January 2018 Midwestern Edition by Autobody News

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YEARS

Industry Associations Pledge 2018 Resolutions by Chasidy Rae Sisk

Most folks view New Year’s Eve as a time to reflect on the recent year and make resolutions for the next as they strive to improve themselves or their lives. Collision repair industry associations have also begun preparing for 2018 by beginning to focus on their goals for next year and how they can help their members, advance their organizations and improve the industry for everyone. Several association leaders shared their 2018 New Year’s Resolutions with Autobody News. In 2017, a lot of associations focused on membership growth, bringing educational value to members and pursuing legislative initiatives to improve

the industry. Industry professionals can expect to see these endeavors continue into 2018, though industry leaders anticipate taking their efforts to new heights. The Automotive Service Association (ASA) spent a great deal of this past year on legislative endeavors, and plans to continue these initiatives into the New Year. ASA Executive Director Dan Risley shared, “ASA resolves to be represented, engaged and vocal in as many meetings, conferences, hearings, summits and alike in Washington D.C. and around the country that will influence the future direction of this industry, specific to new vehicle technology (telematics, (ADAS) advanced driver See Industry Associations, Page 15

Six Detroit Cops Charged With Extortion for Taking Bribes From Repair Shop Owners

See Detroit Cops Charged, Page 12

P.O. BOX 1516, CARLSBAD, CA 92018

A half-dozen current or former Detroit police officers have been charged with extortion for taking bribes from auto repair shop owners in exchange for referring stolen and abandoned vehicles recovered in the city to their shops. The U.S. Attorney’s Office says four retired officers have pleaded guilty to the charges and are awaiting sentencing while two current officers have been indicted. “The charged defendants should have put the people of Detroit first,

rather than lining their own pockets,” U.S. Attorney Daniel Lemisch said in a release. Current DPD officer Deonne Dotson, 45, has been indicted on six counts of extortion, while officer Charles Wills, 52, is facing four counts of extortion. Retired officers James Robertson, 45, and Martin Tutt, 29, pleaded guilty to two counts of extortion. Retired officers Jamil Martin, 46, and Anthony Careathers, 52, pleaded guilty to one count of extortion.

Change Service Requested

by Violet Ikonomova, Detroit Metro News

VOL. 7 ISSUE 4 JANUARY 2018

www.autobodynews.com ww ww.autobodynews.com

Year in Review: The Collision Repair Industry in 2017 by Chasidy Rae Sisk

Starting with the inauguration of the 45th President, moving on to the solar eclipse and three devastating hurricanes, 2017 has been a year to remember with many major changes impacting the United States. The collision repair industry has continued to change as well, with evolving technology and raging legal battles, including the now-famous John Eagle lawsuit in Texas. Associations around the country offered a variety of educational opportunities through meetings and conferences, and as the New Year crept up on us, Autobody News spoke with several association leaders about the best and most memorable things they did in 2017.

From getting associations off the ground to establishing a broader member base, several associations focused on growth this year. Stephen Regan, Executive Director of ASA-MA/RI, shared, “The most memorable thing ASA-MA/RI has done in 2017 is open its doors. We have brought back to the region an entity dedicated solely to the advancement of collision and mechanical repair shops and those who serve them. Unlike many state trade associations in the industry, ASA-MA/RI has a fully staffed, dedicated office location. Our sole purpose is the professional operation of the association on behalf of its members and supporters.” See Year in Review, Page 18

Happy New Year! from all of us at Autobody News

Midwest Auto Body Trade Show will be in Altoona, IA, Feb. 16–17, Featuring Attorney Todd Tracy The Midwest Auto Body Trade Show is predicted to break records in 2018, February 16 and 17th at Prairie Meadows, Altoona, Iowa. The 2018 show is responding to the current demands of the collision repair industry. Keynote Speaker will be Attorney Todd Tracy who won the $42M lawsuit for improper repairs in Texas. In his presentation, he gives hands-on engineering techniques that will enable body shops to conduct more detailed repair estimates as they begin to start thinking like crashworthiness experts. In addition, Tracy will discuss strategies for shops ‘to keep people like him out of their business.’ There will be two days of education and trade show for everyone involved in the collision industry. “We

need to get all stakeholders on the same page,”says ICRA President Laura Larson, “and this is the way to do it.” Leading industry educators will fill the compelling agenda. Classes will encompass autonomous driving vehicles, explore new industry culture, I-CAR training, AMI training and more. Scott Weiser, ICRA lobbyist will provide an update on legislation that affects our industry. Over 70 booths will bring new ideas, new technology and new information to this show. Product demonstrations and training on the show room floor. Welcome Reception is Friday night in the Trade Show area. Friday will be the Collision Repair Education Foundation Student See Midwest Trade Show, Page 48

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

2 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

AASP-MN Holds 16th Annual Race

Attanasio - Selling, Buying or Expanding

Your Business is Not a DIY Project . . . . . . 35

for Education . . . . . . . . . . . . . . . . . . . . . . . 8

Attanasio - Wreck Check Car Scan Centers

November Meeting . . . . . . . . . . . . . . . . . . . 8

Ledoux - OE Shop Certification Programs

Systems and Alignments . . . . . . . . . . . . . 20

Ledoux - Training, Certifying and

Success. . . . . . . . . . . . . . . . . . . . . . . . . . 10

Phillips - ‘The Basics of Blueprinting’:

AASP-MO Opens Toys for Tots Drive at AASP-MO to Hold Meeting on Safety

AASP-MO Toys for Tots Drive a Huge ASA-OH to Welcome Mike Anderson

in March . . . . . . . . . . . . . . . . . . . . . . . . . 14

Building an Auto Repair Workforce in

Kokomo, IN . . . . . . . . . . . . . . . . . . . . . . . 22

CARSTAR 76 in MI Earns Progressive

Insurance ‘Top Gun’ Award. . . . . . . . . . . . 10

CARSTAR Chosen a Winner in Sarpy County

People’s Choice Awards in NE . . . . . . . . . 10

Owner Gets his ‘I Told You So’ Moment . . 28

- American Honda . . . . . . . . . . . . . . . . . . 34

Standardizing in the 1920’s . . . . . . . . . . . 24

Better Cycle Times, Improved Efficiency,

More Accurate Estimates . . . . . . . . . . . . . 52

Phillips - Audi Discusses its Manufacturer’s Certification Program, Repair Procedures

& Training . . . . . . . . . . . . . . . . . . . . . . . . 42

Phillips - CCC VP Discusses How Company’s Digital Solutions Meet Modern Consumer

Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Grand Opening for Body Shop in

Phillips - Mitchell Products Created to Help

Hoosier Hills Students Build Truck Inspired

Yoswick - Database Enhancement Gateway

Indiana Auto Body Association Donates

Yoswick - Recent ‘Who Pays for What?’

Wapakoneta, OH . . . . . . . . . . . . . . . . . . . . 6

by ‘Fury Road’ in IN . . . . . . . . . . . . . . . . . 26

$500 to Hoosier Hills Career Center . . . . . 18

Midwest Auto Body Trade Show will be

in Altoona, IA, Feb. 16–17, Featuring

Attorney Todd Tracy . . . . . . . . . . . . . . . . . . 1

Moorhead, MN, Body Shop Changes Owners . 63

Single Mothers Receive Vehicles from Zara’s

Collision Center in IL. . . . . . . . . . . . . . . . . 12

Six Detroit Cops Charged With Extortion for

Taking Bribes From Repair Shop Owners. . . 1

Students Help GM with 2+2 Battery

Electric Car in Cedarville, OH . . . . . . . . . . . 6

Vehicle Donation in MN Equals Ability

for Holiday Travel . . . . . . . . . . . . . . . . . . . . 9

Shops Deliver Proper, Safe Repairs . . . . . . 30

Got its Start 10 Years Ago . . . . . . . . . . . . 44

Survey Looks at Scanning, Frame,

Mechanical Operations . . . . . . . . . . . . . . . 50 NATIONAL

33 Months Jailtime For Embezzlement in North Central MN, Funds Used to

Support Car Restoration Hobby . . . . . . . . 41

Axalta’s 2018 Calendar Competition Winners . 58 BASF Customer Andrew Lee and Driven To

Cure Receive State Of Maryland Award . . . 14

CIC Seeks Input on Issues, Value of

2017 Meetings . . . . . . . . . . . . . . . . . . . . . . 3

CIECA Calls for 2018 Speakers. . . . . . . . . . . 29

Young Women Take Aim at EHOVE Vocational

Hurricane Vehicle Replacements, Increased

Zara’s Collision Center in IL Gives Away

Industry Associations Pledge Their

Career Center in Milan, OH . . . . . . . . . . . . 16

Vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

COLUMNISTS

Antonelli - Techs Teach Disadvantaged

Youth How to Restore Classics Through

NV Nonprofit . . . . . . . . . . . . . . . . . . . . . . 38

Advertising Drive Truck Interest . . . . . . . . 54

2018 Resolutions . . . . . . . . . . . . . . . . . . . . 1

SVP of BASF Coatings Discusses Changes

Ahead for Collision Industry . . . . . . . . . . . 46

Takata Airbags Special Master Announces

$850 Million Restitution Fund Allocation

Program for OEMs . . . . . . . . . . . . . . . . . . 21

Attanasio - Employee Sharing—Does it

What Shop Owners Can Do When Told

Attanasio - Former Body Shop Owner

Year in Review: The Collision Repair

Really Work? . . . . . . . . . . . . . . . . . . . . . . 60

Invents Photo Estimating App . . . . . . . . . . 40

The Collision Industry Conference (CIC) is asking the industry and CIC Meeting attendees to participate in a brief survey by visiting www.research .net/r/VXMSYQC. The objective of the survey is to determine the current top issues impacting the collision repair industry as well as to measure the value of CIC Meetings, which took place at various venues throughout 2017. Results of the survey will help guide the direction of CIC in 2018. The survey is open to anyone interested in providing input to CIC. It asks all respondents, from their individual perspectives, to list the top three issues of concern as it relates to the collision industry. Guy Bargnes, current CIC Chairman, explained, “We ran a similar survey at this time last year as we prepared for the bi-annual CIC Planning Meeting. The results were both

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Their Severity Is Too High . . . . . . . . . . . . . . 4

Industry in 2017. . . . . . . . . . . . . . . . . . . . . 1

encouraging and insightful. The 2016 survey responses were used to shape the structure of CIC Committee activity and the content of CIC Meetings. “The current survey is designed as both a brief scorecard on how we did in 2017 and a request to those interested to list their current concerns, which we will use to guide CIC action in the coming year. “We are all aware of the staggering pace of change in our industry, so I hope that everyone with a stake in CIC will take a couple of minutes to complete the current survey. It will assist not only CIC and the many committee members and participants, but also the entire collision repair industry.” The next CIC meeting will be held Jan. 17–18, 2018 in Palm Springs, CA. Complete meeting details are on the CIC Website: www.ciclink.com/

A Few Old Shops . . . . . . . . . . . . . . 22 Audi Wholesale Parts Dealers . . . . 54 Bettenhausen Automotive . . . . . . . 16 Blue Springs Ford . . . . . . . . . . . . . . 43 BMW Wholesale Parts Dealers . . . . 51 Bob Hook Chevrolet . . . . . . . . . . . . 41 Car-Part.com . . . . . . . . . . . . . . . . . . 30 CarcoonAmerica Airflow Systems . 35 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 11 Charles Gabus Ford . . . . . . . . . . . . 45 Classic Chevrolet . . . . . . . . . . . . . . 49 Classifieds. . . . . . . . . . . . . . . . . . . . 62 ChemSpec USA, LLC . . . . . . . . . . . 25 Courtesy Subaru. . . . . . . . . . . . . . . 20 Dent Magic Tools . . . . . . . . . . . . . . 10 Dominion Sure Seal . . . . . . . . . . . . . 9 ECS Automotive Concepts . . . . . . . 24 Equalizer Industries, Inc. . . . . . . . . 15 Erhard BMW of Bloomfield Hills . . . 14 Erhard BMW of Farmington Hills . . 14 GM Wholesale Parts Dealers . . . . . 57 Griffin Automotive Group . . . . . . . . 27 GYS Welding USA. . . . . . . . . . . . . . 12 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers. . 55 Infiniti of Naperville . . . . . . . . . . . . . 42 Insta Finish Car Care . . . . . . . . . . . 19 Island Clean Air, Inc. . . . . . . . . . . . . . 5 Jack Phelan Chrysler-Dodge-JeepRam of Countryside . . . . . . . . . . 13 Jake Sweeney Chevrolet . . . . . . . . 38 Kelly BMW . . . . . . . . . . . . . . . . . . . . 44

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, 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. ©2018 Adamantine Media LLC. Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Midwest

REGIONAL

CIC Seeks Input on Issues, Value of 2017 Meetings

Index of Advertisers

Contents

Kia of Des Moines . . . . . . . . . . . . . . 45 Kia Wholesale Parts Dealers. . . . . . 61 Laurel Auto Group of Westmont . . . 53 Luther Bloomington Acura-Subaru. 31 Luther Hopkins Honda . . . . . . . . . . 40 Lusid Technologies . . . . . . . . . . . . . 23 Maplewood Toyota-Scion . . . . . . . . 39 Mazda Wholesale Parts Dealers . . . 50 McGrath City Hyundai . . . . . . . . . . 18 MINI Wholesale Parts Dealers . . . . 58 Mitsubishi Wholesale Parts Dealers. 50 MOPAR Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 36-37 Morrison’s Auto Parts . . . . . . . . . . . 46 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 48 Original One PartsTM . . . . . . . . . . . . . 7 Patrick Hyundai. . . . . . . . . . . . . . . . 26 Richfield-Bloomington Honda . . . . 28 Robaina Industries, Inc . . . . . . . . . . . 2 SATA Dan-Am Company . . . . . . . . 17 Spanesi Americas . . . . . . . . . . . . . . . 8 Subaru Wholesale Parts Dealers . . 59 Symach . . . . . . . . . . . . . . . . . . . . . . . 6 The Sharpe Collection of Automobiles . . . . . . . . . . . . . . . . 29 Toyota of Des Moines . . . . . . . . . . . 45 Toyota Wholesale Parts Dealers . . . 58 VanDevere Kia-GM . . . . . . . . . . . . . 47 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 52 Wizards Products . . . . . . . . . . . . . . 21 Zimmer Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 64

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 3

What Shop Owners Can Do When Told Their Severity Is Too High by Autobody News Staff

Nearly 20 years ago, Tim Ronak said he was frustrated with the way shops were being judged on KPIs. “I saw an irrational behavior as a result of a purported truth when shops didn’t conform to a specific statistic or negatively performed when compared to that measurement. I felt that in many cases, the statistic benchmark didn’t have any validity,” said Ronak, senior services consultant for AkzoNobel. “Shops were frantically trying to move a number they weren’t able to move, and this is particularly true when discussing severity.” As a result, about 10 years ago Ronak wrote an article titled “Does Severity Matter” as a tool to help people understand the statistics on which shops are being evaluated. “You have a right to understand what they are and how to interpret it,” he said. “If it’s an arbitrary measurement, you need to call it what it is.” During the SEMA 2017 Show in Las Vegas, Ronak asked a room full of collision repairers, “Have you ever

ity—Why It Does Not Matter and What to Do About It!” The presentation was part of the SCRS Repairer Driven Education series.

Q: What exactly is “severity?” In the context of this discusA: sion, severity is the cumulative costs associated with effecting repairs

If costs are rising and they are comparing your shop with historical data, what does the current data look like? How could you not have your severity too high in a rising environ-

of the value of the mean, both above the mean and below the mean. The key point is that any random data set will vary around that central value both above and below until it contains

ment? It’s mathematically impossible, yet it seems that everyone on DRPs are beaten into submission by a range of statistics they can’t directly change. Frequency is up and severity is up. With both of those rising, we’re going to see higher severity amounts and even more claims. This will create more pressure to ‘manage’ to an ‘unmanageable’ target.

the ‘majority’ (+68 percent) of the observed values. This ‘normal distribution’ typically only occurs when enough data is present (typically more than 1,000 observations) and the population the data is pulled from is completely random. In a financial environment where deductibles affect the number of submitted claims, the data loses this ‘random’ status and could be potentially skewed as a result. This affects the QUALITY of the arithmetic mean as a KPI measurement. For example, if an insurer with a VERY large $5,000 claim data set for a current month in your immediate local area has a $3,000 average RO value for vehicles it purports to have paid repairs on, one-third (1 standard deviation) of that is about $1,000. This means if their data strictly followed a normally distributed pattern, 68 percent of all of the cars repaired would range between $2,000 and $4,000) following +/- 1 standard deviation of the normally distributed data. In this case with a perfect normally distributed dataset if an individual shop has an average severity of $3,600, you’re within one standard deviation above the calculated arithmetic mean. That’s 68 percent of all the data. The majority of the data would support the fact that $3,600 is not out of line, as it does not vary more than the 68 percent majority. Statistics are only as good as the data you gather. Otherwise, you can’t

to a damaged vehicle to restore it to its pre-loss condition.

What is important to underQ: stand in terms of severity? Vehicles aren’t built the same A: way as they were in the past. Each one has its own unique set of cir-

cumstances when it comes to repairs. No longer is it one size fits all. According to Thatcham Research Centre, a think-tank study group funded by the insurance industry in Europe, OEMs must lower collision repair costs. “The average repair bill has risen by 32 percent over the last three

When it comes to KPIs, is an “average” a meaningful perQ: formance measure?

In statistics, there are three A: measures of what is called central tendency—the typical value in the

been told your severity is too high? Absolutely—I know [that] everyone here who has run a shop has been told that at one point or another.” What Ronak found over the years is that “typically, severity is too variable to actually be used to meaningfully measure performance.” He helped SEMA attendees understand how severity is calculated and addressed what shops can do when told their severity is too high. The following information is from Ronak’s SEMA presentation “Sever-

years,” said Thatcham CEO Peter Shaw in a statement. “This has been driven by the repairability of parts such as headlamps, increasing complexity of vehicle materials and technology and the rising cost of spare parts, influenced to some extent by currency fluctuations. Vehicle manufacturers must bring these costs under control.” Thatcham is the United Kingdom’s version of the Insurance Institute for Highway Safety, and also researches and develops repair procedures.

4 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

distribution that describes the way in which a group of data cluster around a central value. There is the mean, the arithmetic average of all values; the median, the midpoint of values; and the mode, the most frequently occurring value. What I found from my research over the years is the mean is not a reliable or meaningful measurement. Think about the repair of a Maserati, a Cadillac and a Ford. As an industry, we have variability among the type of work that we do. Additionally, if we align manufacturer context, all Cadillacs do not run into the same tree at the same speed! In a normal distribution, there is a concept of standard deviation, which measures the quality of an average. In a normal distribution, the standard deviation will be around 30-40 percent

See Severity, Page 63

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 5

Students Help GM with 2+2 Battery Electric Car in Cedarville, OH The automobile of the future could be shaped, in part, by Cedarville University industrial and innovative design (IID) students. This fall, senior design students completed an extensive academic design of a Chevrolet-branded, 2+2 battery electric concept car under the supervision of an instructional design team from General Motors Design Center in Detroit. The 22 students worked with a clay sculptor, digital sculptor and the lead designer from the Chevrolet brand studio. The Detroit-based GM Design team mentored the students, providing hands-on instruction. Instructors and students worked four and a half weeks on the project at the International Center for Creativity (ICC) in Columbus, the instructional partner for Cedarville’s unique industrial design program. Cedarville University is the only Christian university in the United States to offer an industrial and innovative design program—and its collaborative program with the ICC is ranked No. 5 nationally, according to CollegeValuesOnline.com. “This project was about as ‘real world’ as it can get,” said Jim Stevenson, president of ICC. “Since it was

our first time working with the GM team, it was a big learning curve for both of us, but we are extremely proud of what the students were able to accomplish. While quite a few of

our students are interested in careers in transportation design, the ones who aren’t worked just as hard, and it was difficult to tell them apart in some cases.” “Working with the GM designers was such a great honor,” said Josh Zaborowski, from Syracuse, NY. “Hearing their comments and input was really challenging and encouraging throughout the whole design process. The fact that no matter what you complete, you can always go back and challenge yourself and push it forward even further is something I will continue to apply to my professional career.” Each student completed a concept for the project, then seven teams

Grand Opening for Body Shop in Wapakoneta, OH by A.J. Hecht, Wapakoneta Daily News

The Wapakoneta Chamber of Commerce welcomed a new member on Nov. 30, holding a ribbon cutting at Auglaize Auto Body’s newly renovated workshop on Auglaize Street in Wapakoneta, OH. Formerly Vintage Metal Works and based near Cridersville, the newest member of the Chamber moved into a space in downtown Wapakoneta that owner Joe Patterson has been working on since purchasing the property in August—Northwest Ohio’s only environmentally friendly, green auto body workshop. The centerpiece of the new shop is the brand new Accudraft SS paint booth, which was an unexpected addition to the company’s offerings. “We weren’t looking to buy new,” Patterson said. “But then we found this grant the State of Ohio was offering.” The grant paid 30 percent of the total cost for the new paint booth. “Off a $61,000 booth, 30 percent is a lot of money,” he added. “It was a no-brainer.” The benefit of the state-of-theart booth was not just a financial one. “Because of it, we are consid-

ered a clean air facility now,” Patterson said. “Between that and another air cleaner we have just for cleaning the shop air, we’re a green body shop. In northwest Ohio, I think we’re the only one that’s considered a clean air body shop. It makes a huge impact on the community because we’re venting the air so well, you can stand on top of the building and not smell anything.” The new paint booth will also help the shop keep business moving and cut down the wait times for customers. “The biggest advantage of it is when we’re done, we hit a button, and it’s all computer-controlled, and it goes into a bake cycle, and it will cook that paint for 30 minutes at 160 degrees, and then go through a seven-minute cool-down cycle,” Patterson said. “When that’s done, I can take the part, put it on the car and send you home. “It speeds up production an ungodly amount of time. We can do so much more work in such a short amount of time. That’s our baby, and that’s what will make or break us.”

We thank Wapakoneta Daily News for reprint permission.

6 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

were formed based on the best seven overall concepts. Each of the seven teams was tasked with completing an overall design vision, customer persona, concept sketches, digital renderings, two clay models, orthographic view tape drawings—a drawing that represents a three-dimensional object in two dimensions— and refined sketches. The students began their work on Sept. 18, then presented their work approximately one month later. Jim “JD” Orr, part-time instructor and ICC advisory board member and co-founder, who worked at GM design for approximately 15 years early in his design career, was the Cedarville instructor of record for the design development portion of the project. “General Motors Design participates in collegiate sponsorship projects to contribute to the development of creative talent,” said Kris Bastedo, Collegiate Relations Manager, GM Design. “Collaborative efforts with collegiate institutions bring awareness to students and parents of the well-regarded creative careers available in the automotive industry.” “Learning from someone who

lives and breathes their craft was an invaluable experience,” said Kelly Miller from Bloomington, IL. “We learned so much about specific roles within groups and how to live within the task you have been given, but also how to help your teammates out. In the end, it matters what the final product is. A lot of good communication within the team moves the ideas forward; that was my major takeaway.” The ICC frequently partners with design teams from corporations to provide students with rich academic experiences that are rooted in real world scenarios and timelines, and the sponsored projects in the transportation field are growing. In 2015 and 2016, ICC seniors completed two separate design activities for Honda Research and Development and worked with the Center for Automotive Research at The Ohio State University in the spring of 2017. “We were extremely impressed with the high level of involvement the GM staff dedicated to this project,” said Stevenson. “They didn’t just drop the project off at the door. They were here, in the studio, day in and day out, building into these young people’s lives and helping shape the talents of future designers.”

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 7

AASP-MO Opens Toys for Tots Drive at November Meeting

by Chasidy Rae Sisk

On Nov. 8, AASP-MO held its final meeting of the year at Automotive Technology Inc. (ATI), which sponsored the meeting, in Fenton, MO.

proper planning and procedures are not implemented. Reiling stated, “There were 60plus owners and front officer personnel from the shops. It was a great meeting, and we received a lot of positive feedback.” AASP-MO also used the meeting to kick off the association’s 2017 Toys for Tots drive, hosted by the Gateway Collision Chapter. The drive will continue until AASP-MO’s Christmas Social, scheduled for Dec. 6 at Syberg’s Restaurant.

More than 60 industry professionals attended AASPMO’s November meeting

The meeting featured Dave Tritz of Don’s Auto Body, who discussed how to implement procedures to make the front office more efficient. Ron Reiling, Executive Director of AASP-MO, called the meeting “an excellent opportunity to identify and reduce the stress in your front office. Dave’s presentation was outstanding, offering great information with countless solutions.” Discussing organization, accountability, processes, communications and much more, Tritz explained how easy it is for the front office to fall behind with daily demands if

For more information, visit www.aasp-mo.org.

Dave Tritz of Don’s Auto Body discussed how to implement procedures to make the front office more efficient

8 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

AASP-MN 16th Annual Race for Education The Alliance of Automotive Service Providers, Minnesota (AASP-MN) is pleased to announce that the 16th Annual Race for Automotive Education is planned for Jan. 9, 10 and 11, 2018.

The event serves as the primary fundraiser for the AASP-MN Automotive Education Fund, which provides financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the automotive service industry. The event will return to ProKart Indoor Racing in Burnsville on Jan. 9 and 10. A new, second venue has been added for a third night of racing on Jan. 11 to make it more convenient for members located in the northern Twin Cities area to participate. That race will take place at MB2 Racing in Fridley, a new facility featuring all-electric karts that reach up

to 45 miles per hour. AASP-MN members and other industry supporters will organize teams to compete, have some fun and raise money for a good cause. When the final checkered flag waves, the Race for Automotive Education is expected to raise more than $11,000. The majority of that money is earmarked to fund scholarships for first and second-year students enrolled in NATEF-certified automotive programs (collision or mechanical) in the state of Minnesota. Scholarship awards will distributed in the fall of 2018. Since its inception, the fund has disbursed nearly $210,000 directly to students enrolled in automotive programs through the association’s scholarship program and Skills USA competition. For more information, contact Judell Anderson at the AASP-MN office at (612)623-1110 or (800)852-9071 or log on to www.aaspmn.org.

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Vehicle Donation in MN Equals Ability for Holiday Travel by Edie Schmierbach, Mankato Free Press

Right after she received the phone call from Dan Jones at Minnesota Valley Action Council with the news that she’d just won a refurbished car, Shannon Pierce retold the announcement to her children. Her four girls excitedly chimed in about their travel wish. “Oh, we get to go see great-grandmas!” The Granada, MN, family left on an hours-long drive north o’er the Minnesota River and through parts of the Big Woods to gatherings in Northfield and Elk River at the homes of Pierce’s grandmothers. A Thanksgiving journey as such would have been worrisome, if not impossible, if Pierce had to get behind the wheel of the vehicle she’s been using to drive back and forth to work. “There are 300,000 miles on that old van, there’s no heat and no lights, and the transmission is bad,” Pierce said. “Fantastic,” said Geralynn Kottschade, when told of the plans for the vehicle donated by the business she and her husband, Jerry, own—Jerry’s ABRA Auto Body and

Glass, located at 1671 Madison Ave. “Holiday gatherings—that’s what’s keeps families together.” This is the eighth time Jerry’s and nonprofit Minnesota Valley Action Council have worked together to match

a personal-care provider, she’ll use the Chevy to go back and forth to work in Fairmont, about a 30-mile round trip from her home in Granada. The car has plenty of room for booster seats and the 2-year-old, 4-year-

Shannon Pierce and her daughter Jola, 2, check out their new car Monday, Nov. 20, at Jerry’s Abra Auto Body & Glass. Pierce later said her drive home to Granada was toasty warm and Jola did not want to get out of her new car seat, which, like their vehicle, was donated to the family. Credit: Pat Christman

a recipient with a new set of wheels. Pierce caught a ride to Mankato to pick up the keys to a new-to-her 2008 Impala from Recycled Rides. A waitress who’s receiving training to be

old, 7-year-old and 9-year-old Pierce sisters. Their mom was nominated for the chance to win a vehicle by a Head Start teacher who regularly visits their

home, which is within walking distance to the elementary school the older siblings attend. Selection of candidates is rotated each year throughout MVAC’s ninecounty region. Next year’s Recycled Rides recipient will be a resident of Watonwan County, said Jones, manager of another refurbished vehicle program— MVAC’s Wheel Get There. Jerry’s is a member of the National Auto Body Council, which sponsors the community awareness program that repairs and donates recycled vehicles to families in need. Previous recipients from the region include a young mom who crashed her car while on an icy drive to work. She was insured, but the reimbursement was not enough to pay for a reliable vehicle. Another was a single dad who wasn’t able to get back and forth to a job and to his children’s day care. That 2009 Recycled Rides recipient became newly employed soon after he picked up his donated vehicle. The Kottschades consider the gift a “pay-it-forward one.” “Everybody’s lives have hiccups,” Geralynn said. We thank Mankato Free Press for reprint permission.

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 9

CARSTAR 76 in MI Earns Progressive Insurance ‘Top Gun’ Award

CARSTAR 76, located in Grand Rapids, MI, has brought home the Progressive Insurance Top Gun award for the third quarter of 2017.

This marks a record eight consecutive quarters that CARSTAR 76 has been named a Top Gun recipient or Top Gun runner-up. Each quarter, Progressive selects one body shop in its network that surpasses all others based on specific criteria. The repairs need to be completed consistently on time and the vehicle must be returned to the customer on the expected delivery date. To achieve this, shop and office staff must work hard to stay on

schedule and maintain a steady pace on the repair of all vehicles. To control expenses, Progressive also tracks the length of time a customer is in a rental car. This means that getting the repairs started immediately upon arrival of the vehicle and getting it back to the customer as quickly as possible are critical. “Customer service and communication with our Progressive Adjuster keep everyone informed and set proper expectations,” said Mark VanderHout, owner, CARSTAR 76. “Our estimators and technicians relay information about the repair and any additional damage found throughout the repair process as it occurs to aide in the timely repair. The CARSTAR 76 team is proud of this accomplishment and strives to get this award every quarter. Progressive knows that the criteria for this award ensures we all win: Progressive, CARSTAR 76 and our mutual customers!” CARSTAR 76 is located at 174 76th St SW, in Grand Rapids, MI. It was named CARSTAR Franchisee of the Year in 2016.

CARSTAR Chosen a Winner in Sarpy County People’s Choice Awards in NE

CARSTAR Auto Body Repair Experts was honored as a top business by the Sarpy County People’s Choice

Awards. CARSTAR was chosen a 2017 Winner for the category of body shop under auto/transportation. Thousands of votes were cast from readers

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AASP-MO Toys for Tots Drive a Huge Success by Chasidy Rae Sisk

AASP-MO members gathered at Syberg’s Restaurant on Dec. 6 for the association’s Christmas social, as well as to collect donations for its 2017 Toys for Tots drive.

collected 1,000-plus toys, ranging from Hot Wheels to bikes and everything in between. “Thanks to all who participated in our annual Toys for Tots social. Chairman Doug Slattery did a great job of leading the charge, and Syberg’s was

AASP-MO’s members gathered for their annual Christmas social on Dec. 6

AASP-MO Executive Director Ron Reiling said, “AASP-MO members will be making Christmas dreams of children come true. This year, we

AASP-MO members collected more than 1,000 gifts to donate to Toys for Tots this year

so impressed with the outpouring of kindness from our members that they asked if they could join us in collecting toys in 2018. I’m proud to say, ‘We do so much more than just fix cars!’” Enterprise Rent-A-Car sponsored food for the event, and beverage sponsors included ABRA Auto Body and Glass, Automotive Technology Inc. (ATI), CARSTAR Arnold, Chapman-Sander Insurance, Don’s Auto Body, Redfield Collision, Specialized Collision and Weber Chevrolet.

For more information about AASPMO, visit www.aasp-mo.org.

10 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

from August 10 to Sept. 9. Winners were revealed in a special section of the Omaha Suburban Newspapers on Nov. 22. Darrin McGaughey, general manager at CARSTAR Don & Ron’s, said, “The staff at CARSTAR Don & Ron’s are truly honored our loyal customers and friends voted CARSTAR as one of the top body shops in the Sarpy County area.” Businesses receiving the top votes were invited to a celebration cohosted by the Sarpy County Chamber of Commerce. The newspaper said its People’s Choice Awards demonstrates Sarpy County has quality businesses and shows how Sarpy residents work, live and play. Nearly 174 subcategories were available, ranging from auto repair shops to craft beer. Readers voted online and on printed ballots to choose their favorites. This is the fourth year Suburban Newspapers sponsored the competition.

UPDATED DAILY

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 11

Single Mothers Receive Vehicles from Zara’s Collision Center in IL Jamie Smith, a single mother of two, and Alana Yates, a single mother of three, received vehicles on Dec. 6 in Springfield, IL, thanks to Zara’s Collision Center’s Benevolence Program. Smith, a Contact Ministries resident and Walmart employee, along with her daughter Erica, 12, and son

Jamie Smith with her refurbished 2009 Chevy Equinox

Ethan, 9, were presented with a totally refurbished 2009 Chevy Equinox. Yates, also a Contact Ministries resident and employed by Help at Home, along with Andrew, 15, and daughters Amelah, 7, and Aday’ah, 5, became owners of a 2007 Hyundai Entourage. The vehicles were unwrapped during a luncheon ceremony Continued from Cover

Detroit Cops Charged

Each extortion count carries a maximum penalty of 20 years in prison and a $250,000 fine. According to the Detroit Free Press, former officer Martin admitted to taking a $500 bribe in 2014 from an auto body shop owner in exchange for referring an abandoned vehicle to that shop for repairs. The paper reports that Martin’s plea deal said he would locate abandoned vehicles through his role as a cop, have them towed, and tell the car owners about where they could send their vehicles for repairs. Under the plea agreement, he faces 24–30 months in prison. Robertson, who the Freep reports admitted to accepting two $1,000 bribes, and Tutt, who admitted to taking two $500 bribes, also face 24–30 months in prison. Careathers, who admitted to pocketing one $1,500 bribe, faces 18–24 months. The retired officers will be sentenced in the new year, while the current officers are due to be arraigned tomorrow. “While these allegations are trou-

of 150 attendees at Zara’s Collision Center as part of its Benevolence Program. “It’s very stressful getting to and from work without a vehicle,” Smith said. “I always worry about my kids missing the bus and getting to school without a car. I hate depending on other people for rides. I worry a lot about losing my job because I don’t have a car and have to be at the mercy of others.” “My goal is to become an RN of surgery and own my own business,” Yates said. “I’m attending Midwest Technical Institute four nights a week to become a certified medical assistant. Friends and babysitters give me rides to school and back to the shelter. I was terrified that would give out and I wouldn’t be able to continue my program. Having my own dependable vehicle will make all the difference in my life and my children’s—more hours at work, get to school earlier, more freedom with my children.” To be eligible for a vehicle as part of the Benevolence Program, a person must be associated with a notfor-profit agency or church, have a valid driver’s license, a good driving record and a verified need for a vehi-

bling, we are relieved that this [is] bringing closure to a long standing issue that has plagued this department,” Detroit police Chief James Craig said in the joint-agency release announcing the charges. Last year, six Detroit cops were suspended for allegedly taking bribes from a tow company owner in exchange for funneling him work, that included towing stolen cars. It’s not clear if the officers accused of extortion involving auto body shops are the same officers at the center of the towing allegations. Two months ago, ex-Detroit police deputy chief Celia Washington, who resigned in March, was indicted for accepting bribes for helping the owner of multiple towing companies get more business from the police department. The owner of the towing companies was unnamed, but local towing mogul Gasper Fiore has been charged as part of the public corruption probe as well.

We thank Detroit Metro News for reprint permission.

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12 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

cle.

“What speaks to us for both of these women is their desire to achieve more in life by focusing on the right things—faith, family, work and perseverance,” said Julie Zara, co-owner of Zara’s Collision Center. “We’re so excited for them, and can’t wait to see

Alana Yates, new owner of a 2007 Hyundai Entourage

what tomorrow holds for their lives and children.” Since the inception of the Benevolence Program, more than 30 vehicles have been acquired, restored to virtually new condition and then donated to individuals in need. A comprehensive maintenance check is done to verify the vehicle’s safety and reliability.

One of the vehicles presented was donated by a couple from the Springfield community; the other was donated by a local auto dealership. Zara’s coordinated all repairs, mechanical work and preparation for road readiness. Zara’s vendors, employees, friends, family and insurance agents also actively support the program. Nearly 50 donors contributed to the program this year for items such as vehicle repair, paint material, mechanical work, gift cards and monetary gifts exceeding $8,000. Zara’s Collision Center, now in its 31st year of business, is located at 3117 Wide Track Dr. in Springfield, one block south of Dirksen Parkway and South Grand Avenue East. The company has restored and donated 35 vehicles over the 19 years of the Benevolence Program’s existence.

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BASF Customer Andrew Lee and Driven To Cure Receive State Of Maryland Award

BASF customer Andrew Lee and the charity he founded, Driven to Cure, recently received the William Donald Schaefer People Helping People Award from the Maryland Comptroller. The award was presented at the National Institutes of Health in Washington D.C. on November 17.

Andrew was diagnosed with a rare form of kidney cancer when he was 19. Now 21, Andrew chose to fight his cancer and raise awareness of rare kidney cancers by creating the charity. He has raised more than $400,000 and shared his story of hope to thousands with his Driven to Cure custom 2015 Nissan GT-R. “We’re honored to support Andrew and Driven to Cure,” said Dan Bihlmeyer, BASF Marketing Director, Automotive Refinish. “His spirit and determination are an in-

spiration for all.” BASF provided the custom DTC orange Glasurit paint with a pearl effect for the GT-R and has continued to support Andrew and Driven to Cure at various events including the Cars & Fight Cancer event October 14-15 in Virginia and at the SEMA Show n 2016. “Andrew was chosen because of his amazing passion and commitment to raise awareness and money to help find a cure for rare cancers,” said Peter Franchot, Comptroller. “His dedication and bravery are inspirations to all Marylanders. The work he’s doing brings hope and improves the quality of life for people around the world.” The award, established in 2012, honors the public service of former Maryland Mayor, Governor and Comptroller, Schaefer. The award is presented to Maryland residents in each of the 23 counties and the city of Baltimore who demonstrate an unwavering dedication to helping others. For more information visit: www .driventocure.org.

ASA-OH to Welcome Mike Anderson in March by Chasidy Rae Sisk

On Friday, March 9 and Saturday, March 10, ASA-OH will host Mike Anderson of Collision Advice for a new workshop on 100% Disassembly and Parts Best Practices.

Managers, estimators, parts personnel and technicians are encouraged to attend this educational session. Implementing a 100 percent disassembly process is critical to all shops’ success because ensuring all parts are discovered and ordered upfront improves cycle time and minimizes the supplement ratios, improving KPIs and profitability. However, many shops struggle to acquire buy-in from their estimators and technicians. During Anderson’s full-day (9 a.m. until 3:30 p.m.) workshop, attendees will explore the importance

of creating a culture of doing things with their employees, instead of to their employees, gaining support for 100 percent disassembly. While shops often believe they are completing 100 percent disassembly, Anderson will discuss the components that shops frequently neglect to R&I and explain why these are imperative by using real-world examples. He’ll also reveal how 100 percent disassembly impacts the parts procurement process. ASA-OH will host the first seminar on Friday, March 9 at OH Auto Kolor in Columbus, while Saturday’s session will be held at ESC of Cuyahoga County in Independence, OH. Members receive a discounted rate of $159, while the cost for non-members is $269. A $20 discount is also available for shops that register by Monday, Jan. 8, 2018, and group discounts are available for member shops sending five or more attendees by contacting ASA-OH Executive Director Matt Dougher at mdougher@asaohio.org. For more information, visit www.asaohio.org.

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Continued from Cover

Industry Associations

assistance systems, autonomous vehicles and the connected car).” ASA-MI President Ray Fisher told us, “Many folks see legislation as a negative, and I understand that, but what I don’t understand is when someone does not take the opportunity to remove ‘gray areas’ that legislation may provide and turn it into a positive. I would like to see our industry professionals here in Michigan understand what has been done for them over the last few years by ASA Michigan by being supportive as a member and seizing the opportunity to be properly reimbursed according to the law. In 1974, the State of Michigan enacted the Motor Vehicle Service & Repair Act to protect consumers. We updated the law in 2016, but the law actually stipulates that the technician is the expert here in Michigan, and often times during negotiation, tactics are used that may go against the law here in Michigan; I want to see the repair industry abide by the law. “For example, if you performed an operation on a vehicle, such as ‘Pre-

Scan’ and/or ‘Post-Scan,’ the MVSRA requires that you have that documented on your final invoice, no exceptions. In accordance, these procedures vary by vehicle manufacturer and so too does the time necessary to perform such functions. I mentioned earlier about being a member, but if we are not around, who will do it for you? Happy New Year and let’s start it off together as the professionals that we are!” Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), agreed that legislation is imperative, but the CT association will place a lot of emphasis on educating legislators in its state. “We are working on educating the state agencies, legislators and representatives on the importance of OEM repair procedures and recommendations, and to recognize who should make repair decisions,” he said. The North Carolina Association of Collision and Autobody Repair (NCACAR) is a newer association that has been making a huge difference in its area and hopes to gain momentum in 2018. According to NCACAR President Brian Davies, the association wants to “make a statement in our industry by

submitting (and passing) legislation in the state that has a positive effect on the collision repair industry. One of our main goals from the beginning was to become one of the strongest associations in the U.S., and I believe this would help put us with the greats.” Increasing membership is another important goal for many associations. Risley noted, “ASA also resolves to grow our membership in 2018 by delivering the most relevant and current tools, resources, information and training to the collision and service repair industries.” Petra Schroeder, Chair of the Women’s Industry Network (WIN®), said, “Our 2018 goals are all about our members. Increase membership, increase actively engaged members, create a connection to lapsed members, expand our local presence, create member connection tools and broaden industry events’ presence. All of this will be supported by a complete change of our technology platform to manage WIN’s day-to-day operations, so that our valued Board and committee volunteers can focus on strategic outcomes.” Many associations also see a lot of value in encouraging cooperation amongst shops and other industry part-

ners. ASA-MA/RI Executive Director Stephen Regan hopes the affiliate chapter will be able “to convince as many industry stakeholders as possible that cooperation will bring more success to all of us, rather than competition and confrontation. If we spent more time seeking common ground through cooperation and less time seeking individual advantages through denial of repair information or insurer steering, for instance, we would all be better off for it.” Auto Body Association of Texas (ABAT) President Burl Richards agreed, adding, “Every shop should share their successes and failures with others. That in itself will lead to strengthening our industry and educating all of us on a daily basis.” With these associations at the helm of changes in 2018, the New Year should be exciting for everyone in the industry. My personal resolution for 2018 is to attend as many industry events as possible and meet more industry professionals face-to-face, but if I don’t make it to your area, I’d still love to hear from you with feedback and suggestions to make 2018 the best year yet! Happy New Year!

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 15

Young Women Take Aim at EHOVE Vocational Career Center in Milan, OH by Judith Linder-Ashakih, Norwalk Reflector

Young women are on their way to breaking through the glass ceilings of male-dominated professions at EHOVE Career Center in Milan, OH—and they are having fun doing it. Non-traditional careers in computer and engineering tech, auto collision repair, finance, firefighting, EMT and welding are classes growing in female enrollment. Gone are the days when these were guys-only choices. Even fathers are encouraging their daughters in many instances, said Kendra Ward, communications coordinator at EHOVE. Lily Antonio is a senior from South Central High School who is studying business and marketing. She has always loved math and problemsolving. “One of my family members is in finance at R. R. Donnelley, and she makes good money. I’m really interested in finance. This profession has a wide range of possibilities. Besides classes in business and marketing, we also study law, lots of laws and entrepreneurship. I like the fact that I can do my own finances. I can start with mine and later make it a business,” Antonio said. Besides taking accounting in the future at Ashland College, she looks forward to earning her master’s degree. When asked about competing in a male-dominated profession, Antonio’s quick comeback was, “It doesn’t scare me to be challenged by a man.” Antonio was asked of her advice for other young women thinking of careers in finance. “Take advantage of all the opportunities you can. I’ve been taking a college credit lab class here at EHOVE and also at BGSU Firelands,” she said. Sierra Scroggy is a senior from Huron High School studying collision and refinishing. “Before I got into collision, I wanted to be in culinary (arts). My dad and grandpa always worked on cars; it’s in my blood. I got accepted to (the) culinary lab first. But before the lab started, I was accepted into collision instead,” she said. “My dad thought I would enjoy it, and I had more knowledge of cars.” Scroggy had grown up watching her father and helping out in small ways in his shop. He encouraged her

to do what she enjoyed most. “He told me that just because I was a girl, I didn’t have to be afraid to get my hands dirty or get in with the guys.

combat engineer. They build whatever they need. For example, when they are deployed, they may need a temporary bridge or another temporary structure,” she said. “I love solving problems, [and] having the challenge of making something from very little. There are lots of mechanical terms, basic understanding of simple motors and electronics (in IT). I hope to go to Columbia University in These seven girls are looking at non-traditional careers at New York, or to OSU.” EHOVE Career Center. Credit: Kendra Ward Grose also is enrolled at If I get confused about lab questions, BGSU Firelands classes, which will my dad can help me,” she said. “Our inlead to an associate degree. When she structor, Mr. Duane Koch, treats us all graduates from EHOVE, she will have equally. There are four seniors and one her certificate in engineering tech. junior woman in class. I’m more friends Alyssa Burch, a junior at Westwith guys than with the girls. I had four ern, is studying construction tech. brothers and a sister who is a tomboy, “We just finished a dugout for the so I get along better with guys. My dad T-ball field at Vermillion HS. I’ve says I have two different sides. I can get learned about laying brick and how to dressed up in pretty clothes and all, but mix concrete. I want to be a construcwhen I get to the lab it’s a full 180-detion manager,” she said. gree turn. Let’s get our hands dirty. I Students go into communities for may not stick to this field; I may go to local projects, such as refurbishing vet tech school, but still have my certivery old structures. fications to fall back on.” “The seniors are at a farm in Her advice to aspiring female auto Wakeman now. The kids build and mechanics is “don’t be afraid to show them what you can do.” “Just because you’re a girl doesn’t mean you can’t do a guy’s job,” she added. Riley Bland is a Western Reserve sophomore in the explore STEM (science, technology, engineering, math) program. She rotates through each one, hoping to locate the most interesting career opening. “I want to be a nurse, then a kidney doctor. I can learn a lot of technology here. I just finished doing the CO2 model car, painting and sanding them down. It’s pretty cool. We’ll race them for a prize now,” she said. This lab enables students to make just about anything—to model, prototype and test their creations. “I’ve made a rose of sheet metal in fabrication lab,” Riley said. “It’s really hands-on, fun—hings I wouldn’t have done on my own.” “Have to be careful not to catch yourself on fire,” Scroggy piped up. Hannah Grose, a junior at Western Reserve, enjoys engineering tech. “It’s challenging; it’s lots of math and science. It gives you a better understanding of what (various) engineers do. I want to be a combat engineering officer, a civil engineer. My dad was a

16 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

supply labor,” Ward said. Janotta & Herner officials advise EHOVE teams in electrical and construction tech. As many as a dozen teams work on comprehensive proposals for real projects. They price supplies, make a timeline, etc. in a competition judged by Janotta & Herner, which has hired many EHOVE alumni over the years, as it acts as the customer. The judging is based on the completeness of every aspect of a plan. Hannah Laney, a Monroeville High School senior, is in the firefighting/EMT program. “My entire life, I wanted to be a canine cop, so [I] tried out the criminal justice program. Hated it. Then I went to firefighting. I’ve always loved helping people; it’s a hands-on job. There are more and more women in this career field—around six in this class. Females are more compassionate. They get into a ‘mom’ stage. If you have a kid who is hurt, who is 6 years old, women relate better,” Laney said. “Don’t let the boys scare you, [or] break you down. Stand your ground. “You have to be really willing to See EHOVE, Page 20

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 17

Continued from Cover

Year in Review

Brian Davies, President of the North Carolina Association of Collision and Autobody Repair, said, “2017 was our first full year of existence. It is a broad statement, but we made ourselves relevant to the collision industry in North Carolina and made a significant impact by bringing the collision industry closer together, learning how to work together, and helping each other improve while improving the industry in North Carolina. Another big move was being accepted as an affiliate member to the SCRS. With their support, we all feel more confident knowing we have others all over the U.S. that have our back. In addition, having the support of the largest U.S. paint manufacturer, PPG, has been invaluable, and without them, we would not be where we are now.” The Women’s Industry Network (WIN®) has surpassed its goals, but continues to focus on growth. “After a very successful and exciting 2017, it is challenging to focus on just one thing… besides encouraging,

developing and cultivating opportunities to attract women to collision repair, the WIN Board of Directors considered how we might move our organization to the next level of impacting women,” said Petra Schroeder, WIN’s Chair. “We reflected on our industry-atlarge and surveyed our board leaders, our members and our sponsors to assess their satisfaction with their WIN affiliation. This was followed by a board retreat to reflect on our current position and to dream about WIN’s contributions to our industry in the future. Finally, we charted the course to get there through our 2018–2020 strategic plan. It sets out a bold and ambitious vision for the members of WIN and all women in the collision repair industry. It will also provide direction for the ongoing growth and sustainability of our organization in a rapidly changing industry. “In our first strategic plan (2008– 2011), we envisioned a 500-memberstrong national network, recognized as a key contributor to our industry’s success. We surpassed the 500-member mark in 2016. In addition to ensuring that we continue to provide value for our growing network of members, the new plan looks beyond

Indiana Auto Body Association Donates $500 to Hoosier Hills Career Center

The IABA donated $500 to Hoosier Hills Career Center on Nov. 21 at its Bloomington, IN, chapter meeting. The IABA Treasurer (Debbie Moore, Diamond Collision) and Board Member (Max Bland, Minton Body Shop) presented a $500 check to Hoosier Hills Career Center’s Collision Repair program. The director of the program, John Paul, received the check. He plans to use

our membership to identify ways that WIN can have a greater impact on industry diversity and sustainability.” Education, for both repairers and consumers, was also a major area of concern for many associations. According to Auto Body Association of Connecticut (ABAC) President Tony Ferraiolo, “I think the best thing our association did in 2017 was bring educational meetings to our members. We also took a stand on photo estimates, informing consumers and shops that, in our state, the customer has the right to have their vehicles physically inspected in person by a licensed appraiser if they choose to [do so].” Ray Fisher, President of ASAMI, shared, “There were many things that were quite memorable in 2017, but the one that I think stands out for the collision repair industry here in Michigan is the session that we created from scratch, titled ‘The Relationship between Structural Repair and Vehicle Calibration.’ The reason that it stands out was because it came about from a conversation at the PF3 Paint Supply Open House and [came to] fruition within a few months. The training was intense, and it combined

collision and mechanical technology and teachings, creating awareness for not only what is ahead, but also what is on the road currently. I am proud that ASA represents the professionals within the automotive independent collision repair industry, and I think it is important to keep that attribute at the forefront as we move into the future. Today, not only is our reputation of craftsmanship at risk, but the lives of our customers and their families are in our hands every time we make a decision to repair a vehicle. I believe that 2017 served as a ‘wake-up call’ to the repair industry reflecting on this very point via a major settlement. Just as the cardiologist does what their previous or their required annual training taught them to do during open heart surgery, the technician also has to apply their knowledge to repair the vehicle properly within the guidelines of the vehicle manufacturer to ensure safe and proper repairs. I understand keeping the cost of repairs down— that is the art of negotiation between two businesses—but it should never be used to pressure anyone to compromise proper and safe repairs being performed by the expert.” See Year in Review, Page 20

HYUNDAI

C Collision (l to r) Max Bland (Minton Body Shop-IABA Board), Adam Greene (Greene’s Body Shop), John Paul (Hoosier Hills Career Center), Carl Thurman (Thurman Body Shop), Debbie Moore (Diamond Collision-IABA Treasurer) David Gronski (Curry Auto Center), Ron Mueller (Curry Auto Center), and Tasso Jones (Curry Auto Center)

the funds to provide a safer, more productive environment for his students. With the growing need for new technicians, the IABA plans to increase its partnership and scholarship within the state schools, providing a platform for those students who want to be the next generation’s collision repair employees. Several members are already heavily involved with their local vocational schools.

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Continued from Page 16

EHOVE

study [and] put in the work if you want to pick this career for life. Even if you graduate, you take continuing ed. Half of the EMT class is anatomy and patho-physiology, where you learn the body upside down, each organ, etc. Certification tests as a junior will be for FEMA, OSHA, CPR and BLS (basic life support). Today we are covering six chapters on emergency management. We will have an advanced life support paramedic certificate from EHOVE when we graduate. I already have a job offer and can work the day I graduate.” Students do ride-alongs with North Central EMS once a week for clinicals. “We see real crashes, feel the long hours and the pressure. We wear a badge as an EMT. You don’t want to be acting like a 17-year-old punk, because you are representing a company. You have someone’s life in your hands. You definitely don’t want to screw it up,” Laney said. We thank Norwalk Reflector for reprint permission.

AASP-MO to Hold Meeting on Safety Systems and Alignments by Chasidy Rae Sisk

On Wednesday, Jan. 10, 2018, AASPMO’s Gateway Collision Chapter will hold a meeting and training session on vehicle safety systems and how they are affected by alignments. The meeting will be sponsored by Hunter Engineering Company and held in its facility in Bridgeton, MO. At 6 p.m., attendees will have a chance to talk to peers during the Meet and Greet, followed by dinner and training at 6:30 p.m. The meeting will focus on vehicle safety systems, including adaptive cruise, collision avoidance, lane departure and how it relates to alignment and repairs. Attendees will then enjoy a tour of Hunter’s Classic Car Museum before engaging in some social time with their industry peers. Those interested in attending should RSVP to AASP-MO Executive Director Ron Reiling at aaspmo@aol .com. “Hunter Engineering has graciously invited you and your employees to attend this event. Get it on your calendars, and RSVP so there will be adequate food and beverages,” Reiling said. For more information about the association, visit www.aasp-mo.org.

Continued from Page 18

Year in Review

Burl Richards, President of the Auto Body Association of Texas (ABAT), said, “The most memorable things ABAT did in 2017 were related to Todd Tracy, who allowed us to visit his law firm in Dallas. It was unlike anything we had ever seen, with hundreds of wrecked vehicles in warehouses at his facility. It was eye-opening to see the amount of time and expertise that was being used to inspect these wrecked vehicles. Then, we invited him to speak at our tradeshow. His presence was met with a little resistance from the industry, but once everyone heard the message, ‘Repairing vehicles has consequences, so you better follow OEM guidelines,’ it was a message well-received, and I believe it made us all better for it.” For the Automotive Service Association (ASA), the most important experience in 2017 was related to legislation. ASA Executive Director Dan Risley shared, “We have invested several thousand man hours representing our

members and the industry in Washington D.C. We have been working tirelessly with legislators, other industry partners and the OE’s on new vehicle technology relative to telematics, (ADAS) advanced driver assistance systems, autonomous vehicles and the connected car. ASA has been extremely vocal and visible representing the best interests of the collision and service repair industries. Our goal is to ensure that our members continue to have access to the information necessary to repair their customers’ vehicles without having to enact legislation. As cybersecurity and data ownership continue to take center stage, we are ensuring that the independent repairer is part of the solution and equation.” A lot of momentum was begun and carried through into 2017, and 2018 is gearing up to be an even bigger year for the collision repair industry as these associations and others continue to educate members, expand their offerings and fight for the rights of shop owners and consumers. Autobody News looks forward to continuing to bring you all of the latest association news in 2018. Happy holidays!

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Takata Airbags Special Master Announces $850 Million Restitution Fund Allocation Program for OEMs

The Special Master in the United States v. Takata Corporation criminal case in the United States District Court of the Eastern District of Michigan announced that on Friday, Dec. 1, he launched the $850 million restitution fund for automobile manufacturers (OEMs) that purchased airbags with PSAN Inflators from Takata Corporation and its subsidiaries. The Special Master, Eric D. Green, a Boston law professor and mediator, stated that he is sending notice to more than 50 auto manufacturers around the world who purchased the Takata airbags that are subject to widespread recall programs, and who may be eligible for compensation from the OEM Restitution Fund set up as part of Takata Corp.’s plea agreement in February of this year. According to the Special Master’s notice sent to the auto manufacturers, Takata pled guilty on Feb. 27, 2017 to one count of wire fraud, and the Court entered the Restitution Order requiring Takata to, among other things, pay restitution in the amount of $481,848,850 to the OEMs who were defrauded in connection with their purchase of airbags with PSAN inflators and additional restitution in the amount of $368,151,150 to

all OEMs who purchased airbags with PSAN inflators from Takata (collectively, the “OEM Restitution Fund”), for a total amount of $850 million in restitution to OEMs. On July 31, 2017, the Court appointed Professor Eric D. Green as Special Master to oversee the OEM Restitution Fund. His responsibilities include developing a formula or formulas, subject to Court approval, for distributing funds to eligible claimants, making determinations regarding allowed claims, and making a recommendation to the Court regarding allocation of funds from the OEM Restitution Fund. A significant majority of Takata’s OEM customers (the “Consenting OEMs”), which collectively purchased approximately 90 percent of the PSAN Inflators sold by Takata as of Dec. 31, 2016, agreed upon a Proposed Allocation and presented it to the Special Master for consideration. Following a formal presentation on the proposal for allocation of the OEM Restitution Fund, several discussions with the Consenting OEMs about the proposal, and an independent review by the Special Master of the proposal, the Special Master provisionally determined that the Proposed Allocation

provides for an equitable distribution of the OEM Restitution Fund. However, to ensure that all eligible OEMs have a chance to be heard, an opportunity is being provided for them to object to the Proposed Allocation or comment in writing to the Special Master prior to final determination by the Special Master and submission to the Court for final approval. The Special Master is also in charge of a separate $125 million Individual Restitution fund designed for persons who suffer personal injury or wrongful death as the result of a Takata airbag inflator defect. Professor Green stated that the proposed allocation of the Individual Restitution fund will be announced at a later date. The Proposed OEM Restitution Fund Allocation: Under the Proposed Allocation, the restitution monies directed to the OEMs will be combined into a single global fund. All OEMs that purchased PSAN inflators, regardless of jurisdiction of sale, will be eligible to participate in the combined fund without the need for determining whether a particular OEM was defrauded by Takata. Each OEM’s allocation will be determined by the percentage of all PSAN Inflators sold by Takata glob-

ally that was purchased by that OEM as of Dec. 31, 2016. The Special Master has independently analyzed the verified third-party Takata PSAN inflator sales data utilized to determine the percentage for each OEM, and determined it reliable. The Proposed Allocation governing the distribution of the OEM Restitution Fund is set forth in the Direct Notice that was mailed electronically or otherwise to all identified OEMs that are eligible to participate in the OEM Restitution Fund. A copy of the Direct Notice and the Proposed Allocation schedule can be found and accessed on the Special Master’s website, www.takataspecialmaster.com. Any remaining funds attributable to checks that are not cashed or to wire transfers that cannot be completed will be redistributed by the Special Master pro rata to all participating OEMs. To receive an allocation from the OEM Restitution Fund, each eligible OEM will be required to provide a release in favor of the Special Master and his professionals, advisors and agents.

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www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 21

Building an Auto Repair Workforce in Kokomo, IN by Alyx Arnett, Kokomo Perspective

Local businesses are getting proactive at bridging the skills gap for automotive and collision repair technicians. Button and McGonigal recently partnered with the Kokomo Area Career Center’s (KACC) automotive classes to offer paid internships, training and jobs to the students. It’s a win-win for the dealerships and the school, said KACC director Jonathan Schuck. “When they have openings that they really need good applicants for, they say, ‘Do you have students who meet our needs?’ We help them out that way, and then they’re helping us by giving our students these great opportunities,” Schuck said. The partnership began this school year after Don Frick, VP of Fixed Operation for McGonigal, Button & Twin City Dodge/Chrysler/Jeep/Ram, ABRA Collision and G&S Auto Parts, decided something had to be done about the shortage of technicians industry-wide. After arriving to Kokomo in the spring, Frick began reaching out to schools in Howard County to see what kinds of programs were being offered. He eventually learned of the KACC program, and said it offers muchneeded career paths for students who may not go to four-year colleges. “I understand what the high schools are doing. They’re pushing kids to go to college. There are just some kids who are very intelligent and very bright, but that’s not where they want to be. There’s a huge opportunity in our industry to make a very good living and support their families and their lifestyle,” said Frick. Getting more students to pursue careers in the automotive field is critical, as the skills gap continues to widen because of the aging technician population. “Industry-wide, there’s a huge shortage of technicians [in] automotive and collision [repair], and this has been coming for a number of years now. Unfortunately, we haven’t prepared for this very well as an industry,” he said. With KACC offering automotive repair and collision repair classes, Frick saw an opportunity to take those students’ abilities a step further by placing them in real-world jobs. While the students in the KACC program already work with the public by

repairing cars that are brought in, they’re expanding their resume, learning in a different setting and getting paid while doing it through the new partnership.

and move up the ranks. “As long as I prove myself there, I should get moved into the shop working with the techs and being trained,” Stambaugh said. “This gets

Yemil Toledo and Dakota Cohee grind off bolts on a car part in the Kokomo Area Career Center’s collision repair class while donning their new Button McGonigal uniforms

Having that experience, Frick said, can help the students decide if the career path is truly one they want to take. “We believe if we can get them very early on, treat them well, take great care of them [and] show them a career path, [then] our chances of retaining these folks are much better than trying to steal one at the dealership down the street, because those guys will leave you for the next shiny nickel,” Frick said. “We figure we can build our relationship and sustain that.” Currently, several of the KACC students are working at Button and McGonigal through the internship program. Frick said it’s a step in the right direction. “I was on a conference call [with] Automotive News last week about the shortage of technicians, and you can either sit back and complain about it, or you can get involved and try to do something about it. And I think that’s where we’re at. We’re all trying to do something about it,” he said. While Frick noted there’s no substitute for experience when it comes to making quality auto repairs, he said KACC starting the students young and the partnership helping further their skills are positive moves for the local industry. Senior auto tech student Jacob Stambaugh recently started his internship on the lube rack doing oil changes and brake inspections. His hope, he said, was to prove himself

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my foot in the door in the industry, so I can further progress.” In addition to the internships, another aspect of the partnership that has proven to be pivotal was the addition of supplying Button McGonigal uniform t-shirts to the approximately 130 students in the program, along with

the teachers. According to collision repair teacher Richard Shoffner, he never could have predicted the difference a t-shirt would make. “You can almost see the kids make that transformation when they put the uniform on. They’re coming in, dragging their feet, got their pants sagging. They put their shirts on, and they pull their pants up like, ‘Let’s go.’ We flipped that switch, and that switch would be, ‘I’m acting professional because I look professional, because I feel professional.’ It’s just some cloth, but to these students, it just makes a world of a difference,” Shoffner said. Randy Vaughn, auto repair teacher, said the uniforms also level the playing field for all of the students. “It takes away the issue of, ‘My clothes are better than yours.’ It’s really brought up the morale,” Vaughn said. He said the opportunity students have to be placed in jobs has also brought up the morale. “They think it’s so awesome, and See Workforce, Page 25

We’re Looking for a Few Old Shops! Do you think you have the oldest, continuously-operated body shop in your area? Would you like to see your shop’s colorful history in print? If so, we want to hear from you. A Autobody News and collision industry journalist Gary Ledoux are working on a joint project to find, and highlight the oldest continuously operated body shops in America. Some shops may have sstarted out in the early 1900’s as a blacksmith or carriage shop. Some may have started as a mechanical repair service at a parking garage in New York or San Francisco during the 1920’s, and then turned to body work. In the latter part of the 1940’s, many ex-servicemen started body shops with skills they learned working on GI trucks and equipment. There are so many unique and interesting stories out there that should be recorded and preserved for posterity. Each qualifying shop submitted will be highlighted in Ledoux’ forthcoming book; YesterWreck: The History of Collision Repair in America. The estimated publishing date is the first quarter of 2019. No book of this sort has ever been published for the collision industry. This is a unique opportunity to be part of something special. Ledoux will provide a signed, first-edition copy of the book, upon its publishing, to any shop whose photos are used in the book. In addition, Ledoux will contact one shop from each of the five regions served by Autobody News for a complete interview and a feature story to be run in that region’s edition of the magazine. What To Send If you think you have the oldest continuously-operated body shop in your state please send us: • Shop’s Name • Address / City State and Zip • Phone number • Email address • Current owner’s name • A brief history of the shop, most importantly what year the shop was founded. Include the month if you know it. • Two to three photos of the shop, especially from its earliest days with any recognizable persons identified. These could be a picture of the front of the building, a group shot of everyone that worked in the shop at the time, people working on cars in the shop, etc. All photos should be scanned as a JPG with a minimum of 300 DPI. (Please do not take a telephone picture of a photo. The quality of such a photo cannot be satisfactorily reproduced.) All people in the photos should be identified if possible. Please send all information via email to yesterwreck@yahoo.com. For any questions, please contact Gary Ledoux @ yesterwreck@yahoo.com

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 23

In Reverse

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

Training, Certifying and Standardizing in the 1920’s with Gary Ledoux

Training Providing a steady stream of automotive technicians, both mechanical and body, is a challenge today, not unlike the 1920’s. At least today we have ICAR, Automotive Management Institute, and others. In the 1920’s we had the “University of Uncle Sam.” On November 9, 1917, the Federal Board for Vocational Education authorized payment of funds to public school for the purpose of providing technical training, including that of auto and truck repair, for military personnel and the “University of Uncle Sam was born. In Los Angeles, for example, five highs schools trained 675 soldiers in twenty-nine different trades, including auto mechanics. After the war ended, many schools bought the equipment outright, including mechanics tools and equipment, and kept the classes going for the high school students. Thus, the advent of high school auto shop got a “jump start.” Many educators saw auto shop as a way to keep boys interested in school and as such, encouraged and supported such curriculum. Auto shop, and related vocational classes became the domain of boys who were “good with their hands” rather than “college bound.” In some respects, it stigmatized those boys in the “auto shop” strata as something “less” than the college bound boys. On the other hand, it made high school more meaningful and pragmatic for those students who probably would not have gone to college no matter what their financial or social standing may be. In the 1920’s and 30’s, high school auto shop opened the door for many boys to something other than farming, or the drudgery of a factory job. It prepared many would-be mechanics, auto refinishers, auto upholsterers and future shop owners. Prior to WWI the auto industry was focused on selling people their first car. It was sell, sell, sell, with not a lot of emphasis on maintenance and repair. When the war ended, auto dealers anticipated a return to the selling mentality but instead, the country went into a downturn and new cars were not selling. In what may have a been a first in what would be a recurring cycle throughout the years, dealers turned

their focus to servicing the cars they sold, both as a way to create revenue and to show customers how good their service was so that when they needed another new car, they would remember who took care of them. This created a need for even more repair mechanics, and more support for vocational training at the high school and secondary school level. High school auto shop evolved into to pre-auto-shop classes at the junior high school level and post-highschool auto shop night classes for those people not ready for secondary school but seeking a better understanding of auto mechanics. As cars got more sophisticated, educators broke auto mechanic classes into several distinct categories including engine rebuilding, transmissions, electrical and so forth. This, it was thought, would better prepare a young mechanic for what they would likely find in the real world of auto repair if they worked for a large garage or auto dealer. A full page newspaper ad for a large Washington, D.C. garage in the late 1920’s reveals 11 different departments including body and fender, paint, auto upholstery, electric, tire, battery, blacksmith, general repair, and more. Both Ford and Chevrolet encouraged their dealers to departmentalize for greater efficiency and customer service. This likely gave rise to the dealer body shop. Despite all the classes and varying regimens, one thing the schools didn’t teach, was business management. Graduates of these automotive schools, and those that took auto shop in high school were prepared to work a wrench or a spray gun, but not a pencil or an adding machine. Business classes were virtually non-existent. This created a long-standing problem whereas many mechanics and body men went to work for large garages and after they became adept, decided they would strike out on their own and start their own business. Working a wrench or a hammer and dolly is not the same as running business, paying bills, meeting payroll, and dealing with customers. Subsequently, many failed. True business management training for the collision repair industry would need to wait until February 1983 when the

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ARMS training was established.

Certified Technicians Today, in the 21st century, the issue of licensed or certified body technicians continues to periodically bubble to the surface of the industry kettle. The trouble is, there is no universally accepted way of denoting who is, and who isn’t a qualified, competent mechanic or body technician. ASE offers testing for mechanical as well as body technicians and is generally perceived as valid inasmuch as an industry standard for testing goes. But no law exists that says everyone, including industry people and consumers, has to accept ASE testing as valid. I-CAR is the training arm of the industry and is generally accepted in the collision repair industry as a premier training entity providing technicians with a “Platinum” status for completion of prescribed training. However, there

is no law that codifies the training and designates that someone completing the training is qualified to perform safe and complete repairs. I-CAR training provides the knowledge, but not necessarily the skill. But the concept of licensing, or certifying mechanics or body men or shops to ensure competency is nothing new. As far back as pre-WWI when the idea of the personal chauffeur/mechanic began to wane and the independent auto repair industry was in its infancy, anyone and everyone who thought they could repair a car was getting into the business. Some were competent or at least gave the repair an honest try. Many were inept, and some were just simply con-artists. This soon led to a public outcry for honest and ethical “garagemen” and competent mechanics who could make a satisfactory repair. Legislators and industry observers agreed something needed to be done, and the move was on to li-

cense or certify auto repairers. At first, it seemed that everyone was behind it. But along with certification went unionizing. Mechanics calculated that if they unionized, then became certified, they could command higher wages. Garage owners and car dealers quickly made the same calculation. The garage owners and car dealer owners quickly used their influence to kill the first attempt at licensing or certifying. By the mid-1920’s the issue was dead… for the time being. The issue of certification, not technicians but shops, would not gain much traction for almost 100 years when the OE’s began certifying shops that met their criteria.

Standardizing Repair Costs As the independent repair network began to evolve in the 1920’s, the public perception of the auto repair business was not so savory. Many mechanics and garages were honest and provided value, some did not. And those that didn’t gave a black eye to everyone. Garage service managers and auto-maker engineers and service related executives wanted to clean up the industry and reform the motorist-

mechanic relationship. To do this, standard times were established for standard procedures. In effect, “flatrate time” was invented. Advocates thought that customers seeking to have work done, should be able to go into a shop, be quoted a price, have the work performed, and pay the price quoted. Advocates calculated that this simple procedure would remove motorists worry and anxiety when having their car repaired and thus, provide a more friendly and cordial atmosphere. The basic concept was sound. The problem was, who would create the flat-rate times? Ford Motor Company established some of the first flat rate times for their dealership mechanics. These were based on elaborate time-motion studies in controlled settings, removing brand new parts on brand new cars and replacing them with other brand new parts on the same brand new car. No time allowance was

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made for rusty bolts, broken bolts or other work impediments. Ford also created some flat-rate times for body repair with a similar problem – but worse. It was easy to remove a fender or running board that was brand new and clean. It was quite a different job when the parts were mangled and twisted. As with anything new, some people liked the system, some did not. Good mechanics who could meet or beat the times had no problem. Other, less talented mechanics simply moved to another garage that did not use flatrate time. Some garages lost half their work force when flat-rate times were implemented. Training, certifying and standardizing – concepts that started in the 1920’s and may have changed over the years, but still challenge the auto repair industry, both mechanical and collision, today.

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Workforce

they’re just excited to go for the interview. The guys that get hired come back excited about it. The kids in this career center really needed the shot in the arm that there are people in town, people out there after school who are concerned with them and want to help them,” he said. When it comes to preparing students in the career center throughout the various programs, Schuck said it’s not just about getting students interested in those areas—It’s also about making sure there are jobs for them if they decide to pursue those fields. Schuck said the Button McGonigal partnership proves that a career in the automotive industry won’t lead to a dead end. “This is a hotbed for industry right now, so we want to prepare these kids. That’s the biggest thing. You look across the career center now, and my whole philosophy is we’re trying to build the workforce and the industry for these kids,” he said. Thank you Kokomo Perspective for reprint permission.

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 25

Hoosier Hills Students Build Truck Inspired by ‘Fury Road’ in IN bullet holes and rust-colored, runny hand prints are all the careful work of The students at the Hoosier Hills Career the performance finishing students. Center in Bloomington, IN, wouldn’t The cannon, which looks like a futurcall their long-running automotive projistic ray gun, actually shoots T-shirts. ect a “monster truck,” per se. When it’s finally finished, the students hope to roll it out for local parades or homecoming games. It’s not entirely clear who floated the idea to build a truck inspired by “Mad Max” just to see if they could. Students say automotive collision repair teacher John Paul is the brains behind the operation. Paul points right back at the students, calling them The body of a truck based on “Mad Max” sits at the Hoosier the masterminds. Hills Career Center in Bloomington, IN, Thursday, Dec. 7. Either way, about a year and The auto body class built the body and the auto tech class is working on integrating the engine into the vehicle. Credit: a half ago, the automotive stuAlex McIntyre, Herald-Times dents walked into the garage to It’s more like a terrifying, steamfind an old Ford Ranger waiting to be punk-style, battle-ready “war rig.” transformed. Since then, the truck has With a spiked front bumper, toxicbeen coming together piece by piece, in looking chemical tanks and a wickedthe style of Frankenstein’s monster. looking mounted cannon, the truck The originator seems less imporlooks like it would be right at home in tant to everyone than the sheer number the 2015 film “Mad Max: Fury Road.” of students who have been able to participate in the build. “All the classes have gotten involved,” Paul said. Performance finishing students took care of the paint job, marking up the cab with seams to make it look as if it had been welded together from several different sheets of metal. The welding students made the truck bed on which the cannon sits. A group of five or six auJesse Jackson, a junior at Hoosier Hills Career Center in tomotive students stripped Bloomington, IN, looks to auto tech teacher Tony Feller, down a V-8 engine and rebuilt not pictures, for advice while working on attaching the engine to the frame of a truck based on the movie “Mad it to be worthy of their masterMax: Fury Road.” Credit: Alex McIntyre, piece. Even the computer tech Herald-Times support classes got involved, Which is exactly the point. The au3-D-printing a wind speed gauge as a tomotive students started working on cheeky decoration. the truck not long after the film came out. “We’re really trying to make it as post-apocalyptic as possible,” said Steven Bryant, a senior automotive studies student. The truck, of course, is not really meant to be a battle rig. The copper piping, pressure gauges and electrical boxes on the truck bed are all for show. Ray Hunsicker, a junior at Hoosier Hills Career Tanks that look as if they carry chemCenter, shows off the air intake built by the auto icals are actually empty, and the toxicbody class for the “Mad Max” truck. The license sounding labels on their sides are plates of notorious criminals, including John actually the names of ingredients in Dillinger, were painted onto the fiberglass diet sodas. The spikes on the truck’s structure created by the auto body students. Credit: Alex McIntyre, Herald-Times exterior are made of fiberglass, and the by Brittani Howell, Herald Times Online

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with a bicycle pedal. He said he wants someone to install a xylophone made of PCV pipes. “It just got out of hand,” he said with a chuckle. “It blossomed,” a student corrected fondly. The truck is not a project for class credit, but a labor of love. Paul has fronted most of the money for it himself, getting parts donated or at a discount. Nevertheless, the overall process of putting the truck together has offered plenty of educational experience. As automotive technology teacher Anthony Feller explained, most auto shops don’t strip down and rebuild engines to the extent the students have for their Mad Max truck. James East, center, a junior at Hoosier Hills, works with Austin Porter, left, attaching the engine to the frame “Building the engine was while working on a truck based on “Mad Max: Fury Road” definitely a valuable classat the Hoosier Hills Career Center in Bloomington, IN. room skill for them,” he said. Credit: Alex McIntyre, Herald-Times Across the board, the truck has provided a fun, constructive outand madcap enthusiasm. PVC pipe has let for students to practice applying been shaped into a whistle that sounds the skills they have learned at Hoosier like an oncoming train. Paul installed a retractable step that can be winched up See Fury Road, Page 29

“They all got to work on this using their skill sets,” Paul said. All in all, Paul estimates 50 to 60 students have worked on the truck since the project’s beginning. Many of them have signed their names to the roof of the truck’s cab, so their influence will be remembered. There is no overall designer for the project; it’s a mishmash of inspiration, innovation

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Product Innovation

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

Wreck Check Car Scan Centers Owner Gets his ‘I Told You So’ Moment with Ed Attanasio

by Ed Attanasio

For many years, he was telling anybody who would listen that too many shops were doing sub-par and highly unsafe repairs all over the country. Industry leaders and many shop owners thought he was either the boy who cried wolf or the little chicken who announced that the sky was falling, but Rocco Avellini isn’t easily discouraged. So, he started a business called Wreck Check Car Scan Centers, which offers a second opinion for customers who suspect that their repaired vehicles weren’t properly fixed during the initial repair process. To say the least, after a while, certain body shops started hating the man while the industry as a whole kept telling him that these shoddy and dangerous repairs were rare exceptions, rather than the norm. But now, with the recent John Eagle/Honda court decision—which awarded a couple $31.5 million after being badly burned by an improper repair—the tables are beginning to turn. It was Avellini’s “I told you so” moment—now, he believes people will start to trust his claims that improper repairs are more common than one would think. He presented his findings in 1999 when addressing the California Senate, but no action was taken. In fact, the state president of the California Auto Body Association, industry association leaders and politicians, except for Senator Joseph Dunn, were not interested, he said. “If the collision industry acted at the time of the Senate hearing eight years ago, the Eagle/Honda accident would not have occurred,” Avellini said. “Instead, the collision industry was more interested in serving the insurers rather than their customers. Years ago, when I was a founding member and chapter president for the Mid Cities chapter of the California Autobody Association, I would tell the members and officers at other organizations, including SCRS, that this was a bad situation that was going to get worse. All of them told me that these unsafe repairs were the exceptions and that only a few rogue shops were doing them. But now their tune is

changing, because it’s evident that not only small shops are involved. Large shops, collision centers and enormous MSOs with 200-plus shops are also just as guilty as some of the tiny independents out there.”

Rocco Avellini, the owner of Wreck Check Car Scan Centers, has been telling people that sub-par repairs are a serious problem. Now, after a recent court decision, more and more people are starting to agree with him

Avellini, 66, has worked in almost every aspect of the collision repair and insurance industry, starting as a body man in the late ‘60s, an insurance adjuster and Nation Property Manager, equipment sales rep and owner of an auto restoration company and a body shop (Rocco’s Collision Center in southern California) for many years. When he found out about the Wreck Check software 26 years ago, he instantly saw the need for a company that protects consumers from improper collision repairs. In 1997, Avellini founded Wreck Check Car Scan Center (WCCSC) after meeting Wreck Check founder Jim Lynas. The concept of WCCSC is to have a location where the consumer has a place to get the “Ultimate Second Opinion” regarding the completed collision repairs to their vehicle. “I have inspected more than 20,000 vehicles in my collision, insurance and post-repair inspection life, and to be honest, things are getting worse, so maybe this recent case will start to change things,” he said. “But I believe it will fade over time, the same way it did with aftermarket parts several years ago. After we started uncovering the abuse in the collision industry, we received a ton of press, and I thought that the insurers would become more proactive about making sure that collision re-

28 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

pairs would be done in a safe and proper fashion and according to manufacturers’ specifications. But it never happened. I believe that in an ongoing attempt to control costs, the insurers are just creating new ways to achieve cost-cutting, and ultimately the repairers are left with the same, if not more liability. Repairers must remember that an insurer has no standing in the collision repair process and their only duty is to indemnify their insured and make them whole.” There is never a shortage of work for Avellini and his 45 licensees nationwide, he said. “WCCSC is growing every year as more shop owners, estimators and other collision professionals see that this is a trend rather than a fad,” he said. “Diminished value and shoddy repairs have been an issue for a long time, and until people really start pushing the envelope like we do, it’s going to be the same result. But, at least some

of the fence-sitters and naysayers are now changing their tunes, especially after this recent court decision.” Avellini was telling people way back when that pre- and post-collision repair vehicle inspections were necessary—not just something to do once in a while. “We were scanning cars when no one was talking about it, so this is a good thing,” he said. “But too many shops still aren’t doing them, which exposes them to potential problems down the road—like getting sued. The problem is that because of the continued effort by insurers to control costs, a shop owner cannot afford a quality control person to oversee the repairs as the vehicle enters each department. We tell people that these inspections should be considered on a more frequent basis, especially when dealing with extensive damage that may include structural damage and SRS deployment.”

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One of the main issues is that many body shops are forced into doing poor quality repairs in order to placate their insurance partners, Avellini said. “When is enough, enough? If you take 10 hours to do a 20-hour job and cut corners along the way, it’s on you— not the insurance company,” he said. “As much as the insurance companies will tell you they are, auto insurance policies are not HMO policies. They are full indemnity policies, which mean that the owner of the vehicle has a right to be made whole.” What would Avellini say to a shop that is currently cutting corners and knows it? “Years ago in a chat room, I told the other shop owners that there is no more sitting on the fence,” he said. “You’re either with the insurance companies or against them. If you don’t repair these cars correctly, especially in this post-repair inspection world, you’re setting yourself up for getting caught and possible financial liability. I have been fighting this for more than 25 years now, and it’s finally coming to a head, but it will be good only if it leads to major changes in the collision industry.”

CIECA Calls for 2018 Speakers

CIECA is seeking experienced thought leaders and industry professionals to share their knowledge and expertise as it works with the industry to explore emerging issues, promulgate leading practices and advocate for the collision repair industry. CIECA currently has the 2018 Annual Symposium and 2018 Monthly CIECAst speaking opportunities available for you to get involved.

CIECA events bring together all segments of the collision repair industry to discuss current trends, forecasting for the future, and how to prepare for the road ahead. CIECA’s goal is to offer content that will help with solutions to pain-points and challenges facing the industry at this very moment and in the coming year. If interested in presenting at a CIECA event, please submit a proposal. http://www.cieca.com/info .php?pnum=85a0b123a93bda&pre view=1

Continued from Page 26

Fury Road

Hills Career Center, and to test out whether automotive work is what they really want to do. The truck has a ways to go before completion. On Dec. 6, the students

Landon McCoy tightens a bolt between the engine and the frame while working on a truck based on “Mad Max: Fury Road” at the Hoosier Hills Career Center in Bloomington, IN. Credit: Alex McIntyre, Herald-Times

practiced lowering the engine into its spot in the vehicle’s frame using a hydraulic crane. The automotive teachers watched at a distance, allowing senior Travis Webb to direct the placement of the engine he has had a large role in rebuilding. “Be gentle! Like it’s a baby!” Webb called to his classmates, as they

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lowered the engine snugly into its cradle. The satisfaction of finally putting the engine in place, Webb said, is “the best feeling in the world.” “I feel like a kid on Christmas,” Bryant joked. He said he’d feel even better if they let him drive it. Of course, it couldn’t be that easy. A few moments later, an alarming crack sounded as the engine’s weight bore down too heavily on the power steering unit. The fit was too tight, and the students were going to have to lift the engine back out and find another way to tackle the problem. Like the rest of the truck, the process requires a lot of trial and error. Feller estimates that it will take the class another two to three months of working on the truck every day to finally finish this scary-looking labor of love. The class still has to do much of the electrical wiring, and get Paul’s xylophone on the truck bed—not to mention finally get the engine in place. “It’s not going to be an easy process like it would have been if it was the original engine,” Feller said. Then he grinned. “But what fun would the original engine have been?” We thank Herald Times Online for reprint permission.

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www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 29

Product and Process

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Mitchell Products Created to Help Shops Deliver Proper, Safe Repairs with Stacey Phillips

Ten years ago, when a new automo- tegrated into Mitchell’s suite of prodbile was introduced to the market, the ucts. Concurrently, the company is repair of that vehicle was essentially moving its product suite to the cloud. the same as the previous year’s model. “With applications in the cloud, “That’s no longer the case,” exwe give customers a greater level of plained Jack Rozint, vice president of flexibility that is much easier to work sales and service at Mitchell Internawith than any desktop-based applicational. “New model vehicles tion—while we find greater are now likely to include scalability and an integration computers and electronic syscapability,” he said. tems that weren’t previously Autobody News talked to offered, and this means that Rozint about Mitchell’s latest new repair procedures are reinitiatives and how the comquired. With the overriding pany is helping body shops challenge of the complexity deliver proper and safe reJack Rozint, of vehicles, at Mitchell we pairs. vice president of sales and service recognized the need to proat Mitchell What are some of the vide our customers with the International new products Mitchell latest vehicle information to has introduced over the last year? help them deliver proper and safe repairs. It is our number one focus.” We had three industry firsts this As a result, the company has inyear. In addition to the Mitchell troduced a variety of products over the Diagnostics system and Mitchell Cloud last year, particularly focusing on OEM Estimating, we had what I believe is repair procedures and how these are in-

30 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

the first artificial intelligence platform for the industry—Mitchell WorkCenter™ Assisted Review. With Assisted Review, we use artificial intelligence—machine learning—to review photos of damage and give advice and guidance to humans to help them with claim reviews. It’s pretty interesting and exciting, although it’s a little scary for some people to think that a machine is going to be evaluating the images. What I ask people is, ‘Would you prefer a machine that has actually been proven to be more accurate in photo-based image processing and has been trained on 500,000 similar types of damage, or a human that may be new to the industry and has never seen a damaged panel exactly like the one you are submitting?’ We have been working with a company called Tractable. The project grew out of that company looking for good applications to apply artificial

intelligence, especially with photo analysis, and how that might relate to the automotive claims process. The first iteration came out in the form of reviewing damaged panels and helping decide whether the panels should be repaired or replaced. There are pros and cons to it, but I think that overall, it’s going to help [facilitate] more efficient processing of claims, which ultimately benefits everybody.

With the changes in digital Q: technology and using the cloud, what is the learning curve for shops? At Mitchell, we see that as our A: challenge: How do we build more powerful applications that are

easier for our customers to use? That is really the ultimate goal of any good technology company. You want to make something that is intuitive and easy to learn, but you want it also to

be very powerful, flexible, scalable and extensible, so that’s our design principle in everything we are doing. Mitchell Diagnostics is a perfect example because it helps customers address repair issues with complicated vehicles. Because the application is in the cloud, it allows us to share data and information. We can enable a process that is more efficient for those repairing cars and processing claims. It’s so easy to use that virtually anybody with just five minutes of training can go out and do a pre-scan or a postscan on a vehicle. You can do it without even opening the hood and without getting dirty. It’s a very simple and easy-to-use product. If you have the training and the willingness, it has the capabilities to do some amazing things—such as the recalibration of a Ford F-150’s lane departure system. With Mitchell Cloud Estimating, we show users a four-minute training video, and we’ve seen them watch two minutes of that video and then start writing estimates. Then we come back a couple hours later, and they have written three or four estimates and are having a great time. There is literally no formal training required

because anybody who is familiar with any estimating system can sit down with the new cloud product and get up to speed quickly. That’s a big deal, because there are people coming into the industry who don’t have 20 years of experience writing estimates.

The 2,940-square-foot Mitchell Technical Research Center in San Diego, CA

Our goal is to put together the solutions that have depth and features underneath, and at the same time include a user interface that is intuitive, easy to understand and use and doesn’t require a lot of training.

Congratulations on the recent Q: launch of Program Freedom. What are some of the benefits you can share about this initiative?

Luther Bloomington Acura Our parts. Your peace of mind.

I’m really excited about ProA: gram Freedom. The complexity in our industry continues to grow

almost exponentially. As a result, carriers are attempting to process claims more efficiently, because the insurance industry is competitive like never before. They are constantly looking at ways they can improve their policy holders’ service more cost effectively, and that leads to pressure on the collision industry to deliver more efficiently. Now we’re trying to deliver better service and repairs in an environment where the vehicle complexity is going through the roof. Each year’s models bring new challenges with repairability, whether it is recalibrating computers, bonding techniques, riveting, substrates, etc. It’s getting more complicated to repair vehicles today, which is requiring more training, equipment and tools. Program Freedom is based on Mitchell’s cloud-based estimating and communications platform. Repair facilities can choose to share data via EMS or BMS and decide which data fields are shared with each partner. We

think this is fundamentally critical to the industry. In the past, shops have had the ability to share data with whomever they wanted. I believe the industry has benefited tremendously from being able to do that. At Mitchell, we think it should remain that way because it has worked well for the past 20 years, spawning innovation along the way. That’s what Program Freedom is about at its core—it’s an alternative where you can continue to share data with program administrators and service providers on your terms, without the limitation of proprietary protocols and closed data networks. We’ve also made a commitment to the industry that we are not going to charge transaction fees for running your business using our data. We believe Program Freedom offers collision repairers a higher level of control over their business data. When one dominant provider has the ability to control business transactions and data, it creates an environment that stifles competition, pricing goes up, and service goes down. We at Mitchell wanted to provide an alternative to that. See Mitchell Products, Page 48

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www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 31

H ONDA ILLI NO I S

Honda Superstore of Lisle Ch i ca go /Su b u rb s

866-874-6632 Dept. Hours: M-F 7-5 hondaparts@auto-plaza.com

Schaumburg Honda Automobiles Sch a u m b urg

847-884-8898 847-884-6632 Dept. Hours: M-F 6:30am-Midnight; Sat 8am-5pm k.kelley@rohrman.com IND I AN A

Basney Honda M i sh a wa k a

800-877-7477 574-255-2179 Dept. Hours: M-F 7:30-6; Sat 8-2

Bob Rohrman Honda La fa ye tte

800-488-3537 765-448-1000 Dept. Hours: M 7:30-8; Tue-F 7:30-6; Sat 8-3 Brho.partsmgr@rohrman.com

Bosak Honda H ig h l a nd

800-542-6725 219-922-3102 Dept. Hours: M 8-5; Tue 8-8 W, Thu, F 8-5; Sat 8-4 davepropeck@bosakmail.com

A CU RA OH I O

Columbia Acura Ci n ci nn a ti

800-654-3553 513-530-0698 Dept. Hours: M-F 8-5:30; Sat 8-12 columbiaparts@mail.com IL L IN O IS

Acura of Libertyville Li b e rty vi ll e

847-680-7333 Dept. Hours: M-F 7:30-6; Sat 7:30-4 kmilz@acuralibertyville.com

Arlington Acura in Palatine Pa l a ti n e

800-991-8438 847-991-9005 Dept. Hours: M-W 7:30-7:30; Thu-F 7:30-5:30; Sat 8-3 aaip.partsmgr@rohrman.com

32 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. I NDI A NA

M INNE SO TA

MIS SOU RI

O HIO

Honda of Fishers

Luther Hopkins Honda

Frank Leta Honda

F ishe r s

Ho pkin s

S t . L ou is

Be d ford

800-806-6404 317-299-3723

800-328-6016 952-908-8585

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800-509-9057 440-786-3363

Dept. Hours: M-F 8-6 honda-west@att.com

Dept. Hours: M-Thu 7-9; F 7-6; Sat 8-4 tim.lewis@hopkinshonda.com

Dept. Hours: M-F 7-6; Sat 7-5 hondaparts@frankleta.com

Dept. Hours: M-F 7:30-6; Sat 8-4 jayhondaparts@gmail.com

Honda of Tiffany Springs

Great Lakes Honda

Victory Honda

Richfield-Bloomington Honda

Pl ymo uth

MI C HIG A N

800-824-4646 734-453-3600 Dept. Hours: M 7:30-8; Tue-F 7:30-6; Sat 8-4 Karl_messer@victoryplymouth.com

Zeigler Honda Ka la ma zo o

888-342-1678 269-585-5812 Dept. Hours: M-Thu 7-8; F 7-6; Sat 8-4 bobsmith@zagteam.com MI N NES O TA

Brookdale Honda B roo k lyn Ce nter

800-899-8900 763-331-6880 Dept. Hours: M-Th 7-9; F 7-6; Sat 8-6 parts@lutherbrookdalehonda.com

Buerkle Honda St. Pa u l

800-592-9514 651-484-0975 Dept. Hours: M-Thu 8-9; F 8-6; Sat 8-4:30 hondaparts@buerkle.com

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877-244-6632 417-625-0846 Dept. Hours: M, W, Th, F 7:30-6; Tu 7:30-7; Sat 9-1 dvice@roperauto.com N EBR AS KA

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Ed Napleton Honda

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800-875-4190 636-928-4400 Dept. Hours: M-Sat 7-6 gethondaparts@napleton.com

Frank Fletcher Honda C ol um bia

573-818-3650 Dept. Hours: M-F 8-5; Sat 8-4 gropp@fletcherauto.com

Dept. Hours: Tue, W, F 8-6; M, Thu 8-8; Sat 8-4 grobinette@glakeshonda.com

Waikem Honda M a si l lo n

800-225-0281 330-478-4435 Dept. Hours: M 7:30-8; Tu-F 7:30-5:30; Sat 8-4 W IS C O NSI N

Dept. Hours: M-Sat 7-6 Lrowe@bommarito.net

IL LI NO I S

Continental Acura of Naperville

Jay Honda

888-408-0911 402-408-1100 Dept. Hours: M-F 7-5:30; Sat 8-6 ianw@hondaofomaha.com

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McGrath Acura of Morton Grove

Luther Bloomington Acura

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847-470-2309

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B lo om ing t on

www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 33

OE Shop Certification

OE Shop Certification Programs - American Honda with Gary Ledoux

Welcome to the first of what will be a series of articles on one of the hottest topics in the collision industry today, OE shop certification programs. For our first one, we spoke with Rossana Alvarez, Assistant National Manager for Collision Parts Marketing for American Honda. ABN: Does your program have a specific name?

American Honda: The full name is ProFirst Certified Body Shop program, more often referred to as simply “ProFirst.” The program was introduced at the Northeast Trade Show on March 18, 2015 but the official launch date was April 1, 2015 to coincide with our fiscal year.

ABN: What is the main purpose of the program?

American Honda: As stated in our program term and conditions, the purpose of the ProFirst Certified Body Shop Program is three-fold:

■ Promote the correct, complete, and safe repair of Honda and Acura vehicles. ■ Provide support to those collision repair businesses who have demonstrated a commitment to a high level of customer care and satisfaction. ■ Provide Honda and Acura owners with a high level of confidence that their collision-damaged vehicle will be repaired in a complete and safe manner.

ABN: What are the program requirements?

American Honda: First and foremost the shop must be an I-CAR Gold Class shop or, as an alternative, be a VeriFacts VQ or Medallion shop. About 90 percent of our shops are Gold Class, about five percent are VeriFacts shops and five percent are both. We also have some OE-specific training that must be completed and maintained. This includes six on-line classes, developed by Honda and administered by I-CAR that must be completed by at least one estimator,

and two steel-structural technicians or one steel structural and one steel nonstructural technician. We have a rather lengthy tool and equipment list that the shop must have. However, we do not specify a brand of equipment, only that whatever the shop has meets our specifications. The shop must have a CSI system although we do not specify the provider. We know there are several out there and some of our dealer-shops have their own and I know some of the MSO’s have their own. We simply feel that the shop owner or manager must be aware of how his customers feel about their experience with the shop. We don’t have specific facility requirements but we expect the shop to be clean and professional looking and customer-centric where it needs to be. ABN: What are the program benefits?

American Honda: Each shop receives the following:

■ Wall plaque which is replaced each year ■ Outdoor metal sign ■ Use of the ProFirst logo on the shop’s website and social media sites ■ Free access to Honda/Acura repair information ■ Free access to Honda/Acura parts catalogs ■ Their shop’s name listed as a search result on American Honda’s ProFirst Shop Locator, which is located on American Honda’s parts and service consumer web site (owners.honda .com/parts-service/), and American Honda’s collision web site (collision .honda.com) ■ Free access to a technical help line which will go all the way to Japan if necessary ■ Honda and Acura owners can have their collision-damaged car towed free to a ProFirst shop if the vehicle is still under warranty and under the Roadside Assistance program ■ Shops receive several free collateral advertising items including consumertargeted brochures, a poster, and window-clings ■ Shops have exclusive access to a Los-Angeles based vendor who can

34 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

provide various promotional items emblazoned with the ProFirst logo and the shop’s name. ■ Each shop receives the ProFirst Quarterly magazine free

As an adjunct benefit, for about two years, American Honda has been promoting ProFirst shops in two of the insurance industry’s leading magazines. ABN: What shops are eligible?

American Honda: Both dealer-owned and independent shops are welcome as long as they meet the program requirements.

ABN: Must an independent shop be sponsored by a dealer? (If so has that caused any problems?)

American Honda: We went that route with a prior “recognized” program and yes, there were problems so we chose not to do that again.

ABN: Are any shops specifically ineligible?

American Honda: Our program is limited to US shops and dealers. We occasionally get calls from shops or dealers in Canada. Honda Canada has their own program, also called ProFirst, but it is under their own auspices. Other ineligible shops include those that cannot or will not meet Honda’s requirements.

ABN: What is the fee for the program? / Does the program run on an annual basis?

American Honda: The annual fee is $2700. It is the same for both dealer and independent shops.

ABN: Do you inspect every shop and if so, who does the inspections?

American Honda: Every shop is inspected on an annual basis to ensure program compliance. Some shops question the need for an annual inspection. However, managers change, technicians change and so maintaining compliance is an on-going issue.

ABN: Is there an optimum number of shops you want to have and if so, how close are you to reaching that number?

American Honda: Based on our calculations and the number of Honda and Acura units in operation, our ideal number is 1,200 to 1,250. We have been at that number for several months. We are still adding a few here and there but their placement is very strategic. Mostly, when shops call or email us and want to get on the program we ask where they are and if they are Gold Class or a VeriFacts shop or not. If they are Gold Class or VeriFacts but we don’t need a shop where they are located, we will likely put them on a waiting list. ABN: Have you had any shops drop out and if so, why??

American Honda: Yes, a few have dropped out. Some left because of a management change or ownership change. Some left because they joined the program for the wrong reason, thinking ProFirst was a DRP program. And some just could not or would not maintain their Gold Class status. ABN: Does Honda provide their certified shops with any brand-specific training? American Honda: As stated above, Honda provides six one-hour, on-line classes administered through I-CAR. More are planned for a later date. The current classes include:

HON10e – Honda and Acura Service Information HON11e – Honda and Acura High Strength Steel Repair HON12e – Honda and Acura Restraints Collision Repair HON14e – Honda and Acura Electrical Collision Repair HON15e – Honda and Acura A/C Collision Repair HON16e – Honda and Acura TPMS Collision Repair

ABN: Does Honda provide shops with any marketing or promotional materials? See Certification Program, Page 41

Old School Know How

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

Selling, Buying or Expanding Your Business is Not a DIY Project with Ed Attanasio

Twenty-two years ago, David Roberts sorbed by consolidators or close their was the Chairman of the Board for doors because they couldn’t afford to Caliber Collision Centers, Inc. when make these investments. In 1995, he co-founded Caliber he wrote an article in Autobody News. The article, titled Shop Consoli- Collision, the world’s first collision dation, Is It Inevitable?, makes him repair consolidator. As Chairman of look like the Nostradamus of Caliber through 2003 and the the collision repair industry. initial leader of its Corporate In his column, Roberts Development team, Roberts accurately predicted that conwrote the book on how to solidation was indeed unchange, grow and thrive in avoidable. He saw two factors this intensely competitive indriving this process. Insurdustry. Helping raise more David Roberts is ance companies were already the former Chairman than $125 million in capital pressuring shops to cut costs, for Caliber, he also led the acof the Board for improve efficiency and as- Caliber Collision and quisition of 37 individual sume many of the adjusting now owns Automo- shops and Multiple Shop Opand administrative functions. tive Group at FOCUS erators while at Caliber. Investment Banking Roberts also envisioned a In 2003, Roberts stepped rapid increase in the sophistication of away from his role at Caliber and shop technology, which would require formed the Automotive Group at more expensive equipment, tools, FOCUS Investment Banking, a team processes and training. As a result, he of six professionals with deep experipredicted many of the 54,000 shops in ence advising on mergers, acquisitions the industry at that time would be ab- and capital formation to automotive in-

vestors, collision repairers, distributors and dealerships.

How were you able to forecast Q: the future of the industry so precisely more than two decades ago?

Some of it was luck, but much A: of it came from my experience in the medical industry years before. I

saw what was happening there and figured it might go the same way in the collision repair industry. And we were right, in a lot of ways. I thought it was going to happen more quickly, but what has occurred is very close to what we envisioned. I don’t know if we organized the consolidation parade, but we were certainly able to get out in front once it started.

What were some of the biggest changes that enabled the conQ: solidators to grow and capture more of the market?

When that article was written, A: there was a very adversarial relationship between the insurers and re-

pairers. They just didn’t trust each other. Insurers always held a hammer over the shops. The shops fought back by making sure that they got every single dime out of every transaction, one way or another. DRPs were just getting started and we recognized their potential to help control costs and reduce friction— and get more cars to repair. It took a long time for providers like Caliber to organize and perform on their promises—and to convince the insurers they could be trusted as partners. Today, as the insurance industry goes through its own consolidation with huge cost pressures, they are much more willing to send more and more transactions to their DRP partners because it allows them to reduce their costs and improve service. And it’s not just the consolidators, but also other See Not a DIY Project, Page 55

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Techs Teach Disadvantaged Youth How to Restore Classics Through NV Nonprofit by Victoria Antonelli

Volunteers from the collision repair and mechanical industry are teaching disadvantaged youth how to refurbish classic cars through a nonprofit organization called Team Restorations. Incorporated in Reno, NV, in June 2017 by Lanny Backes, Team Restorations plans to eventually auction off the finished hot rods and muscle cars before donating the proceeds to those in need. Autobody News reached out to Backes to learn more.

1. What is your background, and why did you decide to start Team Restorations? I spent 20 years in the commercial airline parts industry as a broker of parts, engines and aircrafts. In my 20s, I made a lot of money, and knew from that experience that it took more than just money to make me happy. My

ect car to donate back into our community, was formed. I saw a car go through the Barret Jackson auction a few years ago and it was for a charity. It auctioned for much, much more than the car was actually worth, so it inspired me years later to try and use this medium to raise capital for charities in our community.

2. Why automobile restoration? I’ve always been interested in classic cars, specifically muscle cars. My first car was a Volkswagen Beetle. I did a lot of work on that car [to make] it into a “Baja Bug” that my friends and I rode around the Arizona desert in for fun. When I was 15, my dad bought a ‘72 Chevelle that needed some work done. I later wound up with that ‘72 Chevelle and by the time I was done with it, it looked like a true SS and was a ticket-getter! I knew I enjoyed turn-

(l to r) Manny – Teen Challenge counselor; Teen Challenge Students – Jake, Clay, Justin, Andrew, Sebastian, Silas; Michael – Teen Challenge counselor; Ryan – Teen Challenge counselor; Chris Devine – Team Restorations, Vice President; Lanny Backes – Team Restorations, President; Kelly Enget – Volunteer, shop owner “Engines by Enget”

grandfather used to tell me, “Find something you love to do, and you’ll never have to work a day in your life,” and that kept coming to mind. Plus, there were much fewer opportunities making their way to the brokering sector. This forced me to make a decision on whether to stay in or begin looking for other work. I also severely damaged my lumbar spine, which affected my abilities. I had it surgically repaired/fused in February this year. I’m still recovering, but overall am at least able to walk a little better now. I had a little exposure to some nonprofit organizations here in Reno through When Charity Works, and they inspired me to explore what I could do for the community with my own nonprofit. Eventually, the idea of working with youth and teaching them the skills involved in restoring classic cars, and then utilizing the proceeds from the raffle or auction of the proj-

ing wrenches, and I always wanted to learn auto body and paint to round it out. I worked in a body shop for a few months about seven years ago as a way to learn the process. Three years ago, I did a complete color change paint job on my Toyota truck. I knew then that doing that type of work as a career was beyond my physical capabilities, but I really enjoyed doing it!

3. What types of projects do you do? We do complete frame-off restorations and resto mods on all of our projects. Besides refurbishing hot rods and muscle cars, we have built into our business plan a program that takes low-cost, economical family-type vehicles in on donation, and does necessary refurbishments to make them dependable, reliable, nice-looking daily drivers. They can then be used in a program that gets cars to families in need. We plan to complete a couple of cars per

38 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

year for this.

4. How many people work for the organization / how many volunteers do you have? Currently, no one is officially on payroll with Team Restorations. I have a few guys who will eventually become full-time in the organization, and as we grow we hope to be able to expand into new communities and offer jobs to some of our interns who come up through the program. Presently, we have four volunteers who are professional mechanics and/or auto body and paint technicians.

5. What are the backgrounds / age demographic of the volunteers and interns? The volunteers (teachers) we have up to this point range [in age] from mid30s to about 50. We have a paint pro from Coachcraft Auto Body, an engine builder from Engines by Enget, an ASE-certified master mechanic from Tires Plus and a couple of restoration specialists from Classic Rod Shop. I will be soliciting help from more shops once we [become] more established.

Our interns (students) are all young adults ranging [in age] from 14 to early 20s. The interns come from a completely varied background and demographic. However, most would fall under the “at-risk youth” classification, meaning their situations have put all of them in compromising positions at some point, so they aren’t in the mainstream of other peer students.

6. How can others get involved? The three organizations we are working with—Teen Challenge, The Children’s Cabinet and Inspire Academy—are the only organizations [from which] we have interns coming into the program at this point. Until we have the ability to field more projects, and have more volunteers and staff to lead the student interns, we will have to remain fairly closed [off from] taking anyone not in these existing programs. It is my hope that we can open up the program to offer opportunities to more young adults, but it will require a larger facility with more space, equipment and tooling, as well as staff. For volunteers, any professional repair and maintenance technicians in-

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terested in working with our youth and leading them in restoration is encouraged to contact us so that we can discuss the program with them further and figure out a good fit for them.

7. What do the volunteers have to complete during a typical project? The project cars are completely disassembled by the interns, and all parts are properly inventoried for the reassembly process. The body repairs include typical dent repairs, filler application and block sanding prep. Cutting and welding replacement panels and floor pans will be taught to and performed by interns as well. Primer and paint application and finish are also going to be

work, we will also be teaching engine and drivetrain, suspension and brakes, and electrical as we completely go through each restoration. Once an intern has been through a couple of complete projects, they will have good resume material for getting jobs within the auto body repair and paint industry. At the very least, they should be able to find an apprentice position. We will also be funding a scholarship program for those who want to further their formal education and training.

8. Do you have partnerships with collision repair-related businesses? We do have some partnerships forming with local companies like Sierra Invisible Shield, Coachcraft Auto Body, Classic Rod Shop, Tires Plus, Engines by Enget, Hot August Nights and MAG Auto Auctions. We still have needs for tooling, equipment and cash donations, as well as project cars and trucks. We also haven’t yet made a decision and activated an insurance policy. The “interns” typically refurbish classic cars and hot rods Since those run annually with taught and performed by all interns. payment in advance, we have been Along with the body, paint and interior holding off until we are ready to begin

working in the shop.

Zara’s Collision Center in IL Donates Vehicle

9. Anything else you’d like our readers to know? I want to thank Aaron Valencia of Lost Angels Children’s Project in Lancaster, CA, for his inspiration and also for leading the way in his community. I found Aaron in May this year while trying to find other companies doing what Team Restorations plans to accomplish, and I believe Aaron is the only other one in the country! When we spoke over the phone, his enthusiasm for what we were getting ready to launch was awesome, and seeing his success helped us know that it could truly be done. Most of the owners of classic cars today are either baby boomers or their children, and Team Restorations aims to pass the torch on to the millennials with the hope that we can help keep these cars alive well into the future. How else can we keep the love for these cars alive if we don’t create the passion within them from an early age?

Zara’s Collision Center gave away a completely refurbished vehicle to a deserving individual on Dec. 6 in Springfield, IL. The recipient was referred by a local agency, and was presented with the vehicle at Zara’s Collision Center at 3117 Wide Track Drive (1 block south of South Grand Ave., Springfield, IL). The giveaway is part of Zara’s Benevolence Program:

• Benevolence Program has been in existence for nearly two decades • More than 30 vehicles have been refurbished and donated since the start of the program • Recipient and donor appreciation luncheon follows the vehicle presentation Some vehicles refurbished for the Benevolence Program are purchased by Zara’s from owners or salvage yards, while others are provided by people in the community who have heard about the program. Older vehicles receive mechanical and body work coordinated by Zara’s to restore them to an attractive and functionally safe, road-ready condition.

To learn more about Team Restorations and how to support its cause, contact Lanny Backes at lanny@team restorations.org.

See related story p. 12

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Product Innovation

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

Former Body Shop Owner Invents Photo Estimating App with Ed Attanasio

Ryan Taylor, 37, has 20 years of experience in the collision repair industry—which means he started his career when he was a teenager. In fact, he said, he opened his own shop in Vancouver, Canada with a little knowledge and a passion to succeed when he was just 17. “I started fixing dents when I was 14 and left home at 16,” Taylor said. “I began working for a dealership doing entry-level tasks in a service depart-

Ryan Taylor, a former body shop owner, invented Bodyshop Booster in 2009, an app that streamlines the estimating process for both customers and shops

ment, and after a while I began a little operation in the back of the dealership doing PDR and minor collision repair on cars, and it grew from there.” Taylor was waiting for school to start at the University of Victoria to pursue a business degree, but in the interim he decided to further pursue his modest business. “I needed a facility, so I got one, and then when the time came for me to go to school, I thought, ‘Why do I need a business degree [when] I own a business?’ So, I never did get that business degree, but things worked out anyway,” he said. The lack of a college degree didn’t dissuade Taylor, because by 2010, he had eight locations performing collision repairs and a catastrophe-response division performing hail PDR throughout Canada. In addition to the shops, the niche he and a partner developed involved repairing large fleets for car manufacturers in huge numbers, ranging from 500 all the way to 20,000. In 2014, Taylor had an opportunity to sell the business and began working on Bodyshop Booster, a concept he began back in 2009 when he started using it at his shops.

“We were looking for a tool that would give us a competitive advantage and provide convenience for our customers,” Taylor said. “The best way to describe it is Netflix vs. Blockbuster. For the average person today, to get an estimate from a body shop, you have to do it during business hours and take half a day off from work. So it’s a big commitment to get an estimate, but it really does not have to impede the [repair] process by using our very intuitive photo estimating app.” The timing was right—The technology and the need for Taylor’s app fortunately converged. “The rise of the photo applications started when some of the insurers (State Farm and All State, for example) came out with their own, and we saw that there were issues with many of them,” he said. “One of the main problems is the fact that customers inherently had no idea how to take a good photo with their phones. Invariably, they take a photo from 2–3 inches away and then the people at the shop are trying to build an estimate based on these poor-quality photos. What ends up happening is that the estimator will write a sheet that is lower than it should be. If you talk to any shop in this situation, you will hear their complaints about how low the estimates are based on these photos. “Shops ask us all the time about what they should do when customers walk in and say that they just want an estimate. So, we instruct them to say, ‘I’ve got your VIN number and I’ll look up all your information, but to save time, did you use an insurance estimate app to settle the claim on your vehicle?’ Since we have their VIN number, the customer is going to be forthright in most cases. We then tell [shops] to explain to the customer that if we find more damage, we can supplement the claim. So we’ve opened up that conversation, and now the shop has the information it needs to do a fair estimate.” Bodyshop Booster is all about making business easier, so Taylor created a “frictionless system,” he said. “Since I am in Canada, I often use an example by comparing some shops with beaver dams,” he said. “You have

40 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

a river flowing and there are beaver dams all along all the way. All that does is restrict the flow, so at the very bottom of the stream, you have a trickle where you should have a river. It’s no different when customers are looking for an estimate. The shop is only open 8 a.m. to 5 p.m., and many people work; the customer has to drive to the shop and wait to get the estimate. All of these obstacles are being put in front of the customer and making the process more difficult. So, the concept behind Bodyshop Booster is to eliminate the beaver dams, resulting in a better flow of customers.” From the very beginning, Taylor and his team have done everything they can to make the app easy for shops and their customers to use, he said. “In just seconds, we can switch them over to Bodyshop Booster,” he said. “There are no downloads, passwords, you don’t need to go to the app store—it’s instantly in there within 2–

3 seconds. This tool uses a system called ‘guided discovery’ that takes the customer through the process of taking a series of photos of their vehicle in a way that [allows us to] accurately assess the damage. It allows us to evaluate the damage remotely and in most cases, we are able to get the customer in for a repair appointment without ever having to come to the store first.” By using Bodyshop Booster, a shop can also qualify a customer quickly, Taylor said. “A shop that uses our app can tell upfront from their photos whether it’s a job they want to do—such as a rust job, a restoration or a total loss,” he said. “By using the app, they can know right away and it allows them to cherry pick the marketplace. It becomes a very powerful tool as a result. No one has ever used Netflix and then said, ‘I can’t wait to go back to Blockbuster.’ Bodyshop Booster is the Netflix of the collision business.”

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Certification Programs

American Honda: Yes as stated above. And we will soon be introducing promotional videos that shops can have custom made with their own shop name, logo, and message to be run on their web sites or social media sites.

ABN: Does Honda have a field staff dedicated to this program? If so, what is their focus?

American Honda: We have ten field personnel spread across the US. Their main focus is to on-board new shops, provide support to existing shops, and provide administrative support for Honda’s national office.

ABN: Does Honda provide a magazine or other printed materials for their certified shops?

American Honda: We provide ProFirst Quarterly magazine, containing technical articles as well as profiles on ProFirst shops and other helpful information. ABN: What has been the biggest challenge in establishing the network?

American Honda: When we first got started, shops considered the “certified shop” concept to be the domain of the more exotic European marques like Jaguar, Mercedes or BMW. They didn’t see Honda and Acura as being “exotic enough” or using exotic substrates to a point that warranted a shop certification program. Eventually they saw which way the wind was blowing

across the collision industry landscape, and jumped on board. ABN: What has been the biggest challenge in maintaining the network??

American Honda: We notify the shop 90 days in front of their expiration date. Under normal circumstance, and if all goes well, this should give them plenty of time to do what is necessary to complete the recertification process. However, some shops fail to pay in a timely manner or have lost their Gold Class status or failed to keep up with their Honda-specific training. Many times when this happens, and the shop cannot rectify the situation in time, the shop expires and is removed from the program. ABN: Do you have a website where

consumers can find your certified shops?

American Honda: Yes, as mentioned earlier, our Shop Locator is on American Honda’s parts and service consumer web site (owners.honda.com/ parts-service/), and American Honda’s collision web site (collision.honda .com) These web sites also serve as a platform to help educate consumers on the importance of proper vehicle repair performed by qualified technicians. ABN: What do you see for the future of OE certification programs?

American Honda: The collision industry is changing before our very eyes. Going forward, certification programs will need to adapt in a proactive manner to the new challenges before us.

33 Months Jailtime For Embezzlement in North Central MN, Funds Used to Support Car Restoration Hobby

The former controller of a Blaine metalstamping firm was sentenced to 33 months in federal prison for embezzling nearly $1.2 million from his company, the U.S. attorney’s office said. John Burwood Robinson, 50, from Crystal pleaded guilty in August to one count of mail fraud and one

count of filing a false tax return in conjunction with a scheme to embezzle funds from his employer, North Central Stamping & Manufacturing Inc. He was using the money to fund a carrestoration hobby, federal officials said. Robinson, who worked at the company for 25 years, was sentenced Nov.

30 by Senior Judge Paul Magnuson in the U.S. District Court in St. Paul. The scheme appears to have begun when North Central promoted Robinson to the role of controller in 2003. As part of the job, he managed the company’s bank accounts and bookkeeping records but soon began siphoning money from

the firm. According to prosecutors and plea documents, Robinson used the money to “pay for his own personal expenses, to fund his hobby of buying and restoring automobiles and automobile parts, and to pay for a storage facility to store the automobiles and parts.”

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OE Shop Certification

Audi Discusses its Manufacturer’s Certification Program, Repair Procedures & Training with Stacey Phillips

Taking the time to mentally reinvest in your business, attend hands-on training and understand your shop’s limitations can all help you run a successful collision repair facility, according to Mark Allen, collision programs manager for Audi USA. During a recent Guild 21 podcast sponsored by VeriFacts Automotive, Allen shared insight on Audi’s certification program and the importance of staying up-to-date on OEM repair procedures.

Guild 21: Audi vehicles must be repaired by OEM-certified shops. What process do you recommend shops use to obtain equipment that is approved for use in the Audi certification program?

Allen: Volkswagen Group of America represents Audi, Bentley, Bugatti, Ducati motorcycles, Lamborghini, Porsche and Volkswagen. The equipment we certify is relevant within the house of Volkswagen. It’s important to understand why certain pieces of equipment are certified over others, and it all comes down to the culture of the company. It is what makes an Audi an Audi and a Ford a Ford. To say brand X should look, smell and taste the same as brand Y is not a realistic comparison. The realism of it is that there is a process that goes on about once a year, and also during the development of crash repair procedures. I know it seems like other welders should work with our vehicles, but there is a very strict process that welders go through. It’s the same with rivet guns. They are tested for strength and other parameters in Germany and then the research is submitted. The materials used to manufacture the vehicles are also factored in so that when the piece of equipment is checked, we are assured that it will do the job.

Guild 21: Can an Assured Performance Network shop be part of the Audi program?

Allen: In my opinion, there are three different types of certification. There’s the Audi program that is very much driven by repair procedures and dic-

tates the tools, equipment and training used during the repair. On the other end of the spectrum, there are subscription-based certification programs where manufacturers form a network,

I don’t believe that is what we are about. We are responsible to take care of the general health and welfare of the motoring public and make sure the repairs are done to meet a certain standard so they have the same safety afforded to them after the repair as the original structure. The parts are an organic side byproduct of that. However, that should not be a reason why we have sponsorship. It should be that customer retention—the customer care that goes on. Some of the best partners I Mark Allen, Collision Programs Manager for Audi USA have are independently owned body shops that serve but it’s not necessarily as stringent as our dealers. ours. Then there are those I refer to as The network doesn’t just serve our the “half-pregnants.” They are some- dealers. It is the practice and basic bewhat between where the Audi program lief of Audi of America. Everyone is and where the Assured Performance who works for the company and has shops are. either a vehicle assigned to them or We try and pick partners who will leased, goes to an Audi-certified rework well with our dealers, and we predicate it on having the dealer form a relationship directly with the body shop rather than us assigning it to them. We also look at where the vehicle population lives and meet the needs of the people in those areas.

pairer if they are in an accident—no questions asked. If a vehicle is damaged in transportation, it goes to an Audi certified repairer. If there is a paint issue or warranty issue, it will go to an Audi certified repairer. We put our money where our mouth is. We make sure they go to those repairers.

Guild 21: What are your thoughts about the restricted parts for OEM certification?

Allen: Yes, we restrict parts and probably have the largest catalog of restricted parts based on technical competencies required to do those repairs and install those parts. I feel it is appropriate for our customers and if someone who was not certified does the repair, I couldn’t stand behind the structure, and would suggest rebranding and retitling the car by the person who did that repair.

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Guild 21: Does Audi require dealer sponsorship to join the certification program, given the lawsuit against Mercedes for the alleged dealer extortion, and are there any thoughts about changing this?

Allen: We’re always looking at how to do the best job for our customers. Our belief up to this point is that the dealer is in charge of their immediate area and is familiar with the customers there best. To have a sponsorship relationship between the dealership, whether it’s their own body shop or an independent repairer, is pretty important to give that level of care to the customer. We don’t just look at it as a program. Realistically, the repairer is a key player in it and should work closely with the dealer. It’s not predicated on parts sales. I tell everyone there’s nothing on my performance review that says to sell one more part or one more part dollar.

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Guild 21: What frame machines are recommended by Audi?

Allen: There are three companies currently approved by the Volkswagen group: Celette, Car-O-Liner and Spanesi. These manufacturers all work closely with Audi and are involved in the process well before the car is released for sale. They have all of the CAD data and have shown that their measuring systems and frame systems can hold their measurements and tolerances in many different ways. Guild 21: Can you tell us about Audi’s repair procedures?

Allen: As I explain to our incoming Audi of America employees, aftersales is kind of a misnomer. Manufacturers sell cars, service, parts and accessories, financing and a few other small products. Aftersales is where a lot of us live. When a vehicle is being developed, it goes through its initial engineering and clay modeling, and then moves into production. Afterward, a group of vehicles are moved over to service engineering where the engineers promptly look at the vehicles. Collision repair engineers and

technicians work together to determine and document the repair procedures as well as the specific tools that will be used. Then the vehicle is crashed into a wall. We measure it to ensure the vehicle meets the same specifications as when the car was first built. An average of 150 cars are used to ensure the models meet the various international standards. When a failure occurs, everyone looks at the repair scenario to determine what failed and how it should be fixed. Failure is how we learn. I don’t take it as a negative, but rather as an opportunity to move ahead. That information is incorporated into the repair procedures, and when production changes are made by a manufacturer, shops are not notified about the updates. I encourage all shops to check for updates on a regular basis to stay informed about changes, because they often occur without notice.

Guild 21: What are the parameters for shops that want to take part in the training offered by Audi?

Allen: Training is an important part of Audi’s certification process. We cur-

rently have one training center up and running in Ashburn, VA, where we had over 450 seats available this year, and have filled 90 percent of them. Hopefully, by the mid-first quarter of next year, we will have a second facility as well. We’ve had a capacity issue in the past, so we’ve only been able to allow technicians to be part of the program, but going forward we may be able to rethink that as capacity opens up. We currently share space with our sister brand Volkswagen. They utilize the facility about 50 percent of the time. We also welcome insurance companies to come to our training facility. We think it’s a healthy way to have a conversation about why you should do this and not that. We have quite a few folks who come through the program. The GEICO insurance national training center is about four and a half miles away. Over the years, we’ve formed a good partnership with them where they will bring their estimators and managers to our week-long training, which consists of IIHS instruction as well. We show them the number of Audis and Lamborghinis we test and how the physical bodies are cut up. The technicians receive hands-on training and get to make mistakes. I don’t look

at making a mistake as a negative. I look at it as a learning opportunity. It’s better for the tech to make a mistake at the training center than on a customer’s car. Overall, we’re trying to take care of our customers in the best way possible and form a team that includes the technician, the body shop, the insurance company and of course, Audi America.

Guild 21: One of the challenges shops have today is being able to get insurers to agree with the OEM repair procedures—not just with Audi, but with other manufacturers as well. Do you have any suggestions on how collision shops can deal with that?

Allen: After listening to Todd Tracy [The Tracy Law Firm] and Erica Eversman [chief counsel at Vehicle Information Services] speak at SEMA, I think there are a least 42 million reasons someone would want to follow the OE repair procedures! I hope everyone knows where to find them. Those who participate in the OE roundtable—a group of OEM manufacturers who meet for collision repair See Audi Discusses, Page 48

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Historical Snapshot

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

Database Enhancement Gateway Got its Start 10 Years Ago with John Yoswick

20 Years Ago in the Collision Repair Industry (January 1998) One insurance company is not only calling for the use of non-deployed airbags from salvaged vehicles, but is actually selling the units to repair shops.

Collision Industry Conference (CIC) attendees 15 years ago had a chance to compare three salvage decklids that a shop ordered from three different suppliers and brought to CIC for review

At the Collision Industry Conference in Las Vegas, Earl Cameron of Saskatchewan Government Insurance (SGI) said his company has been selling airbag units to repairers from SGI’s salvage vehicles for about a year. SGI insures all of the 860,000 vehicles in the Canadian province. Like insurers in other provinces, SGI meets regularly with auto dealer and repair shop associations to reach agreements on REITs, repair practices, etc. But unlike most other insurers that sell salvage vehicles whole, SGI dismantles its salvage vehicles and sells parts, including airbags. “Because of our unique position of having these parts available, because of the concerns of controlling our claims cost, when we met with the repair industry, we made an agreement that for vehicles where the airbag had been deployed, we would provide recycled airbags that we were in possession of for the exact make and model of that vehicle, including color match,” Cameron said. “We started that at the

end of 1996, and it was well-received by the repair industry. What we are trying to do is repair as many vehicles as possible. The more total losses we have, [the more] our costs go up. The more vehicles we repair, the happier our customers are, and certainly the happier the repair industry is. It’s a win-win situation. “One of the other reasons that we wanted to use these up is that the airbags that were undeployed had been sold, and SGI had no way of knowing where they were going, whose vehicle they went on, and whether the customer actually knew they were getting a used or undeployed airbag. So by doing this, we provide the airbag to the repairer. The industry acceptance of that is because we’re providing the airbag, we know which vehicle it came off of, how many miles are on it [and] what type of accident it was in. That was the control they wanted from us to make sure they weren’t getting an airbag that may have been damaged or not properly stored.” Cameron admitted that his company has not done any crash testing of vehicles in which the undeployed airbags were installed. – As reported in Collision Expert. No major U.S. auto insurers have moved toward calling for the use of salvage airbag modules.

15 Years Ago in the Collision Repair Industry (January 2003) Auto recyclers had to cringe at the results of a Collision Industry Conference (CIC) committee’s latest demonstration. As it did earlier this year, the CIC “Parts and Airbags Committee” had a local shop order the same type of part—in this case, a decklid with taillights for a 1990 Honda Civic— from three different salvage yards. The shop was asked to use yards it normally does business with, and not to disclose that the parts were being used in a CIC demonstration. All three of the parts that arrived and were displayed at CIC would pose challenges for the collision repairer, according to Jeanne Silver, co-chair of the committee. One was a 1998 Honda decklid, which would’ve fit the

44 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

vehicle, but was not the same model year or newer as required by some insurers. It also took two business days to arrive at the shop, and while the auto recycler described the part as [being] in “good condition,” many at CIC described it as having “light damage.” One of the other parts, which arrived the day after it was ordered, was in good condition but was even older (1997), arrived with no taillights, and was identified on the invoice as a 1998 part with taillights and hinges (also missing). Based on the lack of a VIN sticker and its significantly lower mill thickness of paint, the third part was determined to be an OEM service replacement part that had been previously repaired. Also described by the salvage provider as being in “good condition,” the decklid had a damaged taillight, and collision repairers used such words to describe the overall

condition as “moderately damaged” and “junk.” On the upside, it arrived at the shop just two hours after it was ordered. Silver said any number of problems with the decklids – their age, condition missing parts – could’ve created cycle time delays for the shop. – As reported in Autobody News

10 Years Ago in the Collision Repair Industry (January 2008) Three collision repair associations are jointly launching what they foresee as a key tool in helping the industry improve the accuracy and fairness of the estimating databases. After more than a year of planning and development, the Database Enhancement Gateway (DEG) is going live with its website, providing a single place for anyone in the industry to submit requests for reviews of labor times or operations in any of the

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SVP of BASF Coatings Discusses Changes Ahead for Collision Industry rience to vehicle owners.” The all-female build was led by The BASF Automotive Refinish CoatBogi Lateiner, co-host of All Girls ings booth stayed busy throughout this Garage on the Velocity network. year’s four-day SEMA Show in Las Lateiner gathered more than 90 women Vegas, serving as the location for events throughout the country to build the 1957 ranging from exclusive autograph sesChevy Montage that was unveiled at the sions to the unveiling of an all-female BASF booth on Oct. 31. The Montage vehicle build. project was created to bring women in the automotive industry together to work on building a unique vehicle, giving some women their first opportunity to work in a garage next to another woman. The R-M Onyx HD fan-voted color, created by Lateiner with the help of BASF’s color experts, in addition to the fan-submitted color The booth also included new color name “Tenacious Teal,” selected by offerings, premium builds, business soLateiner, were also revealed at the lutions and KC’s Custom Colors by BASF booth. BASF R-M, launched by KC Mathieu “I absolutely appreciate all of my of KC’s Paint Shop. Additionally, fans and everyone who helped make BASF exhibited the Time Merchant, a this happen,” Lateiner said. “BASF has been a huge supporter of this build from the very beginning.” Autobody News reached out to Chris Toomey, SVP of Coatings Solutions at BASF, during the SEMA Show to learn more about BASF’s plans for the future and some of the industry changes he foresees. Can you share information Chris Toomey, SVP of BASF Coatings, standing at the about your role at BASF and BASF Automotive Refinish Coatings booth at the SEMA the current focus of the comShow with the 1957 Chevy Montage pany? 1932 Ford Roadster by Goolsby CusI started my career at BASF in toms displaying a custom color devel2011 with a background in the chemoped with the BASF Color Ideation ical industry, and became SVP of process, and the Roadster, a 2017 Garia Coatings Solutions in 2014. Within Gold Car featuring BASF Coatings. my responsibility, there are two main Chip Foose’s Custom 1971 Ford focuses. One is providing paint for the Mach One Mustang, the most recent OEMs, and the other focuses on the creation by renowned designer/builder refinish business. Chip Foose, was also unveiled at the BASF booth. The unique vehicle was a 2010 Mustang GT inside of a 1971 Mustang body, and featured Glasurit 90 Line. “BASF offers our customers a complete partnership, starting from before the car is even built, through every repair or improvement it undergoes,” said Marvin Gillfillan, BASF Bogi working with BASF and her team to create the Vice President, Business Man- custom color for the Chevy Montage agement, Automotive Refinish. “Our focus is to put customers first, imBASF is the largest chemical inproving productivity and profitability dustry supplier to the automotive into help deliver the best customer expedustry. We have a substantial amount by Autobody News Staff

46 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

of time and money invested in various elements of automotive. We’re involved with the OEMs regarding topics such as light weighting, autonomous vehicles, energy reduction and processes. We are looking at how we can help the OEMs operate more efficiently and assist them as

they are developing the technology in the cars of the future. BASF conducts a lot of research and development on that side. How does this relate to the collision repair industry? There are probably three big impacts: First is the surface on the cars. You are starting to see the lightweight materials and synthetic materials coming in. From a coatings standpoint, there are a lot of challenges in this area. Second is the electronics. I believe it’s going to apply to the industry overall as repairers become more specialized and familiar with high tech equipment on the vehicles. There is going to be a different expertise required for that than what has existed traditionally. Third is the business model. Technology, the use of Bogi Lateiner, co-host of All Girls Garage on the Velocity big data and integrated sysnetwork, gathered more than 90 women throughout the tems are all going to affect the country to build the 1957 Chevy Montage that was See Changes Ahead, Page 58

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Retro News

“Big Three” estimating databases. “This is to help people who use these products when they have a question about a labor time, missing parts or inaccuracies that they feel are in a database,” said Lou DiLisio, an industry consultant who helped create the DEG. “This is for everyone in the industry: insurance companies, repairers, whoever uses the products.” The DEG also announced at the recent Collision Industry Conference (CIC) that it has hired a full-time administrator to track and follow up on requests submitted. Aaron Schulenburg, who has experience as an insurance field appraiser and collision repair shop manager and consultant, has been named to lead the DEG. The DEG has been created and funded to date by three associations: the Automotive Service Association (ASA), the Alliance of Automotive Service Providers (AASP) and the Society of Collision Repair Specialists (SCRS). Although users of the estimating databases have always been able to

submit “requests for review” to the database providers, the process has not always been simple or easily accessible. The idea behind DEG, DiLisio said, grew out of an effort by March Taylor, a Hawaiian shop owner who died this past August and who had

In 2008, Aaron Schulenburg was named the first administrator for the Database Enhancement Gateway, about a year before he became executive director for SCRS

begun using the CIC website in 2001 to assist with the submission and tracking of requests for reviews to the three information providers. “We’ve basically picked up where the efforts of March left us,” DiLisio said at CIC. “He would spend countless hours going through database inquiries, making sure they were valid

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and sending them on to the information providers, following up on them and getting back to the people who sent them in. All in all, it helped improve the accuracy of the database.” The DEG has worked with the information providers to develop a common electronic form that all three will accept for request for reviews. The website will assist shops in submitting the necessary information, and responses and any responses or resulting changes will be tracked, published and logged. – As reported in Directions. Ten years later, the DEG (www.DEGweb .org) has processed more than 11,500 inquiries. Schulenburg left his position with the DEG after about a year to become executive director of SCRS.

5 Years Ago in the Collision Repair Industry (January 2013) I-CAR welding trainers say one of the first and most important steps to good welding may be the most-often skipped: making some practice or test welds each time. I-CAR’s Jeff Peevy said conducting some practice welds on the same type of material as on the vehicle helps ensure the welder is dialed in

properly. The practice welds can be destructively tested—the only sure way to check if a weld is proper. Clifton Meaders, a claims supervisor with California State Automobile Association (CSAA), said he has asked during reinspections of repaired vehicles to see the destructive test welds a technician made, but they rarely can produce them. “That’s one of the things we see as well,” said Mark Olson of VeriFacts Automotive, which conducts in-shop technical audits and training. “The destructive tests are just not there. It’s not being done.” – As reported in CRASH Network (www.CrashNetwork.com), January 14, 2013. Peevy is now with the Automotive Management Institute, and Olson is now with Vehicle Collision Experts, LLC (VECO Experts). A 2017 “Who Pays for What?” survey (www.crashnetwork.com/collision advice) found that 22 percent of shops that perform and invoice for “set-up and perform test welds” say they are paid “always” or “most of the time” by the eight largest auto insurers; about three-quarters of shops said they have never asked to be paid for that procedure.

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Continued from Cover

Continued from Page 43

Education Day. The foundation will bring busloads of students to the Midwest Auto Body Trade Show. We welcome the students and look forward to sharing a look at their future with them. The Iowa Community College Refinish Competition returns as a show favorite. “Our students really like being involved with the show,” says Gary Sanger of Des Moines Community College, “it is encouraging to see the industry reach out.” There are few restrictions in this competition and we get to see some very innovative and crazy hoods. Training and communication is paramount to the future of every collision repairer, now more than ever. This event offers the opportunity to network with key decision makers, share business ideas, welcome students as potential employees, and as ICRA President Laura Larson says, “Get On the Same Page.” For more information see https://iowacra.com/midwest-autobody-trade-show-2018/

purposes—review this information on a regular basis. We have a collision website that has access to every participating OEM’s repair procedures and their position statements. For those who aren’t familiar with the website, I encourage you to check it out: www .OEM1stop.com. Todd Tracy made an excellent point during the SEMA show. He advised shops to research, document and photograph. Because influencers repair vehicles in a way that is incongruous with the OEM repair procedures, there needs to be notification given to the customer. Realistically, what I think should happen if aftermarket parts are outlined on an estimate or the final RO (repair order), is that it should say something like, “Audi as redesigned by xyz insurance company representative.” In these circumstances, I believe they should accept the liability for that vehicle. If you are a technician who is coming up with a repair process that is your own and does not follow the OEM repair procedures using the tools

Continued from Page 31

ward?

Midwest Trade Show

Mitchell Products

Can you tell us about the new Q: Mitchell Technical Research Center?

We’ve had a technical research center for years in San Diego, only a mile and half from our main office. We recently moved it to a larger space. We manage all of our data inhouse. We build our own database for parts and labor and conduct time studies and research into repair methods and techniques. When new vehicles are introduced to the market, we take them to our tech center and use a very sophisticated 3D laser system to measure them. The car is put up on a hoist and scanned in detail, so we can generate super precise measurements. We also have a training room at the 2,940-square-foot tech center where association meetings are held, such as the ones hosted by the California Autobody Association.

What can collision shops exQ: pect from Mitchell moving for-

Audi Discusses

In the industry right now, it’s siA: multaneously challenging and exciting because there is so much

change. I’ve been in the industry for more than 30 years, and the pace of change is greater than anything I’ve ever seen. It’s daunting at times for many people, and I understand that completely because repairs are getting more complicated. I also find it exciting because there is a lot of change. This gives us the opportunity to do things more efficiently. We have a new management team in Mitchell’s Auto Physical Damage Solutions division, led by Debbie Day, plus some veterans who have been with the company for 20-plus years. We have a nice mix of people who have been at Mitchell a long time with a serious injection of new energy. There are some exciting things on the horizon. We’ve been able to accomplish a lot this past year and have a lot more coming in terms of the latest generation of technology. Everything we do is to support collision shops in making proper and safe repairs.

48 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

and equipment prescribed, do you think you have a better chance than the well-founded, well-funded group that crash tested the car? Probably not. Most likely, I think you are going to wind up talking to Todd Tracy. Guild 21: What are some of the things you would like to share with those in the industry about Audi?

Allen: First of all, moving forward as an industry we have to start looking at ourselves, and recognize that we can’t repair everything. I think shops have to look at what the large preponderance of their business is and take steps to ensure that we are doing good work for our customers, whether it’s repairing an Audi, a Ford or a Toyota. Whatever the brands are that come through your door on a regular basis, repair them to the very best and highest ability that you can. It may sound great that you have an Audi R8 V10 plus in your shop, but if you don’t know how to fix it, you are liable and potentially putting your customer at risk. Know your limitations and pass that work on to the shops that focus on those vehicles. If you take the time to build those relationships, they will

most likely pass on vehicles that your shop is likely to repair. I think doing this would serve everyone much better. I highly recommend taking the time to make a mental reinvestment in your business. Read industry publications and attend educational events like SEMA’s SCRS seminars, CIC, and the Northeast Show. Take advantage of the learnings offered and find out how others conduct business. The better we repair vehicles, the better we will be as an industry. As a result, I believe shops will start to say, “We are not willing to do it cheaper just because it’s cheaper, because that’s wrong. I’m willing to do it the right way for the right reasons and the right compensation.”

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Industry Insight

Recent ‘Who Pays for What?’ Survey Looks at Scanning, Frame, Mechanical Operations with John Yoswick

More shops are charging and getting not differentiating between pre- and paid for post-repair “health scans” of post-repair scans,” Mike Anderson of vehicles than they are pre-repair scans, Collision Advice, co-creator of the but both procedures are increasingly “Who Pays for What?” surveys, said. being done and being paid for, accord“So while a direct comparison to preing to recent “Who Pays for What?” vious results isn’t possible, it’s intersurvey findings. esting to note that in 2016, more than The first of the 2018 quarterly one-third of shops said they had never “Who Pays” surveys, which is focused asked to be paid for any vehicle scan. on refinish operations, is being conThis year, only about 12 percent of ducted throughout the month of Janushops said they have never asked to be ary. Click here (https://www.crash paid for a post-repair scan.” network.com/collisionadvice) for more Among those shops that have neinformation or to take the surgotiated to be paid for pervey. forming these scans, 64 Each of the quarterly percent are paid “always” or surveys, conducted by Colli“most of the time” by the sion Advice and CRASH eight largest auto insurers to Network, focuses on a differperform the post-repair scan, ent aspect of collision repair. and 51 percent are paid “alOne of the 2017 surveys ways” or “most of the time” Mike Anderson looked at frame and mechanfor scanning the vehicle preical operations, including vehicle repair. A year earlier, only about 41 perscanning. Nearly 800 shops across the cent of shops said they were paid country responded to that survey, “always” or “most of the time” for eiwhich asked shops what procedures ther pre- or post-repair scans. they bill for, and about how frequently In terms of other frame and meeach of the largest auto insurers pays chanical labor operations, about 51 for those procedures. The surveys, percent of shops say they are paid “alwhich have been conducted since ways” or “most of the time” to pres2015, consistently find that more than sure test and purge a vehicle cooling 85 percent of participants say they are system when necessary as part of a reusing the surveys to improve their port, yet more than 40 percent of business. shops acknowledge never having Last summer’s frame and me- billed for this not-included procedure. chanical “Who Pays for What?” surAnderson said it’s become increasvey found that about 1-in-5 shops said ingly important to check the OEM re-

to initialize an electronic check-valve. So the labor time for this may vary based on whether this procedure can be done manually, versus requiring a scan tool.”

The “Who Pays for What?” surveys have found that while ALLDATA continues to be the most widely used source of OEM repair information for collision repair shops, the automaker websites and I-CAR’s “Repairability Technical Support Portal” have gained in usage over the past two years

The cooling system procedure was among those for which more shops reported being paid regularly compared to the previous year’s survey (a 5.9 percentage point increase). More than 40 percent of shops said State Farm always pays for this procedure when it is necessary, performed and billed for; among the top

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they have never charged for (so perhaps haven’t performed) a pre-repair vehicle scan, compared to only 1-in10 shops who said they have never charged for a post-repair scan. “In previous surveys, we asked more general question about scanning,

pair procedures in relation to testing and purging cooling systems. “Many automakers are now using electronic check-valves on their cooling systems,” he said. “You can’t just manually bleed those cooling systems any more. You need to use a scan tool

50 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

Anderson said it might be easy to overlook a seemingly simple “not-included” procedure, like disconnecting and reconnecting the battery, on estimates. But what sometimes seems like a basic operation from the estimator’s perspective can turn into a project out in the shop. If the technician must remove trim panels to gain access to the

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About 51 percent of shops report being paid “always” or “most of the time” for “pressure test / purge a vehicle cooling system,” up from 45 percent in 2016, yet the “Who Pays for What?” survey also found that more than 2-in-5 shops say they’ve never billed for that procedure when it was necessary and completed

eight largest insurers, Progressive is the least likely to pay for the procedure, but still 28.5 percent of shops reported that Progressive pays for it “always.”

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battery, that adds more “not-included” time to the job. There also can be other model-specific procedures that must be followed when a battery has been disconnected. On some Toyota

ing on a vehicle. “Every vehicle manufacturer says you must disconnect the battery for welding,” Anderson said. “Some shops believe that if they’re using a ‘memory

Two-thirds of shops sublet out wheel alignments, according to “Who Pays for What?” surveys, but among those who perform them in house, almost 70 percent bill for them using a flat-fee while the rest use estimating system time billed at the shop’s mechanical rate

trucks, for example, reconnecting the battery also requires correcting the steering angle neutral point. That’s why it’s a procedure that was asked about on the “Who Pays for Survey?” While 80 percent of shops nationally are paid “always” or “most of the time” to disconnect and reconnect the battery when it is necessary and included on the invoice, about 10– 12 percent of shops acknowledged they have never even negotiated to be paid for this procedure. This is despite the fact that it is clearly often required by the automaker, such as when weld-

saver,’ that is sufficient. That’s not accurate. You still need to disconnect the battery cable. Once again, it is important to research the OEM procedures on battery disconnect/reconnect.” Interestingly, the survey found some variation by region in the billing/payment practices for the procedure. In the Midwest, more than 20 percent have never charged for it, and only 64 percent are paid “always” or “most of the time.” But in the Northeast, 88 percent are paid “always” or “most of the time,” and only 5 percent have never charged for it.

The survey did find some uptick in shops’ research of OEM repair methods. Nearly half (48.8 percent) of shops responding to the survey said they research OEM procedures all or most of the time; this was up from 42.7 percent two years ago. Only 18.2 percent of shops said they either “never” or “only occasionally” research OEM procedures, an improvement from two years earlier when more than 25 percent said they rarely or never did. According the survey data, ALLDATA remains the most popular source of OEM information, but I-CAR’s “Repairability Technical Support Portal” and the automaker websites have each seen a steady increase in usage over the past two years, with nearly half of shops now reporting they use those sources. “Some shops think if they fix the same type of vehicle frequently, they don’t need to check those procedures every single time,” Anderson said. “But at one point last year, when you replaced a quarter-panel on a Ford Mustang, the procedure required replacing the roof as well. Today, Ford has a sectioning procedure. So it’s important to research the procedures every time because things change.” Anderson said that while he is

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pleased to see more shops researching the proper repair methods, “at the end of the day, this should still be done 100 percent of the time.” Shops can take the current “Who Pays for What?” survey (or sign up to be notified about future surveys) at https://www.crashnetwork.com/collisionadvice. The four different surveys, conducted one at a time per quarter, each take about 15–25 minutes, and should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Individual responses are not released in any way; only cumulative data is released. At the website, shops also can download the results of previous surveys, reports that break the findings down by region, by insurer and by DRP vs. non-DRP. The reports also include analyses and resources to help shops better understand and use the information presented.

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Tips for Busy Body Shops with Stacey Phillips

‘The Basics of Blueprinting’: Better Cycle Times, Improved Efficiency, More Accurate Estimates By implementing the blueprinting Different marker colors can be used process, collision repairers are finding to map a vehicle. For example, use a that hidden damage can often be un- green marker to indicate operations covered before the vehicle is repaired. that have been approved for repair; a with Stacey Phillips John Shoemaker, business develyellow marker to show supplement opment manager for BASF, said that operations; and a red marker to note blueprinting can lead to better cycle areas not approved to repair or that times, improved efficiency and a more are identified as pre-existing damage. accurate estimate. During the SEMA Shoemaker said shops can visually enshow in Las Vegas, Shoehance the repair plan using maker shared blueprinting tips circles, arrows or short notes with body shop with ownersVictoria and Antonelli and write customer requests managers who attended his or repair messages on the Society of Collision Repair windshield. Specialists (SCRS) seminar: 3. Verify vehicle informa“The Basics of Blueprinting.” “Hidden damage is the John Shoemaker, tion and take preliminary number one reason for delays business develop- photos in the repair process,” said ment manager for When verifying the vehicle with Ed Attanasio BASF, shared tips Shoemaker. “Blueprinting is a information, Shoemaker said on blueprinting team effort that involves the to look at the make, model, during the SEMA estimator, the body technician, show in Las Vegas trim level decoding, mileage, the painter and your parts peoproduction date, exterior and ple. When you’re finished with the interior color of the vehicle. He said blueprinting process, you will want to that one of the most critical things to have a really clear definition of what’s do during the process is verify the preGaryand Ledoux going to happen towith that vehicle how liminary photos, which should include all the pieces come together.” four separate shots that capture each He said there are five main objeccorner of the vehicle in a photo, as tives to blueprinting: developing an acwell as photos of the license plate, the curate plan of repair that identifies all instrument cluster, one with the engine labor operations; communicating the running, dash warning lights and repair requirements to all departments; mileage, VIN plate and production devising a schedule for repair; putting date. together a plan for resource utilization; and eliminating work stoppage. 4. Pre-scan diagnostics Some of the useful tools to consider A pre-scan of the vehicle will locate having on-hand during the blueprinting any diagnostic trouble codes with the process include a point of use cart, vehicle. which eliminates errors as well as trips “That’s where you are going to back and forth to the office; a camera; a pick up your time, by finding issues tread depth gauge; measuring and blend in front of the repair” said Shoetools; dent viewer boards; system scanmaker. “Through the OEM process, ners to verify trouble codes and diagyou’re going to find a ‘tree.’ Some nose restraint system codes; and parts people call it a rabbit hole. The time carts. you’re going to bill for is based on how far down that rabbit hole you’re going to have to go to correct the trou15 Steps for Successful Blueprinting: 1. Review initial estimate ble code.” Shoemaker stressed the importance of He recommends having fully reviewing the initial estimate to triage charged batteries before conducting the repair and determine if tear-down any scan. In addition to a pre-scan, is really necessary. Shoemaker said a post-scan of the ve“You can find out quickly what hicle will verify the need for recalithe vehicle needs by scanning the estibration. mate,” he said. 5. Damage review 2. Map the vehicle When conducting a damage review,

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52 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

Shoemaker recommends starting at the end with the most damage and working panel by panel to the opposite end of the vehicle to identify the repairs needed. Part of the repair process includes a review of the Procedural Pages (P-pages), which describe the included and non-included labor operations. The Society of Collision Repair Experts (SCRS) Guide to Complete Repair Planning is a free resource available on the SCRS website and includes operational reminders for the collision repair industry.

6. Disassemble for repair First, Shoemaker recommends positioning your parts cart to store all the parts removed and separate the usable from the unusable. Place the clips in labeled bins and identify any that are broken. “Disassemble with reassembly in mind,” said Shoemaker. “We want

to disassemble completely so when you go to put it back together, you’ve got every single thing you need.”

7. Perform the R&I (remove and install) process Repair access can include headlamps, mounting brackets, windows and Interior trim while refinish access includes door handles, weather strips and fender liners. “Make sure to include this information in the line notes,” said Shoemaker. “The estimate is a communication device that tells everybody what you are doing and why.” 8. Inspect lighting and wiring The number one CSI complaint, according to Shoemaker, regards lamps. As a result, he recommends inspecting all wiring harnesses for kinks/breaks, looking for broken bulbs and identifying the number of broken wires in the See Blueprinting, Page 54

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Continued from Page 52

Blueprinting

line note. A parts line can be added for connectors, tape and solder.

9. Inspect inner vehicle structure When reviewing the structure composition, Shoemaker said to pay close attention to the metals you are working with. OEM websites, AllData and ICAR guidelines are all resources that can help shops determine steel type and ultimately, the reparability of the vehicle.

10. Structure measurement and repair: “Similar to scanning, any vehicle that has considerable damage needs to be measured,” said Shoemaker. Establishing torque box measurement includes measuring select points, determining the damage, reason (squash or mash) and severity. Shoemaker recommends shops itemize each repair required. “Document exactly what you replace,” he said. “We live in a litigious society. We own the repair—we give everyone a lifetime warranty.”

11. Determine additional damage This includes associated damage to adjacent panels, mechanical repairs and interior repairs from secondary impact and restraint systems. Some of the websites that can be accessed to verify the repair process in respect to restraint systems include: OEM procedures, ICAR, ALLDATA and OEM1stop.

12. Refinish requirements During this stage of the process, Shoemaker said to determine blend requirements, the multi-stage process, paint times, as well as any clear and stripe requirements. When looking at identifying the paint type for a certain vehicle, use your paint manufacturer’s system, such as BASF’s SmartTrak system.

13. Address other requirements Checking the fluid and tires are also important parts of the process. “Any fluids removed should be measured,” said Shoemaker. “This allows for adequate replacement and billing.” After identifying the specific OEM requirements, reusable fluids can be stored in a sealed container and any Freon recovered should be documented. Regarding tires, note the tire

Hurricane Vehicle Replacements, Increased Advertising Drive Truck Interest

by Staff, Auto Remarketing

Jumpstart Automotive Media’s latest path to purchase report released Nov. 28 shows that in October, month-overmonth shopper interest was up 14 percent for full-size pickups and 11 percent

The 2018 Ford F-150. Recent data from Jumpstart shows the model saw shopper interest increase by 27 percent compared to last October. Photo courtesy of Ford

for three-quarter-ton and 1-ton pickup trucks. In addition to advertising that typically spotlights trucks during sporting events such as football games and the World Series, Jumpstart suggests that shopper interest in trucks this October was particularly strong due to remaining vehicle replacement activity stemming from Hurricane Harvey and Irma damage. “Between increased advertising focus, truck replacement needs and continued low fuel prices,

shoppers had many reasons to turn their attention toward pickups and SUVs during the month of October,” Jumpstart senior analyst of strategic insights Colin Thomas said in a news release. “However, what’s curious today is that shopper interest continues to wane for smaller utility vehicles, which have been very popular for versatility, functionality and value.” Among trucks, full-size pickup trucks and both threequarter-ton and 1-ton pickups had the highest share of shopper interest in October. Full-size pickup trucks and 3/4 and 1-ton pickups saw interest increases of 4.8 percent and 1.8 percent, respectively, compared to the rest of the year. The Ford F-150 and Chevrolet Silverado led October’s truck interest with increases of plus 27 percent and 13 percent, respectively, compared to last year. Larger trucks, such as the Ford F-250 Super Duty and RAM 2500, both had month-over-month growth in interest of plus 22 percent. Additionally, October was also the fourth consecutive month that share of interest declined for the subcompact SUVs/CUVs segment, which has seen a shopper interest decrease of 29 percent since June. We thank Auto Remarketing for reprint permission.

54 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

size and depth in the line note, as well as the brand.

14. Complete repair plan and take final photos When completing the repair plan, Shoemaker said to verify the “Incl” labor and conduct a P-Page audit for all the vehicle parts and procedures. When in doubt, he recommended consulting the Database Enhancement Gateway (DEG) database found at degweb.org. Funded by the Alliance of Automotive Service Providers (AASP) and the Society of Collision Repair Specialists (SCRS), DEG was developed to help improve the accuracy of collision repair estimates. The repair plan can be used as a checklist for final photos. “Take the photos in the order of the estimate and label them for clarification,” said Shoemaker. 15. Vehicle value and reparability When determining a vehicle’s value,

Shoemaker said shops can conduct thorough research on the NADA website and indicate the exact make, model and trim as well as the current mileage. The reparability of a vehicle can be determined by taking the appraisal total and dividing it by the vehicle value as a percentage. For example, if you take the appraisal total of $8,695 and divide it by a vehicle value of $12,025, the repair percentage is 72%. Shoemaker said that by comparing the repair percentage to your local laws, it will help you determine if a vehicle should be repaired or considered a total loss. “Overall, when you are blueprinting, be thorough and descriptive, itemize all repairs, take photos and document, document, document,” said Shoemaker. “Use line notes whenever possible. They’re free—they don’t cost a thing. If the insurer says, ‘No,’ you haven’t given them enough information.”

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Continued from Page 35

Not a DIY Project

MSOs and high performing independents that are benefitting as well. Today, the top 300 consolidators and MSOs fix 40 percent of the repairable vehicles and make 80 percent of the profits in an industry that has shrunk by 20,000 shops over 22 years.

sitioned to grow or have decided to exit the industry, we help them navigate the sale process, find the right partner and maximize their return. When they ask us for advice, we don’t sugarcoat it. It’s a tough industry today and if you don’t have the drive, capital, management and scale to compete, oftentimes the best decision is to sell.

How do you know which shops are prime to be sold and/or acQ: quired by a consolidator?

pool of acquirers—from consolidators to large MSOs to private equity firms. Because we understand the strategies, goals and criteria important to each of these potential acquirers, we know it’s not one size fits all. Sometimes the best fit for a seller may be a regional MSO or market competitor rather than a consolidator. This unique set of data, knowledge and experience helps our clients get better positioned for selling their businesses.

What do you do now at FOCUS Q: Investment Banking? Why do shop owners decide to We’ve built a proprietary data- Q: sell while others want to build We represent collision repairA: base that has information on and grow? A: ers, paint jobbers and car dealliterally every shop in the US. With erships in raising capital and selling to Some operators have kept up all this data, we can pretty much slice consolidators, other MSOs and private and dice the entire industry with use- A: with the dramatic industry equity firms. Over the last three years, ful information about the shops’ vol- changes and built large and still-grow-

we’ve sold nearly 100 shops and paint distributors, including some of the largest transactions in the industry. We also advise many Twenty Groups, conferences and investment firms, helping them understand what’s going on across the entire automotive ecosystem. And we currently advise some really fastgrowing MSOs that are seeking strategies and capital to “grow and thrive” and compete with the big guys. For other clients who know they are not po-

umes, the paint they spray and their paint distributors, their DRPs and their competitors. We also track every transaction and shop opening, including brownfield and greenfield locations. This allows us to produce a very robust picture of where acquirers are headed, the kinds of shops they are acquiring and information on the values they are offering to sellers. We’ve established trusted relationships with key executives in the

ing MSOs. Others have found it more difficult and are trying to figure out what’s next. Increasingly, owners who are looking to exit their businesses reach out to us with questions about their value, the right time to sell, the right way to go about selling, whether they should sell their real estate along with the business, who is the best acquirer, who will take the best care of their employees. Many growing MSOs want to learn more about their markets,

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how they can access growth capital and strategic advice on the best ways to do that. A lot of the shops that ask us about their next move have already decided to sell their business. Sometimes it’s after a consolidator has approached them, looking to buy, made an offer or asked them to name a price. Most often, they are looking for us to confirm their decision and help them through the process. Somebody who has spent their entire life building a business doesn’t want to make a mistake when they sell. They want to take care of their employees and they don’t want to sell for less than they’re worth. Some have unrealistic ideas of their value, while others undervalue their business. Some are worried that they can’t retire on what they think they will get, but they also realize things aren’t going to improve by ignoring reality. So we give them the facts as opposed to wishful thinking. The decision to sell is as much an emotional one as it is financial. It’s never easy to move on to the next stage of life. But our job is to help our client navigate through all of this, with information and experience they can’t find anywhere else.

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Visit these Genuine Hyundai Parts Dealers: www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 55

Shop Secrets and Strategies

CCC VP Discusses How Company’s Digital Solutions Meet Modern Consumer Needs with Stacey Phillips

Over the last several months, CCC has tailor the solution to their business introduced a variety of digital solu- goals. tions to the collision repair industry. They might add tools to help them These include shop management manage their DRP programs with the with Stacey Phillips tools such as CCC ONE Engage and Perform package, or the CCC ONE CCC Direct, and the cloud-based CCC Secure Share solution. Autobody News reached out to Mark Fincher, CCC’s vice president of market solutions, to learn more about CCC’s initiatives and how the companywith is meeting the needs Stacey Phillips of the modern consumer.

Shop Services

National Events

As a leading provider of softQ: ware tools and technology, what is CCC’s primary client base? Western Associations with Antonelli CCC focuses on Victoria building soluA: tions for customers in four dedicated markets, which include insurance Repair Workflow solution that offers

(l to r) Mark Fincher, Jacob Ku, Brian Sinnett and Paul Schwandt at the CCC booth during the SEMA show held in Las Vegas, NV

carriers, collision repairers, parts supfull management capability to manage pliers and most recently, we’ve added their entire shop process. auto manufacturers—OEMs. We recently added CCC ONE EnThere are three key pieces to our gage, which gives shops the capability with Victoria Antonelli business. First, is the network of staketo receive appointments through our holders who we help connect. Next, is consumer-facing website www.carwise our single, unifying platform that seam.com, and CCC Direct, repair managelessly connects all of our customers ment tools that help shop owners and with one another and the data and servmanagers implement and manage stanice providers they want to work with to dard operating procedures and view the drive additional and differentiated value health of their business. to their business and the consumers Since we launched our core platthey serve. Lastly, are our suites of marform in 2008, we’ve provided client ket-specific solutions that help users of updates at least every two months and CCC transact. Through these conneccontinue to enhance and expand our tions and solutions, CCC can not only solution while ensuring we don’t stray help drive process efficiency and transfrom our simple and intuitive design. parency, but we also glean meaningful We continually invest in our core platinsights that we can deliver back to form and deliver new solutions to colusers to help them make better business lision repairers. Our intent is to create decisions. more efficiency, improve productivity and at the end of the day, help repairCan you give us an overview ers deliver better customer service to of CCC’s digital solutions? their consumers.

Western Events

Q: Our company’s core solution is How has the customer experiA: estimating. All of our 22,000+ Q: ence shaped some of your comrepair facility customers use CCC pany’s initiatives?

ONE estimating software at a minimum. As their businesses grow, they can add on additional modules. That’s key to the CCC ONE platform. Hence the name—CCC ONE—everything is in one place. It’s all one application, and shops can purchase multiple features based on their needs. Rather than offering a “one-size-fits-all” approach, customers have a range of options to

We have made significant inA: vestments to enhance the customer experience. We want to equip repairers to serve the new modern consumer. A big part of this is recognizing how customers interact with companies and have certain expectations. Accenture has coined the term “Liquid Expectations” to describe this

56 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

new phenomenon. Let me explain. A company like Amazon and a collision repair facility are two completely different businesses. However, customers start to form certain expectations of how easy it should be to do business with a specific company. Those expectations are fluid, or “liquid,” and flow over to other experiences like collision repair. As a result, CCC has been making significant investments over the past two years to help body shops deliver a more modern customer experience that today’s consumer expects. We believe this will add the most value to collision repairers and help them work more efficiently in their businesses.

Can you tell us about some of Q: the initiatives CCC has taken to deliver a more modern customer ex-

perience and how it will help with customer satisfaction?

they first enter the shop. We’ve found this helps with the overall customer experience. A consumer is only in an accident every seven or so years. Most people have a misconception of what a collision repair facility should look like, and they may think it’s going to be a painful process. We’re hoping to change that perception by helping shops modernize the process for customers with our digital solutions. What we’re finding is that it creates an entirely different experience for the customer that they weren’t expecting. Our plan is to continue to focus more and more in these areas to be able to create that modern customer experience. Most importantly, customer satisfaction leads to referrals and return work. From an efficiency standpoint, these digital solutions will decrease the need to write everything down on paper and rekey it in later. Not only will it improve accuracy, but it also will help with first-time quality.

We’ve been doing that through tools like CCC ONE™ Touch, A: With the recent launch of CCC which we launched several years ago Q: Secure Share, can you tell us and is available to the majority of our how it will help collision repairers ex-

customers at no additional charge. The product allows an estimator to write the estimate at the vehicle with the consumer. Since then, we’ve been expanding that functionality to allow customers to sign all their documents on a tablet once the estimate is complete. We recently added a new functionality we call CCC Direct. Estimators can now complete all the prior damage inspection on a tablet with the customer present, so documentation can be completed right at the car. We’ve offered CCC ONE Update Plus for more than four years now. This gives a shop the capability to send text and email messages to consumers, and we continually enhance the product by providing richer experiences for the consumer. Consumers can find out more information about the shop, such as the hours of operation, directions or even click to contact their service advisor through simple links within the text or email messages. We also launched CCC ONE Lobby so customers can check in for their visit using a digital kiosk when

change data?

The CCC Secure Share netA: work was designed and developed out of a need from the industry

to really get a handle around Estimate Management Standard (EMS) files. EMS was developed back in early 1990s by the Collision Industry Electronic Commerce Association (CIECA) and was used as a means for information providers to export data and allow shop management systems to import that data and eliminate the rekeying of information. Over time, we’ve seen many new applications come into the marketplace, and they have continued to use that EMS standard. CIECA had the foresight in the early 2000s to develop the Business Message Suite (BMS), which creates a more flexible format that enables users of the specification to determine which data elements should be sent to the receiving party. The BMS is just a specification, but this specification combined See Repairers of Choice, Page 59

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Continued from Page 46

Changes Ahead

whole value chain of the collision industry once a car is involved in an accident. This includes the information transmitted up front until the car is finally delivered to a customer, and how that is managed and communicated. What were some of BASF’s highlights during the SEMA show? This year, we had two main focuses. One of them is that we’re certainly promoting all of our brands more broadly than we have in the past— brands that fill the lower-cost niche in the industry. We tended to rely on, and still rely on, Glasurit and R-M brands, and now we are really bringing our full brand portfolio to the marketplace— Limco and Norbin. The second thing is that we’re always very proud of our builds and our car unveilings, especially the allwomen build this year. It’s very exciting. There is a need to have more people in the industry. We need more diversity; we want to raise the profile that there is a great place for women in

itself—is to make the shop profitable. We want to get involved in conversations with shops about what drives profitably—sometimes it’s operations, sometimes it’s human resources and sometimes it’s something else. We can play a role in all of this. That means being integrated with all of the partners—working with the distributors and the shops to figure out how we can deliver solutions that the shops really require. We have great products, but I think the biggest change to BASF in the last few years is driving to the shop what it is that it needs, and how we provide solutions for them. Women traveled from around the U.S. to Phoenix, AZ, to contribute their talents to the creation of the Chevy Montage Service levels, dependability, manufacturer level. This is not a surengagement with our partners—they prise. At some point, we are going to all build off the base of great products. reach the end point of consolidation. This year, we’ve introduced cusWhat really needs to happen is a greater tom colors. We’re working with shop degree of integration between the difowners and car enthusiasts when they ferent value partners in the chain. I want a certain special color that is not think you’re going to see the manufacstocked, or they need help designing turers more closely integrated and see a color. We bring in BASF designers the distributors partner more closely from the OEM side and work with with the shops. them to design that perfect color, beAt the end of the day, our job— cause they are artists. and this is where BASF differentiates The trend is going toward custhis industry. What types of changes do you foresee in the future? Consolidation is happening all over the industry, and it’s going to continue to happen, whether it’s at the shop level, the distributor level or the

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58 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

tomization. We’re seeing it with OEMs as well. It allows that specialization and helps drive retention and awareness by the industry. What is your advice to collision repairers? Choose your partners wisely. There are some companies that are very forward-thinking about this, and there are some companies that are a little late to the game. Collision shops really need to understand their own business model and how they need to evolve into what they want to become. How are BASF performance groups helpful to repairers? There are a couple of different levels. The first level is that they provide an opportunity for shops to get a perspective on their own data in a collective form. We share comparative data with them on what really good shops are doing and how they are driving efficiency, and help them understand and see where they may have opportunities. It’s really an opportunity for education development at a business level for shops to help them increase their performance.

For more information on BASF, visit https://www.basf.com/us/en.html.

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Continued from Page 56

Repairers of Choice

with a secure cloud platform to transmit the data creates a secure data exchange with third-party application providers. We announced CCC ONE Secure Share last September and started transmitting data to a number of application providers in April. The real benefit and the main reason we made the investment in developing Secure Share is to secure data. With EMS data today, it’s unencrypted—it’s sitting on thousands of shop servers. Shops typically have to install what is called a “data pump” from an application provider and there is no restriction for that data being shared or sold somewhere else. We’re able to secure that data using the BMS file format, so shops only have to share relevant information with their application provider through a secure mechanism. We believe this move will help protect the data for all stakeholders who have a vested interest in keeping this data secure. We also think that it will bring new innovation to the market-

place by making it easier for a new application provider to make one connection to Secure Share versus having to install hundreds or thousands of data pumps in collision repair facilities. A shop will have full transparency about what they are going to be sending. Then, if they stop doing business with a

ensure data is transmitted quickly to ensure a smooth workflow for repairers. We are making it easier to connect to our network, and we’ve built an entire application suite that allows application providers to manage all of their connections in one place. Some app providers have talked

certain company, they can go into the Secure Share marketplace from within CCC ONE and terminate that connection instantly.

about passing that cost along to their shops. We hope that the cost savings from Secure Share will keep them from doing that, and they will realize the additional benefits they will receive to scale their applications more effectively. We gave the industry a little over 18 months to prepare and we said that we’ll forfeit any revenue the first year so application providers have time to budget. We understand that there are some up-front implementation costs to connect to us, so we waived the first year of fees to be able to help offset those costs as well as allow them time to budget. In April, we’ll be discontinuing EMS and begin charging for

The real benefit and the main reason we made the investment in developing Secure Share is to secure data — Mark Fincher

has the reaction been since Q: theWhatlaunch of Secure Share? We’ve received a lot of quesA: tions—mainly from the application providers—related to costs.

We decided not to charge the repair facilities for the significant infrastructure and tools that we built. We are going to be processing thousands and thousands of files a minute so as you can imagine, significant investments have been made to support this volume and

MINNESOTA

Secure Share.

What are some of your future Q: plans, such as telematics? We’re currently seeing changes in terms of vehicle technology. A: Part of the impetus for us to launch

our new OEM market is to expand our network and help auto manufacturers connect into the network more efficiently. Several years ago, we bought a company called Drive Factor that is focused on the telematics space. We’ve been investing in that technology and undertaking a number of initiatives to connect vehicles to the network while working with OEMs, insurance partners and repair facilities so they can gain access to the data more quickly. There is a wealth of information coming from the connected car now. As a result, we believe there is a significant opportunity for us to help utilize that information across our network and use that data to help all of the constituents of the ecosystem get better insight to how they can more effectively manage their businesses, and ultimately use that data to serve consumers better. SOUTH DAKOTA

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www.autobodynews.com | JANUARY 2018 AUTOBODY NEWS 59

Shop Management

Employee Sharing—Does it Really Work? with Ed Attanasio

lose their best employees, but if there is no business, profitability suffers.” We all know that finding and retainThe biggest question is this—will ing top technicians is not as easy as it competing body shops be willing to used to be. share their employees? In fact, in some parts of the coun“If you look at any company, estry, they’re calling the shortage of pecially startups, their success really qualified people an epidemic. Shops happens when they partner with other are working hard to bring in cars to companies,” Massabki said. “By colfix, but what do they do when there is laborating and creating a network of no one to do the job? peers or partners, small companies beThe idea of job sharing isn’t any- come bigger and more successful, and I thing new. In fact, in 1972 the New believe that this will be the same case Ways to Work Foundation was cre- with auto repair and body shops. The ated to “establish a work world that key to a successful partnership is to find responds to the changing a win-win formula and viable needs of individuals and ormeans to execute the partnerganizations,” according to ship. the San Francisco Business “The auto repair industry Times. It became even more is plagued with mistrust and prevalent two decades later risk-averse small business when more and more people owners with limited rebegan looking for alternative sources to figure out how to Elie Massabki is work arrangements. make an employee-sharing the founder and Two important factors owner of mechanics transaction work in a legal, that began to push the job marketplace.com, a efficient and risk-free manner. site that will help sharing movement were the This is the big value that our birth of the World Wide Web, shops lend out and app brings. We don’t simply borrow their which made it easier for both connect shops together. The employees companies and job share parapp and legal agreement that ticipants to share information through our members agree to formalize the web tools. These web tools enabled transaction between the shops to avoid employees to share work in a more misunderstandings. It sets rules for ethcollaborative environment in an asynical behavior and employee safety; chronous manner, while the everprovides step-by-step guidance to shop changing demographics also drove the managers on what they need to do to job-sharing arrangement even further. conduct a transaction; goes through a So, here comes a company called process to ensure best fit between what Skill-Loan LLC, based in San Carlos, the job requires and the employee’s CA, that operates Mechanics and Body skills; and provides an efficient and Shops Marketplace, a website accomreal-time way of communicating bepanied with a mobile application. The tween the shops.” owner and founder is Elie Massabki, It’s job sharing taken to a whole who has extensive experience working new level, Massabki said. for Silicon Valley high-tech startups. “Borrowing and loaning employ“Our idea originated from the fact ees is a new concept in this industry that small businesses are in constant that addresses the ups and downs of the need of help, and auto repair shops, business and helps business owners opboth mechanical and collision, do not timize their operations to the market have a local marketplace that addemand,” he said. “This is where the dresses their daily need for skills, servskill loan concept originated, and that’s ices, equipment and parts,” he said. why we filed a patent on it. We are “The brick and mortar business is building regional trusted networks for cyclical, which makes it very difficult auto repair shops to collaborate forfor a small business to balance its mally, ethically and efficiently. In order changing demand for personnel with for shop owners to feel comfortable the ups and downs of the business on a loaning their best employees, every weekly basis. Employers don’t want to shop that borrows an employee has to by Ed Attanasio

60 JANUARY 2018 AUTOBODY NEWS | www.autobodynews.com

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

agree to our terms and conditions, which state that they can’t hire a borrowed employee for a period of 12 months. If they need a full-time employee, we help them find one. This is the peace of mind and legal protection we help provide every shop owner, because we know that poaching has become a problem in this industry.” With the collision repair industry being like a roller coaster, Skill-Loan is making the concept of employee sharing a viable solution. By providing convenient alternatives for shops of all sizes, they can call plug in technicians when they need them the most. “We are enabling shops to fill in the gaps, so that it won’t impact their production or cycle time,” Massabki said. “If they need a tech to cover for one of their permanent employees while they go on vacation or are out on leave, we can help them. Or if a shop does not have enough work, they can loan out their employees for a predetermined period.” In addition to the employee marketplace, Massabki and his team have designed a portal where shops can resell parts they’re not using for repairs. “We discovered that collision repair shops often get stuck with used body parts that they can’t use for whatever reason,” Massabki said. “Often, they sit for years, but now we’ve created a portal where shops can sell these parts and maximize their profits. With auto dismantlers, used parts suppliers and specialty suppliers connected to the platform, all of our members are able to expand their networks, find and buy what they want, sell their excess inventory, as well as outsource their unique capabilities to other shops in a very efficient manner. They can also borrow tools and equipment from other shops through the Mechanics and Body Shops Marketplace app.” As the website and applications

begin to gain momentum, Massabki is hoping that his creation eventually becomes the go-to site for job sharing, borrowing and swapping. “We have more than 400 shops and suppliers in the California Bay Area onboard, and the marketplace is now open and fully operational. We are also actively recruiting independent reps to promote our solution nationwide, and recently added Indianapolis, IN, and Las Vegas, NV, to our markets,” he said. One of the early adopters of this concept is Tony Olea, operations manager at Dynamic Auto Body in San Jose, CA. “The Mechanics Marketplace app is a greatly needed resource for us in many ways,” Olea said. “It will help us quickly find temporary technicians to cover for some of our techs, give us an additional resource to locate used parts for some of our cars and help us outsource some of the mechanical work we don’t do here. I am also very happy that we can now sell our used body parts and increase our profits with the app.” Another value-added feature that was recently added to the Mechanics Marketplace is a job posting portal. Imagine a CareerBuilder or Job.com that caters specifically to the automotive repair industry where collision professionals can post their resumes and shops can search for new prospects. To connect to his members on an ongoing basis and build on his concept of trusted networks, Massabki is going to conduct a series of quarterly meetings. The meetings will help create closer relationships with them and allow Massabki to learn from them as well. “We want to brainstorm with our members and find out what their needs are, so that we can provide solutions that will become the norm in the automotive repair industry,” he said.

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Continued from Page 4

Severity

use it as any kind of a measure.

What is important for a shop to Q: know in order to find out if the data is meaningful?

Sample size matters! The data analysis is dependent on the amount and quality of data that you have. Smaller sample sizes typically have wider variability. This reduces the validity of the data as a meaningful performance measure. For any arithmetic average to be meaningful, the sample sizes need to be larger than 1,000. For data sets where there are fewer than 1,000 individual values, you need to ‘test’ the data to determine the reliability of the calculated average mean as a representative KPI. How can KPI data be tested standard deviation? Q: using All of a shop’s data varies A: around a central value called the ‘mean.’ One test that can be used to as-

sess the reliability of a particular KPI is a standard deviation calculation. This determines how far a particular KPI can vary above and below a particular central value while still including the majority of all that data—68 percent. In other words, if we calculate the standard deviation, we are saying 68 percent of all the data that you have— if the sample size is large enough— should follow a random distribution of data and be contained within one standard deviation above and below the ‘mean.’ The purpose is to understand how to use this to your benefit. Unless you consider the variability of the actual data analyzed, a mean might not tell you the whole story and may be highly suspect as a measure of a central tendency for any specific data set from a performance benchmark standpoint. In addition to severity, this can also apply to CSI, cycle time, after-

market parts usage, type of part usage, rental car data and any other KPI used to evaluate your business activity.

How far above/below a KPI is Q: too far? Accidents are random events. It A: is only when enough occur— more than 1,000—that they MAY

begin to form a normal distribution,

which will have the majority within 68.3 percent of the individual data set when you create a range +/- 1 standard deviation around that mean. Smaller or ‘skewed’ sample sizes may create flatter distributions with larger variability and a wider numeric value range with all of the data. Based on the idea that the data will naturally vary around a central point, it makes sense to consider where the majority—68 percent—of that data will fall. That happens to be one standard deviation away from the arithmetic mean. The standard deviation should be around 34 percent of the mean value. The wider or larger the magnitude of the standard deviation, the less reliable the mean is as a performance measure. The point is that with this data, you’re being judged on something that you’re not [able to be judged] on. However, body shops will try to meet certain targets even if it doesn’t make mathematical sense. It’s important to understand the concept of sample size—how

Moorhead, MN, Body Shop Changes Owners A long-operating auto collision shop in Moorhead recently got new owners. Michael Bednar and Chris Czernek, longtime employees at Larry’s Auto Body, 128 16th St. N., announced in a Facebook post in November that

they’re the new co-owners of the business. The two have a combined 38 years in the auto body industry, including 32 years at Larry’s, according to the announcement. Larry’s Auto Body was established in 1949 by Lawrence “Larry”

many cars your shop is being judged on. I looked at the average RO data from 26 body shops over a 12-month period. The 2,858 ROs I reviewed represented every car repaired except for those that were parts-only with no labor, ROs that were detail only and all total losses. Every data set that was reviewed showed signs of significant skewness, which resulted in variability with a VERY large standard deviation value

equaling 95—110 percent of the mean. This implies that for this data set, severity is a poor measure of central value.

When a shop is told that their Q: severity is too high, what can be done?

Establish a ceiling value that is reasonable! Use a calculation A: result of the purported ‘mean’ plus the

standard deviation to identify an upper limit for the KPI. If the KPI monitor cannot provide you with a calculated standard deviation, simply calculate the dollar range yourself from YOUR actual data. Like it or not, KPIs are being used to make decisions about your business performance whether the KPIs are valid or not. Being able to discuss those variables in an intelligent way is crucial for you to be able to deflect a negative critique or unjustified demand, especially when it is beyond your control. I often ask shops if their DRP feels like they are playFortier, according to Forum archives. Fortier died in 1996 and his wife, Gloria Fortier, took over the family business with her sons serving as managers. The Facebook announcement didn’t say when Bednar and Czernek officially became owners of the busi-

ing whack-a-mole.

What if I just work on high-end Q: luxury cars? Does that affect the data?

Shops can identify the range A: that would include the 68 percent majority of the data of a particular

data set. In addition to this, is the FACT that some cars are just more expensive to repair than others. You do need to adjust the stated “severity” value in any KPI discussion to reflect this disparity between brands and models. An excellent tool for this is the Highway Loss Data Institute (HLDI) online data that is the accumulation of virtually every insurer’s paid claim data and using a ‘base 100 scale’ clearly shows that some vehicle brands may in fact cost +150 percent to +200 percent more than others to repair. This would move the $3,000 average severity number discussed above to either $4,500 as an adjusted central number at 150 percent or $6,000 at 200 percent. An important point with these more expensive luxury vehicles is that within the HLDI data, it indicates [that] the more expensive cars to repair with additional technology and safety systems seem to have significantly LESS occupant injury costs. Ronak created a sortable Excel tool to determine the severity weighted value of a shop’s work mix percentage by vehicle brand. After entering the severity value supplied by the DRP, it can be adjusted to a shop’s specific work mix. The weighted value will represent where the severity value should be adjusted based on the type of work mix you have using the insurance-provided data. Tim Ronak’s SEMA presentation “Severity—Why It Does Not Matter and What to Do About It!” can be accessed online. The presentation was part of the SCRS Repairer Driven Education series. For more information or to obtain a copy of the sortable Excel tool, email Tim Ronak: timothy.ronak@akzonobel .com. ness, which was family-owned until the purchase.

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