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Detroit Body Shop Raided in Suspected Theft and Fraud Ring, Numerous Cars Impounded A multi-jurisdictional task force conducted raids in Wayne and Oakland counties on the morning of Feb. 28 on suspicion of a theft and fraud ring involving automobiles. The investigation reportedly stemmed from a stolen automobile
that lead investigators to raid the Somerset Collision Shop on John R. near Eightmile, according to reports in the Detroit News. “The raids were conducted with auto theft teams from Highland Park and Hazel Park in conjunction with the Action Auto Theft squad and a number of other assisting agencies,” said the Hamtramck Police Department in a press release. “The raids were successful with multiple arrests and the recovery of stolen property. Somerset Collision in Detroit was the primar focus of the See Detroit Shop Raided, Page 8
Minnesota Bill Proposes More Comprehensive Restrictions on Insurer Vendor Requirements their representatives from requiring that a vehicle be presented “… at a particular motor vehicle repair shop designated by the insurer” in addition to the existing ban against drive-in claim centers. According to Judell Anderson, executive director of AASP-MN, whose organization supports the bill, this amend seeks to expand the existing prohibition on requiring vehicle owners present their cars at a drive-in because insurers have adapted to the existing prohibition by requiring vehicle owners to take their vehicles to a specific repair facility for inspection. See Minnesota HF 2690, Page 8
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A proposed bill in Minnesota, House File 2690 (HF 2690), seeks to amend Minnesota Statutes 2012, section 72B.092, subdivision 1 to include more stringent prohibitions against insurance company requirements placed upon repair facilities. Introduced by Representatives Joe Atkins, Greg Davids, Joe Hoppe, Debra Hilstrom, Jim Davnie and Melissa Hortman on Monday, March 3, HF 2690 changes two subsections of the existing law, including provisions the repair industry supported and were added into the law in 2007. The first amends adds a prohibition against insurance companies and
VOL. 3 ISSUE 7 APRIL 2014
Michigan’s HB 5339 Seeks to Address Steering, Non-OEM Parts, and Parts Procurement Michigan House Bill 5339, introduced on February 19, seeks to amend the Michigan Insurance Code of 1956 to restrict insurance companies from numerous actions that irk collision repair facility operators. The broadly worded bill has not yet been scheduled for hearings. The bill, as sponsored by Representatives Dale W. Zorn ,Greg MacMaster, Anthony G. Forlini, Peter Pettalia, Michael D. McCready, would ban insurance companies from compelling the use of specific collision repair or claim centers, restrict non-OEM parts usage, and prohibit an insurer from specifying specific vendors for parts or other materials. Specifically the bill would prohibit insurance personnel from the following:
● Compel or coerce the insured or claimant to choose a particular repair facility, claim center, or other similar facility regardless of whether the repair facility, claim center, or other similar facility is under the insurer's direct control. This subdivision would not prohibit an insurer from requesting the insured or claimant to take the a particular repair facility, claim center, or other similar facility after informing the insured or claimant that the insured or claimant is not under an obligation to do so. ● Must not fail to inform the insured or claimant that the insured or claimant has the freedom to use a repair facility of the insured's or claimant's choosing, or fail to inform See Michigan HB 5339, Page 9
Maryland Parts Bill Receives Unfavorable Vote in Cmte In a vote in the MD House Economic Matters committee on March 14, Maryland House Bill 574 (HB574), sponsored by Delegate John A. Olszewski, Jr., received an unfavorable report out of the committee. Introduced in January, HB574 and its companion, Senate Bill 487, sponsored by Senator John C. Astle, sought to prohibit insurance company personnel from specifying a specific vendor for parts or materials or part procurement process, and would have required OEM crash parts for a period of three years after the date of manufacture of a vehicle. In a 16 to 7 vote on March 14, the MD House Economic Matters committee voted for an unfavorable report on HB574. In Maryland, committees report to the legislature on the bills that are assigned to them as favorable, with or without amendment, unfavorable, or without recommendation. Having been voted out of committee, the bill now returns to the floor of its
chamber of origin accompanied by a report of committee action for consideration. No action has yet been taken on SB487. The bills provided common ground for insurers and non-OEM parts suppliers in opposition. Several insurance and aftermarket parts groups testified in opposition to the bill. Repair facility operators that support the legislation believe it protects consumers and preserves a repair facilities ability to manage its operations. The Washington Metropolitan Auto Body Association, WMABA, supports the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. The Automotive Body Parts Association (ABPA) publicly denounced the legislation prohibiting insurers from requiring the use of alternative collision parts on vehicles less than See Maryland Parts Bill, Page 16
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2 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Attanasio - Louisiana Shop Owner Uses Twitter to Survey Other Shops in Real Time . . . . . . . . . . . . . . . . . . . . . . 37 Franklin - A Missing Hat In Most Shops . . 28 Sisk - LaCIA Meets to Talk Progress and Future Plans . . . . . . . . . . . . . . . . . 33 Sisk - ASA-AZ Meets to Discuss Survival Skills for Service Advisors . . . . . . . . . . 26 Yoswick - 20 Years Ago In The Collision Repair Industry (April 1994). . . . . . . . . 36 Yoswick - Helpful Documents, Tools, Information Only a Click Away For Shops . . . . . . . . . . . . . . . . . . . . . . 24
NATIONAL ‘Kiss Bandits’ Vandalize Cars at Body Shop in Saddle Brook, NJ, Doing $40K in Damage. . . . . . . . . . . . . . . . . . . . . . . . 38 AAAS Busy Strengthening Industry in 2014 . 23 ABRA Acquires 13 Repair Centers in Charlotte, NC . . . . . . . . . . . . . . . . . . . . 35 AkzoNobel Celebrates Milestone during Conference . . . . . . . . . . . . . . . . . . . . . 10 Car-O-Liner Offers New Ford 2015 F-150 Equipment . . . . . . . . . . . . . . . . . 18 CARSTAR to Address Industry Trends at Colorado Events. . . . . . . . . . . . . . . . 38 CIF is Now the Charitable Conscience of the Industry . . . . . . . . . . . . . . . . . . . 30 Education Foundation Doubled Down on Its Future in 2013 . . . . . . . . . . . . . . 34 Ford Recommends LORD Fusor in F-150 Repairs . . . . . . . . . . . . . . . . . . . 17 Ford Sued Over Patented Turn Signal Technology . . . . . . . . . . . . . . . . . . . . . 22 Freak Tire Accident Kills Gainesville Body Shop Employee, Injures Shop Owner, Driver Also Shop Worker . . . . . 35 GM’s Handling of Fatal Switch Recall Being Investigated . . . . . . . . . . . . . . . . 10 I-CAR Has Implemented a New Initiative to Close OEM Informational Gaps. . . . . 32 Is My Gas Can Safe? . . . . . . . . . . . . . . . . 27 Maryland Parts Bill Receives Unfavorable Vote in Cmte . . . . . . . . . . . . . . . . . . . . . 1 NC Shop Wins Nationwide Short-Pay Arbitration Case . . . . . . . . . . . . . . . . . . 31 North Texas Student Says Two Mobile Dent Repair Businesses Took Him for a Ride . . 22 NY-based MSO Collision Experts Drops State Farm’s Select Service Due to Parts Procurement Requirement. . . . . . 12 PPG Announces Distributor Training Schedule . . . . . . . . . . . . . . . . . . . . . . . 18 Property and Casualty Insurers Hit With Antitrust Suit by Florida Auto Body Shops . 26 Record $9.4M Donated to Collision School Programs . . . . . . . . . . . . . . . . . 18 SEMA Data Co-op Grows 300% . . . . . . . . 18 Sustainability Challenge Grant Winners Announced . . . . . . . . . . . . . . . . . . . . . 18 Testimony on Maryland Parts Bill Involves Representatives from WMABA, PCI, LKQ, CAPA and Shops, Some Repairers ‘Cannot Afford to Refuse’ PartsTrader . . 29 UT Companies Gift Car to Single Mom with Autistic Son . . . . . . . . . . . . . . . . . 13 Utah Offers Grants to Body Shops to Convert to Waterborne, Not Many Applicants So Far. . . . . . . . . . . . . . . . . 14 Zurich Insurance Cuts Jobs to Boost Profitabiltiy . . . . . . . . . . . . . . . . . . . . . 28
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www.facebook.com/autobodynews Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Great Lakes
REGIONAL $50,000 Grant Provides Major Boost to IL’s Waubonsee CC Auto Repair Program . . . 6 Andy’s Auto Body’s New Location in Wood River, IL, Looks Like a New Car Dealership . . . . . . . . . . . . . . . . . . . . 4 Auto Industry Champion, John Dingell (D), to Retire. . . . . . . . . . . . . . . . . . . . . . . . 36 Car Catches Fire Outside Body Shop in Union, WI. . . . . . . . . . . . . . . . . . . . . . 8 Carl Richard Roberts, Former OH Shop Owner, Dies at 67 . . . . . . . . . . . . . . . . . 4 Chicago’s Accurate Auto Body Gets I-CAR Gold . . . . . . . . . . . . . . . . . . . . . . 4 Detroit Body Shop Raided in Suspected Theft and Fraud Ring, Numerous Cars Impounded . . . . . . . . . . . . . . . . . . 1 Disabled Math Teacher Found Body Shop to Make Wheelchair Accessible Golf Carts . 13 Fire Destroys Body Shop in Mill Township, OH. 4 IL Shops Also See Parts Delays Due to Storm Repairs . . . . . . . . . . . . . . . . . . . . 4 Indiana 8-10 Online Training Class Annual Deadline is May 1 . . . . . . . . . . . . . . . . . 9 Michigan’s HB 5339 Seeks to Address Steering, Non-OEM Parts, and Parts Procurement. . . . . . . . . . . . . . . . . 1 Midwest Auto Body Show Featured F-150 Presentation . . . . . . . . . . . . . . . . 6 Minnesota Bill Proposes More Comprehensive Restrictions on Insurer Vendor Requirements . . . . . . . . 1 N. Ohio Shops See Parts Delays Due to Demand . . . . . . . . . . . . . . . . . . . . . . 4 OH’s Penta Career Center Students Go to SkillsUSA. . . . . . . . . . . . . . . . . . . . . 12 Ohio Repairer Three-C Body Shops Pursues Multiple Lawsuits Against State Farm for Short-Pays . . . . . . . . . . . . . . . . . . . 10 Sisk - WACTAL Hosts 2014 Conference and Trade Show. . . . . . . . . . . . . . . . . . 18 Spanesi Americas Donates a $25K Multibench 12 to WCC . . . . . . . . . . . . . . 6
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Contents
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. ©2014 Adamantine Media LLC.
Autobody News
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Adhesive Templates . . . . . . . . . . . . . 9
Audi Wholesale Parts Dealers . . . . 32
BMW Wholesale Parts Dealers . . . . 28 CCC Information Services . . . . . . . 11 Certified Automotive Parts
Association (CAPA). . . . . . . . . . . 19
Classifieds. . . . . . . . . . . . . . . . . . . . 38
Jake Sweeney BMW . . . . . . . . . . . . . 8
Jake Sweeney Chevrolet . . . . . . . . . 8 Laurel Auto Group of Westmont . . . 39
Lexus Wholesale Parts Dealers . . . 34 Loaner & Rental Insurance
by Northland . . . . . . . . . . . . . . . . 14
Malco. . . . . . . . . . . . . . . . . . . . . . . . 15
Creative Metal Manufacturing. . . . . 10
Mazda Wholesale Parts Dealers . . . 37
e-clips . . . . . . . . . . . . . . . . . . . . . . . . 7
Morrison’s Auto Parts . . . . . . . . . . . . 4
Erhard BMW of Bloomfield Hills . . . 16
Subaru Wholesale Parts Dealers . . 31
Ganley Auto Group, Inc . . . . . . . . . 26
Toyota Wholesale Parts Dealers . . . 35
DJS Fabrications, Inc . . . . . . . . . . . 40
Equalizer Industries, Inc . . . . . . . . . 22 Erhard BMW of Farmington Hills . . 16
GM Wholesale Parts Dealers . . . . . 29 Graham Auto Mall . . . . . . . . . . . . . . 23
Griffin Automotive Group . . . . . . . . 17 Honda-Acura Wholesale Parts
Dealers. . . . . . . . . . . . . . . . . . 20-21
Hyundai Wholesale Parts Dealers . 30
MOPAR Wholesale Parts Dealers . . 25
Reliable Automotive Equipment, Inc. 12
Toyota of Grand Rapids . . . . . . . . . 27 U.S. Body Products . . . . . . . . . . . . . 6
Valspar Automotive . . . . . . . . . . . . . . 5 Volkswagen Wholesale Parts
Dealers . . . . . . . . . . . . . . . . . . . . 33
West Bend Mutual Insurance . . . . . 13 Zeigler Chrysler-Dodge-Jeep . . . . . . 2
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 3
N. Ohio Shops See Parts Delays Due to Demand
IL Shops Also See Parts Delays Due to Storm Repairs
Auto body shops in the Cleveland area of Northeast Ohio are said to be facing overwhelming demands this winter. A Touch of Class Auto Body Inc. off Brookpark Road has a five week wait list for new customers, and several other body shops around the Cleveland area are experiencing the same overwhelming demand. “Any shop that’s doing this right now… I know no body likes to hear this but any shop that’s doing any type of quality work we’re all so far behind it isn’t funny,” said Kevin Harrison, the owner of A Touch of Class. “It’s been so busy we actually put on a second shift of employees due to the fact that the overload has been just five weeks out all the time.” Harrison said another factor is the demand for parts. “They’re having trouble getting parts from Columbus to Cleveland, Pittsburgh to Cleveland, so that delays us even more,” he explained. “So sometimes you tell a customer a car will be done in two or three days but the next thing you know it’s four or five days because we’re still waiting for parts.”
Auto shops’ businesses in IL are booming due to the large number of cars damaged in storm-related accidents. Zara’s Auto Body Shop in Springfield, IL, said they have had an average of 100 cars in their lot to fix since the region started getting hit with winter storms in January. That’s good for business. But the shops are seeing a shortage of new OEM parts from manufacturers. “If the new parts aren’t available, not only are we in the same position lacking parts, but so is every other body shop in the country trying to find those same parts, so they aren’t even available a lot of times in the salvage yards anymore,” said Kim Woolard, a Customer Service Representative at Zara’s. Todd Liston says he’s fixing double the usual number of cars this year at Auto Body Specialists in Rockford, IL. The surge in business started last year but has accelerated from the January storms. State Farm Insurance reported a 20% jump in their car insurance claims from December 2012 to the same time last year.
Fire Destroys Body Shop in Mill Township, OH
Carl Richard Roberts, Former OH Shop Owner, Dies at 67
A fire of undetermined origin, reported at 3:50 a.m. Feb. 23, destroyed Standiford’s Auto Body Shop at 9938 Feed Spring Hill Road SE in Mill Township, OH. Capt. Rick Kinsey of the Uhrichsville Fire Department said the 30- by 90-foot metal structure and its contents are being considered a total loss. Included in the fire were a tractor and a 1934 Lincoln automobile. Kinsey said the owner, Lawrence Standiford, who lives in a house about 20 feet from the body shop, reported the fire. No one was in the body shop at the time and no one was hurt, but siding on Standiford’s house was damaged by the fire. “The building was fully involved upon our arrival,” Kinsey said. He added that the rear section of roof already had started to collapse when firefighters arrived. Thirty-four firefighters from seven area fire departments worked for about four hours to extinguish the blaze. Kinsey said a lot of the metal construction had collapsed, and firefighters had to take metal apart to get to the fire. Kinsey said an investigator from the Ohio Fire Marshal’s Office will assist in an investigation.
Carl Richard Roberts passed away March 7 after an extended illness. Carl briefly owned a gas station before going into auto body repair at Leeson’s Body Shop, in Youngstown, OH. He began working independently in 1960, opening Robert’s Auto body at a family building on Heck Road. He opened Peace Valley Auto in 1975 and later moved his work across the street opening Robert’s Auto body in 1982 until his retirement in 2002. He is survived by three childern and six grandchildren.
Chicago’s Accurate Auto Body Gets I-CAR Gold
Accurate Auto Body CARSTAR has been certified I-CAR Gold. Technicians are certified in structural and non-structural repairs, refinishing, estimating and shop operations.“We are committed to having the latest technology, innovative repair processes and best trained technicians to provide the best auto body repair available,” said owner Joe Maslanka. “We applaud our team members for their hard work in earning this recognition. Accurate Auto Body has been in business since 1975.
4 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
Andy’s Auto Body’s New Location in Wood River, IL, Looks Like a New Car Dealership Andy’s Auto Body’s newest location is going to be like a “new car dealership without new cars,” as manager Chuck Tucker told writer Nathan Grimm. The shop is located at 1533 E. Edwardsville Road in Wood River, IL, will have all the trimmings of a new car dealership, including a full auto body shop and a full mechanical department. The location will also feature between 30 and 50 used cars for sale, according to owner Mark Anderson. Anderson said the 13,000-square-foot building, just a block from three existing new car dealerships with another on the way, was prime real estate for his business. “There’s a lot of dealerships right there, which will help us develop customers,” Anderson said, noting, “Four dealerships, but none have a body shop.” Customers of the body shop’s Alton Square Mall location will notice a similar, if not new and improved, showroom, Tucker said. The waiting area will still have the leather chairs and 70-inch television that customers are accustomed to, but the Wood River location will also have WiFi technology, a gourmet coffee bar, fireplace and a computer for
guests who may need to get work done while they’re waiting. Although it’s a new location, Tucker said the staff will be seasoned veterans in the automotive field, some with more than 30 years of experience. It’s an exciting new venture for the body shop, but it’s also a nice new start for the building, which has sat empty for years. Wood River mayor Fred Ufert said the building hasn’t been occupied for around eight years, since Federico ChryslerDodge-Jeep moved to its new location. Ufert said the city is “glad to see that building used.” “It’s a good deal for them and a good deal for the city,” Ufert said. “We’re thrilled that they’re here.” It will be a quick turnaround for the building, too, as Tucker said they hope to open the doors on March 14. The business will have a grand opening March 22 and McKay Auto Parts will have a barbecue at both the Wood River and Alton Square Mall locations. Despite all the newness, Tucker said one thing won’t change —Andy’s Auto Body’s commitment to running a “reputable, locally owned business.”
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 5
$50,000 Grant Provides Major Boost to IL’s Waubonsee CC Auto Repair Program Andy McDonald described a tradition of excellence associated with Waubonsee Community College’s auto repair program at 47 Waubonsee Dr, Sugar Grove, IL, to the Kane County Chronicle. McDonald, assistant professor of auto body repair at the school, talked about strong finishes at state and national competitions and said high-caliber students find work soon after school. Since 2008, Waubonsee students have earned four 1st place awards at SkillsUSA, seven 2nd place awards, and two 3rd place awards in state competitions. Several students have advanced to the National SkillsUSA completion in Kansas City, Missouri, earning 2nd, 4th and 8th place awards. A lot of that was accomplished with older training technology, but now the school has been endowed with a $50,000 ultimate collision education makeover grant. Waubonsee was among four schools nationally to receive the award. As a result, the school will add a new paint room, a new paint booth and a new frame rack, which was donated by Spanesi Body Shop Technology of Naperville.
Midwest Auto Body Show Featured F-150 Presentation
The Iowa Collision Repair Association (ICRA) held the fourth annual Midwest Auto Body Show on March 20, 2014, in Altoona, IA. The 2014 theme was “The Future Is Now” and was free to Midwest collision industry members. Paul Massie, Ford Motor Company's powertrain and collision product marketing manager, offered a video presentation webinar about the high-strength, military-grade aluminum alloy included in the 2015 Ford F-150 pickup and conducted a Q&A session. Iowa senator, Brad Zaun, and ICRA lobbyist, Scott Weiser, brought the collision industry up to date on 2014 legislative activities. Pete Tagliapietra of NuGen IT moderated an “Insurer Mandate– Parts Procurement” panel discussion. A presentation titled, “Information Technology and the Future of Collision Repair,” was given during lunch. After lunch, free “Training in the Round” education sessions were held in the trade show floor, which featured more than 65 vendor display booths.
A North Aurora-based Sherwin Williams store will donate paint for the interior of the program’s building. The equipment is worth tens of thousands of dollars, and McDonald said it will provide a boost, allowing students to work with state-of-the-art machinery that they would encounter when they are employed. “It’s more real world,” McDonald said. For instance, with the older technology, there were 1980s-style spray booths, and paint might have to dry overnight. But with newer technology, McDonald said, cars can be “baked” for 30 minutes. He said it also helps mistakes get corrected more quickly. He said the old equipment wasn’t bad, but “it was just old equipment. Now, it’s going to be better.” Sue Murray, the assistant vice president of career and technical education at Waubonsee, said it was the second year the school had applied for the grant. She said it’s an opportunity to put a wish list together. She said ICAR seeks the donations. She said the donations will improve an already-successful and popular program. She said having such a program is a positive for Waubonsee.
Spanesi Americas Donates a $25K Multibench 12 to WCC
Spanesi Americas has donated a Multibench 12, valued at $25,000, to Waubonsee Community College of Sugar Grove, IL, the Collision Repair Education Foundation’s 2013 Ultimate Collision Education Makeover-winning college school. In addition to the company’s in-kind equipment donation to the school, Spanesi Americas Managing Director Timothy Morgan has also made a $1,000 personal donation to the organization. “The Spanesi family has always been dedicated to education, as I am myself. And knowing that over 80 percent of the repairs performed today in a collision facility don’t need the traditional ‘frame rack,’ we felt it necessary to donate to the Education Foundation what shops are making ‘real world’ repairs on now and in the future,” said Morgan. “Helping give students and a school equipment that meets today's and tomorrow’s needs through the Foundation’s Makeover is something I am no stranger to, participating through past companies I managed and continuing to support personally.”
6 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
“It is always full,” she said, adding that there are few such programs in the state. She said because such programs need equipment that can be pricey and require plenty of space, “schools don’t go into it lightly.” At Waubonsee, she said, it’s a big help to have a program experience such accolades. “It has a very good reputation,” she said. Darrel DeGreves, the store manager at Sherwin Williams in North Aurora, said his store’s donations will be between 20 and 40 gallons of “Moonlight White” paint for the interior of the building. “It’s really needed,” he said. “The building was originally a horse barn, and they’ve converted it into an auto center.” He said he is happy to help. He said he is familiar with the program and is impressed by those who are in it. “The kids are good kids,” he said. Waubonsee’s auto body repair program is approved by the Illinois Community College Board and certified by the National Automotive Technicians Education Foundation (NATEF). It is taught in accordance with National Institute for Automotive Service Excellence (ASE) standards and follows I-CAR guidelines.
Waubonsee’s auto body repair program gives students real hands-on experience making both structural and non-structural repairs on a variety of vehicles. Students develop skills in the areas of frame repair and straightening, sheet metal repair, welding, plastic component repair, refinishing, and both solvent-based and waterborne painting. Students repair an average of 78 cars each year. The auto body repair program is headquartered in the Auto Body Building, an 18,000 square foot facility on the south side of Waubonsee’s Sugar Grove Campus. This facility houses three spray booths, two prep stations, a modern classroom, and a computer lab. Waubonsee’s facilities and program are compliant with the National Emission Standards for Hazardous Air Pollutants and have been certified so by the Illinois Environment Protection Agency (EPA). Students earn personal EPA certification which is a requirement for those working in the field. Students have trained on a mechanical frame measurement system and two computerized systems. Other equipment includes three frame machines, a state-of-the-art waterborne paint system, and six resistance and MIG welders.
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Continued from Cover
Detroit Shop Raided
raids.” This isn’t the first time Somerset has been raided by authorities, according to the Detroit News writer, Tom Greenwood. In March 2007 the office of the Michigan Attorney General announced the arrests of three individuals in connection with a Detroit based organized crime operation that allegedly stole millions of dollars in insurance fraud. The arrests came after authorities raided three Detroit area body shops that were all owned by the same fam-
ily. Among the body shops raided in 2007 were the Somerset Auto Body Shop, 20461 John R in Detroit. Other businesses owned by the family were: Bojax Auto Collision, Dynamic Collision, the Collision Connection, Ultimate Collision and Foreign and Domestic Collision. According to the AG in 2007 the businesses were owned/operated/managed by an Orchard Lake man as well as his mother and brother, both of whom lived in West Bloomfield. The defendents all received probation. The AG office was unable to confirm or deny that the same family still owned the Somerset Collision Shop or were involved in the recent raid.
Car Catches Fire Outside Body Shop in Union, WI
A car was on fire outside of Mark’s Auto Body on Alpine Road in the Town of Union, where it was being stored for the winter. A section of Alpine Rd. was closed off to traffic as a result. Township Fire crews say they’re not sure why the car started on fire, but say it has a fuel leak, and keeps reigniting. Foul play is not suspected. There is minimal damage to the
building, but the car has been deemed a total loss. The Township Fire Department along with the Eau Claire Sheriff’s Department responded. The call came in just before 8:45 PM Friday. Mark’s Auto Body plans to be open during normal business hours.
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company representative shall not: ● specify the use of a particular vendor for the procurement of parts or other materials necessary for the sat“We’ve heard from our members that isfactory repair of the vehicle. This insurance companies now tell people clause does not require the insurer to to go to a specific repair facility to get pay more than a reasonable market their vehicle inspected,” said Anderprice for parts of like kind and quality son. “In many cases the insurer will in adjusting a claim actually have staff on site at the body In October 2013, AASP-MN shop one or two days a week, essen- filed a formal complaint with the Mintially running a drive in claim center nesota Department of Commerce rein the repair facility. This section is re- questing administrative and/or legal ally about combating insurance com- action to prevent State Farm from repany steering.” quiring that collision repair shops that The second amendment adds a participate in the insurer's direct repair section to the existing law that ex- program use the PartsTrader parts propands upon the types of requirements curement system based upon the exthat insurance companies may not isting section of the law. place upon repair facilities. The added According to Anderson, the adsection states that insurance company dition of the new section should representatives shall not: help address numerous concerns ● specify or require any motor vehi- AASP-MN members have with incle repair shop to utilize specific ven- creasing insurance company redors, distributors, manufacturers, quirements for specific vendors and suppliers, business platforms, or in- business processes beyond the external processes in order to carry out isting law that prohibits that activity Giverepairs us your opinion affecting the industry. vehicle for an insuredon or matters for parts and materials. claimant. This expands upon another subsection that was added into the existpublisher@autobodynews.com ing law in 2007 that says insurance Continued from Cover
Minnesota HF 2690
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Michigan HB 5339
the insured or claimant of the insurer's ownership interest in, or agreement with, a repair facility, claim center, or other similar facility ● Communicate the need to delay the commencement of repair to allow the insurer to inspect the automobile for more than 1 full business day from when the insured or claimant presented the claim or automobile for loss adjustment or inspection. ● Dispute coverage of the loss without performing a physical inspection of the automobile. ● Specify a non-original equipment manufacturer aftermarket crash part to replace a structural component of an automobile, including, but not limited to, a bumper reinforcement, radiator or core support, or any other part that affects the structural integrity or airbag timing of the automobile. ● Specify a non-original equipment manufacturer aftermarket crash part in the repair of the damaged automobile if the part is not certified by a national testing board to guarantee quality, fit, and crashability.
● Specify the use of a particular vendor to procure a part or other material necessary for the satisfactory repair of the automobile. This subdivision does not require an insurer to pay more than a reasonable market price for parts. ● Unilaterally or arbitrarily disregard a repair operation or cost identified by an estimating system that the insurer and repair facility have agreed to use in determining the cost of repair. ● Place a limit on the maximum cost of paint or other materials required to repair the damaged automobile. This subdivision does not require an insurer to pay more than a reasonable market price for paint and materials. ● Disregard a repair facility's posted labor rate without proof of the range of posted door rates available to the public in the market. The bill also would also provide an insured, claimant, repair facility owner, potential repair facility owner, or person aggrieved by this act the ability to bring a civil action against an insurer for a violation of this section. A plaintiff who prevails could receive Damages in the amount of 3 times the actual loss or $500.00,
whichever is greater as well as attorney fees and costs. Ray Fisher, executive director of the Automotive Service Association (ASA) of Michigan, said to a media source: “ASA Michigan did not author or introduce this bill but we are glad that Representative Zorn and the other co-authors, have taken a key role in trying to resolve some of the issues that have plagued our collision shops here in Michigan. I have passed this on to our leadership for their review and we are looking forward to working with Representative Zorn as this moves forward. Obviously he is trying to cure many of the burdens that our collision repairers have faced for quite some time.” Fisher added, “In conversation, we understand that currently no hearings have been scheduled as yet but ASA Michigan will encourage these issues to be discussed in the committee as soon as possible.”
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Indiana 8-10 Online Training Class Annual Deadline is May 1
According to the Indiana 326 IAC 810 Regulation, auto body workers are required to complete annual training each year between January 1 and May 1, and within 90 days for new employees. The Indiana Autobody Association (IABA) offers IABA members two free, online training programs that meet the requirements. Non-IABA members can take the training for $99.95 for the shop version and $34.95 for the individual version. Visit www.iaba.info to learn more.
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 9
Ohio Repairer Three-C Body Shops Pursues Multiple Lawsuits Against State Farm for Short-Pays
Three-C Body Shops is seeking recovery of short-pays, fees and court costs from State Farm Insurance for the insurer’s repeated underpayments for services generally rendered and charged to their customers when their vehicles have been deemed to be total losses. Currently there are approximately 89 active lawsuits between Three-C’s and State Farm which began in November, 2012. Generally the suits stem from total-loss billings whereas ThreeC Body Shop is seeking an estimated $296,807.93, of which State Farm has agreed to pay only $31,565.03, leaving an unpaid and contested amount to date of $265,242.90. Similar lawsuits will likely be filed. Bob Juniper, second generation owner and President of the 58 yearold family owned company is no stranger to controversy or to taking on the challenges the collision industry presents. He was one of the first shop owners in the nation to ‘put his money where his mouth is’ by his hard-charging and often controversial local television and radio consumer awareness ads and commercials regarding Direct Repair Programs. Bob Juniper said, “When a vehicle becomes a total loss we cease nor-
mal repair related activities and change to another mode of operation, and as such, charges for such activities are assessed that may or may not be consistent with a repair. Such charges may be processes including but not limited to clean-up from fluid leaks, relocating a disabled vehicle, storage, protection, research, documentation, administrative activities, parts handling and others. We have closely studied the high cost of handling and processing total loss vehicles. In the Columbus area insurers understand and pay for such charges, all but one that is. State Farm continues to be ‘the odd-man-out’ in settling such claims fairly. We must be paid for our efforts and liabilities associated with the handling involved in total losses as such activities are not "the cost of doing business”. We have decided to let the courts decide who is right and who is wrong. Our efforts to work things out with State Farm directly were unsuccessful. I believe the facts will show that the money is owed. We look forward to sharing the results of these cases with the collision repair industry.” Todd A. Fichtenberg, one of Three-C’s attorneys of the law firm
Skinner & Associates, LLC of Columbus, Ohio stated: “Ohio lacks the statutory provisions that have made those like Ray Gunder in Florida so successful in the recovery of fees and costs. Without that statutory framework, we are using Ohio’s existing laws and good faith arguments for the extension of those laws in an effort to recover Three-C’s fees and costs”. Three-C Body shops was founded in 1956 and currently has six (6) locations including two satellite locations (inspection-estimating, drop-off and delivery) which help feed their four (4) repair production locations in and around the Columbus market area. The company does $10 million-plus in annual sales. More information on Three-C Body Shop may be found at their website at www.threecbodyshop.com or one can reach Bob Juniper at 614403-1408.
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AkzoNobel Celebrates Milestone during Conference
AkzoNobel Automotive and Aerospace Coatings North America (A&AC) marked the third decade of offering business services in the North American market through the Sikkens Acoat selected program during the Winter North American Performance Group meeting February 12–14, 2014, at the Hilton Hawaiian Village in Honolulu, HI. The three-day program was designed to enhance the performance of individuals and businesses represented through a mutually-beneficial exchange of information, success stories, and consultation. “As one of the world’s largest paint and coatings companies, we know our customers find value in these engagements,” commented Barry Rinehart, North American commercial services leader for AkzoNobel A&AC. “As always, the numbers tell the story. As we enter our third decade of providing cutting edge business development programs, many of the shops that were with us in the beginning remain with us today. We wouldn’t have that kind of loyalty if there wasn’t something of value being delivered and received.”
GM’s Handling of Fatal Switch Recall Being Investigated
The U.S. Justice Department has started a preliminary investigation into how General Motors (GM) handled the recall of 1.6 million vehicles with faulty ignition switches linked to at least 13 deaths. The inquiry is focusing on whether GM might have violated criminal or civil laws by failing to notify regulators in a timely fashion about the switch failures, said a person familiar with the probe who asked not to be named and isn’t authorized to discuss investigations. Lawyers in the U.S. Attorney’s office in the southern district of New York are leading the investigation. The inquiry comes as House and Senate committees and the National Highway Traffic Safety Administration (NHTSA) are also investigating GM’s actions leading up to the recall. The initial recall on February 13, 2014, covered 778,562 Chevrolet Cobalts and Pontiac G5s. It was widened less than two weeks later to more than 800,000 additional vehicles. Those include 2003–2007 Saturn Ions, 2006–2007 Chevrolet HHRs, 2006–2007 Pontiac Solstices, and 2006–2007 Saturn Skys. Other models affected are the 2005–2006 Pontiac Pursuit sold in Canada and the
2007 Opel GT sold in Europe. NHTSA, whose decision not to investigate the switch failures years ago is also under scrutiny by Congress, is focusing on what steps the automaker took to investigate and rectify engineering concerns and consumer complaints dating back to at least 2004. GM has until April 3, 2014, to answer questions posed by the regulator in a 27-page order issued in early March 2014. GM has said that heavy key rings or jarring can cause the ignition switches to slip out of position, cutting off power and deactivating air bags. The automaker has linked the defect to at least 23 crashes, including 13 deaths. NHTSA could fine GM as much as US$35 million, which would be the most ever by the U.S. government, if it finds the automaker didn’t pursue a recall when it knew the cars were defective. GM’s stock has slid 9.2 percent in 2014 through March 10, 2014, and the recall is emerging as the first major test for new CEO, Mary Barra, who was promoted two weeks before the company decided to implement the recall on January 31, 2014.
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NY-based MSO Collision Experts Drops State Farm’s Select Service Due to Parts Procurement Requirement Collision Experts, a New York-based my business model. We do not want MSO with two locations, said it will no to sever the relationships we’ve built longer be included in State Farm’s Sewith our vendors over the years.” lect Service Program because the colliState Farm has been rolling out sion repair shop wants to have the right the changes incrementally and just reto decide where to purchase its parts. cently implemented the mandate in State Farm’s customers can still choose New York. Collision Experts is the to have their vehicles repaired at Collionly local body shop to publicly opt sion Experts’ shops in Schenectady or out of the program as a result of the Clifton Park, but the national office changes. may no longer refer customers to Col“Although we value the business lision Experts. that State Farm has referred to us over Collision Experts CEO and the years, the new Select Service Proowner Maryann Bowman said it was gram does not fit our business model,” more important for Collision Experts said Bowman. “This is strictly a busito have the freedom to buy parts from ness decision based on changes to the trusted vendors that the company has Select Service Program that would rebuilt relationships with over the years www.autobodynews.com quire us to change parts vendors. We rather than be included in State Farm’s haveCHECK great relationships IT OUT! with our parts Select Service Program, which re- vendors, and we feel that this helps us quires collision repair shops to purprovide an exceptional product. If at chase parts from PartsTrader. any time State Farm decides to change Richard Bowman said “Many or adjust their Select Service Program, of my parts vendors signed up with we will be more than happy to revisit PartsTrader so we couldn’t use them.” this in the future.” To advertise “Sometimes you have to part However, State Farm customers call Advertising Sales at: ways in a partnership,” said Maryann are still free to choose Collision Ex800-699-8251 Bowman. “In this case, I believe that perts for their body repairs. the national changes don’t work for “Wee-mail: still welcome all State Farm
customers and look forward to conOn Feb. 14, 13 Penta Career Center tinuing to work with local State Farm students at 9301 Buck Rd, Perrysburg, OH, earned top awards at the agents to provide the best repair for SkillsUSA Regional Competition in our mutual clients,” said Bowman. Tiffin. Collision Experts’ parting with All award winners will advance State Farm is amicable, Bowman said. to the Ohio SkillsUSA ChampiHowever, some body shops have filed onships in Columbus on April 15 lawsuits or traveled across the counand 16, 2014. First Place (gold medal) winners included: Charles try to heighten awareness of State McCaw (Swanton), Advanced ManFarm’s changes. ufacturing Technologies, for the Pre“We will continue to have a good cision Machining contest and Jared working relationship with State Coker (Genoa), Welding, for the Farm,” said Bowman. “It’s disapWelding contest. pointing that they may refer cusSeven students earned second tomersus to different shops despite our Give your opinion on matters affecting themedals, industry. place and silver these students included: Derrick Perry (Perhigh rating because of a difference of rysburg), Automotive Collision opinion. We are willing to work toRepair, for the Automotive Refinishgether so we can give our customers ing contest; Colby Roseman (Otpublisher@autobodynews.com the best service at a time when they sego), Automotive Collision Repair, need it most.” for the Collision Repair contest. SkillsUSA is a national organization for high school students who are training for careers in trade, industrial, technical, and health-related occupations. The organization provides qualityToeducational advertise experiThe source for timely ences such leadership, teamwork, callasJoe Momber at: information that every citizenship, and character develop800-699-8251 ment skills. body shop needs!
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UT Companies Gift Car to Single Mom with Autistic Son
Elizabeth Melde walked in to Martins Collision Repair with no idea she would leave in a new set of wheels. The body shop, and several other local companies, teamed up to fix a car donated by Bear River Mutual Insurance that was legally totaled, bring it back to tip-top shape and donate it to a family in need. Melde and her two children fit the description perfectly. Her son, Jackson, 5, is autistic and suffers from severe hemophilia, and needs to get to the doctor quickly when in need. Her new sedan will help alleviate the pressure, and danger of not having her own vehicle. Melde’s old car was running on a leaking head gasket for six months before it finally gave out. “I’ve just been being optimistic,” Melde said. “Hoping I’ll get to my next destination.” She had pulled over more and more frequently to let the car cool down after it overheated, making her kids later and later to school. All those worries are gone now. “I’m just in shock,” she said. “This is a miracle right now. I’ve never heard of anything like this happening to anyone.” It happens to be in her favorite color, turquoise.
Disabled Math Teacher Found Body Shop to Make Wheelchair Accessible Golf Carts
In January 2000, Cory Trenkamp was in a car accident in which his neck was broken. After months of recovery, rehabilitation and confinement to a wheelchair, he entered college at Wright State University, where he earned his bachelor’s degree in math. He now teaches math online through the West Central Ohio Learning Academy, according to Anne Coburn-Griffis, writing in the Putnam Centinel. “My parents take my siblings and nephews for rides around our farm. Last summer, my 3-year-old nephew wanted me to ride with them,” said Trenkamp. “Since my wheelchair wouldn’t fit on it, I looked into some options.” Trenkamp located a body shop in Columbus that makes wheelchair-accessible golf carts but the cost for such a vehicle was high. “My dad asked a buddy of his if he knew anyone that could convert ours. He said he’d like to try.” That friend was Mark Ricker, the owner of Mark’s Auto Body just west of Ottoville on U.S. 224. He and a crew that consisted of Vernon Etzler and Tony Butler worked on the cart renovation in his rural shop over the recent cold winter months. On Friday, Trenkamp and his father Carl joined them all there for a final fitting. With the press of a button, Ricker lowered the passenger-side door
into a ramp. Trenkamp drove his wheelchair up the ramp and locked the chair in place, just as he does in his van, for a perfect fit. Under windy but blue skies, Trenkamp and Ricker took the finished
Carl Trenkamp, left, watches from the door of Mark’s Auto Body, Ottoville, as his son Cory and shop owner Mark Ricker takes the wheelchair-accessible golf cart for its first spin on Friday. (Putnam Sentinel/Anne Coburn-Griffis)
cart out for its inaugural spin. According to Ricker, Etzler was the brains behind much of the cart retrofit. “We cut it in two and put steel in to lengthen it out,” said Etzler. “There’s a lot to doing it, stretching everything out — throttle cables, brake lines, putting another seat in.” When asked how long it took to complete the project, Etzler bellylaughed. Ricker smiled and explained.
“It took a month and a half but the first one always takes longer.” Trenkamp himself located the mechanism that locks his wheelchair safely into the floor of the cart. Ricker explained that the original front seat is now located near the back of the cart. It sits just behind the area where Trenkamp can now drive in and park his wheelchair. A new seat was installed in front. A new steel roof had to be made and installed as well. “Just for Cory,” said Ricker. “Just for his safety.” Cincinnati Reds decals personalize the red vehicle, which is streetlegal with tail lights, turn signal and a distinctive horn. The cart will run up to 30 mph. It seats seven. “We can load up with the grandkids and go to Jennings Park,” said Trenkamp’s dad. Now his son Cory can join them, although he has other destinations in mind. “We don’t have sidewalks near our house, which there should be. Now I can get up to town if I want to. Take it to the game; maybe use it as a bull pen car. You get tired of riding around in minivans.” Ricker suggested mounting a drop-down television in the ceiling of the golf cart. “Maybe next year,” grinned Trenkamp.
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 13
Utah Offers Grants to Body Shops to Convert to Waterborne, Not Many Applicants So Far by Ed Attanasio
because all of the shops in Utah are going to have to switch to waterborne anyway,” Gallegos said. “We looked at Superior Paint Supply’s waterbased paint system (De Beer’s Waterbase 90 by Valspar) because we heard very good things about it. So, we applied for the grant and then we were pretty shocked when the state contacted us and told us we were the first shop to apply.
As the collision industry in Utah undergoes the transition to waterborne paint and everything that comes along with it, many are embracing the new products, techniques and equipment while others are not as enthusiastic. The state deadline for waterborne is looming (July 1, 2014) and as was the case in other states with similar mandates, some shops are waiting until the last moment. But some valuable news involving grants might just speed up the conversion process for body shops that were previously lagging. Any body shop that wants the state grant money will have to match the grant dollar for dollar, so it’s more of a hand up than a handout, Waterborne Paint Trainer Jeff Brasier (right) from Supeaccording to the state’s Divi- rior Paint Supply demonstrates waterborne application techniques for Corey Kaggie, a painter at ACS Precision sion of Air Quality and the Finish in Salt Lake City Utah Clean Air Partnership (UCAIR), a statewide alliance that “I read an article about the grants was created to make it easier for indi- in the paper and told my son,” Canviduals, businesses and communities dido Gallegos said. “We figured let’s to add equipment or processes that get some financial help if it’s being ofwill improve the cleanliness and fered. From what we’re hearing, body breathability of Utah’s air. shops aren’t applying for these funds, The Utah’s Department of Workwhich I find surprising. The money is force Services has earmarked $300,000 right there on the table. They want to now to help small businesses to imgive us money! How often does that prove the state’s air quality and an adhappen?” ditional $1 million after June 30, 2014 The local media flocked to ACS through the state Department of WorkPrecision recently to cover the shop’s force Services. The goal of the program conversion to waterborne while letting is to help small businesses reduce small businesses know that the grant emissions through improved equipmoney is available for them, as long as ment and the maximum amount is they’re willing to improve their air $15,000 and must be matched dollar quality. “We were surprised when the for dollar. In addition to auto body local newspapers and news stations shops, dry cleaners, restaurants, print called us and wanted to interview us shops and other small businesses with about the grant money,” Gallegos said. fewer than 100 employees can apply. “It’s a big deal for Utah and a big deal The first collision repairer to take for this industry and an eye opener for advantage of the grant money offered everybody.” According to the Division of Air by the state was ACS Precision Finish in Salt Lake City, a shop owned by Quality, if every paint tech in the state Candido Gallegos and his son An- used waterborne instead of solvent, thony. Both father and son were a lit- daily emissions would drop by 572 tle reluctant to try something new after pounds per year. In fact, the industry having spent so much time mastering will be required to make this change by the solvent-based paint techniques, June 1, 2014 to comply with new air but their paint jobber, Superior Paint quality regulations. The big challenge Supply, made the transition easier for for small businesses is, of course, the them, while the grant money also cost to make the upgrades. made the decision a little more palatGwen Springmeyer is the Assisable, Anthony Gallegos said. tant Executive Director for UCAIR “We’re getting $15,000 to change which is administering the state grants. over, and for us it was a no-brainer, She wants body shop owners to know
14 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
that the grant application process is easier than they might imagine and that her organization is willing to help shops with the application process. “The grant application is easy for several reasons,” Springmeyer explained. “There is no competition for the grant, so if you qualify and there is still money in the budget, you’ll get it. Secondly, we don’t ask for your financials. The application is seven pages and we’re more than willing to help you with it. The money is there, so we want to encourage body shops and other small businesses to apply and get these dollar for dollar grants. And maybe most importantly, the deadline is June 30, 2014, but then we’re also going to make another $1 million available as part of the same program. So, essentially, the state is offering $1.3 million in air quality matching grants.” Jeff Brasier is a paint trainer for Superior Paint Supply in Salt Lake City. He has been working literally non-stop for the last five months as shops rush into the waterborne game before the deadline of July 1. “I’ve got shops lining up and it’s been crazy,” Brasier said. “I’m training 2-3 shops
all the time, back to back and once we’ve got them covered, here come 34 more.” While many shops in his region are embracing the new paint and quickly learning how to apply it correctly, some smaller shops are dragging their feet, Brasier explained. “If someone is onboard, I can train them in three days without issue. But, if they’re reluctant for whatever reason, it can take months, because they have to unlearn so many old habits. The waterborne paint goes on wetter and it stays wet longer and you have to use it in a clean environment without dust and dirt all around. It’s not rocket science, so if a good painter is motivated, he or she can be adept at using it rather quickly.” For more information about getting a clean air grant, you can find more information and the grant application at www.ucair.org.
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Continued from Cover
Maryland Parts Bill
five years old. “Senate Bill 487 will severely limit the choices that the consumer has in getting their vehicle repaired,” said ABPA Executive Director Edward Salamy. “These types of anticonsumer bills not only eliminate competition, a foundation of the American free enterprise system, they also increase the potential for higher insurance costs.” ABPA claims that a representative of the Washington Metropolitan Auto Body Association (WMABA) made a series of false claims, including: ● OE radiators have a better warranty than alternative supplier radiators. ● Consumers will be required to pay additional rental car fees caused by delays due to alternative parts. “The ABPA is not only monitoring the legislation in Maryland, but it has also come to our attention there is similar anti-consumer legislation being introduced in Rhode Island and Michigan,” said Salamy.
“Having your vehicle involved in a collision is already a very stressful experience for the consumer. Having a repair association such as WMABA using scare tactics to achieve their own agenda is not in the best interest of the consumer.” Maryland Senate Bill 487 would prohibit “…a specified adjuster, appraiser, insurance producer, or em-
in opposition to the legislation. Oyango Snell, State Government Relations Counsel said, “PCI and our members encourage lawmakers to closely examine the possible negative ramifications for consumers that could result if Senate Bill 487 passes. This legislation not only imposes severe restrictions on how insurers manage the auto body repair process and deliver a
“[This legislation] imposes severe restrictions on how insurers manage the auto repair process and deliver a quality repair experience...”
—Oyango Snell, PCI Govt. Relations Counsel
ployee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle; requiring an insurer that issues or delivers in the State a policy of motor vehicle liability insurance that provides coverage for the repair of physical damage to the insured motor vehicle to authorize specified repairs to be made using genuine crash parts; etc.” The Property Casualty Insurers Association of America (PCI) testified
quality repair experience, but it also could hurt consumers by increasing the costs associated with getting vehicles repaired and increasing the cost of insurance premiums. Currently Maryland’s average collision premium ranks 13th highest in the nation and that ranking could rise by forcing more repairs to always be made with original equipment parts, which can be as much as 60 percent more than aftermarket parts.” Snell continued, “We believe lawmakers will see that this bill limits
consumer choice and stands in the way of insurers providing high quality repairs at reasonable costs for their constituents. We are urging lawmakers to table this legislation and continue to fight against higher costs for consumers.” The Coalition for Auto Repair Equality (CARE) that represents companies in the automotive aftermarket including NAPA, AutoZone, Advance Auto Parts, O’Reilly Auto Parts and Bridgestone-Firestone Retail Operations, raised concerns about the proposed legislation’s impact upon low-income consumers and that it stigmatizes non-OEM parts by requiring the consumer to consent to their use. “If passed, House Bill 574 and Senate Bill 487 would require motorists who need vehicle replacement parts to specifically sign for the use of aftermarket parts in their vehicles before accepting them. This is unfair because these same vehicle owners do not have to sign for the more expensive car company-labeled parts. In addition, this plants a seed of doubt in a consumer’s mind that the aftermarket parts are somehow of inferior quality, frightening them into spending extra money that they may not have,” said the exec-
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utive director of CARE. Addressing the issue of the three year requirement for OEM parts, an analysis prepared on the bills by the Maryland Department of Legislative services noted that the Maryland Automobile Insurance Fund (MAIF), an independent state agency created by the Maryland State Legislature in 1972 to provide insurance to residents who could not secure it on the private market, already has a policy to pay for OEM parts for two years after the date of manufacture. While adding a year to the current policy would raise costs, the analysis states, “However, despite the prevalence of motor vehicle accidents and collisions in society at large, any expenditure increase due to covering an additional year is likely to be minimal.” The MAIF reported that in 2013 it wrote a total of 460 estimates on 2011 model vehicles (three year old vehicles that would be covered by the expanded OEM-only waiting period) and that the average difference between estimates using OEM parts versus aftermarket parts was $117.32, for a total estimated increased cost of $53,967. If that cost was passed on to consumers in premium, the two per-
cent tax on insurance premiums paid to the state would result in $1079 tax collected. The Washington Metropolitan Auto Body Association, (WMABA) supported the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. WMABA also believes that the impact on costs from the OEM-parts only requirement would be minimal and that there is no correlation between this type of provision and the cost of insurance. According to WMABA, while Rhode Island with a 30-month prohibition, and West Virginia, with a 3-year prohibition, have historically higher premiums than Maryland, Indiana, with a 5-yr prohibition, and Minnesota with a complete aftermarket prohibition have lower premiums than Maryland. WMABA also drew attention to the fact that consumer choice is preserved in the legislation because consumers would still have the ability to consent to the use of aftermarket parts if they choose to do so. For more detailed discussion of the testimony see p. 29.
Ford Recommends LORD Fusor in F-150 Repairs
LORD Fusor 108B, a metal bonding adhesive designed for body shop is now recommended by Ford Motor Company for the repair of their new 2015 Ford F-150 aluminum cab. Unveiled at the 2014 North American International Auto Show in Detroit, Mich., Jan. 13, Ford Motor Company approved LORD Fusor 108B metal bonding adhesive for repairs on the 2015 F-150 military-grade aluminum alloy cab by their dealers and independent body shops. This new design will require adhesive in nearly all joints in the cab. Ford will be listing specific repair procedures in the collision repair manual along with instructions that will be provided with service parts. “Over the years, Fusor has led the industry with innovative metal bonding applications such as quarter panel bonding, rivet bonding on laminate steel and weld bonding with STRSW by working with the OEM repair teams before the vehicles launch. LORD Fusor has been a sponsor of the Ford Paint and Body Technology Center and continues to work with them to develop important vehicle repair procedures,” says Julie Miller, market manager at LORD Corporation. “We recommend follow-
ing the OEM procedure when using Fusor 108B for vehicle specific procedures. LORD Fusor 108B metal bonding adhesive is one of three approved repair adhesives by Ford Motor Company, including Motorcraft TA-1B.” Gerry Bonanni at Ford Motor Company’s Paint and Body Technology Center stated that the developed procedures are easy to follow and can be performed by any body shop that performs collision repairs on F-150 trucks today. “The approved adhesives are widely available and training will be available by I-CAR to assist technicians with this mainstream repair process,” says Bonnani. Ford will present information on the 2015 F-150 and aluminum repair at the AASP/NJ Northeast Show March 21-23 in Secaucus, N.J. Additional details will be presented at the Collision Industry Conference (CIC) April 9-10 in Portland, Ore., NACE CARS 2014 July 31-Aug. 2 in Detroit, Mich., and at the SEMA Show Nov. 4-7 in Las Vegas, Nev. LORD Fusor 108B is currently available to all dealers and body shops. For more information please visit LORD.com, or call at 1-877-275-5673.
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Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, Great Lakes Associations who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
WACTAL Hosts 2014 Conference and Trade Show with Chasidy Rae Sisk
On February 21-22, the Wisconsin the increase in cars being manufacAuto Collision Technicians Associatured with accident avoidance systems. tion (WACTAL) held their 2014 Conwith Chasidy Rae Mark Sisk Mueller of PPG Refinish folference and Trade Show at the lowed with The New Collision Repair Wilderness Resort in Wisconsin Dells, Administrative Paradigm. This semiWI. nar sought to teach participants a betThe Conference began at 8AM on ter way to deal with the pressures Friday morning with a slew of educarelated to an increase in administrative tional seminars. Greg Horn, VP of Inresponsibilities for managing claims. dustry Relations for Mitchell After lunch, Tony Passwater, International, began with Industry President of AEII, presented How Trends in which he educated attendees Have We Gotten Where We Are Now? on the collision repair industry’s curduring which he examined the straterent state by exploring claim frequency gies used to force the collision repair trends and Key Performance Indicaindustry into its current state, as well tors (KPIs). He also touched on adas how to identify and counteract these with Ed Attanasio vancing vehicular technology in terms practices to improve the industry’s fuof changes in vehicle construction and ture.
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Car-O-Liner Offers New PPG Announces Distributor Ford 2015 F-150 Equipment Training Schedule PPG Automotive Refinish unveiled Car-O-Liner® has expanded their with Ed Attanasio
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its 2014 distributor training schedequipment offering included in the ule. Consisting of more than 30 2015 F-150 Collision Repair Proclasses across 12 critical business gram. New equipment includes areas, the training is for owners, three new welders, frame alignment managers, sales staff, and other key solutions, and a mobile aluminum personnel involved in the operation workstation. of a PPG distributor business. withgeneral Ed Attanasio Classes cover operations, finance, business development and management, conflict resolution, selling skills, commercial business development, and more. “We’re always enhancing our distributor training offerings, making sure they’re relevant and rewith Thomas Franklin warding,” said Bob Wenzinger, PPG distributor programs director. “We “This equipment will greatly see PPG distributors at all levels enhance the technician’s potential to learning and improving from our have the exact tools they need for courses.” high quality, quick, and accurate reTraining will be held from pairs. With this expanded product March to December in PPG business development centers withand Edconference Attanasio offering, Car-O-Liner is excited to provide the total repair solution, facilities throughout the U.S. and giving technicians the right equipCanada. Courses are led by PPG ment to complete each repair order leaders and prominent consultants in efficiently,” said Peter Richardson, the automotive refinish industry. key accounts manager for Car-OView the complete 2014 trainLiner. ing schedule at http://us.ppgrefinVisit www.car-o-liner.com for ish.com/PPG-Refinish/Training/Trai more information. ning-Courses. with Chasidy Rae Sisk
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SEMA Data Co-op Grows 300%
The Specialty Equipment equipment Suppliers and reManufacturers Association sellers around the world (SEMA) Data Co-op (SDC) standardize and manage their with Franklin is now helping moreThomas than parts data to improve effi600 automotive specialty ciency and increase sales, a
Sustainability Challenge Grant Winners Announced
The Collision Repair Education Foundation and AkzoNobel Automotive and Aerospace Coatings are proud to announce the winners of the new Sustainability Challenge Grant: ► Applied Technology Center (Rock Hill, SC) ►Cerritos College (Norwalk, CA) ►Gaithersburg High School (Gaithersburg, MD) ►Manhattan Area Tech College (Manhattan, KS) ►Northern Maine Community College (Presque Isle, ME) Winners were selected based on their submitted proposals for applying continuous improvement and sustainability principles that improve the school body shop process or how the shop interacts and impacts the community. Each winner will receive funding to introduce their proposed idea into their school and report on the success of their project. The program also provided a sustainability video series and other tools that served as a way to educate collision students about sustainability, its principles, and how to improve and make a positive impact on the environment.
With the conclusion of the informational seminars, the trade show reopened on Saturday from 10AM until 2PM, an exciting expansion from previous years when the Trade Show was only open one day. Nearly 30 companies exhibited at the 2014 WACTAL Trade Show, including 3M, Akzo Nobel, Axalta Coating Systems, Mitchell, BASF, PPG Industries, FinishMaster and many others. All aspects of the event were well-received by participants, though stormy weather on Thursday and Friday impacted attendance slightly.
www.autobodynews.com CHECK IT OUT!
Record $9.4M Donated to Collision School Programs
In 2013, the collision industry nearly doubled the 2012 amount of support it provided to high school Tocollision advertise and college school programs the Collision Repair callthrough Advertising Sales at: Education Foundation with nearly 800-699-8251 US$9.4 million in product and monetary donations. e-mail: advertising@autobodynews.com Ninety percent of this support was in-kind donations, and the colwww.autobodynews.com lision industry surpassed the US$20 million mark in total giving since 2008. Also, working towards being as lean of a charitable organization as possible with a full-time staff of four, 90 cents of every dollar Seedo-the N nated went towards supporting the school programs, instructors, and students in 2013. “The incredible growth in supwww.autobodyn port that the Collision Repair Education Foundation has been able to provide since 2008 is a direct result of the industry’s generosity, and to nearly double the amount donated in 2013 compared to 2012 shows how much our supporters believe in the technical education of industry’s future said To professionals,” advertise Clark Plucinski, Collision Repair call Sean Hartman at: Education Foundation executive director.800-699-8251
Autobody New
e-mail:
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300 percent increase from August 2013. The SDC has seen unprecedented growth following a very strong formal launch of its Product In-
Western Associations
18 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
WACTAL members met for a brief meeting before opening the trade show on Friday night from 5-8PM. This was followed by the Hospitality Social which provided attendees and exhibitors a chance to relax and network while enjoying the hors d’oeuvres sponsored by BASF, Body Shop Supply Co., Broadway Automotive Group, Finishmaster, Motors Service & Supply, PPG, and West Bend Mutual Insurance. In Salvage Vehicle Inspection – What You Need to Know on Saturday morning, Trooper Quinn Sieber, Salvage Vehicle Inspector for the WI State Patrol, reinforced the illegality of removing VIN tags.
formation Management System (PIMS) in May 2013 and the announcement of free product data exports to SEMA members.
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 21
North Texas Student Says Two Mobile Dent Repair Businesses Took Him for a Ride Driver claims mobile dent repair businesses did $3,700 in damage
When cameras from the NBC 5 Investigates Consumer Unit started rolling, two so-called repairmen went running, according to Deanna Dewberry, of the NBC 5 Investigates Consumer Unit. A North Texas student told the news team that after his bad experiences with two different mobile dent repair businesses he wanted to warn others to steer clear of drive-up, fix-it auto repairmen whose promises and prices seem too good to be true. Joshua Bissonette is a cashstrapped college student trying to finish up school after serving in the U.S. Army. With his car in need of repair, Bissonette turned to Craigslist and found an ad for “mobile auto body” repair men who fix dents and damage at a person’s “work or home” for “less than a traditional” body shop. He decided to give them a try. “They got to work right away,” said Bissonette. “They started prying the dent out. It seemed like they knew what they were doing.” But he soon learned otherwise. “The dents look gone, but it doesn’t look good,” he said. Bissonette said they didn’t finish the job either. “They said due to the cold weather they couldn’t apply paint,” Bissonette said. They left with the repairs incomplete and his wallet $250 lighter. “I just wanted them to go away, so I paid them their money,” he said. But with the work unfinished, Bissonette went back to Craigslist again where he found another ad for a different mobile auto body repair business. This ad had pictures and promises. So he called and set up a meeting in an Arlington parking lot.
“They said it was going to look like new,” Bissonette said. He paid them $250 cash for the job. Bissonette said these guys covered their shoddy work with green goop saying it would protect the paint. When he got home and washed it off he was horrified. He saw a scratched sandpaper surface and spray paint spattered on his windshield, mirror, and tire. “It looks horrible,” he explained. Bissonette then called NBC 5 Investigates Consumer Unit and they called the numbers from both ads to set up meetings. We showed up at the first location in our station Chevrolet Tahoe, which had a dent. Their cameras were in tow. We told a guy, who said his name was Tony, that some of his past customers were unhappy with his work. “No comment at this point. I have to get in touch with my lawyer,” he said. When Investigates pressed further he got in his car and sped away. Investigates then called the number in the second ad and set up a time and place to meet. When they identified themselves, the repairman immediately covered his face, never got out of his car and left faster than the first guy.
“The Worst I’ve Ever Seen” Brian Johnson, a certified collision repairman for Service King in Irving, evaluated Bissonette’s car. “It is the worst I’ve ever seen for someone to call that a finished product,” he said. “It looks like they used spray paint out of a can.” Johnson said he sees fly-by-night auto dent repairmen come out of the woodwork in the DFW area, especially after weather events like storms, hail and ice. “Just since the beginning of this
Ford Sued Over Patented Turn Signal Technology
Ford Motor Co. is being sued over claims that it infringed a patent on technology for an automatic turn signal. Ford’s three-blink lane change technology infringes a 2008 patent held by Richard Ponziani, a former automotive design engineer for companies including General Motors and Valeo SA, according to a complaint made public today in federal court in Wilmington, DE. Ford pitched the turn signal as the solution to one of the top 10 driv-
ing pet peeves when it announced the technology in 2009. The turn indicator is designed to blink three times and automatically shut off. The technology is used in Ford’s F Series truck, Taurus, Edge, and Fusion models, according to the complaint, which seeks unspecified damages. Ford spokeswoman, Kristina Adamski, declined to comment on the complaint.
22 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
year, I have seen three cars personally with the same situation,” said Johnson. Johnson said the looks of Bissonette’s car are the least of his worries. “There is probably no structural integrity left in that panel,” Johnson said. In his opinion, because of how the work was done, the panel might not perform as it should in a wreck, potentially putting Bissonette’s safety at risk. He recommended replacing that panel. In total, the repairs would now cost $3,700. Texas has no state agency that regulates collision repair, so it’s up consumers to do their homework. The News Team reported that consumers should ask repairers if they have certification from an organization like I-CAR, or ASE, the National Institute for Automotive Service Excellence. They should also ask about warranties. If a repairman doesn’t offer one, experts suggest finding someone else. “You want to make sure the company is standing behind their work,” said Steve Sikes, Service King’s associate vice president of business development.
Experts also said any paint work needs to be done in a controlled environment, so if someone offers to paint outside, that’s likely a red flag too. In the end, Bissonette’s plight struck a chord with Richardson-based Service King. “It’s certainly unfortunate what you’ve had to deal with, with the subpar repairs,” Sikes said to Bissonette. In a gesture of goodwill, the company, a supporter of U.S. servicemen and servicewomen, said it would fix his car for free, leaving Bissonette astounded and smiling from ear to ear. The Enterprise Rent-A-Car location attached to this particular Service King location said it would also pick up the tab for his rental car while the repairs are done. Bisonette said he learned his lesson and he’ll be less trusting next time and that he hopes his story helps others avoid being taken by rogue mobile dent repair businesses. “I decided to call NBC 5 Investigates because I don’t want this to happen, you know, to anybody else,” he said.
AAAS Busy Strengthening Industry in 2014 Despite the harsh and unusual weather in the southeast portion of the country, the Automotive Aftermarket Association Southeast (AAAS) has been hard at work in their efforts to strengthen the industry—they aren’t going to let a little snow and ice slow them down! Currently, their main focus is on two upcoming lobbying events, but they are also preparing to award scholarships as their scholarship deadline draws near and planning for their annual conference in June. AAAS held their second Annual Capitol Day at the GA State Capitol in Atlanta on Wednesday, February 19th. GA members of AAAS were invited to join the association for a full day of legislative sessions and visits with elected officials as AAAS seeks to personally advocate for the industry’s priorities. On March 18th and 19th, AAAS members from the Sunshine State are encouraged to attend their Annual Capitol Day event in Tallahassee, FL, again attending legislative sessions and visiting with legislators as they at-
tempt to strengthen the industry. Regarding these two events, President of AAAS Randal Ward explains, “members join us for a day or two of walking the halls of the legislature and visiting representatives.” Ward believes this is a proactive networking opportunity that allows them to gain advocates for future legislative concerns they may encounter. AAAS is also preparing to award scholarships in the near future. The deadline for the AAAS Educational Foundation Scholarship is March 31, 2014. The AAASEF Scholarship Fund was established in 2005 to encourage and financially support individuals wishing to continue their education in a technical training school or college. Applicants must be sponsored by an AAAS member to be eligible, but all eligible candidates will be considered, regardless of their chosen field of study. Applications can be submitted at: www.automotivescholarships.com /AAAS. Additionally, AAAS is making arrangements for their upcoming Annual Conference and Trade Show, to
be held at the Baytowne Warf of Sandestin on June 5-8, 2014. They are excited to present keynote speaker John Washbish, President and CEO of the Aftermarket Auto Parts Alliance, Inc. With over four decades of experience in the automotive industry, Washbash’s leadership skills have been recognized with numerous awards, including the Automotive Warehouse Distributors Association Leader of the Year Award and Northwood’s Automotive Aftermarket Management Education Award. AAAS Chairman Mike Morgan feels “very fortunate to have John joining us for our annual conference. We look forward to his visit and him sharing his views and insight on the industry and the economy… We are honored to welcome an impressive list of guest speakers who will deliver very timely educational and informative presentations on some of the most important topics facing the aftermarket industry today.” On Saturday morning, the conference will begin with Washbish discussing changes and trends that
impact aftermarket businesses. Next, Scott Luckett, Chief Information Officer of the Automotive Aftermarket Industry Association (AAIA) will present “The Connected Car: The Impact of Vehicles Telematics in the Auto Care Industry,” and this will be followed by a presentation on “Aftermarket Access to OEM Vehicle Repair Information,” given by Skip Potter, Executive Director of the National Automotive Service Task Force (NASTF). The program will conclude with Wayne Bowling, Senior Vice President of Employee Benefits at Willis Group, who will discuss Obamacare’s effects on attendees, their businesses and their employees. In addition to the educational aspect of the event, AAAS promises networking opportunities and plenty of fun with a full schedule that includes a deep fishing charter, a reception at Baytowne Marina, a Saturday night dinner cruise on the Solaris, and the Bell/Hines Memorial Scholarship Fundraiser Golf Tournament. AAAS will continue providing updates on this event at www.aaas.us.
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 23
Industry Insight with John Yoswick
—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.
Helpful Documents, Tools, Information Only a Click Away For Shops Looking for tips, tools and resources “It’s hard to find qualified technito help your business, defend your po- cians on general job boards,” Jeff Hersitions or do your part for the indus- man, CEO of TopTech Finder, said. try? Here’s a collection links to “They aren’t designed for the mechanwith EdofAttanasio sites, documents and information you ical repair industry and don’t draw may find interesting and useful. many technicians. In contrast, TopTech — More and more state legislaFinder allows candidates to show off tures are considering bills that would industry-specific qualifications, makplace new limits on insurer mandates, ing it a natural place for techs to find such as State Farm’s mandated use of jobs.” PartsTrader. Meanwhile theAttanasio AutomoTopTech Finder is free for jobwith Ed tive Service Association (ASA) is exseekers and will remain free for empected to issue a preliminary report ployers for a limited time. soon on the response it has received — It’s a common belief in the infrom state attorneys general and insurdustry that in markets with lower ance regulations regarding the legality labor rates, estimates have more line of State Farm’s PartsTrader mandate. items to make the bottom line about “ASA has had discussions with a the same as it would be in a market Ed have Attanasio number of thesewith states that sub- with a higher labor rate. Some analymitted inquiries for additional sup- sis from Mitchell International indiporting information,” the association cates that may not be the case. states in its press release. “It’s imporDownload Mitchell’s most retant to note that subsequent to our an- cent “Industry Trends Report,” nouncement relative to sending letters (http://tinyurl.com/cpbt9ks) to read to each state, State Farm sent states a how the company analyzed estimates letter arguing the legitimacy of such in states with the highest labor rates mandates.” to compare them to those with the Want to see what State Farm is lowest labor rates. The states with the telling some state regulators? Click lowest average body labor rates – here (http://tinyurl.com/StateFarm- Massachusetts ($37.07), Tennessee Letter) to see one such letter. ($41.14), Florida ($41.29), Georgia “Our goal was to resolve this issue ($42.04) and Maryland ($42.12) – did without government oversight, internot tend to have more repair (versus ference or legislation,” Dan Risley, exreplace) operations, more refinish ecutive director of ASA, said. “As hours or more overall estimate lines such, we have persisted in our efforts than the states with the highest averto work with State Farm to change the age body labor rates – Montana current PartsTrader mandate policy. ($63.05), Alaska ($61.35), California This has included multiple meetings ($60.46), North Dakota (59.52) and and other discussions that continued Wyoming ($57.45). throughout 2013. ASA believes that “Only 1.2 hours of total labor there are potential solutions (if) State separates the average of the bottom Farm is willing to work toward an amfive labor rate states from the top five icable resolution that benefits State labor rate states,” the report found, for Farm, collision repairers and the conexample. sumer.” — Which states are doing the — Looking for another way to remost to improve highway safety? The cruit new technicians? Shops should 11th annual report card from Advonote that use of the TopTechFinder.com cates for Highway and Auto Safety (www.toptechfinder.com) recruiting measuring state progress in passing site is still free for both shops and those highway safety laws gives Illinois, looking for work. Oregon and the District of Columbia Since launching in early 2012, the top grades for having enacted 12 TopTechFinder.com has connected with of 15 laws the organization supports. over 1,350 candidates and 350 repairAnother six states, including Indiana, ers in the collision repair business. It have passed 11 of the laws. has since expanded to help mechanical States receiving the lowest grades, repair shops find qualified employees. having enacted five or fewer of the
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SEMA Show Goes On
24 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
laws, are South Dakota, Mississippi, Arizona, Iowa, Montana and Nebraska. Download the report at: http://tinyurl.com/lctnvv9 — Here’s a link that has nothing to do with collision repair directly, but could save a life. Joe Arnold, vice president of Arnold’s Body Shop in Davenport, Iowa, is urging people to learn the symptoms of a stroke after his wife suffered a stroke on the day after Christmas. “She is only 39 years old and healthy,” Arnold posted on Facebook. “It can happen to anyone at any age. At the start we thought it was just a migraine. As it progressed, it became clear that it was a stroke. I only knew because of my past training as an EMT (14 years ago) what it really could be. She will make a full recovery because we recognized the signs and symptoms and took immediate action based upon them.” The three key symptoms are outlined at: http://tinyurl.com/ltg3q63 “The more you know, the safer you and your loved ones will be,” Arnold wrote. — Another anti-DRP website, StopDRP.com, has launched; its content includes an animated video cautioning consumers about the use of non-OEM parts (comparing them to having a diamond replaced with cubic zirconium) and one fictionalizing a conversation between a shop and an insurer about what the shop must do to become part of the insurer’s DRP. The site includes a link to another such site, StopSteering.com, which launched in 2008. — Looking for help explaining their automaker’s position on nonOEM parts or reconditioned wheels? The OEM Roundtable this year launched a new consumer website, www.CrashRepairInfo.com. The site includes: information for vehicleowners on how to choose a body shop; definitions of common terms used in collision repair and auto insurance claims; automaker position statements on vehicle safety systems, counterfeit or salvage airbags, etc.; and videos such as Honda’s demonstration of a mistimed airbag’s impact on a watermelon.
— Ten insurers (including Farmers, USAA, Chubb and MetLife) are offering a branded app (http://tinyurl.com/Snapsheet) through Snapsheet (www.Snapsheet.com) that enable “self-service” claims for customers. Snapsheet CEO Brad Weisberg said when an insured calls to report a loss, the insurer can offer them the option of using the app to upload six to 15 photos of the damage. Estimators at Snapsheet’s offices then prepare an estimate based on the photos and sends it back to the customer within three business hours. The customer has the option of a direct-deposit cash-out, or can use the app to schedule an appointment with one of the insurer’s DRP shops. Supplements are handled through Snapsheet. Insurers pay a flat fee per estimate for the service, Weisberg said. He emphasizes that his company produces “visual estimates” only. How do Snapsheet estimators ensure their estimates comply with various state laws regarding use of non-OEM parts, etc.? “There are some states where we absolutely cannot write in,” Weisberg said. “But what we pride ourselves on is writing accurate estimates. Not only accurate to fix the car but also according to a carrier’s guidelines. So we spend a lot of time with the carriers calibrating with their claims organization how they want us to write the estimates. They review a lot of our estimates to make sure we’re writing according to plan.” Prior to Snapsheet, Weisberg was the founder in 2011 of BodyShopBids, which enabled consumers to upload photos of their damaged vehicle and receive quotes from nearby body shops within 24 hours. “BodyShopBids was a great idea and a great way to start, but it wasn’t a real business,” Weisberg said. “This is needed in the industry and this is wanted by consumers, so it’s a perfect fit.”
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Western Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-AZ Meets to Discuss Survival Skills for Service Advisors with Chasidy Rae Sisk
On Saturday, February 22nd, the Auzona. Most attended to learn better tomotive Service Association of Ariways on how to communicate with zona (ASA-AZ) hosted a course others [came for] a rewith Chasidy Rae customers, Sisk entitled Survival Skills for Service Adfresher course.” visors at the Phoenix Airport Hilton. The focus of the event was on the Luz A. Rubio, Executive Director of importance of developing good communication skills, and the group discussed various scenarios with Chasidy Rae Sisk and examples, examining the best way to handle each unique situation. “Being able to listen to the customer with Chasidy Rae Sisk and addressing the reason they came into the shop should be the primary focus. Being able to educate and inform with Chasidy Rae Sisk the customer on the ASA-AZ, says it was a “great class! importance of maintaining their vehicle We had 30 Service Advisors in attenin order to prevent costly repairs was dance, representing shops around Arialso an area of focus,” Rubio told us.
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Property and Casualty with ChasidyInsurers Rae Sisk Hit With Antitrust Suit by Florida Auto Body Shops
On February 24, 2014, a group of fixing under Section 1 of the Sherman Florida auto body shops filed an an- Act. In search of evidence of agreetitrust action against over forty prop- ment amongst the defendants (a necerty and casualty insurers in the U.S. essary element of a Section 1 claim), District Court for the Middle District plaintiffs allege that the insurers of Florida. agreed to control and suppress automobile damage repair costs at meetIn the case, A&E Auto Body verings amongst themselves that they sus 21st Century Centennial Insurance Co., d/b/a Farmers Insurance refused to allow members of the auto Group et al., the plaintiffs allege that collision repair industry to attend. the State Farm vendor agreement rePlaintiffs also contend that dewithtoEd Attanasio quires shops desiring participate in fendants’ alleged conduct constitutes this preferred provider program to ac- unlawful boycott activity. In support cept the market rate for such services, of that assertion, plaintiffs maintain and that State Farm calculates those that the defendants’ alleged acts of rates in an improper manner that steering customers away from plainkeeps them artificially low and not tiffs, through allegations and intimirepresentative of the true market for dations of poor work quality places with Ed Attanasiodefendants’ conduct beyond the limsuch services. The plaintiffs also allege that the ited antitrust exemption that the inremaining insurer defendants in the surance industry enjoys under the state have advised plaintiffs that they McCarran Ferguson Act. will pay no more than State Farm The action is only in its very earpays for labor at their shops, thus re- liest stages, and the insurers have not sulting in a stabilizing rates at these yet responded to plaintiffs’ allegawithofEd Attanasio allegedly low levels. tions. However, given the number of In addition to a number of com- insurer defendants, and the nature of mon law counts, plaintiffs assert that the issues, the case will be a major defendants’ conduct constitutes price collision industry event in 2014.
Attendees’ expectations were exceeded, Rubio believes. “Several experienced service advisors who have been in their position for more than ten years enjoyed the class and walked away with at least one idea that they can implement to improve how they have been doing their job.” In 2014, the ASA-AZ’s goal is to provide their members with education and training by attracting indus-
try speakers who will share fresh content that members can relate to and learn from. “The benefit of being a member is the opportunity to exchange ideas with peers and learn from each other. We promote that we are not an association of competitors, but an association of peers where we identify challenges and come up with ideas that will maximize the success and longevity their businesses.” ASA-AZ is very excited to offer a full calendar of meetings, events and
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Association Meetings
26 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
with Thomas Franklin
roundtables this year as they continue to strive to provide a forum for members to share valuable information that will help elevate the standard in the in-
Is My Gas Can Safe?
gasoline must be less than 8 gallons gasoline (a few teaspoons) inside the per container and a maximum of 72 gas can, cool temperatures, tilting The maintenance and operation of total gallons (440 pounds). The con- the can at 42 degrees (typical pour gasoline tanks, both aboveground and tainers must be secured in the pickup angle) and of course a spark! The underground, has become expensive, truck and properly labeled. The driver employees should be trained to avoid highly regulated, and burdensome. should be trained in DOT regulations. these risky conditions and maybe Automobile dealers have resorted to We recommend that the containers are even buy metal cans in the future. gas dolly equipment where a small UL certified. Beyond that, there are http://www.nbcnews.com/news/inamount of gasoline can be added to many other regulatory agencies with vestigations/watch-gas-can-explodeeach new automobile delivered to the enforcement in the hazmat arena. lab-test-v21744014 dealership. We note that automobiles http://www.gpo.gov/fdsys/pkg/CFRCA Air Resources Board delivered to dealerships from manu- 2011-title49-vol2/pdf/CFR-2011- (CARB): As of July 1, 2007, all facturers have very small amounts of title49-vol2-sec173-6.pdf Portable Fuel Containers (PFC) sold dustry. Rubio poses a question: “Where gasoline; this being a result of U.S. Safety: Safety concerns for gaso- in California must be certified by the else can you go to exchange informaDepartment of Transportation (DOT) line containers are as follows: Air Resources Board as meeting lowtion with your peers, people that have regulations, which dictate that mini- * Properly labeled container with emission standards and regulatory refound what works or what does not? mal amounts of gasoline be retained hazard warnings and employee train- quirements. This regulation is We urge shop owners to attend these in gas tanks of vehicles in transport. ing in Hazard Communication Pro- applicable to manufacturers and reevents and network with their fellow We write this memo to discuss DOT, gram (OSHA Regulation 29 CFR § tailers who place the gas cans in the peers; the return on their membership OSHA, and CARB regulations appli- 1910.1200). stream of commerce. Only containers investment will be more than just ficable to gasoline being transported * 29 CFR § 1926.152(a)(1) states of 10 gallons or less are covered by nancial.” from a public gasoline station to deal- that “Only approved containers and this regulation, so the sale of a 25 galerships for a later fill in automobiles portable tanks shall be used for storlon gas caddy for shop use is exempt ASA-AZ on the lot. age and handling of flammable liq- from CARB regulations. The followPO Box 81517 Federal DOT Regulations: uids. Approved safety cans or DOT ing table provides a listing of those Phoenix, AZ 85069 Gasoline transport is discussed in Sec- approved containers shall be used for CARB approved containers certified 602-544-2600 tion Give 173.6 us of your the DOT regulations the handling and use flammable for sale. http://www.arb.ca.gov/conopinion on matters affecting theofindustry. Want to Contribute to www.asaaz.org under “material of transport excep- liquids in quantities of 5 gallons or sprod/fuel-containers/pfc/eo/eo.htm tions.” The regulations require that a less...” Summary: CA based businesses www.autobodynews.com container being used to transport * Bonding of containers to eliminate have only CARB approved containers publisher@autobodynews.com static electricity be followed both at available. Other statespublisher@aut may use these CHECK IT OUT! the time of filling up the containers CARB approved containers with vapor and when transferring from container locks that are spill proof and emit negto container. Keep containers on the ligible flammable vapors and hence, Promote your matebusines ground when filling and not on the are safer. Training in hazardous exclusive article bed of the truck. Use grounding wire rials, includingan information on risks as- fea when necessary. Keep nozzle in con- sociated with plastic cans, should your products orbeserv To advertise advertise The source for timely tact with can during To filling. Do not fill provided to employees. Following call Advertising Sales at: call Joe Momber at: information that every containers over 95% to allow for ex- safety and operation instructions on the 800-699-8251 gasoline must evap- PFC is also mandatory. • Dedicated Wholesale Staff body shop needs! pansion. Spilled800-699-8251 orate before containers are put on the Sam Celly has trained auto deale-mail: e-mail: • Competitive Wholesale Prices truck. jmomber@autobodynews.com ers regarding EPA/OSHA CALL: Joe compliance Momber for d advertising@autobodynews.com CALL 800-699-8251 * Containers must be closed so as to in 9 western states • Exceptional Customer Service since 1987. Celly www.autobodynews.com www.autobodynews.com 800-699-825 risk of spill and creating was the first staff engineer at KPA after Start Your FREE minimize the a fire hazard. earning his Bachelor’s of Engineering Mail Subscription. * Spill proof spouts also lock in va- degree and later, his MS degree in pors so as to avoid vapor release while Chemical Engineering (School of in storage. Don’t overfill gas tanks on Mines & Technology). In 1997, he reSee the NEW Register Your Email for Our automobiles. Keep fire extinguisher ceived his Doctorate of Jurisprudence close by! from Southwestern University in Los * Transport truck must have a spill kit Angeles with emphasis on Labor & available with a trained operator on Environmental Law. Sam is a Certiwww.autobodynews.com at www.autobodynews.com containing, cleaning, and proper dis- fied Safety Professional and has posal of spill absorbent. served as the Chair of the Law ComParts Dept Dept. Hours Hours: * Studies at Worcester Polytechnic mittee and Environmental Issues Mon., Wed.: 7:30 am - 8 pm Institute’s Department of Fire Pro- Committee of the American Industrial Tue.,Thurs., Fri.: 7:30 am - 6pm, Sat.: 8am - Noon tection Engineering, as reported by Hygiene Association (AIHA). AddiNBC News in late 2013, have indi- tionally, he is a member of American cated that under certain conditions, Institute of Chemical Engineers (1985) Phone: To advertise plastic cans are vulnerable to fires and the AIHA, where he is the Presicall Sean Hartman at: www.toyotaofgrandrapids.com with an explosive force. The condi- dent of the Southern California Sec800-699-8251 tions that present the higher risk in- tion. Send your comments to: 2555 28th Street SE • Grand Rapids MI 49512 clude having a very small amount of sam@cellyservices.com. e-mail: by Sam Celly, MS JD CSP
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 27
On Creative Marketing
A Missing Hat In Most Shops with Thomas Franklin
By now most shop owners know the advantage most new media people collision repair world is changing rap- lack. Your ten years or more of accuidly. Last month I wrote about the Sci- mulated customer contacts are a solid, Fi Shop of the Future. New materials experienced crowd. Now the time has and new smart cars require new skills come to maximize that resource. It’s time to take a new look at and new technology. But what is changing even faster is the way peo- your professional image. Unlike servple communicate with one another. ice stations and mechanical shops, Facebook’s recent purchase What- your customers don’t come in for regwith DickofStrom sApp for 19 billion dollars to enhance ular maintenance or simple battery the mobile segment of its 1.2 billion and tire purchases. In a sense they’re users says that mobile communication somewhat like the family doctor between users may become the pre- whose patients come in for annual dominant way people communicate in checkups and exams. But the collision the future. But how many shops em- shop owner is more like a surgeon ploy someone solely for the purpose who only sees a patient when a major of connecting with this segment of the operation is needed. And so much of population? And is there any good your marketing must be similar to that of the surgeon or other professionals reason to do so at this time? My answer would be that it all who only see clients in extreme times depends on how much a shop’s busi- of need. How do they build a reliable Leewith Amaradio Jr.base? ness depends onwith connecting rela- client Many professionals must rely tively young vehicle owners and drivers. Older customers are usually heavily on client referrals and conmore affluent and drive higher end ve- tacts. To build on these, most seek to hicles. If a shop maintains a database join clubs, associations and charitaof at least ten years of past customers, ble organizations that their clients the odds are good that more than half frequent or belong to. If they belong of those customers is older and possi- to a particular religion or philosophbly less tech-savvy. More importantly, ical group, they will participate in these prior customers and their that group to have an opportunity to friends, families and contacts may meet with various members and bemake up the biggest part of your fu- come known as a specialist in their with Sheila Loftusspecific field. High-priced profesture customer base outside of insurance and dealership referrals. As the sionals like CPAs, lawyers and surnew market becomes more and more geons can afford to invest serious tied to websites, Facebook, Twitter time in developing a deeply personal and other media, the general game de- relationship with a potential client. A pends on who can come up with the typical body shop owner can’t afford most captivating message and images to dedicate substantial time to any on the new media. But you have an one potential collision repair cus-
Opinions Count
Action Counts
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
tomer. So how can a shop owner do the kind of depth marketing that will gain the loyalty of this kind of reliable referral source? One shop owner in the California San Fernando Valley had a wall full of contacts. He belonged to the Knights of Columbus, the Sheriff’s Supporters League, and the American Legion. He sponsored a Boy Scout Troop, a Ladies Auxiliary and several school sports teams. It sounded like this guy was everywhere and his volume of business attested to the effectiveness of his efforts. How did he do it? Obviously not alone. Later I learned that his sister had started a woman’s business referral service. His son was active in the business at a young age. In general I don’t think he had paid P.R. people doing any of this work, but it’s not much of a stretch to consider that possibility. Family is great if you have it, but if not can it be cost-effective to employ a real public relations person
to handle this in-depth membership and schmoozing activity? Many businesses calculate the lifetime value of a customer. Figuring one collision repair every 3-to-5 years generates an approximate number. But this ignores the people in that customer’s surrounding universe. The opportunity to specifically refer a repair facility just when an accident happens is quite rare. That’s why the P.R. person is needed to amplify the praise of a satisfied customer in a group. This marketing person must have the ability to speak for the shop at groups, community events, company meetings and more. He or she should be of a comparable age to the prospective customers, with a background in sales and public speaking but with enough familiarity of the collision repair shop to present a credible story and reason to patronize the shop. As the crowd turns to social media, personal contact still has the advantage. Original BMW Parts
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Zurich Insurance Cuts Jobs to Boost Profitabiltiy
Zurich Insurance Group will cut about Senn said that Zurich would in800 jobs globally to save around $250 vest in global corporate and mid-marmillion per year by the end of 2015 to ket business and its high-margin retail help reduce costs and Janet improve Chaney prof- insurance lines, while turning around with itability. or exiting non-core, underperforming The job cuts, which are equiva- insurance businesses. lent to 1.4 percent of its total headZurich also pledged to grow opcount, will remove management layers erating earnings through 2016 by rebetween the group and its business ducing complexity, as it lowered its units. Customer-facing activities will target for return on equity from 16 to not be affected. 12–14 percent through 2016. “We continue to make significant Senn stressed that Zurich is strivprogress towards our strategic goal to ing to be at the upper end of that goal make Zurich a focused and more prof- and that he would be disappointed if itable business,” said chief executive, the company was still at 12 percent in Martin Senn. three years.
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Industry Overview with Janet Chaney
28 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
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Testimony on Maryland Parts Bill Involves Representatives from WMABA, PCI, LKQ, CAPA and Shops, Some Repairers ‘Cannot Afford to Refuse’ PartsTrader by Chasidy Rae Sisk
The MD House Economic Matters committee, on March 14, voted 16 to 7 for an unfavorable report on HB574. No action has yet been taken on SB487. See cover story this issue. This article provides some background on the testimony pro and con in front of the committee. On February 21, the Washington Metropolitan Auto Body Association (WMABA) testified at the MD House Hearing on Economic Matters in support of House Bill 574 (companion to Senate Bill 487), entitled Motor Vehicle Liability Insurance – Replacement Parts for Damaged Motor Vehicles. During the hour-and-a-half that this bill was discussed in committee, House delegates heard from several panels representing various segments of the collision repair industry. The first panel consisted of Jordan Hendler, Executive Director of WMABA, Mark Schaech of Mark’s Body Shop, and Joe Tucker of JQ Restorations. Hendler began by ex-
pressing her belief that HB574 would provide collision repair shops with the ability to service vehicles with what they deem to be the highest quality parts, stressing the need to trust the collision repair professionals to know what’s best for their customers. “As an industry, collision repairers are the first line of defense and considered the professional when it comes to fixing your car and doing what’s right for you,” she said. Support of this bill is important, Hendler continued, because use of aftermarket parts can impair warranties on newer vehicles, especially those that are less than three years old. Before a collision, a consumer’s warranty is 100% intact, but if their vehicle is repaired with aftermarket parts, the warranty is no longer 100% intact; portions of the warranty will not be valid because OEM parts were replaced with parts not recommended by the factory warranty. Additionally, even when the parts vendor or insurer offers a warranty on aftermarket parts, it is non-transferable should the car be sold to another
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consumer. “Aftermarket parts, in our industry’s perspective, are inferior to genuine parts. We have fit, finish and functionality issues, even just for cosmetic purposes,” Hendler reiterated. Another problem Hendler cited with the use of aftermarket parts is that they aren’t full vehicle crash-tested, and according to IIHS 2010 Chief Research Officer, there is a lot of engineering that goes into making a crash protection system, so changing parts may result in the system being unable to function as intended by the manufacturer. MD code requires shops to inform the consumer when aftermarket parts are used, and most insurers permit customers to opt for using OEM parts instead; however, the customer must pay the difference in price between the parts options. Speaking to claims that HB574 will lead to higher insurance premiums, Hendler pointed out that though RI and WV have a three-year prohibition on aftermarket parts and historically higher rates, IN has a five-year prohibition and MN has a complete prohibition on aftermarket parts, and both of these states enjoy lower premiums than MD. Furthermore, insurers admit that premiums are mostly predicated on the individual driver, their driving record and where the live, in addition to state bodily injury laws. A report by the Property Casualty Insurers Association (PCI) indicates that a complete ban on aftermarket parts would affect premiums by 2.6%, or $24 per year on average. Thus, Hendler concluded, there is no evidence of a correlation between using OEM parts and increased insurance premiums. Schaech provided an example of installing an aftermarket radiator which fails and ruins the vehicle’s engine. The engine will not be covered under the manufacturer’s warranty because the failure was caused by the aftermarket part. Tucker addressed the parts procurement portion of the bill, explaining how DRPs work and comparing insurer-mandated parts procurement to steering, an activity prohibited by MD law. When asked who is responsible for faulty parts, Schaech noted the shop is liable, and though a shop can ask the consumer to sign a “Hold
Harmless” letter if they know they are going against OEM recommendations, he believes it’s not right for shops to be put in this position at all. While MD law requires shops to disclose use of aftermarket parts, giving the consumer the option of spending more money to repair their vehicle with OEM parts, many DRP shops are rated on how often they use aftermarket parts in their repairs. The next panel called to testify consisted of insurer representatives. Noel Patterson began by arguing that half the cost of insurance premiums is dictated by the cost of coverage; if the cost of repairs increases, so will the price of the premiums. She also believes that the use of aftermarket parts promoted competition in the marketplace while allowing insurers to control costs even as they strive to restore the vehicle to its pre-accident condition. On behalf of USAA and the MD Insurers Alliance trade association, Kimberly Robinson said she opposed HB574 because many insurers offer consumers the choice to pay for OEM parts in their repair, allowing for competition between insurance companies in MD, but this law would shift the cost of parts, increasing insurers’ expenses and translating into higher premiums “despite other states’ experiences.” A representative from Liberty Mutual also objected, arguing that customers can get an extended warranty on aftermarket parts by going to DRP shops. This led to a delegate questioning how the insurers can claim that they are restoring a vehicle to its preloss condition when they’ve already acknowledged that using aftermarket parts may lead to diminished value, to which the insurer replied that their goal is to restore the vehicle to its previous condition, not its pre-accident value. Several representatives from LKQ-Keystone were called to testify next, and Bruce Barriano argued that aftermarket parts are the same as OEM parts essentially; the term “aftermarket” simply means the part was made after the vehicle was manufactured. He insisted that the term is not a connotation of inferior quality as aftermarket parts are built brand new and to specifications. Barriano said See Maryland Parts Bill, Page 31
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 29
CIF is Now the Charitable Conscience of the Industry by Chasidy Rae Sisk
On January 16th, the Collision Industry Foundation (CIF) held their fourth annual gala fundraiser in Palm Springs, CA. This was the first time Bill Shaw the event was not held in Las Vegas in conjunction with CIC’s fourth quarter planning meeting, but according to CIF President William Shaw, the gala was very successful and exceeded CIF’s expectations. Nearly 100 people attended the two-hour cocktail reception at Lulu’s Bistro, and this year’s event saw an increase in the number of underwriting sponsors showcased. CIF began by selling raffle tickets at the door, a venture that raised $820. They also held a silent auction for eight items, including electronics and even an Indy Car Race Package. The auction generated over $4000. CIF’s goal was to raise $25,000, but they exceeded this goal by raising $32,000. The proceeds from the event will be added to the organization’s Disaster Relief Fund which is used to support industry participants who are impacted by natural disasters. This annual event is a vital part of their efforts to collect donations, and Shaw sees it as a “great opportunity to create awareness and let the industry know how to participate and that CIF exists to help when disaster strikes… we are really creating good momentum moving forward.” On March 12, the Board of Trustees met in Chicago to discuss current disaster needs and fund allocations. In addition, the Trustees established its goals and plans for the next 12 months. CIF is also pleased to announce that two new Trustees were just elected. Casey Steffen with Saint-Gobain Abrasives and David Henderson with AutaExplore/Autowatch will join the Board and work with the Foundation to carry on its initiatives. CIF was created in 2001 by the National Auto Body Counsel (NABC) as a national non-profit organization to collect and distribute charitable funds.
The first campaign they supported was Montana’s Camp Mak-A-Dream, a program dedicated to helping children and teens suffering from cancer, and they collected over $500,000 for this cause in their first years of operation. The funds were used towards building an on-site health care facility for the camp, and in 2005, CIF supported Camp Mak-A-Dream yet again by donating funds to help purchase a bus for the program. Since beginning, CIF has supported a number of campaigns, planning and implementing various projects. They supported a three-year campaign called “Crash Hunger” that focused on raising funds to feed Americans. Another project, in 2008, was “Blanket the City: Detroit,” a fundraising effort to support the city that was so disproportionately impacted by economic turmoil. In their attempt to help a broad base of organizations providing vital services to the city, CIF made donations to the Children’s Home of Detroit, Clean Downtown Detroit Partnership and Gleaner’s Food Bank. In addition to providing donations to Recycled Rides, CIF part-
lision repair industry,” when Hurricane Katrina struck LA and MS in 2005, CIF’s Board of Directors created the Disaster Relief Fund to aid victims of natural disasters. Their fundraising efforts allowed them to aid over 100 collision industry professionals impacted by Katrina. This project was so successful that CIF decided to make it an ongoing program and through their efforts, they’ve supported victims of many natural disasters, including Hurricane Irene, the tsunami in Japan and, most recently, Superstorm Sandy which devastated the entire east coast of the US in the fall of 2012. All of these programs support CIF’s mission “to collect funds from all facets of the collision repair industry to be distributed to repair professionals chosen by the Foundation’s selection committee.” CIF’s assistance is limited to individuals and not provided to businesses or organizations. A committee reviews all requests and distributes funds based on individual needs. Those interested in helping are encouraged to make donations, join CIF’s volunteer committee or aid with Victim Location/Assistance.
Currently, CIF’s short-term goals include creating awareness about who CIF is, as well as their mission and vision – to bring awareness and emergency relief to collision repair professionals. Their primary focus remains helping those in need.
Further down the road, Shaw hopes CIF will establish a sustainable fund with “enough money in reserve to help those in need and help subsidize the costs not covered by insurance in the event of a natural disaster. In the meantime, we will continue to support various campaigns in our efforts to reach out and engage the collision repair industry so they can give something back.” Regarding challenges that CIF faces in order to maintain operations,
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
nered with Skills USA and the World Skills Competition to sponsor the US Collision Team, sending two competitors to the World Skills Competition in Helsinki, Finland. CIF also participates in “Leave Something Behind” initiatives throughout the year; while attending CIC meetings around the nation; this program serves as a gesture of gratitude to the host city. Over the years, this effort has yielded book donations to a Portland library and monetary donations to Children’s Hospitals in Phoenix, AZ, and Washington DC, as well as Toys for Tots in Las Vegas and the Utah Food Bank in Salt Lake City. Though these programs are more than sufficient to illustrate that CIF is “the charitable conscience of the col-
30 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
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Shaw mentions the number of those who need assistance, but he feels that the resolution to this dilemma is “to articulate our message and inform contributors how their donations will be used to support the industry.” CIF is run by a Board of Trustees, comprised of 12 leaders from all segments of the industry. This group is still in the planning stages of their 2014 agenda, but Shaw hopes to be able to define this year’s goals by the end of the first quarter. Shaw succinctly wraps up CIF’s mission and goals as follows: “We want the collision repair industry to be aware that there are people in need and to encourage them to get involved and give back. We are trying to create a culture that gives back because the benefits are tremendous for both sides. The message we want to share is this—whether you’re directly involved with CIF or not, it’s very important to get involved with local organizations and to support charities.”
Collision Industry Foundation (CIF) PO Box 3007 Mechanicsville, VA 23116 855-4CIFAID (855-424-3243) http://collisionindustryfoundation.org
Continued from Page 29
Maryland Parts Bill
that aftermarket parts are only cheaper in price, not in quality or safety, and using these parts benefits consumers by keeping insurance costs down. In contrast, HB574 creates a three-year monopoly which is anticompetitive, allows OEMs to charge whatever they want for these parts, and will clearly lead to increasing rates—“this bill is not without financial implications,” Barriano insisted. Additionally, consumers receive a warranty on the life of LKQ aftermarket parts, plus the shop that repairs the vehicle receives indemnification from LKQ who will defend the collision repair facility if a lawsuit is filed. Two General Managers of LKQKeystone facilities in MD, Jim Lohan and Marcel Hoover, spoke about how the businesses they run contribute to the state’s economy, and they claimed that many customers call them seeking an alternative to high-priced OEM parts. Jack Gillis, Executive Director of CAPA and on behalf of the Center for Auto Safety, opposes the bill because it limits consumer choice, pro-
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tects an unfair monopoly, restricts competition, and will increase crash repair costs for MD consumers. In addition to arguing that competition lowers prices, Gillis points out that using OEM parts doesn’t necessarily mean restoring the vehicle to its pre-loss condition, and because OEM parts are frequently recalled, he doesn’t think they should be the only option. Arguing that “there’s nothing wrong with generic products,” he asked why aftermarket parts aren’t banned altogether if they’re substandard and suggests a middle-ground option of requiring aftermarket parts to be functionally equivalent to OEM parts. The final portion of testimony began with Laura Marta Harding of State Farm who focused on the parts procurement portion of HB574, noting that PartsTrader has only been in effect in MD for two weeks. She argued that the collision repair shops control the inputs in PartsTrader, specifying the type of parts they use, and indicated that shops who object to interference in this business are welcome to opt out of State Farm’s Select Service Program. Testifying on behalf of the opposition was Laura Gay, owner of Fort
Washington Auto Body and Sullivan’s Auto Body. Gay discussed the decrease in the collision repair business due to advancing technology, admitting she cannot afford to refuse PartsTrader because she needs the business generated by being on State Farm’s DRP. Lawrence Christiansen of Nationwide estimated that HB574 would increase Nationwide’s premiums by $12 million over the next six months, and as this insurer only writes around 10% of MD’s insurance, the bill would seriously impact MD’s economy. Oyango Snell, Counsel for PCI, concluded the testimony by pointing out that the bill’s advocates haven’t provided proof of consumer complaints, thus aftermarket parts usage poses no threat to the consumer in his opinion. Aftermarket parts only represent 10% of the parts market, so he feels the goal of HB574 seems to be creating even more of a monopoly. He finishes his testimony with the double-edged reminder that “insurance companies don’t sell parts.” If you’re interested in viewing the hearing, you can access it from the link on the www.autobodynews.com website. Search for the online story with the same title as this article.
NC Shop Wins Nationwide Short-Pay Arbitration Case Pack Brothers Collision Center of Belmont, NC, has won a short-pay arbitration case in a Lincoln County North Carolina court against Nationwide Mutual Insurance Company. On Feb, 3, 2014, a judge awarded a customer of Pack Brothers a little more than $3,000, which was owed to Pack Brothers for collision repairs that Nationwide refused to pay upon completion of their insured’s car. The lawsuit was filed on behalf of the customer with a Power of Attorney assigned by the customer in cooperation with Pack Brothers. The customer was insured by Nationwide, which refused to pay for repairs for a first-party claim. According to Pack Brothers, Nationwide did not honor their policy and refused to pay them for the repairs. A judge found that under the policy language, Nationwide did owe their policyholder so he could satisfy his collision repair bill. The judge entered a judgment against Nationwide finding in favor of the customer so that he could pay Pack Brothers. “Insurance companies are so used to saying that they will not pay for correct repairs, and they know that very few shops will push it into
litigation,” said Ronnie and Larry Pack. “Therefore, they continue to deny payment to the shops because they know it’s time consuming and expensive for the shop owners to pursue. “What we are seeing is that insurance companies are shortcutting repairs, and so the repairs to the car are now compromised because of the insurance company refusal to pay for the correct repairs needed. Therefore, some of the shops are shortcutting the repairs to make up for that loss— which ultimately makes the customer the loser. “Our victory means nothing unlesswww.autobodynews.com the whole industry gets involved and demands to be IT paid for correct CHECK OUT! repairs.”
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I-CAR Has Implemented a New Initiative to Close OEM Informational Gaps OEM repair information today is good, but not perfect, says Jason Bartanen, director of industry technical relations for I-CAR. It needs to be better and more readily accessible for shops.
Bartanen says there is significant inconsistency between auto manufacturers regarding the type and amount of information they distribute. Some manufacturers have a wealth of information available, while others don’t have any collision repair information available in the U.S. market. I-CAR held a series of discussions with a group of 50 auto manufacturers, shop professionals and insurers to outBartanen says the OEM informaline 13 standard pieces of information tion available today still isn’t comprethat repairers need access to from every hensive. Several gaping holes exist, a OEM. The list includes items such as problem causing shops and insurers to material identification, material remake procedural guesses on jobs with pairability guidelines, sectioning prono way to verify their judgments. Some cedures, seam sealer identification and shops have a hard time obtaining the location, and corrosion protection reinformation at all, Bartanen adds. Vequirements. hicle manufacturers have strong distriThe broader impact of the matrix, bution methods for their affiliated though, is development of more comdealerships, but don’t have an efficient prehensive OEM repair manuals, Bartactic to deliver that same information tanen says. Members of the RTS to independent facilities, which repair a initiative have communicated the gaps majority of collision-damaged vehito every OEM to help release more incles. formation, many of which are now I-CAR last summer launched a working on producing those standard new Repairability Technical Support items for the industry.The RTS created (RTS) initiative to tackle the proban OEM technical information matrix lem—a four-member team dedicated that outlines which manufacturers proto communicate with auto manufacvide which pieces of information. That turers to fill the informational gaps and document is a major benefit to repairdistribute the information to the indusers, Bartanen says, because it’s a single try at large. The initiative—which will resource to identify whether the inforbe a continual, ongoing effort moving mation they need exists, and where forward—is expected to improve work they can find it. The information maand productivityEdition? for independtrix will be updated and expanded as to quality this Southwest ent shops by providing centralized acnew information becomes available, cess to more consistent, detailed and and is viewable for free at rts.i-car.com. standardized repair information. Doug Craig, collision repair manautobodynews.com A new website has been created, ager of the Chrysler Group, for examrts.i-car.com, which is designed as a ple, says he is working with Chrysler’s “centralized, comprehensive distribuvehicle design and materials engineers tion mechanism” for OEM information, to update and distribute new technical nessBartanen with says. Promote your businessrepair withbulletins to reflect the identified featuring an exclusive article featuring All technical-based information informational gaps. Many other OEMs from every auto your manufacturer—paint, are doing the same. services. products or services. materials, parts and processes—is Another notable improvement listed on the website and stored in the came from Kia—a company that hisdatabase. Rather than linking users to torically hasn’t released collision inforan auto manufacturer’s website, the inmation in the U.S. market. Bartanen formation is housedCall directly the says the company now has a “highly or details! forondetails! RTS website in an easy-to-read format. comprehensive” collision manual avail251 The website also 800-699-8251 includes all of able online for its Soul model. I-CAR’s latest technical briefs and OEM information sometimes daily articles. fails to provide specific necessary
steps to perform a recommended repair procedure, Bartanen says. OEM information provides shops with highlevel processes to make a repair, but lacks detailed information to make them correctly. For example, an OEM procedure might recommend “making and dressing a GMA MIG plug weld.” But it may not specify how far to grind the weld, how to dress it, or the grit of sandpaper to use. The RTS website includes an online informational communication portal for shops. It’s a technical inquiry submission process that provides the industry with a strategy to communicate and resolve repair gaps they encounter, Bartanen says. Shops can submit technical inquiries, and the RTS team initiates communication with auto manufacturers to answer questions and share information. All technical inquiries and findings are sorted and searchable by vehicle manufacturer and subject matter. OEM Standardization Bartanen says OEMs use different formats, phrases and terminologies in their repair manuals, which makes them dif-
ficult to read and causes shops to misinterpret directions. All OEMs have been solicited to develop more standardized communication processes. Craig says auto manufacturers understand the confusing—and sometimes contradictory—information they produce, and most companies are in favor of working together to simplify and unify their procedures. The RTS initiative is not necessarily meant to address the industry’s repair standards issue, but it’s one direct improvement that has resulted from those discussions, says Bob Keith, treasurer of I-CAR’s international board of directors and multi-store director for CARSTAR Auto Body Repair Experts. And it will prove to be a major benefit for shops, he says. Repairers will have access to more robust information and a more efficient strategy to clarify technical questions to improve performance on the shop floor. In addition, Keith says the RTS initiative has opened better lines of communication between the industry and auto manufacturers to boost responsiveness surrounding informational needs.
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Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
LaCIA Meets to Talk Progress and Future Plans with Chasidy Rae Sisk
The newly-formed Louisiana ColliChairman Lynn Lejeune called sion Industry Association (LaCIA) has the meeting to order, welcomed attenbeen busy settingwith up theirChasidy organization Rae dees Siskand led a prayer before the assoand is working toward their goals. ciation’s general counsel Lance They held a meeting on January 21 to Kinchen, of Breazeale, Sachse and discuss their progress thus far as well Wilson LLP, read the anti-trust stateas their future plans. Over 180 people ment. Next, Executive Director Alysia attended this meeting, which Derek Hanks touched base on a few things Stubbs, Vice Chairman of LaCIA, atthe upcoming Southern Automowith Chasidy Rae like Sisk tributes to the fact that “we are all here tive Repair Conference in Biloxi and because we care about this business, told the group what she hopes to accomplish with the association. Each member of the association’s Board of Directors then provided some background on their experiences and with Chasidy Rae spoke Sisk about their plans for LaCIA. Lejeune stressed that it is about “coming together and agreeing to make a difference.” Stubbs emphasized the importance of focusing on the present and with Chasidy Rae the Sisk future instead of the past. “Last LaCIA Chairman Lynn Lejeune speaks to year is over, and we still have battles the group to fight everyday this year, but we and we care about what happens to it.” need to face these problems together
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to make a difference. We have national issues that we have to handle first on a state level.” Chris Medine from Medine’s
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Lance Kinchen, General Counsel for LaCIA, addresses the meeting
Collision said he believes LaCIA has potential to be and do many good things through having so many industry professionals working together. His son is the third generation of his family to enter this industry, and Medine wants to effect change so that his son can have the same long and successful career. Randy Mclachan of Performance Finish & Collision feels that LaCIA is taking the correct professional approach to their development, and he believes the association can be useful in providing training and education to its member. He said he hopes that they will be “an association of education.” He is confident that by working together LaCIA members can make meaningful change that will benefit LA’s collision repair industry. Reid Heiser of Mitchell International spoke about three things that associations such as LaCIA can do, such as providing a sense of community, offering training and changing perspectives. In regards to these benefits, Hanks said, “it’s a great thing to walk into a room of neighbors and not a room of competitors. Mitchell has a lot of training they can send in to help our group. They benefit when our industry benefits. The industry is rapidly changing, and if you don’t keep up with it, you will not succeed. We need to embrace those changes and plan for what is coming down the line. [In regards to perspective], unless you get out and see what others are doing, nothing will ever change—‘you can’t work on your business if you’re work-
ing in your business.’” The day after the meeting, Hanks emailed notes to participants, along with some additional information about the association’s progress. Their website is now finally operational, though it is still being improved, and can be found at www.la-cia.com. In response to questions at the meeting about social networking, Hanks provided the address of the association’s Facebook page, agreeing that social networking is “an avenue we will explore.” Since the meeting, Hanks has established a Twitter account @LouisianaCIA and a Facebook page (www.facebook.com/SeLaCRA). Hanks has drafted a formal request to the LA’s commissioner’s office, requesting that they look into the legality of PartsTrader in their state, similar to what ASA has initiated, and she is currently awaiting comment from the association’s attorneys. Additionally, the email provided a link to the website for the Southern Automotive Repair Conference and a link to Mike Watson’s article on partial refinish. Also attached were LaCIA’s general membership application and an application to a GM training course that was held on February 25th at the Holiday Inn in Baton Rouge. Many members for LaCIA attended the event where topics included aluminum in new vehicles and price matching as it pertains to CollisionLink and GM’s Bump the Competition Program which allows price matching on select parts when an insurer estimate calls for aftermarket parts to be used. GM’s course also discussed 2013/2014 cores on fascias and headlights, how to recognize counterfeit airbags and warranty information. More information on technology and their service bulletins can be found at www.genuinegmparts.com. LaCIA supports and will be attending the Southern Automotive Repair Conference in Biloxi, MS, on April 11–12, 2014 where they have reserved a booth. LaCIA’s next meeting is scheduled for Tuesday, May 20th in Monroe, LA. As LaCIA continues to develop and becomes increasingly involved with industry issues, stay tuned for updates.
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 33
Education Foundation Doubled Down on Its Future in 2013 by Chasidy Rae Sisk
The Collision Repair Education Foundation (CREF) is always busy working on ways to improve the prospects of the industry, and the first quarter of 2014 is no exception as they calculate 2013 donations, collect applications for their Student Scholarship and School Makeover programs, and prepare for their 2014
Summer Golf Fundraiser. Brandon Eckenrode, Director of Development for CREF, eagerly shares some information about their recent tallies and future plans. As 2013 drew to a close, donations to CREF for the year totaled $9.4 million, nearly double the amount of donations as they received in 2012. Of those contributions, 10% was received in monetary contributions with the remainder being received via in-kind product donations, such as tools, equipment, supplies, parts and other donations to assist instructors in their collision repair programs. When questioned about the reasons behind this increase in contributions to CREF, Eckenrode states “year after year, we are able to reach more and more industry businesses and help communicate to them about how we are looking to support high school and college collision school programs, instructors and students. Knowing that these students are the future professionals of the industry, our supporters understand how their technical education is vital, and with school instructors working with limited/reduced budgets, the industry has really stepped up to support them through our organization.” The monetary donations received in 2013 will be used to fund CREF’s projects, such as their scholarships for students and school grants, as well as
to keep the organization running. The 2013 tallies help Eckenrode remain optimistic about CREF’s fundraising efforts for 2014: “we anticipate another great year with both monetary and inkind product donations. I would invite and challenge repair facilities, especially the independent owners, to consider an annual tax-deductible donation of $500, $750 or $1000 to the Foundation. Through strength in numbers, if even a quarter of the total number of repair facilities were able to make this donation, we would be able to completely transform collision school programs across the country and work towards the graduating students being properly trained and ready for entry-level work. Owners across the country have expressed their desire for productive, efficient and ‘ready to work’ entry-level staff, and we can make this possible by all working together.” Next up for CREF will be awarding their student scholarships and annual school makeover grants. The deadline for scholarship applications ended in the middle of February, so the applications are now being reviewed by the Board of Trustees Selection Committee, and CREF plans to announce the winners later this spring. The scholarships are available to high school seniors and collegelevel students who have studied collision repair for at least one semester. CREF has over $200,000 reserved to be awarded as various scholarships and tool grant opportunities for students looking to enter the collision repair industry. The deadline for CREF’s School Makeover Grant falls on June 6th, but Eckenrode encourages applicants to begin the process well ahead of time since a great deal of information is requested. He enumerates, “the Makeover application requires many different pieces of information; however, it provides our Board of Trustees Selection Committee a great overview of the program and the budget that they are working with to provide the best technical education possible for the students. Our
34 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
Makeover Grant is available to nonprofit high school and college collision school programs, and the grant is meant to help those collision programs who are facing a reduced budget and need additional tools, equipment and supplies for their program.” Since 2008, when the CREF began its philanthropic focus, the collision industry has provided over $20 million in various types of donations, and though CREF anticipates that this number will continue to increase over the years, Eckenrode believes “it’s important for the industry to know that, in addition to the support we are providing to schools, we are also getting actively involved in helping to bridge the gap between graduating and employment. We want to ensure that students graduate with the entry-level skill sets that employers are looking for and make these students aware of the various employment opportunities there are in all segments of the industry. By CREF providing such tools as a donor ‘entry-level employment job board’, we can not only showcase these opportunities to students but
also to parents, guidance counselors and school administration to show that these collision programs are worthwhile to support and invest in.” As such, Eckenrode is pleased that CREF will be presenting and exhibiting at the American School (Guidance) Counselor Association’s annual conference this summer where guidance counselors from around the coun-
Brandon Eckenrode (l) of CREF and Mark Algie of 3M
try will gather. During the conference, CREF plans to explain the “worthwhile career opportunities collision
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students have within this industry and why guidance counselors shouldn’t think badly about a technical education for students.” This summer, CREF will also be busy with their 13th Annual Summer Golf Fundraiser, to be held the afternoon of July 31st in conjunction with Industry Week in Detroit. The event will take place at the Northville Hills Golf Club outside the city, and CREF anticipates “another sold out crowd with funds being raised going towards assisting us in supporting high school and college collision school programs, students and instructors. The event has gone from raising $19,000 in 2009 to averaging $75,000 the past two years. The Education Foundation has tried raising the quality of the event year after year; however, this increase in funds raised has been made possible by our sponsors and attendees.” The funds raised at the golfing
event will aid CREF in providing student scholarships and School Makeover Grants in the future. In addition to offering a nice afternoon of golfing fun and networking, CREF sees the events as a chance to “communicate to industry leaders
about how we are making a different in collision school programs.” Eckenrode encourages anyone interested in participating in the golf fundraiser as a player or sponsor to contact him as soon as possible as the event has historically sold out months in advance. Those who are unable to attend can still participate by purchasing golf balls for CREF’s helicopter
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golf ball drop. Up to 1200 numbered balls can be purchased to be dropped onto a course green via helicopter during the event. Whoever purchases the ball that lands in the hole will win 23% of the proceeds from the ball drop, an astounding $7000 gift card if all of the balls are sold! Winners do not have to be present, and this provides yet another creative method for CREF to raise additional funds during the event. Eckenrode is grateful to the collision repair industry for making CREF’s efforts possible: “I would like to thank the collision industry for making over $20 million in donations possible in such a short period of time. I am not aware of any other technical trade having a ‘Foundation’ type organization that supports their programs like ours does. Collision school programs are becoming the envy of other school programs as they see what type of support the schools are receiving through us, and we look forward to working together to take this organization to another level.”
www.collisioneducationfoundation.org 847-463-5244
ABRA Acquires 13 Repair Centers in Charlotte, NC
On March 7, 2014, ABRA Auto Body & Glass announced the purchase of all 13 Wilburn Auto Body repair centers in the Charlotte, NC, metro area. ABRA now has 145 company-owned locations and 48 independently-owned franchises for a total of 193 collision repair centers in 17 states. Don Wilburn, founder and CEO of Wilburn Auto Body, embraces the acquisition. “This is a significant milestone for me. Wilburn Auto Body has served Charlotte since 1975. I have complete confidence ABRA will continue the legacy of delivering top-notch customer service and repair solutions to our customers and the community.” Building on its increasing success, ABRA plans to continue expanding in the months and years ahead as part of its aggressive national growth strategy. It is actively seeking new opportunities to acquire repair centers and integrate them into its industry-leading operating system.
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Freak Tire Accident Kills Gainesville Body Shop Employee, Injures Shop Owner, Driver Also Shop Worker
Ivan James Sandquist, age 33, was killed in a freak accident on the morning of March 3. The Williston Police Department (WPD) reported that they received a report of two men being injured while working at Absolute Auto body, located at 104 NW 10th Ave. Upon investigation, it was discovered that Patrick Woodard of Gainesville, who repairs cars at an auto shop in the Raleigh area of Levy County, was driving a 1999 Toyota northbound on US41. As the vehicle approached Absolute Auto Body, the left front tire broke free from the vehicle and traveled north on the west shoulder of the highway. The tire struck a driveway apron, sending it airborne. The tire jumped over a sixfoot chain link fence, where it then struck Sandquist, killing him instantly. After striking Sandquist, the tire struck the friend he was standing and talking to, James E. Fender, 45, the owner of the Absolute Auto Body Shop. Fender sustained serious injuries and was airlifted to Shands Hospital in Gainesville. Williston Police Chief Dennis Strow said the incident was being in-
vestigated, and that he asked for help from the Florida Highway Patrol (FHP). An To FHPadvertise homicide investigator Advertising Sales at: out willcall be assisting in trying to figure what happened. “We asked for help 800-699-8251 from FHP because they have so much e-mail: experience in these kinds of things.” advertising@autobodynews.com They hope to determine if the cause of thewww.autobodynews.com accident was a speed factor or a mechanical problem. Chief Strow added that the vehicle, which Woodard had been driving at the time of the incident, had been the taken to Woodard (since heSee works at N an auto body shop) to be checked out. He said that Woodard had not done anything to the car, including the www.autobodyn wheel, which came off of the vehicle, prior to taking it for a test drive. Strow said the tire did not explode and was intact on the wheel. A memorial was held for James Sandquist at Knoff Funeral Home in Williston at 4 p.m., Thursday, March 6. To advertise His mother requested that in lieu call Sean Hartman at:to the of flowers, donations be made 800-699-8251 American Diabetes or the American Heart Association. e-mail:
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 35
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Historical Snapshot
—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.
20 Years Ago In The Collision Repair Industry (April 1994) with John Yoswick
(Retired Automotive Service AssociaBob Matejzel of the CIC Estition lobbyist Don) Randall told the mating Committee said his group has group that current antitrust laws are identified an initial list of about a with Chasidy Rae Sisk strangling collision repairers by giving dozen procedures that it believes the insurers an unfair advantage to meet estimating systems should automatiand to set policy language and contract cally remind users about. As an examdefinitions. In essence, he said, insurple, Matejzel said that if replacement ers have the ability to set market prices of a lower control arm or other frontwhile collision repairers do not. end suspension part is entered on an “Our systemwith is control losses Rae – estimate, Chasidy Sisk the system should in some which sounds like a pretty good idea,” way prompt the estimator to also inRandall said. “But that system is de- clude an alignment on the estimate. stroying the free enterprise system in Matejzel said the industry inforthis state.” mation providers Insurance policies, he said, are are focusing much laden with loopholes that give insurers of their efforts this the opportunity to change a $100 deyear on Y2K comwith Chasidy Rae Sisk ductible into one costing much more. pliance issues. But “In the event of a loss, ‘We will he said his commake you whole,’ but who decides mittee – which inwhat is whole,” Randall said. “You cludes insurers and Bob Matejzel have a variable. If you take the car to shops – will conthe shop of yourwith choice,Chasidy and it isn’t Raetinue Siskto meet with the estimating sysone they choose, they may say to you, tem providers to discuss these changes ‘You just pay the difference between throughout the year. the one you picked and the one we “If you’d been at one of this compicked.’ They may also say, ‘We don’t mittee’s meetings, you’d have actually pay for…’ or “It is not customary…” seen a group of repairers and insurers or ‘It is not usualwith and ordinary.’ They Chasidy Raestand Sisk up and face the information are now engaging in ‘dancing around providers and say with one voice, ‘This the contract.’” is what we want,’” said CIC Chairman Randall railed against the current Dale Delmege of the committee’s meetdirect repair programs, saying they ings earlier this year. “That was a magic breed corruption and cheating. moment in this industry.” “It’s wrong with and it Chasidy ought to be Linda Holcomb said the CIC Rae Sisk stopped,” he said. “But it will not stop Write It Right Committee’s discusuntil this industry gets organized.” sions with the estimating system – from coverage of a forum in providers has also focused on the need Portland, Ore., sponsored by Fairness to make the systems easier to use. in Auto Insurance Regulations (FAIR) “Our estimators are really spending a lot of time writing estimates and we’d with Chasidy Sisk to see that done quicker,” she said. 15 years ago in the collision repair Raelike – as reported in Autobody News industry (April 1999) Could the computerized estimating systems be improved to improve the ease 10 years ago in the collision repair and accuracy of estimating? Three Colindustry (April 2004) lision Industry Conference (CIC) comA videotape of an interview with one Chasidy Raevehicle Sisk owner about his experience mittees continuedwith exploring this issue at the CIC meeting in Denver in April. with an auto claim generated some
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discussion when shown at the Collision Industry Conference (CIC) in Nashville largely because of who the vehicle owner is: Joe Maxwell, the lieutenant governor of Missouri. “The thing I was most amazed by was how quickly I was contacted by [the other driver’s] insurance company, which almost immediately called me and said they already had the check in the mail to pay for my automobile,” Maxwell said. “I asked ‘How did you even know how much damage was done?’ They said, ‘Well, from the report.’ So I was offered a settlement before anybody even viewed the damage to the vehicle.” Maxwell said that while the insurance company representatives were pleasant and that he never felt harassed, they did refer him to a shop in Columbia, Missouri, 45 miles away. When he told the insurer the first check they sent would not cover the cost of repairs, they made an appointment to send someone out to look at the vehicle at his office. Maxwell doesn’t know if that happened. The shop received a revised estimate – still insufficient to cover the cost of repairs – but Maxwell said the adjuster never contacted him. “They claim the guy came and viewed the car, but he never came into the building, never jacked the vehicle up,” Maxwell said. “The car was parallel parked on the street and the damage was on the driver’s door side so the guy would have had to lay down on the street to look under the car, which wouldn’t have been safe. And clearly without opening the door, which was locked, they could not have seen all the damage. So that troubled me some.” Maxwell said he’s concerned that many people in his situation would have accepted that first check and “in doing so accept settlement on the claim and then discover it wasn’t enough to have a professional, quality job done.”
Auto Industry Champion, John Dingell (D), to Retire Michigan Democrat, John Dingell, an ardent advocate of the auto industry who has held his seat in Congress since 1955—longer than any other person in history—said that he will retire from the House of Representatives, a senior House Democratic aide said.
Dingell first entered Congress to finish his late father’s term and went on to serve nearly six decades. “I’m not going to be carried out feet first,” Dingell, 87, told The Detroit News. “I don’t want people to say I stayed too long.” Dingell said that he will not seek
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36 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
with Ed Attanasio
re-election in November 2014. In his heyday, Dingell wielded power as chairman of the House Energy and Commerce Committee and has shaped major laws for cleaner air and water, protecting endangered species, and providing health care for poor children.
He said he’s also concerned about insurers steering work or owning shops. “The idea of having an insurance company that would control where I repaired my car is kind of like having a fox watch the chicken house,” he said. “You may wind up with less chickens.” – as reported in Autobody News
5 years ago in the collision repair industry (April 2009) Under a settlement agreement reached last week, LKQ Corp. will be the only company allowed to sell certain nonOEM collision parts for Ford vehicles. The non-OEM parts involved are those designed to replace parts for which Ford owns design patents. As part of the agreement, LKQ will pay Ford a royalty fee for each part sold, and has agreed not to challenge the validity of Ford’s design patents during the term of the agreement (which extends until October 2011 but may be renewed). Other details of the agreement were not disclosed. Ford said the settlement “does not endorse the quality or use of non-OEM replacement parts sold by LKQ Corp.” The agreement ends two legal battles Ford has waged to protect its design patents on collision parts for its F-150 pickup and Mustang. It also is likely to split the non-OEM parts industry which has been working as the “Quality Parts Coalition” to limit automakers’ rights to hold design patents on collision parts. – As reported in CRASH Network (www.CrashNetwork.com), April, 2009. LKQ currently faces a lawsuit from Chrysler over the sale of parts that the automaker claims violate its design patents. The Quality Parts Coalition continues to back proposed federal legislation that would slash (from 14 years to just 30 months) the time that automakers can use design patents to prevent other companies from producing replacement crash parts. Dingell also expressed disappointment with Congress. “I find serving in the House to be obnoxious,” he told The Detroit News. “It’s become very hard because of the acrimony and bitterness, both in Congress and in the streets.”
Social Media for Shops with Ed Attanasio
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Louisiana Shop Owner Uses Twitter to Survey Other Shops in Real Time A Louisiana body shop owner saw his nies over what they will and won’t daughter using Twitter to survey her pay for. But, rather than getting mad, friends on an important social matter, he’s now using the social media site to and a light bulb went off in his head. query other shops about what is and withrepeatedly Ed Attanasio He was fuming about hav- isn’t being paid for elsewhere. ing to wrestle with insurance compaAbel Cantrelle, 49, is the owner of Advantage Collision Center in Houma, LA. He recently purchased a 40-inch smart television and hung it on the wall it in his reception area in his shop where both customers and insurance adjusters can see it. But, they’re not watching The View or Dr. Phil. What they’re seeing is a real-time feed of Cantrelle’s Twitter account, so that when insurers deny anything for any reason, he can tweet the details to shop owners and companies like CCC and Mitchell to get Abel Cantrelle saw his 14-year-old daughter Ashley their immediate feedback. tweeting one day and came up with the idea of using The story begins late last Twitter to survey other shops on repair compensation in real time year, when Cantrelle got
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wind of a new trade association that “It freaks them out, to be honest. was in its infancy, he explained. “Back Mitchell and CCC are also on Twitter, in December, my paint rep walked into so they can answer the question too, if our shop and asked me if I was going to they want to. I want them on there, bebe attending a meeting of the new cause that way they’re accountable as Louisiana Collision Industry Associawell. The repair procedures are right tion (LaCIA) and I told him I hadn’t there listed on CCC and Mitchell, so if heard about it. So, on December 5, I it’s there, it should be paid for.” walked into their meeting in Baton Cantrelle used to have several Rouge and I was surprised to see over DRPs, but no more, he explained. “I’m 200 people there. In my experience, done with it and now they’re steering people in this industry tend to work against each other, but when I walked into that room and listened to what everyone said, a light bulb went on in my head. Hey, a lot of us are in the same boat, I thought!” After the LaCIA’s January meeting, there was a question and answer session and that’s when Cantrelle shared his brilliant idea with The whole shop is on Twitter the membership in attendance. “After us away to other shops,” he said. “I seeing my 14-year-old daughter (Ash- don’t think they’re happy with the ley) on her cell phone texting her Twitter thing and I’m certain that they friends, I realized that we can use this do not love the idea of it all being dissocial media to help the organization played on a TV in my front office. It’s and each other,” he said. “All these also gaining momentum, because we kids now are on Facebook, Instagram now have more than 100 followers on and Twitter every day communicating Twitter and body shops are joining with [their peer group], so why can’t every day. There are now folks from body shops do the same thing?” the United Kingdom and all over the Cantrelle is not a techie and country that have joined us and I’m assurely not a social media expert, but tonished by all the people that are he knows that communication and going through the same thing and renetworking can be powerful if used ally care.” properly, he said. “It’s all about comAlysia Hanks is the executive dimunicating with the tools we’ve got. rector at LaCIA and an administrator I remember way back when they at Lakeway Collision Center in Manstarted telling us about personal deville, LA. She strongly believes that computers and programs like CCC Cantrelle’s use of Twitter is an ingenand Mitchell. Lots of us didn’t know ious and perfectly timed idea, for anything about computers and now many reasons. “I’m all for using sothey’re in front of us every day. We cial media, because it’s a great way to can go to Twitter and communicate keep connected to our members, other back and forth and get answers right body shops throughout the country away—at our fingertips.” and other state associations,” she said. Cantrelle is using Twitter to call “We always want to be networking, so out insurance adjusters that want to that we know what’s out there and be deny when it comes to repair processes ready for the next thing. We talked to they don’t want to reimburse. “If an inother state associations and one of the surance company comes in here now main problems they encountered was and says we don’t pay for this or that, a lack of communication, so things all I have to do is say let’s stop right like Facebook and Twitter can keep us here and ask these shops in America in the loop.” about whether they ask for this supHanks appreciates the transplement or not,” Cantrelle said. parency and accountability of the way
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 37
Cantrelle is using Twitter. “We’re taking to it the insurance companies, because it’s been too long,” she said. “We’re not doing this to start a fight and we’re not intending to start a lawsuit. We just want the body shops in this state to know that we’re here, to work together and make a better business environment for all of us.” A man on a mission, Cantrelle wants body shops at a national level to get involved in what he calls, “this Twitter thing.” “If we could get, say, 800 to 1,000 shops on this thing,” Cantrelle said, “Well, now, we would have something really special. Since I don’t have any DRPs, I’m not afraid of telling the truth. One of my first tweets was ‘Enough is enough—I’m tired of working for free,’ and everybody loved it.” “Last week, we did a car and they paid me for the seam sealer and every single process I had to do. I tell any insurer if there is a process I’m not doing on a vehicle, I will pay you back. I will prove everything I’m doing. We’re taking pictures of every single thing now.” “One big insurer told me some of these shops in the backyard will charge for this and this, and I say do your job and go catch them and find
them not doing those things and make them pay you back. I recently wrote a car for $5,040 and State Farm wrote an estimate for $2,800, threw it on my desk and ran. I made them come back out, rewrite it and go over it with me and they ended up writing the same estimate as me.” By telling the collision world about his new communication tool and process, Cantrelle hopes other shops will join Twitter and realize it’s a great way to know what other shops in other parts of the country are dealing with. “If everyone [joined Twitter], the screen would be popping and jumping,” Cantrelle says. But when you’re in Mississippi and I can tweet, ‘I have a Progressive guy [for example] here and he’s telling me shops aren’t charging for this or that,’ and then ask, ‘Are you charging for this?’ and they say, ‘Yes,’ I can look at the Progressive guy and say, ‘Well, there’s your answer.’ “United we stand, divided we fall. If people don’t start joining hands, it’s going to get bad,” said Cantrelle. To join Cantrelle’s Twitter feed go to #advantageccinc. “Hop onboard and ask me a question,” he said. “If I can’t answer it, somebody will be able to and that’s the beauty of it!”
‘Kiss Bandits’ Vandalize Cars at Body Shop in Saddle Brook, NJ, Doing $40K in Damage
On March 8, 2014, a group of four worse shape than when they dropped wearing masks resembling them off for repairs. Karol said that he to vandals this Southwest Edition? those of the band Kiss did an esti- has filed an insurance claim and is remated $40,000 worth of damage to pairing the cars that were damaged. about two dozen vehicles parked the autobodynews.com Maaco Auto Body Shop in Saddle Brook, NJ. The group can be seen on surveillance video jumping on hoods, spraynessingwith your business with graffiti, andPromote smashing in windows. featuring article Police said thatantheexclusive suspects appear to featuring be men in their teens or early 20s. services. your products orAservices. surveillance camera sitting above a Mercedes caught the men as they set to work, destroying it using metal pipes, So far, there is no motive in the shovels, spray paint, and a fire extincase and police are asking for help in guisher. The MercedesCall is now in police or details! for details!identifying the masked men, hoping custody as they process it for prints. to make this performance their last. 251 Shop owner, Walter 800-699-8251 Karol, said Call the Saddle Brook Police Detecthat he had to tell many of his cus- tive Bureau at 1-201-587-2940 with tomers that their vehicles were now in any information.
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CARSTAR to Address Industry Trends at Colorado Events
CARSTAR Auto Body Repair Experts will host two collision industry events in Colorado that will allow body shop owners to learn about the critical business issues and trends impacting their businesses. CARSTAR said the events, called Collision Industry Night, will be lead by a group of the industry’s top professionals. The events will feature the following speakers and topics of discussion:
■ Kurtis Keala of Mitchell International—Mobile Estimating Technology ■ Ryan Cassella of Hertz—Car Rental Technology ■ Steve Witt of BASF—Repair Planning ■ Robert Foster of 3M—The Impact of Technology for Future Vehicles ■ Chris Johns of FinishMaster— Collision Industry Overview ■ David Byers of CARSTAR—Insurance Industry Trends “When you’re an independent body shop owner, it’s hard to take the time to step away from your business to look at longer-range changes and developments in the industry,” said
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Mark Algie, business development manager for 3M Automotive Aftermarket. “This Collision Industry Night provides a great way to understand how the changing marketplace will impact your business, and plan now for those changes.” The first event will take place March 4 from 11:30 a.m. to 1 p.m. at the Embassy Suites Denver-Tech Center in Centennial, CO. The second event will take place March 5 from 11:30 a.m. to 1 p.m. at the Sky Sox Security Service Field in Colorado Springs, CO. “For any body shop owner who is looking to grow their business, expand to an additional location, or transition their ownership to the next generation, this is an excellent event,” said David Byers, CEO of CARSTAR. “We’re joining with the top professionals in the collision industry to bring these events to local markets so owners have the opportunity to explore the major issues, trends and solutions in our changing industry.” Body shop owners interested in participating can contact Mike Davids at mdavids@carstar.com.
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40 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com