November 2012 Great Lakes Edition by Autobody News

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Indiana Auto Body Association is the Sole Collision Association in the Hoosier State by David M. Brown

The Indiana Auto Body Association is the state’s only organization serving collision repairers. The Hoosier State has had collision-repair associations for some time, beginning with the Independent Garage Owners of Indiana in the 1970s. Following that, the state had affiliate associations with national groups such as the Automotive Service Association and the Alliance of Automotive Service Professionals. The last of these disbanded in the mid ‘90s.

“In 2004 a group of shop owners and suppliers decided that a new body shop association needed to be formed,” said Tony Passwater, executive director of Indianapolis-based IABA. This effort was led by Aaron Clark, Collision Solutions, and included Larry Phelps, Elite Collision Repair, Steve Larkin, Larkin Collision Center, Craig Sullivan, Sullivan Equipment, Bill Webb, Grinstead Group, and Pat Johnson, Brothers Body Shop. Tony Passwater, of AEII, became the acting executive director in 2005

VOL. 1 ISSUE 3 NOVEMBER 2012

NACE 2012 in New Orleans

Dick Cross, keynote speaker at the opening session, demonstrates the pyramid top of the organization. See story p. 13.

A New Orleans-style National Anthem kicked off the keynote address. New Orleans appears to have recovered its pre-Katrina spirit.

CARS chair Bill Moss (l) and NACE chair, Ron Nagy, address the opening session.

Mike Dolabi (l) of National Autobody Parts Warehouse and Terry Fortner of LKQ on the Parts Panel discussion.

Attendance was down on the show floor but some booths attracted record business.

ALLDATA’s Dan Espersen imparts his 37 plus years of experience in “OEM Best Practices”.

AEII’s Tony Passwater presented on designing and implementing a complete repair plan.

The Autobody News staff doing its part to cover the industry.

See IABA, Page 45

Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes Case Law

went into great lengths explaining the history of “Business Law Section 349, Deceptive Business Practices” and the intent of it, writing: “This case presents us with the question of whether a business entity [North State] has stated a valid cause of action for violation of General Business Law §349(h) where it alleges that another business entity [Progressive] deceived and misled prospective customers, causing it to sustain direct economic loss in the form of more than $5 million in lost business sales. We conclude that it does.” North State sued Progressive under New York’s deceptive acts and See Greg Cocarro, Page 3

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

North State Autobahn Inc., a Westchester-NY-based body shop owned by Greg Coccaro, has won an important victory in the New York Supreme Court Appellate Division against Progressive Northeast Insurance Company, Progressive Casualty Insurance Company, Progressive Direct Insurance Company, Progressive Specialty Insurance Company, and Nicholas Stanton. The result likely creates a case law basis for deceptive acts and practices claims against auto insurance companies that divert policyholders away from repair shops outside their DRP networks. In a fifteen page decision, the court

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

2 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

$4 Million Bond to Update Auto Body

Program in MN . . . . . . . . . . . . . . . . . . 37

102-Year-Old Woman Still Drives her

1930 Packard . . . . . . . . . . . . . . . . . . . . 4

AASP-MN Announces Fall Seminars

Line-Up . . . . . . . . . . . . . . . . . . . . . . . . 17

Attorney Says Proposed MI Law Will

Controls the Uncontrollable . . . . . . . . . 20

Yoswick: NACE Keynote Speech Focuses

on Thinking about Business . . . . . . . . . 13

NATIONAL

American Honda Launches ProFirst

Shop Recognition Program . . . . . . . . . 41

Automaker, OEM and Recall News . . . . . . 26

Eliminate Accident Lawsuits. . . . . . . . . . 9

BASF Showcases Newest Additions to

with Embezzlement . . . . . . . . . . . . . . . 32

Collision Repair Industry Loses a

Auto Shop Office Manager Charged

Cars Needed at College Auto Programs

to Help Students to Develop Skills . . . . . 7

VisionPlus Online Tools at NACE . . . . . 44

Legend and a Friend; McBroom

Passed Away Oct. 11. . . . . . . . . . . . . . 39

Chicago’s Collision Revision Makes

DEG & the Keys to Successful Estimating

Chrysler House Opens in New Detroit Office. 4

Dykstra Automotive Institute Survey

Management Bid to Acquire Company . . 7

Cleveland, OH, Body Shop’s

Expansion OK’d . . . . . . . . . . . . . . . . . . 18

Presented in New Orleans . . . . . . . . . . 47 Identifies Broad Industry Concerns

in 2013: Esp. Financing and Suppliers . 47

Gerber Opens Shop in Indiana . . . . . . . . . . 4

Esurance recognizes Three CARSTAR

Tank’s Hot Rod of the Year . . . . . . . . . . . 8

Greg Coccaro Wins Significant Appeal

Gloy’s Roadster Wins Goodguys 2012

IABA Convention, Tech Show . . . . . . . . . . 37

Indiana Auto Body Association is the Sole Collision Association in the

Hoosier State. . . . . . . . . . . . . . . . . . . . . 1

shops with awards. . . . . . . . . . . . . . . . 41

from Progressive Insurance,

Changes Case Law . . . . . . . . . . . . . . . . 1

Honda Develops New Welding Technology,

UHSS Structure for 2013 Accord . . . . . 43

Ivy Tech College Dedicates New $900,000

How to be a ‘Courageous Leader’

New Young’s Auto Emerges From

Insurers Talk MSOs, Consolidation,

NMBSA Holds Annual Meeting . . . . . . . . . . 4

John Shoemaker Coaches Shops to

Color-Matching Lab . . . . . . . . . . . . . . . . 4

Martin Senour Kicks Off 4Q Training

Shop Owner. . . . . . . . . . . . . . . . . . . . . 21

Matrix Electronic Measuring, Inc.

$530,000 . . . . . . . . . . . . . . . . . . . . . . 41

NABC Gifts 6 Vehicles to Needy

Hit & Run Suspect . . . . . . . . . . . . . . . . . 4

NACE 2012 in New Orleans . . . . . . . . . . . . 1

Auto Body Center. . . . . . . . . . . . . . . . . 17

100-Year-Old Building . . . . . . . . . . . . . 37

PPG Automotive Refinish Opens

Re-tired, Not Retired, Says 79-yr old

Safelite AutoGlass Foundation Raises Shop Helps Police Nab 83-Year-Old

Three A+ Ohio Collision Repair Programs. 36

Two Illinois Body Shops Join 1Collision

Network. . . . . . . . . . . . . . . . . . . . . . . . . 6

Wisconsin Shop Joins CARSTAR Network . 4 COLUMNISTS

Franklin: The New Co-Op Marketing . . . . . 42

Gesterkamp: E-Coated Parts Procedure . . 18

Sisk: CCRE’s Fall Seminar Covers

Presented at NACE. . . . . . . . . . . . . . . . 44 the Cloud, and Tech Trends . . . . . . . . . 40

‘Negotiate for Success’ . . . . . . . . . . . . 22

Program . . . . . . . . . . . . . . . . . . . . . . . 47

Awarded Two Patents. . . . . . . . . . . . . . 43

New Orleans Families at NACE . . . . . . . 46

NACE Sees Fewer People, But Quality

Events . . . . . . . . . . . . . . . . . . . . . . . . . 14

PartsTrader Coverage

Former State Farm Claims Rep, Steve Plier,

Now Consultant, Talks ‘PartsTrader’ . . . 12

George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not

Guaranteed to Remain” As Are. . . . . . . 32

Adhesion, Warranties, and Much More. 28

Ohio Repairers Concerned about Impact

CSI Ratings By Solving Problems . . . . . 34

PartsTrader Reduces Minimum Quote

Sisk: Metro Paint Supplies Earns Top Sisk: The NitroTech Spray Generator

practices statute, General Business Law section 349, for misleading consumers into taking their damaged vehicles away from North State to competing body shops within Progressive’s “network.” North State’s suit alleges that the insurance company coaxed customers away by maligning the shop’s work and pricing. In North State Autobahn v. Progressive Insurance, the Second Department’s ruling, denying Progressive’s motion for summary judgment and allowing North State’s suit to go forward, confirmed a business’ standing to recover for direct harm caused to it by another business’ deceptive acts and practices—even if that business is a competitor. Justice Robert Miller, writing for a unanimous panel, held that North State’s allegations concerning Progressive’s acts depriving consumers of their choice of body shop satisfied the statute’s requirement that the deceptive acts at issue have an impact on consumers at large. The court further held that the law does not require that North State identify specific

PartsTrader Will Have on Profits . . . . . . . 6

Time to 30 mins . . . . . . . . . . . . . . . . . 42

consumers who were harmed. The court also rejected Progressive’s argument that North State’s injury was merely derivative of that of the injured consumers, finding that North State adequately alleged direct harm the instant customers were misled into taking their vehicles to a network shop, regardless of whether such customers ultimately suffered pecuniary injury. The fact that North State was a business competitor and not the consumer in the transaction was held to be irrelevant for purposes of standing under the statute, under which punitive damages and attorneys’ fees are recoverable. “This is a significant decision that enables businesses to pursue ‘deceptive acts and practices’ claims in businessto-business disputes—even between competitors—that have an impact on consumers at large,” said Dennis Artese, a shareholder at Anderson Kill & Olick who represented North State. “That’s critically important because it allows well-funded businesses to police deceptive practices where the state attorney general does not, and where individual consumers cannot, because they just do not have the financial See Greg Cocarro, Page 45

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

Great Lakes

REGIONAL

Greg Coccaro

Indexof Advertisers

Contents

Continued from Cover

Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC.

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

BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 41 Brunswick Auto Mart . . . . . . . . . 10-11 BSFco . . . . . . . . . . . . . . . . . . . . . . . 17 Chief Automotive. . . . . . . . . . . . . . . 21 Classifieds. . . . . . . . . . . . . . . . . . . . 47 Dent Tools Direct USA . . . . . . . . . . 14 Equalizer . . . . . . . . . . . . . . . . . . . . . 18 Erhard BMW of Bloomfield Hills . . . 35 Erhard BMW of Farmington Hills . . 35 Ford Wholesale Parts Dealers . . . . 36 Garmat . . . . . . . . . . . . . . . . . . . . . . . 4 GM Wholesale Parts Dealers . . . . . 44 Graham Auto Mall . . . . . . . . . . . . . . . 9 Haydell . . . . . . . . . . . . . . . . . . . . . . 20 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers . 39 Infiniti of Lisle . . . . . . . . . . . . . . . . . 30 Jack Phelan Dodge of Countryside. 15 K & M Suzuki. . . . . . . . . . . . . . . . . . 28 Laurel Auto Group of Westmont . . . 23 Lexus Wholesale Parts Dealers . . . 38

Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mazda Wholesale Parts Dealers . . . 27 Milosch’s Palace Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 29 Mitsubishi Wholesale Parts Dealers. 43 MOPAR Wholesale Parts Dealers . . 33 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 45 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Preval . . . . . . . . . . . . . . . . . . . . . . . 16 Reliable Automotive Equipment . . . . 8 Rick Case Wholesale Parts Division. 19 Safety Regulations . . . . . . . . . . . . . 34 SATA Spray Equipment . . . . . . . . . . 6 Scion Wholesale Parts Dealers. . . . 27 Solution Finish . . . . . . . . . . . . . . . . 42 Star-A-Liner . . . . . . . . . . . . . . . . . . . 48 Subaru Wholesale Parts Dealers . . 46 Toyota of Grand Rapids . . . . . . . . . 22 Toyota Wholesale Parts Dealers . . . 37 Van Horn Hyundai-Mazda. . . . . . . . 31 Volkswagen Wholesale Parts Dealers. 40 Wisconsin Parts Advantage . . . . . . . 7

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 3

NMBSA Holds Annual Meeting

The Northern Michigan Body Shop Association will hold its next meeting Oct. 26 at the Turtle Creek Convention Center in Traverse City, MI. Guest speaker is Erica Eversman, repair advocate attorney, who will speak on the topic of parts procurement. The NMBSA annual meeting will begin at 6:30 p.m. with an election of officers. Eversman will present at 7 p.m. There is no cost to attend the annual membership meeting only. Cost to attend the presentation by Erica Eversman is $25 per member or $45 for non-members.

Chrysler House Opens in New Detroit Office

The Boyd Group Inc. acquired Preferred Auto Body in Portage, IN. The repair center is 5,950 square feet and now operates under the Gerber Collision & Glass trade name. With this addition, the Boyd Group owns and operates nine repair centers in Indiana, which brings the total number of U.S. locations to 154. “The addition of the new Portage repair center expands our footprint to better serve customers and insurance partners in this growing market,” said Tim O’Day, President and COO of the Boyd Group’s U.S. operations.

Chrysler Group LLC’s Great Lakes Business Center moved into their new offices in the former Dime Building in downtown Detroit. Employees occupy two floors of the historic structure at 719 Griswold St. “We are proud to contribute to the continuing transformation of the Motor City,” said Reid Bigland, president of the Dodge brand and head of U.S. sales for the Auburn Hills-based automaker. “I am thrilled that one of my teams will be embedded in the city that means so much to our company. Detroit is the home of the Jeep Grand Cherokee, Dodge Durango, SRT Viper and now a very critical part of Chrysler’s team.” Chrysler has leased nearly 33,000 square feet — the top two floors — of the downtown office building, which is owned by developer Dan Gilbert’s Rock Ventures. About 70 employees will work in Chrysler’s satellite office. “We are excited to get settled and to really enjoy all that downtown Detroit has to offer,” said Mike Dragojevic, head of Chrysler’s Great Lakes Business Center. “There is an energy and creativity around the city that is infectious.”

PPG Automotive Refinish Opens Color-Matching Lab

Shop Helps Police Nab 83Year-Old Hit & Run Suspect

Gerber Opens Shop in Indiana

PPG Automotive opened its new refinish color-matching laboratory in Cleveland, OH, in September. The computer-controlled, hightech facility is a significant advancement in the science and art of automotive refinish color matching, PPG said. The laboratory addresses major challenges that automotive refinish businesses face, including the growing number of domestic and import OEM color offerings and variations. PPG said there are several variations with exterior, bumper, accent and underhood colors. “While an OEM’s color code may prescribe a particular paint formulation, the reality is the actual vehicle finish color may differ from plant to plant for any number of reasons. Consequently color variants are always needed,” PPG said. PPG said its laboratory is equipped to produce more accurate color formulations and variants through proprietary electronic and scientific processes. A computer software program runs continuously to produce more color formulations and precise color formulas. The laboratory also allows PPG to expand its data collection practices.

A tip from an auto body shop helped police locate and charge an 83-yearold woman with a hit-and-run crash that killed a 6-year-old boy in Illinois in early September. Veramae C. Phillip, 83, of Woodstock, turned herself in after authorities issued a warrant for her arrest and charged her with felony counts of leaving the scene of a fatal traffic crash and failure to report a fatal traffic crash. She was released after paying $5,000 bail on a $50,000 bond, according to a statement from the McHenry County Sheriff’s Office. Brayan Silva, of Leland, was struck while walking with his family on Franklinville Road a little after 9 p.m. on Sept. 8, authorities said. He was taken to Centegra Hospital Woodstock, where he was pronounced dead. The vehicle, allegedly driven by Phillip, did not stop. Police said the boy was hit by a white or silver car that sustained damage to a headlight. They were able to track down the car, a silver 2001 Chevrolet Malibu, with help from a local body shop, according to the office. Brayan had just turned 6 on Aug. 30, according to an obituary.

4 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Wisconsin Shop Joins CARSTAR Network

Gillette’s CARSTAR Collision Center in Waukesha, WI, recently joined the CARSTAR Auto Body Repair Experts network of collision repair centers. Gillette’s, which has been in business since 1996, will remain independently owned by Todd and Kathy Gillette. The shop now has access to CARSTAR’s proprietary management system, 19 corporately managed direct repair programs and 45 corporately managed purchasing programs. “We are very pleased to welcome Todd and Kathy and their crew at Gillette’s to the CARSTAR Nation,” said David Byers, CEO of CARSTAR. “As with all of our store owners, we look forward to helping build their business; getting local car owners back on the road with fast, reliable collision repairs; and giving back to the community at the same time.” CARSTAR now operates 13 collision repair facilities in Wisconsin, and more than 410 locations throughout 31 U.S. states and 10 Canadian provinces.

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102-Year-Old Woman Still Drives her 1930 Packard

She’s 102 years old, her car is 82 years old and she’s held a driver’s license for 90 years. Born in 1910, Margaret Dunning lives in Plymouth, MI, and when she is behind the wheel of her 1930 Packard 740 Roadster, she draws more attention than her vehicle. Dunning is probably one of a few classic-car owners who can say she is older than her classic car. She’s been driving since she was eight years old, and officially received her license at 12, after her father died. “I’m just a farm girl, and my dad had a lot of machinery, and I adored my dad,” she said. “I became familiar with the tools, because the minute I said I didn’t know what I was looking for, he’d say, ‘Go back to the house.’” She owns several classic vehicles. In addition to the Packard, she includes a ‘66 Cadillac DeVille, a ‘75 Cadillac Eldorado convertible and a 1931 Model A in her collection. The one she still drives the most? Her everyday car, an ‘03 Cadillac DeVille. Occasionally, she still changes her own oil. “Before old age overtook me, I could scoot under the car very nicely,” she said.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 5

Ohio Repairers Concerned about Impact PartsTrader Will Have on Profits More than 125 collision repairers attended two Automotive Service Association (ASA) meetings in Ohio to discuss concerns about State Farm’s parts procurement pilot program through PartsTrader. The meetings were held in Cleveland on Sept. 18 and in Cincinnati on Sept. 19. The meetings were open to everyone in the collision repair industry at no cost. Denise Caspersen, manager of ASA’s collision division, presented the elements of the pilot to date, reviewed industry concerns, and collected any additional questions, concerns and suggestions from attendees. Reductions in parts profits was the biggest concern voiced by repairers. The ASA said several Ohio shop operators also continue to question the reasoning, efficiency and alleged benefits of the program that have been touted by State Farm. Repairers continue to have concerns about the discounted manufacturer’s suggested retail selling price (MSRP) that is included in the PartsTrader program. Additionally, shops are concerned that lower profit margins will result if suppliers elect to provide a discounted MSRP along with a price quote for a part.

State Farm stated in July that it does not ask for discounts on parts but if a supplier provides a discounted MSRP, this data is available to State Farm. Repairers are responsible for recommending suppliers and determining their default OEM and preferred OEM suppliers. Once a Select Service shop requests a quote on an estimate, the quoting request is sent to all suppliers whose application ‘preferences’ match the content of the estimate. Suppliers, just like repairers, are able to set preferences. Suppliers are also responsible for setting their market area, parts type, and rates of delivery. Meeting attendees questioned why State Farm is doing this, what happens to repairers’ parts profits if this goes into effect, where is the efficiency, what State Farm sees as the future for collision claims and the size of their Select Service network—and the biggest question overall—where is the benefit to the collision repairers participating in the pilot? “We continue to present to State Farm the concerns of ASA members. If State Farm cannot provide data showing how this application benefits

6 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

collision repairers (operationally/financially), ASA will respond appropriately on behalf of repairers,” said Caspersen. “ASA has provided State Farm with a timeline for data and will be meeting with State Farm to assess future actions.” State Farm has said its PartsTrader process should improve part availability, process efficiency, order accuracy and create a better experience for customers. ASA said it will continue to provide the industry with detailed information about the pilot program, and regularly engages with State Farm to address concerns and clarify details. ASA said it is focused on data centering around how this electronic parts ordering application will impact collision repair facilities. State Farm’s PartsTrader program is currently being piloted in Grand Rapids, MI; Tucson, AZ; Birmingham, AL; and Charlotte, NC. State Farm recently announced that is expanding the pilot in Chicago, which will be used by roughly 450 Select Service shops in the market starting in December. See related story on George Avery, State Farm Claims Representative, on PartsTrader on page 32.

Two Illinois Body Shops Join 1Collision Network

1Collision, a Midwest chain of independent collision repair shops, will add two Illinois shops to its network. Wheel-Inn Body & Motor Works in Wheeling and Heights Body & Motor Works1 in Prospect Heights join 1Collision network. The grand opening of Heights Body & Motor Works1, owned by Joe Pascucci, was held Sept. 26 at its new location at 871 E. Palatine Rd. in Prospect Heights. In addition to Heights Body & Motor Works1, Pascucci and his staff have operated Wheel-Inn Body & Motor Works for the past 30 years. According to 1Collision Network, Heights Body & Motor Works1 is a modern, state-of-the-art facility featuring the latest technology in collision repair, an expert staff of trained professionals and a comfortable customer area with all the amenities. “Our expert staff is proud and enthused to be serving the collision repair needs of our friends and neighbors in Prospect Heights and the surrounding communities,” said Pascucci.

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Chicago’s Collision Revision Makes Management Bid to Acquire Company Collision Revision, a multi–shop operator in the Chicago area with 29 locations, announced that key members of the management team of have placed a bid to acquire the assets and stock of the company held by the company’s founder, Roger A. D’Orazio, Jr. Collision Revision says it’s the seventh largest collision repair operator in the United States and the largest privately-held without any outside equity partners. As part of the bid, the new group will acquire the company’s intellectual property and trade name as well as assuming customer and supplier contracts and obligations. Details of the deal structure were not disclosed other than to say that no real estate is being sold as part of the transaction. The headquarters for the business will remain in Joliet, IL. Chief Information Officer Fiore D’Orazio led the buyout and he will assume the role of CEO for the interim. Bryan Perino, a proposed executive director and member of the acquiring management team, as well as a 15-year company veteran said, “In addition to executing on our mission to create Raving Fans, we are evalu-

OVER 50 DELIVERY VEHICLES WITHIN PARTNER NETWORK

ating additional resources to expand our business through inorganic acquisitions of regional multiple shop operators across the United States.” Lee Blank, another proposed executive director and member of the acquiring management team, as well as a 23-year veteran of the company said, “Our executive team recognizes we can generate significant value for our customers, employees, suppliers and shareholders through this acquisition and look forward to helping lead the business into the next generation. We will diligently focus on quality, delivery and cost, producing quality repairs and service for vehicle owners and our insurance customers.” Collision Revision, Inc. was founded in 1976 by Roger A. D’Orazio, Jr. at the age of 17. The company currently operates 29 repair centers throughout Illinois (26), Indiana (2) and Florida (1) and completes over 28,000 repair orders per year. Roger A. D’Orazio, Jr. also founded and is the chairman of DORA Holdings, Inc. a private holding company with operating interests in automotive (new, used car vehicle sales, including consumer financing and reinsurance).

Cars Needed at College Auto Programs for Students to Develop Skills On

Students in the auto repair programs at Ridgewater College in Willmar, MI can’t learn how to fix car engines, transmissions, bodies and bumpers without cars to work on. Through the Ridgewater College Foundation, the auto body collision repair and auto technology programs have put out a plea to the community seeking car donations to replenish their supply of cars for department use. The departments are seeking new–model passenger vehicles and prefer the cars to be in working order, but will also take cars that are not currently running, according to auto body program instructor Joe Wambeke. The donated vehicles are used for two years of student instruction. Auto technology students will use the engines to create and fix engine problems. The auto body students use just about every part of the interior and exterior of the vehicles to learn and practice, Wambeke said. “We use the cars until we can’t use them anymore,” he said. The students start their future trade by making dents in the fenders

and body, and then fixing those dents. Then they cut holes in the body panels and patch and fix the holes. They remove interior components, take the engines out and put the engines back in. They also paint the cars and learn pin–striping techniques. As part of their training, students delve deeper into the car’s parts and take apart the key components, including the drive train, the transmission, the suspension and the engine. The departments also take the air bags out of the vehicles and use them during presentations about vehicle and passenger safety. “There’s not much we don’t use,” Wambeke said. He estimated the departments use between six and 10 cars a year. To donate a vehicle, call Angie Harrison at 320-222-6095 or email angela.harrison@ridgewater.edu. Those donating vehicles are asked to make an appointment to bring the vehicle, title and keys to the college. A one-page donation form is also required to be completed. A receipt will be mailed as required by the Internal Revenue Service for tax deduction purposes.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 7

Gloy’s Roadster Wins Goodguys 2012 Tank’s Hot Rod of the Year Tank’s Hot Rod of the Year award at the Goodguys 2nd WIX Filters Speedway Tom Gloy made a career out of sittin’ Nationals in Indianapolis, IN. Gloy’s low flying roadster was low and drivin’ fast. In a racing career that spanned more than 25 years, Gloy born during a conversation with Roy Brizio a few years back as the two collected a Trans Am World Champidrove to the Bonneville Salt Flats. Gloy wanted a channeled ’32 Ford roadster but Brizio cautioned “Channeled ’32 Fords aren’t very comfortable and when channeled they can look too wide.” He also told Gloy how the driver often “sat up too high” in the channeled cars he’d seen over the years. So that was the challenge — to build a This 1932 Ford roadster of former Indy Car racer and IMSA channeled, traditionally champion Tom Gloy was named Goodguys 2012 Tank’s styled roadster in which Tom Hot Rod of the Year could sit low and drive fast. To redesign the car’s front end, onship as well as a Formula Atlantic Brizio and his build team narrowed title. He drove in six IndyCar races inthe cowl, grill and windshield. They cluding a start in the 1984 Indy 500 finishing 14th. Recently, he returned to also sectioned the radiator shell 3½”. To get Tom down low in the seat, the Indianapolis Motor Speedway and unlike the 1984 trip, found himself all floorboards were radically lowered – alone in the winner’s circle this time more so than any other hot rod to roll around. His Brizio Street Rods-built ‘32 out of Brizio’s South San Francisco Ford roadster won the Goodguys 2012 stable. Out back, the rear quarters by John Drummond

rae

Reliable Automotive Equipment, inc.

were filled and smoothed and the rear wheels tucked tightly against the channeled body. The custom Brizio chassis features torsion bar suspension from Moal Coachbuilders and a classic hot rod rake courtesy of the chromed Magnum 5-inch dropped axle. Custom made 18 and 16-inch ET knockoff wheels are enhanced with custom

machined caliper brackets designed to fill the backside of the wheels (inspired by Bonneville style Moon discs). The 302-inch, Hilborn EFI Ford crate motor and Tremec 5-speed get the roadster up to speed in hurry then stops on a dime courtesy of Wilwood brakes.

Bay Area body & paint specialist Darryl Hollenbeck of Vintage Color Studio spent many hours perfecting the car’s classic finish – mid 50’s Porsche blue which perfectly contrasts the red leather interior stitched by Sid Chavers. Gloy, who now lives near Lake Tahoe, NV, got the channeled Bonneville-inspired roadster he dreamed of and a talented team of Bay Area craftsmen, led by Brizio pulled off the challenge of getting it to sit and look just right. But that’s not all. Gloy got a driver, or as the late Gray Baskerville of Hot Rod Magazine was fond of saying a “reacher.” To prove it, he strapped in and drove the car over 2,000 miles from his home in Nevada to Indy, this time with a victorious result. The top five finalists for the Goodguys 2012 Tank’s Hot Rod of the Year award included, Keith Hill, Bixby, OK (’34 Ford), Tom Gloy, Incline Village, NV (’32 Ford), Tim Kirby, Fountain Hills, AZ (’33 Ford), Henry Richards, Mansfield, OH (’32 Ford) and Larry Christensen, Arvada, CO (’32 Ford).

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Attorney Says Proposed MI Law Will Eliminate Accident Lawsuits A Michigan accident attorney says a proposed new law will eliminate most car accident lawsuits in the state. HB 5864, introduced on Sept. 11 by representatives Lisa Lyons and Joe Haveman, will eliminate Constitutional 7th Amendment right for nearly everyone and grants auto insurance companies immunity on tort claims, says auto accident attorney Steven Gursten. HB 5864 will essentially wipe out auto accident lawsuits in Michigan, said Gursten, head of Farmington Hills-based Michigan Auto Law. “HB 5864 keeps the profits intact for the state’s auto insurance companies, but then grants them immunity by raising the tort threshold so high that virtually everyone would be barred from the courtroom,” Gursten said. “My main concern is that HB 5864 intentionally destroys the balance in Michigan that our No-Fault system is based upon. We are a No-Fault state, where people recover No-Fault insurance benefits if they’re injured in a car accident. But the balance is that our law requires that injuries from a car accident must be sufficiently serious to

bring a lawsuit for pain and suffering compensation against a negligent driver and his insurance company,” Gursten said. “HB 5864 destroys this balance. It is quite conceivable that if this bill becomes law, it would eliminate almost all pain and suffering lawsuits against negligent drivers and drunk drivers in Michigan,” he said. According to Gursten, the bill seeks to redefine all three injury threshold elements that currently exist under Michigan law. His analysis is as follows: HB 5864 seeks to redefine objective manifestation to require a “medically identifiable” injury or medically identifiable physical condition. It also now requires that this medically identifiable physical condition be “caused by the accident” and further that it “substantiates” a car accident victim’s complaints, restrictions and impairments. “This means people who suffer very common injuries from car accidents will now be barred from the courtroom,” Gursten said, noting people who suffer incapacitating injuries

such as disabling post-traumatic headaches, tinnitus, or Chronic Pain Syndrome. “Why would we allow someone driven almost to the point of suicide and who will never be able to return to work again because of a tinnitus injury, for instance, to have his 7th Amendment right to a jury trial under the U.S. Constitution arbitrarily be taken away?” Pre-existing medical conditions will likely also be wiped out, Gursten said. “This new objective manifestation requirement would arguably disqualify many car accident victims who suffer from pre-existing medical conditions that were not caused by the car accident, but which were significantly aggravated by the car accident.” The new definition is that a body function is only important if it is “important to an average person, rather than important to the injured person.” “This new definition will certainly disqualify accident victims whose ordinary, normal life requires abilities that the “average person” does not require,” Gursten said. “For example, “important body function” is the frac-

tured finger injury that causes loss of motion. That fractured finger may be utterly devastating to the neurosurgeon or the violinist, but most likely will not be “important” to an ‘average person.’” HB 5864 requires that the impairment be “of sufficient severity and duration to affect the course and trajectory of the injured person’s entire pre-accident normal life.” “Course and trajectory” is meant to impose very long durational/temporal elements that will cause horrible injuries that caused almost total disability but that resolved within a year or so, to be dismissed. But HB 5864 then goes even further, Gursten added. “Entire pre-accident normal life” is also completely new. “And it is the worst language by far in a bill that is itself a near complete destruction of people’s constitutional rights,” he said. “The real danger is that a judge with a political agenda can now use ‘course and trajectory’ and ‘entire preaccident normal life’ to dismiss nearly any injury or case or person they don’t like,” Gursten said.

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Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’

Autobody News asked former State Farm Estimatics Team Manager Steve Plier about his thoughts on PartsTrader earlier this month. Plier worked for State Farm for more than 22 years, starting out in 1987 as a property damage claim representative handling auto claims, and in 1993, he moved into a supervisory position where he spent the last 13 years of his State Farm career as an estimatics team manager. Today, Steve Plier is president of Consumer Auto Repair Excellence, Inc. (CARE).

ABN: Why did you quit State Farm? Plier: I resigned my position at State Farm because my responsibilities were being defined as ‘manage in a perfect world by numbers.’ More often than not, in this industry, reality is much different than the perfect world. Reports/scorecards of repairers are formed through a perfect world computerized format. For example: new parts can and are often damaged in shipping, causing returns and delays; used parts often are not of quality to be used in the repair process; vehicle owners often leave their vehicles (that are safe to drive) at repairers on Fridays because a claims representative has ok’d a rental. These examples are only a few that come to mind that can affect a repairer’s scorecard. Some of the numbers/averages on the scorecard include formulas that have key performance indicators in a weighted format that could never be explained as how the particular number/average score was determined. Not a comfortable situation when attempting to discuss a repairer’s performance considering we do not live in a perfect world.

ABN: What do you think of the PartsTrader pilot program? Plier: My opinion of the Partstrader program is not positive. The information provided to me by repairers on

the program, from individuals that were in meetings with State Farm employees during the test pilot roll out in Alabama, the information that is being provided by the many different publications and the information provided by State Farm Consultant George Avery at the recent Georgia Collision Industry Association meeting indicate to me there are a lot of questions that State Farm and/or PartsTrader either refuse to answer or do not have an answer for. I would suggest everyone to consider if something is mandated, why is it being mandated? Items, programs, actions, etc. that have to be mandated usually have a lot more bad for a large multiple sectored group than good. Is this the reason the portion of the Select Service agreement is being actively enforced on this program? Any repairer on the Select Service program agreed if requested/required by State Farm to use a parts locating/procurement program they would. There are several others sections within the Select Service agreement with the same type language that repairers have agreed to. ABN: Why do you think State Farm introduced this program? Where do you think State Farm is going with it? Plier: I feel there are multiple reasons. First and for the immediate time, I feel State Farm was aware of manufacturers offering parts pricing match programs and believed the implementation of a program such as PartsTrader could lead to suppliers taking an aggressive approach to expand business by reducing prices in a bid/quote program such as this. However, I believe the bigger purpose here is if successfully implemented, this would open the door to the other sections of the Select Service agreement requiring additional actions from repairers as agreed to such as this.

ABN: How do you think the program will affect the industry? Repairers are saying this pilot program is inefficient and costs them more than its worth. Plier: I feel if State Farm is successful with this program resulting in mandated use of locating and procurement systems, the balance of the insurance industry will quickly follow with the same or similar programs. My opinion is this will not be good news for the consumer. I know State Farm is saying this is intended to be focused on claims expense and no one

12 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

should be against anything that might result in reduced cost, and according to State Farm, a possible reduction in premiums for policyholders. I am currently a State Farm policyholder; I definitely want my premiums to be as cheap as possible, but even more importantly, I want my vehicle repaired properly. For repairers to keep up with the ever-changing technology, training is a must. Equipment requirements must be maintained so if programs such as this affect industry members’ ability to meet these needs it is not good. I have read and heard Mr. Avery say State Farm does not want to tell repairers who to buy from, but I have not heard State Farm address the actual inefficiencies that to date I have seen this program cause to repairers and other inefficiencies I have been told of by repairers. There does not seem to be any concern from State Farm and/or Partstrader that this program does indeed have an additional labor and administrative time/expense associated to it for the repairer and supplier. I read in an article, that according to the writer, the repairers they had spoken with suggested an average additional 30 minutes per day. The repairers I have spoken with in Birmingham suggest to me they approximate spending an average of an additional 30 minutes per claim. Birmingham repairers note you may have some claims that only require an additional five to ten minutes of additional time, but you also have those claims they may require an additional hour of administrative time. I have not spoken specifically with any parts suppliers on the PartsTrader list, but feel any supplier on the Partstrader list is also incurring additional administrative time and expenses if they are following the rules of the program.

ABN: Does this program offer any benefits to the repairers? Plier: Based on the current information provided and from the feedback received from Birmingham area repairers, I have not been able to identify what I would consider a benefit for a repairer on the program. State Farm has stated they have received positive feedback from their evaluations, the only thing is, to my knowledge, State Farm has not to this date provided a single item with the industry that can be viewed as positive

feedback. If there has been anything positive for the repairer, I have not heard nor have I read about it.

ABN: With repairers highly wary of the program, what do you think the solution is? Plier: I feel the distrust and confrontational nature of this industry between the two parties are much deeper than this program. I am not sure there is a simple solution for this issue if all sides must benefit. If attempts are made to identify efficient alternatives, both sides must work together to identify the many different possibilities. There already exist electronic ordering opportunities used by many repairers, so if there is ever to be a solution that all sides agree to, I feel there will be multiple businesses/ venders to choose from. I do not feel mandating a particular program is the answer.

ABN: Was State Farm too aggressive in launching this program? Plier: Considering the information that has been provided to the industry, ‘yes.’ I do not believe the details had been thoroughly reviewed and considered.

ABN: What does it suggest to you when State Farm can’t come up with a single benefit to repairers? Plier: Maybe because there is not a single benefit associated to the shop in regards to this program. I believe if State Farm had identified benefits for the shops and or the suppliers, we would all have heard about them by now.

ABN: What kind of damage control could State Farm do now? Plier: I’m not sure there is a definite single thing that could be focused on here. There are many issues in the repair industry that need to be addressed for the “RIGHT REASON”—the consumer. Many of these issues have been around for many years, but have never been addressed. As rules identified in repair agreements continue to expand, the magnification of the many issues grow. For example: the need for an independent third-party survey process to identify a competitive pricing range; the agreement that the repair procedure pages are not pick and choose, but will be honored completely at all times, just to name a couple. See Steve Plier, Page 21

Industry Insight

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.

NACE Keynote Speech Focuses on Thinking about Business with John Yoswick

During his keynote address at the 2012 International Autobody Congress & Exposition (NACE) in New Orelans, LA, last month, former CARSTAR CEO Dick Cross offered his corollary to a Mahatma Gandhi quote by telling a crowd of 800 attendees, “A business is but the product of the CEO’s thoughts. What she thinks, it becomes.” It’s a concept NACE organizers themselves may need to keep in mind as they acknowledged that while this year’s show offered “some big wins,” it also was down slightly in terms of both exhibitors and attendees.

Twenty minutes, three times a week Cross kicked off the event by saying that although the business successes that he’s had that were cited in his introduction are true, his career has not been a “charmed path.” “I have probably over two-and-ahalf decades made every business mistake that everyone in this audiences has made, and maybe even some of them that you would never make,” Cross said. “Unintentionally, I have made decisions that have hurt business performance. I have failed to create circumstances that would allow everyone to make their contribution to the cause. I have terminated people that I have wondered in the aftermath whether it was the right thing to do. There were times in my career when I hesitated to lay my job as CEO on the line, to stand my ground for what I knew was right. But as painful as all those things are to remember and think about, they are the things that drove my obsession to understand and to become very good, at the job at the top.” In addition to leading CARSTAR from 2005–10, Cross has been brought in by private equity firms to run a halfdozen other under-performing companies, and through his consulting firm, he said he’s helped more than 150 other CEOs improve their company’s performance. He said one of the biggest failings he sees among many business owners and CEOs is not regularly setting aside time to just think about the business. “For most of us in this room, thinking is the hardest work that we have to do,” he said. “If there’s anything else to occupy our time besides

thinking, we’ll generally be doing it. My observation is that about 90 percent of the time, most of the CEOs in the United States are doing things that have nothing to do with this job at the top. But thinking helps you understand what the possibilities of your business could be, and helps you to understand generally how to make it happen.”

Dick Cross, former CEO of CARSTAR, presented concepts from his book, “Just Run It!” Copies on display sold out quickly

He offered several “big picture” ways that CEOs should think about the business. For example, he said that businesses are like products in that they have a lifecycle; they begin with an idea, an embryo, and then some go on to grow and mature. Whether they go on to continued success or wither and die, Cross said, is often up to the person at the top, who can either get complacent and coast—usually leading to the company’s demise—or who can restart the cycle by finding a new set of customers for the business or by finding other ways to serve the needs of existing customers. Cross said good CEOs also recognize the difference between leadership and management. Leadership, he said, sets in front of others very enticing goals and helps make them want to help achieve those things. Management is only about assembling the resources needed to execute on that vision. At CARSTAR, he cited as an example, he worked to help everyone in the organization realize their purpose wasn’t to just fix cars. “The purpose of CARSTAR became: We help people though a crisis in their lives,” Cross said. The kind of thinking that makes

companies succeed, Cross said, can be accomplished by those at the top who set aside 20 minutes a day, three days a week, to tune out other day-to-day distractions and just think about the business. “Running a business is not a fulltime job,” Cross said. “You probably spend most of your time doing other stuff, stuff that others ought to be doing themselves rather than having you do it. But you can do a great job running your business 20 minutes, a day three days a week, thinking about those things.”

Show leaders offer their view Two years after shifting away from holding NACE in Las Vegas each fall, event organizers cited a number of reasons attendance may have been down this year, from the still-slowly-recovering economy to the New Orleans location, which has fewer shops than Orlando within an easy-to-drive distance. “Attendance at all the key (show)

events was up,” Lindsay Roberts of Hanley Wood, who manages the show for its sponsor, the Automotive Service Association, said just hours before the show closed. “We had some major players who hadn’t exhibited at the show for a while. We got some of the paint companies back. We got some of the OEMs back. But we are a little disappointed. Total attendance is going to be down. It’s pretty hard to compare to the Orlando last year where we up over 20 percent from the 2010 event. We had really hoped we would see that growth through to this year. We’ll release final numbers probably within the next five to seven days. But we do think we’re going to be slightly down over last year.” But Roberts chiefly cited a continued decline in the number of companies exhibiting at the show, which is down about 17 percent from as recently as 2010. “What we need is more product, See NACE Keynote Speech, Page 16

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 13

NACE Sees Fewer People, But Quality Events Collision repair professionals from across North America came together recently at NACE in New Orleans, LA, to network, see the latest and greatest in equipment and products, and to contemplate a smaller but still high-quality event. Some 225 companies occupied 50,000 sq. ft. of exhibit space but attendees were fewer in number from last year’s Orlando venue. “It was a great pleasure to have Dick Cross open the 30th Anniversary general session,” said Ron Pyle, ASA president. “He delivered a practical and easy-to-implement plan for success. I am sure everyone in attendance agrees that he was extremely motivational and an excellent choice to kick off this very special ASRW.”

Leadership and Management Tactics NACE began October 10 with a series of seminars and lectures regarding sales tactics and innovation of paint and materials, including The Art of the Deal—Acquiring and Developing New Locations; Marketing to Generations X and Y; and Paint and Materials: The Paradigm Shift. The afternoon sessions saw a focus on leadership, delegation and customer management tactics, aimed at retaining and appeasing your staff and customers. Seminars included Leadership Best Practices—How to Inspire, Delegate and Coach Your Team to Success, by Mike Anderson; Calming and Retaining Angry Customers, by Margie Seyfer and Guilt by Association—Defining Your Image, by Tony Nethery. Kurt Lammon of Urethane Supply Company instructed viewers on how to properly weld plastic with nitrogen, while Dan Espersen of ALLDATA taught the best practical applications of OEM Information. I-CAR spokesmen Bob Zelano and Jeff Poole ran afternoon seminars on Corrosion Protection and Hazardous Materials, Personal Safety and Refinish Safety, respectively. The first day of NACE was capped off with the Assembly, a confidential, closed-door forum for collision repairers. Profit Building NACE continued with tutorials, demonstrations and information pertaining to every aspect of the collision repair industry. The exposition portion of the event also opened at 10:00 am, offering the latest products, services

and technologies from industry leaders. The Profit Building Pavilion portion of the exposition showcased vendors with customer-driven products, such as Autoshop Solutions, Demandforce, Mudlick Mail Co. and Net Driven Media.

Ron Pyle, ASA President and ASRW Chair

The morning of Oct. 10 saw several seminars headed by I-CAR. Bob Zelano ran a seminar on automotive foams and Tony Nethery instructed participants on proper measuring methods. Educational highlights included ICAR representative Shawn Collins’s workshop on Blueprinting Process and Damage Discovery, (BLU01); I-CAR’s Bob Zelano presenting the Steel Unit-

Margie Seyfer presenting Calming and Retaining Angry Customers

ized Structures Technologies and Repair class and Bryan Dodge of Dodge Development’s presentation on balancing your work and life.

Blueprinting Process and Damage Discovery This new course provided an interactive training experience and was filled to capacity during both sessions. ICAR offered special premiere pricing for this course launch with a cost savings of $56 for standard pricing. The new Live Demo course demonstrates I-CAR’s commitment to increased student interaction in the classroom and uses an actual vehicle to demonstrate technique while engaging students in the learning process.

14 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Rich Southerland of Alldata attended the Thursday premiere of Blueprinting Process and Damage Discovery and stated, “This is the best I-CAR class I’ve attended. I couldn’t imagine how this would not benefit any tech or shop employee.” The course led students beyond the disassembly of damaged parts to help them uncover hidden damage that can impact the repair process and provided a number of demonstrations, including quick checks and implementation tips. Students who attended the course gained an understanding of the definition of the blueprinting process and how the process can help improve repair quality through a standardized approach to collision repair planning. The day wound down with the ASRW Welcome Party, sponsored by CCC, was held at the iconic Mardi Gras World venue, basically a warehouse of larger than life characters used on floats and in Mardi Gras themed events. Attendees were toured through the warehouse where Mardi

Gras floats are manufactured, and ended up at the Grand Oaks Mansion next door where some excellent local dishes were offered. NACE events on Oct. 11 ended with the ASRW Industry Awards ceremony completing the second day of NACE. The ceremony was held at the National World War Two museum. The NACE conference continued on Oct. 11 with several I-CAR seminars, human resource tutorials and team development clinics. The ASRW Collision Forum also took place in the morning.

MSO Symposium The ten-and-a-half-hour MSO (Multistore operators) Symposium hosted by Matthew Ohrnstein of Symphony Advisors took place Friday. The symposium spanned the duration of the NACE Friday schedule and was comprised of five panels that aimed to help multi-store business owners, many of whom take over failing operations in order to rejuvenate them, improve aspects of their businesses including culture, branding, customer relations, leadership and finance. See Fewer People, Page 16

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 15

Continued from Page 14

Fewer People

The MSO Symposium also included networking opportunities for owners, and ended with a networking reception in the evening. Shawn Collins held his second seminar on Blueprinting Process and Damage Discovery, while Bob Zelano taught the second Structural Straightening Steel seminar, both hosted by ICAR. The seminars were add-on educational seminars available on both Thursday and Friday. OEMs including General Motors, Toyota and Nissan all sponsored booths during the show, offering promotional giveaways and showcasing new products.

Expo Floor Some highlights from the on-floor demo area included exhibits from Innova Electronics Corp. on how their CarScan tools benefit shops and CAS of New England revealing The Truth About Programming in Today’s Vehicles. Kaeser Compressors created an informative technical (not sales-oriented) presentation titled “Compressed Air Requirements for Waterborne Paints.” It was held October 10 to help repairers

make practical choices for their shops. Topics included: sources of moisture and contaminants, air system components that affect paints and finishes, the

Mike Anderson, CollisionAdvice.com spoke on Financial Best Practices

impact of air amplifiers and more. Some workshops on Friday afternoon focused on the financial aspect of collision repair. Mike Anderson of CollisonAdvice.com spoke on measuring performance in Financial Best Practices. Dan Stander of FIX Auto Highland Ranch moderated The Keys to Successful Estimating! panel, in which data providers addressed audience questions. Denise Caspersen of ASA and Melissa Miller of CARSTAR encouraged women to be courageous leaders in their seminar, one of several in the

16 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Women’s Professional Development track of NACE. (See story this issue.)

Twenty 2.0 peer benchmarking A new-to-NACE-this-year, Twenty 2.0 peer benchmarking event was attended by about 20 repairers and ran on Friday afternoon hosted by keynote speaker Dick Cross. Twenty 2.0 is/was a peer benchmarking/virtual 20 group concept, applicable to both mechanical service/repair and collision repair shop owners focused on doing “the job at the top.” The 90-minute session began with a half hour introductory session, followed by an hour-long breakout session. All participants had the opportunity to enroll in the formal (ongoing) Twenty 2.0 virtual 20 group at the conclusion of the session. “Shop owners interested in obtaining the value of participating in a 20 group process with a non-traditional time or financial investment won’t want to miss this unique session,” said ASA president Ron Pyle in advance of the event. “We’ve taken the 20 group concept and upgraded it to the digital age. Participants who formally enroll will receive all the benefits of belonging to a 20 group, with a virtual twist.”

Continued from Page 13

NACE Keynote Speech

more exhibitors on the show floor,” Roberts said. “We need to give attendees three days worth of product and people to network with. We need the executives from these major companies who were here walking the aisles to have booth space on the show floor and to support the show.” She did say that more than 40 companies have already signed on for next year’s event, up one-third from the number who had signed contracts for this year’s show during the 2011 event. But NACE organizers have also given themselves the added challenge of holding the 2013 event in Las Vegas next October 16–19—in the same city just two weeks before SEMA, which has been working to attract collision repair industry exhibitors and attendees. That may have been one of the reasons NACE organizers took the unprecedented step of also announcing that two years from now NACE will again be on the east coast, returning to the city that hosted the very first NACE back in 1983: Nashville, TN.

Ivy Tech College’s New $900,000 Collision Center Ivy Tech Community College–Northeast dedicated its new $900,000 Auto Body Center on Oct. 4. Located in Fort Wayne, IN, the 10,000 square-

Mansa Wimes, an automotive technology student at Ivy Tech Community College with a concentration in body repair, looks through the windows of a paint booth with his classmates after the dedication of Ivy Tech’s new Auto Body Center, 7717 Opportunity Drive. The $900,000 center sits on two acres and, at 10,000 square feet, can accommodate 255 students. The move gives the program more space for students and will allow the program to increase course offerings

foot building houses the college’s Auto Body portion of its Automotive Technology program through the School of Technology. Ivy Tech moved the collision repair courses, previously located at

Glenbrook Hyundai, to the new facility this summer. The move allows for additional course offerings and alleviates capacity constraints experienced by the automotive program at its previous facility. New courses will include waterborne refinishing material and techniques. This new technology allows students to be on the forefront of these new processes and allows them to enter into the workforce with the training and background now being used in the automotive industry. “This new space provides students focusing in auto body repair state-of-the-art paint booths in an environment appropriate to the industry, as well as classroom space that enables a high level of learning and student engagement,” said Chancellor Jerrilee K. Mosier. The new Ivy Tech Auto Body Center is situated on two acres in the Cook Road Office and Industrial Park. Not only does this location remove the previous capacity constraints, it allows for continued growth and expansion. The facility includes two acres of land and more than doubles the

prior seating capacity (an additional 255 students per week) and provides a lab setting similar to what is found within the industry.

Ivy Tech students Kyle Sprowl, left, and Courtney Stroud clean a replacement fender for a 2004 Taurus Thursday before painting it. Ivy Tech officials Thursday dedicated the new $900,000 Auto Body Center at 7717 Opportunity Drive, off Cook Road near Lima Road. (By Bob Caylor of The News-Sentinel)

“Automotive body repair is one of our region’s strengths,” said Robert Huffman, program chair of the Automotive Technology program. “With this facility, Ivy Tech is in an ideal position to help provide the training and education needed to meet the demand for skilled workers in this field.”

AASP-MN Announces Fall Seminars Line-Up

AASP-MN will host “Audi & Volkswagen Diagnostics,” on Wednesday, Nov. 14 from 4:00-7:30 p.m., at Dunwoody College of Technology, Minneapolis. William Krug of IDENTIFIX will present the session, which will cover how to read Audi/VW wiring diagrams and how to use the diagrams for faster, more focused diagnostics. Attendees will learn how the factory scan tool is set up and how the various functions can be used to find the cause of concern. The ins and outs of late model A/C systems will also be covered. Thursday, November 29, 2012, AASP-MN will host “No B.S. Guide to Converting Telephone Leads into Paying Customers.” The seminar, presented by Jeremy O’Neal of Advisorfix.com, will be held from 4:00 – 7:00 p.m., at Dunwoody College of Technology, Minneapolis. 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.

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Paint Management

E-Coated Parts Procedure with Stefan Gesterkamp

For some months now, people keep asking me why I haven’t recently contributed to Autobody News. The answer is simple, I didn’t feel I had anything interesting or of value to write about. This changed a few weeks ago. As a paint manufacturer’s rep, there is not a month that goes by without being put in the middle of collision repairers and insurers, expected to chime in on a dispute about what is necessary for a proper repair. One of my customers called and informed me that an insurance agent declined to pay for priming or sealing new ecoated parts. The agent told my customer that sealing or priming new parts wasn’t a necessary step in a proper repair process. Anybody that knows me well will not be surprised to learn that I got very excited about this statement. How can someone in our industry make such an irresponsible statement? And then I leaned back and thought about this for a moment. During the course of a year, I visit hundreds of shops and have witnessed this exact procedure performed more often than I cared to admit. By simply looking around our industry, an insurance agent that likely never had to repair a vehicle for a living could easily get the impression that sealing or priming new parts is an optional, but not necessary, step in a repair process. I feel comfortable about the fact that most, if not all major paint manufacturers will agree with me, painting directly over e-coat is not a recommended repair process. Furthermore, paint failure as a result of this practice would not be covered by most manufacturer’s warranties. There are several problems with painting directly over e-coated parts. Although OEM e-coat is an excellent corrosion protection coating (not sure about some of the aftermarket parts), e-coat contains no UV protection package. E-coat is generally epoxy based and unless completely shielded from UV rays, its surface can become unstable. Resulting in paint layer separation and peeling. Some of the newbies in our industry may not remember the early 90’, but many of us do. How many GM and Chrysler

factory paint peelers did you repair in your professional career? These cars and trucks peeled for the same reason, UV exposure to the e-coated surface. If you repaired one of these vehicles, you likely remember that the surface of the vehicle was powdery after you peeled of the paint layer. This powdery subtends that easily rubbed off onto your fingers was the top layer of deteriorated e-coat. Just put enough paint on it and you should be fine, right? I wish it were that easy. The first problem with this thought process is: how much is enough? Are you thinking 4, 5, or 6 coats of paint? 8 to 10 coats on some reds? The truth is that no one knows when full coverage is achieved during the paint process. Take a piece of glass and paint it with basecoat and clear. After it cured completely, hold it up to the sun and see if any light penetrates through. Attempting this exercise will quickly demonstrate that this approach doesn’t work. It takes much more paint than anticipated before 100% coverage is achieved through basecoat application. Protecting the integrity of your work through sealing or priming instantly emerges as a more cost effective solution. And if cost wouldn’t be a factor, the resulting high film build of basecoat color would present a paint problem of its own. The next issue with painting directly over e-coat is stone ship resistance. E-coat is a very hard coating. The difference in hardness between ecoat and basecoat is too great for a long lasting paint finish. The application of a primer or sealer to the e-coat will bridge this cap. Although there is no way of fully preventing rock chips from happening, a sealed or primed surface will outperform an e-coated surface after impact by a large margin. The last point I like to make is the surface prep. E-coat is a hard surface and sanding it can be a workout. 90% of shops will use a DA sander to prep the e-coated surface. If you don’t seal or prime the part, how do you know if you left enough e-coat behind for proper corrosion protection? Most ecoat layers are only 0.5 to 1 mil to start with. My observations suggest

18 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”

that 70% of all sanded e-coat surfaces display some level of transparency or bare metal surfaces. Unfortunately, I have seen people paint right over that too. When asked why, the most frequent explanation I receive from shops that paint directly over e-coat is cycle time. Shops don’t feel that they can afford to give up the time to seal parts in the booth. While I appreciate the value of cycle time and booth hours, it is no excuse for painting directly over e-coat. Nobody says you have to do it as a part of your final paint work, in a matter of fact, I strongly advice against it. I propose sealing parts ahead of time, ideally as part of the cut-in process. Put one good coat of sealer on the outside of the part, let it flash off to a point that you can safely turn them over and cutin the rest. All the shop has to do after hanging the part is giving the sealer a light scuff by hand for adhesion, clean

and paint. This process allows the shop to maintain booth KPIs and put out a quality repair at the same time. As an added bonus, you will also improve coverage and color match as well.

Cleveland, OH, Body Shop’s Expansion OK’d

Parma City, OH, Council has approved a plan by A Touch of Class Auto Body Inc., 1611 Brookpark Road in Cleveland, to expand its existing business and construct a second building for auto-body detailing. The shop will add 1,400 square feet to its existing 6,347-square-foot building. The new detailing building will measure 1,225 square feet. The plan included several zoning variances, including those for: • maximum lot coverage (30% allowed). 44% for Touch of Class. • rear building setback (at least 12 ft required). Part of new shop building would stand on the property line.

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jeffgoetz@rickcase.com www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 19

Company Connections

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

The NitroTech Spray Generator Controls the Uncontrollable with Chasidy Rae Sisk

For many collision shops, spray painting with compressed air means dealing with uncontrollable or difficult to control variables, including temperature, humidity and pressure. “Compressed air is a problem because air changes based on temperature, altitude, and other variables that cannot be readily controlled,” says Michael Haydell, president of Haydell Industries. As a result, the viscosity of painting material also changes with each use due to moisture and temperature, as well as the build-up of static electricity. Static makes the material do what it wants to do, not what the painter wants it to do. Haydell Industries offers a solution to this dilemma in the form of their NitroTech Spray Generator. Their vision is to “be the premier provider of Innovative solutions and systems for customers’ productivity,” and they achieve this through their values of integrity, excellence, com-

munication and accountability. Haydell Industries was founded in 1986 by Michael Haydell as a manufacturing representative company. But their focus changed to the production and distribution of nitrogen-based spray systems in 2005. They also now sell a variety of shop equipment, including industrial paint booths and filters. The use of inert nitrogen offers painters a gas to spray with, providing a more consistent finish. This leads to a reduction in the use of wet materials, an increase in booth throughput, and a decrease in the cost of booth exhaust filters. As an added bonus, the NitroTech Spray Generator is also environmentally friendly as it significantly reduces the VOCs and HAPs released into the air. Haydell Industries separates the impurities at a gas level to redirect the air’s properties, and by controlling the temperature through their hose, they are also able to control viscosity, while

20 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

using ionization processes to eliminate static electricity. This uses less paint as the nitrogen allows the substrate to be fully covered in fewer coats than can be accomplished using compressed air. Though an air compressor is still necessary to supply the NitroTech Spray Generator with compressed air, the compressed air is replaced by a perfect fluid carrier of Nitrogen, Argon and/or Carbon Dioxide. The system can easily be integrated into a shop’s existing system without changing spray equipment, processes or the preferred coating. The only maintenance required for Haydell’s Nitrogen system is a change of inlet air filters once a year. Since Haydell Industries’ NitroTech Spray Generators reduce the use of materials by 30–50%, collision shops can save up to 20–30% in material costs by integrating this technology into their repairs. Nitrogen spray also reduces application time by 30–50%, providing even more savings in man hours.

Haydell Industries received their patent for the third generation of their Nitrogen Technology in May 2012. Michael Haydell proudly states, “Our newest generation uses 250% less compressed air than the first generation, making it 250% more efficient.” Haydell Industries’ impressive list of clientele includes Boeing, Mercedes-Benz and Hendricks Motor Sports. Their website claims, “we are gaining momentum, ensuring we remain in the forefront of any competition, as we keep a firm hold on Advanced Application Technologies through our nationwide distribution network...

Haydell Industries can be reached at: 163 Pellerin Road Lafayette, LA 70560 1-800-877-4362 1-337-989-0307 (fax) www.haydell.com info@haydell.com

Continued from Page 12

Steve Plier

ABN: What should affected shops be doing right now about PartsTrader? Plier: My recommendation would be for each and every repairer on the Select Service repair program or any repair program to review their program agreements and then reread them again. List questions or concerns identified in the agreements and contact the particular insurance company to discuss any questions or concerns. After any discussions, make a business decision based on consideration of all factors of what you feel is in the best interest of your business.

ABN: What is the background of State Farm’s previous efforts on this issue? Plier: State Farm had a trial program in California and Indiana in 2009, but discontinued the program after Chrysler filed for bankruptcy and GM accepted a government bailout in 2009. The trial was structured differently then as compared to the PartsTrader program now.

About CARE Plier started his business, CARE, in

2010 after leaving State Farm. His goal, focus and efforts with Consumer Auto Repair Excellence, Inc. has been to assist repair facility owners and manager with a better understanding of simple business principles, such as understanding their business operating cost and the importance of quality control programs, and to understand simple things involved in the repair process, that if itemized, they should and could be compensated for by the majority of the insurance companies. The services provided by CARE also involve assistance to repairers by investigating issues and questions that repairers encounter and providing documentation to back the recommended positions. Plier assists repairers with identifying possible solutions that would be beneficial to the industry and in particular focused on what is appropriate and in the best interest of the consumer.

Steve Plier, President Consumer Auto Repair Excellence Inc. www.consumerautocare.com 205-623-9307

Re-tired, Not Retired, Says 79-yr old Shop Owner Ronald Koeller, the 79-yr old owner of R/K Autobody in Crystal Lake, IL, is not the retiring type. He was featured in an article written by Chris Cashman for McHenry County’s Northwest Herald. “I get retired every day,” Koeller told the paper. “I was tired yesterday, and I’m tired today.” Koeller works Tuesdays, Wednesdays and Thursdays at his shop, which has been open for business at 266 E. Prairie St. since 1979. Koeller writes estimates for repairs “and I make sure everything is running smoothly. If there’s a problem, I still have some expertise.” “He’s still hardworking,” said granddaughter Karen Kruse, who works as office manager. “Obviously, I’m proud of him.” Six people are employed at R/K Autobody, including manager Jon Nett. “If he enjoys it, it’s a great thing,” Nett said. “It keeps him young.” Koeller has been in the auto body business since 1956, when he got out of the Navy. He served for 3-1/2 years on the heavy cruiser USS St. Paul. He lived in Sleepy Hollow for 23 years before moving to Crystal Lake. His wife of 53 years, Elaine, was the office manager before she passed

away in 2009. The couple have three children, 11 grandchildren and eight great grandchildren. Elaine taught granddaughter Kruse how do to the books. Kruse has been working in the shop for four years and will graduate soon from Columbia College with a major in accounting and a minor in financial management. “She helps run the place when I’m on vacation,” Koeller said. “I don’t have to worry about it when I’m gone.” Koeller said business has been steady. “We’ve built long-time relationships with customers and referrals,” he said. “People drive their cars here from Chicago, and take the train back.” Koeller said he has no immediate plans to retire until the economy is on a litte more sound footing. “My wife and I were ready to retire, but things started to collapse, and we decided to hang on,” Koeller said. “Shortly after that we found out she had cancer.” After his wife’s death in 2009, he had a minor stroke. “It didn’t have any lasting effects,” he said. He volunteers at Good Shepherd Hospital for stroke survivors. He also is active in the Crystal Lake chamber and Crystal Lake Noon Rotary. R/K Autobody has been a member of the Crystal Lake chamber since 1979.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 21

John Shoemaker Coaches Shops to ‘Negotiate for Success’ by Melanie Anderson

John Shoemaker of Virginia is an Air Force veteran with 23 years service in the automotive field as a technician, trainer and formal instructor, and with several additional years as a collision center director for a major dealership group, overseeing three collision centers in Virginia. Shoemaker is now a consultant with JSE, a company he created to share 35 years’ worth of automotive management experience to assist collision centers in improving operations. During the 30th anniversary of NACE in New Orleans, LA, Shoemaker presented Negotiating for Success — a Look at the Negotiations Necessary to Keep Your Collision Center on Top. Negotiations, Shoemaker says, not only affect profits, but is important in preparing a contract or business deal. To negotiate successfully, several elements must be in place during the preliminary stage of a business deal. Those elements include establishing a set of core values, being honest and ethical, maintaining a standard that meets industry and customer expectations, delivering as agreed and responding to the customer’s needs. What is non-negotiable is making a profit. Are you a negotiator? You can be if you are confident, focused, able to stay on track and be unemotional. A successful negotiator will know the objective before he or she begins, be able to define the main issues and can focus on them one at a time. Negotiations will go much smoother if a win-win is determined. Always have supporting documentation as back-up, which can include manufacturers specifications, a complete damage appraisal and structure measurements. The person with the most information usually wins, says Shoemaker. One of the first steps to take when entering negotiations is identifying the appropriate person with whom to negotiate with. Develop a rapport with that person and determine their focus. Finding a common ground will help you to capitalize on similarities and keep the conversation from getting confrontational. Verbal tone and body language is important. Keep your emotions in check. It is important that you establish your repair standards up front. Have a complete damage appraisal prepared

and itemize each repair step required. Document only the repairs required and isolate prior damage. List customer concerns.

Negotiating with Insurers When dealing with insurers, review the entire appraisal and make a note of the ‘no’s’ but keep moving. Go back to the ‘no’s’ after reviewing the complete appraisal. Negotiate the repair first, then

the labor, but do not negotiate your repair standard. Realize that you will not see eye-to-eye with an insurer. Their job is to negotiate the cost down because they have specific numbers to meet and they are protective of their bonuses.

Negotiating with Insurer DRPs One of the best things you can do when negotiating with a DRP insurer is to develop a friendship and a rapport with the insurance adjuster and get to know the insurer’s agents. You want to create a good reference by ensuring the adjuster’s experience is always good. Promote your efficiencies and your customer service. But also make sure the adjuster knows what you want on their program. Agents are required to maintain training and this can be an opportunity for your shop to sponsor events. Having a manufacturer certification makes your facility more attractive to an insurer and helps establish credibility. Have space available for them to work. Use existing work to establish opportunity with the insurer. Look at the number of non-DRP repairs performed for the insurer and provide insurer performance reports for those repairs. This cements your abilities and proves a need.

Negotiating with Vendors When negotiating with vendors, determine a retail rate for services, such as towing, alignments, and glass work. With parts suppliers, explain your needs and cycle time mandates. Find out what they need to get the correct

22 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

part and incorporate electronic parts ordering. Give vendor complete order information to reduces parts errors. Negotiate inventory levels by defining guidelines for out-of-stock parts and require them to search other dealers. Establish a process for parts returns and coordinate order cut-off times. Set a different time for each vendor. In addition, define the delivery process and specify that only complete orders are delivered. Identify inspection requirements and negotiate parts price differences. Parts price differences are the #1 cause of supplements, Shoemaker says, while insurance companies strive for zero supplements. Set a reasonable dollar amount for a price matching estimating system and establish guidelines for higher amounts. Set a performance measurement tool in place to manage system reporting; to track parts returns and delivery delays, to identify damaged or wrong parts and the frequency.

Negotiating with Paint Suppliers Explain your needs to the paint supplier. Define the paint level required

and the flexibility you need in your paint line. Understand their distribution capabilities and specify your delivery expectations.

Negotiating with the Vehicle Owner Determine your customer’s need, identify their concerns and communicate to the customer so they know you understand them. Work to resolve the situation, not to sell. Provide a solution, but make sure you understand the complete situation before answering too quickly. Be flexible. Educate the customer on repairs required and write a complete damage appraisal. Is a complete repair needed and will aftermarket parts fit their need? It is easier to remove items than to add items later. Discuss a specific time for the repair and determine their transportation needs. In regards to payment, who is paying for the repair? Is it being processed through a third party? Is the customer aware of the deductible? Assist with claims processing and remember that vehicle owners don’t deal with this everyday. Help them to understand the process and be their advocate if necessary.

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Hours: M-F 7-6; Sat 8-4 www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 23

24 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 25

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 Honda Recalls 820,000 Civics, Pilots Over Headlight Problem

Honda recently expanded its March recall of vehicles with a low-beam headlight wiring issue to include 820,000 Civics and Pilots in North America, its second big expansion of a recall in recent days. “[A] potential failure with the wiring of the headlight switch ... may cause the low-beam headlights to become inoperative” in the model-year 2002-2003 Civic sedans and 2004-2005 Pilot sports utility vehicles that have been added to the recall, the carmaker said in a statement. Meanwhile, some 550,000 model-year 20022004 CR-Vs and 2003 Pilots were the vehicles named in the initial recall in March. Honda said the low-beam problem could “increase the risk of a crash,” but stated that “no crashes or injuries have been reported related to this issue.” The company advised owners of the models in question to take their cars to authorized Honda dealers for inspection and replacement of components in the headlight wiring system if necessary. Honda also recently expanded a May recall related to a leaky power steering hose to include 572,000 model-year 2003-2007 Accord V6 cars in the U.S., in addition to the 2007-2008 Acura TL models in the original recall. High temperatures under the hood on those models can cause the power steering hose to crack and leak fluid that could cause smoke or even a fire. Honda said one engine fire had been reported but no reported accidents or injuries had occurred as a result of the problem. The carmaker said owners of vehicles being recalled for the power steering hose issue wouldn't be able to have their cars fixed until early 2013 due to a shortage of parts. The company said it began mailing customers about the lowbeam recall in late September.

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GM Recalls 41,000 Chevy, Pontiac and Saturns Over Fuel Leak

General Motors Co. is recalling about 41,000 Chevrolet, Pontiac and Saturn cars in the United States because of concerns that a defective plastic part might cause a fuel leak, according to the National Highway Traffic Safety Administration. GM’s latest move follows the company’s recall of 473,841 Chevrolet, Pontiac and Saturns in September to fix a condition that could lead the cars to move when the drivers think they are in park. Potentially, 40,859 vehicles sold in Arkansas, Arizona, California, Florida, Nevada, Oklahoma, or Texas could be affected in the latest recall.

Chrysler Halts Tests Plug-ins After Batteries Overheat

Chrysler Group LLC temporarily suspended testing of its fleet of advanced plug-in hybrid electric vehicles after three of the pickups were damaged when their prototype lithium-ion batteries overheated. The trucks were unoccupied when the incidents occurred, and no one was injured. But the automaker will replace the batteries in the test vehicles with units that use a different chemistry. “Hiccups happen. We’re disappointed, but it by no means spells the end of the program,” said Chrysler spokesman Eric Mayne. The pickups are part of a fleet of 109 trucks being evaluated by the Auburn Hills automaker and a group of utility companies and municipalities across 20 states. It is part of a program jointly funded by Chrysler and the U.S. Department of Energy. They include the first-ever factoryproduced vehicles capable of reverse power flow. The experimental system would allow fleet operators to use their plug-in hybrids to supply electricity for a building during a power outage, reduce power usage when electric rates are high or even sell electricity back to their utility company. “You can link them all together and establish your own mini grid,” Mayne said.

26 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chevy Dealer Sells Car for Wrong Price, Buyer Arrested

A Virginia man spent four hours in jail after purchasing a Chevrolet Traverse from Priority Chevrolet in Chesapeake, VA. The dealer’s sales staff accidentally sold the SUV to Danny Sawyer for $5,600 less than they should have, and when Sawyer refused to sign a new, more expensive contract for the correct amount, the dealership called the local police alleging the buyer had stolen the vehicle. Law enforcement then picked Sawyer up and held him for four hours before getting the situation straight. Dennis Ellmer, president of Priority Chevrolet, says he owes Sawyer an apology on behalf of the dealership, and had intended to do right by the buyer by letting him have the vehicle at the agreed-upon price. But Sawyer’s lawyer says it’s a little too late for saying sorry. The briefly-incarcerated owner has filed two lawsuits against the dealer, accusing the business of malicious prosecution, slander, defamation and abuse of process. All told, the suits seek a total of $2.2 million in damages, plus attorney fees. That $5,600 seems awfully cheap now.

GM Recalls Saturns

General Motors is recalling certain model year 2007-2010 Saturn Aura and model year 2008-2010 Chevrolet Malibu and Pontiac G6 vehicles, equipped with a 4-speed automatic transmission. On these vehicles, the tabs on the transmission shift cable end may fracture and separate. If the tabs were to fracture and separate, the shift lever and the actual position of the transmission gear may not match. The driver would be able to move the shifter to PARK and remove the ignition key, but the transmission gear may not be in PARK. The vehicle may not be able to be restarted and the vehicle could roll away after the driver has exited the vehicle, resulting in a possible crash without prior warning. GM will notify owners, and dealers will install a retainer over the cable end or replace the shift cable as necessary. This service will be performed free of charge.

www.autobodynews.com

November 2012 GM Recalling Some Sonics

General Motors is recalling certain model year 2013 Chevrolet Sonic vehicles manufactured from May 29, 2012, through August 29, 2012. When a turn signal lamp fails to operate, the Body Control Module in these vehicles does not detect this condition and will not indicate the condition to the driver. These vehicles fail to conform to Federal Motor Vehicle Safety Standard No. 108, “Lamps, Reflective Devices, and Associated Equipment.” If the driver is not aware that the turn signal is not functioning and does not have the light repaired, other drivers may not be alerted that the vehicle is turning, increasing the risk of a crash. GM will notify owners, and dealers will reprogram the BCM and the vehicle’s key fobs, free of charge. The safety recall began on October 3, 2012.

Dodge Charger As All-Wheel Drive Enters Police Market

Chrysler Group is upping the ante in the battle for the police cruiser market, offering a new all-wheel-drive version of its Dodge Charger Pursuit sedan equipped with a powerful 5.7-liter HEMI V-8. “Adding available all-wheel-drive capability to the already popular Dodge Charger Pursuit will broaden the Charger’s appeal to police departments that are accustomed to dealing with rough winters and adverse weather conditions,” said Peter Grady, vice president in charge of fleet operations for the Auburn Hills automaker. “With the Charger Pursuit now offering dual capability of both rear- and all-wheel-drive, we’ll be able to meet the needs of our police fleet customers across the country.” The all-wheel-drive version will be equipped with the same engine as the HEMI-powered rear-wheel-drive model that achieved the fastest-ever lap time at the 2012 Michigan State Police’s Vehicle Evaluation Test at Grattan Raceway in Michigan. The engine delivers 370 horsepower and 390 lb.-ft. of torque.

Chrysler Sales Up for Small and Mid-Sized Cars

Strong sales of small and mid-sized cars propelled Chrysler Group to its best September since 2007 and its 30th consecutive month of yearover-year sales gains. The automaker sold 142,041 units last month, up 12% from September 2011. Car sales rose 27% to 42,050, while sales of light trucks climbed 6% to 99,991. Through September, Chrysler Group’s sales totaled 1,250,670, up 24%. All of the automaker’s brands posted gains in September, with Ram recording the smallest gain at 4% and Fiat the largest at 51%. Chrysler said six of its vehicles had record September sales. “With our current product lineup, record low interest rates and a stable U.S. economy, we remain optimistic about the health of the U.S. new vehicle sales industry and our position in it,” Reid Bigland, Chrysler’s head of U.S. sales, said in a statement. The Dodge Avenger recorded the largest gain last month, up 89% to 8,716 units. Sales of the Fiat 500 also rose sharply, climbing 51%.

GM Will Hire 3,000 HP Workers to Bring Info Tech Work in-house General Motors said it will hire 3,000 Hewlett-Packard Co. employees as part of its ongoing effort to bring most information-technology work back in-house. The hiring will be part of a new multi-year software and services agreement between the two companies. GM described the deal as “costneutral,” but it did not provide any additional details on the size or length of the contract or where the workers will be located. The employees being hired already work on GM’s business at HP and are expected to be on GM’s payroll within six months. An undisclosed number of HP employees currently assigned to GM are not affected, the companies said. “These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners, and reduce the cost of ongoing IT operations,” Randy Mott, GM’s chief information officer, said in the statement.

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ALL THE AUTHENTIC WHOLESALE SCION PARTS YOU NEED FOR

VW Beetle Convertible to Get Platform Shared with Jetta, Golf The convertible version of the Volkswagen Beetle will get its debut at the Los Angeles auto show in late November, shortly before the car goes on sale in the United States. The launch of the 2013 VW Beetle convertible trails the arrival of the redesigned Beetle coupe by about a year in the U.S., where Volkswagen expects to gain a majority of sales. Both Beetles use VW’s PQ35 front-drive platform that is shared with the current Jetta and Golf. VW says the Beetle convertible’s folding cloth top can be raised or lowered in about 10 seconds. Safety equipment includes rollover bars concealed behind the back bench seat. If the car’s safety system senses a crash, the rollover bars are deployed.

U.S. Sales Up, GM & Ford Down

U.S. auto sales, led by Toyota, Kia, American Honda and Volkswagen, rose 13% last month as the annualized pace of sales accelerated to 14.9 million—the highest rate since March 2008. The overall results topped analysts’ expectations and signaled the auto industry is poised to continue overcoming mixed economic reports to finish the year on a strong note.

Maserati Recall: Brake Lights

Maserati is recalling almost 1,800 of its 2008-10 GranTurismo coupes and convertibles for what it calls a “deviation” in the manufacture of taillight assemblies. The assemblies’ bulbs, including those in the brake lights, may fail, the automaker informed the National Highway Traffic Safety Administration. Maserati said it investigated after noticing a large number of warranty claims. The high-centered brake light, it noted, was not affected.

Toyota to Add 21 New Hybrids in Next Three Years

Toyota Motor Corp. is boosting its green vehicle lineup, with 21 new hybrids in the next three years, a new electric car later this year and a fuel cell vehicle by 2015. Japan’s top automaker outlined its green vehicle plans amid growing concerns about global warming and surging gas prices. Toyota will offer an electric compact called eQ, based on its iQ model, in Japan and the U.S. in December though the number of the vehicles made will be extremely limited —about 100. The fuel cell vehicle, which runs on hydrogen, will be offered from 2015.

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Northeast News with Chasidy Rae Sisk

CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More As a follow-up to the CCRE legal seminar held in March 2012—which I attended and wrote about in Autobody News (search “CCRE” at autobodynews.com)—the Pennsylvania Collision Trade Guild (PCTG) hosted the Coalition for Collision Repair Excellence for the second event in this series of seminars. CCRE’s 2012 Fall Seminar was held Friday and Saturday, September 21–22 at the Airport Embassy Suites in Philadelphia, PA. PCTG decided to host CCRE again due to the overwhelmingly positive responses they received on the 2012 Spring Seminar. An audience of nearly 50 came to Philadelphia from as far away as Alaska.

Steve Behrendt addresses the contract of adhesion

Attorneys Erica Eversman and John Parese joined the CCRE’s legal seminar as featured speakers to share their legal expertise on the collision repair industry. In his welcome and introduction speech, Steve Behrendt, president of PCTG and CCRE Board Member, addressed the importance of understanding adhesion, or more specifically, an adhesion contract. [Editor’s note: An adhesion contract is one which is imbalanced in favor of one party over the other so that there is a strong likelihood it was not freely negotiated. Example: a rich landlord dealing with a poor tenant who has no other options and must accept all terms of a lease, no matter how restrictive or burdensome, because the tenant cannot afford to move. An adhesion contract can give a “little guy” the opportunity

to claim in court that the contract with the “big shot” is invalid. This doctrine should be used and applied more often, but the same big guy-little guy inequity may apply in the ability to afford a trial or find and pay a resourceful lawyer.] Behrendt explained how a relationship with a third party (i.e., the insurance company) triggers a legal and binding contract which exploits a shop’s ability to do business individually. Behrendt said that avoiding adhesion will help collision repair shops operate independently by providing them with the freedom to be paid based on the services performed as adhesion can influence a court’s decision against a shop as it regards their relationship with a third party. In contrast, an authorization to repair form protects a shop’s independence, their relationship with the customer, and their need to make a profit by distancing them from the insurance company. Through adhesion, third parties try to make the reserve estimate part of a shop’s repair process by utilizing their estimate as a method of payment, but the estimate is only the third party’s guess at the cost of the repair, not a blueprint for the repair. The insurance company’s estimate is created to verify that there is a legitimate claim and to set a claims reserve which is money earmarked for eventual claim payment. Shops need to find a way to eliminate this estimate in order to prevent insurance companies from controlling their business. One way to do this is by stamping all third party documents as “for informational purposes only.” This preserves the shop’s independence by avoiding adhesion and any type of agreed-price scenario. It also allows shops to distance their business from a third party’s control and behavior. Shops should prepare and work off of their own repair blueprint and analysis, and this is what should be used for the repair and the final invoice. Shops should properly prepare and close their final invoice based on the shop’s job costing and gross profit, handing the invoice to the insurance company for final payment. Moving from a collision repairer’s point of view to a legal point

28 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

of view, attorney Erica Eversman took the floor to discuss repair contracts and authorization to repair which was very similar to the presentation she gave in

Attorneys Erica Eversman and John Parese

March of this year. Discussing the differences between the two contracts in a non-DRP relationship compared to the three contracts that make up a DRP relationship, she noted that “insurers like to think they’re in charge of everything. They want all of the control and none of the responsibility.” In a DRP relationship, two informed parties

have an agreement about how to satisfy the obligations of their individual contracts to the customer, usually before a collision actually occurs. In the current aberration for individual shops, the insurer acts as if the repairer has duties to this third party which is why it is so important for shops to utilize a written repair contract. A classic example of a contract of adhesion is found in insurance policies as one party has more power than the other since consumers are legally required to have auto insurance. This is the only industry where consumers do not really have the ability to negotiate their contracts or even see the terms before they purchase it, which is why this binding contract can be cancelled. In the relationship between a repairer and a consumer, the repairer’s responsibility is to inform the customer, acquire authorization and repair the vehicle, while the consumer should receive information, approve the re-

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pairs and pay. Repairers have no right to expect payment from the insurance company as they should expect payment from the consumer, but though it’s important to provide customers with an estimate of the repair cost, consumers are more concerned with how their car gets fixed since the insurance company actually pays the bill. This is why Erica recommends getting the customer’s informed consent after the repair process has been fully explained to them so they understand what is going on with their vehicle. A repair contract should define the customer, the shop’s duties, what type of parts will be used, the damages to the vehicle and the repairer’s professional judgment. A wise inclusion is the right to expectancy damages which will entitle the collision shop to get paid for costs accrued if the customer opts to take their car to a different shop. This also includes reimbursement for loss of work if the insurance company persuades the consumer to have their vehicle repaired at a DRP shop. Additionally, this encompasses the preparations that the shop has made, such as ordering parts and allocating time and personnel. This can also include opportunity cost, defined as potential business that may have been turned away because the shop’s resources had already been dedicated. This will help to establish recovery from tortuous interference. The signed contract ensures that the shop has the right to sue for expectancy damages. The repair contact is designed to emphasize that the repairer is the professional and that repairs are based on the repairer’s professional judgment. When there is a conflict in the opinions of the repairer and the insurance company regarding what is right to do, the repairer’s opinion should take precedence because they are the professional. Erica believes this is important for developing a better public relations standing regarding how complicated collision work is since there are many variables that come into play; unfortunately, the collision industry is losing the public relations war because insurance companies spend a lot of money advertising about how they repair vehicles, leaving consumers with the misconception that their insurance company will fix their car, through the insurer only pays for the repair. Emphasizing that shops “must remember that the insurance company is not their customer,” Erica reiterated her lesson from March about the three

options that insurers have when handling a claim and how a DRP relationship allows them to control the repair without accepting liability. She discussed the usefulness of addressing replevin in the repair contract. Replevin, sometimes known as “claim and de-

Truman, Steve, Rick, Mike and Tony of CCRE

livery,” is a legal remedy which allows the recovery of goods unlawfully withheld from possession via a legal process in which a court may require a defendant to return specific goods to the plaintiff at the outset of the action (i.e. before judgment). Replevin grants the shop the right to a possessory lien, allowing them to retain the vehicle until payment is received. Erica explained the benefits of an Assignment of Proceeds and other documents. Another useful document is the Acknowledgement Terminating Repair Contract and Releasing of Motor Vehicle which is designed to protect collision shops by giving them the chance to retain business by informing the customer of what is going on and by improving a shop’s chances should they decide to take the case to court. A Customer Notice of Insurance Deficiency informs the customer of their insurance company’s refusal to fully pay to properly and safely repair the vehicle. This helps in the public relations battle as it shows the shop’s refusal to breach their repair contract by adhering to the insurer’s pressure to provide an unsafe repair. A Customer Notice of Insurer Delay keeps the customer informed regarding their repair by alerting them to delays caused by their insurance company. Shops can also provide their customers with the Vehicle Damage Insurance Election form which they can send to their insurer demanding to know how they plan to pay for the repair. Though it is highly unlikely that any insurance company will sign this document, the insured has the right to demand a response from their insurance provider. A Notice of Additional Cost can also be sent to the insurance company to inform them of additional

30 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

costs incurred during the repair. This document helps independent collision shops avoid third party interference by refusing to permit the insurer to cause inefficiency and by giving the impression that the insurer must respond to the shop, reiterating the point that the

repairer is in control of the repair. Erica Eversman also recommended providing consumers with a Parts Notice and Authorization document, which she plans to publish on autoepi.org for distribution, in order to help consumers understand the various types of parts that may be used to repair their vehicle. She ended this presentation by repeating her opinion of the dangers of aftermarket and salvage parts and discussing what shops should and should not warrant, em-

phasizing that shops should not offer a warranty on anything other than their workmanship. Next, John Parese, Esq., discussed the definition and uses of an assignment. An assignment is a transfer of property or another right from one person to another which confers a complete and present right in the subject matter. As a contract between these two parties, an assignment is subject to contract law and interpretation. Causes of action issuing from a wrong which causes injury to the property or from tort by which the property is diminished or damaged are generally assignable, and a party may assign their right to recover damages to the property without conveying title to the property. A valid assignment requires clear evidence of the intent to transfer rights and a description of the subject matter of the assignment; it must be clear and unequivocal, and it must be noticed to the obligor. While there are no formal requirements for an assignment, the language used must indicate the owner’s intention to transfer the claim. Valuable consideration is essential to support an assignment, and though the word “consideration” does not necSee CCRE Seminar, Page 38

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George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not Guaranteed to Remain” As Are The Georgia Collision Industry Association met on Sept. 20 and hosted guest speaker George Avery, State Farm’s claims consultant. Avery gave information about the PartsTrader parts procurement pilot program to a crowd of approximately 130, some of whom had traveled to the meeting from Birmingham, AL, one of the test markets. “Mr. Avery gave an overview of the PartsTrader program and why they started the pilot program,” said GCIA Executive Director Howard Batchelor. “He said that they spend roughly $3 billion a year on parts and needed a way to control the cost. The meeting was mainly subdued until the Q&A session at the end. Many of the attendees wanted to know how this benefits the shops. There [was concern about] additional administrative duties for both the suppliers and the shops.” Avery also talked about some of the enhancements State Farm has created since the pilot began. “The estimating systems have created an interface that will update the prices on the estimate. They have also cut the time to respond from two hours down to 30 minutes. Several shops from Alabama also attended and said that PartsTrader needed to work out some of the bugs before they implement the program in other areas. Some of the attendees also mentioned they are willing to try the program but asked ‘If this program does not work for me, am I able to quit using it?’ and George replied that ‘This is a business decision that each shop should review and evaluate on its own merits,’” Batchelor reported. Steve Plier, President of Consumer Auto Repair Excellence, Inc. (CARE), a consulting company based in Birmingham, AL, was also in attendance taking notes. (See interview with Plier this issue.) CARE is a company focused on the auto repair industry with its primary focus assisting repair facilities with basic fundamentals and basic business principals that are often overlooked resulting in diminished compensation and profits for the repair facility. Plier said the first number listed in Avery’s PowerPoint presentation was “$3 billion” which Avery stated was the amount State Farm ‘gives’ to the repair industry for parts in a year. Later, during the Q&A, a member of the audience spoke up and said he took offense to Avery’s statement of “giving” as the $3

billion actually refers to the amount of parts purchased, not given. Avery’s slide presentation indicated that State Farm holds 41 million automobile policies and the insurer handles an average of 32,000 claims each day. State Farm had 20,000 Service First repairers at the peak of the old Service First program compared with approximately 10,300 Select Service providers in the Select Service program today. Avery noted that 63% of all claims are handled through Select Service, with the lowest percentage of 17% of

provements in the electronic process and two of the test market areas now are operating on a 30-minute bid window. Avery also noted that the number of repairers in the Chicago metro area, the fifth and final test market who are expected to test the PartsTrader program in December, will outnumber the total number of repairers currently on the pilot in the other four test markets combined. Plier reported that during the Q&A, the first question asked came from a frustrated individual about a slide from Avery’s presentation show-

claims being handled through Select Service in Long Island, NY. “Mr. Avery spoke of meeting with different large providers discussing where the majority of delays occurred and noted the response centered on parts delays and that by assisting the industry and improving cycle time to reduce the time of repairs by one day would reduce State Farm’s rental expense by $43 million for each day of cycle time reduced,” Plier reported. State Farm originally piloted a parts procurement program back in 2008/2009 but it was discontinued when Chrysler filed for bankruptcy and GM accepted government bailout funds. However, during that pilot they discovered by their numbers a parts return percentage between 14–17%, and based on this fact, the decision was made to search for additional options after shutting down the pilot. Shortly after the program was discontinued, State Farm filed a request for proposal and PartsTrader was selected from this process. “Per Mr. Avery, State Farm wants to assist the industry (use of PartsTrader and a parts locating/procurement program) by reducing totals because of parts competitiveness reducing repair cost. He says this would be an assistance to all (the consumer, the OE manufacturer, the insurance company, and the repair facilities),” reported Plier. During his presentation, Avery stated only suppliers nominated by Select Service repairers are and will be on the PartsTrader list. Avery also said that PartsTrader is continuing to make im-

ing a PartsTrader screen shot that indicated parts, days of delivery and the shop cost, but not the price that would be listed on the estimate. After several other attempts by members of the audience to get clear answers on list price, “Mr. Avery eventually admitted that the shops’ margins were not guaranteed to remain what they currently are,” Plier reported. Another sticking point in the meeting centered around whether or not repairers in test markets were giving positive feedback. “Mr. Avery stated State Farm had received positive feedback from the evaluation from the four current test areas, but he gave no specific examples of positives,” Plier said. The evaluations indicated there must be a better training process and that is being addressed by PartsTrader. “Mr. Avery noted State Farm and PartsTrader are hand-in-hand in this process and PartsTrader must prove and provide a value to the industry.” As Avery was saying the evaluations had returned positive information, Dave McBroom, director of the Florida Automotive Collision Association, spoke up to disagree. [Editor’s Note: Dave McBroom passed away on Oct. 11. Read his obituary on page 39.] “Mr. McBroom told the participants he had flown in from Tuscon that afternoon so he could be a part of the meeting. Mr. McBroom noted to the group he had been in Tuscon for a week and had spent time in repair facilities on the program and had completed the steps to sending out the bids, and then

“Mr. Avery eventually admitted that shops’ margins were ‘not guaranteed’ to remain what they currently are”

32 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

went to the parts suppliers to see how the program worked on both sides,” Plier said. “Mr. McBroom then began naming different repairers and suppliers who had removed themselves from the PartsTrader program. At this point, Mr. Avery spoke up and stated he did not feel this was fair. The audience became vocal enough that Mr. Avery allowed Mr. McBroom to continue for a few additional statements.” In general, members of the audience felt that much of the information provided by Avery was very much the same information that has been published since the pilot program was started, and that the only new information he provided was related to why State Farm was attempting another parts procurement program. “At no time did or could Mr. Avery provide how this program would benefit a repairer and/or a supplier,” Plier said. He also reported that several of the audience questions were repetitive in nature because Avery avoided giving specific answers. Batchelor invited shop owners from Alabama to return for another meeting later this year to allow GCIA members to hear their side of the story now that they had heard from State Farm. Special thanks from Autobody News to Steve Plier for providing notes on the meeting.

Auto Shop Office Manager Charged with Embezzlement

The office manager and bookkeeper for First Choice Auto Body was recently arraigned in the 97th District Court in L’Anse, MI. Cindy Wadaga, 45, of Baraga, MI, is charged with embezzlement of $20,000 or more but less than $50,000, a 10-year felony. Charges were brought by Wadaga’s employer, Will Ross, owner of First Choice Auto Body. According to Ross, she worked for the company as office manager and bookkeeper from June 2009 through June 2011. Wadaga was released on a $5,000 bond. She was also ordered not to enter First Choice Auto Body. Wadaga, who is also treasurer for the village of Baraga and treasurer of the Baraga Area Schools Boosters, had a preliminary hearing scheduled for Oct. 23. The charges are unrelated to the village and booster club. “There was nothing to indicate anything inappropriate took place,” said Roy Kemppainen, Baraga village manager.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 33

Company Connections

Metro Paint Supplies Earns Top CSI Ratings By Solving Problems with Chasidy Rae Sisk

Metro Paint Supplies, Inc. is a paint, body and equipment specialist located in Illinois. Their success is largely attributable to their excellent customer service and their willingness to go the extra mile to solve their customers’ problems. As a result, Metro Paint Supplies consistently earns top customer satisfaction ratings, as reported by an independent industry reporting agency.

When asked what makes Metro Paint Supplies stand out from their competitors, Vice President of Sales & Marketing, Robert Beyer cites their employees’ problem solving skills. Metro’s sales representatives are trained to do more than simply take orders. They have decades of experience collectively, having spent their careers as painters, shop owners and even insurance adjusters. According to Beyer, “They are problem solvers, solutions providers and true partners with their customers with a vested interest in their success. This broadbased background means Metro has experience beyond the norm for assisting our customers to be successful, profitable and strong.” Beyer also attributes the title of problem solvers to Metro’s technical paint technicians. These color specialists spend time traveling every day in order to work with their customers to address the various issues that are bound to arise with automotive refinishing, regardless of the brand used. Metro’s technical staff members are experts in waterborne paint, allowing them to offer their assistance as customers make the transition from solvent-based paints to a waterborne system. Per Beyer, “We don’t claim that waterborne paints are just like solvent; our waterborne lines are better than solvent, and our technical team shows customers how and why.” Metro’s technical support team aids customers with trouble shooting, color match assistance, Standard Op-

erating Procedures Implementation, Technical Audits and much more, including new technology implementation as pertains to waterborne and UV systems. Another key difference between Metro Paint Supplies and their competitors, as noted by Beyer, is that “Metro has a Business Development Team of professionals whose sole purpose is to assist our customers in dealing with their day-to-day challenges. The Business Development Team members are certified consultants through DuPont. Mark Claypool, our Director of Business Development, is a contributing editor and monthly columnist for a major automotive trade publication. He’s a featured workshop presenter at SEMA this year and at NACE and ETI in past years. Team members are also accredited as automotive managers by the Automotive Management Institute. So our business development team is nationally recognized for their knowledge and experience, something we believe few distributors in the country can claim. Together, this team provides one-on-one, on-site consulting, workshops and seminars and in-the-field marketing services to dealerships and insurance agents. Additionally workshops are conducted consulting in web site optimization and the benefits of effective social media and the impact it has in today’s fast-paced consumer environment.” Don Goedke Sr. founded Metro Paint Supplies, Inc. in 1951, and he later sold it to Bill Weiss in 1995. The Weiss family still owns and operates the company which serves the Midwest region. In 2009, the Weiss family formed Automotive Coatings and Equipment, LLC DBA/Metro Paint Supplies of Colorado, giving the company a presence in the Mountain region. Though these two companies operate in different regions, Metro’s website claims “they share a common vision and philosophy which is brought to life under the ‘Metro Paint Supplies’ and ‘MPS’ brands. While sales and services for customers in the Midwest Region are handled by Metro Paint Supplies, Inc., and sales and

34 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

service for customers in the Mountain Region are handled by Automotive Coatings & Equipment, LLC, customers in both regions have access to the same array of products and services and receive the same great ‘Metro Paint Supplies’ treatment and experience. Metro Paint Supplies currently employs over 70 team members across their two markets. In addition to their Corporate Offices and Chicago Warehouse, located in McHenry, IL, Metro also has five sales locations. Three locations are located in the Chicago market area, in Crestwood, Elgin and Grayslake, IL. Automotive Coatings and Equipment, LLC contributes two locations in Colorado Springs and Denver, CO. Metro Paint Supplies services the greater Chicago area, including northwestern Indiana, Southeast Wisconsin and Rockford, IL, while their Mountain Region counterpart provides service

to the areas surrounding Denver and Colorado Springs. Primarily, Metro’s services include product training for their paint products and associated products, as well as equipment training on air systems, curing lights, welding equipment, frame machines and measuring systems. Their business training includes SMART Business Management Seminars, Performance Alliance, Performance Claims, ProfitNet Shop Management, EPA and OSHA Compliance. Additionally, they offer compliance services, inventory management and shop productivity tools. Because they understand their customers’ businesses and strive to make their customers even more successful, Metro provides the following additional services: financial statement analysis, repair order audits, key performance indicator (KPI) development, benchmarking, improvement plan devel-

opment, and tracking. Since environmental compliance is a key focus for Metro and they know that VOC/HAPS reporting can present difficulties for shops, Metro also

Distributor, exclusively selling DuPont Performance Coatings brands, including DuPont, Standox, Spies Hecker, Nason, DuPont Industrial Coatings and Hot Hues brands. Metro

Metro Paint Supplies, Inc.’s Corporate Offices and Greater Chicago warehouse are in McHenry, IL

steps in to assist their customers with compliance and reporting. In addition to valuable services, Metro Paint Supplies excels at providing their collision shop customers with the products that they most need. Not only are they the largest distributor of Standox paints in North America, they are also a DuPont Champion

makes sure to carry stock in associated products such as 3M, Norton, Evercoat, Mar-Hyde and more, as well as offering a vast equipment selection including SATA, IWATA, Infratech, RTi, and Dynabrade to name a few. Metro has also instituted several programs to assist their customers.

The Metro Alliance Program consists of an alliance of business partners who Metro works with to further assist their customers. Another program, the Metro Management Program, is designed to help shop owners maximize their profits on paint and materials. The key elements of this program focus on diagnostics, organization, controls/inventory, tracking, and implementation of paint department standard operating procedures. Metro’s state-of-the-art website offers customers the opportunity to keep track of their reporting concerning purchase details, invoice details, statement and balance details, VOC reports and HAPS reports. Additionally, the site offers industry news, details about new products and services as well as Metro’s specials, and upcoming events. Metro also participates in social networks, having accounts on both Facebook and Twitter. Additionally, Metro Paint Supplies publishes their own monthly newsletter, the MPS Press, which contains the latest information on products, services, events, specials and other industry information.

Proof of their dedication to the collision industry and improvement within the industry is the fact that Metro Paint Supplies, Inc. is a founding member of RDA/IMPACT and has been with the organization since their inception in October 2008. Robert Beyer specifies that they joined the group because they were intrigued by the idea of “like-minded businesses sharing thoughts and ideas to become better distributors and compete nationally since there is strength in numbers. Involvement with RDA provides the ability to compete with others.” Metro Paint Supplies, Inc. particularly enjoys the opportunity to compare challenges with other members to find a group solution to industry problems.

Metro Paint Supplies, Inc. Corporate Offices 4901 Prime Pkwy McHenry, IL 60050 (815) 759-9790 www.metropaint.com info@metropaint.com

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Three A+ Ohio Collision Repair Programs by David M. Brown

Of the 100 or so NATEF-qualified secondary and post-secondary programs in Ohio, three outstanding programs are at Woodridge High School, through the Faber Foundation, Auburn Career Center, and the post-secondary Ohio Technical College. In 2000, when collision-repairshop owner Jack Faber died after 50 years leading Faber Body Shop, his wife Carla helped build The Faber Foundation to assist the young men and woman of the Cuyahoga Falls area. Guys Klapp, who managed his shop while coaching basketball at Woodridge, first coordinated the renovation of the Fabers’ 12,000foot shop, recalls Todd Jones, the one teacher at the foundation school. The building is five miles from Woodridge. The Faber Foundation serves a compact among six districts: Woodridge, Cuyahoga Falls, Kent Roosevelt, Stow, Tallmadge, and Hudson. Woodridge provided Jones’ services, and the building was leased to Woodridge for a dollar a year. “Guy put in classrooms, offices, conference rooms, locker rooms and showers,” says Jones, in his sixth year of teaching at the school. “In the shop, two down-draft paint booths were installed, a tool room fully equipped, a Chief EZ Liner, rack and lifts. In the air-compressor room, two Quincy compressors were installed and a state-of-the-art air drier for moisture.” The students are bused or drive to the garage-become-school. His juniors begin at 8 a.m. to 11 a.m., and his seniors continue from noon to 2:45 p.m. with an average of 13–15 students per class. “Our classroom time is usually 30 to 45 minutes long, then we go into the lab,” says Jones, who worked in the trade for 23 years both as a frame technician and paint specialist. He was taught by master tradesman Dave Nagy, who started Nagy’s Body and Frame in Doylestown, Ohio, in 1973. “Juniors start out on panels, fenders, hoods, and doors learning the basics,” he explains. “After the first semester, they start working on cars.” Both his juniors and seniors repair customer vehicles — about 150 to 170 per year. “It is all word-of-mouth advertising,” Jones says. “We do every-

thing from bumper jobs to full-body sectioning. They turn out a quality product.” The program is NATEF certified in collision and paint refinishing. One-third of Jones’ students go on to college, one-third enter a two-year tech school and one-third usually continue into the field. “After two years in the program, they are ready to enter into the workforce at entry-level positions,” he says. “I really enjoy teaching someone a trade,” he says. “That is something no one can ever take away from you. I wish there were more trade schools offered to students in Ohio and in the United States. If you don’t go to college, you should get into a trade school. They are the future to our trade.” Corey Lance, 20, a resident of Cuyahoga Falls, was a student at Faber for his junior and senior years. Following graduation, he worked at Hudson Collision for about seven months but left to find another job that focused doing body work on the older cars. Of the Faber Foundation program, he says, “I enjoyed every bit of my time there. “Mr. Jones taught me most of what I know today.” Another former student and Cuyahoga Falls resident, John Brill, says, “Mr. Jones went over everything in great detail and worked with all of us to make sure we all understood what we were learning.” For three years, Brill has been working at a body shop in nearby Akron. “I could not have gone from sweeping the floors to doing everything, from spreading Bondo to painting, without the Faber Foundation.” In Concord, the 46-year-old Auburn Career Center was the state’s first joint vocational school and is now servicing 11 area school districts with mechanical and collision repair programs. The latter is a two-year program, which started in 1974. The program is accredited with NATEF and has Nonstructural and Refinishing certifications. Students spend a half day at Auburn. Classes average 16 to 20 students. They learn basic skills such as safety, M.I.G welding, solvent and water refinishing, restoration skills, minor collision repair, plastic repair, custom paint and entry-level employability skills. The superintendent is Maggie Lynch, and the program has one in-

36 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

structor, Chuck Torre, who attended Auburn in 1977/78 in its Auto Body program. “My instructor, Ed Stranke, was the biggest influence in my life,” says Torre, an ASE master technician in auto collision and an I-CAR instructor. “Ed is the reason why I became an auto-collision instructor.” He has taught for 27 years of his 35 years in the industry at Auburn. Torre notes that students can earn I-CAR credits because the school has an alliance with the organization. They can also be certified in Career Safe from OSHA. Auburn students are also involved in SkillsUSA. During the five decades of community service, many success stories have developed from the school. Frank Latin, a member off Torre’s first class, owns Frank’s Auto Body & Restoration in Madison. He has refinished many shows for cars and was featured in the Pittsburgh Plate Glass’ national magazine as well as The Automotive Refinisher and in Crusin’ Times Magazine. Frank took the two-year auto body program at Auburn Career Cen-

ter and graduated from the auto body program in 1988. He worked for various auto body and collision-repair shops and continued his studies to become ASE and PPG certified. In 1994 he started his business and in 2004 he was able to build his own facility instead of renting. “It’s a great feeling when I visit shops in the area and I see my former students working and making a good living in the auto collision field,” Torre says. “I can visit shops from Cleveland to Ashtabula and see my students.” Ohio Technical College, Cleveland, offers both Mechanical/Electrical and Collision Repair and Refinish programs. The latter is accredited by NATEF and I-CAR. OTC is also accredited by Career Colleges of America. OTC is the last privately owned automotive tech school in the U.S., says Mary Kazmir, spokeswoman for the school. “The original family is the current owner, and Marc Brenner is the son of the founder, and two of his sons are working here at the school keeping the family traditions alive.” with our Genuine Ford Parts When it comes to Ford Genuine Wh Whe W Parts, go with a winning team. Pa Use Genuine Ford Parts for your customers late model Ford, Lincoln and Mercury vehicles.

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OTC’s collision program was started in the mid ‘80s. OTC offers training in areas such as collision, custom paint, high-performance and racing, welding and classic car restoration. A separate campus for motorcycles, ATVs, snowmobiles, and personal watercraft training — the PowerSport Institute — is also available. The Edelbrock Performance Academy and the Jasper Training Center were added this year, and other programs are expected. The collision repair program lasts 18 months and includes 12 weeks of custom paint and graphics. Students attend classes four days weekly, 7:30 a.m.–1:45 p.m. or 2:30 p.m.–8:45 p.m. Friday attendance is optional, as students can work on their vehicles, with permission from their instructors. “This is a merit-based privilege, so students with the better grades and attendance are the ones who benefit,” she explains. Students can choose an associate’s degree of Applied Science in Collision if they desire the academic component with their technical training. The technical training is a clockhour program, with 1,800 hours needed to graduate (in the 18-month

programs). The academic classes are based on credit hours, and in many cases these can transfer over if a student wishes to move on for a bachelor’s degree. OTC has 13 full-time collision instructors and 93 collision students, she explains. Every six weeks, a new class starts with 25 students or more. The large starts are July, August and October, accommodating the new high school graduates. Military veterans and older students who need re-training to stay up to date in the industry are also students as are those who have lost jobs to factory closings and outsourcing who need a new career direction. A student honor roll recognizes those who maintain 90 percent or higher on test scores and lab performance. OTC also sponsors SkillsUSA, FFA, Ford AAA and other programs, with $1 million-plus annually in scholarships to students who place in the top three at the state and national levels. Tyce Carlson graduated from OTC in March 2012; he was featured on the yearbook cover because of this grades, attendance and overall attitude. After completing the auto body

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program at the WILCO Area Career Center in Romeoville, Ill., he chose OTC to continue his education. “Our instructors were extremely helpful and went out of their way to help us anyway they could,” he says. “I can’t wait to go back to Illinois and begin working at something I love! I have not only gained knowledge in collision, refinishing, and custom paint but I have also gained confidence in myself knowing I can achieve anything on my own.” Just recently, OTC had a collision graduate from its May 2012 class, Ricardo Grey, accepted into the BMW STEP for Collision and Paint, based in Woodcliff Lake, N.J. OTC has the BMW program on site for a select 30 students annually pursuing the manufacturer’s training. An East Cleveland resident, Grey made three honor rolls at OTC. He was chosen by BMW to receive paid training at the BMW facility in New Jersey; only eight are picked nationally each year, Kazmir says. If accepted, the students agree to work for BMW for at least two years after they graduate the program. “Ricardo has to be at the top of his skill level in order to get a seat in such a

specialized program,” she says, noting that OTC has had three additional students also make it into the STEP Collision and Paint Program during the past three years. “Ricardo is a super sweet guy, and we wish him the best,” she says. Other top-grade Ohio programs include Sentinel Career Center in Tiffin and the Trumbull Career and Technical Center in Warren — both schools with recent SkillsUSA winners.

A 100-year-old white brick building along Janesville Road in Muskego, WI, had been many things over the past century. For the past 35 years, it has been Young’s Auto Body, and as the new building was completed, it was just in the way. Work crews demolished the familiar building, which Don Young, owner, said had been a blacksmith shop originally before becoming a car dealership. The new building, built directly behind the old structure, is now open and visible as the former blacksmith shop comes down. “They made square nails and fitted horseshoes for the area farmers,” Young explained. Young’s broke ground in January for the new auto body facility, which more than doubled their footprint and enables them to service more vehicles. The new building includes a new paint booth. When the debris is cleared away, a paved lot will be laid on the west side of the building, and sod placed in front. These improvements will be completed by the end of fall.

St. Cloud Technical & Community College in Saint Cloud, MN, is bringing a 37-year-old program into the 21st century with the help of a $4 million bonding allocation from the state. The money is being used to renovate the auto body lab and add a new medium-heavy truck lab allowing the school to train more students in newer technologies, making them more employable. The new facility will be 17,372 square feet and have eight truck stalls with an entrance and exit designated for 18-wheelers with attached trailers and a large enough area to turn big trucks around. With the additional space, the engines and machines stored outside will have a place inside, and it also will incorporate an overhead crane. In the past, only 24 students could be admitted each fall into the auto body collision technology and medium-heavy truck technician programs. The college expects to double the number of students in the medium truck program and expects a 48% increase in students in the auto body program.

New Young’s Auto Emerges From 100-Year-Old Building

www.autobodynews.com

IABA Convention, Tech Show

The Indiana Autobody Association will host its third bi-annual convention and technology showcase in Indianapolis, IN, Feb. 22-23, 2013. The event will include industry speakers, technology, products and equipment demonstrations and displays. For more information, go to www.IABAconvention.com.

@autobodynews Accept no Substitutes! $4 Million Bond to Update Auto Body Program in MN

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 37

Continued from Page 30

CCRE Seminar

essarily have to appear on the assignment, Parese recommends it. An assignment requires an exchange, such as allowing a customer to take their vehicle without the shop receiving payment if they sign the assignment. An Assignment for Money Due should identify the customer, facility, vehicle and loss. The document does not need to be notarized and should be enforceable without defects. Parese also advises shops to have all customers sign a repair contract. Parese ended his presentation by using clips from “Hot Coffee” and several insurance commercials to reiterate his message about public relations from the March seminar. Tony Lombardozzi, President of CCRE, followed with a brief talk on the need to change the mindset of collision repairers and to send a message of whose business the insurer is visiting. In the collision industry, “we operate every day on fear”, Lombardozzi claimed, continuing to elaborate that shops fear losing business and being subjected to steering. On Saturday, John Parese began the seminar with a presentation entitled Ten Steps to Consider When Filing a Lawsuit. The first step is to provide proper documentation, including a signed repair contract and the final invoice. Noting that “the insurance company doesn’t like being sued,” Parese reminded attendees that the insurer’s estimate is just a guess on the likely damages and is not reliable. The second step is to verify that all work was completed and billed correctly. Because lawsuits result in hyper scrutiny on both ends, it is imperative that the repairer did everything they claim they did during the vehicle’s repair. Step 3 requires the use of a proper Assignment of Claim which will allow the shop to stand in the customer’s shoes to acquire payment. The fourth step involves choosing a reasonable customer, and it is important to lay the proper foundation of information as surprises in the courtroom are a bad idea. The case a shop chooses to fight in court should involve a cooperative and informed consumer. Step 5 is to establish liability with the information to prove the basis of the claim. Parese notes that “you have to establish negligence in order to prove liability”, but on short pay cases, it can be argued that the insurance company

accepted liability by paying on the damages, even if they did not pay in full. Step 6 requires securing all necessary documents, including the police report, proof of liability and all information about the parties involved. Providing all of this will make the process as easy as possible on the lawyer. While shops may not win every single case, each small victory affects business since it will dissuade insurance adjusters from harassing the shop. The seventh step involves finding an attorney to take the case, and Parese notes that small cases are often combined into one larger case. Step 8 is to create a labor rate survey by surveying 12–20 local shops to disprove the insurance company’s common claim that a shop has the highest labor rates in the area. This survey can help justify the claim that your rates are reasonable, and the goal is for your posted rates to fall somewhere in the middle of the shops included in the survey; however, it is important not to share this information to avoid accusations of conspiring with others to increase labor rates. Step 9 is to provide several examples of being paid your labor rate, proving your posted rate is reasonable and fair. This is critical as the insurer should be paying the same rate as a customer off the street. The tenth step is to stamp all documents with “accepted under protest as partial payment only for property damage.” Repairers should appear at court dressed professionally and with a business-like approach in order to show the judge that they are taking the case seriously, and this will help overturn preconceived misconceptions and stereotypes about the industry as well as to show that the repairer is not trying to take advantage of anyone but is trying to stop getting taken advantage of. Parese ended his presentation by discussing tortuous interference with the repair contract and how to prove the insurance company intentionally sought to interfere with the contract between the repairer and the customer. In order to show that the defendant’s conduct is tortuous, the plaintiff must prove improper motive and willful malice. This sends the message that the insurer is not above the law and that they can and will be sued for refusal to comply with the Code of Ethics and other laws. Once Parese concluded, Kurt Lundgren, an attorney in the medical insurance industry, presented about the similarities between the automotive

38 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

and medical insurance industries and their issues. He noted that it is naive for collision repairers to believe they are immune to the insurance companies, but repairers are in the business of fixing vehicles and providing customer service to make money, so they should get to the bill when dealing with insurers. He pointed out that “this is all a game for the insurance company, but this isn’t a game for you guys.” Lundgren noted that in both the auto and medical insurance industries, proof is required to prosecute, but he urged repairers to recognize and emphasize that they are doing this to help the consumer. He also praised attendees for being on the right track about how they deal with insurers, agreeing that shops should not negotiate with insurance companies. Tony Lombardozzi led a discussion about the audience’s experiences. He urged attendees not to put anything on paper or online that they are not prepared to defend in court. Though he admits that the industry can be depressing at times, he insists that repairers can have fun with fighting the insurers, as well as making money, because it is exciting to make the insurance companies justify their actions. He believes that

shops “need to see that the process works and they can have fun with it.” Discussing how insurers have their own versions of estimating software that provides a lower estimate than the shop’s version, Tony noted that everything insurers do is based on this estimate, so repairers need to take that tool out of their hands by removing the insurance company’s estimate from the equation. Tony added that the insurers “constantly have their hand in our pocket… and come at us in so many ways that it’s hard to keep up with them.” Tony noted that the insurance companies have spent 30 years brainwashing repairers to believe they are the insurer’s servants, but in reality, collision shops only need to allow adjusters to look at the vehicle, complete their paperwork and go home. Erica chimed in, encouraging attendees to “make it painful for [the insurance companies] by doing it your way, the right way... make it clear to them that you’re not going to be the one who changes.” She went on to state that insurance companies have no right to expect collision repairers to stop their process just because the insurer has adopted another bizarre practice. In-

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surance companies are great at propaganda and brainwashing, but when they try to dictate what a shop can and cannot do, it is necessary to ask why or who says so. Erica stressed, “they can’t make you do anything because you don’t work for them.” For the final segment, Tony introduced the Stump the Layers panel which consisted of Erica Eversman, John Parese and Kurt Lundgren. Responding to questions from the audience, the three attorneys and the seminar attendees discussed topics such as liens, total loss, consumer fraud, repair contracts, unfair claims, how to handle estimates, supplementals, court cases, invoices, short pay, explaining things to customers, codes of ethics and bringing claims. As he wrapped the event up, Tony explained that he wants everyone to understand that collision shops do not need to keep operating the way the insurance companies want them to. His goal is to show independent collision shops how to successfully operate their shops without outside influence by focusing on the legal aspects of running their business without insurer interference. For more information contact: CCRE at theCCRE.com.

Collision Repair Industry Loses a Legend and a Friend; McBroom Passed Away Oct. 11 Dave McBroom February 16, 1945 – October 11, 2012

The collision repair industry is mourning the loss of Dave McBroom, president of the Florida Autobody Collision Alliance, and friend, brother and mentor to countless people whose lives he touched. William David “Dave” McBroom passed away peacefully on October 11, 2012 in Jacksonville, FL, at the age of 67. A native of Cookeville, TN, and a graduate of the University of Tennessee, Dave served in the U.S. Army for 21 years and was a decorated helicopter pilot in Vietnam before retiring as a Colonel. Dave was also president of Sunbeam Autobody in Jacksonville and was committed to raising the professional image of the collision repair industry. Through Dave’s leadership and passion, the Florida Autobody Collision Alliance was formed and grew from three body shop owners having coffee once a month to more than 400 members in six chapters throughout the state. “FACA’s members and board of directors grieve Dave’s untimely death and extend our deepest condolences to his wife Terri and his entire family,”

said Cathy Mills, FACA’s executive director. “Dave was an absolute role model—a caring friend, a supportive husband and loving father and grandfather, and a passionate industry advocate. Our lives will be forever changed with his passing.” “I have lost a very dear friend,” said Chuck Sulkala, executive director of the National Auto Body Council. “Dave’s ever present greeting of ‘what can I do to help you today’ will be my pleasure to ask of others I now meet. I am sad beyond Dave McBroom belief and he will be missed deeply. May Dave’s legacy be with us forever.” “Dave McBroom was an amazing, inspiring individual,” shared SCRS executive director Aaron Schulenburg. “His membership, his peers, and his friends flocked to him. He had a lifetime of well earned experiences that gave him the apt ability to tell an inspiring tale on just about any subject matter, and a compelling kindness in his disposition that offered a charisma held by few. His passion for

the industry, for what is right, and for living life to its fullest was unparalleled and it is an immeasurable loss for all of us.” Dave leaves behind his wife Terese “Terri” Walker McBroom, sister Marilyn Joyce “Joby” Cloutiaux; children Kevin McBroom (Pam) of St. Augustine, FL, Stephanie Nelson (John) of Cookeville, TN and Amy Helms (Alan) of South Carolina; niece Shayne Harris (Kirk), nephew Robin Trousdale (Sonia); grandniece and nephew Ashley Pelfrey and Clayton Hopper. As “Pap,” he will be missed by his adoring grandchildren Andrew, Isaac, Kingston, Winston, Ally, Abby, Lily, Lyla, William, Ashlyn, and Lexy. Funeral services were held Oct. 18 in the Chapel of Hardage-Giddens Funeral Home of Mandarin. Interment will be held at a later date in Double Springs Cemetery of Cookeville, TN. In lieu of flowers, the family requests donations be made in memory of Dave McBroom to Hubbard House Women’s Shelter, Attn: Development, P.O. Box 4909, Jacksonville, FL 32201, or Concerns of Police Survivors (C.O.P.S) 5530 Beach Blvd, Jacksonville, FL 32207.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 39

Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends A NACE panel of three representatives from top auto insurers discussed industry consolidation, technology and future trends during the Collision Industry Forum insurance panel discussion Oct. 12. Speaking on a panel moderated by Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, the insurers responded to the noticable consolidation trend affecting both repairers and insurers, specifically the growth of several MSOs such as The Boyd Group, ABRA, CARSTAR, Service King and Caliber Collision—but also that of smaller regional MSOs. “MSOs that can replicate quality procedures are attractive as a group,” George Avery of State Farm said. “Using a score card to rate MSOs across the board represents an interesting opportunity. But just like independent shops, they must perform to stay on our system.” Avery said that any MSOs on their DRPs are measured as individual shops and must compete to perform on that basis. He recalled State Farms’s experience with M2, the 27-shop consolidator in California that closed abruptly back in 2005, reinforced his company’s interest in finding top-performing individual shops, whether stand-alone or part of an MSO. “State Farm maintains that whether you are an independent or an MSO, you should be able to compete, and so State Farm evaluates even MSOs as individual repairers,” Avery said. “I’m not discounting [the MSOs’] ability, but I am saying that those with individual repair facilities have skin in the game, and that can have a lot of value on the customer service side, which we’re all after.” Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have is over-saturation in certain marketplaces, so you’re not going to put (all their shops in a market) on (the direct repair program). And then there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.” Randy Hansen of Allstate also said each facility on his company’s DRP, even if part of an MSO, has to stand on its own performance. But the three acknowledged that MSOs can offer some appealing services such as call centers, extended

Insurance Representatives on panel (l to r): Moderator Dan Stander, State Farm’s George Avery, Nationwide’s Rob Knott, and Allstate’s Randy Hansen.

hours and a single point-of-contact. Hanson said the collision repair industry suffers from a “tremendous amount of inefficiency” that consolidation alone cannot cure. Instead, shops should consider expanding their hours of operation or finding other ways to better utilize their facilities and equipment. Consolidation in the insurance industry is likely to continue as companies seek to grow. “The only other way to grow is by taking another company’s customers,” Knott said, and those are costly acquisitions because acquiring a new customer is seven times more costly than retaining their own customer, he said. Avery added that MSOs present an “interesting platform” in which to experiment with a change on a large but not national scale. “You hear people talk about how the model is broken,” Avery said. “There are components [of change] that could be perhaps introduced into an MSO that you couldn’t quite introduce companywide. So I feel compelled to tell you, not to make anyone nervous about MSOs taking over, but I do have to say that that is a place where you could possibly go and say, ‘Look, we’d like to try something different.’” Avery suggested later in the discussion that attendees think like a young driver using her mobile device to find out what to do after a minor accident. “What can we do together? Can we work together to offer her a 48-hour repair?” Avery asked. “You might say, ‘Yeah, if you quit making me take all these pictures and jump through these hoops.’ And I might say, ‘Okay, I’ll stop that.’ So as we look at the future, I’m leaning toward partnering and saying, look, that customer is going to leave us and go somewhere else. She is not going to tolerate inefficiency.” Cloud Computing and Data Ownership Knott said technology changes so quickly that it’s hard for insurers and

40 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

repair shops to keep up. “Our customers are pushing insurance companies to evolve with technology and a challenge is how fast can we adopt new technology. But if we don’t change we will be left behind.” Allstate has consolidated 100 legacy systems into one delivery platform, Hanson said. “It was tremendously complex and we spent hundreds of millions of dollars to implement it. We recently adopted cloud computing. It is very flexible and offers more applications and options." With cloud computing convenience comes the more complex issue of data ownership. “Cloud computing is great because it allows you to access your data

anywhere,” Knott said. “However, there is great concern over data ownership and who has access to the data. Hanson said the issue of data ownership is clear to Allstate. “We view it as the customer’s data, not the shop’s or the insurance company’s. It is our obligation to keep it secure and protect it. State Farm is developing its own cloud and securing the data is one of the most important initiatives, according to Avery. Advancing OEM technology is a trend that concerns repairers and insurers. Stander asked: ”If cars won’t be crashing into each other due to accident avoidance technology, what does that mean for repairers and insurers?” Avery said that accident avoidance technology won’t be fully implemented for 15 to 20 years. “With or without that technology, we need to figure out a way to help our customers in the future. Customers will not tolerate inefficiency. They will find what they want with or without us.” Hanson said the new OEM technology has the potential to change the way insurers do business, but it’s not clear what those changes will be.

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Esurance recognizes Three CARSTAR shops with awards

Esurance recently honored three CARSTAR facilities with Auto Body Repair Expert of the Year awards during CARSTAR’s annual conference in San Antonio. CARSTAR said Esurance presents the CARSTAR Auto Body Repair Expert of the Year award to the top performing stores in three U.S. regions. The award is based on several key performance indicators, such as estimate cycle time, compliance with Esurance’s direct repair program, re-inspection variance, I-CAR Gold status and customer service. The award was created to recognize the top shops and technicians in the industry for customer service excellence and continuation of technological education, CARSTAR said. The award-winning facilities include the following: ● Ace Sullins CARSTAR in Miramar, FL, owned by Kyle Wharff. ● Hunter’s CARSTAR in Norwood, PA, owned by Gary Hunter. ● Jungerman CARSTAR in St. Peters, MO, owned by Kerry and Bobbie Woodson. “I congratulate them for earning the titles, and I thank Esurance for its continued campaign to educate technicians in this industry,” said David Byers, CEO of CARSTAR.

American Honda Launches ProFirst Shop Recognition Program

American Honda Motor Co, Inc. announced the launch of the ProFirst body shop recognition program on Oct. 15. Open to both dealer-owned and independent collision repair shops, the program is designed to promote the correct, complete, and safe repair of Honda and Acura vehicles and provide support to shops that have demonstrated a commitment to a high level of customer care and satisfaction. To qualify, shops must conduct a minimum number of transactions using OEConnection’s CollisionLink software, be a designated ICAR Gold Class Professionals® business, and have at least one person presently employed by the shop who has completed the I-CAR course, Collision Repair for Honda and Acura Vehicles (HON01). “CollisionLink is a component of the ProFirst program because of the numerous benefits it provides to both shops and dealers, said Bill Lopez, Director of OEM Program Development at OEConnection. “Through CollisionLink, shops can take advantage of Honda’s Collision Select parts program, which enables them to use more genuine Honda and Acura parts while managing their overall repair costs.” Lopez added, “CollisionLink also helps to increase efficiencies and parts Original BMW Parts

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ordering accuracy, which means fewer returns, faster cycle times and, ultimately, more satisfied customers” John Van Alstyne, I-CAR CEO & President stated, “The ProFirst body shop recognition program, in conjunction with the I-CAR Gold Class Professionals designation, will align participating shops with a training program that is meant to elevate the customer experience and enable shop employees to work up to their full po-

tential.” Van Alstyne added, “Training and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.” Qualifying shops will receive a handsome plaque, a place on the shoplocator tool on the recently-launched American Honda consumer web site, free access to the Honda and Acura parts catalog, parts bulletins, service and repair information, and more.

Shops will benefit through increased recognition of the shop’s professionalism, increased opportunity to reach more customers and the promotion of customer confidence and loyalty. To see full program details, go to profirst.honda.com or profirst.acura .com. Each shop must enroll as a separate entity at its place of business as the ProFirst web site will manage the shop’s access to the parts catalogs and service information. Jim Roach, Senior Vice President for American Honda’s Parts & Service Division noted, “We are pleased to be working with OEConnection and I-CAR for the ProFirst program. As the industry changes and automotive technology changes, we must make changes in our programs to keep pace. ProFirst, and our association with both OEConnection and ICAR, is a step in the right direction. ProFirst is a win / win for all involved, especially for Honda and Acura owners.” For more information on the I-CAR Gold Class Professionals® program, visit the I-CAR website (www.i-car.com) and click on “Collision Repair Gold Class Professionals® “ under the “Training and Recognition” tab.

Safelite AutoGlass Foundation Raises $530,000

The Safelite AutoGlass® Foundation hosted its second annual Charity Golf www.ncountybmw.com (800) 564-8222 Classic Sept. 24-25, raising more than $530,000. Approximately 180 suppliers and business partners participated. North County BMW Money raised will be donated to the many charitable organizations the Foundation supports nationwide. www.ncountybmw.com (800) 564-8222 The private event included a gala, connecting representatives from 25 central Ohio nonprofits with guests of the event, including: ABMW Kid Again North County Alzheimer’s Association American Red Cross of Greater www.ncountybmw.com Columbus – Central Southeast Ohio (800) 564-8222 Big Brothers Big Sisters of Central Ohio Boys North County BMW & Girls Clubs of Columbus The Buckeye Ranch Columbus Speech and Hearing Cenwww.ncountybmw.com ter (800) 564-8222 CAPA and the Columbus Symphony Community Shelter Board COSI Creative Living Easter Seals Central and Southeast Ohio Flying Horse Farms Friends of CASA for Kids Furniture Bank of Central Ohio Habitat for Humanity of Greater Columbus LifeCare Alliance North County BMW

Maryhaven Mid-Ohio Foodbank Nationwide Children’s Hospital Ronald McDonald House Charities of Central Ohio Salvation Army United Way of Central Ohio Unverferth House YMCA of Central Ohio “As a result of the support of this event, we will be able to support more nonprofits than we ever have before, and we intend to expand the 2011 Impact Grant Program awarded by the Safelite AutoGlass® Foundation,” said Tom Feeney, president and CEO of Safelite AutoGlass®. “Last year, we awarded four $25,000 impact grants. This year, we will double that amount and will award $200,000 in Impact Grants. I thank everyone who has made this possible – from our Safelite® family that worked so hard to plan the event to our suppliers and business partners who attended and contributed to our cause.”

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 41

On Creative Marketing

The New Co-Op Marketing with Thomas Franklin

In the early ‘90s, the term “Piggy- rental company, transmission repair back marketing” meant that the trial of shop, personal liability attorney or car a new product on the market was wash. linked to another product that already As valuable as these relationships had wide acceptance in the marketmay be, often a few major shops have place. The intent was that this weaker most of the best relationships in an new product would be “piggy- area locked up so that many other backed” on the strength of the “carshops are out looking for business the rier” product. Soon the practice was hard way. For them, it may be time to Strom expanded so thatwith many Dick products were engage in some creative thinking “piggy-backed” on products already about other possible “piggy-back” or being used. You see this all the time co-operative arrangements. Even when you receive a credit card bill or though the SEMA Show in Las Vegas gasoline credit card bill and find of- is becoming a major gathering place fers inside to buy a wide range of for collision repair professionals, few products. You know this must be a shops have yet to take advantage of successful strategy because it has con- the vast accessory marketplace. Dealtinued on so long. erships, of course, have entire accesThe question is how can a fixed sory showrooms and enjoy a service like collision repair, use substantial profit flow from accessory “piggy-backing” to increase sales and sales. But few shops can afford to inwith Lee guru Amaradio Jr.in a similar showroom, and only business volume? Marketing Jay vest Abraham, in his great book Getting a few push for add-on accessory sales. Everything You Can Out of All You’ve An obvious “piggy-back” relationship Got, calls this a “host-beneficiary” re- would be with one or more accessory lationship. Greatly simplified, it’s sort stores in the area. But less obvious are of a co-operative marketing plan other retail establishments that offer whereby two (or more) companies audio-video products or cosmetic elethat are non-competitive but possibly ments that car owners should find atcomplement one another’s products or tractive. Some printers now offer services, can either bring customers wraps for cars. Since vision is imporand sales to one another’s businesses, tant for safe driving, an optometrist or bring some other value. might be interested in a co-op referral Collision repair facilities engage arrangement. with Sheila Loftus in this kind of relationship all the time, A common arrangement is cash but probably don’t think of it in those for referrals—especially with a towterms. DRP relationships are the best ing company or new and used car example. Insurance companies send dealership. But this is mainly a onecustomers to the shop. The value they way street and can be very expensive. receive in return mainly consists of The ideal co-op arrangement is one lower labor and parts and materials where the shop also refers business to costs. Dealership relationships and its co-operative partner. The easiest fleet management company relation- way to do this is through promotional ships operate similarly. Some shops programs. Obviously website links also have a more direct exchange re- and other web-based connections are lationship with a towing firm, pin- easy to arrange, but if a shop also striping and graphics service,Chaney car sends out a newsletter or sends sumwith Janet

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Shop Showcase

PartsTrader Reduces Minimum Quote Time to 30 mins

PartsTrader announced that in two of the four markets where the system is being used, the minimum time a shop can give vendors to quote prices on parts has been reduced to 30 minutes, rather than the previous one-hour minimum. The change is designed to improve the efficiency of using the system for shops, the company said.

Suppliers can still quote prices in “overtime” but only until the shop begins review of submitted quotes. The system also allows the shop to extend the deadline in 30-minute increments if they wish to receive more quotes, or to use “placeholder quotes” for OEM dealers with which they have established relationships.

Industry Overview with Janet Chaney

42 NOVEMBER 2012 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

maries of completed work with enclosures there is an opportunity to refer many other kinds of businesses, much as your credit card companies do. If a referring business also has on-line and/or mail promotions, the arrangement would have your shop information (or even literature) included with theirs. Mailing a summary of completed work after a vehicle has been delivered is a very inexpensive way to establish a longer-term relationship with customers. If a vehicle owner resells or trades-in the vehicle, having a summary of work done on the vehicle may help keep the purchase price higher. Along with sending the summary, a promotional offer for a discounted detail or cosmetic improvement should be included, plus perhaps a specified discount for a friend, family member or business associate in need of vehicle body repair. For a shop with deeper pockets,

sending a before and after photo along with the summary would be appreciated. A more in-depth approach to the co-op referral partnership can extend to events, educational seminars or workshops and more. Driving schools would be a good candidate for this. New drivers are brought to the shop for a walk-through to see the damage that may have been done to vehicles because of careless or reckless driving. And if the driving school has a weekly or monthly group presentation, the shop should always have someone there to answer questions. Many shops now do exchange events with insurance agents and auto dealerships, but this should only be a beginning. The possibilities of piggybacking on the success of other businesses and entering into cooperative promotional schemes will only be limited by the imagination and ingenuity of a shop owner or manager.

Honda Develops New Welding Technology, UHSS Structure for 2013 Accord

Honda has developed some new technology for vehicle construction, and they have applied it for the first time in the world to a mass-production vehicle; and not just any mass-production vehicle, the Honda Accord, one of the top-five selling vehicles in the United States.

The newly redesigned 2013 Honda Accord went on sale in the United States on September 19, and its construction is the result of Honda’s next-generation Advanced Compatibility Engineering (ACE) body structure which utilizes the new welding technique as well as hot-stamped and

other ultra-high strength steels to build its cabin structure. The Accord’s subframe is made with a combination of steel and aluminum joined together with a process called Friction Stir Welding (FSW). The continuous weld technology generates a stable metallic bond between steel and aluminum by moving a rotating tool on the top of the aluminum which is lapped over the steel with high pressure. Honda says the resulting weld strength is equal to or greater than conventional MIG welding. Honda also developed a non-destructive inspection system for quality control that uses a highly-sensitive infrared camera and laser beam to inspect every unit. The carmaker says the Friction Stir Welding system it developed for this process can be also be used for aluminum-to-aluminum welding and could be used for production of a full-aluminum subframe. The subframe however, should

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not cause many repairability issues according to I-CAR Technical Director Jason Bartanen, as Honda provides no repair procedures at all for the part, and specifies complete replacement only. “What will cause some issues is the high strength steel used in this car’s body structure,” said Bartanen speaking from the I-CAR Tech Centre in Appleton, Wisconsin.

The newly redesigned 2013 Accord body uses 55.8% high-tensile steel, more than in any previous Accord. And 17.2-percent of the steel is grade 780, 980 and 1,500 MPa, extremely high grades that have never before been used in any Accord, and in fact, very few other cars, according to Bartanen. “This is one of the first cars to use such high strength steel (1500 MPa) in its body structure,” says Bartanen. “Most applications only use it only for bumper beams. But the new Accord uses ultra-high strength steel in its A pillar and B pillar reinforce-

ments as well as its rocker reinforcements. Honda is requiring MIG brazing only in these areas. While Honda is not the very first to build such a body structure, none of the previous vehicles even come close to the sales volume of the Accord. “The Volvo XC60 is also using similar ultra-high strength steel (1,500 MPa) in the structure,” Bartanen noted. The Accord has historically sold between 250,000 and 400,000 units a year compared to XC60 sales of approximately 25,000. Bartanen said ICAR is currently updating its Honda and Acura training available online. The new Accord will be covered in I-CAR’s Collision Repair Overview for Honda and Acura Vehicles (HON01) and should be available within the next few months. “We have an Accord body in white on its way here right now,” Bartanen noted. “We are going to paint it to show the various steels used in this car and prepare it for display at the SEMA show.” The ninth generation Accord, which also contains Forward Collision Warning and Lane Departure Warning technologies, officially debuted at dealerships across the U.S. on September 19 at a base price of $21,680 plus destination charge.

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Matrix Electronic Measuring Inc., a developer of advanced measuring devices for the automotive collision repair industry, has obtained two patents for its new vehicle measurement system called the Matrix Wand. Rob Bailey, director of sales engineering and business development for Matrix Electronic Measuring Inc., details how the Matrix Wand adds efficiency and quality to shop estimating procedures. Watch now » The Matrix Wand is a handheld vehicle measurement device used for estimating structural collision damage. The tool, which was publicly launched in April, uses two cameras that capture three-dimensional images of vehicle damage. Estimators can use the images to measure all damage on a vehicle’s body and engine components, reveal hidden damage, verify repair quality and enable predictive wheel alignment.

Matrix has been awarded two patents for the measurement system and method, which was developed by Guidelight Business Solutions, a global business and enterprise application development company based in Austin, Texas. Matrix has two more patents pending on the tool, which the company expects to be awarded soon. With ownership of the patents, Guidelight said Matrix will be able to reduce the number of competitors in the market and obtain revenue from licensing. “The patented innovations Guidelight has developed for Matrix pushes the Matrix Wand to the forefront of the burgeoning marketing of vision systems and augmented reality,” said George Stevens, CEO of Guidelight. For more information about the Matrix Wand, visit thematrixwand.com.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 43

How to be a ‘Courageous Leader,’ as Presented at NACE by Melanie Anderson

Two strong women presented “Courageous Leadership” at NACE in New Orleans on Oct. 12. Sponsored by WIN, Women’s Industry Network, Denise Caspersen, ASA Collision Division Manager, and Melissa Miller, CARSTAR Sr. Operational Manager, talked with a group of women about what it takes to be brave in the workplace and in their lives. Having courage is not the same as being fearless. Courage is the ability to do the right thing, despite feelings of fear or discomfort when facing situations of pain, risk, opportunity, uncertainty, hardship or intimidation. Caspersen and Miller described three different types of courage and discussed the impact fear has on personal and organizational performance, and how by tapping into your own ‘courage history’ you can use your past to strengthen your future. “We’re not all born with courage, but we’re born with the capacity to be courageous,” Caspersen said. However, acting with courage is often avoided because of fear, because

it’s easier, people are afraid of embarrassing themselves or they don’t want a confrontation. But the benefits could result in growth, better communication, advancement, innovation and happier employees. The cost of fear is high. According to Human Resource Executive Magazine (2008), a third of U.S. employees waste at least 20 hours of work time each month complaining about their bosses. Stress-related illnesses account for 1/3 of worker absenteeism, and 37% of American workers report being bullied on the job. Fearful workers are twice as likely to be depressed and 33% are more likely to report exhaustion and sleep disorders. Ways that employees display fear in the workplace could include hostility, hiding mistakes, being distracted, and playing it safe versus taking a creative approach. Ways to combat fear include looking for ways to build your confidence, not obsessing about things that frighten you, gathering facts, seeking mentoring and developing new skills. “If we can address fear, little by

BASF Showcases Newest Additions to VisionPlus Online Tools at NACE During the 2012 International Autobody Congress and Exposition at the Morial Convention Center in New Orleans, LA, Oct. 10-13, BASF Automotive Refinish Solutions showcased their latest software tools to improve collision center productivity. The Business Analyzer Tool, part of the VisionPLUS online suite of electronic tools and systems, gives

body shops the ability to measure themselves against industry standards by tracking their costs, sales, and performance. Used as a sales marketing tool, the Business Analyzer Tool breaks down the numbers of a shop’s costs, sales and profit based on several key indicators, such as paint and material costs, said Vitor Margaro-

nis, Marketing Director of BASF Coatings Solutions. “We use the tool to help customers grow their businesses in the areas of improvement they want to focus on,” said Margaronis. “From a business standpoint, we go above and beyond a paint company. It’s not just about paint. It's about profits, growth, cost control, and overall better management of their business.” The Business Analyzer Tool is available as a mobile app. According to BASF, VisionPLUS Online allows collision repair centers to track, analyze and improve their business in real time so repair facilities can discover and act on improvement immediately, without having to wait for the usual end-of-month reports. BASF produces coatings for the automotive, commercial fleet and collision repair markets. Some of the refinish solutions from BASF are Limco, R-M and Glasurit paint products. The offering is supported by advanced color information systems, technical training programs and business management seminars.

44 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

little, every day, it becomes a habit,” said Caspersen. Caspersen and Miller asked the group of women what they thought courage was and the answers were varied: willing to take a risk, standing up for yourself, standing up for your beliefs, finishing what you started, not giving up, speaking your truth, and being true to yourself. Caspersen pointed out that we often make mistakes to learn by. Something her parents told her still rings loud today: “You always have a choice, but you have to live with the outcome.” When considering taking a risk, consider these factors: passion, purpose, principle, prerogative, and profit. These are the right reasons to take a risk. Can you suffer through the anguishing moments that accompany ‘right risks’ while caring intensely? Can you harness that passion and stay focused and headed in the right direction? Do you have the right set of values? Do you have the power to choose? And, profit, is only to be considered lastly. Three different types of courage

were described as: ‘try,’ ‘trust’ and ‘tell.’ Those who ‘try’ step up and make the first attempts to take action. Those who ‘trust’ follow the lead of others and let go of control. Those who ‘tell’ are those who speak out, assert one’s voice, and tell the truth. And there are always risks. Your actions may harm others. Other people’s actions may harm you. Or, you could be cast out of the group for truth telling. “The ‘tell’ type of courage can be the most difficult as you may say things the other person doesn’t want to hear,” said Miller. “There is always a difference between being respectful and being offensive. Always make it about the process, not the person.” Caspersen and Miller also described two leadership styles. The first is called ‘spillers’ — those who rely on fear as a motivator, are negative during times of challenge, or who discourage others who try to grow. The other leadership style is ‘fillers’ — those who build other people’s confidence, provide support during challenges, and encourage others to grow. Which kind of leader are you?

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IABA

ports Angie’s List businesses, is a partnering member of CARS Co-operative and a partnering member of the EPA GreenSweep Initiative for a Better Environment. The IABA also provides independent, accurate labor rate survey information by county; insurance-rating-survey information for consumers; consumer support for

after the founding members recognized that they could not manage the association or its growth. From a third-generation collision repair family, Passwater taught vocational education from 1983– 1989, then worked at I-CAR, 1989– 1997. He began a consulting company in 1986 and in 1997 began working full time with collision-repair shops. On a national level, the IABA is an affiliate member of SCRS and an associate member of the ASA and is also a member of the NFIB and BBB. The association also represents Indiana collision repair interests at CIC, NACE, SEMA and I-CAR. Statewide, the IABA The Winning Team for 2012’s inaugural golf outing at does not have a lobbyist at the Noble Hawk Golf Course in Kendallville, IN. (Photo courtesy of Mike Hartman—Hartman Auto Body) capital, but the association pursues industry concerns with legislaimproper repairs and claims practices; tors and other decision-makers regardand is a conduit for complaints to the ing steering, short pays, labor-rate IDOI, EPA, IDEM and OSHA. suppression and insurance intervention, Other member benefits include liPasswater explains. ability and worker compensation inIn addition, the association sup- surance discounted rates; Discounted Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!

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Credit Card Processing Program; CARS Co-operative savings and rebate programs; shop listing in the association Shop Locator; training, education such as free online NACE and CARS Programs, Indiana IDEM training, webinars and I-CAR Equivalency Test preparation materials; equipment, job posting and parts for sale forum; newsletter subscriptions; data backup services; and various discounts on products and services. Passwater is assisted by IABA board members Mike Hartman, president; Scott Blake, first vice president; Debbie Moore, second vice president; and Lora HacklemanEhrenberg, secretary/treasurer. They serve staggered two-year terms and are elected by the membership. “IABA may seem just like all associations from the past, but it is not,” says Hartman, a body shop owner for 20 years and IABA member since 2006. “We have bi-monthly meetings that we invite future members to attend as our guest to see for yourself. We provide the most up-to-date information about what is going on across the world, nation, state, and your local area, so you can make good, sound business decisions.” Moore adds, “I’m excited about the benefits that IABA offers its members. Our meetings give members a chance to share ideas, concerns and work on ways to improve our industry. In the words of Helen Keller, ‘Alone we can do so little; together we can do so much.’ She and her husband, Allen, own Diamond Collision Services in Avon, west of Indianapolis. The IABA has about 100 members and is growing, Passwater says. Members pay dues according to a schedule: single shop, $395; multishops, two or three, $750; four-plus facilities, $1,000; and technical schools, $150. Continued from Page 3

Greg Coccaro

means to fight an insurance goliath like Progressive in the legal system.” Along with Artese, North State was represented by Finley Harckham of Anderson, Kill & Olick and solo practitioners Anthony J. Mamo, Jr. and Richard P. Stone. The Progressive Group was represented by Nelson Levine de Luca & Horst, LLC, New York, N.Y. (Michael R. Nelson, Kymberly Kochis, and Francis X. Nolan IV of counsel), for appellants.

Sponsorships for IABA nonshop members are also available at these levels: Bronze: $500; Silver: $1,000; Gold: $1,500; and Platinum, $2,000. The third biannual convention and technology showcase will be Feb. 22 and 23, 2013, in Indianapolis at Lincoln College of Technology. On Aug. 23, the first Golf Outing for the association took place at Noble Hawk Golf Course in Kendallville, near Fort Wayne. “It was a nine-hole scramble, and we had a pretty good turn-out with 13 teams,” Hartman says. The event raised about $1,200 for a local organization to be announced. “As with any association, our biggest issue is ourselves,” Passwater says. “There is so much we can accomplish together, but so difficult to get everyone engaged. We spend a great deal of time in providing timely information to keep everyone in the state informed, but still a majority sits

IABA’s 1st Annual Golf outing, held Aug. 23, was a success and is sure to be repeated.

on the sidelines and allows a small number of dedicated industry members do all the work for them.” “That said,” he adds, “the recent increase in memberships and the value we are continuing to provide our members makes me very optimistic about the future of our association and serving the Indiana collision-repair industry.” For more about IABA, see www.iaba.info or call 317.290.0611.

Background In 2007, North State Autobahn, Inc. commenced this action against the Progressive defendants and a number of Progressive employees, including the defendant Nicholas Stanton. Specifically, the complaint alleged that the Progressive defendants deceived claimants who sought to have their vehicles repaired at the plaintiffs’ and other repair shops that did not participate in their DRP by making misrepresentations as to [Coccaro’s shop’s] workmanship, price, timeliness of service, and character.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 45

NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE by Melanie Anderson

The National Auto Body Council gifted six vehicles to needy families through its Recycled Rides program at NACE on Oct. 11. Four local shops in the New Orleans area donated their time to refurbish the vehicles: • Car Craft Collision Centers (2 cars) • Champ’s Collision Centers (2 cars) • Collision Xperts • Fradella’s Collision Center Seven years ago, in the wake of Hurricane Katrina, these shops received assistance from NABC with basic necessities, such as household goods, clothing and technician tools. Now, these shops paid it forward to others in need. Recycled Rides is a national initiative through which National Auto Body Council members refurbish donated vehicles and gift them to families in need. In addition to body shops donating their labor, insurers, paint suppliers, parts vendors and rental car companies contribute as well. At the NACE event, five insurance companies donated vehicles for refurbishing: Allstate, Esurance, GEICO, Progressive and State Farm. Enterprise Rent-A-Car donated a vehicle as well. The Maltese family received a Ford Escape refurbished by Car Craft Collision Center and donated by Enterprise. The Jiles family lost their vehicles in Hurricane Isaac and received a Honda CRV, refurbished by Champ’s Collision Center and donated by GEICO. The Easley family received a Dodge pickup truck, refurbished by Collision Xperts and donated by Progressive. Brenda Kenna was overjoyed to receive a Toyota Camry that was refurbished by Car Craft Collision Center and donated by Esurance. Carolyn Gagliano, a retired teacher, is thankful for her new Chevrolet Impala refurbished by Fradella’s Collision Center and donated by State Farm. David Marlowe is retired and has major health issues. He will benefit from the Ford Explorer that was refurbished by Champ’s Collision Center and donated by Allstate. “This car is giving me my life back,” said Marlowe. “You lose your

last vestige of independence when you lose your transportation.” For Calvin Schenck, owner of Car Craft Collision Centers, participating in the Recycled Rides Program means paying it forward.

tires on this vehicle and an alignment, as well as completing an oil change and a complete analysis of the proper function of the vehicle and servicing the A/C system,” said Schenck.

Brenda Kenna received a 2007 Camry at NACE, thanks to the NABC Recycled Rides program and the collision centers, insurers and other businesses that donated their time, labor, services and products

“This journey started seven years ago as a result of the largest national disaster that the United States had ever experienced. That disaster was named Hurricane Katrina,” Schenck said. “No one could have expected the amount of physical, financial and emotional damage that one event could cause. Thousands of people were left jobless, homeless and directionless. We were part of that group. “As we struggled to get our lives and businesses back together, we were contacted by people in our industry, who told us that they were ready to roll up their sleeves and help, and that they did. We were given hope that there were people out there who cared. Help arrived in the form of tool replacements and emotional support,” Schenck said. “Before we knew it, we were beginning to heal. Had it not been for the help of these people, we don’t know if we could have made it. Because of this, we have decided to pay it forward. The cars given away are part of a project that has required us to complete all necessary repairs to these vehicles, some of which we have equipped with new tires and paint jobs. We would also like to thank Mike n’ Jerry’s Paint and Supply, Lamarque Ford and Gulf States Glass for the supplies they donated.” Car Craft Collision Centers donated body and paint work to a 2007 Toyota Camry. “We put four new

46 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Champ’s Collision Centers, owned by Tim and Danny Kingston, worked on two cars, a 2002 Ford Explorer and a 2004 Honda CRV. The cars were donated by Allstate and GEICO.

“Both cars have under 100,000 miles and should provide safe and reliable transportation for years,” said Tim Kingston. “Champ’s is proud to have had the opportunity to contribute to such a great cause benefitting our community.” Fradella’s Collision Centers refurbished a 2007 Impala donated by State Farm. According to Fradella’s Vice President Al Waller, the shop repaired small dents and scratches, replaced the front bearing, brought its maintenance up to date and detailed the vehicle inside and out. “The goal is to help people help themselves,” said Chuck Sulkala, the executive director of the NABC. “And all of the industry segments commit to playing a part in seeing that happens. Most that participate find it a lifechanging experience.” The Recycled Rides program was born in 2007. Since then, 150 cars are given away every year throughout the country, said Liz Stein, VP of Industry Relations, Assured Performance Network and VP of NABC. “Imagine the impact this would be in your community if more people did this.”

The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! OHIO

Brunswick Subaru

Brunswick Toll Free (888) 460-7080 Direct (330) 460-7080 (330) 460-7082 Fax Mon.-Fri. 8-6; Sat. 8-4 www.brunswickautomart.com

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Wilde Subaru

Waukesha (800) 903-2434 (262) 544-1913 Fax Mon.-Thu. 7-7; Fri. 7-5; Sat. 8-4 parts@gowilde.com www.wildesubaru.com

DEG & the Keys to Successful Estimating Presented in New Orleans Collision damage experts Larry Montanez and Arthur Harris presented “The Keys to Successful Estimating!” during NACE in New Orleans, LA, on Oct. 12. The focus of their presentation centered on DEG, Database Enhancement Gateway, a free service funded by the Society of Collision Repair Specialists, the Automotive Service Association and the Alliance of Automotive Service Providers. The DEG is an advocate for accurate collision data and acts as a gobetween for shops and information providers—CCC, Mitchell and Audatex. The DEG was developed to improve the quality and accuracy of collision repair estimates by those who use collision repair estimating databases to provide feedback to information providers. “The DEG was created because there was a disconnect with information providers and DEG was created to bridge that gap,” said Harris,

DEG Administrator. The DEG public database has been around for five years, said Harris, who has been with the company for

Larry Montanez (l) and Arthur Harris (r) talked about the DEG at NACE on Oct. 12

two years. He describes his job as “facilitating the gap between information providers and the estimate user.” Collision repairers and insurers may submit questions and inquiries or

DEG DATABASE INQUIRY Track_# 4889

Estimating Platform

Inquiry Category

- Refinish Operations Inquiry Description

Audatex

Paint Code Section6_IssueSummary CRYSTAL CHAMPAGNE PRL Paint code JZ decoded as a two stage but it is a three stage

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Year Make Model

2012 Lincoln MKS

ask for assistance with a particular problem and DEG will work with the information provider to reach a resolution. Often, this can result in changes to the database or P-Pages. Shops are also encouraged to submit pictures or short videos with technicians performing a task in regards to a question or problem that arises, said Montanez, a collision damage analyst with P&L Consultants. To submit an inquiry, log on to www.degweb.org and fill out an online worksheet. “The DEG is free and people should send in their inquiries. It helps everyone get questions answered,” said Montanez. The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, Harris said. He adds that the DEG provides timely responses on both the status on

Resolution Status Resolved

Origination Date

an inquiry and the response from the information provider in question. Users can also read all other inquiries made by other repairers and see how the issue was resolved. Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification. In addition, Harris advised those in attendance at the NACE presentation not to print out the P-Pages, or estimating guides as he called them, because they could be outdated. Montanez says he downloads the P-Pages once a month to replace the older version from the previous month. “The P-Pages aren’t guides. The estimates aren’t suggested. It is the manual,” said Montanez. “The P-Pages are not open to interpretation.” For more information on the DEG, go to www.degweb.org.

Submission Date

10/15/2012

Resolution Date

9/11/2012 9/14/2012 9/14/2012 6:15:07 PM 9:02:00 AM 12:38:00 PM Resolution Description

Total Time to Resolve 00 Days

Estimated Fix September 2012 The paint code JZ has been updated to display as a three stage application in the paint table. The change will appear on the September 2012 release.

Dykstra Automotive Institute Survey Identifies Broad Industry Concerns in 2013: Esp. Financing and Suppliers

According to the 2012 Dykema Automotive Institute Survey, which was released on October 17th, automakers will have to contend with limited financial bank lending and raw material costs in the following year. “Every major company has gone through tremendous upheaval and dealt with changes to every step of its supply chain,” said Aleks Miziolek, director of Dykema’s Automotive Industry Group. “There are many challenges still on the horizon for automotive executives that may impact the long term success of the industry’s future.” From the total of 100 auto industry advisers and senior executives that took part in the survey, 40% of them said that raw materials increasing costs is the main concern of the auto industry, while 21% of them said that it is the financial bank lending that will affect the automakers in 2013. Besides these two challenges, the survey also includes labor issues, financially troubled suppliers and even the potential liabilities of self-driving vehicles and other new technologies. A respectable 43.4% said that they were working on vehicle-to-vehicle technology, but even more— 55.3%—said that their companies

were working on vehicle-to-infrastructure or systems, which would allow cars to “talk” to traffic lights and other elements on the grid. Over 92% said that they’d seen an increase in demand for their company’s products/services over the past year. Most, 76.8%, have had to make internal changes to meet that growing demand. Given that vehicles are becoming increasingly connected to the web, Dykema asked respondents about their biggest concerns on that front. Just over 35% said that they were worried about the distractions that accompany connected cars. However, more than 28% said they had no real concerns. When asked about investments in technology, 60.5% said that the were developing “sensor-based safety systems that either warn or assist drivers in potential collision situations.” On the legislative front, the biggest issue of concern was “energy and environmental legislation.” Part of the survey also discussed potential liabilities of self-driving vehicles and other emerging automotive technologies; about 1 in 3 respondents said driver distraction was their chief concern. Approximately 1 in 4 had concerns about data ownership of technologies.

Martin Senour Kicks Off 4Q Training Program

The Martin Senour Company kicked off its fourth quarter training session in October, offering courses to collision center professionals on technical skills, estimating solutions, new technologies, and updated application techniques required for collision center profitability. The Fall 2012 course lineup, which is held at various Martin Senour training locations nationwide, includes an emphasis on sustainable operations from both a business and technical standpoint. “We seek to help collision repair owners, managers and technicians better practice profitable and more productive thinking and hands-on doing,” says Jeff Green, Martin Senour Director of Sales. “We also have seen significant interest for classes regarding waterborne technologies, application certification, and lean practices, so we’ve provided additional courses specific to those practices.” Martin Senour professionals will be providing instruction on a number of class topics including its VORTEX® waterborne, Tec/Base® and Pro//Base™ refinish systems, painter certification, and color adjustment and blending. Visit martinsenour-autopaint.com or call 1800-526-6704 for schedule.