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CCC Names Top 3 Auto Industry Trends of 2023 2023 saw a continuation of the multiyear state of industry challenges and changes for the collision repair and insurance markets—one that requires both shops and carriers to explore new ways of operating and delivering on customer expectations. In its year-end report, CCC took a broader look at three key trends that defined the industry in 2023, from the alarming rise in vehicle thefts and vandalism to the intricate impact of labor strikes and the changing dynamics of total cost of repairs.

Crime Bureau (NICB), vehicle thefts remained on the rise in the first half of 2023—up 2% as compared to the first half of 2022. The U.S. saw more than 1 million vehicles stolen in 2022—the most since 2008—and a year over year increase of 7%. Of those vehicles stolen, more than 85% were recovered, including 34% on the same day of the theft. According to CCC data, total losses as a result of theft have exceeded 3% of all total losses since the fourth quarter of 2021, peaking at more than 4% in

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Vol. 13 / Issue 4 / January 2024

REGIONAL NEWS

WCRP Announces 2024 Collision Industry Conference The Wisconsin Collision Repair Professionals (WCRP) announced its 2024 Conference & Trade Show is scheduled for April 4-5, 2024, with a pre-conference gathering April 3, at the Chula Vista Resort in Wisconsin Dells, WI. This annual conference is tailored for a diverse range of attendees, including managers, owners and technicians in the collision industry. WCRP has organized an extensive array of presentations and sessions. Topics covered will range from “Thriving in Chaos” to “Creating Your Desired Financial Future,” addressing both current challenges and future opportunities in the industry. Additionally, a special

Q&A panel will feature insights from experienced shop managers and owners, offering valuable perspectives and advice.

The April 5 schedule is particularly crafted with technicians in mind. These sessions will delve into crucial l CONTINUED ON PAGE 23

REGIONAL NEWS

As CCC continues to monitor this data, it’s clear the auto repair and insurance sectors are navigating a complex terrain marked by significant shifts in consumer behavior, supply chain resilience, and market demands. 1. The Rise in Theft One concerning trend CCC observed this year is the escalating U.S. vehicle theft rates. Despite a high recovery rate, the sheer volume of stolen vehicles poses a challenge for the insurance industry, with domestic pickups being particularly vulnerable. According to the National Insurance

Q4 2022. While many media outlets have focused on thefts associated with Hyundai and Kia, which have contributed to the rise, the data says theft has been widespread regardless of vehicle type and origin. Based on CCC data through Q3 2023, domestic pickups have the highest rates of total loss due to theft—over 6% for each of the past eight quarters. Similarly, NICB reported full-size pickups represented 25% of the over one million vehicles stolen in 2022 (down from 33% in 2021). Despite the high recovery rates for stolen vehicles, claims resulting from l CONTINUED ON PAGE 4

Ford Says Michigan EV Battery Plant Moving Forward, But on Smaller Scale Ford said Nov. 21 it “right-sizing” its investment in its upcoming BlueOval Battery Park Michigan, in Marshall, cutting down job creation projections from 2,500 to 1,700, and planned capacity from 35 GWh to 20. The facility is still expected to begin producing lithium iron phosphate batteries in 2026, the first plant of its kind for Ford, as it aims to lower the cost of EVs. “While we remain bullish on our long-term strategy for electric

vehicles, we are re-timing and resizing some investments,” Ford said, adding it has to balance investment, growth and profitability as it moves ahead. The $3.5 billion plant was first announced in February— along with $1 billion in taxpayerfunded incentives approved by the Michigan Strategic Fund, and another $750 million from the state for site readiness. In September, Ford said it was l CONTINUED ON PAGE 16

INSIDE THIS ISSUE 14

Columnist Mike Anderson: Adding for the Necessary Repair of

Adjacent Panels

Columnist Abby Andrews: How Collision Repairers Can Help Ensure We Have Technicians in 5 Years

Columnist Stacey Phillips: SUN Collision Introduces New Repair Package Designed to Simplify Blueprinting Process

Columnist John Yoswick: What You Need to Consider Before Selling Your Collision Repair Business

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Survey Examines How Frequently Auto Body Shops Bill, Get Paid For Procedures, Expenses By John Yoswick Autobody News

With used car values falling much of the past year, the percentage of collision-damaged vehicles being declared total losses is on the rise— and so too is the percentage of shops being reimbursed for the steps involved in processing total losses. That’s among the findings of a “Who Pays for What?” survey over the summer. “Because the process has continued to become more complex and time-consuming, shops are increasingly billing for the time they spend processing total losses, and rightly so,” said shop consultant Mike Anderson of Collision Advice, who

are seeing shops itemizing the steps involved, such as a repair plan fee, disassembly fee or OEM research time,” Anderson said. “With 93% of shops regularly billing for this added work, it will be interesting to watch how AI impacts total loss processing, identifying total loss vehicles earlier in the process, possibly avoiding many of these fees at the shop, as well as storage charges.”

Removing Coatings from Pinch Welds

State Farm direct repair shops say they are regularly paid for this operation, for example. That compares to just 61% of Progressive DRP shops that say that. Less than 2% of State Farm DRPs say the insurer “never” pays for this procedure, but more than 12% of Progressive DRP shops say Progressive “never” pays for it.

set diagnostic trouble codes (DTCs) that you can’t check for without doing a post-repair scan in conjunction with reconnecting the battery.” On the reimbursement side of the equation, more than half of shops (57%) that bill for the battery reconnect procedures say they are regularly paid to perform them— even while about 1 in 4 shops have never sought to be paid for these OEMspecified procedures.

Just under 61% of shops taking the More on OEM Procedure Research “Who Pays” survey this past summer said they are paid “always” or “most of In terms of OEM procedure the time” for removing coatings from research more generally, More than half (56%) of shops say they research the pinch welds prior to mounting the three out of five shops OEM procedures involved in reconnecting a battery vehicle on a frame machine—virtually now say they research the all or most of the time, according to a “Who Pays for the same percentage that procedures “always” or What?” survey have said that was the case “most of the time” when for the past eight years. they write an estimate or “We have seen a lot of Anderson said he is concerned repair plan, according to the survey positive change over the about the number of photos he sees findings. That percentage has inched years in many of the noton shops’ social media showing up slowly year after year since 2017, included labor procedures vehicles being anchored in ways when 53% said they were conducting asked about in the ‘Who not approved by the vehicle’s such research regularly. Pays’ surveys, so results manufacturer. About half the shops said an like this one baffle me,” “I have not found any vehicle estimator or repair planner was Anderson said. “I would manufacturer or any frame primarily responsible for conducting encourage anyone who equipment company that says it’s that research, while about 1 in 3 is not being paid for this OK to secure a fixture clamp to shops (34%) said the work was More shops are getting reimbursed for the steps taken to research it through the pinch welds without first removing done jointly by technicians and to process total losses. Credit: Shutterstock OEMs, I-CAR or any frame all undercoating and seam sealer,” estimators. equipment companies. Ask he said. “But also keep in mind, not The survey asked whether shops conducts the quarterly “Who Pays” if it is okay to mount a fixture clamp all vehicles may be anchored on the include a separate line item charge surveys. “Of course, some insurers over a pinch weld covered with pinch welds. It is critical that shops do for the subscription fees associated are pushing back. In some cases, undercoating or seam sealer. You will the research to determine what is and with accessing OEM repair insurers have turned to using bill find that the answer is a clear: No, it is not permitted by the OEM for a safe procedures. (Administrative fees are collection agencies in an attempt to isn’t.” and proper repair on each vehicle.” prohibited under California Bureau go after shops after the fact to recoup Failure to remove the coatings of Automotive Repair regulations.) Added Steps When Reconnecting amounts paid. While the industry increases the likelihood the vehicle About 3 in 10 shops (29%) nationally Battery continues to discuss the best way to can slip when the technician is say they always or almost always Unlike the pinch weld procedure, bill for this, from a legal perspective pulling it, Anderson said, and that can include such a fee. About one-third other items asked about in the shops should have an attorney review cause further damage or adversely charge a fee when needing to access surveys have seen big changes in just their authorization forms to ensure impacting the accuracy of the an information source for which a year or two. When asked how often they are protected.” measurements. the shop doesn’t have an annual repairers are researching The survey, completed by more subscription. the OEM procedures than 500 shops around the country, More than 1 in 3 shops (37%) say required after reconnecting found only 7% of shops said they they never pass along a charge for a battery in 2023, 34% said never seek to be paid for total loss repair information subscription fees, they do it “all the time”—up processing. That’s down from 14% in but that’s down significantly from from just 20% in 2022—and the same survey a year earlier, and far 42% in 2021 and 57% back in 2019. another 22% said they do it below the 30% of shops that never Anderson said he will resume most of the time. billed total loss processing fees in hosting webinars in 2024 that show These procedures, 2015. how to navigate the automakers’ depending on the The “Who Pays” surveys ask shops repair information websites, but automaker, can include how regularly they are paid by the several such webinars, related initializing sensors or eight largest national insurers for to the VW, Nissan and Subaru clearing trouble codes. various procedures they perform. information portals, are available on A growing percentage of shops say they are paid regularly by the eight largest national insurers when “I was analyzing the The percentage regularly being paid the Collision Advice YouTube channel billing for processing total loss vehicles procedures called for by for total loss processing has been at www.youtube.com/channel/ one Asian OEM recently increasing. Eight years ago, just 46% UC1021mCCCR_qxOJoVtjNEbg. and found 11 procedures required of shops said they were paid “always” “Shops need to understand that Shops can visit www.crashnetwork. after reconnecting the battery,” or “most of the time” when billing for their technicians must be doing this,” com/whopays to take the January Anderson said. “Researching total losses, but today 75% of shops he said. “Who Pays” survey, which focuses procedures needs to happen every say they are. Segmenting the data by insurance on not-included refinish labor single time on every single vehicle. “Rather than simply billing an company does show some striking procedures, or to download results of Disconnecting the battery often will ‘administrative fee’ for this work, we differences, however. Nearly 91% of prior surveys. 2 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

Contents

COLUMNISTS Mike Anderson Adding for the Necessary Repair of Adjacent Panels �� 14

REGIONAL NEWS 3 Killed, 1 Injured in Ohio Shop Explosion �� 32 Chicago Auto Show 2024 Announces Dates, Exciting Features �� 22 Crash Champions Acquires Chicago MSO �� 27 Ford Says Michigan EV Battery Plant Moving Forward, But on Smaller Scale �� 1 Indiana CARSTAR Serves Lunch to Thank Local First Responders �� 28 Michigan Community College Launches Auto Apprenticeship with Local Dealership �� 10 Minnesota Owner Named Maaco Cup

Award Winner �� 24 Missouri Auto Shop Owner Faces Felony Charges in Alleged Scam �� 30 Missouri First Responders Learn New Rescue Skills Through NABC F.R.E.E. Program �� 33 Straightaway Tire & Auto Acquires 2 Repair Shops in Minnesota �� 37 Tim Wright Wins Maaco’s Tony Martino Legendary Hall of Fame Award �� 26 WCRP Announces 2024 Collision Industry Conference �� 2

NATIONAL NEWS $1 Billion Lawsuit from Insurers Over Stolen Hyundais, Kias Moving Forward �� 38 2023 SEMA Show Exceeds Attendees’ Expectations �� 39 2024 WIN Conference Registration Open �� 10 AirPro Approved for Ford Programs 16 Biden Administration Mulls Over EV Tax Credit Reprieve for Automakers 26 Bosch Joins CAPA’s Verification Program �� 29 CCC Names Top 3 Auto Industry Trends of 2023 ��1 CIECA Announces New Member 1Source ADAS �� 22 CIF to Host Annual Charity Gala for Crisis Relief �� 28 Employers Benefit from ASE EntryLevel Certification �� 27 Fixing ADAS Systems Makes Up Over a Third of Collision Repair Costs �� 34

Ford Cuts Dealer EV Requirements Again �� 32 FTC Implements CARS Rule to Combat Auto Sale Scams �� 29 Global Light Vehicle Sales Predicted to Rise 2.8% in 2024 �� 37

Abby Andrews How Collision Repairers Can Help Ensure We Have Technicians in 5 Years �� 12 Stacey Phillips KECO Body Repair Products Introduces New Glue Pull Repair (GPR) Tools and Systems �� 18 SUN Collision Introduces New

Repair Package Designed to Simplify Blueprinting Process �� 11 John Yoswick A Look Inside the Collision Repair Industry in the UK ��8 Survey Examines How Frequently Auto Body Shops Bill, Get Paid for Procedures, Expenses ��2 What You Need to Consider Before Selling Your Collision Repair Business ��6

Index of Advertisers Audi Wholesale Parts Dealers �� 37

Luther Bloomington Acura-Subaru �� 15

BMW of Des Moines �� 27

Luther Brookdale Mazda �� 12

BMW Wholesale Parts Dealers �� 33

Maplewood Toyota �� 18

Borton Volvo �� 26

Mazda Wholesale Parts Dealers �� 36

Buerkle Honda �� 28

Mercedes-Benz Wholesale Parts Dealers ��39

Certified Automotive Parts Association �� 6

MINI Wholesale Parts Dealers �� 32

Classic BMW MINI �� 28

MOPAR Wholesale Parts Dealers �� 25

Odometer Fraud Surges 14% Nationally �� 24

Classic Chevrolet �� 17

Morrie’s Brooklyn Park Subaru �� 14

Road Risk Alert: It’s the Most Distracted Time of the Year �� 36

Classifieds �� 38

Morrie’s Minnetonka Mazda �� 27

Columbia Hyundai �� 14

Nissan/Infiniti Wholesale Parts Dealers � 37

Ford Wholesale Parts Dealers �� 30

NorthAmerican Bancard �� 10

Gandrud Parts Center �� 9

Pro XL Refinish Solutions �� 11

Gerald Kia �� 16

Richfield Bloomington Honda �� 24

GM Wholesale Parts Dealers �� 31

Rydell Chevrolet-Buick-GMC �� 13

Honda-Acura Parts Dealers ��.20-21

Sears Imported Autos, Inc �� 22

Hyundai Wholesale Parts Dealers �� 29

Spray Booth Products �� 5

Jake Sweeney Chevrolet �� 24

Subaru Wholesale Parts Dealers �� 34

Kelly BMW �� 22

Toyota Wholesale Parts Dealers �� 39

Ken Ganley Subaru North Olmsted �� 23

Varsity Ford �� 8

Kia of Lansing �� 18

Vin Label Shop �� 4

Kia Wholesale Parts Dealers �� 35

Volkswagen Wholesale Parts Dealers �� 32

LaFontaine Buick-GMC-Cadillac �� 26

Willis Volvo �� 28

Snap-on Showcases John Bean Tru-Point, More Award-Winning TSS Products at SEMA �� 16 State Farm Leads in Auto Insurance Affordability Across 29 States �� 23 Tesla Delivers First Cybertrucks to Customers During Live Event �� 30 The End of the Road for Falling Gas Prices? �� 33

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Industry Trends Of 2023 6 attempted thefts and other forms of vandalism are also on the rise. CCC repairable claims volume for vandalized vehicles was up almost 22% year-overyear in 2022 and is on pace to increase 10% in 2023. Total losses as a result of vandalism increased by 10% in 2022 and are on pace to see an increase of over 25% year-over-year. Vehicles produced in Asia accounted for 48% of all repairable vandalism claims in 2020; that share increased to over 60% in 2022 and is over 68% through Q3 2023. Asian autos 4 years or older have shown the greatest propensity for vandalism, which can be attributed to commonality and social media triggers which have prompted and perpetuated auto thefts. Theft of catalytic converters also surged this year, leading to widespread concern and preventive measures. NICB reported 64,701 catalytic converter thefts took place in 2022; this is almost 4X the count in 2020. Per their report, catalytic converters contain valuable rare earth metals (platinum, rhodium and palladium) and can fetch $50-250 or, for one from a hybrid, up to $800. CARFAX reported as many as 153,000 catalytic converter thefts might have occurred in 2022—almost 90,000 more events occurring than claims reported (likely due to vehicles not having applicable insurance coverage for the loss or insureds electing against filing a claim). Based on CCC’s data, more than 70% of catalytic converter claims in 2022 were for vehicles 7 or more years old; of those, 8.6% were total losses. Through the first half of 2023, 69.9% of catalytic converter claims were for vehicles 7 years or older, with 11.8% being deemed total losses. The average repairable catalytic converter claim had an average total cost of $1,415, made up primarily of replacement parts. Numerous actions are being taken to prevent catalytic converter theft in legislatures and law enforcement across the county. Vehicle owners can prevent catalytic converter theft by being more aware of where they park, including well-lit areas and garages, and having VIN numbers etched onto their vehicle’s catalytic converter which can also be painted with bright high-heat paint. A large national insurance carrier recently reported that catalytic converter thefts were down about 38% in 2023. However, it is unclear how much of that decline is related to an actual decrease in catalytic converter thefts, as this is based on filed claims. 2. The Impact of Strikes on Suppliers The repercussions of the recent UAW strikes also rippled through the industry,

underlining the critical role of suppliers and emphasizing the need for a more resilient supply chain. Based on historical experience, the strikes could result in increased cycle times over the next few months and potential nonOEM part price increases. Beyond the short-term impacts, the recent strikes highlighted the importance of suppliers. Suppliers account for 900,000 jobs in the automotive industry—six times the number of UAW workers at Ford, GM and Stellantis combined—and represent 2.5% of GDP. At the onset of the strike, concerns about the impact to suppliers and long-term effects on the supply chain were voiced. Gone are the days of raw material being transported into Michigan auto plants and seeing thousands of automobiles come out each day. More efficient, distributed operating models opened the door to the modern, global supply chain and the merits of on-time delivery. However, as we saw during the pandemic, this model is not immune to market pressures. Of the over 11,000 workers laid-off because of the UAW strikes, more than 3,400 were from suppliers. In context, the strikes resulted in $10.4 billion in economic losses and underscored uncertainty in the automotive industry. Suppliers accounted for almost a third of the economic losses from the strike; current estimates put the impact of strikes on suppliers of $3.3 billion. At the time of this writing, UAW workers have ratified contracts with Ford, GM and Stellantis. Honda, Hyundai, Nissan, Subaru, Toyota and Volkswagen have all increased wages for their U.S. plant workers on the heels of the aforementioned agreements. 3. The Vehicle Repair Cost Bubble In the auto collision segment, total cost of repairs (TCOR) experienced subtle fluctuations this year, influenced by factors like vehicle age mix and economic variables. CCC’s average TCOR has exhibited a modest increase in 2023, +4.6% through Q2, following the double-digit increases in 2021 and 2022 (+10.2% and 12.4% respectively). Only one of the key drivers of TCOR—labor—has had a major impact on TCOR thus far in 2023, while parts costs have remained relatively flat. Beneath the surface of these highly aggregated numbers lurks a possible cause for concern for the coming years—increases in new vehicle sales and a shift in vehicle age mix. S&P Global Mobility reported the average age for light vehicles was 12.5 years. This comes following a year that saw the lowest volume of new vehicle sales since the Financial Crisis (2007-2011), per the Federal Reserve Bank of St. Louis. Since 2018, CCC has seen vehicles seven

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years or older account for an increasing share of overall repairable claims: from 35.5% in 2018 to 44.8% in 2023. Across all loss categories, the average TCOR is $4,451 through Q2 2023. Vehicles seven years or older have an average TCOR of $3,516 while the average TCOR for vehicles six years or newer is $5,211—almost $1,700 more than vehicles seven years or older. In other words, the aging vehicle pool is temporarily containing the average TCOR from ballooning even further. Had the vehicle age mix remained consistent with 2018, the average TCOR would currently stand at $4,657, an additional +4.6% greater than current. A few factors that exacerbated vehicle maturity over the past few years are decreased miles driven, new vehicle production, new vehicle costs and auto financing costs. Miles driven continue to recover and are +2.4% year-over-year through August. While work arrangements are still in flux, companies continue to reconsider return-to-office protocols. Average new vehicle prices remain around $48,000 with average APRs currently ranging from 7.4% to over 9%. 2022 new vehicle sales were at their lowest since the financial crisis, bottoming out in 2009 when 10.4 million new cars and light trucks were sold. New vehicle sales did not return to prerecession levels, until 2014. An average of 17.1 million new cars and light trucks

sold were annually between 2014 and 2019. As new vehicle sales volume continues to increase, the mix of older vehicles should begin to recede in favor of newer vehicles, though this could take 5-7 years to be reflected in the vehicle mix. At a modest 5% year-overyear increase in new vehicle sales, we might not expect to see pre-pandemic sales volumes until 2026. As we enter 2024, pay close attention to vehicle age mix shifts to stay ahead of the curve. Preparing for 2024 As we approach 2024, these interconnected industry themes paint a vivid picture of the current state, urging stakeholders to adapt and innovate in the face of change. The insights gleaned from these year-end trends can help shops, carriers and even policymakers toward more informed decisions. Acknowledging the challenges posed by theft, supply chain disruptions and shifting market dynamics is the first step toward devising proactive strategies. By staying vigilant and agile, the industry can harness insights to fortify its foundations, ensuring a resilient and prosperous future. In the coming years, vigilance, adaptability and a keen understanding of emerging trends will be paramount, enabling shops, carriers and even policymakers to navigate the everchanging landscape with confidence.

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What You Need To Consider Before Selling Your Collision Repair Business By John Yoswick Autobody News

said Laura Gay of Consolidation Coach. “They can get a box anywhere. They can’t get the people.” Cole Strandberg of Focus Investment Banking agreed. “They care about where the business is today, certainly, but they care even more about where the business can go, and that

said almost without exception, sellers want to do what’s best for their employers. “But just be careful what you’re promising people, because you can’t guarantee your employees what’s going to happen afterwards,” he said. “There’s some things you can’t control. But what you can do is incent

John Walcher of Veritas Advisors has a question he usually asks first when a collision repair business owner approaches him about helping them sell their business: “Can you take a vacation?” “Not just a weekend or a long weekend, not even one week,” Walcher said. “Can you take two or three weeks? You’ve got to be able to go at least a full payroll cycle, hopefully two, separated from your business. If you can, you might be ready to sell.” Walcher was one of a panel of consultants involved in mergers and acquisitions within the industry A panel of merger and acquisition consultants talked about industry consolidation during the most recent Collision Industry Conference. discussing consolidation during the Collision Industry Conference (CIC) in Las Vegas during SEMA week. management team is the engine that’s your employees to give it a shot. You Walcher said the shop’s corporate going to get them there,” he said. “A can have retention bonuses. You structure is another thing owners big part of selling your business is the can say, look, I know this may not need to consider well ahead of a sale. story, and the management team is be what you want, but there will be “Some people have C corps, and the focal point of that story.” more opportunities within a larger with C corps, if you sell, there’s going Panel moderator Frank Terlep entity that owns [the company]. So to be double taxation,” asked if there was any truth whether 50% leave or whether a very Walcher said. “So you might to what he sometimes hears small percentage leave, a lot of it is want to convert to an S corp, in the industry: that within individual decisions. But if you’re a but if you do, it’s got to bake months of a collision repair seller, you can actually influence that for 10 years to get the full tax business being sold, as before you do a transaction.” benefit. So one of the key much as 50% of the staff messages that I’m sure we have left the company. all have to our clients is: plan “It really depends on the ahead. It’s not something buyer,” Gay said, saying that you want to find out 50% of her staff were gone John Walcher said if about just months before a shop owner can’t within four months after you want to close a deal. get away from the she sold her shops in 2015. Sometimes it takes years business for several “The harsh truth is that it before you’re really ready to weeks at a time, it does happen. But there are may be an indication hit the market.” also some consolidators the business isn’t Walcher said while out there that really are ready to be sold. purchase prices are very much focused on sometimes referenced retention. They’re using in terms of multiples of retention bonuses and EBITDA (earnings before other strategies to try to interest, taxes, depreciation keep the staff, because they and amortization), looking at realize how important it is. If multiples of annual revenues they don’t have the people, offers “a little better applesthey can’t turn the revenue.” to-apples type comparison.” Walcher of Veritas “So watch out when Advisors said he, too, has those multiples of EBITDA seen large turnover of staff Cole Strandberg said conversations come up,” there’s an emotional after a company is sold. Walcher said. “They’re aspect of selling “Sometimes it’s because negotiating tools, but I your business that the buyer is overwhelmed,” assure you nobody who shop owners should he said. “They’ve got too values and does a lot of deals expect. many deals going, and on the buy side is buying integration doesn’t go as based on multiples of EBITDA.” smoothly as it could. Sometimes it’s a cultural shift. If you are a fiercely Retaining Your Team independent shop…and now you sell Several panelists spoke of the to a company that’s DRP focused, importance of building and retaining there’s going to be a cultural change not just a good management team in that shop. It’s going to affect your www.capacertified.org but the production team as well. valuation, and it’s going to affect how “The consolidators, or the private many people stick around.” equity firm, are buying the people,” David Roberts of Focus Advisors

It Can Be Emotional Strandberg pointed to another aspect of the process. “Selling your business is emotional too,” Strandberg said. “Going through that process is very much like dating. If you have a team that has a strong culture, you care about their future, and you’re going to want to make sure your values are shared with your next partner or buyer. I think that’s something to keep in mind. The numbers are very, very important, but so is that aspect.” Terlep, who said he has sold multiple businesses through his career, agreed. “It’s your baby, right,” Terlep said. “But at the same time, you go into business, in my opinion, to sell a business over time. Hopefully you don’t plan on dying in your business.” “And that’s a very logical way of looking at it,” Strandberg responded. “But the truth is, especially in industries like collision repair, many owners started without an end in mind. In my instance, my family sold their business. I grew up around the business, viewed it as my big brother. So when you talk about it in those terms, you realize the level of emotion that goes into that.”

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A Look Inside the Collision Repair Industry in the UK By John Yoswick Autobody News

The challenges faced by shop owner Martin Shiels of ECS Accident Repair in Edinburgh, Scotland, will sound familiar to U.S. shops. A body technician— one of two employed at the shop for more than 14 years—recently left, and Shiels was struggling to replace him while also getting an apprentice from the local college started within the shop. He is still working to get set up to repair electric vehicles, and still must sublet most ADAS work. Prior to Brexit, Shiels said, he could receive Volkswagen parts, for example, from Germany overnight; post-Brexit, truck drivers might sit for days to get through customs, or shippers wait until they had a full container, so parts delays have become common.

“It’s how we deal with people—staff and customers—that’s very important, to have an ethical standard,” Shiels said. Not far from Shiels’ shop is QA Vehicle Solutions, where between the shop and massive back lot, nearly 700 vehicles are in some stage of the collision repair process. It’s a big change from the early days of the pandemic, when the shop was completely shut down, with all of its 54 employees sent home for two months.

QA Vehicle Solutions employs 54 people. About 60% of its business is fleet work.

Shop owner Martin Shiels said the ethical standard guiding his business applies to his employees and his customers.

The shop handles insurance claims on a “non-approved basis,” which means Shiels can charge higher labor rates, about $67 (USD) per hour compared to about $48 paid to insurer-approved shop. “We can demand that because of our [customer] reviews and so forth, people want to come to us, but the insurers will try to steer them, as they will do in the States as well,” Shiels said. He’s baffled by other shops’ willingness to offer the steep parts, labor and materials discounts required for insurance approval or to join one of the collision repair franchise operations. But there also are some key differences from the U.S. in day-to-day operations at ECS. Paying for Audatex estimating—which dominates the market there—and access to “the pipe” to communicate with insurers “isn’t viable for us,” Shiels said. “So what we do is we hire a contractor. When we have a damaged car, we’ll strip it, we’ll image it all up, and we’ll send that on through an app. They will compile the Audatex estimate and send it down the pipe to the insurer. And they’re given parameters to do the negotiations for us.” But differences aside, like most small business owners, Shiels said what’s most important to him is something listed prominently on a sign in the shop’s office: “Honesty, integrity and fairness.”

The company is the largest singlesite repairer for Enterprise Rent-A-Car in all of Europe—fleet work accounts for about 60% of the shop’s business— and that type of work “went right off the edge of a cliff” at the start of the pandemic, shop owner Alan Arthur said. It was an abrupt shut down for a business in just its third year at that time. But the shop eventually brought all of its employees back. Today, tourism in Scotland is beyond pre-pandemic levels, and Arthur’s shop’s car count is as well. “It’s a market we prefer compared with insurance,” he said of fleet work. “We don’t have to get involved in courtesy cars”—the replacement vehicles UK shops doing insurance work must provide for customers, often without compensation from the insurer—“and we don’t have individual clients with individual needs on individual vehicles. We deal with one fleet company.” Cash flow is more challenging on insurance work as well, Arthur said, because invoices go through accident management companies that assign the work and process payments on behalf of the insurance companies. Another key difference in the industry in Scotland compared to the U.S. is calculations for paint materials are most often determined through an Audatex system based on the size of the panels. Aside from such differences, Arthur and his wife Elaine, who founded the company together in 2017, say the biggest challenge they have is the one most often cited by U.S. shop owners as well: staffing. Elaine Arthur said Thatcham, an insurer-funded vehicle research organization in the UK, has an academy the shop uses to help locate and train apprentices. “They’re looking at how they can improve that apprenticeship program,

8 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

to make it quicker to actually get kids through,” she said. “In this country, it’s a four-year apprenticeship. Whether you want to be a painter or a panel beater, the first two years you have to do both disciplines. Now if you’ve got a painter who’s really not interested in being a panel beater, you’re lucky to keep them two years.” She said the academy may put an assessment in place to allow students, once they get that certificate after 12 months, to specialize in either paint or body work.

Alan and Elaine Arthur operate QA Vehicle Solutions, the largest single-site repairer for Enterprise Rent-A-Car in all of Europe.

Steven Frampton’s experience as an autobody instructor at Edinburgh College in Scotland also sounds quite similar to the challenges his counterparts in the U.S. face. The program has about 28 students enrolled, ages 16 to 31, as well as some apprentices sent into the

program by shops that employ them. But the school, like many in the U.S., struggles to get qualified students into the program, those who understand that body and paint work differs from mechanical, and aren’t just signing up

Steven Frampton, an auto body instructor at Edinburgh College in Scotland, said he’s surprised there are not more students interested in the program.

because there aren’t other courses available or because they’ve been sent over by parents or career or social care workers who don’t understand the basic aptitudes needed. Framptom said he can’t understand why the pool of students coming into the program is so small. “It is bizarre, because it’s probably the highest paid and most in-demand job [among the trades],” he said. “Still, the biggest drive for me is taking one of these kids from an entry-level course, getting them into the full program and then getting him into [a shop],” Frampton said.

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Michigan Community College Launches Auto Apprenticeship With Local Dealership Washtenaw Community College (WCC) in Ann Arbor, MI, received approval from the U.S. Department of Labor (USDOL) to launch an automotive service technician apprenticeship program in partnership with Toyota & Subaru of Ann Arbor. This initiative is the first of its kind in the region, and opens the door for WCC to develop similar apprenticeship programs with other companies for any USDOL approved occupation. “Our partnership with WCC will continue to serve their mission of making a positive difference in people’s lives through accessible and excellent educational programs and services,” said Michael Spiegl, dealer principal at Toyota & Subaru of Ann Arbor. The apprenticeship program, lasting two years, allows participants to earn a living wage that increases as they acquire new skills. Apprentices will undergo 2,000 hours of annual on-the-job training at either Toyota or Subaru of Ann Arbor and are required to

complete five classes as part of the automotive service technician certificate at WCC. Kyrsten Rue, manager of experiential learning and employer relations at WCC’s Center for Career Success and Office of Apprenticeship, highlighted

program extends beyond the immediate partnership. USDOL Registered Apprenticeship programs, like this one, are known for their structured approach and successful outcomes, with 90% of apprentices finding employment after completion. They are unique in benefiting from both federal and state funding. WCC’s commitment to a well-rounded education that combines classroom learning and hands-on experience aims to prepare apprentices for successful careers in the automotive industry. This approach addresses workforce shortages in high-priority sectors and supports job quality improvements. “The apprenticeship model is proven to be a great asset to companies who choose to utilize, invest and grow their talent,” said Paul Thomas, apprenticeship coordinator at WCC. For more information, visit wccnet.edu/apprenticeship.

the transformative nature of this approval. “This enables us to directly support companies, certify new apprenticeship programs, and help manage, track and document each apprentice’s progress,” she said. The significance of this

2024 WIN Conference Registration Open The Women’s Industry Network (WIN) announced registration is now open for one of the collision repair industry’s most anticipated leadership and management forums: the 2024 WIN Conference. Next year’s conference, featuring the theme of “Dream Out Loud,” will be May 6-8, 2024, at the Hyatt Regency Newport Beach, CA. WIN members registering by the March 1 early bird deadline will receive a discounted rate of $575; after that, the member cost increases to $680. The ticket rate for non-members is $725. Registration for inperson attendees closes April 24. Anyone preferring to join virtually may do so for $250. Interested attendees can join WIN as a professional member any time for just $95, and then take advantage of the discounted attendance if they join before March 1. For more information, visit thewomensindustrynetwork. site-ym.com/page/ Conference.

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SUN Collision Introduces New Repair Package Designed To Simplify Blueprinting Process By Stacey Phillips Autobody News

To help collision repair facilities streamline the blueprinting process and prepare fast and accurate estimates, SUN Collison has introduced a new software feature, Repair Package. The company, a brand of Snap-on, launched the new feature during the 2023 SEMA Show in November in Las Vegas, NV. Chris Bonneau, SUN Collision’s business manager, said the Repair Package provides comprehensive documentation to support estimates and insurance claims. “It is a huge time-saver for service writers/estimators, allowing them to produce a foolproof repair plan in seconds, and eliminates the need for manual data entry,” explained Bonneau. “It’s the first comprehensive solution of its kind.” SUN Collision software, introduced to the collision industry in 2019, provides complete and current OEM repair information and procedures for body and frame, paint and finish, and materials for all vehicle makes and models. With the new feature, users can create a comprehensive repair package that incorporates all OEM

procedures, illustrations, interactive wiring diagrams and required OEM parts and part numbers. It integrates with shops’ estimating systems, centralizing repair information and estimating data. Bonneau said the product was designed to be user-friendly and create more efficiencies for body shops.

displayed. Bonneau said the result is a complete work package, including 100 to 1,000 pages available in printed and PDF formats. “Everyone is spending time looking for the OEM procedures and SUN Collision’s Repair Package makes it so much easier,” he said. Time-saving tools include a hyperlinked table of contents to find information quickly, and the 1Search Plus search engine, which simplifies search-and-navigation for a specific vehicle and presents the relevant information in a card-based graphical layout. Bonneau said the Repair Package also consolidates Advanced Driver-Assistance Systems (ADAS) information in a single location, making it easier for shops to diagnose, Chris Bonneau, left, SUN Collision’s business manager, calibrate and repair vehicles and Ross Whiteley, right, product manager, at the company’s booth during the 2023 SEMA Show. equipped with ADAS. The Repair Package “Everybody wants to do more leverages industry standards business and get more cars out faster,” established by the Collision Industry said Bonneau. “When shops can find Electronic Commerce Association the information they need, they can (CIECA). Bonneau said these standards repair vehicles quicker.” provide a common language and When users click on an estimate framework that facilitate the exchange line item, the information for known of data between collision estimating part numbers and other details are systems, insurance companies and

other stakeholders involved in the repair process. Prior to being launched, the Repair Package was beta-tested with body shops. Bonneau said they received valuable feedback that was incorporated into the product to ensure it was user-friendly and met their requirements. The software’s database is kept current throughout the year with ongoing updates and repair information. SEMA Show attendees had the opportunity to take part in a Repair Package product demo during the event. Show attendees who participated in the demo were entered into a raffle. Andrea Berczel of Heritage Collision in Ann Harbor, MI, won a Samsung Galaxy Tablet S9 with a military-grade cover. Overall, Bonneau said the response was very positive to the new software package. “It’s really going to reduce stress by helping technicians find what they need quickly,” said Bonneau. “A detailed repair plan and documentation leads to less supplements, helps shops get paid for the work being done and reduces liability.” For more information, call 877-8401973 or visit suncollision.com.

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How Collision Repairers Can Help Ensure We Have Technicians in 5 Years By Abby Andrews Autobody News

A panel of experts—along with several current students—came together during the 2023 SEMA Show to talk about what the collision repair industry needs to do to attract and retain the new technicians it will need over the next several years. The panel was part of the Society of Collision Repair Specialists’ Repairer Driven Education series. Jeff Wildman, manager of the talent attraction program for BASF, moderated the discussion, while the panelists included Jennifer Maher, CEO of the TechForce Foundation; Donna Wagner, vice president of industry and media relations for ASE; Laura Lazano, professor of collision repair and automotive department cochair at Contra Costa College in San Pablo, CA; and Brandon Eckenrode, executive director of the Collision Repair Education Foundation (CREF). “We need almost 1 million techs in the automotive industry by 2026, and 113,000 in collision repair,” Wildman said. Before the discussion began, Wildman introduced five students who attended the SEMA Show as winners of a contest administered by BASF and the TechForce Foundation’s Techs for Tomorrow scholarship program. The students also each received a $2,500 scholarship toward their continued education. The students shared a bit about their reasons for pursuing a career in collision repair, and what they hope to accomplish. Victoria Callowhill, of Frisco, TX, is a student at Collin College, aiming for a career in restoration and collision repair. She said she wants to create generational wealth for her daughter, as well as reach younger girls to let them know there are so many places they can go in the industry. Antonio Diaz, of Chicago, IL, a student at Kennedy-King College, wants to be a refinisher. He said he wants to work somewhere where he is “able to love what I do, which is painting, and feel like my work is appreciated.” Wendy Vicente, Greeley, CO, a student at Aims Community College, is focusing on becoming a painter, and wants to “stay in a shop that appreciates my work.” Jesse Manuel, of Greeley, CO, is also a student at Aims Community College. “I want to make a name for myself, and I’m just starting my foundation,” he said. Abraham Martinez, of Houston, TX, is a student at Universal Technical Institute in Houston. “I want to work somewhere management isn’t just focused on

getting another car in or out, but they truly care for technicians,” he said. Wildman then turned to the panelists to talk about how the industry can make sure those students — and their peers — find what they’re looking for in a career.

what they do matters.” “They’re really after the experience,” Lozano said. “Money is important, but students don’t have mortgages—they have options. They leave employers because they don’t feel valued or challenged.”

Five students who attended the 2023 SEMA Show spoke during a panel discussion on the technician shortage. Jeff Wildman of BASF, far left, moderated the panel. The experts included, seated left to right, Jennifer Maher of the TechForce Foundation, Donna Wagner of ASE, Laura Lazano of Contra Costa College in San Pablo, CA, and Brandon Eckenrode of CREF. The students included, standing left to right, Victoria Callowhill, Antonio Diaz, Wendy Vicente, Jesse Manuel and Abraham Martinez.

Engaging with Schools Eckenrode said when he talks to schools with successful collision repair programs, a lot of it comes down to how involved local repairers are, which can include volunteering on the school’s advisory board— a great way to help direct what gets taught in the program—hosting students at their shop and participating in career fairs. Lozano agreed: “My school has a very strong relationship with the advisory committee and local businesses, as well as support from CREF,” she said. “It’s a multi-faceted circle of collaboration.” Wagner said ASEeducationfoundation. org has resources for collision repairers who want to get involved with local schools. Eckenrode also recommended connecting with school counselors, “because they play gatekeeper in giving students direction,” he said. Laying Out a Career Path Lozano said the students who spoke at the beginning of the session made it very clear they all “have a passion for working with their hands, and they want a career to foster that passion, and be treated and paid fairly.” Young people want a career path that shows the steps they need to complete—like training, certifications and skills demonstrations—to “level up” at work. “A lot of employers don’t have that information for them; they say, ‘Here’s the job, when I think you’re ready I’ll move you up,’” Maher said. “Show you care about their future. That’s huge.” What New Technicians Look For Maher said Gen Z is “going to look at pay; that’s always important. But they want to wake up every day and feel like

12 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

Wagner said it’s also important to let the younger generation know it’s OK to fail—even expected, because no one has ever not failed along the way. Mentoring New Technicians Mentorship is important, Lozano said, so students and new technicians have someone to help them achieve technical skills and work through failures.

“Being mentored by a technician was one of the best times, not being shamed for mistakes I made,” Lozano said of her own experience as a student. Wagner said shop owners need to “make sure it’s the right mentor”---not a cynic who might turn off the student to continuing as a technician. Students should also get help gaining certifications and building skills, not just given a broom to push around the shop floor. Final Thoughts “This is a technician-based industry,” Lozano said. “We all can do a better job empowering them. They’re the ones who will ensure we have techs in the next five years, because they will share info and transfer skills on the shop floor.” Maher recommended nominating a technician for a Techs Rock Award to show they’re valued. Nominations are open through Jan. 14 at TechForce.org/ TechsRock. “Connect with your local school; that’s the first step,” Wagner said. “There’s ownership in participating in what we’ve talked about today to address the shortage, Eckenrode said. “Get involved locally—it’s a national problem with a local solution.” “Reach out to your local partners, vendors; everyone is willing to help,” Wildman added.

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Mike Anderson — From the Desk of Mike Anderson

Adding for the Necessary Repair of Adjacent Panels An often overlooked estimating item is the repair of adjacent, or “mating,” panels after the removal of a damaged panel. For example, once a rear body panel is removed, the trunk floor will have to be repaired in order to fit the new panel. It’s also not uncommon for taillight pockets, rain gutters, troughs and sometimes even the frame rails to require some repair. Yet our “Who Pays for What?” survey earlier this year found more than 1 in 10 shops acknowledge never having sought to be paid for this work—despite the fact about twothirds of shops report being paid for this “always” or “most of the time” by the eight largest national insurers when it is necessary and performed. I always suggest a four-question process when negotiating for this or any non-included operation. 1. Is it required to fully and properly repair the vehicle? It’s obvious when looking at the condition of these adjacent panels

that it is. It’s virtually impossible to remove a welded panel without causing damage to the adjacent panels or attaching components. 2. Is adjacent panel damage included in any other labor operation? All three of the major estimating system providers agree that it is not. The “labor exclusions” portion of the Audatex/Solera Database Reference Manual, for example, clearly states “repair labor does not include additional labor to repair the replaced panel and/or adjacent panels which may become distorted, burned or damaged by welding, drilling, grinding and straightening.” Similarly, the Motor Information Systems’ Guide to Estimating—the basis for the CCC Intelligent Solutions estimating system—includes a special notation about welding zones and adjacent panels. It says labor operation times do not include time for repair of adjacent panels resulting from normal cutting, welding and

grinding procedures. And Mitchell International’s Procedure Pages lists under “additions to labor times” the repair of “parts adjacent to parts being replaced.” If you don’t have copies of any of these documents from the Big Three estimating systems, you can download them at no charge from the “Estimator’s Toolbox” section of the Database Enhancement Gateway (DEG) website, www.DEGweb.org. 3. Do the estimating system providers provide a pre-determined time or calculation method for this procedure? Again, the answer is no. “The amount of damage can vary considerably depending upon process and technique used by the servicing technician,” the note in the Motor Guide to Estimating states, for example. “Motor recommends these factors be considered before finalizing any repair cost estimates.”

4. If it’s necessary and nonincluded, what is it worth? Though repair of adjacent panel damage is clearly necessary, it is a judgment item. Your experience will help you know how much time the process is likely to take, but you also can help justify your judgment times through some videotaped time studies within your shop. Although I’ve focused here on the repair of the adjacent panels, there may be other non-included procedures and items as well. Refinishing may require blending into these adjacent panels—top and undersides. Time may be needed to match the look of factory seam sealers. Sound deadening pads are often included on these panels, and if damaged during removal of a panel, they will need to be repaired or replaced. In short, damage to adjacent panels can add significant time to a repair, and these steps should be documented on your estimates.

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Snap-on Showcases John Bean Tru-Point, More Award-Winning TSS Products At SEMA by Autobody News Staff In 1920, an engineer from Milwaukee named Joseph Johnson and his co-worker, William Seidemann, designed a ratcheting attachment to help make work easier for professional mechanics. That development led to the creation of the Snap-on Wrench Company. Over the years, the business’s name was shortened to Snap-on and the product line grew. Today, the brand includes a variety of tools, equipment, diagnostics, repair information and systems solutions. During the 2023 SEMA Show in November in Las Vegas, Snap-on showcased its new, advanced version of the award-winning John Bean® TruPoint™ Advanced Driver Assistance System (ADAS) calibration tool, as well as additional Snap-on Total Shop Solutions (TSS™) products. These included equipment from Car-OLiner®, Challenger Lifts, Ecotechnics, Hofmann®, Mitchell 1®, Sun®, Pro-Cut and JOSAM®. “We work closely with our customers to show them how TSS can help them improve and grow their businesses,” said Mariana Montovaneli, director of marketing for Snap-on Equipment. “From

l CONTINUED FROM COVER

EV Battery Plant not confident in its ability to run the Marshall plant competitively. “We’re pausing work and limiting spending on construction on the Marshall project until we’re confident that we’ll be able to competitively operate the plant,” a Ford spokesman said at the time. “There are a number of considerations. We haven’t made any final decision about the planned investment there. There’s nothing to add, at this point.”

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wheel balancers, wheel aligners and diagnostics, to brake lathes, automotive lifts and collision repair, Total Shop Solutions brands offer a unique breadth of solutions to outfit any shop from floor to ceiling.” As a company that prides itself on being one of the top solutions for target placement, Montovaneli said Tru-Point was designed to guarantee targets are placed in the exact

Pictured, left to right, are Kamden Darney, Alex Givens and Lee Hernandez at the Snap-on booth during SEMA

position they need to be to perform a correct ADAS calibration. Over the past year, the company incorporated advancements to the John Bean Tru-Point tool, including up to 360-degree increased coverage. Montovaneli said the Tru-

Point unique camera technology compensates for having an unlevel floor. With OEM specifications requiring the calibration target be perfectly aligned with the vehicle’s camera, Snap-on Product Manager Jordan Krebs said this is critical. “If the floor is not level, the vehicle’s position and orientation can be affected, resulting in errors in the calibration process,” said Krebs. “Tru-Point cameras automatically calculate target height requirements and inform the user when to adjust the height of the target to be in the perfect field of view of the camera while moving the equipment and target stands around the vehicle.” Other John Bean equipment displayed during the event included the V3300 diagnostic wheel alignment system, B2000P wheel balancer, T7800 PROspeed™ tire changer and the 14k short locked and lighted scissor alignment lift. This is the first year Snap-on has introduced a heavy-duty section with products designed for wheel alignment and calibrations. Hofmann displayed its service equipment, which included the 2400P Armored Series wheel balancer, a new product release at

SEMA, as well as the geoliner® 609 and 678 wheel alignment systems, monty® 8200 smartSpeed™ and 3850 tire changers, geodyna® 980L wheel balancer, TreadReader™ and 15k four-post alignment lift. JOSAM wheel alignment and collision repair products were launched during the show for shops that perform heavy-duty repair work. The JOSAM Cam-aligner, designed to be robust and flexible, allows users to measure heavy-duty trucks in any environment. With the ability to compensate for road inclination, it can be used on non-flat surfaces. The JOSAM Frame Press was created to straighten heavy and light trailers and buses. It anchors or attaches to existing floor systems, enabling horizontal and vertical repairs. Snap-on also participated in Joe’s Garage, a real-world shop set up, at the AAPEX Show the same week as SEMA. In addition to Joe’s Garage, Tru-Point was one of several products featured at the TSS and SEMA garage booths, South Hall Upper and the SEMA FutureTech Studio in Central Hall. To learn more about Snap-on and the Total Shop Solutions family of brands, call 800-225-5786.

AirPro Approved For Ford Programs AirPro Diagnostics announced Ford’s approval of AirPro for diagnostics and calibrations provider to ensure a complete and safe repair. AirPro Diagnostics provides cost effective scanning and ADAS calibrations products to the collision repair and auto glass industries, including its “game changing” AUGGIE. AirPro tools meet rigorous vehicle manufacturer requirements by having OEM licensed software and multi-brand diagnostic applications resident and directly connected to the vehicle. In recent independent testing the AUGGIE forward-facing camera recalibration device met IIHS and NHTSA standards. As the pioneers in remote diagnostics and calibrations, AirPro’s uniquely skilled, brand specialists service vehicle gateways as well as provide mobile calibrations at a 97.7% success rate. ORION is the hub by which all services are delivered within the company’s 10-Minute Response Pledge (current YTD acceptance time of 1 minute, 26 seconds).

16 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

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KECO Body Repair Products Introduces New Glue Pull Repair (GPR) Tools and Systems by Stacey Phillips Autobody News

With Glue Pull Repair (GPR) increasingly being used in body shops today, KECO launched a variety of new GPR tools and systems during the 2023 SEMA Show in Las Vegas, NV, in November. In addition to the company’s flagship L2E GPR Collision System, which received SEMA’s 2021 New Product of the Year award in the Collision Repair and Refinish category, the company showcased five new systems to help technicians make clean and efficient repairs, from roughout to a flat finish. This included the GPR+ Collision System, a runnerup in this year’s New Product of the Year awards in the same category. “With the introduction of our new GPR Systems and many other products at SEMA, KECO Body Repair Products continues our passion to bring innovative solutions to the automotive repair industry,” said Chris White, president of KECO. “Our commitment to developing tools that enhance the capabilities of technicians and improve overall repair quality is evident in these new systems.” KECO was established as a

plastics injection molding company in 1963. In 2010, the company began manufacturing GPR tools for the automotive repair industry under the name KECO Body Repair Products. Today, KECO primarily focuses on GPR tools and systems for technicians and repair professionals worldwide.

terms of a continuum, from roughout to finish and the new systems reflect this,” explained White.

* The L2E (Compact) GPR Collision System is a compact version of the flagship system, with all the tools, tabs and modularity of the L2E, but it sits on a smaller 18” cart. White said this allows for ease of movement throughout the shop. * The GPR+ Collision System supplements the L2E Collision System and assists technicians looking to correct sharper and more complex damage with precision and efficiency. * The GPR Technician Companion System works in Scott Stayton, left, KECO’s director of marketing unison with the central L2E and portfolio management, and Chris White, right, for larger tools and allows president, at the KECO booth during the SEMA Show technicians to address a smaller percentage of The L2E product has the capability damage. to do repairs from roughout to finish, * The GPR RoughOut System including paintless dent repair (PDR). provides half of the full system. It was Over the last year, the company designed for technicians to repair focused on enhancing the L2E with medium to large damage, ensuring additional tabs and designing new a faster and more efficient repair systems to meet the needs of the process. It contains the items needed industry. to achieve basic pulls to roughout “We think of repairs that are done in damage, which will ultimately require

a filler for finishing. * The GPR Finish System, focused on smaller flat finish repairs and detail dents, provides the tools, tabs and modularity to work toward a flat refinish. The company also developed KECO’s Mother of All Beams (MOAB) specifically for Rivian electric delivery vans. The 60-inch MOAB provides the length and strength to move difficult damage or structures found on electric delivery vehicles, tractortrailers, RVs and other fleet vehicles. “We went from those vans being literally unrepairable and needing to be replaced to being able to repair them,” noted White. The company prides itself on being problem solvers for the industry and creating custom solutions to offer a method for repairability. However, when deciding whether to repair or replace, White stresses the importance of always following OEM procedures. “The KECO team is passionate about advancing auto collision repair methods and ensuring they are the least invasive and most efficient,” he said. For more information, visit www. kecotabs.com.

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Chicago Auto Show 2024 Announces Dates, Exciting Features The Chicago Automobile Trade Association (CATA) announced the return of the Chicago Auto Show, scheduled for Feb. 10-19, 2024. This year’s show is set to offer attendees an immersive experience with both indoor and outdoor activities, focusing on the latest advancements in electric vehicles (EVs) through the Chicago Drives Electric initiative. “The Chicago Auto Show is a cornerstone event for the city, and we are excited to open our doors again this winter, welcoming attendees to experience the latest vehicles, technology, and activations,” said Chicago Auto Show Chairman JC Phelan. Co-General Manager Jennifer Morand highlighted the show’s increasing popularity, noting a 50% attendance growth year over year since the pandemic. An exciting feature of the 2024 show is the Chicago Drives Electric indoor EV test track. It provides attendees the opportunity to experience the latest electric vehicles firsthand, addressing topics like at-home charging, range anxiety, maintenance and EV

ownership costs. “The debate continues about the growth of the electric vehicle segment in the U.S. market, but there’s no better proving ground for consumers to test EVs than an event as interactive as the Chicago Auto Show,” said Dave Sloan, cogeneral manager of the show.

“The debate continues about the growth of the electric vehicle segment in the U.S. market, but there’s no better proving ground for consumers to test EVs than an event as interactive as the Chicago Auto Show,” — DAVE SLOAN

CO-GENERAL MANAGER OF THE SHOW

Data from the CATA’s Chicago Drive Electric event in the fall revealed 85% of attendees had improved opinions about electric vehicle ownership after test driving EVs, and 71% were more likely to purchase an electric vehicle. For

those not ready to switch to EVs, the show also features a vast array of internal combustion engine vehicles. The 2024 Chicago Auto Show will not only focus on vehicles but also offer themed days like Game Day, Automotive Career Day, a Food Drive, First Responders & Military Appreciation Day, and Family Day, providing diverse experiences for all attendees. Additionally, the show will host special events like the Chicago Friday Night Flights and the Toyota Miles Per Hour run. The show’s black-tie charity gala, First Look for Charity, will be held Feb. 9. This event has raised $60 million for local charities since its inception. Tickets for the 2024 Chicago Auto Show are available for purchase online, with varied pricing for adults, seniors and children. The show promises a comprehensive and engaging experience for all attendees, whether they are car enthusiasts, families or individuals interested in the latest automotive trends and technologies. For more details or to purchase tickets, check out ChicagoAutoShow.com.

CIECA Announces New Member 1Source ADAS CIECA welcomed 1Source ADAS as a new corporate member. Established in 2023 by CEO Tommy Ames and COO Robby Read, the company provides Advanced Driver Assistance Systems (ADAS) software that generates a postrepair report identifying needed calibrations based on a collision repair estimate. Ames was born and raised in the collision industry and worked as a collision technician for McDaniel’s Quality Body Works just prior to starting his business. The president of McDaniel’s, Darrell Smith, shared information with Ames about CIECA and 1Source ADAS joined the association to integrate with CCC ONE. 1Source ADAS software is designed to use the BMS file format as well as PDF. “By using CIECA BMS Standards, we are able to communicate with our business partners using the same language and format,” said Ames. “We’re excited to be on board with an organization that is trying to standardize communication in the collision industry.”

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State Farm Leads in Auto Insurance Affordability Across 29 States State Farm, the nation’s largest auto insurance provider, was identified as the most affordable option in 29 states in a recent report by Clearsurance.com. The study highlighted that while State Farm leads in overall affordability, other insurance providers offer more competitive rates for certain customer demographics. For instance, Erie Insurance is the go-to option for drivers with tickets, offering an average rate increase of only 7% post-speeding ticket compared to the industry average of 22%. GEICO stands out for its significant driver discounts, while AutoOwners is most favorable for family policies. The report showed the cost-effectiveness of Metromile for drivers with a safe record and those driving less than 10,000 miles annually. This usage-based insurance model aligns well with the needs of low-mileage drivers. Additionally, Farm Bureau offers the most cost-effective options for drivers with poor credit, and USAA is the best choice for military families.

“The best insurance provider depends on each individual’s needs and demographics. There is no one-size-fits-all best company,” said Melanie Musson, insurance expert with Clearsurance.com. The report also compared average monthly rates for full coverage auto insurance, which includes both collision and comprehensive coverage. GEICO leads with the lowest average rate of $154 per month, followed by USAA at $189 and State Farm at $200. Full coverage is more expensive than liability-only but offers extensive protection against various damages. The cheapest insurance option may vary based on multiple factors, including age, gender, driving history, credit score and the type of car insured. For instance, more expensive cars typically attract higher full coverage premiums. For a comprehensive view of the best and cheapest car insurance companies of 2023, interested readers can refer to the full report at clearsurance.com/ best-car-insurance.

l CONTINUED FROM COVER

WCRP Announces areas such as team communication, electric vehicle (EV) information and safety, scanning, Advanced Driver-Assistance Systems (ADAS) and calibration. Gandrud, a respected name in the industry, will also present. The conference is not just about learning and discussions; networking and social engagements are also a key part of the agenda. Two evening receptions are planned for April 4 and April 5, allowing attendees to connect with exhibitors while enjoying appetizers, drinks and the chance to win door prizes. The highlight of the networking opportunities is

the free trade show admission the evening of April 5, opening doors for industry professionals to explore new products and services. WCRP has ensured a special room rate at the Chula Vista Resort, guaranteed for three days before and after the conference if reserved by March 14, 2024. Furthermore, the resort offers waterpark passes included with all room reservations. For more information on the conference, including registration details, visit https://events.wcrp. pro/. The website will continue to be updated with information about new sponsors and speakers as the event date approaches. Queries and additional details can be sought from Executive Director Deb Brunett at 262-542-7707 or via email at wcrpinfo@gmail.com.

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Minnesota Owner Named Maaco Cup Award Winner Jason Liesenfeld, owner of Maaco Burnsville in Minnesota, was announced the winner of this year’s Maaco Cup award, announced at the 2023 Maaco Convention held Nov. 7-10 in Cancun, Mexico, themed “The Future of Better.”

Jason Liesenfeld was presented this year’s Maaco Cup at the annual convention in November.

On the first night of the convention, Maaco celebrated the successes of the year with Maaco franchise partners, corporate team members, valued vendors, industry leaders and special guests, and honored those franchise partners who excelled in key performance categories. The coveted Maaco Cup

award recognizes an operator who not only displays high sales achievement, but also exudes excellence in production and overall performance. This year, the award was sponsored by devoted Diamond Plus vendor, Sherwin Williams. A Maaco Cup recipient is an individual who is steadfast in their commitment to the Maaco operating system and is an active leader in supporting the network. “I am so grateful to receive this honor from Maaco alongside my family,” said Liesenfeld. “I am optimistically looking forward to what the future holds.” “Congratulations to Jason Liesenfeld and his family for their accomplishments over the years and their receipt of the Maaco Cup award,” said Daryl Hurst, president of Maaco. “Jason is a strong second-generation operator and his location proudly maintains a 4.5 Google rating based on nearly 300 reviews. After growing their sales nearly 40% in the past year, I am incredibly proud to honor the Liesenfeld family with this honor.”

Odometer Fraud Surges 14% Nationally The rising trend of odometer fraud in the U.S. has hit a new peak, with approximately 2.1 million vehicles now affected—a 14% increase since 2021, according to new data from CARFAX. Odometer rollbacks, a fraudulent practice where car mileage is deceitfully reduced, have long been a trick in the used car market. “Odometer fraud didn’t go away with the introduction of digital odometers,” said Patrick Olsen, editor in chief at CARFAX. “The number of vehicles with a rolled-back odometer continues to rise year-over-year.” This deceit not only misrepresents a vehicle’s value but can also lead to unexpected maintenance costs for the buyer. The rise in such fraud coincides with the ongoing high prices in the used car market, making it an attractive scheme

for scammers. According to CARFAX, a rolled-back car can cost an unsuspecting buyer an average of $4,000 in lost value. Furthermore, the ease of rolling back digital odometers today, often taking mere minutes, adds to the prevalence of this issue. The states most impacted by this trend include California, with 469,000 vehicles affected, followed by Texas and New York, showing increases of 12.8% and 9% respectively. Florida, Illinois, Pennsylvania, Georgia, Arizona, Virginia and North Carolina also feature prominently on this list. Virginia was the only state among the top 10 where the numbers remained unchanged. To combat this issue, CARFAX offers a free Odometer Fraud Check and provides tips for consumers to protect themselves at www. carfax.com/press/resources/ odometer.

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autobodynews.com / JANUARY 2024 AUTOBODY NEWS 25 11/30/23 1:39 PM

Tim Wright Wins Maaco’s Tony Martino Legendary Hall of Fame Award

Biden Administration Mulls Over EV Tax Credit Reprieve For Automakers

Tim Wright, owner of Maaco Farmington in Michigan, was selected for this year’s Tony Martino Legendary Hall of Fame award, Maaco announced the first night of its annual convention, held Nov. 7-10 in Cancun, Mexico.

By Maria Merano

consistently operating with excellence and always having a positive influence on both the brand and their fellow franchisees. “I am so thankful to the Maaco team for presenting me with this honor,” said Wright. “I believe in providing a career path for every team member through continuous cross training and development and I would not have gotten where I am without those incredibly hardworking individuals.”

“Congratulations to Tim for his Tim Wright accepts the Tony Martino Legendary accomplishments and Hall of Fame award at Maaco’s convention.. his receipt of the Tony Martino Legendary The Tony Martino Legendary Hall of Fame award,” said Daryl Hall of Fame award recognizes Hurst, president of Maaco. “For an owner who personifies over 10 years, Tim has served as a mentor, a brand champion Maaco’s founding values of and all-around operationally providing quality service at a fair price. They are brand excellent individual, and I ambassadors for the business, couldn’t be prouder to present this award to him.”

Teslarati

The Biden administration is discussing a temporary reprieve for automakers from stipulations in the Inflation Reduction Act (IRA) regarding materials from foreign adversaries, and how they affect EVs’ eligibility for tax incentives In March, the U.S. Department of Treasury published battery sourcing guidance, which automakers must comply with to reap the tax credits from the IRA. One of the biggest concerns about the eligibility requirements regards battery packs, cells and the materials used to manufacture them. The treasury’s guidance limits the materials automakers can use to produce EVs if they want to qualify for consumer tax credits. Most materials used to produce EVs must be sourced within the U.S. or a country with free trade agreements with the U.S. Automakers have expressed concerns over the guidance, considering the current landscape of the EV industry.

North America and some countries with a free trade agreement are still building their EV battery supply chain. While the IRA has boosted investments in EVs within the U.S., it will still take time for those investments to bear fruit. “We are going to have lots of battery capacity in the United States. It’s just not right this second,” said Scott Sklar, president of The Stella Group Ltd. Demand for EVs has been a big question in the minds of companies investing in the domestic supply chain. Recently, U.S. auto dealers wrote to President Joe Biden saying enthusiasm for EVs has stalled. Battery suppliers already establishing facilities in the country have also shown concerns about demand. A common concern amongst most companies building the supply chain is the affordability of EVs. The treasury’s guidance would effectively slash the amount of new EVs eligible for the IRA’s tax incentives and, therefore, their prices.

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Crash Champions Acquires Chicago MSO Crash Champions on Dec. 11 announced the acquisition of Adams Collision in Chicago. The deal includes four highquality collision repair centers serving customers in the northwest Chicagoland communities of Harvard, Lake in the Hills, McHenry and Huntley. The acquisition officially closed Dec. 8, with operations transitioning immediately to Crash Champions. Crash Champions now operates a lineup of more than 60 locations across the Chicago market, complementing its overall lineup of more than 610 repair centers in 37 states across the U.S. “Chicago is home, and we are always proud to grow our brand and our team across this community, which has supported us for so long,” said Crash Champions founder and CEO Matt Ebert. “With a longtime and proven record of serving customers with quality repairs, Adams Collision is another strong addition to the Crash Champions team. We’re grateful to earn the trust of their staff and look forward to expanding our service to new

customers and communities across the area.” Adams Collision has earned a reputation for consistent and quality service among customers. It is also a longtime trusted name with local and national automotive insurance providers. Each of its four repair centers is I-CAR Gold Class certified. “With more than six decades of service to our local customers, it was important to our team that we entrust the next chapter of our story with a company that is committed to the Chicago community,” said Jay Adams, president of Adams Auto Body and Service Center. “Crash Champions aligns seamlessly with our vision. They have built a preeminent collision repair business upon the foundation of trust and creating opportunities for team members. We’re confident this is a tremendous step forward.” Crash Champions provides customers a written lifetime warranty on all repair work valid at any of its locations nationwide.

Employers Benefit from ASE EntryLevel Certification Businesses looking to hire entrylevel service professionals should inquire if potential candidates have attained ASE Entry Level certification. This credential provides a pathway for students embarking on a career as a service professional by demonstrating they have a significant level of practical and knowledge-based readiness. “ASE Entry Level certification gives employers confidence that they are hiring individuals with the knowledge and the ability to succeed in entry-level roles and the potential to become high-performing employees,” said Mike Coley, president, ASE Education Foundation. “Employing ASE Entry Level certified candidates also communicates a commitment to service excellence to customers and provides repair facilities with a competitive edge in the marketplace.” ASE Entry Level certification tests are available for the automobile, collision repair/

refinish and medium/heavy duty truck segments and are the first step in building career credentials as a service professional. The tests are intended for students in career and technical programs and are a predictable gauge for future success with ASE professional-level certifications. Over 50,000 students have taken the ASE Entry-Level certification test. “Students who have earned an ASE Entry-Level certification are signaling to prospective employers their commitment to a career in the industry,” said Coley. “Many states now require industry credentials for students so employers should be able to find students in their community with ASE Entry-Level certifications. These individuals are also inclined to pursue additional ASE certification tests, broadening their expertise and enhancing their value as employees.” For more information about ASE Entry-Level certifications, visit www.ase.com/entry-level.

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CIF To Host Annual Charity Gala For Crisis Relief

Indiana CARSTAR Serves Lunch To Thank Local First Responders

The Collision Industry Foundation (CIF) is set to host its 13th annual charity event, “Cocktails for a Cause,” Jan. 16, 2024, in Palm Springs, CA. The event aligns with the much-anticipated Industry Week, promising an evening of networking, entertainment and philanthropy at the Agua Caliente Casino’s CASCADE Lounge. This year’s event aims to raise substantial funds for emergency relief for collision repair industry professionals facing crises. CIF provides disaster relief assistance to hundreds of industry professionals affected by natural disasters like hurricanes, wildfires and floods. In addition to the live drawing for prizes, attendees can look forward to enjoying great food and beverages, engaging in industry networking, and participating in the CIF Live Auction, a highlight of the event. “Cocktails for a Cause”

The municipal offices of Winfield, Lake County, IN, including the police department, fire department and the town management, enjoyed a festive

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is more than just a social gathering; it represents the CIF’s dedication to its mission of supporting industry professionals in their most challenging times. The success of this event is credited to the generous support of industry donors and individuals committed to this cause. The evening stars at 6:30 p.m. PT, on the eve of the CIC meeting. The CIF trustees extend an open invitation to all interested parties, encouraging early registration at cifgala.org. CIF’s ongoing efforts and the annual charity event have become a cornerstone in providing much-needed support and solidarity within the collision repair community. As the foundation prepares for another successful event, the anticipation and commitment from the industry partners continue to grow, underscoring the collective spirit of giving back and supporting each other in times of need.

community involvement and philanthropy, commissioned Wild Iris Catering to provide a taco bar for the municipal offices of Winfield. Delicious food was served for everyone with plenty left for staff who weren’t able to attend. The menu included steak and chicken tacos with all the fixings, including a huge bowl of homemade guacamole. Lunch was followed up with Nothing Bundt Cakes for dessert. “This is just a small token of our Pictured, left to right, are Charlotte Liss, Michael appreciation for Shahbaz, Corey Liss and Town Marshall Daniel Ball. all that the police department, fire lunch recently as a “thank you” for department and town employees their service, courtesy of Corey do every day,” said Corey Liss. and Charlotte Liss, owners of “We see them hard at work, and CARSTAR Liss Auto Body of we appreciate everything they Crown Point and Schererville do to keep our communities safe, The Lisses, known for their secure and running efficiently.”

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Bosch Joins CAPA’s Verification Program Bosch is now part of the Certified Automotive Parts Association’s (CAPA) Tier 1 Replacement Parts Verification Program. CAPA, a nonprofit standardsetting and certification organization, has long been instrumental in ensuring highquality automotive crash parts. Historically, the distinction between Tier 1 replacement parts and aftermarket parts has been blurred, posing challenges in identifying parts comparable to original car company (CCO) or car company service (CCS) parts. CAPA’s Tier 1 Verification Program addresses this issue by ensuring Tier 1 Verified replacement parts are manufactured using the same factory, tooling, materials and processes as the CCO or CCS parts. Bosch’s approval to join the program allows it to begin submitting its ultrasonic parking sensors for verification. These verified parts will be distinguished by the CAPA Tier1 Verified label and announced in CAPA’s weekly updates.

FTC Implements CARS Rule To Combat Auto Sale Scams The Federal Trade Commission (FTC) recently unveiled the Combating Auto Retail Scams (CARS) Rule, set to take effect July 30, 2024, to significantly reduce deceptive practices in the automotive industry.

FTC Chair Lina M. Khan highlighted the rule’s focus on eliminating “unexpected and unnecessary fees” in car buying, which not only aids consumers but also fosters fairness among dealers. The CARS Rule addresses two primary fraudulent tactics: baitand-switch advertising and the imposition of hidden junk fees. These deceptive strategies have long plagued consumers, leading to inflated costs and frustrating experiences when purchasing

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vehicles. The rule protects military personnel and their families, who often become targets for these unscrupulous practices. The burden of auto debt is significantly higher among servicemembers, with young servicemembers being especially vulnerable. The CARS Rule aims to alleviate these pressures by ensuring transparent and honest dealing in car sales. Key provisions of the CARS Rule include: • No Misrepresentations: Dealers are prohibited from misleading consumers about vital information such as price, cost, and financing terms. • Transparency in Pricing: The rule mandates that dealers provide clear information regarding the offering price, total payment and optional nature of add-ons. • Prohibition of Non-Beneficial Add-Ons: Dealers cannot charge for add-ons that do

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not provide real benefits to consumers. • Requirement for Consumer Consent: Explicit, informed consent must be obtained for any charges incurred in a vehicle purchase. • The FTC’s process in developing the CARS Rule involved extensive public engagement, including a comment period where feedback from consumers, servicemembers, veterans and auto dealers was considered. This inclusive approach led to a well-rounded rule that not only curbs consumer exploitation but also supports honest dealers by creating a more level playing field. The CARS Rule represents a significant step towards consumer protection in one of the largest purchase areas for American households. The FTC has also issued guidelines for both consumers and dealers to prepare for these changes, ensuring a smooth transition and widespread understanding of the new regulations.

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Missouri Auto Shop Owner Faces Felony Charges in Alleged Scam By Kate Dalton KSNF News

The owner of a Granby, MO, auto sales and repair shop is accused of scamming people out of thousands of dollars. Edward McDonald, 62, owner of Ed’s Auto Body and Sales, is charged with felony stealing in Newton County. Granby police said 11 victims have filed official complaints saying they paid McDonald to purchase a vehicle, but then never received it. Authorities estimate the total amount of the theft to be more than $100,000. They said they have received approximately 38 complaints. Court records indicate some of the victims have bills of sale with the same vehicle identification numbers on them. “Some people have saved for years to be able to buy this car,” said Grandby Police Chief Rico Engberg. “I had a gentleman come in here the other day that bought a vehicle—he has a truck, but he has to take his mother with cancer back and forth to the doctors. And

she can’t get in and out of the truck. So, he purchased a car so he could get her in and out easier and now he doesn’t have that.”

“I had a gentleman come in here the other day that bought a vehicle—he has a truck, but he has to take his mother with cancer back and forth to the doctors. And she can’t get in and out of the truck. So, he purchased a car so he could get her in and out easier and now he doesn’t have that.” — RICO ENGBERG GRANDBY POLICE CHIEF

Police said they have not seen McDonald in about three weeks and the business has been closed. The judge issued a criminal summons in the case, ordering McDonald to appear for arraignment Jan. 9.

Tesla Delivers First Cybertrucks To Customers During Live Event Tesla on Nov. 30 delivered the first units of its all-electric pickup, the Cybertruck, to select customers during an event at its Gigafactory Texas, where the truck is now being built.

The delivery, livestreamed on YouTube, finally brought to life the vehicle that was first introduced in 2019. CEO Elon Musk spoke about the truck’s capabilities and features, including a steerby-wire system that provides a turning radius smaller than that of a Tesla Model S; 2,500 pounds of payload capacity and an 11,000-pound towing capacity; a bed 6 feet long and 4 feet wide; and a stainless steel body that

“has more torsional stiffness than a McLaren P1,” Musk said. “It’s a big deal.” Tesla also showed videos showing the Cybertruck beating a Porsche 911 in a 0-60 mph test, reaching the speed in 2.6 seconds—while towing another Porsche 911, and a pulling demo, in which it beat the Ford F-150 Lightning, Rivian R1T and the Ford F-350. “You have a truck that’s bullet tough, and can out-pull an F-350… It’s not just a grandstanding showpiece like me. It’s actually very useful,” Musk said. Customers were then presented with their new Cybertrucks to drive off. Prices were also released: the rear-wheel drive version will start at $60,990, the all-wheel drive at $79,990, and the Cyberbeast, which has an estimated 320mile range, goes from 0-60 mph in 2.6 seconds and has 845 horsepower, at $99,990. Those prices are before any state or federal EV tax credits are applied.

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Ford Cuts Dealer EV Requirements Again By Dan Mihalascu InsideEVs

Ford Motor Company has backed down on requirements imposed on its EV dealers and is again making changes to its voluntary EV certification program.

The move comes just as the automaker has lost a legal battle to Ford dealers in Illinois, where the state motor vehicle board ruled the automaker broke the law by requiring its dealers to invest hefty sums if they want to continue selling EVs. The company said its decision to cut training costs by half and reduce the number of chargers that retailers are required to install at their premises is not related to the Illinois ruling. “We made changes to the voluntary Model e EV Program as

3 Killed, 1 Injured in Ohio Shop Explosion Officials in Hillsboro, OH, said an explosion and subsequent fire Nov. 28 at an auto repair shop caused the death of three people and injured one more. According to WLWT5 News, Paint Creek Joint EMS & Fire District Chief David Manning said the fire started around 4 p.m. at Jimbo’s Auto Repair after the explosion, the cause of which is under investigation. Witnesses reported feeling the explosion shake the ground from several blocks away, but officials said no nearby structures were damaged. The identities of the victims were not released, but Manning said it was believed all three were employees of the shop.

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we continue to adapt our overall argued Ford’s program violated EV strategy to the market. We state franchise laws, adding the also continue to listen to dealer more expensive Level 3 chargers feedback. These changes are not a were unnecessary. result of the Illinois outcome,” Ford “We made changes to spokesperson Marty Günsberg the voluntary Model e EV told InsideEVs, adding Ford made the latest changes to adjust to Program as we continue market demand. to adapt our overall EV As part of the new requirements, strategy to the market. Ford’s upper-tier “Certified Elite” dealers now have to install three We also continue to listen Level 2 chargers instead of five, to dealer feedback. These while the lower-tier “Certified” changes are not a result of dealers are now required to install two Level 2 chargers instead of the Illinois outcome,” five. Furthermore, the additional — MARTY GÜNSBERG FORD SPOKESPERSON Level 3 fast-charger for 2026 for Certified Elite dealers has been removed altogether. Ford said it would appeal the For both tiers, Ford also pushed decision. “Ford stands by its back the deadline to have the voluntary Model e EV program,” chargers in place by six months to the company said in a statement. June 30, 2024, because of charger “It is designed to make sure that supply chain and infrastructure Ford and its dealers provide delays. In addition, Ford said it is Illinois Ford EV customers with cutting the cost of dealer training a segment-leading experience by up to $20,000—about half—for throughout their purchase, service the 2024 calendar year. and ownership journey.” Charging requirements was The Illinois dispute is just one a key point of contention in the of several battles Ford is carrying Illinois case. Twenty-six dealers out nationwide Quarter Page (no bleed) | 4˝ x 5˝ over its EV

program. The program has been opposed by most state dealer associations since it was unveiled in September 2022. Initially, about 60% of Ford and Lincoln dealers opted in---approximately 1,920 of the company’s nearly 3,000 U.S. dealers. In January, Ford made some concessions to dealers, including scaling back the amount of charging a dealer would be required to offer public charging every day and removing a cap that limited lower-tier dealers to selling a maximum of 25 EVs per year. After the changes, Ford gave dealers the option to drop out of the program or change tiers. The automaker’s total enrollment fell 1.5% to 1,891 of its dealers. Since then, EV enrollment has fallen to approximately 1,550 dealers, or about 53% of the total network, Ford said Nov. 20, according to Automotive News. Still, due to the size of Ford’s network, the company claims 86% of the population lives within 20 miles of a Ford dealership capable of selling and servicing a Ford EV.

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7/31/23 5:41 PM

Missouri First Responders Learn New Rescue Skills Through NABC F.R.E.E. Program First responders from the Liberty, MO, Fire Department and surrounding areas donned their rescue gear Oct. 18 for a hands-on demonstration of the latest techniques in emergency vehicle extrication, preparing them to provide the best response for car accident victims, all thanks to CARSTAR Wicklunds Liberty, Farmers Insurance, HURST Jaws of Life and the National Auto Body Council (NABC) First Responder Emergency Education (F.R.E.E.) program. CARSTAR Wicklund Liberty, located at 941 Sutton Place in Liberty, hosted the first responders. Today’s vehicles are equipped with numerous airbags, advanced technology and innovative safety systems that keep drivers safer in case of an accident. But, these same safety advantages make it harder for first responders to rescue those drivers and passengers. Add to that the potential challenging presented by electric and hybrid engines, and first responders need a whole new arsenal of rescue tools and procedures. The NABC F.R.E.E. program

helps prepare local first responder teams to rescue accident victims from these late-model vehicles. The program provides education and live demonstrations on working with high-strength steel, airbags, advanced restraint systems, onboard technology and safety around alternative fuel vehicles. Since it was founded, it has provided education for more than 5,000 first responders. “We understand how important it is for firefighters to get a chance to practice their extrication skills on newer vehicles. This event helps bring awareness to the newer technology and stronger tensile strength metals in vehicles today. We are proud to be able to host and even get education ourselves from the First Responder Emergency Education class,” said Billy Wicklund of CARSTAR Wicklunds Liberty. Farmers Insurance provided the vehicles, and HURST Jaws of Life supplied the classroom education and extrication demonstration.

The End of the Road For Falling Gas Prices? Despite less than stellar domestic demand, the national average for a gallon of gas fell only two cents over the week ending Nov. 30, to $3.24. The primary culprit is the cost of oil, which is creeping closer to $80 a barrel. Since oil is the main ingredient in gasoline, higher oil costs tend to put upward pressure on pump prices. “The current streak of daily pump prices either falling or staying flat started on Sept. 19,” said Andrew Gross, AAA spokesperson. “It appears this run is in jeopardy, and we may see prices edge a bit higher. But if the cost of oil eventually hits reverse and dips again, pump prices will likely follow suit. So stay tuned.” According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.48 to 8.21 million b/d over the week. Meanwhile, total

domestic gasoline stocks increased by 1.8 million bbl to 218.2 million bbl. Lower gas demand has contributed to limiting pump price increases amid rising oil prices. The Nov. 30 national average of $3.24 is 26 cents less than a month ago and 26 cents less than a year ago. Since Nov. 23, these 10 states have seen the largest decreases in their averages: Utah (-16 cents), Indiana (-10 cents), Ohio (-9 cents), Arizona (-9 cents), Wyoming (-8 cents), Michigan (-8 cents), Montana (-8 cents), Colorado (-8 cents), North Dakota (-8 cents) and California (-8 cents). The nation’s top 10 least expensive markets: Texas ($2.74), Mississippi ($2.76), Oklahoma ($2.76), Georgia ($2.79), Louisiana ($2.81), Missouri ($2.81), Arkansas ($2.82), Alabama ($2.88), Kansas ($2.89) and Iowa ($2.91).

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Fixing ADAS Systems Makes Up Over a Third of Collision Repair Costs By Brittany Moy AAA

A recent study by AAA found advanced driver assistance systems (ADAS), like automatic emergency braking, blind spot monitoring and lane departure warning, can add up to 37.6% to the total repair cost after a crash. This is due to the high cost of replacing and calibrating the sensors that operate these systems. Even minor damage to systems such as front radar or distance sensors can result in additional repair expenses of up to $1,540. AAA advises consumers to be aware of the repair costs associated with these vehicle systems, and prioritize repairing them when necessary to ensure they work as intended. “Vehicles equipped with more sophisticated safety systems are much more common now, especially since NHTSA proposed its rule requiring automatic emergency braking earlier this year,” said Greg Brannon, AAA’s director of automotive engineering. “Consumers should know about the repair costs associated with these technologies. But they must also understand the

importance of fixing them since improperly functioning systems could result in a deadly crash.” Many variables can affect the cost of repairing ADAS, including vehicle make and model, the type and location of the sensor and the type of facility where the repair work is performed. Consumers may not realize it, but

the sensors that help ADAS “see” the world around the vehicle are located at the front, side and back. AAA looked at four repair scenarios—front-end collision, side mirror replacement, rear collision and windshield replacement— to understand the costs of repairing these sensors. The highest repair cost for ADAS components is attributed to radar sensors and cameras damaged in a front-end collision. However, the replacement of a side mirror

represented the largest proportion of repair costs of the three scenarios. For the three vehicles (model year 2023) evaluated in this report, AAA found: • The average cost of replacing ADAS components in a minor front collision repair was $1,540, or 13.2% of the average total repair. • An average of 70.8% of the repair cost ($1,067) was attributable to the ADAS camera included in the side mirror assembly. • The average cost of replacing ADAS components in a minor rear collision repair was $684, or 40.9% of the average total repair estimate of $1,698. • The cost of windshield glass replacement attributable to ADAS components averaged 25.4% ($360.00) of the total repair cost. • Individual ADAS component costs (part and specific labor/ calibration) over the four repair scenarios range from a low of $290 to a high of $1,596. AAA’s research determined the ranges listed below for typical ADAS repair expenses. Note that these numbers are for costs over and

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above the normal body work required following a collision. Front radar sensors used with automatic emergency braking and adaptive cruise control systems: $500 to $1,300. Front camera sensors used with automatic emergency braking, adaptive cruise control, lane departure warning and lane keeping assistance (does not include the cost of a replacement windshield): $600 to $800. Mirror mount, side mirror used with around-view systems: $740 to $1,600. Windshield camera sensor used with lane keeping assistance, traffic sign recognition and pedestrian detection: $900 to $1,200. Front or rear ultrasonic sensors used with parking assist systems: $300 to $1,000. A driver is alerted by a warning light or icon on the instrument panel and/or a message display if an ADAS component is failing and causing the system to be inoperable. Once this occurs, it’s crucial for drivers to take their vehicle to a reputable repair facility for repair.

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Road Risk Alert: It’s the Most Distracted Time of the Year The hustle and bustle of the holiday season brings excitement and anticipation for Christmas and New Year’s. But it also leads to a significant increase in distracted driving and speeding. According to a new CMT analysis, Christmas and New Year’s Day are the most distracted days of the year. Christmas also sees the most speeding of any day of the year while New Year’s comes in fourth. CMT analyzed driving patterns and behaviors two weeks before and after each holiday from 2020 to 2023, covering over 100 million car trips. On an average day around Christmas, drivers spend 2 minutes and 16 seconds per hour using their phones behind the wheel. On Christmas Day, distracted driving rises to 2 minutes and 32 seconds per hour, 12.1% more than the surrounding days. CMT defines distracted driving—screen interaction---as when a driver taps on the screen while the vehicle is traveling over 9 mph. New Year’s Day sees similar trends as Christmas. On the days around New Year’s, drivers spend 2 minutes and 17 seconds per hour driving distracted. On New Year’s Day, distraction increases by 8.9% to reach 2 minutes and 29 seconds, the second most distracted day of the year. New Year’s Eve is the third most distracted day, with 2 minutes and 24 seconds. The 12.1% surge in screen interaction on Christmas carries severe and fatal consequences. CMT’s research shows that for every 10% rise in distracted driving, the crash rate increases by 1.4%. CMT estimates the increase in distracted driving on Christmas has caused 2,000 additional crashes, five fatalities, and $47 million in economic damages over the past three years. The impact for New Year’s Day and New Year’s Eve is similar. The trend of distracted driving spiking on Christmas has held true for the past few years. In 2020, drivers

spent 2 minutes and 19 seconds on their phones during the days around Christmas, jumping to 2 minutes and 38 seconds on Christmas Day. 2021’s distraction figures were lower overall during the holidays, but still

saw a dramatic 11.6% increase on Christmas. In 2022, the increase in time spent driving distracted on Christmas was 11%. While Christmas is consistently the most distracted day of the year, there is some good news. Distracted driving around Christmas time has fallen every year since 2020. In 2020, drivers spent an average of 2 minutes and 38 seconds per driving hour engaging with their phones. In 2021, this number fell to 2 minutes and 32 seconds. It fell another 5 seconds to 2 minutes and 27 seconds in 2022. Christmas isn’t just the most distracted day of the year. It also sees the most speeding of any day. During the two weeks before and after Christmas Day, drivers spend 2 minutes and 41 seconds speeding. On Christmas Day, speeding increases to 4 minutes and 3 seconds, a 51.2% increase. Dec. 26 has the second most speeding followed by July 4th and New Year’s Day. CMT defines speeding as traveling more than 9 mph over the posted speed limit. Speeding, when combined with distracted driving, leads to more severe and deadly outcomes. The

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difference between a crash at 45 mph and one at 40 mph can be the difference between life and death, as shown in an IIHS analysis. A distracted driver will hit the car in front of them at full speed.

Holidays Impact Hourly Distraction Trends Distracted driving on Christmas Day has a different pattern than the surrounding days. For example, in 2022, distracted driving on Christmas peaked at 2 minutes and 36 seconds during the late morning, from 11 a.m.–1 p.m., while for the surrounding

days, it reached its highest point at 8 p.m. Distraction on Christmas starts early, hitting 2 minutes and 24 seconds by 8 a.m., and stays at or above that level until midnight. On the surrounding days, distraction hovers around 2 minutes and 18 seconds until rush hour, increasing at 6 p.m. through 10 p.m. Distracted driving on New Year’s Day in 2022 tells a slightly different story. Distracted driving on New Year’s Day was 14.6% higher during the early morning hours compared to the days around Christmas, from midnight until 7 a.m. Distraction was slower to peak on New Year’s Day, plateauing at 11 a.m. until growing from 4 to 7 p.m., where it peaked at 2 minutes and 42 seconds per hour. Ensuring a Safe Driving Holiday Season The holiday season experiences the highest levels of distracted driving and speeding throughout the year. The data reinforces the need for all drivers to stay focused, put the phone down and check their speed to ensure they arrive safely. These behaviors, which are simple to adopt but hard to maintain, would create safer roads for everyone during the holiday season and beyond.

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Straightaway Tire & Auto Acquires 2 Repair Shops in Minnesota Straightaway Tire & Auto expanded its reach in Minnesota by acquiring Accurate Auto & Tire Service and Wayne’s Automotive, facilitated by O2 Investment Partners, which announced the move. “We’re very excited to welcome the teams at Accurate Auto and Wayne’s to the Straightaway family,” said Jeff Matt, division president of Straightaway. “They have each earned loyal customer bases over their decades in operation, and we look forward to working together to uphold their reputations for great customer experience.” The two well-established businesses have a combined experience of more than 60 years in the automotive repair industry.

Accurate Auto has been a cornerstone in the Maple Grove, MN, market for over 25 years, offering comprehensive auto repair services. Similarly, Wayne’s Automotive, with more than 35 years of operation, has been a key player in the Grand Rapids, MN, market. “The addition of Accurate Auto and Wayne’s will further strengthen Straightaway’s already robust presence in Minnesota,” said Joe Vallee of O2 Investment Partners. “Furthermore, the transactions highlight our commitment to support Straightaway’s continued expansion by leveraging platform-wide resources to drive localized growth.” The terms of the transactions were not disclosed.

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Global Light Vehicle Sales Predicted To Rise 2.8% in 2024 The latest S&P Global Mobility report forecasts a 2.8% increase in global light vehicle sales for 2024, primarily driven by the ongoing replenishment of vehicle inventories and improvements in the supply chain. However, this positive trend is tempered by significant headwinds, including high vehicle prices, tightening credit conditions and fluctuating consumer confidence. Colin Couchman, executive director of global light vehicle forecasting at S&P Global Mobility, said the industry is transitioning from clear supply-side risks to a “murkier macro-led demand environment.” 2023 saw a notable uptick in light vehicle sales, with a projected 8.9% increase from the previous year, nearly reaching 86.0 million units globally. This surge was largely fueled by the normalization of supply chains and robust inventory restocking. Regionally, Europe is forecasted to see a 2.9% year-over-year increase in 2024, with lingering economic recession risks and easing pent-up demand. The U.S. market is expected to grow by 2.0%, with consumer

affordability remaining a significant concern. In contrast, mainland China projects a more robust 4.2% increase, bolstered by incentives for New Energy Vehicles (NEVs) and improving consumer confidence. The production outlook for 2024 suggests a shift towards a more traditional demanddriven model. Global light vehicle production is predicted to slightly decrease by 0.4%, reflecting the industry’s adjustment to a postcrisis equilibrium. Mark Fulthorpe, another executive director at S&P Global Mobility, noted the rapid restocking might collide with actual consumer demand levels, creating challenges for vehicle manufacturers. Electrification continues to be a pivotal aspect of the industry’s future. The report forecasts significant growth in battery electric vehicle (BEV) sales, with an expected 16.2% of global passenger vehicle sales in 2024, a substantial increase from the 12% market share in 2023, reflecting the industry’s ongoing commitment to electrification despite short-term uncertainties.

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autobodynews.com / JANUARY 2024 AUTOBODY NEWS 37

$1 Billion Lawsuit from Insurers Over Stolen Hyundais, Kias Moving Forward Co-President & Publisher Nathan Gregory

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Editor Abby Andrews Contributing Writers Mike Anderson,Stacey Phillips, John Yoswick, Cole Strandberg Advertising Sales Joe Momber, Norman Morano, Steve Sklenar Office Manager Kelly Cashman

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. ©2024 Autobody News, LLC.

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A federal court ruled Nov. 15 that several auto insurers’ lawsuits can proceed against Hyundai and Kia, seeking to recover $1 billion in claims paid to customers who owned vehicles that got stolen, Bloomberg Law reported. The lawsuits raise adequate consumer protection, breach of warranty, negligence and fraud claims against the U.S. arms of both automakers, the U.S. District Court for the Central District of California said in response to a motion to dismiss. In 2022, certain Hyundai and Kia vehicles built between 2011 and 2022 without engine immobilizers became the stars

of a series of posts on social media platforms, showing how easily they can be stolen using a simple USB cable. Since then, theft rates for both brands have skyrocketed. The insurers claim Hyundai and Kia failed to equip the vehicles with any anti-theft feature, and the omission can cause personal injury and damage property other than the stolen vehicle. After the social media posts took off, the automakers launched a series of tools aimed at curbing thefts of 14 million vulnerable vehicles in the U.S., including free software upgrades and steering wheel locks, but rates remain high.

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2023 SEMA Show Exceeds Attendees’ Expectations The SEMA Show returned to Las Vegas Oct. 31-Nov. 3, bringing together more than 150,000 automotive aftermarket industry professionals looking to transform four days of relationshipbuilding, networking, sales and marketing into business success and dreams realized. The proof the SEMA Show was poised to return to historic levels was found in the packed Las Vegas Convention Center exhibit halls, teeming with more than 2,200 exhibitors, boundary-pushing builds, innovative new products, thought-provoking educational opportunities and more than 150,000 attendees connecting throughout the aftermarket community. The Show creates connections via dedicated product communities, outdoor activations, education and training, award programs, reveals, unique experiences and celebrations. “The SEMA Show is one of the largest trade shows in the country, but it’s actually comprised of several smaller, distinct communities,” said Tom Gattuso, SEMA VP of events. “The networking that takes place within those groups is where you see the transformative power the Show has to positively impact participants and chart the course of the aftermarket industry.” Perhaps nowhere else is that transformative power felt more strongly than amongst the companies exhibiting at the Show for the first time. More than 20% of the exhibitors were new participants, driving innovation, including Caross USA, manufacturers of portable jump starters and air compressors, based in San Mateo, CA. The start-up has had products on sale for a mere three months and SEMA was its first trade show. Not only did they meet prospective partners from Canada to Australia, but their networking also gained them exposure via social media and led to a relationship with the television show “Two Guys Garage” and a potential on-air appearance in February. They also won two Global Media Awards (GMA), given by judges comprised of members of the international media to products they feel will be well-received in their respective countries. “You don’t see a lot of ‘tire kickers’ at SEMA, the buyers are much more serious,” said Global Sales Director Steve Stambaugh. “I can’t say enough about SEMA. Being at this Show has done more for our company in two days than other industries do in 10 years.” For returning exhibitors, the SEMA Show was an opportunity to

continue building on the year-overyear growth that participation creates. For CIC Powerbox of Pittsburg, KS, a manufacturer of AC-powered truck boxes that first exhibited at the Show in 2018, their participation has led to several partnerships.

the opportunity to showcase the knowledge of our representatives, talk engineering and support our product with assurances that all accessories are fully reviewed for safety, ergonomics and longevity,” said Natalie Simon, marketing and

The 2023 SEMA Show brought together more than 150,000 automotive aftermarket industry professionals to Las Vegas Oct. 31-Nov. 3, transforming four days of relationshipbuilding, networking, sales and marketing into business success and dreams realized.

“Every time we come to SEMA we come away with new business,” said CEO Mike Windsor, listing the Department of Transportation, the U.S. Air Force, Goodyear and several OEMs as just a few of the relationships forged at the SEMA Show. “We’ve also made connections for opportunities we either weren’t aware of or didn’t know how to get into,” he added, including sponsorship of professional drift racer Faruk Kugay and growth of CIC’s social media marketing as examples. “We’ve had exponential growth year over year and if all goes well, this year we’ll go international thanks to the relationships we’ve made at SEMA,” said Windsor. The Show remains a popular place for OEMs to connect with the aftermarket industry. For Toyota, 2023 was a year to push boundaries. “Toyota has always seen SEMA as a place to let our imagination run wild. This past show was no exception, as we tapped into thrills on the track ... and the trail,” said Mike Tripp, group vice president, Toyota Marketing. “The amount of interest in the allnew 2024 Tacoma and Land Cruiser didn’t disappoint. And based on the coverage we’ve received, it’s safe to say that builds like our X-Runner Concept and FJ Bruiser were true stars of the show.” For Ford Performance Parts & Accessories, the Show allows them to forge relationships with attendees and share the benefits of their products. “The SEMA Show gives us

events manager, Ford Performance Parts & Accessories. For others, Show participation is a step towards achieving the dream of a career in the automotive aftermarket.

Masen Schneider, a freshman studying mechanical engineering at the University of North Dakota, received a SEMA Scholarship, awarded annually to students interested in careers in the automotive industry. “It means a lot to receive a scholarship from an organization like SEMA because as big and impactful as they are, they see your story and experience and want to help propel you towards your dream,” he said. Schneider hopes to one day be an automotive parts designer. The SEMA Show also remains a center of innovation fueled by passion, as evidenced by the Battle of the Builders Presented by Mothers Polish competition. The aftermarket industry’s ultimate vehicle competition, the program celebrated 10 years of providing builders the ultimate platform to showcase their craftsmanship and skills to a worldwide audience. For Andy Leach, winning builder of the 1960 Buick Invicta Custom, the victory was the culmination of nine years of work. “It’s a dream come true,” said Leach. “I’ve been chasing this award for nearly a decade. The Buick was a labor of love.” The SEMA Show returns to Las Vegas Nov. 5-8, 2024. To learn more, visit www.semashow.com. Finish It Like a Masterpiece with

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autobodynews.com / JANUARY 2024 AUTOBODY NEWS 39

Wishing You a Happy & Prosperous 2024 from the Team at

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