February 2023 Midwest Edition

Romans Group Releases 2021 Profile of the Collision Repair Marketplace

The Romans Group announced its 16th annual white paper, A 2021 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace, is now available.

The pinnacle year for the collision repair industry was 2019, with an alltime high total addressable market (TAM) of $38.3 billion. Repair facilities were flush with repairable vehicles and had the manpower and parts to service the demand.

The recovery years of 2021 and 2022 were and continue to be awkward and choppy, as the collision repair industry attempts to bounce back within the constructs of numerous macro industry challenges and opportunities, U.S. economic and geo-political headwinds despite the many post-pandemic recovery advances within the collision repair

industry and throughout the broader interconnected auto physical damage landscape.

In 2021, despite a continued reduction in repairable claims, the industry’s TAM recovered to $38.6 billion despite fewer repairable claims, which were primarily supported by an offset increase in higher severity.

Collision Repair Industry

Our near-term future view sees a coalescing of several trends that portend industry growth with both risks and opportunities.

From the beginning of the pandemic in 2020 and continuing throughout 2022, demand for collision repair services exceeded technician capacity for most of the l CONTINUED ON PAGE 4

Carvana, Michigan Reach Deal That Leaves Used Car Megastore Without License in State

By Jamie L. LaReau Detroit Free Press

Used-car megastore Carvana said Jan. 11 it is back to “business as usual” in Michigan, but state officials say not quite because the company’s Novi location is no longer a licensed dealership. But Michigan car buyers can make a purchase with Carvana online and get a car.

Carvana and the state reached a settlement as part of an ongoing dispute over the state’s assertion that Carvana committed violations of the Michigan Vehicle Code, which Carvana admitted to doing.

In early October, state officials suspended the license of the Carvana dealership in Novi for

REGIONAL NEWS

“imminent harm to the public,” a claim Carvana has called “baseless.” The state said Carvana LLC, owned by Paul Breaux and located off of Novi Road near I-96, committed several violations of the Michigan Vehicle Code. The violations, which centered on untimely delivery of titles after vehicle sales, were discovered during an investigation by the state regulatory staff of multiple complaints

l CONTINUED ON PAGE 22

3

Missouri Men

Sentenced For Scheme To Transport Stolen Catalytic Converters

Three Rogersville and Springfield, MO, men have been sentenced in federal court for their roles in a scheme to transport tens of thousands of stolen catalytic converters across state lines as part of a multi-million-dollar business.

“These three defendants were the ringleaders of a scheme that impacted thousands of area residents,” said U.S. Attorney Teresa Moore. “We worked closely with a number of our law enforcement partners to shut down their multi-

INSIDE THIS ISSUE

million-dollar operation and bring the perpetrators to justice.”

Evan Marshall, 25, of Rogersville; Cody Ryder, 31, of Springfield; and Camren Joseph Davis, 25, of Rogersville, were sentenced by U.S. District Judge M. Douglas Harpool on Dec. 19.

Marshall was sentenced to five years and 10 months in federal prison without parole. The court also imposed a $750,000 money judgment against Marshall, ordered him to pay

l CONTINUED ON PAGE 12

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larger MLO consolidators in the U.S. and Canadian markets, which resulted in high levels of work-in process. We see this extending into 2023 due to the continuing labor shortage. It is not a matter of demand, but a supply side lack of labor availability.

Labor shortages and technician skill deficiencies are creating competition to acquire those who are interested in receiving training to improve their skill levels. This situation is consequently increasing technician acquisition, retention and benefit costs.

Insurance carriers have taken additional steps to increase premiums to cover their rising costs. Historically, repairers had a difficult time pursuing labor rates with insurers. Today, the collision repair industry is aggressively pursuing labor rate increases and is hopeful that insurer premium increases will allow for their labor rate increases.

Insurance carriers, which continue to account for a significant volume of claims to repairers, tend to favor MSOs that offer largely predictive and standardized outcomes.

We do see a nascent movement by several MLOs to move away from DRP relationships while opting into a predominantly OEM certification preference model.

MLO scale remains a competitive advantage.

The groundswell of support and adoption of OEM repair standards continues to emerge as the preferred norm. However, the degree of influence and control by the OEMs in directing business remains limited. There is a better near-term chance for ROI with premium and luxury brands today due to their more active involvement and adherence to program standards and processes influencing where cars are repaired.

Vehicle telematics will become a more influential factor in the future control of the claims process.

Electric vehicle sales are trending upward toward 10% of new car sales by YE 2022. We expect EV sales to increase to between 30% and 40% of sales by 2030.

Despite the expectation of the onslaught of EVs, range anxiety will need to be addressed and overcome through increasing battery range capability coupled with growing the number of charging stations nationally.

Full digitalization of the estimating process for qualified repairable claims starts with less complex

repairs and eventually migrates to more complex damaged vehicles. The journey starts with photos and evolves to telematics, reliance on artificial intelligence coupled with insurer-driven rules and integration of supplier network connections. This throughput connected process will automatically initiate and populate the line-item detail necessary for predictive and actionable estimates.

Continued evolution of business segmentation strategies will have the largest consolidators marketing their “one national shop model/ platform” to insurers, boosting a large marketplace network of available collision repair locations throughout the U.S.

This one-national-shop model is further segmented within markets by various clusters of collision repair locations that can provide a broad range of segmented capabilities able to satisfy a wide range of repair types including glass installation, express same or next-day service, non-drivable/total-loss processing and disposition, OEM standards and luxury model certification, advanced material repair, mechanical repair, diagnostic services including pre- and post-repair scanning and calibration, and partnering and operating dealership collision repair centers.

Private equity continues to be highly committed to the collision repair industry. MLOs will continue to aggressively acquire and merge. Consolidation is active within all auto physical damage segments. There remains much opportunity for further consolidation and continued private equity investment.

Despite the growing market share of the larger platforms and segments we track and analyze, there is still a long tail of smaller independent repairer fragmentation in the market which will be the basis for the next wave of industry contraction and consolidation.

Multiple Location Operator (MLO) Consolidation

Within the broader automotive aftermarket landscape, private equity and institutional capital continue to invest in most of the satellite segments surrounding the collision repair industry such as parts, paint, body and equipment (PBE), tire outlets, carwashes, dealerships and technology.

Comparing the first six months of 2022 to the same period in 2021, we saw an unusually slow period for MLO collision repair acquisitions by most consolidators, with Crash Champions and Classic Collision being the exceptions. Both Crash

Champions and Classic Collision will most likely advance in the ranking at year end 2022.

While Caliber and Gerber did acquire some MLOs during this time period, much of their expansion was through single-location acquisitions, brownfields and greenfields.

The most significant acquisition event of 2022 came in July, when Crash Champions announced its transaction with Service King with its new private equity partner Clearlake Capital.

There are a number of secular trends that exist today that will continue to have a material impact and influence on the collision repair industry and within the broader auto physical damage industry segments.

Insurtech claims processing operating models reinforce insurers’ preferred business economics, which frequently is at odds with the OEM repair model.

Vehicle damage estimation with photos evolving to vehicle telematics, relying on artificial intelligence coupled with insurer-driven rules with integration of supplier network connections.

U.S.-Canada trans-border market entrance as reflected by companies such as Collision Solutions Network, which merged in mid 2020 with 1Collision in the U.S with its continued

onboarding of new members; Fix Auto with ProColor entering the U.S. in early 2021 with its expanding franchise network in 2021 and 2022; and Lithia Dealership Group entering Canada with the acquisition of Pflaff Automotive Dealer Group.

OEM certification programs’ continued evolution, importance and involvement in collision repair. Our five-year forecast to 2026 has the $20 million segment and the top three consolidators aggressively growing their businesses while maintaining their significant market share lead over the franchise networks and the $10 million to $19 million MLO segments. We expect that by 2026, the top three consolidators will grow from their 2021 market share of 18.4% to between 24% and 28%.

Our annual report, A 2021 Profile of the Evolving U.S. and Canada Collision Repair Marketplace, is now available. The report contains the complete results of our research and analysis for 2021, including over 90 charts and graphs throughout more than 130 pages with historical trends and a future view.

The report can be purchased by contacting Mary Jane Kurowski of The Romans Group LLC at maryjane@ romans-group.com.

Source: The Romans Group LLC

“The

Mike Anderson, President and Owner of Collision Advice Group

Adan Ibarra, Owner of Leading Edge Collision

Countryside Body Shop in Sioux Center, IA, Changes Owners, Name

By Renee Wielenga Sioux Center News

Three rural Sioux Center, IA, businesses gained new ownership as of Jan. 1.

Arlin and Janene Van Gorp sold their businesses Countryside Body Shop, Countryside Signs and A & J Self Storage to Sioux County natives Joel and Allison De Weerd. Countryside Body Shop’s name is now JJ Customs Autobody & Sales Countryside Signs and A & J Self Storage will remain the same.

“This transition means everything,” Joel De Weerd said. “I’ve been looking to get back into the area for six years now. We’re excited to be back and raise our son around family and friends.

“Growing up in this area, I’ve always admired what Arlin and Janene have done. Not only as business owners but as church leaders and friends. It is the biggest dream come true to be able to continue adding on to what they have built. I know we have some huge shoes to fill, but we are willing to put in the work and are excited to give the community another 40 years of service.”

Arlin Van Gorp opened Countryside Body in 1983. “I grew up just four and a half miles east of here on a dairy and I decided at about 12 years old that’s not what I wanted to do with the rest of my life,” Van Gorp said.

He went to Northwest Iowa Community College in Sheldon for part of his junior and senior years in high school, graduating in 1974 and started working at J & R Bodyshop in Orange City. After about four years, he worked at Siouxbody Shop in Sioux Center until he opened his own business.

In 1994, he bought J & R Bodyshop, changing its name to Elite Auto Body He owned that business for 12 years before selling it to his shop manager.

“I started my shop because I wanted to be by own boss,” he said.

Van Gorp, 67, was 27 years old when he made that move the same age Joel is currently.

“It was a leap of faith as a young guy; I’m excited to give Joel this next stepping stone, too.” Van Gorp said. “I thought I was going to stay here forever, just cut back, but I tried slowing down and people kept coming. I came to the realization I needed to sell and step away if I really wanted to slow down.”

One name came to mind for that opportunity. De Weerd has 10 years auto body experience, three years of which was working for Van Gorp while he attended Dordt College, 2013-15.

“It was a God thing when Joel worked for us,” Janene said. “He was a young kid and would walk around and say some day he’s going to own this place … God orchestrates the past to plan for the future. Us hiring Joel 10 years ago was God orchestrating the past to bring us to where we are today.”

De Weerd’s original goal when going to Dordt was to design cars. In talking with a high school guidance counselor, they recommended trying auto body work.

De Weerd started at one auto body shop and then moved to Countryside Body while attending Dordt.

“After the first semester of taking a class learning about lines, I knew graphic design this wasn’t for me. I needed something hands on and I realized I can’t spend so much time behind a computer,” De Weerd said.

CIF Announces 2023 Board of Trustees

The Collision Industry Foundation (CIF) is excited to announce the Board of Trustees and elected officers for 2023.

The board includes 15 individuals who have volunteered their time and made the commitment to serve the mission and vision of CIF.

The incoming 2023 officers, rounding out the executive leadership, are as follows: President Dan Risley of CCC Intelligent Solutions Inc., Vice President Casey Steffen of Saint-Gobain Abrasives, Treasurer Jim Ocampo of Axalta, Secretary Petra Schroeder, Collisionista, and Immediate Past President Michael Quinn of AirPro Diagnostics.

CIF also welcomes the following

newly elected trustees for 2023: Martin Crowell of GEICO, Harry Hall of National Coatings & Supplies | Single Source, Paul Hill of I-CAR, Brenda Hogen of PartsTrader and John Webb of TenPoint Complete. Trustees continuing their terms to serve CIF are: Yvette Burke of Enterprise, Jordan Hendler of Admin Concepts, Frank LaViola, Scott Walton of Sherwin-Williams and Jeff Wildman of BASF.

Source: CIF

“In working for the body shops, I started to love fixing up vehicles, designing them and putting my own twist on it, taking something that was crinkled up and making it new again. I fell in love with it.”

De Weerd graduated from Dordt with a two-year business degree, hoping one day to own his own body shop. He spent time managing hogs and then as a feedmill operator while fixing cars on the side before the opportunity to start his own auto body shop in Sutherland came up six years ago. “I bought it out of opportunity, but it was never where I wanted to be,” he said. “I always wanted to be here in Sioux County. I’m the fourth out of five kids. All my siblings are within eight miles of here. We’re married, have kids. We hated being out of the loop being so far away.”

De Weerd even drove an hour every Sunday to continue going to Maurice Reformed Church, where he first met the Van Gorps as a 3-yearold child. Later on, the couple were even his high school youth group sponsors.

De Weerd and the Van Gorps started talking about the transition about six months ago.

“It means everything to be back

here,” De Weerd said. “I’ve dreamed about this for years.”

“We have known Joel for many years and assure everyone of his integrity, his trustworthiness and the quality of his work,” Van Gorp said.

As the Van Gorps wait for their twin home to be built by June, they plan to live in their RV in Arizona for the winter and possibly at Sandy Hollow Recreation Area for a little while.

“I’m excited for less responsibility and to enjoy some time off and traveling,” Van Gorp said.

De Weerd and his wife, Allison, moved to the Countryside Body acreage with their 1-year-old son, Jetson. His dad, Gary De Weerd, will join him in the shop and his brothers may also on occasion as De Weerd is in need of their mechanical and welding expertise.

JJ Customs Autobody & Sales offers auto body repair as well as custom accessories from B & W trailer hitches, Rough Country Suspension systems, Gatorback mudflaps, Huskly liners, Weathertech lines and AMP Research steps, Truxedo access, Lund International accessories as well as Scorpio bed liners and window films.

De Weerd is also a licensed dealer to sell used vehicles.

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Alignments Too Critical for Collision Repair Shops to Not Do Them In-House

During a recent meeting I had with my SPARTAN 300 20 Group, we reviewed some vehicle crash test videos posted by the Insurance Institute for Highway Safety, like one showing a side crash test of a 2022 Toyota Corolla.

A preventative maintenance alignment what people were talking about years ago when they said, “Set the toe and let it go” are the typical $89 alignments to make sure the vehicle handles properly and the tires don’t wear unevenly.

trying to avoid that by putting some weight in the vehicle instead: Stop it! Follow the OEM procedures. I have seen only two automakers that give you procedures for how to do that instead of filling.

We may also have to do some advanced diagnosis. The subframe could be misaligned, for example. If you let the subframe bolts loose and it jumps, that tells you it’s got some pressure on it. You may also have to adjust a cross-member for torque steer.

There’s just a lot more that we have to do.

Being able to do alignments inhouse is also important because I believe that in order to write an

37% of shops said they were paid “always” or “most of the time” for a pre-diagnostic alignment by the eight largest national insurers. That was up to 45% in last year’s survey.

In the video, if you watch the tires on the vehicle as it gets pushed sideways by the sled, you can see they leave black marks on the floor just as they would if they scraped against the pavement in a real collision.

Watching this, the question came up: Could that create flat spots on the tires?

One of our group’s members checked the run-out on tires on collision damaged vehicles in their shop using the Hunter Road Force Elite, and found more than 27% of the tires they checked did have flat spots.

That led us to a discussion about alignments. We know more and more vehicle system calibrations require an alignment prior to the calibrations. And more and more alignments require a calibration of some system after the alignment. It won’t take you long looking through automaker repair procedures to know more and more automakers are saying an alignment is necessary any time a vehicle has been in an accident. Electronic stability systems are just one of the systems that rely on the vehicle being properly aligned.

Given all this, I believe in today’s collision world, you really need to be able to do alignments in-house.

I know some of you will say: But the bill-payer only wants to pay me $89 for an in-house alignment. But let’s remember there are at least four different types of alignments.

Still, about two in five shops acknowledge never having sought to be paid for this important process.

Mike Anderson — From the Desk of Mike Anderson

The black marks left on the floor of a crash test facility are an indication that accidents can result in tires having flat spots, something collision repairers need to be aware of.

“We know that more and more vehicle system calibrations require an alignment prior to the calibrations.”

MIKE ANDERSON COLLISION ADVICE

Car ADAS Announces New Licensee in Ohio, Calibration Connection

Car ADAS Solutions, a leading provider of ADAS calibration technology and services, announced the addition of its first licensee in Ohio, Calibration Connection.

Located in Mentor, OH, the facility is operated by DCR Systems, owned by Michael Giarrizzo and Cheryl Boswell

“We are excited to have Michael Giarrizzo, Cheryl Boswell and the team at DCR Systems open a best-inclass calibration center under the Car ADAS model,” said Greg Peeters, founder and CEO of CAR ADAS. “They are forward-looking body shop owners and industry leaders, understanding the importance of delivering complete and precise advanced driver-assistance systems (ADAS) calibrations to ensure a proper repair.”

Founded in 2004, DCR Systems develops on-site accident repair facilities for auto dealers seeking to outsource this function as an additional fixed operation. They operate nine production cells in four states.

After learning about CAR ADAS at an industry event, Giarrizzo and Boswell talked to Peeters about the

company’s 12 elements for opening and operating an ADAS calibration center. Until recently, DCR Systems sublet its calibrations and was interested in finding a way to do them in-house.

It was important for DCR Systems to understand all the components of setting up a calibration center and then have access to support, so they didn’t have to go through a long learning curve.

“I saw Car ADAS as the complete solution,” said Giarrizzo. “They hold your hand throughout the whole process.”

“We wanted to be in the calibration business and Car ADAS offered us the solution to getting started,” added Boswell.

Over eight weeks, Car ADAS helped with all facets of setting up Calibration Connection, which included everything from market evaluation to finding the proper equipment and training.

“I’ve listened to a lot of panel discussions on calibrations, and you can under-equip and over-equip,” said Giarrizzo. “What they do is get you properly equipped.”

Giarrizzo said if he were leading

the project himself, he would be leading and learning at the same time, which can take two to three times as long.

The former classroom at DCR Systems’ Mentor location was converted to a calibration center with the assistance of Car ADAS. This included raising the ceiling, adding dimmable lights and leveling the floor. The classroom will eventually be relocated to the upper level of a new addition to the business.

Two existing employees were trained at the Car ADAS facility in Salt Lake City, UT, to run the dayto-day operations at DCR Systems’ calibration facility.

“They came back with rave reviews about the training,” said Boswell. “They are young in their careers and don’t want to make mistakes and realize the importance of the calibration work they are doing and putting a safe vehicle back on the road.”

A Car ADAS trainer also visited DCR Systems for an additional week of on-site training.

Giarrizzo and Boswell are encouraging their technicians to get comfortable and confident in doing

calibrations. “Speed will come down the road and it’s starting to happen now,” said Boswell.

The DCR Systems team is impressed with the assistance provided by Car ADAS. Boswell said the team touched base regularly during the setup process with updates and weekly calls.

“This allowed us to flush out any concerns or challenges that technicians were having and help them identify what calibrations are necessary based on the work done to the vehicle,” she said.

One of the biggest concerns and opportunities the industry faces right now, according to Giarrizzo, is calibrations.

“It’s almost frightening the number of calibrations that are being missed in our industry right now with very few people doing them correctly,” he said. “If you have the space and the desire to get into the calibration business, Car ADAS provides an easy entry point.”

Source: Car ADAS

The National Auto Body Council® (NABC) announced Jan. 11 it has named Deborah Robinson as the executive director for the organization.

Robinson, who has served the NABC as head of marketing and public relations as president of Victory Management Group

the momentum of the NABC in changing and saving lives every day.”

Robinson brings deep experience in the automotive industry, leading clients such as Driven Brands with its portfolio of companies including CARSTAR, Fix Auto USA, ABRA, Maaco, Auto Glass Now, Take 5 Oil Change and Meineke; VeriFacts Automotive; Goodyear Brakes; Lowe’s Racing; Dodge Motorsports; Ray Evernham Enterprises; Charlotte Motor Speedway and NASCAR Racing Experience, among others.

since 2017, was selected in a unanimous decision by the NABC Board of Directors and Executive Committee for the role after an extensive search process.

“I am honored to continue serving the National Auto Body Council and its members in a new role as the executive director,” said Robinson. “I admire the members and the work they do in giving back to their communities, and look forward to continuing

“We’re proud to welcome Debby, with her background and experience, as our next leader for the National Auto Body Council, said Scott Sampley, chairman of the NABC Board of Directors. “She has provided unwavering support, valuable counsel and impactful results to the NABC over the past five years. We are excited about the future for our organization and our members.”

Source: NABC

Kelly BMW

Phone: 614.47 1. 2277

Parts Direct: 614.337.3090

Parts

NABC Announces Deborah Robinson As New Executive Director

$19,133 in restitution to victims of the conspiracy who law enforcement were able to identify, and forfeiture of the following items seized by law enforcement: 33 rifles, 20 scopes, six shotguns, 26 handguns, a Glock sub conversion kit, eight ammunition magazines, a 2011 Ram 3500 oneton pickup, a 2004 Dodge Ram, a flatbed trailer, two 42-foot gooseneck flatbed trailers, a 16-foot livestock trailer, a 2021 Load N Go utility trailer, a 2007 car hauler trailer, a Volkswagen dune buggy, two Harley Davidson motorcycles, a 2012 Keystone fifth wheel camper, a Caterpillar skid steer, a 2019 Honda Talon SXS 1000 side by side, a 2016 Polaris RZR side by side, a Polaris Ranger 4x4 and 191 catalytic converters.

Ryder was sentenced to two years and five months in federal prison without parole. Davis was sentenced to five years of probation. The court imposed money judgments against Ryder and Davis of $125,000 each.

“We are pleased to be a part of, and to see the successful ending, to this long-term investigation,” said Springfield Police Chief Paul Williams “It is good to see the main participants in this crime being held accountable, and the potential for restitution for victims in our community.”

“Our community is painfully aware that catalytic converter thefts are not victimless crimes,” said Acting Special Agent in Charge of the HSI Kansas City Area of Responsibility Josh Armstrong. “While many may consider catalytic converter thefts to be victimless, all too often criminals involved in these types of thefts sometimes funnel the profits gained to organized criminal networks to fund additional, more dangerous crimes.”

On June 16, Marshall pleaded guilty to one count of transporting stolen property across state lines. Ryder pleaded guilty June 13, and Davis pleaded guilty April 21 to their roles in a conspiracy to transport stolen property across state lines.

Co-defendants Enx Khoshaba, 30, Leslie Ice, 38, and Eric Kaltenbach, 38, all of Springfield, and Danielle Ice, 34, of Columbia (formerly of Springfield), also pleaded guilty to their roles in the conspiracy to transport stolen property across state lines and await sentencing.

Marshall admitted he transported stolen catalytic converters, valued at $1 million or more, across state lines from December 2019 to October 2021. Marshall also admitted he bought tens of thousands of stolen catalytic converters directly from his

co-defendants and from other thieves, and sold the stolen catalytic converters for a total of approximately $1 million.

Marshall began selling the catalytic converters to a company in Mountain Home, AR, in the fall of 2019. At that time, Marshall would purchase junk vehicles and sell the vehicles’ parts, including the catalytic converters.

In the late fall of 2019, the owners of the Mountain Home company asked Marshall if he would begin purchasing catalytic converters in southwest Missouri and sell to them exclusively. Marshall agreed to do so; in return, they regularly provided Marshall with cash so Marshall had the funds to purchase a higher volume of catalytic converters. They also provided Marshall with a list of valuable catalytic converters.

By December 2019, Marshall had mostly ceased buying junk vehicles and scrapping them out for parts, and instead began purchasing alreadydetached catalytic converters from scrap yards and individual sellers.

By January 2020, the owners of the Mountain Home company were wiring Marshall hundreds of thousands of dollars on a monthly basis so Marshall could purchase a higher volume of detached catalytic converters.

By December 2019, Marshall had also enlisted Davis to work for him and another company, which Marshall also established in December 2019. Davis’s job was to purchase catalytic converters using cash that Marshall provided him. During that time period, Marshall provided Davis with hundreds of thousands of dollars in cash to purchase catalytic converters on Marshall’s behalf. As part of the arrangement, Davis exclusively sold the catalytic converters he purchased to Marshall.

On at least one occasion, Marshall provided Davis with $40,000 in cash for the purchase of catalytic converters on Marshall’s behalf.

Davis admitted he bought at least 1,500 stolen catalytic converters from various thieves and sold them to Marshall for a total of approximately $250,000.

In February 2021, Marshall enlisted Ryder to work for him and his company. As with Davis, Ryder’s job was to purchase catalytic converters using cash Marshall provided. From February 2021 through October 2021, Marshall provided Ryder with hundreds of thousands of dollars in cash to purchase catalytic converters on Marshall’s behalf. As part of the arrangement, Ryder exclusively sold the catalytic converters he purchased to Marshall.

On at least one occasion, Marshall provided Ryder with $10,000 in cash for the purchase of catalytic

converters on Marshall’s behalf.

Ryder admitted he bought at least 1,500 stolen catalytic converters from thieves and sold them to Marshall for an aggregate amount of approximately $250,000.

Many of the catalytic converters Davis and Ryder purchased with the cash Marshall provided them were stolen, which Marshall knew. Marshall paid Davis and Ryder an agreedupon percentage amount over their purchase price for the catalytic converters, less the amount of cash Marshall had fronted them.

From December 2019 through October 2021, in addition to using Davis and Ryder as buyers of stolen catalytic converters, Marshall also purchased stolen catalytic converters directly from thieves.

In July 2020, a Springfield police detective contacted Marshall regarding the purchase of catalytic converters from individuals known to be thieves. Despite being put on notice he was purchasing stolen catalytic converters, Marshall continued to purchase stolen catalytic converters, including from at least one of the individuals identified by the detective.

Marshall admitted he knowingly purchased stolen catalytic converters from co-defendants Davis, Ryder, Ice, Kaltenbach, Khoshaba and at least six other thieves. Marshall transported

and sold almost all of the catalytic converters, including the stolen catalytic converters, to the owners of the Mountain Home business.

Marshall, Davis, Ryder and others loaded the catalytic converters, including the stolen ones, into bins placed on trailers at Marshall’s residence. They hauled the trailers, which each contained between 800 and 1,200 catalytic converters, many of which were stolen, from Rogersville to Mountain Home.

Marshall transported catalytic converters from Rogersville to Mountain Home approximately every two weeks from December 2019 through October 2021.

This case is being prosecuted by Assistant U.S. Attorneys Shannon T. Kempf and Anthony Brown. It was investigated by the Springfield Police Department, Homeland Security Investigations, IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Christian County, MO, Sheriff’s Department, the Webster County, MO, Sheriff’s Department, the Missouri Department of Revenue and the Greene County, MO, prosecuting attorney.

Source: U.S. Department of Justice Western District of Missouri

Nonprofit Continues Mission To Connect Aspiring Collision Repair Students To Scholarships

By Abby Andrews Autobody News

Over the years, the University of the Aftermarket Foundation (UAF) has awarded millions of dollars in scholarships to high school and college students looking for a career in the automotive aftermarket and commercial vehicle industry, by making it easy for them to be considered for scholarships from more than 40 organizations by filling out just one application.

In 2022 alone, UAF awarded 461 scholarships totaling $731,350. This year, that single application is due March 31, and can be completed on UAF’s website, automotivescholarships. com/apply-online.

Full-time students at an accredited U.S. college or university, or an ASE/ NATEF-certified post-secondary automotive, heavy duty or collision repair school, as well as graduating high school seniors planning to attend any of the above full time are eligible for the scholarships. There is no GPA requirement.

Priority in awarding scholarships is given to those pursuing a career in the automotive aftermarket, and sons and daughters of aftermarket industry families.

Students who receive a UAF scholarship are eligible for a second grant upon graduation from their program and after completing six months of employment as a technician in the automotive or heavy-duty industries.

said.

Later, in 2001, the Global Automotive Aftermarket Symposium (GAAS) was formed, Pavey said, also to raise money for and distribute scholarships.

In 2016, GAAS became a part of UAF. Between the two organizations’ histories, both separately and since they combined, more than 5,000 scholarships have been awarded.

“We have scholarships today for every different part of the industry,” Pavey said. “We promote scholarships to anyone who has any kind of aftermarket interest, and work with different suppliers and distributors to make sure we are addressing the entire marketplace.”

about our industry when you see the quality of people trying to get involved.”

Pavey said he thinks little by little, the automotive aftermarket industry is being seen as a viable career option, as vehicle technology becomes more sophisticated, but he thinks it could still be better promoted.

“The need for techs has never been bigger; the shortfall is the largest it’s ever been,” Pavey said. “The average age of [existing] techs is getting higher. Certainly the numbers are still such that we need a lot more technicians.”

Scholarship recipients for the 202324 school year will be announced in June.

Larry Pavey, vice chairman of the UAF Board of Trustees and CEO of Automotive Parts Services Group, said UAF, originally known as the Automotive Warehouse Distributors Association (AWDA) University Foundation, was established in 1986.

“It brought together distributors and manufacturers who wanted to promote education and participation in the automotive aftermarket, with the feeling we were beginning to lose people coming into industry,” Pavey

Pavey said the UAF gets a few thousand applicants every year.

Teams of 10 volunteers review 100 or 150 applications each. Pavey said he has been managing one of the teams for the last 12 or 15 years, and has seen how the applications have changed over time.

More women are applying for the scholarships, and the educational credentials of the applicants has only increased.

“It’s a tremendously better group of students,” Pavey said. “Once you’ve spent a long weekend reviewing 150 scholarships, you feel really good

Pavey said the advantage to filling out a single UAF scholarship application means students might win a scholarship they didn’t even realize they qualified for.

“The cool thing about our process is there’s over 40 organizations offering scholarships, and they’re all different,” he said. “A student can be focused on collision, but could also get [a scholarship from] Women in Auto Care. If they’re from Kentucky, they could get one from KIAWA. We’re kind of a one-stop shop for the automotive aftermarket.”

UAF funds the scholarships through a combination of donations and fundraising events. For more information on how to donate, visit uofa-foundation.org.

The Univeristy of the Aftermarket Foundation’s Executive Committee.

By Ed Attanasio Autobody News

Chris Slack manages a parts department at Ivan Gandrud Chevrolet in Green Bay, WI, that employs 30 people, including eight counter people and three service technicians.

part of Michigan with a fleet of 18 trucks.

Gandrud has been exhibiting at SEMA for the past four years, after attending it the four years before that. Autobody News asked him about the show and its impact on his business.

Q: What were the central issues that shops and parts suppliers were dealing with in 2022?

performance and collision customers at the show so that is nice also.

Q: How has SEMA changed since your first show?

A:I think there will be fewer collision shops and also fewer wholesale parts dealers.

The department carries an inventory of approximately $5.5 million, consisting of mechanical, collision and performance parts, and is 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

A: We have been dealing with a bunch of issues but the biggest is backordered parts. So many parts are unavailable from the manufacturer. We have been trying to make it seamless by buying parts for our customers from other dealers across the country. We have bought more parts from other dealers than ever before, but if that’s what it takes to get a car finished and out of our customer’s shop, then that’s what we have to do.

Q: Do you see value in a show like SEMA for dealer parts suppliers?

A: SEMA is a great show for us because we have a large Chevrolet Performance parts business. We see a lot of our

A: I think SEMA has changed from a performance show to a more complete automotive show. Now even the service manager and the collision shop manager should attend and visit all the vendors and attend training.

Q: Do you think parts availability will improve significantly in 2023?

A: No, maybe by the end of 2023, availability is improving but very, very slowly.

Those are definitely the three top concerns. We need a bigger facility because we need more inventory which means more people and more delivery drivers. We have had to cut back on our delivery area because we don’t have time to deliver to all our customers.

Q: What will your sector look like in 2025?

The parts dealers are under a lot of pressure right now. Our discounts from the manufacturers have dropped because of availability— many parts can no longer be ordered at a truckload discount but instead we have to special order it one at a time to get the part at a much lower discount. Delivery expenses have gone up, personal costs have gone up.

But as the large MSOs buy up all the collision shops, they are demanding bigger discounts. That’s a business model that doesn’t work. The collision shops should instead work on getting a higher labor rate from the businesses that control that.

Q:If a young person was going to enter this industry, what would you tell them?

A:Now is a great time to get into the parts and collision business. Demand for qualified people has never been higher. Every collision shop and wholesale parts department in the state is hiring right now.

Chris Slack manages the parts department at Ivan Gandrud Chevrolet in Green Bay, WI.

MN Closes Loophole on Damage Transparency For Used Cars

By Mike Moen Public News Service

A new Minnesota law took effect Jan. 1 designed to reduce risks for people buying used vehicles. It comes as more Americans lean on the market for previously driven cars.

Industry source Kelley Blue Book said the U.S. saw a 10% increase in used-vehicle purchases in 2022.

Prices for those cars have gone up, but so have monthly payments for brand new models which also have dealt with supply chain issues.

The Minnesota law change gets to the issue of “title washing,” which allowed used fixed-up cars with heavy damage in their past to evade a salvage designation.

Bill co-sponsor state Rep. Cheryl Youakim, DFL-Hopkins, said she hopes the “prior salvage” brand provides transparency, but flexibility, too.

“It was trying to find that ‘sweet spot,’” said Youakim, “so that you still had safe, reliable cars on the road that were affordable, but also that the buyer would know exactly what they’re buying.”

The loophole the law addresses is specifically for cars coming from other states.

The branding is geared for less expensive vehicles holding a clean Minnesota title, despite incurring

important when people need them to get to work and other places.

“That 80% of a prior value on a $3,000 car and it’s just body damage,” said Youakim. “Somebody might want to take that

CARFAX Warns Odometer Rollbacks on the Rise

Alarming new numbers from CARFAX show odometer rollbacks are on the rise nationwide.

More than 1.9 million vehicles on the road have had their odometer rolled back—a 7% increase from the previous year.

Consumers lose an average of $4,000 in value from unknowingly buying a rolled back car, and that doesn’t include unexpected maintenance costs.

damage that costs more than 80% of its value or causes an insurance company to declare the vehicle a total loss.

Insurance matters can be a tricky issue for salvaged vehicles. But Youakim said if the prior damage is more cosmetic say from hail damage having more affordable cars to choose from right now is

Pump Prices Creep Higher Amid January Doldrums

By Andrew Gross AAA

The short days and messy weather of January are combining to keep people off the roads, lowering gasoline demand. But the price of oil rose as fears of a global economic recession eased.

The national average for a gallon of gas rose by five cents over the previous week to $3.32 as of Jan. 17.

“Gasoline demand is usually lackluster this time of year,” said Andrew Gross, AAA spokesperson, “and it likely won’t start to tick up until spring break draws near. So the primary factor in this latest increase is the higher cost of oil, which accounts for more than half of what you pay at the pump.”

According to data from the Energy Information Administration, gas demand barely budged over the same week, rising slightly from 7.51 million b/d to 7.56 b/d. Meanwhile,

total domestic gasoline stocks rose from 222.7 million bbl to 226.8 million bbl. Flat gasoline demand and increased supply are contributing to limited pump price increases.

The Jan. 17 national average of $3.32 is 17 cents more than a month ago and a penny more than a year ago.

The nation’s top 10 largest weekly increases: Colorado (+32 cents), Georgia (+30 cents), Indiana (+17 cents), Nebraska (+13 cents), Wyoming (+12 cents), Illinois (+10 cents), New Mexico (+10 cents), Texas (+9 cents), Washington, D.C. (+7 cents) and Utah (+7 cents).

The nation’s top 10 most expensive markets: Hawaii ($4.98), California ($4.42), Washington ($4.00), Nevada ($3.94), Alaska ($3.71), Oregon ($3.68), Pennsylvania ($3.64), Washington, D.C. ($3.53), Illinois ($3.52) and New York ($3.44).

Source: AAA

chance and say, ‘You know, it’s still drivable, it’s still usable.’”

She said people in those situations will now have this added consumer protection.

The law change stemmed from recommendations offered by a task force that gathered input from lawmakers, insurance companies and repair experts.

“Many people think odometer fraud disappeared with the invention of digital odometers,” said Emilie Voss, public relations director for CARFAX. “But that couldn’t be further from the truth. We’re still seeing the number of vehicles on the road with a rolled back odometer rise year-over-year. It takes con artists a matter of minutes to wipe thousands and thousands of miles off a vehicle’s odometer, and unfortunately these swindlers likely see this unprecedented used car market as a way to make quick buck.”

CARFAX offers a free Odometer Fraud Check tool and tips to protect yourself at www.carfax.com/odo.

Source: CARFAX

Large Inventory of Genuine BMW Parts

Competitive Pricing and Discounts

BMW of Des Moines

Phone: 515-446-3660

Parts Fax: 515-278-2917

Hours: M-F 8am-5:30pm; Sat 8am- 4pm

www.bmwdesmoines.com

jcarlson@lithia.com

9997 Hickman Road, Urbandale, IA 50322

Professional and Experienced Wholesale Staff ©2023

Orders accepted through Collision Link, Parts Trader and OPS Trax

BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

Maaco Celebrates 50th Anniversary Milestone At 2022 Convention

By Abby Andrews Autobody News

Maaco looked back at 50 years in business—and forward to its next 50—at its 2022 convention, held Nov. 15-18 in Carlsbad, CA.

The second day of the gathering, Nov. 16, featured messages from Maaco’s senior leadership team, a message from keynote speaker Mike Anderson of Collision Advice and several breakout sessions for attendees. The recipient of the Tony Martino Hall of Fame and Vendor Partner of the Year awards were also announced.

The convention ran through the evening of Nov. 18, featuring a charity golf tournament, vendor trade show, fall festival and a gala.

“Let me be clear—we are proud to be celebrating the achievements of the past, but it is equally important to stay hungry, ensuring many more achievements for the future,” said Chris Dawson, president of paint and collision for Driven Brands.

Tony Martino Hall of Fame Award

The award was presented by Maaco founder Tony Martino’s son, Mark Martino, who shared memories of how his dad got the franchise started, opening the pilot location in Wilmington, DE, in 1972.

“I remember saying to Dad, ‘Are you sure anyone would want to do this for a living?’” Martino said. “He hesitated for a minute and then said emphatically, ‘Yes, I’m sure someday we are going to have hundreds of these Maaco centers all over the country.’

“His prophecy proved true and

here we sit, 50 years later, celebrating his foresight and dedication,” Martino said.

The Hall of Fame award named for Tony Martino is given to an owner who personifies Maaco’s founding values of providing quality service at a fair price.

This year, it was presented to Jay Patel, who owns 11 Maaco stores in four states and, over his 30+ years with the franchise, has gotten much of his extended family involved in the business.

“I am so grateful for this honor, and I give all the credit to Tony Martino,” said Patel. “He taught me so much that I have applied to my business to be successful. The most important thing was taking care of the customer. His saying was ‘paint a car, make a friend,’ and my goal and my team’s philosophy is to treat them like family, and the goal is always to make a customer for life, whatever it takes.

“I believe in the Maaco system,” added Patel. “Maaco has the successful formula, and all I have done is applied it. I don’t try to reinvent the wheel—they already invented it, and it works.”

Keynote Message

Mike Anderson of Collision Advice spoke about how franchisees should grow their teams to grow their business.

“Everybody on the collision side in the U.S. has a five- to eight-week backlog of work,” Anderson said. “What everyone does not have is people.”

To grow a team, owners have to either help existing staff get better at what they do, or bring on new hires. And to do that, owners must create an environment where people don’t love their jobs—they love the organization.

“You want them to love working for YOU,” he said. “Culture is your commodity, the goose that lays the golden egg every single day.”

Anderson said the industry has a whole does not have a staffing shortage—it has a “we don’t pay enough” problem.

“We have got to offer better compensation,” he said.

Another key is to lay out a career path for employees, so they see how they can advance.

The lines between collision work and what Maaco does are becoming more blurred, Anderson said, thanks to increased ADAS features on cars

that make recalibration necessary to complete what was once a simple paint job on a front bumper. Improper recalibrations can cause accidents, leading to liability issues.

“This is not a message of doom and gloom; it’s an area of opportunity,” Anderson said, noting Maaco owners might be able to expand their services to include ADAS calibrations for other area shops.

Anderson said Maaco owners also need to make sure their customer service is modern, not antiquated, offering conveniences like concierge service, email receipts and a 24/7 digital presence, so customers feel like they can start the repair process even outside of normal business hours.

Maaco’s Online Estimating Tool, launched pre-pandemic in 2019 and now on its fourth version, is a great way to do that, Anderson said.

“It’s difficult if not impossible to write an estimate based on a photo, but look at it as a marketing strategy to capture a hot lead outside of business hours,” when most crashes occur, he said.

Shops like Maaco also have to dominate online reviews, as voiceactivated searches for things like “best auto paint repair shop near me” only return the top result.

To do that, shops need “social proof,” like online reviews, to vouch for their ability to fix a car.

who have both partners for more than a decade.

Media Roundtable

Executives, including Dawson, Maaco COO Daryl Hurst, Porcelli and Driven Brands Senior Vice President of Marketing Hannah Whitesides, participated in a media roundtable.

Dawson opened the roundtable by saying 2021 was a stellar year, as Maaco assembled an incredible leadership team, listened to franchisees and leveraged data for the first time to look at what was happening and what needed attention within the franchise.

Shops like Maaco also need to regularly communicate with vehicle owners during the repair process, even if it’s a “no update” update.

“Keeping them informed drives the customer experience,” he said. “Let them know you’re still working on it, you haven’t forgotten them.”

Vendor

Partner

of the Year

Senior Vice President of Strategy and Franchise Administration Chris Porcelli presented the Vendor Partner of the Year award to cowinners Sherwin-Williams and 3M,

“Most importantly, we listened to consumers, started using research to find out what they were asking from us and putting together a plan, and the results are beginning to show,” Dawson said.

Porcelli said Maaco, as part of Driven Brands, is using scale to support its partners.

Whitesides talked about some of the ways Maaco has acknowledged its 50th year, including celebrating a shop-level employee every week and partnerships with other companies, like one with Ray Ban to give away 50 pairs of golden sunglasses.

Going forward, Hurst said Maaco will “stay true to our core, look at the evolution of vehicles and what the consumers need, and leverage data to help franchisees to do business in the future.”

In 2023, Porcelli said, Maaco will be focused on growth, specifically strengthening fleet partnerships.

“We just went through one of the most trying times as a nation,” Dawson said. “We didn’t just thrive, but Maaco was there for franchisees every step of the way. We came out in a better place. Existing franchisees want to open more stores, and we couldn’t be more excited for that growth.”

Pictured, left to right, are Driven Brands Collision and Paint President Chris Dawson; Mark Martino, son of Maaco founder Tony Martino; Maaco COO Darryl Hurst; franchisee Jay Patel, winner of the Tony Martino Hall of Fame Award; Maaco Vice President of Operations Bryan Jones; Driven Brands Senior Vice President of Marketing Hannah Whitesides; Maaco Senior Vice President of Strategy and Franchise Administration Chris Porcelli; and Maaco Vice President of Franchise Services Dave Gross

Sherwin-Williams was a co-winner of the Vendor of the Year Award

3M was a co-winner of the Vendor of the Year Award

Carvana, Michigan

from consumers about title problems with their vehicles.

On Jan. 11, Carvana’s Senior Associate General Counsel Chris Olson told the Free Press exclusively that Carvana agreed to voluntarily hand in its in-state Michigan dealer license for a period of three years when it can apply for it again. The Michigan Department of State confirmed the settlement with Carvana and provided the signed agreement to the Free Press.

“To save taxpayer dollars that would go to court fees it is standard practice for our department to offer plea deals to dealerships that violate the law and are likely to have their licenses revoked,” said Jake Rollow, chief external affairs officer for Secretary of State Jocelyn Benson. “In a plea deal signed with our department, the Carvana dealership in Novi agreed it had violated the law and to have its dealer license revoked and be barred from reapplying for a new license for three years.”

Carvana said settling the matter allows both sides to move forward and for the company to continue to serve Michigan’s car buyers, this time with new practices in place to assure compliance with Michigan law.

“I view this as a positive. I recognize that we were late, we weren’t perfect and the state was frustrated at us not being able to get things done timely for customers. We see this as a pretty small bucket of people, but it’s important to them,” Olson said. “And, we have to get it right. I hope this closes the chapter on the idea that Carvana is a mess. Our performance today is really, really good, so I hope this is closing that chapter.”

Doing Business Out of Arizona

Carvana’s sales in Michigan make up about 2% to 3% of the company’s total U.S. sales. Carvana has not released its total sales for last year, but in 2021 it sold about 425,000 car across the nation, Olson said.

Olson said the settlement doesn’t change much for Michigan car buyers who could still buy a car from Carvana online and have it delivered to them even during the state’s suspension due to Michigan law allowing e-commerce activity.

As part of the settlement, Michigan consumers can still buy a used vehicle from Carvana online and either take delivery of it at Carvana’s vending machine in Novi or Carvana will deliver it to their home. Carvana, based in Tempe, AZ, told the state regulators it would use an Arizona selling license and process to conduct business in Michigan. That means Michigan customers will get temporary plates and paperwork from Arizona after their purchase that they then switch over to Michigan with the Secretary of State.

It is a preferred method of operating, Olson said, because it saves time and money with efficient systems that already exist in Arizona.

“We offer Arizona-based program in 18 states so we know how to do that paperwork well, so we’re happy to do this model,” Olson said. “It’s our baseline.”

Rollow confirmed Michiganders can continue to do business with the Carvana online, but will need to retitle the vehicles they buy to Michigan.

“We continue to protect Michiganders by enforcing the law with car dealerships across the state and revoking the licenses of any dealer that fails to comply with the law,” Rollow said.

Tesla Repair Shop Planned in Burr Ridge, IL

By David Giuliani Patch

Tesla wants to set up a collision repair shop on Shore Drive in Burr Ridge, IL.

Its proposal is undergoing the village’s zoning process.

In its proposal, the company said it aims to fully redesign the 41,000-square foot building at 311 Shore Drive. It is requesting a special use permit.

The repair shop is expected to employ 35 to 45 employees. Tesla projects the shop would see five to 15 appointment customers a day.

Under its zoning process, the village asks applicants whether the proposed use provides an opportunity that is otherwise unavailable in the village.

Tesla responded the world is transitioning to electric cars.

“Electric vehicles present unique repair challenges when they have been involved in a collision,” the firm said. “For this reason, Tesla is proposing a collision repair center on the subject property to provide repair and replacement services for its vehicles in the Western suburbs.”

As part of the settlement, Carvana has also agreed to pay a $10,000 fine to cover the cost of the state’s investigation, the settlement document said and Olson confirmed.

Avoiding a ‘War with Regulators’

The settlement will put an end to Carvana’s lawsuit against the state, Olson said.

On Oct. 13, Carvana filed injunction motions with the Michigan Court of Claims asking for an immediate stop to the state’s suspension. But on Oct. 20, a Michigan Court of Claims judge denied Carvana’s request for a temporary restraining order against the state.

The settlement not only provides both parties with “certainty and clarity,” but it avoids future legal hearings.

“There was a hearing that was supposed to happen saying Carvana was late on some of these titles and we’d say, ‘Yes were late on some’ … so there could be permanent revocation,” Olson said. “We don’t want to be at war with our regulators. This was something both parties could live with and move forward on how to operate in the state.”

To assure customers Carvana will expeditiously process the paperwork on vehicle sales, Olson said the company is putting many safeguards in place, such as new training for newly

hired employees, assigning people to specifically be responsible for processing all sales paperwork and it is doing a “a root cause diagnosis as to why the deals were delayed and to be more stringent of what we require of customers in terms of documents. All of that combined makes the performance better and assures that no deals fall through the cracks and have these delays.”

‘Business as Usual’ in Michigan

Olson said most of Carvana’s customers in Michigan who had any problems getting their titles or other paperwork have had their situations resolved. He noted Michigan customers who bought from Carvana the first week of January, for example, all got their permanent tags and title transferred correctly and completed on time. The week before it was 99.2% and for the last quarter of 2022, Carvana had 98% of the sales were completed in a timely manner, Olson said.

Olson said if a customer still has an issue they can call Carvana at 1-800333-4554.

“It’s business as usual for us in the state of Michigan,” Olson said. “Customers can continue to buy from us and we’re looking forward to serving the state.”

Financing a new or used vehicle is growing more expensive than ever for consumers, according to the car shopping experts at Edmunds. New data from Edmunds reveals:

Interest rates are continuing to rise. The average annual percentage rate (APR) on new financed vehicles climbed to 6.5% in Q4 2022 compared to 5.7% in Q3 2022 and 4.1% in Q4 2021. The APR on used financed vehicles climbed to 10% in Q4 2022 compared to 9% in Q3 2022 and 7.4% in Q4 2021.

A greater share of consumers are committing to monthly payments of $1,000 or more. 15.7% of consumers who financed a new vehicle in Q4 2022 committed to a monthly payment of $1,000 or more—the highest it’s ever been— compared to 10.5% in Q4 2021 and 6.7% in Q4 2020. 5.4% of consumers who financed a used vehicle in Q4 2022 committed to a $1,000+ monthly payment—also a record high—compared to 3.9% in Q4 2021 and 1.5% in Q4 2020. Consumers are putting more money down on their purchases to offset rising costs. The average

down payment for new and used vehicles hit record highs in Q4 2022, climbing to $6,780 and $3,921, respectively.

A growing share of luxury shoppers are turning their backs on leasing and choosing to

--which is the vast majority of car shoppers,” said Ivan Drury, Edmunds’ director of insights. “Although the last quarter of the year typically skews toward luxury vehicle purchases, this near-record percentage of vehicles that are being purchased rather than leased reflect tougher market conditions far more than affluent consumers shelling out a bit more than usual to treat themselves over the holiday season.”

2021 and $5,059 in Q4 2020.

purchase instead. Edmunds data reveals that new-vehicle lease penetration dropped to 16% in Q4 2022, compared to 29% in Q4 2019. Luxury new-vehicle lease penetration dropped to 26% in Q4 2022, compared to 53% in Q4 2019.

“Just as new and used car prices finally started to cool off in Q4, rapidly rising interest rates created an even greater barrier to entry for consumers who rely on financing-

Edmunds analysts caution the combination of costlier vehicle financing and cooling used car values could spell trouble for some consumers down the road if they do not budget or plan accordingly. Edmunds experts conducted a deeper dive into the share of new vehicle sales with a trade-in that had negative equity in Q4 2022, which reveals:

17.4% of new vehicle sales with a trade-in had negative equity in Q4 2022, compared to 14.9% in Q4 2021 and 31.5% in Q4 2020.

The average amount owed on upside-down loans was $5,341 in Q4 2022 compared to $4,141 in Q4

“Vehicle equity is really a tale of two gears for consumers over the past few years,” said Drury. “At the onset of the pandemic, consumers benefited from low interest rates and elevated tradein values, helping shield even the more questionable financing decisions from resulting in negative equity. This unique confluence of market forces resulted in some vehicle owners being able to take advantage of positive equity on their loans and even their leases. But as we shifted toward an environment with diminished used car values and rising interest rates over the past few months, consumers have become less insulated from those riskier loan decisions, and we are only seeing the tip of the negative equity iceberg.”

As a 2023 resolution, consumers may benefit from resolving to more closely monitor their vehicles’ values so they are not shocked to find out later about potential significant negative equity.

Source: Edmunds

Event For Large Collision Repair Businesses Focuses on Labor Shortage, State of Consolidation

by John Yoswick Autobody News

During consultant Vince Romans’ annual presentation on the state of consolidation within the collision repair industry at the MSO Symposium in November, he noted there were currently 19 private equity firms or other investor groups backing 14 multi-shop operations.

Those MSOs have combined annual revenues of about $13 billion. That represents about 34% of the industry’s total revenues of $38.6 billion in 2021, according to Romans’ data.

“That’s not going to stop,” Romans said. “I get calls from private equity firms every week, looking to know about this industry, looking to know where they should invest. And that will continue.”

When the additional MSOs with $10 million or more in annual revenues are added in, multi-shop operators accounted for about 43.6% market share, he said, meaning more than half—about 56%—of total industry revenues are still captured “by individual or smaller operators.”

But that is going to flip in the coming years, Romans predicted. As he does most years at the annual symposium, he shared two five-year forecasts: A “more likely” scenario in which MSOs control 55% of the total collision repair market revenue in 2026, and what he call his “more aggressive” forecast, “based on dynamics that we don’t have a lot of control over,” showing MSOs capturing more than two-thirds (67.7%) of the market.

In either case, he doesn’t foresee any short-term end of business for smaller operators.

“Just like in other industries, it will take a couple more decades to get to scale where the smaller shops no longer exist,” Romans said.

By Romans’ count, there are more than 100 MSOs with annual sales of $20 million or more, and they are certainly most interested in the more than 400 with revenues above $10 million.

“That’s where consolidation will happen, just like in the hardware industry, just the like in the drug industry, which took decades to consolidate,” Romans said. “The collision repair industry will also take decades, but it will happen. So for those who decide to stay in it, you have to decide how you can be successful while deciding whether there’s an exit plan for yourself in the future.”

What’s Driving the Labor Shortage

Another speaker at the MSO Symposium, Andy Challenger, pointed to three key factors creating the current labor shortage in the U.S. Challenger, senior vice president of a Chicago-based firm that companies hire to help their laid-off employees find new positions, said the participation rate—the number of Americans age 16 or older either working or looking for work as a percentage of the population—has been declining over the past 20 years. At 62.3% currently, that’s down from 63.4% just prior to the pandemic, which equates to “about 3 [million] to 4 million people missing from the workforce.”

Because his firm, Challenger, Gray & Christmas, works to find new positions for laid-off workers, Challenger said he has regular data on what people most want from their employer. He said the ranking of employees’ priorities shifts. Last fall, for example, his company’s survey found “flexibility” remains the top priority, but “empathetic leadership” has risen to the No. 2 spot, higher than in the past.

Gerber Collision, said the “E” section of that company’s first ESG report, published earlier this year, outlines how Boyd is mitigating its impact on the environment. Its “Repair First” program, for example, was created “to repair more plastic parts to keep them from entering landfills,” and the company is committed to using waterborne paints in both its existing and newly-acquired shops.

The “social” aspect of ESG encompasses such thing as wages, employee and community engagement, and supply chain relationships. Boyd’s report, for example, highlights its talent development program started in 2018, which has provided a 12- to 18-month training program attributed with developing more than 100 new technicians, with a goal of doubling that number next year.

Challenger said three trends contribute to that. First, more Baby Boomers are retiring, and early retirements accelerated in 2020.

Second, while immigration numbers are back to pre-pandemic numbers, “what we haven’t made up for yet is the decrease we saw in 2020 and 2021, when we saw a real dip during the depths of the pandemic.” There are currently 1.7 million fewer new immigrants in the country than there would have been if the numbers had stayed on the trendline in 2019, he said.

Third, challenges and costs associated with care for children and the elderly have led more households to decide to get by with only one parent working.

The tight labor market could change if there’s a recession, and Challenger said his company’s surveys of employers last fall indicated about one-third say they were currently preparing for a recession.

“It’s not an extremely alarming number, but it’s more than nothing,” he said. “I think almost certainly it will be a cooler job market a year from now.”

“That wasn’t even on the list when we started taking this survey two years ago,” Challenger said. “But this is something that employers are hearing from workers constantly, that they want to feel listened to, they want to feel like people, and they want to feel cared about.”

Discussion about “wage inflation— and increases in the cost of living— have helped bump “higher wage” up from sixth on the list to the No. 3 spot, he said. And “upward career trajectory” remained the fourth highest priority.

“Employees today are saying they really want a path forward in the organization,” Challenger said. “Employers that are able to provide that are going to be rewarded in this strong labor market.”

‘ESG’ Concept Entering the Collision Repair Market

Although most collision repair organizations likely are not familiar with the term “ESG practices,” it’s something they may be increasingly asked about by insurance companies—or from larger MSOs looking at valuing and acquiring new locations.

ESG stands for environmental, social and governance practices. During a panel discussion on the topic at the MSO Symposium, Diane Kappas of PPG said ESG is a term created by the investment community to talk about a corporation’s non-financial impacts, risks and opportunities.

Susie Frausto of The Boyd Group, the Canadian parent company of

Governance, Frausto said, focuses on such things as how a company’s leadership is aligned in providing transparency in its ESG practices.

Eddie Hightower

Collision said one reason more collision repairers may want to focus on ESG is insurance companies’ interest in partnering with companies that do. Three years ago, he said, insurers would ask questions about Caliber’s focus on sustainability, for example, but Hightower said it seemed largely about checking a box.

“The last couple of years, they started to get more intense,” he said. “They’re asking many more questions. ‘Do you really have a program really thinking about this?’ That’s because if you have a well-thought-out sustainability program, you’re thinking about risk. If you’re thinking about risk, you’re a good risk for the insurers. So looking ahead, if you want to have access to insurance markets, you’re really going to have to think about sustainability. It really does have an impact on your bottom line.”

of Caliber

Eddie Hightower of Caliber Collision said insurance companies are increasingly interested in a collision repair business’ focus on sustainability.

“But this is something that employers are hearing from workers constantly, that they want to feel listened to, they want to feel like people, and they want to feel cared about.”

ANDY CHALLENGER SENIOR VICE PRESIDENT, CHALLENGER, GRAY & CHRISTMAS

Outplacing consultant Andy Challenger said the labor shortage is based on there being “about 3 [million] to 4 million people missing from the workforce,” compared to pre-pandemic.

Ohio Gov. Signs Legislation Defining Natural Gas As ‘Green Energy’

By Maria Merano Teslarati

The natural gas industry in Ohio has gained a victory of sorts after Gov. Mike DeWine signed legislation that allows for a broader expansion of drilling for oil and gas in state parks.

The bill, which has been very controversial, also defines natural gas as a source of “green energy.”

A state law from 2011 provided state agencies with authority to lease out state lands for oil and gas exploration and production projects if they choose to. The legislation, House Bill 507, modifies this language. Instead of saying state agencies “may” lease out state lands for oil and gas exploration, the bill signed by the governor says a state agency “shall” accept a lease, provided certain conditions are met.

“Beginning on the effective date of this amendment, and ending on the effective date of the rules adopted under section 155.34 of the Revised Code, a state agency shall lease, in good faith, a formation within a parcel

of land that is owned or controlled by the state agency for the exploration for and development and production of oil or natural gas,” the bill reads.

The bill also says “green energy includes energy generated by using natural gas as a resource.” Unsurprisingly, the legislation was introduced by the Ohio Oil and Gas Association as a means to push the Ohio Oil and Gas Land Management Commission to expedite the approval process of oil and gas drilling on state lands.

House Bill 507 has been very controversial, especially among environmental advocates. “Green energy” refers to energy sources that do not involve the use of fossil fuels, such as solar and wind. Natural gas is a fossil fuel extracted from the earth and composed largely of methane, a potent greenhouse gas. The production, transport and combustion of natural gas can contribute to the release of methane into the atmosphere, contributing to climate change.

DeWine has said the legislation does not “fundamentally change

Ford F-Series Is Best-Selling Truck For 46th Consecutive Year

Ford F-Series will surpass 640,000 trucks in 2022, making it America’s bestselling truck for 46 consecutive years and America’s bestselling vehicle for 41 years after selling an average of at least one F-Series Truck every 49 seconds in 2022.

From F-150 to F-550 chassis cab, entry level XL to well-equipped Limited, EcoBoost to the all-electric F-150 Lightning, lined bumper to bumper, all of the Ford F-Series trucks sold last year would stretch approximately 2,400 miles, or further than the driving distance from Los Angeles to Detroit.

“The Ford truck team’s ability to anticipate customer needs, continuously innovate and provide best-in-class levels of capability and performance has helped make F-Series the sales leader time and time again,” said Kumar Galhotra , president, Ford Blue. “We’re honored and humbled that our customers have helped

us achieve this milestone for more than four decades.”

F-Series celebrates its 75th anniversary in 2023 and continues to set the tone for innovation, leading the industry with the allelectric F-150 Lightning, which began sales in 2022 and immediately became the best-selling EV pickup on the market. Furthermore, the allnew F-Series Super Duty, with ground-breaking capability and features, has racked up an incredible 150,000 orders, further cementing F-Series as the truck of choice for heavy-duty truck buyers. First deliveries start early this year.

With Maverick, Ranger, F-150, Super Duty, all the way up to F-750, Ford offers America’s broadest lineup of trucks to best deliver on the needs of customers and is the only one that is Built Ford Tough.

S ource: Ford

the criteria and processes” established in 2011. The governor also said his administration would not allow for new surface access to state parks, though it is possible that minerals beneath state lands could still be accessed through the surfaces of adjacent properties.

The bill has attracted a number of vocal critics. Neil Waggoner, an advocate with the Sierra Club, said the legislation would expand the drilling in state parks. He also pointed out the release of the bill was posted at very interesting time. “It’s so ridiculous. Nothing says ‘I’m ashamed of this bill’ like sending out the release at 4:48 p.m.,” Waggoner said.

Interim President of the Ohio Environmental Council (OEC) Action Fund Pete Bucher dubbed the legislation an “egregious assault” on state parks. “The bill (also) furthers fossil fuel misinformation campaigns designed to brand natural gas as ‘green energy,’ a nationwide effort to delay climate action and the transition to a truly clean energy future,” Bucher said.

Crash Champions Names Chief HR Officer

Crash Champions on Jan. 9 announced Bill Davidson has joined the senior leadership team as chief human resources officer.

Davidson, a visionary leader with more than 20 years of experience developing talented and engaged teams across multiple industries, joins Crash Champions after serving as senior vice president and chief people officer at Insurance Auto Auctions (IAA). As a senior leader at IAA, Davidson led the organization’s people strategy and played a crucial role in supporting IAA’s overall business plan. He led critical strategic initiatives, including talent, organization and performance management, team member engagement, training, career development, compensation and benefits. He also led the people strategy and change management efforts of IAA’s spin-off to an independent public company.

Davidson earned an MBA from the Krannert School of Management at Purdue University, a master’s certificate in human resources management from Villanova University, and a bachelor’s degree in business administration at Strayer University.

Source: Crash Champions

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U.S. EV Sales Grow by 65% in 2022 Despite Overall Auto Market Decline

By Joey Klender Teslarati

Sales of electric vehicles in the U.S. grew by 65% in 2022, despite a decline in total new vehicle sales for the first time since 2011, new data from Kelley Blue Book showed.

According to Kelley Blue Book, for the first time in just over a decade, Americans bought fewer new cars than the year before. However, EV sales grew year over year by a significant margin.

EV sales topped 800,000 units and will likely continue to rise for years to come. Cox Automotive suggested 2023 will be the first year EV sales will beat 1 million units.

Boosted by government incentives like President Joe Biden’s Inflation Reduction Act (IRA), which intends to push consumers toward EVs, 2023 could be the year of the electric car. Many manufacturers are planning to roll out exciting and competitive models this year.

Despite a slight decrease in

market share from 70% in Q1 to 58.3% in Q4, Tesla still dominates the U.S. EV market. Over the past few years, many companies have come with competitive and more affordable options, but car buyers are still tending to stick with Tesla based on EV tech, charging infrastructure and performance.

Tesla is off to a hot start in 2023. After cutting prices in the U.S. market by as much as $13,000, demand seems to have increased as the company’s inventory is dwindling.

The Model 3 and Model Y were the automaker’s best sellers.

More positive news: the average cost of an electric vehicle fell 5.5% in December to $61,448.

Burglars Break Into Illinois Auto Body Shop Searching For Key Fobs

By Lorraine Swanson Patch

Burglars broke into a Palos Hills, IL, auto body shop on Dec. 30, looking for key fobs and stealing a car that was later recovered, police reports said.

The break-in happened at Caliber Collision, 7727 112th Place, Palos Hills. Police said the burglars left behind extensive damage in an apparent search for keyless entry and starter devices. The business’s security video showed a person leaving the auto body shop and then attempting to steal several vehicles.

According to the report, the burglars managed to steal a Nissan, which officers found wrecked nearby. Police believe the burglars circled back Jan. 4, but by then employees at Caliber Collision had hidden all the key fobs. While no cars were stolen, the burglars reportedly walked off with an envelope containing $400 in cash.

A similar burglary also took place the same morning as the Palos Hills incident in Orland Park.

Police responded to a security alarm around 6:19 a.m. Dec. 30 at Gerber Collision and Glass, 13433 Southwest Highway, Orland Park. The burglars had broken the glass door and appeared to have rummaged through a desk looking for key fobs, Orland Park police said.

Surveillance video showed a group of people running through the garage’s wash bay area. A few entered a BMW and a Hyundai, but no vehicles appeared to have been taken. Orland Park police said the people caught on security cameras appeared to be wearing white gloves.

Early Jan. 5, burglars broke into a North Side car dealership, Chicago police said. Officers responding to an alarm at Leader Auto in the city’s River North neighborhood. The burglars shattered a window and left many key fobs on the ground, news reports said. It is not known if any vehicles were taken.

South suburban police departments have reported an increase in car thefts and car part thefts over the past year.

Auto Body Shops Struggle To Control Access To, Use of Estimate Data

By John Yoswick Autobody News

Denise Koukal, chief information officer for the LaMettry’s Collision chain in Minnesota, said her company, like others, has had a customer upset his vehicle repair generated an entry on a vehicle history report.

“We got a phone call as he was preparing to sell his vehicle at an auction and noticed that this had been reported to a third-party vehicle history report,” Koukal said during a data access and privacy discussion at the Collision Industry Conference

history report,” she said. “This customer was a repeat customer for us. We had done five repairs for him. We have done none since.”

Start of Estimate Enough to Send Out Data

Another panelist, New Mexico shop owner Scott Benavidez, said he has been working since 2016 to track down how some estimate data from his shop has made it to vehicle history reports He shared a flowchart similar to Koukal’s, but the estimate it tracks was not a customer-pay job but one involving an insurance company.

“As repairers know, we get information every day that says, ‘Add this vendor, add this vendor,’ so that they can continually look for the least expensive part,” Benavidez said. “That absolutely opens it up to people that I didn’t even invite….as a vendor, but now are in my platform because of the insurer relationship.”

Koukal agreed, noting insurer and automaker programs can similarly require the use of different customer satisfaction indexing services, “exposing that data to many more places.”

“It’s really hard to say how frequently it happens because we don’t usually hear about it until a customer goes to sell or trade in their vehicle,” Koukal said. “There’s probably been about 10 times that we’ve been called about it, so we

difference,” she said. “But the reality is [the agreements] are more of a punitive thing—only if we find out that something has happened—than something on the front-end that stops the data from going out.”

Koukal said her company falls between Benavidez’s and Caliber in terms of size, and has EULAs with some of its vendors but not others. She agrees with Denison’s view that such agreements have limited value.

(CIC) in November. “I’m sure many of you have had the conversation about ‘Why did you report my repair? Now it’s going to financially impact me with the sale of my vehicle.’ We didn’t report it, but we don’t know who did either. So it’s a very difficult conversation to have with a customer.”

Koukal shared a flowchart tracing everywhere data related to that repair—a customer-pay job—went from the shop, including to three different parts procurements systems that each searched for parts from multiple vendors; thirdparty scheduling and customer service indexing services; OEM repair procedure sources; an aftermarket scan tool system; a materials invoicing system; and an aftermarket clips and fasteners tracking system.

Koukal said other common places the data is sent—though not for this particular repair—include a rental management system, sublet sources and an online estimating program.

There was no way of knowing, Koukal said, how in all that data flow the repair made it to the vehicle history report. She said both her company and the customer asked to have it removed from the report for the vehicle.

“To my knowledge, the accident was never removed from the vehicle

Benavidez said once last year, he had entered about the first 20 lines of an estimate before he got called away to do other things.

“I came back to that estimate about an hour or two later,” he said.

“As I went through my emails, I had received one from Wheels America that said, ‘Hey, we have your wheel’ for that particular vehicle. I hadn’t locked the estimate. I had never done anything with that estimate other than start it. Wheels America is someone I’ve never done business

know it’s happened. But there’s probably a lot we don’t know about.”

Ashley Denison, chief information officer for the Caliber Collision chain, agreed, noting the company’s CEO even came to her about tracking down the issue because the repair of his own daughter’s car made it onto the vehicle’s CARFAX report.

Denison said Caliber has resources to try to address the issue, but she sees the need for an industry solution because if it happens to any shop, “it happens to all of us, it’s a knock on the industry.”

She said listening to what Benavidez as the owner of a single shop has done trying to track the problem down, she was “blown away by how much as an operator he had to know about all this,” when he should be focused on the quality repairs and customer service everyone wants from shops.

“So how do we as an industry begin to flip that,” Denison asked rhetorically.

Putting Things in Writing

Benavidez said he worked with the Automotive Service Association years ago to create an “end-user licensing agreement” (EULA) shops could require vendors to sign related to their use of the shop’s data.

“In order to do anything about them, you have to know where that data was shared and who shared that data,” Koukal said. “You’d also need to take it to a court of law in order to have anything done with it. I don’t think everyone is in a position to do that, nor do they want to do that. So I don’t know how much value [the EULAs] have.”

The panel was asked if some sort of government regulation, similar to those designed to protect patient information in the medical field, was the answer. Denison said that certainly would create compliance,

with. They were put in there by the insurance company. And I had no idea it was going to them.”

The panelists all agreed it’s difficult to know how often a shop’s data related to a repair somehow makes its way onto a vehicle history report.

“But I have yet to get one company to sign that,” Benavidez said. “I think the reason for that is even they don’t always know where [the data] is going. I’ve brought it up numerous times, but I’ve had zero response in getting anybody to sign that EULA.”

Denison said Caliber does have EULAs in place with its vendors.

“I think this is where size and scale makes a little bit of a

“But I absolutely believe that as an industry we can solve the problem without the government getting involved.”

In the meantime, Koukal and Denison each said their companies added verbiage to their repair authorization indicating the customer allows the shop to access and share vehicle data with third-parties as relevant to the repair of the vehicle.

“My concern is: Do they read it and understand what that actually means,” Denison said, acknowledging that if she knew little about the industry and was getting her car repaired, she would just check the boxes as necessary and sign the form.

Benavidez said his similar concern led him to create a second authorization related to the use of their vehicle data from scans.

“It’s really helped us with the consumer to gain their trust,” Benavidez said.

Denise Koukal, chief information officer for LaMettry’s Collision, said they recently lost a repeat customer after estimate data somehow made its way to a vehicle history report

Ashley Denison, chief information officer for Caliber Collision, said the company has agreements in place with its vendors related to use of estimate data

Credit: Shutterstock

“It’s really hard to say how frequently it happens because we don’t usually hear about it until a customer goes to sell or trade in their vehicle.”

DENISE KOUKAL CHIEF INFORMATION OFFICER, LAMETTRY’S COLLISION

Ohio Looking At Options To Replace Gas Tax

By J.D. Davidson The Center Square

Calling the gas tax an unsustainable way to fund transportation infrastructure, the Ohio Department of Transportation is studying its options.

He also said changes to driving habits and vehicles in general are expecting to lower the total dollars the state collects from the gas tax.

Holidays Bring Gift of Falling Gas Prices

By Andrew Gross AAA

to shorter days and more lousy weather.

Using a $4 million federal grant, Ohio developed a website to seek public opinion on potential funding options. Those results will eventually be forwarded to the General Assembly later this year, according to a promotional video produced by ODOT.

In the video, ODOT’s David Rose said the agency takes care of more than 43,000 miles of laned roadway and more than 14,000 bridges. It has a total of $116 billion in assets.

“While the motor fuel tax has worked for decades, vehicles are more efficient, get better gas mileage and an increasing amount of vehicles don’t even require any gas at all. While this is great at reducing harmful emissions, it means fewer dollars available for roadway improvements,” Rose said in the video. ODOT recently launched a website and is encouraging Ohioans to offer their thoughts on replacing the gas tax. Ohioroadfunding.com also offers several options being considered, such as raising the gas tax, increasing vehicle registration fees and creating a mileage-based user fee that would charge people based on the number of miles they drive instead of the amount of gas they use.

It asks users to take a survey to offer their opinion to the agency, and the plan is to gather the information and send a report to the General Assembly later in the year.

PepsiCo To Deploy 100 Tesla Semis in 2023

By Johnna Crider Teslarati

PepsiCo is planning to deploy 100 Tesla Semis in 2023 that it purchased in 2017, and will begin delivering products to customers such as Walmart and Kroger, PepsiCo Vice President Mike O’Connell said on Dec. 16.

In an interview with Reuters, O’Connell added the company was buying the large allelectric trucks “outright” and is upgrading its plants. He said this includes the installation of four 750-kilowatt Tesla charging stalls at its Modesto and Sacramento locations in California.

“It’s a great starting point to electrify,” he said. “Like any early technology, the incentives help us build out the program.”

He said there were several development and infrastructure costs. Although the company didn’t share details on the price of the trucks when asked, O’Connell said it was a good investment.

“We keep the trucks for a million miles, seven years. The operating costs over time will pay

back,” he said.

PepsiCo plans to begin rolling out the Tesla Semis in the central U.S. and then the East Coast. O’Connell also said Tesla didn’t help pay for the megachargers for the vehicles, but it provided design and engineering services for the facilities.

The megachargers are equipped with solar and battery storage systems. O’Connell said it will take 35 to 45 minutes to recharge a Tesla Semi after a 425-mile trip carrying Frito-Lay products, which should bring the battery down to around 20%.

Holiday shoppers may have a little more jingle in their pockets this year thanks to plummeting gas prices.

The national average pump price slid 12 cents over the previous week to $3.14 as of Dec. 19. There are now about 20 states with averages below $3 per gallon.

“The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last Spring,” said Andrew Gross, AAA spokesperson. “Combined with low seasonal demand, gas prices could slide a bit more before leveling off.”

According to data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.36 to 8.26 million b/d the same week. This coincides with the arrival of the winter driving season, when fewer people hit the roads due

Meanwhile, total domestic gasoline stocks rose significantly by 4.5 million bbl to 223.6 million bbl. Increasing supply and lower gasoline demand are pushing pump prices lower.

The Dec. 19 national average of $3.14 is 54 cents less than a month ago and 16 cents less than a year ago.

The nation’s top 10 largest weekly decreases: Nevada (-20 cents), Indiana (-19 cents), Michigan (-17 cents), Arizona (-17 cents), Ohio (-16 cents), Washington (-16 cents), Delaware (-16 cents), Illinois (-15 cents), California (-15 cents) and Oregon (-15 cents).

The nation’s top 10 least expensive markets: Texas ($2.62), Oklahoma ($2.64), Arkansas ($2.69), Missouri ($2.71), Mississippi ($2.74), Tennessee ($2.75), Wisconsin ($2.75), Louisiana ($2.76), Georgia ($2.77) and Kansas ($2.78).

Source: AAA

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Auto Care Alliance Partners With Elite

Auto Care Alliance has partnered with Elite to offer online sales training for service advisors. Elite is offering a benefits package valued at more than $300 to ACA member shops who are new to the program.

Each ACA member that signs on with Elite’s Sales Master University will receive a full year of access to 16 lessons taught by Ratchet & Wrench All-Star Award winner Jen Monclus, including quizzes and activities to improve retention and accountability, and quality content developed by America’s top shop owners and service advisors with real-world applications that can be implemented immediately, ensuring consistent and profitable sales cycles.

Elite and Hamilton will host a 30-minute webinar on this benefit to member shops at 1 p.m. CT Jan. 24.

More information on the program and upcoming webinar can be found at autocarealliance. org/elite

Source: Auto Care Alliance

Auto Manufacturer Websites Becoming More Important To Vehicle Shoppers

As auto manufacturer websites become increasingly important to shoppers, overall satisfaction for manufacturer websites is also growing, up 11 points on a 1,000-point scale for the premium segment to 722 and 3 points for the mass market segment to 708, according to the J.D. Power 2023 U.S. Manufacturer Website Evaluation Study—Winter, released Jan. 9.

When shoppers use certain tools, specifically the build and price, vehicle compare, 360° viewer and payment/lease calculator, the likelihood of the shopper to consider the brand increases by 11 percentage points.

“In today’s shopping environment, manufacturer websites must have a robust set of tools for shoppers to use,” said  Jon Sundberg, director of digital solutions at J.D. Power.

“Not only is it important to have the tools, they also need to be easily discoverable, well-designed and intuitive to use to significantly

AASP-MN’s Automotive Scholarships Up For Grabs

The Alliance of Automotive Service Providers of Minnesota (AASPMN) will be awarding scholarships to select students enrolled in postsecondary auto service or collision repair programs.

Scholarship awards will $500 to $1,500 per student and can be applied towards tuition or tool purchases. To be eligible, applicants must be enrolled in a Minnesota-based ASE-accredited automotive program in the fall of 2023. Applications will be reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations.

Applications must be submitted electronically or postmarked no later than March 31. Applications can be downloaded from the Alliance’s website, aaspmn.org/ scholarships, or submitted online at automotivescholarships.com/ scholarships/alliance.

Online submissions give students the opportunity to compete for several different awards, including those offered by

the University of the Aftermarket Foundation Scholarship Committee and more than 40 other automotive aftermarket organizations and companies. Specific requirements for each organization’s awards can be found at www. automotivescholarships.com. The Education Fund was established in 2002 to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry. Since that time, nearly $310,000 has been invested in student scholarships, SkillsUSA and automotive education programs throughout the state.

In 2016, AASP-MN’s efforts to attract a future workforce expanded significantly with the creation of Minnesota Careers in Automotive Repair and Service (MNCARS), a statewide marketing and outreach initiative to encourage high school students to pursue an education and career in the automotive service and collision repair industry. Visit www.carcareers.org to learn more.

Source: AASP-MN

drive brand consideration.”

The J.D. Power U.S. Manufacturer Website Evaluation Study is a semiannual study that measures customer satisfaction of automotive manufacturer

premium manufacturer websites with a score of 749. BMW (742) ranks second and Infiniti (740) ranks third.

Jeep ranks highest among mass market manufacturer websites with a score of 727. Dodge (725) and Nissan (725) rank second in a tie. GMC (719) and Mazda (719) rank fourth in a tie.

websites during the process of shopping for a new vehicle by examining four key measures, in order of importance: information/ content, visual appeal, navigation and speed.

Study Rankings

Land Rover ranks highest among

The U.S. Manufacturer Website Evaluation Study, initially released in 1999, is based on responses from 10,487 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded in October-November 2022.

For more information about the U.S. Manufacturer Website Evaluation Study, visit www. jdpower.com/business/resource/ us-manufacturer-websiteevaluation-study

Source: J.D. Power

Credit: Shutterstock

Marketing Expert Sees a Future Without DRPs

By Ed Attanasio Autobody News

Direct Repair Programs (DRPs) were designed in 1963 for an era where all cars were pretty much built and repaired the same way. Lower rates meant the insurance companies would be satisfied, and everyone thought it was a good idea for a while.

Industry veterans say things changed when insurance companies began cutting costs by sacrificing quality. Many body shops were willing to jump through a few hoops to get the volume. When it became more competitive, shops were willing to use more aftermarket, used and reconditioned parts, and became more willing to negotiate on every repair.

Thomas Zoebelein, owner of Stratosphere Studio, recently discussed the future of DRPs in the collision repair industry. He said some compelling things that should interest any body shop owner in the country.

Initially, DRPs worked well because shops that wanted them had to step up their games.

“The DRP forced, or allowed, shops and insurers to focus not

on customer acquisition but production,” Zoebelein said. “Every shop tool, business method, marketing tactic and class was centered on production and how to make body shops more efficient.”

That road reached a dead end when vehicle construction moved from mild steel to ultra-high-strength steel a decade ago.

body shops out there scared to work without DRPs.

“The fear of dumping your DRPs is that if you jump out of a plane every day without your DRP golden parachute, you will crash and die,” Zoebelein said. “The work will dry up, and you will be out of business. The pandemic proved everyone wrong because the cars stopped coming for a while, but the non-DRP shops stayed open.”

Stratosphere Studio has developed a marketing plan, Capture the Keys’ “Dump the DRP” program, and forward-thinking shops are embracing it.

Zoebelein is not promising he can help collision repairers replace the volume of a DRP contract.

“That’s when the repair process changed, and OEM procedures became more and more necessary,” he said. “Now the big dilemma for shops is how to get off the DRPs and get paid more.”

The problem is there are a lot of

“So how do you dump a DRP and replace it with a system to get your shop in the hands of customers who need collision repair and keep cars coming into the shop?” Zoebelein said. “What’s the most efficient way to reach a person who you know has a collision repair need, where they are buying, when they are buying

but just before they make a final decision?

“Geofencing allows you to get in front of that customer, when they are shopping for collision repair, even if it’s at just one location,” he said. “We don’t care how they got there—DRP referral, family referral, convenient location, marketing, etc. We just need them to be there, and then geofencing will find them, collect their data and offer them a second opinion.

“I believe that the future of collision repair is fewer cars, more money, more profit,” Zoebelein said. “It’s a fact that vehicles will be getting into fewer accidents. The same ADAS systems that shops are currently repairing will be in more and more cars, so shops need to start rethinking tomorrow’s volume.

“Autobrake will reduce crashes. And every new vehicle sold now has it, and soon it’s going to be federally mandated,” he said. “The times have changed, and it’s time for shops to reconsider where the industry is right now. On top of everything, these issues with labor rates, supply chain issues and technician shortages is the proverbial straw that is breaking the camel’s back.”

Tom Zoebelein thinks DRPs will be extinct faster than many people believe

Thieves Target Ram 1500 Truck Plant

in Detroit Again, Police Capture 7 Suspects

By Michael Gauthier CarScoops

Factory thefts continue to be a problem in Metro Detroit as a group of thieves again targeted Sterling Heights Assembly early Jan. 17.

The plant builds the popular Ram 1500. Fox 2 reported the thieves attempted to steal approximately 10 trucks. However, things didn’t go according to plan.

Citing police, The Detroit News reported “multiple suspects” gained access to the plant’s parking lot around 4:45 a.m. They were apparently spotted, as officers from Sterling Heights and several nearby communities responded and went to work securing the facility.

This caused the suspects to flee and they reportedly made “several unsuccessful attempts to elude police.” In particular, one person allegedly rammed an exit gate and hit a patrol vehicle. However, reports

suggest no officers were injured.

That’s good news and police were able to arrest seven suspected thieves. Sterling Heights Police Lt. Mario Bastianelli told The Detroit News they’re not sure if anyone managed to get away, but no vehicles were stolen from the parking lot this time around.

Hopefully those arrested will lead authorities to the people behind a rash of factory thefts in the Detroit area. As previously reported, four trucks—including a Ram 1500 TRX—were stolen from Sterling Heights Assembly in March 2022. The month before, a Jeep Grand Cherokee Trackhawk and Dodge Challenger Hellcat were taken from the Jefferson North Assembly Plant in Detroit.

More recently, in the fall of last year, around a dozen Mustangs were stolen from Flat Rock Assembly. Two Jeep Wagoneers were also taken from the Warren Truck plant.

2022 U.S. Car Rental Revenue of $36.1B Shatters Records

By Auto Rental News Staff

Despite continuing challenges around vehicle supply, staffing shortages, demand shifts and the cloud of a recession, the

Meanwhile, the estimated number of new vehicles sold into rental fleets in 2022 represents less than half the total number of vehicles sold in 2019. However, rental companies are holding their cars in fleets longer to compensate.

The high-pricing, tight fleet environment drove another new record for revenue per unit per month (RPU) of $1,424.

U.S. car rental industry earned an estimated $36.1 billion in revenue for 2022, based on data collected by Bobit.

That yearly total represents a 24.7% growth over 2019’s record year and is likely the highest yearover-year gain in industry history.

“This year’s results are a testimony to the agility of the industry to change with the rapid fluctuations of market conditions and supply and demand,” said Chris Brown, executive editor of Auto Rental News.

“I never would’ve guessed the industry would’ve rebounded this quickly exiting the pandemic to reach record revenues. That said, the environment isn’t one to relax in, as those same pressures will ease only slightly in 2023.”

Credit: Shutterstock

Jaguar Land Rover Joins I-CAR Program

I-CAR on Dec. 15 announced Jaguar Land Rover has joined I-CAR’s Sustaining Partner Program, designed to fund the various initiatives that drive I-CAR’s vision that every person in the collision repair industry has the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer.

The move builds upon Jaguar Land Rover’s longstanding training partnership with I-CAR, which provides customized training programs to Jaguar Land Rover’s Authorized Repair Network facilities throughout North America.

Since the program’s founding in 2017, I-CAR Sustaining Partners has helped fund I-CAR curriculum and student fees in career and technical schools, which have become I-CAR fixed training sites; that funding exceeds $3 million. Sustaining Partners has also funded all Industry Training Alliance training credit fees for individuals who train with curriculum from approved Industry Training Alliance partners.

Source: I-CAR

Ford Super Duty Lawsuit Alleges Roofs Crush in

By David A. Wood CarComplaints.com

A Ford Super Duty truck roof lawsuit alleges occupants are injured and killed in rollover crashes because the truck roofs are weak and dangerous.

The class action lawsuit includes 1999-2016 Ford F-250, F-350, F-450 and F-550 Super Duty trucks that allegedly have roofs that cannot handle the weight of the trucks in rollover incidents.

Even if the crash impact leaves truck occupants unscathed, the roofs allegedly collapse onto the occupants as the trucks roll over.

Ford truck roof-crush class action lawsuits began being filed following a Georgia court case where the jury awarded $1.7 billion to the family of two 2002 Ford F-250 Super Duty truck occupants.

The crash was allegedly caused by a Pep Boys service shop that installed the wrong size tire on the Ford F-250, which caused the tire to blow out. The truck rolled, which caused the roof to collapse.

The class action alleges the Ford Super Duty trucks are built

Winter Driving Conditions in Illinois’ Near Future

By Kevin Bessler The Center Square

With a threat of winter weather in Illinois, insurance officials are reminding Illinoisans about winter driving conditions and to be prepared.

According to the Federal Highway Administration, more than 70% of the nation’s roads are in regions that average more than 5 inches of snow a year, and nearly a quarter of weatherrelated vehicle crashes occur on snowy or icy pavement annually.

In February, more than 100 cars were involved in multiple crashes during a winter storm which shut down an interstate north of Bloomington-Normal.

Bob Passmore, vice president, personal lines at American Property Casualty Insurance Association, said early in the season, motorists sometimes forget how to drive in snowy conditions.

“When the first snow comes, you invariably see people who

Rollover Crashes

around steel frames which should maintain the form and structure of the trucks to keep occupants safe.

But the plaintiffs assert the Super Duty steel frames aren’t strong enough to support the weight of the trucks, which causes the roofs to collapse onto occupants in rollover crashes.

“The Roof Defect has caused serious injury, paralysis and death to vehicle drivers and occupants. Ford has repeatedly been found liable for injuries and deaths resulting from the Roof Defect in the over 160 wrongful death and personal injury lawsuits that have been filed against it regarding the Defect,” according to the lawsuit.

The lawsuit further alleges that with more than 5 million Super Duty trucks equipped with defective weak roofs, Ford has allegedly admitted more than “80 incidents of roof crush resulting from the Defect.”

According to the plaintiffs, the allegedly weak defective roofs also affect safety features such as the Safety Canopy System, which is advertised as a way to increase safety in rollover crashes.

Those plaintiffs also claim

their 1999-2016 Ford Super Duty trucks have lost their resale values because of the roofs.

According to the Super Duty roof class action lawsuit, “Ford must buy back these dangerous Vehicles or reimburse Plaintiffs and Vehicle Owners and Lessees for the serious risk inherent in continuing to drive them.”

The Ford Super Duty truck roof lawsuit was filed by these plaintiffs: Curtis Bright, Washington, 2000 Ford Super Duty Extended Cab

William P. Griffitt, Oklahoma, 2000 Ford F-250 Lariat Super Duty Desmond Rains, Oregon, 1999 Ford F-350 Super Duty

Ivan Tellez, California, 2016 Ford F-350 Super Duty

Kevin Thomas, Kentucky, 2002 Ford F-250 Super Duty

The Ford Super Duty roof class action lawsuit was filed in the U.S. District Court for the Northern District of California (San Francisco Division): Bright, et al., v. Ford Motor Company.

The plaintiffs are represented by Keller Rohrback L.L.P.

have probably lived in Illinois their whole lives and yes, they forget because it hasn’t been around for a while,” said Passmore. “That is one of the many reasons we decide to remind folks to be careful out there when those flakes start to fly.”

The Illinois Department of Transportation expects to have 1,700 snow plows ready to keep the nearly 16,000 miles of Illinois roads clear once the snow starts to fall.

Passmore said it is a good idea to prepare in case you get into an accident.

“Your insurer or insurance agent can help you minimize problems in finding a reputable auto body repair facility and assist you every step of the way following an accident,” said Passmore. “Before turning your vehicle over to a tow truck or body shop, make sure you have spoken with your insurer or insurance agent.”

Severe weather events last winter caused more than $1 billion in insured losses.

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Auto Painter Invents Linear Blocking Tools While Looking For a Better Paint Job

By Ed Attanasio Autobody News

Autobody News runs into great stories like this one all the time, in which collision repairers invent things to do a better job.

Colten Davidson, a painter and now the owner of his own restoration shop in Birnamwood, WI, created Linear Blocking Tools, a sanding block system that can create a perfectly flat surface easily and consistently. His system is also designed to alleviate the wear and tear on the human body caused by hours of sanding.

Q: How did you get the idea for Linear Blocking Tools?

A: One day a few years ago, I was trying to get the clear to be literally like a mirror where there’s no ripple, no chop—nothing in it. And we were using a lot of foam blocks and different other types of blocks. Then I came up with a rough draft and made them.

I used them for a while and then I had a couple other people who said they wanted them. Then a distributor in Australia saw these on Facebook, and asked me how much would it cost for 10,000. I couldn’t even make that many, I thought. So, I got the ball rolling a little bit more and have applied for patents, and now we have a manufacturer in Minneapolis that makes them for us.

In September, we moved into a new building that contains two shops—one shop is like the clean shop; we’ve got the hoist and the paint booth on that side. And then we’ve got a dirty side that’s basically for sanding and welding. We’ve got everything under one roof. I am running the shop and my wife is running the product side, and it is working well.

I have two people working with me in the shop and my wife Brittany has some part-time help.

Q: How did you get where you are today?

A: Right out of high school, I went to tech school for auto body, where I completed a oneyear program. And then from there I started working at a Ford dealership doing mostly collision and some light restoration stuff. I worked there for about five years and then I worked for a shop that did both restoration, collision and some dealer work. We did a little bit everything and it was a great learning experience.

Then I had a great opportunity to work for a top shop here in Wisconsin, where I could work on high-end restorations. And that’s where I really progressed into knowing what I know now by pushing the envelope. I was the body guy and the painter there and I did probably 90% of the body work and all the painting, and then early last year I started my own

Q:You have created a whole universe around your tools, with online courses and an upcoming series of in-person classes. Tell us about those.

A:Yes, on June 22-25, I am hosting a four-day hands-on restoration class with Ryan Evans and world-renowned paint correction specialist Jason Kilmer. It will take attendees through everything from stripping old finishes, metal work, filler work, all the paint and cut/buff. We will be “restoring” a few different front clips from Auto Metal Direct, taking you through all the fine details, like perfecting gaps and panel-to-panel along the way.

Day one will cover stripping old finishes, metal work, perfecting gaps, prepping metal work for panel-topanel blocking, proper metal prep using the DX metal prep system, applying epoxy to bare steel and types of DTM primers. Day two will cover prepping epoxy for filler work, proper understanding of use

and types of body fillers, panel-topanel blocking, blocking techniques, proper application and types of primers over filler work and priming over filler work. Day three will cover proper blocking techniques of primer, paint prep, masking, painting, laying stripes, spraying candies and

hand really well. More importantly, they are hard but flexible and very flat. They’re made of polycarbonate, which is very flexible and extremely durable. You can drop them or even throw them at the wall and they won’t break. There are a few companies out there that make acrylic blocks, and if you drop them, they’ll shatter like glass. Our blocks are warrantied for life, much stronger and more flexible.

custom tri coats. Finally, day four will cover sanding and polishing finishes, curing clear before buffing, sanding techniques, buffing techniques and processes, with Kilmer. These classes will be held at Linear World Headquarters in Birnamwood, WI.

Q:Why are your Linear Blocking Tools so popular with painters worldwide?

A:One of the major benefits of using them is that they fit your

Linear blocks have slits in them that distribute the pressure from your hand to the entire block evenly. They create something like a slinky effect. In addition, all our blocks don’t have sharp edges. They cost a little more because there’s a lot of machine time going into them, but you get what you pay for, like anything else.

We did over $1 million in sales in our first year, which was pretty good. We have a distributor in the U.S. and Australia, and are currently working with a few in Sweden, Germany and from other parts of Europe. We have been getting awesome feedback from painters all over the world, so we are excited about more international distribution.

For more information, visit linearblockingtools.com.

Colten Davidson invented Liner Blocking Tools to make his job easier every day, and now they’re a hit

“One of the major benefits of using them is that they fit your hand really well. More importantly, they are hard but flexible and very flat.”

COLTEN DAVIDSON CREATOR OF LINEAR BLOCKING TOOLS

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Auto Insurance Rates Will Rise Across the U.S. in 2023

Car insurance rates are expected to increase by 8.4% across the U.S. in 2023, amid the increase in drivers returning to the road. That’s the biggest jump in car insurance costs in the past six years. The average cost of full coverage car insurance across the U.S. is $1,780 per year.

ValuePenguin used the Quadrant Information Services database to analyze millions of quotes for drivers across the U.S. It also analyzed car insurance rate changes filed by top companies across the country to show the current and historical landscape of the auto insurance industry.

Auto Insurance Cost by State

The average cost of full coverage car insurance for 2023 is $1,780 per year. Auto insurance rates in Michigan average $4,788 a year, the highest in the U.S. and 168% higher than the national average, largely due to the state having the highest minimum insurance requirements.

Florida ($2,856 per year—60% higher than the national average) and Rhode Island ($2,748—53% higher) are the second and third most expensive states for car insurance, thanks to high population density and traffic congestion.

For cheap car insurance, drivers in Vermont ($1,104), Maine ($1,116) and Idaho ($1,188) typically have the most affordable rates across the U.S. Auto insurance in these states is 36% cheaper, on average, than the national average.

Average Car Insurance Rate Changes by State

Drivers are likely to pay substantially more for car insurance in 2023. The average annual rate increase across the U.S. is 8.4%—up from 1.3% in 2022.

Every state is expected to see a rate increase of at least 1% this year except California, D.C., Hawaii, Vermont and Wyoming.

The biggest year-over-year rate increases are in Illinois (17.1%), Arizona (15.6%), Georgia (13.8%) and New Hampshire (13.6%).

The average cost of car insurance has increased 16.5% overall since 2017.

North Carolina has the largest average increase (115%) in full coverage auto insurance rates for drivers with a ticket, accident or DUI on their driving record.

Nebraska auto insurance companies tend to be the most forgiving to drivers with an imperfect driving record, where rates only increase by 35% on average.

A DUI will have the biggest impact on rates, with an average increase of 84% nationwide.

Cost of Car Insurance for Most Popular New Cars

The cheapest new cars to insure tend to be crossover SUVs and sedans, while pickups and larger SUVs cost more to insure. Smaller sedans and

higher amounts for claims across the board.

Severe storms and hurricanes cause a rise in car insurance claims from cars that are flooded, damaged or destroyed. As the U.S. faces more extreme weather over time, car insurance rates will increase to match a higher risk of damage, especially in coastal areas.

The popularity of electric vehicles will only increase as technology improves. However, EVs cost around 28% more to insure than a new gasoline-powered car. Look for vehicle-specific insurance discounts, like electric car and safety feature discounts.

How Drivers Can Save Money in 2023

Switching from full to minimum coverage is a great way to save a significant amount on car insurance premiums if the owners doesn’t have a car loan or an expensive car. Full coverage is 157% more expensive than liability-only coverage. Removing optional coverages like roadside assistance can bring down the bill, too.

Insurance companies in most states evaluate credit as a factor for insurance rates. The difference between a good and poor credit score can change premiums by 80%, as people with poor credit may be more likely to file car insurance claims.

Traffic Violations Increase Car Insurance

Drivers with a traffic violation or accident could see an average car insurance rate increase of 52% in 2023.

midsize SUVs like the CR-V and RAV4 are typically cheaper to repair or replace than larger cars, so they’re typically cheaper to insure.

Electric cars are growing in popularity. The Mini Cooper Electric is one of the cheapest EVs to insure, while Teslas are some of the most expensive. The Porsche Taycan is one of the most expensive cars to insure, as it’s both a sports car and an EV.

2023 Car Insurance Trends

Car insurance companies have begun raising rates for 2023 due to an increase in car repair costs and claims. Many drivers can expect to see a higher car insurance bill this year.

increased as more people resume regular travel or return to their daily commute. More people driving means a higher risk of getting in a crash, which means higher car insurance rates.

Cars are becoming more expensive to repair, in part because replacement parts are becoming difficult to find due to supply shortages or more expensive due to inflation. The lack of availability for used and new cars has also increased the typical market value for many cars, which means insurance companies are paying out

The most important part of searching for car insurance is comparing quotes from several companies. Quotes can vary by hundreds of dollars across companies, even for the same driver. Insurance companies offer many discounts to help lower rates. In the wake of increased remote work, many companies offer discounts or lower rates for driving less. Pay-permile car insurance can reduce rates even more for low-mileage drivers.

ValuePenguin has a mission to empower people with information and resources to help them make smarter financial decisions. Car insurance can be a difficult and timeconsuming topic to understand. This report attempts to unmask some of the critical issues.

In crafting the analysis, ValuePenguin reviewed more than 3.6 million quotes for different drivers, adjusting for various factors that affect auto insurance premiums. It gathered rates from 37 top insurance companies across the country since rates can vary widely by company.

Source: ValuePenguin

Ram 1500 Revolution EV Concept Unveiled At CES 2023

The Ram Truck brand introduced a visionary road map Jan. 5 at CES 2023 with its Ram 1500 Revolution Battery-electric Vehicle (BEV) Concept, which provides a glimpse into the future and demonstrates how the industry’s leading truck brand will once again redefine the pickup truck segment.

The leading-edge Ram 1500 Revolution BEV Concept showcased a truckload of innovative features that will be seen in future Ram trucks and in particular on Ram’s electrification journey.

Ram will differentiate itself by offering a portfolio of fully electrified solutions to better meet customer needs, including a segment-redefining Ram 1500 BEV in 2024. The entire Ram lineup will offer electrified solutions with leading-edge advanced technology in the years to come. The Ram 1500 Revolution BEV Concept establishes how Ram will push past competitors’ future EV offerings.

“The Ram 1500 Revolution

BEV Concept is our clearest signal yet that we’re on the precipice of something extraordinary at Ram and points directly to where we’re going on our electrified journey,” said Mike Koval Jr., Ram brand

ASE Announces New Officers

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Audi Exchange

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847.432.5708 Fax

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CEO-Stellantis. “At Ram, we’ve redefined what pickup trucks can be, and we will do so again by pushing past what competitors are offering by delivering the best electric pickups on the market.”

The Ram 1500 Revolution BEV Concept is part of Ram’s significant contribution to Stellantis’ Dare Forward 2030 strategic plan to lead the way the world moves by delivering innovative, clean, safe and affordable mobility solutions.

“The Ram Revolution

represents several important things to the Ram brand,” Koval added. “Of course, it’s our new Ram 1500 Revolution BEV Concept that serves as a roadmap to our electrified future. Yet Ram Revolution is also our philosophy as we redefine the pickup segment, with a steady drumbeat of announcements and initiatives as we embark on our electrified journey.”

Ram will once again redefine the pickup truck segment with its revolutionary Ram 1500 BEV production model in 2024. It will be the leader in a combination of areas customers care about the most: range, towing, payload and charge time. More news on the production version will be available in the coming months.

Source: Ram

The National Institute for Automotive Service Excellence (ASE) announced its officers for its 2023 Board of Directors. The officers were elected during the annual ASE board meeting held in Arizona.

The officers are Chair Homer Hogg, vice president of truck service, TravelCenters of America; Vice Chair Tom Trisdale, vice president of quality, Toyota; Treasurer Jason Rainey, vice president of NAPA AutoCare; Secretary John Wolf, president of Snap-on Business Solutions; and Past Chair Brad Pellman, president of Pellman’s Automotive.

“Volunteer leadership is instrumental in helping ASE set an agenda and fulfill the established mission each year,” said Tim Zilke, ASE president and CEO.

ASE also elected three new governors to its board of governors: Stacy Balzar, Ford; Elisha Huddleston, GM; and Gary Uyematsu, BMW.

Source: ASE

www.autobodynews.com

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F-150 Lightning Wins 2023 North American Truck of the Year

The Ford F-150 Lightning is charging into the new year as the North American Truck of the Year™.

This is the latest award in the electric truck’s trophy case and marks the third straight NACTOY Truck of the Year award for Ford. It’s also the fifth NACTOY award for Ford in the past three years.

“Earning North America’s Truck of the Year is huge for the team that has been working so hard to build and deliver as many Lightnings as possible, as quickly as possible,” said Jim Farley, Ford president and CEO. “We’re moving fast to further ramp production to a 150,000 run rate this fall and pushing to improve every aspect of this truck. We’ve started delivering Lightnings from the factory with a fantastic new user interface update to improve the driver experience that we’ll also roll out to all of our Lightning owners over-the-air.”

The F-150 Lightning is the bestselling electric truck in the U.S.

in the U.S. in 2022.

“When America’s best-selling vehicle goes electric you know the transition has momentum,” said Karl Brauer, NACTOY juror and freelance journalist for Forbes. “Ford’s effort to create an all-electric F-150 is remarkable because it combines the standard truck’s dimensions, which means it retains massive aftermarket support, with substantial upgrades to areas like storage and mobile power support. It’s really the best of all worlds, giving the F-150 Lightning a wide range of applications for both traditional and new-to-the-segment truck

new or substantially changed for the year. The jury of 50 professional automotive journalists from across North America choose a winner based on innovation, design, safety, performance, technology, user experience, driver satisfaction and value.

North American Truck of the Year is the latest award in the F-150 Lightning trophy case. Others include Motor Trend Truck of the Year, The Car Connection Best Car to Buy, Edmunds Top Rated, Detroit Free Press Truck of the Year, Green Car Reports Best Car to Buy, TIME Top 200 Invention of 2022, 2023 Kelley Blue Book Best Buy Award, 2022 Altair Enlighten Award, Sobre Ruedas 2022 Awards, Wards 10 Best Engines & Propulsion Systems, Internet Brands Best Car to Buy, Victory & Reseda Vehicle of the Year, TopGear.com 2022 American Car of the Year, Autoblog Technology of the Year 2022, Motor1 Star Awards, CarBuzz Save the Planet award and multiple Sabre awards.

Source: Ford

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AsTech’s Rules Engine Now Available

asTech, a Repairify company, on Jan. 11 announced the full deployment of its patented Rules Engine, which presents users with the most accurate and cost-effective diagnostic scan type for the vehicle throughout the blue printing process and repair workflow.

The new feature gives asTech customers access to the most accurate way to identify the diagnostic and calibration scan tools that read all of a car’s OEM modules correctly—versus those that don’t— down to the year, make, model and trim. With the Rules Engine enabled, asTech users, insurance carriers and their customers can be confident with the accuracy and cost of the recommended scan type.

To build the Rules Engine, Repairify’s research and development team scanned tens of thousands of vehicles from different years, makes, models and trim levels with the leading aftermarket tools available, then compared the results to the relevant OEM tool. Researchers used like-for-like tools on the same cars at the same time to ensure accuracy.

Source: AsTech

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5 Things Companies Must Do To Stay Engaged With Customers

By Ed Attanasio

They used to call it customer engagement, but now they should call it customer entanglement, because companies are more involved in their customers’ lives than ever.

Today, marketers are staying engaged indefinitely and as seamlessly as possible to keep their customers in the loop. Through social media, direct mail, online advertising, public relations, mobile apps and other channels, companies establish and maintain lifelong relationships with their customers and reap big rewards.

To keep the relationship going strong, businesses of all sizes need to think differently or be left behind. Here are five deliverables that must always be in the mind of any business that wants to attract customers.

Credit: Shutterstock

Let’s Listen More Closely

Developing effective tools to promote customer engagement is no longer simply a one-time thing, or something a company does quarterly or even monthly. Now you have to be in your customers’ minds all the time.

Let’s Devise a Plan

Simply periodically jumping in and out when it comes to your customer engagement efforts won’t work anymore. You need a well-designed strategy and a definitive plan, and to stick to it.

Every time you engage with your customers, have a clear goal in mind, whether it’s improving your product or adding benefits customers will want. Sixty-eight percent of Americans are willing to spend 13% more with companies providing superior customer service, according to Inc.com. This means all of your customer engagement endeavors must lead directly to some type of offer, decision or action, backed by a strategic approach.

Let’s Embrace More and More Mobility

More people use their personal devices to buy products and services online. Nearly 70% of all adults in the U.S. have a smartphone, and tablet computer ownership has edged up to 45%, according to a survey conducted by the Pew Research Center. If you are not engaging with your customers via their cell phones or tablets on a semi-regular basis, you’re still in medieval times.

To achieve this, marketers have researched and engaged with what their customers are doing, to stay ahead of trends and effectively identify fads, as well as to ride the former and discard the latter until the buzz begins to die down.

Companies always covet peerto-peer, one-on-one relationships. People love to share personal stories about products and services they like, and that’s the sweet spot every marketer wants to tap into.

By learning as much as you can through online reviews and social media, you can learn your customers’ habits quickly and respond promptly. Adapt or perish is the motto when it comes to customer engagement, and listening carefully is a vital part of that.

Let’s Develop 2-Way Relationships

If you truly want to stay engaged with your clients in an effective manner, treat them more like good friends instead of customers. Too many companies milk their customers dry with a different offer every other day. That’s overkill and you won’t won’t remain friends if you do it on a continual basis.

Your overall strategy shouldn’t be all about selling them something aggressively, but rather more about developing good friendships with your client base.

To this end, value all feedback you receive from your customers and

share it with your team. If you’re listening to what your clients are saying about you, you can respond quickly and improve your products, services or processes if needed.

Pivoting is not just for Stephen Curry of the NBA companies must be ready to do it on the drop of a dime.

Let’s Make it Easily Accessible and Visible

There’s a whole big world out there when it comes to all of the different approaches to stay engaged and entangled with your customers for the long run.

In-product messaging, email, mobile, social media and customer care/support are the five leading ways companies can consistently achieve top-tier results. The ones that truly excel at it have figured out how to do it all well.

The role of any smart marketer is to provide its customers with the correct tools to enable easy and natural communication. You should always be easily available and visible, but you should also offer options for varied types of interactions.

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If you can offer your clients an intuitive tool, rather than just a platform for communicating with you, they will take the reins and do the rest themselves.

Simply periodically jumping in and out when it comes to your customer engagement efforts won’t work anymore. You need a well-designed strategy and a definitive plan and stick to it.

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Speakers Offer Advice on Recruiting, Retaining Auto Body Shop Employees

By John Yoswick Autobody News

Presenters at online events this fall aimed at dealership service departments offered some information and ideas about employee recruitment and retention that could be equally helpful for collision repair businesses.

Meredith Collins of Carlisle & Company, for example, said that company’s research across multiple automakers’ dealerships found those companies lose an average of 29% of technicians annually.

“So almost a third are leaving dealerships each year,” Collins said. “We’re losing a great deal of money when we lose a single tech [let alone] when you extrapolate it to the whole industry.”

communication between service advisors and technicians. They found a significant disconnect on this topic, with the majority of service advisors thinking they communicate properly, but fewer than 30% of technicians saying that was the case from their viewpoint. This impacts performance, Collins said.

“The technicians who strongly disagree that they are communicated with well are much less productive than those who say they are,” she said. “They are turning fewer hours, and earning less money if they think that there’s not good communication.”

Most Employees Want a Clear Career Path

Another speaker, WrenchWay founder Jay Goninen, said the technician turnover at dealerships is even more problematic than it may seem at first glance.

said. “You’ve got to be able to be better as a manager and as a leader to really have their best interests in mind.”

Attracting Entry-Level Workers

A CRASH Network survey earlier this year found one in five collision repair shops had an opening for a detailer, and nearly twice as many were looking to hire a body or paint department apprentice.

Joel Fumo , founder and CEO of Citrin, said all industries are short on this type of hourly, 17- to 24-year-old employee, so collision repair businesses are competing not just with each other for such workers, but also with Target, Costco and Whole Foods.

organization that have moved up from the type of position you are offering them.

“Testimonials from people they can relate to is huge when it comes to attracting people,” he said. Employers also need to move quickly.

“Time to hire is everything,” Fumo said. “Make sure you’re quickly getting them on the phone or in for an in-person interview. Get them earning a paycheck as quickly as possible. We see [clients] having up to a two- or three-week hiring cycle. When it comes to hourly employees, they can’t wait around that long for a paycheck.”

She pointed to several factors driving that turnover. The company’s surveys of technicians found only about a quarter of them expressed satisfaction with their job.

“They overwhelmingly wouldn’t recommend this career, which has implications on our ability to recruit new technicians into this space,” Collins said.

One driver of that dissatisfaction appears to be pay methodologies. She shared a chart showing technicians paid hourly or by salary are more likely to express job satisfaction; those paid flat-rate were the group with the lowest percentage of job satisfaction. She noted those employees pointed to the time they spend at work for which they are not paid.

“What we’ve heard from technicians in the last year is that nearly one third of their time while they are at work is non-compensated time,” she said. “They estimate this is costing them about $17,000 a year on average. So it’s a huge amount of money they see they are leaving on the table.”

But Collins said it’s also not just about the money.

Carlisle & Company also surveys dealership service personnel about their perception of the

“What we’re hearing is that it’s not techs just leaving one dealership to go to another. They’re leaving the industry,” Goninen said. “When we’re already coming from behind, it really puts us in a bad position. They have a perception that all shops are the same, and that they’re going to get treated the same way. Some of them have probably experienced that.”

Employers, he said, need to find ways to portray themselves as a different and better place to work, with a well-designed career path for technicians.

“For the longest time, we pinned it on just Millennials wanting to know what their career path is,” he said. “But think about that 55-year-old tech out

His Ohio-based company specializes in recruiting for such entry-level positions, primarily for dealerships. He said it requires thinking about what these young people want in a job: a flexible schedule, competitive pay and opportunity for career growth.

“Our benchmark for wages is Chick-fil-A,” he said. “We try to be as close [in pay] as we can to Chick-fil-A in any market.”

Show them people within your

Other companies, he said, are converting applications to a new hire in three or four days.

Lastly, he said, your company has to be a place where people want to work.

“Culture is really everything that drives our ability to recruit and retain great people,” he said.

John Yoswick has covered the collision industry since 1988, is the editor of CRASH Network and can be contacted at john@CrashNetwork. com.

there, whose body may not be feeling the best right now. You have another 10 years to work. You probably want to know what your career path is more than anybody.”

Having a genuine interest in your employees’ goals and interests can’t be something you just talk about, he said.

“If you treat people like a number and are surprised when people are leaving, I think that’s on you,” Goninen

“If you treat people like a number and are surprised when people are leaving, I think that’s on you.”

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Nonprofit Launches ‘Virtual Power Plant Partnership’ With Support from GM, Ford

RMI, a nonprofit dedicated to accelerating the global energy transformation, on Jan. 10 announced the formation of the Virtual Power Plant Partnership (VP3).

In recognition of the critical work needed to tackle scaling the market for virtual power plants, initial funding of the VP3 effort was made possible by General Motors and Google Nest. As of Jan. 10, VP3 includes founding members Ford, General Motors, Google Nest, OhmConnect, Olivine, SPAN, SunPower, Sunrun, SwitchDin and Virtual Peaker.

VP3 is an initiative based at RMI that works to catalyze industry and transform policy to support scaling VPPs in ways that help advance affordable, reliable electric sector decarbonization by overcoming barriers to VPP market growth.

Virtual power plants are portfolios comprised of hundreds or thousands of households and businesses that offer the latent potential of their EVs, smart thermostats, appliances, batteries, solar arrays and additional energy assets to support the grid.

VP3 follows in the path of successful institutional spinoffs in the electric sector space previously incubated by RMI, including the Clean Energy Buyers Association and the Energy Web Foundation.

“Virtual power plants are poised for explosive growth, and RMI is committed to being at the forefront of their success by launching VP3,” said RMI CEO Jon Creyts. “Our analysis shows that VPPs can reduce peak power demand and improve grid resilience in a world of increasingly extreme climate events. A growing VPP market also means revenue opportunities for hardware, software and energyservice companies in the buildings and automotive industries. For large energy users, VPPs can significantly reduce energy spend while providing new revenue streams.”

“The next 12 to 24 months are critical for policy and program development to seize the potential offered by virtual power plants, and VP3 is here to ensure that the energy transition doesn’t miss a beat,” said Mark Dyson, RMI managing director for carbon-free

electricity. “Policy change, customer and stakeholder education, and unilateral action by individual businesses or organizations all take time and resources. We’re excited to partner in this work with leading businesses in VPP-related sectors including electric vehicles, building controls, residential energy technologies, utility-facing software solutions and more.”

More About VP3’s Goals

With the guidance and support of its members, VP3 is working toward a future where businesses, households and communities are empowered through VPPs which can help to support cost-effective energy, emissions reductions and a more resilient electricity grid. To achieve this, VP3 will work to:

Catalog, research and communicate VPP benefits

Develop industry-wide best practices, standards and roadmaps

Inform and shape policy development

“Virtual power plants present an

exciting opportunity to unlock additional value for homes, businesses and communities, helping to drive greater energy independence and grid decarbonization,” said Mark Bole, GM VP and head of V2X and battery solutions. “This collaboration underscores GM’s commitment to creating a more resilient grid, with EVs and virtual power plants playing a key role in helping to advance our all-electric future.”

“Electric vehicles are introducing entirely new opportunities for consumers and businesses alike, creating a greater need for sustainable energy solutions to responsibly power our connected lifestyles,” said Bill Crider, head of global charging and energy services, Ford Motor Company. “Supporting grid stability through the introduction of technologies like Intelligent Backup Power is central to Ford’s strategy, and collaborating to advance virtual power plants will be another important step to ensure a smooth transition to an EV lifestyle.”

Source: RMI, Ford

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Hyundai Sets Massive 2023 Sales Growth Target Propelled by New EV Offerings

By William Johnson Teslarati

Hyundai announced it aims to grow auto sales by 10% this year alone.

Over the past two decades, Hyundai Motor Group has become a sizable competitor in the automotive industry. It is now a leader in affordable offerings and electric vehicles, along with the likes of Ford. Following this success, the Korean automotive group has set the ambitious goal of growing its vehicle sales by 10% in 2023.

According to Reuters, Hyundai Motor Group is already a massive seller of vehicles globally, selling 6.85 million in 2022. And while this achievement was off from its 2022 sales goal of 7.16 million vehicle sales, it was still a significant growth year despite numerous poor macroeconomic conditions.

A growth of 10% in sales would equate to roughly 7.54 million vehicles sold in 2023, an increase

of 685,000 vehicles compared to 2022.

Hyundai has good reason to be optimistic. While Tesla continues to dominate the EV market in the U.S. and numerous other markets globally, Hyundai Motor Group— which includes Hyundai, Kia and Genesis—has rapidly expanded EV offerings over the past three years and is now a leader in more affordable models. And with new models planned to be coming in the new year, it is poised to continue to find success.

In a statement to Reuters, a corporate spokesperson said, “Hyundai plans to expand market share and operate profitabilityoriented businesses by flexibly responding to market changes, accelerating its transition to electrification, responding to global environmental regulations and optimizing production, logistics and sales by region.”

Hyundai’s ambitious goal faces a couple of hurdles. Foremost, without EV manufacturing

operations in the U.S., none of the company’s EVs are currently eligible for federal EV tax incentives, a significant discount for many buyers.

Secondly, while Hyundai has performed admirably in the past year, tackling supply chain issues, due to the current COVID spike in China, many expect disruptions to continue.

Finally, while the EV market in the U.S. remains fairly sparse, European and Asian markets have become far more competitive over the past year, which could hinder the ambitious company’s growth.

With EVs coming into the mainstream in most major markets, Hyundai Motor Group is in a fantastic position to seize the opportunity, and its ambitious goal is an excellent sign of optimism in a highly uncertain time.

UAF Scholarship Committee Chair Named

Michael C. Buzzard, 20-year veteran of the automotive aftermarket industry, brings his wide range of executive leadership experience to the University of the Aftermarket Foundation (UAF) Scholarship Committee as its new chair.

He will lead the nonprofit program that has awarded millions of dollars in scholarships to students enrolled in four- and two-year colleges as well as ASE/NATEF certified automotive, collision and heavy duty postsecondary schools.

Currently a partner with Schwartz Advisors, Buzzard has held leadership roles in marketing, sales management, corporate development and general management during his time with Auto Plus Auto Parts. Prior to his career at Auto Plus, he was an internal consulting services analyst at JP Morgan.

The deadline to apply for scholarships for the 20232024 academic year is March 31. To learn more, visit www. AutomotiveScholarships.com.

Source: University of the Aftermarket Foundation

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By David A. Wood CarComplaints.com

A Ram tailgate recall involves more than 1.4 million Ram trucks equipped with tailgates that may not latch correctly because the tailgate strikers may be misaligned.

This can cause a tailgate to suddenly open while driving and allow unsecured cargo to fall out.

Stellantis (Fiat Chrysler) advises Ram customers to follow the owner’s manuals and make sure items in the truck beds are secured.

The Ram tailgate recall involves 2019-2022 Ram 1500, Ram 2500 and Ram 3500 trucks, but Ram 1500 Classic pickups are not affected by the tailgate recall. Additionally, Ram trucks equipped with sensors that alert drivers to insecure tailgates are also not included in the tailgate recall.

Chrysler opened an investigation in July due to

tailgates that opened while driving 2019-2021 Ram 1500 trucks. As of Nov. 22, FCA was aware of 736 warranty claims, 101 field reports and 15 customer assistance records regarding tailgates that dropped open.

However, the automaker is not aware of any crashes or injuries related to the tailgate problem.

Along with the 1.2 million recalled Ram trucks in the U.S., the tailgate recall involves about 121,000 Ram trucks in Canada, more than 26,000 in Mexico and more than 27,000 Ram trucks outside North America.

FCA expects to mail Ram tailgate recall notices Jan. 27, 2023, and dealerships will inspect the tailgate striker alignments to the box latches and adjust them if necessary.

Owners who have questions about the Ram truck tailgate recall may call 800-853-1403. Chrysler’s Ram tailgate recall reference number is ZB8.

Study: 90% of Households Would Save on Energy Costs Switching To EVs

By Scott McClallen The Center Square

A study from the University of Michigan says more than 90% of vehicle-owning households in the U.S. would reduce the percentage of income spent on transportation energy if they switched to electric vehicles.

However, more than half of the lowest-income U.S. households, or about 8.3 million households, would continue to experience high transportation energy burdens, defined as spending more than 4% of household income on filling the tank or charging up.

Study author Joshua Newell from the university’s Center for Sustainable Systems said the results confirm the potential benefits of widespread EV adoption. He called for “policy interventions” to increase EV accessibility for people with low incomes.

“However, EV ownership in the U.S. has thus far been dominated by households with higher incomes and education levels, leaving the most vulnerable populations

behind,” Newell said in a statement.

In 2016, 78% of federal EV tax credits flowed to taxpayers with incomes over $100,000.

In other words, the study says the government needs to subsidize EVs even more. Michigan taxpayers have helped subsidize EVs by $2 billion.

Jason Hayes, director of environmental policy at the Mackinac Center for Public Policy, said the study only accounts for the amount spent on gasoline or charging—not the initial purchase price of the vehicle, which is one of the most significant barriers to EV adoption.

“They can spend less money on transportation energy, but their overall transportation budget would go up,” Hayes said in a phone interview. “So it’s equivocation: you’re playing with words there.”

According to Kelley Blue Book, the average price of an electric car in September 2022 was $65,291. Meanwhile, the average price for a gas-powered vehicle was $48,100. Moreover, many used gas-powered cars cost between $5,000 and

$15,000.

The study says more than 90% of households that replace gaspowered vehicles with EVs would reduce the generation of climatewarming greenhouse gases.

The new study was published online Jan. 11 in Environmental Research Letters, an IOP Publishing journal. It considers the spatial variation of EV energy costs and greenhouse gas emissions nationwide.

EVs currently account for about 1% of the vehicles on American roads. If EVs replaced all vehicles on the road, the transportation energy burdens and associated greenhouse gas emissions would vary widely.

Some households could reduce their annual transportation-energy costs by $600 or more and cut their annual carbon footprint by more than 4.1 metric tons of carbon dioxide equivalents, by buying a new EV.

Very high EV transportation energy burdens, ranging from 10% to 64%, would persist for the lowestincome households and would be concentrated in the Midwest and the two states with the highest electricity prices: Hawaii and Alaska.

Contributing factors to low EV savings include cold winter temperatures that hurt battery performance, electrical grids that rely largely on fossil fuels, or high electricity prices relative to gasoline prices.

The study evaluated three factors associated with the EV transition: transportation energy burden, fuel costs and greenhouse gas emissions. The researchers calculated transportation energy burdens and lifetime greenhouse gas emissions of new EVs and internal-combustion vehicles at the census tract level. Then they compared the energy burdens of the new vehicles to the energy burdens of the current on-road vehicle stock. Finally, they compared the spatial variation and extent of energy burdens and greenhouse gas emissions for EVs and internal-combustion vehicles nationwide.

Transportation accounts for the largest portion of the greenhouse gases emitted in the U.S., with direct emissions from passenger vehicles and light-duty trucks comprising roughly 16% of U.S. emissions.

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