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CIC Continues Discussion of Alternatives to Existing Paint and Materials Calculations by John Yoswick

A consultant whose study indicated that the vast majority of the industry finds the current way that paint and materials compensation is calculated is a poor methodology is now saying more accurate and fair calculation systems exist, are being used by some shops and are being accepted by some insurance companies. “The most important message here is that by properly presenting itemization and documentation using a paint material calculation system, we are actually able to resolve these

conflicts,” consultant Steve Lanza of Richfield Associates said at the Collision Industry Conference (CIC) held in Phoenix in April. Lanza’s firm in 2012 released its findings that compensation for paint and materials has not kept pace with increases in the costs of these products, and that 64 out of 68 industry participants interviewed think the current way paint and materials compensation is calculated is a poor methodology. Only four people (including representatives of three repairer operations and one estimating system provider) rated See Paint and Materials, Page 24

Florida Shop Owner Files 53 Lawsuits to Counter Short Pays by Insurers

See 53 Lawsuits, Page 3

P.O. BOX 1516, CARLSBAD, CA 92018

In Delray Beach, FL, Eddie Quintela, 42, owner and operator of Collision Concepts, recently spent $10,450 on filing fees for 53 separate lawsuits against insurers for short pays. Quintela says he’s not worried about the money. He Eddie Quintela will recoup court costs and attorney’s fees when he wins his cases, plus recover the compensation he should have received in the first place for properly repairing

the vehicles. To date, he and his customers have won every single case they’ve filed against insurers. According to Quintela, his plan to get insurers to pay for underpayments is pretty simple and easy to do. “If we cannot get an agreed price with an insurance company to properly repair a vehicle, we engage the customer,” said Quintela. “We give our customers a couple of options: 1) they can pay the difference, or 2) the customer can sign an Assignment of Benefits or Assignment of Proceeds and I will go after the insurance company on their behalf. I’ll step into

Change Service Requested

by Melanie Anderson

VOL. 1 ISSUE 10 JUNE 2013

NMBSA Sponsored Legislation Introduced in Michigan House of Representatives Sue Allor, board member with the Northern Michigan Body Shop Association, recently announced big news to her group: legislation the association has been working on for the past two years was introduced in the Michigan House of Representatives on April 30. HB 4635 is focused on consumer protection and safety to ensure that repair of a damaged vehicle is performed according to manufacturer specifications and guidelines without interference and/or control of the reSue Allor pair process by an insurer focused on reducing costs through the use of parts not approved

by the vehicle manufacturer. Automotive manufacturers have indicated use of parts not specified by the manufacturer could result in serious harm to the vehicle occupants in the event of a crash. “A huge ‘thank you’ goes out to Representative Greg MacMaster, sponsor of this bill, along with Representatives Peter Pettalia, Anthony G. Forlini, Rick Outman, Michael D. McCready, Al Pscholka, and Dale W. Zorn who are co-sponsors,” said Allor. “This is just the start,” added Allor. “It’s taken us quite a while to get to this point and there is much more work to do.” Allor urges the NMBSA membership to talk to their friends and relatives about the bill and the benefits it has to the consumer. See NMBSA Legislation, Page 28

DEG Received 1,300 Inquiries in 2012, Up 30%, Expects 1,500 Claims This Year In 2012, the Database Enhancement Gateway (DEG) received more than 1,300 inquiries, an increase of approximately 30% from the previous two years, DEG Administrator Arthur Harris reported. This year, DEG expects to receive more than 1,500 inquiries. The DEG was built to help address individual estimating database issues on specific vehicles. As a free service, those who use estimate systems may submit inquiries to the DEG when they encounter questions or concerns relative to estimating data. The DEG acts as a go-between for shops and information providers— CCC, Mitchell and Audatex—to improve the quality and accuracy of the data used to generate collision repair estimates and to provide feedback to information providers. As an advocate, the DEG will process all submitted database inquiries to information providers until

a conclusion is reached. All issues and responses are posted on the website and visible to all. Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification. Upon receiving an inquiry, Harris said the question is posted on their website and forwarded to the information provider within 24 hours. Many inquiries are resolved and responded to within 2-3 days, depending on the complexity of the inquiry and responsiveness of the information provider. Response times are posted directly on the website database for clear transparency into the process times for each of the three information providers. The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, HarSee DEG Received, Page 19

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio: Google+ Is an Emerging Star for Media-Savvy Body Shops . . . . . . . . 18 Franklin: The Power of Persistence in Marketing. . . . . . . . . . . . . . . . . . . . . 30

NATIONAL 16 Arrested in Multi-State Car Theft and Fraud Conspiracy, Dealerships and Individuals Targeted . . . . . . . . . . . . . . 16 ABRA Awarded Farmers MSO of the Year Award . . . . . . . . . . . . . . . . . . . . . . . . . 10 ABRA Has Acquired 23 WA Precision

Collision Centers . . . . . . . . . . . . . . . . . 39 AkzoNobel Opens its FIT Awards for Nominations . . . . . . . . . . . . . . . . . . . . 17 Allstate’s Profit Dips 7.4%, Expands Esurance . . . . . . . . . . . . . . . . . . . . . . . 39 AMI Accepting Applications for Cosette/Westerlund Award . . . . . . . . . . 36 ASA Business Meeting Emphasizes Unity, Transparency, Inclusion & Collaboration . 36 Automaker, OEM and Recall News . . . . . . 22 Avery Names New CIC Standards Cmte Leaders . . . . . . . . . . . . . . . . . . . 33 BLS Stats Show Increase in Number of Body Shops. . . . . . . . . . . . . . . . . . . 19 CARFAX Hit by $50M Federal Lawsuit Filed by 120 Automotive Dealerships . . 39 Carlyle Group to Sell 50,000 Share Stake in Hertz . . . . . . . . . . . . . . . . . . . . . . . . 36 Car-O-Liner Names Peter Richardson to Management . . . . . . . . . . . . . . . . . . 25 CARSTAR to Support “Hire Our Heroes” Campaign . . . . . . . . . . . . . . . . . . . . . . 36 CIC Attendees Overwhelmingly Support BMS Data Standard Over EMS . . . . . . 38 CIC Continues Discussion of Alternatives to Existing Paint and Materials Calculations . 1 Collision Repair Education Foundation and Partners Announce First of $300,000 in Student Scholarships . . . . . . . . . . . . 37 Colorado Auto Dealers Find Support in State Legislature . . . . . . . . . . . . . . . . . 36 CREF Seeks Employers For Summer Students . . . . . . . . . . . . . . . . 39 Dan Risley Appointed Interim Executive Director of ASA, Outlines ASA Position on PartsTrader . . . . . . . . . . . . . . . . . . . 35 DEG Received 1,300 Inquiries in 2012, Up 30% from Previous Years . . . . . . . . . 1 First Southern Automotive Repair Industry Conference Held in Biloxi, MI, April 26–27 . . . . . . . . . . . . . . . . . . . . . 26 Florida Shop Owner Files 53 Lawsuits to Counter Short Pays by Insurers . . . . . . . 1 Hermanek and Ricciotti Join CREF Board of Trustees . . . . . . . . . . . . . . . . 39 I-CAR Announces Keynote Speakers Reginald Modlin and John McElroy for Boston July Meeting . . . . . . . . . . . . 31 Industry Demonstrates Early Confidence in SEMA Show with Six Percent Exhibitor Increase . . . . . . . . . . . . . . . . . . . . . . . 32 Mitchell ITR Says Collision Parts Index Declined Last Year For First Time in Ten Years. . . . . . . . . . . . . . . . . . . . . . . 33 Progressive Sues Other Insurers For Alleged Patent Infringement . . . . . . . . . 32 Rhode Island Industry Attorney: “Body Shops Suffer From an Image Problem”. 34 Safelite Named in New Lawsuit Alleging Windshield Separation Due to Poor Installation . . . . . . . . . . . . . . . . . . . . . . 31 SEMA Show Enhances Services for Collision Repair Market, Adds Up to 20,000 Sq. Ft. for 2013 . . . . . . . . . . 32 Stacy Bartnik Joins Team PRP as Executive Director . . . . . . . . . . . . . . . . 32 U.S. Supreme Court Rules Against Towing Company . . . . . . . . . . . . . . . . . 34 uParts Gets $2M in Financing . . . . . . . . . 38 VeriFacts & Airbag Solutions Create Restraint Systems Clinic . . . . . . . . . . . 38

their shoes. Every customer I’ve discussed this with agrees to take the second option.” Currently, Quintela has 80 customers he is representing in court. In one week alone, he filed 53 cases. The insurance companies he’s currently in litigation with include State Farm, GEICO, USAA, Travelers, Bristol West, Infinity and others. Collision Concepts, a 10,000square-foot shop, currently has seven DRPs. Quintela and his staff of 11 work on 80–100 vehicles per month. He’s been in business since 2002. Prior to owning his shop, Quintela was an estimator for State Farm from 1994–2002. His family owned body shops while he was growing up. Over the past year, Quintela—inspired by shop owner Ray Gunder of Lakeland, FL—has been taking action against insurance companies on behalf of his customers. “The insurance companies always try to steer my customers away from me anyway, no matter what,

even if I wasn’t doing this. Now that I have to fight to keep my customer to begin with, I feel like I don’t have any reason why I shouldn’t go after the insurance companies for everything they owe,” said Quintela. The business of making insurers pay what body shops feel they are owed is well worth the effort, time and expense, said Quintela. “If you were to look at this effort just as a business itself, the return on investment is great because not only am I recovering the money I should have been paid in the beginning (for properly repairing a vehicle), I’m recovering my court costs and my attorney’s fees as well. At the end of the day, I’ve recovered my investment, plus I got paid what I should have got paid to begin with.” All he said he’s spending is time, and after one or two cases, the legal steps became easy and are hardly time consuming. “Once you do one or two cases, it becomes really easy because you know how it works. It’s very routine,” said Quintela. “The file gets put on my desk once the work begins on the car See 53 Lawsuits, Page 25

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

Great Lakes

REGIONAL 1Collision Adds Illinois Shop . . . . . . . . . . 10 AASP-MN Annual Meeting & Convention Held in Plymouth . . . . . . . . . . . . . . . . . . 9 AASP-MN Awards $17,000 in Scholarships to Minnesota Post-Secondary Students . 8 AASP-MN Golf Day June 18. . . . . . . . . . . 10 AASP-MN Hosted Safety Compliance Workshop . . . . . . . . . . . . . . . . . . . . . . . 4 ABRA Grows in Michigan . . . . . . . . . . . . . . 8 ASA Michigan Launches New Member-Only Community Website; Revamps Main Site. 10 Church Brothers Collision Paired with Indiana Pacers . . . . . . . . . . . . . . . . . . . . 4 Collex Collision Opens Technical Training Center in Sterling Heights, Michigan . . . . 6 Ford to Donate $1 Million . . . . . . . . . . . . . 10 Former Lafayette Glass Employee Pleads Guilty to Embezzlement Charges . . . . . 12 Freer Auto Body Sponsors Kid Meals Food Drive in IL . . . . . . . . . . . . . . . . . . . 4 IABA Invites Ray Gunder to Hit the Road in Indiana. . . . . . . . . . . . . . . . . . . . . . . . 8 Illinois Body Shop to Close for Subway Sandwiches. . . . . . . . . . . . . . . . . . . . . . 4 MI Student to Win Free Car for Responsible Driving . . . . . . . . . . . . . . . 14 Minnesota Senate Passes New Paint, Materials Tax Law . . . . . . . . . . . . . . . . 38 Nagy’s Collision in Ohio Earn Honda ProFirst Cert . . . . . . . . . . . . . . . . . . . . . 4 NMBSA Sponsored Legislation Introduced in Michigan House of Representatives . . 1 Ogg Reappointed to Board . . . . . . . . . . . . . 4 Ohio Body Shop Owner Convicted of Stealing Custom Cars, Even From a County Prosecutor . . . . . . . . . . . . . . . 6 Ohio Police Tackle Suspect Running from Shop Break-In . . . . . . . . . . . . . . . . 6 Paint Materials: Band-Aids Won’t Help—It Needs Stitches! . . . . . . . . . . . . . . . . . . 14 Pro Class Auto Body Sponsors Carp Competition in Illinois. . . . . . . . . . . . . . 10 Rexford Graham Obituary. . . . . . . . . . . . . . 8 Safelite Opens Chicago Store . . . . . . . . . . 10 Safelite Receives Tax Breaks for More Jobs in Ohio . . . . . . . . . . . . . . . . . . . . 15 State of Disaster Declared for 19 Counties in MI . . . . . . . . . . . . . . . . . . . 12 Subaru to Expand Indiana Plant with Impreza Cars . . . . . . . . . . . . . . . . . . . . 12 WI Body Shop Repairs 21-Foot Tall Logger Statue . . . . . . . . . . . . . . . . . . . 16 Wisconsin Firefighters Train with Jaws of Life. . . . . . . . . . . . . . . . . . . . . 17 Wisconsin Student Makes Local History and Wins SkillsUSA Two Years in a Row. 15

53 Lawsuits

Indexof Advertisers

Contents

Continued from Cover

Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2013 Adamantine Media LLC.

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Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Audi Wholesale Parts Dealers . . . . 36 Autobody Supply Co., Inc . . . . . . . 18 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 33 Car-Part Pro. . . . . . . . . . . . . . . . . . . 23 CCC Information Services . . . . . . . . 7 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 11 Champion Pneumatic . . . . . . . . . . . 19 Chief Automotive. . . . . . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 38 CSS USA, Inc . . . . . . . . . . . . . . . . . 31 Equalizer . . . . . . . . . . . . . . . . . . . . . . 6 Erhard BMW of Bloomfield Hills . . . 14 Erhard BMW of Farmington Hills . . 14 Ford Wholesale Parts Dealers . . . . 39 Garmat . . . . . . . . . . . . . . . . . . . . . . 10 GM Wholesale Parts Dealers . . . . . 30 Graham Auto Mall . . . . . . . . . . . . . . 16 Herkules . . . . . . . . . . . . . . . . . . . . . 25 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 20-21 Hyundai Wholesale Parts Dealers . 28

Infiniti of Naperville . . . . . . . . . . . . . 12 Jake Sweeney BMW . . . . . . . . . . . . 24 Jake Sweeney Chevrolet . . . . . . . . 24 KBS Coatings . . . . . . . . . . . . . . . . . . 4 Laurel Auto Group of Westmont . . . 29 Lexus Wholesale Parts Dealers . . . 35 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Mazda Wholesale Parts Dealers . . . 33 Milosch’s Palace Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 13 MOPAR Wholesale Parts Dealers . . 27 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 37 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Preval Spray Gun . . . . . . . . . . . . . . 40 Rare Parts, Inc. . . . . . . . . . . . . . . . . . 8 SATA Spray Equipment . . . . . . . . . 15 Subaru Wholesale Parts Dealers . . 37 Toyota of Grand Rapids . . . . . . . . . . 9 Toyota Wholesale Parts Dealers . . . 32 VIM Tools. . . . . . . . . . . . . . . . . . . . . 34 Volkswagen Wholesale Parts Dealers. 35

www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 3

OH’s Nagy’s Collision Gets Honda ProFirst Certification

AASP-MN Hosted Safety Compliance Workshop

Nagy’s Collision Specialists in Wooster, OH, recently announced that its two locations have been certified as Honda ProFirst facilities. Honda Pro Shops, also known as ProFirst, are recognized by Honda/Acura as a preferred repair shop for their vehicles. The purpose of ProFirst is to promote the correct, complete and safe repair of Honda and Acura vehicles and to provide support to those collision repair businesses who have demonstrated a commitment to a high level of customer care and satisfaction. There are a few requirements that shops must fulfill in order to qualify for the ProFirst program. Shops must conduct a certain minimum number of transactions using OEConnection’s CollisionLink software, they must be designated as I-CAR Gold Class Professionals businesses and have at least one technician who has completed I-CAR’s Collision Repair for Honda and Acura Vehicles course. Shops that participate with the ProFirst program receive free access to Honda and Acura parts catalogs and bulletins, access to service and repair information, and placement on the company’s consumer website.

AASP-MN hosted the “2013 Safety Compliance: AWAIR Workshop” at its Roseville offices on May 16. As of June 10, 2013, all automotive repair facilities—collision and mechanical—are required to have “A Workplace Accident & Injury Reduction” (AWAIR) program. The purpose of the program was to help shop owners create a safer workplace by providing a mechanism for identifying and correcting hazards. An AWAIR program provides the framework for an effective safety program. The workshop reviewed major hazards in the automotive repair industry and helped attendees with an assessment of their shop and shop practices. The shop assessment explained what to look for and what is most important in terms of potential injuries, costs to the shop and costs of a penalty or OSHA citation. Representatives from Complete Health Environmental and Safety Services (CHESS) helped attendees develop their own program. For additional information, contact the AASP-MN office at (612) 623-1110, 800-852-9071 or at www.aaspmn.org.

Illinois Body Shop to Close for Subway Franchise

Ogg Reappointed to Board

A gas station in Bucktown, IL, was approved for a business permit to completely renovate the space and eliminate the body shop located at 2357 W. Fullerton Ave. The gas station owner confirmed a structural overhaul will start soon to expand its market selections, get rid of its auto body shop and add a Subway restaurant. The BP gas station is slated for a complete makeover estimated to cost roughly $80,000, according to the Chicago business permit. BP’s owner said he doesn’t plan to increase the footprint of the building, but remove the auto body shop on the east side of the business completely. Crews will then have room to make the food market larger and add the Subway restaurant. Construction is estimated to take about two months to complete.

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Ohio Governor John Kasich recently released a list of state appointments, including that of former state representative William L. Ogg, of Wheelersburg, who was reappointed to the Board of Motor Vehicle Collision Repair Registration for a term beginning April 23, 2013, and ending Jan. 1, 2016, the Portsmouth Daily Times reported. “It’s a small board and I’m the only public member. The rest are owners of repair shops, paint shops, window tinting shops, things of that nature. They are all users of the business,” Ogg said. “What it’s for mainly is to keep these shops from operating on stolen parts and used parts, or where they’d steal cars and chop them up. It prevents that, and it also helps the customer be assured that they’re getting a professional job.” Ogg, a democrat, began his political career in 1978 as a member of Portsmouth City Council and then served two-and-a-half terms as Scioto County Commissioner. He represented Ohio’s 89th District from 1995 until Dec. 31, 2002. After leaving the State House, he served five years on the Ohio Elections Commission and then was appointed to the State Medical Board.

4 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

Church Brothers Collision Paired with Indiana Pacers

Church Brothers Collision Repair in Indianapolis recently teamed up with the Indiana Pacers, the NBA’s Central Division champions, to benefit a local community center with a $5,000 donation. The collision repair firm gave $5,000 to Concord Neighborhood Center during pre-game ceremonies at Bankers Life Fieldhouse. The check represented the full amount pledged by Church Brothers prior to the start of the season to benefit Concord, and was tied to the number of Pacers’ assists throughout the year. Ted McClintic, Church Brothers’ president, presented the check at center court with Boomer, the Pacers Panther. Concord Neighborhood Center serves residents on Indianapolis’ Near Southside, close to Church Brothers’ downtown Indianapolis shop. The center offers a wide variety of programs for preschoolers through adults. Church Brothers will be a sponsor this spring and summer of the WNBA Champion Indiana Fever– and Concord again will benefit from a community initiative between Church Brothers and the Fever.

Freer Auto Body Sponsors Kid Meals Food Drive in IL

Freer Auto Body in Godfrey, IL, recently sponsored Operation Kid Meals. Margaret Freer, one of the Freer Auto Body owners, said the program was started because they thought there was a need to feed children during the summer. The sixth annual summer food drive ran May 3-10, collecting for the Crisis Food Center in Alton, IL. Food items needed included peanut butter and jelly, macaroni and cheese, spaghetti, ravioli, cereal, apple sauce, chicken noodle soup, crackers, fruit roll-ups, canned fruit and pudding. “We collect kid-friendly food items that kids can prepare themselves while home alone,” Freer said. “The need in our area is greater now than it ever has been. We feel an obligation to help our community, and children have always held a special place in our hearts.” Susan Jolley, executive director of Crisis Food Center, said Margaret Freer and her company and the other businesses’ food item efforts are a great reason that the summer program for children has not had to be cut at Crisis Food Center.

“The last thing you do to a car is the first thing you see.” — Sam Foose (Chip’s dad)

My dad taught me to demand the very best of everything—from the wheels on up to the finish. Fortunately, BASF shares our passion and delivers. World-class finishes, outstanding durability and industry-leading color tools all back up that For more information, scan the QR code with claim. Like me, BASF knows that you never get your smartphone. If you do not have a QR a second chance to make a first impression. code app, it can be downloaded for free. To learn more, visit basfrefinish.com. © 2013 BASF Corporation

www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 5

Collex Collision Opens Technical Training Center in Sterling Heights, Michigan Collex Collision Experts recently opened its Technical Training Center in Sterling Heights, MI. All new Collex employees, including managers, estimators, parts specialists, customer-service representatives and detailers, will be trained at the 9,000square-foot facility.

Michelle McMahon, (center), Collex technical training manager; John Gagliano, Collex President; and far right, Rob Gagliano, Collex Chief Operating Officer

To kick-off the Technical Training Center’s grand opening, Collex hosted an open house on May 2. Unlike traditional vocational schools, the new Collex training center is believed to be the first of its kind to be created and operated by an independent collision repairer. The new Collex Technical Training Center ad-

dresses a critical need for trained collision repair professionals, according to Robert Gagliano, Collex Collision Experts chief operating officer. “Many technicians in the collision repair industry are getting older, and eventually there will be a mass exodus of highly qualified workers,” said Gagliano. “The industry needs to do a better job of introducing itself and getting new technicians interested in collision repair.” Employment of auto body and glass repairers in the United States is expected to grow more than 19% through the year 2020, according to the U. S. Bureau of Labor Statistics. That means upward of 32,000 new, well-paying positions will be created, along with many openings coming from existing workforce retirements or transfers to other fields. “We’re looking to have the new training center be a learning center for not only the Collex technician of tomorrow, but also to help the industry as a whole,” Gagliano says. “It can be for young people coming out of high school, or those looking to transition from another field of work entirely.” Michelle McMahon, Collex technical training manager, and her

Ohio Shop Owner Convicted of Aggravated Theft, Including from County Prosecutor

Keith Shellhouse, 46, owner of Independent Autobody in Shelby, OH, was convicted May 7 of aggravated theft, a third-degree felony, and theft of a motor vehicle, a fourth-degree felony, at the Richland County Courthouse. Shellhouse was arrested on April 11, 2012, under more than a dozen customer complaints from as far back as 2002, claiming that customers were swindled out of nearly $300,000 in payments for the restoration of their hot rods. Shellhouse will be sentenced on May 20. Gary Bishop, a Richland County assistant prosecutor, was one of several victims who reported losing thousands of dollars to Independent Autobody owner Keith Shellhouse. Bishop dropped his 1967 Mustang GT Fastback at Independent Autobody and Pro Restorations in August 2006 along with a $3,500 down payment. It was the first car he had ever owned, since the age of 16. “These weren’t just cars to many of us,” he said. “These were our dream cars. People were taking in their classic cars that meant the world to them, paying thousands, only to

have them set out in the weeds and exposed to the elements.” Because of Bishop’s position, the attorney general’s office was called in to handle the case. In December 2012, local officials say they were prompted by complaints from 17 customers who claimed that combined they lost more than $300,000. Richland County Sheriff’s Major Dale Fortney said there were more than 30 victims, but only 17 cases were brought to a grand jury. A number of other people have civil judgments outstanding against Shellhouse. Several victims reported that Shellhouse continually dodged their calls and visits. Bishop said he even volunteered in Shellhouse’s garage for months to speed up the process. “I was helping him on a daily basis, just hoping that eventually we’d get to mine,” he said. Bishop said he did finally get his car back, in worse condition than when he dropped it off, and now has it at a restoration shop. “I’m very happy with the outcome today,” Bishop said. “But a real professional would have never treated people the way Shellhouse did.”

6 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

staff will facilitate the training program, which includes continuing education classes. “With this new training center, Collex Collision Experts will bring a strong, hands-on mentoring approach,” says Gagliano. “It won’t be Bodyshop 101 right out of a manual; we’ll have many of our professionals—some with 20 or 30 years of experience—working side-by-side with our students to really understand the nuances of the business. We aim to see that our collision repair curriculum is

pretty extensive. In addition to our own classes, we’ll be partnering with some of the industry’s finest education sources, such as Sherwin-Williams Automotive Finishes and 3M.” For more information on Collex Collision Experts, visit www.collex.com, or call 1-888-4COLLEX.

Ohio Police Tackle Suspect Running from Shop Break-In

Columbus, OH, police tackled a man in order to arrest him because he was suspected of breaking into an auto body shop. A neighbor called around 3 a.m. to report that a man appeared to be breaking into cars at Genessee Auto Body Shop at Cleveland Ave. and Genessee Ave. in East Linden. When officers and a K9 arrived, they found the suspect had broken in through the fence and was hiding in one of the cars. The suspect eventually came out of the car on his own. He was surrounded by six officers but still tried to run. Officers tackled and arrested the suspect. No names are being released, and he has not yet been officially charged. The suspect did have a portable DVD player on him. No word on whether or not that was stolen in a separate incident.

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AASP-MN Awards $17,000 in Scholarships to Minnesota Post-Secondary Students The Alliance of Automotive Service Providers of Minnesota (AASP-MN) awarded $17,000 in scholarships to help post-secondary automotive students pay for tuition during the 2013-14 school year. The scholarships were in the amount of $1,000 per student and were made possible by a successful fundraising drive within the AASP-MN membership, as well as a generous donation from the Minnesota State I-CAR Committee. All recipients will be entering the second year of a NATEF-certified automotive program based in Minnesota. Congratulations to this year’s recipients: • DeAndre Adams, Hennepin Technical College, Brooklyn Park–Auto Body Collision Repair program • Cole Anderson, Ridgewater College, Willmar–Automotive Service Technology program • Eric Beranek, South Central College, North Mankato–Automotive Service Technology program • Kayla Berg, MN State College Southeast Technical, Winona–Automotive Service Technology program • Jorey Brazell, MN State Community & Technical College, Detroit

IABA Invites Ray Gunder to Hit the Road in Indiana

Ray Gunder has been invited by the Indiana Auto Body Association to share his legal journey with the state’s collision repairers. Tony Passwater, Executive Director for the Indiana Auto Body Association, has invited Ray to spend a week traveling with him around the state to share Ray’s legal journey with groups of collision repairers. The daily meetings will be held in the mornings and evenings throughout one week in July. “We are excited about getting Ray to come up here because shop owners need to see and hear from a shop owner just like themselves that can take back control of their independence, and not compromise their business’ future,” said Passwater. Ray said, “I’ve never been away from my business for such a long time but my son and daughter, along with our exceptional staff, will have things well in hand. I am usually accompanied by my wingmen, attorney Brent Geohagan and Barrett Smith of ADE, but this time I’ll be flying solo. I am proud and humbled to have been asked to share our legal journey with others and I hope my investment of time and resources will help others.”

Lakes–Automotive Service Technology program • Charles Brunschon, Century College, White Bear Lake–Automotive Service Technology program • Zachary Gamradt, St. Cloud Technical & Community College, St. Cloud–Auto Body Collision Repair program • Justin Hiltwein, MN State Community & Technical College, Moorhead – Automotive Service Technology program • Nicholas Lindemer, Century College, White Bear Lake–Automotive Service Technology program • Tanner Maus, St. Cloud Technical & Community College, St. Cloud– Auto Body Collision Repair program • Faron McCleary, MN State Community & Technical College, Detroit Lakes–Automotive Service Technology program • Zach Reisner, Hennepin Technical College, Brooklyn Park–Auto Body Collision Repair program • Benjamin Shiek, Dunwoody College of Technology, Minneapolis– Automotive Service Technology program • Jacob Sik, Hennepin Technical College, Eden Prairie–Auto Body Collision Repair program • Brian Smith, St. Cloud Technical &

ABRA Grows in Michigan

ABRA Auto Body & Glass added a new franchise collision repair shop location in Holland, MI. Previously known as Chrispell Auto Body Repair and independently owned by Nate Yonker, this is ABRA’s second location in Michigan. “We are committed to increasing our presence in the markets we serve and are fueled by an operational excellence philosophy that gives us a competitive edge,” said Tim Adelmann, executive vice president of business development for Brooklyn Center, MN-based ABRA. “Opening the Holland repair center is a tremendous opportunity to increase our presence in the Great Lakes region and provide a superior customer experience.” The company now operates a total of 173 collision repair centers throughout 17 U.S. states—49 independently owned franchises and 124 company-owned locations. “Our growth strategy is ambitious and we are laser-focused on our goals,” said Duane Rouse, president and CEO of ABRA. “We are in the process of delivering on our promise to better serve our customers and insurance partners across the country.”

8 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

Community College, St. Cloud–Automotive Service Technology program • Ryan Stenzel, Ridgewater College, Willmar–Auto Body Collision Repair program • Bryant Zahradnik, Dakota County Technical College, Rosemount–Auto Body Collision Repair program

Twenty-nine students from 12 schools applied for the scholarships. Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations. The scholarship awards are the centerpiece of AASP-MN’s Automotive Education Fund, which was established to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry. The Alliance of Automotive Service Providers of Minnesota (AASP-MN) is an association of independentlyowned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

Rexford Graham Passes

Rexford C. “Rex” Graham, 80, of Gladstone, MI, passed away May 3 at the Marquette General Hospital in Marquette. Rex was born Aug. 12, 1932, in Pontiac, MI, the son of Bert and Lillie (Lowes) Graham. He was raised on the family farm in Davisburg, MI. He later went on to work for Haskins-Rademacher Chevrolet where he worked in the auto body shop. In 1968, Rex relocated to Gladstone where he owned and operated the Kipling Bar until 1973 when he sold the business. He returned to the auto body repair business, working for Jerry’s Auto Sales in Escanaba and Fred Sebeck Auto Sales in Gladstone. He later owned and operated Mars Detail Shop in Gladstone until his retirement. Rex was a 25-year member of the Gladstone Post 71 Sons of the American Legion. In the 1950s and 1960s he raced Super Modified and Super Stock racecars in the ARCA circuit. Following his retirement, Rex and his wife Marlene served as campground hosts at Pete’s Lake Campground and later at the Au Train Campground. Funeral services were held May 6 in Gladstone. Burial was at the Rapid River Cemetery.

AASP-MN Annual Meeting & Convention Held in Plymouth AASP-MN held its Annual Meeting & Convention at the Crowne Plaza Minneapolis West in Plymouth on April 11-12. More than 250 area shop owners, vendors, presenters and industry supporters attended the event. Despite shaky weather, the event kicked off with the “Peer-to-Peer Roundtable & Networking Extravaganza.” For two hours, attendees met with fellow AASP-MN members in a revolving “roundtable” setting to discuss a variety of topics including ICAR’s new Professional Development Program, OSHA and EPA regulations, employee “perks” and incentives and reducing business operational costs. The topic-specific roundtables were followed by a round of “speed networking” in which participants met one-on-one with another member for three-minute sessions, then rotated to the next. Attendees also enjoyed a variety of other educational opportunities designed to strengthen their abilities in repair, marketing and employee care. Seminars included “What Employers Need to Know About Health Care Reform,” “Marketing on a Shoestring

Budget,” “GM GDS2,” “The Customer Connection,” “Ford IDS,” and “Making Change Stick.” The Happy Hour & Vendor Showcase allowed AASP-MN members to meet face-to-face with the convention’s many sponsors to check out new products and equipment or catch up with their favorite sales reps. Later that evening, attendees gathered at the Plymouth Playhouse for a buffet dinner followed by a performance of “Ring Of Fire,” an entertaining musical revue based on the life and music of Johnny Cash. On April 12, attendees were introduced to the 2013–2014 Board of Directors: president, Dan Sjolseth, Superior Service Center; secretary/treasurer Jerald Stiele, Hopkins Auto Body; immediate past president John Ritter, Jr., Highland Autostar; mechanical division director Tom Gleason, Pro-Tech Auto & Truck; collision division director Mike Cox, Ed’s Collision & Glass; collision seat Joyce Weinhandl, Northfield & Twin City Auto Body; and mechanical seats, Scott McClure, St. Paul Automotive and Greg

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Kasel, Downtown Tire & Auto. The association recognized a number of members during the luncheon who have gone above and beyond in supporting their industry this past year. Bill Sauer of IDENTIFIX was presented with a special Lifetime Service Award for his many years of volunteerism and service to the automotive community. A true Minnesota industry legend, Sauer has enjoyed a lengthy career highlighted by active involvement in the AASP-MN Education & Training Committee, the Automotive Training Managers Council, ASE, the Automotive Management Institute and the Automotive Service Association. “Bill Sauer is loved by virtually everyone in this industry, and especially by his friends at AASP-MN,” said AASP-MN Executive Director Judell Anderson during a special commemorative ceremony. “Between the experts at IDENTIFIX and his connections with others in the industry, Bill has been an invaluable resource to AASP-MN when it comes to delivering quality training to our members.”

Sponsors of this year’s event included: 3M, aaa Auto Parts, AASP National, Advisorfix.com, AkzoNobel Automotive, AmeriPride Services, Associated Insurance Agents, Audatex, Auto Plus Auto Stores, Auto Value Parts Stores, Autodata Publications, Automotive Seminars, Axalta Coating Systems, BASF Automotive Refinish, Body Shop Supply of LaCrosse, CARQUEST Auto Parts, CCC Information Services, CHESS, Choice Auto Rental, Dent Impressions, Dentsmart PDR, Dorman Products, Dynotech Industries, Hunter Engineering, IDENTIFIX, Inver Grove Ford Lincoln, Key Kool/Keystone, Keystone Automotive, Lowell’s Performance Coatings/Carbench, Meadowbrook Insurance, Minnesota Collision Auto Repair Safety Study, Mitchell International, Mitchell1, Net Driven, One Eighty Business Solutions, O’Reilly Auto Parts, PAMS Auto, Inc., PPG Automotive Finishes, Pro Paint Metro, Pump & Meter Service, Raytheon, RLO Training, Sherwin Williams Automotive Finishes, Suburban Chevrolet, Tousley Ford, and United Fire Group.

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ASA Michigan Launches New Member-Only Community Website; Revamps Main Site The Automotive Service Association of Michigan recently launched a new “Members Only” community website — www.MiASACommunity.com — and revamped their main site — www.ASAMichigan.com. “At our strategic planning session last fall, we recognized the challenges of the ‘new normal’ for automotive repair facilities and the importance of their time and ability to travel to meetings after a long, stressful day,” said Ray Fisher, President of ASA Michigan. “Members would also call us about missing one of our webinars, needing a business aid, a form, or some information from the State of Michigan. We also discussed the value of members being able to share ideas, best practices and provide feedback on various topics similar to an electronic bulletin board type of format in the past. And, lastly, we needed to make sure that access to everything was convenient and available 24/7/365.” The community website has multiple folders that include a virtual library, people, groups, discussions, blogs and news. “The website will be progressive, but for example, we started the library with four folders titled automotive repair industry, collision repair industry,

ABRA Awarded Farmers MSO of the Year Award

ABRA Auto Body & Glass has been awarded the Farmers Insurance National MSO Group of the Year. The award recognizes ABRA for its superior customer service, low cycle times, commitment to innovation, company cooperation, overall friendliness and staff professionalism, along with facility appearance. “We are extremely proud of our people, processes, and performance,” said Tim Adelmann, executive vice president of ABRA.

Safelite Opens Chicago Store

Safelite AutoGlass recently opened a new store located at 6538-40 Ogden Avenue in Berwyn, IL. Safelite now has a total of 10 locations in the Chicago area. The 4,000-square-foot facility houses up to 200 auto glass products, according to the company. Hector Perez serves as the store manager.

mechanical repair industry and webinars,” Fisher said. “Documents or links that apply to both industries we place in the automotive repair industry folder, and, of course, the others follow accordingly. We also found that it was sometimes difficult for the members to attend the webinars regardless of what day or time we held them, so we added the webinar folder within the library. As long as the material remains relevant, the webinar will be accessible to the members 24/7/365.” Fisher added, “The opportunity for the membership to interact is invaluable today. With vehicle technology, social media, higher customer expectations, leaner operations, the members need a place to share best practices and ideas immediately so they are not alone. Media allows consumers to make decisions quickly and our members need to be able to respond with educated decisions and they need to know they can go to one source to get it.” In addition, ASA Michigan is also launching a new program called ‘Skype with Ray’ which is set for the third Thursday of each month, to begin in May. “Again, using technology, we wanted a venue for the industry to

AASP-MN Golf Day June 18

The Alliance of Automotive Service Providers-Minnesota (AASP-MN) invites all collision and mechanical industry professionals to attend its 19th annual Golf Outing, Tuesday, June 18, 2013, at 3M’s Tartan Park Golf Course in Lake Elmo. Over 150 AASP-MN members, employees, vendors, and insurance industry representatives are expected to enjoy the day of golf and socializing. Play will begin at noon, followed by a social hour and awards presentation. The cost to participate is $100 per golfer or $400 per foursome.

Pro Class Auto Body Sponsors Carp Competition in Illinois

Crooked Creek Outdoors, Pro Class Auto-Body and Barnyard Guitars of Macomb, IL, are sponsoring a Bow Fishing carp tournament and blue grass and country music jamboree June 1 at Spring Lake. Sponsors will payout $100 for the biggest carp shanked and $200 for the most weight of carp. Depending on the number of entries, the Bow Fishing tournament could extend to June 2.The jamboree is free, and all donations will go directly to the stocking program.

10 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

have personable dialogue with ASA, sharing their concerns, giving us ideas or even just to say ‘hi’, without taking the time and financial expense of meeting somewhere physically–so we are testing this venue and will decide in September whether it was effective and to continue, or to focus resources elsewhere,” said Fisher. Fisher said the format will be topical with an open floor towards the end. “We plan on having a guest speaker from time to time, which we believe will provide many opportunities for attendees to hear things ‘right from the horse’s mouth’ sort of thing.” He added, “There have been so many things affecting our industry and we needed to be responsive. Our task must remain focused on what helps members and industry be successful regardless of how painful it might be, because if we want them to remain members, they have to stay in business; and if we want them to stay in business, we have to have walk through some of these difficult changes because making them just “feel good for the moment” is shortterm thinking—as a professional organization, we owe the industry here in Michigan that respect!”

Ford to Donate $1 Million

The College of Creative Studies (CCS) recently announced that Ford Motor Co. will donate $1 million over the next five years to provide educational opportunities to Detroit youth. The funds are being used to establish the Henry Ford Academy: School for Creative Studies, College and Career Transitions Office, and start a Blue Oval Scholarship fund for graduates of the academy to attend CCS. The academy is the public charter middle and high school created as a partnership between CCS and Henry Ford Learning Institute.

1Collision Adds Illinois Shop

1Collision Network announced that Community Auto Body in Carol Stream, IL, is the newest member of the Midwest group of independently owned collision repair businesses. Community Auto Body owner Ed Zuniga said, “In looking for a group of shops to affiliate with, I chose the 1Collision Network because they offered practical and affordable solutions to the marketing and operating aspects of my business.” The 1Collision Network includes 21 locations throughout Illinois, Wisconsin and Iowa.

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www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 11

Former Lafayette Glass Employee Pleads Guilty to Embezzlement Charges Christiana Denny, a former employee of Lafayette Glass Co. in Lafayette, IN, has pleaded guilty to corrupt business influence and forgery in a case related to embezzlement from the company, according to Tippecanoe County (Ind.) Superior Court Records. Denny, 44, turned herself in last June on an arrest warrant charging her with ten felony counts related to embezzlement, according to police records. She is alleged to have stolen more than $100,000 over the estimated span of 11 years, according to Lafayette Glass Co. president Dennis Clark. glassBYTES reported that Denny originally was charged with one count of corrupt business influence, three counts of forgery, two counts of money laundering, two counts of theft and two counts of fraud. Clark told USGlass magazine, sister publication to glassBYTEs™/ AGRR™, that Denny left his company with a mere $4,000 in its bank account and approximately $70,000 in overdue accounts payable during an interview last fall. “We’ve been in the business for 66 years and we’re well-respected with our creditors, and they even offered to give us assistance, extended times and so forth, but I didn’t need to

do that,” he said. “Had I not been in a financial position where I could put more money into the company we probably would not have been able to do this.” Clark said that Denny had been stealing from the company in a variety of ways, after having been with the company for 19 years. “Naturally, we trusted her,” Clark said. “We brought her through the ranks, so to speak, and she was almost like a daughter to me … We know it’s been happening since 2001. I think it started out that she was taking a little bit and then a little more, and then she started taking everything she could get her hands on.” The company discovered the alleged theft in 2009 and contacted the local police, who eventually turned the case over to the state. “They subpoenaed all of her bank accounts and credit cards and they’re the ones who really found out all the things she was doing,” said Clark. “We would probably not have realized that it was anything near that kind of money.” Denny’s alleged theft took on several forms, according to Clark. For example, she was taking all of the cash that came into the company on a daily

State of Disaster Declared for 19 Counties in MI Due to severe spring flooding, Michigan Gov. Rick Snyder recently declared a “state of disaster” for 19 counties in the state, as well as the cities of Grand Rapids and Ionia. Snyder said he’s asking the Federal Emergency Management Agency (FEMA) to join state and local officials to assess damage caused by the flooding that occurred from April 9 through May 3. Snyder’s disaster declaration covers the two cities plus the following counties: Baraga, Barry, Benzie, Genesee, Gogebic, Gratiot, Houghton, Ionia, Kent, Keweenaw, Marquette, Mecosta, Midland, Muskegon, Newaygo, Ontonagon, Osceola, Ottawa and Saginaw. Snyder’s office said the declaration will “ensure that all possible resources, in accordance with the Michigan Emergency Management Plan, are provided to assist the local response to the flooding.” It’s not immediately clear what help might come from FEMA and the federal government. The preliminary damage assessment process is the first step toward helping state officials determine whether a federal declaration should be requested. Preliminary damage assessment teams will look at the damages in-

curred by businesses, homeowners and renters—along with damage to public infrastructure. Residents and business owners affected by the flooding are asked to report damages to their local emergency management agency. “This declaration makes available all the state resources that are needed to continue supporting local officials in their ongoing work to keep the public safe as the recovery efforts begin,” Snyder said. “We will be exploring all possible avenues for assistance to help affected residents and local governments recover from the severe flooding,” he added. According to Snyder’s office, the declaration also authorizes the Michigan State Police and the Emergency Management and Homeland Security Division to “coordinate and maximize all state efforts to address public health and safety concerns in the affected jurisdictions, as well as to coordinate with federal agencies to provide any available assistance to help with recovery efforts.”

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basis and only was depositing the checks that arrived. “[She also was] padding the payroll,” Clark said. “She had two brothers who worked here, and she padded one of the brothers’ payroll records—for a total of $30,000 over the years.” When Clark first heard accusations from another employee that Denny had been stealing, he didn’t believe it. “I told him, ‘you can’t just accuse someone of something like that, you’ve got to have proof.’” Shortly after, the employee stayed after hours and allegedly caught Denny stealing $750 from the company’s safe. Lafayette Glass Co. made one main change to prevent possible theft—or at least reduce the risk for it—in the future. “I have a son, Chris, who’s in the business, and all checks have to be signed by either him or myself,” said Clark. “No one else has any check signing authority.” He promoted an office assistant to bookkeeper, but she doesn’t have check signing authority the way Denny did. “It’s sad that you can’t trust people to do the right thing, but that’s the way it is.” Denny is scheduled to be sentenced on July 5.

Subaru to Expand Indiana Plant with Impreza Cars

Subaru, the only automaker to boost U.S. sales in each of the past five years, plans to expand production capacity at its Indiana factory by about 30%, and add output of the Impreza compact car by 2016. The plant in Lafayette, IN, would supply four- and five-door variants of the Impreza for North America. Capacity of the Lafayette factory will increase by at least 100,000 units by 2016. The Impreza now is produced only in Gunma, Japan. Japan’s Nikkei business daily reported this year that Subaru is planning to invest $230 million to increase the Indiana plant’s output. Subaru’s parent company, Fuji Heavy Industries Ltd., has said the extra capacity is needed to end a shortage of vehicles at U.S. dealerships. The United States is Subaru’s biggest market and accounts for 50% of the brand’s worldwide sales.

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www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 13

Paint Materials: Band-Aids Won’t Help—It Needs Stitches! by Ray Fisher President, ASA Michigan

Receiving proper paint material reimbursements from insurance carriers continues to be a challenge to the collision repair industry and Michigan is no different. Since hurricanes Katrina and Rita, the collision repair industry has never caught up to the increases that were incurred during this time period. Add in the challenges the industry faces when attempting to itemize and properly be reimbursed for the feather, prime and block labor operations necessary for a repaired panel and they Ray Fisher absorb even additional costs. We have been battling this for years and the solution is quite simple—shops have to use the tools that are available in the marketplace, that means the paint material calculators and insurance carriers have to be cognizant of real costs! Compare paint materials to parts pricing: When have you ever known a repair facility to have to wait 12, 18 or

24 months for a parts price increase (PPI), all the time hoping that next month they will get the PPI that was owed? Paint material increases are not any different! There are paint material calculators such as Micro Mix, Mitchell Refinish Material Calculator and PMCLogic, just to name a few that provide documentation and assessment of paint materials used on each repaired vehicle. I recently cut my hand with a tablesaw which is a different story, but I had to go to the emergency room and I was charged for the labor and the ‘parts/stitches’—including the cleaning solution. That cleaning solution wasn’t a ‘cost of doing business’ for the hospital! The customer and the insurer have to understand that we must cover the costs of these materials that are specific to the repair of that particular vehicle for that particular loss! We also cannot ignore the regulations placed upon the automotive repair industry over the past five years, such as the 6H/NESHAP rule which clearly identifies when the refinishing process occurs, but also the updates to the labeling laws from OSHA as they are being updated over the next few years. Until we see more acceptances of the paint material calculators, we must

have acceptance that any repair procedure that requires ‘spraying’ as an applicatory method translates to a refinish process, must be categorized as a refinish operation and the repair facility must be reimbursed for the materials accordingly. If the consumer or insurance carrier feels that these definitions are improper under the NESHAP/6H rule, they need to work on lobbying Washington, but in the meantime, stop expecting the repair facility to break the law or absorb the extra costs. These costs, such as feather, prime and block procedures, are NOT part of the repair process, they are the gap between the repair process and the refinish process—and they have a federal regulation that requires it to be a refinish operation.

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In Norton Shores, MI, a lucky student from Mona Shores High School will win a free 2007 Ford Fusion as part of a responsible driving program. At the beginning of the school year, high school juniors and seniors who wished to participate in the program signed the Ride with Pride Safe Driving and Positive Behavior Pledge. Ten students have since been randomly drawn as finalists to win the free Fusion. The program has been recognized by the Michigan Association of Chiefs of Police as well as the Governor’s Traffic Safety Council, according to the Norton Shores Police Department. The Norton Shores Police Department partnered with the high school and Muskegon Alcohol Liability Initiative and Ramos and Sons Towing and Auto Body to present the car during a May 17 program.

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Safelite Receives Tax Breaks for More Jobs in Ohio

Safelite Group recently received approval for state and city tax incentives and announced it will add 350 jobs to the 1,500 jobs the auto-glass company has in central Ohio.The new jobs will include call-center workers and positions in the corporate office. The new jobs will carry an annual payroll of $14.2 million. The existing positions will maintain a payroll of $44.1 million. The state’s incentives are valued at up to $1.7 million over eight years. The Columbus city council discussed additional incentives of $2.5 million that will leave the city with little income-tax revenue from Safelite’s job expansion over the next five years. Columbus would allow Safelite to keep 90% of the incometax revenue generated by the 350 new employees during that time. Safelite would keep 65% of the income-tax revenue for three years after that. The deal is the largest incentive package that the council has considered since giving IBM $4.5 million for 500 new jobs in December. Safelite AutoGlass recently opened a new 4,000 sq. ft. store located at 6538-40 Ogden Avenue in Berwyn, IL. Safelite now has a total of 10 locations in the Chicago area.

Wisconsin Student Makes Local History and Wins SkillsUSA Two Years in a Row Brady Beth, 19, of Reedsburg, WI, recently made local history as the first student to win first place in the state SkillsUSA Auto Body Repair competition for two years in a row. Beth is a student from Madison Area Technical College who graduated from Reedsburg Area High School, the Reedsburg Times-Press reported. In April, he competed against 40 other students from technical schools around the state in his category. Wisconsin student It’s the first time Brady Beth takes in Madison Area first place at Technical CollegeSkillsUSA for Madison history second year that any student has in a row won a first place SkillsUSA award two years in a row. Both years, Beth completed 12 welds with perfection and repaired seven dents, two cracked fenders, and a crack and a tear in a plastic bumper. There also were written tests and a mock job interview. Beth will graduate in May and already has a job lined up with Avenue

Auto Body in Middleton. “I like to make cars look new again,” Beth said. “To see something wrecked up, you can make it perfect again.” He gives a great deal of credit to his MATC-Madison auto body and collision instructor, Tim Hoege. “He’s really good at what he does,” Beth said. “He’s helped me a lot.” Beth worked for Koenecke Ford since he was 16 alongside his dad, Dale Beth, another auto body technician. “I was supervising and watching them,” Beth said with a smile. “But at 6, I actually started working on cars there.” Not only did Beth take first place at SkillsUSA two years in a row, last year he place 13th at the SkillsUSA national competition in which he competed against contestants from 50 states, plus Puerto Rico and Guam. He’ll try at the nationals again next month in Kansas City, MO. “It’s very difficult to win the state event twice,” Hoege said. “It’s quite a competition. Some people have the touch. Brady can see what has to be done and visualize it before it’s done. You need to visualize it completed in

your head before it’s done. He can do that.” Beth said he won’t be happy with 13th this year at nationals. “This year better be the top five,” Beth said. “This year I know what to expect.” Last year he came in first place with the SEMA Car Show competition in which contestants are selected based on an auto body idea submission. Beth’s was chosen among the top five and he painted an image on the hood of a Honda Civic to gain first place. Hoege said many winners of the SkillsUSA competition are picked up by major auto market companies as sales representatives or executives. “These companies want these winners because they know they have the passion and the drive to want the best out of themselves,” Hoege said. Beth said future plans include dreams of owning his own business, but he’d like to stay close to home. “I want to stay in the Reedsburg area,” Beth said. “I’d rather work here.”

www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 15

WI Body Shop Repairs 21-Foot Tall Logger Statue Piontek Auto Body & Wrecker Service in Denmark, WI, recently did work of a different sort—the shop repaired Larry the Logroller, an iconic fiberglass statue that symbolizes Wabeno, a town in Forest County, WI.

The statue was damaged over the winter by a logging crew. It was a tough year for Larry. The statue was damaged in January when a tree fell on it, cracking Larry into three pieces. Ron Piontek, who owns Piontek Auto Body, vacations in Wabeno and knows Larry well. He says he spent hundreds of hours putting the statue back together. “Last minute preparations. I was getting his suspenders done. And his buttons on his shirt. And then get his head on yesterday. Touched him up,” said Piontek. “Got him on, and we’re ready to roll,” said Piontek. It’s 108 miles from Piontek’s

auto body shop in Denmark to Larry’s northwoods home. Piontek says he is proud of his work. “This was a challenge because you had to make what wasn’t there. The original picture, there was no right shoulder, there was his chest busted. The legs were busted. He had head damage,” said Piontek. “I hope nobody runs into the ditch, because I feel responsible when they see it coming down the road,” said Piontek. A police escort made it clear for all and Larry had made it home. “This man is one of the greatest,” said Larry Rummel, Wabeno Park Board. “I think he’s never looked as good as he does right today. Just standing tall, almost,” said Lloyd Fulcer of Wabeno.

The dedication for Larry and a fundraiser for the band shell was held May 25 at the Wabeno Town Park.

16 Arrested in Multi-State Car Theft and Fraud Conspiracy, Dealerships and Individuals Targeted Sixteen people have been arrested on a federal indictment charging 21 defendants involved in a multi-state car theft conspiracy. The conspiracy is alleged to have utilized several different schemes to steal and misappropriate vehicles, commit bank fraud in order to obtain vehicles and obtain insurance proceeds by staging accidents and filing false theft reports, the Claims Journal reported on May 1. The indictment alleges that the defendants stole luxury vehicles, SUVs and pickups from individuals and automobile dealerships in the Eastern District of Missouri, Iowa, Illinois and Indiana, which they transported to the Eastern District of Missouri. They disabled any tracking systems, like OnStar, on the stolen vehicles so that they couldn’t be traced by law enforcement. In addition, it is charged that the defendants themselves, or “straw” purchasers, made false statements on loan applications and submitted fraudulent earnings statements in support to obtain loans to purchase typically highend vehicles. The defendants used and then sold or disposed of the vehicles, while the loan defaulted, either immediately or after a short payment history.

According to the indictment, the defendants also practiced fraud related to the titling of vehicles, obtaining by false statements apparently legitimate ownership to vehicles they had stolen from individuals. On many occasions, the defendants falsely claimed to have done repair work which wasn’t actually performed on vehicles submitted to their businesses, inducing lien holders to pay the defendants money to avoid the issuance of a mechanics lien. Over 100 vehicles have been fully identified as being involved in the criminal activity, although investigators believe many more were actually involved. Charges include conspiracy, bank fraud, mail fraud and receipt of stolen motor vehicle. If convicted, these charges carry penalties ranging from 5 to 30 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

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Wisconsin Firefighters Train with Jaws of Life

Tower Auto Body CARSTAR in Eau Claire, WI, recently held a training session for firefighters to get experience using the Jaws of Life. Firefighters from around the area were able to cut up salvaged cars to get the experience.

Owner of Tower Auto Body CARSTAR Dave Stertz says the reason they hold these lessons is to keep emergency personnel up-to-date on the newest technology in cars. “Tonight we have a compressed natural gas vehicle here, which is very new in our area. We’re trying to pass this information on to the local firefighters so when they run across a situation like this, they may know what to do.” Stertz says representatives from Holmatro Rescue Equipment come in to do the training with the firefighters.

AkzoNobel Opens its FIT Awards for Nominations

AkzoNobel Automotive & Aerospace Coatings Americas is now accepting nominations for the 2013 FIT Sustainability Awards. AkzoNobel launched the FIT Program in 2009 in an effort to bring awareness and create a desire for change within the collision repair industry related to this critical global issue. FIT which is an acronym for Focus, Innovation and Talent, the three key criteria for the award, was established as an expansion of the Most Influential Women in the Collision Repair Industry Program. The FIT award is presented to organizations and institutions that are seeking to advance sustainable business practices within the collision repair industry. Past recipients have included the California Autobody Association, Enterprise Holdings and Keenan’s Autobody. Each of which have been forerunners in their respective areas of the industry pertaining to the issue of sustainability.Nominate by June 30, to bill.orr@akzonobel.com.

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Social Media for Shops

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

Google+ Is an Emerging Star for Media-Savvy Body Shops with Ed Attanasio

“What’s this Google+ thing I’m hearing about?” or “Should my business have a Google+ page?” and “We just figured out this Facebook thing and now we have to worry about doing Google+?” are among the comments I’ve heard recently at CAA meetings. I’ve been paying close attention to Google+ for more than a year now, watching it to see how it evolves and grows and reading blogs about it. The consensus is that Google+ is quickly becoming a go-to site for companies of all sizes. People and businesses like it because it offers exposure and interactivity without sacrificing security and privacy. Instead of Facebook which has “likes,” Google+ allows the user to create “Circles,” which can be broken down into separate groups. You can create as many Circles as you desire, including your college classmates, softball team members, co-workers, or relatives, for example. Each message or interaction can be focused and tailored to each Circle. It’s more targeted and more importantly, you’re not bothering people with news or photos of things that probably won’t interest them. Google+ also has an interesting feature called “Sparks” which are essentially a list of the user’s favorite hobbies, activities or organizations that interest them. Once these Sparks are selected on the user’s profile, Google+ will automatically suggest appropriate content to the user. These include links to pertinent and timely articles, videos, photos, podcasts and sound files that are directly related to the individual’s or company’s particular interests. Google+ also has a very popular video chat feature called “Hangouts” that enable the user to conduct video chats within their Circles. There are also “Huddles,” an online chat feature similar to what you might find on AOL or Skype. All of these features work together to engage people and keep them involved, which is the main goal of social media in general. To find a body shop that used Google+ extensively, I found Marina Auto Body, with two locations in Los Angeles. When I talked to the owner Tom Williamson, he had nothing but

positive things to say about his experience with Google + and his results. He told me about Pixel Motion, a company in Orange County, CA, that he contracted to do his web and social media work. Pixel Motion is a boutique digital agency that does marketing and web development with a focus on the automotive industry. Most of their clients are automotive manufacturers and car dealerships, but they also work extensively with a select number of collision centers and body shops. I contacted the agency’s Director of Social Media Natalie Ricker to pick her brain about social media and Google+ for automotive companies and body shops specifically. “My mentality when approaching any form of social media always is the same—will it keep people’s attention?” Ricker said. “So, I post what people want to know, which can include anything from the weather, local events happening in their area, links to articles that are related to car safety, quotes of the day, or maybe just a picture of an adorable dog. My posts vary, so the fans never see the same thing every day. When fans come across the page, they will want to like it because of how people-friendly it is. We aren’t pushing promotions. We’re showcasing the fact that we love our customers and employees; we love to have fun and keep you informed and entertained. That’s the message we want to convey.” With people getting into accidents every nine years on average, social media like Google+ is valuable for body shops that want to stay in their customers’ minds when the unfortunate does occur. “When the next collision does happen to them or someone they know, what shop do you think will be the first to pop in their head?” Ricker said. “We use this same approach with Google+. If a potential customer is searching on the web for a premier collision center near Los Angeles, will they choose the one that has a complete profile with pictures and fun posts, with people in their Circles, or will they choose the one that has an incomplete profile that didn’t bother

18 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

to personalize their page?” It’s all about the presentation with any type of social media, Ricker explained. “Body shops need to have an attractive Google + page, no question. Organically, they will rank next to other business listings that have Google places, so they need to stand out. If someone sees a picture of just a map, they move on. They want to see a picture of the body shop. It makes it feel more legitimate and professional. “One of the biggest differences between Facebook and Google+ is Google Hangouts,” Ricker said. “Body shops can use this tool to their advantage with other Google users. Let’s say a customer wants to see the progress of the repair of their vehicle. With Google Hangouts, they can email an invite to their technician to “hangout” or video chat with them. They can then see the friendly smile of the technician and interact with them face-to-face. Should the techni-

cian have time, he can also even give them a virtual tour of the progress of their vehicle with a company laptop.” Another great thing about Google is they offer amazing data that can help body shops to find out what’s working and what isn’t. “We recommend that our clients keep track of their Google+ page’s progress through Google Analytics,” Ricker said. “It’s easy to track where their visitors come from, (cities, search engines, social sites, etc.), how long they are staying on the site and which pages are the most popular. We track these analytics every month and send a report to our clients with screenshots of different data. We then provide an in-depth analysis with recommendations on how to improve. We also recommend Google Webmaster Tools, which is also full of insightful data and metrics. A lot of this information can be overwhelming, so we simplify it and explain it to our customers.”

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DEG Received

ris said. Often, an inquiry can result in changes to the database or P-Pages. Shops are also encouraged to submit pictures or short videos with technicians performing the task in question or related to the problem. The DEG public database has been available for five years, said Harris, who has been with the nonprofit for over two years. As the administrator, Harris is responsible for daily operations of processing inquiries and is assisted by a joint operating committee. With 25 years in the industry, Harris’ background includes managing a collision center at a dealership in Rochester, NY, and in another position, working as a training and education director and liaison between the collision repair shop and insurance companies to resolve issues. “We are really excited about the 30% increase of inquiries because it means the industry is taking advantage of the resource, and that it is providing a necessary and useful tool for collision shops,” Harris said. “That said, we know we are only scratching at the surface. If you look at the number of body shops in the U.S. (approximately 35,000), 1,300 to 1,500 inquiries in a year is probably not representative of the full spectrum of data corrections that need to be addressed. We think there are more areas within the databases that can be resolved if more people were exposed to how easy it is to communicate with IPs through our process, and how effective that communication is when estimators submit issues.” In December 2012, the DEG launched a redesigned website (www.degweb.org) that is easier to navigate. Users can jump right into the inquiry process with an easily visible “Open Inquiry” button located on the home page. The most significant addition to the website is the addition

of a “Top 10 List” for each of the three information providers. These lists are generated by the most frequent issues posted by users or enhancements users would like to see. In the Top 10 Lists for all three information providers, the top user concern listed for each is “Feather, Prime and Block”—users would like to see the systems generate a pop-up to add feather, prime and block labor to the estimate. The user would create the time, but the system needs the option to add it, without creating a manual entry. Another top concern is adding an option—”add for prep raw part”—for preparation time for plastic parts (in addition to bumpers) that are shipped raw or in an unprimed state. In addition, the newly designed website continues to includes links to estimating guides or “P-Pages” for each estimating system. “We are really excited about the new design of the website,” Harris said. “It gives the user the opportunity to get to a few key areas right away.” The DEG is equally funded by the Society of Collision Repair Specialists (SCRS), the Automotive Service Association (ASA) and the Alliance of Automotive Service Providers (AASP) as a free service to the industry. Sponsors include industry organizations such as Automotive Body Repair News, PPG, Washington Metropolitan Auto Body Association (WMABA), DuPont, Sherwin Williams and Keenan Auto Body. “While the service is free to use, we really rely on financial support from the industry, both in the form of sponsorships and donations from satisfied end-users. This support lessens the ongoing financial reliance on the primary funding associations, allowing them to redirect funds to new resources that help the industry in other ways,” Harris said. “All the services that we do are free.” For more information or to submit an inquiry, go to www.degweb.org.

BLS Stats Show Increase in Number of Body Shops

The Department of Labor’s Bureau of Labor Statistics (BLS) estimates that the number of shops in the country grew by about 130 shops each quarter since the beginning of 2012. The change appears significant because the number of collision repair facilities has not grown, year over year, in any quarter since the first quarter of

2002, when it was a mere 34 shops nationwide. The latest BLS estimates show that the U.S. industry grew by 402 shops in the first three quarters of 2012 alone and the trend projects more than 500 by the end of the year. The number of shops is still approximately 1500 less than it was in 2008, including the 400 new locations. www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 19

20 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

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AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News

Subaru Recalls 10,000 + Forester Wagons

Subaru is recalling just over 10,000 of its 2014 Forester wagons because the floor mats can interfere with the clutch, brake or gas pedals. The recall affects Foresters made from January 2013 through March. The company says the floor mats can curl when exposed to heat. The problem was discovered in cars arriving at a port in Vancouver, WA. The National Highway Traffic Safety Administration says the mats could distract the driver or interfere with operation of the car. Subaru traced the problem to improperly manufactured backing on the mats.

Honda Recalls Nearly 46,00 Fit Sport Small Cars

Honda is recalling nearly 46,000 Fit Sport small cars in the U.S. and Canada to fix a problem with the electronic stability control system. The recall affects cars from the 2012 and 2013 model years. Honda says the stability control system can let the car tilt too far before it applies the brakes to prevent a crash. The defect was discovered in government testing of models with a particular type of tires. Honda says it doesn’t know of any crashes or injuries from the problem.

Porsche 911 Coolant Leaks

U.S. safety regulators are investigating coolant leaks in Porsche 911 sports cars that could cause roadway spills and send vehicles careening out of control. The probe by the National Highway Traffic Safety Administration affects about 10,000 models with the GT1 engine from the 2001 through 2007 model years. The agency that a hose fitting can fail and cause rapid coolant leaks without warning. The coolant can cover the road and cause drivers to lose control of their cars. The agency says it has 10 complaints of coolant leaks.

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Nissan Recalls 2013 Altimas for Spare Tire Inflation

A pressure regulator that over or underinflated spare tires for five days earlier this year has led to a recall of 123,308 units of the 2013 Nissan Altima. Sedans that were manufactured from March 21-26 are those possibly affected by the temporary tire snafu. Those notified of the issue can take their sedans to their local Nissan dealer, who will check the tire pressure and correct it if necessary.

NHTSA Investigates Ford Police Vehicles

The National Highway Traffic Safety Administration is upgrading an investigation into steering assembly failures on 195,000 Ford Crown Victoria police cars, the Detroit News recently reported. NHTSA said it is upgrading an investigation it started in September to an engineering analysis for the 2005-08 Ford Crown Vic Police Interceptor vehicles after six complaints and 15 total reported incidents. Ford said in a letter to NHTSA in November that it was investigating whether a prior crash or vehicle service may have an impact on the steering system issues. The Dearborn automaker began investigating after it was contacted by the Ontario Provincial Police in March 2012 after the steering system failed during routine driving. Police in Montgomery County, MD, contacted Ford about two other police vehicles that had steering system failures. Ford noted one of the vehicles had been in four previous crashes. NHTSA said the mechanical connection between the steering wheel and rack and pinion steering assembly consists of the steering column and an upper and lower intermediate shaft. Allegations of a loss of steering control are mostly related to a separation of the upper and lower shafts within the steering the column. The incident rate involving subject vehicles is 7.7 per 100,000 vehicles.

22 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

Ford to Add 2,000 Jobs at Kansas City Plant for F-150

Ford Motor Co. recently announced it would hire an additional 2,000 workers at its Kansas City Assembly Plant in Missouri to meet increased demand for F-150 pickups and for the upcoming production of the new Transit family of commercial vehicles. The increases will come in two phases. Ford will add 900 jobs and a third work crew in the third quarter to build F-150s. Starting in the fourth quarter, Ford will hire an additional 1,100 workers to gear up for production of the Ford Transit commercial van, which begins in 2014. About half the 2,000 workers will be new hires. The other half will be workers who were laid off temporarily in the second quarter of 2012 when Ford moved production of the Escape crossover from Kansas City to Louisville. The Kansas City plant is Ford’s largest in the United States and includes two separate body shops, two separate paint shops and two final assembly lines. Ford is spending $1.1 billion to retool and refurbish the Kansas City plant. The expansion includes a 437,000-square-foot stamping plant, which was completed in 2012, and a 78,800-square-foot paint shop.

480,000 Chrysler Units Involved in Recall

More than 480,000 Chrysler Group vehicles either are being recalled or are under investigation, according to the NHTSA. The recall involves the Jeep Grand Cherokee from 2005 through 2010 model years manufactured from Feb. 11, 2004 through March 9, 2010, as well as the Jeep Commander from the 2006 through 2010 model years manufactured from Jan. 31, 2005 through March 10, 2010. NHTSA officials indicated a transfer case electrical failure may result in an unintentional shifting of the transfer case into the neutral position.

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June 2013

Chrysler Recalls Ram Trucks for Windshield Defogging

The National Highway Traffic Safety Administration (NHTSA) announced Chrysler is recalling 532 Ram 1500 pickups to ensure the windshields are being properly defrosted and defogged. Chrysler engineers observed a fault code linked to the coolant system function. The NHTSA said in the affected vehicles, the coolant bypass valve may stick in a position that does not allow coolant to flow into the heater core. Thus, these vehicles fail to conform to the requirements of the Federal Vehicle Motor Safety Standard No. 103, ‘Windshield Defrosting and Defogging Systems.’ The models were manufactured June 25, 2012, through December 12, 2012, according to NHTSA. The recall campaign impacts 498 vehicles in the U.S. and 34 in Canada, according to a Chrysler statement. More than one-third of the vehicles are still with dealers.

Suit Says Fords Prone to Unintended Acceleration

A lawsuit claims that unintended acceleration incidents are endangering owners of Ford, Mercury and Lincoln vehicles manufactured between 2002 and 2010. The suit, filed in Huntington, W. Va, charges that Crown Victoria, Escape, Taurus, Thunderbird and other models can surge out of control and alleges that they lack a failsafe mechanism to stop the vehicle. The suit targets Ford vehicles equipped with electronic throttle control and says the control can malfunction, sending the vehicles out of control. The suit claims Ford has received “hundreds if not thousands” of complaints from owners, including police departments, about the problem. Ford said it has worked with the NHTSA to address the problem, an approach it says is “far more scientific and trustworthy than work done by personal injury lawyers.”

Infiniti Launches FactorySponsored Towing Service

Infiniti North America has launched a factory-sponsored towing service to shops participating with the Infiniti Certified Collision Repair Network. Infiniti said its new towing service delivers damaged vehicles directly to Infiniti Certified Collision Repair Network shops. The purpose of the towing program is to provide Infiniti vehicle owners with confidence that the repair will meet the company’s standards. Infiniti owners can call a toll-free phone number, 800-662-6200, to initiate the towing service following an auto accident. The vehicle will be transported to any Infiniti certified shop within a 50-mile radius. Infiniti said becoming an Infinity Collision Repair Network facility offers key marketing advantages for collision shops. Infiniti said certified shops have direct access to OEM technical information, specifications, resources and tools to ensure consistent and quality repairs. Infiniti North America established the Infiniti Certified Collision Repair Network to reward and distinguish body shops that meet and exceed Infiniti standards for training, equipment, customer service and quality repair work.

Nissan Cuts Prices on Seven U.S. Models

Nissan is cutting prices on seven of its 18 models in the U.S., hoping its cars and trucks will show up in more Internet searches by shoppers. The price cuts vary with the amount of equipment on each model and will run from 2.7% or $580 on the top-selling Altima midsize car to 10.7% or $4,400 on the Armada big SUV. Other models getting price cuts include the Sentra compact car, Juke small crossover SUV, Murano midsize crossover, Rogue small crossover and the Maxima full-size car. Jose Munoz, Nissan senior vice president of sales and marketing for the Americas, said the vehicles getting the price cuts account for 65% of Nissan’s U.S. sales. The sticker prices, he said, were higher than some competitors for similar models, and that kept Nissan vehicles out of some Internet searches. “In some of the customer searches we may not appear,” Munoz said. “This is an indication that we certainly want to be on the shopping list and we want to be considered by as many customers as possible.” The company plans to reduce rebates and other discounts to offset some of the price cuts.

Nissan Gives Free Towing Service to Certified Shops

Nissan North America will deliver vehicle owners directly to the shop door. Nissan is offering a factory towing service to Nissan Certified Collision Repair Facilities, ensuring repairs are performed to Nissan’s high standards. The towing service is offered at no charge to the Nissan owner or the collision shop. For the Nissan owner, a simple toll-free phone call to 1-800-NISSAN-1 initiates the towing service. The vehicle will then be transported to a Nissan Certified Collision Repair Facility within a 50-mile radius.

Chrysler Reports First Quarter Net Income

Chrysler Group LLC reported its preliminary 2013 first-quarter results, including net income of $166 million on revenue of $15.4 billion. As anticipated, the quarter was negatively affected by the reduced vehicle shipments that resulted from key product launches, namely the 2013 Ram Heavy Duty trucks and the 2014 Jeep Grand Cherokee, as well as preparation for the second-quarter production launch of the all-new 2014 Jeep Cherokee.

Mercedes-Benz Selects SCI for Certified Repair Program

Mercedes-Benz has selected the automotive consulting firm SCI to develop and manage its Certified Collision Repair Program. SCI will ensure certified collision centers meet or exceed Mercedes-Benz’s strict set of repair standards in terms of shop training, customer handling and repair quality. SCI will help certified collision repair centers meet the standards, including ongoing audits to ensure that participating shops keep knowledge and skill sets current. SCI will also lead program management and communication. Said Bob McDonald, president of SCI, “The program will not only help shop personnel more effectively serve customer needs, but it will increase operational productivity and create an opportunity for shops to realize sustainable growth.”SCI has managed the BMW Certified Collision Repair Center Program since 2003 and has also been the administrator for the Lexus Certified Collision Center (LCCC) Program since its inception in 2006.

www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 23

Continued from Cover

Paint and Materials the current system as “adequate” or “good.” The study concluded the current system is flawed in part because on smaller jobs, repairers do not receive adequate compensation, and for large repair jobs, insurers believe materials charges become excessive. It also found that while average costs for paint and materials have grown by 50% since 2005, the average compensation rates paid by insurers have risen by only 23%. Lanza said that even some repairers he spoke with who don’t currently have a problem with the system are concerned about the future given this continuing disparity in the growth of costs versus compensation. “Of the individuals I spoke with, 78% agreed that in order to keep up with industry standards and keep pace with future cost increases, we need to do something, and they agreed that a alternative calculation system has to be implemented,” Lanza said. The study, commissioned by ComputerLogic (which produces the

PMCLogic paint and materials costcalculation system), included interviews (each 30 minutes or longer) with shops, insurers, suppliers, association executives, consultants and trade publication editors.

Continued research More recently, Lanza’s firm was retained by Highway CARSTAR Collision in Chagrin Falls, OH, a shop owned by Lanza’s father Frank, to do more research into the alternative methods of calculating paint and materials compensation. The current system, while certainly the easiest, is probably the least fair and accurate, Lanza said. Use of a paint scale with a ratio factor for other types of materials was seen as being less easy to use, but somewhat more accurate and fair. Use of a paint and materials calculator also seemed more fair and accurate and yet easier to use. But, Lanza said, not all paint and materials calculators are the same. “We took a look at over 1,000 estimates from more than 20 different shops,” Steven Lanza said. “We looked at various size jobs with various paint lines. We determined there are differences between alternative

paint and materials calculation systems.” Some of the calculators take the surface area of the panels being refinished into account, for example, Lanza said. Others are still based on refinish hours or some other system. Frank Lanza said he has researching the topic for more than three years, with data comparing the various systems on more than 3,000 estimates. He said he has tried five calculation systems, “finding different flaws in each one of them,” but that some are better than others in terms of offering a “a fair and accurate solution.” For his own shop, he said, he chose a system that uses list (or “user”) prices for paint and materials. What shops actually pay can vary based on many factors, he said, but list prices are published and consistent nationwide. “The major issue that I found with the calculators that I didn’t (choose) is they were based on cost and allowed the shop to put their own mark-up on it,” Frank Lanza said. “Well, I bet if I asked, everyone in here has a different cost depending on your volume and who your distributor

is and what kind of products you’re using. And everybody has a different idea of what the mark-up should be. So what I tried to do was to be consistent, and so that’s the reason I use the list price as opposed to cost.”

Benefit to insurers He said one thing that works in insurers’ favor with paint and materials calculators is that the system can distinguish which items have sales tax that must be charged to the insurer by the shop and which do not. “In our state, the shop has to pay sales tax on certain items that do not leave with the car,” Frank Lanza said. “What happens is if you group paint and materials all together into one item, and then it’s taxed, that is really double taxation. The insurance company might care about that.” In one example shown at CIC, for example, separating out taxable and non-taxable paint and materials would reduce by $9.25 the amount the insurer would have paid under the current system of just multiplying labor hours by a materials rate. One shop owner at CIC said the paint and materials calculators are probably a more accurate and fair way

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to determine compensation, but in his experience insurers won’t accept the itemized invoice the systems produce. Frank Lanza disputed that assertion. “There are parts of the country, where the calculator is the prevailing competitive price. Insurance companies are accepting it,” he said. “So it’s up to us to prove to the insurance company this is what we need. I’ve been in business for 41 years. I have never had an insurance company that cheated me. I never have. I would rather work with an insurance company than a customerpay any time. Because you know with the insurance company, you’re going to get paid. If you can prove (the costs) to them, they will pay you.”

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

www.autobodynews.com C

Continued from Page 3

53 Lawsuits

and I scan the file over to my attorney and that’s it. If it takes me more than 15 minutes, it takes a lot of time. And the best thing about it is, we fix the car right away. We write our estimate, and we don’t care what the insurance writes. Whatever the difference is is what we are suing for.” For example, Quintela and his legal counsel, Brent Geohagan of Lakeland, FL, (also Ray Gunder’s legal counsel), recently levied a lawsuit against Infinity Insurance Company on behalf of a customer for the insurer’s short pays of “reasonable and necessary” repair costs. The lawsuit claims an underpayment of $611 for the insurer’s arbitrary discount on parts, failure to provide ample consideration for numerous necessary repair processes, related materials, labor rates and quality replacement parts. Recently, Quintela received a State Farm estimate sheet that states the shop is responsible for conducting safety inspections and checks. “How can State Farm tell us that we’re responsible for conducting any

necessary inspection and safety checks, but refuse to reimburse their customers for the cost of us doing them?” Quintela and Geohagan have already settled numerous short-pay cases and have won them all. What Quintela finds somewhat amusing is that the insurance companies will settle one day and the very next day, refuse to pay for the same things they just settled in a previous lawsuit. “We just settled with State Farm. They just paid me, plus my attorney fees and their attorney fees and court costs, and the next day they come back and do the same thing. They are still fighting it. And, I just got a check from another insurance company and the next day I am suing them for the same exact things. These insurance companies go to court, they lose, they settle, but the next day they are out doing the same exact thing. They won’t give up. They try to wear you out, hoping that one day you just go away, or they make it so hard to discourage other shops from doing it,” Quintela said. However, Quintela believes it is important for body shops to stand up for themselves and feels his efforts are helping the collision repair industry move in the right direction.

Car-O-Liner Names Peter Richardson to Management

Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, hired Peter Richardson as a Key Accounts Manager. In his new role, Peter will work closely with the c o m p a n y ’s OEM and MSO partners across North America. “We are excited that Peter is joining the Car-O-Liner Peter Richardson family. He is a powerful addition to our team,” said Jeff Kern, Car-O-Liner President of the Americas. “Establishing a strategic partnership with our customers is of high importance to us. Peter’s knowledge of the industry is an asset to reinforce our relationships with key OEM and MSO partners.” Peter joins Car-O-Liner after 10 years at Shure Manufacturing where he was responsible for sales, marketing, and customer service. Before that, he spent 12 years at SBC Telecommunications in various sales and account management positions.

www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 25

First Southern Automotive Repair Industry Conference Held in Biloxi, MI, April 26–27 The Mississippi Collision Repair Association (MCRA) and the Alabama Automotive Repair Industry Society of Excellence (ALARISE) co-sponsored the first Southern Automotive Repair

John Mosley with Aaron Schulenburg

Industry Conference and Exhibition in Biloxi, MS, on April 26–27. Presenters included Aaron Schulenburg of SCRS, Rick Leos with Toyota Motors, Ray Gunder and his attorney Brent Geohagen. The inaugural event was held at the Beau Rivage Casino and Hotel in Biloxi, MS, and kicked off with a reception and exhibition featuring more than 18 vendors demonstrating their products and services to over 200 attendees from collision repair shops from across the Southeast. “The event can be best described as an unqualified success, both in terms of information presented and the impressive number of attendees from seven states,” said Bill Fowler, MCRA member and president of Bill Fowler’s Bodyworks Inc. in Southaven, MS. Vendors and collision repair shop owners and managers participated in classroom presentations specific to their respective segments of the industry. While the vendors discussed Tony Nethery marketing their products, collision repairers enjoyed presentations by Tony Nethery, Business Development Manager for Colormatch, and Mike Ganske, Regional Business Development Manager for PPG. Fowler said that Nethery presented information designed to assist the shop in increasing their bottom line by recognizing many of the seemingly insignificant operations and parts that have been referred to as “the forgettables.” Items like re-setting electronics, tinting colors, masking interior sur-

faces, and many other commonly overlooked labor operations, as well as parts typically not considered significant enough to document, like clips, bulbs, and seam sealers, can contribute substantial amounts to sales figure when consistently invoiced. Blueprinting repairs before they commence, instead of simply writing the typical estimate, can streamline the repair process, allowing for increased volume in workload. Mike Ganske’s discussion, “Leading Change 2013,” gave useful statistical information that made shops more keenly aware of recent changes in the industry to help shops be up-to-date and competitive. According to Ganske, there is currently a $16 billion over-capacity in the industry, meaning there are too many shops vying for the same dollar. Factoring $1 million average gross annual sales per shop, 16,000 shops will have to close in order for shops that manage to remain in business to maintain that average. Given that there are currently fewer than 40,000 repair shops in business today, that is an alarming figure and a difficult reality to face. Add to that the increasing complexity of materials and collision avoidance systems being incorporated into vehicles currently under design, and the picture is even bleaker. There will be considerably fewer vehicles that qualify as candidates for repair. Substantial investments will have to be made in equipment, training and business management in order for any collision repair shop to remain competitive and viable. Aaron Schulenburg, Executive Director of the Society of Collision Repair Specialists (SCRS), reported on topical issues such as PartsTrader. Schulenburg spoke on feedback the association has received on how the various programs have been received in various markets. Schulenburg pointed out that, despite being in place for over a year in some markets, there has still been no evidence presented that the PartsTrader program is providing any of the suggested benefits to collision repairers. Schulenburg’s presentation gave an overview of communications from a variety of carriers utilizing different procurement platforms to repair facilities operating under their program, further demonstrating how cumbersome and intrusive these mandated programs can be into the repair business

26 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

when it comes to managing vendors and parts. In one instance, the carrier recognized the “frustration” repair facilities experienced from being obligated to order a variety of parts from different suppliers in different states. Schulenburg also addressed the ongoing dialogue between I-CAR and repairer organizations regarding the recognition of OEM published repair procedures as the industry’s standard of repair. His presentation demonstrated the importance of such discussion as Schulenburg pointed to contrasts between “standard” programs in the U.K. and the U.S. In light of recent legislation filed in the U.S. House and Senate seeking to repeal parts patent laws, he additionally gave a slide show presentation illustrating common problems shops experience when procuring both used and aftermarket parts that lead to parts returns. From the audience perspective, the demonstration was very effective at exposing the incredible waste of time and money shops are subjected to when attempting to incorporate unfit parts into the process. Rick Leos, Toyota Motor Sales Collision Repair Program Developer, previewed the Predictive Estimating Program that could revolutionize the way estimates are written. Under development for years, the program is much more comprehensive in presenting labor operations and parts that have traditionally been overlooked. Leos said additional information is scheduled to be released in June, with a possible roll-out at the end of the year. Interest in the program has been expressed by several other OEMs and it could prove to be a real game changer in the way estimates are prepared by increasing efficiency and decreasing cycle times. Steve Lanza with Richfield Associates, and his father Frank gave a joint presentation that focused on improving negotiating skills and the urgent need to change the way shops collect for collision repair materials. Steve has extensively studied the paint and material billing method currently in use and gave the audience solid reasons why a change is needed. He cited the fact that since 2005, shops have experienced a 61.9% increase in the cost of materials while only managing a 27.1% increase in compensation. Steve stressed the need to incorporate one of the material calculating programs currently available and predicted that failure to do so could ultimately lead to the demise of

one’s business. Frank Lanza, a shop owner from Chagrin Falls, OH, gave a colorful lesson in negotiating skills and related several personal stories about negotiating with insurers. He stressed the importance of never losing one’s temper and being professional at all times. He shared one of his “Frankisms”—when negotiating with insurance personnel, always keep in the back of your mind: “I love you, but I love me more.” Ray Gunder, with his attorney and friend Brent Geohagen, were the last speakers of the day, addressing a crowded room about taking back the industry. They discussed their journey in taking on the insurance industry in a modern day David-and-Goliath battle to get fair and reasonable resolution to industry wide problems—short pays, steering and rate suppression. Gunder spoke of his days of desperation that led him to believe he had but two choices—take a stand and fight back or close his doors once and for Brent Geohagen, all. Geohagen told attorney for Ray Gunder and the audience of his Eddie Quintela original skepticism with Gunder’s story and observed that few people outside the collision repair industry would believe such an incredible story, one that is all too familiar to people in the industry. “Gunder’s successes are the stuff of legend and he serves as an inspiration to the rest of us. Despite overwhelming adversity, it is possible to prevail. It just takes determination,” said Fowler. “It was a perfect ending to a perfect conference.” John Mosley, President of MCRA and owner of Clinton Body Shop in Richland, MI, said the first-ever southern industry event was a big success with outstanding speakers and a great turnout. He especially enjoyed Rick Leos’ presentation about the Toyota predictive system and urges all body shop owners and managers not familiar with the new program to do their research. Steve Plier, acting president of ALARISE, was extremely pleased that the first southern conference turned out to be such a huge success, with repairers coming from Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee. “Not only were the attendees from repair See Southern Conference, Page 30

www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 27

Continued from Cover

NMBSA Legislation

“When you’re called upon to push forward with this bill, remember the help you provide to the NMBSA and its members will ultimately have a positive impact on consumers and the collision repair industry.” Below is the actual bill (Legislation/HB 4635) as introduced:

The people of the State of Michigan enact: Sec. 2110c.

(1) An adjuster or insurer or a director, officer, broker, agent, attorney-infact, employee, or other representative of an insurer shall not do any of the following with respect to a claim under an insurance policy for collision damage to an automobile: (A) Compel or coerce the insured or claimant to choose a particular repair facility, claim center, or other similar facility for presenting the claim or automobile for loss adjustment, inspection, or repair, regardless of whether the repair facility, claim center, or other similar facility is under the insurer’s direct control. A violation of this subdivision is a violation of Section 2110B(1). This subdivision does not prohibit an insurer from requesting the insured or claimant to present the claim or automobile for loss adjustment or inspection at 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. (B) 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 the insured or claimant of the insurer’s ownership interest in, or agreement with, a repair facility, claim center, or other similar facility as required by Section 2110B(2). (C) Attempt to revise or alter, through force, intimidation, fear, authority, or a boycott, an estimate for repairs of a damaged automobile that was written by a licensed repair facility. (D) Attempt to secure, except in the instance of imminent irreparable harm and injury, the insured’s or claimant’s signature authorizing the person securing the signature to act in behalf of the insured or claimant in selecting a repair facility or claim center. (E) 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. (F) Dispute coverage of the loss without performing a physical inspection of the automobile. (G) 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. (H) 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. (I) 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. (J) 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. (K) 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. (L) Disregard a repair facility’s posted labor rate without proof of the range of posted door rates available to the public in the market. (2) An insured, claimant, repair facility owner, potential repair facility owner, or person aggrieved by this act may bring a civil action against an insurer for a violation of this section. A plaintiff who prevails in an action under this subsection may recover both of the following: (A) Damages in the amount of 3 times the actual loss or $500, whichever is greater. (B) Actual attorney fees and costs. (3) A court shall liberally construe this section to allow 1 or more persons affected by the violation of this section to commence a class action under the court rules. (4) A remedy provided by this section is in addition to any other right or remedy at law or otherwise. (5) as used in this section, “nonoriginal equipment manufacturer aftermarket crash part” means that term as defined in Section 2 of the aftermar-

28 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

ket crash parts act, 1991 PA 158, MCL 257.1362. Allor urges NMBSA members to contact their Northern Michigan Representatives and tell them you’re in support of HB 4635. Rep. Greg MacMaster Dist. #105 S-1389 House Office Building P.O. Box 30014 Lansing, MI 48909 (517) 373-0829 GregMacMaster@house.mi.gov

Rep. Peter Pettalia Dist. #106 S-1485 House Office Building P.O. Box 30014 Lansing, MI 48909 (517) 373-0833 PeterPettalia@house.mi.gov

Rep. Frank Foster Dist. #107 S-1486 House Office Building P.O. Box 30014 Lansing, MI 48909 (517) 373-2629 FrankFoster@house.mi.gov

Rep. Ed McBroom Dist. #108 S-1487 House Office Building P.O. Box 30014

Lansing, MI 48909 (517) 373-0156 EdMcBroom@house.mi.gov

Rep. Bruce Rendon Dist. #103 S-1387 House Office Building P.O. Box 30014 Lansing, MI 48909 (517) 373-3817 BruceRendon@house.mi.gov

Rep. Wayne Schmidt Dist. #104 374 Capitol Bldg. P.O. Box 30014 Lansing, MI 48909 WayneSchmidt@house.mi.gov

In other NMBSA news, the membership and their employees and family members were invited to a bowling night at Gaylord Bowling Center, 1200 Gornick Ave., on Friday, May 17 from 7-9 p.m. Cost was $15 per person and includedpizza and refreshments. Prizes will be given to good, bad and awful bowlers. In addition, LKQ & Keystone Automotive will host an A/C Clinic and Open House on Saturday, June 8 from 3-9 p.m. at LKQ/Keystone of Traverse City. The event will include product information clinics, vendors, dinner, refreshments and raffle prizes.

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Hours: M-F 7-6; Sat 8-4 www.autobodynews.com | JUNE 2013 AUTOBODY NEWS 29

On Creative Marketing

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

The Power of Persistence in Marketing with Thomas Franklin

One rule you’ll find in many sales and marketing books is that the average sale is made after the sixth visit or call, but the average sales person gives up after the third visit or call. This information provides a reliable way to increase sales power. The usual sale in a collision repair shop is just getting the owner of a vehicle who brings it into the shop is leave the keys and let the shop do the repairs. But generally a shop also works to sell dealerships, fleet management companies, insurance companies and more on referring business to the shop. While these sales efforts involve direct calls and visits, perhaps the most common violation of this rule is the sale to the vehicle owner who comes in for an estimate. Back in the ‘90s, I visited a shop where the owner said he had a nearly foolproof method of capturing prospects that came in for an estimate and didn’t leave the vehicle. He had a series of postcards he sent out after the prospect left. The first simply invited the prospect to come back and emphasized the shop’s superior cycle time, paint quality, customer satisfaction and more. The next offered some freebees, like a detail or wash. And the next offered a financial consideration, like a lower rate if it was self-pay or perhaps a rebate on insurance jobs. He said he captured nearly half of those he lost when they came in. Continued from Page 26

Southern Conference

facilities pleased and enthused about the conference, but we also received great comments from our participating vendors,” said Plier. “To be the first joint effort between two state organizations resulting in a turnout that represented six southern states I feel speaks volumes that repairers are understanding issues must be addressed and the route to change is through awareness and education within and of the industry.” Without the sponsors, Plier said the conference would not have been able to take place. “I would like to very much express my gratitude to the sponsors for their participation for without them the conference would not have taken place.” Sponsors included: Ed-

In today’s digital world where snail-mail is viewed as too slow to be of value, an immediate e-mail or Facebook or Twitter message might be more effective. But how many shops stop after the first, second or third message, if they send anything at all. And of those that follow up with a phone call, how many even go to a third call? A lot of guys might say six calls would be ridiculous. But might there be a good reason to make those six calls? Last year I wrote about the lifetime value of a repeat customer. I figured that in 15 years a driver might have a reason to visit the shop three-to-five times and generate at least $5,000 worth of business. In a shop that depends heavily on repeat business, this should be reason enough to make the calls or send messages. When it comes to making the calls, the old nemesis of sales people might come into play. It’s well-known the biggest obstacle to persisting in sales is fear of rejection. An estimator may feel that fifth or sixth call will just annoy the prospective customer and do more harm than good. If the follow-up calls are just repeats of the ones before and lack any new reason to call, indeed, the prospect could get annoyed and hangup the phone. It’s true. No call at all is better than a totally unplanned call with no strategic reason in mind. To make

wards Chevrolet, PPG (Rozars and Automotive Paint Supply), Automotive Color, Gray Daniels, National Coatings Supply, Overnights Part Alliance, Advance Equipment Solutions, All Star Auto Lights, Byrd’s Automotive Inc., CARS, ComputerLogic/PMC Logic Inc., DuPont Performance Coatings and O’Reilly’s Auto, English Color and Supply, Enterprise, LKQ, Mitchell, The Clip Man, and Urethane Supply Company. Plans for the 2014 conference are being made for April 11–13 with state organizations in Georgia, Alabama, Mississippi, Tennessee, and possibly Florida, working together to coordinate the second annual Southern Automotive Repair Industry Conference in Biloxi, MI. Special thanks to Bill Fowler for providing summary information for this article.

30 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

the six-call strategy work, every one of the calls must have a specific purpose that rings true to the prospective customer. Like the shop owner that sent follow-up postcards, the first few calls should follow the same pattern: emphasizing the shop’s superior cycle time, paint quality, and customer satisfaction. The next call could offer some freebees, like a free rental car, a detail or wash. And the next could offer a financial consideration. But at this point, if there is still no sale, the next calls have to take the push to an entirely new level. Once again, in my previous article, I quoted marketing guru Jay Abraham who says: “Until you identify and understand exactly how much combined profit a client represents to your business for the life of that relationship, you can’t begin to know how much time, effort and ... expense you can afford to invest to acquire that client in the first place.”

At some point you have to ask yourself, how much would it be worth to get this customer for a lifetime? Some shops buy jobs from tow-truck drivers. Some shops pay dealerships a monthly fee to get their work. How much would you be willing to pay the customer to get his or her business for life? That fourth, fifth or sixth call can’t be just another “canned presentation.” At this point there has to be enough on the table to really capture the prospect’s attention. For example, you might ask him or her if someone at work or among family and friends also needs body work on a vehicle. If so, it could be feasible to offer this prospect half price or less if one of the other vehicles also comes in for repair. Here is shot at getting several lifetime customers. Once you’ve gone beyond the basic three calls, these next three calls must be creative and build on the prospect’s ego or desire for the best possible deal.

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Safelite Named in New Lawsuit Alleging Windshield Separation Due to Poor Installation A woman who says she lost both her husband and young daughter in a rollover crash in which the windshield allegedly separated from the vehicle has filed suit against Safelite, whom she claims replaced the windshield in the vehicle. The suit was filed in U.S. District Court in Clark County, Nev., according to court documents obtained by glassBYTEs™ . The suit was filed by Iwona Patnaude, who is listed as the surviving spouse of Jason Patnaude and Victoria Patnaude, and Nancy Patnaude, Jason’s mother. The suit alleges that on December 27, 2011, Jason Patnaude was driving a Toyota Tundra westbound on I-94 in North Dakota when he began to “slide upon contacting a patch of snow and

ice on the roadway.” Both Iwona and Victoria Patnaude were passengers in the vehicle at the time of the accident. “Directional control of the subject Tundra was lost and could not be regained,” attorneys write in the court documents. “The subject Tundra crossed the highway’s median and rolled over across the eastbound lanes and off the roadway. During the incident, the windshield of the subject Tundra separated from the vehicle. During the incident, the roof of the subject Tundra collapsed. Jason R. Patnaude and Victoria Patnaude sustained fatal head injuries in the crash. Jason R. Patnaude and Victoria Patnaude died at the scene.” During the incident, attorneys allege “the windshield separated from the

rest of the vehicle, contributing to the degree of crush sustained by the subject Tundra’s roof structure. … The Safelite defendants’ negligent installation of the windshield on the subject Tundra resulted in its failure in the rollover incident.” In addition to the Safelite Group and its third-party administration arm, Safelite Solutions, Anthony J. Stark is listed as a defendant in the suit. His address is listed as Safelite AutoGlass, 62 Spectrum Blvd., Las Vegas, NV 89101. Patnaude’s attorneys allege that “as a direct and proximate result of the incident addressed in this complaint, plaintiff Iwona Patnaude sustained severe nervous shock and emotional upset secondary to her close proximity

to and observation of her fatally injured and suffering husband and daughter.” The claimants are seeking a jury trial and reimbursement for injuries as well as damages in excess of $50,000. Safelite PR manager Melina Metzger has confirmed the company performed a windshield replacement on the vehicle six years prior to the accident, but decline to comment further. Other defendants listed in the lawsuit include Toyota Motor Corp., Toyota Motor Sales USA, Toyota Motor Engineering & Manufacturing North America, Toyota Motor Manufacturing of Indiana, AutoNation USA Corp., Desert Scion/Toyota, Steve Romeo and Lisa Armstrong, as well as Centennial Toyota.

I-CAR Announces Keynote Speakers Reginald Modlin and John McElroy for Boston July Meeting

I-CAR® announced that Chrysler Group LLC Director of Regulatory Affairs, Reginald R. Modlin, will serve as keynote speaker during the I-CAR InterIndustry Conference in Boston. As Director of Regulatory Affairs, Modlin is responsible for all aspects of product safety and environmental compliance. His key responsibilities include policy development to guide reaction of legislation and regulations in the NAFTA regions vehicle emissions certification,

fuel economy strategy and reporting, and vehicle safety compliance demonstrations and resolution of compliance issues with EPA and NHTSA. Reginald Modlin has been serving in this capacity for 14 years and has been with Chrysler for 38 years. Reginald Modlin

On July 24 and 25, renowned Autoline TV host and author John McElroy will serve as moderator leading the I-CAR Conference attendees through the fastpaced, comprehensive “30,000-ft view” agenda on “The Changing World of Vehicle John McElroy

Technology & What it Means to You.” The conference concludes with a panel who will discuss the repair and business impacts associated with today’s rapidly evolving vehicle technology landscape. I-CAR speakers include technical leaders from NHTSA, IIHS, the Center for Automotive Research (CAR), vehicle OEMs, and OEM suppliers.

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SEMA Show Enhances Services for Collision Repair Market, Adds Up to 20,000 Sq. Ft. for 2013 The 2013 SEMA Show will include enhanced features for the Collision Repair & Refinish market, including an expanded show floor area, targeted activities both inside and outside the Las Vegas Convention Center, and an unsurpassed educational program. The upgrades come as a result of the fastgrowing interest from both exhibitors and buyers in the collision market segment. “As interest grows and the landscape changes, we continue to evolve and are excited about the plans for 2013,” said Peter MacGillivray, SEMA VP of events and communications. Last year’s SEMA Show featured 330 exhibitors in the Collision Repair & Refinish area and the Tools & Equipment area, the two sections where many exhibitors feature products for the collision market. These exhibitors were housed in over 88,000 square feet in North Hall of the Las Vegas Convention Center. For 2013, the Collision Repair & Refinish section will expand into an adjacent area of the LV Hotel, accommodating up to

20,000 square feet of additional space. “The expanded floor section makes it really easy and convenient for buyers to see all the products in the collision market within a defined area,” said MacGillivray. More than 20,000 SEMA Show buyers expressed an interest in collision repair products, and 87% of all buyers have buying influence. Those in the collision market are also able to network and expand their knowledge during several industry meetings and educational events taking place. The Collision Industry Conference (CIC), the National Auto Body Council (NABC) and the Society of Collision Repair Specialists (SCRS) are amongst the groups hosting meetings during the SEMA Show. A comprehensive Repairer Driver Education program is also presented by the SCRS. “From the impressive growth of exhibitors, to attendees who are reaching out to SCRS already looking to register and ask questions about our education, it is clear the collision in-

Industry Demonstrates Early Confidence in SEMA Show with Six Percent Exhibitor Increase

Nearly 2,000 exhibitors are confirmed to participate in the SEMA Show Priority Booth Selection Process taking place later this month. The number represents a six percent increase over the number of companies that participated in the process in 2012. “With the increased commitment exhibitors are demonstrating earlier in the year, it’s apparent the SEMA Show provides unmatched brand-building visibility and sales exposure in one venue,” said Peter MacGillivray, SEMA VP of events and communications. Manufacturers exhibit at the four-day event each year to showcase new automotive parts and accessories, and to connect with more than 60,000 buyers from throughout the world. Through programs and features such as the New Products Showcase, product demonstrations and sectionalized floor plan, exhibitors are able to connect with the most relevant buyers. “The earlier a company signs

up, the more likely they are to take part in all the added-value programs we have available,” MacGillivray said. “We’ve seen direct connections between the amount of planning a company does to the level of success they achieve.” Nearly 70 percent of buyers visit the SEMA Show with a plan and identify the exhibitors they want to meet with in advance, according to a 2012 SEMA Show survey. The most influential factors that buyers reported as having an impact on their decision to visit an exhibitor were participation in the New Products Showcase, the Show directory listing, and pre-Show contact from an exhibitor. Companies may still sign up to exhibit at the upcoming show at www.SEMAShow.com/buyabooth. Attendee registration will be available from the site in early May. The 2013 SEMA Show takes place Tuesday-Friday, November 58, in Las Vegas, Nevada at the LVH Conference Center.

Progressive Sues Other Insurers For Alleged Patent Infringement

Progressive Insurance has filed patent-infringement lawsuits against State Farm Mutual Automobile Insurance Co. and Hartford Financial Services Group Inc. over auto coverage and premiums based on vehicle usage.

According to the lawsuit, the insurers are infringing three patents that relate to vehicle monitoring and ways the monitoring is used to determine insurance rates. Both complaints were filed in federal court in Cleveland.

32 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

dustry is really excited about this year’s show,” said Aaron Schulenburg, SCRS Executive Director. Schulenburg says that the 2013 Repairer Driven Education program will include fresh and inspiring content, while continuing to remain relevant to collision repairers. “Each year we have taken feedback from past attendees and used it to amplify our upcoming offerings,” he said, noting that 2013 will be the group’s fourth year partnering with SEMA to present the educational program. “This year, we are adding to the format with designated tracks that can guide repair industry professionals through the week-long program based on their core interests in what they need for their business. Some want to better understand how to manage their business, and what makes it tick, while some are looking for ways to enhance and grow it through new business opportunities or untapped customer bases; others may be looking for ways to best position their business to make it more attractive when they wish to

sell it, or learn how to compete in a consolidating marketplace. Regardless of interest, there is something for everyone and the objective remains the same: to address real issues faced by collision repairers, while providing tangible information that they can directly apply to their business when they return home.” SEMA Show exhibitors began selecting the location for their booths during the Priority Booth Selection Process, beginning with exhibitors in North and Central Halls, followed by those in upper and lower South Halls. The 2013 SEMA Show is set for Tuesday-Friday, November 5-8, 2013, in Las Vegas, Nevada. The annual event typically attracts more than 130,000 individuals from 125 countries, making the annual show the premier automotive trade event in the world. Manufacturers come to the event to showcase products that enhance the styling, performance and functionality of cars, trucks and SUVs. For details, visit www.SEMAShow.com.

Stacy Bartnik Joins Team PRP as Executive Director Team PRP has named Stacy Bartnik as its new executive director. Bartnik most recently served as VP of opera-

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Mitchell ITR Says Collision Parts Index Declined Last Year For First Time in Ten Years

The average price paid for collision parts took a dip in the latter half of 2012—according to Mitchell’s Q2 2013 Industry Trends Report—the first time that the indexed price for parts has decreased in 10 years. “When we created the Mitchell Collision Parts Price index (MCPPI) in 2003, we wanted to track inflationary trends in parts use over a period of time,” said Greg Horn, Vice President of Industry Relations of Mitchell. His recent article provides the first 10-year-long review of inflationary trends in parts pricing. Mitchell developed the index by first creating a “market basket,” similar to how governments determine the Consumer Price Index of the commonly used goods and services. Mitchell created the market basket by selecting the 20 most frequently replaced collision parts. “Interestingly, for the first time, we saw a decrease in the indexed price for the market basket,” wrote Horn. “The 2012 decrease was not evident when we ran the index report early in 2012, so the decrease was in the latter half of 2012. That led us to the next question: what type of part or vehicle origin is driving the de-

crease?” Horn says that although there were moderate increases in the Asian and European market basket, the domestic vehicle parts market basket experienced such a decrease that it offset this. Estimates have a higher number of new, OEM parts on average than any other part type, such as recycled or aftermarket. “The decrease in the average OEM part price for domestic vehicles was a mere $6.33 ($245.12 for 2012 vs. $258.12 for 2011) but that drove a 0.14 decrease in the overall market basket index,” writes Horn. The expansion of the competition parts price matching programs from the domestic OEs is driving the decrease in the overall index because of the large number of domestic vehicles in the U.S.... and the overwhelming dominance of new OEM parts selected on the average repairable estimate.” Horn notes that whether or not the decrease will continue depends on a number of factors, such as whether the total fleet of repairable vehicle claims continues to age and whether the OEs continue to aggressively price match to retain market share in part sales.

Avery Names New CIC Standards Cmte Leaders George Avery, chairman of the Collision Industry Conference (CIC), has appointed several new individuals to oversee the organization’s Standards Committee in a final effort to research possible solutions for the development of industry repair standards before the committee is permanently shut down in November. Michael Quinn, senior vice president of business development for uParts Inc. and past CIC chairman, has been named chairman of the committee. Mike LaVasseur, president and chief operating officer of Keenan Auto Body, and Paul Krauss, president and CEO of Craftsman Autobody, have been named vice chairs of the committee. Brett Bailey, owner of A&B CARSTAR, will also play a key role on the committee. George Avery provided an overview of the work that the CIC Standards Committee has been charged with for the remainder of 2013 during the most recent CIC meeting in Phoenix. “The Standards Committee members have worked hard over the past few years and I don’t want that good work to go to waste. I would like to thank those who worked hard to get us this far and encourage anyone who has a passion for the subject to join the committee,” Avery said. “Having past CIC chair

Michael Quinn step in as committee chair, as well as Mike LaVasseur and Paul Krauss as vice chairs, is exciting. They bring the repairer’s perspective and overall understanding of all stakeholders in the auto body repair industry.” Avery said key issues that the Standards Committee will research include examining shop equipment and capabilities requirements, OEM repair procedures and recommendations, and possible facility inspection and verification processes. The Standards Committee will make a report on shop equipment and capabilities requirements, and will clarify issues surrounding OEM repair procedures during the next CIC meeting, which is scheduled for July 23-24 at the Westin Boston Waterfront hotel in Boston.The committee will finalize its standards work this fall. It will present findings on the research it has completed and suggest possible repair standards solutions for the future during CIC’s November meeting in Las Vegas. “After November, the committee’s work will conclude,” Avery said. “We’re not going to ‘saw sawdust’ any more with the topic because, as the CIC Mission states, ‘the forum [communicates] findings and possible solutions, and when it comes up to that point it stops.”

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Rhode Island Industry Attorney: “Body Shops Suffer From an Image Problem” In Rhode Island, the annual State House auto body shop war has renewed, with an exasperated Jina Petrarca-Karampetsos telling weary senators — more than four hours into a late-night hearing: “Body shops suffer from an image problem. “And that image problem is perpetuated by individuals who don’t know the facts, who portray us as greedy thieves,” the sister of former Rep. Peter Petrarca — and lawyer for her father’s Providence Auto Body — told the Senate Judiciary Committee. “We’re body-shop people. We protect your second-biggest asset,” but “we are not doctors. We are not even carpenters. We’re body-shop people so we actually are, amazingly, people that make victims of insurance companies. “Some people actually feel bad for insurance companies when they compare them to us.” She suggested the senators see the insurers instead as “unreasonable” people who “refuse to negotiate.” However, the hours-long hearing and debate drew little attention outside the two affected industries. The hearing ran more than 5½ hours. It drew executives and lobbyists from Nationwide Mutual, PCI, Amica, the American Insurance Association, among others, and from the other side, the Auto Body Association of Rhode Island and a number of its members, including John Petrarca. The battle centered on this year’s version of the right-to-sue legislation that cleared the General Assembly at 2:58 a.m. in the final hours of last year’s session, which Governor Chafee ultimately vetoed. The bill co-sponsored by Senate Majority Leader Dominick Ruggerio and Majority Whip Maryellen Goodwin would require insurers to negoti-

ate payment rates with body shop owners and give the body shops the right to sue the auto insurance companies if these negotiations do not result in an “agreed price.” This year’s bill is not identical. For example, the rewritten bill would no longer require an insurer to pay the legal bills of an auto body shop that prevailed in court. But it is substantially the same. And so are the arguments pro and con. And people affiliated with the body shops gave at least $18,850 from Jan. 1-March 31 to the campaign funds of House Speaker Gordon Fox and Senate President M. Teresa Paiva Weed and their top deputies. Campaigning for a veto last year, the American Insurance Association (AIA) issued this statement: “No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third party payers under threat of litigation.” In his subsequent veto message, Chafee said: “While I understand the desire to ensure auto body employees are adequately compensated for their skills and attention to safety, I believe this bill would hurt Rhode Island consumers by raising their auto insurance rates and impairing their existing contract agreements with their insurance companies. “With many Rhode Island families continuing to struggle as our state economy recovers, I do not believe it is appropriate to pass on any unnecessary additional costs to consumers,” Chafee said. Rhode Island drivers already pay the fifth-highest collision insurance premiums in the nation, $351 here compared with $290 on average nationwide, according to a March 11 “Special Report” from the Property Casualty Insurers Association of

U.S. Supreme Court Rules Against Towing Company

The U.S. Supreme Court has ruled unanimously that federal trucking laws don’t preempt a state claim against a New Hampshire towing company. The court ruled in a Manchester case involving Robert Pelkey, who had to go to a hospital for an infection and then suffered a heart attack. He used a handicapped parking spot, and left his car parked there while he was hospitalized. The car was towed by Dan’s City Auto Body when it wasn’t moved during a winter parking ban and then sat in the

towing business’s lot for two months. The shop believed it was abandoned. It eventually took ownership of the car and traded it. Pelkey sued Dan’s City Auto Body under the Consumer Protection Act. The case ended up in the New Hampshire Supreme Court, which overturned a superior court’s finding and ruled in his favor. The attorney for the tow company appealed, citing federal trucking laws that were passed in the 1980s to unify trucking and tow regulations among all the states.

34 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

America. But Petrarca-Karampetsos told the senators that more than 70 of the 700 companies that write property casualty insurance in the state “pay much higher than $45 an hour. Much higher. They pay over $70 an hour.” “All it asks them to do,” she said of the legislation, “is negotiate. … It is beyond me how this is such an unconscionable controversial thing that makes us look like greedy thieves.” Goodwin is sympathetic. “I just believe [for] the auto-body industry, it’s a matter of fairness,” she said Tuesday. “These have been ongoing disputes for years and years and years between the auto-body industry and the insurance industry.” Asked why the state should intervene in a private dispute over how much repair shops should be paid, Goodwin said: “People have the right to sue all the time when they can’t come to some type of agreement. What is so wrong about going into court and having a court settle something that cannot be settled?” As for warnings that higher rates will follow, Goodwin said the insur-

ance industry “has some of the deepest pockets in America. They can battle back. … I am looking out for the small business owner, the little auto body shop and the consumer at the same time.” Added Ruggerio: “I am not concerned about it because, personally I think if the auto bodies have that leverage, then the insurance industry would deal a little more fairly if they had something like that hanging over their head.” In the weeks leading up to this year’s hearing, the Property Casualty Insurers Association of America launched a $30,000 radio ad campaign. “If you think this all sounds all too familiar, you’re right — the auto body shops are at it again!,” the ad begins. If passed, the bills “could be harmful to drivers by increasing the cost of having a vehicle repaired following an accident, potentially forcing you to pay even more for your insurance coverage.” “Let’s stop the auto body repair rip-off, once and for all,” the ad said.

Dan Risley Appointed Interim Executive Director of ASA, Outlines ASA Position on PartsTrader On April 22 the Automotive Service Association (ASA) announced that Dan Risley had been named interim executive director. The announcement came a little over a month after Risley joined ASA as Executive Vice President. Risley began his 24 year career in his family’s collision repair business in Illinois, and has worked for Allstate Insurance for six years since leaving SCRS, an experience he says gave him “a completely different perspective” on insurers and how they operate, something that will benefit the association and ASA members. “My perspective on insurers is changed,” Risley told a trade industry media source recently, “I walked in there with my preconceived notions about what insurance companies do, why they do it, what influence they have, what they try to influence and what’s important to them. And some of those things were true, and a lot of them really weren’t. A lot of them were completely different than what I thought they would be. Risley’s most recent position with Allstate involved overseeing part of the insurer’s DRP network. “I was the market claim manager for the Good Hands Repair network. Basically, I had oversight [of the shops] in half of

the country and the staff that oversees them. Again, it was a very unique perspective that I was able to attain, because I got to see firsthand what was really important to insurance companies. “What motivates [insurers] with some issue, may be the completely the opposite of what you might read in the trade press or what you might hear from the industry in general. The broader perspective [I gained from working at Allstate], when we approach a particular issue, is going to allow me to maybe have a little bit different strategy and tactic in terms of how we might address that and maybe bring it to a resolve a little bit quicker.” One of those insurer related issues the association is currently engaged with is State Farm’s PartsTrader initiative. Risley believes there has been some confusion around ASA’s position on PartsTrader. He explained, “ASA does not support PartsTrader and, by the way, nor should we. As an association it’s not our role to support or endorse a given product. ASA does not support State Farm and nor should we.” “We view PartsTrader in a very similar vein as we do an estimating system or a CSI vendor. We didn’t

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support any insurance company mandating those. So this falls in that same bucket. We don’t endorse or support any insurance company mandating the use of specific products.” Risley said. Risley said that members that have participated in the pilot have shared concerns about how the system works, and that while they have concerns, they are working with PartsTrader and State Farm to improve the system. Risley explained that the association has maintained an active dialog with both PartsTrader and State Farm on the issue and he believes this ongoing dialog has led to some confusion about ASA’s position. Risley said, “We’ve very clearly heard from our membership that this has been a product that has not been a value-add. It has actually cost them more in administrative time, it’s more of a burden.” Commenting on parts e-commerce generally, Risley believes the concept is here to stay regardless of the outcome of State Farm’s pilot with PartsTrader. “We’re not going to stop parts procurement. We’re not going to stop e-commerce. That stuff is going to happen. But we can play a role in mak-

ing it better,” explained Risley. Right now, though, there are concerns about the value these new products and processes bring to the collision repairer. “Someday could it be possible that those products are driving more value back down to the repairers? The answer is ‘yes.’ It will eventually get there. But when that does happen, repairers are going to adopt them all by themselves because it’s going to help them be more efficient,” explained Risley. “If it’s not helping them be more efficient today and we’re being told we have to use them, that’s a completely different context for us. Why would we support that?” Risley has also said that ASA views the use of Most Favored Nation (MFN) clauses in DRP contracts as a much bigger concern for repairers than PartsTrader. “We’ve heard a lot of noise on PartsTrader, and heard relatively nothing on the most favored nation clauses [but] the PartsTrader piece probably affects a smaller subset of the industry, when the most favored nation clause not only affects your State Farm business, but it has the possibility of impacting every job that comes through your shop.”

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ASA Business Meeting Emphasizes Unity, Transparency, Inclusion & Collaboration

The Automotive Service Association (ASA) held its annual business meeting April 19–20 at the Hurst Convention Center in Hurst, Texas. The themes of the meeting were: Unity, transparency, inclusiveness and collaboration. “The board is committed to not only working more closely with each other, but also with our affiliated associations. In fact, we shortened the open board meeting to accommodate an interactive session with the affiliates in attendance,” said Darrell Amberson, AAM, vice president of operations at LaMettry’s Collision, Minneapolis, and ASA’s new chairman. “We recognize the strength of a national association goes hand in hand with the strength of our affiliated associations.” “The changes that took place at the national business meeting show that ASA is a member-driven association, and the direction and excitement that came from this meeting demonstrate that ASA is headed in the right direction and the members are in good hands with the new board,” said Jeff Lovell, AAM, executive director of ASA-Northwest. “ASA-Midwest is pleased to have had the opportunity to meet with the ASA board and Dan Risley (interim executive director) during the annual business meeting. As a result

Carlyle Group to Sell 50,000 Share Stake in Hertz

The Carlyle Group is selling its stake in Hertz Global Holdings, Inc., approximately 50,000 shares held by investment funds associated with The Carlyle Group. Goldman Sachs will act as underwriter in a registered public offering of those shares. Hertz said the sale of stock by the investment firms represents practically the entire interest the funds held in Hertz stock. Reuters reported that prior to the sales, CD&R and Carlyle were the second and third largest shareholders in Hertz, respectively, according to Thomson Reuters data. The three investment funds bought Hertz from Ford Motor Co. in 2005 for $5.6 billion. Hertz operates its car rental business through the Hertz, Dollar and Thrifty brands from approximately 10,460 locations worldwide. The company claims to have the second largest market share in the off-airport car rental market in the United States. The Carlyle Group purchased DuPont’s Performance Coatings and Service King this year.

of those conversations, we are excited about the direction and opportunities presented by the new leadership,” said Sheri Hamilton, AAM, executive director of ASA-Midwest. ASA’s board of directors also emphasized the importance of the association’s governmental affairs efforts. ASA plans to increase its visibility as the industry’s leader in the development of public policy for independent automotive repairers. In addition to the existing tools in place for ASA’s membership—grassroots support, the ASA PAC and the Washington, D.C., office located on Capitol Hill—the board reviewed a new design for ASA’s public policy advocacy website, TakingTheHill.com, which will launch soon. “We finished building the foundation for a new era at ASA and now we will be aggressively pursuing those who want to be part of the future of the automotive repair profession. The board is eager to collaborate with our existing industry partners, and excited about the potential to build new relationships within the industry that will benefit the members of ASA,” said Ron Nagy, AAM, owner of Nagy’s Collision Centers in Ohio and ASA’s immediate-past chairman. “We also have laid the foundation for a radical new ASRW with positive changes in the works for both NACE and CARS.”

Colorado Auto Dealers Find Support in State Legislature

Colorado legislators voted to approve a bill that requires all automobile manufacturer franchise agreements to conform to current franchise law rather than to meet the legal requirements when the contract was signed, despite officials from the Alliance of Automobile Manufacturers (AAM) calling the measure an “extraordinary” and “shocking” shift of the balance of power. This is the fourth time in the past five years that the Colorado Automobile Dealers Association (CADA) has brought a bill to give dealers more power in their negotiations with the national and international companies that supply them their products. They included bills to bar manufacturers from requiring major dealership upgrades more than once every seven years and to require that auto makers that closed dealerships due to bankruptcy to give those dealers first right of refusal if they reopen a franchise in the area. The right-of-refusal bill resulted in a lawsuit against the state.

36 JUNE 2013 AUTOBODY NEWS | www.autobodynews.com

CARSTAR to Support “Hire Our Heroes” Campaign

CARSTAR Auto Body Repair Experts is supporting 3M’s efforts in partnering with the Collision Repair Education Foundation’s Hire Our Heroes campaign. The initiative provides scholarships and support for collision repair training, with a goal of driving employment in the collision repair industry for America’s veterans. Enrollment to win scholarship funds from the Collision Repair Education Foundation opened on Jan. 1, 2013, and remain open through May 15, 2013. The 3M Hire Our Heroes program also will help fund rehabilitation for the wounded veterans through Operation Comfort’s Automotivation program. It provides opportunities for wounded soldiers to channel their automotive skills, or learn new ones, to restore vehicles through the National Auto Body Council (NABC) Recycled Rides program for other military veterans. Participating CARSTAR shop owners throughout the U.S. will support the campaign. For every qualifying purchase of 3M products by a CARSTAR shop owner, 3M will contribute to the campaign to reach a $250,000 goal.

AMI Accepting Applications for Cosette/Westerlund Award

The Automotive Management Institute (AMI) is now accepting applications for the Richard Cossette/ Gale Westerlund Memorial Scholarship. The scholarship honors the contributions these individuals made to AMI, ASA and the collision repair industry. The scholarship recipient will receive $1,000 toward the recipient’s expenses to attend the 2013 International Autobody Congress & Exposition (NACE) in Las Vegas, Oct. 16–18. To be eligible for the award, the following requirements must be met: ► Applicant must work in the collision repair industry ► Applicant must demonstrate an interest in self-improvement through management education ► Applicant must own or work for a business that is an ASA collision division member in good standing ► If the applicant is not the business owner, he or she must be recommended by the business owner. To request a scholarship application, call AMI at (800) 272-7467, ext. 101, or online at www.amionline.org. Applications must be received by AMI on or before Aug. 23, 2013. Winners will be notified by Aug. 30, 2013.

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Collision Repair Education Foundation and Partners Announce First of $300,000 in Student Scholarships, Will Be Announcing More Shortly The Collision Repair Education Foundation (CREF) announced the first round of winners which are $300,00 in scholarships given out in May 2013 by the Foundation. The Scholarship is in its sixth year and is funded by the entire collision industry through the Collision Repair Education Campaign. The Scholarships offer students financial assistance with tuition and other costs. Winners of the GEICO national scholarships and tool grants are: Kyle Wright, Chantilly STEM Academy, Chantilly, VA; Olivia Barszczewski, Alfred State, Alfred, NY; Shannon Braswell, Sarasota County Technical Institute, Sarasota, FL; and Gerardo Olivera, Cerritos College, Norwalk, CA. Each receives $1,000 cash and $1,000 (retail) in tools. Winners of the Gerber Collision & Glass student scholarships and tool grant winners are: Lino Meraz and Asare Boatneg, both of Lincoln College of Technology, Melrose Park, IL. The students received $2,000 scholarship and $1,000 in tools. Winners of the PPG Industries Foundation scholarships are: Joseph

Crawford, Arkansas State in Marked Tree, Marked Tree, AR; Justin Furman, Washtenaw Community College, Ann Arbor, MI; Jessie Jensen, Bridgerland Applied Technology College, Logan, UT; and Ryan Stenzel,Ridgewater College, Willmar, MN. These students received a $5,000 scholarship. In addition, Jonathan Thigpin, Rolla Technical Institute, Rolla, MO, won $750 for the PPG MVP Industry Student Scholarship. Winners of the Service King spring tool chest grant are: Sierra Pellettieri, EVIT (Mesa, AZ); Matthew Adams, Universal Technical Institute, Belton, TX; Jovanny Jimenez, Texas State Technical College, Waco, TX; Sherdrick Russell, Universal Technical Institute, Houston, TX; and Andreass Berryman, EVIT Trade School, Mesa, AZ. These five students each received a 7-drawer roll cabinet and five-drawer top chest, valued at $2,00 each. Winners of the Alliance of Automotive Service Providers Massachusetts (AASP-MA) tool grants are: Paul Ballota, Shawsheen Valley Technical High School, Billerica, MA; William Clough, Shawsheen Valley

Technical High School, Billerica, MA; and Yscasia Cummings, Southeastern Regional Vocational Technical High School, South Easton, MA. Winners received $1,200 in tools. Winners of the CCC Michael Salvatore Memorial Student Repair Technician Scholarships: Brian Stevenson, Francis Tuttle Technology Center, Oklahoma City, OK. Brian won the top scholarship of $5,000; and two students won the $2,000 scholarships: Stephanie Franklin, Lansing Community College, Lansing, MI; and Diego Trujillo, Wiregrass Georgia Technical College, Valdosta, GA; Evan Scott, Pennsylvania College of Technology, Williamsport, PA. CREF also awarded several scholarships. The secondary student winner of a $5,000 award is Shelby Williams, Applied Technology Center, Rock Hill, SC. The post-secondary $5,000 award recipient is Shena White, Cape Fear Community College, Wilmington, NC. Three students won the Lon Baudoux Legacy Scholarship. Recipients of the $1,000 award are: Erick Escobar, Norwalk High School, Norwalk, CA; Tyler Hardin, OSU Institute of

Technology, Okmulgee, OK; and Antonio Fondren, Hennepin Technical College, Brooklyn Park, MN. The Lon Baudoux Legacy Scholarship was created to honor Lon Baudoux, I-CAR Development Manager, who passed away in 2008. Lon highly valued education, especially for secondary and post-secondary students. This scholarship is funded mainly by I-CAR staff and I-CAR instructors who worked with Lon at I-CAR. Additional scholarships include the Board of Trustees Scholarship. This $2,000 award went to secondary student Brian Stade, Applied Technology Center, Rock Hill, SC, and to post-secondary student Zach Reisner, Hennepin Technical College, Brooklyn Park, MN. The Domenic Bruscoâ&#x20AC;&#x201C;WyoTech Collision Repair Student Scholarship, a $850 award, went to Zachary Gullion, WyoTech, Blairsville, PA. The Domenic Brusco Scholarship is funded by Collision Repair Education Foundation Board of Trustee member Domenic Brusco. The Collision Repair Education Foundation will announce additional scholarship and tool grant winners.

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CIC Attendees Overwhelmingly Support BMS Data Standard Over EMS but Some Vague on the Differences, EMS is Functionally Obsolete

Estimate Management Standard (EMS) is the open, non-proprietary system for electronic communication that was first deployed in 1994, and is now the non-proprietary estimate format used by the three major estimating systems. EMS is analogous to the old dial-up modem communication, and is obsolete. The newer Business Messaging Specifications (BMS) standard is poised to replace the over-extended EMS. It can communicate massive amounts of data in a secure and efficient manner. BMS offers collision businesses the ability to control what data is made available to the recipients. BMS utilizes the very flexible XML (markup language), which provides a consistent internet communication standard, vs. the more limited scope of EMS. As Fred Iantorno, Executive Director of CIECA, has said in the past: “Implementing the BMS will make everyone more efficient and will save the industry money.” BMS offers shops three primary benefits to the Collision Repair industry, according to Michael Lloyd, CIECA’s Vice Chairman: Security—BMS allows users to control data exchanged between its trading partners. Businesses can transmit only the data needed by its suppliers, thereby retaining the confidentiality and security of the data that is in their possession. to thisScalability—In Southwest the Edition? same way

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that the internet was designed to support the communication needs of all users, BMS simultaneously supports the needs of both small and large businesses. As a result, BMS allows all businesses to exchange data using common data fields or definitions. Regardless of size, BMS can meet the needs of any business. Efficiency—Since BMS follows the XML standard, BMS can operate in any environment—server, mainframe, Microsoft Windows, MAC, etc. BMS eliminates the expense and inefficiencies associated with re-keying data. Once data is part of the BMS record, it does not need to be re-entered. All transaction history is retained, which allows the re-creation of an estimate from a prior time period, according to Fred Iantorno. BMS is “backward and forward” compatible, meaning that new releases and maintenance are easily implemented, providing a lower cost of operation. Participants at the April Collision Industry Conference (CIC) expressed a clear opinion that it’s time for information providers and others accessing shop estimate data to convert from the EMS standard to the BMS standard. A poll of more than 200 CIC attendees at the Phoenix meeting found that 84% supported such a move, however a similar poll at the CIC meeting in January found only one in three CIC attendees said they actually understood the key difference be-

uParts Gets $2M in Financing

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tween the two standards. Education participants about the two standards has been led by Data Privacy Committee chairman Tony Passwater, who said the change could have significant impact for shops, insurers, parts suppliers and other industry vendors. Passwater noted that while the older EMS standard transfers all data from the estimate—including customer, vehicle, parts and labor information—the BMS standard provides shops with more control over what data gets shared, thus making it easier for them to protect the privacy of data for customers, business partners and themselves. The current EMS standard can only transmit all the estimate data at once, no matter how little information is wanted or needed. The new BMS standard has the ability to transmit only the specific data necessary to get the particular task accomplished, such as order a part, or notify a car rental company. The BMS is also a more secure message which provides a confidential data exchange. A parts vendor, for example, can be sent just the vehicle information and parts list—not the customer’s name, address and phone number. A rental car company or CSI provider doesn’t need every line item of the estimate. Passwater said of the industry’s continued use of EMS, “There’s just unnecessary personal and business

Minnesota Senate Passes New Paint, Materials Tax Law

The Minnesota Senate has passed an omnibus tax bill that includes a new section on sales tax for the collision repairers in the state. The Minnesota House passed the bill on April 24. The 354 page bill adds the sale of motor vehicle repair paint and materials to the definition of a taxable retail sale and would impose sales tax is on the gross receipts from the retail sale of paint and materials. The bill provides a long list of materials that would be considered taxable under the law including primer, paint, clear coat, thinner, abrasives, body filler, buffing pads, grinding discs, degreasers, masking tape, sealer, tack cloth, waxes, welding rods and more. If signed into law, the new tax law for collision repairers would begin on June 30.

data that is being transmitted and captured by other parties that’s not necessary.” He pointed out that EMS, which was developed in 1994 and not updated in over a decade, lacks standardized transfer of email addresses or cell phone numbers, which weren’t as ubiquitous back then. While some information providers have moved to BMS for some or all data transfer, the vast majority of transactions are still handled through EMS, Passwater said. By the end of Passwater’s presentation, 84 percent of CIC attendees said they had a better understanding of the key differences between EMS and BMS and that same percentage said information providers should move to BMS and eliminate EMS. That change, and the elimination of EMS entirely should happen quickly, according to CIC attendees; one-third said it should happen in the next six months, another third said it should happen in a year, and 22% said within two years seems reasonable. Only 10% said EMS should never be eliminated.

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CARFAX Hit by $50M Federal Lawsuit Filed by 120 Automotive Dealerships The owners of 120 auto dealerships have filed a federal lawsuit against Carfax Inc., alleging that the vehicle history reporting company engages in anti-competitive practices and violates antitrust laws. The suit, filed in U.S. District Court for the Southern District of New York, seeks damages of more than $50 million. It also alleges that Carfax, through exclusive agreements with auto companies and popular classified auto Web sites, is “monopolist in the sale of vehicle history reports.” Larry Gamache, a Carfax spokesman, said the company is “not able to comment” on the suit. Carfax is a unit of R. L. Polk & Co. In an interview with media last December, Gamache said Carfax draws customers because it works hard to build its brand and deliver a quality product. “We have to prove over and over again that the Carfax vehicle history report is the vehicle history report of excellence,” he said. “And if we don’t do that, our partners are free to choose alternatives.” The Automotive News article was about how some dealers were angered by Carfax’s success as the dominant used-vehicle history reports provider. The lawsuit’s plaintiffs include

dealership owners from California to Vermont. Their attorney, Leonard Bellavia, a partner at Bellavia Blatt Andron & Crossett in Mineola, NY, says more plaintiffs are expected. “I have about 25 or 50 more dealers that have sent paperwork expressing a desire to join the suit,” Bellavia says. The lawsuit alleges that Carfax provides “cash or noncash marketing support” to auto manufacturers and to classified sites Autotrader.com and Cars.com as part of exclusive agreements that shut out its competitors. The suit also alleges that Carfax charges dealers “a significantly higher price” for its vehicle history reports than other providers charge. Dealers typically pay $16.95 per report or a flat monthly fee for an unlimited number of reports per dealership location, the suit alleges. “The monthly fee ranges from $899 per dealership location for some dealers to $1,549 per dealership location for other dealers,” depending in the number of vehicles in the dealership’s inventory, according to the suit. It alleges that Carfax forces dealers to buy its vehicle history reports as a result of its exclusive agreements with 37 of 40 manufacturer certified pre-

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owned programs. Virtually all of the agreements require dealers to provide Carfax reports as a condition of participating in the programs, the suit alleges. Also at issue is that Carfax has exclusive agreements with Cars.com and AutoTrader.com. Those agreements stipulate that dealers who list used vehicles for sale on those sites can only post vehicle history reports from Carfax, according to the suit. Ten firms are approved on the National Motor Vehicle Title Information System, a national data base of vehicle title information to which 41 states contribute, according to the U.S. Department of Justice Web site. Carfax’s main competitor is AutoCheck, owned by Experian Automotive Inc. Mentioned, but not a focal point of the suit, is the alleged inaccuracy found in some Carfax reports. Bellavia says that is a concern of dealers and can be cured as a byproduct of a “free marketplace.” The lead plaintiff in the suit is Maxon Hyundai-Mazda in Union, NJ. Its dealer principal, Mike Ciasulli, who is allegedly furious with Carfax but subscribes to the reports as a condition of the Hyundai certified used-vehicle program in which he participates.

Hermanek and Ricciotti Join CREF Board of Trustees

Sr. VP and Chief Client Officer Don Hermanek of Insurance Auto Auctions and National Sales Manager Renee Ricciotti of 3M have joined the Collision Repair Education Foundation Board of Trustees. The Board of Trustees consists of industry members who provide guidance in the organization’s efforts to support secondary and post-secondary collision students nationwide.

CREF Seeks Employers For Summer Students

Collision industry businesses seeking secondary or post-secondary collision students for summer employment are asked to contact the Collision Repair Education Foundation, who will communicate the employment opportunities to local collision instructors and students. Collision industry members seeking collision students for summer employment should email info@ed-foundation.org with the position details, location, and contact person.

Allstate’s Profit Dips 7.4%, Expands Esurance

Allstate, the largest publicly traded U.S. car and home insurer, said firstquarter profit fell 7.4 percent as costs tied to the most expensive storms rose. Superstorm Sandy, which lashed New York and New Jersey six months ago, cost the industry $18.8 billion, according to trade group Insurance Information Institute. Chief Executive Officer Tom Wilson, 55, has been raising prices for some coverage and changing policy terms to improve underwriting profit at Allstate’s main unit, which sells residential and auto coverage under the insurer’s namesake brand. That’s helped boost returns as he seeks to generate better results at a life unit pressured by low interest rates and spends to expand online car-insurance seller Esurance. “The Allstate brand is starting to rebuild,” Wilson said. Premium revenue in Allstate’s property and liability business rose to $6.77 billion from $6.63 billion a year earlier as the company added customers at Esurance.

ABRA Has Acquired 23 WA Precision Collision Centers ABRA Auto Body & Glass announced that it has acquired 23 Precision Collision Auto Body repair centers in the Seattle metro area and throughout Washington State. The deal marks the company’s entry into the Northwest region. Eighteen of the repair centers are centrally located in the Seattle metro area, with five additional centers in the cities of Burlington, Mount Vernon, Wenatchee, Kennewick and Spokane. “This is a game-changing acquisition for us,” says Duane Rouse, president and CEO of ABRA. “We have an extremely strong management team, a scalable integration platform, a fantastic brand, and extensive expertise and experience in the collision repair industry. Acquiring these repair centers is just one more step in ABRA’s ongoing growth strategy to better serve our customers and insurance partners.” Greg Wright, president of Precision Collision, will join the company and assume a leadership role in the region.

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