February 2022 Midwest Edition by Autobody News

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Bill Brown Ford in Michigan Named No. 1 Ford Dealership in World Bill Brown Ford, the No. 1 volume Ford dealership in Michigan, is now the world’s No. 1 volume Ford dealership, bringing the title home to the Motor City. Detroit has been the center of the U.S. automobile industry since 1903, when Henry Ford opened his Piquette Avenue Assembly Plant, but the region has not been home to the No. 1 volume Ford Dealership in some time. That all changed Jan. 4 with Bill Brown’s landmark win, which brings the title back to the Detroit region. “We do things differently at

Bill Brown. We’re focused on delivering a seamless automotive experience that ensures our customers can move forward on their terms,” said Tom Brown, grandson of Bill Brown. “That’s what drives us. Being named the No. 1 Ford dealership in the world is a huge step forward in our effort to reinvent the auto-buying process.” In previous years it was an intense back-and-forth battle between Bill Brown and two much larger dealership groups in Florida and California. The Florida dealer has See Bill Brown Ford, Page 18

Toby Chess Shares Best Practice Documents for Collision Repairers by Toby Chess

This is the first installment of Toby Chess’s newsletter, in which he will share more than 100 Standard Operating Procedures (SOPs) for auto body shops, tools, trends in repair and anything he thinks could help shops improve. Chess suggests printing out each SOP and putting them in a book. He said Steve Morris had a great idea to print them out for each operation being performed on a repair and have the technician sign and date them, and place them into the customer’s file.

These SOPs will standardize your repairs, increase efficiency and quality, reduce comebacks, improve estimate quality and add to the bottom line. Here are the first five in the series: 1. Best Practices Before Accepting Used Painted Parts 2. Best Practices for Applying Weldon Aluminum Studs 3. Best Practices for Preparing Aluminum for Repair and/or Welding Part 2 See Toby Chess Shares, Page 20

Vol. 11 / Issue 5 / February 2022

Latest ‘Who Pays’ Survey: Total Loss Administrative Fees Increasingly Common Direct repair agreements—and in California, state regulations—prohibit participating auto body shops from charging administrative fees related to processing of total losses. But the percentage of U.S. shops overall saying they are paid such an administrative fee has risen steadily over the past several years, according to the findings of the “Who Pays for What?” survey series. In 2021, a strong majority of shops (72%) said they are paid always, or most of the time, when they bill for this work. By comparison, when the “Who Pays for What?”

surveys began in 2015, just 46% of shops said they were regularly paid a total loss administrative fee when they invoiced for it. Likewise, the percentage of shops that say they have never billed for this fee also has declined steadily since 2015. Today, only 11% of shops say they never charge a fee to process a total loss, but back in 2015, that figure was 30%. “Processing a total loss has become more complex than it used to be,” said Mike Anderson of Collision Advice, who conducts the quarSee ‘Who Pays’ Survey, Page 15

National Survey of Auto Body Shops Finds Revenues Going Up but Concerns Rising as Well by John Yoswick

A national survey of collision repairers in the final two months of 2021 found well over half of shops (58%) expected their full-year sales to outpace 2020, with nearly one in five shops predicting they would end 2021 with a year over year increase of 20% or more. However, the survey, conducted by CRASH Network, found about a quarter of shops (23%) predicted 2021 sales will fall short of their 2020 numbers, with nearly one in 10 saying they expect to be down 20% or more compared to last year. “Parts availability and increase in total losses has pushed business down,” said one East Coast shop owner. “We have plenty of work to increase our numbers, but not enough employees to get it completed,” said a shop owner in Oklahoma. “We are running a 10-week backlog with over 70 cars in-process.” “Business is picking up, but now sales are limited by parts and

lack of technician staff,” a Southern California shop owner concurred. “I need two body techs and another prepper in the paint shop.” The survey found the upward trend in business optimism over the past year came to a halt in the fall. The majority (61%) said they are “not very” or “not at all concerned” about their business still operating a year from now, and that was up from 43% a year earlier, but down slightly from 64% in mid-2021. Three in 10 of the shops acknowledged being “somewhat” concerned, up from 24% in two surveys earlier in 2021. About 10% described themselves as “very” or “extremely” concerned about their business viability, down from 26% a year ago, but unchanged from last spring. “Inflation is going to take a huge bite out of profits,” a Massachusetts shop owner predicted, saying he was “somewhat” concerned about the shop’s future. Still, most shops expect to make it through 2022. See National Survey, Page 22

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CONTENTS Chicago Luxury Car Dealer Hit by Daytime Smash and Grab �� 12 Crash Champions Hosts Chicago-Area NABC F.R.E.E.™ Event �� 6 GM to Invest More Than $51M at Bedford Aluminum Casting Facility �� 12

Insurance Adjusters of the Future �� 36 Auto Body Shop Owner Steps into World

Auto Insurers Embrace AI at Scale in 2021 �� 4 BMW’s New Car Changes Color ‘With the Touch of a Button’ �� 47 Boyd Group Completes CEO Plan �� 47 Caliber Named to Best In Business List �� 6

Communities Impacted by Kentucky

Collision Engineering Program Gets Grant �� 22

Tornadoes �� 8

Collision Repair Industry Thought Leaders

Fund Hasn’t Spent a Cent �� 6 Michigan’s $400 Auto Refund Must Be Issued by May 9 �� 10 NABC Recycled Rides® Program, Washburn Tech Donate Refurbished Vehicles Kansas Recipients �� 10 Report Finds Michigan Auto Insurance Rates Remain High Despite Reform Law �� 8 West Plains, MO, First Responders Learn New Rescue Skills through NABC F.R.E.E. Program �� 12

Share Innovative Ideas During IDEAS Collide Showcase: Part 2 �� 32 DCR Systems Sponsors Matrix Trade Institute � 10 Energy Commodity Prices Increased by 59% in 2021, EIA Reports �� 46 G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving �� 40 Gandrud Parts Center Works Hard on the

Anderson - Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? �� 30 Yoswick - Do Automakers, Insurers See Auto

Get Used to Chip Shortages: They are Not Going Away Anytime Soon �� 18

Latest ‘Who Pays’ Survey: Total Loss Administrative Fees Increasingly Common �� 1 Mercedes-Benz Previews Solar EV Concept

National Survey of Auto Body Shops Finds

Certification Requirements? �� 34

as Well �� 1 Rivian Ends 2021 with 1,015 Vehicles Produced, COO Retires from Company �� 27 Rivian Shows Off First Delivered R1S �� 15

NATIONAL

SEMA Launches Online Library �� 42

‘Cheap’ Volkswagen ID.4 Coming ‘in the

SEMA President and CEO to Retire �� 30

$35,000 Range’ �� 37 2 More Automakers Cross Finish Line in Race to Fulfill Automatic Braking Pledge �� 4 3 Winners of Equalizer ‘Tools for Techs’ Campaign Receive Glass Removal Kits �� 18 Advantage Parts Solutions Appoints Executive �� 45 Albert Kemperle, Inc. Joins Wesco Group �� 45 ASE Celebrates 50th Anniversary �� 47 Author/Teacher Trains and Mentors the

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. ©2022 Adamantine Media LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Audi Wholesale Parts Dealers �� 40

Laurel Auto Group of Westmont �� 21

Axalta Coating Systems. �� 7

Luther Bloomington Acura-Subaru �� 23

BMW Wholesale Parts Dealers �� 43

Luther Kia of Bloomington �� 37

Car-O-Liner �� 9

LKQ Corporation �� 13

Certified Automotive Parts Association �� 10

McGrath City Hyundai �� 20

Classic BMW MINI �� 12

Mercedes-Benz of Louisville �� 14

Classic Chevrolet �� 33

Mercedes-Benz Wholesale Parts Dealers �� 45

Classifieds �� 46

MINI Wholesale Parts Dealers �� 43

Columbia Hyundai �� 30

Midwest Parts Group �� 16-17

Equalizer Auto Glass Tools �� 8

MOPAR Wholesale Parts Dealers �� 28-29

Ford Wholesale Parts Dealers �� 34

Nissan/Infiniti Wholesale Parts Dealers �� 45

Gandrud Parts Center �� 19

Patrick Hyundai �� 37

Ganley Westside Subaru �� 15

Sears Imported Autos, Inc �� 32

GM Wholesale Parts Dealers �� 39

Shaheen Chevrolet Parts Warehouse �� 27

Hawkinson Kia �� 18

Spanesi Americas �� 2

Honda-Acura Wholesale Parts Dealers ��24-25

Subaru Wholesale Parts Dealers �� 40

Hyundai Wholesale Parts Dealers �� 41

Symach �� 6

Industrial Finishes and Systems �� 48

The Sharpe Collection of Automobiles �� 31

Kelly BMW �� 22

Valspar Refinish �� 5

Kia of Lansing �� 26

Varsity Ford �� 37

Kia Wholesale Parts Dealers �� 35

Wrenchers �� 11

Car with 620-Mile Range �� 14

Revenues Going Up but Concerns Rising

Estimating ‘Not There Yet’ �� 26

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips, Eric Murphy, Ron Liesch Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

GM Begins Deliveries of GMC HUMMER

Body Shops Meeting Both DRP and OEM

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Wholesale Side �� 42

and BrightDrop EVs �� 43 COLUMNISTS

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of Consulting �� 38

Hyundai Donates $150,000 to Support

Michigan’s $25M Catastrophic Victim Crash

AUTOBODY

INDEX OF ADVERTISERS

REGIONAL

Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras �� 45 Toby Chess Shares Best Practice Documents for Collision Repairers �� 1 U.S. Lawmakers Propose Bill Making Staged Collisions Federal Crime �� 22 Used Electric Car Prices Soared in 2021 �� 37 Volkswagen will Launch EV Bus on ID. Platform March 9 �� 47

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 3

2 More Automakers Cross Finish Line in Race to Fulfill Automatic Braking Pledge Twelve automakers are ahead of schedule in meeting a voluntary pledge to equip nearly all the light vehicles they produce for the U.S. market with automatic emergency braking (AEB). Ford/Lincoln and Honda/Acura installed AEB on more than 95% of the vehicles they produced between Sept. 1, 2020, and Aug. 31, 2021, joining 10 other automakers that fulfilled the voluntary commitment in previous years. The others to cross the finish line early are Audi, BMW, Hyundai/Genesis, Mazda, Mercedes-Benz, Subaru, Tesla, Toyota/Lexus, Volkswagen and Volvo. Two additional automakers exceeded the 90% threshold. However, five of the 20 participating automakers equipped fewer than three-quarters of their vehicles with AEB. The 20 manufacturers submit progress reports annually until they meet the target as part of the commitment brokered by the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration (NHTSA). They pledged to equip at least 95% of their light-duty cars and trucks with the crash avoidance technology by the production year beginning Sept. 1, 2022. Light-duty vehicles are those with a gross vehicle weight rating of 8,500 pounds or less.

“The final sprint these lagging automakers are making shows that a rapid rollout of advanced safety features is possible,” said IIHS President David Harkey. “With the Ford and Honda brands hitting the target, this essential safety feature is now on a huge number of affordable, top-selling vehicles.” Though they fell short of the target, Mitsubishi and Nissan/Infiniti installed AEB on nine out of 10 vehicles they produced last year. Kia just missed that mark, equipping 89% of its vehicles with the technology. Maserati also made big strides, boosting its percentage of AEB-equipped vehicles to 72% from 48% a year earlier. The voluntary commitment doesn’t specify phase-in milestones. However, General Motors, Jaguar Land Rover, Porsche and Stellantis—the company created by the recent merger of Fiat Chrysler and Peugeot—will need big gains to meet the 2022-23 target for light-duty vehicles. In the past year, they equipped fewer than two-thirds of the units they produced with AEB systems that meet the performance requirements of the voluntary commitment. Along with Mitsubishi, two of those companies, Jaguar Land Rover and Stellantis, are among the three that made the most progress in 2021. Mitsubishi raised the portion

of its vehicles equipped with AEB to 92% from just 39% last year. Jaguar Land Rover boosted its tally to 60% from zero. Stellantis raised its total to 43% from 14% in 2020. “It is good news for consumers that city-speed AEB now comes standard across most models, but Stellantis, GM and the other lagging companies really need to pick up the pace,” said David Friedman, vice president of advocacy for Consumer Reports. “The next step should be for NHTSA to set standards that ensure all automakers’ AEB systems work effectively at highway speeds and stop for pedestrians, cyclists and other vulnerable road users both during the day and at night.” Separate from the manufacturers’ commitment, Consumer Reports also tracks the proportion of models on which AEB is standard equipment across all trim levels, as opposed to their overall production volume. Its latest information shows several automakers are making cityspeed AEB standard equipment on 100% of their models, guaranteeing the technology will be included on all new vehicles. To fulfill their present commitment, manufacturers must attest the AEB system on their vehicles meets certain performance standards. The forward collision warning feature must meet a subset of NHTSA’s current 5-Star Safety Ratings pro-

gram requirements on the timing of driver alerts. The AEB must earn at least an advanced rating in the IIHS vehicle-to-vehicle front crash prevention evaluation. To earn that rating, the system must slow the vehicle by at least 10 mph in either the 12 or 25 mph test or 5 mph in both of the tests. Many manufacturers’ standard systems earn a superior rating in the IIHS test. A significant portion of new vehicles can also detect and avoid pedestrians—a requirement for the IIHS TOP SAFETY PICK and TOP SAFETY PICK+ awards. Along with light-duty vehicles, automakers also committed to installing AEB on vehicles with a gross vehicle weight rating of 8,501 t0 10,000 pounds by September 2025. Six automakers reported producing vehicles in that range for the U.S. market in 2021. Among them, Ford equipped three-quarters of its vehicles with AEB, Stellantis 13% and Nissan/Infiniti 12%. IIHS expects the voluntary commitment to prevent 42,000 crashes and 20,000 injuries by 2025. The estimate is based on IIHS research that found front crash prevention systems with both forward collision warning and automatic emergency braking cut rear-end crashes by half. Source: IIHS

Auto Insurers Embrace AI at Scale in 2021 CCC Intelligent Solutions, the SaaS platform powering the P&C insurance economy, on Jan. 7 provided an update to its 2020 insurer AI adoption report, which shows significant growth in AI adoption in auto claims across key metrics. The company reports a 50% year-over-year increase in the application of advanced AI for claims processing. The company also reports more than 9 million unique claims have been processed using a CCC deep learning AI solution, growing more than 80% in 2021, and the number of claims using four or more of its AI applications grew 6X year-overyear.

CCC also announced insurer adoption of its industry-first AI-powered touchless estimating solution, CCC® Estimate–STP, has doubled to eight national insurers since launching the solution in October. Today, more than 95 U.S. auto insurers are actively using CCC’s AI-powered capabilities. “The data paints a clear picture of an industry embracing innovation and insurers activating AI at scale,” said Shivani Govil, chief product officer, CCC. “As our industry becomes increasingly complex and consumer demand for personalized experiences grows, AI has become essential. Discrete applications of AI are

4 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

giving way to broader use cases and more intelligent automation. The sharp increases in the use of multiple AI applications and the rapid adoption towards fully touchless estimating are evidence of the industry’s digital transformation, which CCC is proud to lead, supporting our customer’s ability to redefine the insurance experience.” The sharp growth in AI-powered claims is driven by an increase in the number of insurers using AI solutions and the expansion of applications for AI across their business, including estimating, audit, total loss handling, casualty and fraud detection. The number of insurers using at least one of CCC’s

AI-powered solutions grew nearly 30% year-over-year. A leader in AI-informed solutions, CCC’s application of AI expands beyond claims decision making. CCC’s solutions leverage AI to improve customer interactions, streamline operations and digitize assessments. Whether applying language recognition to better engage consumers, computer vision to assess medical bills, or deep learning to accelerate decisions across the claims lifecycle, CCC continues to apply AI to improve policyholder interactions and operations across the network. Source: CCC Intelligent Solutions

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Caliber Named to Best In Business List Caliber, whose automotive service brands include Caliber Collision, Caliber Auto Care and Caliber Auto Glass, has been named to the Inc. 2021 Best in Business list. Inc. Best in Business Awards honor companies that have gone above and beyond to make a positive impact. By leading with its purpose of Restoring the Rhythm of Your Life, Caliber was awarded a gold medal in the Extra Large Company Size (500+ employees) category and is the only auto services provider to be recognized. Committed to its company mission to be the most trusted automotive service provider in every community it serves, Caliber led through the challenges of 2020 and 2021 by providing a safe workplace for teammates, continuing to serve customer needs and supporting each community it serves all of which continued to elevate the automotive repair and maintenance service experience. Source: Caliber

Michigan’s $25M Catastrophic Victim Crash Fund Hasn’t Spent a Cent by Steve McClallen, The Center Square

Not a cent from a $25 million relief fund created four months ago has been spent on medical providers to stabilize a July 45% fee cut for Michigan’s auto accident insurance providers. DIFS spokeswoman Laura Hall told The Center Square in an email the agency hasn’t received any complete applications for the Provider Fund as of Dec. 13, noting only one company submitted an incomplete application. “We expected it would take some time for providers to collect information and go through the process required by the statute,” Hall wrote. “In order to be eligible for funding, providers must submit bills to insurers for services rendered after July 1, 2021, complete DIFS’ utilization review process and gather required documentation prior to submitting an application. “The Legislature has directed that DIFS may only consider applications that are complete and include all required information and supporting documentation. DIFS

continues to work closely with providers who have questions about the Provider Fund and the new fee schedule.” The Detroit News first reported the story. When Michigan lawmakers reformed the highest-in-the-nation auto insurance fees, they didn’t

Credit: John Panella, Shutterstock.com

want to leave catastrophic crash victims without funding from the 45% fee cut in July. So they created a $25 million million Post-Acute Auto Injury Provider Relief Fund that medical providers can apply to for extra funding, but red tape has delayed any business from tapping that fund in the last four months, some say.

“Providers are not going to be able to access this in a timely fashion to make up the deficit that they’re accruing,” Michigan Brain Injury Provider Council Board President Tom Judd told the Detroit News. Medical providers must show internal records to Department of Insurance and Financial Services (DIFS), but medical providers say they need a receipt to request fund money and are struggling to get paid from insurance companies, the News reported. Medical providers can request up to $500,000 through September 2022. The application form and more information is available at Michigan.gov/ProviderFund. House Speaker Jason Wentworth, R-Farwell, told the News the program data could improve no-fault insurance reform. “We have to reassess consistently and constantly,” Wentworth said. “But we can’t just open up the act and make changes until we have the information and data we need to make the correct changes.”

Crash Champions Hosts Chicago-Area NABC F.R.E.E.™ Event Crash Champions, LLC, on Dec. 14 hosted a National Auto Body Council® (NABC) First Responder Emergency Extrication (F.R.E.E.™) event for Chicago-area fire departments including New Lenox, Frankfort and Mokena. The event, which included more than 25 firefighters, provided hands-on training of new model vehicle cutting techniques, addressing high-strength steel and composite materials, multiple airbags, onboard technology and changing vehicle design. The vehicles for the program were donated by GEICO Insurance®, and Genesis Rescue provided the classroom education and extrication demonstration. “This is a vital program that should be replicated in every community across the country,” said Matt Ebert, founder and CEO of Crash Champions. “The NABC and its partner organizations have done a tremendous job in ensuring first responders—the people we rely on most when an accident occurs—are properly trained to

handle the incredible complexity of safely extricating individuals from today’s modern vehicles. The Crash Champions family is proud to continue its long-standing support for this outstanding initiative.” “It is imperative that our first responders are prepared to handle the growing complexities of safely extricating people from today’s more technologically advanced vehicles,” said Lt. Nick Peters of the Frankfort Fire Protection District. “To this end, we’re seeing more and more next-generation cars on the road, and there’s no question that today’s training served as a critical—and practical—exercise that will help our men and women on the front lines save lives. We are incredibly grateful to the NABC, Crash Champions, GEICO Insurance and Genesis Rescue for their commitment to this valuable program.” For more information about Crash Champions, visit www.crashchampions.com. Source: Crash Champions

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Report Finds Michigan Auto Insurance Rates Remain High Despite Reform Law by Mark Rosanes, Insurance Business Magazine

Despite Michigan’s auto insurance reform law pushing down premiums by an average of 18% since its implementation—the steepest drop in the U.S.—the state still has the most expensive auto policies in the country, a new analysis by University of Michigan’s Poverty Solutions initiative revealed. Moreover, the analysts have found the legislation has failed to reduce disparities in cost by race and geography. According to the new report, the average car insurance rate in the state went down from $3,106 in 2019 to $2,535 last year. During the period, auto premiums in Detroit dropped from $6,314 to $5,146, registering the same rate of decline (18%). However, average rates in the city still accounted for 18% of its residents’ median income, which was significantly above the 2% threshold the U.S. Department of Transportation has set for auto insurance to be considered affordable. The 2019 law also bars insurance companies from basing premiums on

ZIP codes and other non-driving factors, including race, gender, marital status and credit score. Despite this, the analysts found insurance rates were still “highly correlated with race, more so than geography.” According to the report, the average premiums for the 37 ZIP codes across Michigan where the majority of residents are Black was $5,500 before the law was implemented. The amount was significantly higher than the state-wide average of $3,106. “The 2019 reform law was a first step, but lawmakers should not be content,” said Amanda Nothaft, senior data and evaluation manager at Poverty Solutions and co-author of the report. “More must be done to eliminate discriminatory rate-setting practices and further reduce premiums.” “We also need to consider the impact on people who have been catastrophically injured in auto accidents and ensure medical providers are appropriately reimbursed for long-term care,” she added. The reform law also eliminated mandatory unlimited personal injury protection (PIP) coverage and en-

forced fee limits for medical care related to injury accidents covered by insurance. According to the analysts, the method used to cap medical fees may be unnecessarily stringent and out of line with national peers, causing a crisis in access to care for victims of catastrophic accidents that occurred prior to reform. The authors also offered recommendations to further reduce premiums and address the unintended consequences of reform that led to some catastrophic accident victims losing access to medical care. “While unlimited personal injury protection coverage is no longer mandatory, Michigan is still an outlier in the amount of PIP that drivers have to purchase,” the analysts wrote. “Offering more PIP coverage options would help reduce rates overall.” To address racial disparities in auto insurance rates, the researchers suggested that the factors insurers use to set premiums be “more regulated” by establishing mandatory driving-related factors that must carry a certain weight in the calculation.

“The 2019 reform prohibited the use of certain non-driving factors, but insurance companies can still use proxies for those factors—like ‘territories’ instead of ZIP codes and insurance scores that include a credit score component—that reinforce insurance redlining,” the researchers noted. The analysts also urged policymakers to revisit reimbursement rates for medical procedures not included in the Medicare fee schedule. “Containing the medical costs for auto accident victims is key to reducing auto insurance costs, but the sharp reduction in reimbursement rates for certain services under the 2019 reform has forced some medical providers out of business and jeopardized access to long-term care for some catastrophic accident victims,” the researchers wrote.

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Hyundai Donates $150,000 to Support Communities Impacted by Kentucky Tornadoes Hyundai Motor America and its Kentucky dealers, including Gates Hyundai in Richmond and Swope Hyundai in Elizabethtown, on Dec. 23 announced donations of $100,000 to Feeding America, Kentucky’s Heartland (FAKH) and $50,000 to the American Red Cross to support Western Kentucky communities devastated by the Dec. 10 tornadoes. “Hyundai and

its dealers are proud to stand with the people of Kentucky as they work to rebuild their homes and communities after these devastating tornadoes,” said José Muñoz, president and CEO, Hyundai Motor North America. The funds for Feeding America, Kentucky’s Heartland will be used to provide food to communities across 24 Kentucky counties.

“This will be a very long recovery process for the families and communities who sustained devastating damage during this natural disaster,” said Jamie Sizemore, FAKH executive director. “The food insecurity rate was already high in Kentucky and now families and seniors affected by this storm must pick up the pieces and make hard choices. We are grateful for partners like Hyundai that will help FAKH not only put food on their table but provide hope as they rebuild their lives.” The funds for the Red Cross will be used for ongoing relief efforts, including supporting people staying in emergency shelters and other temporary accommodations, such as state park lodges and hotel rooms. With the help of partners like Hyundai Motor America, the Red Cross has served more than 36,600 meals and snacks, distributed more than 21,000 relief items, and provided more than 4,100 individual care contacts. Source: Hyundai Motor America

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DCR Systems Sponsors Matrix Trade Institute DCR Systems announced Jan. 11 the company is the first corporate sponsor of the Matrix Trade Institute’s Collision Program as a Foundation Level Partner. The institute offers upskill industry efficiency training boot camps for employers that aim to help technicians reach the next level by improving their skills and learning efficiency techniques to help them become more productive and grow. The boot camps are paid for by employers. DCR Systems, also based in Ohio, develops on-site accident repair facilities for auto dealers seeking to outsource this function as an additional fixed operation. CEO Dustin Peugeot said the goal at Matrix is to align with forward-thinking operations like DCR Systems that have the vision to see a better way forward and the courage and commitment to deliver for their employees. Source: DCR Systems

Michigan’s $400 Auto Refund Must Be Issued by May 9 by Scott McClallen, The Center Square

Michigan Gov. Gretchen Whitmer’s office issued a May 9, 2022, deadline for the $400 per vehicle auto insurance refund. The Michigan Department of Insurance and Financial Services (DIFS) has issued a bulletin to Michigan’s insurers and launched a consumer FAQ page to inform insurers and consumers of the timeline and other requirements for Michigan’s upcoming $400 per vehicle auto insurance refunds. The refund via the surplus was announced in early December by the Michigan Catastrophic Claims Association (MCCA) fund upon Whitmer’s request. “Michigan used to have the highest auto insurance rates in the nation, but we worked together to put Michiganders first, significantly lowering the cost of insurance and putting $400 per vehicle back in driver’s pockets while continuing to provide access to the most generous benefits in the nation,” Whitmer said in a statement. “I am pleased with how quickly the plan

was developed and appreciate the clear guidance provided both to insurers and consumers. The bulletin and website lay out the timeline and requirements so that insurers understand that they must process the refunds as quickly as possible, and Michiganders know when and how they will get the surplus money they are owed.” The MCCA refunds were possible by the cost-saving and fraud prevention provisions of the historic, bipartisan auto insurance reform Whitmer signed into law in 2019. The MCCA’s refund plan will send $400-per-vehicle refunds to policyholders for every vehicle that was insured as of 11:59 p.m. Oct. 31. Surplus funds will be transferred by the MCCA to insurers by March 9, and the new DIFS bulletin directs insurers to issue refunds via check or ACH deposit to consumers as soon as possible, but no later than May 9. “The governor directed DIFS to take an active role in ensuring that refunds would be issued expeditiously to Michiganders who have paid into the fund for de-

cades,” DIFS Director Anita Fox said in a statement. “The DIFS bulletin ensures that consumers are protected and imposes a May 9, 2022, deadline for issuing refunds to all eligible drivers. Our goal is to make sure that this money makes it to the pockets of Michiganders as quickly and securely as possible.” The DIFS has also launched a consumer FAQ page at Michigan. gov/MCCArefund. Additional information about the auto insurance reform law, including the amnesty period that allows uninsured drivers to get penalty-free auto insurance if they apply for coverage before Jan. 1, 2022, can be found at Michigan.gov/AutoInsurance. Consumers with questions or concerns about auto insurance can contact DIFS by calling Monday through Friday 8 a.m. to 5 p.m. at 833-ASK-DIFS (833-275-3437) or by emailing autoinsurance@michigan.gov.

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NABC Recycled Rides® Program, Washburn Tech Donate Refurbished Vehicles Kansas Recipients On Dec. 9, two deserving Topeka, KS, residents were presented vehicles to provide independence and the ability to work and take care of their families, thanks to the National Auto Body Council (NABC) Recycled Rides® program, along with the vehicle donors and Washburn Tech. These were the 31st and 32nd NABC Recycled Rides vehicles the school has presented. “Congratulations to Eric and Sharlene Showalter for their leadership of and commitment to this program,” said Bill Garoutte, president and CEO of NABC. “Refurbishing and presenting 32 cars over a number of years is a milestone. Doing this while helping students gain valuable hands-on repair skills and an appreciation for giving back to their community is amazing.” The presentation was held on the Washburn Tech campus. Along with NABC Recycled Rides program representatives, the participants included Washburn Tech auto service and auto collision students with instructors and professional

mentors in the community; two recipients who were chosen by a selection committee comprised of Washburn Tech students and facilitated by leaders of the United Way of Greater Topeka; and local businesses and individuals who donated parts and supplies. NABC and Washburn Tech presented two vehicles to the deserving families, including a 2008 Toyota Yaris and a 2008 Mercury Sable. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. Additional partners in the NABC Recycled Rides presentation include 1-800 Charity Cars, LKQ, PPG, O’Reillys and Briggs Auto Body, which donated the T-shirts. Source: NABC

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Chicago Luxury Car Dealer Hit by Daytime Smash and Grab by Steven Symes, Motorious

A luxury car dealership in downtown Chicago was the target of a brazen smash and grab robbery in broad daylight, shocking many. On the afternoon of Dec. 11, two men entered Bentley Gold Coast, each of them wearing hoodies and masks, in a coordinated attack which went down while no customers were inside. Fortunately, nobody was hurt in the incident. The suspect standing by the glass doors as a lookout was armed with a gun, said Gold Coast owner Joe Petito in an interview with local media. The other took a hammer and smashed open the glass cases containing numerous luxury watches in the showroom, valued at millions of dollars. While Petito said he had armed security in the showroom, they didn’t engage the suspects since the one man kept his gun lowered. “If he raised that gun, he would have been shot,” said Petito. “We’d probably be in court defending ourselves.”

Petito angrily called out Chicago Mayor Lori Lightfoot and Cook County State’s Attorney Kim Foxx for being too lenient on criminals. Lightfoot recently criticized retailers, saying they weren’t doing enough to prevent organized heists at their stores, drawing plenty of criticism in return. When asked by a local reporter if the incident makes him consider moving his business out of Chicago, Petito said, “it’s certainly one of my thoughts.” Numerous cities like Chicago, Los Angeles and San Francisco have been plagued by retail theft. In some attacks, flash mobs have descended on shopping areas, overwhelming security and police as they make off with armloads of stolen merchandise. Gold Coast not only sells Bentleys, Lamborghinis, Ferraris, Bugattis, Rolls-Royces, Porsches and other high-end cars, it carries an array of luxury watches and jewels. The 11,000-square foot building also houses a service department.

GM to Invest More Than $51M at Bedford Aluminum Casting Facility General Motors announced Dec. 7 plans to invest more than $51 million to install state-of-the-art equipment at its Bedford, IN, aluminum die casting foundry to support the manufacture of drive unit castings for the upcoming Chevrolet Silverado EV and other current casting applications. The all-electric Silverado, powered by the Ultium Platform, will debut Jan. 5 at CES, the world’s most influential technology event. The renovation work will begin immediately at the facility. Earlier this year, the 1 million square foot site began producing electric drive unit castings for the 2022 GMC HUMMER EV Pickup and 2024 GMC HUMMER EV SUV. Production of the 2022 GMC HUMMER EV Pickup will begin in December at GM’s Factory ZERO assembly plant, located in Detroit and Hamtramck, MI. “Our Bedford operation is one of the leading aluminum die casting facilities in the world and this investment is a testament of

our confidence in the employees at Bedford,” said Phil Kienle, GM vice president of North America manufacturing and labor relations. “This investment is another example of the company bringing along our workforce in our journey to an all-electric future while we strengthen our current products.” GM’s Bedford plant opened in 1942 and is a leader in aluminum die casting capabilities. The site’s nearly 900 hourly and salaried workers manage semi-permanent mold and die casting processes that produce cylinder heads, cylinder blocks, transmission cases, structural components and drive unit housings used in Chevrolet, Buick, GMC and Cadillac vehicles. Bedford’s union team members are represented by UAW Local 440 and IBEW Local 16.

West Plains, MO, First Responders Learn New Rescue Skills through NABC F.R.E.E. Program More than 35 first responders from West Plains, MO, and surrounding areas gathered recently for a handson demonstration of the latest techniques in emergency vehicle extrication, preparing them to provide the best response for car accident victims.

The demonstration was thanks to the National Auto Body Council® (NABC) First Responder Emergency Extrication™ (F.R.E.E.) program, CARSTAR Gobel’s Collsion, Allstate Insurance and Genesis Rescue Systems. When drivers in West Plains and the surrounding areas have an accident, they rely on the commu-

nity’s first responders to be there to help them to safety. And when they are driving a late-model vehicle with numerous airbags, advanced technology or electric/hybrid engines, the rescue can be more challenging. The NABC F.R.E.E. program helps first responders stay abreast of the rapid changes in vehicle design, including high-strength steel, airbags, advanced restraint systems and onboard technology. Alternative fuel systems found in electric and hybrid vehicles present new challenges for first responders on the accident scene. CARSTAR Gobel’s Collsion at 1631 Old Airport Road, West Plains, hosted the first responders. Allstate Insurance provided the vehicles, and Genesis Rescue Systems supplied the classroom education and extrication demonstration. Source: NABC

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SPONSORED EDITORIAL Sponsored by: The CAR Coalition

It’s Time to Protect Your Right to Repair America’s Vehicles Car ownership has long been a symbol of independence and personal freedom in American society. Thanks to the work of the independent auto care industry, which employs 4.7 million people and includes independent manufacturers, distributors, repair shops, and parts stores, car owners can feel confident making repairs and investing in the longevity of their car. However, due to embargoed technology solutions and anti-competitive behaviors within the marketplace, local auto repair shops and some dealerships are feeling the pressure of high costs and unnecessary burdens as a result of car repair restrictions.

affordable automobile collision repair parts,” says Justin Rzepka, Executive Director of the CAR Coalition. “It’s time for Congress to get serious about solutions, including the SMART Act, to ensure businesses can offer the auto repairs their customers want.”

Original equipment manufacturers (OEMs) are increasingly using a range of tactics, like patent thickets, controlling telematics data, position statements, repair procedures, and trademarks, to force repair shops and dealerships to use OEM parts and to steer more business to their preferred repair networks. These practices not only severely limit consumer choice, but cause economic ripple effects for businesses nationwide.

The good news is that an overwhelming majority (78%) of vehicle-owning voters support federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the SMART Act. And only 25% of voters believe that design patents should be used for common car items, like side mirrors and bumpers.

Reform is critical to restoring competition in the marketplace. Six automakers were among the top 20 U.S. design patent recipients in 2020. These automakers have drastically increased the number of design patents they’ve applied for and been granted over the past 20 years – roughly 250% in at least one case!

Repair restrictions on cars and other items have been skyrocketing in recent years due to OEMs increasingly misusing design patents to crowd out competitors in the marketplace. On top of that, OEMs are tightening their grip on vehicle data. These restrictions make it harder for businesses to offer alternative parts during the car repair process. While some states, like Massachusetts and Illinois, have made promising strides in the growing automotive right to repair movement recently, there’s still work to be done. One national solution is the bipartisan Save Money on Auto Repair Transportation (SMART) Act (H.R. 3664), which would allow for greater choice of quality, safe, and affordable aftermarket car parts – putting business owners and consumers alike back in control. The SMART Act would: • Reduce from 15 years to 2.5 years the time that car manufacturers can enforce design patents on collision repair parts, such as fenders, quarter panels and doors, against alternative parts manufacturers; and • Maintain business owners and consumers’ right to choose from a multitude of brands, prices, and products when purchasing parts and making repairs. Importantly, the SMART Act maintains appropriate intellectual property rights for automakers by upholding the existing patent period in which automakers can enforce design patents against other automakers. “Local businesses and consumers lose when 15-year design patents keep independent manufacturers from offering safe, quality, and

The SMART Act is currently sitting before the House Committee on the Judiciary, as local businesses cope with stress due to the pandemic and while inflation continues to drive up vehicle maintenance costs. Alternative parts are 26-50% less expensive than OEM parts, while also helping to decrease the cost of OEM parts by 8% through competition. These are reasons why the SMART Act will not only increase choice, but will also translate to lower prices for car repair parts. In addition to the CAR Coalition, which includes American Property Casualty Insurance Association (APCIA), Automotive Body Parts Association (ABPA), AutoZone, and LKQ, the SMART Act is supported by the Consumers for Auto Reliability and Safety Coalition, National Association of Mutual Insurance Companies (NAMIC), Auto Care Association, RetireSafe, AARP, and more. Last year was one of the biggest years for right to repair, thanks to hard work from businesses, advocacy groups, consumers, and government officials alike. In 2022, it’s time to build on the momentum to protect your right to repair America’s vehicles. Learn more about the SMART Act and get involved today: www.carrepairchoice.org/ take-action. autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 13

Mercedes-Benz Previews Solar EV Concept Car with 620-Mile Range by Andrei Nedelea, Inside EVs

Battery electric vehicles could have increased range if they also had a solar component that ensured some charge went into the battery when hit by sunlight. There are currently no mainstream manufacturers that offer an EV with meaningful solar charging, but Mercedes-Benz wants to change that with the Vision EQXX. The EQXX is a sedan designed to drive more than 620 miles on one charge, but its battery pack is actually smaller than that of the longest range EQS. Mercedes doesn’t give the exact capacity, but it is just under 100 kWh, and it is thanks to solar charging it achieves the impressive claimed range. Mercedes explained the solar array comprised of ultra-thin individual panels, which spans most of the vehicle’s roof, give the vehicle around 15.5 miles of extra range on an average day. If you’ve been following other solar EVs, then you will know companies state the average range gain, but you actually may get more on a really sunny day. But it’s not just solar charging that allows the EQXX to achieve its super impressive efficiency and range numbers. Its remarkably low mass, which the manufacturer says is around 3,900 pounds, and low coefficient of drag also play a major part. Sheer acceleration was not a key concern for this vehicle, although they did try to eke as much “go” out of the powertrain as possible, employing some Formula 1 tech to do it. It has a single electric motor that makes 201 horsepower, so factoring in its mass, we would estimate it sprints to 62 mph in around 7.5 seconds; top speed is not mentioned, but it probably won’t exceed 112 mph. The manufacturer said it is also experimenting with an electric architecture that supports more than 900 volts, although it’s unclear if this will make its way into the production vehicle. In the press release, Mercedes said being “tasked with pushing the envelope of technical feasibility on all levels, the battery development

team also decided to experiment with an unusually high voltage. Increasing the voltage to more than 900 volts proved an extremely useful research tool for the develop-

tures in the production version. We expect the exterior design to make it to production virtually unchanged, although the interior seems more concept car-like, although it

ment of the power electronics. The team was able to gather a great deal of valuable data and is currently assessing the potential benefits and implications for future series production.” The battery pack is especially light for its capacity—just 1,091 pounds. It features an advanced thermal management system with an integrated heat pump and relies on what Mercedes calls cooling on demand, which “has been further developed for the VISION EQXX not only for optimal cooling based on the prevailing circumstances,” the automaker said. “The exceptional efficiency of the electric drive unit means it generates only minimal waste heat. This helped keep the thermal management system extremely small and lightweight,” Mercedes said. “The carefully engineered interaction of aero-shutters, coolant valves and water pumps ensures the electric drive unit, comprising the power electronics, electric motor and transmission, maintains the most efficient temperature balance at minimum energy cost.” Other cool EQXX features include a bespoke platform based on an F1-style lightweight subframe, wider front track, aluminum alloy brake disks and aero wheels shod in ultra-low-rolling-resistance tires that have also been aero-optimized. And it’s clear because so much thought went into each and every part, we will see these all these fea-

does have seat belt buckles, so it seems like some parts are already close to final and already functional. The full-width screen that spans the width of the dashboard may also make it to production. And if you were wondering what the XX in the EQXX’s name stands for, Markus Schäfer, mem-

14 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

ber of the Board of Management of Daimler AG and Mercedes-Benz AG, CTO responsible for development and procurement, explained that. “As a halo car, it firmly establishes Mercedes-Benz as the luxury tech brand in the automotive world and beyond,” Schäfer said. “And the way we developed it is as revolutionary as the vehicle itself. VISION EQXX has seen the best minds from our R&D centers work together with engineers from our Formula 1 and Formula E programmes. They are proving that innovations from motorsport—where powertrains are already highly electrified—have immediate relevance for road car development. “We are challenging current development processes with innovative spirit and outside-the-box thinking. This truly is the way forward.”

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‘Who Pays’ Survey terly “Who Pays” surveys in conjunction with CRASH Network. “It can involve more teardown, more research of OEM procedures, vehicle scans and more.” According to the 2021 survey, 74% of shops itemize charges—as opposed to charging a flat fee—for total loss processing. In addition to the administrative time, these charges may include moving a non-drivable vehicle, covering the vehicle to protect it from weather, etc. In 2015, 38% of shops believed the top eight largest insurers in the “Who Pays” surveys “never” paid an administrative fee for total losses. Today, only 17% still think so. The latest quarterly “Who Pays for What?” survey is now open through the month of January. It focuses on “not-included” refinish labor operations. Shops can take the survey at https://www.surveymonkey.com/r/YDTT8NN Survey participants receive a

free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https:// www.crashnetwork.com/collisionadvice Source: CRASH Network

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Rivian Shows Off First Delivered R1S by Mark Kane, Inside Evs

Rivian has released a little more detail about the first two R1S SUVs delivered in December, but remains mostly in stealth mode.

As it turns out, the first two were handed over to company CEO R.J. Scaringe and CFO Claire McDonough. The first-ever R1T truck was delivered to Scaringe, and most of the initial R1Ts were delivered to Rivian’s employees. It’s clear Rivian continues its strategy of delivering the first vehicles to employees and, as the ramp-up progresses, will expand to customers. Such an approach might be

helpful to catch the last details that require refinement and improve quality before the world will take a look at the vehicle and provide independent reviews. “We’re working towards ramping production over the next few months on our way to full volume production,” the company said. “Thanks to our team for all the hard work to make it happen!” Rivian is an EV startup, which means it’s not easy for the company to launch its first products, especially as three products are being launched simultaneously— the R1T, the R1S and EDV van. According to the recent Q3 2021 report, the company has some 71,000 pre-orders for the R1T and R1S. As of Dec. 15, 652 were produced and 386 were delivered, including two R1S. Production and deliveries are expected to miss the target of about 1,200 R1T and R1S combined by the end of 2021, so we have to wait for 2022 for a higher volume of thousands of vehicles per month.

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Get Used to Chip Shortages: They are Not Going Away Anytime Soon by Loukia Papadopoulos, Interesting Engineering

There’s no denying there is a global chip shortage. In November, it was reported Japan had committed $5.2 billion toward providing support for semiconductor manufacturers in a bid to help solve the world’s ongoing chip shortage. But is that enough? It seems not. During a recent earnings call, Micron CEO Sanjay Mehrotra told investors it is clearly not. “Across the PC industry, demand for DDR5 products is significantly exceeding supply due to non-memory component shortages impacting memory suppliers’ ability to build DDR5 modules,” Mehrotra said. “We expect these shortages to moderate through 2022, enabling bit shipments of DDR5 to grow to meaningful levels in the second half of calendar 2022.” What does this mean for consumers? Cars are more expensive, computer makers are struggling to keep up with consumer demand, and many products have been se-

verely delayed, such as the PlayStation 5, which is still impossible to order a year after its launch, according to Yahoo Finance. COVID is partially to blame. Carmakers assumed people would not want to buy cars during the pandemic and slowed down production, only to discover the opposite was true. COVID also forced the slowdown of many production lines such as those of chipmakers. Companies are trying to do something about the crisis. Intel, TSMC and Samsung are investing in new factories but it will still take at least two years until they are up and running. Experts are estimating the shortage will continue well into 2022 and 2023. Intel CEO Pat Gelsinger said he expects the situation to continue till 2023. “COVID disrupted the supply chains, causing it to go negative. Demand exploded to 20% yearover-year, disrupted supply chains and created a very large gap, and that exploding demand has persisted,” he said to Nikkei.

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Bill Brown Ford won the title for the past two years, and the California group has held the title for the prior 29 years. This year, from sales to service to prep and finance, every depart-

ing their customer’s automotive needs. This customer-first focus has enabled them to build a fiercely loyal customer base, with some families buying from the dealership for 40, 50 years, or more. Their staff is equally as devoted, with some employees working at the dealership for 40+ years.

“This is a historic win that finally brings this title back to the Detroit region where it belongs,” — Dave Tashman ment of the dealership was focused on winning this title while successfully and safely navigating a global pandemic, semiconductor shortage and supply chain interruptions better than anyone else in the world. “This is a historic win that finally brings this title back to the Detroit region where it belongs,” said Dave Tashman, general manager of Bill Brown. “This win proves that a dealership can put their customers, community and employees first, and still succeed at the highest level.” Bill Brown has a 100-year history of anticipating and understand-

“At Bill Brown, we offer a simplified buying process, where one person advocates for a customer from start to finish,” said Matt Garchow, sales manager. “Thanks to our streamlined sales approach, in 2021, we were able to get more customers back on the road, enjoying their new Ford in record time.” Source: Bill Brown Ford www.autobodynews.com

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3 Winners of Equalizer ‘Tools for Techs’ Campaign Receive Glass Removal Kits Equalizer recently announced the three winners of its 2021 Tools for Techs campaign, in which it gave a complete glass removal kit to deserving technicians. The company started accepting online nominations of outstanding technicians in the auto glass industry in November. It chose the three winners from about 120 submissions. Marketing Manager Kyle Calderwood said the annual campaign, now in its third year, was started as a way to give back to the community and reward people who truly deserve it. All three winners will receive a glass removal kit complete with all the necessities for a windshield replacement—multiple HydroBlades, windshield stand, push knife set, BTB Winged Scraper set, ZipKnife set, vacuum cups and much more. Each winner will also get to choose a Milwaukee or DEWALT caulking gun and one of five Equalizer power tools. The kits are worth about $2,000 each. The winners are:

Sean Ahlers, Janesville, MN The person who nominated Ahlers called him a “give-you-theshirt-off-his back kind of guy who enjoys helping others.” The nomination said Ahlers often comes in on Saturdays fixing things that need attention, and could use some new tools. Jamie McCrory, Salida, CO McCrory’s nomination said he started working in the industry about a year ago, and it would be good to help him with fresh tools. Peter Yoth, Rancho Santa Margarita, CA The person who nominated Yoth has known him for 14 years, and said he is the hardest-working person she’s ever met. Over Thanksgiving, Yoth underwent surgery to remove a tumor in his neck. He is recovering now and getting back into fixing cars. Equalizer thought it would be great to help him get back into it with new tools. Source: Equalizer

18 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

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Toby Chess Shares 4. Best Practices for Two-Sided Bumper Repair Using Adhesives 5. Best Practices for Using 2K Epoxy Primer Here is Toby Chess’s newsletter: On Oct. 15, Dana Caldwell wrote an article for Repairer Driven News about why people pick the collision repair shops they do. The results were an eye opener. You would think insurance driven would be No. 1, but in fact it was last in the survey. Sixteen percent choose their auto body shop due to word of mouth. As you know, I spend a lot of time in body shops for I-CAR welding tests and most of us are reactive instead of proactive. How many of you have a written SOP for checking in a vehicle? How many have a written SOP for keeping your customer informed? How many have a written SOP to do a 48- to 72-hour followup after the car has been picked up? How many have signed job descriptions for each position in your shop? With some people choosing word of mouth, we need to do things better, and the easiest way to accomplish this is the use of written SOPs. I have more than 75 SOPs, and I will be adding 50 more over the next couple of months. I have three example stories to drive my point home. This was a used door from a well-known wrecking yard. The dent at the molding reduced the price by $50. I put my PDR light on it and asked the owner “Do you think that is a one-hour dent?” His answer was, “Probably not, more like two hours.” I used my light to circle all the dents—five more. I asked him who is going to pay for the additional labor, prime and materials for the door. That door needed between five and six hours of repair. His tech made $50, he lost a couple hundred dollars of sales and he increased his cycle time because the tech was not working on the customer’s door but a used door instead. I have an SOP on handling used sheet metal in the future, so this does

not occur again. Moving on, the next example I would the highlight is aluminum dent repair using a weld-on pulling pin. I received a call from Erik Spitznagel, owner of Dent Fix Equipment. He sold an aluminum repair station to a shop in the Midwest. The body shop was trying to pull out a dent on a cab corner on a 2017 Ford F-150. The problem was the pins would not stick and they were “blowing” holes in the aluminum. I called the shop owner and asked him what procedures he was using. He did not know, but got his tech on the line. The technician said he sanded the panel to bare aluminum using a 120 grit DA sander. When the pin did not stick, he increased the voltage and blew a hole in the panel. He did another one with the same results. I told him the recommended steps. First and foremost, the aluminum needs to be cleaned with a stainless steel brush, to prevent galvanic corrosion. I explained the small brush works the best to remove aluminum oxide from the weld site. Next, the site needs to be cleaned with good wax and grease remover. Step three is to apply one silicon stud and one magnesium stud, turn the power setting to 3 and see which one sticks the best. After destemming the proper stud, load a pin into the gun, pushing it down with end of the stainless steel brush. Grease on your finger will contaminate the pin and it will not stick. I told the tech to make sure the pin was perpendicular to the metal. I asked the manager if he would like a best practice sheet on the proper steps needed for aluminum stud installation and removal, and he said sure. He also said if there was a problem, he would call, which he never did. I have included this best practice as an attachment. My third example deals with plastic repair using adhesives. Recently, I received a call from a Kent Automotive sales representative. One of his shops called and told him the bumper repair they performed failed. I made an appointment with the shop and I arrived a couple of days

20 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

later. I asked the gentleman who repaired the bumper what steps and products he used. He gave an abbreviated version and I explained I needed the step by step process he used. He said he removed the paint from the front side of the bumper with a 120 DA sander, but not the back side. He then cleaned the front and back side of the bumper with Prep-Sol. I explained to him that using a solvent-based wax and grease remover is designed to remove adhesives. The solvent will wick into the raw plastic and when the adhesive is applied, the solvent wax and grease remover will not allow the adhesive to stick. I explained a water-based wax and grease remover needs to be used. I also told him he needed to sand the backside with 80 grit DA to abrade the plastic so the adhesive would adhere to it. He showed me the product he used for the back side, which was the wrong material. He used another manufacturer’s product for the front, and that manufacturer requires an adhesion pro-

moter before the application of the adhesive, which he did not use. We went into the shop and I did a clinic on plastic repair. He brought me a water-based wax and grease remover from a different manufacturer. I explained to him that is probably OK but he needs to use one manufacture’s system, and using or mixing other companies’ products may interact and cause the repair to fail. I have included this best practice as an attachment. If you want a bumper repair clinic on adhesives or nitrogen welding, I would be more than happy to come to your shop and conduct a clinic. There is not charge for this service. Just call 310-9957909 or send me an email at tcspeedster@gmail.com. In conclusion, if the three shops had SOPs in place and they were followed, these failures would not have happened. My next column will deal with creating your own SOPs. One final request: please let know what are your thoughts on this or if you have ideas that you want to share.

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Collision Engineering Program Gets Grant The Collision Engineering Program has received a $700,000 grant from ECMC Foundation to support the growth and expansion of the industry-leading program’s efforts. With foundational support provided by the Enterprise Holdings Foundation, the program is designed to attract and develop entry-level talent to fill essential roles within the collision repair industry and enhance retention and advancement.With nearly 100,000 new entrant collision technicians needed between 2021 and 2025, according to the TechForce Foundation, the Collision Engineering Program addresses the ongoing technician shortage and skills gap. The program replicates Ranken Technical College’s unique two-year apprenticeship model at schools across the U.S., preparing students for success by treating them as professionals from day one. Students gain real-world education working alongside industry experts while also earning their associate degree. Source: Enterprise Holdings

Continued from Cover

National Survey “Our business is currently stronger than it’s ever been,” a Missouri shop owner said.

“Scheduling out two months,” a North Carolina shop owner said. An optimistic Minnesota shop manager pointed to his shop’s fivemonth backlog of work and “plenty of business in our area,” though he did acknowledge concern that 75%

The survey found among the collision repair businesses that said they received a second-round Small Business Administration Paycheck Protection Program (PPP) loan in 2021, 70% said they have already received loan forgiveness. None of the shops surveyed reported having their loan forgiveness application rejected, but 20% said they still planned to apply to have the loan forgiven, and the remaining 10% were undecided about applying. Among those who said they received a first-round PPP loan in 2020, 84% said the loan had been forgiven; the balance either had not applied for forgiveness, were awaiting approval or were undecided about seeking forgiveness, but again, none reported having their loan forgiveness application rejected.

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“This company has made it through many ups and downs since it opened in 1984,” a Wisconsin shop manager said.

of the shop’s employees will retire within the next five to 10 years. “Need fresh faces ASAP,” he said.

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U.S. Lawmakers Propose Bill Making Staged Collisions Federal Crime U.S. Reps. Garret Graves and Henry Cuellar have introduced a bill that would make it a federal crime to stage a vehicle collision and fraudulently claim financial damages. Graves (R-LA) and Cuellar (D-TX) say the legislation, the Highway Accident Fairness Act of 2021, would improve the safety of truckers and drivers on highways and protect trucking companies from the financial burdens of defending against or settling fraudulent insurance claims resulting from staged collisions. According to a statement from Cuellar’s office, the bill would: • Assure fair and prompt recoveries for highway accident victims with legitimate claims Provide for federal court consideration of interstate cases of national importance under diversity jurisdiction • Maintain stability in the movement of interstate commerce and protect the public from the safety hazard of staged colli-

sions • Protect motor carriers and insurers from the financial burdens of defending against, settling or being found liable for fraudulent claims that result from staged collisions • Protect law enforcement agencies from expending resources dealing with the aftermath of staged collisions The legislation is backed by the American Trucking Association. Graves says the bill would lower auto insurance rates for Louisiana drivers. Graves cited a 2015 staged accident in New Orleans that resulted in a $4.7 million settlement against a trucking company. “Louisiana drivers pay some of the highest insurance rates in America,” Graves said. “This is unacceptable and the solutions don’t require rocket science. Our bill will prevent criminal rings from further increasing the cost to drive and do business in Louisiana.”

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Industry Insight with John Yoswick

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

Fully Automated AI Collision Repair Estimating ‘Not There Yet’

Shop Showcase

A panel discussion at the Collision procedures for the specific vehicle. Industry Conference (CIC) in Las “So not everything is AI. We comVegas in November included repre- bine it with the OEM procedures with Ed Attanasio sentatives from a number of technol- and our editorial data to produce that ogy companies touting the potential specific accurate estimate.” benefits—for auto body shops and In discussing what AI estimatinsurers—of artificial intelligence ing offers shops specifically, the (AI) estimating, but also acknowl- panelists noted the wide variance edging some of its current limita- in estimates often seen even when tions. with Ed Attanasio different estimators look at the same “We’re not there yet, 100%, vehicle. AI can help collision repair with straight-through processing,” businesses increase consistency in said Dune Pagaduan of Mitchell their estimating, Pagaduan said. International, referring to AI being Panelist Jason Verlen of CCC capable of completing all estimates Intelligent Solutions said it also offers shops access to photos and inwith Ed Attanasio formation even before the customer arrives.

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“So there’s huge increases and improvements in cycle time” and the customer experience, Verlen said. “But it’s not like AI solves all the world’s problems.” He noted the panel moderator talked about recently watching an estimating contest at a Texas trade show in which 16 estimators writing for a quarter panel replacement on a mainstream vehicle came up with 16 different estimates, ranging from 130 lines to 400 lines. “So someone may ask me: ‘Is your AI accurate? Does it match what a human would do?’ My answer is: Which one of those [16] guys do you want me to match,” Verlen said. “That’s why I say AI is no magical bullet. That’s why we combine AI with build sheet data, with business rules, with insurer guidelines, and that’s how we come up with an estimate that’s reasonable

Media and Publicity for Shops with Ed Attanasio

to the situation.” He suggested to “reduce skepticism” among new users, the systems’ thresholds should be set high at first so “virtually everything the AI generates on an estimate a human will agree to.” Then gradually loosen the thresholds to get more complete estimates, he said, after skeptics have “been trained to see that it does work” even if there are at times a “difference in opinion.” Jimmy Spears of Tractable said his company’s artificial intelligence estimating system has become adept at quickly determining from photos if a vehicle is a total loss. “One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of calling balls and strikes: Is this car repairable or is this car not repairable.” For insurers, he said, the system

Shop Strategies

Dune Pagaduan of Mitchell International said AI can help collision repair businesses increase consistency in their estimating

with Stacey Phillips

Jason Verlen of CCC Intelligent Solutions said without human interaction. “So is about 22% of repairable claims are currently AI real? Sure, it assists us in making processed through AI photo-estimating and automating decisions, thousands at a time…more quickly so that we He noted as recently as three shrink cycle time. But you still need years ago, fewer than 1% of vehicle experts, humans, to complete the claims involved photo-estimating. with Stacey Phillips whole process.” “As of today, roughly 22% of He said AI systems can cur- repairable claims go through the rently write accurate estimates on process,” he said. “And we have “low-severity collisions.” some carriers on our system where “But when you get to higher over 70% of their repairable claims severity type collisions—more com- go through photo AI.” with Stacey Phillips CCC offers a product, Estiplex, more parts—then that’s the journey we have to go to get to that mate-STP, which, Verlen said, on 100%,” he said. “I think in the next low-impact collisions can write a two to three years, we’ll get there.” complete estimate with no needed The panelists were asked if any review or changes by a human. BeAI system built on historical data yond that, he acknowledged, it’s still can identify substrates, systems and “a joint process between the human with Stacey Phillips OEM procedures for nearly new ve- and the AI.” hicles often involved in collisions. But the AI does “make the pro “That is the challenge,” Pagad- cess much more efficient,” he said, uan said, noting historical data ide- in part by getting a consumer an esally needs to be paired with other in- timate faster, which in turn speeds formation in the system, like OEM their decision-making about choosbuild sheet data and OEM repair ing a shop and scheduling repairs.

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26 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

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can produce 40% of initial estimates “without any further line items” needing to be added. An equal per-

Jimmy Spears of Tractable said his company’s AI estimating system has become adept at quickly determining from photos if a vehicle is a total loss

centage require review of one or two line items—with the estimate annotated as to what an appraiser needs to review—while the balance will require being handled “old school: have it towed, take the car apart and go classic blueprinting.” Moving beyond that 40% of initial estimates “without any further line items” needing to be added will require greater access to vehicle-specific OEM build sheet data,

he said. “If we get that, we’re going to have a greater understanding of that vehicle, the DNA of that car,” Spears said. “And then we’re going to have a much better understanding of what this car really needs, its repair process. We have got to solve the problem of build sheet data, and we’re in the right room for that.” In the interim, he said, AI estimating offers benefits to more than just insurers. Tractable has a test going with LKQ Corp., he said, using the technology in a bit of a reverse way: helping determine which parts are not damaged on salvage vehicles. It could also help collision repairers with the customer sales process, Spears said. Currently, estimators point a potential customer to a waiting area while preparing an estimate. “Instead, they’re going to be able to quickly take some images of the car, and then while the images are being processed, they can take the customer around the shop and show the investment that you have” in equipment, training and certifications, Spears suggested. “When they get back to the desk, here’s the estimate.”

Rivian Ends 2021 with 1,015 Vehicles Produced, COO Retires from Company by Simon Alvarez, Teslarati

In a recent press release, Rivian announced it had officially produced a total of 1,015 vehicles by the end of 2021, 920 of which were delivered before the end of the year. The update comes as news emerged the company’s chief operating officer, Rod Copes, had retired from Rivian in December. Considering Rivian has only just started delivering its first vehicles like the R1T pickup truck, R1S SUV and its Amazon delivery van, the company’s 1,015 deliveries in 2021 is nothing to scoff at. Rivian announced before the end of the year it would likely fall “a few hundred vehicles short” of its 2021 vehicle production target, which was set at 1,200 units. The recent updates—particularly the departure of Copes— appear to have adversely affected RIVN stock. Rivian shares dropped about 2.3% in premarket trading on Jan. 11 as news of the COO’s departure spread online. As of writing, Rivian shares are trad-

ing at $80.93 per share, far below its all-time high in November when RIVN traded at nearly $180 per share, but still enough to give the company a market cap of more than $71 billion. The departure of Copes was extremely understated. While a company spokesperson told The Wall Street Journal the executive’s departure had been planned for months and his duties had already been absorbed by Rivian’s leadership team, there had been no press release announcing the retirement when Copes left in December. Rivian will likely have its hands full in 2022. The company is expected to ramp the production and deliveries of the R1T and the R1S. Deliveries of its Amazon electric delivery van are expected to increase as well. The electric truck market is also poised to become more competitive this year, with vehicles like the Ford F-150 Lightning and possibly the Tesla Cybertruck starting their customer deliveries sometime in 2022.

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? I recently had the opportunity to meet in person with many of my 20 Group clients, and one of the things that came up was collision repair customers are not as patient as they used to be. At the beginning of the pandemic, if you told a customer a part was on backorder, or a part would take longer to arrive because the supplier had reduced how frequently they were doing deliveries, they were pretty understanding. What I’m hearing from auto body shops around the country is those same customers today are much more demanding, and they’re not so patient. They don’t care about supply chain issues or the shortage of employees. They just want their car repaired and back to them. And I hate to say it, but unfortunately I believe that’s only going to get worse. Which brings me to the topic of liquid expectations. You’ve probably heard that term. It basically describes that customer expectations in terms of service from a business are really shaped by their experiences with other companies. If I can use the Starbucks app to order and pay for my coffee and have it ready and hot on the counter for me when I walk in, why can’t the local coffee shop around the corner offer me similar convenience and service?

In terms of our industry, I’ve been thinking about things I used to go get that now get delivered to my door. Take groceries. I may spend $100 on groceries, maybe $300 sometimes. Either way, my local grocery store delivers that to my house for free.

I get a prescription filled that costs me $7.99. My local pharmacy delivers that to my house. For free. No delivery charge. I believe it’s just a matter of time before customers are going to start saying: “I spent $4,000 with you, and I have to leave my job early to come pick up my car?” I think it’s just a matter of time before they’re going to want the same type of pickup and delivery service they are getting from all types of other businesses. Now understand: I’m not saying I agree with this. I’m not saying it’s something we have to do or should be doing. But I believe collision repair customers are starting to

SEMA President and CEO to Retire Following more than 30 years of service to SEMA, President and CEO Chris Kersting will be stepping down at the end of January to enjoy retirement. The move comes as SEMA concludes a successful 2021, delivering two of the nation’s largest in-person trade shows since the start of the pandemic—the SEMA Show in Las Vegas and PRI Show in Indianapolis. Kersting joined SEMA in 1996 to lead the organization’s

Washington, D.C., office as vice president of legislative and technical affairs. He took the helm as SEMA’s CEO in 2002 and led the association through two decades of growth. Beginning Feb. 1, Kersting will transition into an advisory role through July. SEMA executives Bill Miller and Mike Spagnola will serve as interim co-CEOs. Source: SEMA

30 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

want and could start to expect and demand a “white glove” or “concierge” type of service experience from us. I was on a call recently with an insurer who said they’re seeing that sort of expectation from customers in terms of the insurer’s DRP shops. So what would that mean for your body shop? Well, it means having another one or two people, right? We need to make sure they have a clean driving record and can have good interactions with customers. We’ll have some added liability if we’re driving customers’ vehicles back and forth. We’re going to need to be profitable enough that we can offer that type of services. That goes back to a previous article of mine about employee wages where I said either

labor rates have to change, or shops have got to be paid for more not-included operations, or some combination of the two. Alternatively, it may also be something we could have a fee for. You pay $6.99 for a delivery by DoorDash. People spend that. So maybe it’s time we start offering pick-up and delivery for a certain dollar amount. Either way, it also means we’re going to need to do much better in terms of quality control inspections of vehicles, because we don’t want to get a repair vehicle out to the customer’s home and only then discover an issue. As I said, suggesting yet another challenge for collision repair shop operators isn’t something I like. But I just see this as one of the ways customer expectations are changing which we need to consider.

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Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2 by Stacey Phillips

Total losses, the Database Enhancement Gateway, computer vision and sustainability were some of the topics discussed during the IDEAS Collide Showcase held during the 2021 SEMA Show. First introduced in 2018 by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) series, IDEAS Collide gives thought leaders from across the collision repair industry the opportunity to share innovative ideas. This year, eight speakers talked about creative ways to help the industry evolve. This is part two of a twopart series. Part one was printed in the January 2022 issue of Autobody News.

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA).

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA), talked about the shared challenge the industry is facing with an increase in total losses. She hopes the different segments can generate thought-provoking ideas on how to make meaningful changes. “No matter what side of the issue we are, there is a consumer who has suffered a loss and it’s our collective job to find a way to make them whole again,” said Blalock. “Jeff Peevy [previous CIC chairman] will always remind us never to forget that empty chair; we all serve the consumer.” Blalock said total loss frequency has been rising over the last several years in the U.S. According to CCC Intelligent Solutions’ 2021 Crash Course report, 20.5% of vehicles were deemed total losses in 2020. “This means that shops missed out on the chance to repair one in every five vehicles,” said Blalock. This is up from 15% in 2010. The average totaled vehicle in 2020

had an actual cash value of $10,444; the average repairable vehicle was worth $16,657. In addition, repair costs have also risen. As insurance adjusters determine whether a vehicle is repairable or declared a total loss, Blalock said a number of factors weigh into the decision, including supplements and parts availability. With more electric vehicles and cars with ADAS coming into collision repair facilities, Blalock said scanning and calibration will be required, adding additional costs to the repair and determining whether the car is a total loss. Repair vs. replace and salvage values will also play a role. She shared some of the downsides to total loss, including the consumer owing more on the vehicle than it’s worth and fewer vehicles being fixed by the professional repair industry and auto recyclers. “Total loss does not mean endof-life for a vehicle,” she said. “Repaired vehicles will be repaired by someone.” From her research, Blalock has found as many as one out of 325 vehicles on U.S. roads today may be operating with a fraudulent title that has been “washed” to disguise the vehicle’s actual damage, flaws or identity. Research shows one in five vehicles sold outside of licensed dealer networks are not legal private property car sales, but are illegal sales of curbstoned vehicles. “Curbstoning is essentially a flipping of vehicles often posing as a private seller,” she explained. “Many of these vehicles have been purchased at salvage auctions by unlicensed entities, repaired and usually not to any industry standard, then sold to some unsuspecting consumer looking for a good deal.” Blalock advises the industry to be aware of these issues and work together to come up with ways to address them. As the administrator for the Database Enhancement Gateway (DEG), Danny Gredinberg shared information about the free industry resource.

32 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

The DEG was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. It is created, equally funded and maintained by the Alliance of Automotive Service Providers (AASP) and SCRS.

Danny Gredinberg, administrator for the Database Enhancement Gateway (DEG).

With today’s estimating databases being large and complex, the task of building complete and accurate labor times and labor notes for vehicles can be challenging. All three information providers use a variety

of methodologies to develop labor values. Gredinberg said this can often result in information that does not reflect real-world labor requirements of a repair operation. As a result, it can hinder the ability of an estimator to produce accurate repair estimates or blueprints that match the repair process. The DEG is designed to offer estimating system users a more standardized and streamlined process for generating Database Inquiries (DI). “It can help anyone to improve an estimate whether it’s a repairer, technician or even a bill payer,” said Gredinberg. “If they find an error in omission or accuracy in any of three estimating systems, we can help address those concerns and get accuracy.” As the DEG administer, Gredinberg receives a lot of inquiries. One of the biggest challenges he sees is when a repairer writes an estimate in one database program and receives See Collide Showcase: Part 2, Page 44

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Industry Insight with John Yoswick

Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements?

Shop Showcase

A panel during the Collision Indus- companies adjusting the key perfortry Conference (CIC) in November mance indicators (KPIs) by which included representatives of two au- they are measuring direct repair with Ed Attanasio tomakers and two insurance compa- shops? nies addressing a topic that repairers In terms of cycle time and its and others discussed at a previous impact on customer satisfaction, CIC: can an auto body shop partic- Lindorfer said insurers aren’t lookipate both in direct repair and OE ing for shops to compromise repairs certification programs, and meet the to return vehicles faster. requirements of with both? Ed Attanasio “We still want safe repairs, and “I would never say that’s im- sometimes safe repairs take lonpossible, but it is very difficult at ger for whatever reason may cause times,” said Ben Cid, collision busi- that,” Lindorfer said. “We’re not ness manager for Mercedes-Benz. asking anybody to take a shortcut “There are shops that do it. When and not do what they should do.” you’re having to prove…why some- At the same time, she said, the thing needs to be done a certain way, growth of ADAS and other technolwith Ed Attanasio there’s a lot more time invested in ogy impacting repairs in late model doing that. Again, it’s not that it’s vehicles shouldn’t impact all claims impossible. But it definitely takes given the average age of vehicles on a lot more time on the shop’s side the road is 11 years. to really…prove what needs to be “Let’s remember that not evdone.” with Ed Attanasio ery car we repair is a new vehicle,” Sandee Lindorfer, auto line di- she said. “We need to be sure we’re rector at Allstate, said she sees it as repairing that vehicle, regardless less of a challenge. of age, appropriately. As the mar “We have many [OEM-certi- ket changes and we [see] more and fied shops] within our Good Hands more of the vehicles that are more Network,” she said. “Between our complex, we’re going to see that network and the OEMs, we have the KPIs are going to change. We’ll with Stacey Phillips more in common than we have dif- change with those KPIs.” ferences. At the end of the day, we She said Allstate has adjustboth want our customers to have a ed cycle time measures “over the safe and proper repair. I don’t think years because of the complexity of that [needing to offer] proof of re- repairs,” and good communication between shops and insurers will repair procedures with is as great [an issue] Stacey Phillips as it may have been in the past when solve issues about vehicles that are repair procedures weren’t easy to “out of the ordinary.” get your hands on.” “So I can’t speak for every in She said parts restrictions by surer; I can only tell you that we do the automakers are probably the reevaluate KPIs regularly,” Lindorfprimary area where there’s “friction er said. with Stacey Phillips Dan Tessadri, auto physical when a shop is trying to appease both the carrier and the OE.” When damage business consultant for those conflicts arise, she said, they CSAA Insurance, concurred. are addressed “case-by-case,” based “We look at the KPIs, at our on such things as “the contract that scorecards, on a yearly basis,” he we have with our customer” and said. “We look at the market and the state requirements. impact of the supply distribution and with Stacey Phillips “But there’s not too often that other factors like that.” we can’t come to some sort of agree- But panelist Pete Tagliapietra ment,” she said. of NuGenIT said those companies’ With CCC Intelligent Solutions practices don’t synch with what he and others documenting changes in sees in the auto insurance industry cycle time, “touch time,” parts costs as a whole. and other metrics, are insurance “When we look at scorecards

Social Media for Shops

SEMA Show Goes On

and KPIs across the industry, some of those KPIs haven’t been updated in 10 years,” Tagliapietra said. “So repairers [on those programs] are being held to the same KPIs.” He also noted while the average vehicle may be 11 years old, the average age of repaired vehicles is between 6 and 7 years old. “That puts us at OBD-II and well into the new realm of technology as we know it today,” he said. “I think we need to consider that…You can’t look at KPIs based on the way we repaired cars in 1999, and hold [shops] to the same level, especially in terms of cycle time.” Aaron Schulenburg of the Society of Collision Repair Specialists also told the panel he’s always surprised and concerned when anyone suggests it’s not more challenging now than it’s ever been for shops trying to “appease both sides of the

Media and Publicity for Shops

equation” when it comes to automakers and insurers, saying that’s the crux of nearly “every single call that I get every single day.” He said he appreciated the automakers and insurers who at least took part in the panel discussion because the committee struggled to find people willing “to sit on the stage to talk about the things that really matter.” “There should be more who do,” Schulenburg said. “If they’re not willing to, there’s a bigger issue in this industry that’s leading to shops being stuck in the middle.”

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Author/Teacher Trains and Mentors the Insurance Adjusters of the Future by Ed Attanasio

Some auto body shops appreciate insurance adjusters and their role in the collision repair industry, while others don’t necessarily feel the same way. But all seem to agree it’s a necessary job. In the end, everyone wants the same thing—the safe repair of a vehicle back to its pre-accident condition. According to Indeed.com, the responsibilities of an auto damage adjuster include evaluating the damage done to a vehicle and then determining what the insurance company will pay. They also add “a claims adjuster job is very stressful

Author/teacher/mentor Chris Stanley created a company, IA Path, to set up independent adjusters for future success. His IA Playbook Series has quickly become the industry’s Bible

as it comes with lots of highly demanding activities. However, when you put in the hard work and dedication, the rewards far outweigh all the tough demands of the job.” Chris Stanley, 36, is an author, career coach/mentor and the founder of Insurance Adjuster (IA) Path, a company that trains and mentors auto adjusters. He lives on a 42-foot sailboat with his wife and three kids—ages 12, 8 and 1—who are homeschooled. He enjoys the freedom and loves “traveling the open seas and feeling small in our big world,” he said. In addition to writing a series of books about insurance adjusters,

he also writes Christian devotionals, memoirs, kids’ books and a variety of non-fiction. Stanley was working as an adjuster for a PDR company in Colorado when he was recruited to become a supervisor at the same organization. “The business grew to the point where we were working with 100 shops and dealerships and they needed someone to oversee the work,” he said. “It was definitely a major mental shift, where I went from writing estimates to managing techs, and after a while I said I want my life back! Plus, it was cold in Colorado.” So, he purchased his boat and began enjoying better weather in Florida, with a career change in his immediate future. “One of the great things about this lifestyle is we can go to wherever we want to be—whether it’s the Keys or West Palm Beach,” he said. “Every year I always ask my children—do you want to live in a house on land or stay on the boat? They always go with the boat.” Around that same time, Stanley saw training programs for independent insurance adjusters were scarce or difficult to get into. “I tried to help a friend who wanted to become an adjuster, and no one would take him, even though I taught him the basics,” Stanley said. “They told him you don’t have any experience. So, I started looking online to see if there was any information about how to enter the industry, but it was all about property and nothing about cars.” Since 2016, Stanley has mentored more than 2,500 people, to create the next generation of independent adjusters and auto damage appraisers. His go-to book is called the “Auto Adjuster’s Playbook,” which Stanley called the industry’s Bible. “It is based on a proven method to teach new people how to learn to write estimates,” Stanley said. “It has been used to teach hundreds of students through IA Path’s online training course, called the ‘Auto Adjuster’s Path.’ “Most people who venture into being an auto damage appraiser

36 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

or body shop estimator are overwhelmed with learning about the parts of the car, repair processes and how to not look stupid,” he continued. “This book tells you what you

Stanley lives and works on a boat with his wife and three kids in Florida

need to know with plain English. The ‘Auto Adjuster’s Playbook’ is field tested and contains industry recognized training and instructions by a 13-year veteran and reviewed by top industry leaders prior to its release.” Other books in Stanley’s IA Playbook Series include “Audatex Adjuster’s Playbook,” “Networking Adjuster’s Playbook” and “Hail Adjuster’s Playbook.” Stanley’s IA Path program is designed to get people up and running fast, he said. “Whether it’s a Millennial looking for their first career or someone looking for their second or third career, I want to see them get work within 90 days in a rewarding industry and write content to help them navigate their journey,” he said. “We bring them in and get them to the point where they’re doing their jobs correctly, doing mock claims and handling the entire process from start to finish. “Whether an adjuster who is working as a staff or independent adjuster handling property, auto or desk claims—liability, bodily injury, etc.—there will be always be companies looking for their skillset.” This past summer, IA Path hosted its first Adjuster Job Fair to allow adjusters and appraisers from all aspects of the inspection industry to get interviewed one-on-one with dozens of hiring companies. “One of the biggest hurdles for adjusters to getting work is getting

in front of enough companies that have work opportunities,” Stanley said. “We decided to bring the companies to the adjusters so they wouldn’t have to track them down. The event was 100% online utilizing a state-of-the-art platform and interviews will be conducted using the industry-leading Zoom technology. Adjusters scheduled online face-to-face interviews with 30-plus nationwide and regional hiring companies.” The job fair was brand new territory for Stanley, but he’s never been afraid to take on new endeavors like this one. “This type of event has never been done before online in our industry, for adjusters,” he said. “Typically, events are centered around the hiring companies or technology companies, but we wanted this to be all about the adjuster.” The adjuster admission also included on-demand adjuster training, live adjuster workshops and speakers. “We have big plans for this platform in the future, but we’ll start with this first event and the follow up during the first quarter of 2022,” Stanley said. “The pricing was designed to offer opportunities to the adjusters year-round, not just for the three days of live online interviews.” When he isn’t motoring around on his boat, Stanley is focused on creating the independent adjusters of the future. “It’s a good job that can lead to a long and wonderful career, so if you’re smart, fast on your feet and detail-oriented, this might be a good match for you,” he said. “And I can show you how to do it!” For more information, visit www. iapath.com.

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Used Electric Car Prices Soared in 2021 by Andrei Nedelea, Inside EVs

While the new car market in the U.S. declined 13.4% in 2021, used electric vehicle sales went up year-over-year by an impressive 60%. Prices of used EVs also went up over the course of last year by more than 15%, and they remain higher on average than prices of used ICE vehicles, although this could just be because most EVs are newer vehicles and usually more expensive to buy. Recurrent, industry analysts that focus on EVs, said it was mainly stronger demand for electric cars that drove up prices, which came courtesy of a constant rise in consumers’ confidence, the reduced supply of vehicle prompted by the global chip shortage and other factors. “I look back at 2021 as an exciting year for electric vehicles in terms of overall market growth, as well as the all-electric commitments from manufacturers that will continue to spur adoption,” said Scott Case, CEO

VARSITY FORD

and co-founder of Recurrent. “If price comes from the tension between supply and demand, let’s hope the industry can produce more electric cars this year because people certainly want them.” Another important conclusion drawn by Recurrent from analyzing EV sales through 2021 was that one third of used electric vehicles could be purchased for less than $25,000 and half for less than $30,000. This means they are more accessible than ever to car buyers, and their popularity is only going up as prices come down even more. GM’s recall for the Chevrolet Bolt EV did have a strong negative impact on sales of this model on the used market. Sales were down 74% and the source suggests this could have been because Chevrolet bought as many of them as it could from dealers, in order to keep them off the street. The plant that builds the model is currently idle and production is not expected to restart any sooner than March.

‘Cheap’ Volkswagen ID.4 Coming ‘in the $35,000 Range’ by Mark Kane, Inside EVs

Volkswagen closed 2021 with almost 17,000 ID.4 sales in the U.S. but the number could be four times higher, according to the company’s representative. The company has more than 40,000 reservations but is supply constrained, as the cars are imported from Europe. “We could have sold four times that amount,” Volkswagen Group of America CEO Scott Keogh said via Automotive News. “What VW dealers are saying is that this is the most excitement they’ve had on the shop floor since 1998, when we brought the Beetle back.” Currently, the Volkswagen ID.4 is offered in RWD and AWD versions, with a single 82 kWh battery version. In 2022, the car will get an upgrade, including range, while the lineup will be expanded by a new, less expensive version with a smaller battery, probably 62 kWh or so. This new entry-level ID.4 with RWD will start at around $35,000.

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That would be about $5,000 less than in the case of ID.4 Pro. The key element of Volkswagen’s expansion of the MEB-based electric cars is the Chattanooga, TN, plant, which will start production of the ID.4 later this year using battery cells from the new SK Innovation’s SK On plant in Georgia. It will not be enough to replace 100% of the imports at the beginning, and made-in-Germany ID.4s will be sold through 2022: “VW will continue to import ID4s into the U.S. from Europe as it ramps up local production of the BEV compact crossover in Chattanooga this year, with locally produced versions beginning to appear in dealerships in the second half of the year,” Keogh told Automotive News. The good news for more than 4,000 employees in Chattanooga is a 10% wage increase in 2022. The average return on sales in the Volkswagen dealer network in 2021, according to the article, was nearly 5%--three times more than in 2020. Hopefully, it will encourage to push electrification.

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Auto Body Shop Owner Steps into World of Consulting by Ed Attanasio

I was at a California Autobody Association (CAA) meeting recently and I couldn’t help but notice a welldressed man at the front table. It was an informational meeting with the Bureau of Automotive Repair (BAR) and after a few minutes I assumed he was a member of the BAR. At one point, he scolded another auto body shop owner for asking a question. He said, “The customer is your customer, not the insurance company! I taught you that, but maybe you forgot?” I almost laughed. After listening to him for a while, I could tell this guy is passionate about collision repair, as well as being very knowledgeable. I told myself I needed to meet him. His name is Alex Kuang, owner of Redwood City Auto Body in Redwood City, CA. He wants to sell his shop to become a consultant and share his knowledge with the collision repair industry. Kuang is the current president of CAA’s Golden Gate (San Francisco Area) chapter, and is trying to increase its membership by recruiting many of his friends who own or manage shops in the Bay Area. Kuang came to the U.S. from China at age 10 in 1988 for a better future. His father was originally a butcher, but when he immigrated to the Bay Area, he became a chef specializing in Hong Kong-style cuisine. Today, Kuang wants the world to know he can cook, and if you don’t believe it, take a look at his Facebook page when you have a moment, where he posts photos of his culinary creations regularly. Kuang’s first job was as a painter, but he quickly decided he wanted to sell the paint instead of spraying it. “I loved the product I was using and wanted to share the news, so I got a job with a distributor to educate other shops about it,” he said. “I did that for eight years and I learned so much because I was visiting multiple body shops every day. I was surprised to learn a lot of painters weren’t knowledgeable about the paint they were spraying. I told them the more you know the bet-

ter you can be as a painter, and you could see it in the finished product. I enjoyed helping them to becoming better painters and better managers.” In 2010, Kuang made the move from employee to employer when he purchased Redwood City Auto Body.

The collision repair industry has been good to Alex Kuang, but now he’s ready to change hats from shop owner to consultant

“One of my customers called me and said he wanted to get out of the business and he offered me a very good price,” he said. “I was selling paint and I didn’t really know how to run a shop, but I was ready to jump in. I was the new kid on the block in a competitive market, but I knew at least I could succeed by working harder than the guy down the street.” The numbers showed Kuang’s passion and incredible work ethic were going to lead to healthy profits. During his first month as the owner, the shop did $16,000 in volume, but within just five years, the number— pre-COVID—had grown to approximately $300,000 monthly. Kuang is a major advocate of the right to appraisal, to say the least. It’s a technique he’s perfected over the years by learning from the experts and through trial and error. Many shops stay away from it because they find out it’s complex and feel as though the insurance companies will win anyway, Kuang said. It’s not an old scenario that happens every day in shops from NYC to LA. The body shop writes an estimate to fix the car, and then the customer’s insurance company comes in with a lower number. A lot of body shops will bite the bullet and cover the difference, while others will figure out how to cut their costs to accommodate the insurance company’s appraisal. Kuang learned a long time ago eating the difference was no way to

38 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

run a successful business, so he decided to educate himself and learn how to write what he calls the “perfect sheet.” His estimates are well-known for being thorough, accurate and designed to beat insurance companies when he goes up against them over short-pay claims. He builds a case even F. Lee Bailey would be proud of, with stacks of photos, texts, emails, OE repair documentation, schematics—you name it. It’s the appraisal clause, or the right to appraisal, and you will find one in most automotive insurance policies. It gives the customer a method to dispute the estimate provided by their insurance company when their vehicle has been damaged or totaled. It’s not new, but more shops are using it now because they can see it works as long as they dot their I’s and cross their T’s. Kuang found out the hard way because the first few times he tried to implement the right to appraisal on a repair, he stumbled. “I realized you have to document everything in detail and then have the information on-hand or the insurance company will always prevail,” he said. “They are just waiting for you to make a mistake, and they know that many body shops aren’t skilled at performing this process. They got me a few times on storage fees, but never again. The appraisal clause is great for shops and customers, but insurers hate it.” Just like he said at the CAA meeting, Kuang’s mantra is built on the concept the customer is the shop’s customer—not the insurer. But many shops forget that or ignore it. When a policyholder decides to opt for the appraisal clause, it sets in motion an arbitration process that starts where both parties hire their own independent appraisers, Kuang explained. If the two appraisers are not able to agree on a specific number, which happens most of the time, they have to get a third-party involved to review their findings and conduct an additional inspection and assessment in many cases. If two out of the three agree, that number is final and can’t be appealed.

Kuang has become highly adept at helping his customers navigate this tricky process and presents cases with a 99.99% success rate. “We cannot do it ourselves, but we can assist the customer because otherwise the insurance company will eat them alive—I’ve seen it,” Kuang said. “The insurer and the policyholder are the ones who have to pay for the arbitration, so sometimes, customers are reluctant to do it. But we convince them that this is the only way for them to get paid for a proper repair.” Initially, the appraisal clause was a system that worked well for shops who knew how to use it, but now it’s a little more complicated, Kuang said. “The problems began when the insurance industry figured out how to beat it, and today some insurers have changed the wording in their policies to the point where it nullifies the appraisal clause altogether,” he said. Kuang is a maniac when following OE repair procedures to the tiniest detail because he knows his estimate will likely be analyzed in detail by at least two more sets of eyes. Often, he produces short videos highlighting OE repair procedures and calling out parts and processes often missed. As a consultant, Kuang will enable more shops to use the appraisal clause and other techniques he has developed to get paid fairly on each and every repair. The insurance companies won’t likely appreciate his new role, but it’s never been a warm and fuzzy relationship anyway. “Once they saw I knew how to succeed using this system, they started steering customers away from me—it was pretty blatant,” Kuang said. “The insurance companies have a long list of things they won’t pay for, and they don’t like it when they are smarter than they are.” Kuang said he has big plans for his consulting company, and helping his shop clients to be smarter will be one of the first things he wants to achieve in 2022.

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 39

G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving by Ed Attanasio

The late Gene Crozat of G&C Auto Body died in 2016, but his sons have taken his zeal for helping others to the next level, and giving cars to those in need is a big part of it. The company has now presented more than 200 vehicles to deserving individuals and families within the last 20 years and the number keeps climbing. On Dec. 16, seven deserving Sonoma, CA, area residents experienced a life-changing event thanks to the National Auto Body Council (NABC) Recycled Rides® program, along with car donor GEICO, G&C Auto Body and automotive refinish coatings partner PPG. The presentation was held at the Sonoma County Event Center at the Fairgrounds in the Garrett Building. More than 200 people were in attendance. G&C Auto Body CEO Shawn Crozat is proud to continue his family’s legacy and knows his father would be smiling from ear-to-ear

watching the presentations. “Dad had a huge heart and wanted to help as many people as he could,” Crozat said. “He used to tell us that we are in a position to help others, and it’s a role we’re obligated to play. When you think about the

The Crozat family has given away more than 200 cars to deserving families within the last 15 years. In this photo, Shawn Crozat talks to the crowd while his brother Pat looks on

fact that more than 200 people are driving vehicles around in the North Bay that they got through G&C, that is pretty amazing!” Bill Garoutte, president and CEO of the NABC, is ecstatic about what G&C has achieved through its philanthropy over the years.

“What an honor to be part of a tremendous event with an organization that provides such incredible support for the community,” he said. “To gift more than 200 cars to area residents in need is an amazing milestone, and to present seven in one day by G&C Auto Body is truly remarkable.” The seven recipients of completely refurbished vehicles included Stephanie, a single mom to two young children, who received a 2014 Honda Civic. Her partner of 15 years recently and unexpectedly passed away. Stephanie was in need of transportation to continue her journey of stabilization with her children after the loss of their father. Stephanie and her son are living in a transitional house as they actively look for a place to live. She heard about the Crozat Family Foundation and its benevolent giving from a person who recently received a vehicle through the foundation. Sue, a single mom, was pre-

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sented with a 2016 Nissan Versa. She has been a single mom from the time her oldest was 3 years old. Now, she is the matriarch of a multigenerational household consisting of herself, her two adult daughters and her grandson. She owns a 1996 Toyota 4Runner with 300,000 miles and a blown head gasket and relies on her youngest daughter to drive her to work and her oldest daughter’s boyfriend to pick her up. She has been trying to save for another vehicle, but this gift of transportation will help her be able to get to work and not rely on others. Cheyanne, a mother of two, was gifted a 2017 Hyundai Sonata. She and two of her three children were living in Lake County, CA, when their house was deemed uninhabitable and they had to leave. They also had to leave behind their older model vehicle that had stopped running. Cheyanne said they left that house with the clothes on their backs and a few other personal items. She

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will use this car to help get her and her sons to medical appointments, and her youngest to school. Shannon, a mother of three, received a 2016 Hyundai Elantra. She and her kids lost the home they were renting to wildfires in 2017. They have been living with Shannon’s parents since, but the home environment has become unhealthy for everyone and she is currently looking for a new place to live. Shannon had two older, unreliable vehicles, one of which was a 2006 Chevy Tahoe with 246,000 miles and was falling apart. Shannon currently holds one full-time job and two part-time jobs to cover living expenses. The gift of transportation will allow her to manage her children’s schedule and get to her jobs. Mike, a single dad, received a 2017 Toyota Camry. Since his separation, he has been trying to rebuild his life while keeping up with legal fees, fighting for his share of custody of the kids, working full time and juggling the kids’ extra-curricular activities. He drives a used truck he is struggling to afford. He was in need of reli-

able transportation so he can comfortably sell the truck he has a payment on without relying on friends and family for rides to maintain his job and his children’s quality of life. Eva received a 2017 Volkswagen Jetta and will be using it to make her life easier. Clara, a mom of three, received a 2018 Nissan Altima. She and her husband, Kristopher, and their three children are a blended family trying to get by with a vehicle that has been overheating and is constantly breaking down. She is working full time as a security guard at Graton Resort and Casino, while Kris has been staying home with their youngest son until he recovers from a recent surgery. Once all the follow-up doctor visits are completed, Kris will get back into the work force. The new vehicle will allow them to more effectively manage family life, jobs and medical visits. In addition to the vehicles, each recipient also received six months of full vehicle coverage from GEICO and six months of gas gift cards, six months of grocery gifts cards and

$100 Target gift cards for each child to help make Christmas a little easier—all courtesy of G&C Auto Body and the Crozat Foundation. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. The late Gene Crozat started the Crozat Family Foundation in 2004 and it’s still going strong. He used to like to say, “It is our responsibility to help our fellow men.” It started as a “Car-A-Month Giveaway” on various local radio stations and has grown into a foundation that provides support to the individuals and families they encounter when they meet through the company’s various car giveaways, according to the foundation’s website. There have been a few setbacks for the Crozat family since they lost

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their patriarch, but the business is still growing. Since Gene’s passing, the Crozat family has lost seven of their homes, which burned to the ground in two separate fires, including the house they all grew up in. One thing Gene taught his four children—Shawn, Josh, Jamie and Patrick—and his beloved granddaughter, Maddy, is to make helping people a priority. Crozat took philanthropy to the next level, giving people cars, cash and even jobs at one of his shops in some instances. The company has given away approximately 200 cars since it started the “Car-A-Month Giveaway” nearly two decades ago. “We hope to help the recipients get back on the road of life, giving a reliable ride and additional support to those who have fallen upon misfortune or endured catastrophic, unforeseen events,” Gene Crozat said when he established the program. “We strive to help create success where failure may have seemed inevitable.”

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FOR YOUR COLLISION JOB. autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 41

Gandrud Parts Center Works Hard on the Wholesale Side tion of new vehicles, which means that used cars have gone up in price It’s called wholesale and if you’re significantly. This means people are not wholly dedicated to doing it yet, being forced to keep their old ones it can lead to a whole lot of head- much longer. In turn, these vehicles aches and lost revenue. need more repairs, which are now Companies that have tried to increasingly being delayed by supmake it a side dish rather than an en- ply-chain obstacles. trée have learned the hard way that Parts Director Chris Slack if wholesale isn’t done right, it can manages a department at Ivan Ganleave a very bad taste in everyone’s drud Chevrolet in Green Bay, WI, mouths. that employs 30 people, including Jobs have been lost, promises eight counter people and three parts have been broken and many tears service technicians. They carry an have been shed over the years by approximately $5.5 million invendealerships who tried and failed to tory, consisting of mechanical, collicompete in the wholesale parts are- sion and performance parts. They’re na. an authorized Mopar dealer that sells genuine Mopar parts online. With 30-plus years of experience under his belt, Slack is succeeding in a very competitive marketplace. He’s well-known for being one of GM’s largest parts operations in the country, serving all of Wisconsin and part of Michigan with a fleet of 18 trucks. Parts Director Chris Slack at Ivan Gandrud Chevrolet Slack is a lifer when it knows how to win at the wholesale game by going for comes to cars and parts. His the gold when it comes to customer service first job was at a gas station Wholesale is already a poten- when he was 13 and pretty soon, he tially perilous endeavor, but when acquired his own tools and became a you add in the fact there aren’t tech. Things didn’t really work out enough parts out there right now, for Slack as a mechanic, which led it makes it even more difficult to him into a different direction. succeed. Even the big chains say “Bad techs make good parts they’re struggling to keep collision guys,” he said. “We can’t diagnose or repair parts in their inventories. I replace the parts, but at least we know keep hearing about cars sitting on what they are and where they go.” shop floors waiting for that one part, When Slack was hired at Ivan so they can complete a repair and get Gandrud Chevrolet in 1989 as a counter person, the department was the vehicle back to the customer. It’s a vicious cycle with many doing roughly $30,000 monthly. repercussions and no immediate re- Now it’s selling $4.5 million in parts lief in sight. A worldwide semicon- every month. ductor shortage has cut the produc- Since the pandemic hit, Slack’s by Ed Attanasio

job has changed and his No. 1 priority now is finding the right parts for his collision and mechanical parts customers. On some days, it’s hunt and seek, but with Slack’s connections in the industry and three decades of experience, his fill rate is high. Like his Green Bay Packers, Slack wins most of the time, and that’s why his auto body shop customers are doing the Lambeau Leap when they get their parts orders from Grandrud. Slack is adapting to the “new normal” and driving his staff to do the same. “Every car manufacturer out there is experiencing the same problems,” he said. “Price is always a motivating factor, but now availability has become even more important. We do everything we possibly can to make every order seamless, but we’ve had to do some crazy things to fill orders. We’ve purchased some parts from other dealerships and traveled long distances—200 miles—to get one part to complete an order for a body shop. “We figure it’s our problem and that’s why we want to take it off their table. If we can get them the parts they need fast and make sure the orders are accurate, we know we can retain that customer for life.” One of Slack’s major strengths is his staff and the parts knowledge they possess, Slack said. He’s proud of his all-star team and keeps them happy with occasional perks like free lunches on Fridays and other benefits. “Five of our eight wholesale counter people are former parts managers,” Slack said. “Our body shops tell us we’re only as good as our parts guys and I know it’s true. The GM parts training is excellent, but they also learn a lot on the job. A

SEMA Launches Online Library SEMA launched a new online education library to provide the automotive aftermarket with easy and affordable year-round access to experts and leaders. From technical details about advanced driver-assistance systems (ADAS) and legislative and advocacy updates, to best practices and

tips on common business skills and behind-the-scenes conversations with industry leaders, celebrities and icons, the new SEMA Virtual Education website at www.sema.org/ education includes a comprehensive collection of educational webinars and resources targeted to the automotive aftermarket.

42 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

Employees of SEMA member companies will have the distinct advantage of being able to access most education at no cost or at a discount, but all sessions are available to anyone in the industry—regardless of SEMA membership status. Visit www.sema.org/education. Source: SEMA

part may need a set of clips and possibly a new wiring harness, so we often include those items in the order. If they don’t need them, we will always take them back. But, when they and we can save them time, it sure makes us look good.” The desire to flourish when it comes to selling parts starts at the top at Ivan Gandrud Chevrolet, Slack said. “Our owner is Dan Mangless, who started out as a parts delivery driver and worked his way up through the system,” Slack said. “That’s why we cater to our wholesale accounts and continually ask for their feedback while keeping the communication channels wide open.” Part of Slack’s approach to customer service involves physically visiting his wholesale clients, which means he’s in a lot of body shops all the time. “One shop owner in another market told me that he ordered parts from one dealer for 20 years and never met the parts manager. So, I make a point to see them all and find out what their concerns are,” Slack said. “We know there will always be someone out there whose prices are cheaper, but we make sure that no one can beats us when we come to service.” To stay in front of his wholesale customers, Ivan Gandrud Chevrolet offers price matching and works hard to accommodate them. They also host a car show every summer featuring 250 classic and collectible vehicles, and perform a lot of community outreach as well. “The car show is our big event and we use it to donate food and raise money for an organization called Paul’s Pantry whose motto is ‘Neighbors Feeding Neighbors,’” Slack said.

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GM Begins Deliveries of GMC HUMMER and BrightDrop EVs A new era begins Dec. 17 for General Motors with the deliveries of its first next-generation electric vehicles, the GMC HUMMER EV Edition 1 Pickup and BrightDrop EV600 light commercial vehicle, both built on the Ultium Platform. This dedicated EV architecture and propulsion system is the foundation for GM’s all-electric future, giving the company the capability not only to build an entire retail and commercial portfolio, but also leverage the technology to expand its business to non-automotive applications. With 30 all-new EVs planned globally through 2025, two-thirds of which will be available in the North America, Ultium will be the key driver of GM’s expansion and next phase of growth. “This is the first chapter for Ultium—and for GM’s transition to a zero-emissions future,” said GM President Mark Reuss. “Both commercial and retail customers will benefit from the EV experience, from exhilarating acceleration to low cost of operation, versatility and ability to customize after the sale. GM is ideally positioned to provide EVs for every customer in every segment, retail or commercial.”

The Ultium Platform will: Enable GM to make nearly every type of vehicle—across its different brands and up and down the portfolio—by building everything from affordable, high-volume crossovers and passenger cars to full-size pickups and SUVs, performance and commercial vehicles. Feature competitive range, performance and overall customer-friendly integration of components compared to designs that retrofit electric propulsion systems to existing internal combustion vehicle frameworks. Greatly reduce proliferation of parts combinations used in today’s internal combustion lineups, helping enhance EV profitability. Enable mobility beyond GM’s own portfolio through third-party licensing of its EV technology, co-development agreements and partnerships. GMC HUMMER EV The Ultium Platform also helps GM innovate in core areas like the interdependent body frame and battery structure of its all-new EVs. The GMC HUMMER EV Pickup’s combined battery pack and body

structure allows outstanding off-road proportions, strong protection of the vehicle’s battery, which doubles as a stiffening member of the body, and enough stability to enable features like removable Infinity Roof panels that would have been difficult to achieve on a conventional pickup. BrightDrop EV600 In addition to enabling dynamic allnew vehicles like the GMC HUMMER EV off-road supertruck, Ultium is helping GM to grow its business in new ways. BrightDrop, the new tech startup from GM, is on a mission to reimagine commercial delivery and logistics for an all-electric future through products like the EV600 light commercial vehicle. Ultium will allow BrightDrop to rapidly accelerate toward electrifying last-mile delivery and reduce vehicle emissions while also helping other companies meet their sustainability targets. BrightDrop is delivering its first EV600s to FedEx beginning Dec. 17, moving from concept to market introduction faster than any other GM vehicle in history.

Ultium Ship-To-Commerce Factory ZERO in Detroit and Hamtramck, MI, will assemble multiple Ultium-based vehicles, including the fully autonomous Cruise Origin purpose-built for driverless ride hail and delivery, the GMC HUMMER EV Pickup and SUV, the Chevrolet Silverado EV and the recently announced GMC electric Sierra Denali. GM continues to expand and reimagine its manufacturing and development footprint, bringing together high-scale vehicle production expertise established over more than a century and passion to become a leading technology company. More than $4 billion has been invested specifically in EV production and another nearly $5 billion has been spent on battery cell manufacturing targeting at least 140 gigawatt hours of cell-making capacity in the U.S. GM’s next Ultium-based vehicle, the Cadillac LYRIQ, is expected to launch as scheduled in the first half of 2022 and will be assembled in Spring Hill, TN. The Chevrolet Silverado EV officially debuts in January at CES. Source: GM

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Continued from Page 32

Collide Showcase: Part 2 an insurance company estimate from another database program and nothing matches. “The reality is that we’re never going to get an exact result from three different database products,” said Gredinberg. “They all talk differently and have different logic and P-pages. They will never line up to each other.” He said it’s the estimator’s job to understand the system they are using in order to explain and justify the estimate to the vehicle owner. Gredinberg encourages repairers to talk to vehicle owners on the front end, use the estimating system the way it is intended, and capture all of the included and non-included items. “At the end of the day, the goal is for the consumer to get their vehicle fixed with the least amount of friction possible,” he said. Gredinberg strongly encourages the industry to share any database by submitting a database inquiry: https:// degweb.org/deg-database-parent/ submit-a-database-inquiry.

Pete Tagliapietra, product director at NuGen IT, an OEC Company.

Pete Tagliapietra, product director at NuGen IT, an OEC Company, talked about leading-edge technologies, such as machine learning, computer vision, robotics automation and artificial intelligence (AI). “What’s unfortunate to me is how these technologies seem to be left behind as far as collision repairers are concerned,” said Tagliapietra. He challenged collision repairers to think outside of the box. Tagliapietra shared an idea of using these technologies to capture images of a damaged vehicle and immediately access all of the OEM information required by a collision repairer to repair it. In the current environment, Tagliapietra said repairers have access to individual OEM repair informa-

tion through the manufacturers’ websites. However, each OEM has its own format, and repairers often don’t know what to look for and where to find it. Alternatives include accessing information through OEM 1Stop; a third-party provider, such as ALLDATA or Identifix; or via estimating systems repair lines. He talked about the possibility of accessing OEM repair information via computer vision. In this scenario, digital images of the vehicle damage would be uploaded to a computer vision central server. Once the images are analyzed, a collision shop could have the information available through the OEM website or a third-party provider within seconds. “The premise of the idea is to give collision repairers all of the information needed to create a complete blueprint of the automobile before the estimate is written,” explained Tagliapietra. In addition, reporting capabilities would be available. “Over time, you would be able to look at a certain year, make and model and understand what repair procedures are typically being used to repair that vehicle.” Tagliapietra said all of this is possible with the technology available today. “When you look at all of the different repair information opportunities, none of them bring all of the information that you need as a collision repairer to have access to them,” he said. By using computer vision, Tagliapietra said collision repairers would immediately know all of the necessary repair procedures to include if a pre-and post-scan is required, as well as a recalibration. They would also have access to manufacturers’ position statements before writing the estimate and repairing the vehicle. He encourages the industry to leverage the same technology used by other industries, such as insurance. “Dreaming big is something we need to do in this industry,” said Tagliapietra. “Otherwise, we’ll fall behind and, in some cases, fall further behind.” Michael LoPrete, vice president of global operations at Plastfix Inc., talked about sustainability and the future impact on collision repairers. LoPrete shared a broad defini-

44 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

tion of sustainability, which he described as meeting the needs of the present without compromising future generations’ ability to meet their needs. “I think about sustainability as a journey to a place where we are able to complete vehicle repairs while

Michael LoPrete, vice president of global operations at Plastfix Inc.

eliminating all of our current waste streams,” said LoPrete. “I don’t think that there is a point that we’ll ever be finished.” He shared what he referred to as the 3R’s of sustainability, in order of importance: reduce, reuse and recycle. Examples of reduce include repairing something rather than replacing it, and conducting online training rather than incurring travel time. Reuse also refers to repair vs. replace, and LoPrete used the example of purchasing a new cell phone as soon as it is introduced, even if a person’s current device is working perfectly well. Recycling is often the first thing that comes to mind when people think of sustainability, but LoPrete said it has the smallest impact on sustainability initiatives. He introduced the term “recoverability,” which he described as an item that has the capability of being recycled and then converted to a new product of the same type, such as glass or aluminum. “The recoverability rate on those items is nearly 100%,” he said. With plastics, recoverability is less than 5% and includes specific products such as water and soda bottles. The automotive aftermarket is reportedly the No. 2 generator of polypropylene waste globally and recoverability is close to 0%. LoPrete said green consumers are driving the increased awareness of sustainability, and Greta Thunberg is a leading spokesperson for Generation Z. “Generation Z looks at the world through the lens of the sustainability triple bottom line, which includes economy, environment and society,”

he said. “Every decision they make tends to have filters that pass through all three of those things.” Many say Generation Z is demanding industries be more responsible and accountable for their actions. “The ones who do it in a meaningful way are positioning their businesses well to move forward,” he said. “The ones who delay taking action will have to catch up eventually because that segment of the population is only going to become a larger and larger piece of the audience out there.” Moving forward, LoPrete encourages industry stakeholders to work together and make sustainability part of their strategic thinking to reduce the amount of waste being generated while still producing safe repairs. “While we can do things individually that will make a difference, the reality is that the greatest impact will come if we work together,” he said. “Sustainability needs to be a topic of discussion; it can’t be left undiscussed.” He challenged the industry to do the following: • Make sustainability an agenda item during meetings • Appoint a subject matter expert within your organization • Track and record your current waste and look at trends • Identify pathways for improvement • Involve other stakeholders in your conversations • Share initiatives broadly across your organization “If we begin thinking about sustainability from this perspective, we can make progress that will shape legislative actions, rather than being subjected to requirements from outside of our industry,” said LoPrete. “There will be winners and losers across the stakeholder chain. The green consumer will make sure that happens. They will support the ones that make the right choices.” Learn more about the SCRS Repairer Driven Education series: https://rde.scrs.com.

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Advantage Parts Solutions Appoints Executive Advantage Parts Solutions, a global leader in delivering strategic automotive parts solutions, is pleased to welcome Paul Gange as president of North America to its global team of executive leadership. Gange joins the organization to accelerate the brand’s global sales and marketing strategy and vision throughout North American markets. Gange, a seasoned industry executive, joins as Advantage’s president of North America. In his role, he is responsible for the company’s operations throughout Canada and the U.S. Over his 25-year career, Gange held various executive roles, most notably as president and CEO of Fix Auto USA and with Mitchell International, an Enlyte company, and Audatex, a Solera company. He is an accomplished keynote speaker at many U.S. and international events and has held several advisory board roles with information providers, insurers and various industry organizations. Source: Advantage Parts Solutions

Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras by Joey Klender, Teslarati

Tesla is recalling more than 356,000 Model 3 vehicles based on potential issues owners may encounter with the rearview camera cable, which could be damaged when the trunk is closed. This can cause the camera to malfunction, documents state. The recall applies to 356,309 units, according to a Safety Recall Report shared with Teslarati by the NHTSA. Only 1% of the vehicles recalled are expected to have the defect, the documents state. It applies to Model 3 sedans manufactured between July 15, 2017, and Sept. 30, 2020. “The Model 3 trunk harness is equipped with a solid core coaxial cable that provides the rearview camera feed for visibility on the center display. Over time, repeated opening and closing of the trunk lid may cause excessive wear to the coaxial cable. If the wear causes the core of the coaxial cable to separate, the rearview camera feed is not visible on the center display,” the NHTSA’s description of the defect states.

The agency said excessive damage to the coaxial cable can cause the unavailability of the rearview camera. This risk “may affect the driver’s rearview and increase the risk of a collision. If there is a

Credit: u/Mr_Tank on Reddit

loss of rearview camera display, the driver can continue to operate the vehicle by performing a shoulder check and using their mirrors when backing,” the NHTSA added. It appears the damage to the coaxial cable is caused by a harness on the trunk lid, which extends or folds as the trunk opens or closes. While the trunk is in its closed position, the harness can fold and experience a tight bend radius over an extended period, “stressing the core

Albert Kemperle, Inc. Joins Wesco Group

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of the cable.” Owners can observe visible material wear on the harness to see if their car is affected. The wear can cause flickering or intermittent rearview camera visibility on the center display. The issues were first observed by the Field Quality team, which observed “a potential trend in trunk harness consumption in Service and initiated an engineering study.” The recall determination was made Dec. 14, after the investigation came to a close Dec. 10. The NHTSA observed 2,301 warranty claims and 601 field reports related to this malfunction between October 2017 and December 2021. Tesla is not aware of any crashes, injuries or deaths due to the malfunction. This is the third recall on the Model 3 in 2021, the first two being related to seatbelt and brake caliper bolt issues. It is the second recall Tesla issued Dec. 30, the other relating to a frunk hatch on the Model S sedan. Both recalls will be repaired by Tesla free of charge, the company said.

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Wesco Group, a leading paint, body and equipment distributor in the western U.S. and Canada, is pleased to announce Albert Kemperle, Inc. has joined the Wesco family of companies. Kemperle Auto Paint, Body & Equipment was founded by Albert and Mary Kemperle, who opened its first store in Brooklyn, NY, in 1940. Over the decades, generations of founding family members continued to expand that single store into more than 50 locations in the eastern U.S. Ronald Kemperle has joined Wesco as a principal partner and will continue to guide the group in the eastern U.S. The combined Wesco family of companies, which includes Wesco, Color Compass and Kemperle, is one of the largest privately-held PBE distributors in North America, servicing customers from more than 118 stores, 13 distribution centers, 12 equipment divisions and 11 training centers. Source: Wesco Group

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 45

Energy Commodity Prices Increased by 59% in 2021, EIA Reports by Bethany Blankley, The Center Square

The prices of energy, crude and gasoline all increased in 2021 from 2020, the U.S. Energy Information Agency reported. Prices increased because of higher demand and a range of other factors. By the end of 2021, commodities on the energy index traded 59% higher than they did on the first trading day last year on the S&P Goldman Sachs Commodity Index (GSCI), the EIA reported. GSCI is a commodity index that tracks the performance of global commodities markets. It’s a weighted average that’s updated every year. In 2021, the energy index comprised 54% of the GSCI, with the two crude oil benchmarks, the West Texas Intermediate (WTI) and Brent, accounting for approximately 70% of the energy index. WTI crude oil accounts for the largest share of the overall GSCI of more than 21%. Most GSCI commodity indexes increased by roughly 20%, with only the precious metals index declining in 2021. On a percentage basis last year, the energy index increased by more than double than the industrial metals index did. The only GSCI commodity

that increased more than the energy index was coffee. Prices for petroleum products RBOB and ULSC increased the most in 2021, trading higher by 67% and 64%, respectively, compared to 2020. RBOB is a reformulated grade of gasoline used as the benchmark for gasoline trading; ULSD is ultra-low sulfur diesel used as a benchmark for heating oil trading. Prices for crude oils on the WTI and Brent increased slightly less, by 62% and 55%, respectively, in 2021. Several factors contributed to the higher energy commodity prices last year, the EIA noted, including weather disruptions such as the February freeze in Texas and Hurricane Ida, which greatly impacted production in the Gulf. Other factors included increased demand for gasoline and diesel and an ongoing demand for crude oil and natural gas greater than the rate of production. Crude oil prices increased in 2021 with the spot price of Brent crude trading at $50 a barrel at the beginning of the year, increasing to $86 a barrel by late October. The 2021 Brent annual average of $71 a barrel was the highest it had been in the past three years. The

WTI’s average was $3 a barrel less than Brent’s in 2021. According to EIA’s December 2021 Short-Term Energy Outlook estimates, U.S. crude oil production in 2021 decreased by 0.1 million barrels a day from 2020 and by 1.1 million barrels a day from 2019. The EIA also estimated petroleum inventories decreased by 469 million barrels globally in 2021, “likely the largest annual inventory withdrawal since 2007.” Rising crude oil prices and increased gasoline demand also contributed to the highest national average price for retail gasoline since 2014. The national average increased to $3.01 a gallon in 2021, with retail gasoline increasing by more than a dollar a gallon over the course of the year. At the beginning of 2021, the national average retail gasoline price was $2.25 a gallon. It then passed the $3 a gallon mark on May 17 after disruptions to the Colonial Pipeline. Gas prices continued to increase throughout 2021, with the average price peaking at $3.41 a gallon Nov. 8. The average retail price was $3.28 a gallon by the end of the year, more than a dollar more than it was at the start of the year, EIA reported. The lowest average of $2.67

a gallon was in the Gulf Coast states, with Texas reporting some of the lowest gas prices all year. The highest average of $3.70 a gallon was on the West Coast, with California reporting some of the highest gas prices. From Jan. 4 to Dec. 27, 2021, retail gasoline prices increased by 88 cents a gallon in the Midwest, $1.20 a gallon in the Rocky Mountains and $1.32 a gallon on the West Coast, the EIA reported. The spike in prices in the Rocky Mountains and West Coast resulted from refinery closures in those regions, which led to reduced output of gasoline and lower gasoline inventories, the EIA noted. Less production was compounded by the fact that demand increased due to more visitors traveling to national parks, also putting a strain on already lower gasoline inventories, causing prices for delivery and prices at the pump to go up. One major contributor to high retail gasoline prices last year was high crude oil prices, the EIA pointed out. The average crude oil price for 2021 was the highest it has been since 2018, due to reduced U.S. refinery capacity, and low gasoline inventories that couldn’t keep up with demand.

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Volkswagen will Launch EV Bus on ID. Platform March 9 German automaker Volkswagen will launch an all-electric take on its famous microbus from the 1950s on March 9. The all-electric Volkswagen ID.BUZZ will be the latest edition to the automaker’s expanding fleet of electric cars.

“We want to make Volkswagen the most desirable brand for sustainable mobility. The ID. BUZZ embodies this like hardly any other model,” VW brand CEO Ralf Brandstätter said. The ID.BUZZ will, of course, use Volkswagen’s MEB platform that has powered vehicles like the ID.3 and ID.4, which

Volkswagen Auto Group CEO Herbert Diess tweeted Jan. 6 that “The Legend returns on 03/09/22!” The graphic then showed an outline of the all-electric VW ID.BUZZ, which will be officially unveiled in about two months.

have been widely popular in the European region. Details regarding the vehicle are relatively scarce; Volkswagen didn’t offer an official press release or any media attention other than the listed tweets to give direction to the

by Joey Klender, Teslarati

vehicle’s imminent unveiling. We do know the vehicle will be released in the U.S. in 2023. Pricing options are not currently available, and there are no indications of how many trims or configurations Volkswagen plans to offer. However, writers at automotive publication Car and Driver believe the van could start at around $40,000. Volkswagen has made a valiant effort the past few years to expand its lineup of all-electric vehicles. Instead of pushing EVs out on a non-dedicated platform, as it did with the VW e-Golf, Volkswagen began developing the ID. platform several years ago. It had its kinks early on, but Diess has stressed the importance of software in the coming age, along with the crucial nature of an accelerated push to electrification. It has not won Diess many fans involved with German unions, but it has helped the automaker remain relevant as Tesla leads the industry, and other legacy companies, like Ford, continue to advance their platforms and product lines to be more competitive.

BMW’s New Car Changes Color ‘With the Touch of a Button’ by Grant Currin, Interesting Engineering

Personalization and self-expression are turning out to be major themes at CES 2022. BMW’s big announcement Jan. 5—a technology that changes the color of a car with the touch of a

duction model of the iX Flow will be available soon, but vehicles with color-changing paint won’t be hitting showroom floors at car dealerships for quite a while—if they ever do. BMW described the chameleon-like exterior as an “advanced research and design project.”

A concept version of BMW’s iX Flow with color-changing paint. Credit: Interesting Engineering

button—shows the storied German automaker understood the assignment. The company unveiled the tech on a concept version of its new 100% electric iX Flow SUV. A pro-

The color-changing paint is a new, flashy application of a familiar technology. Electronic ink, which enables the “electric paper” technology that powers e-readers like Amazon’s Kindle, drives the paint

BMW unveiled Jan. 5. The ink is impregnated with microcapsules, about as thick as a human hair. White pigments within these microcapsules are negatively charged, and black pigments carry a positive charge. Input from the user shifts the electric field around the capsules, nudging some of the pigments to the surface where they change the color of the paint. The technology is currently available in black, white and a few shades of gray. “This [technology] gives the driver the freedom to express different facets of their personality or even their enjoyment of change outwardly, and to redefine this each time they get into their car,” according to Stella Clarke, who led the project within the company. BMW also pointed to more practical applications. Since white paint reflects light, it could keep interiors cooler in hot weather, reducing the amount of energy needed for air condition. Black, on the other hand, absorbs light and could reduce the amount of power needed to keep a vehicle comfortably warm.

Boyd Group Completes CEO Plan Boyd Group Services Inc. on Jan. 4 announced the completion of its CEO succession plan, first announced in August 2019. Effective Jan. 2, 2020, Brock Bulbuck moved into an executive chair role, and Tim O’Day succeeded Bulbuck and became president & CEO. Bulbuck remained in the position of executive chair for a two-year term to support the transition. On Dec. 31, this term came to an end. Bulbuck will remain a part of Boyd Group Services Inc. as he continues to serve as a director on the board. “I would like to acknowledge Brock’s retirement from management at Boyd,” said O’Day. “Brock’s dedication and drive during his 28 years at Boyd were instrumental in building the business and consistently achieving the company’s growth goals.” Source: Boyd Group Services Inc.

ASE Celebrates 50th Anniversary The National Institute for Automotive Service Excellence (ASE) has kicked off a yearlong celebration of its growth and many milestones achieved since its founding in 1972 by industry leaders who sought to recognize competent professional technicians and the repair facilities where they are employed. For half a century, ASE has worked to improve the quality of vehicle repair and service by testing and certifying automotive professionals, becoming the renowned independent non-profit organization striving to uphold and promote high standards of vehicle service and repair. From its initial offering of four automobile tests in 1972, ASE today offers 57 tests and certifications from automobile and medium-heavy truck to transit and school bus, collision repair, parts, military and others. More than a quarter of a million individuals currently hold ASE certifications in these areas of the transportation industry. Source: ASE

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February 2022 Midwest Edition

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Collide Showcase: Part 2 ��

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