March 2021 Midwest Edition by Autobody News

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GM to Idle 3 Plants in North America Due to Semiconductor Shortage by Jamie L. LaReau, Detroit Free Press

General Motors is idling three of its assembly plants in North America and running a fourth in South Korea at half capacity for one week as it struggles with the ongoing semiconductor shortage that has already impacted production at Ford Motor Co., Stellantis and others globally. On Feb. 8, GM will idle the follo in plants hi h run t o shifts for a week: • Fairfax Assembly and Stamping Plant in Kansas City, KS: About 2,000 hourly workers build the Chev-

rolet Malibu sedan and Cadillac X T4 SU V • CAMI, Ingersoll, Ontario Canada: About 1,500 hourly workers build the Chevrolet Equinox SU V • San Luis Potosí , Mexico: GM builds Chevrolet Equinox and Trax and GMC Terrain SU V s Some related GM plants that supply engines and other parts to the plants to be idled may be minorly impacted. For example, the engine plant at GM’s Spring Hill Assembly complex will reduce a shift on one See Semiconductor Shortage, Page 22

States Revive Push for Virus Liability Protections for Employers by Chris Marr, Bloomberg Law

More than a dozen states at the start of the 2021 legislative season are renewing a push to shield businesses from lawsuits over customers’ or employees’ COV ID-19 exposure. From Florida to Montana, state lawmakers have declared liability protections to be a top priority this year. Republican lawmakers are mostly leading the charge, but in a few cases they’re coordinating with Democratic legislators or governors. If these states enact liability shields, they would join more than a

dozen others that did so in 2020. These state laws broadly shield all or most types of businesses from coronavirus-related liability lawsuits, unless a plainti an sho the o pany was grossly negligent or guilty of intentional misconduct. After a federal proposal championed by Senate Republicans failed to win approval, the attention is back on the states and expected to stay there, now that Democrats will control both chambers of Congress and the White House as of J an. 20. “We do not anticipate liability See Virus Liability Protections, Page 20

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AUTOBODYNEWS.COM Vol. 10 / Issue 6 / March 2021

President Biden Signs Executive Order to Strengthen Buy American Act Provisions by Roger Abbott and Karl Means at Miles & Stockbridge P.C.

On J an. 25, President J oe Bi den issued an executive order on Ensuring the Future Is Made in All of America by All of America’s Workers. The order is part of his “Build Back Better Recovery Plan” to strengthen American manufacturing and has potentially far-reaching effect. The order will tighten the federal government’s requirements to buy American products, support American jobs and rationalize the enforcement of the country’s patchwork of

“Made in America” laws. Companies that supply goods and services to the federal governent ay no lon er benefit fro statutes like “Buy American.” The J an. 25 order will tighten agencies’ purchasing by increasing domestic content requirements and close loopholes for determining country of origin under Made in America laws. o panies that benefit fro domestic preferences now must re-examine whether they will continue to benefit under the proposed ne re ulations. Contractors and subcontracSee Buy American Act, Page 24

Illinois Shops Share Their ‘Lessons from the Pandemic’ surers. “Those in power are starting to squeeze, and when things turn around, Are insurers using current market they don’t like to give up whatever conditions with fewer claims to lean they picked up.” on shops to be more competitive? Mayer was one of two Chicago Illinois shop owner J oe May shop owners who shared their expeer brie y tal ed about third party riences with the pandemic during the payer pressures” during an Alliance webinar. Mayer said when work fell o last sprin he laid o four employees, until a PPP loan allowed him to bring them back to work. “After his second day back at work, one of the fellas was very ill and coughing. He didn’t look good. The guys brought it to my attention,” Mayer said. The employee was sent During a recent webinar, two Illinois shop owners shared home with pay for two days their companies’ experiences during the pandemic until his test results came of Automotive Service Providers of ba positive and he as then o Illinois ( AASP-IL) webinar in J anu- work for a month. ary focused on lessons from the pan“Fortunately, the guy was a demic. prepper, and sort of worked out on “Whatever weakness in the in- his own,” Mayer said. dustry they sense, they will try to ayer and the rest of his sta all take advantage of,” Mayer, owner of tested negative. When the employee See Illinois Shops Share, Page 16 M ay er’ s C ollision C enter, said of inby John Yoswick

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CONTENTS AASP-MN’s Automotive Scholarships Up For Grabs ........................................................6 COVID Lawsuit Bill Moving Quickly in Missouri Senate ..........................................................14 Crash Champions Acquires Nine Leading Repair Shops in Midwest ..............................16 DEG Welcomes KABA as Newest Gold Level Sponsor ........................................................14 Expanding Tech Start-Up Carsfast Launches Operations in St. Louis ..................................16 Ford Hires Renowned Architectural Arts Firm to Restore Michigan Central Station ..............12 Indiana Ranked One of Best in Nation for Drivers ............................................................8 New ‘State-of-the-Art’ Muscatell Collision Center Seen as Big Competitive Advantage in Region ........................................................8

Auto Thefts Surge In 2020, National Insurance Crime Bureau Reports ...................................49

Anderson - How to Improve Paint Materials Reimbursement ............................................28 Attanasio - Social Media Strategist Identifies Keys to Your Body Shop’s Online Success .....44 Phillips - COVID-19 Vaccinations in the

Certified Collision Group Announces Significant Start to ‘21 ..................................46 Collision Industry Mourns the Loss of Bano Ramirez ...............................................50 COVID’s Impact on Insurance Pricing, Coverage & Digital Trends ..............................51 Distracted Driving Trend Persists Despite Passenger Complaints ..................................50 Edmunds Experts Forecast 15.5 Million New Vehicles Will Be Sold in 2021 ........................48 Ford, Google Partner ...........................................4

Herb Lieberman—A Life of Service ...................40

the Pandemic’.................................................1 Industry Members Share Their Predictions for the Year ...................................................48 Jeff Peevy Shares Growth Plans Related

American Icon Automotive Finishes ................. 24

Luther Bloomington Acura-Subaru .................. 33

Audi Wholesale Parts Dealers .......................... 43

Luther Kia of Bloomington ............................... 34

AutoNation Collision Part ................................. 17

Malco ............................................................. 20

BMW Wholesale Parts Dealers ........................ 47

McGrath City Hyundai ..................................... 32

CCC Information Services Inc. ........................... 7

MINI Wholesale Parts Dealers.......................... 46

Certified Automotive Parts Association ............ 14

Mitsubishi Wholesale Parts Dealers ................. 42

Classic Chevrolet ............................................ 25

MOPAR Wholesale Parts Dealers ................30-31

Classifieds ...................................................... 50

Nissan/Infiniti Wholesale Parts Dealers............ 42

Columbia Hyundai ........................................... 12

Parker LORD ................................................... 21

Eckler’s Automotive ........................................ 13

Patrick Hyundai............................................... 39

Equalizer Industries, Inc .................................... 6

SATA Dan-Am Company .................................... 2

Ford Wholesale Parts Dealers .......................... 42

Sears Imported Autos, Inc ............................... 22

Gandrud Parts Center........................................ 9

Shaheen Chevrolet Parts Warehouse ............... 35

GM Wholesale Parts Dealers ........................... 41

Sherwin-Williams Automotive Finishes .......10-11

Hawkinson Kia ................................................ 28

Spanesi Americas ........................................... 52

Honda-Acura Wholesale Parts Dealers .......26-27

Steck Manufacturing Company ......................... 8

Hyundai Wholesale Parts Dealers .................... 49

Subaru Wholesale Parts Dealers...................... 40

Insta Finish .................................................... 15

Sunmight USA ...........................................18-19

Kelly BMW ...................................................... 39

The Porsche Exchange .................................... 34

Kia Wholesale Parts Dealers ............................ 45

The Sharpe Collection of Automobiles ............. 23

KSI Auto Parts ................................................. 16

VanDevere Chevrolet....................................... 37

Laurel Auto Group of Westmont ....................... 29

VanDevere Kia ................................................ 37

LKQ Corporation ............................................... 5

Willis Volvo...................................................... 36

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

to I-CAR Tech Center .....................................38 Kia Niro EV Winner in Ownership Study .............51

President Biden Signs Executive Order to

Equity Coming Into the Industry ....................43

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.

to Semiconductor Shortage.............................1

Collision Repair Facility .................................34

Yoswick - Forecast: Expect More Private

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

GM to Idle 3 Plants in North America Due

Merchants Fleet to Buy BrightDrop EVs .............49

for the EV Revolution.....................................32

www.autobodynews.com

Will Go Public ................................................51

Workplace: What to Consider for Your

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Strengthen Buy American Act Provisions .........1 President Biden: We’ll Replace Entire Fleet of Federal Vehicles with EVs ............................4 State Farm Looks to Expand Blockchain Use for Speedier Auto Claims ..........................6

NATIONAL 2021 SEMA HoF Nominations Open ..................46 ABRA Auto Body Repair of America Adds Four New Facilities .......................................48 ASE Announces New Officers, Board Members....6

States Revive Push for Virus Liability Protections for Employers ...............................1 U.S. Electric Vehicle Market Poised for Record Sales in 2021: Edmunds .....................................4

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President Biden: We’ll Replace Entire Fleet of Federal Vehicles with EVs by Tom Moloughney, Inside EVs

President J oe Bi den isn’t wasting any time in making his policy clear on electric vehicles. In a speech J an. 25, less than one week into his presidency, Biden announced he plans to replace all federal vehicles in service with domestically-made EV s. According to the General Service Administration’s 2019 Federal Fleet Report, that’s a total of 645,000 vehicles. However, the president didn’t lay out any plans or timeline whatsoever, only a o it ent to transition the eet to zero-emission electric vehicles. “Together, this will be the largest mobilization of public investment and procurement infrastructure and R& D since World War II,” Biden said. Biden also added that all of the electric vehicles would be domestically made, which would narrow down the choices when ordering replacement vehicles. Tesla Model 3s have already proven to make great police cruis-

ers for some departments willing to give the vehicle a chance. It appears to be payin o as the Bargersville Police Department in Indiana announced the Model 3 saved $ 6,750 in only one year of service, as compared to a Dodge Charger cruiser.

Mail delivery vehicles are perfect candidates for electric vehicles because they have set routes, do a lot of stop-and-go low-speed driving and in many instances don’t need to cover many miles to complete their daily route. The 140,000 federal mail

“Together, this will be the largest mobilization of public investment and procurement infrastructure and R&D since World War II,” — Joe Biden We can only imagine how much the government would save by replacing more than half a million vehi les ith e ient s. Nearly 22% of the vehicles in the federal eet are ail tru s which are long overdue for replacement. The average age of a Grumman mail delivery truck is 28 years, and they lack basic essential functions of modern vehicles including airbags, anti-lock brakes and air conditioning.

trucks currently in service should be the first eet to be onverted. If we take Biden’s announcement literally, then we have to assume he means he’ll be ordering a new all-electric presidential limo, a e tionately no n as he Beast.” Perhaps it will be a custom stretched Hummer EV -based Cadillac SU V ? We thank I nsid e E V s for reprint permission.

Ford, Google Partner Ford and Google announced Feb. 1 a unique strategic partnership to accelerate Ford’s transformation and reinvent the connected vehicle experience. Ford has also named Google Cloud its preferred cloud provider to leverage Google’s world-class expertise in data, artifi ial intelli en e and ahine learnin . s part of this ne si year partnership be innin in illions of future ord and in oln vehi les at all price points will be powered by Android, with Google apps and services built-in. To drive ongoing innovation, Ford and Google are establishing a new collaborative roup ea pshift. evera in the talent and assets of both companies, Team U pshift will push the boundaries of Ford’s transformation, unlock personalized consumer experiences and drive disruptive, data-driven opportunities. This may include projects ranging from developing new retail experiences when buying a vehicle, creatin ne o nership o ers based on data and more. Source: Ford, Google

U.S. Electric Vehicle Market Poised for Record Sales in 2021: Edmunds Electric vehicle sales are poised to hit their highest level on record in 2021, according to the car shopping experts at Edmunds. Edmunds data shows EV sales made up 1.9% of retail sales in the U .S. in 2020; Edmunds analysts expect this number to grow to 2.5% this year. “After years of speculation and empty promises, 2021 is actually shaping up to be a pivotal year for growth in the EV sector,” said J es s i c a C al dw el l , Edmunds’ executive director of insights. “We’re not only about to see a massive leap in the number of EV s available in the market; we’re also going to see a more diverse lineup of electric vehicles that better re e t urrent onsu er preferences. “And given that the new presidential administration has pledged its support for ele trifi ation the U .S. is likely to see incentive programs targeted at fostering the growth of this technology further.” Edmunds analysts anticipate 30 EV s from 21 brands will become available for sale this year, compared to 17 vehicles from 12 brands

in 2020. otably this ill be the first year these o erin s represent all three major vehicle categories: Consumers will have the choice among 11 cars, 13 SU V s and six trucks in 2021, whereas only 10 cars and seven SU V s were available last year.

This diverse spread of EV o erin s should help en oura e stronger loyalty among EV owners, which has dwindled over the years as shoppers have gravitated toward larger vehicles. According to Edmunds data, 71% of EV owners who didn’t buy another EV traded in their vehicle for a truck or SU V in 2020, compared to 60% in 2019 and 34% in 2015. eri ans have a love a air with trucks and SU V s, to the detriment of EV s, which have until recently been mostly passenger cars,”

said Caldwell. “Automakers should have a much better shot of recapturing some of the EV buyers who they ve lost no that they an o er larger, more utilitarian electric vehicles.” Edmunds analysts note that this infusion of fresh new products comes at a time where the market is also seeing a positive shift in consumer interest in EV s. According to Google Trends data, consumer searches for electric trucks and SU V s have recently hit a high point after trending upward for years. esides a ordability one of the biggest barriers to increased EV sales has simply been tepid consu er re eption it s been tou h for companies that aren’t Tesla to crack the code of how to get shoppers hyped up for these vehicles,” said Caldwell. “But in the past year we’ve seen automakers throw huge advertising dollars behind their EV launches in an attempt to drum up some buzz, and it’s promising that consumers seem to at least be more aware of the options out there.” As more consumers look to EV s as a possibility for their next

car purchase, Edmunds experts emphasize that shoppers should take extra time to consider their alternatives and do their research. “Buying an EV is an entirely di erent beast than a traditional car purchase, so extra research and diligence are key,” said I v an D rury , Edmunds’ senior manager of insights. “Range and weather conditions play a huge factor in determining whether certain EV s make sense for your everyday needs, and whether you own a home with a garage or rent an apartment could affect your charging situation. “Federal and state tax incentives are at play with these purchases. And with a number of manufacturers following Tesla’s direct sale model, there might not be opportunities to take a test drive, or even to trade in your current vehicle, like you would at a traditional dealership.” Source: Edmunds

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State Farm Looks to Expand Blockchain Use for Speedier Auto Claims by Ryan Denham, WGLT News

State Farm says it plans to expand the use of a digital bookkeeping technology to speed up and streamline the auto claims process, after a successful trial run with U SAA. State Farm announced J an. 26 its blockchain partnership with U SAA has exited testing and is now in full production. After a crash, sometimes an insurer owes another insurer money—part of an industry process called subrogation. Now, instead of swapping 75,000 paper checks every year, State Farm and U SAA will exchange digital payments using blockchain. “That allows our customers, in many cases, to secure their deductible more quickly than they would have in the past,” Sc huy l er Sc hup bac h, vice president for property and casualty claims at State Farm, said on WGLT’s Sound Ideas. Customers’ personal information will remain protected, Schupbach said. The use of blockchain—a distributed ledger technology most famously associated with bitcoin—

will not add any new exposure. “As we work through this process with U SAA, this isn’t about sharing private, personal information between our two companies. t s about ho e e e tively al ulate and exchange the moneys owed related to the subrogation process,” he said.

State Farm and USAA have been testing blockchain for years. Credit: STAFF/WGLT

Bloomington, IL-based State Farm and U SAA have been testing blockchain for years. Schupbach said State Farm, the largest U .S. auto insurer, hopes to begin blockchain partnerships with other insurers this year. In a future where more and more of the subrogation process is handled through blockchain, does

that mean State Farm will need fewer people to do that work? “This is a relatively small step in the overall subrogation process. But we position this technology solution just as we do all of our innovative technology solutions,” Schupbach said. “Our goal continues to be on, how do we identify better ways of handling transactional work that doesn’t really require a lot of employee judgment? That provides our employees the ability to focus their time and attention on higher-valued work that really does dire tly benefit the usto er.” tate ar first announ ed its U SAA blockchain partnership in 2019. “Carrier-to-carrier claims payments will be almost completely automated in the future, saving time and money,” Sean Burg es s , U SAA hief lai s o er said in a statement. “U tilizing blockchain technology helps us securely improve and automate a manual process and ultimately gets money back to our members and customers faster.” We thank WG LT N ews for reprint permission.

ASE Announces New Officers, Board Members The National Institute for Automotive Service Excellence has announ ed the o cers and board members for the coming year, according to T i m Z i l k e, ASE president and CEO. Mark P ol k e, Bosch Workshop Concepts, North America, Robert Bosch LLC, will serve as chairman, and Brad P el l man, Pellman’s Automotive, as vice chairman. H omer H og g , Travel Centers of America, and Bri an Sz al k , FCA, will serve as treasurer and secretary, respectively. Bobby Bas s ett, formerly of Gates Corporation, will remain on the board of directors as past chair. Additional board members are J ohn H ani g hen, Cloyes Manufacturing; T ed H ay es , Hayes Chrysler, Dodge, J eep; Mark Mi l l er, GM Global Technical Center; T om P al ermo, Preferred Automotive Specialists; J as on R ai ney , NAPA/ AAA; T om T ri s dal e, Toyota; Jeff a er, Walker’s Automotive Service; J ohn , Snap-on Business Solutions; and Z ilke. Source: ASE

AASP-MN’s Automotive Scholarships Up For Grabs The Alliance of Automotive Service Providers of Minnesota ( AASP-MN) will be awarding scholarships to select students enrolled in post-secondary auto service or collision repair programs. Scholarship awards will be $ 1,000 per student and can be applied towards tuition or tool purchases. Recipients must be enterin their first or se ond year of an ASE-accredited automotive program in the fall of 2021. Applications will be reviewed by a committee of industry representatives, with consideration given to scholastic achievement, edu ation and areer oals financial need and written recommendations. Applications must be submitted electronically or postmarked no later than March 31. Applications can be downloaded from https: / / aaspmn.org/ scholarships/ or submitted online at www.automotivescholarships. com/ AASP-MN. Online submissions give students the opportunity to o pete for several di erent a ards in ludin those o ered by the Global Automotive After-

market Symposium Scholarship Committee and more than 40 other automotive aftermarket organizations and o panies. pe ifi requirements for each organization’s awards can be found at www.automotivescholarships.com. The Education Fund was established in to provide finan ial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry. Since that time, nearly $ 270,000 has been invested in student scholarships, SkillsU SA and automotive education programs throughout Minnesota. In 2016, AASP-MN’s efforts to attract a future workforce e panded si nifi antly ith the creation of Minnesota Careers in Automotive Repair and Service ( MNCARS) , a statewide marketing and outreach initiative to encourage high school students to pursue an education and career in the automotive service and collision repair industry. V isit www.carcareers.org to learn more. S ou rc e: A A S P - M N

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New ‘State-of-the-Art’ Muscatell Collision Center Seen as Big Competitive Advantage in Region by Helmut Schmidt, Inforum

W ard Mus c atel l says his new $ 6.5 million collision center in Moorhead, MN, will bring him a big competitive advantage in the area and his customers top-notch service. “I feel it’s probably the nicest set-up for a body shop from Minneapols to Billings ( MT) ,” Muscatell said during a tour J an. 12. The 30,000-square-foot shop— double the size of Muscatell’s old facility—opened Christmas week at 1120 29th Ave. S., on the Muscatell Subaru southside campus. Its 24 service bays have been plenty busy since. “We probably have one of the largest shops in Fargo-Moorhead,” Manager D av e H ettw er said. ”It is definitely the bi est in oorhead. We work on any make and model.” The latest generation of cars, trucks, SU V s and vans are packed with lots of sophisticated technology, including back-up cameras, radars and self-stopping systems. That means the Muscatell repair technicians are constantly updating their skills to gain the

The modern water-based paints are also much more eco-friendly than previous paints, Hettwer said, keeping hazardous waste to a minimum. The new collision center has a lot more indoor vehicle storage space. “There was just not two inches of room,” in the old collision center, Hettwer said. And there’s a fenced and gated area to secure over o vehi les at busy times. “That’s one of the things we wanted to have, security,” Hettwer said. Muscatell said he’s added more courtesy vehicles, too, for people who Deb and Ward Muscatell stand among the 24 service need transportation while bays Jan. 12 in the Muscatell Collision Center, 1120 29th their vehicles are being Ave. S., Moorhead. Credit: Michael Vosburg, Forum Photo repaired. Editor Muscatell has been in The facility has two modern, the auto business for years, but went downdraft paint booths already in- full-time into being a Subaru dealer stalled. A third paint booth from in 1997. He moved the dealership to the old collision center will soon be its current location 2017. The cammoved into the painting space. pus also includes used car sales and

ertifi ations they need to or on Subarus, Fords and other makes and models, Hettwer said. “If you don’t know what you’re doing, you can be in trouble really quick” in repairing newer vehicles, Hettwer said. “People want state-of-the-art. … They want new.”

an oil-change shop. The collision center “kind of fits ni ely” ust east of the uscatell Subaru showroom and service center, Muscatell said. “Y ou either grow, or get out of the business.” Collision repair is a growing business, according to Grand V iew Research. The U .S. auto collision repair market was estimated at $ 33.75 billion in 2018. It was expected to grow about 1.5% annually through 2025. However, that growth rate was expected to be disrupted by the global coronavirus pandemic. The Muscatell family has been selling cars in the region for about 100 years, Muscatell said. He currently owns and is president of Muscatell Automotive Group, which includes Ward Muscatell Subaru, and Muscatell-Burns Ford in Hawley, MN. His wife, D eb, is the marketing director and vice president. “We love being a dealer in Moorhead,” Muscatell said. “It worked out well for us.” We thank I nforu m for reprint permission.

Indiana Ranked One of Best in Nation for Drivers by J.D. Davidson, The Center Square

ure tra an be thi around major cities. Of course, potholes dot roadways just like most other midwestern cities. However, Indiana ranks high when it comes to the best states for driving. he personal finan e ebsite WalletHub used 31 key metrics, including average gas pri es rush hour tra and road quality, to determine the best and worst states to drive in across the country. Overall, Indiana ranked as the second best state for driving, head of neighboring Kentucky ( sixth) , Ohio ( 10th) , Illinois ( 14th) , Michigan ( 38th) and Missouri ( 40th) . Overall, Texas ranked as the nation’s best state for drivers, followed by Indiana, North Carolina, Iowa and Tennessee.

www.autobodynews.com

hile tra on estion ost U .S. drivers $ 88 billion and 99 hours of their time in 2019, WalletHub said COV ID-19 should lead to a drop in tra on estion numbers in 2020. Through October, according to the report, more travel on the roads in 2020 was more than 380 billion vehicle miles fewer than the same time period in 2019. The report also noted the . . is ho e to five out the orld s orst ities for tra and 19 of the out the worst 25 in North America. The worst in the U .S., according to INRIX ’ 2019 global tra s ore ard ere oston Chicago, Philadelphia, New Y ork and Washington, D.C. We thank T he C enter S q u are for reprint permission.

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Ford Hires Renowned Architectural Arts Firm to Restore Michigan Central Station More than three decades after the last train left Michigan Central Station, the building’s ornate interior will soon look as its creators envisioned more than a century ago. Ford Motor Company has brought on EverGreene Architectural Arts, one of the largest specialty contractors in the U .S., with a lengthy ré sumé of restoring historic buildings, to revive the grandest areas of the train depot, including the main waiting area, arcade, ticket lobby and restaurant. The New Y ork City-based company will replicate and restore approximately 56,000 square feet of decorative plasterwork. A distinguishing feature of the station’s Beaux Arts architecture is the plaster, which covers most of the buildin s first oor and as ade to look like stone, a cost-saving measure at the time of construction. Evergreene will preserve and clean what original plaster material can be saved and recreate new portions where needed. The 18-month project will use three plaster techniques—traditional three-coat plaster, ornamental plaster and veneer plaster—and will require replicating more than 3,000 cast plaster pieces, including the o ers edallions and rosettes that adorn the waiting room’s walls and ceilings. The work will be choreographed in a way that creates a seamless transition of old and new in the areas most visible to visitors. A us ti n Gi es ey , project manager for Christman-Brinker, the construction team leading the restoration pro e t said the e e t hen it s finished ill be a droppin .” “The original architects used every plaster craft available to them to create the station’s impressive public spaces,” said Giesey. “People don’t realize just how much detail has been lost over the past 30 years. hen e re finished ith these spaces, they will look phenomenal. Y ou will walk in and see a grand expanse of stonelike plaster that will look exactly like the original concept. It’s really going to be amazing.” While ornamental plaster is far less common in new buildings than

it was in the early 1900s, the skilled tradespeople at Michigan Central Station will be able to preserve and recreate the faux stone appearance just as the original architects intended.

contribute to the city’s collective chasing Michigan Central Station source of memories and create a in 2018. The plasterwork is taking place at the same time as extensive sense of place. “When we bring life back to repairs to the Guastavino vaulted these buildings, they can have a ceiling in the waiting room. The huge impact on the neighborhood impressive ceiling features 22,000 and the community,” he square feet of clay tiles covering said. “People identify with three self-supporting arches. a physical environment, The next phase of interior resit’s a repository for memo- toration will involve bringing new ries. Michigan Central Sta- pipin oors plu bin and ele tion was and will be again tri als to the buildin and finishin a central place in what structural repairs. Construction is makes up the personality on track to be complete by the end of 2022. of Detroit.” Michigan Central Station is EverGreene will attempt to salvage and re- set to become the centerpiece of purpose as much of the Ford’s new 30-acre mobility inFord Motor Company has brought on EverGreene Architecoriginal building material novation district in Corktown that tural Arts to revive the grandest areas of the train depot, ill help define the ay people as possible. The origiincluding the main waiting area, arcade, ticket lobby and and goods move around in the funal plaster was created to restaurant. simulate the stone found ture. The station will be open to the While some digital tools will throughout the building, some of public with locally inspired restaube used, a team of 15 to 20 crafts- which still remains despite decades rants, shops, hospitality services people from EverGreene will do of weathering. The remnants will and public amenities, in addition to most of the plasterwork by hand be used as a template for the new odern o e spa es for ord e usin oor to eilin s a oldin . ployees and the company’s innovaplaster. EverGreene has been part of Ford embarked on the years- tion partners. Detroit’s comeback for more than long preservation project after purS ou rc e: F ord two decades, having contributed to projects at Orchestra Hall, Detroit Public Library, Detroit Institute of Arts and the Fisher Building. The company has also performed plaster and decorative painting work on the WE DELIVER SO YOU CAN DELIVER Michigan State Capitol building. he fir is fa iliar ith train station revivals, having worked on restoration projects for New Y ork City’s Grand Central Station and U nion Station in Los Angeles, as well as depots in Seattle, Cincinnati and Sacramento. Jeff Greene, executive chairman and founder of EverGreene, said Michigan Central Station is an extraordinary, well-made building whose renovation will attract na24-Hour Parts Fax: tional attention when it reopens. “To play even a small role in the transformation of this iconHours: Mon-Fri 8am-5:30pm Sat 8am-12pm ic building is incredible,” said reene. here s a lot of ratifi awww.columbiahyundai.com tion, not only in the craft and what columbiaparts@josephauto.com we do with our hands, but the act 10981 Montgomery Road; Cincinnati, OH 45249 of elegantly preserving something that means so much to this city. A project of this scale will reverberate on the national stage.” Greene noted that buildings like Michigan Central Station

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COVID Lawsuit Bill Moving Quickly in Missouri Senate by Mark Zinn, News-Press NOW

A measure that would protect businesses, churches, schools and other entities from COV ID-related lawsuits is quickly moving through the Missouri Senate and could be the first bill Gov. Mi k e P ars on signs this year. State Sen. T ony L uetk emey er, a Republican attorney who authored the bill, said as the economy and schools start to reopen, his legislation is crucially important. “This is really going to be the time where small-business owners, schools, front line health care providers, all the risk of them getting sued is going to be the greatest,” Luetkemeyer said. “I think it’s important that we have these protections in place for those groups as part of the reopening so that we make sure that we don’t have a second wave where businesses are getting put out of business because of lawsuits.” U nder Senate Bill 51, “No individual or entity engaged in businesses, services, activities or accommodations shall be liable in

any COV ID-19 exposure action.” The exception to that rule is if the person can prove by “clear and convincing evidence” that one of the two actions occurred: the individual or entity engaged in recklessness or willful misconduct that caused an actual exposure to COV ID-19; or is the actual exposure caused personal injury to the plaintiff.” Luetkemeyer’s bill also creates a statute of limitations that caps at one year the length someone can file a COV ID lawsuit. “The purpose behind that is to make sure we don’t have these cases that are languishing out there and sitting out there for a long time,” he said. “That creates a lot of uncertainty.” Despite it almost being nearly impossible to trace where someone got the virus, the GOP senator said the legislation prevents people from simply guessing or assuming a point of contraction. “One of the requirements in the bill is that in order to establish a COV ID liability claim, the plaintiff would have to show that

there was a causal link between the exposure to the virus and a particular business or health-care provider or school where they can track that,” Luetkemeyer said. “That will be something that’s very difficult to do.”

Credit: Submitted photo

Parson had asked the Legislature to address COV ID tort reform toward the end of last year’s special session, but he ended pulling his call for that measure because lawmakers ran out of time. Luetkemeyer said there is broad support for the bill, includ-

ing the governor, Senate leadership and Missouri Speaker of the House R ob V es c ov o. “When [ V escovo] first took over as speaker, he identified this as one of his top three priorities to get done,” Luetkemeyer said. “To ensure a seamless and orderly reopening of the economy.” The measure quickly passed out of a Senate committee last week and awaits a full vote in the Senate. Luetkemeyer expressed his optimism regarding the quick nature of his bill. “I think it’s likely going to be one of the first bills si ned by the governor,” he said. here as definitely a sense of urgency to get this bill done earlier in the session and then also for the governor to sign it while we’re still in session.” We thank the N ews- P ress N ow for reprint permission.

DEG Welcomes KABA as Newest Gold Level Sponsor The Database Enhancement Gateway ( DEG) introduced its newest Gold level sponsor, the Kansas Auto Body Association ( KABA) . DEG users are able to use the free online resource to help identify, address and resolve omitted and inaccurate information found in the estimating programs through a standardized inquiry process for all three estimating systems. The database can also be used to verify and document necessary operations that have been addressed by other users and onfir ed by the information provider. “We are all really proud to recognize KABA for sponsoring with a generous contribution to help invest in industry resources that are having a positive impact on their membership,” said DEG Administrator D anny Gredi nberg . “KABA’s support of our program helps to maintain the DEG as a free resource for the collision repair industry, and is a true testament to the commitment the KABA board of directors has made to their member base.” After a recent presentation by DEG to KABA members, KABA V ice President T ony A dams said, “The Kansas Auto Body Association

is proud to support the DEG. Our members, and the industry at large, all benefit reatly fro the throu h their work helping get accurate information into the estimating databases. It just makes sense for us to support an organization that does so much to support our industry.” “As an association we strive to help the shops around Kansas,” said KABA Treasurer J ared N i c hol s on. “Being able to support organizations like DEG helps us further our mission. When the collision repair associations and collision repair shops get together, we can help DEG promote the quality and accuracy of the estimating platforms that we use every day. DEG gives us a voice.“ DEG is funded by member dollars from the Society of Collision Repair Specialists ( SCRS) and the Alliance of Automotive Service Providers ( AASP) , as well as corporate sponsorships from groups such as PPG, Collision Advice, ASA, Spanesi Americas, WMABA, ALLDATA, Redwood City Auto Body, Nylunds Collision Center, Auto Body Hawaii, ABAT, CCA and now KABA. S ou rc e: D E G

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Continued from Cover

Illinois Shops Share returned to work after two negative tests, “it was spring and I had him outside painting fences,” Mayer said. That experience early in the pandemic may have been a positive thing, Mayer said, “because it made us diligent about how to handle any outbreak, and stay ahead of the curve, and we’ve been fortunate to this day.” The other shop owner speaking on the webinar, Bob Gottfred of E rie- LaS alle Bod y S hop in Chicago, said in the early weeks of the pandemic last spring, he “was feeling pretty invincible until all of a sudden all hell broke loose here at both of my shops.” “I would say of the 30-some employees we have, 80% have been a e ted in one ay or another. i ther infe ted or a e ted. hether it be themselves or their loved ones and so they stay home. It’s happened fro our front o e all the ay to our body and paint technicians.” Gottfred, current AASP-IL

Crash Champions Acquires Nine Leading Repair Shops in Midwest Crash Champions, LLC, announced Feb. 3 the acquisition of nine leading repair shops throughout Ohio, Illinois, Missouri, Kansas and Wisconsin. Following the company’s exceptional year of growth in 2020, these top-performing shops will further solidify Crash Champions’ foothold in the vibrant Midwestern market. Surrounding Cleveland, OH, Crash Champions completed the acquisition of three E x c alibu r C ollision repair shops, located across Streetsboro, Chagrin Falls and South Euclid, and comprising 34,200 square feet total for conventional insurance work. These acquisitions build on the company’s successful acquisition of A u to Bod y C ollision and G lass and F red R ieser in Ohio in 2020. In the Chicago, IL, area, Crash Champions acquired C hic ago C ollision, D u P age A u to Bod y and A lbany A u to Bod y , strategically filling a gap in the company’s Chicagoland footprint and securing its positioning in the North Shore area of Irving Park.

In the Kansas City area, Crash Champions has partnered with Weav er’ s A u to C enter in Shawnee, KS, and acquired R ic hard ’ s C ollision C enter in Grandview, MO. With the addition of these two repair shops to earlier acquisitions of P rec ision C ollision C enter and D av e’ s R oe Bod y S hop in Kansas City, Crash Champions has successfully expanded into its seventh U .S. state and strengthened its existing market presence in the broader Kansas City market. In Wisconsin, Crash Champions acquired G illette’ s C ollision C enter in Waukesha, encompassing 8,500 square feet across its facility and boasting I-CAR Gold, Honda First and Assured Performance Manufacturer Certifications. This comes on the heels of the 2020 acquisition of S ilv er S pring A u tomotiv e in West Bend. “Through these strategic acquisitions, Crash Champions will be better positioned to serve the greater Midwestern markets as we continue on this remarkable growth trajectory,” said Matt

See Illinois Shops Share, Page 21

Expanding Tech Start-Up Carsfast Launches Operations in St. Louis Direct from its success in Arizona, Illinois and Texas, new digital start-up Carsfast is now expanding its uni ue ar buyin and finan in services throughout Missouri, starting in St. Louis. St. Louis locals have recently welcomed this contactless service, which allows people to shop and get finan e for thousands of nearby ne cars direct from their cell phone. With operations expanding to other local regions later this month, Carsfast will change the way St. Louis locals buy their next car. “We are thrilled to launch this ne rtifi ial ntelli en e technology in the St. Louis market,” said CEO and co-founder Shaun Sumaru. “We know that the locals of St. Louis and throughout Missouri are looking for an alternative to physically shopping around for cars. We wanted to simplify and personalize this process for them.” After seeing success throughout other states in America, expansion to the broader Missouri state was the obvious next step. The Carsfast team have devel-

oped the new technology shifting interactions entirely to text message so that all buyers have a personalized and tailored experience without ever having to physically see anyone.

Ebert, founder and CEO of Crash Champions. “All nine of these repair shops will now enjoy the opportunity to further professionalize, improve operations and drive top-line growth and profitability under the Crash Champions family of companies. “We look forward to learning from these remarkable shops— who share our mission of unparalleled customer service and industry excellence—to create even greater value for our customers, employees and shareholders for years to come.” Crash Champions is one of the largest independent collision repair MSOs in America, with more than 900 team members serving locations across the greater-Chicago area; Wisconsin; Davenport, IA; Kansas; Missouri; Ohio; and Southern California. For more information, visit www. crashchampions.com. S ou rc e: C rash C hampions

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Virus Liability Protections protection popping back up” at the federal level, said A s hl ey C utti no, an attorney who co-chairs the COV ID-19 litigation practice for Ogletree Deakins. Wisconsin came close on J an. 12 to ena tin the first liability prote tion law of 2021, but fell short because of di eren es bet een the sse bly and Senate versions of a broad COV ID-19 relief bill. Both include liability protections but di er in other provisions su h as the Assembly bill’s proposed ban on employers mandating COV ID-19 vaccines for their workers. Democratic Gov. Tony Evers said he would sign the Senate version if the Assembly agrees to it. Montana’s Senate passed a liability shield bill J an. 18 that now goes to the House for consideration. Republican Gov. Greg Gi anforte has said he supports the measure. State-level liability protections, unlike the federal proposal the Senate GOP promoted for much of last

year, don’t shield employers from coronavirus-related claims under federal employment statutes, such as anti-discrimination or anti-retaliation laws, Cuttino said. They do provide an extra layer of protection against claims such as a workplace wrongful death lawsuit or a complaint of unsafe working conditions, she said. Those types of claims are often, but not always, preempted by workers’ compensation laws or federal Occupational Safety and Health Administration jurisdiction, she added. No Flood, But Litigation ‘Fear’ Chambers of commerce, restaurant associations and other business groups have been calling for liability protections since the pandemic gripped the U .S. last March. They ontend that even the threat of a ood of la suits ould a e it di ult for businesses to reopen after virus-related shutdowns, and that litigation could lead some to close permanently. The American Legislative Exchange Council, an idea-exchange for conservative state lawmakers,

last year drafted model legislation for states to use to enact liability protections. Cuttino and some state legislators advocating for the protections, including Florida Rep. L aw renc e Mc C l ure ( R) , acknowledged there still hasn’t been a rush of liability litigation, in line with evidence from litigation trackers and court dockets. But they say the threat remains signifi ant. “It’s the fear of liability. Our businesses have been through just an unbelievable, uncertain time. Once in a hundred years, right? ” McClure, who’s sponsoring Florida’s H.B. 7, told a House committee that voted to advance the bill J an. 13. “Although the courts aren’t packed, I’ll submit, it’s the fear of frivolous lawsuits as this evolves. e have the obli ation to define that and put the business community at ease.” Trial lawyers’ associations, labor unions and worker advocacy groups oppose liability shields, arguing that limiting people’s ability to hold businesses accountable in court takes away an important incentive for com-

panies to follow proper health and safety protocols to protect workers and usto ers a point that enn sylvania Gov. T om W ol f ( D) echoed when he vetoed a liability shield bill in November. The language in the Florida measure is unconstitutional because it would remove the right to trial by jury, turn a judge into the jury and set “an impossibly high standard, to be honest, to prove by clear and convincing evidence gross negligence on the part of the property owner in failing to follow the guidelines,” said C urry P aj c i c , treasurer of the Florida J ustice Association and a past president of the American Board of Trial Advocates. The Florida AFL-CIO also objected to the bill on similar grounds. Eyes on Indiana, Texas Bills proposing COV ID-19 liability li its also have been filed for in Alabama, Alaska, Indiana, Missouri and North Dakota. Governors or legislative leaders have voiced support for enacting liability protections this year in Arizona and South Carolina, and business groups also

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are urging lawmakers to pass them in New Hampshire and Texas. he spe ifi lan ua e varies so e hat fro state to state as with the laws that states passed in but any in lude prote tions for nonprofits individuals and ov ernment entities such as schools and prisons. ur businesses our health are providers and edu ational institutions should not be put at ris or o peti tive disadvanta e throu h no fault of their o n parti ularly after follo in safety proto ols ” outh arolina ov. H enry Mc Mas ter ( R) said in allin for liability li its durin his an. tate of the tate spee h. e should be areful not to let liti ation ill hat the pande i ould not.” n eor ia daho o a ansas ouisiana i hi an is sissippi evada orth arolina hio laho a ennessee tah and yo in ena ted broad liabil ity restri tions that prote t any or all businesses fro la suits. nu ber of other states adopt ed narrower restrictions to protect spe ifi industries su h as health

are providers or a ers of personal prote tive e uip ent hile a fe overnors issued orders to establish liability prote tions. A handful of those states could ta e further a tion this year. n eor ia for e a ple a oronavirus liability shield la is due to e pire in uly and ouse pea er D av i d R al s ton has voi ed an interest in extending it. n r ansas ov. A s a H utc hi ns on ( R) has called on state lawmakers to e tend and rea r his de laration of a state of e er en y hi h ould allo his order i posin liability re stri tions to re ain in e e t. ith assistan e fro ennifer ay in ia i. We thank Bloomberg Law for reprint permission.

Your leading source for MIDWESTERN Collision Repair News! midwestern.autobodynews.com

Continued from Page 16

Illinois Shops Share board president said the situation reinfor ed the value of net or in ith others in the industry. hen one of the o pany s painters as

Illinois shop owner Joe Mayer said having an employee test positive early in the pandemic helped make the shop more diligent ever since

out be ause of he said one of the other shops in a business roup to hi h he belon s lent e

a painter who came in at night and on ee ends and helped us eep up for a ouple ee s.” ndustry asso iations or net or s ottfred said are pri eless as far as on erned.” on the han es his o pa ny has ade this past year is ta in on ore e hani al or be ause body or fell o so u h ” and fo in vehi les at least three ti es during the process. “The estimators or the porters ill do that at the start then the te hni ians ill do that and then our lean up uy ill do it ” ottfred said. he upside to the past year is that the o pany has learned ho to run a lot leaner. ur sales aren t hat they ere but our net is ood ” ottfred said. o ood thin s an o e out of these thin s. bviously e ish e ere never in the pande i but you learn.”

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Semiconductor Shortage engine line next week because GM sends that engine to Fairfax. In addition, GM will run its Bupyeong 2 assembly plant in South Korea at half capacity beginning the week of Feb. 8. GM builds the Chevy Malibu, Trax and Buick Encore SU V there for sale in the U .S. On J an. 22, Business Korea reported GM planned to cut vehicle production by suspending overtime and extra work at its Bupyeong plant because of the semiconductor shortage. It uses the chips in its electronic control units and infotainment systems. “No production disruptions,” GM spokesman D av i d Barnas told the Free Press the last week of J anuary. “There were rumors last week from suppliers that our Korea operations were being disrupted. But GM Korea corrected those stories.” Barnas said GM will not idle Bupyeong, but will merely run it at half capacity for a week, starting Feb. 8. Workers get paid The U AW reacted to GM’s news by saying its leaders continue to work with major employers, the Biden administration, Congress and suppliers to address the semiconductor shortage. “Over the past 30 years, production of se i ondu tors has been o shored to South Korea, Taiwan and more recently, China,” said U AW spokesman Bri an R othenberg in a statement. “Today, the U nited States only controls manufacturing for about 14% of all semiconductors.” The union negotiated worker protection in the event of parts shortages interrupting production in its contract, he said. U nion workers will receive supplemental pay and unemployment that pays 75% to 80% of salary and ontinued benefits. “However, the U AW is working with employers to minimize the impact on auto manufacturing production as much as possible,” Rothenberg said. GM said union workers at CAMI, represented by U nifor, will be paid through the provisions of their labor agreements, noting that represented

seniority employees will receive about 75% of their compensation through a combination of unemployment and supple ental benefits. Protect pickups and SUVs Demand for semiconductor use is up in part because of the coronavirus pandemic and an increase of laptop computers, which use the semiconductor chips. Cars also use them in a variety of parts and infotainment systems. The union said if the parts were made in America, the industry would have “more ability to respond to these demand issues,” Rothenberg said. He added the U AW is calling on the government to develop trade and policy solutions to bring advanced technology production back to the U .S. GM’s Barnas said semiconductor supply for the global auto industry re ains very uid and its supply chain organization is “working losely ith our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM.” GM is assessing the overall impact to production and Barnas declined to provide an estimated production impact from the planned plant closures. “Our focus is to keep producing our ost in de and produ ts including full-size trucks and SU V s and orvettes for our usto ers ” Barnas said. GM builds its heavy-duty, fullsize pickups at Flint Assembly Plant and its light-duty, full-size pickups at the Fort Wayne Assembly Plant in Indiana. It builds its midsize pickups at Wentzville Assembly in Missouri and its full-size SU V s at Arlington Assembly in Texas. All four plants will continue to run on three shifts and weekend overtime, Barnas said. GM builds the Corvette at Bowling Green Assembly in Kentucky. GM’s assembly plants in Lansing and other parts of Michigan will continue to operate regularly. ue to the uidity around the availability of parts, our current plan is to update the plants each week,” Barnas said. “Our intent is to make up as much production lost at these plants as possible. Importantly, this issue will not impact our commit-

ment to an all-electric future.” Ford impact GM will provide further details on the semiconductor issue when it reports its 2020 earnings Feb. 10. Ford has been hit hard by a global parts shortage with factory workers in several states receivin te porary layo s or shift reductions. Ford has reduced shifts at its Michigan Dearborn Truck Plant, which employs 4,600 hourly workers and builds the 2021 F-150 pickup. Likewise, it has shortened evening and day shifts at Kansas City Assembly, which employs 7,300 hourly workers and builds the F-150. At the Chicago Assembly Plant, which employs 5,300 hourly workers and builds the 2021 Ford Explorer, Lincoln Aviator and Police Interceptor, Ford is expected to announce a potential production disruption. Ford’s Louisville Assembly Plant is down through Feb. 7 because of the shorta e. hat a e ts about hourly workers building the Ford Escape and Lincoln Corsair. Stellantis planned to shutter plants

in Mexico and Canada, building the J eep Compass and Chrysler 300, Dodge Charger and Dodge Challenger, through the end of J anuary. A Stellantis spokeswoman said Wednesday that its North American facilities are running in February and the automaker continues to work closely with its global supply chain network to monitor the industry-wide issue. Automakers globally that have been impacted by the chip shortage and have cut production include Toyota, V olkswagen, Honda, Mercedes-Benz, Audi, Subaru and Nissan. GM’s Global Purchasing and Supply chain organization has mana ed to fend o plant disruptions until now in part due to getting a jump start on the problem, a source familiar with the matter said, but declined to be named because he is not authorized to share information with the media. The group also has a lot of experience from setting up ventilator manufacturing in a matter of days last spring and managing GM through the 2010 tsunami in J apan. We thank the D etroit F ree P ress for reprint permission.

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Continued from Cover

Buy American Act tors will need to closely monitor developments to implement the order to ensure compliance and maximize their ability to ontinue benefitin from these preferences. The federal government spends some $ 600 billion annually on goods and services. Federal law requires government agencies to give preferen es to eri an fir s. In the past, Buy American requirements have not been consistently enforced and waivers of the requirements have become common. The executive order aims to “strengthen and enforce ‘ Buy American’ so that the massive amount of taxpayer money the federal government spends every year on everything from defense equipment to steel to auto eets is used to help American manufacturers and their workers.” Among other things, the executive order will close loopholes that allo o panies to o shore produ tion and jobs while still qualifying for domestic preferences. Federal agencies are directed to close current loopholes in how domestic content is measured and increase domestic content requirements. To accomplish this, the J an. 25 executive order: Directs an increase in the threshold amount of domestic content for a product to be made in the U .S. and qualify under the Buy America law. “The content threshold of 50% isn’t high enough,” according to Biden’s remarks before signing the executive order. Directs a change in how domestic content is measured, basically changing how the government

de ides if a produ t is su iently “Made in America”: “The way we measure the content doesn’t account for U .S jobs and economic activity,” and that will change, Biden said. The new proposed test would measure domestic content by the value that is added to the product through U .S.based production or U .S. job-supporting economic activity. Creates a new Made in Ameria e ithin the e of an agement and Budget ( OMB) and appoints a new “Director of Made in America” to oversee implementation of the executive order. Directs a central review of agency waivers of Buy American requirements, to reduce the number of unnecessary waivers. The review process makes issuing a waiver more cumbersome and time-consuming for agencies. It also includes the publication of waivers on a publicly available website. Directs an increase in the price preferen es for do esti oods the di eren e in pri e over hi h government can buy a product from a non-U .S. supplier. This pricing premium was recently increased si nifi antly under a inal ule is sued J an. 19, from 6% to 20% for large businesses and from 12% to 30% for small businesses. It is unclear whether the Federal Acquisition Regulatory ( FAR) Council will propose additional increases. Directs the FAR Council to review existing constraints on the extension of the requirements in Made in America Laws to information technology that is a commercial item and develop recommendations for lifting these constraints. Supports enforcement of the J ones Act, requiring the use of U .S.a ed vessels arryin ar o be tween U .S. ports, to support U .S. pro-

duction and U .S. workers. Although it is unclear whether the proposed changes will simplify compliance with the Made in Ameri a la s it is li ely they ill si nifi antly a e t hi h produ ts ualify for preferential treatment. That said, it is worth highlighting several important limitations to the scope of the order: The Administration’s goal to increase federal purchasing of domestic products is limited by a number of treaty obligations. U nder the Trade Agreements Act ( TAA) , foreign end products produced in certain countries must be treated as equivalent to U .S. products for purposes of the BAA if they are part of an acquisition that is equal to or exceeds certain monetary thresholds set forth in Section 25.402 of the Federal Acquisition Regulations ( FAR) . The Department of Defense ( DOD) has entered into reciprocal procurement agreements with 27 foreign counterparts, and has determined that it would be inconsistent with the public interest to apply Buy American Act restrictions on prod-

ucts from these 27 qualifying countries. nli e the o ers that fall under these blanket DOD waivers are not subject to any threshold. Within 180 days ( on or before J uly 24) , the FAR Council must consider for publication and comment amendments to the FAR. However, recent history indicates that any han es ill li ely not be e e tive for at least another year. Nonetheless, the executive order fulfills a pro ise of the iden campaign and is intended to ensure the federal government is investing taxpayer dollars in American businesses, both small and large. The administration’s policy is to buy fro all of eri a in lud ing minority entrepreneurs and businesses so that ade in eri a” means “Made in All of America.” Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is eneral in nature and is not o ered and cannot be considered as legal advice for any particular situation. We thank J D S u pra for reprint permission.

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Please contact these dealers for your Honda or Acura Genuine parts needs. MICHIGAN

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autobodynews.com / MARCH 2021 AUTOBODY NEWS 27

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

How to Improve Paint Materials Reimbursement I’ve been getting some phone calls recently from shops concerned about materials reimbursement when refinishin vehi les ith three or four sta e finishes. thou ht d address this and the subject of materials reimburseent in eneral here. First, it’s important to know all three estimating systems have forulas related to three sta e finishes. CCC Information Services and Mitchell International do not have formulas for four-stage. Audatex says it believes the three-stage formula should apply to a four-stage vehi le that s a hole onversation for another day. As I outline any time I talk about negotiating payment for something, materials reimbursement comes down to four key questions: Is what you’re asking for required? Is it included? Is there a pre-determined time? And if not, what is it worth? Y ou can watch a new three-minute video I created with SCRS on those four questions here: https: / / www.youtube.com/ watch? v = eGv9zJ Hn6J g So let’s walk through those. First, is added materials reimbursement required for three- and four-stage vehicles? One way to document the answer is yes is to

and if it s a three or four sta e finish it lists that as a special color. But here’s another cool idea: Y ou can check online for sales literature from the vehicle manufacturer related to that vehicle. I’ve found Honda and Toyota brochures, for example, that clearly show new car buyers who choose vehicles with

I know Axalta Coating Systems, for example, gives an estimator the ability to print o fro the scale a guide to specialty colors. It’s a regularly updated list of what make, model and year vehicles have three or four sta e finishes or that require a “limited use toner.” Other paint manufacturers may

o er so ethin si ilar. t s another way to demonstrate why additional reimbursement for materials is needed for those vehicles. The next two of the four negotiation questions can be answered quickly. All of the estimating systems clearly state materials are not See How to Improve, Page 39

The “Who Pays for What?” surveys have found a growing percentage of shops use invoicing systems to bill for refinish materials

certain colors pay a premium for those finishes. It seems to me that rather than telling shops they won’t pay more for the necessary materials when spe ialty finishes are involved insurance companies should be assessing premiums based on the paint ode iven it ta es ore to refinish those vehicles.

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Another possible source of negotiation help when dealing with spe ialty finishes he anufa turer of the paint line you are spraying.

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Midwest Associations with Chasidy Rae Sisk

National Associations with Chasidy Rae Sisk

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@gmail.com.

CIECAST Prepares Collision Repairers for the EV Revolution

Northwest Associations

As electric vehicles become increas- manufacture the vehicle. Regardless in ly prevalent the dison le - of severity, follow the OEM procewith Chasidy Rae Sisk tric Institute anticipates 18.7 million dures without exception to ensure s ill be on the road by the vehicles are safe.” how will these vehicles impact the Barry asked about possible collision repair industry in general changes in the way OEMs commuand your shop spe ifi ally o an nicate with the collision industry reyou prepare? garding repair standards. General Motors’ J ohn Ec k , “We need to make it easier for with Ed Attanasio C hri s Ev ans from State Farm, and repairers to access; we want to work P ete T ag l i ap i etra of NuGen IT, an with the industry to ensure they can OEC company, answered these ques- repair these vehicles safely,” Eck

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Associations Assembling with Ed Attanasio

pact is damaged most frequently, rear impact damage seems to be more frequent in this population; however, a lot of the damage is on the front of the vehicle in total loss scenarios. “Regardless of severity, most EV repairs require some sort of recalibration, and there’s a lot of movement and trending in the industry around OE repair procedures.” Mentioning that some OEMs have implemented security gateway modules that present a hurdle for repairers, Evans expressed excitement to see Ford and other OEMs opening their communication systems. “The data that exists in event data recorders is going to become more relevant in the future,” Evans said. “Communication from the vehicle is only going to increase. However, the data that’s captured is owned by the vehicle owner or lessee, so we have to contend with the added chal-

lenge of introducing consumers into the exchange of data.” Evans provided a brief synopsis of State Farm’s collaboration with Ford, announced in August 2020, in which the insurer is integrating directly with the car itself as they look at solutions around rating, policies and driving behaviors. “The objective is to develop and understand the capabilities, leverage the sophistication, and use this technolo y to in rease e ien ies in claims handling,” he said. “There’s still a lot to learn.” Tagliapietra, business development leader for NuGen IT, rounded out the series of presenters. He began by discussing recent trends related to OEs’ involvement in the repair process. ith the rise of and refine ent to ertifi ation net or s there s an See CIECAST Prepares, Page 46

Association Meetings with Thomas Franklin

HYUNDAI

Old School Know How

tions and more J an. 26 during CIE- said. “We are exploring better and CAST: Preparing for the EV Revolu- deeper integration of our content into with Ed Attanasio tion, moderated by CIECA Executive the or o pro ess throu h a vaDirector P aul Barry . riety of means to make the process Eck, collision manager of GM’s easier.” customer care & aftersales wholesale Eck also advocates for imdealer channel, began by discussing proved collaboration among OEMs, some of the opportunities EV s create insurers and repairers, pointing out with Chasidy for vehicle manufacturers, such Rae as Sisk the many shared metrics as well the ability to work on new technolo- as the shared consumer everyone y and an opportunity for diversifi a- wants to serve. tion across the industry. Next, Evans, P& C claim con“The build of the [ electric] vehi- sultant for State Farm Insurance le is di erent and thou h the i pa t Companies, shared projections that may not be as with severeThomas structurally,Franklin it 20% to 30% of new cars on the road shouldn’t be very dissimilar to what will be an EV by 2030, noting State [ collision repairers] currently see,” Farm has seen the number of EV s Eck said. they insure quadruple since 2018. “As long as shops follow the “The market is signaling growth,” OEM repair procedures and safety he said. protocols, repairers should be able to “From a claims standpoint, with Attanasio we’ve noticed an interesting dynamhandle EV repair,” EckEd emphasized. “OEs know the vehicles better than ic with EV s,” Evans added. “U nlike anyone e desi n en ineer and most collisions where the front im-

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with Ed Attanasio

Shop Strategies

Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

COVID-19 Vaccinations in the Workplace: What to Consider for Your Collision Repair Facility Body Shops Giving Back As COV ID-19with vaccines roll Phillips out and well-being best practices. Stacey across the U .S., employers must deRegardless of the approach taktermine whether they will require en, Cherveny said, there are foundavaccinations in the workplace and tional things to consider. She recomif they should set up a program to mended employers determine if their administer them. culture will sustain a workplace vacThere are essentially three opination pro ra the finan ial ost Stacey tions available,with according to C Phillips arof launching a program and compliri e B. C herv eny , Es q . senior vice ance issues, as well as whether they president of strategic client will be able to recruit and solutions for the south reretain talent if they mandate gion of HU B International. a program. Employers can mand ate vaccinations for all Employment Law with Stacey Phillips employees with some legalCherveny shared informaly required exceptions; motion about general employtiv ate and create voluntary Carrie B. Cherveny, ment law to understand programs with built-in mobefore building a vacciEsq. senior vice tivators to drive everyone to president of strategic nation program and some get the vaccine; or ed u c ate client solutions, for business and legal considerthe south region of sta about the va ine and HUB International ations. This applies whether with Victoria Antonelli companies administer the then leave it up to them to choose. program themselves or bring in a “Businesses have some really third-party vendor who is contracted big decisions to make, and while to deliver the vaccine. the safety conversation that we have all been having since March 2020 Americans with Disabilities Act as filled ith a lot of nuan es and The Americans with Disabilities Act EdtheAttanasio choices to make,with I think vaccine re uires ualified e ploy conversation is even more complex ees with disabling health or mediand di ult to navi ate ” said her cal conditions, under the ADA, are veny. “Health care has been doing it provided with reasonable accomfor years, but these are new conver- modations. Although state laws may sations and topics for other indus- vary, Cherveny explained the ADA tries... This is unchartered territory.” typically applies to businesses with During a virtual pan- Ledoux 15 or more employees who with Gary el discussion focused on work for 20 or more weeks “COV ID-19 V accine in the in the prior or current year. Workplace,” Cherveny and “The employee and the two other representatives employer exchange inforfrom HU B International, mation to arrive at an aca global insurance broker, commodation that allows discussed some with of the Stacey rules Cory the employee to remain at Phillips Jorbin, Esq. and implications when setwork performing the essenchief compliance ting up a workplace protial functions of the job,” officer, employee gram. They included C ory benefits, west region, said Cherveny. “The emJ orbi n, Es q . chief compli- HUB International ployer ultimately gets to dean e o er e ployee ben termine the accommodation efits est re ion and W endy K i ng , that makes the most sense in light of director of health and performance. the medical information and docuwith Mike Anderson To help companies plan and mentation provided by the employee develop strategies, Cherveny, J orbin and the nature of the job.” and King shared their expertise about U nder ADA guidelines, eme ploy ent la benefits re ulations ployers are strictly limited in the

Tips for Busy Body Shops My SEMA

Shop Strategies

medical information they can ask for ry under the ADA, although the necprior to an o er of e ploy ent. essary and related pre-vaccination “Y our conversation with a job questions are. applicant is limited to the essential Regardless of the type of profunctions of what it takes to perform gram established, once employers the ob ” she said. fter an o er is become aware there is a medical condition that prohibits a team made and before an employmember from receiving the ee begins working, compavaccine, they must determine nies have the most latitude to if there is a reasonable acgather medical information. commodation available. In terms of the vaccine, For example, this could Cherveny said asking workmean working remotely or in ers to provide proof of vacan o e ith a losed door cination is not a medical inWendy King, quiry regulated or managed director of health and or plexiglass or wearing additional personal protective by the ADA. performance, HUB International equipment, such as an N95 “Y ou can simply ask an or double mask. employee to provide proof of receiving the vaccine and it’s not considered a medical inquiry under ADA Legitimate Business Justification If an employee chooses or is not able the ADA,” she said. Administering the vaccine is to get a vaccine and the employer also not considered a medical inqui- feels this represents a direct threat of

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spre plac

to re in e wor the C have anal the dire

man veny ting polic mod only clud

ploy ( EE Con struc wor the e

requ spe if a the

spreading COV ID-19 in the workplace, Cherveny said to be cautious. “Be very careful if you want to rely on the direct threat defense in excluding an employee from the workforce because they can’t get the COV ID vaccine,” she said. “Y ou have to o throu h a very spe ifi analysis to determine whether or not the employee actually represents a direct threat.” One of the biggest questions management asks, according to Cherveny is if sta an be fired for not etting the vaccine if there is a mandatory policy in place. If there is no accommodation available, Cherveny said, only then may an employee be excluded from the workforce. However, both the Equal Employment Opportunity Commission ( EEOC) and Centers for Disease Control and Prevention ( CDC) instruct employers to explore remote/ work-at-home options before ending the employee’s employment. Additionally, ADA guidelines require businesses to go through a spe ifi pro ess before deter inin if an employee cannot remain in the workplace. There are also local

health and state rules to abide by. o not start firin e ployees for failure to get the vaccine without first tal in to outside ounsel and being sure that you are up to speed and up to date on any local requireents or prohibitions fro firin employees for failure to get the vaccine,” said Cherveny. “Proceed with extreme caution!”

“However, we very much reco end you be e ible ith your pregnant workforce and allow them accommodation-like opportunities as well,” she said. Cherveny said to keep in mind some pregnant women may have medical complications associated with pregnancy that may qualify under the ADA.

Religious Exemptions In addition to the ADA, there are religious exemptions associated with the vaccine. “There are many religions that are opposed to vaccinations and under Title V II of the Civil Rights Act,” said Cherveny. As a result, companies are required to engage in a cooperative, collaborative process to identify an appropriate accommodation, much like the ADA interactive process.

Medical Confidentiality While information is being gathered in the process of administering a voluntary or mandatory vaccination program, employers will become a are of onfidential private edical information about their employees. Cherveny said there are a limited number of people whom it can be legally shared with, such as immediate managers and supervisors, and hu an resour es those ho need to know,” which is construed very narrowly.

Pregnancy Discrimination Act As of J anuary, the vaccine had not been tested or approved for pregnant women. When it is available, Cherveny said there is no obligation to accommodate a pregnant individual.

Workers Compensation If an employee seeks medical attention or misses time at work due to any side e e ts asso iated ith the vaccine, workers compensation may

kick in depending on the insurer carrier and the state. National Labor Relations Act Section 7 of the National Labor Relations Act allows workers to freely discuss the terms and conditions of employment. “Employees who want to talk about your vaccine program have a right to do so; you generally can’t disipline or fire the ” e plained herveny. Occupational Safety and Health Act (OSHA) OSHA includes the General Duty Clause that states businesses must provide a safe working environment for employees. Cherveny said there are two schools of thought regarding vaccines in the workplace. One is that it is unsafe to require a vaccine in the workplace because it is only under emergency use authorization. As a result, she said some law fir s and other sub e t atter e perts advise against mandatory programs. n the ip side others are ta in the position that the CDC and FDA recommend people get vaccinated, so it would be unsafe not to vaccinate.

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“Either way, it’s important to talk to counsel as you make these important decisions,” said Cherveny. “Y ou may or may not stumble into some risk exposure or claim later that andatin or not andatin o erin or not o erin it reated an unsafe working environment in your workplace.” Regardless of the approach taken, Cherveny reminded attendees that the CDC and OSHA guidance instructs employers to continue their COV ID-19 safety programs. This includes wearing masks, applying disinfectant, social distancing and following all safety protocols. Employee Benefits Regulations orbin addressed e ployee benefit regulations associated with the vaccine, including cost. “Essentially, all health plans, except for grandfathered plans, need to cover the cost of the vaccine,” he said. This includes fully-insured and self-insured plans, non-ERISA ( Employees Retirement Income Security Act of 1974) , MEC ( Minimum Essential Coverage) , individual market plans, Medicare and Medicaid. While the federal government is funding the cost of the vaccine, the health plan must pay the administration fees. J orbin said the amount will vary based on provider, geographic area and contract negotiations. Those without health coverage will be able to obtain the vaccines for free, although the timeframe is currently unknown. “Part of that will depend on the state they live in and what phase of distribution they fall into,” he said. When it comes to deciding between in-network and out-of-network providers, J orbin said in-network providers must be paid the negotiated rates under the insurance plan. If going out-of-network, the o ial lan ua e states roviders must be reimbursed an amount that is reasonable, as determined in comparison to prevailing market rates for such service.” The federal government has set the minimum amount considered reasonable the same as what Medicare pays for the vaccine. In a situation when an out-ofnetwork provider doesn’t accept the price paid by the plan as reasonable,

there is a potential for what is called “balance billing.” This is where the provider seeks full payment of the charge. As a result, J orbin said it usually pays to go to an in-network provider. For businesses that operate in multiple states, J orbin said there might

be di erent prevailin ar et rates for the vaccine depending on location. Wellness Programs Employers must also decide if the fees associated with a vaccination program should be associated with a health plan or another cost center, such as a wellness plan or safety program. King pointed out depression and serious psychological distress are factors to consider. Prior to the vaccination being rolled out, depression and anxiety ere at an all ti e hi h she said anxiety rates were three times higher in 2020 than in 2019, and depression and diagnosis of depression quadrupled over the same period. “We would be remiss not to start with the foundation around employee state of mind,” said King. “The vaccine is a hot topic. It’s one more layer that many employees are stressing over right now.” While some feel it is the light at the end of the tunnel and the vaccination signals an end to what has been going on, King said others are hesitant. She encourages management to acknowledge many have anxiety and fear the unknown. However, people are beginning to think of the risk and reward like any other decision. “They are going through the process to determine if it is worth the risk to get to the reward, which we know is getting back to some sense of normalcy,” said King. As businesses decide if they will mandate a program or begin with a voluntary o erin in re o

mends approaching it in a way that treats people like people. “Being cognizant that employees are already having a lot of personal anxiety around the vaccine will help you to really approach it in a humanistic way and balance your corporate goals with the culture goals in your organization.” As of J anuary, about 40% of Americans say they will take the vaccine as soon as it is available, said King. According to the Kaiser Family Foundation, another 30% will probably get it. “Therefore, about 70% will get the vaccine whether or not you structure it as mandatory or voluntary,” said King. The top reason for hesitancy is the worry about potential side effects. However, statistics are showing interest is growing with time. “The closest thing we have to o pare it to is the u va ine but we can’t compare it equally to the u be ause it s a ne va ine ” she said. “Today, studies show that physicians are the highest trusted authority, not the employer; people want to talk to a doctor, understand the facts and feel comfortable taking the vaccine,” she said. For businesses considering offerin individual finan ial in entives King pointed out it can pose complexities. “It’s not like rewarding an employee for going to an annual visit with a physician,” she said. “This is a personal decision for many.” or those ho de ide to o er in centives, she recommends those with a lo er finan ial value su h as ift cards and water bottles, so individuals don’t feel they are missing out on a big incentive. Another option is to o er a roup in entive su h as a lunch or a competition among departments. Like most wellness programs, King said companies must think through the required steps to ensure that the engagement, medical information, appropriate disclosures and incentive limits are set up in a way that keeps the organization compliant. In terms of vaccination distribution, as of J anuary, there is no national onside vaccination provider.

V accine rollouts across the country urrently di er dependin on the state; even age requirements vary. Therefore, King recommends referring to state regulatory websites, connecting with local pharmaies and en oura in sta to rea h out to their physicians. King said this is a good time to have conversations with managers about what’s in store and educate them. She said it could go a long way in ensuring they are going to embrace the approach and be a positive word of mouth in the organization. “However you decide to coordinate this within an organization, whether it’s mandatory or voluntary and ith or ithout a finan ial incentive, leadership is really going to need to get in front of the communications around it,” said King. “It’s a complex situation and going to require dedicated communications.” his ay in lude yers post cards and other educational materials o ered by the and or ani zations like HU B International. Looking ahead, King predicts See COVID-19 Vaccinations, Page 47

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Jeff Peevy Shares Growth Plans Related to I-CAR Tech Center by Stacey Phillips

In 1979, the Inter-Industry Conference on Auto Collision Repair ( I-CAR) was established as a result of the introduction of the frontwheel-drive unibody vehicle, according to Jeff Peevy, vice president of technical products, programs and services for I-CAR. “The industry came to the realization that it didn’t know how to safely repair that type of vehicle,” said Peevy, who has been involved with the organization for the past three decades. “I-CAR came into existen e to fulfill that need to tea h the industry to help understand the correct way to repair the car.” ro there be an o erin eldin trainin and ertifi ation to meet the needs of the industry. As new automotive features were introduced over the years, such as seatbelts, airbags and anti-lock brakes, Peevy said I-CAR has been a driving force in providing the industry with the knowledge and skills necessary to repair vehicles correctly. oday is no di erent. ith an increase in the number of electric and high-voltage vehicles on the road as well as the development of ADAS features that need to be calibrated so the car can function as designed, I-CAR has new challenges to take on. “We need to make sure we are able to support the collision repairers out there with accessible, on-demand and relevant education,” said Peevy. “We have to do this work as early as we possibly can to keep the industry on top of it.” I had the opportunity to talk to Peevy about his new role at I-CAR and its initiatives related to technical training and the growth of I-CAR’s technical capabilities and capacities.

Q: A:

Can you tell us about your new role?

I’ve been involved with I-CAR as a volunteer or instructor since 1990 and part of its sta for years. oined the organization as a regional manager in 1998, and have also worked as a national field ana er dire tor and ultimately, held a senior director position.

I temporarily left I-CAR in 2015 to help the Automotive Management Institute ( AMi) rebuild its accreditation program and stayed there for five years. Throughout my career, I always felt the role of technical training was very important to ensure a complete, safe and quality repair. Frankly, I missed working in this area, and rejoined I-CAR in J uly 2020. My current role was developed to help the organization meet its

industry.

Q: ship?

How will I-CAR meet this objective under your leader-

We never lose sight of our vision: “That every person in the collision repair industry has the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the onsu er.”

The I-CAR Tech Center has extensive video and lighting equipment to produce the various training and information products for the industry

objectives in terms of technical positioning. This includes working on the future development of I-CAR’s curriculum and training to support the industry.

When it comes to technical positioning and training, what is I-CAR’s goal?

By nature, I-CAR is a natural collaborator in the industry. It’s in our DNA. We serve and are represented by all of the inter-industry segments. Although we’re already in a global leadership position, things are growing and changing so rapidly that we needed to get in another gear to keep up and ensure we are providing the knowledge, skills, testing and information the collision repair industry requires. Our technical objective is to increase I-CAR’s global leadership position and technical presence by expanding our technical capability, capacity and expertise to meet the growing needs of the collision repair

As a result, we took a hard look at what we needed to do technically to ensure our vision is fulfilled as well as expand how the information is delivered. It comes down to our strategic technical planning, expansion and overall execution. We face the very same things a collision repair shop faces in needing to add tools and equipment, space and expertise to keep up with the increasing momentum of change.

Q: A:

Can you tell us about the I-CAR Tech Center?

The I-CAR Tech Center, in Appleton, WI, houses the equivalent of a body shop with a spray booth, welding stations, lifts and a lot of equipment. Additionally, it has extensive video and lighting equipment to produce the various training and information products and services most of the industry sees. Since the main role of the center is to support the development of I-CAR’s curriculum and training,

there must be a higher level of understanding of technology coming down the road. From this facility, we support OEMs, suppliers and all industry segments in some capacity. I don’t believe the industry has had a chance to be exposed to I-CAR’s world-class technicians who typically work out of the Tech Center. They are the ones who do the research to understand vehicle and repair technology. Many have been with I-CAR for years. It’s an amazing group and it’s important to recognize the level of dedication and knowledge they have. They are really serious about their role in understanding the information and developing ways to teach it. In addition, our talented group of subject matter experts working with our instructional designers, video and graphics teams work year-round at the facility to develop I-CAR’s curriculum, which consists of both online, virtual and hands-on classes. We’re all working from home right now due to the pandemic, except when in-shop work is needed, but hope to be back in the center when it is safe to do so.

Q: A:

What are some of the expansion plans in the works?

Q: A:

What can we expect to see from I-CAR in the future?

We are currently building a world-class ADAS calibration lab, so we can expand our resear h and develop ent spe ifi to ADAS-related activities, and do so in an e e tive and e ient ay. This also allows us to expand our support of the car manufacturers. One of our next projects includes building a dedicated electric vehicle lab so we continue our leadership position in understanding the repairs of these vehicles and further support the OEMs. By keeping up with the latest repair procedures and collision repair information, it allows us to be the link between collision repairers and car manufacturers.

Not only will the quality of our courses continue to grow, but the industry is also going to see an increased level of accessibility

38 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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through online and hands-on learning. We have plans to do some very innovative things to help learners be ore en a ed and learn ore e ciently. We’re blessed to have a lot of instructors who currently teach both virtual and in-person, and we want to make sure to support them. I also think it is important I-CAR continues to increase our technical leadership in light of the changes taking place. J ust as our industry is growing and our shops are taking more training to keep up with changes in technology, our organization’s technical department has to do the same. We recently brought Dirk Fuchs onboard as I-CAR’s director of technical programs and services. He oversees the repair technical support ( RTS) and has a strong global understanding of electric vehicles, as well as ADAS calibration. We already have subject matter experts around those disciplines; however, coming from Germany, he brings deeper knowledge from other parts of the world. The changing technology in

these cars requires a close relationship with car manufacturers. As a result, I see us continuing to grow deeper relationships with OEMs and increasing our ability to support them, which will enable us to better support collision repairers. ou ill see us et very spe ifi on what we share with the industry. We’re currently working on a social media strategy to share information about our great technical team and all of the work they do behind the scenes. We’d really love the industry to have access to the inner-workings and get to know the personalities and the impressive level of expertise available. I think it will be very interesting to our industry. As we move forward with our initiatives, we will continue to collaborate with the industry and welcome feedback. We really want all stakeholders to understand what we are doing and get involved. It’s all about supporting the industry and those who are repairing vehi les hi h ulti ately benefits the consumer with a complete, safe and quality repair.

Continued from Page 28

How to Improve in luded in the refinish labor ti es and there’s no pre-determined “time” for materials. Don’t forget you can always use the Database Enhancement Gateway ( www.DEGweb.org) if there’s a question about whether something is included or not-included. o in ter s of refinish aterials it comes down to the fourth negotiation question: What’s it’s worth? We’ll have some of the very latest industry data on that in March, when the report on our “Who Pays for hat ” survey related to refinish, which took place in J anuary, is compiled. But even the 2020 survey report o ers so e ood insi hts. lthou h about 70% of shops still rely on the traditional ultiplier ethod dollars per refinish hour to atte pt to cover their cost of paint and materials, that’s been changing. The percentage of shops using invoicing syste s to bill for refinish aterials has steadily risen over the past five

years, from 19% to 28% . And the majority of shops who use them say they are paid by the eight largest insurers “always” or “most of the time” when they bill based on the charges calculated by their invoicing system. Shops report with the exception of GEICO, the top eight insurers all agree to the invoiced amount 60% to 70% of the time. More than half of shops using a materials invoicing system say they use their paint company scale to produce these invoices; that’s more than twice the percentage that scale-produced invoices as recently as 2016. More than one in four shops using invoicing systems use Mitchell’s efinish aterials al ulator. nd about 15% say they use some other system, such as PMC Logic, PaintEx, etc. I believe this shift toward using invoicing versus the multiplier method will continue, particularly as the use of three-stage, four-stage and other spe ialty finishes in reases and as the paint companies continue to improve the integration of their paint scales and systems with the estimating and shop management systems.

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Herb Lieberman—A Life of Service and wholesale sales to the professional repair industry.” Many in the collision repair business Lieberman’s father and grandfaknow industry icon H erb L i eberther continued their side of the busiman from so many CIC meetings, ness, and Lieberman started buying and his well-known relationship late-model totals, mostly Chevrolets with the recycle industry and after- and Cadillacs because their parts market collision parts industries. were in the most demand at the time. Lieberman recently retired after U nder Lieberman’s direction, a 60-plus year professional career. the business name changed to CADAutobody News caught up with him nCHEV Inc DBA Lakenor Auto Salfor an in-depth look at his life. vage. he first ar brou ht in Early Beginnings 1957 was a 1954 Pontiac… The Lieberman family has hit in the rear,” Lieberman been associated with the remembered. “One of our auto wrecking industry major sources of totals was since 1904. But this story the Auto Club of Southern starts in 1952, at the corner California. They had a large of Lakeland Road and Norlot in Gardena ( CA) and Herb Lieberman walk Boulevard in Santa Fe only sold to state licensed Springs, CA, near the intersection dismantlers and dealers.” of the now-super busy I-5 and I-605 freeways. Lady Bird Strikes At that time, the area was pretty Things started to change dramatidesolate. It was on this corner, in a cally for the auto-wrecking business 3.5-acre abandoned cow pasture sur- during the L y ndon J ohns on adminrounded by oil wells, where Herb’s istration, between 1963 and 1969. father, A l ex L i eberman, and grand- First lady L ady Bi rd J ohns on was father, W i l l i am L i eberman, found- on a hi h ay beautifi ation rusade ed The Lakenor Scrap Metal & Auto to rid all federally-funded highways Wrecking Business. of unsightly billboards and “junkLieberman’s grandfather re- yards.” This meant many wrecking mained on site while his father drove yards were issued “conditional use around to industrial accounts collect- permits,” meaning the city could reing scrap metal. Eventually, the scrap move the yard by simply not renewroutes were discontinued and both ing its annual business license. father and grandfather worked on site “This also led to city and state collecting metal and end-of-life cars. regulations of our industry as well as “These were not your late-mod- federal regulations, such as federal el totals but true end of life ars storm water permits and storm water just scrap, purchased as scrap,” run o testin ” ieber an noted. Lieberman said. “If any retail cus- personally, via the Automotive Reto er anted to buy a part o one of cyclers Association, worked on the the cars, they pulled the part themi h ay eautifi ation t as ell selves and it was plus-money.” as the federal act requiring the V IN In the early days, recycling was to be put on 16 major components of very profitable noted ieber an. the vehicle by the OEM.” “Y ou almost couldn’t lose money. Cost of inventory was low, cost Beyond Chevrolet and Cadillac of labor was low and there was little Initially, under Liberman’s direcgovernment interference.” tion, Lakenor did business primarily Lieberman’s U .S. Army service with Chevrolet and Cadillac dealer ended in 1957. body shops. But the collision indus“My father asked me to come try was changing. The DRP concept into the business as a partner,” he was growing and DRP shops were said. “I told him that I really appreci- required to work on all makes. ated the o er but as not interested To stay current with the indusin the scrap metal side of the busi- try, Lakenor adjusted its inventory ness. I wanted to move the company to all do esti brands five years into late-model total loss vehicles old and newer. But the growing U .S. by Gary Ledoux

eet also in luded any forei n nameplates, and Lakenor could not carry every line and be “inventory e ient.” “So we established respectful working relations with ten other good recyclers,” Lieberman said. “We agreed to refer sales to each other with no mark-up in price and referred all potential sales to each other with the agreement that we would deliver direct and bill direct but not try and steal each other’s accounts. The group we formed was called TeleWrecker.” “Only processing late model domestic vehicles,” Lieberman continued, “allowed us to maximize our request-to-sales ratio. We turned our inventory four times per year. We also had long-term professionals on our team who knew their business and how they were expected to operate. “Our sales volume was in the top 2% of our industry nationally. We also had a complete computerized and priced inventory. Our employees were very loyal. At one

time, not including any Lieberman family members, the average longevity of our company employees was 20 years.” LKQ Comes Knocking Lieberman’s son, Barry L i eberman, was born in 1960. He completed high school, spent a few years at U C Santa Barbara and then decided school was not for him. Wanting to give his son the sa e opportunity o ered by his father and grandfather, Lieberman made Barry part of the family business, and he eventually became the fourth-generation family member to run the company. In fact, Barry was running the company, and Lieberman was semi-retired when LKQ came knocking in 1999. Being semi-retired, Lieberman thought it was not his place to make the decision to sell or not. His father, now fully retired, had started the business so he had a big sentimental stake in the company, and his son was now running it. Lieberman left

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the decision up to them. Barry enjoyed the recycle business, but hated the management side. With Lieberman soon to fully retire, Barry just didn’t want the responsibility. So, the decision was made to sell to LKQ. Barry stayed on for two years while LKQ found a suitable replacement. Barry went on to sell real estate in California’s beautiful Lake Arrowhead area. Herb Lieberman continued his work with the Automotive Recycling Association. A Lifetime of Service Never one to sit on the sidelines, Lieberman knew it would take involvement by himself and others in the recycle business to improve the industry. He is a past president of both the Auto Dismantlers of Southern California and the Automotive Recyclers Association, and past member of the California Auto Dismantlers Association Executive Committee. He was active in and helped establish the California Auto Body Association, and participated in many Collision Industry Conference com-

mittees, including the Parts and Best Practices committees. He was active with ASA and I-CAR, as well as working with several OEs on their recycling operations, including American Hon-

da, Cadillac, Ford and BMW North America. “I was invited by BMW to visit and comment on their motor vehicle recycling operation in Germany,” Lieberman said. “I very much enjoyed working with all of the industry associations, as well as the OEMs.” Lakenor Today The Santa Fe Springs property originally occupied by Lakenor is now leased by Caterpillar’s parts division. The area

is completely commercialized. The recycled parts business, now owned by LKQ Corp., has a 200,000-square foot warehouse in Santa Fe Springs, fed by a 45-acre dismantling operation in California’s high-desert area. Santa Fe Springs is now the LKQ distribution hub for Southern California. Today’s Market Asked about today’s challenges in the recycle business, Lieberman said, “The industry today is fraught with challenges...very high cost of goods with total loss salvage no longer sold only to dismantlers and dealers by sealed bid. They are sold to the highest bidder anywhere in the world via open auction on the internet. “Moreover, recyclable parts inventory availability and pricing is available to anyone driving prices down. So, we are forced to compete worldwide, pay the highest prices for our inventory and then sell our products for the lowest prices listed....and still try to be profitable.”

OEM Parts You Need and Trust.

Of aftermarket collision parts, Lieberman noted, “The quality is better than ever and the returns for fit and or performance is way down.” Retirement Lieberman said he greatly misses all the people in the industry he worked with over a 61-year career. But these days, he spends time with the lady he married in 1957, his children and grandchildren, shoots some photography and is active in the street rod world with his 1938 Chevy two-door sedan and his 1952 Chevy short-bed pickup. Both vehicles are what Lieberman calls “sleepers” with a “tame” exterior but a potent small block Chevy engine under the hood, coupled with a Turbo 350 transmission. Carry on, Herb!

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42 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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with Erica Schroeder

Industry Insight with John Yoswick

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

Forecast: Expect More Private Equity Coming Into the Industry

Shop Showcase

During the MSO Symposium in No- one such company, Frontenac Com- si nifi ant ar et share this is still vember, industry consultant V i nc ent pany, a Chicago-based private equi- a really fragmented market relative R omans said there are a dozen pri- ty fir loo in to invest in the olli- to many others” where consolidation with Ed Attanasio has played out more, Sahney said. vate e uity fir s ith invest ents sion repair se tor for the first ti e. During an MSO Symposium Lastly, he said, “Scale presents in U .S. collision repair organizations, including Caliber, Gerber, panel discussion, Sahney said three a real advantage in this space,” givService King, Crash Champions and things make the industry appealing en the investment needed because of vehicle technology, and the reto investors. Classic Collision. quirements of direct repair “J ust a decade ago, there was pro ra s and ertifione, when ONCAP acquired Caliwith Ed Attanasio cations. ber,” Romans said. “The players who conCollision repair businesses with tinue to generate scale will private equity investments currently have a real advantage over produce about $ 10.9 billion of revthe smaller players,” Sahney enue, or more than 28% of the total Neal Sahney and Jonathan Seiffer, representatives of predicts. market, according to Romans, who two private equity firms, said investors like the stability Another panelist, J onforesees more investment in the in- and scale opportunities they see in collision repair with Ed Attanasio athan Seiffer of Leonard dustry forthcoming. First, it’s “a highly stable space,” Green and Partners, a private equity “I believe that we will see at least two or three more private eq- he said less in uen ed than other in- fir invested in aliber said s ale uity fir s settlin do n ith invest- dustries by economic shifts, and with can also help address the long-standments in MSOs within the U .S. in insurance reducing some of the “risks ing human resources challenge in the industry in that people an find related to being paid.” the next six months,” said. withRomans Ed Attanasio Second, though MSOs now have advantages and security working for N eal Sahney is a principal at

Social Media for Shops

SEMA Show Goes On

Media and Publicity for Shops Shop Strategies with Stacey Phillips

Body Shops Giving Back with Stacey Phillips

larger organizations.” ei er and ahney spea in a onth before the first vaccine had received Food and Drug Administration approval, said the pandemic and its impact on vehicle miles traveled and auto claims haven’t deterred investors’ interest in acquiring shops. “I think there was bit of hesitation as it relates to fi urin out the deals, at the start of COV ID,” Sahney said. “I think we’ve [ since] shifted now to, ‘ OK, this is the new reality that we’re going to live in for a while. So how do we adapt our deal-thinking to the reality we’re in.’ “And I think folks have beo e very reative in findin ays to look at where businesses were pre-COV ID, what happened during COV ID and what do you believe about the future,” Sahney continSee More Private Equity, Page 47

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My SEMA with Stacey Phillips

Shop Strategies

Audi dealers strive to make you an Audi Genuine Parts fan.

with Victoria Antonelli

Midwest_Issue _0321.indd 43

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.

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with Ed Attanasio

Social Media for Shops

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

Social Media Strategist Identifies Keys to Your Body Shop’s Online Success In the old days, body shop marke- co-branded vs. independent, etc., our ting and advertising was relatively approach for body shops has a lot of simple, with only a few things to similarities in what we do across the board with clients we have worked onsider dire with t ail Ed phone boo Attanasio advertising, radio or TV advertising with for years in other industries. and, if you decided to think outside of the box, billboards or even sky writing. And don’t forget about putting Edyour Attanasio a bi in atable with orilla on roof Today, marketing and advertising is so much more sophisticated due to technology that changes daily. How can a shop owner or manager know what to do with so many options out there? with StaceyFacePhillips Owners have to navigate book marketing and advertising, social outreach on multiple platforms, Joe Conte, CEO/lead strategist at Auto Moto reputation management, web design Digital (AMD) in Sausalito, CA, creates marand development, Google Adwords keting plans that grow exponentially using and ratings, custom video, email cutting-edge modalities such as Artificial Intelligence with Stacey Phillips marketing, online podcasts/ webinars, ur initial oal is to define the blogging and vlogging, showcasing story of who the body shop is and testimonials and speaking at events. help tell that story to define their he here do you be in A u tobod y N ews recently sat down customers, and how best to creawith J oe C onte, CEO and lead strate compelling content that engages with them on a personal level. tegist of Auto Moto ( AMD) withDigital Stacey Phillips We do this through a number ( www.automotodigital.com) in Sausalito, CA, and discussed how his com- of di erent strate ies and solutions pany uses digital marketing and soci- that enable us to learn more at each al advertising to build a body shop’s sta e it is throu h this inte rated and algorithmic learning solutions business a ordably and e ponentially via “social conversion strategies” using their proprietary system. Stacey Phillips that e an tar et spe ifi types of Conte grewwith up working on Porsches with his father, and began fo- individuals and their behaviors, that cusing on the collision repair indus- further help to create conversions of users into paying customers. try more than a decade ago. AMD delivers AI algorithmic How can a small independent social data solutions for its client shop or mini-MSO compete partners. SA data integrated process with a activates audiences and converts with Victoria Antonelli large chain of shops with a them into loyal brand supporters, via huge marketing budget? proven data mining analytics and alhere are a lot of fir s out gorithmic based solutions. there that promise the moon Digital advertising/ marketing and groups that create generic confor body shops is completely tent, basic SEO, websites, etc., and di erent fro any otherEd type of busi- strate ies that are not spe ifi to the with Attanasio ness and you’ve worked with. What body shop itself. are so e of the ain di eren es Our goal is to work with the owners, no matter if they are a part t s not as di erent as you of a larger MSO or mini-MSO, and would imagine. As body help them create an online identity shops di er fro vs. non that galvanizes consumers into ac-

SEMA Show Goes On

tion.

It is through this identity-based social engagement strategy that we help them grow their online identity and their online presence. ey fa tor for this is definin who the body shop is and who they work with, from a business-to-business standpoint. The types of paint, paint booth, machinery, etc., all adds to the layers of who they are and how they do what they do. We are not solely focused on the body shop when we work with the e also or ith their partners to help understand the entire landscape and ecosystem that surrounds them. This philosophy helps to build a strategy that focuses not only on direct-to-consumer conversion solutions, but data marketing strategies for manufacturers, brands and distributors who work with the body shops. It is this multi-faceted promotional strategy that enables us to create a diverse, long-term growth solution not only developing bottom-up outreach to consumers, but cross-brand pollination strategies that help grow social engagement through the entire landscape. This approach not only helps the shop itself, but all up- and downstream strategic partners that help build the network.

Media and Publicity for Shops Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

Shop Strategies Q:

Product Innovation

OE Shop Certification

What can you say to a shop owner who claims that social edia is ine e tive

The main goal with social engagement is to create a net or e e t. his enables the locations to grow and build relationships on the [ business to business] and business to onsu er side giving body shops loyal customers that help promote and support the growth of their business. It is during this outreach process where we start to build customer loyalty. We also do it via online reputation management solutions that help to build a shop’s online credibility and shift the conversation

that comes from the actual customer, and not just outreach from the body shop. This is what social engagement is all about and why working with smaller shops at times tends to be a greater value proposition for the shop than with the larger MSOs.

There are so many ways to go with digital marketing, with new social media coming out all the time. What social media do you suggest for your clients and why?

Facebook foundational work is where we begin, because the information you can discover with the ad-based network and ad manager sophistication they have is what feeds all other types of outrea h te hni ues e o er. There are a number of techniues fro lo ation spe ifi ads and strategies like “geo-fencing, geo-targeting” to behavioral analytics based micro-targeted ads that enable us to find ho is li in on hat and hy all of these strate ies are desi ned to reate ost e e tive ad spend solutions and the ost a ordable conversion solutions and content, to really find hat a es the onsumer who they are and help align them to the right body shop. hat e find that resonates the most with today’s consumers is the story of the owner, their work ethic and philosophy, and the culture of their shop. Every shop is unique, and by sharing original content and educating body shop owners that being the voice of their shop matters, it not only empowers them to see their potential, but it ultimately helps customers make their decision easier because they can relate to the business and they see the shop as a partner who cares. That’s where the long-term loyalty comes in that helps a business grow. The beauty of all of this is the exponential factor; once you lay down the proper online and social marketing foundation, the right stra-

with Gary Ledoux

44 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Lansing (517) 393-5700 (517) 393-6767 Fax M-F 7:30am-6pm mattr@lansingisyoung.com www.kiaoflansing.com

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tegy and the right content are gifts that keep on giving. The data starts to come in, and the growth of the business and actual decisions about the future of the company come from this data. This is where it then starts to spiral, when one customer talks to another potential customer and the “network effect” that we discussed earlier starts to take shape. In the end, it is not about the shop next door, it’s about the story. The best thing about a body shop is its story, and even if shops are next to each other, everyone has their own story. Our goal is to help them get to the right customer and help them build a strong in-bound customer base, while growing their car count exponentially.

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Continued from Page 32

CIECAST Prepares enhanced ability to interact with the networks the manufacturers are establishing and see how the vehicles are being repaired,” Tagliapietra said. “There’s a changing paradigm of how OE repair information is utilized and delivered, and following the OE repair procedures exactly as they’re written is absolutely critical for properly repairing EV s. ertifi ation net or shops must follow repair procedures to be aligned in understanding what repairs are needed to restore EV s to their pre-loss condition,” Tagliapietra continued. “The future of these networks is going to be just as important to insurers as they are to the OEMs, emphasizing the fact that there needs to be a level of collaboration and understanding between manufacturers and insurance companies that has not previously existed to the level that will be necessary with EV s.” Acknowledging shops’ struggle to obtain OEM repair procedures effectively, Tagliapietra suggested the

Certified Collision Group Announces Significant Start to ‘21 ertified ollision roup a ertifi ations and fo cused solutions provider to the collision repair and insurance communities, announced J an. 31 the addition of 24 new locations in the first onth of .

“With the coming of the new year, CCG is very mindful of the increasing challenges facing repairers nationwide,” said Marty Ev ans , CCG’s CCO. “We are also acutely aware that the highly reputable ertified usto er-focused independent operator is vital for consumers; CCG will eep levelin the playin field for those operators so they can compete.” These 24 new locations are lo ated in five states orth Carolina, Penssylvania, V irgina,

South Carlina and Wisconsin. CCG now operates in 39 states with more than 550 locations and 50 vendor provider partners. The focus remains providing the insurance community with a sustainable alternative that is differentiated by 2500+ OEM badges and the very best KPI results. “The extraordinary support of our vendor providers and insurance partners allows us to continue delivering stability and lon ter profitability to our best in lass independent a li ates,” Evans continued. “We remain bullish on opportunity as we expand our internal team and infrastructure to maintain our position and outperform the marketplace.” our e

ertified ollision roup

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repair procedures should be available before the estimate is even written. “Shops need to understand the safety measures that need to be considered before they touch the car, and e are e a inin di erent ays to deliver that infor ation ore e ciently. Education is vital,” Tagliapietra said. “Repairers will be required to access OEM repair procedures on every single vehicle going forward, not ust for stru tural da a es e cannot continue down that path as an industry and stay in alignment. “Insurers, as well as shops, need to understand and agree on these procedures so that shops can be fairly rei bursed for their e orts.” Tagliapietra believes the data in the repair orders needs to be made available to the di erent ey sta e holders in the industry. “CIECA standards are essential to provide access to the data participants need to achieve their business objectives,” he said. “So many entities participate in the repair process now, not just the insurer, OEM and collision repair shop. We need to evaluate how that information is accessed, ingested and memorialized

so it can be played back to the industry for the benefit of everyone. “Collaboration is critical. These relationships need to be fostered if everyone is going to succeed and win,” Tagliapietra continued. “Everyone is dependent on collision repairers to complete a quality repair, but it s first in u bent on anufa turers, insurers and information providers to facilitate that and share the information the shops need. “We cannot allow a few to monopolize that information when it’s essential for the good of the whole industry.” CIECA then opened the webinar up for a question-and-answer session. As J anuary’s CIECAST concluded, Barry reminded attendees the webinar is eligible for credit through the Automotive Management Institute. The next CIECAST, scheduled for Feb. 25, will highlight the next generation of CIECA standards. The organization is looking for interested parties to join in the development of those standards. For more information on CIECA and the next CIECAST, visit cieca. com.

2021 SEMA HoF Nominations Open SEMA, the Specialty Equipment Market Association, is accepting nominations for its Hall of Fame at www.sema.org/ hof. Established in 1969, the SEMA Hall of Fame recognizes people who have contributed a si nifi ant body of or to the industry over a long period of time, and is the most prestigious award presented to an individual by the association. It is designed to honor the leaders, innovators, creators and enthusiasts who transformed small, burgeoning businesses into an industry worth more than $ 46.2 billion annually. To nominate an individual who epitomizes the essence of ingenuity in action, visit www. sema.org/ hof before the deadline March 19. To learn more about the SEMA Hall of Fame and for a list of inductees, visit www.semahof. com or contact Lindsay Bianco at lindsayb@ sema.org or 909-9786692. Source: SEMA

Choose Original MINI Parts. Michigan MINI of Grand Rapids Grand Rapids 888-708-1359 (616)-452-1101 Fax miniofgrandrapids.com

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46 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Continued from Page 43

More Private Equity ued. “There’s all sorts of hypotheses about where we will land. I think we will land in a new normal that may loo di erent than here this indus try was before COV ID, but it’s going to look something closer to that than where we’ve been the last six months.” ei er a reed is li ely not a long-term negative in this industry. “Even if it lingers, people’s behaviors have adapted,” he said, acno led in resu ption of tra has rebounded to varying degrees around the country. “If you’re looking for a platform, you’re presumably looking to build something much bigger over time. So a shortterm blip shouldn’t really change your view on the opportunity.” He said there will no doubt be permanent changes that will negatively a e t other parts of the e on omy, but there may actually be some upsides to the pandemic in the medium-term for collision repairers.

“There will be some subset of people who will be slow to return to mass transit and other forms of transportation, and I don’t think working from home is going to be an option forever ” ei er said. How does private equity view the potential longer-term impact of advanced driver assistance systems ( ADAS) and autonomous vehicles? Sahney noted it takes a long time for new technologies to be in place in a large percentage of the vehicle population on the roads. “The feeling on it is we’re still decades away from that truly hammering away at the industry,” Sahney said. In addition, he said, MSOs are going to be in a much better position than a single-shop operation to make the investments in being able to service those technologies. ei er a reed sayin he sees ADAS as likely to have a bigger impact on personal injury claims than collision claims. “So we pay attention to it, but people tend to overestimate how quickly the world will change,” ei er said. e pay attention to it

but view it a little bit as noise, and try to focus on the bigger picture. “There are going to be a lot of cars in the U .S. for a long time, and those cars are going to get into accidents because of weather, congestion and distraction. Cell phones have been a hu e benefit for the in dustry.” Even if collision repair work declines over time, he said, well-run s ill find other ays to use a network of bays with skilled workers. “If you have talented folks, and a distribution network with points of access, there will be new business opportunities that arise if others start to o do n ” ei er said. Autonomous vehicles may result in a larger population of cars rather than smaller, and those vehicles will have service and repair needs beyond collision repair. “The infrastructure that’s built ay ove a bit over ti e ” ei er said. “Y ou may not need city center locations, or Main Street locations, but I think [ shops] will still have tremendous value to the automotive transportation infrastructure.”

Continued from Page 36

COVID-19 Vaccinations there will be a lot more education circulating about the vaccine. hen tal in to sta in said to not fo us on the benefits to the o pany or the bottom line. “Make it about the safety of your patrons, clients and the health of employees so from a corporate perspective, it’s not just about numbers or business goals, but more about how we can thrive together.” his is the first in a series of COV ID-19 vaccination articles. Next in the series is “Implementing an Employee V accination Program: Cost, Access and Communication.” nternational o ers an e-book with more information: https: / / www.hubinternational. com/ -/ media/ HU B-International/ PDF/ Employee-Benefits/ beyondCOV ID-19-employment-laws-vaccines .pdf

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ABRA Auto Body Repair of America Adds Four New Facilities ABRA Auto Body Repair of America is celebrating its growth as the company added four new shops to its net or one ea h in ontana Minnesota, Iowa and Georgia. The company has been able to support its communities with the essential services it provides, despite the many challenges brought on by the pandemic. Franchisees within the network have continued to invest in additional capacity, bringing more value to their customers. “I am deeply proud of our ABRA facilities, who have been able to adapt on the y to the han ing demands of our industry,” said Mark W ahl i n, V P of franchise development and operations, ABRA. “The team has seamlessly enhanced its repair processes to include increased sanitization on key touchpoints and has found ways to safely perform estimates---all to maintain a positive customer experience.” From South Carolina to Minnesota, ABRA facilities across the country have pushed themselves to enhan e their servi e o erin s

find ne areas of opportunities e pand their market reach and participate in additional training. “Our owners’ commitment to exceptional customer satisfaction extends beyond the repair as they are actively involved in their communities,” said Wahlin. “Seeing our franchisees host food drives, giving back to causes close to their customers during a challenging year for most shows why ABRA has been in the business for over three decades.” ABRA facilities throughout the country also took time to give back to the communities they serve in 2020. ABRA St. Cloud in Minnesota used its mobile glass vehicle for Meals on Wheels deliveries to support seniors in need. Facilities also gave back to the Cystic Fibrosis Foundation through fundraising initiatives throughout the year. V isit ABRA Woodstock, ABRA Billings, ABRA Duluth and ABRA North Liberty websites to learn more about the new facilities. Source: ABRA

Industry Members Share Their Predictions for the Year by Emmariah Holcomb, glassBYTEs.com

FY 2021 is in full swing and auto glass senior leadership and business owners have shared why they thin this year is filled ith optimism. “Forecasting for 2021 was uite di ult but e ere fortunate enough to open up a couple of new stores, as we believe in the brick and mortar,” explained J on L as k i , CEO at City Auto Glass, during Auto Glass Week Preview Day held earlier in J anuary. Laski said that City Auto lass has in reased its sta after having a few promising months in 2020. But he’s not the only one who’s grown from the pandemic, as P eter Brow n, president of Tiny & Son’s Auto Glass, said he’s made changes to his business too. “I just added two new trucks and have trained four new technicians,” said Brown. “I think it’s going to be okay now that people know what’s going on and how to work with us [ since the start of the pandemic] .” T ed A nders en, vice president

of franchising at Novus Inc., headquartered in St. Paul, MN, said he’s focused on bringing the company s finan ials ba to hat they were prior to COV ID, in 2019. “As it pertains to forecasting we are going to do some expansion this year, we’re bringing our collision business into the U .S. and that’s going to allow us to grow on the collision and auto glass sides,” explained Andersen. Andersen also noted that the anticipated growth aimed for 2021 will be “tricky” as many states are still issuing lock down orders, California being one of them. “We’re fortunate enough that we were deemed as an essential service,” said Andersen. “I think that [ now] everyone understands how to operate through this [ pandemic] and it’ll be good going forward.” We thank glassBY T E s.c om for reprint permission.

www.autobodynews.com

Edmunds Experts Forecast 15.5 Million New Vehicles Will Be Sold in 2021 The car shopping experts at Edmunds say the auto industry is on track for greater stability and healthier sales this year, forecasting 15.5 million new cars will be sold in 2021. Edmunds analysts note this would represent a 6.5% lift over 2020. “2020 was an incredibly tumultuous year for the industry, but some unique market conditions helped retail sales end up in a much stronger place than anticipated, and the good news is that these should serve as some decent tailwinds into 2021,” said J es s i c a C al dw el l , Edmunds’ executive director of insights. “Despite the economic hardships faced by so many Americans during the pandemic, there’s still a large population of ell o onsu ers ho have been taking advantage of favorable finan in onditions and sustaining healthy demand in the new car market.”Edmunds experts put together some of the biggest trends that they predict will shape the road ahead in 2021: The new vehicle market will continue to grow more pricey and exclusive as the

pandemic drives an income divide among Americans. New car prices are skyrocketing: In December 2020 the average transaction price for a new vehicle hit an all-time record high of $ 40,573. Edmunds analysts expect this nu ber to o up as a uent onsu ers benefitin fro lo er interest rates and healthy stock and housing markets continue buying bigger, more expensive new trucks and SU V s. t the sa e ti e ore a ordable options in the new car market are growing increasingly scarce as automakers shutter their car lines, which Edmunds experts say will create a barrier to entry for many consumers and force them into the used car market. COV ID-19 vaccines will help keep auto sales steady but won’t boost them dramatically. U nlike other industries such as airlines or entertainment, automotive sales are not expected to see a dramatic retail lift post widespread vaccination distribution in retail sales were down only 8.6% . However, Edmunds experts say that a return to an in-person work

environment should help maintain sales, and they anticipate a boost in daily rentals in 2021, which generally make up 12% of new vehicle sales but sank to 7.4% in 2020. Exciting new products will help breathe life into the automotive industry. 2021 will be a standout year for new vehicles. It will see the birth of a brand-new segment in EV pickup tru s at least seven ne ele trified s and so e popular o road nameplate revivals including the Ford Bronco and J eep Wagoneer. “It comes down to production cycles and a little bit of luck, but every so often there’s a truly exciting product year for the automotive industry like we’re about to witness in 2021,” said Caldwell. “Between the GMC Hummer, the Tesla Cybertruck and a debut vehicle from Rivian, the EV pickup truck segment is about to explode and we’re going to see even ore ele trified s enter the arket. “And under the new presidential administration, there could be the possibility of new tax credits or incentives for individuals that ould finally help ove the needle

for electric vehicles, which for years have been slow to grow in popularity in the U .S.” Although 2021 is looking to be an exceptional year for the industry from a product standpoint, Edmunds experts note there are a number of uncertainties that ould ne atively a e t sales. he chip supply shortage could throw a big wrench in production for automakers, which have only just gotten back into a good groove after shutting down during the pandemic,” said Caldwell. “And there is the bigger question about what consumer demand for vehicles is going to look like in a post-vaccine world. “Lots of additional wealth and resources have been pushed into new car purchases for now, but people have been cooped up for nearly a year. They might choose to shift their spending to experiences rather than goods, which could be a threat to car purchases.” More insight into recent auto industry trends can be found in the Edmunds Industry Center at http: / / www.edmunds.com/ industry -center/ . Source: Edmunds

48 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Auto Thefts Surge In 2020, National Insurance Crime Bureau Reports A preliminary analysis by the National Insurance Crime Bureau shows auto theft took a dramatic leap upward in 2020 compared to 2019, reversing two years of auto theft declines. According to its initial study, there were 873,080 auto thefts in 2020, a 9.2% increase over 2019, which had 799,644 thefts, a boost of more than 73,000 thefts. “Preliminary reports indicate a sharp increase in automobile thefts for 2020,” said NICB President and CEO D av i d Gl aw e. “All indications are 2020 will be the largest theft year in the past decade by a significant margin.” ordin to the findin s every month in 2020 showed increases compared to 2019. Overall, the yearly increase was 9.2% ; however, each month from J une through December showed double digit gains. “Based on the preliminary nature of the data, the cause of this increase will require a thorough intelligence assessment,” said Glawe. “Considerations such as the pandemic, economic downturn, loss of juvenile outreach programs and

public safety budgetary and resource limitations are likely contributing factors. “Thieves exploit opportunities and may look for vehicles parked in the same location or citizens not taking proper measures to secure their vehicles.” If you see something, say something by contacting local law enforcement if you suspect questionable activity in your neighborhood. Given the unique circumstances of 2020, the NICB is distributing this data in advance of its much-anticipated annual Hot Spots report, to be released in mid-2021. Due to the scrutiny the data receives from NICB analysts, the Hot Spots report ill li ely di er to a s all e tent from this initial analysis. V ehicle owners must guard against complacency and remember to heed simple tips to safeguard their vehicles. NICB recommends drivers follow four layers of protection to guard against vehicle theft. Common sense: V ehicle owners should always remove keys from the ignition, lock doors and windows and park in well-lit areas.

Warning devices: These include visible and audible alarms. Aftermarket alarms are available for all makes and models of cars. V isual devices include column collars, steering wheel locks and brake locks. I mmobi l i z i ng dev i c es : The third layer of protection prevents thieves from bypassing the ignition and hot-wiring the vehicle. Some examples are smart keys; fuse cuto s ill s it hes starter i nition and fuel pump disablers; and wireless ignition authentication. T rac k i ng dev i c es : Tracking devi es are very e e tive in helpin authorities recover stolen vehicles. Some systems combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved, the system will alert the owner, and the vehicle can be tracked via computer. Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800.TEL.NICB ( 800835-6422) or submitting a form on the NICB website. Source: NICB

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Merchants Fleet, the nation’s fastest ro in eet ana e ent company, announced Feb. 2 its plans to further electrify its portfolio with BrightDrop, the new business backed by General Motors, o erin ele tri first to last ile products and software services. Merchants Fleet is working with BrightDrop to procure 12,600 BrightDrop EV 600s, an all-new, electric light commercial vehicle purpose-built for the delivery of goods and services over long ranges. The EV 600 is powered by the U ltium battery system and combines zero-emissions driving with segment-leading safety features. Merchants Fleet expects BrightDrop EV 600s to enter its lients eets startin in early 2023.BrightDrop is building a smarter way to deliver goods and services. Its ecosystem of electric first to last ile produ ts software and services are designed to help businesses deliver goods and servi es ore e iently hile improving overall sustainability. Source: GM

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columbiaparts@josephauto.com www.columbiahyundai.com autobodynews.com / MARCH 2021 AUTOBODY NEWS 49

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Collision Industry Mourns the Loss of Bano Ramirez

Distracted Driving Trend Persists Despite Passenger Complaints by Steve Hallo, PropertyCasualty360

Incidents of distracted driving persist despite more than 97% of passengers confronting a motorist who had let their focus slip from the road, according to a survey of U .S. consumers by LeithCars.com. The survey also found 22.5% of respondents had been a passenger in a crash caused by a distracted driver. Texting and browsing the internet were cited as the leading accident-causing distraction by passengers who had been in a crash initiated by an unfocused driver. They were also the most common events leading to complaints from a passenger, as 52% and 33.3% of riders, respectively, said they confronted someone about these behaviors. The risks from distracted driving are so severe that LexisNexis Risk Solutions suggested distracted driving could potentially rival DU I violations as a factor in road safety and insurance rating. Concerning the latter point, insurer The Z ebra reported getting a ticket for texting, or otherwise using a phone while driving, can raise in-

surance rates by an average of 23% . In some states, that increase can be more than 63% . Drinking alcohol, falling asleep and using a cell phone to surf the web or text were among the distractions perceived to be most danger-

While most will speak up to family, friends or colleagues driving dangerously, more than 60% of people don’t address distracted and dangerous driving issues when in a taxi or rideshare. Credit: guteksk7, Shutterstock.com

ous, the survey revealed, with reaching around for an item rounding out the top five. Comparing attitudes around drunk driving and texting risks, the survey found that baby boomers see using a cell phone while driving as being more dangerous than drinking

and driving, while millennials found the adverse to be true. When it comes to incidents of drinking and driving, more than one in four survey respondents had ridden with someone who consumed alcohol while driving, according to LeithCars.com. Y et, slightly less than 13% felt compelled to address the obvious danger. This comes on the heels of recent news that nearly half of U .S. motorists admit to drinking and driving. The survey also found an alarming number of rideshare drivers are also partaking in distracted driving, with nearly 85% of those surveyed saying they had experienced dangerous or distracted driving in a taxi or ridesharing vehicle. peedin eavin throu h tra and being too chatty were the most cited experiences. While most will speak up to family, friends or colleagues driving dangerously, more than 60% of people don’t address these issues when in a taxi or rideshare.

It is with sadness that we announce the passing of Bano R ami rez , a member of Mitchell International’s Solution Specialist team, on J an. 25. Ramirez touched many lives in his over 40-plus years in the collision industry. He spent 12 years with Mitchell International and previously owned and operated Bob’ s Bod y and F end er in V an Nuys, CA, where he was an active member of the community, hosting many industry training events. Ramirez was a longtime member of the California Autobody Association and an invaluable contributor to its Glendale/ Foothill chapter. His positive attitude, loyalty, integrity and hard work will be remembered by all. Ramirez is survived by his lovely spouse A l i s on, daughters Sy l v i a, R os i e and A manda, eight grandchildren and seven great-grandchildren.

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50 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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COVID’s Impact on Insurance Pricing, Coverage & Digital Trends by Steve Hallo, PropertyCasualty360

As we move into 2021, the insurance sector should expect continuing hard market conditions, according to J i m Brambl et, managing director-insurance lead for Accenture’s North American operations, who explained the pandemic will shape pricing and coverage in the year to come.

Investing in a digital brand presence can help keep an insurer top-of-mind among its potential clients in the community, making social marketing even more important during a time when face-to-face interactions are limited. Credit: RAGMA IMAGES, Shutterstock

“Carriers are going to have to continue to look at pricing vs. risk, and ask themselves what are the current consumption patterns for assets they typically insure,” he said, giving for example the number of rebates around personal lines seen in the past year. “What is that

going to look like going forward? ” He added even outside the pandemic, carriers should think about changing consumption patterns for personal lines, given the revival in home improvement investments and “cocooning” trends. This makes it para ount that insurers find the ri ht pricing for these fundamental changes in consumption patterns. Concerning coverage, the past year exposed a gap in policies around pandemics and business operations. This is particularly true for business interruption claims, which might take a public-private partnership to cover. “There has to be some collaboration between government and insurers, whether through primary insurance, reinsurance or a government backstop,” he said, adding more needs to be done than “waiting for relief packages to run through the government.” As previously reported, the enormity of losses stemming from COV ID is believed to be beyond the abilities of the private market to cover. From consumer-facing technologies to in-agency systems, the pandemic has propelled the industry’s investment in digital tools, ac-

cording to Bramblet, with spending on distribution and customer-facing tools showing the best ROI. For the industry to capitalize on this, the transition from a digital environment to a more traditional insurer/ policyholder connection should be seamless. Regardless of how a lient ants to buy a poli y in person, through a website or on a mobile app the insuran e edu ation and research process almost always start digital now, Bramblet explained. “Y ou want to make it as easy as possible for them to bridge from the digital world into your carrier system,” he stressed. The ability to build a personal social brand digitally is also growing in importance because of the pandemic, according to Bramblet, who explained agencies cannot at this time have a presence in their communities through traditional means such as sponsoring little league teams or attending a family picnic. “Make the investment in a digital presence and digital brands. They have to be built,” he cautioned. We thank P roperty C asu atly 3 6 0 for reprint permission.

Kia Niro EV Winner in Ownership Study The Kia Niro EV has been ranked No. 1 among mass-market brands in the J .D. Power 2021 Electric V ehicle Experience ( EV X ) Ownership Study. For this inaugural study, J .D. Power surveyed nearly 10,000 electric vehicle ( EV ) owners on factors including cost-of-ownership, battery range and driving enjoyment to determine the likelihood of repurchasing and recommending an EV . The U .S. EV X Ownership Study, driven by a collaboration with PlugShare, sets the standard for benchmarking satisfaction with the riti al attributes that a e t the EV ownership experience. The overall EV X ownership index score measures electric vehicle owners’ satisfaction in premium and mass-market segments across seven factors: accuracy of stated battery range; availability of public charging stations; battery range; cost of ownership; driving enjoyment; ease of charging at home; and vehicle quality and reliability. Source: Kia Motors North America

CCC Information Services Inc. Merges, Will Go Public CCC Information Services Inc. and Dragoneer Growth Opportunities Corp. on Feb. 3 announced a definitive merger agreement between Dragoneer and CCC’s parent holding company. U pon closing of the transaction, the combined company is expected to be renamed CCC Intelligent Solutions Holdings Inc. and is expected to be listed on the New Y ork Stock Exchange in the second quarter of 2021. CCC’s mission-critical SaaS platform provides advanced AI, IoT, customer experience and network ana e ent or o solutions to the P& C insurance economy. CCC enables more than $ 100 billion of transactions annually among a vast ecosystem of interconnected businesses. CCC’s network includes thousands of customers including insurers, repair facilities, automotive manufacturers, parts suppliers and other industry participants who leverage CCC’s platform to digitize operations, improve business performance and power better decisions in an increasingly complex and rapidly

changing market. U nder Chairman and CEO Gi thes h R amamurthy , who will continue to lead the company following the close of the transaction, CCC expects to report approximately $ 600 million of revenue in 2020, and has delivered a consistent track re ord of profitable revenue ro th for 20-plus years by focusing on delivering best-in-class innovations for its customers. “Today is an exciting day for CCC as our return to the public markets provides us with additional sources of capital to accelerate innovation and increase the value we provide customers,” said Ramamurthy. “Throughout our history, CCC has developed pioneering technology solutions focused on enabling ro th in reasin e ien y and empowering new possibilities for all participants in the P& C insurance economy. “We serve a large and interconnected market that is still in the early stages of digitizing its operations and is growing in complexity. We believe CCC is well positioned to support customer digitization in this

dynamic market. “We are incredibly excited to begin this new partnership with Dragoneer, one of the most highly respected investors in the world, and to continue our relationship with Advent ho have been terrifi partners for the past four years,” Ramamurthy continued. “Together, I am confident ill ontinue to enerate meaningful value for our customers and shareholders.” “U nder Advent’s ownership, CCC has cemented itself as a leading SaaS platform for the P& C insurance ecosystem,” said Eric Wei, managing director at Advent. “Since 2017, we’ve partnered with Githesh and the CCC management team to accelerate organic growth through a focus on innovation, and we believe this sustained investment in R& D ill deliver si nifi ant for ustomers for decades to come. “Advent is excited to partner with Dragoneer, with its preeminent technology investing franchise, to support CCC’s continued focus on digitally transforming the insurance economy. We have strong conviction in CCC’s growth potential and are

not selling a single share as part of the transaction.” “CCC is one of those rare software companies that serves as the ba bone of a riti al industry the P& C insurance economy,” said Marc Stad, founder and portfolio manager at Dragoneer. “As the products we use and the cars we drive become more and more sophisticated, insurers, consumers, manufacturers and service providers require increasing amounts of support and coordination whenever issues occur. “CCC’s advanced technology platform enables the right groups to onne t ui ly and e iently and its t enty plus years of profitable growth are a testament to the value the company provides to its customers. The CCC team’s impressive tra re ord of e e ution and financial performance speaks for itself, and we are thrilled to partner with them and Advent as they work to realize their ambitious vision for the business.” Source: CCC

AUTOBODY

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