January 2023 Midwest Edition

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U.S. Senators Introduce Bill to Combat Catalytic Converter Theft Nationwide

U.S. Sens. Amy Klobuchar, D-MN, and Ron Wyden, D-OR, introduced legislation to combat the rise in catalytic converter theft.

The Preventing Auto Recycling Theft (PART) Act would ensure law enforcement can more effectively address these thefts by marking each converter with a traceable identification number and establishing converter theft as a criminal offense.

locate stolen car parts, we will be one step closer in the fight to end catalytic converter theft.”

Catalytic converters are used to reduce the potency of toxic emissions from an internal combustion engine and required for vehicle compliance with the Clean Air Act. According to the National Insurance Crime Bureau, catalytic converter thefts rose by more than 325% from 2019 to 2020.

Replacing these parts imposes significant financial costs to vehicle owners, often between $500 to $2,300, and can even result in a total loss to the vehicle.

The PART Act would:

“Throughout the country, we’ve seen an alarming increase in catalytic converter theft. These converters can be easily taken from unattended cars but are difficult and expensive for car owners to replace,” said Klobuchar. “By making catalytic converter theft a criminal offense and ensuring each converter can be easily tracked, our legislation would provide law enforcement officers with the tools and resources they need to crack down on these crimes.”

“The theft of catalytic converters hurts the pocketbooks of working families and small business owners already struggling with rising costs,” said Wyden. “By strengthening local law enforcement’s ability to

Require new vehicles to have a Vehicle Identification number (VIN) stamped onto the converter to allow law enforcement officers to link stolen parts to the vehicle from which they originate

Create a grant program through which entities can stamp VIN numbers onto catalytic converters of existing vehicles

Improve record keeping standards for purchasers of used catalytic converters

Establish enforceability of laws around catalytic converter theft by codifying these crimes as a criminal offense

The bill has received the endorsement of the National Automobile Dealers Association, the American Truck

Ford Breaks Ground on $5.8B Blue Oval SK Battery Park in Kentucky

Ford has officially broken ground on its $5.8 billion Blue Oval SK Battery Park in Glendale, KY, where the automaker’s joint venture with SK will produce 5,000 new jobs in the region when it begins production in 2025.

Ford announced Dec. 5 the Blue Oval SK Battery Park is officially under construction, with two massive battery manufacturing plants capable of more than 80 gigawatt hours of production annually at the forefront of the project.

The plant is expected to help increase Ford’s production output

REGIONAL NEWS

The Federal Trade Commission is sending payments totaling more than $9.8 million to consumers harmed by Illinois-based Napleton Automotive Group’s junk fees and discriminatory practices. The agency is sending 66,355 checks, averaging $147 each. Recipients should cash checks within 90 days.

Consumers who have questions about their refund should call the refund administrator, Epiq, at 1-888-691-6050. The FTC never requires people to pay money or

of electric vehicles to 2 million units per year, but will require a serious headcount once production gets moving. Five thousand new workers will fill the buildings at Blue Oval

provide account information to get a refund. The FTC and the State of Illinois sued Napleton Automotive Group in March, alleging Napleton employees were sneaking illegal junk fees for unwanted “add-ons” onto vehicle purchases and discriminating against Black consumers. According to the joint complaint, eight of the company’s dealerships illegally tacked on junk fees for unwanted “add-on” products such as payment insurance and paint protection,

IL / IN / IA / KS / KY / MI / MN / MO / NE / ND / OH / SD / WI MIDWEST E DITION YEARS 41 AUTOBOD YNEWS.CO M Vol. 12 / Issue 4 / Janauary 2023
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$10 Million Returned to Consumers Harmed by Illinois Auto Group’s Junk Fees l CONTINUED ON PAGE 13 REGIONAL NEWS Columnist Mike Anderson: Are You Itemizing Vehicle Prep Steps Necessary Prior to ADAS Calibrations? 12 Columnist Abby Andrews: Future Technology Presents Liability Concerns for Collision Repairers 24 Columnist Stacey Phillips: OEConnection’s RepairLogic Platform Helps Shops Find Accurate OEM Information 22 Columnist John Yoswick: How to Get Entry-Level Collision Repair Techs Productive Quickly 14
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REGIONAL NEWS

AASP-MN Announces 21st Annual Race for Automotive Education in January 2023 36

Classic Collision Adds 3rd Location in MN 38

Crash Champions Acquires Collision Repair Center in Kansas City, MO 32

Ford Breaks Ground on $5.8B Blue Oval SK Battery Park in Kentucky 1

Four Rivers Career Center in Missouri to Use $400K Grant to Buy Technology Aimed at Bolstering Career Readiness 25

Nearly $10 Million Returned to

Consumers Harmed by Illinois Auto Group’s Junk Fees 1

Report: Illinois Small Businesses Lead the Way in Job Recovery 34

Rivian Inks Wind Energy Deal to Power Illinois Manufacturing 4

Sun Prairie, WI, Resident Receives Refurbished Car from NABC Recycled Rides Program 8

Tesla Adds Insurance to Minnesota, Raises Rates in Other States 27

Veteran’s Wife in Minnesota Receives NABC Recycled Ride 18

COLUMNISTS

Mike Anderson

Are You Itemizing Vehicle Prep Steps Necessary Prior to ADAS Calibrations? 12

Abby Andrews

Future Technology Presents Liability Concerns for Collision Repairers 24

Stacey Phillips

3M™ RepairStack™ Performance Solutions & Additional 3M Products Introduced to Optimize Shop Efficiency and Performance 16

AirPro Diagnostics Releases Updated Self-Guided Version of Auggie DTS at SEMA 2022 32

Award-Winning Female I-CAR Instructor Teaches How to Manage Quality Vehicle Repairs at SEMA 10

Compact WD-40 Precision Pen Debuted at SEMA Show 36

NATIONAL NEWS

Americans Will Pay 16% More for Car Insurance by the End of 2023 50

As Luxury Share Grows, New-Vehicle Prices Hit Record High in November 52

Autel Selects Qmerit for Home Chargers 47

Auto Care Alliance Offers HRA Plans to Members 47

Auto Dealers Report Low Market Outlook Due to Economy, High Interest Rates 48

CarMax Reaches Settlement Over Failure to Disclose Vehicle Recalls 44

CIECA Announces Vaultoniq as Member 18

CIECA Welcomes New Member E-Nikio Appraisals 8

Donate to the Jeff Silver Memorial Scholarship 30

Ford CEO Reveals 2 of 3 Ford Dealers Buy into All-Electric Strategy 55

Ford Cracked Fuel Injector Recall Issued After Fires 37

Gas Prices Plunge as Drivers Hit the Road for the Holiday 4

GM Says Its Dealers Have Fixed Over 11,000 Tesla EVs Since 2021 38

Going in Reverse: Dangerous Driving Behaviors Rise 46

Hertz to Pay $168M to Settle False Rental Car Theft Claims 54

Hunter Engineering Recognized by Vets Group 38

Kaeser Compressors, Inc. Raises $23,000 37

Like the Temperatures, Gas Prices Keep Falling as the Holidays Approach 34

Most Americans Would Still Prefer ICE Over EV, Regardless of Price 25

MotorTrend Shows on Amazon Freevee 44

NABC Drive Out Distraction Program Encourages Safe Driving This Holiday Season 51

NHTSA Announces Another Takata Air Bag Fatality, Urges Owners to Check for Recalls 44

November New-Car Sales Improve Year-Over-Year 40

Options for ASE Testing and Recertification 14

Ram Transmission Problems Cause 16 Fires, Recall 46

Register Now for 2023 WIN Conference 51

U.S. Senators Introduce Bill to Combat Catalytic Converter Theft Nationwide 1

Vale, GM Sign Long-Term Nickel Supply Agreement 40

Zendrive Joins CCC Network 34

OEConnection’s RepairLogic Platform

Helps Auto Body Shops Find Accurate OEM Information 22

Repairify Introduces New Products, Announces Repairify Institute Training Model 6

Cole Strandberg

Is Collision Repair the Gold Rush 2.0? 26

John Yoswick

Don’t Look for Short-Term End to Fast Growth in Average Collision Repair Invoices 30

How to Get Entry-Level Collision Repair Techs Productive Quickly 14

More Auto Body Shops Being Paid for Diagnostic Test Drives Before Repairs 20

Index of Advertisers

Audi Wholesale Parts Dealers 50

Auto Data Labels 11

Axalta Coating Systems 5

BendPak 9

BMW of Des Moines ������������������������������� 40

BMW Wholesale Parts Dealers ��������������� 52

Borton Volvo 8

Buerkle Honda 46

Byers Imports 31

Car-Part com 27

Carworx Distribution, Inc 19

Classic BMW MINI 36

Classic Chevrolet 41 Classifieds 54

Columbia Hyundai 25

Dynabrade, Inc 15

Ford Wholesale Parts Dealers 55

Gandrud Parts Center 23

GM Wholesale Parts Dealers 49

Hawkinson Kia 34

Honda-Acura Wholesale Parts Dealers 28-29

Hyundai Wholesale Parts Dealers ����������� 51

Island Clean Air���������������������������������������� 17

Jake Sweeney Chevrolet 30

Jordan Ford 38

KECO Body Repair Products 21

Kelly BMW 22

Ken Ganley Subaru North Olmsted 26

Kia of Lansing 14

Kia Wholesale Parts Dealers 53

LaFontaine Buick-GMC-Cadillac 24

Laurel Auto Group of Westmont 45

Luther Bloomington Acura-Subaru 35

Luther Brookdale Mazda �������������������������� 32

Luther Kia of Bloomington ����������������������� 10

Malco 12

Maplewood Toyota 20

Marking Pen Depot 13

Mazda Wholesale Parts Dealers 55

McGrath City Hyundai 38

Mercedes-Benz Wholesale Parts Dealers 55

MINI Wholesale Parts Dealers 52

MOPAR Wholesale Parts Dealers 42-43

Nissan/Infiniti Wholesale Parts Dealers 50

North American Bancard 56

Platinum Auto Trends 4

Rydell Chevrolet-Buick-GMC 33

SATA Dan-Am Company 2

Sears Imported Autos, Inc 18

Shaheen Chevrolet Parts Warehouse 37

Spanesi Americas�������������������������������������� 7

Subaru Wholesale Parts Dealers ������������� 47

The Sharpe Collection of Automobiles 39

Toyota Wholesale Parts Dealers 55

Varsity Ford 10

Volkswagen Wholesale Parts Dealers 48

Willis Volvo 46

autobodynews.com / JANUARY 2023 AUTOBODY NEWS 3 Contents
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Rivian Inks Wind Energy Deal To Power Illinois Manufacturing

Rivian and Apex Clean Energy on Dec. 5 announced the signing of a power purchase agreement for 50 megawatts of electricity from the renewable energy company’s proposed Goose Creek Wind farm in Piatt County, IL.

As Rivian’s first large-scale procurement, the agreement supports the company’s long-term vision of enabling high-impact renewable energy projects that reduce its carbon footprint while also benefiting customers, communities and the electrical grid.

This purchase, along with other renewable sourcing and on-site generation, will allow Rivian to power as much as 75% of its Normal, IL, plant operations with carbon-free energy on an hourly basis. The agreement will also contribute to the company’s commitment to power its Rivian Adventure Network and Waypoints charging with 100% renewable energy.

Importantly, this is Rivian’s first major renewable energy purchase and a critical investment in Illinois supporting homegrown jobs, economic development, tax revenues and clean energy in the

Prairie State.

“About a third of global greenhouse gas emissions come from transportation, with nearly another third from electricity generation. We have a tremendous

strategy combines climate impact, community and local ecological considerations. Working with The Nature Conservancy and its Site Renewables Right initiative, Rivian aims to support grid decarbonization

committed to strengthening local project areas, reducing carbon impact and restoring natural habitat all priorities for Rivian as it continues to build out its vision for the future.”

Within an hour’s drive of Rivian’s flagship Normal facility, Goose Creek Wind will put more carbonfree energy on the Central Illinois grid by tapping the region’s largest and most sustainable resource the wind.

opportunity at Rivian to help tackle emissions beyond the tailpipe to support decarbonization of manufacturing and charging of electric vehicles,” said Andrew Peterman, Rivian director of renewable energy. “Long-term success for us means helping to accelerate the transition to carbonfree energy across the entire economy, not just within Rivian’s own footprint.”

Rivian’s renewable energy

Plunge As Drivers Hit the Road

Drivers fueling up ahead of Thanksgiving will benefit from falling pump prices, as the national average for a gallon of gasoline dropped 11 cents over the previous week to $3.66 as of Nov. 21.

That’s the good news. Unfortunately, while lower, this week will see the highest Thanksgiving national average price since AAA started keeping records in 2000.

“The national average has fallen sharply since the June peak of nearly $5.02,” said Andrew Gross, AAA spokesperson. “But this Thanksgiving will be about 20 cents higher than a year ago, and a dollar more per gallon than a pre-pandemic 2019. However, we can be thankful that gas prices are moving in the right direction for now.”

According to data from the Energy Information Administration (EIA), gas demand fell from 9.01 million to 8.74 million b/d in the week before Nov.

21. Meanwhile, total domestic gasoline stocks rose by nearly 2.2 million bbl to 207.9 million bbl. Increasing supply and fewer drivers fueling up have pushed pump prices lower. As demand remains low and stocks grow, drivers will likely see pump prices dip through the Thanksgiving holiday.

The Nov. 21 national average of $3.66 is 16 cents less than a month ago and 26 cents more than a year ago.

The nation’s top 10 largest weekly decreases: Wisconsin (-23 cents), Michigan (-23 cents), Indiana (-19 cents), California (-18 cents), Ohio (-17 cents), Illinois (-16 cents), Delaware (-16 cents), Oregon (-16 cents), Washington (-13 cents) and Nevada (-13 cents).

The nation’s top 10 least expensive markets: Texas ($2.99), Georgia ($3.10), Mississippi ($3.12), Arkansas ($3.13), Louisiana ($3.17), Oklahoma ($3.18), Tennessee ($3.20), Alabama ($3.22), South Carolina ($3.22) and Missouri ($3.24).

Source: AAA

while also promoting renewable developments that enhance the land, protect critical biodiversity and improve local economies.

“With Goose Creek Wind, Rivian is modeling an innovative approach to clean energy procurement one that emphasizes maximum benefit to the local community, economy and environment,” said Mark Goodwin, president and CEO of Apex. “Apex continues to expand opportunities for corporations

Rivian promotes and relies on the growth of clean energy in Illinois, contributing to statewide efforts to increase the proportion of renewables from 11% compared to the national average of 20% and reduce marginal emissions of a carbon intensive grid.

Rivian has signed the Climate Pledge to reach net-zero carbon emissions by 2040, 10 years ahead of the Paris Agreement.

Apex is currently in the process of securing local permits and approvals for the 300 MW Goose Creek Project to be built and as a stipulation of the agreement. The project is slated to begin operations in 2024.

4 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Gas Prices
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As automotive technology advances, Repairify, a portfolio company of Kinderhook Industries, LLC, says no collision repairer needs to be left behind. As a result, the Repairify team is working to develop products and services that simplify automotive maintenance and repair for customers.

During the SEMA and AAPEX shows held in November in Las Vegas, NV, Repairify showcased its offerings, including the asTech Mini, the asTech Connect, the asTech Duo All-In-One diagnostic solution, and the asTech Rules Engine.

85% to 86% of the car parc because it uses J2534 protocol.”

J2534 is an interface standard designed by the Society of Automotive Engineers (SAE) and mandated by the U.S. Environmental Protection Agency (EPA).

Paired with the asTech mobile app, Hollingsworth said the asTech Mini delivers the functionality of thousands of OEM scan tools in a pocket-sized device.

“It’s like having hundreds of certified technicians and over 1,000 OEM tools right in the palm of your hand,” said Maurice Tuff, chief marketing officer and global head of tools for Repairify.

With the asTech Mini, users can access asTech’s patented remote OEM diagnostics and 400+ certified technicians, perform local OEMcompatible quick scans, read and clear codes, access all scan reports in the asTech mobile app and know that Repairify’s certified warranty backs the scans.

Hollingsworth said with the addition of the asTech Mini, the company now has “…a tool offering that we can truly call a good, better and best” referring to the asTech Mini, the asTech Connect and the asTech All-In-One, respectively.

sublet repair professionals, providing more control over how quickly the repairs can be completed, and automating invoicing and payment processes, according to a company press release.

The Repairify Institute

On Nov. 3, Repairify unveiled its plan to launch the Repairify Institute in 2023. The training institute is a comprehensive technical training program for automotive professionals to ensure service readiness.

The company said it is the automotive service industry’s first education organization to use a revolutionary course development process called adaptive learning, which focuses on understanding each individual’s knowledge level to adjust its teaching based on the learner’s strengths and opportunities for improvement. Through the institute, students can work at their own pace via several planned academies to achieve certifications or to expand their learning on several automotive topics.

known as Centers of Excellence, will serve as examination and certification hubs for students, featuring a variety of spaces to optimize learning, including classrooms, spaces to proctor oral examinations and a shop space where students will demonstrate their abilities to perform their learned skills. These facilities will be strategically located so students can easily travel to a regional location. The first Center of Excellence is slated to open near Dallas in early 2023.

Repairify Institute will create multiple certification opportunities with specific academies and curriculums based on various automotive service segments. Automotive Training Group, a technical training company recently acquired by Repairify, will add advanced mechanical training to the program. The Repairify Institute is partnering with many leading product and service providers across the mechanical and collision industries to further expand training and curriculum offerings in the future.

Patented Rules Engine

The company also announced the creation of a technical training program offered by the newly created Repairify Institute.

The Repairify booth at the SEMA Show was set up to demonstrate the lifecycle of a vehicle and showcase the company’s solutions during every step of the repair process. Repairify also demonstrated its ADAS identification and calibration capabilities at the ADAS Showcase section at the SEMA Show and exhibited at the AAPEX Show as part of Joe’s Garage.

asTech® Mini

The week before the SEMA Show, Repairify announced a new tool available for order in 2023, the asTech® Mini device. The compact, comprehensive Bluetoothenabled OBD2 scanning solution was built for OEM and OEMcompatible diagnostics. asTech, part of the Repairify family of companies, classifies OEM-compatible tools as those that the company has tested and found to perform equally as well as OEM tools.

“The asTech Mini is a lighter scan tool, which can remotely connect with an OE tool or one of our OEM-compatible tools,” said Cris Hollingsworth, president of Repairify Global Holdings, Inc. “It covers about

Repair OnDemand

Repairify also introduced a twosided sublet repair marketplace called Repair OnDemand, which connects sublet repair professionals with companies that have vehicles in need of repair, such as fleet owners, auction operators, dealerships and independent repair facilities.

Repair OnDemand combines the software, technology and people from AutoMobile Technologies (AMT), Mobile Tech RX, One Guard Inspections and BlueDriver, all part of the Repairify family, to bring clients together with its network of more than 16,000 sublet repair professionals.

“Our clients are companies that typically have hundreds or thousands of vehicles in need of inspection, cosmetic body work, minor mechanical repairs and maintenance, or key replacement,” said Tony Rimas, president of Repairify’s Repair OnDemand business. “Our marketplace already has become an invaluable resource in a relatively short amount of time.”

Repair OnDemand was created to help automotive fleet owners, auction operators, dealerships and independent repairers improve repair and reconditioning operations before, during and after the repair. It does this by speeding the time required to find

Additional program features will include a mentorship support program that tracks the progress of learned new skills and a Proof of Skill concept that ensures every student can demonstrate mastery of the skills they’ve learned to perform safe and proper repairs.

“The Repairify Institute is the embodiment of the Repairify mission to help automotive repair professionals in their quest to simplify complex repairs,” explained Hollingsworth. “Not only are we enabling this mission with our patented technology, but we also are building curriculum and courses that help technicians achieve and maintain certification in their desired areas of expertise.”

Hollingsworth said the institute will help repairers gain additional competencies, fine-tune their existing competencies and become certified.

The institute’s physical locations,

Another recent addition is asTech’s patented diagnostic Rules Engine, which identifies vehicles based on the VIN and recommends the best scan tool for the job.

“It is an AI technician helper,” said Hollingsworth. “That means every single vehicle gets scanned the exact same way.”

He said technicians are critical in the process but must work off of OEM diagnostic data and service information to perform safe and accurate repairs.

“This creates a consistent process every single time with customization and optionality as to which tool to use,” he added.

The enhanced asTech solution reduces key-to-key times, consolidates work in one place by enabling calibrations and OEM-level programming and helps keep shops in compliance with their direct repair insurance partners to achieve higher reimbursement rates, according to a company press release.

“Every single time, you now have a record of the documentation,” said Hollingsworth. “We’re trying to help shops cross the credibility gap between documenting the work they did and the carrier feeling comfortable paying for it. We’re getting great feedback from both sides.”

For more information, visit www. repairify.com.

6 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Repairify Introduces New Products, Announces Repairify Institute Training Model Exclusive SEMA Coverage
Repairify team members at SEMA 2022 included, left to right, Dan Young, Elizabeth Gonzales, Nikki Vanderschaaff, Phil Peace, Jonathan Chatagnier, Cris Hollingsworth and Michael Severyn
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Sun Prairie, WI, Resident Receives Refurbished Car from NABC Recycled Rides Program

A Sun Prairie, WI, business helped kick off the giving holiday spirit with the presentation or a refurbished vehicle to a deserving Sun Prairie recipient to provide them independence and the ability to work, thanks to Gerber Collision & Glass, Allstate and the National Auto Body Council (NABC) Recycled Rides® program.

selected the worthy recipient, Simmie “Bud” Bryant, a longtime employee who handles a variety of handyman services for the charity, including snow removal, indoor and outdoor cleaning to maintaining all aspects of the buildings.

A car of his own will not only allow Bryant opportunities to improve his life, but he will also be able to enjoy being a grandpa in person to his grandkids. This vehicle will allow him the opportunity to move to safe housing, which has not been an option since it would take him farther away from work where he would need his own transportation.

Gerber Collision, Bank of Sun Prairie and the National Auto Body Council to make all it possible to present him with a vehicle is incredible. He gives so

E-Nikio Appraisals, LLC has joined CIECA as a corporate member. Established in 2022, the company employs 19 appraisers and specializes in collision repair operations/repair plans, insurance claims, diminished value, fair market valuations and prepurchase inspections.

much and we are honored to be able to give back to him.”

The presentation was held at Sunshine Place in Sun Prairie. Allstate donated a 2021 Kia K5, which was refurbished by the repair professionals at Gerber Collision & Glass of Sun Prairie. The Bank of Sun Prairie was a sponsor of the event.

Local charity Sunshine Place

“Bud is someone we depend on to keep Sunshine Place looking good,” said Ann Maastricht , executive director of Sunshine Place. “He has always been willing to do whatever is asked of him, including working nights and weekends, particularly when it comes to snow removal. Being able to work with Allstate,

of soil, enough to fill 200 American football stadiums

NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 3,000 vehicles valued at some $42 million.

Source: NABC

Bill Vallely, founder and CEO of E-Nikio Appraisals, said the company is forward thinking and prides itself on providing services that address current industry challenges. Most staff are based in New York; however, there is representation across the U.S. All appraisers are licensed in states requiring a license to practice negotiation. Vallely and his partners, Steve Baktidy and Nelson Baez, have extensive collision repair and insurance experience that spans more than 50 years combined and hold certifications in Tesla, Mercedes Benz, Volkswagen, Land Rover and many other OEMs.

Vallely learned about CIECA through industry colleagues. “Being active in the industry, you tend to align with organizations that have the same objectives,” said Vallely, who is also the CEO of the Collision Training Institute and an I-CAR Platinum instructor.

Source: CIECA

SK Battery Park, but before they get there, they will be trained at a new institution, the Elizabethtown Community and Technical College.

Ford and SK are leaving no stone unturned in their joint venture, which has culminated in one of the largest battery production efforts in the U.S. “BlueOval SK Battery Park will be at the core of the electrification of the North American auto market,” said SK On President and CEO Jee Dong-seob. “We expect SK On and Ford’s leadership in the global electric vehicle market to be solidified through BlueOval SK.”

Construction is currently on schedule, with “significant progress” being made at the site. So far, Ford lists the following as what it has accomplished on the property: Moved 4.3 million cubic yards

Laid 283,000 tons of stone, equivalent to the weight of nearly 1,350 locomotives

Poured 66,000 cubic yards of concrete, enough to fill 356 backyard swimming pools

Installed 3,300 tons of rebar ties to reinforce the concrete, equivalent to the weight of more than 470 elephants

Installed 1,300 deep foundations, equal to the height of nearly 60 Empire State Buildings stacked end to end

Erected 7,900 tons of structural steel, equivalent to the weight of nearly 400 fire trucks

Ford is also developing another massive battery manufacturing plant in western Tennessee, which will also build future units of the F-150 Lightning. Ford broke ground on that plant, known as BlueOval City, a $5.6 billion project, in late September.

8 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
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Ford Breaks Ground
“Bud is someone we depend on to keep Sunshine Place looking good,”
MAASTRICHT DIRECTOR OF SUNSHINE PLACE
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Jaime Shewbridge, an instructor for the Inter-Industry Conference on Auto Collision Repair (I-CAR), recently shared her industry knowledge at the SEMA Show in Las Vegas, NV.

Over three days, she taught technicians how to best manage quality vehicle repairs as part of the I-CAR credited course, “Coordinate the Repair Process.”

Shewbridge is the first woman to receive three of I-CAR’s highest honors, including the Founder’s Ring Award in 2003, the Lon Baudoux Instructor of the Year Award in 2020 for the Northwest Region and the Johnny Dickerson Welding Award the following year.

“My fiancé, Patrick, and I share a blended family of eight daughters,” said Shewbridge. “To be able to tell them that I am the first female to win these awards was one of my proudest moments.”

Growing up in Maryland, Shewbridge always planned to work in the computer science field. Instead, she was hired to assist at a collision repair shop office while in high school and found she really enjoyed it. Over the next five years, she was promoted to customer service representative (CSR), parts person, assistant body shop manager and then general manager.

years. Meanwhile, she attended every training class she could.

She became an I-CAR instructor in 1999 and, after a break, returned in 2013. The following year, she was named I-CAR Maryland state chairman. Currently, Shewbridge teaches welding and hands-on skills development in Maryland, Washington, D.C., and Delaware.

“The best part of being an instructor for me is seeing that the student noticed something different

workforce, Shewbridge has been the SkillsUSA Baltimore regional chairperson for collision repair and automotive refinishing since 2014 and the Maryland SkillsUSA chairperson for collision repair since 2015.

Her daughter, Caite, is a two-time gold award recipient for Maryland in automotive refinishing and estimating and assists with the competition.

“Without industry involvement, the competition can’t work,” she noted. “Our state collision repair, automotive refinishing, and estimating competitions are completely selffunded.”

In addition to the core base of people who support SkillsUSA each year, Shewbridge is looking for additional donors to supply paint, tools, measuring systems, pulse welders, computer estimating systems and vehicles.

She is also demonstrating her support of vocational school training by working with the Maryland Department of Education chair this year to coordinate an in-service day for collision repair instructors.

can reach out to when it is time to place their students.

“We hope to bring in new technology and equipment, as well as what training is out there they can use in their daily classes.”

Shewbridge encourages the industry to find ways to get involved and help it grow.

techs could take something that was destroyed and put it back together,” said Shewbridge. “Even at 46, I am still amazed at the unbelievable talent body techs and painters have.”

Shewbridge realized there was a lot of information she didn’t know.

“I learned quickly that I better understand what I am looking at when I go into a shop, especially being female,” she recalled. “In the late ‘90s and early 2000s, there were not as many females in our industry.”

In 1998, she was recruited by an insurance company and worked as an appraiser, inspector, supervisor and team manager over the next 24

or learned something new,” said Shewbridge. “Helping technicians elevate the quality of repairs allows them to provide for their families and create a safer repair. Even if just one person survives a subsequent loss, it makes it all worth it.”

In addition to her role at I-CAR, Shewbridge is a post-secondary adjunct faculty instructor for Prince George’s Community College’s collision repair program in Maryland. She also serves as an equipment trainer for Capital Collision Equipment, a Chief distributor based out of that same state.

Early on, Shewbridge said she realized the importance of continuous learning. “It’s easy to think you have an adequate knowledge base and become satisfied,” said Shewbridge. “I learned that if I was comfortable, I wasn’t learning.”

having a very supportive family, as well as those she has met and encouraged her to keep learning and being uncomfortable.

“I am grateful to this industry, which has provided for my family and me for over 30 years now,” she said. “So many people have taken time to encourage me, challenge me, teach me, and in the beginning, take a chance that a young female could make it in this industry. This industry needs people, and if you want to be successful in any area of this industry, you can. Just stay uncomfortable.”

As a proponent for a skilled

The event allows educators to meet area recruiters for MSOs and local shop owners. It also helps increase the number of contacts they

“We have schools that need equipment, materials, vehicles to work on, industry people to help with mock interviews or just come in to talk to students and give new perspectives on the industry and explain what a great living working in this industry can provide,” she said. “It

10 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Award-Winning Female I-CAR Instructor Teaches How To Manage Quality Vehicle Repairs At SEMA Exclusive SEMA Coverage
Over three days at SEMA, Jaime Shewbridge taught
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Collision repair shops are obviously seeing more and more vehicles coming in for repairs that include advanced driver assistance systems (ADAS), and that means more and more vehicles are requiring calibrations of those systems as part of the repair.

There are a lot of great resources out there for determining which vehicles have systems that will need to be calibrated. I-CAR, for example, offers a free online search tool to find OEM calibration requirements, available at rts.i-car.com/oemcalibration-requirements-search. html.

Pull up the requirements for 2022 Acura MDX, for example, and the site shows what’s required related to the adaptive cruise control, collision warning, blind spot detection and about 10 other vehicle systems— there’s also a link at the top of the search results to a detailed page explaining how to use the requirements search.

But what I want to focus on here

are some of the things often required by the automaker to be done—by your shop or by whatever sublet vendor you are using—to the vehicle prior to the calibration. There’s also “stall prep” work that must be done, but I’m focusing here on steps related to the vehicle itself.

This vehicle prep required for accurate calibration may include such items as verifying the fuel level in the vehicle, and adding fuel if necessary to meet the necessary conditions. It can include verifying the tire pressure, and the levels of other vehicle fluids in the vehicle like coolant or oil or washer fluid. It can include verifying the trunk doesn’t have any excess contents adding weight or “ballast.” You may have to check the back of the front seats to make sure there’s nothing in the seat pocket. An alignment is often a required step prior to calibrations.

When I’m working with estimators or repair planners, I always teach them to itemize these operations aside from the calibration line entry itself. Why?

12 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Are You Itemizing Vehicle Prep Steps Necessary Prior to ADAS Calibrations?
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Because there are variables. You may have two similar vehicles each requiring the same calibration, but one has the full fuel tank needed, while the other has only a half tank of gas, requiring an added step.

Speaking of which, let me tell you about an experience one collision repairer recently told me about when

I think it’s going to become more important that shops ask vehicle owners to bring their vehicle in full of fuel whenever possible, explaining it’s necessary for proper calibrations. This is something that always should have been done in order to do a proper suspension alignment, but now it’s just as critical—or perhaps more so— for calibrations. And if you do need to add fuel, contact the customer ahead of time to avoid the type of situation this shop found itself in.

Award-Winning

will take all of us to help train and keep the next generation of technicians— the future of our industry.”

With the great need for technicians, Shewbridge said most people don’t consider women when they think of the collision repair process.

Junk Fees

costing consumers hundreds or even thousands of dollars. The complaint also alleged Napleton discriminated against Black consumers by charging them more for add-ons and financing.

I was visiting the shop. The shop had added fuel to a vehicle because the calibration required a full tank of gas, but the vehicle had come into the shop with only a half-full tank.

After the customer picked up the repaired vehicle, he asked if the shop had added gas. The shop explained it was required as part of the calibration. The customer then asked what type was added. It turned out it wasn’t the type the customer used. He made such a stink about it, the shop had to drain the fuel and replace the fuel filters just to make the customer happy.

So the bottom line is estimates and invoices that include a calibration should also include lines items for whatever vehicle prep was required. Make sure you’re researching those requirements in the OEM information, and then make sure it’s being done properly. Don’t try to cheat it.

There are some OEMs that may say if you have a half-tank of gas, you can offset it by adding a set amount of weight added to the vehicle. But if the OEM doesn’t call that out, you need to make sure it has a full tank of gas.

The other thing: If you sublet your calibrations, you want to make sure these vehicle prep steps are done, either by your shop, if practical, before it goes to the sublet vendor, or by that sublet vendor. You may want to ask that sublet vendor to provide photos or other documentation that the necessary vehicle prep was done.

“We need to change that,” she said. “If we truly want to bring new people into this industry, we need to start calling elementary and middle schools and asking them to participate in career days.”

She recommends shops get the word out early and often that the automotive industry is a great career.

“We need to encourage them earlier to look at a skilled trade as a viable career path where they can thrive and create a life they are proud of,” she added.

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The FTC’s interactive dashboards for refund data provide a state-bystate breakdown of refunds in FTC cases. In 2021, FTC actions led to more than $472 million in refunds to consumers across the country, but these refunds were the result of cases resolved before the U.S. Supreme Court ruled in 2021 that the FTC lacks authority under Section 13(b) to seek monetary relief in federal court. Because of that ruling, the FTC no longer has its strongest tool to return money to consumers, and it will become harder to provide refunds to consumers harmed by deceptive and unfair conduct. The FTC has urged Congress to restore its ability to get money back for consumers.

The FTC works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer. ftc.gov, or report fraud, scams and bad business practices at ReportFraud.ftc.gov.

autobodynews.com / JANUARY 2023 AUTOBODY NEWS 13
“So when I’m working with estimators or repair planners, I always teach them to itemize these operations aside from the calibration line entry itself.”
l CONTINUED FROM COVER
l CONTINUED FROM PAGE 10

At the Collision Industry Conference (CIC) in Las Vegas in November, Jim Guthrie of the Car Crafters chain of collision shops in New Mexico discussed the success his company was having with quickly getting entrylevel apprentices basic skills they put to use working within the shop while their training continues.

“It’s a way they can earn while they learn,” Guthrie said.

learners,” Goroff said during the discussion at CIC. “They’re not video learners. They want to do, as well as either read or watch something, before they’ve learned it.

“The mentorship and apprenticeship guides will truly help somebody learn something and put hands to wrench, put hands to metal, and actually do something,” Goroff continued. “Which builds the skill of the learner, builds their confidence in what they’re doing, and makes them feel a sense of pride, which goes directly to a shop’s ability to retain that individual in the career, or a school’s ability to ensure that once a student shows up in a shop, their transition from learning to working is much, much smoother.”

When Guthrie, current chairman of I-CAR’s board of directors, was asked how a shop could get started training entry-level technicians as he’s doing in his business, he suggested calling Goroff.

many people have to do because of whatever education they might be getting inside their school.”

While schools are often required as part of accreditation to provide students with at least an introduction to a wide variety of skills, they also need to understand “when you come in on day one to work in my company, here are the things that we would love

“We also hear time and time again that [shops] need to go talk with the administration, the deans, the principals, so that they know there’s this industry out there that’s waiting for their students [and] there’s great earning potential there,” Eckenrode said.

CREF represented the industry at the American School Counselor Conference this past summer, he said, and counselors told him, “We get it. We need to embrace technical education more.” So CREF is working to create resources those counselors can use “when they’re talking with a student, so they can showcase this as a viable option for them, and what the different opportunities are.”

Preview of Next CIC

CIC will next meet—as its newlyadopted slogan states, to “Connect. Influence. Collaborate.”—on Jan. 19 in Palm Springs, CA.

Guthrie’s company is using the Entry-Level Technician Learning and Development Guide developed by I-CAR. Dara Goroff of I-CAR said the curriculum was created after talking to the industry about what would help someone entering the trade “feel immediately of value in your shop.”

It focuses on five core skills: assembly, disassembly, small dent repair, plastic repair and prep for refinishing.

Goroff said it is the start of a broader I-CAR initiative to provide a solution for those looking to attract, mentor, train and retain technicians, and will include both mentorship and apprenticeship guides that take into account how younger potential technicians want to learn.

“A lot of the folks who thrive in collision repair really are not book

“Her program is awesome,” Guthrie said. “It will teach you a very simple theoretical skill, and then you can go right into the shop and become productive.”

School Involvement Key for Collision Repair Industry

Another panelist, Brandon Eckenrode of the Collision Repair Education Foundation (CREF), said just as I-CAR’s program to help shops get entry-level employees quickly trained in five skills, the value of that approach needs to reach the high school and college collision repair training programs as well.

CREF can help shops get on the advisory board of a local school, Eckenrode said, to talk to instructors and students so they know “what skillsets they’re looking for as an employer that will make [students] more productive as an entry-level employee, as opposed to the detrain and retrain that we’ve heard

for you to be able to do, as opposed to that mile-wide, inch-deep learning philosophy,” Eckenrode said.

He said CREF is also helping connect schools with shops willing to save their parts so students have current model parts to practice on.

Among the speakers will be an attorney discussing what shops need to understand about protecting customers’ personal data. It’s a topic that’s been a focus of a CIC committee for some time as it digs into the issue of a shop’s estimate data somehow resulting in an entry on vehicle history reports.

The National Institute for Automotive Service Excellence (ASE) now offers three ways for service professionals to take certification or recertification tests.

ASE in-person testing is available throughout the year and is conducted days, nights and weekends at more than 450 secured, proctored Prometric test centers.

Those with unexpired automobile certifications (A1-A9) can use the ASE renewal app for recertification, making it easy to extend the expiration date of their ASE

certifications without having to take time off or go to a secure test center for testing.

ASE now offers ProProctor remote testing as an online recertification solution for all ASE recertifications tests, excluding L1 and L2 tests.

To learn more, visit ASE.com, click on register and sign in. Once logged in, users can next click on “orders” and then “store” where they can find the tests they want to take, add those tests to the cart, check out and registration is complete.

Source: ASE

14 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
SEMA Coverage
How To Get Entry-Level Collision Repair Techs Productive Quickly Exclusive
Dara Goroff of I-CAR said its curriculum for entry-level technicians focusses on five key skills Brandon Eckenrode of CREF said shops need to communicate to schools what entry-level skills they want in students coming out of the program
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From teardown to refinishing, 3M has touchpoints across the collision repair process. During the 2022 SEMA Show in Las Vegas, NV, the company took attendees on a journey through its products and solutions, created to help enable a profitable body shop of the future.

Part of this journey included the launch of 3M™ RepairStack™ Performance Solutions in the U.S. following 18 months of beta testing. The new connected platform was created to assist shop owners and collision repair general managers with information relating to shop performance, invoicing and material usage.

“Combining hardware and software to optimize shop efficiency and performance for shop owners and collision repair general managers, 3M™ RepairStack™ Performance Solutions is 3M’s digital backbone for the automotive aftermarket,” according to a 3M press release.

Many collision repair shops are facing challenges, including a reduction in gross profits due to labor shortages, increased complexity of repairs, decreasing parts discounts and increased replacement work. As a result, 3M explained, shop owners must grapple with a lack of visibility and a clear understanding of shop performance while experiencing increasingly tight margins in a complex repair environment.

By introducing 3M™ RepairStack™ Performance Solutions, 3M said it is pioneering an era of connected body shops to help businesses unlock opportunities for profit, efficiency and growth.

“Operational efficiency inside a shop is critical for long-term business and customer success,” said Dave Gunderson, president, 3M Automotive Aftermarket Division. “That operational efficiency is what we’re striving to simplify with 3M™ RepairStack™ Performance Solutions. In an increasingly digital landscape, this customized, connected solution provides the fast clarity and transparency needed to drive optimal value from materials and labor.”

3M™ RepairStack™ Performance Solutions features hardware that houses all 3M allied materials. As an integrated and automated platform, 3M shared its three key benefits: an inventory management system ensuring materials needed for

safe and reliable repairs are always available, a streamlined blueprinting and billing process, and real-time insight into business performance.

The software tracks material usage by technician, shop, repair order and more, while enabling automated re-ordering of products based on inventory stock levels and direct connection to preferred distributors. 3M explained shop owners can easily manage their materials by maintaining a consistent inventory while at the same time reducing waste and emergency orders.

“Better managed inventories empower technician training and increased technician performance and satisfaction, allowing hands-on work to remain with the vehicles,” according to a 3M press release.

“Since the beginning of this project, it has been fun working hand-in-hand with the customer to build this tool,” said 3M Automotive Aftermarket Specialist  Ryan Fuller during the SEMA Show. “The feedback we’ve received is overwhelming, including runner up in the SEMA Best New Product Awards for collision repair and refinish product.”

and polishes from 3M was created to help technicians achieve sleek, consistent results.

Typically associated with detailing, but redesigned for the collision repair industry, 3M™ Perfect-It™ Random Orbital Polishing System can help eliminate swirl marks and other defects common with traditional rotary tools.

“It’s very easy to use… and is safe for a body shop,” said Rafael LedesmaRivera, 3M senior application expertregional and country AAD, during the SEMA Show. “Everything stays cleaner and swirl marks are a thing of the past.”

“Every technician wants their final finish to look as if the car had never been touched,” said Jenny Thill, global marketing manager at 3M. “The polishing tool is easy to use along with our liquids and pads that make up the complete system.”

3M™ Performance Spray Gun

As paint prices increase and body shops experience continued cost pressure, 3M said material savings are key to successful business operations. Introduced in 2021, the lightweight 3M™ Performance Spray Gun allows painters to mix less paint and receive the same or better coverage. 3M said the spray gun’s transfer efficiency offers up to 26% less material waste than leading metal spray guns.

3M engineers spent more than 10 years designing and developing the product to ensure it would deliver superior performance in paint application and process improvements. It was created to deliver top-of-the-line performance with revolutionary technology for faster cleanup, changeovers and cycle times.

market, according to a company press release. Since then, 3M said customers reported this transfer efficiency presented paint material cost savings with less paint needed to produce the same or better results.

“Paint is nearly as expensive as the painter, and shop owners can’t afford to waste either one,” said Corey Munn, global paint applications segment director, 3M Automotive Aftermarket Division. “We’ve worked with leading shops, paint companies and painters around the world to develop a solution that achieves comparable or better results with less material.”

3M Cubitron II net abrasives

The 3M booth also showcased 3M Cubitron II net abrasives, introduced in 2021. The net abrasives use 3M’s patented precision-shaped grain material, which the company said allows the solution to cut twice as fast and last twice as long as other net abrasives families. In addition,

He noted participating shops have shared the software is helping them keep a good hold on their materials, reducing the on-hand quantity and ensuring they always have the products needed to keep production going.

3M™ Perfect-It™ Random Orbital Polishing System

3M announced it is launching a new paint refinishing system in early 2023, the 3M™ Perfect-It™ Random Orbital Polishing System, which won a SEMA Global Media Award at this year’s show. 3M said the goal of any paint finishing process is to restore panels to their proper state—free of defects with a high-quality finish. The professional grade set of tools, pads

“The first thing that anyone notices is how lightweight it is,” said Brady Haislet, a 3M application engineer who was a product developer for the gun. “Having a lightweight spray gun is the key to usability, ease of maintenance, clean up and cycle time; with replaceable itemizing heads, it delivers on productivity.”

Before it launched, the 3M™ Performance Spray Gun was tested for transfer efficiency compared to other leading HVLP traditional metal spray guns at the Fraunhofer Institute of Technology, a third-party research organization. The 3M™ Performance Spray Gun was measured to have the highest transfer efficiency of 78% versus any other leading HVLP traditional metal spray gun in the

capture more than 97% of the dust created when sanding in a shop

it has been shown to capture more than 97% of the dust created when sanding in a shop.

“In the United States, we’re really starting to see a shift in people wanting a cleaner environment,” said David Woods, 3M global business development manager for commercial vehicle and marine, during SEMA. “With the technician shortage, it’s hard to keep good employees, and if you are putting them in a dirty environment, they typically find somewhere cleaner to go.”

For more information, visit www.3m.com/3M/en_US/collisionrepair-us.

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Brady Haislet, a 3M application engineer, said the lightweight 3M™ Performance Spray Gun’s transfer efficiency offers up to 26% less material waste than leading metal spray guns
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Veteran’s Wife in Minnesota Receives NABC Recycled Ride

On Nov. 14, the spouse of a Minnesota veteran received a vehicle to provide their family independence and the ability to work and take care of themselves, thanks to the National Auto Body Council (NABC) Recycled Rides® program, along with car donor Allstate and collision repair partner Jerry’s ABRA Auto Body & Glass.

The presentation was held at Jerry’s ABRA Auto Body & Glass in Mankato, MN. The recipients were selected by the Minnesota Valley Action Council (MVAC).

“We are excited about participating in NABC Recycled Rides,” said Dan Jones, representative of MVAC. “Jerry’s ABRA has a long history of helping those in need in our community and we’re proud to be a part of this program. We worked diligently to find the perfect match for this donation.”

The recipient, Katie Kunkel, received a 2017 Nissan Maxima to help her and her husband, Mike Petrick, a U.S. Army National Guard veteran, take care of their young children, get to daycare

and allow Katie to complete her education and seek employment.

This is the ninth year Jerry’s ABRA Auto Body & Glass has given a refurbished vehicle to a deserving member of Southern Minnesota. The initiative is a collaborative effort with the NABC Recycled Rides program.

Geralynn Kottschade , CFO and co-owner of Jerry’s ABRA Auto Body & Glass. “We are honored to give back to a community that has been incredibly supportive of us for more than five decades. Providing the family of a veteran who served to protect us and gave so much of themselves a hand up with reliable transportation means the world to our team here at Jerry’s ABRA Auto Body & Glass.”

CIECA Announces Vaultoniq As Member

Dealers (ATD), the American Trucking Associations (ATA), the Automotive Recyclers Association (ARA), the National Automatic Merchandising Association (NAMA), the National Independent Automobile Dealers Association (NIADA), the National Insurance Crime Bureau (NICB), the National RV Dealers Association (RVDA), the National Salvage Vehicle Reporting Program (NSVRP), NTEA — The Association for the Work Truck Industry, the American Car Rental Association (ACRA), the NAFA Fleet Management Association, the National Consumers League (NCL), the National Private Truck Council and the Truck Renting and Leasing Association (TRALA).

U.S. Rep. Jim Baird, R-IN, leads companion legislation in the House of Representatives.

“Dealers across Minnesota thank

Pictured,

are Brian Peterson, Geralynn Kottschade,

“We have been a part of NABC for many years with the goal of improving the image of automotive repairers,” said

Sen. Klobuchar for introducing this common-sense bill to curb catalytic converter theft. The current patchwork of state laws combined with the lack of traceability has made catalytic converter theft an easy way for criminals to make quick cash,” said Scott Lambert, president of the Minnesota Automobile Dealers Association. “The PART Act will give teeth to law enforcement by making converters traceable to their original vehicle and by establishing federal criminal penalties for this theft.”

As a former prosecutor, Klobuchar has led efforts to prevent automobilerelated crimes. In April, she convened a roundtable with Minnesota law enforcement leaders to discuss ways to crack down on violent carjacking crimes. The same month, she urged the U.S. Department of Justice  to prioritize resources for state and local law enforcement to address increases in carjackings.

Source: Office of U.S. Sen. Amy Klobuchar

NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 3,000 vehicles valued at some $42 million.

Additional partners in the NABC Recycled Rides presentation included 1-800 Charity Cars and Affordable Towing, which towed the vehicle to Mankato.

Source: NABC

Vaultoniq has joined CIECA as a corporate member. Founded by Tom Zoebelein in 2022, Vaultoniq is a sister company to Stratosphere Studio and Capture the Keys. “Vaultoniq software is a management system built for body shops to help eliminate the communication breakdown between customers, insurers and employees,” explained Zoebelein. “It centralizes all customer and insurer communication and stores data, estimates, photos, invoices, OEM procedures, measurements, scans, authorizations and more in each customer record.” The software also uses an AI-powered Siri or Google function. Zoebelein has been involved with additional businesses in the collision repair industry since 2011, including the National Auto Body Council (NABC). He worked with CIECA over a decade ago and helped coordinate videos for the organization. With the launch of his new company, Zoebelein said he is looking forward to being involved with CIECA and having Vaultoniq software communicate with the industry management systems.

18 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
left to right, recipient Katie Kunkel holding daughter Freyja, husband Mike Petrick holding son Kenny, Laura Kottschade and Jerry Kottschade.
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While test driving a vehicle after repairs has long been a fairly standard practice—even before some ADAS calibrations made it a requirement—more auto body shops are billing for the time spent on this procedure, and the number of shops recognizing the need to perform a diagnostic test drive some vehicle prior to repairs is also growing.

Those were among the findings of one of the quarterly “Who Pays for What?” surveys in 2022.

“We have found some OEMs require you to perform a test drive at certain speeds and braking

bill for a pre-repair “test drive for diagnostics” procedure currently are paid “always” or “most of the time,” but that’s twice the percentage that said that was true back in 2017.

Despite that change, and the increasing importance of performing a test drive prior to repairs, about seven in 10 shops acknowledge they have never billed for the procedure, a percentage virtually unchanged from five years ago.

Administrative Fees for Total Losses More Common

The survey also found the percentage of shops regularly being paid an administrative fee to process total losses has increased for seven consecutive years.

regarding the best way to be reimbursed for these expenses from a legal perspective,” Anderson said.

He also said insurers are increasingly determining if a vehicle

other items. That’s up from 41% in 2017.

More than half of those shops (53%) said the invoicing system adds at least $50 of additional

A “Who Pays” survey found almost one in four shops said they are paid “always” or “most of the time” by the largest national

conditions as part of the inspection and testing of the seat belt,” said industry trainer and consultant Mike Anderson of Collision Advice, who conducts the “Who Pays” surveys in conjunction with CRASH Network. “This should be done in advance of the repair plan to avoid supplements and delays.”

When the “Who Pays” surveys began in 2015, only 46% of shops said they were paid “always” or “most of the time” when they billed insurers a fee for processing total loss vehicles, and nearly one in three (30%) never negotiated with an insurer for such a fee. In 2022, the survey found 74% of shops that negotiate for administrative fees say they are regularly reimbursed by the eight largest insurers. Only 14% have still never attempted to charge a fee.

is likely a total loss at the first notice of loss, meaning fewer of those vehicles even make it into a shop.

Use of Invoicing Systems

The “Who Pays” surveys ask about more than just labor procedures. Nearly two-thirds of shops (64%), for example, now say they use some kind of invoicing system to track and bill for shop supplies used during a repair, such as clips and fasteners, seam-sealer, weld-through primer or

revenue per repair, and more than one in five (22%) said their invoice is boosted by $100 or more thanks to accurately tracking and billing for shop supplies with these systems.

Shops can visit www. crashnetwork.com/whopays to take the January “Who Pays” survey, which focuses on not-included refinish labor procedures, or to download results of prior surveys.

A pre-repair test drive, Anderson said, can help a shop spot potential suspension or drivability problems; check the function of autonomous braking, adaptive cruise control and other ADAS features; and ensure set conditions on the vehicle are met prior to pre-repair scanning.

A “Who Pays” survey this past year found about 34% of shops said they are paid “always” or “most of the time” by the eight largest insurers when they bill for the post-repair test drive, a “not-included” labor operation. That’s nearly tripled since 2015, when just 13% of shops said they were regularly paid for the labor time the test drive required.

Fewer shops—just 22%—who

“The steps involved in processing a total loss are more involved today than they were years ago,” Anderson said. “We now see shops itemizing for procedures such as a thorough teardown, OEM research time, parts cart storage and other expenses that are absolutely something shops should be reimbursed for, unless they negotiated to perform these services for free as part of a direct repair agreement.”

The difference in reimbursement frequency among the top eight insurers is not major. State Farm, now the most frequent payer, is regularly reimbursing 78% of the shops that negotiate to be paid for it—up from 37% in 2015—while 69% of shops say GEICO, the least likely to pay the administrative fee, does so, up from just 49% in 2015.

“Charging an ‘administrative fee’ is not legal in every state, so there has been some industry discussion

20 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Auto Body Shops
Paid
Diagnostic
Drives
Repairs
More
Being
For
Test
Before
insurers when they bill for the labor to perform a prerepair “test drive for diagnostics.” More than three in five shops use some type of invoicing system for such items as clips and fasteners, and more than half of those said it accounts for an average of $50 or more in revenue per repair “The steps involved in processing a total loss are more involved today than they were years ago.”
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About four years ago, a small group at OEConnection (OEC) set out to drive safety, trust and transparency into vehicle repair. The result was the creation of RepairLogic, a repair planning platform designed to help shops find accurate OEM repair information quickly and efficiently.

During a Guild 21 webinar this past fall, Tanya Sweetland, general manager, Advanced Repair Technologies Division, and Pat Blech, director of Collision Products, shared information about RepairLogic, a new product that formally launched in September.

Blech also discussed OEC’s new product for the collision repair industry at the 2022 SEMA Show in Las Vegas, NV.

Q:Why was RepairLogic created for the collision industry?

Sweetland: While vehicles are becoming more complex, there is more to do and fewer skilled professionals to do it. According to information from Collision Advice, only 20% of vehicles are fixed according to the OEM repair procedures. Our goal was to create a tool to raise that percentage to 80% or more.

We recognized that you can’t tell a shop how to do business. At the same time, we want customers to get what they expect and know their car is safe to drive.

Over many months, we collected feedback from the industry on documenting and defining key terms in collision repair. We talk about a “documented safe and proper repair” but what do those words mean? We set out to define them.

A documented safe and proper repair is the action of fixing a vehicle in accordance with the OEM’s expected standard of safety and delivered at the repairer’s stated level of quality, scope, timeline, expense and efficiency.

We gathered information to find the common reasons why OEM research isn’t performed and why it takes so long. Technicians shared various reasons, such as they already know the repair, it’s a hassle to learn the sites, they can’t remember the password, someone else locked the record or they are too busy to spend the time they don’t get paid for.

We also found that repair teams were missing about 40% of one-timeuse parts because of the enormous

number of notations in millions of pages. Many types of repairs are skipped because of the perception that it will take a long time to check the OEM procedures. It’s like searching for a needle in a haystack. If shops must go to two or three resources for a typical repair, they spend a lot of time just navigating different tools.

We stepped back to determine how we could make a difference and remove some obstacles to help shops better access and utilize OEM repair information. The team wanted to design a digital planning tool with direct data from the OEM that had open collaboration and could be documented and shared.

Q:What type of field studies were conducted?

Blech: We tested and measured key components from our initial hypothesis to help better understand and validate the problems we were solving.

We utilized information from three OEMs, covered 50+ locations and worked with more than 100 participating users and on hundreds of different types of repairs.

To ensure we understood the needs and challenges of all shop segments, we reached out to MSOs, certified repair networks, independent facilities and franchise and dealer body shops.

Q:What were the learnings?

Blech: We saw first-hand the time and complexity it takes to research vehicle repairs. For facilities with mature repair planning processes in place, it could take well over an hour to pull information and create an initial blueprint. On average, there were over 30 different documents or procedures being pulled. If you assume three to four pages per procedure, that equals more than 100 pages of information that need to be researched.

Once you pull information, whether it’s 20 pages or 100, what do you do with it? How do you share documentation with those who need it? We found shops were printing it and putting it on the windshield for the technician; some were emailing it to insurance carriers. Sometimes, the information wasn’t shared at all with the key stakeholder simply due to the large file sizes. It seemed like there were a lot of challenges that came with sharing information, and we saw an opportunity to help.

Two themes that came out of this

were efficiency and collaboration. We wanted to remove barriers and create transparency for all the individuals who need the information to support the repair. Being more transparent and making collaboration more accessible was something that resonated with the people we spoke to.

Q: What sets RepairLogic apart from other products?

Blech: RepairLogic is a digital repair planning platform that hits three areas: discovering critical information directly from the OEM, sharing it and maintaining a digital record of the information used on the repair. We don’t compare ourselves to other products, but rather speak with the industry to identify and solve unmet needs.

A good example is when our user base indicated the importance and challenge of maintaining a copy of the exact version of a procedure as it existed when the repair was completed. This was necessary so that the shop manager can prove that the repair was completed based on the information that was available at the time of repair. This feedback directly informed the implementation of our versioning feature in RepairLogic.

Overall, the response has been very favorable. Repairers are excited about the attention directed at their shops’ needs. Everything in the product is directly based on a shop problem.

Many of the individuals on our team are former body shop owners, managers and estimators who understand how a shop utilizes information. They help us categorize and digitize it, so we can bring it to life in the software. They also

22 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
OEConnection’s RepairLogic Platform Helps Auto Body Shops Find Accurate OEM Information Exclusive SEMA Coverage
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OEC team members at the 2022 SEMA Show included, left to right, Pat Blech, Tom Durkin, Austin Bell, Laney Holloway and Farzam Afshar
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As technology increases in new vehicles, so too does the risk of liability for collision repairers, but steps can be taken to mitigate it.

That was the focal point of the Society of Collision Repair Specialists’ Repairer Driven Education session, “Protecting Your Business Against Liability Exposure from Evolving Technology,” held Nov. 1 during the 2022 SEMA Show.

The panel featured David Willett, co-founder and chief underwriting officer for SPARK Underwriters; Shaughn Kennedy, co-founder and senior underwriter for SPARK; Tracy Lewis, owner of Richie’s Collision Center in Mississippi and president of the Gulf States Collision Association; and Jason Mundy, owner of Mundy’s Collision Center near Atlanta, GA.

When Mundy and Lewis were asked separately about their top concerns as a body shop owner, Kennedy said, there was a lot of overlap.

ADAS and Personal Identifying Information

One of their shared concerns was possibly being liable for damages caused by a sublet vendor performing recalibration services on a car’s ADAS features—either because the work was not done properly, causing an accident, or a customer’s personal identifying information was extracted from the infotainment center.

“You always have to worry about did they do it right, and how do I know,” Kennedy said.

“We put a lot of trust in people we send cars out to,” he continued. “From an insurer standpoint: qualify vendors to mitigate your risk, make sure they have liability insurance. If they don’t, it’s gonna go on your insurance. Your liability insurance is the primary when you sublet work out.”

Willett said it is becoming important for repairers to track vendors’ insurance.

“It can run out, or their policy can change, be lowered or altered,” he said.

Lewis said it is worth considering doing ADAS recalibrations in house, which can both protect a shop from liability issues if a third party does not perform them correctly and save money.

Mundy pointed out collision repairers need to at least know recalibration procedures, even if they’re not performing them themselves, so they can ask third

parties if they did it correctly.

Kennedy said it is important for shops to delete customers’ information from total loss vehicles.

“Total losses used to mean just getting remotes and paperwork out of the car,” Lewis said. “Now, when you plug your phone in, it downloads

is too great for what you’re going to earn on that job.”

Kennedy said he has handled claims in which an EV caught fire on a rollback because it wasn’t in a safe state.

Willett added batteries are still one of the top three sources of fire in the collision repair industry--even with an ICE car.

Throughput

Lewis said her shop has enjoyed a lot of success with its mobile estimating service, which it only advertises on the side of the van it brings to customers.

“Elderly customers don’t know how to download their insurance company app [to submit claim pictures], so we go to them,” she said. “If nothing else, we capture that customer.”

Mundy said AI-generated estimates still have their issues.

Mundy also said delays for more advanced parts, like anything with a microchip or sensor, are making the cycle time take longer.

Lewis said one of her customers had a 2022 Toyota Camry that needed a rear distance sensor. The part was delayed indefinitely; the customer ran out of rental coverage and wound up trading the car as-is to a local dealer. It was another six months before the sensor arrived.

Willett said an insurance company not paying a shop to do something doesn’t mean it doesn’t have to do it to properly repair a vehicle.

“The agent insuring you should be able to help you explain that to the bill payer,” Willett said. “You’re on the hook for your work.”

Mundy said as a non-DRP shop owner, he explains to the customer up front when they might have to pay a little more to cover something the insurance company refuses to pay for.

information and stores it—even in rental cars.”

Lewis said repairers can charge an hour of labor to delete data, following the vehicle’s particular OEM procedure.

OEM Procedures

The panel recommended shops research every repair, as OEM procedures can change so frequently—even within the same model year.

Mundy suggested time-stamping pre-repair research, in case the procedure changes after the repair is complete.

“I’ve had to examine shops’ work on a lot of claims,” Kennedy said. “ALLDATA can change from five years ago. There’s no way to prove [it was the correct procedure when you performed it] if you don’t document every repair procedure.”

EVs

Mundy said every manufacturer his shop repairs has an EV platform. To get ready, he said his shop is set up to mitigate fire in the paint booth and office, and will purchase new equipment as needed.

“I don’t really have any fears,” he said. “We will just have to be prepared for them as they come our direction.”

Willett said EV manufacturers have individualized requirements on how to move their vehicles.

“I recommend if you have towing [services], stay away from EVs at this point, unless you’ve really got it nailed,” Willett said. “The exposure

“A $1,200 estimate through the app can turn into a $12,000 job [after teardown],” Mundy said. “That makes it take longer. You gotta reconcile it, wait on that to come back.”

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24 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Future Technology Presents Liability Concerns For Collision Repairers Exclusive SEMA Coverage
Pictured, left to right, are David Willett of SPARK Underwriters, Jason Mundy of Mundy’s Collision Center in Georgia, Tracy Lewis of Richie’s Collision Center in Mississippi and president of the Gulf States Collision Association, and Shaughn Kennedy of SPARK Underwriters
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Four Rivers Career Center in Missouri To Use $400K Grant To Buy Technology Aimed At Bolstering Career Readiness

The Four Rivers Career Center in Washington, MO, and 50 other work skills centers across Missouri are the recipients of grant dollars to the tune of hundreds of thousands each.

FRCC is getting $400,000, the max provided by the Missouri’s Area Career Center Opportunity (MACCO) Grant, which is funded through the federal American Rescue Plan Act. MACCO grants are aimed at modernizing the equipment and infrastructure of Missouri’s technical schools.

Four Rivers has a plan to buy new equipment for seven programs engineering, welding, collision repair, machine tool, building trades, automotive technology and nursing.

FRCC Director Philip King said the school’s biggest grant expenditures will be made on recommendations from companies in the community. Two times a year, FRCC educators meet with industry advisory boards and discuss their curriculum.

“It’s just helpful because then they’re telling us what they see and

we also get to ask ‘Is there certain things you would like our kids to be training to do?’” King said.

The Project Lead The Way engineering program will be getting two new types of robotic arms.

Learning on new MG400 Dobot robotic arms will contribute to the current curriculum, programming pick-and-place procedures and rotation “roll” angles, but UR5E Cobot arms will be a different addition to the engineering lab.

“Multiple local companies” such as Melton Machine & Control and Computech use the UR5E as standard technology, according to King.

“We’re going to start with our machine tool and our engineering students because they have that same classroom, but we also will buy an accessory that has a laser welding attachment,” King said. “Then, in the future, we can also get our welding program where the students are working interchangeably with a robot and what they’re doing. So, we can really start simulating the workplace.”

Additionally, the welding and collision repair programs will both be

getting more booths, allowing more students to work on projects at one time.

In their new welding booths, students will also be able to learn pulse MIG welding, a technique that requires equipment in addition to TIG machines. Adding a second painting booth will ease a “bottleneck” in the collision repair shop, according to FRCC’s grant application.

“The double booth will allow more students to keep working and learning,” it reads.

Machine tool students will be getting new programs for their CNC machines. Twenty new “zero clients” will be purchased, updating the machine’s capabilities.

“Stuents will use the zero clients to draw blueprints, create models and toolpaths that will then be machined using our CNC equipment,” the grant application reads. “The zero clients will allow us to use Inventor CAD/ CAM software to its full potential.”

The building trades shop will be getting a new bandsaw and repairs to its old one. For gearheads in the mechanic’s shop, four ATech electrical training boards teach students the

basics of circuit theory and testing and diagnosis of bugs that simulate common problems. Three new cordless impact tools will also make for a more-organized work area.

The remaining funds will be used to update and increase the number of laptop computers used by the nursing students.

The Warrensburg Area Career Center and the Rolla Technical Institute/Center were also selected to receive $400,000. As part of the deal for the grants, the schools must match some of the funds, $133,333, which must be spent by 2026.

In allocating the federal funds, King said Gov. Mike Parson is “putting his money where his mouth is” in support of technical jobs after years of focusing on Missouri’s economy.

“We’ve been really lucky because Gov. Parson is very pro-career and technical education,” King said. “He is really working on getting the Missouri workforce up, so we can keep our industry footprint going. He’s really put a lot of time and resources and legislation in that’s been helping get our future students ready to be tomorrow’s workforce.”

A study from Australian insurance comparison site Compare the Market has revealed Americans still favor ICE-powered vehicles over electric vehicles, while consumers in Australia and Canada prefer EVs.

The study started by asking consumers whether they’d prefer to own an ICE vehicle or an electric vehicle at the same price. No less than 53% of Americans said they would prefer a traditional vehicle compared to 34% who would prefer an EV. The rest had no preference either way.

This contrasts with Australia, where 50.8% said they would prefer an EV, and Canada, where 51.4% of respondents said they would prefer an EV.

Of those Americans who would prefer to own an EV, 18to 24-years-olds were the most likely to opt for an EV, with 43% preferring them over ICEs. By comparison, upwards of 70% of

people aged between 55 and 64 would prefer an ICE.

There are a few key reasons why many consumers in the U.S. are not yet convinced by electric vehicles, the study reveals. For example, 56.4% of respondents said the main barrier to entry was battery life and replacement costs. The purchase price was also an issue for 54.4%, driving range was a concern for 50.9% and charging times concerned 50.5%.

Interestingly, Americans are more likely to favor an EV if they are spending big. Compare the Market found there are twice as many people who would spend more than $65,000 on an EV than those who would spend the same amount on a traditional vehicle.

Importantly, 32.5% of Americans would only be willing to spend a maximum of $25,000 on an electric vehicle, meaning there is not a single EV currently accessible to them within their budget. A further 20.9% also wouldn’t be willing to spend more than $34,999 on an EV.

autobodynews.com / JANUARY 2023 AUTOBODY NEWS 25
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I recently had a friend in the collision industry describe today’s collision repair marketplace as a “gold rush.” I think that is a brilliant analogy—leaving aside the mid-1800’s California Gold Rush’s famous lack of gold.

Make no mistake: this gold rush in collision repair has plenty of treasure, but you’ll have to be aggressive in getting your share. Smart, institutional money continues to pour into the industry, furthering the trend of consolidation at a rapid pace. New, well-financed entrants to the marketplace are popping up seemingly every day, each with a slightly different spin on their visions.

One thing that is evolving, however, is the investment required to be a player in the future of collision repair. As automotive technology evolves, equipment and training requirements for collision repairers are increasing at a rapid pace. The days of the “mom-and-pop” collision repair shops are dwindling.

The multi-shop operators (MSOs), both national and regional, have

discovered the magic of scale that smaller operations just won’t be able to achieve. While the mom-andpop collision centers are declining in number and the MSOs continue to flourish, where is the biggest opportunity for those less funded?

In the immediate collision arena, it seems specialists—specifically, specialists who operate within particularly profitable niches—are set up for success in the short, mid and long term. Collision repair providers within the heavy-duty trucking, agricultural equipment and exotic vehicle spaces, for example, seem to represent an opportunity for unusually high profit margins and long-term sustainability.

While these businesses typically differ from the profile of those sought after by the current consolidators, their profit potential opens the investor pool significantly. In particularly profitable cases, even one-store niche operations could be of interest to private equity and other investors.

One must wonder when consolidation within that world will begin on a larger scale and who will be the ones to take advantage. The niche collision world is one space I’m keeping a close watch over.

Stepping slightly outside the immediate collision repair industry, here’s another thought. In the California Gold Rush, it wasn’t the gold diggers who hit the jackpot; it was the suppliers. If you sold shovels or gold pans or lumber or food in that day, you likely struck it rich.

Using the example of the California Gold Rush, could businesses that sell products and services to collision centers end up being significant beneficiaries? Consider me bullish.

Money, from an institutional investment standpoint, tends to trickle down. In the case of the collision industry, consolidation and institutional investment began pouring into collision centers first. Second, the money came to the paint jobbers. More recently, private equity has made its way into the equipment

world. Where will it go next?

In terms of market opportunity, collision repair equipment and service providers seem to have significant runway available to them, especially if they can break in with some of the national MSOs. There are pain points throughout the shop, and offering a solution to alleviate just one or two of those pain points can create quite the opportunity at scale.

Loop in other service providers such as Advanced Driver Assistance System (ADAS) calibrators, collisionspecific alignment providers, automotive glass companies, paintless dent repair (PDR) services and many others, there is a whole ecosystem living—and thriving—on the “scraps” of the collision repair industry.

Will consolidation hit these markets as hard as it has hit those upstream?

Time will tell, but my educated guess is that yes, massive consolidation is coming. And it is coming soon.

Take a look at M&A activity in other “non-sexy” service businesses, such

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as landscaping, electricians, HVAC companies and others, and you’ll see these companies are highly sought after by investors.

So how can you take advantage of the rapidly evolving opportunities within the greater collision repair landscape? If you’re in the game already, it comes down to this: grow or go. If you’re not willing to make the investment to grow your business, the M&A market remains hot and exit opportunities abound.

If you are determined to stay the course, find your niche and double down. Approach what you do with the aggressiveness of an operator, the mind of an investor and an eye toward the future.

If you’re on the sidelines or have additional capacity, put some thought into it. Where is the market being underserved? Can I do it better than it’s currently being done?

RepairLogic Platform

provide personalized training to ensure success.

Sweetland: Our goal is to get the information into the hands of the person and team fixing the car. We need to meet body shops where they are and help them perform safe and proper repairs according to their standard operating procedures so they can get people back in their cars safely.

Tesla Adds Insurance To Minnesota, Raises Rates in Other States

Tesla is introducing its in-house insurance program to drivers in Minnesota, the 12th state to qualify for the automaker’s coverage. Tesla also applied to raise rates in Oregon and Maryland by up to 30%.

Minnesota’s insurance laws allow Tesla to operate with realtime driving behaviors, which can improve rates for safe drivers. All of the states Tesla operates insurance in supports telematics, except for California, as it goes against privacy laws.

Blech: We currently have several different manufacturers’ repair information included in RepairLogic, totaling about half of the vehicles on the road. In 2023, we plan to expand

Tesla plans to expand to other markets in the future. New York was expected to receive Tesla insurance this year. Teslarati confirmed with the New York State Department of Financial Services that Tesla has not yet received approval to offer it to drivers in the state.

Separately, Tesla plans to raise rates in Oregon and Maryland by 24.5% and 30%, respectively.

Q: What are the company’s plans?
l CONTINUED FROM PAGE 22
28 JANUARY 2023 AUTOBODY NEWS / autobodynews.com Honda and Acura Genuine Parts is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice ‹ $0 enrollment fee ‹ Quick access to live inventory* in the Honda and Acura Genuine Parts catalog ‹ Easy streamlined ordering process saves your employees’ time so they can work on repairing cars Benefits for Repair Facilities: GET STARTED! CREATE YOUR ACCOUNT AT: GenuineHondaParts.Honda.com For Account Help, Contact: HondaandAcurapartsportal@ahm.honda.com Click on the “My Account” button and then click “Register”. *Available through most dealers

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/ JANUARY 2023 AUTOBODY NEWS 29
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Don’t Look For Short-Term End To Fast Growth in Average Collision Repair Invoices

One trend not expected to end in 2023: the rapid rise in average repair costs.

That was among the messages Bart Mazurek of CCC Intelligent Solutions shared during the MSO Symposium in November in Las Vegas.

“If we look at 2018, the average repair cost was about $3,000,” said Mazurek, vice president of consulting services for CCC. “Now we’re looking at just north of $4,000. And given inflationary trends, I anticipate that number being around $4,400 or $4,500 [in 2023].”

He cited among the causes the rise in the average number of parts being replaced per repair job.

“In just a two-year span, we’ve gone from 10.5 parts to almost 12.5 parts,” he said. “And those two additional parts are driving four additional hours of labor.”

He noted a bumper for a 1996 Honda Accord consisted of about 11 components, but the current model Accord bumper includes more than 20. More of those parts, such as ADAS sensors, are not repairable and are available only through the automakers.

He said the OEM share of average parts costs had been “rather steady for years,” but in 2022, it “really jumped up because the OEMs are the only ones that can supply those additional two parts per job.”

CCC’s data seems to indicate the increase in the average repair order isn’t being dramatically impacted by a significant increase in shop labor rates.

“Labor rates have only gone up $1 this year compared to last year,” Mazurek said, noting he was speaking only of work processed through insurer direct repair programs

(DRPs). “It’s continuing to rise, but it’s a slow process.”

He shared a graph indicating the growth in the national average labor rate has lagged below the consumer price index (CPI) for “motor vehicle maintenance and repair in U.S. cities” since late 2018, but the difference has

a row to reach an average of 10.2 in 2022, down 17% over two years.

“I think that has to do with repair facilities reevaluating DRPs based on the current market and their goals,” Mazurek said. “And they decided to reduce the number of DRP programs to better align with their goals.”

Continued Decline in ‘Hours Per Day’

The downward trend in labor hours produced per repair day that has been occurring since 2017 also continued in 2022, Mazurek said. Looking at second quarter data over six years, shops were producing about 3.5 labor hours per day on drivable vehicles until 2020; that fell to 2.8 hours per day in 2020, and fell again, to 2.3 hours per day in 2022. That’s a 34% decline.

become increasingly stark in 2022, with that CPI growth far outpacing increases in labor rates.

Shops Have Fewer DRPs

The slow growth in DRP labor rates could be contributing to another trend Mazurek reported: Shops have fewer DRP agreements on average than they have in the past. Across all business models—singlelocation, dealership and MSOs— shops averaged 4.6 DRPs in 2022, according to CCC data, down from an average of 5.2 in 2021, more than an 11% decline.

Breaking it down by shop type, dealership collision shops fell from 6.3 DRPs to 5.8; regional MSOs fell more than 6% to an average of 5.6 per shop; and independent shops dropped from 3.1 to 2.8 DRPs on average—more than a 9% decline.

But the trend among the national MSOs is even more stark. They averaged 12.3 DRPs per location in 2020, but that’s fallen two years in

There was even a bit steeper decline—about 38%—for nondrivable vehicles, down to 1.8 hours per day in 2022 from between 2.8 and 3 hours per day in 2017 through 2020.

Mazurek said some of that decline could be because of overloaded shops having to spend more time shuffling cars around, because of backlogs and part delays, rather than a technician

working steadily on one or two cars start to finish. He doesn’t expect those factors to diminish before mid-2023 at the earliest.

Mazurek also said he has “a hypothesis that I can’t prove yet” that when shop backlogs of work

were two weeks or less, “the competitive nature of technicians, working next to his or her peer, wants the next car,” seeing the potential end of the line of that work.

“But if you have five or six or seven weeks of vehicles stacked endlessly, it’s effectively guaranteed work forever,” Mazurek said. “So there’s no real rush. I’d love to be able to prove that, but I feel strongly that there’s this lack of urgency overall amongst technicians.”

As the collision industry mourned the passing of Jeff Silver, who was instrumental in creating both I-CAR and the Collision Repair Education Foundation (CREF), his family immediately recognized the best way to honor his memory and continue his long-lasting legacy on the industry he loved: by creating the Jeff Silver Memorial Scholarship. “Jeff was passionate about helping collision school programs and their students, which is why he had an active role in establishing the Collision Repair Education Foundation back in 1991,” said

Silver, his wife and soulmate of 36 years.

Anyone considering a year-end, tax-deductible charitable gift is invited to consider helping to honor Jeff’s memory by contributing to his memorial scholarship fund. Simply visit CREF’s online donation page, and select the “Jeff Silver Memorial Scholarship” designation for your donation. Scholarship applications will open in January, and the inaugural Jeff Silver Memorial Scholarship will be awarded in 2023. Source: CREF

30 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
Exclusive SEMA Coverage
Bart Mazurek of CCC Intelligent Solutions said collision repairs are requiring two more parts on average, adding four hours of labor on average
“In just a two-year span, we’ve gone from 10.5 parts to almost 12.5 parts. And those two additional parts are driving four additional hours of labor.”
BART MAZUREK VICE PRESIDENT OF CONSULTING SERVICES, CCC INTELLIGENT SOLUTIONS
Jeanne
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After launching Auggie at last year’s SEMA Show, AirPro Diagnostics introduced an updated version of their ADAS calibration tool at SEMA 2022, the Self-Guided Auggie DTS (Digital Target System).

The Auggie is a patented, fully autonomous wireless digital targeting tool that uses machine vision to present static Forward-Facing Camera (FFC) targets for customers to perform calibrations according to OEM specifications.

“The Self-Guided Auggie DTS takes the place of having to do all of the setup with physical targets,” explained Lonnie Margol, CEO of AirPro Diagnostics. “The new release is basically the same device, but users can now control Auggie on their own and use any ADAS calibration capable scan tool.”

The previous version of the device required shops to use an AirPro Diagnostics scan tool and remote technicians. The updated version allows the device to be operated by the user and will work with any ADAS-capable scan tool and a free smartphone interface. All setup

specifications and instructions are displayed on the Auggie, allowing users complete control of their static FFC calibrations.

“The calibration game has now changed,” said Josh McFarlin, executive vice president of AirPro Diagnostics. “We listened to our customers and now they can use their

“It takes all of the environmental conditions out of the equation,” he said. “Shops don’t need a 30-by-60[foot] footprint, controlled lighting and other complex requirements.”

Margol said the Auggie also enables body shops to keep calibrations in-house rather than having to sublet the work.

“The worst thing is to send a vehicle out and then you’ve lost control of the process,” he noted.

“It’s remarkable to me how many collision repair shops aren’t doing calibrations when the OEMs now require them after any structural repairs,” said McFarlin. “They are either sending it to a dealer, or worse, they aren’t doing it.”

By not doing a calibration inhouse, McFarlin said shops are losing control of their cycle time and the associated revenue.

About four years ago, AirPro envisioned developing a solution for static calibrations.

“The manual method seemed so archaic,” said Margol. “Not a shop in the world is built with a level floor and has non-reflective paint on it.”

As a result, they set out to look for a better solution. A calibration bay was built at one of their customer’s collision repair shops and the team began experimenting with how to best digitize the targets.

When the Auggie was invented, the main goal was to ensure it was mobile so calibrations could be performed virtually anywhere. Margol said this was especially helpful for the glass industry to be able to calibrate vehicles in the field.

own scan tool, fully independent of AirPro, to perform FFC calibrations.”

With ADAS FFC calibrations becoming increasingly more complex over the last decade, McFarlin said the Auggie can save technicians time, increase efficiency in the shop and help perform a safe repair.

Crash Champions Acquires Collision Repair Center in Kansas City, MO

Crash Champions, LLC, on Nov. 16 announced the organization has expanded its footprint in the Kansas City metro area, through the acquisition of Molle Toyota’s collision repair center.

As part of the deal, Molle Toyota will maintain full independent ownership and operations of its automotive dealership, while Crash Champions will acquire and assume operations of the repair center effective immediately.

“This repair center has earned a loyal customer base thanks to its commitment to employing certified technicians that utilize state-of-the-art tools and deliver best-in-class repairs,” said Matt Ebert, founder and CEO of Crash Champions. “These are the same ingredients that Crash Champions utilizes in our proven recipe for success, and I look

forward to continuing to build on this legacy.”

The Molle Toyota collision repair center, which provides automotive collision repair service to all vehicle makes and models, also boasts OEM certifications by Toyota, Audi and Volkswagen.

Crash Champions’ strategic growth has expanded its current footprint to more than 580 premier collision repair centers across the U.S., each offering customers a written lifetime warranty.

For more information about Crash Champions, visit crashchampions.com. Collision repair companies interested in joining the Crash Champions team are encouraged to visit crashchampions.com/sell-yourshop to learn more.

Source: Crash Champions

“It helps reduce cycle time incredibly because the whole process takes less than eight minutes,” said Margol.

The company provides step-bystep directions to operate the Auggie and a help button connects to AirPro brand specialists for immediate support.

Since then, the tool has evolved to meet the needs of the industry. There have been multiple updates and two impactful releases of the software. “It’s such a thrill that this project has really come to life,” said Margol.

“A lot of shops already have a solution for a diagnostic tool and weren’t looking to make a change,” said McFarlin. “The Auggie is now an option for them.”

For more information, visit airprodiagnostics.com.

www.autobodynews.com

32 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
AirPro Diagnostics Releases Updated Self-Guided Version of Auggie DTS At SEMA 2022 Exclusive SEMA Coverage
At the SEMA Show, Lonnie Margol, left, and Josh McFarlin, right, shared information about AirPro Diagnostics’ updated version of the company’s ADAS calibration tool, the Self-Guided Auggie DTS (Digital Target System)
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Report: Illinois Small Businesses Lead the Way in Job Recovery

Small mom-and-pop shops in Illinois are leading the way when looking at post-pandemic recovery, according to a new report.

The Illinois Policy Institute report showed small businesses in Illinois have gained 309,000 jobs in the aftermath of COVID-19.

“Businesses with under 20 employees have been the only firms that have grown jobs since 2020,” IPI’s  Justin Carlson said. “Businesses with over 20 employees have lost jobs since the onset of the pandemic.”

Carlson told The Center Square that one of the main factors in the growth of these small businesses was their ability to retain their workforce.

“Small businesses have been the least likely to lay off employees during the pandemic,” Carlson said. “This is

a great thing; the fewer layoffs, the better you will be when the economy takes a downturn, so the smaller businesses were the most resilient.”

Many large companies including Caterpillar have already decided to leave the state due to several factors, including high taxes on businesses.

“We have seen stories about big employers leaving the state, so that is hurting their chance to grow jobs here in Illinois, and that’s hurting the employment situation for them,” Carlson said.

Employers with fewer than 20 employees saw their payrolls shrink by 3% at the onset of COVID-19. Meanwhile, larger employers laid off more than 9% of their workforce.

The businesses with under 20 employees have been the only ones in the state that have seen job growth since the pandemic, as over 50,000 jobs have come back post COVID-19.

www.autobodynews.com

Like the Temperatures, Gas Prices Keep Falling As the Holidays Approach

The national average pump price plunged 14 cents since Dec. 5 to $3.26 as of Dec. 12, six cents less than a year ago. There are now approximately 34 states with averages lower than last year.

“The seasonal pattern of less driving due to shorter days and crummy weather, combined with a lower oil cost, is driving gas prices lower,” said Andrew Gross, AAA spokesperson. “If this trend continues, many states could see their average prices fall below $3 a gallon by early next year.”

According to data from the Energy Information Administration (EIA), gas demand remained low at 8.36 million b/d over the same week, approximately 605,000 b/d lower than a year ago. Meanwhile, total domestic gasoline stocks rose

significantly by 5.3 million bbl to 219.1 million bbl. Increasing supply and lower gasoline demand will push pump prices lower.

The Dec. 12 national average of $3.26 is 52 cents less than a month ago and six cents less than a year ago.

The nation’s top 10 largest weekly decreases: Montana (-26 cents), California (-25 cents), Alaska (-24 cents), Nevada (-21 cents), Oregon (-21 cents), Washington (-21 cents), Michigan (-21 cents), Arizona (-20 cents), Wyoming (-20 cents) and Indiana (-19 cents).

The nation’s top 10 least expensive markets: Texas ($2.69), Oklahoma ($2.70), Arkansas ($2.79), Missouri ($2.81), Louisiana ($2.84), Mississippi ($2.84), Tennessee ($2.84), Wisconsin ($2.85), Georgia ($2.87) and Kansas ($2.89).

Source: AAA

AUTOBODY

CCC Intelligent Solutions Inc., announced Zendrive is the newest mobility risk intelligence provider to join the CCC network. Insurance customers of the two companies will be able to seamlessly connect smartphone-centric crash detection data with CCC’s claims management solutions, helping to improve and speed claims outcomes.

CCC works with more than 300 U.S. auto insurers, including 18 of the top 20 carriers, powering better claims experiences for millions of drivers annually. CCC will ingest Zendrive’s crash data via its CCC Cloud and derive elements including point of impact, direction of force and other pertinent telematics data that will accelerate and enhance its services. Participating customers can then leverage that data through CCC’s software-driven workflows, creating more straightthrough experiences for drivers and insurers. The CCC Cloud connects a network of 30,000 companies across the P&C insurance economy, including auto insurers, collision repairers, car manufacturers, parts suppliers, lenders, telematics data providers and more.

Source: CCC Intelligent Solutions Inc.

34 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
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Compact

Precision Pen Debuted At SEMA Show

of perseverance, innovation and tenacity for solving tough challenges that led the brand to introduce the original formula nearly 70 years ago.

When most people think of the WD40 Brand, what typically comes to mind is the company’s iconic blue and yellow can with a red top that contains the Original WD-40 Formula, a staple in most body shops across the country.

During the 2022 SEMA Show, the company debuted the WD-40 Precision Pen, which contains the same multi-use formula but in a compact size. The new product is expected to be released in early 2023.

“This is an innovation on our Original WD-40 Formula,” said Dan Anderson, director of innovation at WD-40 Company. “What makes it unique is that it allows for a lot of control and precision wherever you need the product.”

“We’re proud to equip technicians and builders with what they need to get the job done right and take things to the next level,” added Greg Kershaw, director of brand engagement and experience at WD40 Company.

The company said the product is a result of feedback from end users and reflects the same spirit

“There’s a good amount of product in there and it’s great for all the things that the Original WD-40 Formula is known for, such as getting squeaks out, lubricating moving parts, protecting against rust and corrosion,

you only get the formula where you need it and the amount you need.”

Another benefit is the pen’s portability. Due to its small size, Anderson said it can be stored in a toolbox, glove compartment, pocket and/or toolbelt.

The new product will be available in all the same places WD-40 Brand products are sold.

During the SEMA Show, WD-40 Brand gave away 2,000 limitededition prototypes of the WD-40 Precision Pen with seven-time Pro4 champion Kyle LeDuc’s signature and a photo of his custom race truck. Those who received a pen with a golden cap were given a special edition Carhartt hat featuring LeDuc.

SEMA Show attendees also had the opportunity to view the WD40 Specialist line, which includes lubricants, penetrants, greases, contact cleaners and degreasers and rust-management solutions.

“The Original WD-40 Formula does most everything,” said Anderson. “However, when you have serious problems and need a specific solution, we have the WD-40 Specialist line.”

This includes a Silicone option for surfaces such as rubber, plastic and vinyl, White Lithium Grease for metalto-metal applications, and Contact Cleaner for electric parts. “Especially with the rise of electric vehicles, there are a lot more uses for that,” said Anderson.

AASP-MN’s 21st Annual Race for Automotive Education is planned for Jan. 23-26, 2023, at ProKart Indoor Racing in Burnsville, MN.

The event serves as the alliance’s primary fundraiser for its 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.

Since its inception, the fund has disbursed nearly $300,000 directly to students enrolled in automotive programs through the association’s scholarship program and SkillsUSA competition.

AASP-MN members and other

loosening rust and displacing moisture,” said Anderson.

He said the pen is easy to use and store, ideal for tight spaces and small projects.

“The compact size is meant for times when technicians want to get the product exactly in a certain area,” he explained. “This is great because

The WD-40 Brand team said they were thrilled to showcase their partnership with LeDuc at this year’s SEMA Show. “Partnerships with pros like LeDuc and others in the motorsport and bike world exemplify the brand’s longstanding mission of helping pros take things to the next level,” the company said.

LeDuc’s custom-built 4-wheel drive, 900-horsepower race truck was displayed at the WD-40 Brand booth. It featured a new look for the SEMA Show that included a custom chrome livery.

In total, WD-40 Brand offers more than 30 products and each is designed to solve a specific problem.

Many of the new products are shared with WD-40 Company’s PRO Board for evaluation. “When we need feedback on something we can reach out to them,” said Anderson. “We’ll send them samples and they will try things out and provide feedback.”

For more information about WD40 products, visit www.wd40.com.

For more information on the Specialist line, visit www.wd40.com/ specialist.

industry supporters will organize teams to compete in kart racing at speeds of up to 40 mph. When the final checkered flag waves, the Race for Automotive Education is expected to raise more than $15,000, earmarked to fund scholarships for students enrolled in ASE-accredited automotive program (collision repair or auto service) in the state of Minnesota.

Scholarship awards will be announced in the spring of 2023.

For more information, contact Linden Wicklund at the AASPMN office at 612-623-1110 or 800-852- 9071, or visit www. aaspmn.org.

Source: AASP-MN

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Ford Cracked Fuel Injector Recall Issued After Fires

A Ford cracked fuel injector recall involves more than 634,000 Escape and Bronco Sport vehicles following at least 20 fires, three that caused nearby buildings to catch fire.

The Ford fuel injector recall, which includes about 522,000 vehicles in the U.S., was issued after four injuries were reported.

The cracked fuel injector recall includes 2020-2023 Ford Escape and 2021-2023 Ford Bronco Sport SUVs equipped with 3-cylinder 1.5L engines.

According to Ford, a cracked fuel injector may leak fuel inside the engine compartment. An engine compartment fire can occur if fuel leaks onto a hot ignition source. The automaker said four owners discovered the fires within five minutes of shutting down the engines.

All the recalled Ford Escapes and Ford Bronco Sports equipped with 1.5L engines were previously recalled in April, but apparently the recall repairs didn’t work. Ford was

trying to find a cause of engine fires and engineers suspected the engine oil separator housings could crack and develop oil leaks.

At the time, Ford said the Escapes and Bronco Sports could suffer from cracks at the edges of the oil separator housings which caused the seals to fail. This could cause oil to leak between the oil separator and engine camshaft cover.

Even after the previous recall repairs and months of investigating, Ford says the “root cause is still under investigation.” However, engineers do know a cracked fuel injector will allow a lot of fuel to quickly leak into the cylinder head.

According to the cracked fuel injector recall, Ford Escape and Bronco Sport owners don’t need to stop driving the vehicles. But customers should be aware of fuel odors, gas leaking from under the engine compartments, and of course seeing smoke or flames isn’t a good sign.

Customers with concerns about repairing the vehicles should ask their Ford dealers

about loaner vehicles and other free services.

“Once the repair is available, we will ask customers to schedule service with their preferred dealer. They can then take advantage of our complimentary pickup and delivery or a loaner to make sure the repair is completed at their earliest convenience,” Ford said.

Ford fuel injector recall letters will be mailed Dec. 19.

Ford will update the engine control software to detect a pressure drop in the fuel rail and provide a warning message to have the vehicle serviced. A dealer will also install a drain tube to allow fuel to drain from the cylinder head drain hole onto the ground below the vehicle.

This will allegedly keep gas away from hot surfaces that could start a fire.

Owners of 2021-2023 Bronco Sports and 2020-2023 Escapes may learn more about the fuel injector recall by calling Ford at 866-436-7332.

Ask about fuel injector recall reference number 22S73.

Kaeser Compressors, Inc.’s Compressor for a Cure raised more than $20,000 for the Breast Cancer Research Foundation.

Kaeser auctioned off a oneof-a-kind M59PE portable unit, calling it the “Compressor for a Cure.” The auction began on National Mammogram Day, Oct. 21, and concluded Oct. 31 with 25 bids raising $21,700, which will be added to individual employee donations for a total of $23,120. Kaeser will donate 100% of the proceeds.

Breast cancer is the most common cancer in women worldwide, with approximately 2.3 million women diagnosed in 2021. It is the second leading cause of cancer death in American women, and tragically, incidence rates are on the rise.

For more information on how to contribute to breast cancer research, visit bcrf.org. For more information on Kaeser’s efforts, visit us.kaeser.com/ goyellowbegreen.

Source: Kaeser Compressors, Inc.

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GM Says Its Dealers Have Fixed Over 11,000 Tesla EVs Since 2021

General Motors has a “new business”—servicing Tesla electric vehicles at its dealerships.

Since 2021, GM claimed, its dealers have fixed more than

fixing Teslas.

GM President Mark Reuss dropped that bombshell while talking to investors and analysts. “That’s a growing business for us,” he said before adding, “I gotta say it’s a new business.”

Servicing Tesla vehicles is unexpected but it’s easy to see the benefit for both sides.

General Motors gets a stream of revenue it wasn’t planning on, while customers are not having to wait on what can be lengthy turnaround times for service through Tesla itself.

go into detail about exactly what services GM dealers are performing on Tesla vehicles. CarScoops reached out to GM for more information.

It is also unknown how many vehicles are no longer under warranty with Tesla. In addition, many deeper functions are things only Tesla service centers can affect. But that doesn’t mean this revenue stream isn’t a big win for both sides.

Hunter Engineering Recognized by Vets Group

On Nov. 22, Hunter Engineering was certified as a Veteran-Owned Business by the National Veteran Business Development Council (NVBDC).

NVBDC is the original veteranowned business certification organization formed to identify and certify veteran-owned companies of all sizes. The council ensures valid and complete documentation exists for veteran status, ownership and operational control.

11,000 Tesla EVs across the nation. The business is a growing one, GM said, at a time when Tesla is still fine-tuning its own service model.

During the Detroit carmaker’s Investor Day on Nov. 17 in New York City, General Motors revealed a new source of income:

Classic Collision Adds 3rd Location in MN

Classic Collision, LLC, announced a new closing Dec. 2 the acquisition of Roering Auto Body in Saint Paul, MN. Roering Auto Body has been serving Saint Paul and the surrounding areas since 1982. Through its quality workmanship, attention to detail and prompt service, it has built a solid reputation of customer satisfaction.

“Our mission is to provide our customers with the most professional, courteous service and quality workmanship, and we believe that Classic Collision will continue that here in Saint Paul,” said Lisa Roering, former owner of Roering Auto Body.

“We are excited to be adding our third location to the Classic family in the Minnesota market,” said Toan Nguyen, CEO of Classic Collision. “We recognize the need for exceptional service standards and look forward to providing more options to our customers in this growing market.”

Source: Classic Collision, LLC

As Barrons rightly pointed out, Tesla doesn’t have a network of dealers. While it does have its own service centers, they aren’t as numerous as GM dealers across the nation. That, in part, may be one reason many Tesla customers have reported long wait times for service appointments.

It’s worth noting Reuss didn’t

Having the ability to get service completed in a single day impacts customer satisfaction in a large way. Surely, that’s why Tesla CEO  Elon Musk made a large push towards improving the service experience for customers earlier this year.

Now, with his attention split even further by Twitter, it’ll be interesting to track how much Tesla’s service improves in 2023. Either way, the gap between the two automakers might be shrinking.

www.autobodynews.com

Beginning in 1946 with World War II veteran and founder Lee Hunter Jr. and continuing through today with Vietnam War veteran and chairman Stephen F. Brauer, Hunter Engineering has been veteran-owned for its entire 76-year history.

Hunter Engineering is among the largest veteran-owned businesses in St. Louis, MO. More than 1,000 Hunter employees design and build equipment in the U.S. at four manufacturing facilities in Missouri and Mississippi. Hunter products are sold worldwide in 130 countries.

For more information, visit www. hunter.com.

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November New-Car Sales Improve Year-Over-Year

Automakers on Dec. 1 began releasing sales data from November, reporting strong performances compared to November 2021.

Kia

Kia America announced best-ever November sales of 56,703 units, an 8% increase over the previous November sales record set in 2016, and a 25.1% improvement yearover-year.

For the second consecutive month, sales were led by the Sportage family of SUVs, which were up 144% over the same period a year ago. Sales of Kia’s electrified models---which have posted double or triple-digit gains in the past five months---also contributed to the record-breaking performance with a 133% year-over-year increase.

Hyundai

Hyundai Motor America reported total November sales of 63,305 units, a 43% increase compared with November 2021.

Hyundai set total records in November for Elantra HEV, Santa Fe, Santa Fe HEV, Tucson, Tucson HEV,

Kona EV and Santa Cruz. Hyundai fleet sales remained at 1.4% of total volume for the year.

Hyundai’s retail sales of 56,592 units represented a 28% year-overyear increase from November 2021. This was a record November retail sales month led by Elantra HEV (+733%), Kona EV (+113%), Venue (+57%), Santa Cruz (+44%), Santa Fe HEV (+43%), Tucson (+33%) and Tucson HEV (+18%). Hyundai eco-friendly vehicle sales of 7,550 represented 13% of retail and a 39% year-over-year increase.

Mazda

Mazda North American Operations (MNAO) reported total November sales of 26,906 vehicles, an increase of 30.6% compared to November 2021.

Year-to-date sales totaled 267,616 vehicles; a decrease of 14.6% compared to the same time last year.

With 25 selling days in November, compared to 24 the year prior, the company posted an increase of 25.4% on a Daily Selling Rate (DSR) basis.

CPO sales totaled 4,344 vehicles

in November, an increase of 13% compared to November 2021.

Sales Highlights

* Second best-ever November total sales with 26,906 vehicles sold.

* Best-ever November sales of CX-30 with 4,457 vehicles sold.

* Best-ever November sales of CX-9 with 4,025 vehicles sold.

Honda

American Honda November sales totaled nearly 80,000 units.

Honda crossovers led the way with all-new CR-V sales of almost 20,000 units and all-new HR-V over 9,000 units, logging its best month since June.

The all-new Pilot goes on sale in December and is already generating strong pre-sale activity.

Accord topped 13,700 units and Accord Hybrid posted its eighth monthly record in 2022, topping 3,300 units.

The North American Car of the Year finalist Acura Integra again topped 2,200 units and led the premium gateway segment in 2022 sales after just six months on the market.

Acura sales were led by MDX, which overcame inventory issues to reach sales of more than 4,000 units.

Subaru

Subaru of America, Inc. (SOA) reported 50,138 vehicle sales for November 2022, a 51.7% increase compared with November 2021 (33,045). The automaker also reported year-to-date sales of 499,821, a 6.2% decrease compared with the same period in 2021.

In November, Outback was the top performer by volume with 15,069 sales and a 44.2% increase compared with the same period in 2021. The Forester saw a 147.7% increase compared to November 2021, while the Crosstrek increased by 101% and the Legacy posted a 110.9% increase.

Year to date, the Ascent posted a 5.3% increase, while the BRZ posted an increase of 141.4%. SOA also reported the first sales of the all-electric SUV, the Subaru Solterra, totaling 94 vehicles for the month.

Source: Kia, Hyundai, Mazda, Honda, Subaru

Vale,

Sign Long-Term Nickel Supply Agreement

Vale Canada Limited, a subsidiary of Vale S.A., and General Motors Co. announced Nov. 17 they have signed a term sheet for the long-term supply of battery grade nickel sulfate from Vale’s proposed plant at Bécancour, Québec, Canada.

This agreement secures for GM a supply of nickel sulfate from a U.S. free-trade partner to support its fast-growing EV production needs in North America.

Under terms of the agreement, Vale will supply battery grade nickel sulfate, equivalent to 25,000 metric tons per year of contained nickel, for use in GM’s Ultium battery cathodes, which will power a broad portfolio of electric vehicles including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ, the GMC Sierra EV, and the GMC HUMMER EV Pickup and SUV.

The amount of contained nickel is sufficient to supply

approximately 350,000 EVs annually. Deliveries are targeted to commence in the second half of 2026.

This initiative highlights Vale’s uniquely strategic position to be the supplier of choice to the EV industry, leveraging its lowcarbon footprint and marketleading position as North America’s largest producer of finished nickel. Nickel sulfate is the chemical compound used in the production of pre-cathode active materials for nickel-based lithium-ion batteries.

Vale and GM have also agreed to study collaborative ways to partner on advanced technology development and commercialization pathways to harvest recycled metals.

Source: GM

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CarMax Reaches Settlement Over Failure To Disclose Vehicle Recalls

A multistate coalition of 35 attorneys general on Dec. 1 secured $1 million from CarMax for failing to disclose open safety recalls on their used vehicles to consumers before sales.

CarMax did not provide consumers with information about safety recalls on critical vehicle

make a purchase.

A multistate investigation found CarMax, a nationwide used car dealer, misled consumers by failing to disclose needed repairs on vehicles with open safety recalls. CarMax classified those vehicles as “safe” despite there being open

to protect consumers. Customers of used car dealerships will now be able to access information about any open safety recalls for any vehicles available for purchase.

Under the agreement, CarMax is required to provide digital links for vehicles advertised online and QR codes for vehicles available on their lots which will allow consumers to access this information as they shop.

In addition, CarMax will present customers with documentation on any open safety recalls and obtain their signature to confirm proper disclosure before presenting the with any sales paperwork.

The company will pay $1 million in penalties, of which about $54,000 will go to New York.

New Yorkers and ensure that consumers are aware of any safety recall before they start driving. As attorney general, I will continue to ensure that companies that bypass the law are held to account and that New Yorkers are protected.”

CarMax will continue to use the National Highway Traffic and Safety Administration’s vehicle identification number tool to provide important safety information, including open recalls, to consumers.

parts, such as brakes and fuel pumps, before selling vehicles.

The agreement will set a new industry standard for used car dealers to disclose open safety recalls to customers before they

MotorTrend Shows on Amazon Freevee

MotorTrend Group announced Dec. 13 expanded distribution of the brand’s robust automotive TV programming with new availability on Amazon Freevee. This will allow millions of new viewers access to MotorTrend’s premium TV content without a paid subscription.

Fans are able to access the allnew MotorTrend FAST TV channel on Freevee starting Dec. 13. Simply download the Freevee app to start watching.

Amazon Freevee, formerly known as IMDb TV, is a streaming video service with thousands of premium movies and TV shows, including Originals and FAST channels, available anytime, for free. The free ad-supported streaming TV (FAST) channel, MotorTrend FAST TV, streams MotorTrend’s most popular shows in the U.S and Canada, such as “Roadkill,” “Bitchin’ Rides” and “Texas Metal,” online without a subscription.

MotorTrend FAST TV is currently also available on platforms including Samsung TV Plus and Xumo. More FAST providers will be announced soon.

Visit www.MotorTrend.com/FASTTV for more information.

Source: MotorTrend Group

recalls for parts, including airbags and other critical safety features.

The agreement requires CarMax to stop these improper practices and changes overall industry standards in the used car market

“When someone buys a car, they need to know that it will keep them safe,” said New York Attorney General Letitia James, part of the multistate coalition. “CarMax put New Yorkers at risk by allowing drivers to get on the road without warning them that their newly purchased vehicles had open safety recalls. This agreement will protect

Joining New York’s attorney general in the agreement are the attorneys general of Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin.

Source: Office of New York Attorney General Letitia James

NHTSA Announces Another Takata Air Bag Fatality, Urges Owners To Check For Recalls

The National Highway Traffic Safety Administration is urgently calling on all vehicle owners to check now for open Takata recalls on their vehicles, after confirming another Takata rupture fatality.

If it does, make an appointment to get your free repair as soon as possible,” said NHTSA Acting Administrator Ann Carlson. “If this air bag ruptures in a crash, it could kill you or someone you love, or leave them with critical, life-altering injuries. Every day that passes when you don’t get a recalled air bag replaced puts you and your family at greater risk of injury or death.”

at higher risk, as the age of the air bag is one of the contributing factors.

How to Check for Recalls

Use NHTSA’s Recalls Lookup Tool at www.nhtsa.gov/ recalls to check your Vehicle Identification Number (VIN) for any open safety recalls, including the urgent Takata recall.

If your vehicle does have a safety recall, call your automaker’s local dealer to schedule the free recall repair.

One person died in a crash in a 2002 Honda Accord where the Takata driver’s side air bag inflator ruptured.

This brings the total number of confirmed fatalities due to Takata inflator rupture to 23, with four fatalities confirmed in 2022.

“Whatever you’re doing, stop now and check to see if your vehicle has a Takata air bag recall.

NHTSA is urging all vehicle owners to immediately check to see if their vehicle has an open Takata air bag recall. If it does, owners need to contact their dealership to schedule a free repair as soon as possible and follow any warnings from the vehicle manufacturer.

Even minor crashes can result in exploding air bags that can kill or produce life-altering, gruesome injuries. Older model year vehicles put their occupants

Sign up at NHTSA.gov/ Alerts to be notified by email if your vehicle is affected by a future recall.

If you think your vehicle may have a safety defect that isn’t part of a current recall, contact NHTSA. Contact NHTSA online or by calling the agency’s Vehicle Safety Hotline at 888-327-4236, Monday through Friday, 8 a.m. to 8 p.m. Eastern time. For more information, visit NHTSA.gov/ Recalls.

44 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
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Going in Reverse: Dangerous Driving Behaviors Rise

A new report finds unsafe driving behaviors, including speeding, redlight running, drowsy driving and driving impaired on cannabis or alcohol, rose from 2020 to 2021.

pandemic in 2020, traffic fatalities have risen. The National Highway Traffic Safety Administration (NHTSA) estimated 42,915 people died in motor vehicle traffic crashes last year, a 10.5% increase from the 38,824 fatalities in 2020.

According to NHTSA, dangerous driving behaviors such as speeding, alcohol impairment and non-use of seatbelts account for a considerable proportion of the increased fatalities. Accordingly, AAA urges drivers to keep everyone safe on the roads and warns motorists against falling back into dangerous driving habits.

risky behaviors that they know are dangerous and would meet with disapproval from friends or family. For example:

Texting While Driving

92% think it’s very or extremely dangerous 96% think someone important to them would disapprove 26% admitted to doing it in the last 30 days

Aggressive Driving

The most alarming increase was among drivers admitting to getting behind the wheel after drinking enough that they felt they were over the legal limit—an increase of nearly 24%.

According to new survey data from the AAA Foundation for Traffic Safety, this is a reversal in the steady declines in these dangerous driving behaviors in the three years from 2018 through 2020.

Since the start of the COVID-19

“The reversal in the frequency of U.S. drivers engaging in risky driving behavior is disturbing. While drivers acknowledge that certain activities behind the wheel—like speeding and driving impaired—are not safe, many still engage in these activities anyway,” said Dr. David Yang, executive director of the AAA Foundation for Traffic Safety. “We must be aware of the serious consequences of dangerous driving behaviors and change course.”

As in previous years, drivers reported too often engaging in

88% think it’s very or extremely dangerous 96% think someone important to them would disapprove 23% admitted to doing it in the last 30 days

“The privilege of driving comes with great responsibility, which some motorists are not taking seriously,” said Jake Nelson, AAA’s director of traffic safety advocacy and research. “Fortunately, we know that reinforcing safe behavior with someone we know can influence them to change, so on our next ride with a passenger, let’s show

them how it’s done safely. Together we can move closer to zero traffic deaths.”

AAA recommends these safety tips to keep in mind.

Out of sight, out of mind. Stow your smartphone away, turn it to airplane mode, or activate call/text blocking features like Apple’s Do Not Disturb.

Slow down. Drivers tend to overestimate the time saved by speeding. Speed kills and isn’t worth the cost.

Stay alert. Stop driving if you become sleepy because you can fall asleep anytime. Fatigue impacts reaction time, judgment and vision.

Drive sober. If you consume marijuana or alcohol, then don’t drive. If you are taking potentially impairing prescription medications, discuss with your doctor or pharmacist how best to stay safe AND healthy behind the wheel.

Buckle your seat belt for every ride. It does not matter where in the vehicle you are seated. A properly worn seatbelt is the most effective way to survive a traffic crash.

Source: AAA

Ram transmission problems have caused a recall of more than 265,000 trucks following 16 reports of fires caused by leaking transmission fluid.

The recalled 2020-2023 Ram 2500 and 2020-2022 Ram 3500 trucks are equipped with Cummins 6.7L Turbo Diesel engines and 68RFE transmissions.

Fiat Chrysler says the transmission can have a problem with pressure and heat that builds up inside the 68RFE transmission, causing transmission fluid to leak from the dipstick tube.

The Ram truck fires occurred once transmission fluid leaked onto hot ignition sources in the engine compartments.

FCA opened an internal investigation in June due to a trend of engine compartment fires in 2020-2023 Ram 2500 and 3500 trucks. Engineers checked witness statements, fire patterns and other information to confirm the fire trend.

Chrysler determined the affected Ram trucks were built between September 2019 and November 2022.

In addition to the 16 Ram truck fires, FCA has received several warranty claims and one report of a minor injury.

However, Chrysler asserts there are no reports of fatalities related to the transmission problems or fires.

Chrysler says the only prior warning of a problem a Ram owner may have is an illuminated warning light.

The Ram transmission fluid leak and fire recall also includes more than 17,000 trucks in Canada.

To date, Chrysler doesn’t know how dealers will repair the Ram transmission problems, but the automaker will mail Ram transmission fluid leak recall letters Dec. 30.

Ram truck owners with questions should call FCA at 800-853-1403 and ask about transmission fluid leak recall number ZA3.

46 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
“The reversal in the frequency of U.S. drivers engaging in risky driving behavior is disturbing.“
DR. DAVID YANG EXECUTIVE DIRECTOR OF THE AAA FOUNDATION FOR TRAFFIC SAFETY
Ram Transmission Problems Cause 16
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Autel Selects Qmerit For Home Chargers

Autel Energy, a leading developer of residential and commercial EV charging solutions, has partnered with Qmerit, a nationwide network of certified EV charger installers, to provide customers with a seamless, stress-free home charger installation.

Qmerit offers a network of company-owned contractors, independent certified solutions partners and certified installers skilled in system implementation and integration.

Via Autel’s website Autelenergy. com, MaxiCharger customers can initiate the installation process with questions directed to gauge a customer’s home electrical status and installation needs. Qmerit uses that information to match the customer with the best installer. Qmerit’s network of certified electricians have installed more than 260,000 EV home chargers and covers more than 2,600 locations in North America.

The MaxiCharger can charge EVs up to nine times faster than a

Auto Care Alliance Offers HRA Plans To Members

The Auto Care Alliance has partnered with health reimbursement arrangement (HRA) provider Take Command Health to offer unique HRAs that enable small employers to reimburse their employees tax-free for health insurance premiums and medical expenses.

Arrangement (QSEHRA) and an Individual Coverage HRA (ICHRA). In contrast to a group plan, HRAs provide employers the benefit of not worrying about annual premium increases, participation rate concerns and management of underlying health risks of employees. HRAs also ensure employers are not privy to the private medical information of their employees.

As an added bonus, Auto Care Alliance members who set up an ICRA or QSEHRA plan by Dec. 2 will receive an additional $50 off their first month.

of a child. The program is easy to access online and the process couldn’t be smoother.”

Employers can set an allowance and employees choose the plan that fits their needs.

Chad Snider, an employee covered by this unique HRA, said, “I couldn’t be more pleased with how my employer utilizes Take Command. I upload my proof of insurance each quarter and my reimbursements are included in my paycheck at the beginning of each month. If you don’t use the full amount of your stipend in a given month it rolls over monthto-month until the end of the calendar year, which would allow a larger fund to work with for an emergency room visit or the birth

Sheri Hamilton, executive director of ACA and its Midwest alliance, said, “This IRScompliant program allows me to be competitive with benefit offerings of large corporations and still stay within budget, while offering flexibility for employees personal needs. It is much simpler offering employees a monthly medical expense stipend through Take Command Health and not having to worry about calculating reimbursements or searching for health insurance programs and pricing that would fit all our employees’ needs.”

Getting your HRA set up early gives your employees who need health insurance in 2023 enough time to shop for a plan before open enrollment ends Dec. 15. Set up your HRA by Dec. 2 to take advantage of this special $50 offer.  More information on the program can be found at autocarealliance. org/takecommand

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autobodynews.com / JANUARY 2023 AUTOBODY NEWS 47
Source: Auto Care Alliance
“This IRS-compliant program allows me to be competitive with benefit offerings of large corporations and still stay within budget, while offering flexibility for employees personal needs.“
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U.S. automobile dealer sentiment in the fourth quarter of 2022 dropped to the lowest level since the start of the COVID-19 pandemic, according to the Cox Automotive Dealer Sentiment Index (CADSI).

At 43, the current market index is below the threshold of 50, indicating more dealers view the current auto market as weak than strong. The index is down 6 points quarter over quarter, down 17 points year over year, and well below the prepandemic average of 48.

The current market index peaked at 67 in Q2 2021 and has been losing momentum every quarter since. U.S. auto dealers indicate their negative view of the market is influenced by the economy, higher interest rates and low inventory.

“High interest rates and a generally slowing economy are clearly weighing heavily on U.S. auto dealers right now,” said Jonathan Smoke, Cox Automotive chief economist. “Dealers are normally optimistic, so the drop in the threemonth outlook to a new low in our survey history is particularly noteworthy. As the year began, dealers were telling us about one obvious problem: inventory. Now, as 2022 comes to a close, it’s all about the economy and interest rates.”

The three-month, forwardlooking market outlook index dropped from the previous quarter and, at 41, is now at a record low and well below the 64 at the start of the year, in Q1 2022. Additionally, the economy index decreased for the second consecutive quarter to 43 in Q4, down from 45 in the prior quarter and below the positive threshold, indicating a majority of U.S. auto dealers feel the economy is weak.

Profits Under Pressure, Costs Remain High

The overall profit index saw a decline to 44, down from 50 last quarter and down significantly from 57 a year ago. However, the profit index remains higher than the average recorded in the three years prior to the COVID-19 pandemic, which was 41. The profit index continues to be driven by franchised dealers, who believe profits remain particularly strong, at 67. Independent dealers, conversely, now see profits as weak, with an index score of only 37.

In Q4 2022, the cost index— specifically the cost of running a dealership—dipped 3 points quarter over quarter to 72 and decreased 4 points from the record high level in Q2 2022. After reaching a record

low in Q2 2020 of 51 at the height of the pandemic, the cost index has been steadily increasing.

Overall inflation in the U.S. economy is clearly contributing to this view. The economy is the leading concern right now, with 62% of dealers citing it as a factor holding back business, up from 53% in Q3, with interest rates (49%), limited inventory (47%), market conditions (46%) and political climate (33%) rounding out the top five.

Inventory Is Noticeably Improving, Sales Are Not

While still historically low, the newvehicle inventory index improved for franchised dealers in the fourth quarter and is up significantly from one year ago. The index was at 14 in the fourth quarter last year, after hitting an all-time low of 13 in the prior quarter. Now at 53, the newvehicle inventory index indicates more dealers feel their inventory is growing, not declining. Importantly, the index is above the 50 threshold for the first time since the onset of the pandemic.

The new-vehicle inventory mix index has been increasing for a year as well, but remains historically low at 41, indicating the new-vehicle inventory mix is poor. In Q4 2019, the new-vehicle inventory mix index was 73. Overall, both new-vehicle inventory indexes continue to improve from their nadir one year ago, when inventory levels hit alltime lows at dealerships across the country.

The used-vehicle inventory index increased as well in Q4 2022 to 42, 6 points higher than the previous quarter and up 13 points year over year. Among franchised dealers, the used-vehicle inventory index improved by 14 points year over year in Q4 to reach the threshold of 50. The index for independent dealers saw a 7-point gain to 39. The used-vehicle inventory mix index slightly improved quarter over quarter and year over year at 49.

Overall, franchised dealers continue to be far more positive about inventory compared to independent dealers, but, consistent with last quarter, limited inventory ranks as one of the top three factors holding back business for dealers in Q4.

While new-vehicle inventory sentiment improved significantly in Q4, the view of new-vehicle sales improved only slightly, increasing from 51 to 52, meaning dealers remain marginally more optimistic about the current new-vehicle sales

environment.

One year ago, the index score was 45, meaning more dealers saw the market as poor versus good. The new-vehicle incentives index rose by 3 points quarter over quarter to 25 and has remained relatively stable since Q3 2021. The index reading indicates dealers view OEM incentives as small as opposed to large. For comparison, the incentive index was at 49 in Q4 2019.

On the other hand, the usedvehicle sales index declined to 42. For franchised dealers, the usedvehicle sales index decreased by 8 points to 54 in Q4 and is now 16 points below year-ago levels. For independent dealers, the index fell 3 points from the previous quarter to 38 and is down 10 points from a year ago. Overall, most dealers view used-vehicle sales as poor.

High Interest Rates and a Declining Economy Darken Market Outlook

Notably, the market outlook for the next three months decreased to an all-time low of 41 in Q4 2022, down from 44 in Q3 and 60 one year ago. The lower score indicates that more dealers feel that the outlook for the next three months

is weak, not strong. In fact, the Q4 market outlook index is significantly lower for both franchised and independent dealers year over year and 4 points below the index score from Q2 2020, at the height of the global COVID-19 pandemic.

The quarter-over-quarter decrease in market outlook, however, was driven more by franchised dealers, with an 11-point drop to 48. Independent dealers’ already-gloomy outlook dropped another point quarter over quarter to 39, a year-over-year decrease of 18 points.

Overall, the economy is now the top factor holding back business, according to the Q4 2022 CADSI. The factors saw major changes from last quarter, with the top five shifting more toward economic and financial factors.

In fact, in Q4 2022, interest rates jumped to the secondnd position in the list. Limited inventory was in the third position, but its score dropped 9 points quarter over quarter from 56% to 47%, a sign that inventory is improving but still a concern. Market conditions and political climate rounded out the top five.

48 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
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The average American driver will pay nearly $1,900 for car insurance in 2023, as insurance rates continue to rise across the country, according to the Insurify 2022 Auto Insurance Trends Report: 2022 in Review and What’s Ahead for 2023.

By the end of 2023, Americans will pay 16% more for car insurance than they did at the beginning of this year. Auto insurance rates increased by 9% throughout 2022 and will likely rise another 7% in 2023, with the average American spending $1,895 on auto insurance by year’s end.

Insurify’s report leverages more than 69 million car insurance rates from car insurance applications across the U.S. The final installment of a two-part series on car insurance trends in America, it forecasts insurance prices for 2023, details where costs rose the most in 2022, and surveys drivers on how their rates are changing and how they’re trying to save.

Coverage in 2022 cost the average driver $1,777 per year,

whopping 21% increase from 2020. Oregon, Maryland and Virginia saw the greatest price increases, with premiums rising by more than 25% in all three states.

California, meanwhile, saw car insurance prices fall 15% in 2022, in part due to an ongoing moratorium on rate increases

contributed to rate increases in 2022 will continue to be in play for American drivers in 2023,” said  Snejina Zacharia, Insurify’s CEO and founder. “Our annual data reflects the state of the insurance industry, and our new report projects that higher driving rates, more severe accidents, inflation’s impact on vehicle repairs and medical costs, and the potentially increased frequency of wildfires and hurricanes will continue to be the key factors contributing to rate increases next year.”

Key Findings from the Report

since the start of the COVID-19 pandemic. Some insurance providers and experts, however, argue that the moratorium is also limiting insurance availability in the state, according to Insurance Journal.

“Many of the factors that

The rising costs of vehicle repair and medical expenses, higher driving and accident rates, and the potential for more frequent natural disasters due to climate change are the biggest reasons costs will rise throughout 2023, according to Insurify’s panel of insurance experts.

Nearly half (47%) of drivers reported at least one increase

in their auto insurance rates in 2022, and 19%—nearly one in five drivers—even reported their rates increasing multiple times this year.

Drivers were half as likely to consider purchasing a hybrid or electric vehicle in November as they were in July. However, in November, more drivers considered switching their insurance provider and even dropping their coverage altogether than in July, despite the serious legal and financial risks of driving without insurance.

With prices potentially rising throughout 2023, Insurify’s panel of insurance experts offered advice for drivers looking to save on their car insurance premiums.

Finding a vehicle that matches your budget is key for  Dan Roccato, MBA, clinical professor of finance at the University of San Diego School of Business.

“Boring is better when it comes to saving money on auto insurance,” Roccato said. “Your heart wants a new convertible, but your wallet is happier with an older sedan.”

Source: Insurify

50 JANUARY 2023 AUTOBODY NEWS / autobodynews.com
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WIN (The Women’s Industry Network) opened registration for its 2023 Annual Educational Conference, May 1 -3, 2023, to be held at the WESTIN San Antonio Riverwalk, in San Antonio, TX. Themed “Reimaging Tomorrow,” attendees will see this reflected throughout the agenda of the threeday event that brings education, connection and celebration to collision industry professionals each year. The 2023 Virtual Annual Conference will feature speakers, panel discussions, networking and mentoring, interactive features, celebrating new scholarship recipients, induction of the 2023 Class of Most Influential Women winners, community events and more. The conference cost for in-person member attendees is: $525 by March 1, 2023; $625 for members until April 24, 2023; $650 for non-members, and $175 for virtual attendees. Interested attendees can join WIN as a member anytime for just $95. More details are coming soon, but save the date and register now at thewomensindustrynetwork. site-ym.com/page/Conference For more information on WIN, visit thewomensindustrynetwork.site-ym. com/page/About

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NABC Drive Out Distraction Program Encourages Safe Driving This Holiday Season

NABC members have the opportunity to save lives by driving public awareness about one of the leading causes of traffic collisions today—distracted driving.

more than 2,800 people were killed and an estimated 400,000 were injured in crashes involving a distracted driver.

Those of us in the collision industry know all too well the physical and emotional impact from car accidents. That is why NABC members are in the unique position of taking the leadership role in local communities across the country to educate and urge drivers of all ages eliminate distracted driving.

vehicle controls

Reducing cell phone distractions by setting devices to “do not disturb”

Eliminating in-car interruptions by securing pets, buckling in children and reminding passengers not to distract the driver with inappropriate behavior

NABC members can share the NABC Drive Out Distraction program with their customers and local audiences with a robust tool kit that includes:

From GPS to cell phones, entertainment screens, rowdy passengers and more, just one quick glance from the road can results in a dented fender, a damaged bumper or worse.

The National Safety Council reports cell phone use while driving leads to 1.6 million crashes each year. One out of every four car accidents in the U.S. is caused by texting and driving. According to the NHTSA, in the U.S. in 2018,

How the NABC is Helping

The new NABC Drive Out Distraction program is helping educate drivers and their passengers about reducing the dangers of distracted driving with a national campaign that focuses on:

Preparing for the road trip by downloading directions, checking weather and traffic conditions, setting the radio station and familiarizing yourself with the

Custom-branded counter card with tips for setting devices to “do not disturb” and call to action to take the NABC® “Drive Out Distraction” challenge

Custom-branded web page on NationalAutoBodyCouncil. org with tips for eliminating distracted driving to share via social media, shop web site and email

Digital graphics to use on social media and shop lobby televisions

autobodynews.com / JANUARY 2023 AUTOBODY NEWS 51
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As Luxury Share Grows, New-Vehicle Prices Hit Record High in November

New-vehicle inventory levels are improving, but prices remain elevated. According to data released Dec. 12 by Kelley Blue Book, a Cox Automotive company, the average transaction price (ATP) for a new vehicle in the U.S. in November hit a new record high of $48,681.

November prices rose 0.9% ($422) month over month from October and were up 4.4% ($2,250) from year-earlier levels.

According to Kelley Blue Book calculations, new-vehicle ATPs have been higher than the average manufacturer’s suggested retail price (MSRP), also known as the sticker price, since July 2021. Sales volumes in November were up year over year by more than 11%, but down from October. The elevated prices and high loan rates are likely putting downward pressure on sales.

“The transaction data from November clearly indicates that prices are showing no signs of coming down as we head into the holiday season,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “The mix of available vehicles still favors more expensive models and higher trim levels. In fact, average MSRP

has increased more than average ATP year over year, indicating automakers are still building a richer mix of expensive models and fewer value vehicles.”

According to Cox Automotive estimates, new-vehicle inventory is steadily improving, though some brands have a noticeably larger supply than others.

“Incentives overall are still very low, but consumers who are flexible on make and model may be able to find a good deal at year-end sales events,” added Rydzewski.

Average Prices for Luxury Cars Increase More than $400 in November, Hit Record

Strong luxury vehicle sales have been a primary reason for overall elevated new-vehicle prices. Luxury vehicle share remains historically high, increasing to 18.2% of total sales in November from 17.8% in October. The high share of luxury sales helps to push the overall industry ATP higher. In November 2019, the luxury share of the U.S. market was 16.1%.

In November 2022, the average luxury buyer paid $67,050 for a new vehicle---a record high and up $405 from October. Buyers continue to pay more than MSRP for new

luxury vehicles, although prices are trending closer to or below sticker prices in some luxury segments.

Porsche and Land Rover showed the most price strength in the luxury market, transacting between 2% to 6.4% over sticker price last month.

Luxury brands Alfa Romeo, Audi, BMW, Infiniti, Lincoln and Volvo showed the least price strength, selling 1% or more below MSRP in November.

Average Non-Luxury Car Prices Increase to Record High

The average price paid for a new non-luxury vehicle in November was $44,584—also a record and higher by $330 month over month. The previous record high was recorded in August. On average, car shoppers in the non-luxury segment paid $410 above sticker price, a slight increase from October.

Most non-luxury brands had stable pricing or declines in November. Honda and Kia showed the most price strength in the nonluxury market, transacting between 6% to 8% over sticker price in November. Meanwhile, Buick showed the least price strength, selling 2% or more below MSRP in November.

Electric Vehicle Prices Increased in November and Remained Up Compared to One Year Ago

The average price paid for a new EV increased in November by $1,172 (up 2%) compared to October and was up by 9% compared to a year ago in November 2021. The average new EV price was $65,041, according to Kelley Blue Book estimates, well above the industry average and aligning more with luxury prices versus mainstream prices.

Auto Incentives Offered by Manufacturers Remain at Historically Low Level

Incentives remained stable in November 2022 at 2.2% of the average transaction price. In November 2021, incentives averaged 4.1% of ATP. In November 2019, before the pandemic and when inventory was plentiful, the average incentive package was 10.6% of ATP, according to Kelley Blue Book estimates.

Luxury cars had the highest incentives in November at 4.8% of ATP. Meanwhile, vans, minivans and luxury full-size SUVs had the lowest incentives, all less than 1% of ATP.

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Lupient Kia of Brooklyn Park Brooklyn Park (800) 569-5735 (763) 424-9437 (763) 424-4631 Fax M-F 7am-6pm

Find your local Kia dealership today at www.kia.com

MISSOURI

Lou Fusz Kia St. Louis (877) 221-4151 (314) 595-4942 Fax M, W, F 7am-8pm; Tu, Th 7am-6pm Sat 7:30am-4pm fuszkiaparts@fusz.com www.kia.fusz.com

Napleton’s Mid Rivers Kia St. Peters (888) 816-9729 (636) 926-0683 Fax M-F 7am-6pm; Sat 7am-3pm bprinster@napleton.com pschnare@napleton.com www.midriverskia.com

Suntrup Kia St. Louis (800) 727-8496 (314) 815-3060 Fax M-F 7am-5pm www.suntrupkiasouth.com

NO. DAKOTA

Kia of Fargo Fargo (800) 728-7601 (701) 282-5924 Fax M-F 7am-5:30pm; Sat 8am-5pm

OHIO

Montrose Kia Sheffield (440) 934-6699 (440) 934-5247 Fax M-F 7:30am-6pm bgordon@gomontrose.com www.montrosekia.com

*Kia Genuine replacement parts sold but not installed by an Authorized Kia Dealer are covered for 12 months from purchase date, regardless of mileage, for the part only, and any labor charge is the consumer’s responsibility.

autobodynews.com / JANUARY 2023 AUTOBODY NEWS 53

Contributing Writers

Mike Anderson, Ed Attanasio, Stacey Phillips, John Yoswick, Cole Strandberg

Advertising Sales

Joe Momber, Norman Morano

Office Manager

Louise Tedesco

Digital Marketing Manager

Bryan Malinski

Art

Director

Rodolfo Garcia

Senior Designer

Vicki Sitarz

Accounting & HR Manager Heather Priddy

Permissions Editor

Assistant

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.

©2023 Adamantine Media LLC.

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Hertz

Theft Claims

Hertz Global Holdings, Inc. on Dec. 5 announced the settlement of 364 pending claims brought against the company by customers falsely accused of stealing their rented cars.

The company will pay approximately $168 million by year-end to resolve these disputes, bringing resolution to more than 95% of its pending theft reporting claims.

company that puts the customer first. In resolving these claims, we are holding ourselves to that objective,” said Stephen Scherr, CEO of Hertz. “While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year.

“Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience.”

Hertz does not expect the resolution of these claims to have a material impact on its capital allocation plans for the balance of 2022 and 2023.

The company believes it will recover a meaningful portion of the settlement amount from its insurance carriers.

“As I have said since joining Hertz earlier this year, my intention is to lead a

Source: Hertz Global Holdings, Inc.

www.autobodynews.com

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Ford Motor Co. has secured commitments from two of every three dealers who plan to go all-in on selling electric vehicles, CEO Jim Farley revealed during an interview Dec. 5.

Of the estimated 3,000 Ford dealers in the U.S., 1,920 have enrolled in the voluntary Model e Program for the initial 2024 to 2026 period, the company confirmed to the Free Press.

Customers shopping for electric vehicles will soon see signage that identifies dealers as Model e Certified Elite or Model e Certified. This is significant because it also tells the public the location of fast chargers needed to “fuel up” electric vehicles.

Of those that enrolled:

• 1,659 chose to be Certified Elite with full sales and service capability

• 261 chose to be Certified with full service capability, limited sales and a lower investment cost.

Initially, Ford said its dealers needed to decide whether they wanted to pay an estimated $500,000 to

$1.2 million to install the charging infrastructure to achieve the special certification status. If dealers don’t have charging stations, they can’t service the electric vehicles. A second period of certification will take place in 2027, after Ford has begun releasing its new electric vehicle lineup.

The dollar figures provided were exceptionally conservative, the company has said.

The Model e Certified dealer will have one DC fast-charger starting Jan. 1, 2024, for public use, with two plugs. These dealerships will provide repair and get a limited supply of electric vehicles to sell. The Model e Certified Elite dealer will have two DC fast-chargers for public use and provide full service with access to a full inventory for customer purchase.

“We’re betting on the dealers,” Farley told reporters in September. “We’re not going to direct (them). But we need to specialize. … The main message

I have for the dealers, which I’ve never said before, because I never believed it was true, is that you could be the most valuable franchise in

He and members of his executive team met with reporters between dealer meetings at The Bellagio in Las Vegas, immediately after breaking the news to many of its dealers in the U.S.

Dealers who declined to enroll for 2024 to 2026 will have another opportunity to enroll in 2025.

Super Duty trucks, which have internal combustion engines (ICE), continue to be a key revenue source for Ford. The ICE Age will remain for years to come, even as the industry evolves, Farley has said.

Alabama Goes Electric

Eddie Stivers, president of Stivers Ford, AL, told the Free Press on Dec. 5 that both his dealerships in Birmingham and Montgomery have committed to Certified Elite status because the state is enthusiastically embracing electric vehicles.

“Birmingham is one of the fastest growing EV registration cities,” he said, and the company is building an enormous new dealership facility. In Montgomery, the company primarily serves government and other fleet clients.

When asked about dealers in New York and Illinois that have filed lawsuits challenging the way the

company is unrolling its electric strategy, Stivers said he couldn’t speak to specifics.

“I didn’t find the Ford process to have any pressure associated with it,” he said, as someone who sells 10 different brands.

No other company has worked with its dealers as intensely as Ford, Stivers said. “Communication was second to none. They even went around and engaged, I think, 400 dealers. That’s 15% of the dealer body. I’m just really pleased Ford has been so deliberate about how they’re going to market ... It’s going to be a direct benefit to our consumers.”

He said his third-generation business has more than 400 employees, and being on “this journey” is a time of change for all. He said the investment is well above Ford’s minimum infrastructure requirements, which still fall below Ford’s cost estimate and come in below $500,000.

“We are very excited about electrification. We’ve decided to build out our infrastructure at an exponentially higher level than Ford has requested of us,” Stivers said, still waiting to learn electric utility

autobodynews.com / JANUARY 2023 AUTOBODY NEWS 55
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