Fieri, for his part, is happy to have his Lamborghini back: “I would like to thank the Marin County Sheriff’s Office and the Mill Valley Police Department for their hard work and effort in the recovery of my car. I’m glad we can put this behind us, and feel better knowing that justice is being served.”

Caliber Collision’s Summer Food Drive in San Diego

Caliber Collision employees at each of the company’s 12 locations in the San Diego area are launching a two-week food drive to help ensure supplies are plentiful throughout the summer for those in need through Feeding America – San Diego. Caliber employees are urging its customers and the public

to contribute a variety of non-perishable food items at any of its auto body repair facilities during its “Rhythm Restoration Food Drive" through June 29. The company has pledged to match a $1 donation for every single item of food or clothing contributed.

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Consumer Watchdog Seeks to Stall Google’s Driverless Cars on California Roads Google’s driverless cars should not be allowed on U.S. highways unless adequate privacy protections for users of the new technology are implemented, Consumer Watchdog said May 31. The nonpartisan, nonprofit group urged the California Assembly to defeat a bill, S.B. 1298, that would allow Google’s driverless cars on California’s roads unless the legislation is amended to provide adequate privacy protection for users of the technology. The bill is now under consideration by the Assembly after the California Senate passed it unanimously. The call to amend or block the bill came in a letter to Assembly Speaker John A. Perez from Jamie Court, Consumer Watchdog president, and John M. Simpson, the nonprofit group’s Privacy Project Director. They wrote: “Without appropriate regulations, Google’s vehicles will be able to gather unprecedented amounts of information about the use of those vehicles. How will it be used? Just as Google tracks us around the Information Superhighway, it will now be looking over our shoulders on every highway and byway.” “Consumers enthusiastically adopted the new technology of the Internet. What we were not told was that our use of the Information Superhighway would be monitored and tracked in order to personalize corporate marketing and make Google a fortune,” the letter said. “Now that Google is taking to the freeways, we must prevent inappropriate collection and storage of data about our personal movements and environment before we allow Google’s robots to take to the roads and report back to the Googleplex. “Google claims its mission is to organize the world’s information and make it accessible. However, when it comes to its operations and plans, it is a black box. We believe Google’s actions demonstrate that it cannot be taken at its word. Consider the WiSpy scandal, the largest wiretapping effort ever, in which Google’s Street

View cars sucked up e-mails, passwords and other data from private WiFi networks in 30 countries around the world… Google kept changing its story and still has not come clean. The FCC fined the company $25,000 for obstructing its investigation of the incident. Google initially said the wiretapping was the job of a rogue engineer, but the FCC has found that, in fact, the company was well aware of the ongoing Wi-Spying activity.” Consumer Watchdog said that Internet technology was implemented with little regard to protecting users’ privacy. The group said society is playing catch-up for the failure to protect privacy. For instance, the Federal Trade Commission has called for the implementation of a Do Not Track system that would allow consumers to let websites know that they do not want data about their web surfing to be gathered. The letter continued: “Driverless technology is not commercially viable yet, but we are certain it will be available sooner than most of us would predict. S.B. 1298 endorses Google’s driverless technology and allows its fleet of robot-driven cars to travel on California’s roads. Sadly, the bill provides no privacy protection for the users of the coming technology. The bill should be amended to ban all data collection by autonomous cars. While we don’t propose to limit the ability of the cars to function by communicating as necessary with satellites and other devices, the collection and retention of data for marketing and other purposes should be banned. Unless the bill is amended, once again society will be forced to play catch-up in dealing with the impact of the privacy-invading aspects of a new technology.” The letter concluded: “S.B. 1298 must be amended to provide that individual data profiles about the use of a driverless vehicle cannot be compiled without the user’s permission and that permission should not be required for use or purchase of such a vehicle.”

Iowa Dealership Refuses to Participate in PartsTrader

Diana Gauthier, Parts Manager for Stew Hansen Dodge Ram Chrysler Jeep in Urbandale, Iowa, wrote an open letter intended for all collision repairers in the state of Iowa.

All who may be questioning our intent can rest at ease. Stew Hansen Dodge Ram Chrysler Jeep will not participate in PartsTrader. I’ve been involved in the collision industry since the mid-'70s, and what I’ve witnessed is the systematic takeover in the industry by insurance companies. We all know insurance companies are not insurance companies. They are, in fact, investment companies that use insurance as a tool to fund their investments, right? Chrysler’s answer to the insurance companies’ demands on the body industry was to step up with pricematching the aftermarket parts. But their response is limited to a few of the body items that are most consistently replaced, and not really a stand that can be taken with the insurance companies insisting on less quality, nonfitting aftermarket parts. We at this dealership have taken a stand. We will not participate in this blatantly biased program and reduce the collision centers’ profit even further with parts bidding. To those col-

lision centers that will be forced by State Farm to take part in the bid process for their parts, you have our support should you refuse—we will continue to conduct our parts business as we have done historically. If our refusal to participate in PartsTrader means you cannot buy parts from our store, we will surely miss talking with you and servicing your business—but we will not have a hand in the further demise of the independence of collision centers across the state of Iowa. I make a statement on most of our mailings and Mopar Magazine that the success of your business is our business. We can’t succeed without all of you; we have a vested interest in making your store as successful as possible. The insurance companies like State Farm are on their own—I refuse to help them take control of your businesses and the industry in general. For what it’s worth, that’s the line we’ve drawn in the sand to help support your stand against this program.”

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Sherwin-Williams Offers A+ Workshop in Anaheim

Sherwin-Williams Automotive Finishes announces the next A-Plus™ EcoLean™ Level 1 workshop will be held July 25-26, 2012 at the Double Tree by Hilton in Anaheim. This exclusive program is offered to collision center owners and dealer managers from across the United States and Canada. In particular, SherwinWilliams’ exclusive EcoLean™ Level 1 workshops are designed to educate attendees about maximizing profitability by improving productivity and

eliminating waste throughout their facilities. “This curriculum was developed specifically with collision shop operators in mind. Through it they will learn practical processes and useful tips on lean production, application in collision repair and methods to make their collision shops more efficient, productive, and subsequently, more profitable,” says Troy Neuerburg, manager of Marketing Business Services at Sherwin-Williams Automotive Finishes.

10 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

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Watsonville, CA, Shop Owner Arrested for Fraud

The Santa Cruz Sentinel has reported that the owner of a Watsonville auto body shop is accused of forging documents, vandalizing cars for profit and charging customers for new parts that were never installed. Martin Calvario Moya, owner of Moya Auto Body Shop at 125 Lee Road, was charged by the District Attorney’s Office after a undercover investigation that began earlier this year. He was arrested the afternoon of June 14 at his business. The investigation was conducted by representatives from the California Bureau of Auto Repair, the Santa Cruz County Auto Theft Unit and the DA’s Investigations Bureau. Moya is also charged with failure to have required workers’ compensation insurance coverage for his employees and with violating probation. He’s scheduled to be arraigned on the charges. The investigation began after insurance carriers and the California Bureau of Auto Repair began receiving numerous complaints from customers. The California Department of Insurance’s records show Moya was previously convicted of one count of failure to have workers’ compensation insurance in June 2009. He was

placed on 48 months of conditional probation and ordered to pay nearly $10,000 in fines. Earlier this year, Moya pleaded no contest to a misdemeanor count of check forgery and was placed on three years’ formal probation. He was also ordered to serve 90 days in County Jail, which was authorized to be served through an alternative custody program. That charge stemmed from his wife’s embezzlement of thousands of dollars from the nonprofit organization Community Bridges. Elena Moya pleaded no contest in April to felony grand theft. She was placed on three years of probation, sentenced to 90 days in County Jail and ordered to pay more than $37,000 in restitution. Prosecutors said that while working at Community Bridges, she took checks from the organization and then cashed them herself, and gave checks to others to cash them. Anyone with information about insurance fraud is asked to call the District Attorney’s Office at 4542400.

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NABC Helps Operation Comfort’s Automotivation Secure a New Facility for Disabled Vets The National Auto Body Council (NABC) announced it has received board approval to help Operation Comfort’s Automotivation program secure a new facility in which it can continue to help disabled U.S. service members and their families through the instruction and practice of proper collision repair. Located in San Antonio, Texas, Operation Comfort complements the rehabilitation efforts carried out by the U.S. Army at the Brooke Army Medical Center (BAMC). As a form of occupational therapy, the organization runs the Automotivation program through which disabled veterans, in many cases those that have lost one or more limbs, are rehabilitated through automotive-related activities such as rebuilding and restoring cars, trucks, and motorcycles. The property Automotivation used for training is being sold, a development made even more disheartening because Operation Comfort used the facility without a rent or utility obligation. Now, a newer, larger building much closer to the hospital is being offered for sale to Operation Comfort and the National Auto Body Council intends to raise the funds for purchas-

ing and renovating the new building. Though fund-raising details are still being finalized, the National Auto Body Council will work with the Collision Industry Foundation, a recognized 501(c)(3) charity. Because the Foundation will be the entity through which money will be raised, those wishing to support Operation Comfort will have the option to make their donation tax deductible. A fundraising committee is being created to seek out contributions at several different levels: corporate donations for vendors, insurers and other interested businesses, as well as body shop level and individual contributions. Matching grants are also being considered in order that businesses and employees, vendors and customers, and other partners can be invited to match funds. “Our battle-tested veterans have given more of themselves for their country than most of us can even imagine,” stated NABC Executive Director Chuck Sulkala. Those interested in making donations for the new Automotivation facility should contact Chuck Sulkala at 888-66-PRIDE or e-mail: chuck@autobodycouncil.org.

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Hey Toby! Matrix Wand is a Game Changer with Toby Chess

Question: How would you like to be able to measure body structure, vehicle sub-frame movement, damaged suspension components and used BOF frame for damage or damaged parts in 20 minutes with a printout and the time of tear down? OK, how about the added advantage of doing it anywhere in the shop? We’re not using any frame-measuring equipment, by the way. Let’s throw in another parameter and do all of these tasks and more with a camera. You say impossible? Up until recently you’d be right but it’s not only possible, it’s here. It’s called the Matrix Wand and it’s a game changer. I was invited to a presentation at the April CIC meeting in Oklahoma City by Jan Srack on the Matrix Wand. It was an interesting presentation, but being the skeptical person that I am, I really questioned this technology. Gary Wano, Jr., owner of GW & Son Collision in Oklahoma

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@yahoo.com

City, arranged for a hands on demo. He had a 2009 BMW 3 Series BMW that took a high hit. Both grilles, headlamps, upper portion of the front bumper and hood were damaged. The vehicle nose-dived under a bumper at less than 10 miles per hour. We inspected the bumper absorber and reinforcement for damage and there wasn’t any. We all concluded that the damage was isolated to the upper structure and there was no lower structural damage. Rob Bailey (from Matrix) took a picture and imported it into his computer and 10 minutes later his results showed that the left lower rail had a sway out 5 mm and sag down of 6 mm. Yeah, that’s what the picture stated, but did the rail move? Gary placed the vehicle on a Celette Bench the next day, and sure enough the rail had moved. Pretty impressive, but I still was not convinced, so I asked if they were doing any other presentations and I was invited to their

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office in Kansas. I spent two days with Rob Bailey, Tom Srack and Ron Chiles (national sales manager) measuring a number of cars. One of the vehicles was a 2010 Ford Escape. We found that the core support was asymmetrical. In other words, the driver’s side of the upper tie bar is 10 mm forward of the passenger’s side. Mitchell data says that length of the upper tie bar is the same. Who was right? I check with Chief and their measurement data also had 10 mm difference on the upper tie bar. I think that Mitchell better re-measure the vehicle and change their date. I told Jan that I would write an article on the equipment, but I would have to use it by myself to validate their claims of ease and accuracy. She loaned me a unit and I took it to Hawaii last month (I conducted a welding workshop and spoke to the Hawaiian Autobody Association) to

See Matrix Wand, Page 36

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What it Takes for a BMW Dealership to Become a BMW CCRC

Some recent controversy about who is a BMW certified training center and why, prompted us to look into exactly what the requirements are for dealerships to gain certification. There are no “authorized” repair centers and only dealerships can become BMW Certified Collision Repair Center (CCRC). At present there are only 69 CCRCs in the US, and only nine in California. The entity that owns the BMW Center must be the same entity and must have the same level of ownership in the applicable collision repair facility. Here you will find a condensed version of the key steps and requirements for a facility to become a BMW Certified Collision Repair Center. BMW requires each and every CCRC in the program to follow these stringent criteria and follow these guidelines. BMW CCRC’s are expected to repair BMW vehicles back to BMW specifications using only Original Parts and following the repair procedures stated by BMW. With general technician training, technicians are recognized for attending the training courses by BMW North America but they are not [necessarily] BMW Certified Technicians. They have a recognition plaque of all the training courses they have attained but it is not a Certification plaque. If the technician goes from a CCRC to another repair center it does not mean that shop will now have BMW Certified Technicians. The only time the word “Certified” is used is when the facility becomes part of the BMW Certified Collision Repair Center program. That means that the BMW CCRC has met all the requirements and goes through an annual Re-certification process. 2011 BMW Certified Collision Repair Center Program The BMW Certified Collision Repair Center Program is a voluntary, no fee program developed to ensure that BMW clients receive a first -class customer experience. The Certified Collision Repair Center (CCRC) Program is designed to enable BMW Centerowned collision repair centers to: ● Focus on achieving a high level of profitability; ● Operate more efficiently; ● Ensure vehicles are repaired to BMW specifications (as outlined in the Technical Information System, or

ISIS/ISTA); and ● Ensure vehicles are repaired using only BMW original parts, approved paint, materials, tools, and equipment.

CCRC Program Benefits During initial certification (and throughout the certification and re-certification process) BMW NA’s vendor, Summit Consulting, Inc. (“Summit”) provides several types of 100% BMWfunded support to help a CCRC enhance its collision repair business. The objectives of this support include: ● Identifying market opportunities to generate revenue; ● Establishing the CCRC’s current collision revenue performance; ● Closing the financial gap between the CCRC’s market revenue opportunity and its actual revenue performance trend on a per collision repair basis; and ● Identifying required tools / equipment needs, while assisting CCRCs to project the recommended capital investment levels.

Annual CCRC Managers’ Meeting The CCRC management should actively participate in the Annual BMW CCRC Managers’ Meeting. By attending this event, a CCRC manager benefits by: ● Receiving the latest BMW branded collision repair business tools; ● Reviewing the trend of CCRCs’ collision process and profitability performances; ● Learning and sharing key collision repair service strategies focused on improving profitability; ● On-going professional training; ● Management Roundtable Discussions—These facilitator-led group discussions are designed to allow CCRC participants to share proven techniques and best practices to grow the collision business both in parts sales and repair revenue; ● 4 Stage Market Network Development Financial Analysis Tool—This four stage tool provides enrolled CCRC managers access to: ▬ Identify market opportunities to generate revenue; ▬ Establish the CCRC’s current collision revenue performance; ▬ Close the financial gap between CCRC’s market revenue opportunity and its actual revenue performance trend on a per collision repair basis; ▬ Identify recommended capital in-

14 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

vestment levels and required tools and equipment needs.

Collision Repair Parts Incentive Program All BMW Centers have the opportunity to open a BMW CCRC. BMW NA offers all CCRCs the opportunity to participate in the monthly Collision Repair Parts Incentive Program. Eligible BMW CCRCs can earn a 2% rebate on the dealer cost of all original BMW parts purchased from BMW NA and used by the CCRC for non-warranty or non-maintenance collision repairs. The BMW CCRC is eligible for the rebate only if the CCRC remains compliant with the CCRC Program.

CCRC Promotional Material ● BMW NA CCRC plaque and annual re-certification endorsement slugs; ● CCRC Customer Creed plaque; ● BMW branded marketing materials; ● BMW NA approval to use official CCRC signage.

Additional CCRC Benefits In addition to the benefits outlined above, CCRC Program Benefits include:

● Accessing & using customized BMW CCRC marketing materials; ● Utilizing BMW approved collision repair tools and equipment; ● Making use of the latest BMW branded collision repair business tools; ● Participating in body & paint technical and non-technical training courses; ● Efficiency improvement by using BMW repair specifications (ISIS/ISTA), the flat rate manual (KSD), and electronic parts catalog (EPC) for repairs; ● Utilizing an approved refinishing system of the BMW Group; ● Participating in the 2011 Profiles In Achievement (PIA), which includes an incentive program for CCRC managers; and ● CCRC’s premium access to Roadside Assistance. Program Participants Successful results in the CCRC Program rely heavily upon the CCRC’s professionals and the culture in which they operate. These individuals are responsible for adopting the processes See BMW CCRC, Page 42

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 15

Arizona and California Schools Preparing for Collision Repair’s Future by David M. Brown

Two schools in Arizona and California are prepping the future of the industry. In Mesa, AZ., the collision repair program at The East Valley Institute of Technology is the state’s only high school-level coursework certified by the National Automotive Technicians Education Foundation, the independent non-profit based in Leesburg, VA. Since 1983, secondary and post-secondary automotive-training programs in 50 states have been accredited through NATEF standards. And, in Sacramento, the Universal Technical Institute campus offers its Collision Repair & Refinish Technology (CRRT) program, preparing students as collision repair and refinish technicians. Arizona’s first joint technological education district, EVIT, offers occupation training for high school students at 10 school districts in the expanding Phoenix East Valley. The main 65-acre main EVIT campus is at 1601 W. Main Street, and the extended campus, 6625 S. Power Road. The school’s areas of certification include non-structural analysis/damage repair and painting and refinishing. Students in the two-year program develop auto body repair and refinishing skills, learning to perform jobs from detailing to assisting with painting in a contemporary paint booth. The main campus facility includes two frame racks, two downdraft bake spray booths and two downdraft prep stations. The two-year program, with six elective credits toward graduation, teaches students collision and customizing skills, using I-CAR guidelines. The course started in the early 1970s when it was offered at Mesa Vo-Tech, and for more than 20 years EVIT has offered it to aspiring technicians. “The format of their curriculum is exactly like the curriculum used by ICAR to certify technicians already in the industry,” says Instructor Neil Carroll, custom paint instructor and an EVIT teacher for 10 years. “Students learn the basics with emphatic hands-on lab practice.” Formed by the collision industry in 1979, the not-forprofit Inter-Industry Conference on Auto Collision Repair focuses on helping the industry achieve a high

level of technical training. NATEF requires many items, such as a facility and equipment and

Steve Roger, Collision Repair Center manager, who notes the appreciation as well of Ed Baker, the dealership’s

Repair & Refinish Technology Program, accredited by NATEF, ACCSC (the Accrediting Commission of Career Schools and Colleges), the State of California Bureau of Private Postsecondary Education and the U.S. Department of Education. The Houston campus of UTI, which opened in 1983, also offers the program. Nationwide, nine UTI locations provide automotive-education courses, and two motorcycle and/or marine technology. “Our program is designed to serve industry need,” says Don Black, education director for the Sacramento campus. “We partner with industry and I-CAR regarding our curriculum, facility, education delivery, training aids and lab activities to ensure that we are providing the most relevant technical training that will allow our students the greatest opportunity for success in the collision-repair industry.” He adds,”It is this focus on industry and partnership with industry that makes Universal Technical Institute the best choice for technical training

Collision Repair & Refinish Technology at UTI. Image courtesy UTI

that teachers must be ASE certified, he says, noting his Master’s Technician certification through Automotive Service Excellence as well as Automotive Youth Education Systems certification (AYES). For the current school year, Carroll is guiding 71 high school students, divided between morning and afternoon sessions. In addition, an adult collision-repair program in the evenings, through the School of Adult Education, is administered by a different instructor. In Arizona, students compete in the SkillsUSA competition where EVIT wins the majority of the medals annually, Carroll says. Five EVIT students this year competed against 49 students statewide and won gold, silver, top estimator and other awards. Last year, a female student won bronze—the first female medal winner in state competition—and this year a female student won fourth, missing bronze by only 16 points. In 1995, a student won silver and, about four years ago, another student took bronze at National SkillsUSA. In addition, last year 11 students participated in internships, and there are currently 12 on internships this year, nearly double the national average, Carroll says. One of the oldest Ford dealerships in Arizona, Berge Ford in Mesa, employs a number of EVIT students and has been impressed. “They have found a great starting point here,” says

16 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

service director. “The industry is in great need of qualified entry-level personnel.” The Sacramento campus of Universal Technical Institute, founded in Phoenix in 1965, offers a Collision

See Preparing the Future, Page 40

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Distinctive Dealerships

Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com.

Downtown Motors of LA—Where Customers are Familiy with Larry Williams

This month’s Autobody News distinctive dealership is Downtown Motors of L A. The parts manager is Jorge Valladares, and they provide parts for Porsche, Volkswagen, and Audi for the greater Los Angeles area. I spoke with Jorge recently, and found once again, the qualities that make a successful wholesale parts leader. His dealership is a solid, dependable establishment, a fixture in Los Angeles since the 1960’s. A loyal customer base has always permitted this dealer to prosper, even in hard times. The people who work here are as dependable as the dealership, always available for the needs of their customers. Jorge started as a parts driver here, about twenty-five years ago. He now has been manager for over fifteen years. That seems to be a feature of all our best dealerships, leadership with a career, not just a job. The same quality of dependability extends to the employees as well.

You will find over a hundred years of experience with this team, another feature of a distinctive dealership. All of our best dealers recognize the ben-

a positive attitude and a real bond with their customers. Every one has a different name for this feeling; Jorge’s word was “family.” He used this word not just for his team, but for his customers as well. Many of the surrounding shops have been customers of Jorge since he first delivered parts to them. This long term commitment to providJorge Valladares with (r to l) Fausto, Manuel A., Heidi, Joel, Alicia ing quality service is and Manuel C. a feature of all of efits of having quality employees. our distinguished dealerships. These parts experts have all the Downtown Motors of LA has three knowledge and experience needed to delivery trucks, on the road twice provide their customers with the best daily to all areas of Los Angeles. Everyone here works together, anservice possible. swering phones, pulling orders, inBut all the dependability and experience in the world will not ensure voicing tickets, whatever is necessary to provide quality service. Jorge’s goal success. All of our distinctive dealerships share two additional key features; is not to be the biggest, but “the best.”

SCRS Hosts Repairer Driven Education at SEMA 2012 Featuring “Innovation Forum”

The Repairer Driven Education (RDE) series, presented by the Society of Collision Repair Specialists (SCRS), is returning to the SEMA Show for the third consecutive year. With courses individually selected or crafted by the SCRS, the program includes nearly two dozen sessions taking place during the SEMA Show Tuesday-Friday, October 30–November 2, 2012, in Las Vegas. The headline session, “Game Changers–Innovation Forum,” takes place November 2 and features industry leaders discussing what innovation can look like in the collision repair business and how it’s becoming core to business strategy. Other sessions explore how digital marketing, social media and related tools can increase customer retention and loyalty, and how new metals being used in the construction of today’s vehicles are impacting the repair process. SCRS Executive Director Aaron Schulenburg said, “The RDE series is a tremendous educational opportunity for the collision industry, providing an accessible and affordable education on topics that address issues that truly matter to those working in repair facilities. We were fortunate to be able to present the series at the last two

SEMA Shows, and look forward to expanding the program this coming year.” SCRS partnered with show organizers to present the RDE program at the 2011 SEMA Show. The annual trade show, which saw nearly 30 percent more collision repair attendees compared to the previous year, brings manufacturers of automotive parts and accessories together with industry buyers from all over the world. Manufacturers represent every segment of the automotive specialty equipment market, including restyling, hot rod, trucks and SUVs, and racing and performance. “The SEMA Show features products from every automotive niche, which makes it the ideal venue for buyers to discover new markets,” said Peter MacGillivray, SEMA VP of events and communications. “Because the collision market is so closely related to many of our traditional market segments, it’s become one of the fastest growing areas and is of huge interest to our attendees.” In addition to the SCRS RDE series, the SEMA Show will feature nearly 60 educational seminars throughout the week.

18 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

His team feels this way too, and you will get this quality treatment no matter who you talk to. The Audi department consists of Fausto, Manuel A., Heidi, Joel, Alicia and Manuel C. On the Volkswagen side we have Erasmo, David, Carlos, Maggy, Rene and Clemente. Yes, that’s twelve people ready to answer the phone whenever you call. The last thing I want to leave you with is a message from Jorge. He wanted to tell all his customers a simple “Thanks.” He said “I feel like they are all my family.” I guess when you deal with someone for twenty-five years they do become a member of your family. I welcome this dealer into our family, the Autobody News Distinctive Dealership family. Downtown Motors of L.A. 1900 S. Figueroa St. Los Angeles, CA 90007 213-747-7246

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CAA SD Holds 18th Annual Golf Tourney The CAA San Diego Chapter held its 18th Annual Golf Tournament Saturday, June 2nd at Twin Oaks Golf Course in San Marcos. The event was a great success with over 100 players participating in perfect weather. Noted Hop Sanchez (Finishmaster Inc.) and CAA San Diego Treasurer, “It was another great day

Low Gross 2nd Place: Team I-CAR – Wayne Krause, Mark D’Angelo, Gene Lopez, Ryan Swanson Low Gross 3rd Place: Team Milo Johnson AB / Henson & Son – Ross Johnson, Jeff Johnson, Kirk Henson, Cory Clarke Net / Peoria 1st Place: Team I CAR – Wayne Krause, Mark D’Angelo,

Shon Craft, CAA San Diego Chapter President (far left), presenting Low Gross 1st Place trophy’s to Team Toyota Carlsbad – (l to r) Marty Edmonds, Rudy Romero, Michael Heller

with a group of fun-loving auto body industry people. Special thanks to Dee and her group from Enterprise for all their help in making this event a success.” And the winners were: Low Gross 1st Place: Team Toyota Carlsbad – Marty Edmonds, Rudy Romero, Michael Heller

Gene Lopez, Ryan Swanson Men’s Closest to the Pin: Larry Haley (Team Enterprise) Women’s Closest to the Pin: Karen Vinkemulder (Team Drew Ford) Men’s Longest Drive: Wayne Krause (Team I-CAR) Women’s Longest Drive: Barbara Davies (Team Autobody News)

Unique Lego Car Sold for $1,626 for Charity

Paul Boratko of Johnstown, PA raised more than he expected with the online auction of a special Lego car – the Vampire GT – he designed and built. The 38-year-old Johnstown man works in auto body repair during the day, but at night he builds Lego cars. Boratko’s creations are not exactly “toys,” however. His cars are highly technical – built with the help of a friend in California who is an aeronautical engineer. The auto body repairman completed the sale on eBay for $1,626 – $626 more than his goal – and has donated the money to the Make-AWish Foundation. “Paypal took $65.98 in fees, but I am going to add that amount out of my own personal account to stay true to my word that every cent of the final bid will go to Make-A-Wish,” Boratko said. The talented Lego builder decided to hold the fundraiser after meeting a young fan who had serious physical difficulties. The eBay auction was won by Derek Ward of the United Kingdom. Boratko, whose work has been featured in AutoTrends Magazine, entered the car’s design on a Lego website. The public is invited to vote on

the entries at no cost. Those receiving 10,000 votes are considered by the company to be made into kits and sold to the public. Boratko would love to see that happen with the Vampire GT. “It would be cool to walk through Toys R Us and you see your name on the (box),” Boratko said. “It could become a reality.” In the world of Lego enthusiasts, Boratko is a celebrity of sorts. A website dedicated to his creations has followers around the world. It was an encounter at a Lego trade show that convinced Boratko to do something for charity when he met a young boy with his father. Boratko found out the boy was celebrating his 21st birthday. “I thought he was about 12. It was very, very humbling.” Boratko returned home and told his wife that he wanted to do something for charity. Amanda Boratko, who often accompanies her husband to trade shows, said she is extremely proud of his talents. “I love watching him create something from nothing,” she said. “The way he figures out how to put so many functions in the car, like a working engine and transmission, still blows my mind.”

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Student Restores Comet for Senior Project

The day before he was to show it off to his classmates, Tyler Post of North Stonington, CT, put the finishing touches on his senior project. He washed the windows and meticulously worked on the body of the 1962 Mercury Comet he had restored over the last five months. The next day, Post, 18, would tell his classmates during a 15-minute presentation about the hundreds of hours he put into the car, from engine work to cutting, grinding and welding the body before sanding and painting the car satin black with a stripe of carnival red pearl. “All these months for 15 minutes,” Post said. What Post didn’t have time to tell his classmates was how he had to plan this project for more than two years so he could save up for, find and buy the perfect car. Or how he spent the next summer saving more money working at Cross Sound Ferry in New London so he could buy parts, materials and supplies. Or how he felt an overwhelming sense of relief once he finished a project that he said excited him more than graduation itself. “My senior year wasn’t a lot of fun, it was a commitment to this car,” Post told his peers as they examined the 50-year-old Comet outside the school

following his presentation. “It’s probably the greatest thing I accomplished in my high school career.” It’s the latest accomplishment for Post, a unique student who has decided to forgo college and has plans to go work for Electric Boat instead. At Wheeler High School, Post played lacrosse and basketball all four years and soccer his freshman and sophomore years. He’s also an accomplished artist, having had an art piece, a pencil sketch titled “Bird Flew” entered in the Slater Memorial Museum’s Connecticut Artists Juried Exhibition. Post shares a knack for art with his brother, John, 20, who attends graphic design school in New York City. His art skills also come into play in car restoration. Post and his father, Todd, refer to the car as a “canvas.” “You’ve got to get your canvas perfectly primed and sanded, otherwise the imperfections will show through when you paint it,” Post said. The car was a labor of love, Post said, one passed on for generations. Todd Post said his great-grandfather owned an auto business in New Jersey during the turn of the 20th century, and Todd Post’s white 1960 Chevrolet Bel Air is a testament to the family’s car obsession.

Body Shop Does Paint Job on Paint Blob

On Broad Street in Philadelphia, next to the Pennsylvania Academy of the Fine Arts, a giant orange paint glob sits on the sidewalk underneath the “Paint Torch.” The dollop is positioned to appear as if it was dropped from the top of the brush of Claes Oldenburg’s Paint Torch, which towers several stories above. Few have noticed, though, that the blob is now backwards. When the sculpture was originally installed, the paintdrop’s peak was on the brush side. Now it rises tocourtesy: Tom Crane, ward Broad Pennsylvania Academy Street. of the Fine Arts Skateboarders have made a habit of detouring from the sidewalk to skip off the glob, scratching and marking its surface, said Harry Philbrick, museum director at the Pennsylvania Academy of the Fine Arts. So the damaged drop got shipped via tow truck to an Edgemont autobody shop, Keenan Auto Body West. “The whole thing was covered with marks,” shop manager Max Sorensen said of the glob. “We polished the whole entire piece with a

buffer and rubbing compound.” Gouges in the fiberglass had to be filled with clear resin, because the tip glows at night, thanks to a light inside. The brush atop “The Paint Torch” also shines nocturnally. After sanding, the piece was sprayed with a clear sealer, then orange base coat, followed by a new, stronger ceramic clear coat. “It’s basically like the paint that’s on a Mercedez-Benz,” Sorensen said. As for cost, he’d only say, imagine a car getting a first-class paint job. On May 30, the piece was reinstalled on Broad Street, surrounded by a moat of uneven paving stones, a kind of rumble strip for skateboards. It was also turned 180 degrees. On purpose. Matching, it turns out, the sculptor’s original design. The hope was that, with the most upright side toward the sidewalk, skateboarders would be less tempted. A few days later, though, the dollop already had a few new scuff marks. The piece is tougher to scratch, so chances are good the marks can be harmlessly removed with rubbing compound, Sorensen said. Under a new City Council proposal, those skateboarding, bicycling or roller-blading on public art or monuments could be jailed for 90 days and fined $2,000.

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CAA San Diego Gets a Robert Rick Refresher Course

“We are very confrontational with our customers,” Rick said. Often, shops An auto body shop is like a day care don’t think about how they come center. People want their children well across to customers, or that they may taken care of, and they want their cars be answering the phone with their bad well taken care of. mood showing. Getting back to the basics was the The front office person answering focus of the San Diego Chapter of the the phones and fielding customer calls doesn’t always know the answers, California Autobody Association meeting on May 22 at Tom Ham’s such as when the car should be Lighthouse Restaurant on Harbor Isbrought in, how much time it will take land in San Diego. to repair a car, or the status of the rePresenter Robert Rick, VP of pair. What if the person answering the Sales and Consulting Services for phone has a bad attitude, is unfriendly, or doesn’t even want to answer the Gates Business Solutions in Wisconsin phone? and DuPont Performance Coatings Executive Facilitator for DPS Educa“How much is that phone call tional Series, addressed approximately worth?” Rick asked. “Are you losing 50 attendees with the topic, “How to jobs because your front line person Improve Some of Your Best Business doesn’t know how to bring in the busiPractices.” ness?” A good test Rick recommends “Think of a customer’s car as is that a shop owner or manager ‘shop’ their baby,” Rick said. “Their cars are his own business. “Go to lunch with a important to them and their second friend, have your friend call the shop most expensive purchase.” He likens and turn on the speaker phone so you auto body shops to day care centers becan hear the customer service the front cause “our cars are loved ones too.” line people are giving,” he said. Front line people need to be trained to deal with customers. In addition, he said, “We talk industry jargon with our customers and we intimate them with our lingo. We need to talk a language they can understand, usually at a thirdto fifth-grade level. And we need to slow it down. A lot of us talk at lightning speed in our own lingo. We underRobert Rick, VP of Sales and Consulting Services for stand each other, but the cusGates Business Solutions, with Richard Hop Sanchez, tomers don’t understand us.” San Diego CAA chapter treasurer Following up with the cusRick, 52, has more than 30 years tomer is a great communication tool. experience in the automotive industry Rick suggested shops “act like a docwith knowledge in all aspects of collitor’s office” and call to confirm apsion repair consulting. His animated pointments and other details, such as style and energetic delivery kept the claim number, repair authorization, members engaged as he quickly went damages to be repaired, and the status through several points to help auto of the repair. Taking a few minutes to body shops improve their business make follow-up calls will save shops practices. Specifically: how to imtime in the long run, he said, explainprove the check-in process, improve ing it takes more time to receive a call communication with customers, inthan to make one. Several steps might crease customer satisfaction feedback be involved in a call that’s received: and improve cycle time and customercall comes in, receptionist puts the pay services. caller on hold, the appropriate person Rick opened his presentation with needs to be located, that person may a tough question: “Do we know it all?” not be prepared to take the call, recepand spent the next 45 minutes taking tionist takes a message, the repairer his captive audience back to the basics calls back later, leaves a message, and with three main points: 1) set expectathe customer calls back and the cycle tions; 2) slow down; and 3) stop talkis repeated. Whereas, it only takes a ing body shop lingo. minute or two to make the call or send by Melanie Anderson

22 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

the text or email. The lack of keeping the customer adequately informed of the status of a repair is the No. 1 failure of CSI (Customer Satisfaction Index), Rick reported. Perhaps one of the best ways to communicate with your customer is don’t mislead them. Avoid giving an estimated time of completion. Customers rely on that information and make their plans accordingly. The number one question customers ask is when their car will be ready. Shops know this and yet they still wait for the customer to bring it up, rather than address the issue head on. Robert Rick Rick advised shops not wait for the customer to ask, but instead give the customer the appropriate expectation from the beginning and this will increase customer satisfaction by the job completion. Rather than guessing when the vehicle will be finished, Rick advised that repairers should take down cell phone numbers or email addresses and make

phone calls or send text messages or emails to give status updates on the repair. “Don’t make promises on a finish date, but make promises to call to give an update,” he said. The best time to reach customers, he said, is between 9 a.m. and 10 a.m. and gives the customer plenty of time to make arrangements to pick up the vehicle. “We cause our own bottlenecks,” Rick said. “Body shops need to take control of their own schedules. Set up the expectations up front, and then do it.” A proper check-in takes about 1015 minutes, and without it, time and money are wasted with follow-up calls, work being stuck in the stall, verifying repairs and delivery issues. “Stop asking customers ‘When do you want to bring the car in?’ and take control of your schedule,” Rick said. “Tell them when the best time is to drop off their car and tell them how much time you need for the check-in process. When a customer is checking in a vehicle, they don’t know what to expect. If we tell them ‘just bring it in,’ we aren’t setting the proper expectation. See CAA San Diego, Page 24

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 23

Disruption Became the New Normal in 2011 by Susanna E. Gotsch, Director, Industry Analyst CCC Information Services Inc.

The breathtaking speed of advancement in consumer electronics has become the new baseline for companies in terms of speed to market, price, and desirability of product. The most recent recession still drags the global economy, and continues to make consumers acutely aware of their finances, and the danger of living with too much debt. Consumers have become increasingly sensitive not only to price, but also to each individual product or service’s share of wallet. Technology such as smart phones, tablets, and social media has given individuals the ability to have their voice heard loud and clear. The channels for reaching and interacting with consumers have changed. It becomes increasingly difficult for businesses to remain relevant, to get their message heard, and to get the consumer to pay them any attention. Companies must also embrace the new disruptive paradigm where comContinued from Page 22

CAA San Diego

They think they can just bring it in, drop off the keys and leave. But, instead, we need 10-15 minutes of their time to do the paperwork, go over the financial information, discuss transportation needs and any other check-in procedures. But the customer doesn’t know this, because we told them “just bring it in” instead of telling them we need 15 minutes of their time at check-in.” Letting customers know that they will need to spend 10-15 minutes at the shop when they drop off their car saves the shop time and money, makes a huge difference in the back end, and increases customer satisfaction when the job is complete. Another important step all shops should be taking is spending a few minutes at the car with the customer to verify the damage, note mileage and fuel level, take digital pictures of the dash, make an interior inspection, check dash lights, power seats and windows and look for burn holes or windshield chips. In addition, ask the customer to remove personal belongings from the car and trunk, and check

petition will emerge from outside their historic range of competitors. Take for example, Amazon’s emergence as one of the largest providers of cloud computing, and the disruption Apple’s iPhone created in the mobile phone market. Companies should be taking queue from recognized leaders in the consumer products and services area, but also be aware of where startups are focusing their efforts. Significant shifts in the demographic makeup of today’s consumer are also a factor driving the disruptive shift in consumer demands. The U.S., like most industrialized countries, has seen its population grow older. The oldest Baby Boomers turned 65 on January 1, 2011. An estimated ten thousand more per day will turn 65 over the next nineteen years, taking the share of 65-year-old-plus individuals to 18% of the U.S. population, versus just 13% today. An aging population has historically led to lower

to see if other work could be done or if there is other unrelated prior damage. This minimizes the opportunity for people to take advantage of body shops. This is also the time to check to see if there are any “production stoppers,” such as security codes or special wheel lug sockets that may needed. How many body shops toss the keys to the customer and tell them the car is parked out front? Body shops that do this miss a great opportunity for customer service and getting higher customer satisfaction ratings. Make the delivery an event! Before the customer arrives, tell them on the phone how nice the car looks and how well the repairs went. It sets their expectations. When the customer arrives, go out to the car with them (before the paperwork) and show off the work you did. “Sell the sizzle! Give ‘em the ‘wow factor,’” Rick said. “You’ve earned the CSI, so ask for it.” Ask the customer that if they should receive a survey call, will they give the shop a good review? Rick advises that shops should begin the repairs keeping the end in mind. Don’t wait until the end of the repair to ask for the customer’s opinion.

24 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

accident frequency as people have historically retired and reduced driving during peak traffic times. The recession however has led many to postpone retirement, so we may see the traditional reduction in frequency push out several years. Generation Y or “Millennials”, individuals born between 1997 and 1990, accounted for 77.4 million individuals in the U.S. according to the U.S. Census, just slightly above the 76.2 million Baby Boomers. This generation is more ethnically diverse than older adults, and a greater share of them had at least one immigrant parent—11%, versus 7% for Gen X and 5% for Baby Boomers. A 2010 Pew Research Center study looked at the values, attitudes and behaviors of Millennials versus older generations. Among the findings of this study was the Millennials’ greater use of technology. Millennials feel that this is a defining feature of their generation. Millenials were also the first generation to fully embrace the use of technology in their role of a consumer as well. Owning an automobile has his-

torically represented a rite of passage into adulthood and freedom for Baby Boomers (born between 1946 and 1964), a category still accounting for approximately 45 percent of new-car purchases. But there is a growing sentiment that the automobile has been replaced by the Internet and smart phones for those in the Generation Y age group (born between 1978 and 1984); changing the world the same way the automobile did at the turn of the 20th century. One of the areas with perhaps the most potential to directly impact automotive claim severity and frequency is the shift in the population towards urban areas. Results from the 2010 U.S. Census report that 54 percent of the U.S. population resides in its 10 most populated states, with just over 83 percent living in one of the nation’s 366 metro areas (core urban area population of 50,000 or more). During the last decade, the metropolitan areas however saw the largest increase, significantly higher than micropolitan areas or areas outside a core based staSee Disruption, Page 32

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Matters of the Heart—Body Shop Owner Saves Adjuster’s Life by Ed Attanasio

Fixing cars is rarely a life-and-death situation. But, on a hot summer day last year, a body shop owner had to act quickly to save the life of an insurance adjuster who was experiencing a serious heart attack at his facility. If Bob McSherry, owner of North Haven Auto Body in North Haven, Connecticut had not acted quickly and definitively when Mike Vitale, an adjuster for GEICO, experienced a serious heart attack in his rear parking lot, there is a very good chance he would no longer be alive. It started out as a typical hot, humid summer morning, but quickly became a life-changing experience for at least two people. “It was one of those days in Connecticut where you’re sweating heavily by 11 a.m.,” McSherry explained. “Mike had a long day ahead of him, and he used to be kind of high-strung back then anyway. Now, since the heart attack, he has slowed down quite a bit. But, he was a little wound up that morning because he was behind schedule.” Vitale’s itinerary then changed radically, McSherry continued. “So, Mike was out there in our back parking lot writing up a vehicle when suddenly he collapsed between two cars. A couple of my techs saw him go down, which was lucky. One of them ran into the office and said, ‘The guy from GEICO is down and we don’t know what happened to him!’” Vitale was fortunate to be at North Haven Auto Body because McSherry is an EMT and a volunteer fireman. “I got out there pretty quick and Mike was not breathing at all,” McSherry said. “After establishing that he had no pulse, I started doing CPR on him, and, luckily, the fire department was here within three or four minutes. The firehouse is about a mile from here and they were Johnny-on-the-spot. They gave him a shock here and then another one on the way to the hospital, and by the time he got there he had a heartbeat and was breathing.” Unfortunately, Vitale wasn’t quite out of the woods yet, McSherry said. “They put him in a medically-induced coma for next three days because they were obviously concerned about brain damage. The people at the hospital told Mike’s family that they were lucky because we acted quickly,

but they weren’t sure what his condition was. When they took him out of the coma three days later, he was 100%, talking and being Mike again.”

A series of fortunate events led to cerned with aren’t as important anyVitale’s life being saved, he explained. more. Now when I become 65, I will “Thank God there was a guy working seriously be thinking about retireon the asphalt in the parking lot. I col- ment.” Vitale thanked everyone who lapsed between two cars, so if that guy helped save his life, including the guy hadn’t been there, I fixing the asphalt, Bob McSherry and doubt that anyone the local fire department. “Gratitude would have found is the word I can use. The first chance me until it was way I had, I went around to let everyone too late. He notified involved know that I am truly apprea tech and he ran ciative and indebted forever. Bob Mcinto the office to Sherry and I have always had a good relationship, but now I can say withtell everyone I was d o w n . A n o t h e r out hesitation that he is my very best lucky thing was the friend.” Body shop owner Bob McSherry (left) acted quickly to save a life Another valuable piece of adfact that I had the when Mike Vitale, a GEICO adjuster, had a heart attack in the auto vice from Vitale is visit the doctor attack at Bob Mcbody shop parking lot last summer regularly, whether you need to or Sherry’s shop and As a volunteer fireman for almost the fire station was so close by. It was not. “I talked to the doctor after the 30 years, McSherry was well-pre- a combination of things and without incident and they told me that they pared and trained to act without hesi- them, I would probably not be here to probably would have seen some pretation. “Most people hear about CPR, talk to you right now.” cursors of the heart attack, especially but they rarely see it done in person. Vitale, 61, is now seeing life from the high blood pressure I wasn’t It’s a mind-blower and not for the a different perspective after the nearaware of. I used to be one of those faint-of-heart, that’s for sure. After death experience, he said. “I have so people that would never go to the Mike went down in the parking lot, much more to accomplish and now I doctor, even when I was sick. But, more than a few of my employees can. I have a granddaughter and I quit now for obvious reasons, I have came to me and asked about learning smoking, so life is good now. Some of changed my mind about going to the CPR. We agreed Mike was very lucky the things that I used to be so condoctor.” that day, but I asked my guys, ‘If someone had a heart attack at your house, for example, wouldn’t you want to help them?’ My employees said we should do some training and I agreed.” PROVIDING AUTHENTIC KIA PARTS McSherry set up a CPR training TO SAN DIEGO SHOPS SINCE 1999. day for his staff and paid for the expense. “This way, the entire shop will be ready if anything like that happens again. We hired a local fireman who does CPR training and it took about eight hours to do it, but after you complete it, you’re pretty much an expert on how to administer it. We did the training right here at the shop, and we’re also in the process of installing a defibrillator, which some people call ‘the paddles.’ It costs roughly $2,700, but in the end it’s worth every Additional penny. I hope one day they don’t have • Qualified, Experienced Staff 10% OFF your order to use it on me,” he laughed. “They’re of $500 or more • Free Delivery easy to use, and with all of the illusfor mentioning trations on the device, anyone can do • Huge Inventory this ad. it.” Vitale is happy to be lucky, in the Hours: Mon. - Fri. 7am - 6pm parts@northcountykia.com right place and most importantly, alive Sat. 8am - 4pm www.northcountykia.com and well. “I went to the shop to look at Call Us Today! a car, and the next thing, I was waking up at the hospital. There were no 866-888-3074 fax warnings. My diet is usually pretty good and my weight is ideal, so it 1501 Auto Park Way S., Escondido, CA 92029 came as quite a surprise.”

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Malibu Ecos, More Acura TLs Face Recall

GM has said it is recalling 4,304 of the 2013 Chevrolet Malibu Ecos to reprogram a part that controls the deployment of air bags. Honda Motor Co. said it is recalling 52,615 of the 2007-08 Acura TL vehicles because of fire risks from leaking power steering hoses. GM said no crashes or injuries have been reported due to the problem with the Malibu Eco, but it authorized the recall after it found the problem during a development test in which the vehicle was performing “extreme maneuvers,” according to a GM statement. After hard braking, a module may reset. If that happens during aggressive turning and the vehicle senses a potential rollover, the roof rail air bag may unintentionally deploy, according to the National Highway Traffic Safety Administration. Also, the air bags or seat belt pretensioners may not deploy during a crash, increasing risk of injury. The Malibus were manufactured from Oct. 24, 2011, through March 31. The recall follows a customer satisfaction program GM launched about a month ago on about 10,000

Malibu Ecos that had the module issue, GM spokesman Alan Adler said. In that program, affected customers were sent letters advising them to have their module reprogrammed by a certain date to qualify for a free repair. Dealers also fixed the software issue on many cars before they were sold to the public, Adler said. The 4,304 Malibu Ecos under recall are the remaining vehicles that haven’t had the module reprogrammed, Adler said. Customers will receive letters after June 1 with instructions on how to contact their dealer to have the issue fixed for free. In the Acura TL recall, Honda said the power steering hose may fail, causing fluid to leak onto the hot catalytic converter, the Japanese automaker told NHTSA. In total, Honda has now recalled more than 370,000 vehicles to address the problem in three separate recalls. In November 2007, Honda recalled 43,200 2005-08 Acura RL vehicles to address the same problem. In February 2008, Honda recalled 273,000 2004-08 Acura TLs. The new recall adds the 2008 TL base model and 2007-08 Type-S.

Toyota, Honda and General Motors have confirmed they plan to integrate Siri, Apple Inc.’s voice control technology used on the iPhone, into connectivity systems of upcoming vehicles. Spokespersons from the three companies confirmed the plans to Automotive News after announcements made by Apple at its Worldwide Developers Conference in San Francisco. In essence, vehicles compatible with the Siri service will allow drivers to make calls, dictate text messages, look up directions and use

other Siri functions by plugging their iPhone into a USB cable in the car. Pressing a button on the steering wheel will activate Siri, and drivers can speak commands to their phone hands-free. A new Siri feature, called “Eyes Free,” will help drivers use their iPhones while keeping their eyes on the road by allowing iPhone owners to control more of the device’s functions with Siri with the screen off to mitigate distracted driving. The Eyes Free feature will be released as part of Apple’s latest version of its mobile operating software due out this fall.

The Lexus GX SUV, first introduced in 2003, has always been marketed as a luxury SUV but is based on the rugged body-on-frame platform un-

derpinning more serious off-roaders like the Toyota 4Runner and FJ Cruiser. Despite this, the vehicle has en-

Toyota, Honda and GM Will Use Siri Voice Technology

3rd Generation Lexus GX Could Lose its SUV Look

30 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

July 2012

2012 Chevy Cruze Added to NHTSA Probe The National Highway Traffic Safety Administration has widened its investigation of engine fires in the Chevrolet Cruze to include the 2012 model year. In April, the agency announced it was probing about 177,000 2011 Cruzes after reports of two fires that engulfed and destroyed two vehicles. In documents posted on its Web site this week, NHTSA said it’s now also investigating the 2012 model. GM spokesman Alan Adler said 370,000 vehicles are now included in the investigation. In an April 4 letter to GM, NHTSA requested data from the automaker by May 11. Adler said GM responded to 10 of NHTSA’s 12 questions, and got an extension on the other two. No documentation of GM’s response was available on NHTSA’s website. Though the Cruze hasn’t been recalled, these types of NHTSA investigations can lead to vehicle recalls. There have been no reported injuries or accidents resulting from the fires being investigated, and Adler said GM is also investigating several fires, but wouldn’t comment on the number being investigated. On April 29, according to a complaint to NHTSA, a driver reported

Malibu Eco recall Separately, GM said it is recalling 4,304 Chevrolet Malibu Eco cars sold in the United States to reprogram a module that controls airbag deployments. GM said in what it described as rare cases under extremely aggressive turning, the roof rail airbags in some 2013 model year Malibu Ecos might inflate. It also said in another scenario it described as rarer that the airbags and safety belt pretensioners might not deploy. GM said no crashes or injuries have been reported related to this issue. GM said it discovered the problem during a development test in which one of the cars was performing extreme maneuvers. It said letters will be mailed to car owners on June 1 with instructions to have the reprogramming done at no cost at a dealer.

Chrysler has expanded a recall regarding corrosion on Jeep Liberty SUVs to include the 2006 and 2007 model years after recalling the 2004 and 2005 model years in March, U.S. safety regulators and Chrysler said today. The action brings the total number of Jeep Liberty vehicles recalled in the four model years to about 410,000. Most of those vehicles, about 347,000, are in the United States. The two additional years add 137,176 U.S. vehicles to the recall. The recall affects vehicles in

cold-weather areas that can sustain a rear suspension lower control arm fracture due to excessive conditions because of salt on roads in winter, according to a filing with the U.S. National Highway Transportation Safety Administration. Such a break could lead to loss of vehicle control and a crash, NHTSA said. Chrysler said it was not aware of any injuries or accidents related to the issue. Chrysler will pay to replace rear lower control arms in the affected vehicles.

Chrysler Expands Recall

joyed a reasonable level of sales and in 2010 spawned a second-generation model. For the third-generation of its

that flames burst through the front of a 2012 Cruze while traveling at about 45 miles per hour. GM sold 18,205 Cruzes in April, down 28 percent from the same month last year. It sold 75,288 of the vehicles through the first four months of 2012, down slightly from sales of 75,365 during the same period last year.

GX, Lexus is considering adopting a car-like unibody platform, which would make the GX more a crossover than a true SUV.

Gonzo’s Toolbox

Take it to the Dealer! with Gonzo Weaver

Everyone has a reason why they use a dealer repair shop vs. an independent shop… These are a few of those reasons I’ve run into over my decades of independent service work. Customers come in a wide range of styles. There are my regular customers, occasional customers, price shoppers,referrals, and friends of the family. Some don’t bother to tell me how they happened to be at the shop; maybe they’ve read an advertisement, saw a billboard somewhere, or they’ve checked out one of those websites that evaluate businesses by way of customer responses. Perhaps they’ve heard of the shop through the grapevine, or they might have just driven by to check it out. But I’ve never heard of anyone refer to themselves as a “dealer customer.” It could be there are some differences between what people think of the various different types of repair shops, or what they are used to deal-

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

ing with. Whatever the case may be, once they are at your front counter you want to try and make them a customer of your own. Then again, do you really want to take on every job that comes in the door? I certainly don’t. There’s times someone will bring in something that I’m not qualified to work on, or it’s something that is so far gone it can’t be taken care of without an exorbitant amount of cash to repair it. Then there are those proverbial “basket cases”, oh yeah... actual “basket cases” dragged in to the service bays. (And “YES” they do come in baskets, crates, and/or boxes. All the nuts, bolts, electrical parts, and components scattered in hap-hazard piles of the owner’s greatest intentions gone wrong.) Of course, there are the strange or unusual customer responses that keep you on your toes. I sometimes stand behind the counter wondering

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what in the world these people are thinking... how am I going to get through the usual monologue in the front office and still have enough sanity left to repair the car? Some of these requests and explanations are just too bizarre to be real. “Hi, I’m here because of my brother-in-law sent me,” (I’m thinking to myself... alright! this is a good start), he said you could fix my car,” the new arrival to the shop tells me. “What seems to be the problem?” I’ll ask. “He changed the “autovalve” and he said you would know what to do about it.” “I’m afraid I don’t know what an “autovalve” is. (So much for a good start...) Could you describe what’s wrong with the car, and then maybe I can sort out what part you’re actually talking about.” “Apparently you’re not as good as my brother-in-law said you were. You should know what one is. Obviously you don’t know how to fix my car then... I’m taking it to the dealer,” the now aggravated customer tells me, “Oh, and don’t worry I’ll tell my brother-in-law about this.” You know, there are times I don’t want to even ask another question, or want to take the time to get to the bottom of some of these wacky explanations. I’d rather see this kind of problem just vanish with the goofy owner and their explanations. If they think they need something done to their autovalve I’m more than happy to let the dealer take care of it. Off you go to the dealer little lady... they’ll love to talk to you, and I’m sure they have plenty of autovalves over there. At times, I pity the poor service writers at the dealerships. Because as it seems to be in these cases, the dealership is primarily the last stop in this long line of relatives with wrenches, repair facilities, and parts store geniuses trying to help out the customer. The service writer really doesn’t have much choice but to deal with them. Let’s face it...... they are the “deal-ership” The phone rings again, the caller tells me, “Well, I don’t know if you

can do this kind of work or not. I probably ought to just take it to the dealership.” “What seems to be the problem, sir?” “It’s my electric window, I think it’s the switch because my window is stuck halfway down. Probably bent a bracket you know.” (Self-inflicted-diagnostics … I can tell...) “Sir, any decent independent shop can handle anything the dealerships can do. A window problem is no big deal. I take it you were referred here?” “Yes, a couple of my friends told me about you.” (Apparently, his friends neglected to tell him that we actually make the repairs too. I suppose he thinks his neighbors just come by the shop and chat about car repair.) I find it rather confusing when a customer calls and tells me their car is at the dealership. They’ll tell me that the problem has already been diagnosed, and then tell me that all their friends recommended that they take their car to my shop for repair... but, instead they are sitting in a service bay at the dealership. After the usual phone introductions they’ll soon get to the real reason for their phone call: “They want $947.53 cents to fix my car... do you think that’s too high?” I guess at this point, I’m supposed to justify the cost or give them some outrageously lower price. I really don’t know how I can do that, when I haven’t even seen the car yet, or even what problems they’re having with it! “You’re there already ma’am. If they have done their job correctly, and diagnosed the car properly then the price is their price.” “They want a diagnostic charge if I take it out of their shop right now.” “Ma’am, you’ll pay another diagnostic charge at the next shop, so I would advise you… since you’re there... let them take care of the problem as they see fit. Unless you feel uncomfortable with their results or diagnosis, I would suggest you let them take care of it.” See Take it to the Dealer, Page 36

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 31

Continued from Page 24

Disruption

tistical area. Personal mobility will reach beyond individual vehicle ownership to an integrated mobility approach, incorporating car sharing, public transportation and greater use of technologies such as telematics, smart metering and navigation. These major demographic shifts may ultimately lead to a disruption in the historical trend of vehicle accident frequency and severity. A greater share of the population will fall into the youngest and oldest age groups, where driving patterns may result in diverging patterns of frequency and severity. As the population shifts further to urban areas, increased congestion could lead to higher frequency, although increases in use of public transportation would do the direct opposite. Accident severity tends to be lower in traffic accidents occurring in congested urban areas, and the advent of crash avoidance technologies like the Volvo City Safety system have been shown to reduce both the frequency and severity of low-speed accidents. Economic conditions and the

technology in vehicles have been shown to lead to decreases in vehicle accident frequency and severity, and will continue to do so in the future. Because each generation’s outlook is shaped by different cultural expectations and experiences, companies must understand these, and incorporate them into the way that they interact with potential and existing customers. The ability to customize communication and marketing into generational and demographic categories will help companies portray the appropriate image and message and better grow their business. Insurers and repairers that will be successful in this disruptive demographic environment are those that have plans in place to market and serve the different age groups, and have looked at whether their current geographies are positioned to shrink or grow, and have adjusted their growth plans accordingly. While factors such as atmospheric conditions may be difficult to project, understanding employment trends (i.e. time of day people are commuting to work), vehicles purchased in your market (vehicle body type, accident avoidance technology and airbag availability and deploy-

The Accident is The Ultimate Disruptor The average consumer today has an auto accident once every seven to 10 years, well behind the average vehicle trade-in cycle of every five years. Due to the nature of the product being sold, auto insurers and collision repairers subsequently have very limited interaction with consumers. Insurers certainly interact with their customer at policy issue, at bill time, and sometimes through other services such as banking or games in apps. However, the real moment of truth for the auto insurer and the repairer is at the time of an accident. For the automotive insurance and collision repair industries, the challenge is to take the infrequent and unexpected negative experience of an auto accident and turn it into an experience where the customer is delighted. No one wants to have their vehicle damaged, and few consumers know what to expect in the auto claim and vehicle repair process. However, they come to this experience the same way they come to any other experi-

ence—with expectations that you know who they are, that you will fulfill your commitments to them, and that you will create a positive experience. For insurers, the claim is one of the most significant opportunities to retain or lose a customer. For repairers, a positive vehicle repair experience can create a customer that will share their experience with friends and family, and help your business grow. Effective use of technology not only enables companies to meet the minimum set of expectations of their customers, but can also facilitate the delivery of a personalized experience that delights your customer. By combining innovative technologies that improve business processes, with the ability to finetune the messages delivered to customers at the right time, on the right device, businesses can place themselves in a position to meet the expectations of today’s consumer in a way that can provides them value. Effective use of technology not only enables companies to meet the minimum set of expectations of their customers, but can also streamline the overall claim and repair processes. See Disruption, Page 47

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Bill Restricting Access to Parts and Repair Information Advances in CA Legislature

Despite strong lobbying and grassroots opposition from CAWA and other aftermarket organizations, SB 750 passes key committee. According to CAWA, consumers and the automotive aftermarket suffered at the hands of big car companies seeking a monopoly that will keep consumers and their repair professionals from having the information they need to repair their vehicles as SB 750 authored by Senator Hernandez and sponsored by BMW passed the Assembly Transportation Committee by a vote of 8 to 5. If ultimately passed and signed into law, SB 750 will exempt automakers from providing electronic key code information to locksmiths, requiring motorists to contact the automaker to get a replacement key for their vehicle. CAWA and aftermarket industry advocates have been battling this legislation for nearly a year and have argued their concerns about motorists being inconvenienced and often stranded in dangerous situations because they were not able to obtain a replacement key from a locksmith due to automakers refusal to provide this information. In addition, CAWA argued that this bill is anti-consumer and anti-competitive, and while this resonated with many legislators, it was not enough to convince them to vote

against the measure. “This is an unfortunate and untimely blow to both consumers and the aftermarket. The key is much more than the instrument that enables one to start their vehicle,” stated Steve Sharp, of WORLDPAC, CAWA Chair of the Board. “The key is coded with security information that is tied into the vehicles computer system and will disable a number of auto components including in some cases the transmission, making the vehicle immobile as well as preventing a vehicle from being started after certain major repairs.” The aftermarket industry has developed a system for key coding and vehicle programming that the majority of vehicle manufacturers follow to ensure both the security of the vehicle as well as access to the independent repair industry. SB 750 will certainly interfere with the ability to have a vehicle serviced outside of the manufacturers’ network, and this in turn will create hardship for the consumer as well as create anti-competitive forces for the independent automotive repair industry. CAWA asks supporters to contact their legislative advocate, Norm Plotkin, for your immediate questions at norm@pzallc.com or 916-275-0796.

Geico Settles Lawsuit with Gunder’s

Gunder’s Auto Center announced that GEICO has elected to settle a lawsuit Gunder’s filed on behalf of their customer rather than concede to deposition of their claims representatives. Upon deeming the customer’s vehicle a total loss and disputing Gunder’s billing for incurred charges (including a parts return fee), GEICO elected to post what is referred to as a “bond” through the county courts in the amount of Gunder’s billing ($972), which allowed GEICO to then take possession of the customer’s vehicle. As required, GEICO provided full payment of the disputed amount to the Clerk of Courts and was issued a “bond,” which legally required Gunder’s Auto Center to relinquish the vehicle along with their possessory lien on that vehicle. Gunder’s, according to stipulations in the bond statutes, was then confronted with having to file a lawsuit against the vehicle owner as the only means to exercise their right of recovery. If Gunder’s failed to file a lawsuit within 60 days, they would have then forfeited their right of collection, and the monies would have been refunded to GEICO, with Gunder’s receiving nothing. Ray Gunder, owner of Gunder’s, proceeded to file the lawsuit

against his customer, who he says understood the issues and did not dispute any portion of their billing. Gunder also claims that the customer was not aware of the bonding of his vehicle, claiming he would testify that he had not even been aware of GEICO taking possession of his vehicle until it had been removed. In the process of arranging the depositions of GEICO’s claims manager and the field claims rep who bonded the vehicle, GEICO elected to avoid the depositions by paying Gunder’s their full billing as well as all legal fees and costs of $2,621.09 for a total amount of $3,593.09. “I surely hope this sets precedence that handling returned parts, with all the administrative efforts, costs and assumed liabilities involved, is not merely a ‘cost of doing business,’” said Ray Gunder. “As I have learned from my good friend and business consultant Barrett Smith of Auto Damage Experts, performing such activities for free could very well be ‘the cost of going out of business.’ After setting this legal precedence, I hope to resume a respectful relationship with GEICO for the benefit of our mutual customers and our respective companies.”

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Continued from Cover

Birmingham Reacts

so we certainly have to respect that. We were disappointed they left the program, they were obviously high performers. We continue doing the test, we had more than (those 17 shops) in the market area,” Avery said. Tim Crawford, who has owned and operated Hwy 280 Paint and Body at 19360 Hwy 280 in Birmingham, for 40 years, was one of those shops. He recently dropped State Farm after a long and beneficial relationship, opting to remove his shop from State Farm’s Select Service program than be forced to use the PartsTrader software. “I have been on the State Farm Select Service program since the very beginning, a long time. We’ve had a very good relationship with State Farm,” said Crawford. “But through the years, we have realized that they have started controlling different parts of my business, from labor rates and labor times ... to this new PartsTrader program, which has really taken the last aspect of my business out of my control. At that point, State Farm has total control over my business, and that’s not what I went into business for. When they start dictating things to the point that it takes all of my profit away, I’m gonna have to take a stand and take my business back.” Crawford’s three main objections to the PartsTrader program are 1) being forced to use only the vendors who sign up with PartsTrader, 2) losing parts profits and 3) waiting on parts through the bidding process which could delay jobs getting starting and causing a “clerical nightmare.” According to the ASA fact-finding report released in early June, the time frame for “parts pricing” is set at two hours as a default and can be adjusted to one hour by the repairer, or the repairer can set a custom close time greater than one hour. Pricing remains open for the allotted time, and during this process, shops are unable to execute on the estimate. In addition, “the PartsTrader program would take me from the vendors I normally use, which was going to take my business out of the Birmingham area, and make me use vendors I have no relationship with,” Crawford said, adding that none of the Birmingham vendors he uses opted to sign up with PartsTrader.

The ASA report notes that participation in the Select Service program is a collision shop decision, but that participation in the PartsTrader program is a supplier decision. “Their agreement with us has a provision that they (repair shops) are required to use the tool, and that has been in our agreement for a long time,” said Avery. “We have a tool that we believe meets the need of the customer. Our goal is to have a win-win for everybody, but there could be a repairer who doesn’t feels that way and chooses to leave the Select Service program because they don’t feel it is in their best interest and that is something they need to decide. But our goal is to get information from all the stakeholders, which would include the repairers and the suppliers, to have a win for everybody. The goal is to improve across the board for our shared customer.” Three weeks after dropping State Farm, Crawford says business is booming. “I am encouraged by the amount of work I have not having State Farm. They were probably 50% of my business, but I have not found any reduction in my business by leaving them,” Crawford said. “Of course, my customers came to me for what we do for them, not because I was a State Farm shop. They come because of the type of work we do, our customer service, and the quality of our work. I am not really worried about State Farm sending me work or not.” He added, “I feel that State Farm does not have enough good shops left in Birmingham to handle their business. In the Birmingham area, they lost close to approximately 40% of their quality shops that did close to 70% of their work.” Don Meadows has been the body shop manager for 23 years with Jim Burke Automotive, a new car dealership that sells seven lines and has been in business since 1945. They are located at 517 14th St. North in Birmingham. The high volume dealership does $450,000 a month in business. They aren’t sure yet how much business they’ve lost after being dropped by Select Service due to their refusal to try PartsTrader. According to Meadows, the dealership didn’t want to try the PartsTrader software because they didn’t like the idea of having all parts purchases going through a third-party vendor. “We were told if we did not use PartsTrader, we would be taken off Select Service, and we were the day the

34 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

PartsTrader program started,” Meadows said, adding that their customers are being affected by having to wait one to three days for State Farm to inspect their vehicles for estimates and supplements. “I have called several shops that are using PartsTrader and none have had anything good to say about the program,” Meadows said. He feels State Farm is implementing PartsTrader because “they want complete control of the repair process.” John Fagan, owner of Fagan Collision Repair in Moody, AL., has been in business for 15 years and also opted out of Select Service rather than get on board with PartsTrader. He doesn’t like the idea of having to use the lowest price bid on parts or the fact that State Farm “threw the LKQ (like and kind quality) parts and aftermarket parts into the same mix. It if was just a parts locater for used parts, it might have been OK.” But, mainly, he said, he is concerned about “the uncertainty of the LKQ parts they want you to buy.” He reported he hadn’t lost any business in the first few weeks after dropping State Farm. Donnie Burgett, owner of Donnie’s Paint & Body, which has been in business for 22 years in Trussville, AL.,

also opted to drop out of State Farm’s Select Service rather than use PartsTrader. He feels that if he had gone on the PartsTrader program, he’d be working more than the 10-11 hours a day he was already working handling State Farm clients and claims. The PartsTrader program would bring additional administrative work, less money and a reduction in profits, he said. “I decided to bail out of the program after several years because I didn’t see any benefit for my company or myself in any way whatsoever,” Burgett said. “PartsTrader was going to create discounts and maybe even ill feelings with my vendors because they were going to have to bid on parts and I felt like parts would be coming in from every direction on one job, instead of from one direction. It’s all about discounts for State Farm, and I don’t have a problem with discounts, except when it is going to cost me money. Being on the program would cause me extra work, an extra two hours per claim on my part, to save State Farm money and cost me money and reduce my profits.” (To read the rest of this regional story, please see www.autobodynews.com, search “Birmingham Reacts”)

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Continued from Page 31

Take it to the Dealer

“I didn’t know where else to take it... but when I talked to my neighbors they told me about your shop,” the caller said. How about asking around first? You might even learn a little something about your neighbors; hey they’re probably quite friendly; maybe you’ll actually learn all of their kid’s names, too. So what’s the problem between the independent and dealer repair shops? It could be from previous dealings in the past, and the customer didn’t like the results. It could be size of the shop or the location... the real reasons are hard to pin down. I’m not

knocking the quality of work performed at a dealer repair shop, no... quite the opposite. I would say I’ve also seen an increase in the quality of the independent shops in my area as well. There’s fewer wrench slinging grease monkeys out there than in years past. It really takes a different type of “mechanic” than it did even ten or twenty years ago, and that’s not just for the independent shops... that goes for the dealer technicians as well. Locate a shop you like, find a technician who you feel comfortable with. If your search ends up with that individual at an independent shop… that’s fantastic! If you can’t find the service you’re happy with anywhere except at the dealership… well then, there’s only one thing to do… take it to the dealer.

Continued from Page 13

Matrix Wand

The left rail had a sway over 25 mm and sag of 6 mm.

check it out. What follows is what happened. Monday, the first vehicle I measured was a 2011 Honda Accord with damage to the left rail and left upper reinforcement area. The vehicle was on Global Bench System with the jigs in place. The left rail was 8 mm back (circle).

Ford and State Farm Collaborate on Insurance Savings Ford and State Farm Insurance have established an agreement that could offer lower insurance premiums to Ford drivers. Owners of Ford vehicles can now choose to have their actual mileage reported automatically to State Farm using Ford’s SYNC technology as part of State Farm’s Drive Safe & Save insurance model. The new program, which will initially launch in Utah be-

fore rolling out elsewhere, allows State Farm customers with select SYNCequipped Ford vehicles to reduce their auto insurance premiums by using the Vehicle Health Report feature to report their mileage. Ford SYNC is an in-car connectivity system that provides drivers with the ability to voice command and control their mobile devices—such as cell phones and MP3 players.

36 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

More damage noted by the measuring system. I took a picture with the matrix system and this is what I found (see next page). I am going to use points 5/6, 9/10, and 13/14 on the distance table. Point 6-13 is 1237 mm and point 5-14 is 1212 mm. Point 5-10 is 1076 mm

and Point 6-9 is 1080 mm. You can go to Mitchell data and verify any pointto-point measurements and compare with the vehicle being photographed. When I went into the XYZ comparison, I found that the length was 8mm short, height was 5 mm down and width had moved 25mm and this was done with a picture. Dale Matsumoto, the owner of Autobody Hawaii, timed me and it took me 20 minutes from the time I took the picture until I gave him a print out. The vehicle was pulled and here are the pictures:

As you can see, the vehicle has been returned to its correct width, length and height. I proceeded to take another ‘after picture’ and measure. I am going to use points 13-14,

5-6 and 7-8. Points 13-8 is 1225 mm and points 14-7 is 1224 mm. Point 13-6 is 1077 and points 14-5

are 1076 mm. To verify that these measurements are accurate, I measured points 13-14 with a tram gauge and found the distance to be 1026 mm. I went into Mitchell and

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Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Al Brodeur’s Auto Body Offers Honesty, Inspires Loyalty with Chasidy Rae Sisk

Al Brodeur’s Auto Body, Inc. in Marlborough, MA, offers their customers peace of mind in knowing that every step of their repair is being handled in a professional manner. The shop facilitates the claim from start to finish as they strive to make the repair process as fluid as possible. According to Molly Brodeur, Chief Operating Officer and daughter of owner Al Brodeur, “Al has always operated an honest shop, and as a result, our customer base is large and very loyal.” Since Al Brodeur opened his shop in 1970 in a small rented space down the street from his current operation,

COO Molly Brodeur with Owner Al Brodeur

he has been very involved with the local auto body associations. He served as Treasurer and Director of the Central Massachusetts Auto Rebuilders Association, which has now merged with AASP-MA, for over 25 years. Molly is currently the Treasurer for AASP-MA as well as the President of the Midstate Chapter of AASP-MA. Molly notes, “Being so involved at the association level has put us in a unique position to always be at the front line and directly impact legislation and regulations that affect our industry every day. In late March 2012, AASP-MA was successful in killing a DRP bill and an anti-fraud bill that were positioned to move out of Committee. Both would have been extremely detrimental to our industry here in Massachusetts.” Beyond their involvement with the collision industry, Al Brodeur’s Auto Body is a member of both the Marlborough Chamber of Commerce and the Rotary Club of Marlborough for over 20 years. They have also sponsored multiple youth sports programs and participated in various community fundraising events. Re-

garding environmental concerns, the motto at Al Brodeur’s Auto Body is borrowed from a Native American proverb: “We do not inherit the Earth from our Ancestors, we borrow it from our Children.” Everyone at Al Brodeur’s Auto Body understands the impact that the collision industry has on the environment, so they strive to reduce that impact as much as possible. Al Brodeur’s Auto Body ensures that their painters are certified sprayers of DuPont advanced waterborne paint repair systems. They also use SATA high volume-low pressure spray gun technology, and their DeVilbiss spray booth is equipped with superior filtration systems rated at 99% efficiency, exceeding ASHRAE and EPA requirements. Additionally, they comply with all EPA regulations regarding how to properly handle hazardous waste by participating in hazardous waste recycling programs, and their recycling efforts extend to include the recycling of used parts, sheet metal and cardboard. The shop uses Spies Hecker paints, and while their customers own a mixture of older and newer model vehicles, they have recently noticed an increase in older model vehicles, 2007 model and older. Due to this, they have also seen more total losses in the past year due to the vehicles’ age and mileage. Luckily, Al Brodeur’s Auto Body rarely has issues with matching paint, even on older vehicles, due to their experience refinish technicians and the sophisticated paint matching systems that they use. Al Brodeur’s Auto Body is housed in a 6,800-square-foot shop with 14 employees. They complete repairs on approximately 90 to 100 cars monthly. In addition to standard lifts, welders, the shop utilizes Car-O-Liner frame equipment and a DeVilbiss Downdraft Spray Booth. In addition, they upgraded their management software in 2010, and it has completely changed the way they operate by enhancing every facet of their business. All of the technicians employed by Al Brodeur’s Auto Body are I-CAR certified platinum, and their refinish technicians are DuPont certified in

38 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

waterborne paint applications. Though direct repair programs are illegal in Massachusetts, Al Brodeur’s Auto Body negotiates repairs with all insur-

Al Brodeur’s Auto Body in Marlborough, MA

ers operating in the state in order to best serve their customers. They sublet towing, storage, paintless dent repair and rentals to other local vendors. In discussing current trends in the collision repair industry, Molly Brodeur notes that it is inspiring to see news about shops who have successfully filed lawsuits against insurers for

short pays by utilizing the Assignment of Rights form. “It’s encouraging to see shops taking advantage of the mechanisms available to be properly reimbursed for repairs.” She also notes that steering continues to be an issue in the Massachusetts market as does the labor rate compensation from insurers as Massachusetts has the lowest reimbursement rate in the country. In regards to the future of this industry, Molly says. “Our industry will continue to strive to meet whatever challenges lie ahead. We are a resilient bunch and will always work hard to rise above any roadblocks. Relationships with customers, insurers and employees will always remain our focus.” Al Brodeur’s Auto Body, Inc. 87 Mill Street Central Marlborough, MA 01752 508-485-1082 www.albrodeur.com

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Continued from Page 16

Preparing the Future

and how we distinguish ourselves from our competitors.” Guided by 11 instructors, the 51week CRRT program guides the students on how to repair and refinish structural and non-structural damage as well as how to prepare cost estimates on all phases of repair and refinishing. Students also learn to repair mechanical and electrical damage. As a result of completing the program, graduates can achieve certifications in DuPont refinishing, 3M plastics repair and Chief Automotive measuring and straightening systems, Black explains. Based on the industry standard, ICAR Live, the course includes five modules of collision repair and refinish training: Nonstructural Repair; Structural Repair; Refinishing; Mechanical & Electrical Repair; and Auto Customizing. Graduates will be Platinum I-CAR certified, preparing them for entry-level collision repair or refinish technician for a dealership, an independent body shop or a fleet repair facility.

gram on estimating to build on the foundation of the UTI training. UTI first identified seven candidates. “Our hope was to identify four hires for the program,” Black says, “but after interviewing our seven UTI candidates, they hired six, and all but one of them was able to advance through the training program.” That group comprises Justin Abner, William Bakke, Colton Dorman, Carlos Solórzano, and Dylan Burtis, who started working with Cooks Collision in February as junior estimators. They recently returned to UTI to share their experiences and challenge students, telling them to focus on all courses, including estimating, as they didn’t know they would become estimators when starting the UTI program, Black says. Megan Peterson is a student at EVIT taking advantage of “Our estimating training two new paint mixing systems along with a computer, softfrom UTI was a great founware, label printer, paint books, tech manuals and a mixing scale from Leading Edge Auto Refinishes and Riverview dation to build on during our Collision in Mesa training with Cooks and we those needs with the value UTI pro- wished we would have focused on it vided, resulting in a win/win partnermore,’ they said,” he reports, adding ship,” he explains. Cooks would that UTI will soon be choosing the create a one-month paid training pro- next set of UTI graduates to be interSuccess has been continuing since the program started at UTI Sacramento in 2005. One recent example has been with Cooks Collision, a large regional CRRT employer with 20 locations in California. The company had been struggling to find estimators for the last two years, and UTI thought there might be an opportunity to partner with the business, Black says. “During follow-up meetings with Cooks, UTI learned more about their needs and we were able to connect

viewed for an opportunity with Cooks Collision. Another recent UTI success is Colton Hart, who graduated from the school in September 2011, accepted a job a month later working with Sunny Stotler in Kalispell, MT., doing custom auto body and refinish repair work. He started out at $15, received a raise in February and then switched to a flat-rate commission of 40 percent of the total job profit. Quickly, he was promoted to Refinish and Restoration Tech/Airbrush Artist for the two-man shop. “He now does all the paint and airbrush work and is continually taking on more of refinishing process,” Black reports. “Sunny reports that they have business lined up for the next two years and the community has become a fan of Colton’s airbrush work, with specific requests for his designs and skills.” Black said, “Colton is doing his dream job and is excited to keep learning and developing under the direction of a veteran in the industry, and UTI is very proud of Colton’s accomplishments and that he is pursuing his dreams.”

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Continued from Cover

Mississippi Reacts

Program within its Select Service Program changed all that. More than 100 MCRA members, as well as Mississippi Attorney General Jim Hood and John Wells of the Mississippi Department of Insurance, came together in Pearl, Miss. to hear what body shop owners from Birmingham, AL had to say about the PartsTrader program. Birmingham is one of the four national test markets

where the PartsTrader program is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot. The Mississippi Collision Repair Association invited auto body and repair shop owners from Birmingham to come to their meeting to discuss their experiences with PartsTrader.

“We wanted to know what the program is and what it will do to our industry, and the Birmingham group had nothing positive to say about the PartsTrader program,” said John Mosley, who owns and operates Clinton Body Shop Inc. and Clinton Body Shop of Richland in Central Mississippi. Mosley is a past president and one of the founding members of the association. “No one from State Farm has called, visited or made any attempt to explain anything about the PartsTrader program to our shops or to our local in-

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dustry,” Mosley said. “The only knowledge we have of this program is what we read in the trade publications and the short video produced by State Farm. My personal interpretation of the video leaves me knowing the program is real and they plan to roll it out nationwide. The shops will have no choice but to participate in PartsTrader if they remain on the DRP and our choice of parts suppliers will be limited and the profit on parts will definitely go down.” Even though he hasn’t tried it, See Mississippi Reacts, Page 44

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Shingle Springs Subaru Shingle Springs (530) 676-0444 (530) 677-6528 Fax www.shinglespringssubaru.com

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 41

Continued from Page 14

BMW CCRC

necessary to: order and install original BMW parts, follow BMW Repair Specifications and use only BMW NA approved paint, materials, tools, and equipment for every BMW collision repair.

CCRC Certification and Re-certification Process Initial Certification Visit The first visit by BMW’s vendor, Summit, will focus on ensuring basic compliance and review of the approved center’s collision repair facility’s core processes to profitably repair vehicles per BMW repair specifications (ISIS/ISTA.) A CCRC’s use of BMW NA approved paint, materials, tools, and equipment is also reviewed. Following the initial visit, the CCRC’s management team and Summit will develop specific on-site action plans for technical and ColorSystem training to ensure that these mutually agreed upon business goals are met by the CCRC.

Re-certification Visit If the CCRC continues to comply with the CCRC Program requirements, the CCRC receives an annual re-certification visit and follow-up by Summit. Following the re-certification visit, the CCRC’s management team and Summit will review specific onsite training and action plans to ensure that these mutually agreed upon business goals are met by the CCRC.

Certification Program Elements Technical and Non-Technical Training Requirements To ensure premium quality collision repairs, body and paint technicians will meet the training requirements listed in Appendix A. Each CCRC must have a designated individual who is accountable for approving staff training and determining the training path for each individual of the CCRC’s staff. The amount of training required is based on the CCRC’s body and paint market penetration, the size of the collision center staff, and the CORA Job Classification of the associates at the collision center. Training requirements are reviewed and adjusted on an annual basis. As the collision repair facility’s staff and market penetration grow, so will their training require-

ments. Training is currently offered at the following five locations: ● Woodcliff Lake, New Jersey ● Spartanburg, South Carolina ● Oxnard, California ● Ontario, California ● Wixom, Michigan Technical training is offered without fees; however, transportation costs, lodging expenses, meals, salary, and any other related travel expenses are the responsibility of the CCRC.

Collision Repair Facility Requirements The physical location of the CCRC must be within the BMW Center’s PMA.

Facility Criteria In support of the BMW brand, each CCRC may use BMW NA approved CCRC signage only if the facility consistently complies with the BMW NA recommended BMW facility guidelines. This applies whether the facility is on or off site in relation to approved certified center’s location.

Usage of Original BMW Parts Criteria The CCRC Program prohibits the installation of imitation, aftermarket, non-BMW remanufactured, and/or salvage (allegedly Like Kind and Quality) parts, including glass, on any year or model BMW passenger car or SAV. Failure to comply with this requirement qualifies for automatic decertification from the CCRC Program for at least the remainder of the calendar year in which these non-approved parts were installed.

Tools and Equipment A CCRC is required to have an on-site location for all approved tools and equipment necessary to properly repair BMW vehicles. The BMW approved tools, equipment, and materials are listed in Appendix C. Required tools, equipment, and materials are subject to change based on technology, required new tools, and special tool changes relating to new models.

Submission of Monthly Reports BMW NA’s CCRC Program requires participants to ensure timely submission of a monthly Parts Rebate Report. This Report verifies the CCRC’s purchases and use of original BMW parts on repairs, potentially eligible for a 2% rebate for those parts. This information must be submitted on a monthly basis directly to Summit Consulting by the 15th of the following month. Fail-

42 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

ure to comply with this monthly requirement of submitting the parts rebate will result in the CCRC forfeiting that month’s rebate. Late reports will not be accepted for the parts rebate.

Failure to Comply with CCRC Program Elements CCRCs that fail to comply with the CCRC guidelines will be in jeopardy of forfeiting their certification and the related BMW CCRC’s monthly parts rebate. This decision will be at the sole discretion of BMW NA. The CCRC will then have 90 days to correct the area(s) of non-compliance or risk de-certification. During this 90 day period or until such time as the CCRC has remedied the non-compliance issue(s); the BMW CCRC will forfeit all parts rebates. If the CCRC fails to resolve the action item(s) by their deadline, they will be de-certified and removed from the BMW CCRC Program. Summit conducts CCRC facility on-site inspections of BMW NA-approved paint, materials, tools, equipment, and review of the CCRC’s staff training requirements. Summit works with the CCRC’s management team to evaluate and assist the staff to manage

and improve the key elements needed to repair vehicles to BMW repair specifications and help increase profitability per collision repair. Summit’s team of seasoned professionals has extensive experience in the collision industry with top automotive distributors. Each consultant has the industry knowledge and training skills required to effectively assess and educate the CCRC’s staff to develop and utilize the processes for: ● Ordering and installing original BMW parts; ● Training collision repair staff; ● Repairing BMW vehicles to the highest quality standards; ● Analyzing financial performance, and establishing action plans; ● Submitting the Parts Rebate reports

2011 BMW CCRC Training Determining the number of technicians and estimators that must complete training to meet CCRC Requirements: ● 100% of the collision center staff dedicated to BMW repairs based on the technician’s Dealer Enrollment Management System (DEMS) job classification will be required to meet the training standards established by See BMW CCRC, Page 45

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Continued from Page 41

Mississippi Reacts

Mosley declared he isn’t interested in the electronic parts ordering application program and his answer to State Farm will be a resounding “NO!” if PartsTrader is a requirement to continue with the Select Service program. Mosley wants to stay with the Select Service program because it helps shops by saving time waiting on appraisers and allows the shop to determine what

type of part and which supplier would serve to properly repair the vehicle in the least amount of time. However, he is willing to give up Select Service if it becomes tied to PartsTrader. Mosley is one of several Mississippi auto body shop owners who opposes the PartsTrader program because, he says, it forces shops to wait for the software program to gather bids on parts. Supplements or a big repair job could create an administrative nightmare, Mosley said, adding that body shops would need to hire an additional

employee to sit at the computer all day monitoring the bid process. Bill Fowler, who owns Bill Fowler’s Bodyworks in Southaven, Miss., couldn’t agree more. “The concept that adding additional steps and wait times will increase efficiency and cost effectiveness flies in the face of logic,” he said. “The fact that neither State Farm nor PartsTrader executives can offer any tangible evidence that it does expedite the process, but instead answer direct questions with half-truths, evasiveness and outright misrepresenta-

tions gives great cause for concern and raises the suspicion that there are underlying ulterior motives to reduce profitability for collision repair shops. It is insulting for State Farm to suggest that shop owners/operators don’t have the good sense to procure parts in an expeditious manner and they have a better way that involves foisting considerably more administrative time onto parts suppliers and shop owners, with no cost or consequence to themselves. Regarding State Farm’s real motivation in deSee Mississippi Reacts, Page 53

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Continued from Page 42

BMW CCRC

BMW NA. The total number of dedicated and trained BMW technicians requiring training will be adjusted to take into account the CCRC’s BMW repair volume (in dollars) as a percent of its total repair volume. This same formula will also be taken into account for body shop estimators. Exceptions: ► SB011 GRAV Aluminum Repair: A minimum of 2 technicians per CCRC but at least 50% of body technicians based on repair volume; ► SB012 Level 3 Body Repair: A minimum of 2 technicians per CCRC but at least 50% of body technicians based on repair volume; ► SB018 Glass Repair and Replacement: A minimum of 1 technician per CCRC regardless of repair volume.

● Only those courses completed by associates or technicians who are regularly involved as part of their job description with physically performing body and paint repairs to BMW vehicles will count towards meeting the skill level requirements

● Technical training courses completed by managers, production coordinators, advisors, or other support staff members will not count towards certification requirements. ● Combination technicians will be treated as both body and paint technicians. ● Training completed by non-productive or support staff will not count towards certification requirements. Technician training course requirements are based on CORA job titles, which will be used to determine training requirements. It is imperative, then, that management lists the correct CORA job titles for associates and that Interactive Career Pathways (ICP)/ Dealer Enrollment Management System (DEMS) is updated on a regular basis. Please consult with your Regional Aftersales Development Manager (RADM) for more guidance. Improperly classifying technicians can severely impact a CCRC’s training requirements. It also affects an associate’s ability to log into CenterNet and DCSnet to research and obtain the most current repair information. It is in the CCRC’s best interest to regularly review and update

its ICP/RUA staff roster and make sure that associates have appropriate access to the BMW website. The CCRC’s training plan will be developed each year. A CCRC must then complete its training plan during the same calendar year (no later than December 31st). Adjustments to training plans may occur during the calendar year due to newly introduced training programs and/or changes to the CCRC’s technician count. Newly certified centers will receive a training plan at the on-site certification visit that will be pro-rated based on their certification date. A center’s progress towards completing their training plan is monitored regularly.

2011 BMW CCRC Program Tool, Equipment, and Materials Requirements Information Technology Requirements High speed internet service CenterNet access ICP administrative access ISIS/ISTA access on all terminals Separate computer terminal(s) for ISIS/ISTA access with printer located in or convenient to technicians that work in the metal shop Computerized estimating system Frame/Unibody Alignment and Dimensioning System Any one of the following systems: Car Bench with dedicated or universal fixtures Car-O-Liner bench with Car-OTronic/Vision electronic measuring system with either EVO 1,2,3 or CarO-Flex universal fixture system, B66 or B76-77 side supports Celette bench with dedicated fixtures or NAJA electronic measuring system along with positioning tool NA.1000 Welding and Riveting Equipment Any one of the following Compression Resistance Spot Welders: Car-O-Liner CR600 Celette MIDIspot QSVM 9000 Elektron MI100 Control MIDIspot QSVM 1200 T Wire Feed Welder: Approved MIG / GMAW welder Other Welding Equipment: Oxy-acetylene torch Riveting and Bonding Equipment TKR Punch Riveting Tool Aluminum Repair Equipment Aluminum stud welder (Wielander & Schill Stud Welder BSP03) Powerbird stud/punch rivet extractor (PN 81430301745) Pyrosil flame coating kit (PN 81430301740)

Dedicated aluminum hand tools consisting of body files, body hammers, body dollies, abrasive tools, and basic hand tools which are to be stored in their own, separate tool storage box. Curtain walls to separate aluminum work stalls, either portable or fixed with a minimum height of 8’. Hand or special tools (such as files, hammers, dollies, cutters, grinders, spoons, etc.) in sufficient quantities to properly repair vehicles dedicated to aluminum repair only must be marked as such.

Paint Shop Requirements Refinish Materials New CCRCs agree to purchase and use ColorSystem products for all repairs and refinish work performed on BMW Group vehicles at its collision repair location. As a reminder, any CCRC enrolled in the CCRC Program before October 10, 2007 has the opportunity to utilize Glasurit, Spies Hecker, or Standox in lieu of ColorSystem until their pre-existing paint contracts dated before October 10, 2007 expire. Once qualifying pre-existing paint contracts have expired, conversion to ColorSystem must then occur to remain a part of the CCRC Program. Spray Booth Down draft spray booth and oven must have the following minimum specifications: ● 14,000 CFM (or higher) air flow capacity ● 750,000 BTU (or higher) heating source Interior lighting system: 1200 LUX output, color corrected, with a Color Rendering Index of at least 96 CRI ● Three-stage air filtration system ● Air accelerators recommended for water-borne applications ● Refrigerant, desiccant, or membrane air filtration/drying unit The CCRC is responsible for ensuring that government regulations and restrictions are always followed in regards to paint application, storage and disposal. Please refer to your local EPA and OSHA guidelines.

Thanks to Kenny Tran, BMW of North America, LLC, Body & Paint Technical Business Assistant and to Kevin Miller, BMW Concord Collision Center Manager for information herein.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 45

Information Shops Can Use Presented at East Bay CAA Meeting by Ed Attanasio

accidents in the U.S. and more people with insurance were filing more claims than in 2010,” Forness said. “People are driving less, but there are more people out there driving, so they

shops to locate these non-OEM parts.” The parts climate is also changing as new vehicles embrace technological changes while attempting to meet increasing CAFÉ standards. “Too many cars now are being designed like aircraft,” Forness explained. “As they try to design cars that weigh less while maintaining structural integrity, we’re seeing more complicated parts mixes, consisting of more parts made of plastic composLKQ Industry Relations Representatives Albert Rendon (left) ites, carbon fibers, magnesium, and Lacy Towner attended to East Bay CAA chapter’s May high-strength steel and more meeting in Walnut Creek, Calif. aluminum. Also, the drive totend to offset each other. These num- ward making parts using more ecobers have gone up for the first time friendly materials includes things such since 2008, so that means there’s more as coconut fibers, soy foam for seat work out there right now.” cushions, mushroom roots for use in Another obvious factor affecting bumper covers, kenaf (a tropical plant), the collision industry is bad weather, and Ford Motor Company is researchForness said. And although it isn’t as ing the use of cooked chicken feathers important in northern California for use in some of its cars. (where we get rainstorms and earthOne alarming statistic is that more quakes that are way too infrequent to drivers are uninsured, Forness said. “In count on), bad weather helped the rest 2007, 86% of the drivers out there were of the country’s body shops in 2011. insured, but now it’s down to 82%. It’s caused by the recession, which is still lingering, and high unemployment.

If we’re only as good as the information we possess, people like Richard Forness are an invaluable asset to any collision repairer anywhere. As a highly-respected industry expert, national account manager for Industry expert Audatex (a Solera Richard Forness company), Forness gave a highly is a popular speaker informative presentation at who talks to body the May East Bay shops throughout CAA meeting the country about the current state of the industry and where it’s headed. On May 22, this 25year veteran, who ran a series of highly successful body shops in the Greater Minnesota-St. Paul area, shared his views and offered useful statistics with the 60-plus East Bay CAA members in attendance. By closely observing the collision repair industry while traveling throughout the Western U.S. for his job with Audatex, Forness has been able to keep body shop owners and collision-related vendors on the cutting-edge of new developments that can impact their businesses. It’s information that is available to any body shop owner who can Owen-Dunn, the CAA’s preferred insurance service provider, find it, but compiling and pre- was represented by (from left) CWCA Tim Dickson, Patricia senting it in a logical way pro- Romero-Kaleel and CSFS/CWCA Marty O’Hara vides a complete picture of the world “There were almost 3,000 severe of collision repair, Forness explained. weather events last year, with 1,894 “We need to know, because we’re tornadoes and a wide range of inciheld at a higher level by the public and dents involving hailstorms, hurricanes our customers,” he said. “Knowledge and high winds. As a result, there were is power and by having the facts, you more claims in 2011, and we can cite can be a better owner and operator. bad weather as one of the main reaWe need to understand these new ve- sons,” Forness said. hicles, so that we can educate our cusAnother interesting trend in the tomers in the right things. It’s vital collision repair industry involves the because we can’t risk peoples’ lives continuing spread of aftermarket and with partial knowledge, especially in recycled parts, Forness said. “The use this volatile marketplace .” of OEM parts in repairs is still dropFirst, auto accidents are on the deping, and in 2011, there was another cline, which is good for the human drop in their sales overall. America’s race, but not profitable for the collision cars and trucks have reached a record industry. Previously, the average driver age of 10.8 years, and despite all of the in the United States was in an accident price-matching programs offered by once every eight years. Now, it's about the carmakers, body shops and insurevery nine years, according to Forness. ance companies are incorporating more But, don’t fret about the number of acand more aftermarket and recycled cidents, Forness explained, because parts in their repairs. The proliferation the news is still positive overall. of computer alternative part search en“In 2011, there were 22 million gines is also making it easier for body

46 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

When the economy further rebounds, the insured rate will increase, but until it does, that’s a scary number.” One question that all body shops want the answer to is: will I be in business next year? Forness provided statistics to offer a glimpse into the future of body shops in this country. “There are approximately 34,000 collision shops out East Bay CAA there in the United Chapter President States, and 500Tiffany Cichon-Silva 1,000 of those are (Accurate Auto closing every year. Body) brought the But, for those who membership up to speed on current can survive, there is issues and good news. As the upcoming events at overall number of their May meeting shops decreases, the average revenues per shop will grow around 2% every year.” After the presentation by Forness, East Bay CAA Chapter President Tiffany Chichon-Silva announced that the chapter’s annual golf tournament, originally to be held on June 2, will be re-scheduled for sometime in August.

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Continued from Page 32

Disruption

For example, companies that have the technology in place to let consumers report the claim via a mobile device can capture a wealth of information on the facts of the loss, including photos. Incorporating this data into predictive analytics tools can help the insurer assign the claim to the best resource equipped to return the customer to pre-accident condition as quickly as possible. The ability for a repair technician to send messages to the claims adjuster electronically, versus calling and trading voicemails, can ensure speedier resolution to questions or issues that might otherwise hold up the repair. With customer satisfaction closely tied to the overall time it takes to return their vehicle to pre-accident condition, mobility can play a key role in reducing inefficiencies in the overall process. The recession led to a drop-off in driving, reduction in claim and fatality frequency, and a larger number of consumers opting to cash-out versus actually repair their car. As con-

sumers begin to ramp up new vehicle purchases, and see moderate upticks in employment, the industry will gradually return to an environment that more closely resembles the market pre-recession. Over time this will lead to moderate increases in customers opting to actually repair their vehicles versus living with the damage (i.e. moderate increases in volume of vehicles actually repaired), but the gradual infusion of crash avoidance technologies in new vehicles will likely flatten-out any inflections in accident/claim frequency. With the exception of storm or catastrophe-driven claims activity, it is unlikely the market will see any dramatic change in the current patterns of claim frequency over the next 18 to 24 months. Outside of the increases in comprehensive losses tied to erratic weather patterns and catastrophes, loss costs for liability and collision are returning to their pre-recession pattern of year-over-year increases between one and three percent. Inflation in replacement parts and labor have accelerated slightly as the U.S. emerges from the recession, but still point to overall increases in repair costs of one

to three percent. As new vehicle sales grow and ultimately show up in claims, repair costs will see some inherent lift. The juxtaposition of greater vehicle complexity in terms of electronics and materials with greater prevalence of crash avoidance systems may ultimately result in fewer but more expensive repairs in the future. The average consumer today has an auto accident once every seven to ten years. Auto insurers and collision repairers subsequently have very limited interaction with consumers and few opportunities to show the value of their products and services. The real moment of truth for the auto insurer and the repairer is at the time of an accident. To be successful in today’s environment, companies must tap into the notion of disruption – where companies develop innovative technologies that improve business processes, and fine-tune the messages to customers so they are delivered at the right time, on the right device, with the most customized content, and place themselves in a position to meet the expectations of today’s consumer in a way that delivers value.

Susanna Gotsch is Director, Industry Analyst at CCC Information Services Inc. She has been with CCC since July of 1992. Susanna brings twenty-plus years of experience within the automotive claims industry as Director, Industry Analyst. She has authored The Crash Course, CCC’s annual publication on trends impacting collision repair and total loss costs since 1995. This publication has become a key resource for the industry in understanding how broader trends within the economy, new and used vehicle market places, and collision industry are impacting auto claim frequency and costs. She is also responsible for the generation of all trend analyses of the insurance and automotive industries published by CCC since 1995. In 2011, Ms. Gotsch was selected as one of five Most Influential Women in the Collision Repair Industry through the annual industry honorarium established by AkzoNobel Automotive & Aerospace Coatings America (A&AC). Coypright 2012 CCC Information Services Inc. All Rights Reserved. Confidential & Proprietary

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 47

Chapter Meeting Features CA Labor Enforcement Task Force by Tom Franklin

The CAA’s Glendale-Foothill Chapter held a special meeting at the Brookside Country Club, 1133 Rosemont Ave, Pasadena, CA, on June 13 to hear details about the new California Labor Enforcement Task Force (LETF). The presenters at the meeting included Mark Janatpour, Senior Deputy Labor Commissioner, Freeman Baldwin, Bureau of Automotive Repair representative, Aston Ling, Cal/OSHA Senior Safety Engineer, Nicole Zouein, Board of Equalization Compliance and Outreach Lead, and Tracey York, California Employment Development Department Joint Enforcement Agent. The first presenter was Mark Janatpour who made it known quickly that this task force could be a team of enforcers from all of the above agencies. They could swoop down on a shop, unannounced, and issue citations for violations of any requirements pertaining to any of these agencies. You could feel like the infantry, the artillery and air force, were attacking you all at once. If the hand

grenades or mortar fire didn’t get you, a bomb would. The next two hours were a litany of possible violations and citations that go as high as $20,000 or more. Janatpour pointed out that their agencies have new enforcement weapons like data sharing. A report to one agency that was missing or inconsistent with a report to another agency could now trigger an investigation, and a complaint to one agency that might be relevant Aston Ling to another agency could also trigger an investigation. Data sharing opens an entirely new Pandora’s box of enforcement possibilities. Janatpour opened with a summary of new legislation. For example, now misclassifying an employee as an independent contractor can result in serious penalties, a public notice and possibly a revocation of a shop’s license to operate. Another rule makes any advisor, like an attorney or accountant, who advises the misclassifi-

cation, jointly liable. This topic was available by calling 800-963-9424. greatly enlarged upon by Tracey York Aston says the best way to avoid viowho covered in great detail who qual- lations is to have a good comprehenifies as an independent contractor and sive safety program for employees. also when family members are exempt New legislation redefines hazards so that if there is a “realistic possibility and when they are not. Freeman Baldwin, Bureau of Au- of death or bodily harm,” it could be a tomotive Repair representative, had serious violation with penalties up to the least to say but pointed up the re- $25,000 and, if willful, up to $70,000. quirements that we’re all familiar A shop does have a right to an inforwith. An unlicensed shop faces a penalty of up to $5000 and closure until being licensed. The most frequent violation is an inaccurate BAR license. Freeman suggests regularly checking to get updated on new regulations, keeping invoices and quality assurance in compliTracey York and Nicole Zouein ance with regulations, and mal conference, a pre-hearing conferpossibly even participating in their ence, and a formal appeal up to 15 “Education First” program. days after a citation. After the 15 days, Aston Ling, Cal/OSHA Senior all bets are off! Safety Engineer, presented an inThe next presenter was Nicole depth look at the many potential violations and citations a shop might face Zouein, Board of Equalization (BOE) Compliance and Outreach Lead. when inspected. If a shop owner has Nicole has been a BOE auditor for 14 any doubt about his or her shop’s compliance, a no-cost consultation is See Chapter Meeting, Page 51

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Continued from Cover

Great Consumer Bill

“This bill doesn’t benefit consumers, it benefits the auto body shops. It provides them with more money for the work that they’re doing,” said Francis O’Brien of the Insurers Association of America. In a letter to policy holders, Robert A. DiMuccio, chairman and CEO of Amica Mutual Insurance, said the legislation that just passed “allows shops to set inflated prices for labor and repairs and [use] the threat of lawsuits to charge these exorbitant repair costs.” Until now, if a shop felt that it had been unfairly reimbursed, it could take the insurer to court, but only using an assignment of proceeds case where the shop would legally seek reimbursement representing the consumer. “This is a great consumer bill,” said Jina Petrarca-Karampetsos, who testified in support of the measure prior to the Senate vote. “This is a great bill. It’s a fair bill. This doesn’t require insurers to set a rate for every shop. This just says to every shop, ‘Hey, if you feel you are not getting a fair rate,

then go ahead and prove your position in court.’” PCI New England Vice President and Regional Manager Frank O’Brien was actively posting messages on Twitter as the Senate Judiciary Committee debated the bill on June 12. O’Brien said the bill was bad for consumers and called the measure “the worst auto body bill ever.” He said insurers described the bill as “unprecedented” and the “most one-sided they’ve ever seen.” “This bill doesn’t benefit consumers, it benefits the auto body shops. It provides them with more money for the work that they’re doing,” said Francis O’Brien of the Insurers Association of America. AIA believes H.B. 7782A allows for nationally unprecedented private rights of action for auto body shops directly against insurers and is "poor public policy." “No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third-party payers under threat of litigation,” said Gary Henning, AIA Northeast region vice president. “This legislation represents poor public policy which could lead to an explosion of

litigation. It should be vetoed when it reaches the governor’s desk.” AIA says that Rhode Island is one of the most expensive states in the nation for auto body repairs. Currently, drivers pay the sixth highest collision insurance premiums in the nation due in large part to higher-than-average claim costs, including labor costs which exceed the national average by 26.7 percent. The bill also includes specific language stating that an insured may still assign the rights of their claim to a body shop if they so wish. The bill passed the Senate 24-11 and is now on the Governor’s desk, provides access to small claims court for shops who feel they must sue to be fairly reimbursed. Current law would require a shop to take these types of issues before a Superior or District Court, with proper legal representation. “If this bill passes, a shop can represent themselves in small claims court for a filing fee of $80,” said PetrarcaKarampetsos, speaking on behalf of the Auto Body Association of Rhode Island (ABARI). The measure, originally sponsored by ABARI, also includes specific language stating that an insured may still assign the rights of their claim to a body shop if they so wish. The insurers testifying against the bill argued that the bill forces them to accept whatever a shop demands under the threat of being sued, but that is not so, according to Petrarca-Karampetsos. “This isn’t a name your price bill, this is a bill that requires a shop to prove before a court that their price is a fair one, that their charges are reasonable.” “The bill doesn’t say that insurers have to reach an agreement. It just says that they have to negotiate in good faith, and if you can’t reach an agreement, the insurer may pay whatever it determines. If the shop doesn’t feel that’s fair, the burden is on them to prove it in court.” “This actually removes a lot of the hassle and delay for consumers,” Petrarca-Karampetsos said. “If the shop and insurer don’t agree, this bill says to the insurer, ‘Just pay the claim on your number, whatever number you think is fair, write the check, leave it with the shop, and let them worry about it.’ This eliminates all the delays of the past. But perhaps more importantly, the customer is not involved. It leaves them out of it.” “This law is a simple, fair solution. It doesn’t require regulation. It gives insurers a chance to challenge

everything we say, and it does so without a sweeping mandate,” says Petrarca-Karampetsos. But that isn’t the only new law this bill would create. The measure also makes changes to how total losses are handled in Rhode Island. Unless Governor Lincoln Chafee vetoes the bill, insurers will no longer be permitted to declare a vehicle a total loss if the cost to restore the vehicle to pre-accident condition is below 75 percent of the fair market value of the car. “This part of the bill is a real win for consumers,” said Petrarca-Karampetsos. “Today, it doesn’t matter how much a customer might beg and plead with their insurer to fix their car, if they don’t want it totaled. If their insurer got a high bid on the salvage, and can save money even by totaling their car at 50 percent or less, they total the car, no matter what their customer wants.” In addition, the bill sets forth a new definition of fair market value in the case of total losses. According to the bill, “Fair market value” means the retail value of a motor vehicle as set forth in a current edition of a nationally recognized compilation of retail values commonly used by the automotive industry to establish values of motor vehicles. The new definition, according to Petrarca-Karampetsos, would preclude the use of products developed exclusively for the insurance industry, such as the Audatex, CCC, and Mitchell systems, and require the use of guides like the NADA book used by car dealers. The Property Casualty Insurers Association of America (PCI) and the American Insurance Association (AIA) are both opposed to the bill. AIA, in a press release on June 13, described the bill as “reckless” and called on Governor Chafee to veto the measure. The association said the law would unleash a flood of lawsuits against insurance companies. The bill would take effect upon passage. Downwww.autobodynews.com load the text of the legislation at autoCHECK IT OUT! bodynews.com.

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 49

Custom Corner with Rich Evans

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Building a Junior Motor Sport Vehicle for 11-Year-Old Driver I’ve been very busy the past three width and positioning. We got a Legmonths working on a new project for end vehicle and I stripped the body off Dan Weaver of the Bakersfield area it and I had Brandon’s dad, Dan, look and his 11-year-old son Brandon around and get some bodies. They Weaver, a junior race car driver who looked like miniatures of NASCAR, so we could make is number #1 in California and #3 in a plug. Making the the nation for his class, Bandalero plug means getting Bandit Division. with Thomas the shape and deDan and Brandon wanted me Franklin to sign in place and build them a junior motor sports vehimodifying it to cle and I’m excited to share this new look like what Dan project with you. I was pretty pumped wants. Dan fell in up. I’ve built body kits for the MusBrandon Weaver. love with my Mustang, I’ve worked with Mopar, and (From File) tang and he likes built the polyurethane body kits for the Challenger. Now, it’s going from my style of the bodies. Using Fiberparts to a complete vehicle—I am all glass is obviously better than metal at about that. This is a challenge for me. this point because race cars get all It brings on my creativity and I will be banged up, they get wrecked and then able to learn more in depth what it they have to change out the body. with Dick Strom We cut the body in half because it takes to build a complete vehicle. I started with a basic foundation was a little long, shortened it up, got it and that’s a great way to get a head to fit the wheel base of the Legend, start. What I decided to do with this spliced it together and cut off the front project is to build backwards. We end because we’re not going to be started with a Legend body because using that front end. I took pre-existBrandon is just a little guy, 70–80 ing body parts that I’ve made and pounds max. This way I can gain the pulled some parts out of molds so I wheel base and get some ideas about can cut them up and modify them to

On Creative Marketing

Opinions Count

Action Counts with Lee Amaradio Jr.

Your Turn with Sheila Loftus

Shop Showcase with Janet Chaney

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fit this car, which I would call a ‘minime’ because it’s a smaller version. Next, we took the splash off a Mustang hood, cut it down, and spliced it in so we can get our hood looking right, and then we got the body secured to the frame. We definitely needed to make accessories, so I came up with the scoop, the rear wing accessory, the left and right quarter scoops and the front fender scoop, and that gives us nine pieces, which means I need to make 9 molds. With all that being said, the proper process of doing this is sculpturing it out and making sure all sides are symmetrical, such as the left rear wheel wells matching the right wheel wells. I am modifying the rear of the car to look more like the Mustang, and the sides I have to modify to make the lines look more like the Mustang, to give them a Rich Evans designed ve-

hicle. We are using some features to replicate the Mustang. The whole idea is to use the taillights and headlights from a Mustang. We don’t want to have to re-create the wheel and have to get into tooling expenses by making our own headlights and taillights,

so we need to utilize what’s out there. After getting it pretty close, I’m using 80-grit sandpaper. PCL #901 once again has stepped up to the plate. I cannot build any cars without that product. After shaping with 36-grit and then 80-grit, I’m ready for primer. For the first process of primer, I lay about

I am excited about this project. It’s another challenge. I have to thank my sponsors, PCL, 3M, SATA spray guns, Infratech heat lamps and SoftSanders, as well as Brandon and his dad for allowing me and believing in me to do this project. Also, check out my new website, builditwithRichEvans.com. DIY (Doautobodynews.com it-yourself) car builders are the root the of American car culture and one that I grew ness with Promote your business with up in. If you guys are building cars out in your garage, I featuring an exclusive article featuring could show up at your place services. your products or services. and give you three days of free help with your own doit-yourself car building project. Fill out an online application from my new or details! Call for details! website. We’re teaming up with my sponsors for free 251 800-699-8251 are at now. Three months of hard work products and parts. I want to know to get to the molds. your story. three gallons of primer on the body. PCL is both a timesaver and money saver. I’ll use 80-grit to shape it, then guide coat it, then come back with 150-grit, re-primer it with another galto lon this Southwest or gallon and a half Edition? of primer, sand it again with 150-grit and come back with 400 wet. Then, we’re ready for molds and that’s the point where we

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Continued from Page 48

Chapter Meeting

years, but the last three years she’s been assigned to SCOP, the “Statewide Compliance and Outreach Program.” As part of this program SCOP specialists will go door-to-door visiting businesses to make sure they have the state tax and fee permits and licenses displayed that they need to operate. They also make certain state records are updated and correct. Unregistered businesses are given Freeman Baldwin an opportunity to register within one week, but if there has been an obvious intent to evade taxes the owner might be issued a misdemeanor citation. The last presenter was Tracey York, California Employment Development Department (EDD) Joint En-

forcement Agent. This department collects and distributes unemployment and disability benefits and monitors payroll tax deductions. A major focus of enforcement is combating the underground economy and any failure to correctly pay state taxes and Workers’ Compensation. As noted earlier, a key focus is identifying any misclassification of an employee as an independent contractor. While the IRS requires only three elements to classify an independent contractor, the State of California considers eleven factors. Information sheet DE 2318 Rev. 3, passed out at the meeting and available from the EDD, specifies these factors as they apply to the automotive industry. Penalties for misclassifying go back three years and can require paying all unpaid wages, back taxes, workers’ compensation and other unpaid payroll deductions. Also the potential for “data sharing” with other agencies could result in additional astronomical penalties. As Tracey says, “It’s definitely not worth it.”

Farmers Insurance Involved in Two Fraud Prosecutions, Two Shop Owners Arrested and Sentenced for Fraud

The Amador County District Attorneys Office, in conjunction with the Calaveras County District Attorneys Office, obtained a “no contest” plea to a single count of insurance fraud from a body shop owner in Valley Springs, CA, as a result of their investigation. Larry Robbins, owner of Franks Frame and Body Shop, was sentenced to 36 months felony probation, 60 hours of community service, ordered to surrender his Bureau of Automotive Repair (BAR) license and pay approximately $28,000 in restitution. The investigation involved post repair inspections of vehicles repaired by Robbin’s shop, Franks Frame and Body Shop, 127 Main Street, Valley Springs, California. Farmers Insurance, SIU Major Operations Unit, conducted post repair inspections on Farmers insured vehicles and supplied the inspection documentation to the Amador County District Attorneys Office and California Bureau of Automotive Repair for investigation. In 2011, The California Attorney General, on behalf of the Bureau of Automotive Repair, filed formal accusations, alleging; fraud, misleading statements and departure from accepted trade standards. “This case illustrates the cost of fraud for Auto Repair shops and owners. The shop owner has been ordered to surrender his BAR license and pay significant restitution,” stated Sean Zavala, Farmers Director of Special

Investigations. “We will assist law enforcement on criminal matters and file our own civil actions when appropriate to deter anyone who submits false insurance claim. It is our commitment to our policyholders to protect their premium dollars,” Zavala added. In a separate case, Santa Clara County District Attorney’s Office, in conjunction with the California Highway Patrol Insurance Fraud Task Force served Santa Clara shop owner Dong Suk Choi with an arrest warrant on one felony count of Insurance Fraud. The investigation involved the re-inspection of one vehicle previously repaired by Choi’s repair shop, Choice Auto Body at 1975 Lafayette Street in Santa Clara, California. The re-inspection was conducted by Farmers Insurance, Major Operations Unit in cooperation with an Investigator from the California Highway Patrol Insurance Fraud Task Force, Golden Gate Division ISU. The Investigators found that Choi had not completed the repairs according to the agreed upon estimates including the repair of items that were written to be replaced in the insurance estimates. Farmers says it applauds the efforts of the Santa Clara District Attorney’s Offices and the Amador and Calaveras County District Attorneys Offices and the California, Bureau of Automotive Repair for their ongoing efforts in the fight against insurance fraud.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 51

Industry Insight

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

SCRS Meeting Discusses Insurance Regulation, State Farm with John Yoswick

State Farm’s PartsTrader program, the repairs. SCRS worked with CARFAX use of shops’ estimating and other and determined the report was in error, data, and how one state regulator incorrectly linking collision damage oversees auto insurers, were among on one vehicle to the VIN of another. with Ed Attanasio the topics at a recent board meeting of CARFAX was able to correct the the Society of Collision Repair Spe- error, Schulenburg reported. cialists (SCRS). He also said that SCRS held a A number of participants at the meeting in late April with I-CAR and meeting held on April 24 in Oklahoma representatives of many of the top auCity, OK, wore large buttons oppos- tomakers to discuss increasing the ing “data mining” by theEd “Big Three” amount and availability of published with Attanasio information providers, indicating they OEM repair procedures. The meeting wanted the ability to “opt out” of hav- was the result of another joint stateing their shop estimating data aggre- ment by SCRS and other trade associgated and used or sold. The buttons ations last November recognizing were part of the follow-up to a joint published automaker repair procestatement that SCRS and two other dures as the “official industry-recogtrade associations sent in January to nized repair standards for collision CCC Information Services, Mitchell repair.” The associations also asked Iand Audatex, voicing concern about CAR to create an industry council “to collection and use of shop data. identify gaps in existing OEM proceSCRS Executive Director Aaron dures and develop processes to close Schulenburg said that as of late April, (those) gaps.” only CCC had provided a formal reThe need for training and stansponse to the associations’ request. dards was illustrated in a presentation “The response addressed that they by SCRS board member Paul Val, have a mutual concern in protection of who brought to the Oklahoma City data, but didn’t really address the meeting a quarter panel his Arizona questions that we’d asked relative to shop had removed from a poorly-rean opt-out policy or discontinuation of paired vehicle brought into his shop collecting the data,” Schulenburg said. because of a water leak in the trunk. He said it is his understanding Val said the MIG welds used to “atMitchell and Audatex are working on tach” the quarter panel didn’t penetheir responses, which he said the as- trate, and no weld-through primer or sociations intend to share with the in- corrosion protection had been applied. dustry. “You could literally just pull the One aspect of data privacy con- quarter off,” Val said. cerns that Schulenburg said the assoHe said his shop had to do $3,000 ciation has looked into were reports of in re-repairs to the vehicle. He said the vehicle accident histories showing up shop that had done the original work on CARFAX reports—instances in under an insurer direct repair program which the vehicle owner presumed the paid his shop for the rework with a information could only have been ob- credit card – and remains on the direct tained through the collision repair repair program. shop that prepared an estimate on (or “Someone is going to get killed in repaired) the vehicle. one of these cars,” Val said. In two of the three cases of this Also at the meeting, a presentatype of situation that SCRS looked tion by representatives of the Oklainto, Schulenburg said, the CARFAX homa Department of Insurance was data actually had been sourced though probably both heartening and dislocal police accident reports. In a third heartening at times for collision reinstance, a woman seeking to trade-in pairers. a vehicle was upset that a CARFAX On the upside, Michael Copeland report indicated that her vehicle had of the Department’s anti-fraud unit had structural damage repair, when confirmed the regulator is now foshe knew this wasn’t the case. She cused more on fraud against concontacted the shop shown on the sumers by insurers, rather than CARFAX report as having done the consumer insurance fraud, which had

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52 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

been its priority under some previous Insurance Commissioners. Copeland also said he’d like to partner more with the Oklahoma Auto Body Association to address issues of concern. On the other hand, Jason Johnston, a senior claims processor and reviewer for the Department, seemed to acknowledge the state’s anti-steering law is being interpreted loosely. The law prohibits insurers from making shop referrals unless requested by the vehicle owner. “But we’ve determined the insurance company can say, ‘Do you have a place in mind, or we can offer a repair place,’” Johnston said. “We give (insurers) that option.” He said he’s probably had only a half dozen complaints related to steering, and they are difficult to address because it’s usually a shop’s word against the insurer’s. He said an audio recording or affidavits - enough to show a pattern - could help.

But he was also asked how a shop can combat some of the subtle but perceived as unfair “steering” techniques used, such as an insurer telling a customer the process could be slower at the non-DRP shop and thus could result in the customer having to pay some of their own rental car costs (even if the customer has 30 days of rental coverage on their policy). Johnston’s only suggestion: Perhaps the non-DRP shop can offer something to better compete for that customer’s business, such as a free rental car. State Farm’s PartsTrader program had been the focus of a closed session of SCRS’ board meeting, but during the open session, Schulenburg asked State Farm’s George Avery if the insurer would move forward with PartsTrader if shops, dealers and other parts vendors are resistant to it. “At this point, we are moving forward,” Avery said. “e are moving See SCRS Meeting, Page 54

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On Creative Marketing

Tom Franklin has been a shop sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Maximizing Referrals to Your Shop with Thomas Franklin

During the past 15 years or so, I've rals by agents who attend meetings at noticed that many body shops spend the shop. In checking with other a great deal of time and money pro- shops that market to agents, I found moting to referral sources that never this was a common occurrence. Once send a single job. There is some an agent either came to a shop, logic to continually dripping on brought his or her vehicle to the shop prospects in the hope that at least a for repairs, or had a customer use that few of them will send a job or two shop with a good result, the agent one day. And if the promotion going then did actually refer business to the with Dick Strom shop. out isn't too costly, it can't hurt. A physician's Hippocratic oath But what if more effort were applied to reinforcing those sources that says, "First do no harm." Someone contemplating a referral to a shop actually do refer jobs? In a busy market, I know of a shop that promotes will have a similar concern: "First, to 200 insurance agents a month. avoid any harm." An agent or other Less than 10% of those agents ever referral source knows that referring a refer work to the shop, and even job to a shop that does a bad repair fewer actually send work on a regular will reflect badly on him or her and basis. This particular shop also has a may lose that customer or client. So DRP with an insurance company that great caution is exercised in making has regular agent meetings and has referrals. On the other hand, I've spowith room Lee and Amaradio Jr.with agents who said they had made the conference area ken available for agent and manager gotten a glowing report from a customer who had been referred to a meetings fairly frequently. This has shop and found that referral formed resulted in significantly more refer-

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an even closer bond with the customer. In a case like this, referrals can be an excellent way to solidify or build business. This should be a clear message to a shop owner or manager seeking to build referral business. Getting the referral source to come to the shop to see it in action, or better yet to bring his or her own vehicle in for repairs will greatly improve the chances of getting referral business. Depending on the financial capability of the shop, it could even be worthwhile to offer to do a free repair to a potentially high volume referral source. Much depends on a shop carefully identifying who has referred a job. When a real referral source has been identified, it's time to reinforce that willingness to refer in every way possible. Many shops send thank you notes or offer a free car wash as a thank you. Others offer small gifts like theater tickets, dinner for two at a nice restaurant, or a voucher for use at a beauty parlor, local gym or barbershop. Some agents aren't allowed to receive gifts, so a more subtle form of appreciation is in order. Like the shop, agents, car dealers and other referral sources are also looking to build their business. Posting their card or flyers at the shop would be a minimal thing to do, but hosting a promotional event at the shop could be appropriate for someone who frequently referred business. Some events can be a win-win for both the shop and an agent or

dealership promotional person. A safe driving event for teenagers can bring in parents with insurable and repairable vehicles. In a previous article I wrote about a car care clinic for a woman's professional network group. Promoting a good referral source as a sponsor and co-presenter for such an event would be an especially effective way to reinforce that source of referrals. Happy customer referrals can also be enhanced with recognition. One shop tracked the number of jobs per month and year and awarded a prize to the 10,000th customer. A shop might also create a "Customer Appreciation Day" once a month, and invite all customers who had referred jobs to come in for a fancy lunch and also perhaps a car wash. Unique souvenirs could also be awarded, like a coffee mug or special hat or T-shirt with the shop's logo. The key element with individuals who refer business is to create a sense of family and belonging. And when one of these referring customers comes back for repairs on his or her vehicle, the shop might award a surprise rebate. It all comes down to recognizing who actually sends work. Radio, TV and publication ads reach out to the general public. Flyers, mailers, emails and more, target potential (but not yet real) referral sources. But there's nothing like reinforcing and rewarding those who send the real jobs and provide the funds for reaching out to grow even more.

Continued from Page 44

“They are coming to a collective realization that all the language, terms and conditions contained in that agreement aren’t just words to fill space. Each and every one of those conditions will eventually come to fruition and many are reconsidering if it is worth it. As far as me giving the program a try, I have been quoted as saying, ‘If you put a s#!t sandwich in front of me, I don’t have to take a bite to tell you I don’t like it.’ So, no, there is no chance I will participate in the program, either voluntarily or involuntarily.” To read the rest of this regional article log on to Autobodynews.com.

Mississippi Reacts

manding that this program be implemented—I believe insurance companies view shop profits as money they left on the table. They won’t be satisfied until they have it all,” Fowler said. Fowler said he won’t participate in the program either. “I think this PartsTrader debacle has caused many a shop owner to drag out the Select Service agreement they signed and revisit just exactly all the things they agreed to,” said Fowler.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 53

Continued from Page 52

SCRS Meeting

through our test. We’re obviously gathering information, making adjustments along the way. But I can tell you that State Farm is moving forward with this. We think it is in the best interest of our customer. I know we don’t have agreement, and that is fine, and I carry that information back. (And) something could happen that I can’t predict. But I can tell you that, right now, that we are

moving forward with the process with our Select Service providers.” Schulenburg said SCRS also had worked with State Farm on an issue related to shops in several markets being asked by the insurer to attempt repairs before replacing a part, but if replacement eventually proved necessary, local State Farm claims staff were telling the shop they could only pay for one or the other, but not both. Schulenburg said State Farm was able to communicate to their staff that “if it’s legitimate to have attempted re-

pair and then it’s necessary to replace, that certainly there is no (company) policy prohibiting (paying for) that.” Avery said advance communication between the shop and the insurer is the key. “We had cases where it really boiled down to there being no agreement up front,” Avery said. “So that’s what we communicated. Please have communication with the repairer up front and say ‘Look, if we decide to pull this and it doesn’t work, what are we talking about?’”

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PartsTrader Issues Open Letter

PartsTrader’s letter, from CEO Rob Cooper can be read in full at autobodynews.com. Search “PartsTrader.” It reads in part: There has been a great deal of public commentary on this initiative, and much of it has been negative. Unfortunately, much of the commentary has been based on inaccurate information. We are working to rectify this through ongoing industry communications and product education to all constituent groups. This is one of the reasons we have recently launched our new web site at www.partstrader.us.com.website.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 55

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