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AUTOBODYNEWS.COM
Vol. 8 / Issue 4 / January 2019
State Farm Wins in Race Bias Suit Over Repair Shop Contracts
Community Devasted After GM Announces Plant Closings, Lordstown, OH, Will be Hard Hit
by Staff, Bloomberg BNA
by Tara Molina, Kaylyn Hlavaty and Amanda VanAllen, News 5 Cleveland, Associated Press, and others
State Farm Mutual Automotive Insurance Company has won dismissal of a lawsuit alleging the insurer discriminated against a minority-owned auto body repair shop wanting to participate in the Select Service program for State Farm customers. The Fifth Circuit in 2017 affirmed the previous dismissal of most of the discrimination claims brought by Body by Cook and owner Robert Cook. Only Body by Cook’s Section 1981 failure-to-contract race bias claim remained to be litigated in
the U.S. District Court for the Eastern District of Louisiana. But the district court granted summary judgment to State Farm Nov. 16, saying that “no reasonable trier of fact could find that State Farm had an available contract” to bring BBC into its Select Service Program during the time periods in question. Two of the dates, November 2011 and March 2014, were too far in the past to bring claims, the court said. As to the remaining July 2014 failure to contract claim, the court See State Farm Wins, Page 13
Collision Repair Industry Associations Make 2019 New Year’s Resolutions by Chasidy Rae Sisk
Since the Babylonians began the tradition of making New Year’s resolutions over 4,000 years ago, people around the world have kicked off each new year by making a promise to improve some aspect of their lives. The collision repair industry is no different, and associations around the country have begun thinking about what they can do to improve their organizations in 2019. Fortunately, some of these industry leaders were willing to share their 2019
New Year’s resolutions with Autobody News. Increasing membership, expanding educational offerings and pursuing legislative initiatives were all largely important to associations and the industry in 2018. Collision repair professionals can anticipate seeing these efforts extend into 2019 with renewed vigor. Elijah Winans, board member of the North Carolina Association of Collision and Autobody Repair (NCACAR), would “like to see our membership, attendance See Resolutions, Page 24
The General Motors plant in Lordstown will stop production in March of 2019, sources confirmed. The closing is devastating news for many in Mahoning Valley, who’ve relied on the General Motors Lordstown plant for more than 50 years. “They get $2.3 billion in profits this last quarter, gonna have $10 billion for the year. This is what they do to us now? After a huge tax cut. What more do you want from the American people?” Congressman Tim Ryan said to News 5.
According to city officials, for every factory job cut, seven others are affected, so it’s not just the estimated 1,500 who work at the plant facing uncertainty come 2019, it’s all of the businesses who call the area home. “There won’t be one neighborhood, one school, one church that’s not affected by this closure today,” Ryan said. “This has been the plant that’s held this community through a lot of ups and downs.” The community considers Lordstown’s GM plant their 6.2 million square foot heart, beating since 1966. Small businesses like Nese’s See Plant Closings, Page 18
Holidays Holidays y Caliber Collision, ABRA (Auto Body Repair of America) To Merge Caliber Collision (“Caliber”) and ABRA Auto Body Repair of America (“ABRA”) recently announced a definitive merger agreement that brings together the companies’ teams, brands and operations to better serve their customers and insurance clients. The combination joins two complementary leaders in the $47-billiona-year collision repair industry. “This combination will allow us to offer even greater satisfaction for our valued customers and insurance clients while creating new opportunities for the talented teammates of both companies,” said Steve Grimshaw, Caliber Chief Executive Officer. “With more than 1,000 stores in 37
states and the District of Columbia, we look forward to providing customers and insurance clients with the flexibility and convenience that come with the broadest geographic coverage in the United States and a full suite of services.” The combined company will offer customers and clients a single solution with more offerings, including dedicated non-drive, express and aluminum-certified and high-line repair centers. Customers will also benefit from increased choice, as substantial opportunities exist to expand the companies’ offerings, such as glass, mechanical, diagnostic See Caliber Collision, Page 26
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