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Industry Responds to CNN Segment Exposing “Steering” & Use of “Sub-par” Parts in DRPs by Stacey Phillips, Assistant Editor
The recent CNN news report about the collision repair industry gave viewers an inside look at the challenges body shops face in order to repair cars safely for consumers. It aired on the Anderson Cooper 360 show Feb. 11. The 11-minute segment, entitled “Auto Insurers Accused of Pushing Cheap and Sometimes Dangerous Repairs,” explained the widespread use of “salvaged” or aftermarket parts as well as the practice of insurance companies “steering” work away from
certain shops that aren’t part of their select service programs. In addition, the program discussed the lawsuits filed by more than 500 body shops in 36 states against the top insurance companies in the country to address their concerns. “This was just another validation of, as CNN put it the ‘scheme’ that’s going on within the insurance industry and anyone associated with them. It also validates what shops all around the country have been seeing and dealing with for years,” said Ron Perretta, owner of Professionals Auto
2015 Ford F-150 Long-Term Road Test
The following article was written by Travis Langness, Associate Editor at Edmunds.com. It was published on Jan. 26 and has generated a lot of commentary online. Since many readers heard only about the reaction to the story we reprint the article here with permission of Edmunds.com.
VOL. 4 ISSUE 6 MARCH 2015
Aluminum Body Repairs Part 1 I hit our brand-new long-term 2015 Ford F-150 4X4 SuperCrew with a sledgehammer. On purpose. Twice. We bought the $52,000 F-150 from Galpin Ford in Van Nuys, California. The day after the truck was delivered to our Edmunds office in Santa Monica, I went to work with the BFH, See 2015 Ford F-150, Page 14
See CNN Segment, Page 42
Chicago Foundation Looks to Help Women and Children Across the Country With Car Donations
See Chicago Foundation, Page 22
P.O. BOX 1516, CARLSBAD, CA 92018
Twenty-five years ago, Molly CantrellKraig experienced firsthand what it’s like to be a single mother raising a fourmonth old without a means of transportation. “I hitched a ride with a friend who was a welder at a local factory,” said Cantrell-Kraig. “He would drop me off two hours early for [college] classes, where I would do my homework at a restaurant across the street from the main campus before school.” Cantrell-Kraig graduated and began working, and was then able to
buy a reliable car and provide for her family. She credits her success to a trustworthy mechanic, Steve Curry of Curry’s Auto, Inc. in MusMolly Cantrellcatine, Iowa. Kraig, founder of “He helped me Women With Drive Foundation. to not only learn Photo credit: @Linda about how to take Horton Photography care of my car, but Chicago also how to budget maintenance costs,”
Change Service Requested
by Victoria Antonelli, Online Editor
Travis Langness, Associate editor at edmunds.com, takes a sledgehammer to a brand new aluminum Ford F-150 to test the collision repair process. Photo credit: Edmunds.com
Three-C Body Shops in OH and State Farm Reach Agreement to Settle Multiple Lawsuits After two and a half years of legal jousting, involving over 140 separate claims seeking damages in excess of $300,000, Bob Juniper of Three-C Body Shops and State Farm Insurance have reached a settlement. Juniper, second generation owner and CEO of Three-C Body Shops, Inc. filed a lawsuit against State Farm on behalf of 146 of his customers. The issue stemmed from Three-C’s billings associated with the handling of total loss vehicles of which the insurer declined to provide ample compensation to their customers. The issues included, but were not restricted to processes such as hazardous waste, labor related to dismantling, mechanical, diagnostic time, access, rough pulls, accessing
codes, relocation of disabled vehicle, fluid/debris clean-up, collision wrap, clean-up of broken glass, administrative time performing research for factory repair methods and numerous other processes incurred. “The time and efforts involved in vehicles once considered repairable and then deemed total losses are often considered by insurers to be a ‘cost of doing business;’ however, when a vehicle becomes a total loss, such labor and administrative activities become burdensome and take considerable time away from our efforts to serve our repair customers. Such activities, time and procedures are all too often unappreciated and ignored and we See Three-C Body Shops, Page 30
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
Contents
Authorities Investigate Death After Fight in Brooklyn Center, MN, Body Shop Parking Lot
Tow Truck Driver Frees IA Woman Pinned
AASP-MN Raises Nearly $10,000 for
United Auto Supply is Now Auto Value
ABPA Meeting & Trade Fair in Chicago, IL. . 4
Vehicle Service Group of Madison, IN,
Education Fund . . . . . . . . . . . . . . . . . . . 9
Attanasio - Missouri Industry Veteran
Focuses on Shop Profits . . . . . . . . . . . 26
Authorities Investigate Death After Fight in Brooklyn Center, MN Body Shop
Parking Lot . . . . . . . . . . . . . . . . . . . . . . 3
Auto Body Students in Northeast IN Put to
Under Car . . . . . . . . . . . . . . . . . . . . . . 12 in Midwest. . . . . . . . . . . . . . . . . . . . . . . 8 Named Business of the Year. . . . . . . . . . 6
COLUMNISTS
Attanasio - Does Being a Green Shop
Improve the Bottom Line? . . . . . . . . . . 38
the Test for Skills USA Competition . . . 12
NATIONAL
WI Body Shop . . . . . . . . . . . . . . . . . . . 12
AASP-NJ Hosts NORTHEAST 2015
Bergstrom Debuts Used Car Lot at
Car Crashes into Dayton, Ohio, Body Shop . 9 Chicago Foundation Looks to Help Women
and Children Across the Country . . . . . . 1
Couleecap Offers Funding for Vehicles
2015 Ford F-150 Long-Term Road Test . . . 1 Automotive Services Show
March 20-22 . . . . . . . . . . . . . . . . . . . . 20
AudaExplore Technology Driving Performance
in Collision Repair Shops . . . . . . . . . . . 34
and Vehicle Repair . . . . . . . . . . . . . . . . 10
Diamond Standard Parts’ New Web-Based
After Fire . . . . . . . . . . . . . . . . . . . . . . . . 9
Industry Responds to CNN Segment
IL’s Andy’s Auto Body to be Rebuilt
Midwest Auto Trade Show on February 19 Prepares Industry for New
Technology . . . . . . . . . . . . . . . . . . . . . . 4
Missouri Auto Dealers Association Sues
Missouri over Tesla Car Sales . . . . . . . 10
Most IABA Chapters Hold February
Member Meetings . . . . . . . . . . . . . . . . 36
Pollution Agency Forgives $1,688 Fine
Against MN Shop. . . . . . . . . . . . . . . . . 10
Sisk - ASA-IN Holds First Official Meeting
of 2015 . . . . . . . . . . . . . . . . . . . . . . . . 32
Program “UNSUB” . . . . . . . . . . . . . . . . 44 Exposing “Steering” & Use of
“Sub-par” Parts in DRPs . . . . . . . . . . . . 1
Large Portion of Antitrust Multidistrict Litigation in FL Dismissed, Refiled
by Plaintiffs . . . . . . . . . . . . . . . . . . . . . 18
Maaco President Goes “Under the Hood” to Inspect His Business on
Award-Winning Series . . . . . . . . . . . . . 28
Night-Time Automotive Paint Additive Has Vehicles Glowing and Owners
Crowing. . . . . . . . . . . . . . . . . . . . . . . . 41
St. Matthews Imports in KY Partners
Plans in Progress for 2015 VISION
Three-C Body Shops in OH and State Farm
RUPES Brings Collision Repair Tools
with BizIQ . . . . . . . . . . . . . . . . . . . . . . . 9
Reach Agreement to Settle Multiple
Lawsuits . . . . . . . . . . . . . . . . . . . . . . . . 1
HiTech Training and Expo . . . . . . . . . . . 37
to U.S. Through Acquisition of
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Indexof Advertisers
AAA Salvage Joins Team PRP . . . . . . . . . . 6
Cyclo Toolmakers . . . . . . . . . . . . . . . . 45
ported startribune.com. Because an active investigation is still taking place, police and the Hennepin County Sherif’s Office would not comment further on the incident. Public steps have been taken to address the issue of police-civilian relations by the mayors of both Minneapolis and St. Paul. St. Paul Mayor Chris Coleman recently agreed to ask outside auditors to review the police-civilian board, which investigates citizen complaints against officers, reported the startribune.com. According to KMSP-TV news reports, Khottavongsa was a father of three children and was active in his community as a volunteer and handyman. Originally from Laos, he came to the U.S. in the 1970s, arriving first in Texas where he gained his citizenship before relocating to Minnesota. His family said Khottavongsa was at the body shop helping a friend do some repair work at the time of the incident. Public records say he was married to Khamla Khottavongsa. His family declined to comment, but a gofundme.com page set up to raise money for funeral costs describes Khottavongsa as a compassionate and generous person.
Assured Performance . . . . . . . . . . . 10 Audi Wholesale Parts Dealers . . . . 42 Automotive Art . . . . . . . . . . . . . . . . 11 Axalta Coating Systems . . . . . . . . . 47 BMW Wholesale Parts Dealers . . . . 41 Car-Part.com . . . . . . . . . . . . . . . . . . 18 CarcoonAmerica Airflow Systems . 32 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 35 Charles Gabus Ford . . . . . . . . . . . . 37 Chief Automotive. . . . . . . . . . . . 15, 19 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Color-Dec North America, Inc. . . . . . 6 Dent Magic Tools . . . . . . . . . . . . . . 14 Diamond Standard Parts, Inc . . . . . 17 DJS Fabrications, Inc.. . . . . . . . . . . 48 Equalizer Industries, Inc. . . . . . . . . 16 Erhard BMW of Bloomfield Hills . . . 26 Erhard BMW of Farmington Hills . . 26 Ganley Westside Subaru . . . . . . . . . 5 GM Wholesale Parts Dealers . . . . . 43 Graham Auto Mall . . . . . . . . . . . . . . 30 Hall Volkswagen-Mazda . . . . . . . . . 21 Herkules . . . . . . . . . . . . . . . . . . . . . 20 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers . 38 Jake Sweeney Chevrolet . . . . . . . . 34 Kelly BMW . . . . . . . . . . . . . . . . . . . . . 4
Serving Illinois, Iowa, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC.
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REGIONAL
Hennepin County is investigating the death of a St. Paul, MN, man who hit his head on the ground after Brooklyn Center, MN, police used a Taser on him, reported startribune.com. Tensions have been high between police and civilians following the deaths of Michael Brown in Ferguson, MO and Eric Garner in New York City. Officers of the Brooklyn Center Police Department were sent to the 5800 block of Xerxes Avenue N. shortly after 9 pm on Jan. 16 after multiple calls were made about a group fighting in a body shop parking lot, possibly with weapons, reported startribune.com. According to police, Sinthanouxay Khottavongsa, 57, was one of the several people standing in front of the shop. He was holding a crowbar in a threatening manner, police told startribune.com. Khottavongsa was told repeatedly by police to drop his crowbar before using a Taser on him. He then fell to the ground and hit his head. Khottavongsa was transported to North Memorial Medical Center and died two days later from what was described by the county medical examiner’s office as complications of blunt force head injury, re-
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Kia Wholesale Parts Dealers. . . . . . 33 Laurel Auto Group of Westmont . . . 39 Lexus Wholesale Parts Dealers . . . 44 Luther Hopkins Honda . . . . . . . . . . 28 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Maplewood Toyota-Scion . . . . . . . . 27 Mazda Wholesale Parts Dealers . . . 45 MINI Wholesale Parts Dealers . . . . 40 Mirka Abrasives, Inc . . . . . . . . . . . . . 9 Mitsubishi Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . 45 MOPAR Wholesale Parts Dealers . . 31 Morrison’s Auto Parts . . . . . . . . . . . . 6 Patrick BMW-MINI . . . . . . . . . . . . . . . 7 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Replica Plastics. . . . . . . . . . . . . . . . 22 SATA Spray Equipment . . . . . . . . . 29 Subaru Wholesale Parts Dealers . . 44 The Sharpe Collection of Automobiles . . . . . . . . . . . . . . . . 36 Toyota of Des Moines . . . . . . . . . . . 37 Toyota of Grand Rapids . . . . . . . . . 18 Toyota Wholesale Parts Dealers . . . 40 Urethane Supply Company . . . . . . . 8 Valspar Automotive . . . . . . . . . . . . . 23 VanDevere Kia-GM . . . . . . . . . . . . . 12 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 42
www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 3
Midwest Auto Trade Show on February 19 Prepares Industry for New Technology
The focus of the 5th Annual Midwest Autobody Trade Show is: Training – New Equipment – New Technology. This one-day power-packed event is February 19 at the Sheraton West Des Moines in Des Moines, Iowa. “This is everything you need for the future in one place,” says Iowa Collision Repair Association President, Dick Merron. “This is a great opportunity for our industry.” The popular show opens with the “There Is No Free Lunch” luncheon. Iowa State Senator Brad Zaun, an industry favorite, leads the luncheon for the third year. He is joined by Iowa Collision Repair Association lobbyist Scott Weiser and National I-CAR Chairman, Bob Keith. Ken Boylan, Global Training Manager, Chief Automotive Technologies will present “Introduction to Aluminum.” Boylan will be on the show room floor to visit with attendees throughout the trade show, and have on hand a Ford F-150 aluminum truck. The show floor opens its doors directly after the luncheon to over 65 vendor display booths. In addition, I-CAR’s New Technology 2015 starts the day at 8:30. Show specials, gift certificates, special show discounts and door prizes will be offered throughout, along with a
display of new car models. This year the Midwest show will host a Refinish Competition between seven Iowa Community Colleges; these colleges will compete in the first Midwest Autobody Trade ShowCommunity College partnership effort, in part due to generous donations from 3M, The Collision Education Foundation and Keystone Automotive. Students will be refinishing a 2005 Cobalt hood using their own creative custom design work. Hoods will be judged by custom motorcycle builder Steve Bruggenwirth from Albany, Illinois. “We are very excited to integrate this competition into the trade show,” said Janet Chaney, Iowa Collision Repair Association Executive Director. “We will embrace these students and welcome them to this great industry.”
Trade Show Features: ● ICAR NEW 15-Vehicle Technology and Trends 2015 ●“There Is NO Free Lunch” luncheon featuring Senator Brad Zaun, Iowa Collision Repair Association lobbyist Scott Weiser and I-CAR National Chairman, Bob Keith ● Introduction to Aluminum presented
by Ken Boylan, Chief Industries, Global Training Manager Mr. Boylan will cover the future of aluminum, aluminum repair, laser welding, friction stir welding, bonding and riveting and “new” steel techniques ● 65 Trade Show Booths New Equipment, New Tools, Door Prizes, Product Demonstrations ● Custom motorcycle painter, Steve Bruggenwirth, featured in Baggers Magazine ● Community College Refinish Competition Schedule: 8:30-11:30 am – ICAR’s New15 – Vehicle Technology & Trends 2015 ● Instructor Scott Schuerman – Please register and pre-pay for this class at www.i-car.com
12:00-2:00pm – “There is No Free Lunch” Industry Issues Luncheon ($40) ● Iowa Senator Brad Zaun & ICRA Lobbyist Scott Weiser: ● “Cool Tools for Today’s Vehicles” ● “Demystifying Aluminum and Other New Technology” 2:00 – 7:00 pm - Midwest Auto Body Trade Show
● 60 plus booths ● See the Ford F150 Military Grade Aluminum Pick Up Meet Ken Boylan – Global Training Manager – Chief Automotive Technologies ● Community College Refinish Contest – ‘You Be the Judge’
Featured Vendor List: ● Axalta ● 3M ● Aeromotive ● Akzo-Nobel ● Arnold Motor Supply ● Audatex ● Automotive Refinish Solutions ● Billion Automotive ● Body Parts Store ● Car-Part ● CCC
The 5th Annual Midwest Auto Body Trade Show is a free inter-industry event, inviting collision repairers, insurers, manufacturers, vendors, recyclers, OEMs and students from the Midwest to participate. Please call Sheraton West Des Moines (515-223-1800) for the Trade Show room rate of $129. For further information, call Janet Chaney at 480720-2565.
ABPA Meeting & Trade Fair in Chicago, IL
The Automotive Body Parts Association’s 35th Annual Business Meeting and Trade Fair will be held in Chicago, Illinois from April 2124. The venue for the event will be the Drake Hotel located on top of the Magnificent Mile in downtown Chicago. The theme of this year’s Annual Meeting & Trade Fair is “Continued Growth and Meeting the Challenges Ahead,” featuring a line up of speakers and presentations to provide valuable information on running a business for members. ● Dan Risley of the Automotive Service Association (ASA) will provide a collision and service shop update; ● Will Nordwind of Venable will bring the audience up-to-date on governmental issues as well as progress on the fight for repair part patent exclusion under a new Congress; ● Robert Passmore, Senior Director Personal Lines Policy for the Property Casualty Insurers Association of America (PCI), will deliver an overview of insurance and legislative issues; ● Randy Hansen from Allstate will address Insurers and the Aftermarket; ● Ken Weiss will provide an update
on the Partstrader program; and ● ABPA personnel will give a brief overview of the patent reform case and update the membership on the current status. There will also be educational sessions headed by CCC’s David Boden, carpart.com’s Jeff Schroeder, Dan Fernandez of APU Solutions, and a representative from Mitchell. More information is available by downloading the flyer and registration form online. Flier with more information: http://www.abpabodylanguage.com/ wp-content/uploads/2015/01/ABPA2015-Convention-Info.pdf Registration form: http://www.abpabodylanguage.com/ wp-content/uploads/2015/01/ABPA2015-Convention-Registration.pdf
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Vehicle Service Group of Madison, IN, Named Business of the Year
Vehicle Service Group (VSG), the parent company of Rotary Lift®, Chief® Automotive Technologies, Direct Lift®, Forward Lift®, and Elektron, has been named Business of the Year by the Madison Area Chamber
is headquartered. The chamber presented the award last week during its 91st annual dinner and awards ceremony. VSG was formed in 2009, but its roots in Madison stretch back much further. Madison has been home to Rotary Lift’s flagship manufacturing plant for more than 50 years, and the facility has grown with the company. VSG’s North and South American operations, engineering, product development, R&D, customer service and support, training and sales/marketing teams are all based in Vehicle Service Group (VSG) representatives accepted Madison. the Business of the Year Award from the Madison Area “This is the first time in Chamber of Commerce. Pictured are (L-R): Trevor our company’s history that Crafton, Madison Area Chamber of Commerce executive we’ve received this award, director; Jenny Darnold, Madison Area Chamber of and it is a testament to the Commerce board of directors president; Jim Wysinski, outstanding things happenVSG chief financial officer; Matt Webster, VSG vice ing at VSG,” says Matt president and general manager, the Americas; Niclas Webster, VSG vice presiYtterdahl, VSG president; Stephen Sheets, VSG dent and general manager, marketing content strategist and representative to the Americas. “Our emthe chamber’s board of directors; and Bob Ford, VSG ployees’ hard work and innew product development manager creased involvement in the of Commerce. The award recognizes community over the last year did not VSG’s leadership, vision, innovation go unnoticed.” The Madison Area Chamber of and service in Madison, IN, where it
Commerce Business of the Year Award is voted on by past award recipients. It is one of three awards— the other two honor a small business and an individual—that are presented annually by the more than 350-member organization. VSG’s ties to the community were featured last year with the launch of Raised in Madison, a Rotary Lift campaign that tells the stories of the people who build and support its car and truck lifts in Madison. Videos showcasing Rotary Lift products and the team are available at www.rotarylift.com/raised-in-madison/. “Without all the hard, behindthe-scenes work of our Madisonbased employees, recognition like this would not be possible,” says Webster. “We are fortunate to have such a great group of people, and I am looking forward to another successful year in 2015.”
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AAA Salvage Joins Team PRP
AAA Auto Salvage, with two locations in MN, became the newest automotive recycler to join Team PRP, a nationwide network of recyclers. “Team PRP is pleased and proud to welcome AAA Auto Parts. Their dedication matches perfectly with Team PRP’s strategic vision,” said Mark Gamble, Team PRP’s Executive Director. “Our goal is to maximize the industry impact of the independent recycler, and AAA in Minnesota is another important step in that direction.” This partner enhances the network’s ability to service customers in the state of MN as well as the western region of WI. Founded in 1983, AAA Auto Salvage has expanded from a small, two-employee auto salvage facility to a sizable operation employing 65 people. Their two locations—one in Rosemount, MN and the other in East Bethel, MN—specialize in late model recycled automotive parts. The Automotive Recyclers Association honored AAA for their efforts with the Star Award for Top Certified Automotive Recycler (CAR). “We are excited to be part of Team PRP,” said Eric Schulz, CEO of AAA. “Our industry desperately needs the consistency of product delivery that Team PRP members work so hard for, and we are looking forward to being a part of that commitment.”
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United Auto Supply is now Auto Value in Midwest by Daniel McGonigle, The Caledonia Argus
tion employs five individuals, the same five who served at United Auto Supply. As part of the change, the Caledonia Auto Value will now get overnight delivery from the massive
It was once a root beer stand. It was also at one point in its history, a wood working shop. In 1997, United Auto Supply moved from across the street into what is now “Auto Value” parts store. United Auto Supply stores have joined forces with Automotive Parts Headquarters from St. Cloud and will operate under the Auto Value name. While the name has changed, the same friendly faces will greet you when you walk into the store looking for that automotive part. John Welscher continJohn Welscher, manager at Auto Value. As part of the ues to manage the Caledonia conversion from United Auto Supply, the store can offer store and Welscher and his increased heavy duty parts, more import vehicle parts staff will contniue to provide and more variety. The business is staffed by the same the kind of service that you five friendly individuals who worked for United Auto have come to expect in Cale- Supply. Photo credit:Daniel McGonigle/The Caledonia donia. Argus “As part of a larger organization, we now have access to Automotive Parts headquarters in St. more tools and more resources to Cloud. serve our customers better than beWith access to an over $13 milfore,” Welscher noted. lion inventory of parts, Caledonia cusThe Caledonia Auto Value loca- tomers benefit because there is a
8 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
second delivery each day from the $2 million hub store inventory in La Crosse. “We’ve also improved our delivery system of professional installers,” Welscher noted. That service is available Monday through Friday from 8 to 11 a.m. The changes means more heavy duty parts, more import vehicle parts, a greater variety of products. “We can also offer inventory tailored to Caledonia and the surrounding area,” Welscher said.
Deep roots in Caledonia Vernon “Bud” Marnach was one of the original five individuals who started the auto parts supply store. Located across the street from its current location, Marnach was instrumental in relocating the store to the location in which it is currently housed. “It used to be located in the front of that building right there,” Welscher said pointing to the now St. Mary’s Body Shop. United started in 1958 and Caledonia was the third store in United’s chain. While long-time Caledonia resident Bud Marnach was one of the original founders of United Auto Sup-
ply, his son Greg was vice president at the time of sale in September 2014. The business operated in the current body shop location since 1967 until the move in 1997. United Auto Supply, founded in La Crosse at the time of sale had 14 locations covering western Wisconsin, southeastern Minnesota and northwest Iowa. All United Auto Supply locations are being converted to the Auto Value name. Auto Value is open Monday through Friday from 7:30 am. to 5:30 pm and Saturdays from 7:30 am. to 1 pm. The United Auto Supply management team is expected to join the APH management team. Once all of the locations are converted, the corporate store count across the upper Midwest will be 98 stores. We thank The Caledonia Argus for permission to reprint their article.
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St. Matthews Imports in KY Partners with BizIQ
St. Matthews Imports, a body shop and collision repair center in Louisville, KY, has formed an online marketing partnership with BizIQ, a firm specializing in local web search optimization and search engine exposure. In working with BizIQ, St. Matthews Imports is striving to increase its online visibility for local area customers who may be searching the web for automotive repair and maintenance services. As part of the partnership, BizIQ will assist the company in re-launching a streamlined version of its website and implementing optimization techniques to ensure that it becomes listed in local search results. St. Matthews Imports will showcase new content on its website, as well as blog, where it will cover industry-related topics for information seekers. “We’ve worked very hard to earn the reputation that we enjoy today as the top auto service center in the Louisville area,” said Douglas Addington, Owner of St. Matthews Imports. “Keeping that reputation alive depends on our ability to find and serve new customers in an efficient and effective way.”
AASP-MN Raises Nearly $10,000 for Education Fund
The Alliance of Automotive Service Providers, Minnesota (AASP-MN) raised over $9,800 in its 2015 fundraising campaign to support AASP-MN’s Automotive Education Fund. The majority of that money was raised during its annual Race for Automotive Education, held January 13 & 14 at ProKart Indoors, Burnsville. It will fund scholarships for automotive students enrolled in NATEF-certified mechanical and collision repair programs in Minnesota. During the two-night event, 120 racers faced off in European karts, reaching speeds of nearly 40 miles per hour. Many fans and spectators were also on hand to cheer their teams on. In all, 24 teams of mechanical and collision shops and industry suppliers were represented. Trophies were awarded to: Tuesday, January 13 ● First Place: Superior Service Center, Eagan ● Runner Up: Pearson Auto Body, Shakopee Wednesday, January 14 ● First Place: Lancer Service Auto Care, St. Paul ● Runner Up: LaMettry’s Collision, Richfield
IL’s Andy’s Auto Body to be Rebuilt after Fire
Mark Anderson, owner of Andy’s Auto Body in Illinois, said he is planning to rebuild his Maryville, IL shop after a January 29 fire, according to thetelegraph.com. There were at least five different fire departments that responded. The shop is located at 14 Schiber Court in Maryville and wasnamed a total loss. According to thetelegraph.com, Anderson said the fire began in the paint booth, which was unusual because the paint booth was in its cooling phase when the blaze started at 1 pm. The shop manager and a mechanical technican were in the shop when the fire started, stated thetelegraph.com Since Andy’s Tire and Auto Service and Andy’s Auto Body were both on the site, Anderson has to deal with two insurance policies before working on the demolition and contruction of his business. The plan is to rebuild the building to its original specifications with a few code upgrades.
Car Crashes into Dayton, Ohio Body Shop
A man was taken to Miami Valley Hospital after this car smashed against Dayton’s B&D Body Shop in Dayton, OH, according to whio.com. Police told whio.com that the preliminary report suggested that the car was in the intersection at Rosemont and Linden when a small pick up truck hit it. The auto body shop, located at 2900 Linden Ave., was open when the accident occured. The owner told whio.com that he was afraid his dog, who was inside the shop, may have been injured but he was not. Police have not commented on whether either of the drivers involved will be cited as an at-fault driver in the incident.
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Missouri Auto Dealers Association Sues Missouri over Tesla Car Sales The Missouri Auto Dealers Association is suing the Missouri Department of Revenue and its director, Nia Ray, for allowing electric-car maker Tesla to sell vehicles directly to consumers. In the lawsuit filed Jan. 22 in Cole County Circuit Court, the Missouri Auto Dealers Association, or MADA, alleges the revenue department issued a dealers license to Tesla to sell vehicles in Missouri in violation of state law. Tesla, the Palo Alto, CA.-based maker of electric vehicles that was founded in 2003, does not sell its cars through traditional franchised dealerships. Rather, the company, led by billionaire CEO Elon Musk, sells vehicles from company-owned stores and over the Internet. Tesla opened a $2 million service center in University City in June 2013 after it was issued a dealer license by the revenue department in the spring of 2013. Tesla has since added multiple charging stations locally, including at the Four Seasons and Magnolia Hotel St. Louis downtown. Telsa also opened a store in Kansas City last month. Its entry-level Model S starts at $69,900. There are nearly 200 Model S cars in Missouri, according to Tesla.
MADA, which represents 381 franchise car dealers, maintains that state law requires manufacturers to sell motor vehicles through a dealer holding a valid franchise agreement with the manufacturer. The revenue department and Ray “have created a non-level playing field where one entity — Tesla — is subject to preferential treatment and all bona fide dealers are discriminated against,” the lawsuit states. Reuther Ford, a dealership in Herculaneum, and Osage Industries, an ambulance manufacturer based in Osage County, joined the MADA as plaintiffs. Last year, an amendment to a bill in the Missouri Legislature sought to end direct-to-consumer sales by Tesla, but the amendment was ultimately pulled from the bill. Michelle Gleba, the revenue department’s spokeswoman, said the department does not comment on pending litigation. Last year, the department’s acting director, John Mollenkamp, said in a statement that automakers that have existing franchise agreements with dealers are barred from competing directly with them; however, the law does not apply to companies that never had such agreements. A Tesla spokesman made the same argument Jan. 22.
Couleecap Offers Funding for Vehicles and Vehicle Repair
Pollution Agency Forgives $1,688 Fine Against MN Shop
by Lisa Brown, stltoday.com
Couleecap, Inc. announced that they have funding available through the Work-N-Wheels program to provide no interest car loans and car repair grants for those who are securely employed and meet income requirements, according to lacrosse tribune.com. The Work-N-Wheels program helps Wisconsin households in Vernon, Crawford, La Crosse and Monroe counties. Those who apply for the program must be employed for 90 days at a secure job or self-employed for at least one full year. Loan payments are no more than $125 a month and the maximum loan amount available is $4,500. The loan must be paid off in 36 months. Those who participate must pay the tax, title and licensing fees for the vehicle they purchase as well as a five percent administration fee. For more information, contact Couleecap’s Work-N-Wheels Program Specialist, Krista Heinz, at 608-634-7371.
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The Minnesota Pollution Control Agency has forgiven a $1,688 penalty leveled against Hutch Auto Body, crowrivermedia.com reported. During the fourth quarter of 2014, Hutch Auto Body was one of the 58 businesses and government agencies that had enforcement actions taken against them. Collectively, they were assessed penalties totaling nearly $470,000. Stephen Mikkelson, MPCA information officer, told Terry Davis of crowrivermedia.com that the enforcement action against Hutch Auto Body was for allegedly failing to submit its 2013 emissions inventory. In the article he was quoted as saying, “It is a paperwork violation rather than an actual violation of the rules,” Mikkelson said. “They were then given a month to file the inventory and did so. The penalty was then forgiven.” Hutch Auto Body is located at 28 First Ave. NE in Hutchinson.
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“The fact that MADA tried and failed last year to change existing Missouri law to make it apply to Tesla, proves the frivolousness of this legal challenge,” Diarmuid O’Connell, Tesla’s vice president of corporate and business development, said in a statement. But Lowell Pearson, MADA’s attorney and a former revenue department deputy director, said the state has, in effect, created “an exception for a new entrant in the business.” “It disadvantages hundreds of Missouri car dealers who have been doing business for many, many years,” he said. Pearson said the MADA is asking the Circuit Court to bar the revenue department from renewing Tesla’s license for the University City location and bar it from receiving other dealer licenses elsewhere in the state. “It’s quite well established that a car manufacturer cannot sell vehicles directly to the public and they must be sold through a licensed dealer,” Pearson continued. The revenue department “chose not to enforce that law for Tesla.” Opponents of Tesla’s business model in other states have argued that it runs afoul of state laws that prohibit direct sales of motor vehicles by manufacturers. In September, Tesla prevailed in a lawsuit brought by an auto dealers group
in MA after the state’s highest court ruled the group lacked standing to sue. In MO, the MADA maintains that Tesla’s direct-to-consumer model harms dealers whose business depends on the state requiring all manufacturers to comply equally with state law. Some states, including Texas and Arizona, bar Tesla from selling cars directly to customers. “We feel it’s a violation of the law,” MADA’s president and CEO, Doug Smith, said in a conference call with reporters last week, describing Tesla’s business model. “The law ... clearly states that a manufacturer cannot sell vehicles to consumers.” Smith said his group’s opposition is not with Tesla, but how it sells cars. “We’d love to see Teslas all over the road,” he said. “We’d just like them to sell through dealerships like any other (manufacturer).” Tesla’s O’Connell said the dealers simply are looking to limit consumers’ ability to choose. “The goal of both this lawsuit and anti-Tesla legislation is to create a distribution monopoly that will decrease competition, hurt consumer choice, and limit economic investment in Missouri,” he said. We thank www.stltoday.com for permission to reprint their article.
www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 11
Auto Body Students in Northeast IN Put to the Test for Skills USA Competition
Students from career centers around Northeast Indiana are putting their skills to the test in a regional Skills USA Competition, reported wane.com. As the students put their trade to work from 8 am to noon on January 31, business partners from the community helped judge.
According to its website, Skills USA is an applied method of instruction for preparing America’s high performance workers enrolled in public career and technical programs. The Anthis Career Center’s mission is to provide students with skills to succeed and opportunities to use those skills. Anthis offers many types of classes including aviation, culinary and early education, reported wane.com. SkillsUSA heads to Louisville, KY, June 22–26, 2015, for the 51st annual National Leadership and Skills Conference (NLSC), a showcase of career and technical education students. More than 15,000 people—including students, teachers and Students from Career Centers around Northeast business partners—are expected Indiana competed in the regional Skills USA to participate in the weeklong Competition. Photo credit: www.wane.com event. Students competed in various The SkillsUSA Championships trades including automotive colli- will be held on Wednesday, June sion repair, cosmetology, welding, 24, and Thursday, June 25, in television production, construction Louisville. More than 6,000 outtrades, and IT/graphic design, re- standing career and technical eduported wane.com. Some students in cation students—all state contest the competition attend Anthis Career winners—will compete hands-on in Center within Fort Wayne, IN Com- 99 different trade, technical and munity Schools. leadership fields.
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Bergstrom Debuts Used Car Lot at WI Body Shop
Newly constructed Bergstrom Automotive’s Used Car Super Center and Body Shop opened in February at the company’s Victory Lane property in Grand Chute, WI, according to an article published by postcrescent.com. The 42,000-square-foot facility is expected to add 50 additional employees. It is located at 2925 Victory Lane in Grand Chute, WI. According to postcrescent.com, the Victoria Lane campus follows the plan of offering a mall or destination-type approach of selection for automobile shoppers so they see multiple brands in one location. In the article, Chairman and CEO of Bergstrom Automotive John Bergstrom was quoted as saying, “This is a very exciting announcement as we continue on our plan to build out the Victory Lane campus of dealerships in Appleton.” The company said the new shop is set up with the lastest paint technology without environmentally harmful chemical drying agents; aluminum welders; efficient paint booths; and more manufacturer certifications than any other body shop in Wisconsin.
Tow Truck Driver Frees IA Woman Pinned Under Car
A woman in Nora Spring, IA, was trapped by her wrecked car until a tow truck driver moved the vehicle and helped her escape. The accident occurred around 11:30 AM February 10 on U.S. Highway 18 during icy road conditions, as reported by Kyle Palmolea of kwwl.com. The Iowa State Patrol told Palmolea the woman was driving west when she lost control of her vehicle, causing it to roll at least four times. It then landed on its roof in the opposite lanes. The driver’s arm flew out the sunroof right before the vehicle landed, pinning her inside. Trooper Keith Duenow told Palmoleo the tow truck driver from Scott’s Towing and Auto Body in Rockford carefully lifted up the woman’s vehicle, freeing her. Emergency personnel took her to the closest hospital in Mason City. The crash is believed to have been caused by speeding during dangerous road conditions, said Duenow.
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Continued from Cover
2015 Ford F-150
intentionally denting the Ford's right quarter panel. Crazy? Maybe. But we wanted to find out if repairing the aluminumbodied Ford is more expensive and time-intensive than repairing traditional steel-bodied trucks. Remember, the F-150 is the first pickup truck with a lightweight aluminum body and bed. After much thought we chose to smash the bed side because it would need to be repaired, as opposed to a dented door, fender or hood, which could simply be replaced. So in the name of consumer awareness we dented our truck with two big blows from a sledgehammer (the impact also cracked the taillight) and drove it straight from the Edmunds garage to our local Ford dealer, Santa Monica Ford, and asked for an estimate. Take the jump to check out the sledgehammer video (on Edmunds.com). Hiding the fact that we’re Edmunds.com was important so our experience truly represented the real world. No special treatment. I also didn’t want to admit that I had hit the truck with a hammer, so I lied and told the service advisor that the damage happened while I was parked. I told him I had no idea what happened. I also told him that to avoid raising my insurance rates, I’d be paying out of pocket for this repair. He grimaced and sympathized with me, then got out his clipboard and pointed out the areas that needed repair. Various sections of the panel had deformed and would need to be pounded out. Near both the top and the bottom of the panel, there were creases and folds in the aluminum that would need to be fixed before they could be painted. According to the advisor, the aluminum would be much harder to fix than steel. His shop was trained to fix the aluminum but it required special tools and would take extra time. A job like this on an F-150 with steel panels “would take half the time.” After about 10 minutes, the advisor came out with an estimate. I approved the work and asked if I could come back in a few days and photograph the repair in progress. He agreed. Stay tuned for Part 2.
Aluminum Body Repairs Part 2 After bouncing an 8-pound sledgeham-
mer off the side of our new long-term 2015 Ford F-150, twice, I went undercover and drove it to our local Ford dealer, Santa Monica Ford, for repair. As explained in Part 1 of our adventure, the idea was to test the hypothesis that when the aluminum body of our 2015 F-150 is damaged, it takes longer and is more expensive to repair than a more traditional steel-body pickup truck. Ford claims the 2015 Ford F-150 is up to 700 pounds lighter thanks to its aluminum panels, which increases overall fuel economy and payload.
Mix technology system and can be a portable or central installed system ● Work area separation / isolation system Work separation can be an aluminum separation (Curtain) system or a separate room. Aluminum vehicles undergoing repairs must be able to be separated from vehicles undergoing steel repairs ● Specialized aluminum SPR rivet gun Approved by the Ford Paint & Body Technical Center.
This might seem like a complicated list, but many body shops have had this stuff for years. Aluminum body panels on cars aren’t really new. They’re just new in the pickup truck segment, so there are dozens of independent shops and Ford dealers near our Santa Monica office that can handle this repair. Finding a certified independent shop, however, or a propDetail of hammer damage. Photo credit: Edmunds.com erly equipped dealer might be But what happens when Thor decides more difficult in other parts of the to use your truck for target practice? country. According to Ford, “the majority When I dropped the truck off at of collision repairs can be completed Santa Monica Ford, the manager told by most body shops today (e.g. bumpers, grilles, mirrors, dings, dents) [but] major collision repairs should be performed by aluminum-capable Ford body shops or National Body Shop Network members.” Along with training from the “Ford F-150 Collision Repair Program” Ford body shops or independent body shops would need some specific equipment to repair the damage on our truck. Here’s a list of the equipment Ford recommends "to be aluminum repair capable”: ● Dedicated aluminum MIG welding system Welder must be 200v and equipped with Pulse MIG Technology ● Dedicated aluminum hand & power tools A small hand tool kit that contains all needed tools has been developed and is required to be purchased through Rotunda ● Dedicated aluminum dent extraction system Dent extraction system must contain an aluminum stud welder, heat gun, pyrometer, aluminum hammers and dent extraction system ● Dedicated aluminum Wet Mix air filtration system Dust extraction system must be a Wet
14 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
me they would definitely be repairing the panel, not replacing it. Perfect. It would take “seven to ten business days” to finish the job and they welcomed me back to take photos of the process. Less than a day after I handed over the keys, though, I got a call from the body shop. The service advisor had misquoted the price of a part and they needed my approval to move forward. Ruh-roh. The second time I hit the truck, the taillight cracked, and even though it still functioned properly we wanted to fix it. Ideally, we’d replace just the broken piece, the lens. Unfortunately, it’s permanently mated to the housing and Ford only sells this part as a single unit. What’s more, we got our F-150 in the Lariat trim level. That means it’s equipped with (amongst other things) a blind-spot monitoring system. The sensors for that system are housed in the taillight and as you might expect, this all led to a higher price for the taillight assembly than previously expected. Much higher. The price jumped from $106.28 to $887.25. For a taillight. Without much of a choice, I approved the price increase and thanked the shop for double-checking with me.
www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 15
Two days later, I checked in on the F-150 to see what progress had been made. The body shop had removed the “Sport 4x4” sticker and the taillight and started dent repair, pulling out the damaged areas. Four days after dropping off the truck (two days after my first checkup) I dropped by the shop again. This time they were in full sanding mode, prepping the truck for paint. If I looked closely, I could see where the sledgehammer had made contact, but the damage was starting to disappear. During the second visit, the service advisor let me know the truck would be finished on schedule, just a few days later. Sure enough, seven days after we dropped off the truck, it was ready to go. Check out Part 3 as we welcome the 2015 Ford F-150 back into our fleet with full details on the cost to repair it.
Aluminum Body Repairs Part 3 “The normal aluminum labor rate is $120 an hour, but since you’re paying out of pocket I’m going to cut you a deal,” the service advisor said, holding back the computer print-out. “I'm only going to charge you our normal rate of $60 an hour but it’s over 20 hours of
labor.” When I dropped off our long-term 2015 Ford F-150 a week ago, I couldn’t tell if the advisor was trying to soften the blow of a costly repair or if he was really taking pity on me. There was no “Aluminum Body Rate” on their posted list of prices in the waiting room, just the “Body Rate per Hour” of $60. Whether this was an exaggeration or not, it was a nice sentiment. I lied to the service advisor, so in his mind, I was the victim of a hit-and-run accident and I deserved a bit of leeway. The damage was actually a result of two blows from a sledgehammer. We were testing the theory that aluminum is more expensive to repair than steel and I had lied about the damage to get the most realistic customer experience possible. So far, it seemed to be working. The repair would take “twice as long as steel” but I’d be paying half the standard rate. It was time to break out the calculator and do some funky math. He handed over the sheet and explained each item. After straightening the panel as best they could, they’d apply a specialized aluminum paint filler, then primer, paint, color sand and buff the panel, replace the taillight and put on a new “Sport 4x4” sticker.
16 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
For “seven to 10 business days” worth of work, the price of labor and parts totaled $2,082.73. My eyes went wide, but I signed the estimate, declined a rental car and handed over the keys. As I mentioned in Part 2 of the story, the price went up quickly when the taillight turned out to be more expensive than previously thought. Instead of the $106.28 for a standard taillight, our Lariat’s LED light with the blind-spot sensor cost $887.25. With the subsequent increase in sales tax, the repair bill totaled $2,938.44. Ouch. True to their word, the body shop finished the work a week after I dropped the truck off. And to my eye, they did an almost-perfect job. The panel is straight, it retains all the original character lines and the paint is matched perfectly. The only real flaw is the placement of that “Sport 4x4” sticker. It’s about two inches too far to the left of where it should be. Dan Edmunds came with me to check on the repairs and neither of us noticed at first, but it certainly stands out now that our more eagle-eyed co-workers have pointed it out. Side note: We’ve contacted the dealer and they’ve ordered a new sticker. An outside vendor does the
sticker placement and they’ll come to us to fix it, free of charge. I should note that repairing aluminum differs from repairing steel in several ways. It requires special tools (re-read Part 2 if you missed those details) and it stretches in different ways than steel. As a result it can require a more experienced hand. It seems like the staff at Santa Monica Ford has that part covered. But what about replacing body panels all together? If we had been in a more serious accident, with another vehicle involved for instance, and we needed a panel replaced, could it take a shop longer to get that panel in stock? According to Ford, the body panels aren’t any more expensive now that they’re made out of aluminum. The price for a replacement right rearquarter panel on a steel-bodied 2014 F-150 is $967.48. And for the same panel on an aluminum-bodied 2015 F150? $967.48. That's nice to hear, but what would it have cost to fix a steel panel rather than replace it? As you’ll notice in the above photo of the estimate, there are 24.4 hours of billed labor. Of that, 20 hours are listed for the repair of the aluminum body See 2015 Ford F-150, Page 46
www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 17
Large Portion of Antitrust Multidistrict Litigation in FL Dismissed, Refiled by Plaintiffs by Stacey Phillips, Assistant Editor
Judge Gregory Presnell in Florida has dismissed a large portion of a lawsuit in multidistrict litigation court accusing State Farm Mutual Automobile Insurance Co. and 40 other insurers of conspiring to suppress reimbursement rates for vehicle damage repair costs. However, the plaintiffs have already refiled claims that were dismissed without prejudice. John Eaves of Eaves Law Firm in Mississippi, the lead lawyer for the plaintiffs, said this was not a surprise. “We anticipated [the dismissal],” said Eaves. “This is what was done the first time we filed a complaint in Florida.” “My interpretation is that [Judge Presnell] wanted a lot more of the actual facts and details in the complaint… instead of something so general,” Eaves told Autobody News. However, the ruling may be a setback for hundreds of other auto repair shops alleging similar claims against insurers in the multidistrict litigation in the District Court. Shops across the country have provided Eaves with an abundance of information that he has now incorpo-
rate into the revised complaint. He said it is a longer document, much more detailed and comprehensive. As of the date of the ruling, 22 other cases initially filed in numerous states, including Indiana, Kentucky and Virginia, are currently before Judge Presnell for coordinated pretrial proceedings. In re Auto Body Shop Antitrust Litig., MDL No. 2557, complaints filed (M.D. Fla.). According to the plaintiffs in the Florida action, the defendants exercise control over labor and repair costs by entering into DRPs with body shops. In exchange for providing certain concessions of price, priority and other matters, the defendants list the shops as “preferred providers.” However, the defendants, led by State Farm, allegedly have conspired to use the DRPs as a way to set maximum price limits on the shops’ products and services, according to the suit. If the labor rates are deemed unacceptable, the defendants demand a lower rate, arguing the higher rate does not conform to the market rate and therefore violates the DRP, the plaintiffs argued. Further, failure to comply with the
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defendants’ demands results in removal from the preferred-provider program or improper “steering” of customers away from the “noncompliant” auto body shop’s business, the plaintiffs say. But Judge Presnell ruled that the plaintiffs offered no details about how or when the insurers entered into the alleged price-fixing agreement. The fact that a number of defendants have indicated an unwillingness to pay more than State Farm has to pay for parts or labor also does not, itself, violate the Sherman Act, he said. “It is not illegal for a party to decide it is unwilling to pay a higher hourly rate than its competitors have to pay, and the fact that a number of the defendants made statements to that effect does not tip the scales toward illegality,” Judge Presnell wrote. The plaintiffs also failed to establish that the defendants may have engaged in boycotting activity by allegedly steering customers away from noncompliant shops, according to the ruling. “There is no allegation that any defendants refused to allow any of its insureds to obtain a repair from such a shop or refused to pay for repairs per-
formed at such a shop,” the judge said. The plaintiffs also cannot move forward with their claim for tortious interference with business relations, he said, because the defendants had an existing financial interest in the relationship between their insureds and the plaintiffs and were therefore “privileged to interfere in that relationship.” “For tortious interference to be unjustified, the interfering defendant must be a third party, a stranger to the business relationship,” he said. Judge Presnell did, however, permit the plaintiffs to continue with their claim for conversion, which alleges the defendants failed to make full payment for certain labor and material costs. Other defendants in the action include 21st Century Centennial Insurance Co., Allstate Fire & Casualty Insurance Co., Geico General Insurance Co. and Hartford Accident & Indemnity Co. The claims brought by the plaintiffs included: quantum meruit, unjust enrichment, quasi-estoppel, tortious interference with business relations, conversion, and violations of the Sherman Act in regards to price-fixing. All but one count, See Multidistrict Litigation, Page 40
www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 19
AASP/NJ Hosts NORTHEAST™ 2015 Automotive Services Show March 20–22 by Chasidy Rae Sisk
March 20 is right around the corner, bringing with it AASP/NJ’s 38th Annual NORTHEAST™ Automotive Services Show. The increasingly popular event will be held March 20th through 22nd at the Meadowlands Exposition Center, located at 355 Plaza Drive, Secaucus, NJ, 07094. The association has planned an informative schedule of seminars, demos and other industry eventsto ensure that attendees receive as much value as possible from the weekend. Charles Bryant, Executive Director of AASP/NJ, explains, “We host the Northeast Tradeshow to allow everyone in the industry to come together and see all of the new and exciting things that are being introduced into the industry, and allow Charles Bryant National Leaders of the industry to speak at the Leaders Meeting about what is going on in other locations around the Country.”
Bryant is very excited about this year’s NORTHEAST™ event. “Members of the industry will have an opportunity to attend training meetings and seminars while attending the show to see what new technology is being introduced in the industry all in one convenient place as well as having the opportunity to pur-
exception. This year will be one of the best shows, if not the best show, in many years.” Although NORTHEAST™ 2015 does not officially begin until Friday, March 20th, the National Automotive Service Task Force (NASTF) will be holding their Spring 2015 Board of Di-
chase items right at the show for discounted prices not available at any other time. Like in recent years, the AASP/NJ NORTHEAST™ Tradeshow continues to grow in leaps and bounds. Based on the pre-registrations and participation already taking place, this year will be no
rectors and General Meetings on Thursday, March 19 at the Meadowlands, in conjunction with the tradeshow. Thursday will begin with a closed Board meeting from 8 AM until noon, followed by NASTF’s General Spring Meeting from 1–4:30 PM. The meeting will
20 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
begin with the Validation of Collision Repair Workmanship, where a panel of industry professionals will debate whether self-appraisal is sufficient or if OEMs should require the use of third party validation. The panel will include an OEM, collision repair shop owners and third party validation contractors. While pre-registration is not required, it is encouraged and can be accomplished through the tradeshow website. On Friday morning from 8–10 AM, AASP National will hold their Spring Board meeting with affiliate chapters from around the country to review the association’s ongoing business operations and consider new member benefit offerings. Board members will also receive updates on the activities, initiatives and programs occurring at the affiliate level. From 1–5 PM on Friday, AASP/NJ and SCRS will co-host the 2015 East Coast Resolution Forum and Leadership Meeting. Historically, this forum has provided industry leaders and influential representatives with the opportunity to network and to share the problems encountered in order to pose possible solutions. AASP/NJ anticipates “this year’s forum to provide the
same stimulating dialogue and insight that we have come to expect from the event with the objective to have others shares their successes or challenges that help the group learn in response to specific questions posed by each attendee.” Although attending this event is free, pre-registration is required. For an engaging Friday evening, attendees will want to check out “East Meets West: Montanez and Clark Tackle the Issues” from 6:30–8:30 PM. Two of the industry’s most influential and popular speakers, Larry Montanez of Lange Technical Services and P&L Consulting, and Aaron Clark of Assured Performance Network, will discuss and debate the latest issues impacting the collision repair industry. Topics include training, insurer-mandated parts procurement, autonomous cars, labor rates, paint and materials reimbursement, lawsuits, cycle times, aluminum, post-repair inspections, and consolidation. The debate will conclude with an open mic forum, giving attendees an opportunity to ask questions. Pre-registration is required to attend. Saturday, March 21 offers a variety of educational seminars and demonstrations throughout the day. AASP/NJ has scheduled two I-CAR courses for
the event, both taught by Peter Fryzel and Mike Bonsanto. The morning course, “Aluminum Panel Repair and Replacement (APR01),” will focus on what considerations should be taken into account when deciding whether to repair or replace aluminum panels. In-
AASP/NJ 2015 NORTHEAST Trade Show will be held at the Meadowlands Exposition Center
structors will also discuss how making the right decision can help to improve certain KPIs, such as cycle time and CSI. The afternoon I-CAR course, “Vehicle Technology and Trends 2015 (NEW15),” provides an update on new and changed technologies. Additionally, the course will include an “auto show view” of vehicles that will be commonly seen in shops in the near future, and instructors will share information that collision repair profes-
sionals need to be aware of in order to perform complete, safe and quality repairs. Both I-CAR courses are feebased and require pre-registration. Besides the I-CAR courses, NORTHEAST 2015 will feature several more informative seminars. Saturday morning starts off strong with two one-hour seminars beginning at 10AM. In “Damage Analysis and Blueprinting,” Lee Rush, Manager of Business Consulting Services for Sherwin-Williams, will explore the importance of a complete and accurate repair order as well as its role in a lean collision repair facility. Simultaneously, Derek Naidoo, President and CEO of NitroHeat Worldwide, will present “Lean Processing in the Paint Shop: Painting with Nitrogen.” Sponsored by FutureCare, this seminar will focus on techniques used to maximize efficiency and cost savings. The final two seminars this year are geared toward shop owners and managers. From 11:30 AM until 12:30 PM, Lee Rush will present “Administration Performance Management,” outlining specific steps to a successful performance management strategy and detailing its role within a lean collision facility. “Stop Leaving Money on the
Table,” presented by John Niechwiadowicz of Performance Consulting Services, will debut from noon until 2 PM with an encore presentation from 3–5 PM. For $25, attendees can learn how accurate quality estimates impact a collision repair facility’s financial health and many other critical aspects of the process. Throughout the weekend, several demonstrations will also be held. Ford Motor Company’s Damageability Product Concern Engineer, Larry Coan, and the OEM’s Senior Engineer for Paint and Body Repair, Gerry Bonnani, will present “2015 Ford F-150 Repair Information” three times over the course of the weekend at the following times: Friday at 7–8 PM, Saturday at 11 AM–12 PM, and Sunday from 11 AM–12 PM. During this demo, Ford’s representatives will provide examples of the new 2015 F-150’s improved repair elements. They will also discuss Ford’s enhanced service information, available training courses, and the tools and equipment recommended for repairing the 2015 Ford F-150. At 8:30 AM on Saturday, Larry Montanez will cover “Estimating and Diagnosis of Structural Damage on See NORTHEAST ™ 2015, Page 37
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Continued from Cover
Chicago Foundation
said Cantrell-Kraig. “To this day, I would trust him with a blank check.” Cantrell-Kraig now dedicates her life to helping women in the same predicament she was once in, through the Women with Drive Foundation
Delana, WWDF car donation recipient, steps into her refurbished white Saturn sedan
(WWDF). She started WWDF threeand-a-half years ago, a dream she had wanted to make a reality since 1997. “I have a media background, not a nonprofit administrative background,” said Cantrell-Kraig. “One of my friends, financial analyst Carol Roth told me, ‘Expect it to take three times as long as you think it will and for it to cost three times as much.’ She was right.” For the first three years, CantrellKraig funded the operation with her personal savings. She spent sixt to nine months researching where similar organizations had failed, to be sure her project would be worth the investment. “The momentum we’re building is significant and every day we forge one more meaningful relationship designed to provide a solution to systemic, generational poverty,” said Cantrell-Kraig. The foundation, which started in Iowa and recently relocated to Chicago, IL, donates refurbished vehicles to female candidates who are in a crunch. So, what categorizes a Women With Drive? “The number one quality we look for in a candidate is self-determination. She must want a new life for herself. We do not approach the equation with the idea of ‘saving people,’” said Cantrell-Kraig. “We partner with women in transition, women with drive. These are women who know that they want something different; they just lack access, transportation and systems to teach her how to become herself. Technically, the qualifi-
cations are listed on our website: must outright, in order to satisfy insurance be drug free, employed or engaged in liability issues. For example, Marcie’s a program designed to help her be- 1999 Honda Accord had a Kelly Blue come independent.” Book value of $4,900, but she purLocal nonprofits, including Jane chased it for the cost of tax and title Addams Resources Corporation, the transfer, which came to around $200,” Department of Human Services, and explained Cantrell-Kraig. “This gives various churches, lend a hand in the the participant a ‘stretch goal’ or a selection process. stake in her own future and absolves “These capacity-building organizations help provide the support for the two years our participant is in the programs,” said CantrellKraig. An application and interview with the WWDF board is also required for consideration, she added. “I remember the first time I opened a letter from a woman who applied for a Marci (center) poses in front of her own form of transportation car,” said Cantrell-Kraig. “I thanks to the Women With Drive Foundation had to sit down and cry for a second, us from absorbing risk. Participants gathering myself. It hit me like a ton of are required to carry mandated state bricks: someone was putting her trust insurance on the car for the entire time in me and our organization to help her she is in our program. She also pays and her children. It was humbling and for her own fuel. Once she purchases reminded me of the quote from Jim the car, it is hers.” Rohn, ‘Success is something you atCantrell-Kraig said the WWDF tract by the person you become.’” has not partnered with other car giveBefore the car giveaway process away programs, such as Recycled can start, a functional vehicle must be obtained. As of now, cars are donated through churches or privately by individuals. According to Cantrell-Kraig, usually it’s a scenario where the children have gone off to college or an elderly relative can no longer drive, leaving the vehicle unused. CantrellKraig said she initially approached car dealerships, but they wanted the foundation to buy the cars, which would’ve been out of their budget. However, she said they are still open to form a partnership with either a dealership or car rental company, such as Hertz, Enterprise or Carfax. “It’s one of the reasons we moved to a larger metropolitan area,” Cantrell-Kraig added. Once a vehicle is donated, it is taken to an Authorized Service Vendor who appraises it, and arranges for WWDF to take title of the car. If it isn’t salvageable or it’s worth “too much” for a participant to maintain and insure, the vehicle or vehicle parts are sold and 100 percent of the proceeds benefit WWDF. If it is worth refurbishing, a mechanic will perform repairs and tune-ups to ensure the recipient has a safe, functional vehicle. “The women [then] buys the car
22 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
Rides, but hopes the recent move to Chicago will open more doors for the foundation. She also said she is looking to form partnerships with rideshare companies or on-demand transportation services like Zipcar, Enterprise, Lyft and Uber. When asked about the reach of her program, Cantrell-Kraig responded, “We are not national yet, but our boards, local and national advisory, are exploring the method and means to scale to meet a national need. Our Articles of Incorporation are in Iowa, but…we are currently transferring our legal apparatus to operate [in Chicago]. That said, our existing legal structure enables us to award vehicles in every state.” Cantrell-Kraig stresses the importance of working together to improve the lives of women and children in the United States. “Each of us has been in a place where the kindness and confidence of another has helped alter our outcomes,” she said.
www.autobodynews.com C
www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 23
What are crash parts? p Take a closer look. Your insurance coverage. g Choosing th he right bod dy sh hop. All AGreat parts are not created equal. equal Co ollissio on 101. What’s a Info for Shops DRP and whyy sho sho ould I caare? re? Where Where d do o aairbag irbags come come ffro rom? m? C Counterfeit ounterfeit airai bags - what you need to know. Take a closer look. What are crash parts? Your rights as a consumer. Your insuraance coverage. Ch hoosing the right body shop. Helpiin ng you through the colllision repair pro oce ess. Collision 101. What’s a DRP and d why should I care? Where do airbags co ome from? Counterfeit airbags - what you need to know. Take a closerr lookk. What are crash parts? Your righttss as a consumer. Your insurance cove erag ge. Choosing the right body shop. Whatt are crash parts? Your riights as a co onsumer. Your insurance coverage e. Choosiing www.collision.honda.com th he riigh ht bod dy sh hop. All paarts t are not created equal. Take a closse ser look. Collision 101. What’s a DRP and why w should I care? Where do airbag gs come from? Counterffeit airbags - wh hat you need to know. Take a closse er look. What are crash parts? Your rights t as a consumer. Your insurance coverage. Choosing the right body shop. o Helping you through the colliission repair process. Collision 101. What’ss a DRP and why should I care? Wh he ere do airbags come from? Counter feit airbags - what you need to know. Takke a closer look. W What hat are are crash crash parts parts? You ur rights as a consumer. Your insurance coverage. Choosing the right bo ody shop. What are www.airbagaware.com crash parts? Yourr rights as a consumer. Your insurance coverage. v Choosing the right body sh ho op. All parts are not created equal. Take a closer look. Collision 101. What’’ss a DRP and why should I care? Where do d airbags come from? Counterfeiitt airbags - what you need to know. Take a closer look. What are crash parts? Your rights as a consumer. Your insurance ccoverage. Choosing the right bod dy shop. Helping you through the collisio on repair process. Collision 101. Wh haat’ss a DRP and why shoulld I care? Where do airbags come from? Counterfe eiit aiirbags - what you ne eed to know. Take a closer look. What are crash p paarts?? Your righ hts as a consumer. Your in nsu urance coverage. www.crashrepairinfo.com Choosing tthe he e rrig ig gh ht b ht body ody sshop. hop. Y Your our rights rights as as a cons consum consumer.. W What haat are crash parts? You ur in nsuran nce coverage. g Choo sing the right body sh hop. All parts Great Info for Consumers are not created equal. Helping you through the collision repair process. 24 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
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Midwest News
Missouri Industry Veteran Focuses on Shop Profits with Ed Attanasio
Most of the collision industry in Missouri is familiar with David Tritz, because he knows the business inside-and-out and isn’t afraid to share his expertise and express his opinions. A 59-year-old second-generation body shop owner, Tritz is always looking for a better way to fix cars and to make a profit, which has become harder and harder over the years. A 40-year veteran of the collision repair industry, Tritz grew up at Don’s Auto Body in St. Charles, MO, which opened in 1969 when his father purchased the business. While other kids were playing after school and during their vacations, Tritz was learning the collision game from the bottom, by sweeping the floors, sanding cars and whatever elese was needed. In 1974, he started working at the shop full-time, absorbing as much information as he possibly could. Calling him a “lifer in this business” and proud of it, Tritz now
has his son Adam managing Don’s Auto Body. Although dad is not going to retire any time soon, he’s happy to see how well Adam has done in his role as the company’s GM. We sat down to discuss several aspects of the body shop business, but David Tritz the conversation kept going back to the one topic that most shop owner can never get enough of—profits. “Where do we start?” Tritz said. “We could talk about profits all day long, because there is a broad spectrum there. First you have to define profits by determining where the term profit comes from, because that’s the bottom line. If you’re going to try and improve profits then you really need to drill into the different departments that make those profits possible. So in our industry the profits come from about
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
three or four different income streams, whether it’s labor, parts, materials or sublets.” Should a shop squeeze more money out of its labor to makes its numbers? “The one area that people seem to focus on the most is the labor end of it, because that is where the vast majority of their sales come from,” Tritz said. “So where do you increase your profits on labor and if so, what are the numbers you want to hit? And that’s where Key Performance Indicators (KPIs) come into play. Over the years, we started hearing more and more about KPIs, to the point where there are literally hundreds and hundreds – it kind of gets lost in the mix. So there are standards for gross profit that shops should devise within certain departments. They’re not the law, but they’re guidelines and they’re good to know for if and when you adapt them to your particular business.”
Marking up parts can be a big profit center if it’s done correctly, according to Tritz. “The secondary area where profits are achieved is parts. Parts are becoming more of the overall repair ticket. So it becomes really important for the operator to understand the metrics, percentages and importance of gross profit dollars achieved through parts purchases.” “Here’s a thing that just came to light within the last 60 days and then it vanished. GM announced that they were going to discontinue sharing list prices with the information providers – in other words ADP, CCC, Mitchell and whomever else might be out there. So if there aren’t any list prices basically it’s going to be cost plus, just like with used parts. That’s a big deal in our industry. After announcing this, GM must have re-thought it, because they just bailed on it. They just stopped within a week after making the announcement and said we
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changed our mind – ‘we’re going to postpone this until sometime in the future.’ I don’t know what happened there but some people said ‘Hey this isn’t going to work’ and I don’t know if it was the insurance industry or the suppliers, but I guarantee that once they start that system it’s going to be more and more important for shop owners and operators to understand the importance of their profit dollars on parts in relationship to overall gross profit.” “And then again it becomes important to know that KPI number, whether it’s 25% or 40% or whatever it might be. But the reality is that parts will definitely be going up as a percentage of total sales. Labor is going down and parts will be going up. If you had a $1,000 ticket say 10 years ago, you could maybe say that you had somewhere close to 50% in labor and maybe somewhere 30-35% in parts and other miscellaneous items. Today what you’re seeing is more like 4546% in labor and maybe 35-38% or even higher in parts. That sounds like a real good number as long as you understand it. If the OE’s discontinue list prices, another number that becomes really important for shop owners to un-
derstand is the difference between markup and discount, because it can make a big difference,” Tritz said. “If you mark something up 43% you’re going realize a 30% gross profit, for example. And logically, if you mark it up 25% - you’re only going to get a 20% gross profit. That’s a whole lot different than a list price of $100 and then a 30% discount--those numbers are very important and it’s obviously going to impact the bottom line in a big way.” Shops can be profitable, even during volatile times. “Can it be done—absolutely. With many shops, they look up at some point and say ‘Uh oh, I don’t have enough money to pay the bills, but we’re doing more work than ever.’ They’re not charging enough to cover their cost, which means they’re just trading dollars,” Tritz said. Many shops are looking for new sources of revenue to be more profitable. “So when we get into profits, it’s important to understand the revenue streams for your particular business, whether it’s parts and labor, materials or sublets. It could be PDR work, towing, glasswork, detailing, whatever,” Tritz discussed. “Some shops are adding on other services in
the mechanical line or something of that nature to try to get those profit dollars in there. So you know it’s really not rocket science; it’s just a matter of understanding where the money comes from and then understanding how much money you need out of each department. In the end, you may have to raise prices to hit the profit numbers you need.” Admin costs can cripple some shops and Tritz is concerned about this recent development in the collision industry. “There’s another thing that’s kind of a pet peeve of mine and I call them administrative costs. The fact that it takes more and more administrative staff to process the same claim than it did several years ago is a concern for all of us and it affects profits. It’s a cost we didn’t have to deal with say five years ago and many of us have figured out a way to absorb them or eat them,” Tritz said. “I advocate charging an administrative fee
and having it as a line item on a repair ticket. Why do we have to pay for it, rather than passing it on to the insurance company or to the consumer or whomever, but the fact is that this cost must be absorbed or offset in some way, shape or form.” “Before, you had four production people for one administrative person and it ran efficiently. But in today’s world, it’s closer to one to one. For every person touching the car you have somebody doing the administrative work, what we call a ‘non-productive’ employee. To me a ‘non-productive person’ or a ‘non-billable person’is somebody that doesn’t touch the car,” Tritz added. “Should we markup these administrative costs? I would be willing at this particular point just to pass them on to either the insurance companies or the customers. I don’t believe that they need to be a source of profit, but I think we need to be reimbursed for them.”
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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 27
Maaco President Goes “Under the Hood” to Inspect His Business on Award-Winning Reality Series by Stacey Phillips, Assistant Editor
When Maaco’s President Jose Costa recently went “under the hood” to inspect his company on the CBS television show Undercover Boss, he said nothing could have prepared him for the unexpected meaningful experience he gained. “I went on this journey with an open mind, to learn as much as I could,” said Costa. Relatively new to the company, Costa had only been hired a year earlier. “I felt that it was a good opportunity to go undercover and truly see the operation from a blank, unbiased perspective,” said Costa. “I wanted to see it uncensored—what truly goes on behind the scenes. In January, Costa was featured on the Emmy Award-winning reality series that features corporate executives going undercover in their own businesses. In the episode, he experienced a day in the life of four MAACO employees, during which he sanded, prepped and painted vehicles. He said that he wasn’t expecting the work to be so physical and labor intensive. “I think part of the premise of the show is to make the boss look like he doesn’t necessarily know or understand how hard it is,” said Costa. “The truth is that it is very hard to do the type of work that we do in our body shops day in and day out.” He said the experience was very eye-opening to hear from the franchise owners and gave him a great impression of what a typical day is like at a franchise. After going through this unique experience, Costa said he is more motivated than ever. “I got tremendous satisfaction from helping employees and franchisees realize their professional and personal dreams. While on the show, I came to realize that I could make a difference to employees on all levels of the Maaco Corporation.” He said his favorite part of the show was giving the rewards away to the employees. Originally from Venezuela, Costa said a large part of his career has been in franchising, working with KFC, Yum Brands and Burger King. “My drive comes from my family’s values and upbringing,” said Costa. “My grandparents and parents were immigrants who came from Europe to Latin America with a dream to succeed by working hard.”
When Costa joined Maaco in 2013, his goals were clear. “The board gave us the challenge of doubling the size of the brand to close to 1,000 lo-
pany plans to change this perception through their marketing and advertising campaign. Costa said there are three main components.
Maaco President Jose Costa before receiving his makeover for Undercover Boss
Costa dressed for his undercover job as a Maaco technician
cations by 2020 and doubling sales from $500 million to $1 billion in five years,” said Costa. He said there’s a roadmap to follow in order to reach these goals and it involves innovative thinking across the company. “Part of the challenge was transforming a 43-year-old brand,” said Costa. “It was a market leader in many ways but it was also caught in the 1970s.” Over the last two years Costa said the company’s advertising has changed dramatically. Approximately 20 percent of their budget is being invested in revamping their social, mobile and digital operations. One of the company’s major goals is to bring more technology into the operation. Maaco began working with the company AudaExplore in 2013 to develop a production management system and customize an application they named One Maaco. (see accompanying article: AudaExplore Technology Driving Performance in Collision Repair Shops, p.38) Some of the features include mobile estimating, online appointments, electronic tracking of inventory and parts management and payroll. Costa said these additions have already improved efficiencies and franchise owners have noticed a huge increase in profitability. “Historically, the brand was positioned more around paint and the truth is we do more than $100 million in collision work and not a lot of people know about it,” said Costa. The com-
28 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
Maaco also recently announced it is bringing back its “Uh-Oh, Better Get Maaco” slogan first used in 1981. From unhappy neighbors to angry deer, Maaco commercials will follow a modern family and the “uh-ohs” that bring them to Maaco. Another change at the company is in regard to education. Maaco University was shortened from four weeks to three weeks and fieldwork has been incorporated in the training process. With more than 350 franchise owners operating nearly 500 locations, Costa said part of the challenge was how to get them I-CAR certified. A quarterly boot camp was implemented with the assistance of I-CAR. Now 20 to 30 owners are brought in for an accelerated course where they complete the hands-on training portion and then continue with online classes. Close to 65 centers have been certified through this program. Costa said by certifying the owners and then having them train their own employees, it has benefited the franchises. “It improves retention and it improves the moral of the shop,” said Costa.
First, the company introduced #MAACOver in 2013 to encourage social conversations through Facebook, Twitter, LinkedIn and YouTube. Next, the wording “North America’s Bodyshop” will be incorporated on almost all of their buildings, signs and materials used in 2015.
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office next door to a large retail chain like Target or Wal-Mart. “We wanted to be more relevant to women,” said Costa. After conducting extensive research, Costa said they found “Women were skeptical to do business with us because we used to advertise $299 and $399 and the average repair order was around $1,000. It was that bait and switch mentality that
we wanted to very clearly and in a transparent way show the consumer why the price point goes up.” To help accomplish this, Maaco incorporated 30-second videos that explain the repair process. Costa said these changes have improved efficiencies but there have also been challenges. They found too many things were incorporated the first year and it was difficult to measure the impact. He said some of the programs worked and others did not. One example is when the company decided to move away from using price advertising in April 2013. “By early June we had to put it back on because it hurt us tremendously. We’re really sensitive to price even if we like it or not, consumers react to our price point,” he said. Although there were many challenges that year, the company still had positive sales of three to four percent growth. In 2014, Maaco ended the year with more than six percent growth. “For the first time in the history of the brand we crossed $20,000 average weekly sales,” said Costa. The average center reaches $1 million a year and he said the goal is to con-
tinue having the franchise’s bottom line grow. “The more profitable the franchises are the more they will invest back into the business,” said Costa. “If you bring innovation and other options for the franchise owners to grow and at the same time they’re making more money, it’s a win win for both the franchise owner and the franchisee.” Maaco is part of Driven Brands, the Charlotte, NC-based corporate parent of automotive companies including Meineke Car Centers, Econo Lube & Tune and other automotive-related businesses. The episode of Undercover Boss can be viewed online http://www.cbs. com/shows/undercover_boss/video/4 05E9026-1D3C-E5EC-B12B93BB9B4DFE03/undercover-bossmaaco/
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One of the projects Costa said he is most excited about is the idea of a retail concierge service where the sales office is separated from the production facility. Over the last 18 months, Maaco has been testing this concept at 13 locations, including Chino Hills, CA and Marietta, GA. The idea is to set up a 1,000 square foot small Maaco
Costa and Maaco employee Christian Soto, who works at the Orlando, FL franchise on Orange Trail Blossom. Photo credit: CBS
30 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
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3-C Body Shops
sought to receive due compensation for our efforts” stated Juniper. “The costs involved in processing total losses are often higher than the amounts State Farm had been willing to provide for and our ongoing efforts to amicably resolve the issues on behalf of our customers were unsuccessful. The only recourse left was to seek a court’s ruling on the matter; and as such, I took an Assignment of Proceeds (AOP) from our customers and sought recovery on their behalf.” Juniper went on to state: “We are pleased to have settled this group of cases and I presume State Farm is as well. It is never a good situation for the customer when an insurer and repairer clash over such issues, especially when litigation results. I’m confident the settlement will enable our two companies to better serve the needs of our customers and our respective businesses regardless if a vehicle is repairable or should be deemed to be a total loss.”
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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 31
Midwest Associations
ASA-IN Holds First Official Meeting of 2015 with Chasidy Rae Sisk
On January 20, the newly formed ASAIN held their first meeting of 2015 at Ivy Tech College in Evansville, IN. With 75 owners, managers, service advisors and technicians in attendance, or-
Mike Keown, sales consultant for Jasper Engines (left) and Zack Bawel, president of Jasper Engines (center) speak during ASA-IN’s first meeting
ganizers Vernie Menke and Mike Keown praise the meeting’s success. “It went great, and we had a great turnout. Everyone was excited about how things with the association are going. Attendees were very involved, and there was a lot of sharing.” As the meeting began, attendees were split into two rooms; one room
held owners, managers and service advisors, while the technicians occupied the other room. Both groups were served a meal, sponsored by Jasper Engines and Transmissions, as they engaged in roundtable discussions. The owners’ roundtable discussion about the willingness to change in order to move forward was led by Zach Bawel, President of Jasper Engines, and Mike Keown, sales consultant for Jasper Engines. Menke says Keown “has done a huge part in
Brad Boeglin, leader of new product development for Jasper Engines, presents a slide show on computer programming
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
helping us get this chapter started and deserves a lot of credit.” After the hour-long roundtable discussions, both groups reunited in one room for computer programming training which was led by Brad Boeglin, leader of new product development for Jasper Engines. Boeglin showed a training video and also brought computers and programmers to demonstrate computer programming on the overhead screen. In between ASA-IN’s first meeting in 2014 and their January 20th meeting, the association formed a leadership team to discuss how to move forward. During the roundtable discussions, both groups created and prioritized lists of desired training so the association could determine the type of beneficial education to provide members going forward. ASA-IN’s next meeting has been scheduled for April 14, and the owners’ roundtable discussion will focus on financial information and how to become
more profitable. The technicians will attend a one-hour class on Lab Scope, followed by a two-hour auto lab with
During the roundtable discussions, both groups created lists of desired training so the association could determine the type of education to provide members going forward
on-vehicle live training. The association also hopes to begin the Board of Directors election process at their next meeting. ASA-IN has decided to postpone their expansion into Northern IN until they’re more organized, but they hope to resume those plans after their April 14th meeting.
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AudaExplore Technology Driving Performance in Collision Repair Shops by Stacey Phillips, Assistant Editor
With more collision repair shops adopting technology and becoming digitized, the result has been increased efficiency, higher productivity and greater customer satisfaction. Brian Greenley, a Maaco franchise owner in Littleton, CO has found his business has become more streamlined since implementing software and a customized application called One Maaco from the company AudaExplore. He said this has increased his shop’s cycle time and improved the way they measure performance. “Managers now have more control over day-to-day operations, allowing our technicians to work on more repairs per day, which increases the overall profitability of our shop,” said Greenley, who runs the most successful Maaco franchise in the chain. Growing from $400,000 in revenue in 1991 to over $5 million in 2014, he projects his franchise will break the $6 million mark this year. For more than 40 years, AudaExplore, a U.S. business unit of Solera Holdings, has offered a variety of technology options to auto repair facilities for the various stages of the repair process. The company offers five different technology platforms for the collision repair industry: Estimating, Parts Management, Repair Management, Driver Experience and Decision Sciences. “Our goal in developing these platforms is to provide the tools that help repair shops and insurers run profitable and productive businesses as they move toward a more digitized environment, while providing top-notch customer service every step of the way,” said Gordon Henderson, Vice President of Collision Repair Solutions at AudaExplore.
Estimating & Parts Management Henderson said most collision repair shops are probably familiar with Audatex Estimating. This estimating solution provides repairers and insurers the ability to quickly access and visualize data in order to write a more accurate repair plan for a damaged vehicle. “We collect information on thousands of parts that go into a car along with the associated labor time that it takes to remove, repair and re-install those parts and put it in one place, allowing for a quick calculation of what the cost of repair to be for that vehicle,” said Henderson. Used since the
1980s, he said that a recent enhancement to their estimating solution is the integration of APU, which allows shops to check for inventory on alternative parts. (Read more about APU and other parts ordering platforms in the next issue of Autobody News.) In September 2014, the company launched a new version of estimate
check, which includes an advanced analytics model to provide enhanced decision support. Henderson said this allows shops to conduct a more robust check of the estimate to ensure compliance with insurance guidelines and identify any missed operations. With more sophisticated data and analytics, the technology provides analysis for guidance regarding repair or replacement of parts such as bumper covers, door panels, trunk lids and hoods. “We’ve also done things a little different in terms of how our estimating software works,” said Henderson. “We approach it not just as a computerized estimating tool but as a truly automated, intelligent tool that understands how a vehicle needs to be repaired and helps to ensure that the estimator and repairer make the best decisions possible while minimizing the need for manual intervention.” When a part is selected for replacement, Henderson said the shop is able to view a 3D model that is linked to the database itself. “We understand that in order to replace any given part, there are other parts that may have to be removed or replaced and that additional labor operations may be required to ensure a proper repair,” he said. “AudaExplore automatically includes required operations so the estimator doesn’t waste time digging through PPages in order to find out what they have to manually add to the estimate. This eliminates errors and increases speed, accuracy and consistency.” Henderson said this unique approach allows shops to spend less time researching the related operations and improves cycle time. “Fewer supplements means that you are more efficient and saves time,” he said.
Repair Management The company’s repair management platform includes the Autofocus manage-
34 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
ment software installed at body shops. In the case of Maaco, AudaExplore undertook some fairly extensive customization. Maaco had been using its own software program Polaris, which became outdated. Greenley said they sat down with AudaExplore to develop a management system that would help measure profitability through their performance. “A successful business owner should measure every component of his business,” said Greenley, who was one of the first franchises to implement the software in January 2014. “This tool gives us the capability to measure performance within the business.” Approximately 100 Maaco franchises are now using the software and the plan is for the entire chain to adopt it over the next two years. The Autofocus management software is also integrated with AudaExplore’s estimating so customers are able to receive an immediate quote for all of the work they want completed. “A customer’s attention span is short,” said Henderson. “You basically want to get the information to them quickly, help them make a decision and ulti-
mately try to get the keys to the vehicle on the spot.” He said by streamlining the process and making it more consistent across the franchise, it allows Maaco to increase its ability to capture the keys to the vehicle. “Obviously the more jobs captured means more revenue and more profit at the end of the day.” Because Maaco has a very unique workflow, Henderson said, “…as a franchise model you want to have things work homogenously across the entire network. We’ve customized our solution to help support that goal.” Greenley said this has lead to gains in efficiency and more consistency from location to location. Driver Experience In regards to AudaExplore’s driver experience technology platform, the company offers collision repair shops the Go Time Driver application. Go Time Driver allows a vehicle owner to download an app capable of giving them a 3D representation of their vehicle and the ability to communicate with their auto body shop. “They can request a specific day and
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time, select the shop and request an appointment,” said Henderson. “We’ve had tremendous success with this.” Maaco adopted the Go Time Driver application and customized it for their franchises to better communicate with customers and make it easier for them to understand an estimate. “That’s not done easily through a standard estimate in the industry,” said Greenley. Known as One Maaco, there have been nearly 12,000 downloads of the app since it was first launched during the summer of 2014. Another component of Go Time Driver is the AutoWatch solution that allows a vehicle owner to view the progress of their vehicle and receive updated repair status information through an interactive website. “What we’ve found is that it creates a level of transparency that consumers don’t always associate with repair shops,” said Henderson. “The key to that part of the platform is that by keeping consumers informed, they’re directly tied to a higher overall satisfaction on a claim.”
Decision Sciences The company’s Decision Sciences platform aims to improve a com-
pany’s performance by using visualization tools that make it easier to spot trends. Henderson said the company’s Visual Insight brings analytics to the claims process and allows insurers and repairers to visually represent the data collected to make more informed decisions. “Our decision sciences is really all about creating a set of decision tools that allow the estimator or shop owner, and the insurance client, to make better business decisions moving forward,” said Henderson.
A Consultant Approach Henderson said that AudaExplore approaches each body shop in terms of their unique needs to determine the technology that will be most beneficial to their business. In December 2014, AudaExplore announced it signed an agreement to extend its services to all ABRA Auto Body & Glass locations in the U.S. for two more years. Working with the company since 2010, AudaExplore provides its Estimating, Central Review and Consolidator Dispatch solutions. “Our mission is to repair damaged vehicles right the first time, on time,”
said Tim Adelmann, ABRA’s Executive Vice President of Business Development. “As we grow, AudaExplore’s state-of-the-art technology will continue to help us provide superior service seamlessly to each of our clients through our extensive network of auto body repair shops across the nation.” “Our goal is to make the complicated process of handling a claim much simpler for all parties involved,” said Henderson. “By providing a system that’s highly accurate and connected, we can greatly reduce waste in claims processing activities and help increase overall profitability for our customers such as ABRA.” Henderson said big and small shops, MSOs, insurance companies and independent appraisers are currently utilizing AudaExplore’s various technology solutions. “I think this industry is realizing that consumers are having higher and higher expectations,” said Henderson. “Study after study shows that better communication is directly tied to overall consumer satisfaction, which is directly tied to whether or not an insurance company retains a policy holder or a shop gets repeat referral business.”
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During the week of February 9th, the Indiana Auto Body Association (IABA) held five chapter meetings. Tony Passwater, Director of IABA, said “our meetings went well across the state this week. The attendance is up in some chapters and down in others.” New Albany held their lunch meeting on February 10, while the Bloomington chapter met on February 9 for dinner. On February 11, the Fort Wayne chapter met for dinner. Thursday’s meetings included lunch for the Northwest IN chapter and dinner for the association’s Indianapolis chapter. Several chapters—Terre Haute, Evansville and South Bend—didn’t hold February quarterly meetings. Passwater explains, “We are adding pre-recorded topically timely information from industry speakers and others that wish to provide content without having to commit to four days of travel. This is designed to benefit everyone by reducing costs and keeping our members informed.” The association’s first offering dispelled the insurance media’s “spins” on the MDL litigation filings. John Arthur Eaves Jr. prepared litigation members for their future actions. Members discussed the recent Anderson Cooper 360 documentary and what actions should be taken. See www.iaba.info.
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Plans in Progress for 2015 VISION HiTech Training and Expo by Chasidy Rae Sisk
On March 5-8, the 2015 VISION HiTech Training and Expo will be held at the Overland Park Convention Center in Overland Park, KS. The event, geared specifically to provide management and technical training for automotive service professionals, attracts attendees from all over the United States, Canada and the UK. Sheri Hamilton, Conference Manager as well as Executive Director of ASAMW, says “VISION provides today’s top industry training under one roof. Staying in tune with the changes and evolution of the industry, VISION continues to provide the best training and networking available.” VISION provides innovative, relevant training for technicians, service advisors, managers and shop owners. Their VISION Educator Think Tank program is designed for automotive technology educators and offers training, networking, idea collaboration and discussion forums to propel educators and their programs to the next level.
This year, VISION will be adding two new programs to their roster. On Thursday, March 5, VISION will hold their first annual HiTech Tool Summit and Expo as well as their first Service Advisor Summit. Hamilton expects “the 2015 event to be the biggest event to date. We are excited to launch two new programs and to offer new and innovative course topics to our attendees. We expect attendees to walk away with vital knowledge that will directly benefit their shops.” The 2015 VISION HiTech Training and Expo will continue its tradition of supporting the industry’s future generation by awarding four $1000 scholarships to students pursuing a degree in the automotive technology field. Scholarship recipients will also receive a weekend package to attend VISION 2015, and they will be recognized on March 7 at the Celebration of Independents Awards Dinner. For more information on the 2015 VISION HiTech Training and Expo, visit www.visionkc.com.
Continued from Page 21
NORTHEAST
™
2015
Aluminum-Intensive Vehicles and Joining Methods.” Pre-registration is required for this Metropolitan Car-OLiner facilitated course on the differences between how aluminum and steel vehicles absorb and manage collision impact forces and energy. Montanez will also discuss attachment methods and welding differences. The final demo, “Structural Collision Repair, 2015 GM Vehicles,” presented by GM Service Instructor Jim Mickle and facilitated by NuCar, will take place from 10–11 AM on Saturday. Mickle will cover the three important areas to repairing and replacing a vehicle’s structural components: measuring, cutting and welding. The seminar will also discuss the 2014/2015 Chevrolet Corvette Stingray and aluminum repair procedures for front and rear rails. The tradeshow floor, which will feature a variety of industry vendors and exhibitors, will be open on Friday from 5–10 PM, on Saturday from 10 AM–5 PM, and on Sunday from 10 AM– 3 PM. Featured exhibitors include custom painter Javier Soto who will create
a custom design over the weekend, as well as a guest appearance at BASF’s booth by West Coast Customs’ Ryan Friedlinghaus from 10 AM–2 PM on Saturday. Also that day, Ron Ananian, AKA the Car Doctor, will be broadcasting his nationally syndicated radio talk show live from the tradeshow floor. On Friday from 10PM until midnight, AASP/NJ’s Board of Directors will host their annual Exhibitor Appreciation After-Party with a special performance by comedian Gary DeLena. On Sunday from noon until 2 PM, NORTHEAST 2015 will offer their 7th annual Family Day, featuring a variety of indoor carnival games and sugary treats for the kids. Bryant welcomes all in the industry to make the trip to Secaucus next month for a great event, saying “The AASP/NJ is constantly preaching that the industry needs to be united in our efforts to address the many issues that the industry is faced with. You couldn’t find a better place for collision industry members to network than right here at the Northeast Tradeshow, thus bringing the concept of unity closer to reality.” To register for AASP/NJ’s NORTHEAST 2015, visit www.aaspnj northeast.com.
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Shop Showcase
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Does Being a Green Shop Improve the Bottom Line? with Ed Attanasio
Known as the Greenest Shop in the USA, Selecta Body Shop in San Francisco’s Mission District has received major praise, top reviews and now a prestigious award for running an environmentally responsible business. But the burning question that probably every body shop owner anywhere wants to know is does being green increase profits or in the end, or does it just help the owner to sleep better at night? Do customers care and maybe more importantly—do the insurance companies care?
Owners J.R Hubbard and his wife Jackie have watched as their business has grown without compromising their beliefs about running a business that is better for the environment
profit,” Hubbard said. “But, I also want to do be a fair employer and a responsible member of the business community. Part of being a green operator in a very environmentally-conscious city like San Francisco and maintaining the B-Corp certification means that I can hopefully make money, but also we want everyone to win—my customers, my family, my neighbors and my employees.” It took two years of hard work to turn an old building into Selecta’s new 10,000-square-foot facility and it ate up just about all of Hubbard’s funds to make it a reality, he said. But since starting business in April 2013, the numbers have slowly edged up, to the point where he can say that November 2014 was his first profitable month after fixing 65 cars. “We still want to do 100 cars monthly, because we can handle the volume and that’s been our goal,” Hubbard explained. “The numbers are improving every month and the future looks solid. We picked up two great DRPs during the last four months of 2014 and now we have a total of three. We easily absorbed the increased workload during the fourth quarter and now we’re excited about 2015.” Last November, Selecta Body Shop won a significant award at the 2014 SEMA Show in Las Vegas, when AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) announced that three North American
Being in it to win it when it comes to being 100% green from the first day he opened his doors, Jeremy “JR” Hubbard, the owner of Selecta Auto Body has now been in operation at his current location for almost two years. Since opening, he’s refined his processes and further embraced the green way of doing things, while trying to be a fair employer in every aspect of his business. To this end, Selecta Auto Body is the only collision repairer in the country today that has achieved BCorp certification, by meeting rigorous standards of social and environmental perform- In operation since April 2013, Selecta Body Shop in San ance, accountability and trans- Francisco is called an “ultimate green shop”, featuring the newest, cutting-edge techniques for saving materials and parency. Sure, Hubbard wants energy, among other things to make money and fix cars right, but more than anything else he companies were selected as winners of the fifth annual FIT Sustainability wants to run his business “with a conAward, an industry recognition proscience.” gram honoring businesses and organi“I’m a father and an employer obviously and I want to be able to make a zations that are actively engaged in
38 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
practices that advance the concepts of sustainability. Selecta took one of the three coveted spots, which was a big deal for a lot of reasons. “Being green is definitely a plus, especially when it comes to market-
Hubbard truly walks the walk when it comes to being green. Some of the more notable things he’s done to his shop include installing motion sensors in every room of the shop so the lights turn off when the room is not in use and uncovering the building’s skylights and front windows to use natural light whenever possible. He also mounted more than 350 pothos plants on the wall to bring fresh air to the shop. He purchased an oversized Global Finishing Solutions downdraft heated Later last year, Selecta Body Shop started turning a profit spray booth so that he can and being green has definitely played a pivotal role paint more cars and parts siing,” Hubbard said. “It all works hand multaneously, thereby saving time and in hand and awards like the FIT Sus- materials. The shop features two curtainability Award from AkzoNobel are tained-off areas, one dedicated for prep a huge deal. To be honored at a show and the other for detailing work. Hubbard is also gearing up for the like SEMA and having other shops interested in what we’re doing, that’s collision industry’s rush to aluminum. beneficial for us and the industry as a “We know that aluminum is coming, whole.” See Being a Green Shop, Page 44
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Hours: M-F 7-6; Sat 8-4 www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 39
Continued from Page 18
Multidistrict Litigation
quasi-estoppel, was dismissed without prejudice, meaning that plaintiffs will be able to file an amended pleading reasserting the counts by Feb. 10. The quasi-estoppel (count III) was dismissed with prejudice, meaning that it will not be allowed to be refiled. The term is described by Florida courts as “… a legal doctrine, applicable in certain limited circumstances, which provides that ‘[a] party cannot, either in the course of litigation or in dealings, occupy inconsistent positions.’” Another way to think about quasiestoppel is: Someone (#1) thinks something (A) is true and takes action based on that belief, someone else (#2) says “A is not true (even though #2 previously said it was)” and that causes #1 to do something that results in harm (i.e. business loss). If it turns out that A was true to begin with, #2 is guilty of quasi-estoppel. The plaintiffs sought to have quasi-estoppel applied in regard to repair estimating databases. According to court documents, “The Plaintiffs allege that the Defendants ‘have relied upon and asserted the validity/author-
ity of the databases... when it has been to their respective advantage’ but that, in other instances, the Defendants ‘have refused to compensate and/or fully compensate Plaintiffs for materials expended and work performed, including labor and labor rates, upon reliance of these very same guides, claiming that they are unnecessary to complete the work at hand.’” Court documents stated that the Plaintiffs sought to have the Defendants stopped from denying the applicability and reasonableness of the repair databases; however, the Florida court did not find this to be a cause for action. “The Court’s order is a significant victory for Farmers and the other defendants,” wrote the law firm Weil, Gotshal & Manges LLP, representing Farmers’ affiliates, in an article posted on Weil’s website. “Though the Court dismissed all but one claim—for quasiestoppel—without prejudice, it strongly suggested that plaintiffs would have difficulty remedying their remaining claims in an amended complaint. Additionally, this decision dismissed claims based on allegations similar to those contained in approximately 20 other cases in a consolidated multi-district litigation pending in Florida, entitled In re
Auto Body Shop Antitrust Litigation.” The Weil team represents Farmers’ affiliates 21st Century Centennial Insurance Company, 21st Century Indemnity Insurance Company, Foremost Insurance Company Grand Rapids, Michigan, Bristol West Insurance Company, and Security National Insurance Company. James Burns, co-leader of the antitrust practice at Dickinson Wright PLLC, told Autobody News that the Court’s most recent ruling is a significant victory for the defendants, and one that could potentially lead to a quick end to the proceeding. “While the Court has granted plaintiffs leave to amend several of their claims, if the proceeding is going to continue they will need to demonstrate that the infirmities identified by the Court in the recent ruling have been remedied in an amended complaint,” said Burns, who is not involved in the MDL proceeding. “Whether that will be possible remains to be seen. In any event, any amended complaint will likely be met by a renewed motion to dismiss by the defendants, setting up another significant ruling by the Court this Spring or Summer.” Eaves said the next monthly hearing is scheduled on Friday, Feb. 6 with
Magistrate Judge Smith. When Autobody News spoke to Eaves on Jan. 22, he was in Washington D.C. to meet with members of the House and Senate regarding the introduction of a bill to enforce the 1963 Consent Decree. This was a follow up to his earlier trip in September 2014 when Eaves and more than 65 body shop owners visited the Capital to begin these discussions. “My goal here [in Washington D.C.] is to understand what the best way is to present this in the new congress and decide who is going to take the lead on it and articulate the message,” said Eaves. He said the objective of the lawsuit and the bill is the same. “At the end of the day it’s to protect consumers by protecting the shops that are loyal to the consumers that want to do the repair the right way and the best way and not let the insurance companies cut corners that tie their hands.” *Part V. Conclusion in the court documents incorrectly states that Count IV of the Amended Complaint is dismissed with prejudice. It should have read Count III, Quasi-Estoppel, is dismissed with prejudice. (Please see page 10-12 in court documents for details.)
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©2014 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks. 40 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
Night-time Automotive Paint Additive has Vehicles Glowing and Owners Crowing “The idea came up back in 2002. I developed, manufactured and sold Toxic Toad is, ironically, a non-toxic, different forms of concrete sealer and environmentally-friendly additive that was looking for something new and can make any vehicle glow in the dark. different,” said Howe. “It wasn't until When asked about why he chose 2013 when a friend in the auto body the name, owner and creator Chad business gave me the idea to see how Howe replied, “I wanted something compatible it would be with auto body paints. With the help of my friend Terry Karn from Advanced Auto Body, with 30 years in auto body work, we tried our first project.” After only one try, the duo noticed that the additive made the guinea pig vehicle glow nicely, but left the paint gritty and rough. “So after a few more trials and errors, we came up with a great product and process,” A vehicle with the clear Toxic Toad additive during the said Howe. “With the right radaytime tios and application, we now that would stick out, and after weeks can spray over any base color without of trying to come up with a fun name, altering it, while maintaining a great it hit me that toxic toads’ colors are day look as well as a glow at night. brighter the more toxic they are. So the When applied right, nobody could name just seemed to fit with the glow.” ever tell that the finished product The product, which can be mixed would glow in the dark.” into any auto paint clear product beToxic Toad is not UV activated; fore spraying, was launched in Febru- any light will charge up the paint job ary 2013 at the Lennox, South Dakota for hours at a time. The additive comes headquarters. in four glow colors that go on clear by Victoria Antonelli, Online Editor
and dry clear, as well as two different green base glow colors. “We do get a lot of requests for new colors, but we are staying with the maximum glows,” said Howe. “Al-
and brighter the glow. “Toxic Toad has a lot of repeat customers who are amazed at the results,” said Howe. “The response has been great.”
At night, the Toxic Toad additive causes the automotive paint to glow in the dark, while remaining unnoticeable during the daytime
though the options are out there for additional glow colors, they just don't glow as bright or as long.” Although the product can be sprayed on any color car, Howe says the lighter the base color, the longer
The unique product can be ordered online, and is often shipped to destinations outside the United States. “With just the internet and word of mouth our sales have gone global,” said Howe.
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Laurel BMW of Westmont
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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 41
Continued from Cover
CNN Segment
Body in Pennsylvania. “This segment [CNN] strengthens our position with the nationwide suits,” said Perretta. “These types of tactics are tragic and offensive, deliberate and most of all hurting family’s of consumers financially through diminishing the values of the second largest investment people are making all across the country and their safety.” During the show, Drew Griffin, CNN Special Investigation Unit Correspondent, looked into the allegations. He interviewed Bill Burn, a national auto repair expert, as well as Matt Parker, owner of Parker Auto Body in Monroe, LA. Both addressed the issue of “bad repairs” conducted by some body shops allegedly due to pressure from the insurance companies to use sub-par parts. John Eaves Jr., of Eaves Law firm in Jackson, Mississippi, also spoke during the segment. “Every state in the union is experiencing the same sort of struggle here between the body shops trying to do the work the right way, and the insurance compa-
nies trying to cut corners and force them to use unsafe parts and unsafe methods on their cars,” said Eaves, the lead attorney for the antitrust Multi District Lawsuit filed in Florida. Buddy Caldwell, Louisiana’s Attorney General, and Jim Hood, Attorney General of Mississippi, were also featured. Both discussed their concern about safety issues using these kinds of parts. Caldwell filed a lawsuit against State Farm Insurance, and Hood is in the process of filing one as well. Hood explained the problem of insurance companies steering business away from body shops that don’t follow their rules. “They’re going to say, we’ll blackball you. We won’t put you on our select service list, and we’re going to make you send us estimates [supplements] to us five different times just to aggravate you. That’s what they do,” said Hood. “They use their economic power to grind down working people.” CNN included the following statement from State Farm: “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service Program while at the same time making it clear they can select which shop will do the work.”
Dick Luedke, spokesperson for State Farm Insurance, said that only a small portion of the information they provided to CNN was used in their report. “We are disappointed that CNN did not choose to report what Auto-
chance to re-plead,” said Luedke. “Moreover, a magistrate judge has recently recommended to the district judge that the Mississippi complaint also be dismissed. We did make CNN aware of those rulings.”
Matt Parker, Owner of Parker Auto Body in Monroe, LA showed CNN’s Drew Griffin a re-manufactured headlight that State Farm asked him to use in a Toyota Tacoma. Photo courtesy: Anderson Cooper 360
body News has already reported, that all of the counts in the multi-district litigation in Florida that are specific to the state of Florida have been dismissed twice, although the court has permitted the Florida plaintiffs a third
Neil Allredge from the National Association of Mutual Insurance Companies was also interviewed by Griffin. “In many cases, these parts are no different,” said Allredge. “They’re made in the same factories. One just comes
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Illinois Audi Exchange HIGHLAND PARK 847-432-5880 847-432-5708 Fax gorejel@audiexchange.com
42 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
OHIO
WISCONSIN
Brunswick Volkswagen Brunswick
Hall Volkswagen Brookfield
Toll Free: 330-460-7080
Direct: 330-460-7080 Fax: 330-460-7082 M-F 8am-6pm Sat 8am-4pm
www.brunswickautomart.com
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hallparts@hallcars.com
out with an auto manufacturer’s name on it and others don’t.” When Griffin told Allredge “That’s not true,” Allredge disagreed. After Griffin showed him a replacement hood for a Honda that was made in Taiwan and coming apart, Allredge went on to say that he didn’t know the circumstances of the parts Griffin mentioned and didn’t provide further comment. During the show U.S. Senator Richard Blumenthal, D-Connecticut, said, “Salvaged parts, inferior or even counterfeit parts certainly raise safety concerns. And often, those kind of parts involved in this practice of steering,” said Blumenthal. “And that’s why I have been concerned for years about it and why I think the Department of Justice should be investigating. One of the cars featured on-air was videotaped at Clinton Body Shop in Clinton, Mississippi. John Mosley, owner of the shop and the President of the Mississippi Collision Repair Association, said CNN contacted him when they were in the area interviewing the attorney generals. He said the Executive Producer of the show, Scott Bronstein, asked if Mosley had a car that had been taken
to a direct repair shop and suffered from a poor repair due to the parts used or actual labor operations performed. He replied that he had a vehicle brought in recently from Eugenia Randle. Randle brought her car into Mosley’s shop after it had been repaired twice at a “preferred” insurance company shop and was still not working properly. In the CNN report, Randle said, “Well, cosmetically to me, it looked fine. But once I got in and got down the street, it just started driving really crazy. And I immediately took it back,” she said. When she brought it to Clinton Body Shop, Mosley said one of his employees took it out for a drive and found it to be unsafe. “So we put it up on the rack, we found the bent wheels, the frame damaged and other issues with it,” said Mosley, who also owns a shop in Richland. After CNN’s Griffin took it out for a test drive himself, he said, “Not only the tail section ripped and unrepaired, three of four tire rims [wheels] were damaged. And as I drove, the steering wheel was shaking so violently, I had to grip down from veering to the right. The front left tire was just wobbling,”
said Griffin. Griffin was referring to a damaged left rear frame rail. “I carefully drove this shaking car right back to the insurance company’s preferred auto body shop, where the general manager promptly told us to leave.” In response to the CNN report, Jack Gillis, Executive Director of Certified Automotive Parts Association (CAPA), said, “The bad news: we all know that substandard parts exist in the market. The good news: CAPA’s independent, fully transparent non-profit rigorous quality certification program enables shops, insurers and part distributors to identify high-quality, safe and good fitting alternative parts. Because neither shops nor insurers can identify quality alternative parts by looking at them or depending on seller’s claims, CAPA provides the market with the ability to make an informed and quality-based choice. Shops and consumers want repairable vehicles without compromising quality. CAPA provides that option.” He added, “As to the broad brush disparagement of collision repair shops, clearly there are thousands of other American collision shops that do qual-
ity work and use CAPA quality parts— it’s just too bad that they weren’t part of the story.” In a recent letter to its members, the Society of Collision Repair Specialists (SCRS) stated, “The CNN special program highlighted the practices of identifying the cheapest parts in their claims settlement practices, and it is similarly common that their indemnification practices reflect prices that are substantiated by the lowest common denominators in the market as well; not necessarily what consumers would support in a well-functioning marketplace. “It is important to recognize that there are both ‘good’ and ‘bad’ market representatives in every trade and profession. It would also be inaccurate to make the assertion that simply because a collision repair business works with an insurance company, that they must be performing sub-par work.” SCRS further stated, “What the newscast helped to highlight was that the system is broken, allowing those with the financial responsibility to indemnify for loss to interject themselves into influencing price and thereby the process and/or quality of services provided.”
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330-836-4064 330-836-4074 Fax Mon.-Fri. 7:30-5:30 chevyparts@vandevere.com www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 43
Diamond Standard Parts’ New Web-Based Program “UNSUB”
Diamond Standard Parts announced its new “UNSUB” web-based program: www.unsubparts.com. The program gives access to all Diamond Standard Part’s offerings including both photo and descriptive information using either the OEM reference number, the Partslink + DS, DSN, or DSC number, or by selecting the vehicle, Make/Model/Year. The Make/Model/Year function shows all parts and part photos for the model made by the company. Michael O’Neal, President of Diamond Standard Parts, said “Taking delivery of what you order, specify and pay for in structural parts solutions is critical and should be a basic obligation of the supplier.” The parts are available through their distributor programs in the USA and Canada including the AQRP program at Keystone, an LKQ Company. “Substitution of structural safety parts goes against everything the quality driven aftermarket manufacturers and their supporters have continued to strive for in choosing safe and tested certified parts,” said O’Neal. “The low end supply chain continues to choke the system with misinformation, serious product quality downgrades, and lack of attention to detail.” O’Neal said after taking a survey with members of the largest body shop associations, comments included
cycle time issues, interruption of work flow processes, extended rental car days, repair backlogs, dead space in paint bays, thicker repair files and dissatisfied customers for shops and insurers. “Diamond Standard’s unique, trademarked part number system using the Partslink number + DS, DSN (NSF), or DSC (CAPA) ex: FO1006251DSN listed in the databases is easy to find, easier to identify, and eliminates substitution,” said O’Neal. “Diamond Standard is the only One quality manufacturer of structural safety parts in the aftermarket.” One Quality Manufacturing means Diamond Standard only makes one quality of structural parts for the North American market. Unlike other manufacturers, O’Neal said the Bartlett, TN-based company does not sell in other countries in the world that are low price/low quality driven. He said the DS parts numbering system is important because some suppliers using their unique part number use the same number for all levels from every manufacturer, certified, non-certified, or junk. He said this can cause confusion for the buyer and eliminate lost sales. Visit diamondstandardparts.com, unsubparts.com or email mike@diamond standardparts.com
Continued from Page 38
Being a Green Shop
but to what degree nobody really knows.” Hubbard said. “So, right now we have an area dedicated for aluminum work when we get it. We don’t have a ton of extra space here and we’re taking full advantage of what we currently have, but when aluminum becomes a significant amount of our volume, we’re ready.” There was definitely an added cost to building what Hubbard describes as “the ultimate green shop,” but once it was up an and running, it was all worth it, he said. “Some shop owners may think it costs a lot more to be green, but it’s really not that more expensive overall, because we’ve cut our waste and it is definitely showing up in our bottom line now. We don’t waste anything and we’re coming from that mindset, so once you get into being green, the benefits start to become apparent.” By using more natural light whenever possible and painting all of his floors with reflective paint, insulating his ceilings to retain heat and installing motion sensors on all his lights. Se-
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44 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com
www.autobodynews.com CHECK IT OUT!
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Lexus of Akron/Canton Akron
lecta’s utility bills are lower. And of course, by saving paint, clear coat and sealers with every car painted, it adds up to offset his original investment. “It starts to make more and more sense after you’ve done it for a while,” Hubbard said. “We’re using fewer products to fix our customers’ cars without sacrificing quality, and that’s the important thing.” Do customers in San Francisco really care about the fact that Selecta Body Shop is a green shop and did it help him to land his most recent DRPs? “I would say yes to both questions,” Hubbard said. “I believe 100% that our customers care. If they don’t know it initially, we let them know and most of them say very positive things. If we do a good job on their car and on top of that we’re a green shop, yes—I believe they will come back. And do the insurance companies see any value in the fact that we’re doing things with the environment in mind? I definitely do—if they can align themselves with a forward-thinking, responsible company—why not?”
OHIO
Brunswick Subaru
Brunswick Toll Free (888) 460-7080 Direct (330) 460-7080 (330) 460-7082 Fax Mon.-Fri. 8-6; Sat. 8-4 www.brunswickautomart.com
WISCONSIN
Wilde Subaru
Waukesha (800) 903-2434 (262) 544-1913 Fax Mon.-Thu. 7-7; Fri. 7-5; Sat. 8-4 parts@gowilde.com www.wildesubaru.com
RUPES Brings Collision Repair Tools to U.S. Through Acquisition of Cyclo Toolmakers by Stacey Phillips, Assistant Editor
Auto body shops will soon have easier access to purchase collision repair tools from Italian-based business RUPES. The company recently purchased Cyclo Toolmakers in Longmont, Colorado, and the U.S. facility will become the center of RUPES’s operations in North America. “RUPES is absolutely committed to growing its presence in the North American market,” said Jonathan Kissov, the VP of Sales and Marketing for RUPES USA. “We see tremendous synergies between Cyclo and RUPES and are excited to have Cyclo’s engineering, manufacturing, distribution and support capabilities available to use.” Cyclo Toolmakers first introduced the Cyclo in 1952. Cody and Carolyn Sutherland purchased the company in 2003 and re-located to Longmont, CO. They moved to Mead a year ago, where they manufacture the Cyclo onsite. Originally designed as a metal polishing tool, the Cyclo is used as a final step buffer in a body shop environment. It is also used for auto detailing and airplane polishing, including caring for the Air Force One fleet, as well as for industrial uses. “It is an incredibly durable product,” said Sutherland. “It’s made the
way power tools used to be made, constructed of metal and built to last.” Very few changes have been made to the Cyclo machine design over the years. The business owner still receives products from the 1950s on a weekly basis that come in for repair. “If you look at a 1954 version and you look at today’s version, you would have to look pretty close to find the differences,” he said. In January, the company announced an updated version of the Model 5 called the Mark II. Sutherland said it has an improved power switch and the shape of the tool has been modified for easier control. Sutherland was approached by RUPES in 2014 about the possibility of acquiring Cyclo Toolmakers. “As I learned more I was impressed,” said the business owner. “I thought they would be a benefit to Cyclo’s customers and our efforts to continue modernizing our products.” Sutherland traveled to Italy to meet with the owners and executives of RUPES. Located in Vermezzo, Italy, a suburb of Milan, RUPES was established in 1947. RUPES is an acronym for Realizzazione Utensili Pneumatici Elettrici Speciali, which means Manufacturer of Special Pneumatic & Electric Tools in English. The company entered the North
Parts You Need. People You Trust.
American market nearly three years ago with their Bigfoot polishing system, which encompasses a line of electric and pneumatic car polishers along with foam pads and polishing compounds. Sutherland said the products allow a swirl-free finish on vehicles and other surfaces and are becoming popular in the industry. Guido Valentini, President of RUPES, said the company also offers a wide range of products that cater to the auto body repair industry. “During 2015 we will enforce the ‘gearing’ within the Italian and American companies improving logistics, customer service and repairs,” said Valentini. “Beginning in 2016 we will implement local R&D, and we will start the manufacturing activity of all new products. Definitely, we want to manufacture and assemble in the U.S. all of what we sell in North America.” He said they will also manage distribution in Canada and Mexico from the Longmont, CO location. “RUPES has plans to serve all of its customers in North America better,” said Sutherland. “That was really the reason for the acquisition—to get an organic existing operation here with customer service, warehousing, manufacturing and engineering.” As the new VP of Operations, Sutherland is the general manager for the North
American operation of RUPES. “Part of our future role in the global operation is to manufacture products now made in Europe, here in the states.” These include polishers, grinders, sanders and dust extraction vacuums. Sutherland said the dust collection systems offered by RUPES will benefit shops repairing the new aluminum-bodied Ford F-150. “With the introduction of more aluminum body parts, and the F-150 being a flagship of aluminum body parts, dust collection has become a far more important safety issue,” he said. “Aluminum dust can be explosive, so safe collection becomes an incumbent responsibility on body shops working with those materials.” “We recognize the high-quality reputation that the Cyclo brand enjoys across several market segments and promise to work diligently to both honor and improve the status of the brand while leveraging Cyclo’s capabilities to improve RUPES’s service, support and technical levels in North America,” said Kissov. “We are also looking forward to embracing the international distribution network that Cyclo has developed and working with them to further promote the Cyclo brand internationally.” The companies’ websites are: cyclotoolmakers.com and rupes.com.
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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 45
Continued from Page 16
2015 Ford F-150
panel. The other 4.4 hours are things like removing the molding, taking off the bumper and uninstalling the tailgate. Clearly, that labor wouldn’t take any more or less time regardless of what the parts are made of. If we go with the theory that our service advisor presented though, and assume fixing a steel panel would take half the time, it works out to just 14.4 hours of labor. Work that in to the above estimate and you’ll get a total of $2,338.44. That’s $600 less.
Let’s take that a step further, though. Assuming that the labor rate for aluminum was the $120 an hour the service advisor told us, and going with our quoted time of 20 hours or body labor to pound that panel out, we’re looking at $4,138.44. That’s a difference of $1,800, a price increase of nearly 77 percent versus the cost of repairing a steel panel for 10 hours at $60 per hour. To be sure we called our regular body shop, Golden Hammer in Santa Monica. The shop has fixed dozens of dented, dinged and damaged Edmunds long-term test vehicles. That shop charges $50 an hour to fix a steel panel and $105 an hour for aluminum. Take
it a little further down the rabbit hole and there’s insurance to think about. If we had gone through insurance to pay for this repair, my out-of-pocket cost for the repair might not have changed so much, but that’s probably not where it would end. Imagine you’ve got a $500 or even $1,000 deductible on your insurance policy. You hit a tree, tell the body shop guy you have no idea what happened, but insurance is paying to fix it. Your insurance premiums may go up, but the remainder of the cost is passed along to your insurance company. In this scenario, the associated insurance cost for owning an aluminum-bodied vehicle likely goes up too. Maybe it al-
ready has. There’s plenty to speculate about when it comes to the new 2015 Ford F-150, and we’ve got a year to keep testing out our theories, but there are a few things we know for sure. One: It takes more time, unique tools and specialized training to fix aluminum body panels. Two: Those repairs, whether through higher labor rates or longer service times, cost more money than repairing steel. And three: It’s really fun to smash things with a sledgehammer. We thank Edmunds.com for giving Autobody News permission to reprint their article.
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