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State Farm & PartsTrader Meet with Industry As Program Rolls Out in the Southwest by John Yoswick
Shop and vendor concern and unhappiness about State Farm’s mandated use of PartsTrader was evident at a packed Automotive Service Association (ASA) of Arizona meeting in Phoenix in August, the same week the program was being rolled out in that David Priest market. We feel you’re using your size and intruding into our business through the
shops with PartsTrader,” David Priest, parts director for Brown & Brown Chevrolet in Mesa, AZ, told State Farm’s George Avery at the meeting. “You’re asking me to pay a fee for a program that will probably decrease OEM part usage. How do you perceive that PartsTrader for an OEM dealer is an effective tool?” Dale Sailer Dale Sailer of PartsTrader, who also spoke at the See PartsTrader Rollout, Page 16
A Matrix of Parts Procurement Features Won’t Help Shops If They Have No Choice on Usage
See No Choice on Usage, Page 37
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The Collision Industry Conference (CIC) Parts & Materials Committee came to the CIC meeting in Boston in July looking for input from the assemblage for a survey it plans to conduct about electronic parts procurement systems. What it heard was an impassioned request to look at another aspect of the issue. The committee is working to produce a matrix that would help shops or other users of the systems understand the capabilities and features each system offers. At the Boston meeting, the committee shared the
questions about the systems that it plans to ask the providers, and asked CIC participants at the meeting whether the questions would Randy Stabler provide information about the systems that would be helpful. But as the committee was completing its presentation, California shop owner Randy Stabler drew applause when he told the committee that understanding the differences be-
Change Service Requested
by John Yoswick
VOL. 2 ISSUE 1 SEPTEMBER 2013
Avery v State Farm is Back in the News, as a RICO Case making the Judge the Issue A sitting Illinois Supreme Court justice, Lloyd A. Karmeier, may have been compelled to testify under oath about allegations that he voted in 2005 to overturn a $1 billion verdict against State Farm because the company secretly funded a multi-million dollar campaign to help him get elected to the state supreme court. The 2004 Illinois Supreme Court race was the most expensive campaign for a single judicial office in U.S. history. Lawyers whose plan to depose Illinois Supreme Court Justice Lloyd Karmeier became public now say they will do it later or maybe not at all. On Aug. 14, they told U.S. District Judge David Herndon that they would not rush into it if he lifts a temporary stay on discovery in their fraud and racketeering suit against State Farm.
In 1998 in the Avery v. State Farm case, the original plaintiffs won the largest verdict ever against State Farm for requiring the use of “imitation” crash parts in its auto repairs. After years of appeals, the verdict was reversed. On May 29, 2012, three plaintiffs from Avery v. State Farm filed a new class action lawsuit, claiming that the insurance company acted as the hub of an enterprise designed to defraud millions of policyholders out of a $1 billion judgment. Mark Hale, Todd Shadle and Carly Vickers Morse, all of whom live out-of-state and were class members to the unsuccessful 1997 class action suit against State Farm, brought their complaint in May in the U.S. District See Avery v State Farm Judge, Page 12
See Correction to July 2013 Article on Felder’s Collision Parts v General Motors et al. . . . . . . . . . . . . . . . . . . . . . . . .p. 3
Federal Court Refuses to Stop Auto Parts Antitrust Class Action in Michigan In one of the world’s largest antitrust price-fixing actions, a group of auto parts manufacturers continues to face claims of bid rigging and price fixing in a multidistrict litigation (“MDL”) following a Michigan federal judge’s refusal to dismiss federal antitrust claims. Direct and indirect purchasers in the putative class action of In re Automotive Parts Antitrust Litigation accuse the manufacturers of conspiring to fix the prices of wire harness systems in automobiles. The allegations track a U.S. Department of Justice (“DOJ”) investigation into the auto industry, which has already resulted in guilty pleas involving the manipulation of wire harness pricing during secret meetings. Judge Marianne Battani of the U.S. District Court of the Eastern District of Michigan dismissed indirect purchasers’ antitrust claims brought
under the state laws of Massachusetts, Missouri, and Illinois, among others. The court, however, declined to dismiss direct purchasers’ federal antitrust claims accusing defendants of creating a global conspiracy to control pricing and manipulate bidding. In an independent order, separate from the order dismissing the state claims, the court concluded that the federal antitrust allegations could survive because the direct purchasers had sufficiently informed defendants of the substance of the claims, and that the allegations provide “a reasonable expectation that discovery may reveal further evidence of an illegal agreement.” The class action complaint was sound, the court concluded, because it sufficiently identifies the products involved and the methods of communication utilized by conspiring competitors during the seSee Antitrust Price-Fixing, Page 4
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2 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Attanasio - Autobody-Review.com—Where Yelp Meets Reputation Defender . . . . . . 35 Franklin - Don’t Mess With My Marketing! . 10 Insider - Responding to Reader Feedback on Insider’s Parts and Materials Column . . 14 Yoswick - Snapshot - September Retrospective on the Collision Industry. 27
NATIONAL ‘Fax-Only’ Parts Ordering Option will End by September For Shops Using PartsTrader 2.2 . . . . . . . . . . . . . . . . . . 34 3M’s New Body Protection System Cuts Time Needed on Panels . . . . . . . . 31 A Matrix of Parts Procurement Features Won’t Help Shops If They Have No Choice on Usage . . . . . . . . . . . . . . . 1 AAPEX to Address Warehouse Distributor Management . . . . . . . . . . . . . . . . . . . . 34 American Honda Launches Body Repair News . . . . . . . . . . . . . . . . 29 ASRW Creates Free App for Event Information. . . . . . . . . . . . . . . . . 10 AUTODATA has a New Manual . . . . . . . . . 30 BMW Considering Mexico- based Assembly Plant . . . . . . . . . . . . . . . . . . 22 BMW i8 Series will be first to use Corning’s Gorilla Glass . . . . . . . . . . . . 22 BMW to Recall 1,500 09-10 X5s for Fuel Filter Heaters . . . . . . . . . . . . . . . . 23 Body Shop Improvements May Earn Image Award . . . . . . . . . . . . . . . . . . . . 24 Charging System Maker Says it May File Bankruptcy . . . . . . . . . . . . . . . . . . 24 Chief Expands its 3rd Qtr Training Schedule . 19 Chrysler and Ford to Exhibit at 2013 ASRW Rotunda . . . . . . . . . . . . . . . . . . 22 CIC Committee Deletes Reference to “Class A” Shop . . . . . . . . . . . . . . . . . . . 3 CIECA Launches CIECA-TV . . . . . . . . . . . 30 Columbia, SC, and Dallas, TX, to be Next Sites of Sherwin-Williams Collision Facility Digital Marketing Seminar . . . . . 24 Connecticut Body Shop Fined a Total of
$54,300 for Repeat Violations by OSHA, Did Not Contest Citations . . . . . 38 Dealerships Continued to Lose Body Shops in 2012 . . . . . . . . . . . . . . 26 EPA Reduces Regulatory Burden of Wipe Use. . . . . . . . . . . . . . . . . . . . . . 8 Garmat’s Sharp Shooter Contest is Back, Winners Get a Free Trip to SEMA and a SATAjet 4000B . . . . . . . . . . . . . . . . . 13 GM Adds Production Week on Cruze, Yr on Yr up 70% . . . . . . . . . . . . . . . . . 23 GM Wants to Improve Volt Electric Range by 20% . . . . . . . . . . . . . . . . . . . 22 Herkules Wins IAMG 2012 Vendor of the Year Award. . . . . . . . . . . . . . . . . 30 Honda Aces Crash Test, Kia and Nissan Less So . . . . . . . . . . . . . . . . . . 32 Honda to Invest $180M more in Anna, OH, Engine Plant . . . . . . . . . . . . . . . . . . . . 22 Hyundai Recalling Santa Fes . . . . . . . . . . 23 Hyundai to Recall 239K of its 05-10 Sonatas in ‘Rust Belt’. . . . . . . . . . . . . . 23 July Article on Felder’s Collision Parts v General Motors et al. was Wrong About the Lawsuit Being Dismissed . . . . . . . . . 3 Mercedes-Benz to Offer Head-up Windshield Display . . . . . . . . . . . . . . . 22 Mitchell Brings 5 New Add-Ons to Repaircenter Tools . . . . . . . . . . . . . . . . 24 NABC Award of Distinction Nominations Still Open. . . . . . . . . . . . . . . . . . . . . . . 24 NABC is Accepting Nominations for Seven Open Board Seats . . . . . . . . . . . 32 NACE MSO Symposium Open to Some Single Shops . . . . . . . . . . . . . . . . . . . . 36 NACE Panels to Review Parts Procurement, Certification. . . . . . . . . . . . . . . . . . . . . 33 New Test Fails Half the Small Cars Tested. 32 Nissan Sees Triple Last Year Leaf Sales, Boosts Output . . . . . . . . . . . . . . . . . . . 23 OSHA Focused on Preventing Summer Heat Illness, Isocyanates Ongoing Concern. . 26 OSHA Withdraws Proposed Rule Amending on On-site Consultation Program Citing Concern About Employer Participation. . 28 PPG MVP Conference Registration is Now Open . . . . . . . . . . . . . . . . . . . . . . 30 PPG Passes Milestone with PaintManager at 5K . . . . . . . . . . . . . . . 34 Progressive Evaluates Snapshot Campaign, Expresses Surprise that 40% Say ‘No Way’ . . . . . . . . . . . . . . . . . . . . . . . 31 SAAR Increases to 15.8 Million . . . . . . . . . 4 SEMA Show Expands to Three New Exhibitor Areas . . . . . . . . . . . . . . . . . . 33 State Farm & PartsTrader Meet with Industry As Program Rolls Out in the Southwest . 1 Tesla Model S Gets 5 Stars . . . . . . . . . . . 22 TopTech Finder Expands Job Board for All Workers. . . . . . . . . . . . . . . . . . . 14 Toyota Expects to Sell 2.25M Vehicles in U.S. in 2013 . . . . . . . . . . . . . . . . . . 22 Toyota Recalls 342K Pickups . . . . . . . . . . 22 U.S. Auto Parts Network Has Loss Over 2nd Quarter 2012 . . . . . . . . . . . . . . . . 30 UniCure Spraybooths Joins CREF Leadership Circle . . . . . . . . . . . . . . . . . 30 VISA and Mastercard Owe About $7.25 Billion to Merchants Who Have Taken Their Cards Since 2004, Fairness Hearing on Sept. 12 Could Change Amount Owed . . . . . . . . 18
Dismiss and allowed the suit to proceed. The rest of the story is correct. The error was brought to our attention by the law firm for the Plaintiff: Sher, Garner, Cahill, Richter, Klein and Herbert LLC of New Orleans, who pointed out the error and wrote: We thank you for reporting on the lawsuit and the important issues involved in the lawsuit. We remain steadfast in our confidence in the merits of this case and look forward in continuing to assist our client in the pursuit of remedies for its damages incurred at the hands of the Defendants. Autobody News will continue to monitor developments in the case and report in future issues.
CIC Committee Deletes Reference to “Class A” Shop
Since CIC first compiled its definition of a “Class A” collision repair facility in the 1980s, the Definitions Committee has periodically updated the document, adding to or changing the list of equipment, training, compliance issues and other elements that CIC participants believed distinguished the nation’s top shops. But at CIC in Boston, the com-
mittee presented its final draft of the revised document, with the term “Class A” no longer in the title. The line items in the definition are largely unchanged from the 2005 version, but it now defines simply the, “recommended equipment and capabilities for a collision repair facility.” Several CIC participants in Boston See Class A Shops, Page 13
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Great Lakes
REGIONAL AASP-MN Scores Fall Seminar “Hat Trick” . 6 Avery v State Farm is Back in the News, as a RICO Case making the Judge the Issue . 1 BASF to Show Custom Bel Air at Woodward Dream Cruise . . . . . . . . . . . . 4 Detroit Shop Partners Lions’ Bill Bentley for Schools . . . . . . . . . . . . . . . . . . . . . . 6 Federal Court Refuses to Stop Auto Parts Antitrust Class Action in Michigan . . . . . 1 IL is 20th Medical Marijuana State, Not OK at Work . . . . . . . . . . . . . . . . . . . 6 Illinois Appelate Court Rejects Restrictive Covenant . . . . . . . . . . . . . . . . . . . . . . . . 8 Michigan Court Hears Class Action by Car Dealers Against Japanese Parts Suppliers . 4 Ohio’s Captive Insurance Law, Options for Small Business Self-Insurance?. . . . . . . 9 Safelite Opens Chicago Store . . . . . . . . . . . 4 San Antonio Lawyer Faces 22 Counts of Health Care Fraud, Ohio Connection to Case . . . . . . . . . . . . . . . . . . . . . . . . . 6 Sherwin-Williams Automotive Finishes ‘Achieving Service Excellence’ Course Was Held at Cleveland Headquarters . . . 4
Autobody News regrets an error in our article (Federal Anticompetition Lawsuit Against GM Program Dismissed Again but Amended Complaint is Allowed) published in the July 2013 Issue which stated that: “A federal judge in Louisiana has again dismissed an aftermarket parts retailer’s lawsuit challenging GM’s ‘Bump the Competition’ program designed to boost sales of original-equipment parts at dealerships, but he gave the plaintiff, Felder’s Collision Parts Inc., permission to amend its complaint.” The statement that the suit was dismissed is wrong. Rather the judge denied the Defendants’ Motion to
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July Article on Felder’s Collision Parts v General Motors et al. was Wrong About the Lawsuit Being Dismissed
Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2013 Adamantine Media LLC.
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Audi Wholesale Parts Dealers . . . . 36 BASF . . . . . . . . . . . . . . . . . . . . . . 5, 11 BMW Wholesale Parts Dealers . . . . 29 Car-Part Pro. . . . . . . . . . . . . . . . . . . 23 CCC Information Services . . . . . . . 15 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 17 Chief Automotive. . . . . . . . . . . . . . . 19 CJ, Inc. - Signature - Star-A-Liner . . 26 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Equalizer . . . . . . . . . . . . . . . . . . . . . 10 Erhard BMW of Bloomfield Hills . . . 18 Erhard BMW of Farmington Hills . . 18 Ford Wholesale Parts Dealers . . . . 37 Forklift Wrecker . . . . . . . . . . . . . . . . . 6 Ganley Auto Group, Inc . . . . . . . . . 12 Garmat . . . . . . . . . . . . . . . . . . . . . . 13 GM Wholesale Parts Dealers . . . . . 33 Graham Auto Mall . . . . . . . . . . . . . . 31 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 20-21 Hyundai Wholesale Parts Dealers . 33 Infiniti of Naperville . . . . . . . . . . . . . 24
Jake Sweeney BMW . . . . . . . . . . . . . 8 Jake Sweeney Chevrolet . . . . . . . . . 8 KBS Coatings . . . . . . . . . . . . . . . . . 16 Laurel Auto Group of Westmont . . . 40 Lexus Wholesale Parts Dealers . . . 35 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mazda Wholesale Parts Dealers . . . 30 Mercedes-Benz . . . . . . . . . . . . . . . . . 7 Mitchell International. . . . . . . . . . . . . 9 MOPAR Wholesale Parts Dealers . . 25 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 38 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 PreFab Ads . . . . . . . . . . . . . . . . . . . . 4 Rare Parts, Inc. . . . . . . . . . . . . . . . . 14 SEMA Trade Show . . . . . . . . . . . . . 39 Subaru Wholesale Parts Dealers . . 35 Toyota of Grand Rapids . . . . . . . . . 28 Toyota Wholesale Parts Dealers . . . 32 Urethane Supply Company . . . . . . 29 VIM Tools. . . . . . . . . . . . . . . . . . . . . 34 Volkswagen Wholesale Parts Dealers. 37 Walcom USA . . . . . . . . . . . . . . . . . . 27
www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 3
Michigan Court Hears Class Action by Car Dealers Against Japanese Parts Suppliers Several car dealerships have filed an antitrust class action against four Japanese automobile parts suppliers for allegedly rigging bids for lighting equipment sold to major car companies. Mitsuba Corp., Koito Manufacturing Co. Ltd., Ichikoh Industries Ltd. and Stanley Electric Co. are being sued in the class action of Martens Cars of Washington Inc. et al. v. Koito Manufacturing Co. Ltd. et al., which the plaintiff car dealers filed in the U.S. District Court for the Eastern District of Michigan. The plaintiffs allege that the defendants violated federal and state antitrust laws by conspiring to increase the price of automotive lamps—including headlights and taillights—by “preordaining winners and losers” in the bidding process. The auto parts industry has recently been the focus of several in-
vestigations by antitrust enforcers on three continents. Two of the companies, Koito and Ichikoh, were fined less than four months ago allegedly for this same type of behavior by the Japanese Federal Trade Commission, Japan’s antitrust regulator. Koito was fined $36 million, and Ichikoh was fined $13.1 million. An investigation into the auto parts industry by the U.S. Department of Justice has resulted in more than $800 million in fines and guilty pleas by several companies. The European Commission, which is conducting a corresponding investigation, has announced that it has imposed fines of more than $182 million U.S. against companies that were found participating in cartels regarding automotive products. See related cover story this issue.
Continued from Cover
portion of the MDL is only a fraction of the claims in this massive antitrust action. Similar claims have been brought concerning alleged anticompetitive conduct in the manufacture and sale of other automotive parts, including instrument clusters, fuel senders, heater controls, and alternators. See related story above.
Antitrust Price Fixing
cret meetings. The court also reasoned that the allegations are consistent with the guilty pleas entered in the DOJ action. This ruling on the wire harness
Sherwin-Williams Automotive Finishes ‘Achieving Service Excellence’ Course Was Held at Cleveland Headquarters
Its own Cleveland-based division headquarters will be the site of the next Sherwin-Williams Automotive Finishes A-Plus™ University EcoLean™ Suite of Training Course Offerings, featuring the ‘Achieving Service Excellence’ course was held August 21, 2013, officially in Warrensville Heights, OH. The ‘Achieving Service Excellence’ program is designed for shop owners, production managers, customer service representatives, and estimators to provide them with the skills, knowledge, and tools necessary to improve their collision center’s quality, production, and output… by focusing on the right types of customer service. “Lean collision repair shops— and those that utilize the right methods of customer service—are able to reduce internal costs and raise their level of CSI and output quality. This two-fold result often helps them gain a competitive advantage in their respective markets,” says Steve Feltovich, Manager of Business Consulting Services for SherwinWilliams Automotive Finishes. The ‘Achieving Service Excel-
lence’ course discussed the following topics: ● How to become more profitable with a customer-focused strategy ● How to establish a proven method for providing each customer with value ● How to build a strong brand based on customer service excellence ● How to improve efficiency and effectiveness of your customer service staff ● Identifying service excellence professionals in and out of your organization ● Explain driving factors behind the experiential service economy To register online for an upcoming Cleveland A-Plus University EcoLean ‘Achieving Service Excellence’ course, go to http://www.sherwin-automotive.com/customer-progra ms-services/a-plus-network/calendarof-events/. For more information on the APlus Network, call 800-798-5872 or go to http://www.sherwin-automotive.com/en/Markets/Collision-Repair/A-Plus-Network.aspx.
4 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Safelite Opens Chicago Store
Safelite AutoGlass announced it has opened a new store in Elgin, IL. The new location is at 555 N. McLean Blvd., Elgin, IL, 60123. This Chicagoarea facility serves multiple suburbs in the area. The 4,000-square-foot facility can stock more than 300 windshields and tempered glass parts and offers four full service bays, according to the company. Peter Theer serves as the store manager, overseeing four technicians. He plans to add several more technicians over the next few years.
SAAR Increases to 15.8 Million
The annual revision to the seasonal factors used in calculating the industry's seasonally adjusted, annualized selling rate, or SAAR, increased July’s rate to 15.8 million. The new data reduced June’s rate from 15.98 million to 15.91 million. The lower figure still represents the highest SAAR since the end of 2007. It also erases what had looked to be a conspicuous sales dip in April, the only month in which the SAAR came in at less than 15 million since October. The revised SAAR for April is 15.19 million, rather than 14.91 million.
BASF to Show Custom Bel Air at Woodward Dream Cruise
BASF will do its part to add to the colorful and classic atmosphere of the 2013 Woodward Dream Cruise by displaying a custom 1956 Chevrolet Bel Air painted with BASF’s R-M Diamont paint. BASF’s Dream Cruise display will be located at Morisette Automotive on Woodward Ave., just south of 13 Mile Road in Royal Oak, MI. In addition to the custom Bel Air, BASF will also feature artwork from airbrusher Jeffery James. He will have a display showing car parts painted with colors from BASF’s Carizzma paint line—a low-volatile organic compound (VOC) refinishing solution offering a wide range of colors and virtually limitless effects, according to the company. Carizzma is supported by BASF’s R-M Refinish System. “The Dream Cruise is the perfect venue to spotlight the results of our vibrant paint colors,” said Vitor Margaronis, marketing director for BASF Coating Solutions. “It’s the largest one-day automotive event in the country and we love being out here supporting the industry and the community.”
www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 5
AASP-MN Scores Fall Seminar “Hat Trick”
The Alliance of Automotive Service Providers of Minnesota (AASP-MN) will host “Wheel Alignment Diagnostic Angles & Resetting Electronic Stability Control Systems,” Tuesday, September 10, 2013, from 4:00–8:00 p.m., at Dunwoody College of Technology, Minneapolis. The seminar, presented by Roger Creason, of Hunter Engineering, will cover wheel alignment diagnostic angles, including: ● Steering Axis Inclination ● Included Angle ● Turning Angle ● Setback and Thrust Angle. On Wednesday, September 18, 2013, AASP-MN will host “8 Steps to a More Profitable Auto Repair Shop, from 8:00 a.m.–4:00 p.m., at the Hyatt Place Minneapolis/AirportSouth, Bloomington. The seminar, presented by Bob Cooper and Doris Barnes, Elite Worldwide, will teach attendees how easy it is to build a more profitable shop, in the most ethical way, and join the ranks of the industry superstars at the same time. Attendees will learn how to: ● Set goals for the shop that will take it right to the top ● Find & hire the superstar technicians and service advisors ● Put together a marketing plan that will keep your service bays filled ● Dramatically improve sales and cus-
tomer satisfaction ● Generate higher sales and happier customers ● Generate higher profits and increase shop value On Wednesday, September 25, 2013, AASP-MN will host two “Health Care Reform” workshops, from 11:00 a.m.–1:00 p.m. and 6:00– 8:00 p.m. for those interested in learning more about the Patient Protection and Affordable Care Act (PPACA) before its January 1st implementation. This workshop will review the requirements and criteria of the PPACA to help attendees decide what strategy will work best for their business. Topics covered will include: ● Small business vs. large business definition ● Individual and small business tax credits ● MNSure—Minnesota’s health care exchange ● 2013-14 small group renewal considerations ● Options for small business employers, including pros and cons The workshops will be presented by Dennis Begley, CLU ChFC LUTCF CBC, Employee Benefits Manager, CBIZ AIA and Aaron Hall, CEO & Business Attorney with Thompson Hall Santi Cerny & Dooley. For additional information or to register, contact the AASP-MN office at (612) 623-1110 or 800-852-9071 or register online at www.aaspmn.org.
Detroit Shop Partners Lions’ Bill Bentley for Schools
Adrian’s Collision Centers, with six locations around Metro Detroit, is partnering with Bill Bentley, a second-year Detroit Lions cornerback, to collect school supplies for the Detroit Public Schools during the month of August. Those who wish to donate may simply drop off supplies to the designated boxes at any one of the Adrian’s Collision Centers located in SouthBill Bentley field, Farmington Hills, Northville, Dearborn, Commerce, and Marysville. In addition, all who donate school supplies will be entered to win one of six footballs autographed by Bill Bentley. “We’re very excited to partner with Bill Bentley on this initiative,” said Neil Adrian, owner of Adrian’s Collision Centers. “My partnership with Adrian’s Collision Centers will allow me to accomplish this goal and I’m very excited to help in any way I can,” Bentley said. Donations are being collected until August 31st at all Adrian’s Collision Centers, see www.adrianscollisioncenters.com
IL is 20th Medical Marijuana State, Not OK at Work
On August 1, 2013, Illinois Governor Pat Quinn signed the Compassionate Use of Medical Cannabis Pilot Program Act, making Illinois the 20th state to legalize medical marijuana. The law provides for a four year pilot program allowing individuals with certain medical conditions—including cancer and multiple sclerosis—access to medical marijuana, pending approval by their doctors and the Illinois Department of Public Health. The law goes into effect January 1, 2014. The Illinois bill specifically prohibits employers from “penalizing” an individual for “his or her status as a registered qualifying patient.” However, no cause of action will exist against an employer who terminates or disciplines an employee who, based upon the employer’s good faith belief, used or possessed marijuana on the employer’s premises and/or was impaired while working on the employer’s premises. While it is too soon to tell how Illinois courts will interpret these provisions, Illinois employers with drug testing programs should consult with legal counsel to discuss how this provision may affect future testing.
San Antonio Lawyer Faces 22 Counts of Health Care Fraud, Ohio Connection to Case A San Antonio-area lawyer has been indicted on charges that he defrauded $12 million from third-party insurance administrators by failing to provide their clients stop-loss coverage as requested. Attorney Hugh Lappe Scott Jr., 62, whose specialties are oil, gas and international law, dabbled in the reinsurance or stop-loss insurance industry, which provides coverage of claims that exceed a set amount in self-funded or hybrid insurance plans. He and an alleged accomplice, Deborah Suzanne Williams, 42, are accused of defrauding a handful of third-party administrators and their clients in a Ponzi-like scheme. Scott also is facing disciplinary hearings by the bar’s Office of the Chief Disciplinary Counsel, court records in Fort Worth show. “I’ve got no comment; you’ll have to speak to my attorney,” said Scott, of Hollywood Park. His lawyer, Mark Stevens, also had no comment. Scott is charged with 22 counts
of health care fraud and 20 counts of theft from a health care benefit program. Scott’s indictment, obtained after an investigation by the Department of Labor and the U.S. Attorney’s Office in San Antonio, said Scott ran companies that included United Re AG, Vado AG and Texcessre Inc., the latter of which often did business as United Re Trust. Williams, United Re’s former operations director, is described as having a lesser role, and her indictment charges her with 19 counts of theft from a health care benefit program. Both are ordered to appear in federal court on Aug. 21. Williams, of Stonewall, told a reporter she did not want to comment. The indictment alleges Scott falsely told clients that no more than 20 percent of what they paid his companies would go to “management and administrative services” and that the remaining 80 percent would be for reinsurance. But Scott instead utilized much See San Antonio Lawyer, Page 28
6 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 7
Illinois Appelate Court Rejects Restrictive Covenant
On June 24, 2013, an appellate court in Illinois made it more difficult for Illinois employers, including those in the automotive industry, to enforce non-solicitation and non-competition provisions. Under the court’s “Fifield two-year rule,” Illinois noncompetition and nonsolicitation agreements supported only by new employment or continued employment will become extremely difficult to enforce for short-term employees, even when the employees decide to terminate the relationship. It appears employees can breach restrictive covenants with impunity, as long as they resign within two years of their start date. Specifically, the court determined that such restrictive covenants won’t be enforceable unless the employee in question works for at least two years after signing the restrictive covenant. Generally speaking, like all contracts, there must be sufficient consideration for courts to enforce restrictive covenants. The Illinois court determined that, in the employment setting, there would not be enough consideration for enforcement until an employee had been employed for two years. Several key facts make this case notable. First, the restrictive covenants in question were agreed to upon the
start of new employment, not some months or years after the employee had begun working for the company. Even so, the court still required two years of employment before there would be adequate consideration. Second, the employee had negotiated the terms of the restrictive covenant and successfully had them altered to his benefit before accepting the new employment. Despite this, the court still refused to enforce the restrictive covenants. Third, the court determined that it was irrelevant whether a restrictive covenant is negotiated before or after employment begins—either way, it would be a “post-employment” restrictive covenant. Practically speaking, this means that an Illinois employer will be unable to enforce any non-solicitation or noncompetition clauses in an employment agreement if an employee leaves to go work for a competitor before reaching his or her two year anniversary with the employer. This is the case even if the agreement is entered into at the inception of employment. This case is likely to be appealed but, until then, employers should use caution when hiring and considering enforcement of non-solicitation or non-competition clauses.
EPA Reduces Regulatory Burden of Wipe Use
Recently, the U.S. Environmental Protection Agency (EPA) modified the hazardous waste management regulations under the Resource Conservation and Recovery Act (RCRA) to exclude solvent-contaminated wipes from the EPA’s hazardous waste regulations, under condition that businesses clean or dispose of wipes properly. This comes as EPA’s final risk analysis, published in 2009, concluded wipes possessing certain hazardous solvents do not pose significant risk to human health and the environment if properly managed. The EPA noted that wipes are used in conjunction with solvents for cleaning and other purposes by tens of thousands of facilities in numerous industry sectors including automobile repair shops. According to Mathy Stanislaus, assistant administrator for the EPA’s Office of Solid Waste and Emergency Response: “Today’s rule uses the latest science to provide a regulatory framework for managing solvent- contaminated wipes that is appropriate to the level of risk posed by these materials … I’ve heard directly from stakeholders about the benefits of this rule and the need to finalize it. The rule reduces costs for thousands of businesses, many of
which are small businesses, while maintaining protection of human health and the environment.” This ruling excludes only wipes that are contaminated with solvents listed as hazardous wastes under RCRA that are properly cleaned or disposed of. To be excluded, solventcontaminated wipes must be managed in closed, labeled containers and cannot contain free liquids when sent for cleaning or disposal. Additionally, facilities that generate solvent-contaminated wipes must comply with certain recordkeeping requirements and may not accumulate wipes for longer than 180 days. The EPA first proposed modified regulations for solvent-contaminated wipes Nov. 20, 2003, and published a revised risk assessment for public comment Oct. 27, 2009. Once the final ruling has been published, it will be accessible through ASA’s legislative website, www.TakingTheHill.com.
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Ohio’s Captive Insurance Law, Options for Small Business Self-Insurance? A captive insurance company is essentially a private insurer that is a wholly owned subsidiary of another company. These captives accept the premiums that the company would have paid to a regular insurer and then cover any claims against the parent company. If the claims are less than the premium, the captive has made a profit, just as a regular insurance company would. The difference is that the company that set it up benefits, not the insurer. This is an alternative form of risk management that is becoming a more practical and popular means through which companies can protect themselves financially while having more control over how they are insured. In 2002, the Internal Revenue Service issued guidance on how to set up captives to comply with the tax code, and that gave way to a rush to form them. Now financial advisers are increasingly pitching captives to smaller businesses, including physicians’ groups, restaurant owners and companies that want to cut the costs of health insurance for their employees. They are being portrayed as a way
not only to save money on insurance premiums but also to reduce income taxes and transfer money to heirs free of estate tax. A New York restaurant owner said he became interested in having a captive insurance company when his traditional insurance policy did not cover a claim. Several years ago, one of his restaurants was closed for three days because of work in the neighborhood, but his policy had a waiting period of 96 hours before the insurance covered any losses. The captive he set up covers such losses. “I can write specific policies that go above and beyond my typical commercial liability coverage,” he said. “Business interruption coverage. Data breach. Legal fees. You can do deductibles.” While a company would get the same tax deduction for paying premiums to a captive as to a regular insurer, the real advantages come to people whose company profits flow through to their personal income tax. A person setting up a captive under section 831(b) of the Internal Revenue Code can put up to $1.2 mil-
lion a year into a captive, tax-free. If the captive pays out less than that in claims, it can eventually start returning the surplus to the business owner in the form of dividends, which are taxed at a lower rate than income. The other advantage comes with estate planning. If a business owner set up a captive in the name of the owner’s heirs, the captive could double as a way to transfer money to them free of estate taxes. The big red flags are companies that are insuring for risks that they do not have simply to take advantage of the tax savings, such as terrorism insurance for a small, domestic company, or a business owner in Nebraska insuring against hurricane (not tornado) risk. Ohio is about to be one of the next states to allow the formation of captive insurance companies. Texas and Missouri have enacted similar legislation recently. Oregon has removed premium taxes from captives, instead charging a $5000 annual fee. In the United States, Vermont is home to more captive insurers than any other U.S. state, with
more than 900 licensed captive companies. House Bill 117 was passed by the Ohio House on June 4, 2013, and is now before the Ohio Senate for passage. The bill will be likely be signed by the Governor this year. House Bill 117 provides for the formation of pure captives and protected cell captive insurance companies. The Ohio captive insurance company bill represents an alternative to traditional insurance for Ohio companies or companies doing business in Ohio. Previously, Ohio-domiciled captives were not an option for Ohio companies who were instead forced to establish their captives in foreign jurisdictions. Captive formation in other jurisdictions is not without risk and a number of administrative burdens. Pure captives authorized under the Ohio bill will be able to underwrite the risks of their parent and affiliates’ insurance needs. Protected cell captive insurance companies are captives consisting of separate cells, and each cell owns particular liabilities and has assets associated with See Captive Insurance Law, Page 12
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On Creative Marketing Don’t Mess With My Marketing! with Thomas Franklin
My first glimpse of malicious competitors was seeing a runner for one body shop remove a competitor’s business cards in an insurance agent’s office, and replace them with his own. In a highly competitive market, some shops may be striving to steal other shop’s business when the number of jobs in the area is declining. In addition to the straightforward attempts to push a shop out of a dealership deal in order to gain the authorized repair center designation, I’ve seen some shops stoop to discrediting a competitor in every way possible. Sometimes signs are defaced, taggers sent to put an ugly image on a shop’s fences and exterior, and more. If you spot someone taking photos of your shop or vehicles parked in your lot or in the vicinity of your shop, get that person’s name and file a police report at once. These days a common malicious practice is placing phony complaints against a shop on Yelp and local referral websites. One shop suspected a competitor of having a vehicle brought into his shop and deliberately sabotaged to create an insurance company and Board of Auto Repair complaint and a vicious story to be sent to the press and put on-line. The shop owner suspected he was under attack when an anonymous tip also sent OSHA inspectors into his shop for supposed code violations. Anonymous complaints are most difficult to defend against, but even a complaint by someone giving his or her name could still be someone connected to a competing shop. One shop that was bro-
ken into resulting in the loss of numerous radios, GPS systems and more, suspected a competitor of either arranging the theft or at least providing information on how to get into the shop at night. How far will a malicious competitor go to undermine a shop he wants out of the way? In the famous fictional industrial espionage tale, “Willy Wonka and the Chocolate Factory,” author Roald Dahl has the evil Slugworth trying to steal Wonka’s secret recipes by bribing young visitors to get them from the Oompa Loompa sweets maker. Do body shop owners have trade secrets? Could a competitor squash a shop’s marketing strategy efforts if he knew them in advance? Hacking into a company’s computer system may be the most modern way to steal trade secrets, but experts say most thefts still occur the old fashioned way, by sneaking into a company’s offices and making off with classified information. Ira Winkler, a top corporate security analyst, in his book “Spies Among Us: How to Stop the Spies, Terrorists, Hackers, and Criminals You Don’t Even Know You Encounter Every Day,” Winkler estimates American companies lose as much as $300 billion a year to pirating, counterfeiting and other corporate theft. He says inside jobs are another tried-and-true method. We just saw an example of that when several people were busted as they attempted to sell Coca-Cola secrets to rival cola giant, Pepsi. Could a competitor pay off an em-
ASRW Creates Free App for Event Information
Automotive Service and Repair Week (ASRW) has created a free mobile application allowing participants to quickly access event information. The app is available for iPhone, Android and Blackberry users and can be downloaded by searching ASRW2013 in your device’s app store. The app will allow ASRW participants to search the exhibitor list and access the floor plan in addition to searching all educational sessions and events. It is integrated with registration, includes a calendar, shows
alerts, and has social integration with Twitter and Facebook. Additionally, users can access their hotel reservations and information on local restaurants and attractions in Las Vegas. “Based on feedback from last year, we’ve upgraded the technology used in our app to provide a better user experience for our attendees,” said Shelby Hausler, ASRW associate show manager. “There’s no better way to access all the critical information from the show website while you’re on the go or on site.”
10 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
ployee in his target body shop to report on planned marketing activities? How could a shop owner defend against a devious attack of this nature? One news article reports that experts say the best defense against corporate theft is to thoroughly vet employees who have access to sensitive information. Then make sure that that information is secure. If a breach occurs, report it to law enforcement as soon as possible. Corporations often hire a security analyst to perform simulated espionage to test the company’s security system. While few shops have the kind of sensitive information that a competitor might try to steal, there are many more basic ways to mess with a shop’s marketing and to try to discredit their image. Where it is still common for accident victims to try to get three estimates, I’ve heard of a shop owner deliberately sending a prospective repair customer to the worst two other
shops he could think of, where he could be sure the customer would get a high or faulty estimate. Some have mastered the fine art of tactfully badmouthing the competition to instill enough doubt about their integrity and reliability to eliminate them from the running. One shop owner I know was stunned when he lost a couple of dealership deals he had for many years. He simply wasn’t prepared for the aggressive attacks on his quality that were made. Just running a shop is a full-time job and that doesn’t leave a lot of time to be policing business relationships and marketing maneuvers. But in a highly competitive business environment, it’s naive to assume all competitive moves will be honest and above board. Thomas Jefferson said “Eternal vigilance is the price of freedom,” but, in a body shop, constant vigilance may well be the price of survival.
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Continued from Page 9
Captive Insurance Law
those liabilities. A cell is not liable for the liabilities associated with another cell’s assets or the protected cell captive’s general assets. Though large corporations have benefitted from operating captives for many years, smaller, closely held companies are now learning that captives can provide substantial benefits as part of a risk management program. Some of the benefits of a well-managed captive insurance company include: ● Tax deduction for the parent or affiliates for the insurance premium paid to the captive; ● Greater policyholder control over its Continued from Cover
Avery v State Farm
Court for the Southern District of Illinois. The trio’s lawsuit named State Farm; William Shepherd, an attorney at the insurance company; Ed Murnane, president of the Illinois Civil Justice League; and Justice Lloyd Karmeier’s campaign committee, Citizens for Karmeier, as defendants, however the judge, David Herndon since dismissed Citizens as a defendant. Tennessee attorney W. Gordon Ball, who serves on the plaintiffs’ legal team, said his clients’ RICO suit is very simple: “Shepherd, State Farm and Murnane used the Illinois Civil Justice League as an enterprise to basically buy an Illinois Supreme Court justice.” On August 5, 2013, the plaintiffs in Hale v. State Farm told the judge hearing the case that their “stated intention” was to ask Justice Karmeier to address the allegations in a deposition. The plaintiffs contend that State Farm violated the Racketeer Influenced and Corrupt Organizations Act (RICO) by using the U.S. Chamber of Commerce, the Illinois Republican Party, and other entities as conduits to conceal its role in funding and operating the justice’s campaign. RICO allows plaintiffs to sue persons or entities involved in a conspiracy to engage in improper activities such as bribery, fraud, or violent crimes. In May of this year, a federal judge de-
risk management programs; ● Other tax savings opportunities, such as gift and estate tax savings; ● Opportunity to accumulate wealth in a tax-favored vehicle; ● Asset protection from the claims of business and personal creditors; ● Opportunity for stabilized or reduced insurance costs; ● Access to worldwide reinsurance markets; and ● Insuring risks that would otherwise be uninsurable or cost prohibitive. Pure captives will be the focus of most Ohio companies or companies doing business in Ohio. Highlights of the proposed Ohio captive insurance company bill relating specifically to pure captives include: Permitted lines of insurance — A captive may only offer the following
types of insurance coverage: ● Commercial multiple peril ● Ocean marine ● Inland marine ● Medical malpractice ● Workers compensation (to the extent permitted by Ohio law but only for the purpose of indemnifying a selfinsuring employer) ● Commercial auto liability ● Commercial auto physical damage ● Fidelity ● Surety ● Any other line that the ODI superintendent permits Distinct regulatory scrutiny— The bill requires pure captives to maintain minimum capital and surplus of $250,000. Capital and surplus must be in the form of cash, marketable securities or irrevocable, unconditional
and automatically renewable letters of credit. The captive’s board of directors will determine appropriate investments for the captive by adhering to a prudent-person standard of investment, employing a strategy that seeks to preserve capital and is not overly speculative. A captive may make a loan to, or an investment in, its parent or an affiliate only with the approval of the ODI superintendent. Captives are prohibited from joining or contributing financially to any guaranty or insolvency fund in Ohio and are prohibited from being required to join a rating organization. Generally, captives will be governed only by the Ohio captive statute and only such other provisions of the Ohio Insurance Code specified in the Ohio captive statute.
nied State Farm’s motion to dismiss the lawsuit and ruled that the plaintiffs can continue with discovery. The trial could unearth more details about the extent of State Farm’s involvement in Justice Karmeier’s 2004 campaign. The events that form the basis of Hale v. State Farm arose in 1997, when more than 4 million aggrieved
policyholders filed a class-action lawsuit in an Illinois state court against State Farm. The 1997 lawsuit—Avery v. State Farm—concerned a clause in State Farm’s automobile insurance contract that stipulated that the company would pay for replacement parts of “like kind and quality” to restore a vehicle to its pre-loss condition after
an accident. State Farm was accused of breaching this promise by installing inferior replacement parts. A jury in Williamson County, Illinois, agreed with the plaintiffs in Avery v. State Farm and awarded them $1.18 billion. The verdict amounted to around $300 for each of the 4 million plaintiffs.
12 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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Garmat’s Sharp Shooter Contest is Back, Winners Get a Free Trip to SEMA and a SATAjet 4000B
Back for the third year, GARMAT USA has announced the return of the immensely popular Garmat Sharp Shooter contest for shop owners and paint techs. This contest which began in 2011, was designed to recognize quality paint techs and shop owners that use Garmat equipment. Grand Prize includes a trip for 2 to the 2014 SEMA Show in Las Vegas and a SATAjet 4000B Camouflage Limited Edition Paint Gun. “We are amazed at the response we have gotten with our Sharp Shooter contest in the past two years and the feedback from the techs that use our equipment is invaluable,” says Johan Huwaert, Garmat USA’s general manager. “The shop owners appreciate the contest too, as it provides the added benefit of validating their commitment to quality by showcasing their choice of equipment and capabilities of their technicians.” The Garmat Sharp Shooter Contest will run from July 25 -September 30, 2013. Paint techs and their managers will have the opportunity to tell their Garmat Story in either video tes-
timonial or written statements. Judging is based on the shop owner and paint tech’s dedication to providing quality paint jobs, superior customer service, attention to safety and overall equipment knowledge. Bonus questions include an inquiry on how Garmat can improve their Garmat experience with product improvements. In addition to the Grand Prize of a free trip to the SEMA SHOW in Las Vegas, SATA has generously provided 2 SATA Camo Paint Guns to be presented to the top two entries. Five finalists will each be awarded two Samsung Galaxy Wifi tablets, (one for the contestant and one for the owner/manager), and the first 100 entrants will receive a custom Garmat Sharp Shooter Cap. Contest rules and regulations can be found at www.garmat.com. The 2012 Garmat Sharp Shooter Winners can be found on www.facebook.com/GarmatUSA.
Continued from Page 3
Class A Shops
questioned that change. “What we tried to do over the years was distinguish those who step up to a higher level,” CIC Administrator Jeff Hendler told the committee. “Now just to be in the collision business I’ve got to meet all this? But what do we do about those who don’t? What do you call those guys?” As he did at CIC earlier this year when the committee presented a draft of the document, Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) noted that the definition includes things like a shop management system and ongoing CSI documentation that top-tier shops may need but that aren’t required by every shop. But Definitions Committee chairman Chris Evans of State Farm said the committee had input from all segments of the industry as it did its work on the definition. He also pointed to a vote at CIC in January which he said showed support for the change in the document’s name. At that meeting, about 45 percent of CIC participants voted to rename it as the “minimum requirements” for a shop, but over half were split among the other alternatives
offered, including keeping the definition unchanged from the 2005 version, revising it but maintaining it as the definition of a “Class A shop,” or deleting it altogether from the CIC website. As a “conference” rather than a formal organization, CIC has no bylaws nor formal voting requirements. But traditionally before any committee’s work product is considered finalized and published on the CIC website, a floor vote is taken. Although no vote to approve the 3-page document was taken in Boston, CIC Chairman George Avery said he felt the committee had completed its work (which began last year), and the finalized definition could be turned over to the CIC Standards Committee. “Let’s see where it fits in the work they are doing,” Avery said, although later in the meeting he said that the topic could be reviewed then or next year. “And now let’s move it into what’s happening with this process with the Standards Committee.” As with all its work, CIC has no ability to implement the definitions or recommendations it develops. But the “Class A” shop definition has been among the CIC documents most widely used in a variety of ways over the years by insurers, associations, government agencies and other organizations.
www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 13
Inside Insurance with The Insurance Insider
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
Responding to Reader Feedback on Insider’s Parts and Materials Column
I received a fair amount of feedback from devout readers about a previous column on parts and materials. For those who didn’t read (or don’t recall) that column, I addressed shops’ profit centers. I said shops need to quit whining about State Farm and PartsTrader and instead focus on the profit centers they do have control over. (See http://www.autobodynews.com/columnists/insurance-insider/item/7264stop-obsessing-about-parts-profits-wh en-you’re-not-managing-the-profitcenters-you-have.html) Because I’m not solely focused on pointing out the obvious, I also added a few tips as to how shops can improve their profitability on paint and materials. One suggestion, for example, was to reduce the amount of theft in the shop. Apparently, my tips for success were not welcomed by all readers. In fact, a few readers took me to task in e-mail responses to the column. Although they were upset with my comments, they also were astute enough to ask for help. I appreciate them taking the time to write, and I offer the following suggestions in response to some of their questions. Here’s an excerpt from “Laura,” who wrote from a shop in a Mid-Atlantic state. “Our rates for paint materials and labor that insurance companies pay us haven’t increased in 10 years or more,” Laura wrote. “As you know, paint and material prices have increased tremendously over that period of time. What are your thoughts on this? What are our rights against insurance companies so that we may protect our bottom line?”
Your situation is one that is very familiar to shops around the country, Laura. There are a number of markets across the United States that haven’t seen a labor rate or paint and material increase in years. These areas are usually in states with regulatory issues that create barriers to increased shop unity. Unfortunately, if your shop is one of only a few in these areas requesting an increase, you will NOT get one. If you are in a market populated with unknowledgeable shops that are still operating as if it’s 1980, your shop will suffer. There a few solutions to your problem. You can choose to remove yourself from any direct repair programs and charge whatever rate you believe is fair. Since that can be a risky endeavor, you can take a different approach. I would recommend requesting rate increases in a professional manner. Request a meeting at your shop. Explain why the increase is necessary. Show the insurer the investments you’ve made in your shop and employees. Last but not least, show them the “product” and service your customers receive that they can’t get down the street for the same price. “Tom,” from a dealership in the Northeast, also wrote to me after my paint and materials column. “How do insurance companies determine when the paint and materials reimbursements need to be raised on the estimates they provide” Tom asked. “Every time 3M or DuPont or PPG sends a notice that they are raising their prices, I ask them (by email or, if I can reach someone, by phone) to make sure they let the insurance
TopTech Finder Expands Job Board for All Workers TopTech Finder has expanded its job board to help repairers find all types of collision repair workers. “At NACE in New Orleans, shops said that they wanted help finding all kinds of employees, not just PDR techs. We are expanding to better meet the needs of the industry,” said Jeff Herman, CEO of TopTech Finder. Free for job seekers, TopTech Finder is also free for employers for a limited time in 2013. “Employers have a hard time finding qualified
technicians on general job boards. They aren’t designed for the collision repair industry and don’t draw many technicians,” said Herman. “In contrast, TopTech Finder allows candidates to list industry-specific qualifications like I-CAR Platinum and ASE certifications, making the job board a natural place for techs to find jobs.” Herman said all jobs, from estimators to collision technicians, entry-level to experienced, can now be posted on the website.
14 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
companies know that they are raising their pricing.” Insurers, Tom said, will in turn only honor a shop’s higher rate “after much complaining,” and many shops complaining. Then the insurers make it appear they are doing the shops a favor by raising the rate at a later date, all the while ‘complaining’ that THEY are losing profits. Is this how it works, in your professional opinion? It seems that the real theft here takes place from the time of the (supplier) increases to the time the insurance companies raise rates. They seem to be the thieves, not our employees, as you seem to think the problem is.” Well, Tom, insurance companies determine the paint and material reimbursement rate by using an algorithm developed by an engineer in mathematical computations. Not! Of course I am joking. Sadly, most if not all insurance companies only raise their rates when shops “complain,” as you
state above. That isn’t a joke. We aren’t in the business to give money away. Unless you ask, you aren’t getting. We don’t receive any documentation from the paint companies. I’m sure they would provide it upon request but we really don’t care. Years ago when gas and paint and materials prices were rising like the tide after a tsunami, we watched from afar as those near the beach were swept away. Unfair yes, but it’s not our problem. We see those increases only when they are reflected in the rates shops say they need to charge us. Unless a large number of shops in a geographic market submit for an increase, we aren’t increasing our reimbursement rate. I concur, Tom, with your assessment that we revert to pointing to employee theft or waste as the reason you aren’t profitable. Old habits die hard, but there also is a lot of truth to that statement.
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Continued from Cover
PartsTrader Rollout
meeting, pointed out that dealers can now see and quote prices for an entire parts list for each job, whereas currently they may not know about parts that a shop contacts only a recycler or
non-OEM parts vendor about. Avery agreed that PartsTrader gives dealers a chance to see other potential business and shop customers. “The performance of those who provide parts has an impact on repairers, and repairers have an impact on our shared customer,” Avery told Priest and other parts vendors at the meeting. “So you’re in the game. If you’re not on PartsTrader, it’s your decision. But you need to decide if those repairers that are working with me are repairers you want to deal with. Because I’m asking them to use PartsTrader.” Priest noted that dealers could just as easily lose business through PartsTrader as gain new business, and that any number of different insurers could require different electronic parts procurement systems. “How many fees am I going to pay? How many hoops am I going to jump through,” Priest asked. “We have the slimmest margin of anyone in the room, yet we have to pay for the program. State Farm should pay for the program. It’s going to benefit them.”
New Information on Fees About 130 people, including two Arizona state legislators, attended the meeting, which also offered some new information about PartsTrader. Sailer said 1,400 shops and 2,300 suppliers are now using PartsTrader following its roll-out in early August in major markets in Arizona, Colorado, New Mexico and Texas. He said major markets in California, Nevada and Utah will follow on September 9, with markets in Michigan and Ohio following in October. Sailer said 56 percent of shops using the program are using it for at
least some non-State Farm work; this is up from the 30 percent Sailer reported at a meeting in May. Use of the system for jobs other than State Farm work is something PartsTrader is counting on given its planned fee structure. PartsTrader is currently free to shops and Sailer said the company doesn’t “expect to ever charge a shop to use the system.” Sometime next year, however, suppliers will be given 60-days’ notice ahead of the start of a monthly fee for their participation; Sailer would say only that the fee would be “modest” and “less than you’re used to paying today for comparable products.” The supplier also will pay a yetto-be-determined fee per transaction, Sailer said, but there will be no transaction fee charged on State Farm jobs. “Our success is dependent on shops finding value in using PartsTrader beyond State Farm,” Sailer said. “That is an absolute must for us.”
State Farm Defends Mandate Avery was asked several times about the elimination of the “fax-only” option in PartsTrader, which had allowed a shop to use the system to buy from a vendor even if that vendor didn’t participate in PartsTrader. If State Farm went back on its assurance that shops could buy from any vendors they want, Avery was asked, might the insurer also step George Avery back from its assurance that shops aren’t required to buy the cheapest part the system locates? Avery responded that the “faxonly” option was available only during the pilot testing of the program in five markets, and insisted that shops still can use the vendors of their choice provided they are on the system—something that can only happen if a shop “nominates” those vendors to participate. In terms of other changes to the system or requirements down the road, Avery encouraged shops to remember that State Farm doesn’t require the use of non-OEM parts, doesn’t require discounts unless they are given to another insurer, doesn’t have paint caps, and “has a
16 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
pretty good book of business.” “You’re going to have to decide for yourself as to what sort of partner State Farm is,” Avery said. “There’s nothing else I can say. I will tell you: There is no value in pushing you to take the cheapest part. It doesn’t make sense. If (your Select Service score) is balanced between quality, efficiency and competitive price, and I put pressure on you for the price, it’s going to hurt what? Your efficiency. It’s going to slow you down if you get bad parts. So that decision about what parts to choose is in your hands.”
Other Concerns Raised Bob Schubert of Impact Auto Body in Mesa, AZ, was among the Select Service shop owners who spoke at the meeting. He challenged Sailer’s introductory comments in which Sailer compared PartsTrader to travel websites like Expedia or Orbitz, which allow users to see all the available options and make a choice based on the factors they see as most important. “Plane tickets and collision parts are nothing alike,” Schubert said. “I’m sorry, but it’s a terrible analogy. Anybody, a 10-year-old, can get online and figure out how to buy a plane
ticket. Not so with collision parts. Not so with the people who fill the orders.” He said he found it “kind of insulting” that State Farm felt the industry “wasn’t smart enough to order parts efficiently, get them there on time and have single-digit return ratios.” He noted that no one has addressed how Select Service shops with automaker certifications will Bob Schubert reconcile the conflicting requirement some of those programs have for using a particular parts sourcing system. And he criticized PartsTrader for not providing parts suppliers with more than vague explanations of what fees they will eventually have to pay. “Once these dealers are signed on, they’re signed on, they’re hooked,” Schubert said. “They’re not going to get off of it. They won’t be able to. They have a right to know what their costs are going to be, or at least a range, before they sign on to it.” See PartsTrader Rollout, Page 28
www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 17
VISA and Mastercard Owe About $7.25 Billion to Merchants Who Have Taken Their Cards Since 2004, Fairness Hearing on Sept. 12 Could Change Amount Owed If you’ve accepted MasterCard and Visa payments from consumers within the past nine years, you may have some money coming your way. Notice of a settlement was recently filed in the amount of $7.25 billion with merchants who have accepted MasterCard and Visa payments since 2004. According to David Cherney, vice president of Digital Financial Group (DFG), a merchant service group in Carson City, NV, the suit was filed in 2006 and has had more than 50 million pages of documents and 400 witnesses to date. “Basically [MasterCard/Visa was] violating anti-trust laws, which you would call price fixing,” says Cherney. “I have made my living in the merchant service industry so indirectly Visa and MasterCard put my kids through college… but I have no problem in being candid about what they’re being accused of. I’ve seen it. They wouldn’t be agreeing to a $7 billion settlement if there wasn’t [cause].” The class action settlement authorized by the U.S. District Court
for the Eastern District of New York, represents two separate classes in the settlement. Members qualifying in the first class, “which includes all persons, businesses, and other entities that accepted any Visa or MasterCard cards in the U.S. at any time from January 1, 2004, to November 28, 2012,” according to a notice, will see $6.05 billion given in cash refunds. The second class, according to the notice, “which includes all persons, businesses, and entities that as of November 28, 2012, or in the future accept any Visa or MasterCard cards in the U.S.,” will see a ten basis-point reduction in interchange rates for 8 months which is equivalent to a $10 savings for every $10,000 processed. Cherney says, “An article from the April 22 Green Sheet says industry experts may receive from the first fund anywhere from $400 to $600 for every $100,000 spent” in Visa/MasterCard purchases. Merchants can determine a rough estimate of the settlement amount they may receive by multiplying the aver-
age monthly Visa/MasterCard volume by 12 (the number of months in a year), then multiplying that figure by nine (the number of years eligible in the settlement). Divide that figure by $100,000 then multiply by $400 to see a conservative estimate of the potential amount your company could receive. A fairness hearing has been scheduled for 10 a.m. September 12, 2013, at the courthouse for the United States District Court for the Eastern District of New York. “After the hearing, a claim form will be submitted to the court for approval and a claim deadline will then be set … Big box stores are currently contesting the $7.25 billion figure; the final amount, which could increase or decrease, will be finalized at the September hearing,” says Cherney. “Until this hearing, when the final [amount] is decided, unless you’re going to opt out of the settlement there is nothing you need to do at this point,” he adds. “After the hearing, claim forms will be available.”
Interested merchants can receive more information on the settlement and potential claims by visiting https://www.paymentcardsettlement.com/en. This is the official website for this settlement. Please do not rely upon other sites that may provide different and unauthorized information. If the Court grants final approval of the Class Settlement, Claim Forms will be sent to all known Class members. Claim Forms will also be available at the website or by calling the Class Administrator at the toll-free number shown below. Preregistration is optional and does not affect your rights under the settlement. Merchants with multiple locations and/or franchise locations as well as single location merchants are encouraged to Preregister. The information you provide will be used to assist the Class Administrator in the preparation of your Claim Form. In case of questions, call 1-800625-6440 or send an email to: info@PaymentCardSettlement.com.
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18 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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Chief Expands its 3rd Qtr Training Schedule Chief University, the training arm of collision repair industry leader Chief Automotive Technologies, has added 14 classes to its remaining third quarter schedule, including one new session of its flagship Design Based Repair course. A total of 26 classes will be taught in August and September at a variety of locations across the United States. Courses combine classroom learning with hands-on training using recently damaged vehicles. Class offerings are updated frequently. A partial schedule of available classes is below. For the most up-todate schedule, course descriptions and to register, visit www.chiefautomotive.com/training/chiefuniversity.asp. Technician/Estimator/Appraiser Design Based Repair Sept. 10-11 Orem, UT
Technician, Computerized Measuring Aug. 13-14 Charlottesville, VA Aug. 20-21 Kansas City, MO Aug. 27-28 Altoona, PA Sept. 10-11 Norwalk, CA Sept. 17-18 Denver, CO
Full Frame Analysis & Repair Planning Aug. 19-20 Collegeville, PA Aug. 22-23 Kansas City, MO
Unitized Body Analysis & Planning
Aug. 6-7 Troy, NY Sept. 19-20 Kansas City, MO
Estimator/Appraiser, Structural Damage Analysis Aug. 21-23 Portland, OR Sept. 10-12 Windsor, CT Sept. 24-26 Collegeville, PA Advanced Frame Analysis Aug. 6-7 Houston, TX Aug. 8-9 Walla Walla, WA Aug. 15-16 Charlottesville, VA Aug. 27-28 St. Louis, MO Sept. 17-18 Windsor, CT Sept. 24-25 Lakewood, CO
Advanced Steering/Suspension Analysis Aug. 6-7 Walla Walla, WA Aug. 8-9 Houston, TX Aug. 29-30 St. Louis, MO Sept. 12-13 Norwalk, CA Sept. 12-13 Orem, UT Sept. 19-20 Windsor, CT Sept. 26-27 Lakewood, CO
Most Chief University classes cost $655. Structural Damage Analysis is a three-day course that costs $985. To register for a class or find more information, visit www.chiefautomotive. com or call (800) 445-9262. See twitter.com/ChiefAutomotive, www.facebook.com/ChiefAutomotive, www.youtube.com/ChiefAutomotive.
GET THE TRAINING ING THA THAT ATT HAS EQUIPPED TABL ABLLY REPAIR RE 50,000+ TECHSS TO PROFIT PROFITABLY TODA AY’S VEHICLES. TODAY’S Learn complex structure repair with comprehensive, hands-on training from Chief University. Chief instructors teach the latest design-based repair procedures on today’s vehicles. Fully cer tified and associated with the I-Car Training Alliance, there’s no better training system for accurate – and profitable – collision repair.
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 19
20 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 21
AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News
Toyota Recalls 342K Pickups
MICHIGAN • OHIO • INDIANA • ILLINOIS • WISCONSIN
Tesla Model S Gets 5 Stars
Toyota Motor Corp. is recalling 342,000 Tacoma pickup trucks to fix defective seat belts. The models involved are Tacoma Access Cabs equipped with rear-hinged rear doors, built from 2004 to 2011. Toyota said a screw could come loose in the front seat belts on some of those trucks, causing the belts to malfunction. If the screws loosen completely, Toyota said the seat belt pre-tensioner and the retractor spring cover could detach from the seat belt retractor, which can affect retractor and pre-tensioner performance.
The Tesla Model S got a rave review from the National Highway Traffic Safety Administration’s crash test. NHTSA gave the Model S its top fivestar rating for each safety category: front-end crash, side crash and rollover crash. NHTSA had not previously tested the Model S or Tesla’s other model, the Tesla Roadster. While triple 5-star ratings are not rare, there are plenty of models that do not get that top score, an accomplishment for a new automaker that has not had years of vehicle designs and safety measures to fall back on.
GM Wants to Improve Volt Electric Range by 20%
Chrysler and Ford to Exhibit at 2013 ASRW Rotunda
General Motors, working on the next generation of the Chevrolet Volt plug-in hybrid, is aiming to improve the electric-only range of the car by at least 20 percent, said CEO Dan Akerson. The first-generation Volt, which was introduced in 2010, can travel an estimated 38 miles on battery power before a gasoline engine engages. Akerson wants more, as he told Automotive News. “We hope to extend that significantly,” Akerson said during an interview on Bloomberg Radio to be broadcast in September. “For something to be significant to me, I've got to get at least a 20 percent improvement in performance. If we can get it up to 50, 60 miles or more, we will, but that's going to be another three to four years out.”
BMW Considering Mexicobased Assembly Plant
BMW is studying expanding its North American manufacturing footprint with an assembly plant in Mexico. Ludwig Willisch, CEO of BMW of North America, said that the automaker has been in preliminary discussions with “local governments” in Mexico about the possibility of building a factory in their districts. He declined to specify which areas of Mexico that BMW is studying or which vehicles the automaker would build there.
Chrysler will exhibit at 2013 ASRW in the all-new OEM Rotunda area on the show floor. “We are so pleased to welcome Chrysler and Mopar back to ASRW, and are grateful for their support of this year’s show,” said Dan Risley, ASA executive director. “We are focused on making changes to ASRW to provide exactly what our attendees want, engaging with the OEMs on the show floor. Their presence is critically important to the success of the show.” Darrell Amberson, AAM, ASA chairman, said, “Our industry starts and stops with the car manufacturers. Their support of the show is a clear indication of their commitment to support those who repair their vehicles.” Ford will also return to ASRW this year. Chrysler and Ford will be joining I-CAR in the OEM Rotunda. The OEM Rotunda is one of the newest additions to the ASRW show floor. “We value the opportunity to meet face-to-face with the automotive service/repair community and discuss Chrysler and Mopar’s role in service information, parts procurement and new vehicle technologies,” said Patrick Dougherty, vice president, Mopar Sales and Field Operations. For more information, please visit asrwevents.com.
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22 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Honda to Invest $180M more in Anna, OH, Engine Plant Honda North America intends to invest another $180 million in its Anna, Ohio, engine plant to boost aluminum die-casting and engine parts production. Honda said at the 2013 CAR Management Briefing Seminars that the investment will support “engine parts production related to the new Honda Earth Dreams Technology engines and transmissions.” Earth Dreams is Honda’s umbrella classification for a new generation of more fuel-efficient high-output engines that range in size from 1.3 liters to 3.5 liters. The Earth Dreams concept was unveiled in late 2011. It includes gas and diesel engines, a hybrid engine system, a battery-powered electric drive system and a continuously variable transmission. The investment follows other moves to bring parts of the Earth Dreams initiative to Honda’s Ohio plants, including a new direct-injection engine and the pulley components that are at the heart of the new CVT transmission. Honda also said it will invest $35 million to build a 160,000square-foot office and technical training center in Marysville, Ohio. The new building will open in fall 2014.
Toyota Expects to Sell 2.25M Vehicles in U.S. in 2013 Toyota Motor Sales U.S.A. has again increased its 2013 sales target. At Toyota’s recent national dealer meeting in Atlanta, Bob Carter, senior vice president, told dealers he expects Toyota and Scion divisions to sell more than 2 million units this year. Including Lexus, the tally should exceed 2.25 million. Toyota has increased its industry forecast to 15.5 million units for the year. At the beginning of 2013, Toyota predicted the industry would finish around 14.7 million sales. In April, Toyota bumped its 2013 industry estimate to 15.3 million.
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September 2013
BMW i8 Series will be first to use Corning’s Gorilla Glass
The i8 will be the world’s first volumeproduced vehicles to be equipped with chemically hardened glass or Gorilla Glass as it’s called in the smartphone world. It will be used to separate the passenger compartment and trunk of the i8 and is comprised of two layers, each 0.7 millimeters thick with acoustic sheeting between. Gorilla Glass is the registered trademark for an alkali-aluminosilicate sheet toughened glass manufactured by American glassmaker Corning, Inc. Engineered for a combination of thinness, lightness, and damageresistance, it is used primarily as the cover glass for portable electronic devices including mobile phones, portable media players, laptop computer displays, and some television screens. It is manufactured using ion exchange to produce compressive residual stress at the surface to prevent cracks from propagating.
Mercedes-Benz to Offer Head-up Windshield Display
Mercedes-Benz has done a 180 on head-up display and now plans to offer the feature on its redesigned S class and C class. The redesigned Sclass flagship arrives in showrooms in September. Head-up display is expected to be added as an option to both the S class and C class in the fall of 2014. Mercedes’ system will project speed, navigation data and certain warning lights onto the windshield. The system likely will include a warning function if a pedestrian is detected by the vehicle’s night vision system. Today head-up display systems are offered by several carmakers and the technology comes in various degrees of sophistication. BMW launched head-up display in 2003. Audi offers it on the A6 and the A7. Mercedes is somewhat late to the game. Daimler engineers have previously thought headup display to be a potential driver distraction, but this assessment has been reversed.
Nissan Sees Triple Last Year Leaf Sales, Boosts Output
Nissan plans to begin building more all-electric Leafs as dealers ask for more of the once slow-selling car. Retailers have been selling about 2,000 Leafs a month which is triple its volume of a year ago, before the car was moved into U.S. production. Through July, Nissan sold 11,703 Leafs in the United States—a 230 percent increase over the 3,543 units sold during the seven months last year. The company sold 1,864 of the cars in July, compared with 395 during July 2012. Nissan is already taking measures to increase its output of electric motors from its engine factory in Decherd, TN, Bill Krueger, Nissan Americas vice chairman. Battery prices worldwide have decreased Nissan’s outlay for the Leaf, allowing it to check costs. Nissan is the only North American automaker that produces an all-electric car, its battery module and the electric motor that powers it. Competitor GM Volt has announced a $4K rebate on the 2013 Volt and $5K on the 2012, of which it has 6000 in inventory and says it will carry over to the 2014 Volts. Lease prices have also been reduced.
GM Adds Production Week on Cruze, Yr on Yr up 70%
General Motors has added a week of production at its Chevrolet Cruze factory in Lordstown, Ohio, to meet growing U.S. demand for the compact car. The Lordstown Assembly plant was originally scheduled to be closed the week of Aug. 26, UAW Local 1112 said on its Web site. Now, workers will continue to assemble the cars “as normal” that week, the union local said. “Sales have been brisk,” said GM spokesman Annalisa Bluhm. “We didn't want to lose momentum so we decided to abstain from taking the week off.” In July, U.S. sales of the Cruze shot up 70 percent to 25,447 vehicles over July 2012, according to the Automotive News Data Center.
Hyundai Recalling Santa Fes
Hyundai is recalling certain model year 2013 Santa Fe Sport vehicles manufactured July 13, 2012, through March 12, 2013; and equipped with 2.4 liter engines, due to a manufacturing issue, the right front axle shaft may fracture, resulting in a loss of power to the wheels. Without the parking brake applied, it may roll away.
Hyundai to Recall 239K of its 05-10 Sonatas in ‘Rust Belt’
Hyundai is recalling certain model year 2006-2010 Sonata vehicles manufactured March 1, 2005, through January 21, 2010; and model year 2006-2011 Azera vehicles manufactured September 27, 2005, through November 22, 2010 originally sold in, or currently registered 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. Road salt and water can enter portions of the rear crossmember, leading to corrosion of the crossmember steel. This may lead to detachment of one of the rear control arms. Control arm separation may suddenly change the rear wheel alignment, affecting the handling of the vehicle, increasing the risk of a crash. Hyundai will notify owners, and dealers will repair or replace the crossmember assembly. The recall is expected to begin by the end of September 2013. Hyundai’s recall number is 113.
BMW to Recall 1,500 09-10 X5s for Fuel Filter Heaters
BMW is recalling certain model year 2009-2010 X5 xDrive35d vehicles equipped with a diesel engine and manufactured from June 13, 2009, through November 9, 2009. The fuel filter heater, which is used for warming up the diesel fuel during vehicle operation at low outside temperatures, could experience an electrical overload condition and become permanently activated. The fuel filter heater could remain activated even when the ignition is off and lead to a dead battery. The unit could also overheat, possibly resulting in a vehicle fire. BMW will notify owners, and dealers will replace the fuel filter heater, free of charge. The safety recall is expected to begin in August 2013. Owners may contact BMW customer relations at 1-800-525-7417. This recall is an expansion of safety recall 11V-441. Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-3274236 (TTY 1-800-424-9153), or go to www.safercar.gov.
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 23
Columbia, SC, and Dallas, TX, to be Next Sites of SherwinWilliams Collision Facility Digital Marketing Seminar
The Sherwin-Williams Automotive Finishes A-Plus™ Network University and Summit Software and Marketing Solutions will be taking their successful Digital Marketing Advanced Business Class—specifically created for collision repair facilities—on the road Sept. 5, 2013 to Columbia, S.C. (Columbia Marriott) and Oct. 9, 2013 to Dallas (Sherwin-Williams Training Center in Grand Prairie, Texas). Facilitated by Frank Terlep the program is designed to meet the challenges body shop decision-makers face in today’s rapidly changing digital and information age. The workshop is recommended for all collision shop owners and managers, and those involved with marketing shop services to their customer and prospect base. The workshop will include the following strategies and tactics: ● What is digital marketing? ● Why is digital marketing a requirement for success in today’s world? ● Who is a shop’s potential digital marketing audience? ● What benefits can a shop expect to receive from digital marketing? ● What’s the importance of a digital marketing database? ● What digital marketing tools are available? ● Why your website is your online lobby● SEO, PPC, SEM, and other online marketing tools ●
Charging System Maker Says it May File Bankruptcy
Ecotality, Inc. said Aug. 12 that it may need to file for bankruptcy, citing adverse developments that may impact its ability to meet ongoing obligations and also fund anticipated operating losses. The company’s shares are down more than 74 percent in the regular trading session. The San Francisco-based maker of electric vehicle charging and energy storage systems said in a filing with the Securities and Exchange Commission (SEC) that while it is exploring options for a restructuring or sale of its entire businesses or assets, it may file for bankruptcy as part of any such process in the very near future. The company said that recent adverse developments include, among others, failure to attain sales volumes of its commercial electric vehicle service equipment or EVSE that were needed to support the company’s operations in the second half of 2013. In addition, the U.S. Department of Energy informed Ecotality that it was suspending payments to the company in connection with the EV Project. The company noted that the suspension has had a significant impact on receivables that were anticipated to be collected from the DOE.
Email, Text messaging, Smart phones; phone apps ● Mobile internet marketing ● Online reputation management; Customer reviews and ratings ● Digital ads, promos and coupons: Groupon, Living Social and other social commerce sites ● Location based services and marketing ● A review of the latest social media: Facebook, Twitter, YouTube, Google+, Yelp, and others ● Using digital marketing tools to generate revenue and profit from previous customers ● The importance of digital marketing processes ● Who in the shop should “do” the digital marketing ● How much time and money should a shop spend on digital marketing ● Creating your digital marketing strategy and action plans The Sherwin-Williams Automotive Finishes A-Plus Network offers several social and digital media partner programs, in addition to co-hosting the digital marketing advanced business management course. Register online at www.sherwin-automotive.com /customer-programs-services/a-plusnetwork/calendar-of-events/ for the upcoming Columbia, S.C. or Dallas digital marketing workshops or contact Francine Schaefer at (216) 332-8524. For more information on the A-Plus Network, call (800) 798-5872.
Mitchell Brings 5 New AddOns to Repaircenter Tools
Mitchell has announced the release of five new add-ons to the RepairCenter ToolStore. The company says these add-ons bring extensive functionality from third-party partners into Mitchell’s RepairCenter platform. They will be joining a wide selection of other add-ons in the ToolStore catalog, where all the addons can be browsed and added instantly. “Shops will now have even more expanded and powerful capabilities at their fingertips with Mitchell’s RepairCenter through their ToolStore add-ons,” said Brian Elmi, senior product manager, auto physical damage solutions. “The third-party services that shops use on a day-to-day basis will now be available to them all in one place, through easy-to-use add-ons in their RepairCenter. With these new add-ons, shops will be able to do everything from shipping and ordering parts, to managing their parts inventory with third-party services in their RepairCenter.”
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24 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
NABC Award of Distinction Nominations Still Open
The National Auto Body Council is still accepting nominations for the 2013 year. Do you know someone who deserves this great award? Someone who has gone out of their way to promote the image of the Auto Body industry. They could be a vehicle manufacturer, supplier/vendor, educator, insurer, independent appraiser or trade association. Send all nominations in before September 15, 2013! The Award of Distinction has been given for bravery, philanthropy, charity, and selfless acts of kindness. It transcends the rigors of daily business to uncover those helping the world around them without a thought of recognition for themselves. Any individual, business organization, or group employed in a collision industry-related segment such as collision repair facility, manufacturer, supplier/vendor, educator, insurer, independent appraiser or trade association is eligible. The winner will receive a trip for two in the continental US, 2 nights stay, and some spending money, with the whole trip package capped at $1,500. For more information contact: Kent Seavey, NABC Award Chairman, Phone: (201-448-5158) or e-mail: KBseavey@gmail.com.
Body Shop Improvements May Earn Image Award
The National Auto Body Council is still accepting Body Shop Image Award nominations for the 2013 year! The competition, which runs through early-September, applies to any body shop remodeling project completed during the calendar year 2013 and also 2012! One winner and three runners-up will be recognized. Each will receive visual recognition on the NABC website. The name of every facility entering the competition will be listed on the website, as well. In addition, the winner will receive a trip for two in the continental US, 2 nights stay, and some spending money, with the whole trip package capped at $1,500. Those wishing to submit a shop for consideration should submit a nomination form to the NABC with three exterior images and one interior image of the facility (before and after pictures, so eight total images should be submitted). A form and a complete description of the nominating process is available at http://www.autobodycouncil.org/files/NABC_nominate_imageaward.pdf
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 25
OSHA Focused on Preventing Summer Heat Illness, Isocyanates Ongoing Concern
Heat Illness OSHA has made heat stress and its impacts on workers a priority problem this summer. Since 2008, there have been several heat related fatalities throughout the country, including some in southern Wisconsin and northeastern Illinois. As a result, OSHA has implemented a nationwide Heat Illness Prevention Campaign. Heat stress results when the body cannot naturally cool itself. As a consequence, a variety of heat illnesses can occur, ranging from minor heat rash to serious—and sometimes fatal—heat stroke. Some people are more susceptible to heat illness than others. Persons who work outside and/or perform strenuous work activities in heavy clothing are most at risk for developing a heat-related illness. The protection of these more susceptible workers is a priority for OSHA. OSHA’s heat awareness program is summarized by “Water, Rest, Shade.” Specifically, if workers are in an environment that could produce heat stress, OSHA recommends that they: ● Drink water every 15 minutes, even if not thirsty; ● Rest in shade to cool down; ● Wear a hat and light colored clothing;
● Learn the signs of heat illness and what to do in a heat-related emergency; ● Keep an eye on fellow workers (in stressful conditions a buddy system is recommended); and; ● Acclimate to conditions slowly. ● Use sunscreen protection with a sun protection filter (SPF) of 30 or more.
Isocyanates Isocyanates are chemical compounds containing the isocyanate group (–NCO). Isocyanates in the form of raw materials are incorporated into numerous polyurethane products, such as foams, paints, spandex fibers, insulation materials, car seats, mattresses, under carpet padding, packaging materials, polyurethane rubber, adhesives and fiberglass. Many industries in addition to collision repairers use polyurethane products (and isocyanates), including automotive interiors, medical care, printing, plastics, mining, textiles, paints, food, building construction and electronics. Thus, isocyanates are widely used and are found in many of the products we use. The health effects of isocyanates include irritation of skin and mucous membranes, difficulty breathing and
chest tightness. OSHA and similar regulators have developed occupational exposure limits for eight isocyanate components. One isocyanate, 2,4-toluene diisocyanate, has been classified as reasonably anticipated to be a human carcinogen. OSHA and its counterpart agencies also have prepared several reference documents addressing isocyanates. On June 20, 2013, OSHA released a new Instruction for the Field Operations Manual (Instruction Manual) regarding isocyanates. The Instruction Manual describes policies and procedures for implementing a National Emphasis Program on Occupational Exposure to Isocyanates to identify and reduce/eliminate the incidences of adverse health effects associated with occupational exposure to isocyanates. OSHAʼs Instruction Manual sets forth a system that targets multiple industries and focuses on evaluating inhalation, dermal and other routes of occupational exposure to isocyanates. If you have employees who work with polyurethane (and isocyanates), you should consult the Instruction Manual. See https://www.osha.gov/OshDoc/Directive_pdf/CPL_03-00-017.pdf
Dealerships Continued to Lose Body Shops in 2012
According to the Mitchell International Third Quarter 2013 Industry Trends Report, the number of dealership body shops continues to drop. Citing research from the National Automobile Dealers Association (NADA), Mitchell estimated that 34 percent of dealerships featured onsite body shops in 2012, a decline from the 36 percent estimated to have had shops in 2011. NADA reported approximately 6,314 dealers operating on-site body shops in 2011. By those numbers, Mitchell estimates there were 5,996 operating in 2012. This is a sharp decline from the 8,692 shops NADA estimated to be in operation back in 2006. Based on a preliminary estimate of independent repair facilities in the U.S., Mitchell pegged the total collision repair facility population at 40,448 facilities in 2012 with approximately 14.8 percent being onsite dealer facilities. Despite the decreasing number of shops, the total amount of bodywork performed by all new-vehicle dealerships was up slightly from $6.78 billion in 2011 to $6.9 billion in 2012.
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—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.
Historical Snapshot
September Retrospective on the Collision Industry with John Yoswick
20 years ago in the collision repair industry (September 1993) In a unanimous vote, the Automotive Service Association (ASA) Collision Division Operations Committee rejected a proposal by CCC Information Services to have ASA endorse the new CCC Collision Center Connection program. The CCC marketing program requires a shop to pay $499 verification fee to sign up for the program. The business is then charged a $30 to $50 referral fee for each insurance claim directed by CCC to the shop. “Quite simply, the costs for adjusting a claim are the responsibility of the insurer, and this attempt to shift this burden to the repair facility is clearly not in the best interests of our members, the consumer or the repair industry,” said Bob Anderson, chairman of the ASA committee. “ASA has been involved in extensive industry research that con-
cludes that the claims handling system utilized today by most insurers is archaic and inefficient,” Anderson said. “This (CCC) referral program in its current form does little to alter the status quo. Since this thirdBob Anderson, 1993 party intervention does nothing to streamline the claims handling process, it is likely that even more friction (costs) will occur.” — from Automotive Dateline
15 years ago in the collision repair industry (September 1998) A court ruling in West Virginia gives that state one of the strictest laws in the country regarding parts used in collision repair. Judge Charlie King wrote in a court opinion that insurance companies must pay for new OEM parts to fix body damage on newer vehicles.
King ruled that repairs on vehicles still covered by a manufacturer’s warranty and less than three years old need to be made with new factory parts. “I think it’s a real good decision for consumers in West Virginia,” Assistant Attorney General Doug Davis said. “If you get into a wreck in a car, insurance companies can’t force you to accept junkyard parts.” The ruling apparently settles a heated dispute among insurance companies, automotive recyclers and the state Attorney General’s office. The case was brought to the court by a consortium of insurance companies that wanted a judicial interpretation of s state law. That law requires the use of “genuine crash parts,” and the insurance companies contended that this included new parts and OEM parts taken from wrecked vehicles. The state Attorney General’s office challenged that interpretation. ► A judge in West Virginia last
year issued a injunction against Liberty Mutual to force the insurer to stop using remanufactured, reconditioned and used parts in violation of this state law; the judge also ordered the insurer to release the names of vehicle owners who had their vehicles repaired with salvage parts.
10 years ago in the collision repair industry (September 2003) Allstate Insurance Company and Sterling Collision Centers have filed a lawsuit challenging the new Texas law prohibiting insurers from purchasing further interest in collision repair shops. In the pleading, Allstate claims that HB 1141 “stops dead in its tracks a promising, market-based mechanism for improving customer satisfaction, providing efficient, cost-effective auto collision repair services, and eliminating incentives for waste and fraud in auto repair estimates and ac-
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tual repair work.” Allstate asserts that forbidding insurers from acquiring, expanding, supporting or promoting its interstate network of Sterling collision repair shops is a violation of the corporation’s protected free commercial speech. The real purpose of HB 1131, according to the lawsuit, is “to turn the American business model—where competition brings out the best—on its head by protecting and insulating local Texas autobody shops from having to compete with Allstate’s (or any other insurance company’s) own collision repair operations.” ► As reported in Autobody
News. The legal battle over the Texas law lasted until 2008 when the Texas Supreme Court rejected Allstate’s request to consider the insurer’s challenge to the law. ASA’s Bob Redding predicted that other states, which had previously considered legislation similar to that of the Texas bill, would pass such restrictions on insurerowned shops after the Texas law was upheld, but none have. Unlike other larger MSOs, Sterling has added relatively few new shops since 2008.
5 years ago in the collision repair industry (September 2008) Following a similar decision by State Farm back in June, Allstate an-
nounced this month it would no longer specify full-body sectioning (or “clips”) on its estimates. “Furthermore, only when a collision repair facility is confident that a full-body section is the appropriate repair, has the proper training and equipment to facilitate a quality repair, and has the approval of the customer or claimant for such repair, will the adjuster authorize it,” the Allstate policy states. Allstate’s Tech-Cor research center developed full-body sectioning procedures in the 1980s, but the insurer now says “changing vehicle construction techniques” and “the varying metallic composition of some modern
business employers who are working to improve their workplaces,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “We remain committed to encouraging participation in this program.” The On-site Consultation Program offers free and confidential safety and health advice to small- and mediumsized businesses across the country, with priority given to high-hazard work-
sites. Employers who successfully complete a comprehensive on-site consultation visit, correct all hazards identified during the visit and implement an ongoing safety and health program to identify and correct workplace hazards may achieve status in OSHA’s Safety and Health Recognition Program (SHARP). Exemplary employers who receive SHARP status receive an exemption from OSHA’s programmed inspection schedule during a specified
vehicles may prevent collision repairers from facilitating a quality repair” using such procedures. As with State Farm, Allstate had been pushed on the issue of clips by Pam Pierson of Princeton Auto Body in Princeton, Ill. Just days before Allstate’s announcement, the Alliance of Automotive Service Providers of Illinois said that based on Pierson’s efforts, it had appealed to Illinois State Representative JoAnn Osmond to ask the state Attorney General to provide a legal written opinion on the use of full-body sectioning. ► from CRASH Network (www.CRASHnetwork.com), September 22, 2008
OSHA Withdraws Proposed Rule Amending on On-site Consultation Program Citing Concern About Employer Participation
The Occupational Safety and Health Administration (OSHA) announced its decision not to amend its regulations for the federally-funded On-site Consultation Program citing concerns that proposed changes, though relatively minor, would discourage employers from participating in the program. “The On-site Consultation Program, including recognition through the Safety and Health Recognition Program, is a valuable way to assist smallContinued from Page 16
Continued from Page 6
Schubert conceded that, as was pointed out earlier in the meeting, no one is forcing a shop or vendor to use the system. But he said just as parts manager Priest said State Farm jobs account for at least 20 percent of his collision parts sales, Select Service is a significant part of his repair shop’s business. “This is just one in a long line of control we have lost in our shops,” Schubert said. “We’re a Select Service shop in defense as much as anything else. You can act like we’re stupid for doing it, and by gosh, I might agree with you. But sometimes the alternative is even uglier.”
of those proceeds for personal use, Assistant U.S. Attorney Bill Harris said in the indictment. Scott and his companies were sued in Ohio by the Washington County Board of Developmental Disabilities over a $95,000 self-funded health insurance plan it purchased for its employees in 2006. An Ohio judge found it did nothing but fund a Ponzi scheme, and ordered Scott’s companies to pay $200,496 for unpaid claims and an additional $400,000 in punitive damages. “He was robbing Peter to pay Paul,” alleged Ethan Vessels, the board’s lawyer. “My great worry and belief is he took the money he was (allegedly) pilfering and squirreled it in an account overseas.” Scott faces up to 10 years in prison on each of the 42 counts and $12 million in restitution. Williams also faces up to 10 years in prison on each of the 19 counts she faces and restitution that is yet to be determined.
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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.
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period. The proposed amendments would have provided clarification of the length of the exemption period provided to “recognized” sites and the initiation of certain unprogrammed inspections at both sites that have achieved recognition and sites undergoing a consultation visit. For more about the OSHA OnSite Consultation Program at: www.osha.gov/dcsp/smallbusiness/ consult.html.
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American Honda Launches Body Repair News American Honda has announced that the first two editions of Body Repair News, a new collision industry communication covering new Honda and Acura model body repair information is now available. The inaugural issues cover the 2014 Acura MDX and 2013 Honda Accord. Copies can also be accessed by independent shops at American Honda’s Service Express website at techinfo.honda.com or techinfo. acura.com. Click on “Industry Position Statements & Body Repair News,” and then scroll down. Body Repair News, free to independent collision repair shops, are part of a series of American Honda publications that will be created to support new models that are constructed with significant amounts of high strength steel, and various other new technologies. Body Repair News publications are also planned for the following new models that have already gone on sale: ● 2014 Acura RLX ● 2014 Honda Odyssey. An edition of Body Repair News will be issued for every future new model. Any minor model
change where significant body design changes are made will also have a body repair publication issued. This publication is being issued as part of American Honda’s current initiative to enhance the ability of body shops to make safe and complete collision repairs on Honda & Acura vehicles through easier access to an increasing amount of collision repair information. The company notes that Body Repair News summarizes new body and vehicle technology that may affect collision and other body repairs. It is not intended to replace the detailed information contained in the body repair and service manuals. Rather, it simply helps collision repair industry personnel understand why using the factory service information is so important to make safe and complete repairs.
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UniCure Spraybooths Joins CREF Leadership Circle
UniCure Spraybooths has joined the Collision Repair Education Foundation’s donor Industry Leadership Circle by donating more than $10,000 worth of equipment and uniforms for collision students. Wiregrass Georgia Technical College in Valdosta and Tennessee Technology Center in Shelbyville both received donated equipment that included intake and exhaust filters, JetAir waterborne fans, and additional miscellaneous items. UniCure will also sponsor 100 sets of Cintas work shirts and pants uniforms for collision students. “It is a privilege to work with these schools. I am glad that we are able to provide them with products and support that will enhance their paint departments. It is always rewarding when you get to give back,” said Allen Jenkins, president of UniCure Spraybooths/Interstate Marketing Corporation.
AUTODATA has a New Manual
AUTODATA has released 2013 Maintenance Reminder Reset Procedures. The new manual guides technicians through the specific steps required to reset vehicle maintenance reminder alerts, which must be reset after any maintenance work.
U.S. Auto Parts Network Has Loss Over 2nd Quarter 2012
U.S. Auto Parts Network has reported net sales for the second quarter ended June 29, 2013 of $67.9 million, compared with net sales of $80.7 million for the second quarter ended June 30, 2012, a decrease of 15.9 percent. Second quarter 2013 net loss was $9.6 million, compared with second quarter 2012 net loss of $1.7 million. “We believe in the strategies that we have implemented to return to profitable growth and increase customer traffic, and expect these strategies to overcome the challenges of the past year,” said CEO Shane Evangelist.
CIECA Launches CIECA-TV
The Collision Industry Electronic Commerce Association (CIECA) introduces of CIECA-TV. CIECA will publish videos monthly, covering a range of topics from news and events to actual implementation case studies from collision industry leaders. The first production video is available on CIECA’s YouTube channel and provides an overview of CIECA. More information can be found on the CIECA website or by emailing CIECA executive director Fred Iantorno at fred@cieca.com.
Herkules Wins IAMG 2012 Vendor of the Year Award
Herkules Equipment Corporation was awarded “Vendor of the Year” by the International Autobody Marketing Group (IAMG) at the annual IAMG Vendor/Warehouse Distributor meeting banquet. “Herkules Equipment Corporation is a top-notch proactive partner to the Group and we honor them for their outstanding service, support and professionalism.” says Lloyd Fields, President of IAMG (International Autobody Marketing Group). “They offer exceptional Herkules IAMG products, continAward ued marketing efforts, and excellent value to our industry with a dedicated commitment to their customers. We are pleased to award them with our 2012 vendor of the Year Award!” Kevin Prost, Vice President of Herkules, accepted the award from Lloyd Fields. “We are deeply honored to be presented with this award and we are proud to be part of a very special industry. This award recognizes the efforts of Russ Terry, our National Sales
Manager, Kris Fairbrother, our Director of Marketing, our sales reps, and our production staff that build high quality products here in the USA.” The IAMG is a leading, full-service corporation that delivers strategic solutions and high-quality products to the automotive aftermarket since 1992. As a leader in Paint, Body & Equipment distribution, IAMG constitutes 14 individual warehouse Members across the United States and Canada, 47 distribution centers, and over 350 salespeople, according to their website, www.iamgaz.com. Herkules Equipment Corporation, established in 1984, is a leading manufacturer for the Automotive Paint & Body Repair industry, having designed, manufactured, and patented the first Paint Gun Washer. The company has been manufacturing quality vehicle lifts and scissor lift tables for close to 30 years, providing many different industries ergonomic solutions for countless applications. Herkules also supplies Air Jacks, Handling Equipment, and Crushing Equipment. For more product information, please contact Herkules at 800-4444351, or at info@herkules.us or visit their website at www.herkules.us.
30 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
PPG MVP Conference Registration is Now Open
PPG has announced that registration is now open for the Fall MVP Business Solutions Conference at the Omni Amelia Island Plantation Resort Sept. 810 in Amelia Island, FL. Expert speakers from both outside and inside the collision repair industry will discuss a mix of topics, and there will be numerous networking opportunities with other collision repair professionals. “The pace of dynamic change in the collision repair industry is increasing at a light-speed rate, and we know that our customers’ needs and requirements are growing at a similar pace,” says Jim Berkey, director of MVP Business Solutions for PPG. “The business acumen, the vehicle technology, production processes and leadership knowledge all are playing an elevated role in performance, which makes it imperative that we develop and deliver the educational elements that assist our customers drive to out-perform competition and be best-in-class in their marketplace.” The conference schedule is highlighted by prominent keynote speakers Scott Deming, David Horsager and Michael Hoffman. In his keynote address titled “Perceptual Reality,” Deming, a customer service and emotional brand building guru, will challenge the audience to know what their customers or clients are
thinking: how they perceive your company and your service and using their perception as reality, not yours. He will also discuss the impact of using outside vendors or suppliers to serve your customers and how to keep them tightly within your brand strategy, brand integrity and service commitment. Horsager is an author, entrepreneur, professor, and award-winning keynote speaker who researches and speaks on the bottom-line impact of trust. His presentation discusses why trust has the ability to accelerate or destroy any business, organization or relationship. With greater trust comes greater innovation, stronger brands, increased retention of good people, higher morale, multiplied productivity, better results and a bigger bottom line when you gain the “Trust Edge.” “Igniting Performance in the Tornado of Business” is the closing keynote headline, and Hoffman’s real-world approach will deliver concepts and topics such as “Sales Secrets of the One Percenters,” “Anything You Do Is Everything You Do” and “Coaching within the Tornado: Ignition for Leadership.” The conference is open to owners and managers of collision centers using PPG Refinish products. MVP conferences are biannual events by invitation only.
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Progressive Evaluates Snapshot Campaign, Expresses Surprise that 40% Say ‘No Way’ Progressive Corp., the fourth-largest U.S. auto insurer, is searching for the right message to attract customers to its Snapshot product that tracks a person’s driving to set rates, Chief Executive Officer Glenn Renwick said. Surveys of prospective customers have shown that “you get about 30 percent of people saying, ‘Yeah, why not?’; you get another 30 percent of people saying, ‘Maybe, I need to know more’; and you get about 40 percent of people saying, ‘No way in hell,’” Renwick said on a conference call to discuss results at the Mayfield Village, Ohio-based company. Progressive has sought to build acceptance for Snapshot after a campaign that Renwick called “very acceptable, but short of a breakout” in a letter to investors this week. The insurer has been counting on the technology to encourage safer habits behind the wheel and help identify the most valuable customers. Some have shunned the product, citing privacy concerns, Renwick said. Selling Snapshot has been “a bigger burden” than many in the company would have assumed given that it can lower customers’ rates, he said. “Intellectually, I kind of go ‘Why wouldn’t 100
percent of people take this option?’” The insurer has increased the percentage of its customers at its direct channel who have tried Snapshot to about 35 percent from 20 percent two years ago, he said. Part of that gain has come from advertising how people who don’t take advantage of the product could be subsidizing others. In one “Rate Suckers” television spot, a spokeswoman says people who behave worse behind the wheel make “driving more expensive for the rest of us.” The base of premiums from the product total $1.8 billion, Progressive said in a report on second-quarter results. Premium revenue from individual clients was about $14.4 billion in 2012, a total that includes policies covering autos, motorcycles, watercraft and other vehicles. The direct channel includes customers who sign up by Internet, rather than through agents. Renwick said there is more work to be done on Snapshot. “We’re body-punching here,” he said. “We’re trying to find the message that actually moves the needle. I think we now understand how significant a burden it is to try to educate consumers to do something that was not the natural
buying or engagement process.” Progressive has sought an edge over competitors as it fights for an increasing share of the $175 billion in annual U.S. auto insurance premiums. The company has gained scale along with the GEICO unit of Warren Buffett’s Berkshire Hathaway Inc. in recent years by emphasizing low prices and selling directly to consumers over the Internet. Snapshot helped open a new front in the competition for customers. Progressive patented the device and has been asserting its intellectual property rights. It struck a deal in June with the United Services Automobile Association to license the technology. Advertising costs for auto insurers have shot up in recent years. GEICO spent more than $1 billion in 2012, according to data compiled by SNL Financial. Allstate Corp. was No. 2 at $828.8 million, followed by State Farm Mutual Automobile Insurance Co. at $777.9 million, followed by Progressive with $526 million, the data show.
3M’s New Body Protection System Cuts Time Needed on Panels
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Honda Aces Crash Test, Kia and Nissan Less So
The Honda Civic earned top scores in the Insurance Institute for Highway Safety’s new “small overlap” crash test, but similarly sized cars from Kia and Nissan fared poorly. The Institute put 12 new compact cars through the test, including two- and four-door versions of the Civic and two Kia models. The Kia Soul and Forte, as well as the Nissan Sentra, earned the worst possible rating of “Poor” in the test. Kia and Nissan both pointed out that their cars have performed very well in other Insurance Institute and government crash tests. Kia also noted that the “small overlap” crash test “goes well beyond federal requirements.” Both automakers said they would review the test results as they seek to make further safety improvements in their cars. This was the first time compact cars were subjected to this new type of front crash test. In it, the cars are propelled at 40 miles an hour and strike a crash barrier with just one quarter of the front bumper on the driver’s side. That concentrates impact forces into a small area that often falls outside crash protection structures built into the cars. The impact also spins the car violently. The test mimics a type of impact that ac-
counts for nearly a quarter of all front crashes with serious or fatal injury to front seat occupants. “In the worst cases safety cages collapsed, driver airbags moved sideways with unstable steering columns and the dummy’s head hit the instrument panel,” David Zuby, the Institute’s chief research officer, said of the test results in a written statement. Also, side curtain airbags sometimes didn’t deploy or they didn’t provide coverage far enough forward in the car to be of any help, he said. In the case of the two Kia models, the cars’ seatbelts spooled out too much, allowing the crash test dummy to move too far forward. At the same time, the side curtain airbags didn’t provide protection that far forward in the car, allowing the dummy’s head to hit the windshield pillar and instrument panel. The Kias’ steel structure also provided insufficient crash protection in the tests, according to the Institute. When the IIHS put a group of luxury cars through the same test in August, the first time results for the new test were released, only two cars out of 11 got top marks. The Institute has also put mid-sized cars and small SUVs through the new test.
New Test Fails Half the Small Cars Tested
Six of the cars tested in the new IIHS test, most of which were 2013 models, were rated “poor” or “marginal.” GM’s Chevrolet Sonic and Cruze each received marginal scores, while Kia Motors Corp’s Soul and 2014 Forte were rated “poor” in the results released by the Insurance Institute for Highway Safety. Nissan Motor Co’s Sentra also was rated “poor,” while Volkswagen AG’s Beetle was ranked “marginal.” The IIHS increased the rigor of its tests last year to include crashes that involve only a front corner of a vehicle. The insurance group said nearly one-fourth of U.S. front-of-vehicle crashes that result in serious injury or death involve only a single corner that strikes another vehicle or an object like a tree or utility pole. The IIHS continues to score vehicles on side, rear, rollover and front-end crashes that impact more than just a corner. “This is a challenging new crash test and it’s not surprising that some vehicles are earning marginal and poor ratings,” IIHS spokesman Russ Radar said of the small overlap front crash test. “This crash scenario doesn’t lend itself to a Band-Aid fix so for most manufacturers the countermeasure will have to be built in when there’s a
full redesign,” he added. Vehicle manufacturers in the U.S. market often design and engineer their models to score well on IIHS safety tests and use the results in their marketing. “It matters because in today’s world cars are so competitive that all you need is a small flaw and your competition can exploit it,” Kelley Blue Book senior analyst Karl Brauer said. Most of the 12 small cars tested were already in production before the IIHS increased the rigor of its front crash test last year. However, Radar said IIHS alerted the companies to the work the group was doing on small overlap research in 2009. The specifications of the test were not finalized until the last year, which is late in a car’s development process, Brauer said. All automakers will eventually redesign their cars to meet the standards to pass the new crash test, he said. In the tests, IIHS crashes a vehicle at 40 mph into a 5-foot-high barrier on the driver’s side that overlaps one-quarter of the vehicle’s width. The small car segment was the fourth group of cars rated using this new test, and most of the groups have fared equally badly.
NABC is Accepting Nominations for Seven Open Board Seats
The National Auto Body Council (NABC) is now accepting nominations for seven open board seats to be elected at its upcoming Annual Meeting at the SEMA Conference this Fall in Las Vegas. Deadline for third-party nominations or self-nominations is Friday, September 6. To be eligible, nominees must be a designated representative of a current National Auto Body Council member company. Board members are elected for three-year terms. “As a result of strong active Board leadership, our membership has grown significantly over the past few years as more and more companies experience the value and benefits of participating in NABC initiatives,” said Chuck Sulkala, NABC Executive Director. “We welcome nominations from all segments of the collision industry for leaders who are willing to invest the time and effort to help guide the organization in our ongoing mission to identify, develop, and implement community based initiatives that promote a positive image of our industry.” NABC initiatives include the successful and popular Recycled Rides program. Almost 800 vehicles have been donated to deserving individuals and nonprofit organizations since the program’s inception in 2007. Other NABC community service programs include
First Responder Emergency Extrication (FREE), the Distracted Driving initiative, and support for disabled veterans through Operation Comfort’s AutoMotivation program. NABC also annually recognizes individuals or organizations that demonstrate excellence or selfless service to others through its Award of Distinction and Body Shop Image Award. NABC Board members whose terms are ending this year may also seek re-election. These Board members include: Brandon Devis, Martin Senour Paints - Sherwin Williams Automotive Finishes; Craig Camacho, Keenan Auto Body; Dave Henderson, See Progress; Bill Mayer, Insurance Auto Auctions; National Auto Body Council 7044 S. 13th St., Oak Creek, WI 53154, 888667-7433, (Fax) 414-768-8001 David Merrell, Parts Trader; Ron Reichen, Precision Body and Paint, Inc.; and Renee Ricciotti, 3M Automotive Aftermarket Division. Nominations for NABC board seats must be submitted in writing: Email info@autobodycouncil.org or Executive Director Chuck Sulkala at chucksulkala@msn.com. Fax NABC administrative office at (414) 768-8001 Mail to: National Auto Body Council, 7044 S. 13th St Oak Creek, Wisconsin 53154, Attn: Mary Annen. For more information about NABC Board members contact Chuck Sulkala directly.
32 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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SEMA Show Expands to Three New Exhibitor Areas In addition to 11 designated floor sections, the 2013 SEMA Show will include three different areas where First-Time and Featured Exhibitors can be found. “In order for us to accommodate the more than 2,400 companies exhibiting at the 2013 SEMA Show, we’ve expanded our footprint,” said Peter MacGillivray, SEMA vice president of communications and events. “Collectively, the First-Time and Featured Exhibitor areas include hundreds of new and innovative manufacturers that represent all markets in the industry. These are must-see areas for everyone in the industry.” While the SEMA Show has included a First-Time and Featured Exhibitors area in previous years, 2013 marks the first time that the Show will include three such areas: Upper South Hall, east end near the New Products Showcase: This is the same area where First-Time and Featured Exhibitors were located in 2012. Bridge, between Central and South Halls: Many Showgoers will
know this area because of the Media Center, the Center for International Commerce and the Show Office. For 2013, the Media Center will move to N109 (Meeting Rooms to the east of the Grand Lobby), and the Center for International Commerce will be located in N255 (second floor above the Grand Lobby). LVH South Pavilion area, near Central Hall: The LVH is located across the street, but adjacent to the north side of North Hall. Several exhibitors will be located in the Pavilion area of the LVH, along with General Registration.
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QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
NACE Panels to Review Parts Procurement, Certification Automotive Service & Repair Week (ASRW) is pleased to announce two 90-minute panel discussions will take place during ASRW|NACE|CARS addressing electronic parts procurement and certification programs. ASRW will take place Thursday and Friday, Oct. 17–18, with education beginning Wednesday, Oct. 16, at the Mandalay Bay Convention Center in Las Vegas. Understanding Today’s e-Commerce Parts Solutions (session WE10) takes place Wednesday, Oct. 16, at 10:30 a.m. “With the constantly changing e-commerce parts procurement and search engine environment, it is critical that collision repairers understand the impact to their business,” stated Roger Wright, vice president of operations for Sterling Autobody Centers, and moderator of the WE10 session. Certification Programs: Are They For You? (session TH17) takes place Thursday, Oct. 17, at 3 p.m. “Certification is a term that is grossly overused, and more importantly,
under-defined. This session should help attendees learn about the variety of certifications available so they can make the decision as to what works best for their businesses,” said Lou DiLisio, Automotive Industry Consulting, and moderator of the TH17 session. Registration for ASRW is available online at http://www.asrwevents.com. Both sessions are included in the purchase of a Super Pass registration, which includes one ticket per timeslot to the ASRW Conference Program, an Expo Pass to walk the show floor, one ticket to the Opening General Session/Industry Forum, one ticket to the Welcome Party, and a 2013 commemorative pin. Sessions may also be purchased individually for $70 each. Additionally, all ASRW exhibitors are offering a discount of $50 off any conference purchase, and attendees are encouraged to contact any exhibitor directly to redeem. The 2013 ASRW Conference Program is sponsored by the Alliance of Automobile Manufacturers.
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‘Fax-Only’ Parts Ordering Option will End by September For Shops Using PartsTrader 2.2 PartsTrader held a webinar on Aug. 1 to discuss several changes to the parts ordering application, including the end of the “fax-only” ordering option. In the new 2.2 release, which went live on August 1, PartsTrader has made several changes that will affect users of the electronic parts marketplace developed for State Farm’s Select Service DRP. Lucy Smith, Product Manager at PartsTrader, said that—with this release—the option to place orders through PartsTrader by fax will no longer be available in the Tucson, AZ, market effective immediately. The change was made in preparation for the full state rollout of PartsTrader in Arizona beginning on August 12, according to her statement. The fax option will remain in the other pilot cities of Grand Rapids, Chicago, Birmingham, and Charlotte until the end of August or September 1, Smith said. The fax-only option was originally added to the PartsTrader system so that Select Service facilities could still place orders with their preferred vendors, even if those vendors refused to participate in the PartsTrader program. If a parts vendor chose not to sign-up for the online quoting system, PartsTrader would generate a fax order and forward it to that vendor on the shop’s behalf. With that feature no longer available, Select Service shops in Arizona using the fax option have just two choices: encourage their preferred suppliers to sign up for, and use, the PartsTrader application, or find a new parts supplier for State Farm repairs. According to an industry source, an email sent to repairers in Arizona, PartsTrader Support said that after
July 31, suppliers which have not yet begun to use the PartsTrader application as “a fully active participating supplier,” will no longer appear on the system as an available vendor, and therefore will no longer be able to receive orders placed in PartsTrader. During the webinar, Smith said, “The users in our pilot markets felt that [the fax option] disrupted their process and took some of the efficiencies out because they still had to call those suppliers to see if they were actually going to get the part. When they submitted an order, we would [fax] the order to the supplier, but then the repair shop would still have to call to verify prices, update the prices in their estimating system [and] we found that they were running duplicate processes. Other changes in the PartsTrader system presented by Smith included new functionality for users, including a vendor star rating system, a VIN decoder, the ability to save draft parts orders, and a new welcome page with access to training videos. The VIN decoder, available for vendors, was developed in conjunction with CompNine. The star rating system, announced in April by PartsTrader, is now beginning to be rolled-out. “We’ve been collecting this information for three months and now we have enough feedback to start displaying ratings,” Smith said. With this release, each shop and vendor will be able to see the star rating for their own business only, and in a later release the star ratings will eventually be visible to all users. Users of the system are rated on items such as quoting accuracy, party quality, communication, business practices, and, for shops, how fast they pay their bills.
PPG Passes Milestone with PaintManager at 5K PPG Automotive Refinishes recently announced that it now has 5,000 subscribers of its PaintManager software color retrieval and management program that have chosen to use the Internet instead of traditional CD releases to update their systems. “Getting fast and accurate color and program updates is critical, and we are very pleased to see our customers embracing this online option to enhance their PaintManager software,” said Mary Kimbro, global color director
of PPG. The PaintManager software delivers color formulas that match OEM colors and manages the paint mixing operation through touch screen technology that can be configured by any distributor or collision center. “With PaintManager software, shops are getting fast network access to color information, new products and program improvements. They’re getting the data that keeps their managers and technicians aware of all aspects of the repair business,” Kimbro said.
34 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
AAPEX to Address Warehouse Distributor Management Well-known professional experts on distribution and management will be presenting topics of particular interest to warehouse distributors (WD) in Learning Forum sessions during the 2013 Automotive Aftermarket Products Expo (AAPEX). AAPEX is set for Tuesday, Nov. 5 through Thursday, Nov. 7, at the Sands Expo Center, Las Vegas, NV. The Learning Forum WD Management sessions cover: how to achieve profitability and success; future forces in B2B markets; sales and marketing optimization; building tomorrow’s workforce; and trends affecting distribution businesses. Featured speakers leading the WD Management sessions include: ● Garrison Wynn, Wynn Solutions — “The Real Truth About Success: What the Top 1 Percent Do Differently and Why They Won’t Tell You” and “Being the Best vs. Being Consistently Chosen” ● Steve Diest, Indian River Consulting Group — “Channel Evolution: Lessons from Other Industries” and “Future Forces in B2B Markets” ● Barry Lawrence, Texas A & M Distribution Program — “Optimizing Distributor Profitability: Best Practices for Improving Return on Investment” and “Sales and Marketing Optimization:
Driving Growth and Market Share” ● Gene Marks, The Marks Group — “Economic, Political and Tech Trends: 10 Things Happening Today That Will Affect Your Business Tomorrow” ● Dan Schawbel, Millennial Branding — “Building the Workforce of Tomorrow: How to Recruit, Retain and Grow Your Young Talent” This year’s Learning Forum will feature nearly 40 free sessions, the highest number ever offered at AAPEX. Sessions will start on Monday, Nov. 4, the day before the official start of AAPEX, and continue throughout the event. Attendees are encouraged to make their travel plans accordingly. All sessions are accredited by the University of the Aftermarket toward the Automotive Aftermarket Professional (AAP) and Master Automotive Aftermarket Professional (MAAP) designations. Sessions will be held at the Venetian Hotel, on the Venetian/ Palazzo Congress Center Level 1, Marco Polo Rooms 701–707. Since the sessions are free-of-charge, seating is first come, first served. For a list of topics, speakers, session descriptions and a schedule, visit the AAPEX Learning Forum. See www.aapexshow.com or e-mail: info@aapexshow.com.
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Autobody-Review.com—Where Yelp Meets Reputation Defender with Ed Attanasio
Every time I talk to body shop owners about social media issues, they invariably bring up three things: Yelp, Facebook and how to defend their reputations online, in that order. They either smile or frown when they mention Yelp, look perplexed when they discuss Facebook and then get plain mad when they talk about how they’ve been wronged online, normally by their competition or a former disgruntled employee. Recently, the marketing manager of a large MSO told me about Autobody-Review.com, a consumer web site designed specifically for reviewing body shops and described it as ‘Yelp meets Reputation Defender with enhanced SEO.’ I polled some other shops about the service and the feedback was substantial. So, I contacted the company’s President/CEO Chuck Nixon to learn more about Autobody-Review.com and why it’s created a buzz.
ABN: Shops are very concerned with Yelp, because they claim that many of their reviews are not written by real customers. Tell us why your product is different from Yelp?
CN: Autobody-Review.com is unique in that we connect to repair facilities’ customer databases. We gather reviews through two verified processes. Upon completion of the repair performed on the customer’s vehicle a delivery status message is delivered to the client allowing them to enter a review on their positive and negative experience with that company. The ease of using it is the key. The customer completes a paragraph or more conveying their true sentiment of the experience and then it’s scored by our proprietary sentiment engine giving the comment a Google approved Star Rating. Many of our clients are gaining insight into their customers’ experience and ultimately measuring the final performance
which did not align with what was being reported to non-verified review sites such as Yelp. This created request for us to create a truly verified customer review site. It all comes down to verifiability and accountability, two things lacking with Yelp.
ABN: Search Engine Optimization (SEO) is a huge concern for body shops, because they hate seeing their competition ranked higher than them on Google or Bing. Tell us about how your system maximizes SEO for your subscribers?
CN: Not only does our system gather and preview verified reviews about a facility but we also provide social media interface allowing a facility to push reviews directly to their Facebook business page, Twitter and soon Google+. These plug-ins are designed to push reviews to the shops’ page when consumers are most active on
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ABN: Big-name MSOs are signing up for Autobody-Review.com in large numbers, but can independent shops can reap the same benefits from your site?
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social media sites. This increases the facilities engagement score as well as social media SEO ranking. We also back link the facilities business website to their Autobody-Review business landing page. This two-way back linking, along with our current daily traffic and other blog back linking, helps to drive the facilities’ own back linking initiative. Lastly we provide a website widget allowing the facility to post their rotating reviews directly on their own business website. This widget is designed in a manner that is providing web crawlers to find new content on their page. All of these connections and back linking help to drive not only the shop Autobody-Review landing page SEO ranking but also their own sites SEO ranking.
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 35
CN: Many MSO’s through our system have identified that larger isn’t better with SEO ranking. Since the release of Google’s most recent update (they’re calling it Penguin) local search ranking is vital. The same applies to Bing and Yahoo. So we advise both MSO’s and independent facilities to focus on local initiatives. We advise large brands to create individual Social pages as the Search Engines are designed to respond best to local traffic. We recommend that each facility create and connect to local listing pages such as Google+, Yahoo and more. As the search engines continue to change, they still tend to support local listings and activity. This means that the larger brands no longer have an advantage. Independent shops through verified review sites such as Autobody-Review.com now have the ability to compete with the big boys. Now large MSO’s are joining at a high rate, because they see that Autobody-Review.com is driving local traffic in a manner that their corporate strategies in the past have overlooked. Our consultants provide new insight that is valuable to both independents and the larger chains.
ABN: Another aspect of your system allows users to verify shops’ certifications and awards. Some shops list certifications on their sites and in many cases they’re not current or valid. How are you going to be able to verify these certifications from groups like I-CAR, ASE and all of the car manufacturers, for example?
CN: We’re 100% committed to providing only verified reviews, and that also includes verified industry certifications. We’re connected with companies such as Verifacts and I-CAR and they’ve given us a direct feed to their verified list of approved facilities. This allows us to add and remove certifications and ensure that consumers are accurately informed of the hard work and investment an organization has made into their training.
ABN: How do you aggregate all of the “true” customer reviews for your subscribers?
CN: All reviews are scored through our natural language sentiment engine and then displayed directly on our site. Both good and bad reviews are displayed. This transparency provides a
NACE MSO Symposium Open to Some Single Shops NACE has announced that the 3rd annual MSO Symposium will take place Wednesday, October 16 at the Mandalay Bay Convention Center in Las Vegas. Attendance to this highly sought after event will again be limited to qualified collision repair multiple-location operators (MSOs) with two or more locations. However, new this year, the symposium will open 75 seats on a first-come, first-served basis to single collision repair owners interested in expanding their business. Registration is open and the fee to attend is $200 or $250 after August 22. Group-rate registrations are also available for repair organizations with multiple executives who wish to attend. NACE’s MSO Symposium now open to expansion minded shop owners. “The MSO Symposium is designed to provide a unique array of content specifically for the collision repair multiple location operator segment,” said Vincent Romans, The Romans Group, producer of the MSO Symposium. “Based on ongoing feedback and input, we are busy finalizing an agenda that we believe will be of interest to MSOs,” added Romans. Content highlights for this year’s symposium will include topics related to leadership, business continuity and
succession planning, private equity, MSO panel presentations and discussions on their business, market, financial and strategic focus, and development and insight about international MSOs. Additional details regarding the content will be released in the coming weeks. Also new this year, a portion of the symposium will be open to the press. Members of the press will also be invited to attend the evening networking reception at the conclusion of the symposium. The 2013 MSO Symposium is produced by ASA, The Romans Group and NACE. Sponsors of the symposium to date include Axalta Coating Systems, AudaExplore, BASF, BB&T, CCC Information Services, Enterprise Rent-aCar, Mitchell International, The Romans Group and UniCure Spraybooths. Details regarding the agenda and speakers for the symposium are forthcoming. Visit e.hanleywood.com/ e/15182/ee-Home-KeyEventsMSOSymposium/57ps8/281231005 for the latest details surrounding the symposium. The 2013 MSO Symposium is produced in memory of Matthew Ohrnstein, who produced the event in 2011 and 2012.
36 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
verified and reliable source to help them make a better educated decision when selecting a body shop. We not only collect reviews but we also provide an integrated proactive alerting system helping the facility to improve their future results and reviews.
ABN: Tell me briefly the history of your company and what you have planned for the immediate future?
CN: Our company started in the business of providing proactive communication through an opt in text messaging solution. We created a unique two-way message system that supported a lean process indicative for many service businesses. Through the insight we gained front the two-way communication we quickly realized we were gaining and providing insight to body shops about their consumer experience throughout the process that had never been available in the past. This quickly gained the attention of many leaders in not only the collision industry but insurance carriers nationally. Our customers’ customer satisfaction scores were skyrocketing. We then formed a relationship with CCC and Mitchell International which provide us the
ability to interface directly with facilities Management systems. About a year later CCC approached us to exclusively license our status software and integrate it directly into their workflow and estimating platform. We then created an integrated electronic CSI solution deliverable through both email and text messaging. This led us to create our proactive sentiment engine which mines and provides early insight into the customer experience. Our proprietary sentiment alerting and scoring system allowed us to discover that our customer where provide valuable insight and eventually true reviews directly from actual customers. This is what led us to develop Autobody-Review.com. Autobody-Review.com also features articles designed to improve your shop performance. See, for example, Five tips to prevent a bad online review for your auto Body shop.
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Continued from Cover
No Choice on Usage
tween the various electronic parts procurement systems won’t matter if shops are being required to use a particular system. “Everybody in the room, I believe, thinks that free market forces create the best value for consumers,” Stabler said. “I hear insurers talk
about that a lot. They want to have competition and free market forces to drive the best value for them. I think for the purposes of parts procurement, the difficult question is how do we allow free market forces to create a tool that is most efficient for the industry and allow body shops and insurers to choose the tool that allows them to reduce their operating costs and create internal efficiencies? We don’t have free market choices with
the direction that parts procurement is going.” Stabler called electronic parts procurement systems “a necessary tool,” but said efficiency and features— rather than “external forces”—should be driving which systems are used. “Let the people who want to make a parts procurement engine build the best tool, and let the marketplace decide which one is the best, rather than being forced,” Stabler said.
Automaker Rep Says Parts Procurement Systems Should Benefit All
Paul Massey of Ford Motor Company said shops and insurers choosing an electronic parts procurement system should think about the party on the other end of the exchange. Saying he was speaking on behalf of dealerships and maybe other parts suppliers, Massey told those at the Collision Industry Conference (CIC) in Boston in July that if the system Paul Massey takes away from the parts supplier’s efficiency, that will cost purchasers in some other way. “There’s no free ride here,” Massey said, saying deal-
ers are now having to hire people to administer multiple parts ordering tools. “They’re either going to have to take it out of the services they provide, or they’re going to have to add cost to the prices they offer.” As they have in the past, parts suppliers can provide all the parts that are needed, Massey said. “So this either has to make it more efficient or more streamlined for them or help them reduce costs, or otherwise there’s no benefit to them,” Massey said. “Of all the systems I’ve seen presented, the funding model is always to get a little more out of the supply base. So they’re the ones who are being asked to bear the burden and cost of someone else’s efficiency.”
Aaron Schulenburg, executive director of Society of Collision Repair Specialists (SCRS), agreed. “I don’t think there’s anything wrong with the survey or the questions, but I don’t think this touches on what we need to talk about,” Schulenburg told the committee. “For more than a year now, this committee has been asked, at least by individuals of this body, for a very serious disChuck Sulkala cussion about the entry-to-market (of the systems),” he said. “It keeps being avoided, frankly. I think we really need to have that before we just ask how they work.” Massachusetts shop owner Chuck Sulkala also urged the committee to examine that aspect of the topic. “I understand you’re trying to put a matrix together. But the fact is, if you don’t have the free enterprise opportunity to use the matrix to determine what you’re going to use, what good is the matrix,” Sulkala asked. “If I’m told, ‘Here’s what you have to use, it doesn’t matter what you’re telling me in the matrix.”
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CIC Chairman George Avery said the committee should continue its work on the matrix, but acknowledged that “it seems like we jumped ahead,” and that “it’s prudent that we facilitate the discussion that I think is being asked for.” He said he would work with the past chairs of CIC to develop a panel discussion on the topic for the next CIC meeting, being held in Las Vegas No-
Who Attends CIC?
vember 6-7, during the SEMA show.
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.
An electronic audience response system (clickers) being used this year for the first time at the Collision Industry Conference (CIC) meetings is offering a new way to gauge who attends CIC. Each of the last two meetings have had well over 200 attendees. At the meeting in Phoenix this past spring, about 30 percent indicated they were repairers, 10 percent were information providers and about 4 percent were insurers. But that survey lacked enough other categories, so the majority of attendees (55 percent) got lumped together as “other.” The survey at the Boston meeting in July was a bit more refined. Again, about 29 percent of those responding clicked in as repairers. Likely because the meeting was held in conjunction with I-CAR’s annual conference, insurers made up a larger percentage (7 percent) than at the Phoenix meeting. Consultants accounted for 9 percent of attendees, automakers 6 percent, and suppliers 29 percent. The category of “other” was still selected by about one of every five attendees.
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Connecticut Body Shop Fined a Total of $54,300 for Repeat Violations by OSHA, Did Not Contest Citations
Hoffman Auto Body Shop was cited in March 2013, by the U.S. Department of Labor’s OSHA Division for nine alleged violations of workplace safety standards at its Connecticut Avenue facility in East Hartford. OSHA proposed fines totaling $54,300, mostly because of repeat citations, the agency said. OSHA’s Hartford office had seen problems in an inspection in 2011, and a December 2012 inspection did not find the problems had been corrected, the agency said. The agency also said the body shop had an improperly located electrical outlet, which could cause a shock hazard to workers, and a fire-suppression system switch was blocked by a cabinet. The electrical outlet problem was remedied during the inspection in December, documents show. The three serious violations resulted in $14,300 in proposed fines. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known. Equipment and materials, some of it flammable, were stored near paint spray booths and electric panels. The stored materials limited access to extinguish potential fires, presented fire
and shock hazards and impeded cleaning around the booths, which allows potentially combustible materials to accumulate. These conditions resulted in the issuance of two repeat citations with $40,000 in proposed fines. A repeat violation exists when an employer previously has been cited for the same or a similar violation of a standard, regulation, rule or order at any other facility in federal enforcement states within the last five years. “The bulk of these fines stem from recurring hazards identified during this latest inspection,” said Warren Simpson, OSHA’s area director in Hartford. “Workers at the facility remained exposed to potential hazards. This employer needs to take effective action to correct these safety issues and prevent their recurrence.” The company did not contest the citations. “The Hoffman family considers the safety of our employees a top priority and all issues identified by OSHA regulators in December of 2012 were rectified immediately and completely,” said a statement released by the company in March. “We will make whatever changes are appropriate to continue to ensure a safe workplace for our employees.”
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www.autobodynews.com | SEPTEMBER 2013 AUTOBODY NEWS 39
Laurel Auto Group of Westmont Accidents Happen
Laurel BMW of Westmont
Insist on Original BMW Parts and Accessories www.laurelbmw.com
(630) 654-5400
Laurel BMW of Westmont 430 E Ogden Ave., Westmont, IL 60559
www.laurelbmw.com
• Two Deliveries Daily • 17 Delivery Trucks
Truth in Engineering
Hours: M-F 7-6; Sat 8-3
Phone: (888) 545.6900 Fax: (630) 655.5999
Audi Genuine Parts
Large Inventory of OEM Parts Quick, Courteous Service Knowledgeable Staff Audi Westmont 276 E. Ogden Ave., Westmont, IL 60559 Parts Direct: (630) 230.2222 / Fax: (630) 655.5750 Hours: M-F 7-6 / Sat 8-4 www.audiwestmont.com
Mercedes-Benz of Westmont • Large Inventory • Exceptional Service 200 E. Ogden Ave Westmont, IL 60559 www.mercedesbenzofwestmont.com
Phone: Fax:
(630) 654.1039 (630) 654.8167
40 SEPTEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
GENUINE PARTS
Hours: M-F 7-6; Sat 8-4