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YEARS
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Industry Year in Review—A Month-by-Month Look at the Most Interesting Collision News of 2012 by John Yoswick
A lot happens in the collision repair industry, so trying to compile it all into a single year-end review is a challenge. But here’s our look at what we saw as among the most important or just plain interesting and memorable news item, event or quote from each of the last 12 months.
January State Farm’s George Avery announced that his company is testing the electronic parts ordering system “PartsTrader” with two collision repair businesses. He declined to identify the shops, saying that it is too early in the testing “to put those folks
under the microscope and ask, ‘What do you think of the new system?’” Lots of shops have since voiced what they think of the system. By the end of the year, the program was being rolled out to a fifth market (Chicago) George Avery for a total of about 600 Select Service shops.
February John Borek of Autocraft Bodywerks in Austin, TX, wasn’t accepting the explanation from American National Property and Casualty Company See Year in Review, Page 12
Northern Michigan Body Shop Association Looks Back at 2012
Anderson’s second topic, “Understanding Continuous Improvement” focused on the many issues a repair facility deals with on a daily basis and emphasized measures a shop can implement to reduce the root cause of those issues. Early in the year, the NMBSA also became an affiliate member of the Society of Collision Repair Specialists (SCRS) in support of its educational material such as “The SCRS Guide to Complete Repair Planning” and information specific to insurer activities such as parts procurement. In May, the association held its first trade show in Petoskey, MI. See Northern Michigan, Page 16
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
The Northern Michigan Body Shop Association kicked-off 2012 with Mike Anderson of Collision Advice presenting two topics to collision industry professionals. The first topic, “Educate, Not Alienate” encouraged estimators and technicians to “have the facts ready” when communicating with an adjustor, insurer, and/or customer. He explained that too often in this industry, emotions run high which tends to negatively affect the situation at hand; it’s best to be prepared with the facts, data, and “bottom-line” to be knowledgeable regarding the issue when trying to make a point—you’ll get much further when you have facts to back you up.
ASA Michigan’s 2012 in Review The Automotive Service Association in Michigan began 2012 with roundtables held throughout the state for licensed repair facilities representing both collision and mechanical industries. The meetings focused on the proposed revisions and enforcement of Public Act 300 of 1974, the Motor Vehicle Service and Repair Act. “Relatively speaking, this law has not been updated since 1974 and is in desperate need of updating,” said Ray Fisher, President of ASA Michigan. “The law was created to protect consumers and repair facilities by providing ‘ground rules’ which helped to avoid frivolous lawsuits. And we are now seeing it abused during these challenging economic times with unlicensed shops advertising on Craigslist and circumventing the law.”
VOL. 1 ISSUE 5 JANUARY 2013
“It provides an unfair advantage for those who have not ‘played by the rules’ and it provides false security to consumers; exactly the reason the law was created in the first place,” Fisher said, adding that not only are they advocating for a crackdown on abusers, but also for updating the law to make it more “user friendly” for repair facilities to use. “One of the elements of this law is validation that the consumer authorized the work requiring a signature or other verbal validation,” Fisher said. “Well, today we have facsimile machines, email, twitter, Facebook, and with future digital means probably forthcoming, we think that these options documented properly should be a part of the law. Currently, if a conSee ASA Michigan, Page 38
IABA Looks Back on 2012 and Forward to 2013
As 2012 comes to a close, the Indiana Auto Body Association reflects on its accomplishments over the past year. According to Tony Passwater, Executive Director, “Early in our organization, we realized that being a lone state association would not be in the best interest of our prospective members. In 2005, we affiliated with the SCRS and through this relationship, have reaped many benefits and national support. In 2012, we also became an associate member of the ASA and an accredited business of the Better Business Bureau to better position ourselves not only within the industry, but to the consumer as well.” Early in 2012, the IABA released an online members portal that includes many valuable features for its members, including hundreds of training programs, best practices, industry documents a benefits section, as well as a discussion forum. In addition, the IABA developed an online training program for the Indiana 326 IAC 8-10 regulation requirements which must be completed every year prior to May 1. This program is free to IABA members. In mid 2012, the IABA conducted a series of Town Hall meetings across the state as an industry out-
reach. The meetings were designed to update all industry members regarding the PartsTrader issue, reaching hundreds across the state. “Since early 2012, our association has been working on a better approach to distinguish our members from others in the eyes of the consumer and to better educate the vehicle owner of their rights when involved in an accident,” Passwater said. “This could lessen the effects of ‘steering’ that takes place daily, and work to ensure the vehicle is being repaired properly.” In early 2013, the IABA rolls out its new program, “A Shop You Can Trust.” The association expects the program to become a huge benefit to its members and vehicle owners. For more information, see www.aShopYouCanTrust.com. The 3rd Bi-Annual Convention and Technology Showcase is scheduled for February 22–23 at the Lincoln College of Technology and will include top industry presentations and technology exhibits and demonstrations. Go to: www.IABAconvention.com for more information. “2013 looks as promising as 2012 in which we saw our membership grow over 100%,” Passwater said.
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Contents AASP-MN Looks Back on 2012, Plans
for 2013 . . . . . . . . . . . . . . . . . . . . . . . . 4
ABRA Acquires All Five IN Collision
Solutions Shops . . . . . . . . . . . . . . . . . . 4
Them Here. . . . . . . . . . . . . . . . . . . . . . 24 NATIONAL
26 Insurers Now Paying Gunder’s Rate
Increases. . . . . . . . . . . . . . . . . . . . . . . . 3
ABRA Acquires Schoonover Bodyworks
American Honda Launches Two New
Allstate, Sterling Autobody Give Gift
ASA Collision Division Recaps 2012,
ASA Michigan’s 2012 in Review . . . . . . . . 1
Audatex Extends Contract with Boyd
in Stillwater, MN. . . . . . . . . . . . . . . . . . . 4 of Transportation . . . . . . . . . . . . . . . . . . 4
Burned MN Body Shop Condemed
after Fire . . . . . . . . . . . . . . . . . . . . . . . . 9
CARSTAR Adds 25th Location in Ohio . . . . 8 Goodguys 30th Anniversary Season
Includes Rod & Custom Events in
Consumer Websites. . . . . . . . . . . . . . . 28 Moves Forward into 2013 . . . . . . . . . . 18
for Estimating . . . . . . . . . . . . . . . . . . . 31
Automaker, OEM and Recall News . . . . . . 22
CAPA’s Lighting Standard Expanded to Include Testing of HID Lamps and
Positioning Motors. . . . . . . . . . . . . . . . 26
Great Lakes Region . . . . . . . . . . . . . . . . 6
Idaho, Utah, and Nebraska Collision
Collision Centers’ Father-Son Team . . . . 8
Industry Year in Review—A Month-by-Month
to 2013 . . . . . . . . . . . . . . . . . . . . . . . . . 1
News of 2012 . . . . . . . . . . . . . . . . . . . . 1
IABA Looks Back on 2012 and Forward
Groups Join SCRS . . . . . . . . . . . . . . . . . 6
Look at the Most Interesting Collision
IN Expansion for Painters Supply &
NC Repairer Sues Insurer on Behalf
Michigan Body Shop Sponsors
NHTSA Expects to Propose Black Box
Northern Michigan Body Shop Association
Northeast Shops Still Recovering
Repair Shop Damaged by Fire . . . . . . . . . . 6
Rhode Island Shop Owner Arrested Again . 37
Equipment Co. . . . . . . . . . . . . . . . . . . . . 4 Christmas Contest . . . . . . . . . . . . . . . . . 6 Looks Back at 2012. . . . . . . . . . . . . . . . 1
Subaru May Expand Indiana Assembly
Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
COLUMNISTS
of Customer . . . . . . . . . . . . . . . . . . . . . 8 Requirement . . . . . . . . . . . . . . . . . . . . . 6
from Sandy . . . . . . . . . . . . . . . . . . . . . 36
Sherwin-Williams Hosts A-Plus
Network Vision Conference . . . . . . . . . 30
SkillsUSA Winner Moves on to WorldSkills
Competition in Germany . . . . . . . . . . . 23
Attanasio: How Body Shops Can
Society of Collision Repair Specialists
Franklin: Integrity Sells! . . . . . . . . . . . . . . 16
White Still Favored as Most Popular
Are Created Equal . . . . . . . . . . . . . . . . 34
Women’s Industry Network Reports
Use LinkedIn . . . . . . . . . . . . . . . . . . . . 14
Insider: Not All Insurance Executives
Yoswick: Advocate of Collision Industry Standards in the U.K. Sees Need for
Takes a Look Back at 2012 . . . . . . . . . 32
Car Color . . . . . . . . . . . . . . . . . . . . . . . 35
Winning Growth in 2012 . . . . . . . . . . . 26
surance. Some insurers are taking Gunder to court, arguing that Gunder, with the Power of Attorney, has no standing to file lawsuits on behalf of his customers. It’s anticipated that the court will hear arguments from all defendants and render a joint verdict for all 25 cases. The hearing occurred on Dec. 13. See adjacent story. Defendants include: State Farm, Allstate, USAA, Travelers, Infinity, and Geico. “This hearing and the judge’s ruling will be significant and may set a strong precedent regarding similar efforts of quality-minded independent repairers across the country,” Gunder said. “We are very confident that the decision will be in the favor of our customers and support the right for repairers to stand in the shoes of their customers if and when such issues regarding the full payment of any and all “Reasonable and Necessary” charges should arise. I’m excited to bring this matter to closure as it will only embolden us to move forward in serving our customers in an unencumbered fashion. This will also hopefully open a door to better communications and cooperation with insurers to better serve our mutual customers.”
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Indexof Advertisers
Hobart, IN, is New Home for CrashCo
As of late November, 26 insurers have elected to provide full compensation for Gunder’s Auto Center’s labor rates and material invoicing. This past August, Ray Gunder placed a notice in his reception area and provided handouts to all auto appraisers and insurer claim representatives who visited his shop that new labor rates and allowances were in effect. As reported Sept. 12, (“15 and Counting”), with the exception of a handful, most insurers have conceded to paying without argument (excluding Infinity who later acquiesced after a Gunder filed a lawsuit against them). The increases include labor, refinishing labor, frame labor, mechanical labor rates and the invoicing of PMC Logic for all body and refinishing related materials. Currently, those insurers include: MetLife; Kemper Services’; Westfield Comp.; Auto Owners; Acceptance Casualty; Liberty Mutual; Amica Mutual; Horace Mann; The Hartford; Direct General; Zurich American; Mercury; Esurance; Security National; *Infinity; Occidental; First Acceptance; GMAC; Esis; Specialty Products Claims (a division of Nationwide); Sentry; Michelin Tire Company; Grange Mutual; CNA; Global Indemnity; and Commerce In-
Great Lakes
REGIONAL
26 Insurers Now Paying Gunder’s Rate Increases
Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, 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. ©2013 Adamantine Media LLC.
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Auto Data Labels. . . . . . . . . . . . . . . . 2 BMW Wholesale Parts Dealers . . . . 14 Brunswick Auto Mart . . . . . . . . . 10-11 BSFco . . . . . . . . . . . . . . . . . . . . . . . 24 Car-Part Pro. . . . . . . . . . . . . . . . . . . 23 Classifieds. . . . . . . . . . . . . . . . . . . . 39 CSS USA, Inc . . . . . . . . . . . . . . . . . . 9 Equalizer . . . . . . . . . . . . . . . . . . . . . . 8 Erhard BMW of Bloomfield Hills . . . 33 Erhard BMW of Farmington Hills . . 33 Ford Wholesale Parts Dealers . . . . 37 Garmat . . . . . . . . . . . . . . . . . . . . . . 12 GM Wholesale Parts Dealers . . . . . 38 Graham Auto Mall . . . . . . . . . . . . . . 25 Haydell . . . . . . . . . . . . . . . . . . . . . . 31 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 20-21 Hyundai Wholesale Parts Dealers . 35 Infiniti of Lisle . . . . . . . . . . . . . . . . . 18 Intertape Polymer . . . . . . . . . . . . . . . 5 Jack Phelan Dodge of Countryside. 15
K & M Northfield Dodge-Ram . . . . . 27 K & M Suzuki. . . . . . . . . . . . . . . . . . 26 Laurel Auto Group of Westmont . . . 17 Lexus Wholesale Parts Dealers . . . 39 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mazda Wholesale Parts Dealers . . . 36 Milosch’s Palace Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 29 Mitsubishi Wholesale Parts Dealers. 30 MOPAR Wholesale Parts Dealers . . 40 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 38 Rick Case Wholesale Parts Division. 19 Safety Regulations . . . . . . . . . . . . . . 4 Scion Wholesale Parts Dealers. . . . 34 Subaru Wholesale Parts Dealers . . 36 Toyota of Grand Rapids . . . . . . . . . 16 Toyota Wholesale Parts Dealers . . . . 6 VIM Tools. . . . . . . . . . . . . . . . . . . . . 37 Volkswagen Wholesale Parts Dealers. 28 Wisconsin Parts Advantage . . . . . . . 7
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 3
ABRA Acquires All Five IN Collision Solutions Shops
ABRA Auto Body & Glass, a Minnesota–based vehicle repair company, announced December 14 the acquisition of all five Collision Solutions locations in Indianapolis, IN. The deal significantly expands ABRA’s presence in the Indiana market and increases the total number of ABRA repair centers nationwide to 132 in 14 states. “Acquiring Collision Solutions is an important part of accelerating our national growth plans,” said Duane Rouse, President and Chief Executive Officer of ABRA. “Our long-term strategic goals are taking shape and we look forward to being an important part of the Indianapolis community.” ABRA’s five newly acquired state–of–the-art repair centers are conveniently located in Kensington Commons, Robbins Park, Beech Grove, Shelton Heights, and Westfield. All centers employ highly trained and skilled body shop technicians. Collision Solutions has a reputation for providing superior collision repair work in the Indianapolis area for more than 30 years.
ABRA Acquires Schoonover Bodyworks in Stillwater, MN
Schoonover Bodyworks and Glass, a collision repair center based in Stillwater, MN, was recently acquired by ABRA Auto Body & Glass. Schoonover Bodyworks, which has been in business since 1938, operated two collision repair facilities prior to the acquisition. ABRA said Schoonover will continue to operate its second location in Shoreview, MN. “We have been truly fortunate to have served vehicle owners in the Stillwater community over the years,” said Mike Schoonover, owner of Schoonover Bodyworks. “We know our Stillwater customers will be in good hands with ABRA and receive the same personalized service and top quality workmanship they have with us over the years.” “Schoonover’s has a rich history of bodywork and glass in the Stillwater area. We are extremely pleased to continue the legacy the family has built over three generations,” said Duane Rouse, president and CEO of ABRA. ABRA now operates a total of 127 corporate and franchise collision repair locations throughout 14 U.S. states.
AASP-MN Looks Back on 2012, Plans for 2013
The Alliance of Automotive Service Providers of Minnesota, an association of nearly 640 independentlyowned mechanical and collision repair shops and industry suppliers, works to improve the state’s automotive service industry and the success of its members’ businesses. In 2012, AASP-MN passed legislation to increase the damage disclosure threshold for salvage title from 70% to 80% to allow for more vehicles to be repaired and fewer to be totaled. Other issues addressed this past year include: sales tax on paint and materials, “Right to Repair,” insurer steering, DRP contract provisions for parts procurement, and air quality permits. “In addition, we’ve engaged with legislators, government officials and the insurance industry to educate and address issues of concern to the repair industry,” said Judell Anderson, AASP-MN Executive Director. Education and training included: converting telephone leads into sales; understanding P-Pages; retaining unhappy customers; GM drivability; managing multiple priorities, Audi & VW diagnostics; and optimizing performance on insurance scorecards. During 2012, members who participated in the association’s uniform
program with AmeriPride received over $62,000 in rebates, and members who participated in the workers’ compensation program with Meadowbrook Insurance received dividends totaling over $58,000. Members also received savings on credit card processing, technical support services and industrial supplies. Collision repair and mechanical students were awarded $16,000 in scholarships. The association’s radio and Internet campaign promoted the benefits of doing business with independently–owned shops. B.S. Sessions were held for collision repair members who used these networking events to have informal roundtable discussions and to learn about new products and services. For 2013, AASP-MN will renew its efforts to pass legislation to change the point of imposition of sales tax on auto repair paint and supplies. Further amendments to the salvage title statutes may also be addressed, particularly the definition of high-value vehicles. In addition, the association will host its annual meeting and convention April 11-12 at the Crowne Plaza Minneapolis West in Plymouth. For more information, see www.aaspmn.org.
4 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
IN Expansion for Painters Supply & Equipment Co.
Automotive refinish distributor Painters Supply & Equipment Co. (PSE) recently announced the acquisition of Potter Color and Supply, a paint distributor based in Cambridge City, IN. Potter Color and Supply has been supplying the automotive refinish and industrial coatings markets in since 1985. “We’re pleased to welcome the Potter team to the PSE family,” said Patrick Mayette, president of PSE. “We’re excited to expand into the great state of Indiana.” “PSE has a long history and solid reputation as one of the best automotive refinish and industrial paint distributors in the U.S.,” said Jim Potter, owner of Potter Color and Supply. “They will strengthen us to better serve our local market from a technology, product and customer service standpoint.” With the acquisition, Taylor, MI-based PSE now operates 21 store locations throughout Michigan, Ohio and Indiana. Mayette said PSE plans to continue expanding. As the industry continues to consolidate, acquisitions throughout the Midwest region of the U.S. will be a key element to the company’s growth initiatives.
Allstate, Sterling Autobody Give Gift of Transportation
Over Thanksgiving week, Sterling Autobody and Allstate Insurance Company donated refurbished vehicles to families and charities in nine states across the country. In all, the companies donated more than 20 newly refurbished automobiles through the National Auto Body Council’s (NABC) Recycled Rides Program. The vehicles were restored by technicians at Sterling shops in nine states: Colorado, Florida, Georgia, Illinois, Michigan, New York, Ohio, Texas and Utah. The cars were gifted to non-profit organizations, individuals and families. “Reliable transportation is something many of us take for granted,” said Sterling Autobody Centers President Nick Notte. “We are proud to offer our time and resources to transform lives and touch families and organizations across the country. While the gift of a vehicle provides a practical means of transportation, what it really provides is hope. Allstate Insurance Company and Sterling Autobody Centers have participated in the Recycled Rides initiative for the past five years and have refurbished and gifted more than 100 vehicles across the country.”
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 5
Goodguys 30th Anniversary Season Includes Rod & Custom Events in Great Lakes Region The Goodguys Rod & Custom Association celebrates their 30th anniversary in 2013 marking three decades of promoting and producing some of the nation’s favorite rod & custom events. Goodguys will stage 19 dynamic events in 2013 welcoming a wide range of hot rods, customs, muscle cars, trucks and classic cars to the country’s premier event venues. The biggest event of the year— the Goodguys 16th PPG Nationals returns to the Ohio Expo Center in Columbus, OH, July 12-14. Of the 19 events, 16 will feature the Goodguys AutoCross which is free to all registered Goodguys event participants. The “All American Sunday” program, which welcomes all years, makes and models of American made or American powered vehicles on Sunday-only will return in 2013. For vintage drag racing fans, two popular Friday Night Vintage Drag programs featuring sportsman and exhibition cars will be held July 12th at National Trail Raceway in Hebron, OH, and July 26th at Pacific Raceways in Kent, WA.
Repair Shop Damaged by Fire
An automotive repair shop in Schaumburg, IL, was damaged Nov. 28 when a vehicle being serviced caught fire, authorities said. Schaumburg Fire Capt. Mark Nelson said the fire started about 12:35 p.m. It took 20 firefighters 30 minutes to extinguish the blaze, which caused about $50,000 in damage, Nelson said. Other buildings sustained light water and smoke damage, but Nelson said all were able to stay open for business, including the automotive repair shop.Wise Road was temporarily closed to traffic.
Goodguys 2013 event schedule: (Great Lakes region)
July 12-14–Goodguys 16th Goodguys PPG Nationals, Ohio Expo Center, Columbus, OH—The BIGGIE! Over 6,000 hot rods, customs, classics, trucks and muscle cars thru 1972 vintage. Vendor exhibits, swap meet & car corral, Goodguys AutoCross, All American Sunday, special awards, Friday Night Drags @ National Trail Raceway and more. September 20–22—Goodguys 3rd WIX Filters Speedway Nationals, Indianapolis Motor Speedway, Indianapolis, IN—Hot rods, customs, classics, trucks and muscle cars thru 1972 vintage. Vendor exhibits, swap meet & car corral, Goodguys AutoCross, All American Sunday, special awards, track cruise and more.
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In Ionia, MI, one family will get a Christmas gift to remember, thanks to several local businesses who worked together to refurbish a vehicle which will given to a family in need on Christmas day.
S&P Auto Body employees (from left) Rick Poole, Bill Sain and Evan Poole with the 2001 Pontiac Grand Prix SE, that will be given away to a needy family on Christmas
S&P Auto Body, C&S Automotive, N&N Aftermarket Parts, Geldhof Tire, Caswell RV, Fred Haight Insurance, Home Experts, Riverside Auto Wash and All Seasons Insurance Agency worked together to refurbish a 2001 Pontiac Grand Prix SE. “We wanted to do this because the Ionia community has supported us,” said Bill Sain of S&P Auto Body. He said he went to a number of local business for help with the con-
test and none hesitated to join, offering services, parts or a monetary donation. “Everybody is really throwing in a lot,” Sain added. “It’s going to be like a brand new car.” He said he was impressed by the outpouring of assistance from the businesses, which tells him other business owners want to focus on a bigger picture. “It’s about giving back, it’s not about competition,” Sain said. Rick Poole of S&P said he is looking for community members to submit letters on behalf of someone deserving of a Christmas blessing. Letters should include the person’s name, address, phone number and how that person has been a blessing in their neighborhood or touched the lives of others. “We want them to know people care,” said Poole, adding he hopes the gift also will give the recipient hope for the future. Community members will be able to vote on the finalists by ‘liking’ the Facebook page of S&P Auto Body, and then ‘liking’ the posted letter. The letter with the most votes will receive the vehicle sometime around Christmas day. Poole and Sain said they are looking forward to surprising the winner.
Idaho, Utah, and Nebraska Collision Groups Join SCRS
The Idaho Autobody Craftsman Association and the newly-formed Utah Auto Body Association have become state affiliate associations of the Society of Collision Repair Specialists; the Idaho group, dormant for nearly a decade, had more than 50 attendees at a recent meeting, and the Utah group is the first statewide collision repair association there. Also looking to revitalize itself is the Nebraska Auto Body Association, which will hold a meeting January 19 in Ashland, Nebraska.
NHTSA Expects to Propose Black Box Requirement
The National Highway Traffic Safety Administration is expected to propose a rule requiring event data recorders, the socalled black boxes in vehicles that record crash data, in all new light vehicles. The White House Office of Management Budget completed a review of the proposal, clearing the way for NHTSA to finalize the standard for all cars and light trucks. NHTSA estimates it could cost automakers $24.4 million to put the recorders in all vehicles. About 90% of new vehicles have the recorders, including all by General Motors, Ford
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Motor Co., Toyota Motor Corp. and Mazda Motor Corp. The Alliance of Automobile Manufacturers urges the government to consider driver privacy, it said. “Event data recorders help our engineers understand how cars perform in the real world, but looking forward, we need to make sure we preserve privacy,” alliance spokeswoman Gloria Bergquist said. “Automakers do not access EDR data without consumer permission, and any government requirements to install EDRs on all vehicles must include steps to protect consumer privacy.”
6 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 7
Hobart, IN, is New Home for CrashCo Collision Centers’ Father–Son Team Father and son team, Kevin Mehok, Sr. and Kevin Mehok, Jr., combined their 50 years in the vehicle collision repair business to start their own shop in Hobart, IN. “CrashCo Collision Centers has been a lifelong dream,” said Kevin Mehok Jr. “My dad and I have spent our whole lives in the collision repair business. We tried for three or four years before we opened here and finally got the opportunity to make it happen.” The Mehoks had been searching Northwest Indiana for a location when the site of a former Saab dealership became available. The 20,000-squarefoot building had the room and access onto U.S. 30 that they wanted. “We have a lot of contacts in insurance because of our experience so we were able to get work as soon as we opened the doors,” said Mehok Jr., of Crown Point. “The region’s really accepted us.” He credits the success of the business to the way each vehicle brought in for restoration is watched and inspected at each step of the repair process. “We guarantee our work, the quality of our work and our eye for each detail,” Mehok Jr. said. “It’s a combination of experience and our own ideas we employ. We assign each car and go over it with the technician. It doesn’t move
from one area in the process to the next until it is inspected.” Crash Co. Collision Centers uses all state-of-the-art equipment and factory-trained technicians. Plus, it features an on-site car rental company, complimentary shuttle service, and free Wi-Fi service in its large waiting room, Mehok Jr. said.
It also uses all ecofriendly products, including using paint from Sherwin-Williams’s line of water-based automotive finishes, and has a proprietary 24-hour, repair service for vehicles that qualify. “We find the fastest way without compromising quality to get a car back to its owner,” Mehok Jr. said. The father and son invested millions of dollars into Crash Co. Colli-
NC Repairer Sues Insurer on Behalf of Customer
Michael Bradshaw of K&M Collision in Hickory, NC, recently filed a lawsuit against Nationwide Mutual Insurance Company on behalf of his customer and the insurer’s policyholder. Only after unsuccessful attempts to have his customer’s insurer provide ample consideration for reasonable and necessary parts, procedures and materials was it necessary to inform his customer of the short pay by their insurer. The customer authorized K&M to proceed with the repairer’s recommended repair activities and signed documentation authorizing Bradshaw to act in his behalf in filing a lawsuit against their insurer seeking full compensation for the repairer’s recommended and performed activities. The claim includes denial of procedures including test-drive, removal of molding adhesive from painted panels, tint color, finish sand and buff and underpayments of numerous other reasonable and necessary processes including body, refinishing and mechanical and frame labor rates, material allowances and storage charges for the insurer’s delays. The total amount sought in the lawsuit is $2,956.98 plus legal fees and costs. To avoid the necessity of holding
the vehicle until receipt of full payment, K&M Collision allowed their customer to take possession of the properly repaired vehicle with the understanding that all billings remained their full responsibility in the event the insurer failed to provide full payment. Michael Bradshaw states, “We value our customers and work hard to ensure their repairs are done properly, thoroughly and in a timely manner. It’s unfortunate that such legal activities have become necessary. Consumers rely upon insurers to be there in their time of need and when they need them most, and when they fail to keep their promise, who can blame the consumer for becoming upset. Our efforts will be to illustrate to the court the insurer’s intentional Breach of Contract, Unfair and Deceptive Trade Practices and their acting in Bad faith.” “When an insurer fails to fully ascertain the full extent of all loss related damages and /or fails to provide proper consideration for each necessary process, part and/or material, the failure can be defined as either ignorance, gross incompetence or intentional misrepresentation… or a combination thereof,” said Barrett Smith of Auto Damage Experts.
8 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
sion Centers through a combination of saving and bank loans. The site costs $2.5 million and its renovation and equipment about doubled that amount. Because business is so good, they are already planning to expand and they believe they will recover their investment in five years. “Our growth has been explosive,” Mehok Jr. said. “We didn’t expect to become this busy so soon. We expected it to take five to six years for this volume, not two years.” Expansion could come as soon as 18 months, he said. They are looking at one site in Naperville, an area familiar to the senior Mehok, who lives in Orland Park. The other site, which the Mehoks won’t disclose, is in Northwest Indiana. “My father and I want to become a multi-location business and continue to grow in this area,” Mehok Jr. said. “The insurance companies that send us work tell the markets where they have the greatest need and those are the ones we wish to fulfill.” Mehok said although there are a lot of collision repair shops there is always a need for a quality business. “We don’t want hundreds of outlets. We want strategically placed locations that put out a quality product,” Mehoke Jr. said.
CARSTAR Adds 25th Location in Ohio
CARSTAR Auto Body Repair Experts, North America’s largest multishop operator network (MSO), has announced the opening of Coach & Collision CARSTAR in Cleveland, OH, bringing the total number of CARSTAR locations in Ohio to 25. Owned by Jeremy and Theresa Orsky, Coach & Collision CARSTAR is located at 1120 Brookpark Rd. in Cleveland. They offer auto body repair, glass repair, spray on bedliners, window tinting and mechanical service. As a member of CARSTAR, Coach & Collision CARSTAR will offer an array of services and products for collision repair, including the latest in repair technology, rental vehicles, national warranties on repairs and turnkey service for customers. The new CARSTAR store will benefit from the CARSTAR Management System, which provides resources to improve key business metrics such as cycle time, participation in CARSTAR’s 19 corporately managed DRP programs, and improved purchasing power from 45 corporately managed purchasing programs.
Subaru May Expand Indiana Assembly Plant Subaru is considering expanding its Lafayette, IN, factory. Subaru’s Indiana assembly plant currently makes Outback wagons, Legacy sedans and Tribeca crossovers as well as Camry sedans for Toyota under contract. Production at Lafayette should reach a record 277,835 vehicles this year, said Jennifer McGarvey, a spokeswoman for the factory. The factory can produce a maximum of 310,000 vehicles annually, based on state air-pollution limits, McGarvey said. A decision on the expansion is possible “within the next few months,” said Michael McHale, a company spokesman. At least 50,000 units of production capacity would be added if Impreza or Forester production moved to Indiana, he said. Fuji Heavy Industries Ltd.’s Subaru unit is studying expanding its Indiana assembly plant as the Toyota Motor Corp. affiliate seeks to boost U.S. output to curb currency losses and meet growing demand for its models. The U.S. unit and its parent are in discussions to expand, said Tom Doll, Subaru’s U.S. executive vice president and chief operating officer,
said in an interview with Bloomberg Radio. A decision whether the plant will add assembly of Impreza cars or Forester crossovers hasn’t been made, he said. Subaru owns enough land at the Indiana site that “we could probably add a second full factory,” Doll said. The combination of a high yen and expensive shipping costs means “it becomes more difficult with production in Japan to import those vehicles into the United States,” Doll said. Fuji Heavy joins Japan’s Toyota, Honda Motor Co., Nissan Motor Co. and Mazda Motor Corp. in seeking further production capacity in North America to stem losses related to the yen’s persistent strength relative to the dollar. The U.S. currency’s value has fallen about 25% against the yen in the past five years, eroding the value of rising U.S. sales. Demand for Subaru’s all-wheeldrive cars and light trucks has risen 29% this year to 299,788, capped by a 60% sales increase in November. The plant opened in 1989, initially as a joint venture with truckmaker Isuzu Motors Ltd.
Burned MN Body Shop Condemed after Fire Martin Road Auto Body located at a rural Duluth residence in Minnesota has been condemned after a fire gutted the shop on Dec. 3. The fire originated with a wood stove that had just been installed a month prior to the fire.
Amanda Nagle said her father had been running the auto body business since she was a little girl. The owner, Gerald Nagle, lived above his shop and had run his business for nearly 30 years. Now the building and his home are destroyed. Rice Lake Fire Department Chief Matt Frantz estimated the fire caused more than $400,000 in damages. “The building has to be worth $250,000 to $300,000,” Frantz said. “Then there were two or three vehicles inside.” Firefighting crews from more than a half-dozen fire departments
battled the blaze into the night. The fire at 3623 Martin Road in Rice Lake Township was reported by the owners of the property a little before 4 p.m. Initial reports indicate the fire began in the shop area, traveled to the ceiling and spread into the attached barn. Buddy Foster of the Rice Lake Fire Department said the fire spread to the barn, where the “major work” of the firefighting went on into the night. Because there are no hydrants on that stretch of the road, pumper trucks shuttled between the fire and the Rice Lake fire hall to bring water to the six engines pulling water from pools. “Water was our biggest issue,” Foster said. “But it went smoothly.” A Rice Lake Fire Department official, Scott Twining, said no inspection will take place because the property was not insured and there were no casualties. “There is still a lot of structure in tact, a far as the apartment goes, but with all of the smoke and water damage, and the building is condemned,” said Amanda Nagle. “And I don’t think it’s going to be habitable again. Unless you really regut or tear down and start all over.” Family and friends are planning a fundraiser to help with costs that resulted from the fire.
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Continued from Cover
Year in Review
(ANPAC) that an appraiser working on its behalf was just using “an outdated document” when denying the shop’s supplement for color sand and buff. In a follow-up letter to the Texas Department of Insurance, Borek pointed out that the document looked like a page from the Audatex guide to estimating, but shows that color sand and buff is included in refinish times; Borek says an Audatex manager who searched the Audatex/ADP “Database Reference Manuals” back to 1993, concluded that the page is “most certainly not a document from ADP/Audatex.” “This manufactured document can only achieve one goal, which is to convince uneducated consumers and shops that this operation is included so they can ‘short pay’ the claim,” Borek wrote in his follow-up letter to the Department of Insurance.
March Chrysler became the latest automaker to announce a certification program for both independent and dealership collision repair shops. Certification requires meeting more than 40 standards including maintaining I-CAR Gold Class status and using squeeze-type resistance spot welding equipment. Under the program, if all OEM parts are used on a job, that will be noted on the vehicle’s CARFAX report, along with the fact that the vehicle was repaired a Chrysler-certified shop.
April LKQ Corporation worked to counter ongoing liability concerns for shops about use of alternative parts by announcing that in addition to a lifetime warranty on its non-OEM parts, it would indemnify shops against injury or damage caused by a defective vehicle part distributed by LKQ. The “Promise of Protection” says it covers a “licensed automotive repair shop” that purchases the part from LKQ, excluding claims arising from shop negligence or malfeasance. LKQ’s move followed Diamond Standard’s announcement in January that it was offering ASA member shops coverage under a $40 million liability insurance policy for any liability issues related to the performance of Diamond Standard non-OEM structural parts. May Eileen Sottile of the Quality Parts
Coalition (GPC) urged attendees at the Auto Body Parts Association (ABPA) conference to contact Congress to support the coalition’s legislation (HR 3889) that would reduce the time automakers can use design patents to prevent other companies from producing replacement crash Eileen Sottile parts. Sottile said the bill would reduce the patent protection from 14 years to just 2.5 years. Despite a public relations and lobbying effort funded by LKQ Corporation ($3.7 million), Nationwide and State Farm ($115,000 each), Allstate ($92,000) and others, the bill never got beyond a hearing in the U.S. House.
June Insurer groups’ radio ads and other efforts were successful in convincing Rhode Island Gov. Lincoln Chafee to veto legislation that would have given shops in that state the right to sue insurers directly in small claims court over disputed repair costs. Chafee said he believed the bill would have given shops rights that exist in “no other state in the nation,” and would have “hurt Rhode Island consumers” by raising the cost of auto insurance. The legislation, supported by the Auto Body Association of Rhode Island and passed by lawmakers, also would have strengthened the state’s anti-steering law, and would have required that damages exceed 75% of a vehicle’s value before that vehicle can be declared a total loss. The association issued a statement expressing its disappointment with Chafee’s action. “Though his veto message states that he is concerned Rob Knott about the consumer, he clearly put the consumer and small business’ interests aside and bowed to the pressure of the real ‘special interest group’ —the billion-dollar insurance companies,” the association’s statement read.
July Some good news for shops worried about the growing amount of accident-avoidance technology in vehicles: It’s not all working.
12 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
The July issue of “Status Report” from the Highway Loss Data Institute examined insurance claims data to see what impact crash-prevention technology is having. “Forward collision avoidance systems, particularly those that can brake autonomously, along with adaptive headlights, which shift direction as the driver steers, show the biggest crash reductions in the studies,” the publication stated. “But one feature, lane departure warning, appears to hurt rather than help, though it’s not clear why, and other systems aren’t showing clear effects on crash patterns yet.”
August DuPont announced it was selling its 11,000-employee automotive paint business to private equity firm The Carlyle Group for $4.9 billion in cash. “Through targeted investments we will support DPC’s product development and growth objectives as it transitions to a stand-alone company,” Greg Ledford of The Carlyle Group said. The Carlyle Group earlier in the summer had announced it was acquiring majority ownership in the Texas-
based Service King Collision Repair Center chain.
September The Department of Justice (DOJ) and Federal Trade Commission (FTC) jointly held a workshop on the topic of most-favored-nation (MFN) clauses, such as the basis for State Farm’s pricing requirements for its Select Service shops. “Although at times employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns,” the two agencies noted. “This is because they may, especially when used by a dominant buyer, raise other buyers’ costs or (prevent) would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated pricing among sellers.”
October Speaking at NACE in New Orleans, representatives of State Farm, Allstate and Nationwide said that any MSOs on their DRPs are measured as individual shops and must compete to perform as-such. See Year in Review, Page 31
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 13
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
How Body Shops Can Use LinkedIn with Ed Attanasio
A LinkedIn expert and a Forbes Top 30 Social Media Power Influencer, as well as the creator of the AdAge Top 100 Global Marketing blog and the owner of Windmill Networking, Neal Schaffer is a global social media conference speaker who is also known for his two award-winning and critically acclaimed social media books: Maximizing LinkedIn for Sales and Social Media Marketing, and Windmill Networking: Maximizing LinkedIn. He currently speaks on social media at approximately 50 events each year. I sat down with Schaffer recently and asked him the question many collision repairers nationwide are asking--how can I use LinkedIn to help my business?
Q: With all of the social media sites out there, does LinkedIn have a role in the entire mix when it comes to body shops and the collision industry in general? NS: It’s ideal for what I call outwardfacing employees. These are your estimators, front office people and even the techs that deal with the public on a regular basis. And, of course, the shop owner needs to have his own LinkedIn profile, with a picture and a bio. LinkedIn is designed for business people who want to interact with other professionals in their respective fields. People are using it to constantly look for new products and services and vice-versa. Are you looking for a new piece of equipment or a better management system? Finding the top decision makers in each business segment can be done quickly and easily using LinkedIn.
Q: What should we know about creating a profile? NS: Make it complete, with your employment history and keywords that will make it easy to find by other collision professionals. Use LinkedIn for yourself and then also create a page for your company. Users will want to link to you and others will link solely to your company page. You can do so much once you learn the bells and whistles of LinkedIn. We instruct companies how to recommend sales and build a marketing program via
LinkedIn and if they follow the plan, it works without fail.
Q: Now I have created my profile and a company page on LinkedIn and a lot of people want to connect with me— hundreds of them. Should I accept all of them or carefully handpick each one? NS: Some folks haven’t completely grasped the whole purpose of LinkedIn and want to limit their connections for one reason or another. But, think about it—how many people do you meet in the course of running your company or doing your job--maybe 500 or even 1,000? You never know how someone can help you in your business in the future. An old college buddy may want to invest in your business and help you to open up a new location? A former employer may now have a job with a vendor you want to purchase products from? How many people do you meet at shows like SEMA, AAPEX, etc.? I give my clients this easy formula: Take your age and multiple it by 10 times and that’s how many LinkedIn connections you should have. Don’t just connect with people you know— go broader and connect with their friends and their vendors. The wider your audience the more likely you’ll find beneficial deals and relationships through LinkedIn. Reach out as much as you can and never take social media personally. Let as many into your net that want to be there and then devise techniques for keeping them on your boat.
Q: Okay, I have 500 connections now. What’s next? NS: Engagement is the key. Too many newbies create their profile and invite a bunch of people, but then they drop the ball completely and say, hey LinkedIn didn’t work for me. Create some interesting things for people to look at, such as niche applications or slideshows showing your shop and stressing your strengths. And always be looking out to meet new people, by joining special groups or entering discussion forums. Spend some time every week (maybe less than an hour) on LinkedIn and comment, discuss,
14 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
offer your expertise and provide useful information whenever you can. Any form of social media is only as valuable as what you are willing to do with it.
Q: Can I start my own group to discuss things that are important to me, such as green practices, the ins and outs of DRPS and how to use my management system the best way? NS: Definitely—groups are a great vehicle for becoming a magnet for more connections today and down the road. Groups can position you as an expert on any subject and will bring you a ton of secondary connections. You can also join as many as 50 other groups to further connect you to your industry. Many of the paint companies have groups and all of the professional trade organizations also have one, in most cases. Staying in touch with your existing friends, colleagues and associates is important,
but finding new ones is even just as valuable. Once they establish a group, we tell our clients to create a very targeted ad campaign around the group. It’s inexpensive and you can use it to pinpoint people ten miles from your shop if that’s what you want to do. They might be future vendors or even customers. Being involved with top professionals in any area can be valuable to the further success of any company. Q: If my shop hasn’t done any social media up to this point, does that mean I’m too late to the party? NS: I tell people, it’s never too late to be a part of the social media game. All it takes is a few hours weekly and pretty quickly; you’ll be a pro at it and have a significant following. Let it build gradually and create new content; join groups and start your own and within six months--you’ll see the value of LinkedIn! Original BMW Parts
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On Creative Marketing Integrity Sells!
with Thomas Franklin
We recently ended an election campaign season during which exaggerations, misrepresentations and outright lies were rampant. It made me think of John, a small shop owner who surprised me when I asked where his customers came from. He had been in business for nearly 30 years, but he told me he didn’t rely on any corporate referrals, dealership business or any of the other usual sources that many shop owners tell me are vital to keeping them in business. “So,” I said, “where does your business come from?” He replied, “My customers just keep coming back. After 30 years, you accumulate a lot of customers.” Right away I thought about many other owners who complain to me that they have lost a lot of their old customers. They tell me their customers are swayed by steering, websites, ads, and news stories designed to scare them away from small shops. I asked John if that happened to him. “Sometimes,” he replied, “but mostly when they try to sway my customers, they fail. My customers are my friends. Good friends never desert you.” John isn’t the only small shop owner in business for more than 20 years. What does he do different that binds his customers to him with such loyalty? I overheard a couple of conversations with his customers. I noticed that John was scrupulously honest. He went to great pains to get the truth of the situation across to each customer. It Continued from Cover
Northern Michigan
This event was well-received and provided an opportunity for technicians, estimators and others in the industry to explore approximately 30 vendor booths. There was a wide variety of products and/or services on display including suppliers of paint, tools, booth equipment, shop supplies, information technology and others. The Fifth Annual Body Shop Rally was held in Mackinaw City during August. This event, attended by over 100 people, provided an opportunity for industry professionals to just “kick-back” and enjoy cruising the Straits of Mackinac while visiting
appeared to me that no prospective customer would ever doubt John’s integrity. There was no phony “trust me” kind of selling on his part. He simply came across as 100% sincere and 100% determined to give or get for his customer the best deal possible. That kind of integrity speaks for itself. I’m sure some would say to me, “Of course he comes across with integrity after 25 or 30 years! Who wouldn’t? But how can you communicate integrity instantly when you are meeting a prospective customer for the first time? Or when you’ve only been in business for less than a year? I recently had some work done on my house. The handyman that did the work sent me a thank-you note (not something I’ve ever received from a handyman before) and also he sent me something else I had never received from a handyman before: something he called “The Code of a Handyman.” It was a statement of his personal commitment to do a good job, to be on time, to perform as promised, to provide top service for a fair price, and a few other commitments to reassure me and his other customers that neither he nor anyone working with him would ever steal anything or knowingly damage any property or falsely represent what had been done. In short, it was a code of handyman honor, a pledge of integrity far more effective than verbally boasting of his integrity. Ralph Waldo Emerson once commented on a
with technicians, estimators, managers, and vendors from throughout northern Michigan. In October, attorney Erica Eversman spoke at the NMBSA Annual Meeting in Traverse City, MI. The presentation focused on “Parts Procurement” and the impact it will have on the collision industry. According to Eversman, the State Farm parts procurement pilot program has recently expanded and while there have been many associations speaking out against the program, many shop owners are still unaware of the negative consequences. Approximately 45 attendees, collision repairers and vendors listened as Eversman described how the parts procurement process would See Northern Michigan, Page 23
16 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Tom Franklin has been a 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
boastful political speaker. He noted, “The louder he talked of his honor, the faster we counted our valuables.” The dictionary defines ‘integrity’ as follows: 1. Rigid adherence to a CODE of behavior. 2. The state of being sound; unimpaired. 3. Completeness; unity. Codes of ethics are often provided by various industry associations and also franchise operations. Such a ‘code,’ posted in a conspicuous place, can serve to reassure the prospective customer that this place of business is committed to following a definite criterion of ethical behavior. Of course the prospect can only hope the business owner and employees will actually adhere to the code they have posted, but at least the promise is there for all to see. Recall that the third definition of ‘integrity’ was “completeness; unity.” It comes from the same root word as ‘integrated.’ That word has come to have a racial connotation, but actually
means “to make into a whole by bringing all parts together.” The business owner who has ‘integrated’ into his or her community and become an ‘integral’ part of that community, is generally viewed as concerned and thus trustworthy. It is no longer necessary to ‘sell’ the public on one’s integrity. During the worst of the recession in the early 1990s, John Baraona, owner of ‘Fussy Cleaners’ in Akron, OH, offered free dry-cleaning services to temporarily unemployed customers. When they finally landed new jobs in the cleaned and pressed clothes John had provided for them, they became his most loyal customers. Was there any further need for John to publicize his integrity? Integrity sells! In the short run, it may always be possible to lie and deceive, to gain a temporary victory. But in the long run one’s reputation for integrity, trustworthiness and honesty is the best sales and marketing asset of all.
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ASA Collision Division Recaps 2012, Moves Forward into 2013 The ASA Collision team, composed of ASA staffer Denise Caspersen and ASA collision members participating on the ASA Collision Division Operations Committee, led by team director Dan Stander, owner of Fix Auto Highlands Ranch, with input from the ASA Board of Directors, had a productive 2012 representing the ASA membership and engaging with the various segments of the industry that affect the ASA collision repair membership. ASA is fortunate to have willing volunteers with diverse backgrounds actively donating their time, mindshare and leadership in addressing actions and issues of the association. “ASA’s collision division functions extremely well as a team and approaches things just that way, as a team,” said Caspersen. Just as the collision repair industry faced multiple challenges and changes in 2012, so did the volunteers and staff of ASA’s collision division. Following the release of a revised ASA crash parts policy, supporting the original part as the standard of measure, and a joint statement with AASP and SCRS recommending that original manufacturer repair procedures be considered as the standard, the ASA’s collision team began 2012 with the announcement of a strategic alliance with alternative parts manufacturer, Diamond Standard, that afforded ASA members with product liability protection against the unlikely scenario of damage or personal injury directly related to use of Diamond Standard parts in the repair. In early 2012, ASA Arizona played a vital role in bringing about the removal of language from House bill 2394 which would have forced shops, in many situations, to absorb the costs associated with vehicle storage or bill it to the vehicle owner. This was accompanied by ASA Texas bringing forth opposition to proposed licensing ordinances in early 2012 followed by ASA Texas challenging the state’s franchise tax law in mid 2012. At the federal level, ASA began the year monitoring an auto parts bill, H.R. 3889, Promoting Automotive Repair, Trade and Sales Act (PARTS). The bill would amend the U.S. design patent law to change the period of design patent protection for automakers from 14 years to 30 months. ASA joined with 10 other automotive groups in opposition to the bill while monitoring actions in the U.S. House
Judiciary subcommittee. Continuing a long-standing tradition of ASA calling for the repeal of McCarran-Ferguson, ASA showed support for federal bill, H.R. 5 asking for the restoration of the Application of Antitrust Laws to Health Sector Insurers, which passed on the House floor in the first quarter. Also related to insurance, ASA attended a workshop in the Federal Trade Commission and the U.S. Department of Justice review of Most Favored Nation (MFN) clauses within the insurance industry. Prior to the workshop the FTC noted: “The most commonly used MFN provisions guarantee a customer that it will receive prices that are at least as favorable as those provided to other buyers of the same seller, for the same products or services. Although at times employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns. This is because they may, especially when used by a dominant buyer of intermediate goods, raise other buyers’ costs or foreclose would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated pricing among sellers.” ASA will continue interest in Most Favored Nation discussion in 2013. The 2012 ASA legislative objectives can also be located on the ASA legislative website at www.takingthehill.com – sidebar – Legislative Objectives http://www.takingthehill.com/objectives.htm. 2013 ASA legislative objects will be appearing there in the very near future. In addition to working with SCRS and AASP on seeing vehicle manufacturers repair procedures recognized as the standard for repair procedures, ASA continued in the three’s mutual support of the Database Enhancement Gateway (DEG) program, which continues to provide free industry support for addressing questions of information provided the industry leading information providers. Throughout 2012, ASA’s collision division also provided the ASA membership with representation by taking part on the on the I-CAR Board of Directors, the CIECA Board of Directors, the WIN Board of Directors, CIC meetings and the CIC Data Privacy committee. ASA looks forward to continued interactions with these bodies in 2013. These items were in addition to the lengthy and extensive engagement
18 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
of ASA’s collision team centered on the electronic parts procurement application currently piloted by State Farm. During many conversations, ASA’s collision division has been met with both support and disappointment of ASA’s approach of professionalism, factual understanding and industry engagement in addressing this pilot. During the early stages of the pilot, information was presented to the industry which brought both concern and confusion to the ASA membership. In early April, the ASA collision team took on the challenge of providing ASA’s membership and the collision industry with as much verifiable information as possible through the engagement with as many segments as possible, in addition to speaking directly with State Farm and the application’s designer, PartsTrader. Over the past months, this approach also called for the ASA collision volunteers to express the concerns of the ASA membership (initially centered around the repairer/supplier relationship, and then expanding to specifics of the application, and now on ‘what happens to the collision repair shop’s profit on parts?’)
and follow up on requests for data on what are the affects of the pilot are on those participating. The December 2012 expansion of the pilot to the 475 Select Service shops in the Chicago, IL, area will broaden the test market to approximately 600 collision repair facilities currently on the Select Service program. To date, ASA has provided the industry with 13 statements focused on the State Farm Select Service pilot, including: initial details of the pilot; public request for result data of the pilot; overviews of industry meetings; changes to the pilot and detailed coverage of ASA’s ongoing conversations with State Farm. ASA will continue to be a part of conversations, advocacy and communications about the State Farm electronic parts procurement application in 2013. ASA’s communication pieces specific to the State Farm pilot can be located on the ASA website at www.ASAshop.org. Click on “Tools & Resources,” then “State Farm Pilot Program.” And lastly, the ASA collision team spent many hours designing and leading in the educational elements of AuSee ASA Recaps, Page 39
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AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News
Ford Fusion Wins ‘Green Car of Year’ Title
Ford Motor Co.’s all-new Fusion won Green Car Journal’s “Green Car of the Year” title at the recent Los Angeles Auto Show. The Fusion beat out the Dodge Dart Aero, Ford C-Max, Mazda CX-5 SKYACTIV and the Toyota Prius c. It is the eighth consecutive year that Green Car Journal has recognized a “Green Car” of the year. Previous winners include the compressed natural gas-powered Honda Civic in 2011 and the range extended plug-in hybrid Chevrolet Volt in 2010. The Fusion comes with multiple internal combustion engine options, and as a hybrid and plug-in hybrid model. Ford’s Fusion has a base price of $21,700; the hybrid model, which gets a combined 47 miles per gallon, starts at $27,200. The C-Max hybrid, which also gets a combined 47 miles per gallon, starts at $25,200. The winner was selected by a jury of environmental leaders, including Sierra Club Executive Director Michael Brune, Ocean Futures Society President JeanMichel Cousteau, Global Green USA President Matt Petersen, “Tonight Show” host and auto enthusiast Jay Leno, and Green Car Journal staff.
GM Recalls 2012 Buick Verano, Chevy Cruze, Sonic
GM is recalling 2,949 model-year 2012 Buick Verano, Chevrolet Cruze and Chevrolet Sonic vehicles because the airbags could fail, according to the National Highway Traffic Safety Administration. The recall involves the driverside front airbag, which contains a shorting bar that could intermittently contact the airbag terminals, NHTSA reported. If the bar and terminals are contacting each other at the time of a crash, the airbag may not deploy. This increases the risk of injury.
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Volkswagen Beetle Recall
Volkswagen is recalling certain model year 2012-2013 Beetle vehicles, manufactured from Feb. 2012 through Aug. 2012, and equipped with leather sport seats. If the right front passenger seat gets wet, the occupant control module may not properly detect the presence of a child restraint installed in the seat. If the control module does not detect a child seat installed, the airbag will not turn off. If the airbag does not turn off, in the event of a crash necessitating front airbag deployment, a child secured in the child seat may be at an increased risk for serious injury. Volkswagen will notify owners, and replace the control modules, free of charge.
Ford Recalls Escapes, Fusions for Engine Fires
Ford Motor Co. issued its fourth recall Nov. 30 for its 2013 Ford Escape SUV, citing a fire risk. The recall affects 73,320 Escapes, as well as 15,833 midsized 2013 Ford Fusions. Some 80,000 of the recalled vehicles were in the U.S. It’s the latest setback for the Escape, introduced in June and a key vehicle in Ford’s lineup. The Dearborn automaker urged owners of the vehicles with 1.6-liter engines to contact dealers immediately, to arrange loaners. But unlike an earlier Escape recall, this one didn’t caution drivers to stop driving them. The recall is for Escape and Fusion SE and SEL models with a 1.6-liter engine. The company said it has not yet established repair procedures, and can’t say when owners will be able to get their cars fixed. A Ford spokesman said engine overheating can lead to fluid leaks, which may come in contact with a hot exhaust system and trigger a fire. Ford said it received 13 reports of engine fires that followed overheating. No injuries have been reported. Ford told the National Highway Traffic Safety Administration that the first report of an Escape fire was Sept. 7 in Florida.
22 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
150,000 Toyota Tacoma Trucks Recalled Due to Rust
Toyota is recalling its popular Tacoma pickup truck, sold in certain parts of the country. At issue is the carriers that hold the emergency spare tire underneath the truck may not be adequately protected from the chemical road deicers used in several states. If the tire carrier rusts, the spare tire may fall off the truck and present a road hazard, increasing the risk of collisions. According to the National Highway Traffic Safety Administration, the rust problem affects 150,000 2001 to 2004 model year Toyota Tacoma fullsize pickup trucks sold in so-call “rust belt” areas of the U.S., including: Connecticut, Delaware, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin and Washington, DC. Toyota has not yet developed a remedy to this situation, but they will notify owners when a fix is in place.
Hyundai, Kia Faces $775 M Lawsuit Over Fuel Economy Lies
A lawsuit was filed against Hyundai Motor Corp. and Kia Motors Corp for over $775 million in damages due to the auto companies admitting they overstated the fuel economy in close to 1 million vehicles in the U.S. and Canada. Reuters reported the lawsuit was filed in the U.S. District Court for Central California on behalf of 23 Hyundai and Kia vehicle owners. The lawsuit is expected to challenge Hyundai and Kia’s compensation plan that they have set to satisfy disappointed customers. The South Korean automakers admitted they had overstated the fuel economy on 13 Kia and Hyundai models after the U.S. Environmental Protection Agency released a report about the mistakes. The agency looked into the matter after over a dozen customers filed complaints.
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GM to Hasten Development of Electric Vehicles in China
General Motors Co. said it is increasing the speed of its development of electric vehicles in China, where it will build and sell an all-electric Chevrolet Sail Springo in addition to selling the Chevrolet Volt extendedrange plug-in electric. GM recently announced plans to build 500,000 vehicles a year by 2017 that would be powered in some way by electricity. That would include plug-in electrics, pure electrics, mild hybrids that use the company’s eAssist technology and full hybrids, according to the automaker. GM China opened an advanced materials lab in Shanghai in Sept. 2011 where employees work on battery technology and lightweight material research. Workers there can build cells for lithium-ion batteries.
Volt Sales Plummet Due to Inventory Issue
Chevrolet sold 1,519 Volts in November, a 33% rise over the same month a year ago. But that was only about half the record 2,961 vehicles sold in October and 2,851 in September. Don Johnson, U.S. vice president of Chevrolet sales and service, attributed the fall in Volt sales from its record-setting tally in October as an inventory issue, felt particularly hard in California. “Dealers are just clamoring for more,” he said of the California market, where GM sells about 34% of Volts and where it recently had just an eight-day supply of the vehicle. Inventory is now up to 23 days for California and about 60 days for U.S. supply, which Johnson described as ‘ideal.’ Volt sales through 11 months this year totaled 20,828. It’s difficult to tell whether expiration of favorable sales incentives also led to the fall in Volt sales. Without special incentives, the Volt costs $39,145 before a $7,500 federal tax credit. That’s more expensive than the base prices for Toyota’s Prius plug-in ($32,000), Ford Motor Co.’s C-Max Energi plug-in ($32,950) and Nissan Motor Co.’s allelectric Nissan Leaf ($35,200).
Continued from Page 16
Northern Michigan
further affect the repairers’ loss of business control, reduce facility profit margins, and potentially lead to other types of “procurement type processes.” Expansion of this process into other profit centers within a repair facility, such as paint and material, will only further erode shop operations and margins. She explained the future of the industry hinges on what happens now and those who participate in these types of programs have little or no concern for the future of this industry. In recent weeks, the NMBSA has started a radio advertising campaign focused on educating the consumer. The first commercial airing focuses on “Consumer Rights” specific to steering. Response has been fantastic from both consumers and those in the industry. The NMBSA has also drafted a bill to amend 1956 PA 218 and plans to have this bill introduced in the legislature during 2013. The focus of this bill is “Consumer Rights and Protection” specific to a collision loss.
SkillsUSA Winner Moves on to WorldSkills Competition in Germany A South Carolina man will compete in the auto body repair portion of the biennial WorldSkills Competition to be held in Germany next July. George Mason, a former student at Lexington Technology Center in Lexington, SC, and who works at Gilbert Paint & Body in Gilbert, SC, will represent the United States “WorldTeam” in Leipzig, Germany, during the 42nd international event July 2-7, 2013. Mason was recently awarded the gold medal in Autobody Repair in November, 2012 during the WorldSkills Americas competition in Brazil, in which the United States competed against 23 other countries in preparation for the WorldSkills Competition. Mason won the right to compete by winning the high school bronze medal in the Collision Repair Technology competition during the SkillsUSA Championships in June 2011. He also successfully completed other qualifying prerequisites prior to being chosen for the team. “When I was 14, I started working at Gilbert Paint and Body. I found I liked autobody work and I moved up through the ranks and got good at what I do,” he said.
“I took classes in school and I was pushed by my instructor to work hard and to do everything to the best of my ability. I’m now looking forward to being able to test my skills in an international competition.” “George was a very unique student,” said Ronnie Swygert, Mason's instructor at the Lexington Technology Center. “When I first met him, he had already been exposed to collision repair and refinish work. It was a privilege and an honor to work with a student so eager to learn and grow in addition to what he already brought to the plate. He is a natural for collision repair.” In the WorldSkills Autobody Repair contest, competitors must: • correct all structural misalignment of the unitized body shell using hydraulically operated repair equipment to pull/push the body back into proper alignment • verify the accurate realignment of the unitized body, including suspension attachment points using industry recognized autobody measuring equipment • replace a damaged structural (frame) member using internationally accepted procedures
• repair cosmetic damage to an exterior steel and/or aluminum and/or plastic body panel (fender, door, quarter panel, roof, etc.) by metal finishing (or repair product in the case of a plastic panel) • replace cosmetic non-structural exterior steel and/or aluminum body panel (fender, door, quarter panel, roof, etc.). Every two years, hundreds of young people from 53 member countries or regions compete in the prestigious WorldSkills Competition. Member countries include Japan, England, Saudi Arabia, Canada, Australia, Thailand, Brazil and many others. Considered “the best of the best,” contestants compete for four days in 45 occupational skill areas from economic sectors including manufacturing, information technology, transportation, construction and services. Accompanied by their teachers, trainers and industry technical committee experts, these young people compete before the public in contests that are run and judged by industry using demanding international standards.
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 23
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.
Industry Insight with John Yoswick
Advocate of Collision Industry Standards in the U.K. Sees Need for Them Here Include Mike Monaghan as among the proponents of the benefits of collision repair industry standards. What effect did he see such standards having in the United Kingdom? “The bad repairers went away. The incompetent and inefficient and illegal repairers went away,” Monaghan said. “The insurance carriers got more integrity, better safety, better customer service. They got better value from their supply chain.” Monaghan spoke at the Collision Industry Conference (CIC) in Las Vegas in November. As a three-shop operator in the United Kingdom in 1988, he said was discouraged with having to compete with other repairers that he didn’t feel had made the investment he had in equipment and training. He wrote a white paper outlining what he felt a “good shop looked like,” and over the course of three years helped craft one of the first set of collision repair standards in the U.K.
Though some others have pointed to some downsides to the standards program in the U.K., Monaghan was unequivocal about the positive impact of the standards. He began his argument for standards in the U.S. by noting that change is inevitable, and that too often collision repairers allow themselves to remain only on the receiving end of that change. “The tragedy for our industry is we react too late. We react to everything and then we seek to blame,” Monaghan said. “Can the collision industry take control of its market and its destiny? Yes, it absolutely can, but what it can’t do is constantly wait and react. It has to take control.”
Are minimum requirements enough? He challenged whether repairers or insurers clearly have defined what “good” looks like. He pointed out one example in a draft revision of CIC’s
definition of the minimum requirements for a shop, which calls for shops to have a minimum of one technician certified in welding. Monaghan asked about a shop that has six or eight technicians, only one of which who is certified and who is gone for a day when welding is done on vehicles. “Is that safe? Is it right? I seriously don’t think so,” Monaghan said. “If you’re welding a car, you should be tested before you get to weld.” He said that part of the problem with not having standards is that repairs are too often designed based more on negotiated cost. “You need to understand there is an independent correct repair, and that has to come first, and only… then do you figure out, and if necessary negotiate, the cost,” he said. Monaghan said over the course of three years, he took his white paper to shops, insurers and automakers for
input, and by 1991 it was ready to be implemented as a standard. “The good shops that wanted to differentiate themselves stepped up and said, ‘If that means I have to be audited four times a year, front door to back door, looking in every dark corner, then that’s the standard I want to be identified with,’” Monaghan said. The standard was eventually adopted by 13 insurers (who required it be met by shops on their programs) and 11 auto manufacturers, Monaghan said. Though Monahan didn’t mention that another set of standards was also vying for adoption by shops and insurers, he did say that in 2007 he stepped aside and the current single standards program in the U.K., implemented by the insurer-funded research firm Thatcham, moved forward.
The issue of costs Monaghan returned several times at
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CIC to the topic of the impact of standards on costs. He acknowledged that in some instances in the U.K., repair costs (and the percentage of vehicles declared total losses) have risen. But he said the reduction in costs associated with variability and other issues declined. “If you get the right people, the right repairers with the right materials and the right skills and training—if you get all those things more frequently—then you reduce the variables,” he said. “There is less rancor, less rework, less supplementaries. All those factors were contained and scaled back considerably.” Monaghan, who recently moved to the United States, clearly has an interest in playing a role in the development of standards here. “I’m living here now, and I’m willing to help CIC or anybody else in this industry with my knowledge and background,” Monaghan said. “I think the U.S. can achieve something quite spectacular (and) does not need to go through the pain we went through… “If the repair industry does not embrace this and take charge of its own destiny, then it will be a victim of change.”
Other perspectives on standards in the U.K.
As an advocate for implementation of a set of collision repair standards here, Mike Monaghan, at the most recent CIC, spoke mostly of the upside of the standards he helped develop in the United Kingdom. But others there, even those who support the standards, acknowledge some challenges they pose. In the U.K., more than 840 shops (out of an estimated 1,400 that participate in insurer direct repair programs) have earned certification under the 5year-old set of repair standards. Although the standards were developed by an inter-industry effort, the implementation of those standards and certification of the shops is overseen by Thatcham, an insurer-funded research organization. “It’s basically a get-of-jail-free card for insurers,” said Chris Mann, publisher of Bodyshop Magazine in the U.K., has said of the standards program. “If something goes wrong and
they are asked, ‘Why did you choose this body shop,’ just saying, ‘It’s cheap and it’s there,’ is not a very good answer to a court. But ‘I chose this body shop because it is independently-audited through this standards program,’ means you’ve taken the due care that a reasonable organization should do. I think that’s a big, big plus for insurers.” But Mann also points out that without such standards “against which their suppliers can be measured...the only criteria insurers can use is price.” Certified shops also have the benefit of using the “Kitemark” logo, somewhat equivalent to the “Good Housekeeping” seal of approval in this country in that it is widely recognized by U.K. consumers as a designation of some level of performance among the companies and products that have earned its use. Paul Gange, the president and chief operating officer of Fix Auto USA,
said that while he believes in the value of standards for the industry, he’s observed some of the challenges with the program in the U.K., where a similar Fix Auto organization has more than 60 franchises. Gange noted that at one point in the U.K., there were multiple competing sets of industry standards, and shops found themselves being required by different insurers to implement multiple standards “This was, at the very basis, a bit of a mess,” Gange said. Gange also said that while single standards program now in the U.K., is “at its essence positive, it’s riddled with bureaucracy, and along with bureaucracy comes costs.” Gange said that shops in the U.K. feel they bear the burden of these costs, which include $30,000 to $80,000 in terms of an initial implementation fee, along with the equivalent of just under $8,000 a year in annual training.
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Women’s Industry Network Reports Winning Growth in 2012 by Kelly McNalis
In retrospect, it’s apparent that 2012 was another “winning” year for WIN, the Women’s Industry Network®. WIN is a not-for-profit organization dedicated to providing women in the collision repair industry with educational opportunities that create a platform for success, as well as recognition for excellence and leadership within the industry. WIN has reported growth in several areas of the organization in 2012, from enhanced membership services and additional sponsorship opportunities, to improved internal operations and a refined governance structure. The organization reported a 50% increase in member engagement since 2010 and a nearly 13% average increase in conference attendance since 2007. The organization published its first annual Report to the Industry, which gave visibility and transparency to the organization’s activities, financial data, and sponsors. Victoria Jankowski, WIN Chair stated, “While this committee-run organization has come a long way, focus
on the core mission remains the same; a strong sense of community, scholarship support, and ongoing educational efforts for our members.” WIN has increased its visibility within the industry in a variety of ways. Its members have made an impact on membership through networking, personal connections, and corporate awareness.
Enhanced publicity efforts around the 2012 Annual Conference in Atlanta, GA, generated buzz beginning three months prior to the event and featured an expanded scope of speakers covering a variety of topics. As an example, Robyn Benincasa, adventure racer, firefighter and motivational speaker, addressed the conference’s theme of, “Be the Change.” “Her message of strength, perseverance, and accomplishment both resonated and inspired everyone in the
CAPA’s Lighting Standard Expanded to Include Testing of HID Lamps and Positioning Motors Keeping pace with the latest lighting technology, the Certified Automotive Parts Association (CAPA) has added new testing requirements to cover electric motors, actuators, and high intensity discharge (HID) lamps. The new requirements were approved by CAPA’s Technical Committee, an inter-industry consensus body made up of collision repairers, distributors, insurers, technical experts, and manufacturers. CAPA is the only independent certification body in the U.S. for aftermarket lighting parts that tests for, and confirms compliance to, FMVSS 108, as well as true comparability to the car company brand counterpart. “I’m proud to report that CAPA Standards are keeping pace with the latest technology and complex components used in today’s headlights,” said Jack Gillis, CAPA’s Executive Director. “Thanks to CAPA’s Technical Committee, which is undoubtedly one of the greatest quality resources in the industry, the CAPA standards enable informed choices in even the very newest products. The fact is, nobody can simply look at an aftermarket light and know if it truly matches the
car company brand part or fully complies with FMVSS 108—that’s why CAPA’s independent certification program is so important,” said Gillis. The CAPA 301 Lighting Standard include: headlamps, taillamps, stop lamps, turn signals, and fog lamps. Parts that have been certified to the CAPA Lighting Standard are clearly marked with CAPA’s unique, tamperproof Quality Seal. The CAPA Seal, each with a unique number, represents independent verification of both compliance to Federal Motor Vehicle Safety Standard 108 and comparable performance to the car company brand parts. Like all CAPA Standards, the updated CAPA 301 Lighting Standard test procedures and tolerances are available to the public at no charge via the CAPA website. “Full transparency is a critically important component of the CAPA Certification Program,” said Gillis.
room,” said Ruth Weniger, WIN Communications Chair and CEO of Airbag Solutions. A variety of sponsorship levels and conference sponsorship opportunities have helped spread organizational awareness of WIN within sponsoring companies, as well as the industry at large. The greatest expenditures in the WIN budget are related to the Annual Educational Conference, which provides attendees with an opportunity to interact with their collision industry peers and receive educational opportunities. Once sponsorship is secured, WIN subsidizes 35% of each attendee’s cost to attend the conference. To continue strengthening its program and providing measurable improvements in 2013, the WIN Board Strategic Planning Session identified three primary objectives at the start of 2012: ● Enhance the value of WIN membership and sponsorship ● Increase industry visibility of WIN, our activities and our members ● Establish a more robust operational and governance structure for the Board of Directors
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Jankowski stated, “Like any growing organization, WIN will continue to be challenged with building stronger operational processes, creating consistency in communication that supports the WIN mission, and tracking progress so we can support continued success.” The Board and committee members are engaged and confident that these objectives will align WIN for another successful year in 2013 and enable the organization to continue its momentum. “WIN will continue to explore new ways to connect with women in the industry, keep our sponsors engaged, and support the positive energy our network brings to the overall industry community. As the organization grows, expect to see more ways WIN can contribute,” Jankowski said. “We are ever grateful for the continued generosity of our sponsors who support our efforts to engage women in the Collision Repair Industry and we welcome new members and sponsors who are similarly committed to advancing our mission,” she said. To learn more about WIN, visit www.womensindustrynetwork.com.
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American Honda Launches Two New Consumer Websites by Ed Attanasio
American Honda recently launched two consumer-related websites to provide pertinent and timely information to owners of Hondas and Acuras. See next story for new collision center focused Honda website.
“We learned that most people do not know that aftermarket parts could be installed when their cars are being repaired at a body shop or collision center. They understand that aftermarket parts are used in the mechanical world, because they drive by the parts stores every day, but they’re not aware
Collision.Honda.com tells owners of Hondas and Acuras what to do when they get in an accident in its Accident Assistant section, while they get a glimpse into what happens when their cars get fixed by accessing the site’s Collision 101 section
Earlier this year, the manufacturer launched its collision consumer site, Collision.Honda.com, after years of development and the early reviews are very positive, according to Gary Ledoux, Honda’s Assistant National Manager of Wholesale Parts Marketing. Last month, the carmaker also launched AirbagAware.Honda.com, a site the company created in response to the burgeoning problem associated with the proliferation of counterfeit airbags on the market. After polling its customers and getting their feedback through several focus groups, Honda saw a need for both new websites, Ledoux said. “We conducted several focus groups in 2009, and we learned some very interesting things. The average consumer knows that their car gets wrinkled up, they take it to the body shop and a few days later they get it back and it’s straight and shiny again, but they have absolutely no idea what goes on in the background. So, one of the main things that we cover on Collision.Honda.com is an in-depth look into the collision industry from the consumer’s perspective,” Ledoux said. Another need for education about parts became apparent through their focus groups, Ledoux said.
that aftermarket parts exist in the collision industry. In the past, they assumed that OE parts were being used in their cars. They didn’t realize there was an alternative. When we explained this fact to the people in our focus groups, some of them were visibly upset, because they all thought they were getting OE parts.” In the past, Honda created collateral pieces to convey important messages to its owners, but now they’re embracing the Internet to achieve the same thing, Ledoux said. “Years ago, we created a brochure called “What to Do When You Get in an Accident”, designed for new owners of Hondas or Acuras. We put them in every car we manufactured, and did it for several years. It cost a lot of money to produce them and when we conducted a survey, we found out that most of these brochures died a slow death in the bottom of peoples’ glove boxes. So, we decided to put the information online, so that people could access it quickly and easily.” The Accident Assistant section of the site deals with what to do after an accident, and the section titled Collision 101 focuses on factors and issues drivers can and should deal with before an accident takes place, Ledoux explained. “Collision 101 is a primer on how to deal with body shops, by
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providing a glimpse into the industry from a consumer’s perspective. It’s a very thorough approach with a ton of value-added features.” The website includes pages that deal with repairs, parts, insurance relationships (DRPs), safety tips, a shop locator, a collision glossary (that goes from Accident Forgiveness all the way to Waterborne Paint), news, views and a special section that features Honda’s position statements can be found in the Collision 101 section. Honda has included a series of position papers on Collision.Honda.com as well. “We didn’t know what the response would be to the position papers, but it’s been exceptional,” Ledoux said. “They deal with all of the topics that people are concerned about and they want to know our stance on all of them. They deal with subjects like aftermarket vs. OE parts, wheel repairs, safety recalls, structural parts replacement, salvaged and used airbag components and unibody repairs and salvaged/recycled parts. It covers the entire gamut and evidently it’s going to be a very popular part of the site.” In the News, Views and More section, users can access the latest and greatest
stories about the collision industry, with a focus on relevance to the consumer, Ledoux said. “This is an ever-changing section of the site, because we’ll be posting new articles on there all the time. In addition, we have a Hall of Fame page in that section, which consists of stories about people or companies within the collision industry that do good things for other people on a regional basis. That means that only the people in those areas know about it. Our Hall of Fame will bring national attention to these efforts and we want them to get out there, because they deserve the accolades. Also, our Rear View section is going to be a lot of fun, providing historical capsules that relate to the automotive history, as well as the world of collision repair.” In addition to creating Collision.Honda.com, Honda also recently launched a second consumer-related site, AirbagAware.Honda.com, an effort that became necessary when the carmaker encountered a growing problem associated with counterfeit airbags. “A few years ago, we began seeing more and more of these counterfeit See American Honda, Page 39
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Sherwin-Williams Hosts A-Plus Network Vision Conference Sherwin-Williams Automotive Finishes hosted its invitation-only APlus Network Vision Conference in Palm Springs at the beautiful La Quinta Resort Dec. 5–7. The theme of the conference was “Focus on Your Business.” More than 100 leading A-Plus network collision repair owners and managers from the U.S. and Canada attended. The event kicked-off with a round of golf at the TPC Stadium Course “PGA West” and was followed by an outdoor welcome reception at La Quinta’s “Hotel Waterfall.”
and 3. Private equity funds are now fully engaged in the pursuit of MSO’s which will bid up the price of acquisitions. His presentation concluded with his prediction that: ● Large MSO operators will expand into all regions of the country over the next 10 years ● Independent collision repairers and small MSO’s will work harder for less revenue as insurance carriers ‘guide’ their customers to larger MSO operators ● The larger MSOs will start having
“The Four Horsemen of Consolidation” presented by Rex Green, Director of BB&T Capital Markets
Thursday’s keynote presentation was given by Rex Green, Managing Director of BB&T Capital Markets. The presentation comprised an investment banker’s view of the collision industry. Rex started his presentation by stating “Don’t shoot the messenger.” His three key takeaways were: ● DRPs will continue to increase their influence in the market ● Shops with high DRP volume are attractive to MSO’s (the ‘Four Horsemen’ of the Current Consolidation),
strong brand recognition among car owners, influencing the flow of claims away from independents ● Independents and small MSOs should be considering one of three options: ► Sell “sooner” or at an otherwise advantageous time ► Grow now and sell later ► Change their business model to offset the decline of insurance-pay customers Green’s presentation was fol-
lowed by Matt Ohrnstein’s presentation, “The Collision Repair Industry Competitive Landscape” and “The KPI’s of Integrity Leadership” by Marcy Tieger, both from Symphony Advisers. Gary Ledoux from American Honda Motor Co. presented Honda’s “ProFirst” new body shop recognition program and explained the benefits to shops Gary Ledoux (increased opportunities to reach more customers),
Joe and Jessica McKenna, owners of Golden West Collision Repair in Sunnyvale, CA
what’s required to qualify and the benefits of participation. For more information on the ProFirst program, go to profirst.honda.com or profirst.acura.com. The afternoon concluded with a “Current State of the Industry” presentation by Raymond Chew of CCC Information Services and a roundtable discussion by Sherwin-Williams Business Consulting Services titled “Keys to Keys.” Thursday’s dinner was well attended (l to r): Dave Dewalt, Steve Feltovich, Lee Rush, and featured a silent auction to Managers of Business Consulting for Sherwin-Williams Automotive benefit Operation Comfort.
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Sherwin-Williams’ Team (l to r): Bill Mays, Director of Sales NE Region; Rob Lynch, Senior VP of Sales; Craig Williams, Director of Global Vehicle Refinish, OEM and Services; Kurt Hammond, Director of Sales West Region; Brandon Devis, Director of Sales Force Effectiveness; and Troy Neuerburg, Marketing Manager of Business Services 30 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
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Continued from Page 12
Year in Review
George Avery of State Farm said his company’s experience with M2, the 27-shop consolidator in California that closed suddenly back in 2005, led his company to focus on finding topperforming individual shops, whether stand-alone or part of an MSO. Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have is over-saturation in certain marketplaces, so you’re not going to put (all their shops in a market) Rick Leos on (the direct repair program). And then there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.”
November Toyota previewed a new “predictive estimating” system it is creating that incorporates all necessary parts and
Toyota-recommended procedures along with links to all related Toyota bulletins and published documentation. Toyota’s Jerry Raskind called the system a “game-changer,” in that rather than having an estimator start from a blank page and add line items based on what they know or can locate about OEM procedures, the system begins with a complete estimate and allows the user to omit items as appropriate. “Everything you need to fix our cars correctly and to our standards is there,” Toyota’s Rick Leos said.
December The National Insurance Crime Bureau (NICB) released revised estimates indicating that 230,000 vehicles in Eastern states had been damaged by super-storm Sandy. New York had the most vehicles affected by the storm with 130,000 while New Jersey generated 60,000 claims. John Yoswick, a freelance writer based in Portland, OR, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
Audatex Extends Contract with Boyd for Estimating
Audatex North America, Inc. announced a new multi-year agreement with The Boyd Group Inc. to provide estimating software and related tools to support the multi-shop operator (MSO) in the U.S. and Canadian markets. The Boyd Group operates more than 200 locations across the four Canadian provinces under the trade name Boyd Autobody & Glass, and in 14 U.S. states under the trade names Gerber Collision & Glass, Pearl Auto Body and The Recovery Room. Boyd also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States. “Through an ongoing commitment to excellence, the Boyd Group is a leader in the collision repair industry and continues to build momentum as one of the fastest growing multi-shop operators in North America,” said Wolfgang Ahrens, Managing Director of Audatex US. “Audatex is pleased to extend our business alliance with the Boyd Group as we support their U.S. and Canadian operations with the industry’s most intelligent and complete
estimating and collision repair solutions,” Ahrens said. Boyd and its predecessor companies have been Audatex customers for more than 25 years. More than 100 of Boyd Group’s collision repair centers will use Audatex Estimating technology, leveraging features such as intelligent 3D graphics, colorcoded parts and digital imaging to ensure estimating accuracy and efficiency, as well as the highest levels of customer satisfaction. “We have established and maintained a long-standing alliance with Audatex because the company continues to innovate and address the dynamic business and technology needs of our repair centers and employees, so that they in turn can better serve our customers,” said Tim O’Day, President and COO of the Boyd Group’s U.S. Operations.
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Society of Collision Repair Specialists Takes a Look Back at 2012 by Aaron Schulenburg Executive Director, SCRS
2012 was an interesting year in the industry; a year that was filled with both new and pre-existing challenges for collision repair business owners. Business activity fluctuated from week to week causing market uncertainty, daily reports of consolidation filled the headlines of the trade press, insurance companies continued to develop ways to interject themselves into collision repair business management, and reports of technology development cast a long term question mark over the future of collision repair businesses. When concern and uncertainty occupy the marketplace, businesses often look to the collective power of community to find information, lean on support from their peers, and collaboratively innovate solutions. As a trade association that has spent more than three decades solely dedicated to educate, inform and represent the collision repair professional in all aspects of the industry, 2012 was a remarkably busy year for the Society of Collision Repair Specialists (SCRS). In taking stock of the past year, I am confident that the entire staff and volunteer board of directors of SCRS are proud of the work that we embarked upon in each of the three areas of our mission. While the ultimate results of those efforts may not be fully realized, the momentum from that work will serve the organization and its membership well, leading into 2013. As a member driven organization, the success of our efforts is often best gauged by the response of our membership. For SCRS, our actions in 2012 have been met by significant levels of growth in every individual and corporate membership category. In addition to welcoming individual businesses, SCRS has proudly added new state and regional Affiliate Associations to our network with the Northern Michigan Body Shop Association, the Texas Independent Automotive Association, Idaho Autobody Craftsmen Association, Alabama Automotive Repair Industry Society of Excellence and the Utah Auto Body Association. These state groups extend the reach of SCRS’ informative network, bringing our Affiliate Association relationships to more than 40 affiliated groups across North Amer-
ica, and strengthening the breadth of our voice as we represent the industry. It is through this growth that our organization is able to further our resolve, knowing the message points, the areas of focus, and the activities we have undertaken have spoken to those we aim to represent, spurring unsolicited growth in support and participation. But a thriving trade association requires more than simply the ability to boast one of the broadest networks of collision repairers such as SCRS’; it requires action and activity that speak to the heart of the memberships issues. Our members give us the tone and tenor behind our voice, but it is our responsibility to make sure it that collective voice is raised at the right time, for the right reasons, and that our chorus echoes through the industry’s halls. In fact, vocalizing repairer’s perspectives at a national level was not just a continued responsibility for the Society in 2012, but a centerpiece of the association’s efforts. From entering into the year with a written response to an article in USA Today that claimed that auto body shops say they, not insurers, should set costs, to an end-of the year announcement that SCRS would be working with other repairer groups to facilitate ongoing repairer-only forums in conjunction with other industry events; 2012 has marked a year where repairers understood the need to embrace the power of community, and to stand up for their business independence. No issue became a bigger focus for SCRS, or the industry, than that of insurer mandated parts procurement programs, which first received focus due to the launch of State Farm’s pilot program with PartsTrader in several markets across the U.S. in the spring. As part of our responsibility to both inform and represent our membership and our industrial community, SCRS issued a series of informative releases on this program throughout the year; the first being issued as early as April, and marking one of the industry’s first glimpses into the new program at the time. This release was followed with an interview SCRS conducted with representatives from New Zealand highlighting the impact that similar insurer-mandated parts procurement models have had in that geographic market. The purpose of this information was simple; the more
32 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
informed and educated collision repairers in the U.S. are about the potential impact and ramification of such programs, the more equipped they are to form a proactive individual business strategy on how to address such a mandate if their business is faced with it in the future. There was perhaps no greater industry advocate on this issue in 2012, because our membership made it clear that this issue was paramount to virtually all others. Additional releases, presentations, debates and efforts centered on this issue throughout the year, mirroring the concern and pushback expressed by the both the industry and by individual businesses alike. The end result of such communication and industry activism is yet to be seen, but the repairer’s voice was certainly heard. People are paying attention, and more repair facility owners today understand what has happened in countries like New Zealand and Canada, because of information that only became available through an organized international network such as the one provided by SCRS. Representing an industry takes the confidence and understanding to know when collaboration will generate the most substantial and beneficial results for the industry, and SCRS has been proud to continue our history of work with other associations and entities in 2012. In November of 2011, SCRS and other collision repair organizations released a monumental joint position statement officially recognizing OEM vehicle manufacturer published repair procedures as the industry’s standard of repair. As continuation of that effort in 2012, SCRS hosted a face-to-face meeting in April of national repair associations, I-CAR, the OEM Roundtable and top automakers in Oklahoma City, OK. The meeting was a continuation of the step taken by SCRS and more than two dozen additional state, regional, national and international collision repair organizations. The initial positioning, along with the leadership provided by SCRS and others in ongoing meetings and communications have led to major OEM vehicle manufacturers responding with amazingly innovative solutions that have the potential to change the face of our industry. One such tool with potential is TOYOTA’s recently announced predictive estimating technology that is under development, and a direct work
product of these ongoing repairer driven discussions. Perhaps one of the most notable areas in which we have actively embraced other groups to address critical industry wide topics include a joint letter to the Information Providers in January of 2012, regarding the collection and reporting of repairer business data. The statement served as a public request from the collision repair industry to Audatex, CCC and Mitchell, seeking removal of contractual clauses within end user license agreements which require permissive access to aggregate and collect end-user data as a point-of-sale requirement to purchase those estimating programs. This communication generated responses from CCC, Mitchell and Audatex as the year progressed, and served as an ongoing source of discussion for the Collision Industry Conference Data Privacy Committee. SCRS continued to collaborate with our colleagues at AASP and ASA in the management and oversight of the Database Enhancement Gateway; a free industry resource that was developed and funded by industry trade associations to address user-identified errors, inaccuracies or omissions in electronic estimating system data. In 2012 we proudly watched as this trade association-funded industry tool saw both its 4000th and 5000th inquiries. The DEG also made headway launching a major website overhaul to enhance the end-user experience, and adding a functionality to address the top ten user requested enhancements to estimating platforms. Addressing estimating data has long been a part of SCRS’ history, and in addition to the collaborative work with other trade associations, SCRS has provided other resources that aim to provide collision repairers with the most effective tools in their toolbox. In 2011 SCRS provided the industry with the SCRS Guide to Complete Repair Planning; an exhaustive list of legitimate operations and services our technicians provide that often go unrecognized in the estimate development and final billing processes. It had been initially developed by the late March Taylor, who was a former board member of SCRS and owner of Auto Body Hawaii, who worked tirelessly to find ways to standardize the blueprinting process within his own repair facility. The purpose of the
Guide was to aid repair facility personnel in formulating the most accurate repair plan in the estimate preparation process, to minimize the need or expense of a supplement. Taylor worked with other SCRS board members looking at commonly overlooked or forgotten non-included operations, building a list that would help benefit a more comprehensive blueprint. After his passing, SCRS sought to compile his work into a resource that would benefit all in the industry by releasing the guide. In 2012 SCRS saw tremendous growth in the use of the free resource, being featured in estimating education programs offered by every major refinish company, incorporated into 3M training programs I addition to many others. Early in the year, SCRS announced that the data from the association-crafted estimating tool would be featured in the free online estimate review tool www.estimatescrubber.com. The year also brought about a renewed focus in the development of SCRS member benefit programs, featuring discounted services from companies such as Alldata, AutoWatch, AdminConcepts, Summit Software &
Mobile Solution, Siriani & Associates, Total Merchant Services and as of 2012, GRC-Pirk. The GreenSweep program with GRC-Pirk launched an energy and pollution performance program, online tracking tools and free sustainability education programs to educate the industry on the benefits to environmental responsibility. But SCRS’ education agenda wasn’t only focused on the environmental issues; the Education Committee continued its efforts throughout the year, bringing eye opening topics to SCRS open board meetings around the country. As part of the association’s emphasis to inform and educate repair businesses, the Society started working with CollisionHub to record and produce free copies of those presentations during 2012, making discussions such as safety considerations in glass replacement, squeeze-type resistance spot welders, and blueprinting tools for collision estimating available for all collision repairers on the SCRS website. But when it comes to education, no other industry venue provides more opportunity, possibility and inspiration than SCRS’ involvement at the SEMA Show, which prominently features SCRS’ Repairer Driven Education se-
ries. In looking back on the week at SEMA, and the events that took place during it, you can’t help but feel reminded about how important a strong sense of community is to professional betterment and personal enrichment. A sense of community provides grounding, balance and camaraderie when faced with challenges. This is exactly what organizations such as SCRS are here to do; provide our members with a community network that offers them the opportunity to strengthen their relationships and their connection to the industry. At the SEMA Show, that sense of community was noticeably heightened this year. SCRS has been very proud to work with the wonderful show organizers, and to lead the development of the collision repair industry footprint within the show over the past several years. It was hard not to notice that this section of the Las Vegas Convention Center - a complex housing an astonishing one million square feet of booth space, and hosting over 135,000 attendees – had a noticeable spark of positive energy flowing through the halls inspiring those seeking new business ideas. The traffic in the aisles was dense with individuals searching
for collision repair business solutions, and the classrooms were alive with impassioned subject matter experts leading idea exchanges with over a thousand repair professionals from around the globe looking to soak in information offered by SCRS. These classes are directly designed to help attendees bring tangible results home to their businesses. This year’s lineup delivered tremendous information that supported interests in all areas of business development, while bolstering that sense of community. We saw personal, inspiring and occasionally humorous discussions between U.S. entrepreneurs, well known for their innovative approach to business development; riveting elaboration of how forthcoming technical development in other areas of the automotive industry is going to have cross-over effects on our work capacity over the next 40plus years; and information exchanges from global representatives from Canada, Australia and New Zealand, demonstrating the impact of insurerdriven parts procurement initiatives in international markets. This is what community is about. It is about sharing our best attributes, See SCRS Look Back at 2012, Page 35
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Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Not All Insurance Executives Are Created Equal with The Insurance Insider
Being an insurance executive has its a different world. It’s people like Bob pros and cons. I guess it’s not really that cause lower-level insurance comdifferent from any other job – with pany employees that you have to work with Rae with Siskto think and act like empowered one exception. We are Chasidy the ones with the gold, and the evil body shops are dictators towards shops. the ones that are trying to get it. That makes my job unique because not everyone gets with to Chasidy Rae Sisk play the role of the leprechaun. Although I am joking, there are a lot of similarities between insurance company employees and the leprechaun at the end of the rainbow protecting the pot of gold. We are unique, misunderstood, It isn’t a healthy situation but it’s deceptively sneaky at times – and con- one that is tolerated at various levels tinuously worried about someone tak- because Bob is a company man, and ing our money. he watches our money and is helping With the holiday season here, to eliminate fraud. When Bob identiperhaps I should be making comparfies a shop that he thinks is over-writisons between Santa Claus and insuring estimates or not properly repairing ance executives, but that would be vehicles, his view is considered justiridiculous. We are nothing like Santa fied. Sadly, Bob’s word is taken as if it because we don’t give anything away. were written by Matthew, Mark, Luke I guess we more closely resemble or John. Ebenezer Scrooge, if trying to stay An even sadder reality is that Bob within the holiday theme. never worked on a car in his life. He Why am I telling you something couldn’t tell you a weld nugget from a you already know? After all, we all chicken McNugget, yet he is judge know that grass is green, there is no and jury on a proper repair and repair such thing as paint caps or Santa Claus, hours. and insurance executives are all misers How is this possible? Because (present company excluded). Actually, most insurance company executives I’m telling you all of this because not are born on a different side of town all insurance company executives are and have years and years of drinking created equal. Even though it is fun to from the same water fountain. I’m throw jabs at defenseless suits, the renot sure how I escaped because I ality is that there are a few good ones was drinking the same stuff. But for among us (present company included). most of us, all of our experience is But please meet Bob. Bob is an insurance-related, so we don’t know insurance executive who works with what’s really on the other side of the me. Although Bob doesn’t wear green, wall. Depending upon your mentors isn’t short and doesn’t have red hair, within an insurance company, your he is very much a leprechaun. I don’t vision of body shops can end up know when or why he became so bit- being tainted. ter and perpetually worried about the I am grateful that I’ve had many evil body shops stealing money. But level-headed bosses over the years. I he has more conspiracy theories than do recall one in the early 1980s that the George Bush administration. looked just like the nutty professor. It’s extremely difficult to work I’ve never asked Bob, but I am willwith guys like Bob because he lives in ing to bet that he spent a lot of time
Northeast News Shop Showcase
working for that mad scientist. He despised body shops, and Bob is exactly the same. I think he wakes up every morning with sole purpose of penalizing shops. While Bob actually does find some shops that are thieves and couldn’t repair a Radio Flyer wagon correctly, the vast majority of his hysteria should be viewed as nothing short of a witch hunt. This story doesn’t have a happy ending. Bob isn’t a mythical character. He is someone who is still very active in our business. I believe he will retire in a few years but the damage has already been done. I think every insurance company has a Bob. Insurance companies have made positive changes over the past 30 years, but they’ve been unable to fully rid themselves of the cancers like Bob. They are the old-timers who are carry-overs from a time when shops and insurance companies were sepa-
Mainstream Media
34 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
rated by the Berlin Wall. I’m grateful to have been there when both that wall was erected and when it was torn down. I found out that the people on the other side of the wall are just like me. You can’t fight with the Bobs of the world because you won’t win. There is no answer or fix. The best you can do is to know your enemy. Debating, arguing and offering personal opinion will surely raise the ire of the cunning and deceptive leprechaun. Only facts and documentation are worth their weight in gold. Just don’t tell Bob that. He might try taking both of them for his overflowing pot. “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects solely the opinion of The Insider as it offers an unvarnished look at various issues impacting the collision industry. tC 2011
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White Still Favored as Most Popular Car Color White/white pearl dominates the global automotive color popularity ranks for the second consecutive year, according to the 2012 DuPont Automotive Color Popularity Report, released Dec. 6. Black/black effect moves into second place in the global ranks this year, largely due to the increased popularity in the Asia Pacific market as this color has a worldwide perception of high quality and luxury. Silver fell to third, as its popularity has waned due to its overall gradual decline, especially in the critical large automotive markets of Europe and Asia. The DuPont report, in its 60th year, is the largest and longest running report of its kind in the automotive industry. It is the only report to include global automotive color popularity rankings and regional trends from 11 leading automotive regions of the world. North American vehicle color in 2012 was once again dominated by white/white pearl, with 24% market share, putting it in first place for the sixth consecutive year. It also led the compact/sport and truck/SUV segment. Black/black effect was at the top of the intermediate/CUV segment and
luxury/luxury SUV segment popularity ranks. It represented 19% of the overall market, maintaining second place in vehicle color popularity in North America. Compared to metallic versions, solid blacks are most favored in the truck segment. Metallic blacks brought interest to the market and have been widely used in all segments, especially in luxury/luxury SUV. For the first time since 1998, silver did not lead in any of the North American vehicle segments, which may be attributed to the increased influence of black and white as status symbols for luxury and quality. However, silver held steady in third place overall with 16% market share. Gray rose two percentage points this year with increases in the truck, luxury and intermediate vehicle segments. The top four preferences, white, black, silver, and gray, have represented the majority of popularity the last 10 years. Red rounded out the top five color choices across each vehicle segment and consequently, overall in the region, with 10% of the market. Popularity rankings of bright colors: red (10%), blue (7%), brown/beige (5%), yellow/gold (2%), and green (2%).
Continued from Page 33
SCRS Look Back at 2012
whether it is a product, a service or an idea, and showing our peers how to use it to their advantage. It is the recognition that while collision repairers have clearly and definitively decided that the SEMA Show is THE national venue for collision repair business solutions in the United States, that it has become a melting pot of collision repair attendees from dozens of countries. It is a place to run into old friends, and to meet new ones. It was a place that the attendees and exhibitors have both grown to realize the importance of the show and its content directly offering solutions specific to our niche industry, but understanding (and benefiting from the fact) that we are really an integral part of the broader automotive industry. It is that sense of community that will support the success of collision repair businesses around the globe. Connecting with our peers, through our associations; learning the basic foundations of successful business management, to the cutting edge of products and technologies; making
friendships that span a globe and last a lifetime; these are the things that make SCRS proud to be a part of the SEMA Show, and the things that really define the work of a trade association. The end of the year provides the opportunity to reflect, to look back at accomplishments and shortcomings from the past year, in an effort to better yourself in the coming one. As we look back over the past 12 months, the actions, activities, and the engagement from our members highlights an exemplary period where our organization can proudly say, we have been the voice our membership expects from us. We have advocated on the issues that resonate with those who support us; and we have been an organization that provides our members with leadership, but allows our ideals to be led by our membership. As an organization, we are proud to be Repairer Driven, and we believe the work speaks for itself. 2012 was a difficult year, but it was a year where collision repairers came together, and learned the value of community. We look forward to the opportunity that creates going into 2013, and we are proud to be the Society which collision repairers can call home.
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www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 35
Northeast Shops Still Recovering from Sandy by Chasidy Rae Sisk
When Hurricane Sandy charged into the East Coast in late October, she devastated many homes and businesses. Her most vicious attack was perpetrated in NY and NJ, leaving millions with flooded properties and no power. Sandy’s effects on the auto body industry were no different. Many collision repair facilities in the area were destroyed, and equipment and tools were demolished. Some still had not reopened as of the middle of December. Three shop owners took the time to share their stories. Bobby Zigman, owner of Collision Depot in Oceanside, NY, suffered personal and business losses as a result of Sandy since his home is near his shop and both were flooded. Zigman notes that the storm left five or six feet of water in his shop and parking lot, completely wiping out all of his shop and office equipment. Though Collision Depot technically remained open after the storm, the flooding ruined equipment and lack of both phone connections and
electricity prevented them from performing any actual repair work for about two weeks. Zigman’s dedicated employees still went to work, and he paid them to help restore the shop and clean their tools and equipment. Since then, Collision Depot has installed some generators. Even though they are now fully operational, they are still restoring their building and replacing the $750,000 loss in equipment as they go, due to a lack of insurance. More than 250,000 cars in the NY and NJ area have been totaled due to severe flooding, and Zigman notes a decrease in business because of the vast number of destroyed cars and the influx of rental vehicles in the area. He shares that though he is receiving occasional repair requests caused by the storm, his only hope for now is for the general public to get back on their feet. Zigman says he has noticed increased difficulties with insurance companies as they are investigating claims in greater depth and just generally giving consumers a harder time obtaining repairs. They’ve opted to total many of the damaged vehicles. The insurers have also given Collision Depot some
problems regarding partially and fully repaired vehicles that had not yet been picked up; the insurers are objecting to paying for the repairs on vehicles that were totaled by Sandy’s flooding. Despite the challenges that he faces daily, Zigman maintains a positive outlook and puts his efforts and focus into rebuilding. He states, “What gets me through living with this tragedy is remembering 9/11 and knowing this is nothing but lifestyle changes compared to what others went through then. We will get through this.” Burnside Collision of Inwood, NY, was similarly struck by Sandy’s devastating impact. With several feet of water in their office, all computers and desks were destroyed and had to be replaced. Over two feet of water in their work area demolished their equipment, submerging and ruining their spray booth motor and their Car-O-Liner’s mechanisms. Additionally, the flooding destroyed a number of partially and fully repaired vehicles stored on the property, including police cars and Burnside’s tow truck. All of this destruction forced owner Ronnie Marciano to shut down for two and a half weeks.
Though Marciano has noticed an influx in repair business since the storm, he initially had to turn away a great deal of business due to the damage done to his shop, thus losing potential business in addition to the loss of work-inprogress. Several completed cars were also destroyed, and one completed repair which was being stored was completely flooded out, forcing Marciano to fight with the insurance company in order to get paid for the work he had already completed. In addition to the general frustration of declining customers’ repair requests, Marciano faced the difficulty of expenses without the ability to capture business and revenue. Burnside Collision’s current focus is on repairing and replacing the equipment damaged by the storm. Marciano’s house was also flooded, as was his estimator’s and office manager’s homes. Employees who were not affected came to the shop to start working on repairs and get the business back up and running, said Marciano—a credit to his employees’ dedication and his relationship with them. Because of this extra effort, Burnside Collision was able to
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meet payroll obligations instead of utilizing FEMA’s layoff program. Noting that insurance companies are currently focused on picking up submerged cars, Marciano expects to see more storm-damaged vehicles in the future. He suggests that many consumers may not yet realize that their cars were damaged by salt water, and he also suspects that some people have avoided submitting claims for fear their insurer will total their vehicle. Though insurers are totaling many cars, Marciano notes that they’ve returned to standard procedure with handling claims. Initially, the volume of claims was overwhelming, causing delays, but by using independent appraisers to manage their volume, insurers have been able to return to normal processing times. Burnside Collision has seen very few flooded cars come in for repairs due to the challenge that owners face when trying to retain their vehicles. Marciano believes that insurance companies should be making decisions on a case-by-case basis instead of making a blanket decision to total so many vehicles. In spite of their own problems, Marciano and his staff helped unload a truck filled with supplies sent from Florida to provide relief for victims of
Hurricane Sandy. Marciano sees this tragedy as a learning experience, stating “We will pick up the pieces and work diligently to move forward and develop better plans for the future to become a better, more prosperous business than before.” Of the three shops described here, Tony D’s Auto Body of Atlantic Highlands, NJ, seems to have suffered the most severe losses. Owner Tony Dellapietro notes, “We lost everything. And I mean everything!” With five feet of water in the shop, all of his tools and equipment were destroyed. With the help of his parents and dedicated employees, Dellapietro has begun cleaning and oiling his equipment, but not his personal toolbox, which he began accumulating when he was 11 years old. He laments, “I started this business in 2003. What I built in ten years was wiped out in ten hours.” Because of difficulties with his insurance, Dellapietro has been forced to explore loan options to avoid having to close. He has purchased new office desks and computers, and an electrician has replaced outlets in the shop. For now, everything is still up in the air as the funds for shop repairs just aren’t there. Dellapietro has been forced to
utilize his savings and other assets, and being forced to turn business away has been devastating. “You just don’t get rich in this business,” says Tony. He has been unable to turn a profit since Sandy, and the bills just keep accruing. Employees of Tony D’s are currently relying on unemployment insurance since the shop is still closed. Dellapietro is busy dealing with disaster unemployment issues. On the day that Sandy hit, police had to force Dellapietro out of the building, but he could not extract the cars he was working on as there was already three feet of water in the yard. All seven cars in his shop were totaled, whether partially or fully repaired. Dellapietro admits that he was very emotional when he saw how badly his shop was damaged, and he has been seeking spiritual comfort. He has no clue when he will be able to reopen, and he notes “It feels like I’m starting over again.” These three shops are just a small sampling of the businesses that were damaged by Sandy. There are many options to contribute aid for Sandy’s victims. One such option is Hurricane Sandy New Jersey Relief Fund, P. O. Box 95, Mendham, NJ 07945-0095.
Rhode Island Shop Owner Arrested Again
The owner of a Pawtucket car shop accused of scamming customers was arrested again by Rhode Island State Police. Dino Coccia was taken into custody in North Providence by the Violent Fugitive Task Force Nov. 29 on four Superior Court Bench Warrants: Failure to Appear/Unlawful Appropriation; Failure to Appear/Unlawful Appropriation; Failure to Appear/Obtaining Money under False Pretenses; Failure to Appear/Obtaining Money under False Pretenses Coccia is the owner of America Sales and Collision Center. He was arrested in May after he was accused of selling two customers the same car and renting out cars he was supposed to be repairing. More than two dozen people have come forward, claiming to be victims of his scheme. In July, the Attorney General filed 50 new charges against him, including obtaining money under false pretense, unlawful appropriation, uttering bad checks and one count of attempted larceny.
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Continued from Cover
ASA Michigan
sumer files a complaint with the state, if you have an investigator or magistrate that interprets the current law based on verbiage instead of intent, they might not accept these digital means as a legitimate authorization. Anyway, we went around the state in the first quarter discussing the proposed updates and sought feedback from the industry as we continued our efforts on this task, which would help both industries conduct business moving forward,” Fisher said. ASA of Michigan also finished its webinar series on “Internet Marketing” which began in late 2011 and addressed seven segments: Facebook Basics, Search Engine Optimization and Web Development Basics, LinkedIn Basics, Business Blogging, Small Business Directories, Facebook Ads & Google Ad Words and Twitter Basics. “As an automotive repair industry, we need to understand that our customers’ needs of communicating are changing. The traditional ‘mailers’ as a marketing strategy are becoming less and less effective while being costly to
produce and distribute,” Fisher said. “We owe it to our repair industry to educate them on cost effective marketing strategies that include timely communication opportunities that brings business through their doors; this series took the fears away and allowed them to make decisions comfortably. We had to charge for this webinar series, I believe it was $25 per session for members and $40 for non-members, but the proceeds covered the costs of the Internet consultant’s time to provide these 45-60 minute segments—they were very informative and educating…and we still have them available for sale as a series.” Just as the year was moving along, a curve was thrown at ASA Michigan that was important to collision repairers as Michigan is a “NoFault” insurance state. “We got word that Representative Denby had introduced a bill that was raising the Mini-Tort limits from $500 to $1,000, which we saw as another opportunity to get business in the door for our collision repairers,” Fisher said. “Though we are a no-fault state for insurance, fault is still determined even if it is 51% to 49%, someone is that little percent over fifty. The individual Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!
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that is not the majority of fault can seek remedies for their insurance deductible in most cases. However, if the person is carrying a $1,000 deductible, under the current law, the most they could recover if not at majority fault was $500, which prevented people from getting their vehicles fixed if they were drivable. With the help of Bob Redding, our national lobbyist and his team, we were able to keep the collision repair industry updated and support Representative Denby’s legislation in a timely manner by using the site www.TakingTheHill.org to flood other legislator’s email boxes with industry support of the bill,” Fisher said. “Long story short, as the bill made its way through the House, we remained in touch with Representative Denby’s office and launched the same support efforts in the Senate which soon put the bill on the Governor’s desk for his signature — the law went into effect October 1, 2012!” It wasn’t long before another curve ball hit ASA Michigan. “As we were preparing for our annual golf outing and new training events, we got one of those curve balls thrown at us that makes you drop everything and focus on it,” Fisher re-
called. “State Farm rolled out the PartsTrader pilot in our West Michigan market in the city of Grand Rapids. I can remember that I was reading articles and quickly publishing the links because of the uproar it brought while having dialogue with our national office because I wanted to keep the industry aware of what was going on both in West Michigan and the three other pilot areas, but we soon realized there were errors in some of the articles,” Fisher said. “I can remember in one of the discussions with Denise Caspersen, our National Collision Division Manager, as she was reviewing all of the data that was hitting her office too, and she said ‘Ray, we have to go on a fact-finding mission here because we are seeing some discrepancies and we owe it to our membership to provide them factual information to make good business decisions about this, but this is huge!’ and so we did exactly that. We both wanted to get some press releases out letting everyone know, but because of it being a pilot and only in four areas, the task was much bigger than originally anticipated,” he said. “But, as we worked on this and held conference calls with
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vendors here in Michigan, Denise also was reaching out to the other markets too. From there it became a compilation of the data and then looking for a way to get this information out to our members in a non-emotional but professional business matter—which is when Denise coordinated a trip to Michigan with us and the rest has already been written about.” Fisher continued, “The tough thing about this was separating the emotion—we have a great industry whose make-up today are of people that are passionate about what they do and take pride in their final product. They have already seen continuous profit margins shrink and then this business model comes into play that is a game changer that potentially threatens this very concern…and we are still monitoring this as it goes into the Chicago market.” In July, ASA Michigan held its 27th Annual Golf Outing and it was another success. “We had good weather and everyone had a great time,” Ray said. “We also learned a lesson which had not affected us in the past and that was the way Fourth of July had hit the week previous on a Wednesday. Our attendance was down about 12% and
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as we called some of our normal attendees, we were told that they had taken some time off that Thursday and Friday after the Fourth and so they had to be at work on Monday,” Fisher recalled. “Though it had always been held the second Monday in July, the golf committee decided that we would move it to the third week for next year to avoid this issue moving forward.” The next thing ASA Michigan focused on was “the EVENT” held in October. “Our Board of Directors thought it was time for us to get back into hosting an expo and training venue preferably in the center of the state,” said Fisher. “It was a good experience for all that were involved and we were excited with the overall outcome as the template has been created for next year and those moving ahead. We had some quality topics, quality instructors and quality vendors whose support we greatly appreciated! We are already working on next year’s venue and people can remain updated by visiting a website that we created www.theGreatLakesEvent.com for more information. We plan to have a majority of the classes listed in the first quarter 2013, but the date for the Great Lakes Event is September 28, 2013.”
Looking into 2013, Fisher said, “Now we are gearing up for 2013 with many new things coming that I believe the members need to embrace. In the first quarter for example, we will be launching our updated ASA Michigan website which will be more interactive and serving to the industry, but most importantly our members. We also will be launching our ‘community website’ which will allow our members to interact for best practices, seek thoughts from their peers, utilize a member library of documents, webinars etc. and much more…and 24/7 so that it is tailored to their ‘best time’ to use. We also will be hosting webinars that will be available the day of, but for members, many will be recorded and held in the ‘member library’ for future review if they should miss the first viewing. Staying on this theme of ‘Utilizing Technology,’ we will be hosting a monthly one-hour chat type of opportunity with our members. We will also continue with our legislative efforts and will be hosting meetings in the spring of 2013 but to respect the importance of people’s time, travel and expenses, we are maximizing the networking opportunities both physically and virtually.”
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tomotive Service and Repair Week (ASRW), which took place in New Orleans, LA, in October. During the week, ASRW conducted more than 80 educational sessions, along with NACE forums and the Assembly, a town hall type discussion for repairers only. For those attending ASRW in 2012 and taking part in the invaluable educational activities, it’s likely you heard from ASA’s collision team in various sessions, panels and forums. ASA’s communications pieces specific to all the other above mentioned actives of the ASA collision division for 2012 are found at www.asashop.org. Click on “News & Events,” then Latest News – 2012 Press Releases. The key driver in ASA collision team actions continues to be centered on the engagement of the ASA collision leadership and the ASA membership at large. To be a part of the conversation, continue to contact ASA’s collision division manger, Denise Caspersen by email; denisec@asashop.org or phone at (817)-514-2906. Continued from Page 28
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airbags,” Ledoux explained. “Consumers need to know the facts so they can insist that only OE airbags are used. It’s a life and death situation, so we’re very concerned and want to be proactive in providing valuable information to the public about this controversy.” AirbagAware.Honda.com launched in mid-December and is full of useful data, including safety advisories provided by the National Highway Traffic Safety Association (NHTSA), useful news about airbags, videos, and documentation that explains the difference between a Honda and a non-Honda airbag. One of the featured videos appearing on both websites is called “Use Your Melon,” a 30-second commercial that shows exactly what happens to a watermelon when an airbag opens too late. “It’s quite a visual and people have been talking about it since we produced it,” Ledoux said. “It illustrates how crucial airbags are and how things can go wrong if they’re not genuine.”
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 39