September 2012 Great Lakes Edition

Page 1

Great Lakes Edition Illinois Indiana Michigan Ohio Wisconsin

31

YEARS

www.autobodynews.com

AASP Illinois’ Statement Officially Opposing PartsTrader AASPI released the following statement on July 23: After several weeks’ consideration, the AASPI Board of Directors has determined that it will stand with AASP National, SCRS, and many other state and regional collision repair associations who now openly oppose the intrusion of yet another insurer-engineered system into the business of collision repair. PartsTrader has been touted as a

mechanism that improves process efficiency while not much has been said by its promoters about profitability. State Farm’s George Avery and PartsTrader make claims of “Win–Win–Win” scenarios for repairers, parts vendors and insurers. Yet, parts vendors and repairers who have been involved, point out the added labor to operate within the cumbersome system and the time lost waiting for the bidding process to See AASPI PartsTrader, Page 18

Welcome to our INAUGURAL GREAT LAKES Edition

Autobody News has been publishing continuously for 31 years and this month we start serving the Great Lakes region. Welcome to all our new readers in Michigan, Illinois, Indiana, Wisconsin and Ohio. Back issues and our other regional issues are readable at www.autobodynews.com.

Michigan’s Three Collision Repair Associations

See Michigan’s Three, Page 38

P.O. BOX 1516, CARLSBAD, CA 92018

Three associations are serving the collision repair industry in Michigan: ASA Michigan, the West Michigan Body Shop Association, and the recently formed Northern Michigan Body Shop Association. ASA Michigan, affiliated with the Colleyville, Texas-based national Automotive Service Association, comprises 250 members statewide, says its president, Ray Fisher, noting that dues are priced according to regions, with various terms for individual budgets. “Our membership is back to growing after a decade of a tough

economy,” he says. He is assisted by an eight-member membership-elected board of directors: Steve Tomaszewski, Alpine Collision, Grand Rapids; Steve Kirk, Kendall Auto, Portage; ChairmanElect Don Walcheski, Quality Car & Truck Repair, Big Rapids; Treasurer Tom Ham, Auto Centric, Grand Rapids; Secretary Carl Marotzke, Carl’s Auto Body, Hemlock; Collision Division Director Ken Overholser, Eureka Body & Paint, Wyandotte; Mechanical Division Director Dale Stroebel, Stroebel’s Automotive, Saginaw; and General Director Pat

Change Service Requested

by David Brown

VOL. 1 ISSUE 1 SEPTEMBER 2012

Michigan Associations Approach State Farm’s PartsTrader Bidding Program with Caution by Melanie Anderson

In June, Automotive Service Association (ASA) members and related collision industry vendors in the Michigan area were invited by ASA-Michigan to attend a “facts to date” presentation and member discussion regarding the State Farm electronic parts ordering application. Since then, ASA-Michigan continues to monitor the controversial program. “We have held a couple of roundtable discussions and data is still being collected,” said Ray Fisher, President of the ASA-Michigan group. “We continue to have dialogue and provide information when available. We will monitor things and share this information with the membership

and the repair industry. Since this is a national insurance carrier, we are providing feedback to our national association for their collision operations committee to discuss.” Led by Denise Caspersen, ASA Collision Division Manager, the standing question to State Farm on behalf of the collision repair industry is: “If this is a ‘win-win’ situation, as stated by State Farm, then now is the time for State Farm to provide the numerical data that specifically identifies any benefit (financially or operationally) to Select Service shops. If State Farm is not able to clearly demonstrate the benefits of this pilot application to the repair community, then this application should not move forward.” See MI PartsTrader, Page 20

NACE-CARS (ASRW) is Oct. 10-13 in New Orleans Full Schedule of Courses, see p. 23-27

Indiana Auto Body Association’s Parts Procurement and Insurer Interference Survey Results In mid-July the IABA conducted a member survey they called a Parts Procurement and Insurer Interference Survey which was responded to by hundreds of shops. Tony Passwater, Executive Director of IABA, wrote in summary: “There is no doubt the Parts Trader is attempting to transform our part procurement process into an ebay type environment, so the “cut-throating” can continue. This will only take away another piece of revenue/profit our businesses have relied upon for a sustainable future. Even though we have “ignorantly” agreed to so many concessions over the years, thinking we would get more work in our doors, isn’t it time to just say “No” ? Survey questions and results are

tabulated herein (bars are not to scale): 1) Do you believe the PartsTrader program is designed to improve your efficiency? Yes

1.4%

No

98.6%

2) Do you feel the PartsTrader program has benefits for collision repairers? Yes

3.5%

No

96.5%

3) Do you believe any third party has the right to mandate the usage of a parts ordering program?

Yes

2.1%

No

97.9%

See IABA Survey, Page 54

SEMA-AAPEX is Oct. 30-Nov 2 in Las Vegas For SCRS’ Repairer Driven Education, see p. 32-34

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2012 Entrepreneur of the Year Award Goes

to Feeney . . . . . . . . . . . . . . . . . . . . . . . 6

Ohio Companies Help NASA . . . . . . . . . . . 4 Ohio Governor Finalizes Statewide

Texting Ban . . . . . . . . . . . . . . . . . . . . . . 8

3M Donates Shop Products to

Ohio Law Enforcement Officers Invent

AASP Illinois’ Statement Officially Opposing

Parma, OH Auto Body Plans to Expand

ABRA Auto Body & Glass Enters Indiana

Storm Tears Off Roof of Auto Body Shop

ABRA Auto Body & Glass Enters State

Three People Found Shot to Death at

Illinois College . . . . . . . . . . . . . . . . . . . 10

PartsTrader . . . . . . . . . . . . . . . . . . . . . . 1 Market. . . . . . . . . . . . . . . . . . . . . . . . . 21 of Michigan . . . . . . . . . . . . . . . . . . . . . 46

Accidents Involving City Vehicles Cost

Des Moines Big Bucks . . . . . . . . . . . . . 15

Auto Body Shop in Milwaukee Burns . . . . . 4 Auto Shop, State Farm Give Van to

Special Olympics . . . . . . . . . . . . . . . . . 10

Safety Device. . . . . . . . . . . . . . . . . . . . . 8 Size of Shop . . . . . . . . . . . . . . . . . . . . 14

in So Minnesota. . . . . . . . . . . . . . . . . . . 8 Auto Garage . . . . . . . . . . . . . . . . . . . . 10

COLUMNISTS

Evans - Some Cool Tips and Tricks to

Save You Time and Money. . . . . . . . . . 41

Franklin - Conversations That Sell Jobs . . 50

Blaze Destroys Shop and Kills Sadie

Insider - Sale of Estimate Data Isn’t New

Car Tech Collision Reopens in Green, OH

Sisk - OE Reman Offers Remanufactured

CDE Purchases 6th Location . . . . . . . . . . . 4

Yoswick - Information Providers Assure

the Dog but the Boy is Safe . . . . . . . . . 14

after Fire . . . . . . . . . . . . . . . . . . . . . . . . 4

Columbus Only Growing OH City . . . . . . . . 4

Fox Auto Parts Joins Team PRP Network . 10 Freer Auto Body Hosts Christmas in

July Community Event . . . . . . . . . . . . . . 7

Gerber Collision & Glass Hosts Peanut Butter Rally to Help Feed Hungry Children

this Summer . . . . . . . . . . . . . . . . . . . . . 6

Indiana Auto Body Association’s Parts

Procurement and Insurer Interference

Survey Results . . . . . . . . . . . . . . . . . . . 1

Indiana Supreme Court Ruling Highlights ‘Guest Statute’ Principle—Family

Can Be Liable . . . . . . . . . . . . . . . . . . . 18

Insurance Rates Increase in Illinois. . . . . . . 8

and Shops Don’t Own That Data . . . . . 52 OEM Parts for the Best Possible Fit . . . 36 They Have Privacy Issues Handled. . . . 48

NATIONAL

13 Paint Companies Exhibiting at

NACE-CARS . . . . . . . . . . . . . . . . . . . . 27

2012 ASRW/NACE/CARS Schedule

At-a-Glance . . . . . . . . . . . . . . . . . . . . . 23

ABRA Opens Another in NC . . . . . . . . . . . 46

Automaker, OEM, and Recall News. . . . . . 30

Dick Cross to Keynote at NACE-CARS . . . 27 Florida Shop Increases Labor Rate 12.5%,

Most Insurers Object, Then Pay . . . . . . 49

I-CAR Announces Training Schedule

at ASRW . . . . . . . . . . . . . . . . . . . . . . . 51

It’s Rock & Roll and Sherwin-Williams

Insurance Auto Auctions Donates

MI Shop Owner Shot Dead on Test Drive . 16

Looking Forward to SEMA at Foose Design. 40

Likes It . . . . . . . . . . . . . . . . . . . . . . . . . 4

Michigan Associations Approach

State Farm’s PartsTrader Bidding

$10,000 to CREF . . . . . . . . . . . . . . . . . 34

Nebraska Auto Body Association Opposes

State Farm’s PartsTrader Program . . . . 55

Program with Caution . . . . . . . . . . . . . . 1

PARTS ACT Heard in House of

Associations . . . . . . . . . . . . . . . . . . . . . 1

Refinish Distributors Alliance: Collaborating

Michigan’s Three Collision Repair

Midwest Communities Stagnant . . . . . . . . . 4

Representatives . . . . . . . . . . . . . . . . . . 55

to IMPACT Minds. . . . . . . . . . . . . . . . . 42

Milwaukee Auto Body Shops Latest

Registration Up for Repairer Driven

No-Joy Joyrides in Michigan . . . . . . . . . . 16

Research, Documentation is Ammunition

Victims of Burglaries . . . . . . . . . . . . . . 10

Ohio Collision Repair SkillsUSA Advisor

Wins Trip to SEMA from SCRS. . . . . . . 21

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

Education at SEMA . . . . . . . . . . . . . . . 49

in Battles with Insurers. . . . . . . . . . . . . 53

SEMA Education Days Schedule . . . . . . . 32

Great Lakes

REGIONAL

Indexof Advertisers

Contents

Serving New York, New Jersey, Pennsylvania, Delaware 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. ©2012 Adamantine Media LLC.

Autobody News

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

Auto Painting USA . . . . . . . . . . . . . 39 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 49 Brunswick Auto Mart . . . . . . . . . 12-13 BSFco . . . . . . . . . . . . . . . . . . . . . . . 45 Chief Automotive. . . . . . . . . . . . . . . 21 Classifieds. . . . . . . . . . . . . . . . . . . . 55 Dent Tools Direct USA . . . . . . . . . . . 4 Equalizer . . . . . . . . . . . . . . . . . . . . . 42 Erhard BMW of Bloomfield Hills . . . 14 Erhard BMW of Farmington Hills . . 14 Firl Industries, Inc . . . . . . . . . . . . . . 27 Ford Wholesale Parts Dealers . . . . 46 Garmat . . . . . . . . . . . . . . . . . . . . . . 18 GM Wholesale Parts Dealers . . . . . 46 Goliath Carts . . . . . . . . . . . . . . . . . . 34 H & S Autoshot . . . . . . . . . . . . . . . . 27 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers . 44 Infiniti of Lisle . . . . . . . . . . . . . . . . . 38 Intertape Polymer Group . . . . . . . . 19 Jack Phelan Dodge of Countryside. 17 Laurel Auto Group of Westmont . . . 11 Lexus Wholesale Parts Dealers . . . 49 Mazda Wholesale Parts Dealers . . . 48

Milosch’s Palace Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 35 Mitsubishi Wholesale Parts Dealers. 48 MOPAR Wholesale Parts Dealers . . 43 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 54 OE Reman. . . . . . . . . . . . . . . . . . . . 37 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 PreFab Ads . . . . . . . . . . . . . . . . . . . 16 Preval . . . . . . . . . . . . . . . . . . . . . . . 31 Rapid Air Drying System. . . . . . . . . 36 Rare Parts, Inc. . . . . . . . . . . . . . . . . 10 Reliable Automotive Equipment . . . . 6 Rick Case Wholesale Parts Division . 9 Safety Regulation Strategies . . . . . . 3 SATA Spray Equipment . . . . . . . . . . 7 Scion Wholesale Parts Dealers. . . . 53 SEMA Trade Show . . . . . . . . . . . . . 47 Solution Finish . . . . . . . . . . . . . . . . 52 Star-A-Liner . . . . . . . . . . . . . . . . . . . 56 Subaru Wholesale Parts Dealers . . 50 Summit Software Solutions, Inc . . . 15 Toyota of Grand Rapids . . . . . . . . . . 8 Toyota Wholesale Parts Dealers . . . 51 Van Horn Hyundai-Mazda. . . . . . . . 22 Volkswagen Wholesale Parts Dealers. 51

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 3


Auto Body Shop in Milwaukee Burns

Firefighters battled a four-alarm fire during extreme heat at a Milwaukee, WI auto body shop in mid July and two fire fighters suffered from heat exhaustion. The family-owned auto body shop, Joe’s East Coast Car Shop, is located at 631 E. Center Street in Milwaukee’s Riverwest neighborhood. Apartments and an art studio were above the auto repair shop and parts of the building collapsed, the fire department said. A fire department spokesman said firefighters faced hazardous conditions because of fuel, hydraulics and oil found in the auto repair shop. There were 125 firefighters at the scene. Ambulances were at the scene, but the fire department said there were no injuries to residents or workers, but two Milwaukee firefighters were taken to an area hospital for heat exhaustion. It’s not known how the fire started, but the fire department thinks it started on the first floor. At one point, there were 4,100 customers without power.

Car Tech Collision Reopens in Green, OH after Fire

An auto body repair shop in Green, OH, closed since flames burned the building it shares with another company, recently reopened at its new home. Car Tech Collision relocated to 727 E. Turkeyfoot Lake Road in Green and held a grand reopening party for its customers. The business, along with All American Box & Supply, was damaged in a $2 million fire in its former location at 2984 Chenoweth Drive on Feb. 14. The fire started in a truck inside All-American Box & Supply, Green fire officials said. Jason Rettberg, owner of Car Tech Collision, said it has been hectic since the fire as he and employees cleaned up the old space and as he arranged for the relocation to the new space for the four-year-old business. All American Box has relocated to 708 Killian Road in Coventry Township. Rettberg said the morning of the fire, he and other workers were able to get five customer cars out of the shop in time so that they were not damaged by smoke and water and falling debris from the blaze.

It’s Rock & Roll and Sherwin-Williams Likes It

Cleveland, OH’s ‘Guitarmania’ is a public arts project that has raised more than $2 million for the United Way of Greater Cleveland and the Rock and Roll Hall of Fame. The art project occurs every few years when nearly 100 10-ft-tall Fender Stratocaster® guitars are transformed into works of art, then clearcoated by Sherwin-Williams Automotive Finishes so they can be displayed and withstand the elements throughout Northeast Ohio. These unique pieces are sponsored by area organizations, then designed, painted, sculpted and decorated by local artists and national celebrities. They are then auctioned off to raise money to support the region’s charities and the Rock Hall. According to Adam Chafe, Sherwin-Williams Automotive Finishes Vice President of Marketing, “We are proud to support what has become synonymous as a source of community pride and fundraising in Northeast Ohio.” Sherwin-Williams is one of the event’s lead sponsors, along with Key Bank, United Airlines and The Plain Dealer. “As we have in the past, we help house, transport, and provide clear coating products designed to protect these dozens and dozens of unique

Fender Stratocaster-inspired works of art,” says Chafe. “This year we used our CC931 Ultra® 7000 Extreme Speed Clearcoat. Each oversized guitar will be carefully sprayed with several coats to assure their long-term durability.” This year, the clearing process was applied at Mayfield Collision in Bedford Heights, OH. Owner Tom Griffin and his professional staff have volunteered to assist in this process. “Applying the clearcoat is the final step in completing each of these works of art, but it’s a bit of a complicated procedure,” reports Griffin. “We need to review and analyze each artist’s notes and details before spraying. We then make sure the clear coat’s chemicals don’t have any adverse affect on the paint, materials or substrates utilized in the artist’s creation.” Griffin continued, “That said, once completed, the clearcoat will then protect these works of art from the Northeast Ohio elements for years, just like it would on the family sedan or SUV.”

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CDE Purchases 6th Location

Chicago-based collision repair company C.D.E. Collision Damage Experts has purchased a sixth location. C.D.E. acquired South County Auto Body in Lansing, IL, which has served the Lansing area for more than 35 years. C.D.E. Collision Damage Experts also has locations in Lynwood, Hammond, Crown Point and South Chicago. Said Chuck Freiberg, president and CEO of C.D.E. Collision Damage Experts, “South County Auto Body is the premier body shop in Lansing, known for their commitment to a high quality repair.”

Midwest Communities Stagnant

The great majority of all communities across the Midwest are either stagnant or losing population. Milwaukee is an exception with a tiny 0.5 percent increase. The latest U.S. Census Bureau estimates for 8,509 cities, villages and incorporated towns throughout the 12 Midwest states. (The study group does not include townships, which the bureau classifies as unincorporated places.) Nearly three-fifths of those communities are in the population doldrums, with 3,675 losing residents between April 2010 and July 2011.

Ohio Companies Help NASA

Several northeast Ohio companies made parts for or helped test systems on NASA’s one-ton Curiosity rover that landed on Mars in search of life, the Cleveland Plain Dealer reports. GrafTech International Ltd. produced heat shield material and Eaton Corp., Timken Co. and Materion all contributed parts to the land rover’s rock testing system. The Glenn Research Center helped test the rover’s parachute system. Mason-based L-3 Cincinnati Electronics also contributed radios for the land rover to communicate with NASA on Earth. NASA launched the rover on its $2.5 billion, 2-year mission 8 months ago.

Columbus Only Growing OH City

Columbus was the only large Ohio city to see its population increase during a 15-month period between 2010 and 2011, an analysis of U.S. Census Bureau data says. Columbus added 10,361 people between April 1, 2010 and July 1, 2011, a 1.3 percent increase. The state capital now has 797,434 residents, more than double the population of Cleveland, the second-largest city in the state. The data come from the U.S. Census Bureau’s population estimates for cities, villages and townships.


www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 5


2012 Entrepreneur of the Year Award Goes to Feeney

Ernst & Young has given Safelite AutoGlass® President and CEO Tom Feeney the 2012 Entrepreneur of the Year Award in South Central Ohio and Kentucky in the turnaround category. The awards program was created by Ernst & Young in 1986 to honor entrepreneurs whose ingenuity and perseverance have created and sustained successful, growing business ventures. This year’s honorees were selected from more than 150 nominations by a panel of independent judges. Regional award winners are eligible for consideration for the Ernst & Young National Entrepreneur of the Year program, which will be announced on Nov. 17, 2012. Feeney was named president and CEO of Safelite AutoGlass®, the nation’s largest provider of vehicle glass repair and replacement services, in 2008 after dedicating 20 years at the company. Shortly after, the economy crashed. Yet he knew there was opportunity for the company to grow despite those challenging conditions. He set a high goal of doubling business within five years, which he did in 2011, reaching an all-time high of $1.1 billion in sales. The automotive glass repair and replacement industry is highly frag-

mented and competitive industry with very little differentiation. Feeney’s vision for Safelite® involved 1) a cultural transformation to be more committed and supportive to employees, 2) developing a powerful brand famous for service and 3) creating an extraordinary customer experience. Through the ongoing troubled economy, factors that affect Safelite’s business have also proved challenging: miles driven are down, new car sales are down, and the winter weather season did not produce work – all hurting the automotive glass repair and replacement industry. Despite these issues, Safelite® had an outstanding 2011, meeting the company’s financial goals, increasing employee engagement scores, and increasing customer satisfaction rankings. As a result, Safelite AutoGlass® is celebrating its 65th anniversary in 2012. Currently Safelite has nearly 10,000 employees and has a presence in all 50 states. In addition to offering mobile service, Safelite® has approximately 466 facilities to provide windshield repair or replacement as well as side glass and back glass replacement. Under his direction, both he and the company have received many awards this year alone.

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Gerber Collision & Glass Hosts Peanut Butter Rally to Help Feed Hungry Children this Summer Gerber Collision & Glass hosted their 5th Annual Peanut Butter Rally in June at locations in Rockford and Loves Park in Illinois. The rally collects peanut butter and cash donations to help the Rock River Valley Pantry feed hungry children throughout the summer months. Local radio stations broadcasted live from both shops while Gerber employees served lunch to the crowd and gathered donations throughout the day.

Last year, Gerber collected 2,232 pounds of peanut butter and established a goal to collect 2,500 pounds this year. Through the support of team members in their 44 Illinois and Indiana locations, in addition to staff at Gerber’s national call centers, customers and the local Enterprise Rent-A-Car offices, Gerber collected cash and peanut butter equivalent to 6,909 pounds of peanut butter. “Knowing the kindness of our teams in Illinois and Indiana, along with the support from our valued partners at

Enterprise Rent-A-Car, I never doubted that we would exceed our established goal. However, collecting a combination of peanut butter and cash donations equal to 6,909 pounds of peanut butter went beyond all expectations,” said Jim Maliszewski, Director, Program Management & Centralized Support. Kim Bakke, Executive Director, Rock River Valley Pantry said, “This donation of peanut butter will assist more than 5,000 families during the summer months. Gerber Collision & Glass, Enterprise Rent-A-Car, and their supporters will impact the lives of many families that are struggling to provide for their children.” In addition to the rally, Gerber accepts donations of non-perishable food items as well as funds throughout the year at their Rockford and Loves Park locations, and those who donate receive an air freshener as a token of appreciation for their donation to the Rock River Valley Pantry. Gerber Collision & Glass is proud to support many community initiatives. “Gerber Collision & Glass is about helping others, whether that means restoring a customer’s damaged vehicle after an unfortunate event or contributing to meaningful causes in the communities we serve,” said Maliszewski.

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Freer Auto Body Hosts Christmas in July Community Event With temperatures reaching almost 100 degrees in Godfrey, IL, it didn’t feel like Christmas, but that didn’t stop two young girls from hosting the annual Freer Auto Body Christmas in July event to benefit Community Christmas. The event was held July 27 at Freer Auto Body, 4512 N. Alby Road in Godfrey, and even though it was hot, people were still in the holiday spirit. Taylor Freer, 8, and Lily Freer, 5, hosted the event for the third time. The girls served Sloppy Joes and Kool-Aid to those who visited. Taylor and Lily are the daughters of Tim and Carrie Freer of Alton. Friends of the Freer family volunteered to help serve. “We raised $6,000 to benefit Community Christmas,” said Freer Auto Body co-owner Margaret Freer, the grandmother of the two girls. “Everything went very well. It was very warm, but we had some big fans and an air conditioner that someone donated. We sold a lot of raffle tickets, and people were donating $20 to $100. One of our customers donated $100.”

For their Christmas in July event, guests purchased Kool-Aid, Sloppy Joes and chips for $5, which goes to Community Christmas. In addition, raffle tickets were sold and prizes included two nights’ lodging in Santa

Claus, IN, where the winners received four tickets to Holiday World. The event also collected non-perishable food and clothing items, as well as toys, to contribute to Community Christmas. Taylor and Lily Freer spent the final days before the fund-raising event going out to different area businesses with fliers and trying to recruit donors for the event. “Taylor and Lily are very happy to help other children,” Margaret Freer

said. “I am so proud of them. This has become a significant fundraiser for Community Christmas. A lot of kids in the area have a nice Christmas because of it. We are glad we can do it.” Topping their long list of contributions to the community, including helping to fund the Fourth of July riverfront fireworks, as well as Pride Inc. and participating in the Alton Highway Business Council, Community Christmas is a Freer family favorite. “In our community, where jobs are lost, people still step up to the plate and help out when it is needed,” Margaret said. “We adopt Community Christmas all year-round and try to get the most for our money.” Taylor and Lily participate in purchasing Christmas presents for those in the Community Christmas program and even pick out different gifts. Community Christmas is a local charity sponsored by United Way and The Telegraph. Each year around Christmas, items such as food, clothing and toys are donated and collected by the charity and then given to places such as Salvation Army, Hope Center

and Crisis Food Center to be distributed to those in need. Margaret Freer said she is glad her grandchildren have learned the importance of giving to other children at such a young age. “They are so far ahead of others in that way,” she said. “This comes from little girls who have everything, and for them to comprehend a child that doesn’t is remarkable.” Mike and Margaret’s late son, David Freer, who began Freer Auto Body 21 years ago, showed an exceptional interest in the Community Christmas cause. “David would go out a day or so after Christmas and collect toys and gifts to give to Community Christmas the next year,” Margaret Freer said. Since David Freer’s death in September 2008, his parents have continued to run Freer Auto Body and uphold David’s passion for Community Christmas, as well as giving back to the area.

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 7


Ohio Law Enforcement Officers Invent Safety Device

Ohio law enforcement officers Dan and Kim Mager have invented a safety device that prevents teens from driving at high rates of speed. Each year in the U.S., more than 14,000 teen and collateral deaths and 140,000 serious injuries occur in automobile accidents with 40 percent of them being due to high speed. These tragic accidents are the number one killer of people age 16-20. The Mager’s have invented a safety tool called Highway Guardian to provide a new standard in highway safety for teens. It works like an “in-car chaperone.” The device, which installs into a car’s engine in about an hour, limits a vehicle’s top speed to 73 miles per hour. Statistics reveal that teenagers are much more vulnerable to death or injury when their car’s speed rises above 75 mph. Accompanied by simple installation directions, the GPS-based device works with a vehicle’s fuelinjection system to safely-control velocity. It is powered by the vehicle’s electrical system and works on virtually any vehicle manufactured after 1990.

Storm Tears Off Roof of Auto Body Shop in So Minnesota

In mid July, a severe storm blew off the roof of Lyle Auto Body Shop in southern Minnesota. The storm hit the Lyle area hard, damaging several homes and businesses. Mower County Sheriff Terese Amazi said the roof came off the Lyle Auto Body Shop around 3:15 a.m. on July 19. The Minnesota Department of Transportation helped clean up the debris. There were no reports of hail damage made to the police, Amazi said, but some area farmers did experience some crop damage from fierce winds. “Nobody was hurt,” said Gary Harrison, Lyle city council member. “It could’ve been a lot worse.” Harrison and other volunteers helped city officials clean up homes and take away downed trees and other debris. Harrison said he had helped clean at about a half dozen homes before 9:45 a.m. “Everybody’s kind of pitching in,” he said. While Lyle and southern Minnesota didn’t receive the worst of the damage, there were reports of wind speeds of 50 to 53 mph in the area, according to the National Weather Service.

Insurance Rates Increase in Illinois

Rate filings approved in June by Illinois regulators included insurance rate increases at 11 insurers, according to the Online Auto Insurance News Team. Insurance regulators routinely evaluate insurers’ requests for rate changes and release their approvals and denials every month. The following approvals were made for policies overall, and actual rates will vary between policyholders. The 2.5 percent increase in liability policies and 2 percent increase in physical damage policies approved for Direct Auto are already in effect. Among the changes at the insurer was removal of a surcharge for older vehicles, according to filing documents. Hartford of Illinois and Hartford Casualty got approval for 3 percent overall rate hikes that go into effect Oct. 6 for all business. Garrison Property & Casualty will hike rates by an average of 7 percent. The new rates go into effect on Oct. 1 for new business and Dec. 9 for renewing business. Trustgard’s 2.9 percent hike to personal liability policies went into effect on Aug. 1 for new business, and on Sept. 1 for renewing business.

Millers First had the largest approved insurance rate hike, with personal liability policies going up by 22 percent overall. However, the insurer also decreased personal physical damage rates by 2.2 percent overall. New customers began seeing the new rates in June, while renewing policyholders saw them July 15. Direct National had the second-largest rate increase, hiking rates by 15 percent, which went into effect in May. Like Millers First, the company also showed a relatively small volume of written premiums. Regulators approved rate hikes for Auto Club commercial policies that go into effect Nov. 1. Commercial liability rates will see a 7.1 percent increase while physical damage rates will see a 1.1 percent increase. The insurer said that the hikes are due to several changes in the company, including the introduction of YourAuto, a program providing pet and rental coverage and accident forgiveness. Encompass of America will increase personal liability rates by 4 percent overall and personal physical damage rates by 3.9 percent.

8 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Ohio Governor Finalizes Statewide Texting Ban

Ohio Gov. John R. Kasich signed off on legislation banning texting while driving, reported the Online Auto Insurance News Team. Kasich’s approval on June 1 made Ohio the 39th state to ban texting behind the wheel. The legislation behind the law, HB 99, goes into effect starting Sept. 1, after which there will be a six-month warning period before police begin issuing citations. HB 99 makes texting while driving a secondary offense, meaning authorities can only issue texting citations in addition to another offense like speeding. Violations bring maximum fines of $150. Also under the bill, the state will start requiring driver education courses to include curriculum on distracted driving and the dangers of texting behind the wheel. The law also carries a provision prohibiting drivers under 18 years old from using any electronic device while behind the wheel, which aimed at improving safety for younger motorists, who federal research shows are killed in distraction-related crashes at a higher rate than any other age group. Minors found violating the new law will have their license suspended

for 60 days, which could potentially bump up insurance rates for offenders even more. The law will be considered a primary offense for 16- and 17-year-old drivers, meaning police can ticket those motorists solely for that offense. The legislation does not state whether older drivers’ violation of the ban would add any points to their records, which could be seen by insurance companies and result in higher premiums. A state fiscal analysis showed that several cities and counties in the state already have their own texting bans, including Cincinnati, Cleveland, Columbus and Toledo, and have seen little fiscal impact from the prohibitions because of a small number of tickets. The original version of HB 99 was passed by the state House on June 28 last year. A version amended by senators, which included provisions that made the violation a secondary offense and created exemptions for drivers using voice-activated and hands-free electronic devices, was passed in the state Senate by a 25-8 vote on May 3. Those amendments were passed in a 84-12 concurrence vote in the state House on May 15.

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Fox Auto Parts Joins Team PRP Network

Fox Auto Parts, based in Belleville, MI, has become the latest full-service auto recycler to join the Team PRP network. This brings their current national membership to 113 stores. “Fox Auto Parts is an impressive operation and is a welcome addition to Team PRP,” stated Kent Rothwell, Owner of Weaver Parts and Chair of Team PRP’s national board. “Their long-time commitment to the highest industry standards makes them an excellent fit with the mission and vision of Team PRP.” Family-owned and operated since 1973, Fox Auto Parts specializes in domestic and foreign cars, trucks, and SUVs. They also carry a full line of new parts. Having moved to a 25acre facility in Belleville in 1985, Fox Auto Parts is poised for continued growth. Their 35 employees service the Metro Detroit area utilizing their own delivery fleet and a local delivery service. Nationwide shipping is also a big part of their business, using both UPS and Freight Lines. The business recently revamped their quality control standards and refined processes to improve efficiency and deliver the highest quality parts, in the quickest manner possible.

Auto Shop, State Farm Give Van to Special Olympics

Special Olympics athletes in Ottawa and Allegan counties in Michigan have something to celebrate—a new minivan to take them to and from events. State Farm Insurance and Auto Body Xperts presented the Special Olympians with a 2009 Toyota Sienna van. It replaces a 1997 van which had been used to transport athletes around the state. Now Special Olympics Area 12 can focus its resources on other ways to help the athletes. “A program like this would cost us twenty thousand dollars or more, that we can now use for taking our athletes to events and to buying equipment that we need to provide programming for our athletes,” says area director Mark Dalman. State Farm donated the van after it was involved in an accident while Auto Body Xperts repaired the vehicle free of charge, making it as good as new. The parts and paint were provided by LKQ Industries of West Michigan and PPG Industries.

3M Donates Shop Products to Illinois College

Kishwaukee College in Malta, IL, received a number of products for use in its Collision Repair Technology (CRT) program from 3M Corp. The college has an on-campus shop area that includes a paint bay, tool room and welding facilities. The CRT department at Kishwaukee College is NATEF-certified and has received recognition as an ICAR Training Alliance Member. The Collision Repair Technology department has an up-to-date curriculum that combines theory and hands-on laboratory projects. CRT students find jobs as apprentices, repair technicians, estimators, managers, paint technicians, insurance adjustors, and sales reps. The Collision Repair technician must develop expertise in several areas to get today’s vehicles back on the road, including accurate body sectioning, welding, laser measuring, and the use of hydraulic pulling equipment. More than $800,000 in products were donated by 3M to programs and foundations like the one at Kishwaukee College nationwide this year.

Milwaukee Auto Body Shops Latest Victims of Burglaries

One arrest may have solved several burglaries in Milwaukee, WI. For years, those living on Milwaukee’s north side have filed police reports after thieves have broken into their garages to steal tools and equipment. According to a search warrant, police believe they have linked one man to nearly 30 burglaries dating back to 2005. Dave’s Auto Body on Martin Luther King Drive in Milwaukee is the most recent in a string of burglaries. Those thefts nearly shut down the local repair shop. Someone cut a hole into the back garage door and ripped off thousands of dollars in tools and equipment. Ricardo Acevedo works at the shop and said, “We did the estimate and it was $15,000-$18,000 of damage.” Since 2005, garages of homes and businesses on the north side have been hit for tools, lawnmowers and other equipment. Milwaukee police searched a house near N. 22nd St. and W. Capitol Ave. where court papers show they found stolen goods from 29 burglaries dating back seven years.

10 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Three People Found Shot to Death at Auto Garage

The owner of a repair shop came into work on Friday morning, August 3 to find the bodies of three people who had been shot to death. The bodies were found at Imperial Auto Sales, an auto body repair shop at 18301 St. Clair Ave. in Cleveland, OH. The three bodies were identified as Brian Yuravak, 50, Lori Sarli, 48, and Babette Hockenberry, 53, the Cuyahoga County Medical Examiner’s Office said. Yuravak occasionally worked at the garage, but Billy Scimenes, who owns the business, said he didn’t know the two women. “It was horrible,” Scimenes said. “Imagine going to work and expect to see people working and instead finding three dead bodies.” Investigators said drugs may have been involved, though Scimenes said he was not aware of Yuravak having a drug problem. “We do not tolerate drugs or drug use at our business,” said Scimenes. “I never saw any drugs on the premises. I don’t know what people do at night when they are away from work.” The victims were all shot in the head. Court records show that Hock-

enberry lived in Euclid, Sarli lived in Eastlake and Yuravak lived in Grafton. Cleveland City Councilman Michael Polensek, whose ward includes the garage, said he was stunned, as he believes the neighborhood is quite safe. He said he was shocked that each victim had been shot in the head. “This is horrific,” Polensek said. “When you shoot three people in the head, that’s execution. This was no robbery. (The victims) knew their shooter.” Polensek said Scimenes left his shop about 7:30 p.m. Thursday, and the victim was still working there. When Scimenes approached the shop Friday morning and heard the radio playing and saw the lights on, he believed the man had come in to start working early, the councilman said. Scimenes often works on older cars, fixes them and sells them, Polensek said.

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Blaze Destroys Shop and Kills Sadie the Dog but the Boy is Safe A fire in late July destroyed a Centerville recycling business and auto body shop near Trempealeau in Western Wisconsin and owner Alvin “Rob” Stanislowski Jr. believes his loss of

the longtime family business, including an extensive collection of tools and vehicles, at $500,000. Lost in the fire was his dog, Sadie. Stanislowski, 44, suffered from smoke inhalation after rushing into the burning building because he thought his girlfriend’s son, Jordan Bakken, was trapped inside. “I thought he was in the shop because that’s where he was when I left,” Stanislowski said. Bakken was safe, having called 911 after the fire broke out about 10:30

a.m. on Sunday, July 29. But Stanislowski’s dog, 2½-year-old Sadie, perished, trapped under a desk in Stanislowski’s office. Stanislowski said he saw the billowing smoke and flames as he returned from grocery shopping to his home next to his business, Centerville Recycling. Two firefighters also suffered smoke inhalation and heat exhaustion while trying to control the blaze, with the help of personnel from a dozen other fire departments and several other local and state agencies, according to the Trempealeau County Sheriff’s Department. “It didn’t take five minutes” for the blaze, fueled with bales of recycled plastic, to consume the recycling building, the body shop and tools, demo cars in the shop and his neighbor’s Model A pickup stored there, Stanislowski said as he stood near the twisted metal and blackened remains. Stanislowski was emotional as he cautioned against moving a large blue plastic tub sheltering Sadie’s body until she can be buried. The rottweiler was “the biggest baby you’ve ever seen in your life,” he said, choking

back a sob. Stanislowski said he believed it was an electrical fire. He was treated for smoke inhalation at Gundersen Lutheran Medical Center. Stanislowski said he hopes to rebuild, although he’ll have to talk to his parents and the insurance company before deciding. “We’ve been in the recycling business for 35 years,” said Stanislowski, who opened the body shop 16 years ago.

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Parma, OH, Body Shop to Expand if Zoning Approved

Touch of Class Auto Body Inc., 1611 Brookpark Road in Parma, OH, plans to expand its existing business and construct a second building for autobody detailing. The Planning Commission approved the proposed expansion on July 25. The plan now goes to the Board of Zoning Appeals because it would require at least four zoning variances. Under the plan, A Touch of Class would add 1,400 square feet to its existing 6,347-square-foot building, according to Melissa Morrow, assistant city engineer. The new detailing building would measure 1,225 square feet, Morrow said. Kevin Harrison, owner of A Touch of Class, said he has already added three new workers related to the expansion project. To make room for the new building, A Touch of Class would tear down a vacant print shop next door. Harrison said his business has owned that building for a few years. A Touch of Class would also install an ornamental fence on the front of its property, under the plan. Also, code requires that A Touch of Class install “brickscaping” concrete.

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Accidents Involving City Vehicles Cost Des Moines Big Bucks In one incident, he ran into a resident’s vehicle that was legally parked in the street, crushing the rear end of the recently paid-off car. In the second incident, Singleton crashed his cruiser into a parked car and then drove away, police said. As they were investigating that accident, Des Moines police discovered that Singleton had methamphetamine and marijuana in his patrol car. Eight of the 54 accidents caused by Des Moines city employees since July involved police squad cars. The rest were “almost exclusively” snowplows or garbage and recycling trucks, Finance Director Scott Sanders said. Maj. Steve Waymire, who commands the Des Moines Police Department’s operations division, said officers often spend 10 hours per shift driving, frequently in intense emergency situations where collisions are bound to happen. In rare pursuit situations, collisions might be intentional, police spokesman Sgt. Chris Scott said. “Officers are trained to make contact with a suspect’s vehicle, causing the car to spin in a situation where we

The city of Des Moines, IA will most likely fork over several thousand dollars to pay for repairs to two residents’ legally parked vehicles that were damaged last spring in separate incidents when police cars ran into them. Since July 1, 2009, Des Moines has paid $455,000 in damage claims for incidents in which city-owned vehicles bumped, scratched or totaled private-sector vehicles. Des Moines, which is self-insured, operates 825 vehicles that travel a combined seven million miles each year. That means some will get into accidents, officials said. City vehicles were liable for an annual average of 154 damage claims over the last seven years. City vehicles were liable for 128 damage incidents in the fiscal year that ended June 30, 2010. They were liable for 81 damage incidents in the fiscal year that ended June 30, 2011. They were liable for 54 incidents between July 1, 2011 and April 13, 2012 plus two others involving former Police Officer Brandon Singleton. Singleton, 28, who was fired, damaged his squad car twice in April.

can box the car in,” Scott said. “We don’t consider that an accident.” Any Des Moines city employee whose job involves driving must pass a history check, Human Resources Director James Wells said. Driving employees can’t have committed a violation during an accident in the previous year. Each department trains and disciplines drivers differently. Police officers undergo 40 hours of driving instruction during academy training and follow-up exercises after that, Waymire said. Officers’ driving records build up over their careers so that any patterns of bad driving may be discerned. Also, 60 of the department’s 80 squad cars are equipped with cameras that record a driver’s view when the car is in motion. A points system dictates appropriate discipline for at-fault accidents, Waymire said. An officer who dings a parked car might garner one point. An officer who totals a parked car could get three. At three points, a one-day suspension occurs. Snow and sanitation vehicles account for the vast majority of auto ac-

cidents determined to be city workers’ fault, Sanders said. Public Works Director Bill Stowe, who oversees snow and trash removal for the city, said the vehicles used in those duties “are a big piece of our preventable motor vehicle accidents — just horrible conditions and big pieces of equipment.” City directors said a particularly harsh winter in 2010 prompted increased snowplowing and increased accidents. Snowplows generally operate on slick streets with low visibility, and garbage trucks drive enough to reach every Des Moines house weekly, Stowe said. Public Works uses a three-step disciplinary process. An accidentprone employee may receive oral and written warnings before a final letter puts his or her job on the line. Thirtyfour department employees were disciplined in 2011. After two years of clean driving, an employee’s record is wiped clean, Deputy Director Pat Kozitza said. “Preventable motor vehicle accidents are always a big issue for us,” Stowe said.

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No-Joy Joyrides in Michigan by Leah Gillis, Online Auto Insurance

Don’t think you can just take a family member’s car without permission and be fully covered by insurance in an accident, especially if you’re in Michigan. That’s the takeaway from the decision in two Michigan Supreme Court cases handed down in late July. The Michigan Supreme Court decided July 31 that two separate cases involving two different drivers who borrowed “a car without permission but without meaning to steal it” and then crashed should not be eligible for Michigan auto insurance benefits. Both of the insurers of the borrowed cars claimed they did not have to pay the rogue drivers personal injury protection (PIP) benefits because the cars were taken “unlawfully.” According to court documents, PIP benefits do not have to be paid if the driver of the car had taken the vehicle “unlawfully, unless the person reasonably believed that he or she was entitled to take and use the vehicle.” In one case, the state’s “family joyriding exception” was used by the lower court as a reason the injured should still be covered. In another, the “chain of permissive use” theory was used to argue for coverage. In both cases, the Supreme Court disagreed with the exceptions and upheld the insurers’ rights to deny the claims for coverage.

Progressive Marathon Insurance v. DeYoung In Progressive Marathon Insurance v. DeYoung, Ryan DeYoung took his wife’s car without permission and got into an accident while driving drunk, leaving him with injuries. Not only had he been forbidden from driving the car by his wife, but he had not had a driver’s license for 10 years, had four drunk driving convictions, and was listed as an excluded driver on her policy. DeYoung applied for PIP benefits from Progressive but was denied. The trial court that initially took up the case sided with the insurance company in denying a claim to coverage, saying that the family joyriding exception—which established that relatives who take family member’s car without permission should not be viewed as taking it unlawfully—did not apply in this case because he had

been specifically barred on the policy. A court of appeals reversed the decision, and it ended up in the Supreme Court of Michigan. Ultimately, the state Supreme Court found that, similar to the trial court, the family joyriding exception didn’t apply. No insurance claims would be paid.

Spectrum Health v. Farm Bureau Spectrum Health v. Farm Bureau involved three people: Craig Smith Sr., his son, Craig Smith Jr., and Junior’s girlfriend, Kathleen Chirco. Smith Sr. specifically gave Chirco permission to drive the car, and he specifically told Smith Jr. he could not drive the car. Smith Jr. did not have a valid license. That night, after drinking, Smith Jr. asked Chirco for the keys to drive the car and eventually she gave them to him. He subsequently crashed the car into a tree. In trial court the “chain of permissive use” was used and the court found that Chirco had been “empowered to grant others permission to operate the vehicle” and so coverage should be in place. But, after appeals and ending up at the Supreme Court, this claimant, like DeYoung, was found not to be able to collect on the policy. In the case of Spectrum Health, the court found that because the end user had been specifically barred from driving by the owner, and thus the car was unlawfully taken, no benefits would be paid in this case.

The Bottom Line The Michigan Supreme Court held in both cases that both the men had taken the cars unlawfully. And they also decided that the use of the phrase “a person,” used in the penal code to define the unlawful taking of a vehicle, includes family members who have unlawfully taken a vehicle, thus keeping any benefits from being paid. Many people think that if you take a family member’s car without their permission —but without the intent to steal it—they will be able to get benefits if something happens. But as these cases in Michigan shows, that’s not always so.

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MI Shop Owner Shot Dead on Test Drive

Hot-rod enthusiast Kenny Moore of the metro area of Detroit, MI, was ready to cruise after putting the finishing touches on his ‘66 Cadillac convertible. “He had just finished up and was looking forward to riding around in it in the summer,” said Dion Vaughn, 33, owner of Auto Images Collision, the repair shop next door to Moore’s transmission shop. But now relatives and friends are mourning the death of the 56-year-old Southfield man, who was fatally shot after disappearing on a test drive from his transmission shop on Detroit’s east side in June. Police say robbery could have been a motive in the slaying. Moore owned A1 Transmission for more than 30 years. The divorced father of a 15-year-old son liked to street race his two ‘69 Camaros, a blue one and a red one that won an award at Autorama, and he drove a black ‘68 Chevelle, Vaughn said. In his spare time, Moore rode a HarleyDavidson motorcycle and enjoyed snowmobiles and all-terrain vehicles. Moore’s death sent shock waves through the local automotive community, including those who used to street race muscle cars with him and those who routinely take customers on

test drives or short rides to diagnose mechanical problems. Moore left A1 Transmission with two men about 10 a.m. on Friday, June 8 and never returned. Detroit firefighters found his bullet-riddled body at 1:25 a.m. Saturday in a house fire in the 4000 block of Tuxedo on the city’s west side. Vaughn said Moore typically didn’t go for test drives with customers, instead asking them to stay at his shop while one of his six employees took the vehicle out. That’s part of the reason Vaughn said he believes Moore was targeted. “He knew who he left with because he didn’t do test drives,” Vaughn said. “Friday was payday, so I know he had payroll on him. They could have just took what they wanted and let him live.” Now, some are rethinking how they’ll check customers’ cars and trying to avoid test drives, Vaughn said. “I’m scared to test drive now,” Vaughn said. “I’ll send a tow truck and tow the car here.”

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www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 17


Indiana Supreme Court Ruling Highlights ‘Guest Statute’ Principle—Family Can Be Liable by Leah Gillis, Online Auto Insurance

Oftentimes when people drive they do so with members of their immediate families. But when accidents happen involving a driver and passenger that are immediate family, can a driver still be held liable? The answer is ‘yes,’ unless you live in one of a few states with a “guest statue,” a legal principle that was at the heart of a recent Supreme Court ruling in Indiana. In the case decided in late July, the court ruled that a father who accidentally pinned his son up against another car while trying to park would not be protected by the state’s guest statute and could be held liable for his son’s injuries. But what exactly is a guest statute, and what does the ruling in this case mean for the citizens and auto insurance companies of Indiana?

Guest Statutes: a Breakdown A guest statute is used to limit the liability of a driver in certain conditions. The Indiana guest statute specifically “prevents certain designated passengers from recovering damages for injuries resulting from the ordinary negligence” of the driver when the injured passenger “was ‘being trans-

AASP Illinois

Continued from Cover

work—actually costs them both time and money. Additionally, in a report recently generated by SCRS, of repairers who have dealt with this system since 2003—“There was not a single shop that didn’t regret accepting the new process in their business… nor a single shop that did not feel it opened the door to further insurer influence over their business.” Despite abject failures in all pilot areas and despite industry-wide resistance to this program by repairers, associations and parts vendors—State Farm fully intends to implement it. George Avery indicated as much with a most revealing comment at a July Collision Industry Conference forum. “There is going to come a time, my guess is, that when these things are fixed and there’s going to come a time when I will say to you as a businessman, ‘Yes, this is the program,’ Avery said. “Then you, as a businessperson that’s on Select Service, will have to decide if Select Service is right for you.”

ported without payment in or upon the motor vehicle,’” according to court documents. That means any immediate family member or hitchhiker whom the driver is transporting can’t successfully sue the driver if they’re injured in a crash. According to “Understanding the Law” by Donald Carper and John McKinsey, guest statutes were common in most states at one point as a popular method of keeping abuse out of the system. Without them, injured family members involved in an accident could lie about their condition since, if a car insurance company overpays on a passenger’s claim, the family is benefiting from it. And, since most claims are paid by insurance companies, this could mean more payouts for the industry. But guest statutes currently remain active in only a small minority of states. A few of the remaining holdouts are Alabama, Ohio, and Indiana.

Clark Jr. & Clark v. Clark Sr. It was the meaning of a section of the Indiana guest statute that was an issue in determining if the father in the Indiana Supreme Court case could be held liable. Specifically, it was the meaning of being transported “in or upon” a car. At that same meeting, one pilot repairer [Dan Hunsaker, from Tucson, AZ] said, “I feel like the donkey that got dumped into the Kentucky Derby,” and that he “has to have a parts employee at the computer about six hours a day to manage the program… That represents about $50,000 a year out of my pocket to administer the program.” Repairers work hard for every dime they get. Over the last two decades profit margins have become thinner as repairers have become more burdened with administrative tasks. Repairers have been taught to do more work for less compensation. With that bit of brainwashing done—PartsTrader and State Farm now expect they can cajole repairers to willingly do even more work for even less money. State Farm and PartsTrader are giving repairers manacles (handcuffs) and asking that they be worn proudly as though they are jewelry. AASPI encourages its members to wisely consider whether this insurance “partnership” has instead turned out to be a “slave ship.”

18 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

The facts of the case are as follows. In September 2007, Clark Jr. was traveling as a passenger in a motor vehicle driven by his father, Robert Clark Sr. When they arrived at their destination the son exited the vehicle, walked several feet in front of it and motioned to his father to drive forward into a parking space. When Junior motioned for his father to stop, instead of hitting the brake, Senior hit the accelerator, causing Junior to be pinned between Senior’s vehicle and another. This caused significant leg injuries to Junior and led him and his wife, Debra, to file a lawsuit against Senior. The defendant made a case that even though Junior was outside the car, he was still “in or upon” the car and thus could not make a claim. The lower court agreed with this logic, but the Supreme Court justices did not. In their opinion, the court wrote that the language of the guest statute was unambiguous, saying that the guest statute does not apply if the victim was simply standing outside of the vehicle and was not being transported. In short, ruling for the son that he had a right to his claims.

Many would say that common sense won out in this case—if you aren’t in a car, you can’t be transported by it, and so the son had a right to damages by his father’s insurance. But since it took going to the Indiana Supreme Court and a reversal of a summary judgment, things are never clear cut.

A Lesson for Policyholders So what does this mean for policyholders? While the state Supreme Court case is particular to Indiana and applies to a very narrow spectrum of situations, the idea of a guest statue relates to other states as well, and is something that may be in yours. If you live in a state with a guest statute and are transporting a family member, that family member may be out of luck and have to pay for their hospital bills if they get injured in an accident you cause. Because of that, it might be smart to add medical payments coverage to a policy, which will pay for the policyholder’s and his or her family’s medical bills that are the result of a crash.


www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 19


Continued from Page 1

MI PartsTrader

(See www.autobodynews.com, or August regional issues, for more.) The pilot has been tested for the past several months in Grand Rapids, MI; Charlotte, NC; Birmingham, AL and Tucson, AZ. ASA-Michigan’s next move is to continue to seek feedback and “participate at the levels we need to react based on 1) primarily what our members say, as we owe that to them as their association, and 2) what we hear from the repair industry—reality from a business perspective, not emotionally,” Fisher said. The biggest concerns regarding State Farm’s PartsTrader continues to be how the application will affect profitability, the unknown impacts on the relationships between shops and suppliers, and the overall current “climate” between repairers and insurers. “We are waiting to see the benefits for the repair facility and the industry including the ability to increase profits without additional expenditures. Cycle time is a part of that equation and does have an effect on the profitability. We continue to have dialogue with the PartsTrader group, along with having some people on their advisory committee,” Fisher said. “To sum it up, our members do not see a benefit for themselves or their customers, cycle time has been increased, and some feel it to be ‘business suicide’ to react based on current economies.” In the western part of the state, the West Michigan Body Shop Association, established in 1955, hasn’t yet held a meeting to discuss PartsTrader with its 30 shop members, but treasurer Diane Rodenhouse says it’s coming. Rodenhouse owns Rodenhouse Body Shop in Grand Rapids and is one of about 20 shops in the area who have been testing the pilot parts procurement program since March. “I think it (PartsTrader) adds another day of inefficiency to your estimating, because what happens, especially with used parts, we have found, it basically adds another 4 hours to a day of cycle time to your job,” said Rodenhouse. “It adds another day of repair time because you can’t get the parts in—especially if you have to use used parts—fast enough because you have to wait

while they bid on it. Many times the salvage yards don’t have the parts, they are just bidding on them. They have to go out in the market behind the scenes and buy them. This means you are adding another day or two to the cycle; there’s no other way around it.” In a nutshell, she sums up her feelings. “It’s the master to servant. Do I wish it wasn’t happening? Absolutely.” Rodenhouse values her relationships with her vendors because she trusts them. “The problem with PartsTrader is you’re buying blind. You don’t know the vendors. With PartsTrader, you have no idea if it’s going to be a good part.” Recently, her shop replaced a tailgate and bought the part from PartsTrader - and a two-day job became a six-day job because they had to send the tailgate back three times. “It was just junk.” There is no way for PartsTrader “to hold a vendor’s feet to the fire,” she says. Rodenhouse doesn’t know if her shop will drop State Farm because it’s one-third of her business. She says she’s not willing to drop the program until she figures out what’s going on. Like everyone else in the pilot program, she doesn’t know where State Farm is going with it or when the pilot program will end. She jokes, “I can’t have that information, I only have a graduate degree, I’m not smart enough for that. And I’m a woman, keep me in the dark... They have all the aces and they keep them all close to their chest.” As a local association, Rodenhouse isn’t sure there is anything they can do to stop PartsTrader. “What are we going to do as an association? What can we do? There’s really nothing a local association can do. Let’s face it, it’s not business-to-business. It’s master to servant. And if you want to be on State Farm’s program, you’re gonna have to learn how to deal with PartsTrader. You can choose to get off,” she says. Fisher agrees that there may not be an solution to this issue. “We all have to understand that the world is changing and that parts procurement was advancing through technology before PartsTrader. Moving forward, we need to recognize these opportunities as a repair industry and seize the moment when they make our lives more efficient while understanding the impact that they may or may not have on our business plan

20 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

while maintaining the desired profit. That being said, these tools should be sought and sold to the collision repairers to increase efficiency and profitability—we don’t dictate how an insurance policy should be written or what printers to use in printing [the contract],” Fisher says. Rodenhouse feels that part of the problem is that some insurance companies conduct business on the back nine of the golf course, which gives body shops no way of fighting them. “I’ve thought about it, and I’ve thought about it, and I’ve thought about it, and the only thing I can come up with so far is you got to make this program work for you,” Rodenhouse says emphatically. “And that means you have pick and choose. I’ve already decided I won’t use it for used parts because it just doesn’t work. For new parts, we’re going to have to use it.” The solution, she believes, lies at the national level with getting the McFerguson Act repealed so insurance companies have to abide by antitrust. The McFerguson Act was passed in 1963, exempting insurance companies from anti-trust, giving them “free

reign and a free checkbook,” she says. The insurance companies, she says, have taken the net profit from 15-20% on a good shop and squeezed it down to 3% “and we have allowed insurance companies to do that. We are all our own worst enemies and the bottom line is, insurance companies know it. They are just doing what a good business model does, which is make money.” She cites a deflationary example, comparing today’s dollars to dollars made in the 1980s. Recently, she paid $59 for an aftermarket fender and was paid $76 from the insurance company, making less than $20 on the job. “Instead of making $100 in 1980s dollars, I am making less than $20 in 2012 dollars.” Body shops willingly take this abuse from insurance companies by “drinking the poison” of DRPs. Her shop has two DRPs. By accepting PartsTrader, “We will drink the DRP poison again. Now we are giving them the checkbook again,” she says. It’s a conundrum that has many body shop owners frustrated. If body shops drop DRPs, they fear they will lose business and have to lay off emSee MI PartsTrader, Page 46


ABRA Auto Body & Glass Enters Indiana Market

ABRA Auto Body & Glass, a leading national vehicle repair company, announced the opening of its 42nd franchise repair center and the first in the state of Indiana. The new ABRA repair center is located on the site of McGonigal Buick GMC Cadillac at 1220 East Blvd. in Kokomo, about an hour north of Indianapolis. The move is part of the company’s overall plan to accelerate growth in the months and years ahead and increases the total number of ABRA repair centers to 124 in 13 states. “This is a tremendous opportunity for ABRA in a new market and represents our commitment to excellence and significant growth across the country,” said President and Chief Executive Officer Duane Rouse. “McGonigal has a rich history of auto body repair in the Kokomo area and is known for their guiding principles of dream, deliver, and drive. With this partnership in place and ABRA’s innovative service model we are confident both the vehicle owner and our business partners will be impressed.”

Ohio Collision Repair SkillsUSA Advisor Wins Trip to SEMA from SCRS

A SkillsUSA advisor, John Wilson of Ohio Hi-Point Career Center in Springfield, OH, won an all-expenses paid trip to SEMA, courtesy of the Society of Collision Repair Specialists (SCRS) and the Speciality Equipment Market Association (SEMA). As part of its mission to educate, inform and represent the collision repair professional, the Society of Collision Repair Specialists (SCRS) places emphasis on supporting the career and technical education schools and advisors who work to shape the minds and skills of students who will enter into the trade. As part of that emphasis, SCRS worked with SkillsUSA during the recent national competition, held in Kansas City on June 23-27, to demonstrate the industry’s support and encouragement to not only the student competitors, but also to the schools and advisors who have put so much time into preparing these future industry members. SCRS provided a Mega-Prize which was awarded as the headlining prize at the 100% Advisor Reception June 24. The highly sought-after prize package, donated by SCRS and SEMA, included an all-expenses paid trip for both the winning advisor and the student guest of their choice to attend the SEMA Show. The award in-

cludes two airline tickets, two hotel rooms, two passes to the SEMA Show, and two passes to the SCRS Repairer Driven Education series. “SkillsUSA and career and technical education are about providing students with professional experiences,” said Tim Lawrence, executive

(l-r): Tim Lawrence, SkillsUSA executive director; John Wilson, Ohio Hi-Point Career Center instructor; Brett Bailey, SCRS national director; and Stacy Halliday, Air Products

director of SkillsUSA. “This prize is an outstanding example of that kind of experience for both a student and an instructor. It’s also a motivator to have more students think of a career in collision repair. That’s good for the industry and the students. It just doesn’t get much better than this.” “Supporting industry initiatives that develop a strongly-rooted interest in the collision repair and automotive field is an important part of our collab-

orative work with SCRS at the SEMA Show,” added Peter MacGillivray, VP, Events and Communications for SEMA. “We are glad to participate in this contribution, and honored that the advisors were so genuinely excited to come see the amazing collision repair environment that SCRS has developed with us. There are a world of opportunities in the industry for these students, and we are proud to know that they will be able to make all the contacts they need at the SEMA Show to develop a prosperous career in the industry!” In addition to the Mega-Prize, all student competitors and sponsoring schools will receive a complimentary one-year membership to SCRS. The student competitors also were provided with t-shirts that were donated by SCRS and sponsored by PPG Automotive Refinish. “This experience was extremely rewarding,” added Kye Yeung, SCRS National Director and first-time SkillsUSA volunteer. “The dedication from the student and advisor participants, and the volunteers, was very inspiring, and something that I will never forget. For repair facilities, who think there is a shortage of quality entry-level technicians in this industry, you need to make arrangements to be at the SkillsUSA competition in 2013.”

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 21


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22 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Parts Manager: Kristopher Mylius krism@vanhornhyundai.com

800.236.9888 3512 Wilgus Ave. P.O. Box 1144 Sheboygan, WI 53082-1144


www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 23


24 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com


www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 25


26 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com


Automotive Service & Repair Week (ASRW) has announced that 13 paint and coatings companies are supporting this year's event through exhibit space and interactive sponsorships. Confirmed paint companies that will exhibit at ASRW include • DuPont Performance Coatings • BASF - The Chemical Com-

pany • Sherwin-Williams Automotive Finishes Corporation • Valspar • Matrix System Automotive Finishes, LLC • Axis Performance Coatings/Vogel Automotive Coatings • Fashion Paint • Silver Sails Paints. Also exhibiting are • Beta Color • Chemicar • ChemSpec USA Inc. • Lusid Technologies Inc.• Roberlo, S.A.

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Dick Cross to Keynote at NACE-CARS

Dick Cross, who served as CEO of CARSTAR from 2004 to 2011, will be the keynote speaker at this year’s NACE. Cross is the author of the recently-published “Just Run It,” which ASA’s Ron Pyle said offers a formula to help business owners understand “the bigger picture of how to achieve business success.” Pyle

said the message of Cross’ book and keynote address will be that small business owners can get so focused on the “next great theory” (like “lean”), that they overlook some basic principles for running a business successfully. “We’ve complicated it to the point that we need to now go back and say, ‘Just run it,’” Pyle said.

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+ 28 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com


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www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 29


AUTOMAKER, AU A UTO OM MA M AK AK ER O OEM EM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News Toyota to Recall 778,00 RAV and Lexus for Suspension

Toyota will recall approximately 778,000 vehicles that are at risk for problems with their rear suspension. But the recall hasn’t started yet, because the company hasn’t figured out how to fix the problem. “The remedy is being finalized,” wrote Vinnie Venugopal, Toyota’s general manager of Engineering and Manufacturing in North America, in a recall acknowledgement letter sent to the National Highway Traffic Safety Administration. “Toyota will provide NHTSA with additional details at a later time.” Notifying NHTSA of the problem without a solution is an unusual step, perhaps especially so, considering Toyota says it has been monitoring the problem since 2008. The company said it would notify owners of affected RAV4 and Lexus HS 250h models by mail when they can schedule repairs. The problem centers on improper tightening of lock nuts in the rear-vehicle tie rods. Rust has developed on the tie rods, leading to corrosion, and possibly to separation of the arm from the vehicle. Unchecked, the problem could result in loss of vehicle control, according to the defect report. While the company says it is safe for motorists to drive the vehicles until a permanent solution is found, they should ensure the lock nuts are properly tightened. The problem could be responsible for at least one highway accident, in which a driver reported a loud noise that immediately precipitated a loss of control. An internal Toyota investigation could not discern whether the tie-road corrosion had caused the accident. RAV4 vehicles built in the 2006 through 2010 model years and account for 760,000 of the vehicles in the recall. Lexus 250h models number approximately 18,000 and are from the 2010 model year. Toyota did not respond to requests for comment.

www.autobodynews.com

September 2012

ILLINOIS • INDIANA • MICHIGAN • OHIO • WISCONSIN

2012 Nissans Probed on Airbags

Mazda Recalls 217K Tributes

GM to Recall 250K SUVs, May be Fire Hazard in Electricals

Chrysler’s Top Sellers Probed

U.S. safety regulators are investigating reports that a damaged cable assembly in the 2012 Nissan Versa could prevent its airbag from deploying in a crash. NHTSA said its investigation covered an estimated 100,000 Versas sold in the United States. NHTSA said Nissan had notified it that the airbag cable assembly was found pinched within the steering column on some Versas. “Damage or a short to this cable may cause the airbag to not deploy, which poses a safety risk,” said NHTSA’s Office of Defect Investigation.

GM is recalling nearly 250,000 sport utility vehicles because of an electrical problem that might cause fires. The recall pertains to some 2006 and 2007 Chevrolet Trailblazers, GMC Envoys, Buick Raniers, the SAAB 9-7x, and Isuzu Ascenders, sold in a number of northern states, according to the National Highway Traffic Safety Administration. In these vehicles, fluid may enter the driver’s door module, causing corrosion that can lead to a short-circuit. ‘A short may cause the power door lock and power window switches to function intermittently or become inoperative. The short may also cause overheating, which could melt components of the door module, producing odor, smoke, or a fire,’ the recall states. GM reported that at least 28 vehicle door fires were reported in connection with the problem. The recall includes a total of 249,260 vehicles that were sold in Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia. A solution to the problem is still being finalized, according to the recall. Owners will be notified if their vehicle is included in the recall by the respective car makers.

30 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Mazda is recalling 217,500 Tribute SUVs due to a throttle problem that could make it difficult to slow down a vehicle after a driver presses down the accelerator. Ford has recalled 2001 to 2004 model Escape SUVs. Ford and Mazda jointly developed the affected Escape and Tribute models, assembled by Ford. The recall affects vehicles made for the 2001 to 2006 and 2008 model years that were equipped with the 3-liter, V-6 engine and speed control. Ford recalled 423,634 Escapes in the US and 484,600 worldwide for the problem. Chrysler’s two top-selling vehicles, the Ram pickup and the Jeep Grand Cherokee SUV, are under investigation by the NHTSA. The rear wheels can lock up in Rams from the 2009 and 2010 model years, potentially causing crashes, while power steering fluid hoses can leak in 2012 Grand Cherokees, possibly causing engine fires, according to documents posted Monday on the National Highway Traffic Safety Administration website. Up to 230,000 Ram pickups and nearly 107,000 Grand Cherokees. The pickup is Chrysler’s top-selling vehicle this year, while the Grand Cherokee is No. 2.

Some Big GM Vans Recalled

GM is recalling more than 10,000 full-size vans in the US and Canada because the fuel filler pipes can rust, leak and cause fires. The recall affects Chevrolet Express and GMC Savana vans from the 2003 and 2004 model years with left-side cargo doors. It covers vans sold in 20 states, Washington, D.C., and in Canada, where salt and chemicals are used to clear snow from roads. GM said salt and chemicals can get trapped in a conduit that covers the fuel filler pipe and cause corrosion. Gasoline may leak and cause a fire. The company said it doesn’t know of any fires or injuries from the problem. Owners with questions can call Chevrolet at (866) 6946546 and GMC at (866) 996-9463.

Infiniti JX Gets Brake Probe

NHTSA has opened an investigation into the 2013 Infiniti JX over possible improper application of the e-brake. While the investigation of 8,000 new Infiniti crossovers is not a recall, it could eventually trigger one if the government agency doesn't like what it finds. Owners have reported that “the intelligent brake assist system inappropriately activated emergency braking autonomously bringing the vehicle to an immediate and complete stop.” Obviously there’s danger in a vehicle that stops unintentionally and without warning.

Hyundai Settles Airbag Lawsuit

Law firm Hagens Berman has reached a settlement with Hyundai in a lawsuit regarding faulty airbags in the auto manufacturer’s Sante Fe crossover vehicles. The lawsuit alleged that airbags in some 2007–2009 Hyundai Santa Fe crossover vehicles failed to deploy during certain types of collisions. The settlement allows owners of 2007–2009 Hyundai Sante Fe crossovers to return defective vehicles if the company cannot repair them through a software upgrade, Hagens Berman said. Hagens Berman said Hyundai has ordered a recall of roughly 200,000 vehicles in response to the lawsuit. The recall is the latest in a series of recalls by Hyundai, which have amounted to about 1.3 million vehicles since 2006. Hagens Berman said the settlement will be filed in court for approval by Aug. 17. The recall will occur even if the court does not approve the settlement. “We negotiated a settlement that is very favorable to consumers, giving Hyundai owners the ability to return their vehicle if the settlement’s software upgrade does not fully solve the problem,” said Rob Carey, attorney for Seattle-based Hagens Berman. “This is especially important when it comes to something as critical as an airbag, a safety feature mandated by federal law.”

www.autobodynews.com C


GM Recalls Cruzes, Fire Risk

Engine fires are forcing General Motors to recall the Chevy Cruze, a popular model that has helped GM win back small-car buyers. The recall covers 475,000 vehicles made in the U.S. from September of 2010 through May of 2012. It’s the car’s fifth recall since it arrived in showrooms nearly two years ago, raising questions about the sedan’s reliability. The fires can break out when fluids drip onto a hot plastic shield below the engine. The problem occurs mainly when oil is spilled and not properly cleaned up during changes, General Motors said Friday. The company knows of 30 fires caused by the problem, but no injuries have been reported, spokesman Alan Adler said. Flames engulfed and destroyed cars in two cases reported to federal safety officials. GM will notify owners starting July 11 about when to bring cars to local dealers for repairs, which are free and should take about 30 minutes. Dealers will fix the problem by cutting the plastic shield to let the fluids drain to the pavement, GM said. Cruzes with worn-out manual transmissions also can leak fluid onto the shields in rare cases, GM said.

Chrysler Issues Bulletin on Welded Sheet Metal Repairs, Cautions on GMA Welds

Regardless of the cause of vehicular damage, the repairer’s moral obligation is to repair the vehicle to the original design intent relative to safety, NVH, comfort, durability, and corrosion protection by duplicating the original construction as closely as possible by following all manufacturers’ guidelines. With the increasing use of advanced high strength steels in body construction, and their susceptibility to degraded material properties from welding heat, the approved process for installation of replacement panels has changed. Chrysler has previously approved the use of “weld bonding,” where squeeze type resistance spot welding (STRSW) is combined with an approved structural adhesive, as one of the acceptable methods to install welded panels while maintaining the original appearance and corrosion protection. High quality and capable STRSW equipment, which was a rare shop tool in the collision repair industry, has now become the norm and with this, it is now important to state that weld bonding of replacement panels is the recommended installation method to utilize when repairing Chrysler, Dodge, Fiat, Jeep, or Ram vehicles. GAS METAL ARC WELDING (GMAW or MIG) SHOULD ONLY BE USED IN THE

FOLLOWING SPECIAL CIRCUMSTANCES: • Proper weld access cannot be attained utilizing STRSW equipment with any of the available accessory arms. • Utilize 6-8 mm ring fillet welds for exterior panels and 8-10 mm for all others. • Adhesives need to be kept 25 mm from a ring fillet weld due to their flammability. • A Chrysler publication explicitly calls out fusion welding as the proper repair method. • The original attachment was GMAW.

ALL OF THE FOLLOWING GUIDELINES MUST BE ADHERED TO: • DO NOT use heat to straighten sheet metal unless the panel will be replaced. • If weld-on pulling studs are used, their use must be minimal and the backside of the repaired panel must also be repaired to restore the original corrosion protection.

CHARACTERISTIC OF ACCEPTABLE STRSW EQUIPMENT: NUMBER: 31-007-12 GROUP: Collision Bulletin DATE: August 14, 2012 • Must utilize 220 volt (or greater), three-phase power supply. • Must utilize inverter technology • Must have the capability to provide a minimum of 10,000 amps of output.

• Must have the capability to provide 600 pounds of tip force (267 daN) with the longest arms • Should utilize “smart” technology which helps eliminate errors in equipment set-up.

STRSW EQUIPMENT MEETING THE CRITERIA INCLUDES: • Car-O-Liner CTR12000 • Cebotech Tecna Smart-Plus 3664+ • Elektron Multispot® MI-100 Control • Pro Spot i5 • ONLY Lord Fusor #112B or 3M #08116 have been approved by Chrysler for weld bonding. These materials provide corrosion protection in the vulnerable weld zone. Joint sealers should be applied after welding is complete and appropriate primers have been applied (if needed). • Only remove e-coat from the new panel at the weld-bond mating location. • Minimize removal of galvanize/galvanneal coating. • Solvent wipe with suitable product before application of adhesive. • Initial application of adhesive should be spread from the bare metal onto the e-coat to provide a continuous corrosion barrier. THE REPLACEMENT STRSW WELDS See Chrysler Bulletin, Page 34

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 31


SCRS REPAIRER DRIVEN EDUCATION (RDE) series will feature seminar offerings. Each of the courses has been individually selected or crafted by SCRS because the content specifically focuses on issues and information that are relevant to collision repair professionals operating in today’s marketplace, and appeals to the diverse array of marketplace perspectives that exist within the collision repair industry. PRICING RDE Headline Session: Innovation Forum = $75 each (advanced) | $85 each (after Oct 15/onsite) 1-2 RDE regular session tickets = $65 each (advanced) | $75 each (after Oct 15/onsite) 3-6 RDE regular session tickets = $50 each (advanced) | $65 each (after Oct 15/onsite) SCRS RDE Sky Villa After-party* = $75 each (advanced) | $85 each (after Oct 15/onsite) *All guests must have a ticket to enter; ticket is included with Full Series Pass

RDE Full Series Pass BEST VALUE! = $300 each (advanced) | $350 each (after Oct 15/onsite) Full series pass includes 7 RDE regular sessions (one in each available time slot) + Headline session + Ticket to After-party on Thursday night. With Full series purchase, sessions are as little as $28.12 each

Tuesday, Oct. 30 / 12:30PM – 2:30PM

RD1 – Hybrid Power & Platforms (David Gruskos, RAE Inc.) For a shop and technician to have an understanding of how the manufacturing of the new car bodies and hybrid power train are combined together. With the future of many new hybrid platforms, it is critical to know how to identify the metals and/or composites when developing a plan for repair or replace. This presentation will show the OEM’s plan on educating the repair facilities. Attendees will learn: ● Proper tooling for new repairs ● Where to find repair information ● How to identify repair methods ● How to develop a repair plan for working with hybrid power platforms

RD2 – Marketing: More Customers, Sales & Profits (Frank Terlep, Summit Software and Mobile Solutions) By attending this session collision repairers will learn how digital marketing, social media, customer retention and loyalty tools, technologies and techniques that will result in increased customer counts, improved customer referrals, loyalty, revenues and profits.

RD3 – Monetize Your Opportunity: The Benefits of Business Diversification (Tom Myroniak, SEMA) Industry events, such as the SEMA Show, demonstrate the greatest value to business owners when the value proposition translates into a tangible return on investment when you return to your business. As the collision repair market continues to be laden with small margins and undue pressure, many repair businesses are looking for opportunity to bring in added revenue streams while increasing the frequency of contact with their customer through expanded service offerings. This session will give the attendee an overview of: ● Where to find unique and complementary business opportunities on the show floor

● How to map out your strategy for finding the ideal opportunities for your business ● How value added services can be integrated into your business ● How to benefit from the marketing advantages of consumer oriented service offerings to bolster your collision business.

Tuesday, Oct. 30 / 3:00PM – 5:00PM

RD4 – Learn How to Make Sense of OEM Repair Information (Tom McGee, ALLDATA)

OEMs communicate their repair procedures in different ways. This session will help you interpret OEM procedures (symbols, supplies, equipment, etc…) and help in making a proper repair. Participants will: ● Increase their understanding of OEM repair procedures ● Aid in improving estimate accuracy ● Aid in completing repair to OEM recommendations

RD5 – Change the Way You Think at a CORE Level (Bill Park and Dr. Byron Bissell, MpowerU) The purpose of this presentation is to provide a clear understanding of what junk thinking is, show evidence of existence in the market, and provide a clear direction for attendees to depart from the junk thinking environment. We believe, and can show that junk thinking is responsible for 80% of the problems in one’s business, and throughout the presentation we will provide tangible insights that will allow the attendees to identify and remove those barriers in their business. The lack of quality thinking has led to enormous disasters and disappointments. And it’s not only thinking through the solutions to the gnarly problems...more often than not, it’s the painful reality that you’re working on the wrong problems. We hope to FREE their minds! Attendees will: ● Leave understanding the premise of JUNK THINKING ● Learn how to identify whether or not they are solving the wrong problems in their business ● Feel empowered and confident to sift their thinking in order to break away from the herd

RD6 – Numbers You Can Take to the Bank: Measuring and Improving Performance (Tom Hoerner, BASF) A look at the data required, both financial and nonfinancial, to effectively manage a collision repair business. Ratios, percentages and tracking trends are explained within the context of running a business. Participants will learn how to use a solid understanding of their numbers to increase their profitability and the success of the business. Course attendees will receive the following objectives during the session: ● Understand how to collect accurate and timely data from their business ● Develop a working knowledge of collision cen-

32 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

ter performance indicators, and what affects them ● Understand how to use those KPIs to measure and improve their performance with the goal of increases net revenues.

Wednesday, Oct. 31/12:30PM– 2:30PM

RD7 – Paint Shop Throughput: A Quick Changeover Approach (Robb Power and Brett BiaLowas, PPG Automotive Refinish) Quick Changeover, sometimes referred to as Setup Reduction, is a systematic approach to eliminate or reduce non-value added activities and time in the setup and/or teardown of any processes within production, allowing companies to more quickly and efficiently change from one product to another. Quick Changeover is a critical component of Lean Manufacturing and is a foundation for gaining critical capacity to meet customer demand and grow operations. This seminar will focus on applying quick changeover techniques and principles to the refinish area within collision, more specifically, to optimize booth cycles for any shop faced with needing to gain capacity and throughput while being held back by the current cycle time of their booths. While this seminar will focus on the refinish area, these principles can also be applied to other areas within collision where better transition and utilization of equipment and assets is involved. Participants will: ● Understand the principles and techniques of quick changeover as applied to spray booth optimization ● Learn techniques for evaluating the effectiveness of their refinish operation as well as learning to see opportunities for booth cycle time reduction. ● Be introduced to the concept of flow and resource planning in relation to gaining throughput and capacity in the refinish operation of collision repair. ● Learn simple methods to standardize processes and enable continual improvement.

RD8 – Marketing to Consumers - Supporting Customer Pay Sales Efforts (Steve Trapp, DuPont Performance Coatings & Robert Rick, Gates Business Solutions) With 35-40% of customers asking repairers to write a customer paid estimates and a historical 50% closing ratio on these estimates, improving sales skills for these more price sensitive customers is key. This course will review and practice the advisory sales process and how it uniquely applies to this segment of prospective customers. We will then discuss sales support tools which would be useful to help reinforce your unique value proposition to close more sales. Finally, we will reinforce follow-up strategies to help optimize performance. At the end of the course we will create a personal improvement plan per attendee. After completion of this session, attendees will be able: ● To briefly review the customer pay segment its % of estimate traffic and closing ratio for this segment - Sell the why... ● To explain the advisory and sales process to lay

a foundation to a unique approach to these price sensitive prospects. ● To role play using this process with fellow classmates to ensure both parties are comfortable with the sales process model. ● To review various tools available to repairers to help offer proof that your repair center should be their choice. ● To review various follow-up strategies which have proven effective in this segment ● To gain alignment on the process tweaks in each person’s selling strategy they would like to make when they return.

RD9A - Understanding Design Based Repairs (Richard Perry, CHIEF Automotive) This course will help attendees understand necessary information about the new metals being used in the construction of today’s vehicles, and how they impact the repair process. We will discuss methods for metal identification and the proper repair methods by material. In addition, the course will focus on why automobile manufacturers have made such an aggressive transition to the use of the advanced steels in new vehicle construction. It doesn’t matter who is working on the vehicle, whether it is the person writing the estimate or the technician performing the repairs, it is pertinent to first find out what the vehicle’s structural content is before starting any structural repairs. Attendees will be able to: ● Make sure they are able to find the proper repair methods, and that they have the right equipment before commencing repairs ● Ensure that their technicians have the proper training and ability to perform the repairs correctly. ● Leave with an understanding of why you cannot use the same repair methods on today’s vehicles, as those that were being used just a few years earlier.

Wednesday, Oct. 31 / 3:00PM – 5:00PM

RD9B - Going Green Doesn’t Have to be Expensive (Steven Schilling, GRC-Pirk Management) Shops can save a lot of money by greening their practices, rather than spending a lot of money. Marketing tricks and television advertising do their best to convince us that in order to become more eco-friendly we have to buy more stuff – but that’s not true. If you replace a perfectly good item just to buy a new eco-friendly one, you aren’t really doing anything to benefit the environment! So with that in mind, this presentation will discuss 101 ways that shops can save money by practicing green. Attendees will find many simple things to implement in their shop to go green and attain recognition on the www.findgreengarage.com public service website! Attendees will leave the session understanding of: ● What it means to “go green” and to be a good environmental steward ● What is sustainability, energy conservation and pollution prevention


● That you can’t manage what you don’t measure: your carbon footprint = Greenhouse Gas

RD10 - Dedicated vs. Universal Fixtures: The Pros and Cons (Shawn Hart, Car-O-Liner Company) This presentation is designed to explore the pros and cons of the dedicated and universal fixture repair systems. We will look at a number of different areas that shops, technicians, and insurance companies have issue with or questions about regarding each of the repair systems. These areas include: time, cost, and flexibility, ease of use, OEM recommendations, and accuracy. After completing this session participants will be able to identify: ● The differences between dedicated and universal fixture repair systems. ● The pros and cons of each type of repair system. ● The difference between anchoring and fixturing.

RD11 - Lean Flow Concepts: Improve Your Hours Completed Per Day (Steve Trapp, DuPont Performance Coatings & John Sweigart, The Body Shop) Repairers have been asked to focus on improving the hours completed or repaired per day, and this seminar will help you refine your administrative and production processes to improve performance. Looking not only at the value of the steps in the process, but also the flow of the processes is key to improving this number to industry leading performance. We will give very specific best practice recommendations to enable reduction and improvement of customer service provided. We also will discuss how to sell the change to your staff once you return and make them own the improvement and be supportive of the enhanced best practices. Objectives of completing this workshop are to: ● Understand hours per day, standards for performance and what step change is possible ● Understand both the administrative and production processes impacting hours completed per day and review best practices to improve ● Understand how coordination of work flow enhances performance when you have large volume and need to keep flow moving ● To re-sell the value of improving the metric to the technicians and office staff, and get them to see the value in change ● To discuss how to prioritize the improvements and then to establish visual controls to keep them in place long term.

Thursday, Nov. 1 / 12:30PM – 2:30PM

RD12 - Maximize Your Web Presence (Mark Claypool, Optima Automotive) Having a website has one purpose, and only one purpose; bringing potential customers to your door. If your business is going to have an online presence, it is NOT enough to just have a website. To be truly effective, your site needs to bring you prospects, needs to be searchable by people looking online for the products/service you provide and, most importantly, it needs to convert website visitors to customers. After going through this session, you will learn: ● Website essentials, such as what needs to be taken into consideration when building and having a website online ● About Search Engine Optimization (SEO). Just

having a website doesn’t mean people will come to it. It must be optimized, and SEO is a science unto itself that few website developers get right. In this session you will learn what to look for. ● Be prepared, participants will engage in live reviews of attendee websites and social media efforts.

RD13 - Make More Money WITHOUT Spending an Arm and a Leg! (Toby Chess) Cultivating positive change in your business can come across like a daunting task fraught with challenge and expense that many businesses just aren’t able to justify in the current economy. What if you knew that there were simple straightforward areas throughout your business that could streamline your operation, and increase your profit by reducing your waste and expenses? For collision repair businesses there is a ton of opportunity to improve your business with very little investment if you know where to look. This session is going to offer a number of proven ideas that will decrease cycle time, reduce comebacks and increase quality; and the investment costs will be under $500.00! Forget about learning fancy buzzwords associated with process improvement, this session is going to give time-tested examples of ways to improve your business and make more money for very little, if any, up front expense.

RD19 - Bidding Wars: A Global View on the Possible Economic Impact of Insurer Involvement in Parts Procurement (David NewtonRoss, Collision Repair Specialists of Australia (CRSA)) Online bidding requirements for parts procurement has just entered into the U.S. market recently, but there are other countries, such as New Zealand, where the parts tendering practice was constructed by the country’s largest carrier for its own use in 2003, and has since become a mandatory practice for all carriers. This session will provide attendees with a global perspective on: 1. The economic impact the online bidding program has had on repair facility margins in NZ 2. The procedural impact the program has had on cycle times and the estimating process 3. The changes the program has had on the repair facilities relationship with parts vendors 4. How the program has impacted part type selections 5. Why the program succeeded in NZ while failing to grab hold in neighboring countries such as Australia. 6. What the potential impact is that this type of parts procurement could have on the United States.

Thursday, Nov. 1 / 3:00PM – 5:00PM

RD14B - Importance of Repair Standards in Completing a Safe and Seamless Repair (John Spoto & Shawn Collins, 3M) We audit many repair facilities and see common repair practices that lead to improper and unsafe repairs. This session will expose the audience to some of the most common repair processes that result in improper repairs, and we’ll review solutions around the man, machine, materials and methods to create seamless, safe repairs. Finally, we will introduce the audience to Job Instructional Training methods to sustain these repair standards. Our attendees will leave the room with: ● An understanding of how to avoid common re-

pair process mistakes that lead to improper repairs ● An understanding of many repair standards ● A roadmap to sustain adherence to these standards through Job Instructional Training ● A benchmark of critical success factors in order to sustain proper repair standards

RD15 - Waterborne Refinish Coatings: What Are You Waiting For? (Jeff Griffin & John Parran, PPG Automotive Refinish) You are here at SEMA to learn about the latest and greatest technology. Do not let this session pass you by. This is your chance to learn about the latest technology that is having an impact in the collision repair and custom markets. You will learn about the capabilities and the unique advantages of water technology in today’s demanding markets. Most important come and hear about what the masters in car building, such as Charley Hutton, have learned while making the move to waterborne finishes. Attendees will receive: ● A brief history of water based refinish coatings which demonstrates the technology is over 10 years old and is in its third generation. ● The advantages of water based coatings compared to current technology ● The status of North American legislation ● Answers to general questions fielded on water technology, on topics such as training, needed equipment, color match capability and more. ● Color range for the custom market and where we see this going ● A Question & Answer session with the presenters, accompanied by industry expert Charley Hutton, Painter & Owner of Charley Hutton’s Color Studio.

RD16 - Bulletproof Your Company: Effective Human Resources, Policies and Procedures (Cory J. King, Fine, Boggs & Perkins LLP) Lawsuits by current and former employees are skyrocketing. The financial impact of such suits on a company can be devastating. While an employer cannot stop a desperate employee from filing a lawsuit, they certainly can put themselves in a position to deter and ultimately win lawsuits before they ever get filed. It all starts with effective HR policies and procedures. Bulletproofing your company against employment claims is much easier than you think! Participants in this seminar will receive practical, real world instruction on what policies and procedures are essential to lawsuit avoidance, how to implement those policies and procedures, and what makes an effective policy and procedure in comparison to what gets employers into trouble. Participants are encouraged to bring their current employee handbook or policy manual for hands-on analysis and review for compliance. If you have employees, this seminar should not be missed!

Friday, Nov. 2 /10:00AM – 12:00PM (HEADLINE PRESENTATION)

RD2012 - RDE Headline Session: Game Changers - Innovation Forum Emerging ideas serve as the lifeblood for businesses and industries alike, offering the competitive edge necessary to enhance business growth and profit. Businesses that have the foresight to harness those advantages through rethinking products, services, processes, and business models are able to materialize the greatest level of differentiation between the remainder of the market in

the eyes of your customer. So how does innovation prosper in the collision repair industry, and how can you foster innovation as a core value that shapes the framework of your business? Join leaders in the collision repair industry for the RDE Game Changers - Innovation Forum headline presentation of the Society of Collision Repair Specialists’ 2012 Repairer Driven Education series at the SEMA Show in Las Vegas. At this highly interactive event, you’ll learn: ● What innovation can look like in the collision repair business — including technology, product, service, and business model innovation — and how it is becoming core to business strategy. ● How leading companies manage for innovation, including the internal and external partners needed for success, overcoming barriers, and utilizing tools and technologies to accelerate implementation. ● Key success factors for making your company a leader in your market through embracing ongoing innovation as a core function of your business. ● Forum Moderators, Panelists and Participants will be announced at a future date.

Friday, November 2 / 12:30PM – 2:30PM

RD17 - Vehicle Knowledge for Triage, Blueprinting and Estimating (Larry Montanez III, P&L Consulting) Participants will learn how to identify and understand the advanced material substrates in today’s vehicles, how to diagnose the sustained damage by pre-measuring the vehicle to ascertain the amount of sustained damage, if any. Participants will learn the process and procedures of Triage and Blueprinting to ensure all sustained damage is accounted for and all associated repair procedures and materials are covered to ensure an accurate damage report is written, that not only ensures a correct safe repair, but ensures there will be no delays or missed items to increase the facility’s profitability. Attendees of this session will leave with the understanding of how to: ● Eliminate the need for supplements by writing complete damage reports the first time ● Pre-measure the vehicle efficiently to increase profitability ● Properly blueprint a vehicle to ensure no repair delays ● Diagnose damage with a better understanding of applied collision forces ● Apply logic from the estimating system procedural pages and use OEM repair information

RD18 - Achieving Service Excellence by Applying LEAN Thinking (Steven Feltovich, Sherwin-Williams Automotive Finishes) This course is exclusively designed for SCRS/SEMA participants, and the workshop will provide participants the knowledge needed in order to achieve customer service excellence through lean thinking principles. Attendees will learn to use lean management techniques to transform or continue to improve your customer service delivery, and discover the extreme competitive edge in achieving service excellence the lean way! Understand the process driven approach to delivering the “ultimate customer experience.” Attendees will benefit from the following workshop objectives: ● Explain the driving factors behind the experiential service economy, and how to become more profitable with a customer focused strategy. ● Establish a proven method for providing the value actually desired by each customer.

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 33


● Learn how to build a strong brand based on customer service excellence. ● Apply a simple process that improves the efficiency and effectiveness of your customer facing staff. ● Find out how to identify service excellence professionals inside and outside your organization. ● Attendees will leave this class with a self-assessment tool in order to evaluate their own organization’s level of service excellence.

RD14A - He Who Controls the Data, Controls the Truth (Michael Anderson, Collision Advice) Have you ever wondered where insurance companies get the data which they use to manage Key Performance Indicators they request from your shop? Have you ever been told your severity is too high in comparison to the market, or that your posted labor rate is excessive? In this riveting session, Mike Anderson will outline the process in which your estimating and management system information can be harvested, aggregated, depersonalized and then reported on in the form of trending reports and data analytics. Using his background as a multiple location collision repair business owner, as a consultant, and as a participant on advisory councils for Information Providers and Insurance Carriers, Mike is going to illustrate how repair facility information is used to re-apply pressure on your business, and prepare you with the necessary resources and knowledge to counter that pressure. In fact, this course will help you outline an action plan to utilize your own internal data as a resource, and how you can establish processes in your business that produce more consistent and accurate estimate information.

Whether you have multiple estimators working out of one facility, or multiple facilities, having consistency in your estimating practices is critical to your success. By setting defined estimating practices, procedures and policies for your estimators, and following through with management practices which reinforce that those standards are followed, you will be able to better control the accuracy of your data output; producing data that accurately represents the charges and tasks performed in your business. We will look at websites, tools, forms and technology applications that will allow your estimators to become more efficient and ACCURATE in their duties of writing a thorough damage analysis. Tools such as the SCRS Guide to Complete Repair Planning, blend within a panel refinish break down, Structural Repair Calculator and a variety of other documents and tools will be showcased. This course will provide Collision Repair Facility owners the resources to consistently train their estimating staff how to reflect your standard of repair in the estimating process, while generating the most comprehensive and profitable repair plan necessary to return the vehicle to Pre-Accident Condition. “Writing it right” has an impact on the growth of your bottom line, but it also has an impact on the industry through the estimate data it produces. The information in your estimate can play a significant role in how the reports from the information providers reflect market practices, which is one of many reasons that having all the necessary and performed operations listed is critical to your success. This course is ideal for Owners and Managers.

34 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 31

Chrysler Bulletin

SHOULD DUPLICATE THE ORIGINAL WELDS IN: • Size • Quantity • Location NOTE: replacement welds should be within ¼-inch of the original location while trying to avoid placing new welds over old welds. Where replacing only the exterior panel in a 3T situation, the new weld should be placed about 3/8-inch away to avoid shunting and reestablish a 3T weld.

• Never use “weld-thru” primer. • Completing all welded panel replacements requires applying a coating of creeping rust inhibitive material in all areas where any welds were made, even where weld-bonded. • Replacement panels must be installed as provided, and utilizing the methods described in this bulletin, unless additional guidelines are made in another Chrysler Collision Repair Bulletin, Chrysler Body Repair Manual, or other Chrysler approved publication. Failure to follow these repair guidelines will result in a vehicle which may not duplicate the original design intent in terms of function, safety, and durability.

Insurance Auto Auctions Donates $10,000 to CREF

Insurance Auto Auctions has contributed $10,000 to the Collision Repair Education Foundation. The contribution will support the Education Foundation’s Collision Repair Education Campaign fund, which allows the Foundation to provide its annual student scholarships, school grants and the yearly Ultimate Collision Education Makeover $50,000 grant. “IAA is proud to provide financial support that will help remove financial barriers to education and attract and inspire students to pursue career options in the collision indus-

try,” said Donald J. Hermanek, chief client officer at Insurance Auto Auctions. “IAA values the important work the Collision Repair Education Foundation does in building awareness of the industry and rewarding those students who bring passion for their trade.” “Insurance Auto Auctions’s donation significantly helps our efforts in supporting secondary and post-secondary collision students and their school’s collision programs,” said Clark Plucinski, Collision Repair Education Foundation executive director.


www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 35


Company Connections with Chasidy Rae Sisk

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

OE Reman Offers Remanufactured OEM Parts for the Best Possible Fit by Chasidy Rae Sisk

In today’s collision industry, many shops and their customers would prefer not to use aftermarket parts, yet due to cost control by insurance companies, many are unable to spend the money to install original OEM parts on some vehicles. OE Reman Direct, based in Redford, MI, offers an alternative solution. OE Reman Direct remanufactures OEM parts. Specifically, they purchase cosmetically blemished, surplus and over-run material from Ford and Nissan. They then refinish stock as required and market through the OEM dealer to provide the highest quality alternative part available. These parts are new, produced by the OEM and have never been previously installed on a vehicle. OE Reman acquires all of their parts directly from

the OEM assembly plants, Tier 1 suppliers and the OEM’s respective service or replacement parts organizations. These parts are intended to boost sales currently lost to aftermarket, reconditioned or salvaged parts for which dealers have no other product line with which to compete. According to OE Reman Program Director Bill Bejin, “The advantages of OE Reman parts are a competitively priced part that has the fit and finish of an OEM original. Remanufactured parts are advantageous because they have been produced from OEM tooling. All of the detail items—mounting points, tabs, etc.—are where they should be. Aftermarket parts have been reverseengineered and may not have the same quality… [Parts sold through OE Reman] are the highest quality because they were produced from

ngs oati c e orn erb wat

the OEM tools and have not been on a vehicle that has been driven on the road. All of our parts are new from the OEM.” Hoping to reduce waste as well as assist their dealer network with the increase in aftermarket competition, Ford Motor Company contracted with OE Reman, selling materials that meet all of Ford’s quality standards other than cosmetics. OE Reman then refinishes those parts, allowing Bill Bejin them to offer the best fitting alternative parts possible. By delivering quality parts to the distributor customers, OE Reman is able to help body shops save time and money when they purchase OE Reman’s parts which fit and finish correctly the first time they are installed. These parts provide a dimen-

sionally correct fit because only OE parts with minor cosmetic blemishes are used, allowing customers to feel confident that they are selling the best quality alternative parts to consumers. OE Reman has one office located in the Detroit, MI, area, and warehouses in Monroe, MI, and Murfreesboro, TN. The company has 70 dealers nationwide, allowing them to service the entire country through their OEM dealer network. Bill Bejin specifies, “We ship to dealerships who then sell to the body shops directly. This allows the dealers to sell parts that are classified as ‘recycled’ to body shops allowing them to sell a better choice in alternative parts.” As a matter of fact, since OE Reman begins with OE parts manufactured on production tooling, their dealer customers and their collision shop clientele can be assured that the parts they purchase offer a fit and finSee OE Reman, Page 45

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Town & Country Ford Evansville 812.305.5706 Southworth Ford Marion MICHIGAN Brighton Ford, Inc. Brighton

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www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 37


Continued from Cover

Michigan’s Three

McElroy, McElroy’s Automotive, Farmington Hills. The group began March 1, 1934, as the Automotive Maintenance Association of Michigan and changed its name a few times until July 2004 when it re-affiliated itself with ASA. The annual October meeting this year is Oct. 18. Preceding it, and new, will be “The EVENT” — combining training, vendor displays and networking in conjunction with the Automotive Recyclers of Michigan. “It is the desire that this eventually will become part of our annual meeting,” Fisher says. The association variously assists members. As a liaison, ASA Michigan helps members with state licensing and departmental agencies, seeking answers that a repair facility may feel hesitant to ask directly. In addition, it connects with insurance carriers when problems arise—maintaining anonymity for the facility but receiving the necessary answers. In addition, the association assists police agencies in their inquiries, usually regarding vehicles that may have been involved in hit-and-runs. “The agencies appreciate our efforts because we send our alerts to the entire state electronically,” Fisher explains. He and staff also work with legislators. Recently, they assisted in having a mini-tort reform law pass because of the association’s outreach capabilities, which as a “no-fault state,” increased the amount of recovery from $500 to $1000. And now they are focused on updating the Motor Vehicle Service Repair Act (PA 300 of 1974) affecting both collision and mechanical. Although ASA Michigan does not have a designated lobbyist, the group works on the federal level with ASA’s Bob Redding, who provides assistance as needed. “As the economy here in Michigan begins to recover, as our membership begins to come back, our board will continue to monitor as to whether it will become a budget item in the future,” Fisher says.

Training is also offered. For instance, Fisher says that ASA Michigan was one of the first associations in the country to provide NESHAP/6H rule compliance meetings. “We had tremendous input in the development of a Q&A for this rule, which was then rolled out with Region 5 EPA and expanded from there,” he says. “We reached out to over 440 repair facilities throughout Michigan in our initial launch. In addition, a few years ago, we were the first association in Michigan to bring in national presenters like Mike Anderson of CollisionAdvice, who provides a vast array of management training, and Erica Eversman providing legal counsel overviews.” Disseminating factual information is also a key role of the association. “A perfect example was our recent State Farm PartsTrader meeting—it was open to vendors and members—we had some of our ASA National team here along with OEM Representatives, new car dealers, recyclers, staff from the MADA and PartsTrader.” He adds, “We had a few members return and some former members calling and wanting to attend. We had the facts of the program and we were sharing them with our membership, which was appreciated.” Monitoring compliance issues with DEQ and the state’s MiDEQ helps members avoid fines. “On more than one occasion, we were able to demonstrate that the items in question had different interpretations and sought solutions together,” he says. The West Michigan Body Shop Association began in 1955 when 28 collision shop owners formed the Greater Grand Rapids Independent Body Shop Association. “They wanted to address issues of low labor and material rates and the insurance-agent requirement that free loaner cars must be provided; otherwise the work would get ‘steered’ to another shop,” says Diane Rodenhouse, the group’s treasurer and owner of Rodenhouse Body Shop in Grand Rapids. The business has been a member since her father-in-law, Andy Rodenhouse Sr., and other local bodyshop owners called the first meeting of the GGR Independent

38 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Body Shop Association. She is joined on the WMBA board of directors by Chairwoman Cheryl Blish, Star Car Group, Grand Rapids; President Tim Jones, Quality Collision, Greenville; and Vice President/Secretary Scott Baker, Pfeiffer Collision & Paint Center, Grand Rapids. Board members are elected for two-year terms. In the early 1990s, the original association changed its name to address the growth of the surrounding communities. Unaffiliated nationally, the WMBA has 47 members, all in western Michigan. Dues are $175 yearly. The WMBA has meetings January, March, May, September, October and November/December and an annual June golf outing. Every spring, the group schedules a tradeshow with educational speakers and roundtable discussions. “Our association supports two local technical schools and gave them support to go to SkillsUSA,” Rodenhouse says. During the early spring 2008, repair facility owners primarily in the northern Lower Peninsula created the Northern Michigan Body Shop Association. Today, approximately 35 businesses are members, as far north as

Marquette in the Upper Peninsula and south to Saginaw. The NMBSA became an affiliate of Society of Collision Repair Specialists (SCRS) in 2012. The employees of each business are Associate Members under the “umbrella” of the business or regular membership. Vendors — suppliers of automotive supplies and products — may also join. Annual membership fees are $200 for a Regular Membership and $250 for vendors. In forming, the group identified its long-term goals, says Sue Allor, employee of Tri-Rivers Collision, Indian River, and secretary of the NMBSA board of directors. These included creating dialogue among repair facilities, insurance companies and consumers; ensuring quality of repair; improving the perception of the industry through promotion; education for consumers and collision professionals; legislative involvement; and eliminating businessto-business fear of competition. Allor recalls that the group also identified immediate priorities: a declining technician pool; rapidly changing automotive technologies; legislative issues/concerns; and promoting growth within the collision inSee Michigan’s Three, Page 45

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Looking Forward to SEMA at Foose Design by Chip Foose

It’s hard to believe, but as I write this, SEMA (Specialty Equipment Marketing Association) Show in Las Vegas, the biggest automotive show of the year, is only a few short weeks away. The Aftermarket, OEM’s and Suppliers take over three exhibit halls with displays and exhibits of their latest products and vehicles. SEMA is a very important event for all of us at Foose Design, and we never miss it. This year at SEMA, we will feature three purpose-built Foose vehicles. We also have a special build that will return to the SEMA Show—more on that later. The builds we are completing will feature the design and fabrication efforts of everyone at Foose Design and here are some details.

WD-40 Company Projects Once again we are teaming up with WD-40 for two vehicle builds in support of SEMA Cares Charities (Childhelp®, The Victory Junction Gang® Camps, SEMA Scholarship Program). WD-40/SEMA Cares Foose ‘53 Ford F100 It’s the 60th Anniversary of WD-40® Multi-Use Product. To celebrate this milestone, Foose Design is customiz-

ing a 1953 Ford F-100 Pickup, designed and built to maintain the look and feel of that truck used to deliver the first case of the product approximately 60 years ago. We will keep the original look, but update the drive train, suspension, wheels and tires and paint. I created a tribute, period correct, Rocket Chemical Company logo for the doors. We have many suppliers that are helping us build, including LMC

Truck Parts. The final design will be a tribute to the WD-40 Company and its history. The vehicle will be displayed in the Grand Lobby near the Central Hall, showcased at key West Coast auto shows and events in December 2012, and then auctioned at the 2013 Barrett-Jackson Collector Car Auction in Scottsdale, AZ, with proceeds benefiting Childhelp and The Victory Junction Gang Camps.

WD-40 Multi-Use Product, created by Rocket Chemical Company in San Diego, was developed as a water displacement material and was first used on the Atlas Missile Program as a rust inhibitor. The final formula was the 40th formula tried, hence the name WD-40.

WD-40 Specialist/SEMA Cares Foose Ford F-350 This project celebrates the new WD40 Specialist™ line of products and will serve as the companion truck to the ‘53 Ford F-100. The build will have us working in a much larger scale to create a true work truck that has appeal for automotive as well as construction and skilled trades audiences. Following SEMA, the Ford F-350 will be used for a 16month promotional period and then auctioned with proceeds funding scholarships through SEMA Cares. Starting with a stock 2013 Ford F350, I am developing a set of custom body kit parts including new front and rear wheel flares, side rockers and front chin spoiler. We will have custom axles made for the correct tire placement and will include numerous upgrades to the already stout stock suspension. I plan on making a set of very cool, one-off Foose wheels for

40 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

this project. The custom paint will be completed at Foose and should turn a few heads.

ELDOROD A significant part of my design history is Eldorod, the first car I designed as a full-time employee at Boyd’s Hot Rods. Ironically, it is the last car to be delivered out of the Boyd Shop before it closed in 1998.

Based on a 1949 Cadillac, it is sometimes referred as the sister car to the Larry Erickson designed Billy Gibbons owned Cadzilla. My original design had a lot of details that we removed or abbreviated in the interest of delivering the car. When current owner Chris Andrews purchased the car, he contacted me to ask if I would be interested in redoing the vehicle based on my original sketches. I jumped at the chance. Many subtle design features based on the original design that previously lived only on paper are being fabricated for this re-fresh. The hood line has been changed, the front windshield reshaped to a more gentle curve, the dash has been reshaped to match the hoodline, the wheel openings have been reshaped, front and rear bumpers are restyled including bumperettes from a ‘56 Nomad, and a grille opening from a mid 50’s Olds. New chrome side trim has been custom made and the top has been reshaped, surrounded by a thin chrome trim border and re-skinned in Mercedes canvas. The original maroon color has been repainted in a deep BASF blended blue, based on the color found in my original illustration. A completely new leather inte-

rior has been designed, stitched and installed. I am excited to unveil this re-creation in the booth of my sponsor, BASF Paints.

SEMA SPECIAL BUILD Now for some exciting news I mentioned earlier. Overhaulin’ is back! After nearly a five-year break, I am back with my talented crew changing people’s lives by completely rebuilding their neglected vehicles. The show will air on Velocity and Discovery Channel. Stay tuned for details about new episodes airing in the fall. We are well into the filming on our first episodes, but here’s the good part about the special build—we are going to do a live build of Overhaulin’ at SEMA! We are planning on securing a new vehicle from one of the OEM’s and then we will walk through SEMA like you would in a supermarket, picking out all the parts and components on the display floor to be included on this build. We will do all the disassembly, fabrication, customization, paint, interior and rebuild in front of a live audience. We even have some special plans on how this vehicle

may be given away to one lucky SEMA attendee. Stay tuned to my website www.chipfoose.com as I will be providing more details as we get closer. For those of you attending SEMA this year, make sure to check out my schedule for autographs and appearances. It will be published on my website about two to three weeks before SEMA. If you are not attending SEMA, maybe you should reconsider, there’s going to be a lot of great innovative products to see, and one lucky attendee might drive off with a new Foose vehicle! I hope to see you in Las Vegas!


Custom Corner

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

Some Cool Tips and Tricks to Save You Time and Money with Rich Evans

In this month’s column, I want to share some new and cool tools that have saved me time. As I always say, time is money, especially in this industry. Many of you are fixing plastic bumpers and you’ve probably come across parts that are broken, made out of polyurethane or plastic, or sometimes you can’t get the parts you need, or the parts are too expensive for your customer.

I came across a company called Automotive Welding Solutions that has a product called the Mixplast Hot Stapler (or Mixplast Magic Stapler) for plastic repair. It’s a plastic panel repair system, a 2 in 1 machine that staples and welds plastic. It saves on the cost of a machine. It’s battery operated, no cables are needed, it offers quick cooling time and fast repair time and has three positions for angled staples, which is cool

for tight areas. It has three or four different types of staples for different usages. It also comes with a handy storage case. Since I’ve found this tool, I’ve found more uses for it every day in the field—like door panels where a tab is ripping. I used the stapler to repair the tab without having to use glue, bonding or waiting. It’s an instant repair. In one of my projects, I used the stapler on a front bumper filler that was missing a corner. The only place to buy this filler is in Europe and that would have cost the customer $250 with a six-

week wait because the part was on back order. Instead, I used the staple gun to re-apply the piece, positioning the staples where I thought the strengthening needed to be. I put the staples in and melted the staple so it became part of the part, and then I cut the staple prongs and ground them down, then used 3M panel bond #08115 to level it out. I let it dry overnight, then came back and sanded it with 80-grit, then 150-grit, getting it shaped and ready to prime. I had a repaired part in less than 24 hours. It saved the customer time and made a

great repair and it bonds like it was never broken. I wish I had this tool 15 years ago! My second tip is a very affordable tape we get for a few dollars from Home Depot. It is multi-purpose foil tape and it becomes a tool when you are fabricating and modifying pieces on a project. I learned this technique from a good buddy of mine, Richard Wood, when we were up in Canada filming a

new TV pilot called World Wide Car Building. We had nine guys under one roof, and you can imagine the creativity and the different ways people do things, so I walked out of there learning five or

ten years worth of new ways to do things. The foil tape is a tool, a gig and a clamp all in one. Here’s a good example of a project

where I used the foil tape. We took a ‘54 panel truck and turned it into a pickup truck, dropping it on a 2006 SSR chassis. The chassis is wider and needed clearance for wheels, so we needed to weld the fenders to the hood and we welded the grill and front bumper all in one piece, mocked it up, and then had to cut the fenders and widen them 2-1/2 inches. We were able to put gussets underneath and get fender placement without removing the original position of the headlight, but I needed to make 20 different cuts into the fender and I had to try to roll that as a natural curve back into the headlights because there was a 2-1/2 in gap where I cut it. My buddy Rich came by and showed me a few tricks on how to use this foil tape. Normally, we’d have to hold everything together by spot welding pieces and re-spot welding them. Using the foil tape allowed me to shape the fender to get the look I was looking for, with the tape holding everything together from the outside with the natural contours so it doesn’t look awkward. I’ve got 20 different pieces so how is a clamp going to hold that? The tape was strong enough to hold everything in place so I was able to shape everything.

From that point, after using the tape, I took the hood off and turned it upside down and was able to go to the inside and tack everything together while the tape was holding it, then flip the hood back over and remove the tape. This is just one way of using the taping method. The tape can be used: #1 as a tool, #2, to hold everything in place, and #3, to give you an actual visual of how everything is going to look. I’ve been really busy the past few months. I mentioned the 10-day shoot in Nova Scotia, Canada, with Curtis Customs, filming an episode for our documentary called World Wide Car Building. We will unveil the two vehicles we built there at the SEMA show. One of the builds is a 2004 H2 Hummer that we chopped five inches and made it into a two-door. I am also working on another show called Build it With Rich Evans. For more information, see BuildItWith-

RichEvans.com. In this show, I am getting back to the nuts and bolts and helping DYI builders who are working on cars in their garages, where most professionals start. You can keep up with me on my fan page, Rich Evans Designs on Facebook, or visit me at RichEvansDesigns.com or HuntingtonBeachBody works.com. Thanks to my sponsors, I couldn’t build anything without them: 3M, Infratech, Woodward Fab, Lucas Oil, SPX products and others listed on my sponsor page at HuntingtonBeachBodyworks.com. Keep on wrenching. Hope to see you at SEMA.

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 41


Refinish Distributors Alliance: Collaborating to IMPACT Minds by Chasidy Rae Sisk

The Refinish Distributors Alliance (RDA) is a national group of refinish distributors dedicated to providing quality services and products to their customers. Founded in 2008 by seven members, they now consist of 15 members and are represented in 179 locations

over 26 states. RDA’s marketing brand is IMPACT. They understand the importance of marketing their brand and use IMPACT when referring to the group and everything they do in the group. Representing a cross-section of all major refinish brands, IMPACT members do over $400 million in sales as a group, comprising around 15% of the refinish business nationwide. Their goal is “to leverage the strength of individual members in an effort to be-

bined, IMPACT members have a better opportunity to compete with large national chains while maintaining their independence. IMPACT was formed as a forprofit company. Members are all equal shareholders and thus invested in the organization’s success. One way that RDA members enjoy the benefits of group strength, through combining business and marketing programs as well as combined purchasing power, is through the development of the Impact Brand. According to their brochure, IMPACT “provides our members an exclusive and powerful ‘Common Theme’ approach to marketing products and services to the collision industry. Members are fully engaged in working to develop and implement products and services that benefit each member of the group” by providing a variety of tools to aid members in effectively competing against both local and national distributors. Their approach to growing business includes lowering sales and distribution

A recent RDA member’s meeting was well attended to represent the IMPACT brand. Inset: Bernie Blickenstaff (upper) is president of IMPACT. Robert McKenzie (lower) is Executive Director.

come even stronger as one cohesive group.” Bernie Blickenstaff, president of IMPACT as well as CEO of Pro Finishes Plus, Inc. in Lanham, MD, notes that IMPACT was formed to allow members “to accomplish things as a group that we can’t do individually. We are stronger together and unified.” Executive Director Robert E. McKenzie, Jr. adds that “IMPACT’s members all have common interests and a common desire to grow their business.” By collaborating as a group, members are able to discuss problems in the industry and arrive at creative solutions to benefit the whole. Com-

costs, increasing overall market share and profits, marketing new products and programs, training and education support. They have also created the IMPACT Collision Solutions web site, which provides members access to a variety of buying, marketing and training programs for their businesses and their customers. Only members of their group sell IMPACT Performance Products, their premium private brand of products, offered through manufacturers with a proven record of consistency and quality. IMPACT uses the funding created from the group’s purchases to increase the resources and programs offered to

42 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

members and their customers. Examples of these programs include discounts on AAIA membership, credit card processing through First Data, discounts on business forms through RR Donnelley and partnership with I-CAR training. Members can offer their customers the IMPACT Elite Member program. This program is for the premier collision shops and will help them become stronger, more competitive and grow their business. IMPACT has put together business and marketing tools at discounted rates. As an IMPACT Elite member they will receive savings on uniforms, Phoenix Solutions Group’s marketing services, credit card processing, the Impact BizUnite market place and much more. Since IMPACT’s inception, Blickenstaff has seen positive effects to his business operations, including the creation of better buying opportunities from a margin perspective and a better gross profit margin. The networking and sharing of ideas with members has been beneficial for him and his company. He notes that involvement with IMPACT “allows members to differentiate themselves by providing customers with something that no one else can.”

Blickenstaff notes that it has become increasingly tougher to compete in the distribution business as the insurance, collision and distribution industries are all going through consolidations which make it difficult for the ‘little guy’ to compete against big national players. IMPACT members are better able to increase their footprint by “banding together from a resource perspective.” The RDA/IMPACT group is unique and the first PBE group where independent distributors who are all leaders in their markets have come together. IMPACT’s members have integrity and commitment to the success of their businesses as well as their customers’ businesses. Their goal is the group strength that allows members, collectively, to compete on a national level on which they have no chance individually. The IMPACT board has monthly conference calls and holds four meetings a year. They also hold two membership meetings per year. The membership meetings offer networking opportunities as well as seminars on topics, such as Increasing Customers Business, Removing Cost from Distribution, Business Building,


www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 43


Time Management, Marketing and Sales. Their next member meeting will be held October 29-30 in Las Vegas just before SEMA. IMPACT is selective about who is permitted to join the organization as they allow no competition within the group, a concept that lends to members’ willingness to collaborate on solving problems they face in the industry. Those interested in joining RDA/IMPACT should contact Executive Director Robert E. McKenzie, Jr. directly at 731-217-9081 or via email at robertemckenzie@me.com. IMPACT continues to seek new members that share a common desire to improve their business and work collaboratively within the group to address national industry issues. McKenzie expects to see additional growth within the group during the last quarter of 2012 and into 2013 because “we have some exciting things happening to assist members with growing their business.” Besides the addition of new marketing programs, IMPACT is currently in the process of creating a more effective website which they hope to have published in September or October 2012. The URL address is www.impactcollisionsolutions.com.

Metro Paint Supplies, Inc. out of McHenry, IL is a founding member of RDA and has been with the organization since their inception in October 2008. Robert Beyer specified that they were intrigued by the idea of “like-minded businesses sharing thoughts and ideas to become better distributors and compete nationally since there is strength in numbers… Involvement with RDA provides the ability to compete with others.” Metro Paint Supplies, Inc. especially enjoys the opportunity to compare challenges with other members to find a group solution to industry problems. Automotive Color and Supply Corporation of Fort Wayne, IN became involved with RDA in May 2011 when Robert McKenzie and several other RDA members explained RDA’s strategy, objectives and benefits to owner Josh Byers. He was attracted to the fact that RDA is an actual corporation, not just an industry association as he believes this “ties the membershareholders’ business strategies and RDA’s objectives closer together than other industry associations or groups… This, of course, results in greater cooperation and synergies within RDA itself. Although we are all equal shareholders together in the RDA corporation, that in no way compromises each distributor’s ability to manage and control their own individual organizations. The mix of becoming a member-owner in RDA where we could develop common strategies, goal and objectives to improve each of our businesses, while at the same time not having to sacrifice management of ACS was very appealing.” Josh Byers feels involvement with RDA is important because ACS’s future success requires having “the knowledge,

information and capacity that enables us to adapt to future changes in economics, business conditions, and the everchanging needs of our customers. That is a difficult thing to do if you are a small or medium-sized business with limited resources. RDA enables other like-minded distributors in the same circumstance to come together and create strategies and platforms that will position each individual distributor within RDA at the top of their respective markets.” Like other members, Josh enjoys the collaboration with his peers to solve problems. “I think it is probably true that each of us learns something from the other when we are together and share information.” Cost-savings to his business and to his customers, as well as the ability to offer national programs that would otherwise be unattainable as an individual business is another RDA benefit that he appreciates. Still, Byers believes “the greatest benefits of being involved with RDA have not yet been realized. We have extraordinary potential!” Jim Volpe, President of Autobody Supply Co., Inc. in Columbus, OH, joined RDA in December 2011 because “the opportunity to join an assembly of some of the best minds in the industry was hard to pass up.” He believes the benefits of being involved with RDA are sharing ideas and learning from other members, the group’s ability develop programs for their customers and the buying power of the group. Being involved with RDA is important because “as an organization, RDA has the ability to impact the industry with programs and products that would be difficult to do individually. A group with a single, unified focus has to be the best, most efficient approach to dealing with the industry’s problems.”

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WISCONSIN

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Continued from Page 38

Michigan’s Three

dustry in northern Michigan through educational programs and events. They also decided to sponsor a “Body Shop Rally” to identify regional interest in the formation of an association. When rally attendance exceeded expectations, the NMBSA formed in October 2008. In addition to Allor, the board includes President Dave Kolasa, Kolasa Kustoms, Onaway; Vice-President Dan Robinson, Mancelona Auto Body, Mancelona; and Treasurer Steve Plowman, Plowman’s Auto Body, Alpena. Elections are held yearly at the annual meeting on the second Tuesday of October for one-third of the board. The NMBSA has provided both educational programs and social events. These include presentations by industry officials, such as attorney Andrew Rodenhouse, Mike Anderson (CollisionAdvice.com) and attorney Erika Eversman in addition to trade shows in 2011 and 2012; annual Body Shop Rallys since 2008; general informational meetings (for example, waterborne paints, independent ap-

praisal representative, vendor presentations); a newsletter; and working with state representatives on legislation. As yet, the NMBSA does not retain a legislative lobbyist. “The association keeps shops together not as enemies but as friends keeping a common goal in perspective,” says Steve Whittaker, a member who started Lake Area Collision, Walloon Lake, in 1985. “They do a great job of keeping us informed of current industry issues, have scheduled trade shows to check out new products to the industry that may save us time and money and bring in informative guest speakers that help with not only current collision industry standards but show us ways to do things better to help try to increase our net profit.” Michael R. Kime, owner of Kime Collision Corp., Standish, for 38 years, adds: “It is a great association that gives me a perspective of what can be done by friends willing to help anyone who needs them. They offer meetings and training that are second to none to the northern Michigan area; these benefit anyone who is willing to get involved. We can stand together or fall alone.” All three associations share focal

points, such as the pilot State Farm PartsTrader program. For the NMBSA, other issues include the insureds’ “cashing out” with an insurance carrier; third-party claim reviews; lack of clarity as to who the customer is — the owner or the insurance company?; unlicensed shops; OEM guidelines stipulating repair procedures/methods/guidelines and insurance companies quite often refusing to abide by these guidelines; and disregard of P-Pages by insurance adjustors, independent appraisers and/or insurance companies. For the WMBA, compliance with recent EPA mandates is a priority. Says Attorney Andrew Rodenhouse, grandson of the association founder, Diane’s son and a member: “One of the biggest concerns for shop owners in West Michigan is the increased cost of compliance with federal, state, and local laws. The NESHAP/6H rule implemented last year, as well as other environmental and labor laws, has added huge costs to each shop in order to be compliant — or the shop may face sharp civil and possible criminal penalties. We are working with these shops and their vendors to try to provide low-cost compliance solutions.”

Continued from Page 36

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Continued from Page 20

MI PartsTrader

ployees. Rodenhouse says she has five guys who work at her shop, and between them, they have nine children that need to be fed, in addition to house payments that need to be made. The other frustration she voices is how much PartsTrader will make at the expense of body shops. “PartsTrader will be making money and saving the insurance companies money," says Rodenhouse. “I just want PartsTrader to answer this question: Show me, just don't tell me, how this program is a "win win" for the body shops? Answer this question and I will be supportive of this program.”

Sue Allor, secretary of the board of trustees for Northern Michigan Body Shop Association, and employee of Tri-Rivers Collision, says the association hasn’t yet taken an official stance, but speaking personally, she says her objection is that an outside entity (State Farm), in conjunction with a vendor of their choosing (PartsTrader), is “attempting to further influence the business operations of collision repair facilities nationwide. These businesses are not owned by State Farm, and yet, through past directives, issuance of policies and procedures within State Farm (without much consideration to the repair facility), and ‘effective training’ of their claims adjustors in the ‘art of consumer manipulation,’

State Farm and other insurers continue to have a negative impact on the financial well-being of repair facilities. And, unfortunately, if State Farm has its way, it will soon have negative consequences to the bottom line of many of the existing parts vendors,” Allor says. She adds, “The control of a repair facility by an insurer in fact does exist and is blatant control of the business operations and financial condition of a business that typically is an independent repair facility. Although State Farm currently indicates with regard to PartsTrader that ‘a shop can continue to purchase through its vendor of choice,’ my fear is that more controls are on the way, and repair facilities will, in effect, become ‘employees’ of

ABRA Auto Body & Glass Enters State of Michigan

ABRA Auto Body & Glass, a leading national vehicle repair company, announced the opening of its 44th franchise repair center and the first in the state of Michigan. The latest opening is part of the company’s overall plan to accelerate national growth over the next five years and increases the number of franchise and corporate repair centers

to a total of 126 in 14 states. The new ABRA repair center is located at 2090 28th Street S.E. in Grand Rapids, MI, and is independently owned by Pablo Rodriguez, previous owner of Extreme Auto Body. “We are excited to expand ABRA’s national footprint in the Midwest and venture into the great state of Michigan,” said President and Chief Executive Officer with our Genuine Ford Parts When it comes to Ford Genuine Wh Whe W Parts, go with a winning team. Pa Use Genuine Ford Parts for your customers late model Ford, Lincoln and Mercury vehicles.

Duane Rouse. “This is a tremendous opportunity and is part of our strategy to accelerate ABRA’s growth in the months and years ahead.” Tim Adelmann, ABRA’s Executive Vice President of Business Development said, “We have a lot of growth momentum and opening this franchise in Michigan is a great opportunity to expand ABRA.”

the insurance companies, and profit margins will again be reduced.” Like others in the collision repair industry, Allor stresses that the playing field isn’t level. “The relationship that exists in this wonderful world of collison repair between the insured, insurer and repair facility is a relationship that allows insurers to always come out on top, plain and simple,” she says. And, like other associations nationwide, the NMBSA isn’t hearing anything positive about the pilot program from their members. “I have not heard anything positive about the PartsTrader/State Farm issue,” Allor says. “There is a great deal of frustration, confusion, anger and resentment expressed by many.”

ABRA Opens Another in NC

ABRA Auto Body and Glass has announced the opening of a new shop location at Asheville Ford in West Central North Carolina. The location brings the company’s total franchise repair centers to 43. “We are absolutely thrilled with the progression of our national growth plan,” said Duane Rouse, president and CEO of ABRA Auto Body and Glass.

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www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 47


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

Industry Insight

Information Providers Assure They Have Privacy Issues Handled with John Yoswick

One by one this past spring, a panel of Repair Specialists (SCRS), said back repairers at the Collision Industry Conin April that CCC was the first to proference (CIC) vide a formal response to the associavoiced contions' request. with Edtheir Attanasio cerns about the pri“The response addressed that they vacy of their have a mutual concern in protection of shop’s estimating data, but didn't really address the and other data, and questions that we'd asked relative to expressed a desire an opt-out policy or discontinuation of to “opt out” of havcollecting the data," Schulenburg said. Aaron Schulenburg ing that comMitchell’s response came in late with Ed data Attanasio piled and reported on by the Big Three April, Schulenburg reported at an information providers. SCRS board meeting held in July. But Audatex, CCC Information “Their response basically indiService and Mitchell International cated that Mitchell continues to behave now responded to that concern lieve that it’s in the best interest of the by essentially saying it’s not some- collision repair industry, insurers and thing shops need to be concerned the motoring public (for Mitchell to) about. continue to provide aggregated, The formal responses came in a anonymous data as a critical business somewhat delayed fashion to a formal tool for the industry,” Schulenburg question posed to them in January by said. three national repairer groups. He said Mitchell’s response indiAaron Schulenburg, executive cated that it does not supply statistics director of the Society of Collision or data in a form in which a single

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shop’s data could be identified, and does not provide profitability information or detailed data from shops to outside parties. “So their response was essentially that they believe their current process are good for the industry and that there is no threat,” Schulenburg said. “I think there are a lot of repairers that we represent who feel otherwise in the way their data is presented and as it comes back to them in reports and things along those lines.” The response from Audatex, Schulenburg said, arrived in mid July. “The response essentially indicates that uploading the data to Audatex is a choice that the repairer makes,” Schulenburg said. “The Audatex master agreement makes provision for the use of data that is provided to Audatex by insurers, repairers and independent appraisers for the purposes specified in the agreement…(and that) Audatex is commit-

ted to protecting personal data and information, using aggregated data only that reflects estimate content after stripping out client information.” Schulenburg said SCRS will now discuss how to proceed with the other associations (the Automotive Service Association and the Alliance of Automotive Service Providers) that sent the request in January. “It’s a little confusing why it would take such a lengthy amount of time to receive those responses,” Schulenburg said, “But at least six months later we have answers to what we felt was a pretty simple question about their current practices.” Also at the SCRS board meeting in July, held in San Antonio, TX, Schulenburg said State Farm’s mandated use of an online parts ordering system is generating increased communication and involvement among collision repairers, which, he said, is actually See Privacy Issues, Page 51

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Registration Up for Repairer Driven Education at SEMA

The Society of Collision Repair Specialists (SCRS) has announced that registration for the Repairer Driven Education (RDE) series at the 2012 SEMA Show is up nearly 300 percent year-to-date over last year. “The first two years of the RDE program brought a lot of very positive response from the attendees, and we believe that the numbers clearly indicate that our program at the SEMA Show is delivering exactly what the industry is looking for right now,” said SCRS Chairman Aaron Clark. “We’ve worked hard to put together a program that specifically addresses solutions to existing business conditions.” SCRS also reports an uptick in the number of MSOs and international automotive businesses participating in RDE. International repairers currently signed up for the 2012 RDE represent more than a dozen different countries. SCRS believes that the growth in both of these types of participants reflects the universal relevance of the issues addressed in the RDE sessions and the benefit the information holds for collision businesses regardless of location, business model or size.

Florida Shop Increases Labor Rate 12.5%, Most Insurers Object, Then Pay

Ray Gunder, founder of Gunder’s Auto Center, Inc., which has served Lakeland, FL and its surrounding communities for over 44 years, determined the current labor rates which were being offered by insurers were insufficient to sustain profitability and continued growth. Upon determining the true cost of operations, in June, 2012, the decision was made by insurers to increase the standard door labor rate from their previously posted rate of $42.00 to $48.00 per labor hour, a12.5% increase. Ray Gunder stated, “It had been almost six years since rates had moved, driving our net profit into a danger zone. Our business and our techs struggling financially left me with no options. Every insurance employee I talked with certainly hadn’t missed their cost of living raises. If repairers sit around and wait for a handout - that’ll be what they will likely get - a hand-out. I felt that for my company and its team members to keep up with the rising costs of living and for us to keep abreast of ever-increasing operational costs, raising our labor rates was necessary. We needed to take actions and we did.” Gunder’s new rates were posted in their reception area and each claims

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person and appraiser who Gunder’s dealt with were informed of the new rates. This increase, which Gunder considered minimum, was considered by many insurers to be substantial and was met with anticipated resistance, however, most know of Ray’s lack of hesitation to “pull the trigger” and to act on behalf of his customers in asserting their rights for “fair and acceptable” compensation for “reasonable and necessary” repair costs. Many insurance companies made their concerns and objections known but elected to pay the rate. Those insurers include: MetLife, Kemper Services, Westfield Comp., Auto Owners, Acceptance Casualty, Liberty Mutual, Amica Mutual, Horace Mann, The Hartford and Direct General. And others, not so agreeable, include: USAA, GEICO, State Farm, Allstate, Infinity and Travelers. Thus far, the above insurers have yet to pay Gunder’s customers’ labor rate willingly. As such, Gunder’s has had to take the appropriate action to enable their customers to receive their entitlements necessary to allow them to get a thorough and quality repair and has proceeded to file lawsuits on behalf of their customers.

“To date, two of these insurers have asked our attorney what his charges are to date, perhaps with the thought of conceding, paying our rates, and avoiding protracted litigation. With regard to the others, we have filed for discovery and scheduled depositions with their claims people and I am anxious to see what we find as it will no doubt lead to other issues to be used in future actions - if and when they should be required,” Ray said. “I am sure all insurers are concerned with having to pay other shops in the area if they pay Gunder’s, but I have to say that I am stunned at how far we have come in getting fair and reasonable compensation for things like PMC-Logic material invoicing, mark-up on sublet, parts return fees and many other reasonable and necessary charges and have consistently heard that other local repairers don’t request such compensation, even though they know Gunder’s is getting paid for them. I’ve had appraisers tell me…’Ray, I’d pay it if asked…but very few even ask!’ “As for me, I’m not looking to fix the world, I just want to fix my customer’s cars properly, pay my techs fairly for their efforts and provide for my family,” Gunder said.

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www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 49


On Creative Marketing

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

Conversations That Sell Jobs, No Need to Mention Entropy with Thomas Franklin

Remember when you last drove a this very upsetting time. This could brand new car? Think back and re- make a sales conversation very diffimember how wonderfully solid it cult or it could make getting the job felt. If you’ve ever driven an old car very easy. A while back I did several that rattled and squeaked and made weeks of sales training for estimators all sorts of random noises, you could at a chain of collision centers. A coureally appreciate that new car. It had ple of the estimators were already not yet yielded to the relentless at- very competent, closing the majority tack of the forces of entropy, one of of jobs they estimated. They instincwith Dick Strom the most powerful forces in the uni- tively used what something called verse. dissipative conversation. No, entropy is not a new disease The forces of entropy affect us of the colon. Entropy is usually all. We all experience friction and thought of as the natural tendency for wear and tear, and in the long run, things to be come disordered over we also run down and stop working. time. Like your shop. Without work But, in the short term, we have a done to clean it up it tends to get powerful advantage over machines, messier on its own, right? Entropy is and a more cheerful prospect thanks a concept that affects everything to the work of Nobel laureate Ilya from loose parts to information. Prigogine, a Russian-born Belgian The formal scientific definition theoretical chemist. Prigogine rewith Amaradio Jr. his Nobel Prize in the 1970’s of entropy is first “a Lee measure of a ceived system’s capacity to undergo sponta- for proving that increased order in neous change” and second, “a meas- nature and evolutionary progress ure of the disorder or randomness in come about because of the entropy a system.” of chaos and disorder—not despite The second law of thermodyit. Prigogine said we have an advannamics dictates that eventually every tage because the open systems of machine will wear out and quit work- living creatures have an ability that ing. As parts wear, the movement be- inanimate machines lack. That is the comes more and more random and ability to dissipate the pressures that disorderly until the machine stops al- cause entropy. He noted that this together. For our fellow craftsmen in second law of thermodynamics apLoftusplies only to closed thermodynamic the mechanical with repair Sheila field, entropy is their best friend, providing them systems, where no energy enters or with a continuous flow of vehicles in exits the system. In an open system, need of repair. like that of human beings—and the But how does this apply to peo- earth itself with its energy input ple and sales? The forces of entropy from the sun—are able to dissipate bombard us everyday. We have up- or throw off the forces of entropy sets, disagreements, and sometimes, and thus adjust, shift, change and, in even fights. These entropic forces the case of a traumatic experience often bring disorder to our lives. And like an accident, feel much better. perhaps one of the most unsettling We can think of this as energy input experiences a person can have is an to overcome disorder. Like the work automobile accident that interrupts you do to clean up your shop, for exhis or her life and, at least temporarample. with Janet Chaney ily, takes away the valued method of To take another example, we distransportation they rely on every day. sipate anger and frustration by ventAn estimator generally meets and ing it— “letting off steam” —kicking talks to the vehicle owner or driver at the wall, banging our shoe on the

Opinions Count

Action Counts

table—or perhaps meditating. We dissipate frictions by conflict resolution discussions, negotiations, agreements, and occasionally smacking an opponent in the jaw. But if given an opportunity, we can release negative emotions through dissipative conversation. The estimators who closed the most jobs used dissipative conversation. Apparently, a major flaw in many sales people is a tendency to talk endlessly and listen very little. These estimators did exactly the opposite. They encouraged what we might call verbal “image streaming,” allowing their prospect to speak without interruption to a natural stopping point. In conversation, we are often eager to have our say, and will interject a comment or take the conversation in a different direction if we lose interest in what the other person is saying. This is detrimental to the dissipation process. Let ‘em talk. Their accident was a highly traumatic

Your Turn

Shop Showcase

Give us your opinion on matters affecting the industry.

write us!

Industry Overview publisher@autobodynews.com with Janet Chaney

50 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

experience and may call for a lengthy conversation to dissipate the stress. A busy estimator may have several estimates to write and people to talk to. While there is a limit to how much time can be given to any one prospect, the estimators I talked to said they could listen to their prospect until a calm point was reached, without harming their own efficiency. The important point is the fact that these prospects being given the opportunity to release some emotional pressure usually did leave their car and their keys with the listening estimator. I’m sure that most managers and estimators reading this article have listened to more than their fair share of accident stories, but it’s not easy to resist the urge to cut the story short and to move on to getting the job sold. The question to ask oneself is, “If I had listened a bit more, would my closing ratio be better today?” It’s worth a try.

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Continued from Page 48

Privacy Issues

leading to the formation of some new state and regional associations. “We’re seeing new groups pop up in Utah, Idaho, Alabama and even in Texas,” Schulenburg said, “I spoke with the folks in Idaho the other day, and this was the first time in 11 years that they’ve had an association meeting in the state, so it is wonderful to see.” He said the Idaho meeting attracted about 50 shops, which is especially significant given the fact that there are fewer than 300 shops in the state. Schulenburg said just as state associations help shops understand they are not alone, he said SCRS brings that message to those state associations as well. He said he thought of that when he was in Sydney, Australia, this June, as one of several SCRS representatives speaking at a repairer conference in that country. “It was fascinating to me to travel 10,000 miles and 20-plus hours and have the exact same discussions that we have here in a country half a world away,” Schulenburg said. “Shops there

face the same pressures, the same level of friction, the same level of disrespect shown toward our trade.” He said the shop response there, however, tends to be more direct, including rallies and pickets against insurers viewed as making unacceptable demands. Even shops on an insurer’s direct repair program didn’t hold back in letting that insurer, if represented at the conference, know how they felt. “They were very upfront, very direct and very pointed with the questions and comments they had for the carriers,” Schulenburg said. “It was very different than I think some of the types of discussions that repairers in the U.S. attempt to have here, such as at CIC, where I think there’s an ongoing sensitivity that if we’re straightforward and direct and pointed with what we say, the insurers won’t come any more. There’s concern by some people in that room that you need a more sensitive or politically correct approach to the message to ensure that everyone continues to show up. While the rallies and pickets may not suit the U.S., I think the direct nature of the conversation certainly should. Conversation isn’t worth having unless it’s honest, genuine and direct. If people

don’t want to hear what you have to say, there’s no sense in having them in the room anyway.” In one piece of SCRS association business, Schulenburg also announced that board member Stephen Regan had submitted a letter of resignation to the board. Regan, a political and communications consultant who has worked with the Massachusetts Auto Body Association (MABA) and who joined the SCRS board in 2008, said a change in his employment would limit his ability to attend future SCRS board meetings. Schulenburg said that SCRS Chairman Aaron Clark will appoint a replacement this fall for Regan, whose term was to expire in April of 2015. “We’ll certainly miss Steve Regans’ contributions,” Schulenburg said. “He’s been a great asset to the board for a great many years.”

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 4week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.

I-CAR Announces Training Schedule at ASRW

Automotive Service & Repair Week (ASRW) announced that I-CAR has released its training schedule for this year’s event and will provide 11 training classes Oct. 10-12 at the Morial Convention Center in New Orleans, LA. Each instructor-led (live) class will be four hours in duration. I-CAR returns to the event this year with some of its newest training, such as the premiere of its Blueprinting Process and Damage Discovery (BLU01) course. During this “livedemo” course, students will learn how blueprinting can lead to more accurate damage assessments and gain insights into applying the blueprinting process in their own shop environments. The live-demo will include the disassembly of a vehicle and steps to discover hidden damage. The blueprinting course will take place Thursday, Oct. 11, and Friday, Oct. 12, from 10 a.m. – 3 p.m. on the ASRW show floor and will have a maximum of 15 students per session. “Offering I-CAR training courses at ASRW is a huge valueadd to attendees, and we’re pleased to once again partner with them in this capacity,” said Ron Pyle, ASA president.

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Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Sale of Estimate Data Isn’t New and Shops Don’t Own That Data with The Insurance Insider

Have you sold your soul to the devil? portunities to sue and cash in. It’s just I’m here to tell you that if you have a not worth taking the risk. computerized estimating system, and So what is being sold? The estiwith Chasidywith Rae mating Sisk data itself. Why? It’s data that you electronically communicate an insurance company, you have. insurance companies rely upon to You signed away your rights when make decisions, identify trends, manyou executed the contract to pay the age their business and in some ininformation providers a monthly substances, establish market guidelines. scription fee. What doeswith that Chasidy Rae Sisk mean to your business? Estimating data generated by your shop for a direct repair program and electronically sent to that insurance carrier is now useable by the information provider. Of course it’s an instant revenue stream for that company as well. Every day thousands of new estimates are added to their extensive data library. Think this is shocking? How could they do this? Is this legal? News flash: This has been going on for more This data is critical to managing the than 20 years. The collision repair ininsurance business and has significant dustry, now worrying about data minmonetary value. ing and privacy, is just a little slow So, you may ask, if the informato this Southwest Edition? getting to the party. But welcome to tion providers are making money on the party. You are the guests of honor. estimate data from my shop, why Just sign on the dotted line. isn’t someone paying me? It’s a reaFormer U.S. President Franklin sonable question. autobodynews.com Delano Roosevelt famously stated, Personally, I think if shops were “The only thing we have to fear is fear paid for the use of the data, the peritself.” He wanted to spur optimism in sistent question of “Who owns the nessthewith Promote yourdobusiness with would disappear. The fear American public. So: What you data?” fear? would be reduced to squabbling over featuring an exclusive article featuring I actually think Roosevelt or wasservices. the table scraps the information services. your products right and it’s fear itself. Most shops providers left behind. aren’t worried about the information Remember Cuba Gooding Jr. providers selling confidential informarepeatedly shouting, “Show me the tion such as their customer’s name, admoney” in the movie Jerry Maguire? dress or phone number. Most reputable So, or details! Call for details! to our esteemed information vendors have contractual language statproviders reading this article: Show 251 800-699-8251 ing that that’s protected information. the shops the money and you will Aside from that, in today’s litigious soquickly hear “Where do I sign?” ciety, people are always seeking opGiven that this practice has been

Northeast News Shop Showcase

going on for over two decades, why hasn’t it been established who owns the data? I’ve read many articles on the subject, none of which answers the question. Unfortunately, I won’t be able to provide an answer either. Until there is a precedent set with case law on this matter, it will be a subject to debate. I am, however, going to venture a guess and tell you that you don’t own the data, and to think otherwise is delusional. You wrote an estimate on behalf of the insurance company. Here’s what you do own on that estimate.At the top of the estimate is the name of your business. You legally own the rights to the name of your company. That’s it. Does the estimate data belong to the vehicle owner? Absolutely not. The vehicle owner owns the right to their confidential information on the estimate (insurance policy number, address and phone number). Shops should be protecting the customer’s data (and themselves) by having an agreement in place

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with their vendors to ensure data is not shared without their written consent. Does the information provider own the estimating data? In a word, ‘no.’ They don’t own anything other than the rights to aggregate the data contained in the estimate specific to the actual repair of the vehicle. That’s data that you signed over to the devil when you signed your agreement with that company. Does the insurance company own it? In my not-so-humble view, ‘yes’ we do. Out of all the potential parties, the carrier is the most logical owner. By virtue of our direct repair program contracts, we have an agreement with a vendor (body shop) to produce an estimate to repair the vehicle. You agreed to participate in the direct repair program. You agreed to create an estimate and upload it. In return, you are referred to our policyholders as an option. We directly or indirectly paid for the service. In other words, we own it.


Research, Documentation is Ammunition in Battles with Insurers by John Yoswick

John Borek didn’t just acquiesce to putting reconditioned wheels—which he had serious concerns about—on his customers’ cars when that’s what insurers insisted on. Instead he found a way to determine and demonstrate whether those wheels were fit to be used. That’s a pattern that Borek, owner of Autocraft Bodywerks in Austin, TX, has demonstrated over and over again: Gathering the information he needs to successfully prove his argument. “I never imagined when I started in this business that I would have to be more of a lawyer and use my brain rather than use my hands,” Borek said. “But if you don’t, you can’t fix the car correctly and get paid for doing so.” When it came to the reconditioned wheels, for example, Borek’s shop invested in a Hunter Engineering Road Force GSP-9700 machine. More than just a tire balancer, the equipment measures the wheel inside and out, identifying high and low spots. When an insurer insisted on a reconditioned wheel and a customer signed off on it, Borek said, they tested the wheel to

Holy Custom Car!

If there’s any one vehicle that catches your eye inside Autocraft Bodywerks, it’s the C4 Corvette converted into one of the best-known vehicles of all-time—The Batmobile, complete with “real-sounding” front-mounted machine guns.

Shop owner John Borek said the project is something he will use to help raise awareness and funds for “Superhero Kids,” a non-profit to assist children (and their families) battling cancer and blood disorders at the Children’s Blood and Cancer Center of Central Texas. Borek was one of about 40 members of his Corvette club that this summer gave kids battling cancer a chance tC 2011

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to ride in a Viper, Lexus LFA or other high-end vehicle on a 30-mile police-escorted cruise in Central Texas. “There must’ve been 20 motorcycle cops from three different agencies, all volunteering, that shut down I-35 and then Congress Avenue through Austin for us,” Borek said. “We got to blow through every red light.” Borek said he’d actually rather have people focus on such projects than his success using tools to prove that his collision repair charges are reasonable. “I would like people to know there’s people in the industry who do good things and help people,” he said. The Batmobile isn’t the first imaginative vehicle Borek has created at his shop. Last year, he constructed a flying saucer to install in his front yard on Halloween. The flying saucer looked like it had just crashed into lawn, surrounded by yellow caution tape and smoke, thanks to an interior fog machine. “You gotta have some fun,” Borek said. “If you just work all the time, you’ll just go crazy and have a heart attack.” (The original TV Batmobile was designed and built by George Barris based on a Lincoln Futura.)

determine if it was bent. “You can balance a wheel that’s crooked, but just because it’s balanced doesn’t mean it’s going to be true,” Borek said. “This machine helps us avoid using reconditioned wheels that are out of round.” Borek acknowledges that payback on the equipment is not necessarily quick. “But even if we never get our money back, it helps us do the right thing,” he said. Another way Borek has fought successfully for what he knows is right hasn’t cost him a dime. He’s frequently turned for free help offered through the Database Enhancement Gateway (DEG). Funded largely by three national repairer associations, the DEG offers a simple way to submit an inquiry to any of the Big Three estimating database providers. Several years ago, for example, Borek took a class taught by consultant Mike Anderson of CollisionAdvice in which Anderson pointed out that labor times to paint a quarter panel are only for painting the outside the panel. Grinding of pinchwelds and the welding of the new quarter panel make painting of the underside necessary as well.

“You can get another hour or two to paint the backside, and it’s got to be painted,” Borek said. That concept came to his mind shortly thereafter when his shop was installing a floor in a 2009 Honda Accord, and the insurance appraiser refused to pay for painting both the top and bottom of the floor pan. “There’s paint on both sides, and you have to put the vehicle on a lift to paint the underside,” Borek said. “And not only that, it was a different color, a green e-coat.” He submitted DEG Inquiry No. 1787, and received confirmation from Audatex that its paint labor allowance is for only the interior surface of the floor pan. “I basically said to the adjuster, ‘Which side of the floor do you want me to paint because you’re only paying me to do one side,’” Borek said. The documentation supplied through the DEG was enough to convince the insurer to pay for the additional paint labor, two-tone materials and the needed replacement sounddeadener. “So that’s an example of something we got paid for by using the See Battles with Insurers, Page 55

www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 53


Continued from Cover

IABA Survey

4) Do you believe the vehicle owner will benefit from using the PartsTrader program?

Yes

0%

No

100%

5) Do you believe the PartsTrader

program will improve the OEM parts distribution process? Yes

0.7%

No

99.3%

6) Would you use the PartsTrader program if you had a choice to do so?

Yes

2.1%

No

97.9%

7) Do you believe State Farm is attempting to require the usage of this program because of efficiency or just their profits?

Efficiency 0%

Their Profits

100%

81.9% of the shops responding to the survey had been in business for 15 or more years. There are extensive comments on the survey available at the IABA web-

site: www.iaba.info. To contact IABA: President Mike Hartman, Hartman Auto Body, (260) 837-2802 1st Vice President John Idzik John’s CarStar, (219) 322-1841 2nd Vice President Debbie Moore Diamond Collision, (317) 272-6820 Secretary/Treasurer Lora Hackleman-Ehrenberg, Hackleman Auto (317) 272-2225 Executive Director Tony Passwater AEII, (317) 290-0611 Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!

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54 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com


Continued from Page 53

Battles with Insurers

DEG,” Borek said. Borek said he’s used the Audatex system long enough that he usually knows the answer to the question he submits to the DEG, but the process provides the authoritative documentation he needs to prove his point. More recently, for example, Borek received a document that American National Property and Casualty Company (ANPAC) that the claims services company said was from Audatex and indicating that color sand and buff is included in Audatex refinish times. Borek knew this wasn’t the case and submitted it to the DEG. Within 24 hours, not only had Audatex responded that its labor times did not include color sand and buff, but also that it had searched its reference manual back to 1993 and could not find the document that ANPAC was using to defend its position. “Color sand and buff has been a pet-peeve of mine since 1998, and I know it’s not included in any paint time,” Borek said. “But how many shops are being sent incorrect infor-

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mation about things like this and not knowing any better?” ANPAC later told the Texas Department of Insurance that the appraiser used “an outdated document.” Borek still contends the document was “fraudulent” given that Audatex concluded that the document is “most certainly not from ADP/Audatex.” “But in any case, those are just two examples where the DEG helped us. And very quickly, I might add,” Borek said. “I think the reason some people don’t use it is they think it might only help on the next one, and when am I going to have that exact same vehicle and procedure in my shop? But it can help you right now if you just send it in. It doesn’t cost anything, and you can sometimes have a response in 24 hours. And once you’ve done the research, you always have it. We still get paid for painting both sides of those floors.”

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.

Nebraska Auto Body Association Opposes State Farm’s Pilot Parts Procurement Program The Nebraska Auto Body Association (NABA) announced its opposition to State Farm Insurance’s parts procurement system through PartsTrader. The announcement comes on the heels of other organizations that also recently denounced the program, including the Alliance of Automotive Service Providers (AASP) of Illinois and AASP of New Jersey. The NABA cautions collision repair shops to consider PartsTrader’s potential business impacts, such as additional administrative times and costs. Norbert Zaenglein, director of the NABA, said all U.S. states have ineffective regulations for market conduct, which gives insurers free rein over the collision industry. He said state regulation of insurers’ claims settlement practices is seriously compromised, and the catalyst for several foundational problems faced by repairers. “Lack of regulatory oversight allows insurers to take more and more control over the collision repair industry from influencing estimating databases, manipulating labor rates and controlling the repair process. Repairers who believe that this will

be the final encroachment into their business are seriously mistaken. The squeeze by insurers will be relentless, and claimants will pay the price in terms of repairs that do not restore the vehicle as promised under the policy of insurance,” Zaenglein said. “Without adequate regulation of the insurance industry, it is up to shops to stand up to intrusive mandates by the insurance industry and get actively involved in fixing a very broken insurance regulatory process.” State Farm launched its pilot program through PartsTrader earlier this year. The program requires shops affiliated with State Farm’s Select Service direct repair network to source parts from vendors through a Web-based process facilitated by PartsTrader. Repairers submit parts orders through the system and vendors bid for the sale. State Farm has said the process should improve part availability, process efficiency, order accuracy and create a better experience for customers.

www.autobodynews.com CHECK IT OUT!

PARTS ACT Heard in House of Representatives The House Judiciary Intellectual Property Subcommittee heard testimony on Aug. 1 regarding the Promoting Automotive Repair Trade and Sales (PARTS) Act, which is carried by California Reps Darrell Issa (R) and Zoe Lofgren (D). H.R. 3889 is designed to significantly reduce the time allowed to carmakers for design patent protection on collision parts from 14 years to just 2.5 years. “Competition is the hallmark of our free market system,” Issa said. “For decades Americans have been used to having choice when it comes to the component parts that they use to repair their vehicles after an automobile accident. My bill ensures that this choice will remain intact.” Issa is himself the holder of some dozen automotive patents, largely related to his family’s car alarm business. “The PARTS Act is intended only to deal with auto collision repair [parts]. In recent years, auto companies have been increasingly seeking design patents on these parts which creates a 14 year window of exclusiv-

ity. The PARTS Act does not deal with interior parts, the engine, transmission or undercarriage, parts covered by utility patents,” Rep. Issa said. “This difference is important because utility patents are generally what we associate with the invention or discovery of a new and useful process or machine. Design patents, on the other hand, are generally granted to those who invent a new, original and ornamental design for an item, the underlying invention is not new, only its appearance,” Issa added. Insurers generally support the measure. W. Neal Menefee, President and CEO of Rockingham Group, testified on behalf of National Association of Mutual Insurance Companies (NAMIC), the Property Casualty Insurers Association of America (PCI), and the Quality Parts Coalition (QPC), a group supported by aftermarket parts manufacturers and suppliers. “Consumers benefit from the lower costs created by the competition of alternative suppliers of collision re-

pair parts,” said Menefee. “However, some car companies appear to have To advertise formulated a new business strategy call Advertising Sales at: to eliminate competition and expand 800-699-8251 their already dominant share of the e-mail:14-year design market by obtaining advertising@autobodynews.com patents on their collision parts and enforcing them against alternative supwww.autobodynews.com pliers.” “At its core, this is a consumer issue; the costs of auto body repair are borne by consumers, either reflected in their insurance costs, or directly See the N when they pay for repairs themselves,” said Menefee. Kelly K. Burris, a patent attorwww.autobodyn ney and adjunct professor of intellectual property law at Thomas M. Cooley Law School testified against the measure. “From a practical perspective, the proposed legislation will not accomplish its objective because I think most consumers can agree that there To advertise is serious doubtHartman that our insurance call Sean at: premiums will actually be reduced,” 800-699-8251 Burris testified. To read ae-mail: more detailed version shartman@autobodynews.com of this story, go to autobodynews.com.

Autobody New

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www.autobodynews.com | SEPTEMBER 2012 AUTOBODY NEWS 55


56 SEPTEMBER 2012 AUTOBODY NEWS | www.autobodynews.com


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