April 2018 Midwestern Edition by Autobody News

36 YEARS

MID W ES TEDI TIO N

AUTOBODY IL / IN / IA / KS / KY / MI / MN / MO / NE / ND / OH / SD / WI

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Vol. 7 / Issue 7 / April 2018

Indiana Anti-Steering Legislation Hits an Impasse After House Amendments

Non-OEM Parts Legal Battle, Begun in 1997, Set for Trial in May 2018

by Katherine Coig, glassBYTEs.com

by John Yoswick

After clearing the Indiana House floor, Senate Bill 146, which aims to prohibit insurers and related entities from steering, may have hit a temporary stalemate. The state Senate has refused to concur with the amendments added by the House Committee on Insurance, which weakened the original anti-steering intentions of the bill. SB 164, which was authored by Sen. Mark Messmer, aims to “prohibit certain activities by an adjuster, insurer, insurance producer, or other

representative of an insurer in connection with a motor vehicle repair; [and] makes certain activities by a repair shop in connection with a motor vehicle repair for which insurance coverage is available deceptive acts.” However, in a late February hearing, the House Committee voted favorably to pass the bill with the several additions. Under the proposed amendments, it would be considered deceptive if an auto repair shop were to do the following: “Include in a contract with an insured or a claimant a provision asSee Indiana Steering, Page 15

Illinois Bill Aims to Require Customer Consent for Non-OEM Parts by Katherine Coig, glassBYTEs.com

Illinois Rep. Linda Chapa LaVia has introduced an amendment to the state’s Insurance Code and Automotive Collision Repair Act that would prohibit the use of non-OEM aftermarket parts in an auto repair estimate unless the customer provides written consent. The bill would also require auto repair facilities to follow OEM repair procedures. The proposed amendment aims to require that: “No estimate may include the

use of a non-original equipment manufacturer aftermarket crash parts unless authorized by the customer in writing;” and “The estimate shall include the use of repair specifications by the original equipment manufacturer for those parts, and no repair facility or installer may use repair specifications or procedures that are not in compliance with the original equipment manufacturer for those parts unless authorized by the customer in writing.” In addition, HB 4926 also unSee Customer Consent, Page 15

District Judge David Herndon said in rejecting State Farm’s calls for A federal judge in February declined dismissal of the suit that whether or to dismiss a $9 billion class action not the Avery judgment should have racketeering lawsuit against State been overturned, the vehicle owners Farm over the insurer’s alleged role involved deserve to know they lost fairly. in the election of an Illinois “Plaintiffs seek to vindiSupreme Court judge—setcate their right to be judged ting the stage for the latest by a tribunal that is unconttrial in a decade-long battle aminated by politics,” Judge involving the insurer’s use Herndon wrote. of non-OEM parts. The suit is seeking triple The lawsuit claims the damages of the Avery State Farm helped secure Lloyd Karmeier suit plus more than a dozen the 2004 election of Justice Lloyd Karmeier, and that Karmeier years of interest—a total of about $9 improperly participated in the rever- billion—for the 4.7 million vehicle sal of a $1 billion judgment against owners represented in the original the insurer in 1999 in the Avery vs. Avery suit. Trial is set to begin May 7. State Farm class action lawsuit. Without passing judgment on How did we get here? the merits of the current case, U.S. See Legal Battle, Page 48

Uber Halts Autonomous Car Testing After Pedestrian is Killed in AZ

ter: “Our hearts go out to the victim’s family. We are fully cooperating with A woman has died after being struck local authorities in their investigation by a self-driving Uber vehicle in of this incident.” It is believed that Elaine Tempe, Phoenix, AZ. The Volvo XC90 was operating Herzberg, 49, is the first pedestrian in autonomous mode when it hit the to be killed by an autonomous car. The incident occurred between Mill Avenue and Curry Road on the night of March 18. Police said the victim was crossing the road outside of a crosswalk at the time of the collision. The woman was taken to The autonomous Volvo XC90 struck a pedestrian as she the hospital, where she died crossed the road. Credit: ABC15 from her injuries. The National Transportation woman as she crossed the road, police said. A vehicle operator sat be- Safety Board said in a tweet that it is hind the wheel at the time of the “sending a team to investigate” the incident, but the car was carrying no incident. Uber had been testing its auother passengers. Uber said in a statement on TwitSee Uber Halts Car Testing, Page 52 by Alistair Charlton, GearBrain

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

Design and Format Changes at Autobody News

CONTENTS REGIONAL ‘Transportation Academy’ Turns Out Future Auto Repairers in OH . . . . . . . . . . . . . . . . . . 18 2 Men Shot To Death in Little Village, IL, Shop . . 23 AASP-MN Annual Meeting & Leadership Conference to Take Place April 5 . . . . . . . . . 19 ASA-OH Meeting Attendees Learn About Future of Health Care Industry. . . . . . . . . . . 20 Aspiring Auto Tech in West Salem, WI, Overcomes Struggles . . . . . . . . . . . . . . . . . 12 Auto Body Clinic of Huron, SD, Benefit Sale . . . 10 Auto Body Customization Business Offers Unique Designs in SD . . . . . . . . . . . . . . . . . 20 Auto Repair Shops Prepare for Flood of

You Updated Your Website? . . . . . . . . . . . . . 54

No magazine can go 36 years in print without some updates and changes to freshen its appeal from time to

Ledoux - OE Shop Certification Programs:

AUTOBODYNEWS

Assured Performance Network . . . . . . . . . . 34

AUTOBODYNEWS.COM

Ledoux - The 1930s – New Products and an Insurance Company’s Realization . . . . . . 30 Phillips - Emotional Intelligence Is a Key Element for a Successfully Run Body Shop . . . . . . . . 46 Phillips - I-CAR CEO, President Says Industry Is Embracing Training, More Stepping Up Needed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Sisk - In-House Money Makers: ASA Partners

REGIONAL & NATIONAL COLLISION REPAIR NEWS YOUR SHOP NEEDS!

time. We’re no exception at Autobody News. Regular readers will likely have already noticed some look and feel changes to our print news magazine this month. The masthead on top of the cover page has been updated to be less dense and more ‘eye-inviting.’

With Bosch for 2nd Webinar in Series . . . . . 40

www.autobodynews.com

Yoswick - OEM Info Websites Have Existed for 15 Years . . . . . . . . . . . . . . . . . . . . . . . . 44

Historic Car Modifications, Restoration . . . . . 6 Burnsville, MN, High School Auto Students Fix Their Teachers’ Cars . . . . . . . . . . . . . . . . 9 Fire at CARSTAR in Troy, OH, Causes $1 Million in Damages . . . . . . . . . . . . . . . . 10 Illinois Bill Aims to Require Customer Consent for Non-OEM Parts. . . . . . . . . . . . . . 1 Indiana Anti-Steering Legislation Hits an Impasse After House Amendments . . . . . . . . 1 Lincoln, NE, Has More People Driving More Miles, but Fewer Crashes. Why? . . . . . . . . . . 8 Michigan State, Texas A&M Studying Impact of Driverless Cars on Workforce . . . . . . . . . 57 Nebraska Native Uses NPCC as Springboard to Pursue his Passion . . . . . . . . . . . . . . . . . 14 Omaha, NE, Area Firefighters ‘Cut Up’ Vehicles at CARSTAR Don & Ron’s . . . . . . . . 23 Tips to Avoid Buying Flood-Damaged Cars in IL . 24 Vandals Destroy Nearly 300 Car Windows at Detroit Dealership . . . . . . . . . . . . . . . . . . . 9 WIN Announces 2018 Educational Conference Agenda in Indianapolis . . . . . . . . . . . . . . . . 22

NATIONAL 4 Tips to Setting Labor Rates in the New Year . . 4 A Tale of Two Paints: A Visit to Axalta’s Training Center in Concord, NC . . . . . . . . . . 26 AASPI Annual Meeting Features Terrific Speakers . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Artificial Intelligence Coming to Auto Glass— and Insurance, Mitchell Uses Image Recognition to Confirm Repairs . . . . . . . . . . . 4 Audi Integrates Toll Payments Into Car. . . . . . . 52 Autonomous Vehicles Must Give Passengers Some Control . . . . . . . . . . . . . . . . . . . . . . . 58 Consumer Watchdog Calls for National Moratorium on Robot Car Testing After Self-Driving Uber Kills Arizona Woman . . . . . 4

Attanasio - Teresa Aquila Just Won’t Quit... Ever!. . . . . . . . . . . . . . . . . . . . . . . . . 38 Attanasio - When Was the Last Time

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, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

a bit of relief for tired eyes. There is more whitespace around the text colums making a slightly bigger margin on the page. We’ll be making some logo and format changes in our online, social media, and newsletter formats as well. Stay tuned and please let us know what you think.

UPDATED DAILY 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. ©2018 Adamantine Media LLC. Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Audi Wholesale Parts Dealers. . . . . . . . . . . . . 54

Laurel Auto Group of Westmont . . . . . . . . . . . 49

Axalta Coating Systems . . . . . . . . . . . . . . . . . . 2

Luther Bloomington Acura-Subaru . . . . . . . . . 23

Bettenhausen Automotive . . . . . . . . . . . . . . . 24

Luther Hopkins Honda . . . . . . . . . . . . . . . . . . 38

Blue Springs Ford . . . . . . . . . . . . . . . . . . . . . 22

Maplewood Toyota-Scion . . . . . . . . . . . . . . . . 27

BMW Wholesale Parts Dealers . . . . . . . . . . . . 57

Matrix Automotive Finishes . . . . . . . . . . . . . . . 5

Bob Hook Chevrolet . . . . . . . . . . . . . . . . . . . . 35

Mazda Wholesale Parts Dealers . . . . . . . . . . . 61

Borton Volvo Cars. . . . . . . . . . . . . . . . . . . . . . 20

McGrath City Hyundai . . . . . . . . . . . . . . . . . . 52

CarcoonAmerica Airflow Systems. . . . . . . . . . 19

Mercedes-Benz . . . . . . . . . . . . . . . . . . . . 32-33

Charles Gabus Ford . . . . . . . . . . . . . . . . . . . . 45

Midwest Parts Group . . . . . . . . . . . . . . . . 16-17

ChemSpec USA, LLC . . . . . . . . . . . . . . . . . . . 18

MINI Wholesale Parts Dealers. . . . . . . . . . . . . 56

Classic Chevrolet . . . . . . . . . . . . . . . . . . . . . . 43

Mitsubishi Wholesale Parts Dealers . . . . . . . . 61

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

MOPAR Wholesale Parts Dealers. . . . . . . . 36-37

Courtesy Subaru . . . . . . . . . . . . . . . . . . . . . . 47

Morrison’s Auto Parts. . . . . . . . . . . . . . . . . . . 44

Dent Magic Tools . . . . . . . . . . . . . . . . . . . . . . 12

Nissan/Infiniti Wholesale Parts Dealers. . . . . . 58

ECS Automotive Concepts . . . . . . . . . . . . . . . 46

Original One PartsTM . . . . . . . . . . . . . . . . . . . . 13

EMS Automotive . . . . . . . . . . . . . . . . . . . . . . 10

Patrick BMW MINI . . . . . . . . . . . . . . . . . . . . . 31

Equalizer Industries, Inc. . . . . . . . . . . . . . . . . . 8

Patrick Hyundai . . . . . . . . . . . . . . . . . . . . . . . 30

Erhard BMW of Bloomfield Hills . . . . . . . . . . . 26

Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Erhard BMW of Farmington Hills . . . . . . . . . . 26

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

GM Wholesale Parts Dealers . . . . . . . . . . . . . 53

Richfield-Bloomington Honda. . . . . . . . . . . . . 48

Griffin Automotive Group . . . . . . . . . . . . . . . . 39

Robaina Industries, Inc. . . . . . . . . . . . . . . . . . 25

GYS Welding USA. . . . . . . . . . . . . . . . . . . . . . 14

SATA Dan-Am Company. . . . . . . . . . . . . . . . . . 7

Honda-Acura Wholesale Parts Dealers . . . 28-29

Spanesi Americas . . . . . . . . . . . . . . . . . . . . . 15

Pedestrian is Killed in AZ, First Known

Hyundai Wholesale Parts Dealers . . . . . . . . . . 51

Subaru Wholesale Parts Dealers. . . . . . . . . . . 55

Fatality by Self Driver . . . . . . . . . . . . . . . . . . 1

Infiniti of Naperville . . . . . . . . . . . . . . . . . . . . 30

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Insta Finish Car Care . . . . . . . . . . . . . . . . . . . 11

The Sharpe Collection of Automobiles . . . . . . 40

Jack Phelan Chrysler-Dodge-Jeep-Ram

Toyota of Des Moines. . . . . . . . . . . . . . . . . . . 45

Design and Format Changes at Autobody News . 3 Diamond Standard 40 MPH IIHS Moderate Overlap Test . . . . . . . . . . . . . . . . . . . . . . . . 61 How Do the U.S., Canada Differ in Their Fight Against Insurance Fraud? . . . . . . . . . . 55 Uber Halts Autonomous Car Testing After

Welcoming the Next Generation of Collision COLUMNISTS

INDEX OF ADVERTISERS

Damaged Cars Swallowed by Ohio River . . . 10 Autorama in Detroit, MI, Revs up Nostalgia,

We’ve also made the type a bit larger for both our national and regional stories. We hope this provides

Repair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Yoswick - Non-OEM Parts Legal Battle, Begun in 1997, Set for Trial in May 2018 . . . . . . . . . 1

of Countryside . . . . . . . . . . . . . . . . . . . . . . 21

Toyota Wholesale Parts Dealers . . . . . . . . . . . 56

Jake Sweeney Chevrolet . . . . . . . . . . . . . . . . 38

VanDevere Kia-GM. . . . . . . . . . . . . . . . . . . . . 41

Kelly BMW . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Volkswagen Wholesale Parts Dealers . . . . . . . 61

Kia of Des Moines . . . . . . . . . . . . . . . . . . . . . 45

Volvo Wholesale Parts Dealers . . . . . . . . . . . . 50

Kia Wholesale Parts Dealers. . . . . . . . . . . . . . 59

Zimmer Chrysler-Dodge-Jeep-Ram . . . . . . . . 64

Launch Tech USA. . . . . . . . . . . . . . . . . . . . . . 63 autobodynews.com / APRIL 2018 AUTOBODY NEWS

Consumer Watchdog Calls for National Moratorium on Robot Car Testing After Self-Driving Uber Kills Arizona Woman

by Consumer Watchdog

Consumer Watchdog has called for a national moratorium on robot car testing on pubic highways, after an Arizona woman was killed by a self-driving robotic Uber in Tempe, Arizona. See story on cover this issue. ‘There should be a national moratorium on all robot car testing on public roads until the complete details of this tragedy are made public and are analyzed by outside experts so we understand what went so terribly wrong,’ said John M. Simpson, the nonpartisan, nonprofit group’s Privacy and Technology Project Director. ‘Arizona has been the wild west of robot car testing with virtually no regulations in place. That’s why Uber and Waymo test there. When there’s no sheriff in town, people get killed.’ According to the Tempe police, the deadly incident happened Sunday night at approximately 10:00 pm, when the car hit a pedestrian. The vic-

tim later at the hospital. The robot car was in autonomous self-driving mode at the time of the collision and had a human supposedly ready to take control of the wheel in the car, the police said. Consumer Watchdog said the tragedy underscores the difficulty robot cars have in interacting with pedestrians and cyclists, as well as human driven vehicles. Such shortcomings in the robot technology were made clear in the so called ‘disengagement reports’ that companies are required to file when they are permitted to test in California. The reports, which document when a test driver had to intervene, are filed annually with the Department of Motor Vehicles’ website. No such disclosures are required in Arizona. Although this is the first known death caused by a robot car on public roads, this tragedy is unsurprising given the information revealed in the disengagement reports about the ‘au-

tonomous’ capabilities of these vehicles, said Consumer Watchdog. Earlier this year twenty companies released ‘disengagement reports’ showing robot cars cannot go more than 5,596 miles in the best-case scenario without a human test driver taking over the wheel. In most cases, the vehicles cannot travel more than a few hundred miles without needing human intervention, Consumer Watchdog noted. Despite the information revealed in these reports, the California DMV gave robot cars the green light to hit the road without a human driver ready to take control next month. ‘If robot cars are already killing people even with the presence of a human driver in the car, how lethal are these technologies going to be next month when they will roam public roads without a human onboard ready to take control?’ asked Sahiba Sindhu, a consumer advocate at Consumer Watchdog.

Consumer Watchdog said all data from the Arizona fatal crash should be made public so it can be analyzed by outside experts. The group said Uber has demonstrated a concern about rushing robot vehicles on to the road, not a concern about safety. An email exchange between former Uber CEO Travis Kalanick and then lead robot car developer Anthony Levendowsk, revealed in the recent Waymo-Uber lawsuit, makes clear the corporation’s lack of concern for public safety. ‘I just see this as a race and we need to win, second place is first loser’ read one text from Levandowski in March, 2016. ‘We do need to think through the strategy to take all the shortcuts we can find,’ said another from the engineer on the same day. ‘Uber simply cannot be trusted to use public roads as private laboratories without meaningful safety standards and regulations,’ said Simpson. Visit them at www.consumerwatchdog.org

Artificial Intelligence Coming to Auto Glass—and Insurance, Mitchell Uses Image Recognition to Confirm Repairs by Tara Taffera, glassBYTEs.com

Artificial Intelligence (AI) is coming to the auto glass and insurance industries. Case in point, Mitchell International is exploring a computer vision application that uses image recognition to confirm repair vs. replace decisions. This is according to the company’s 2017 Third Quarter Industry Trends Report. Computer vision researchers at Carnegie Mellon demonstrated the ability to detect and understand small movements. Mitchell said in its report, ‘Instead of an automotive repairer just getting guidance on the next step in a given repair procedure, they could get real-time evaluation of ancillary

problems detected by computer vision.’ In fact, in February 2018, glassBYTEs reported that Autoglass, a vehicle glass repair and replacement company based in the UK and owned by Belron, tested the latest AI technology to assess the severity of vehicle glass damage. The company said this can be used to determine whether customers require a repair or a full replacement. An article written by Olivier Baudoux, vice president, Global Product Management, auto physical damage solutions, authored an article in the Mitchell Report, saying that AI will be used in the future of auto glass claims workflow. First, the concept has to gain traction.

4 Tips to Setting Labor Rates in the New Year

It’s the New Year, and many body shops use this time to consider changes to their labor rates. But for collision repairers, 2018 is distinctively different from prior years. A new reality of advanced, high technology vehicles has arrived and dramatically changed the collision repair landscape forever. More than ever, proper labor rate pricing is crucial for body shops to sustain long-term profitability, growth, and prosperity. At NABR, we’ve been actively surveying, studying, and analyzing 4

labor rates for quite some time now, enhanced through our Variable Rate System (VRS) software. After communicating with thousands of body shops and seeing first hand how they make decisions about pricing their labor, we have some basic steps to share for anyone who wants to take action on their labor rates for 2018. First, let me provide some context. About 4,650 individual body shops nationwide have submitted labor rate surveys to us. From that survey data, posted rates for body labor range

APRIL 2018 AUTOBODY NEWS / autobodynews.com

‘With rapidly changing conditions that put more drivers and more complex cars on the road, it’s no surprise that auto claim value and loss costs have increased substantially in recent years,’ said Ryan Mandell, director of performance Consulting for Mitchell Auto Physical Damage Solutions. He added that AI is ready to tackle these increased workloads with specific solutions. Baudoux’s article went on to say that ‘once the meaningful data is identified, AI can help to elevate the right information in a way that assists and expedites workflow processes. By leveraging AI and visual computing to analyze photos for example, AI-enabled workflow solutions can use machine learning technology to

from $57 (national average) to $88 (+2 standard deviations). New surveys submitted within the last twelve months range from $63 to $98 (avg to +2 std dev). Doing a comprehensive labor rate analysis for your shop can be complex and quite involved, so instead, we offer here 4 simple steps to help get you on the road to finding the right price for your individual shop. 1) Consider your market’s overall cost of living. This can serve as a simple sanity check to help ensure your

minimize estimate errors and maximize review efficiency.’ In that vein, Mitchell launched the Mitchell Assistance Review Project 18 months ago to accomplish this goal. ‘By utilizing millions of damaged vehicle photos, computers are ‘trained’ to recognize vehicle damage and use computer vision to double check repair versus replace decisions. This will help carriers achieve better estimate consistency, maintain estimate quality and be more selective about sending appraisers into the field, all while improving cycle times and productivity.’

We thank Tara Taffera and glassBYTEs .com for reprint permission.

labor pricing is within a reasonable range for the area you operate in. While there is no official US government cost of living index that compares the cost to live in different cities, there are some online resources that do. One is AreaVibes.com, which can give you a pretty good idea. For this index, the national average is listed as 100. The index number for your market represents the cost to live there as a percentage of that national average. For example: the cost of living See Your Labor Rates, Page 57

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Autorama in Detroit, MI, Revs up Nostalgia, Historic Car Modifications, Restoration melds a classic-era candy finish with Ford’s modern blue. “He had it in the It’s hard to believe that what once barn for 20 years and posted it on was a pile of rusted parts left in an Craigslist. The fenders, the box, the old barn in Tennessee became one of motor—It was all in pieces. We redid the whole truck, top to bottom.” He paid $8,000 for the heap. What he created from it is estimated to be worth $50,000. “We’ve been doing this for 10 years,” Lafata said during an interview in the lobby of his shop, which is Eric Lafata, co-owner of Lafata Auto Body in Roseville, filled with Autorama troworks on a 1954 Ford F-100, one of nine vehicles Lafata’s phies. Also displayed are team will show March 2–4 at the Detroit Autorama at Cobo news articles and photoCenter. Credit: Gina Joseph, Digital First Media graphs highlighting his work the vehicles drawing a crowd at over the years, as well as the cars Meguiar’s Detroit Autorama, pre- done by his late father, Joe Lafata. sented by O’Reilly Auto Parts at Lafata and his wife started the Cobo Center in Detroit, MI. auto body company, but he inherited Then again, that’s how it goes at his passion for the business from his this show. dad, who was a car designer for What was old becomes new. Chrysler back when clay was used to What was blah becomes bling. carve out concepts for new vehicles. What was then becomes now, “Just watching him in the all through the imagination and tal- garage, taking old parts and turning ent of custom car refinishers and them into beauties like that,” Lafata builders. said, pointing to a photo of a sports car hanging on the wall of pride. That’s what sparked his interest in the automotive industry. The same is true of Bill Whetstone of Fair Haven and his grandson, Chris Herod, who worked on his first show car at age 14. Now a father himself, WhetBill Whetstone of Fair Haven and owner of Adonis, a 1960 stone attended Autorama Ford Starliner will be among the honorees inducted into with Herod as participants this year’s Autorama Circle of Champions and special guests. Whet“It’s the biggest and most pres- stone, who has attended shows since tigious show of the year,” said Eric 1958, was inducted into the AuLafata, owner of Lafata Auto Body torama Circle of Champions. The in Roseville, which has nine vehicles special award is given to members of in the show. He and his team, includ- the custom car community who have ing his wife and co-owner of the made major contributions to the shop, Sarah Lafata, Gerry Griffith hobby and industry. of Eastpointe, Ken Hayosh of War“It’s the greatest honor I’ve ever ren, Dane Grzadzinski of Roseville had,” Whetstone said. “It’s a place I and Dave and Steven Barrette of never thought I would be. For a car Warren, transformed the pile of old guy, it doesn’t get much better than parts into a custom-designed 1954 this.” Ford F100 pickup. Along with his family, Whet“We bought the truck a year stone brought his historic 1960 Ford ago,” Lafata said, before peeling Starliner. So beloved and beautiful is back a plastic sheet to reveal the the car that Whetstone named it Adotruck and its fancy paint job, which nis, after the handsome youth of by Gina Joseph, The Macomb Daily

APRIL 2018 AUTOBODY NEWS / autobodynews.com

The fastback resembles the old classic, but under its hood sits a supercharged engine that can reach speeds of 200 mph. Also a source of pride for Jackson and co-owner Paul Elizondo is a 1958 Chevrolet Apache. Elizondo said this build will resonate with people who like a classic style, but appreciate the high-end materials and craftsmanship of a modern vehicle. “It suits the person who wants to stand out in the crowd, the guy who wants to break necks every time he rolls by,” Elizondo said. More than 800 amazing and outrageous vehicles It's got cool classic styling but under the hood of this 1967 roared into Cobo Center. Ford Mustang Fastback is a modern supercharged engine. This beauty is one of several cars displayed by Detroit Among the local legends Deluxe Automotive are cars that raced across “The fastback is what every hot the big screen in the latest “Fast and rod-loving man, woman and child Furious” movie, and a special exhibit dreams of,” said Jim Jackson of of speedsters famous for their Brighton, co-owner of the vehicle record-breaking times on the Boncustomization and restoration shop. neville Salt Flats. The show also fea“It’s hard not to smile every time it tured a display of vehicles from See Autorama, Page 15 fires up.”

Greek mythology. “It’s an attention-getter,” he said. “It’s just a very clean-looking car with a beautiful, candy wild cherry, finish.” Another car that turned heads is the 1967 Ford Mustang fastback presented by Detroit Deluxe Automotive.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Lincoln, NE, Has More People Driving More Miles, but Fewer Crashes. Why?

by Riley Johnson, Lincoln Journal Star

More people are driving more miles on Lincoln, NE, streets than they were 18 years ago, but that hasn’t triggered an increase in fender-benders and T-bone crashes. The number of reported crashes in the city last year—8,997—was one percent lower than the 9,053 in 2000, even though Lincoln’s population swelled by almost a quarter in the interim. The question of exactly why is among the questions city officials hope to answer as part of a regular traffic study set to be released next month. Lonnie Burklund, the city’s assistant director of transportation, said the traffic study will analyze the past five years of crash data and seek to identify patterns at key locations, including problem intersections and street segments. Then the city will develop countermeasures. Lincoln’s annual crash total has hovered around 9,000 in recent years, police statistics show. The peak of 9,713 came in 2007. The nadir— 8,085—was in 2012. Statewide, crashes have been on

a downward trend since the millennium began, dropping 27 percent from 2000 to 2016. Yet in that time, motorists have continued to drive more.

That’s double the figure from before, and quadruple the $250 threshold that was in place when Zwonechek joined the Highway Safety Office 44 years ago. The initial change in 2004 reduced the number of reported crashes by 20 percent. Today, dispatchers in Lincoln field far more calls about crashes than they send officers out to investigate, said Officer Angela Sands, a police spokeswoman. In a random survey of dispatch logs, officers were sent to an average of 31 crashes each day, Sands said, while an average of An October crash at 18th and L streets was one 11 didn’t meet the damage threshof the almost 9,000 reported in Lincoln in 2017. old. Kayla Wolf, Journal Star file photo Lawmakers might need to inOne reason the crash numbers crease that threshold again someday, have dropped is tied to a change in state Zwonechek said, as automakers pack law that upped the damage threshold cars with more technology and parts for reporting wrecks to law enforce- become increasingly expensive. ment, said Nebraska Highway Safety Infrastructure changes and the administrator Fred Zwonechek. adoption of safety technology across All crashes in which someone is the automotive industry have facinjured or killed on a public road in tored into the lower number of Nebraska must be reported—That crashes, too, he said. hasn’t changed. But in 2004, the state Engineers at the state and local raised its threshold for crashes involv- levels have changed how they design ing only property damage to $1,000. roads, and cities such as Lincoln have

APRIL 2018 AUTOBODY NEWS / autobodynews.com

tweaked traffic signals to better direct driver behavior. Also, some motorists have taken to heart calls for drivers to reduce their distractions and not text and drive, he said. Another key might be the cars themselves, Zwonechek said. Kevin Gilbert of Economy and Performance Auto Services at 17th and O streets agrees. Automakers have expanded safety features such as the anti-lock braking system, which prevents uncontrolled skidding, Gilbert said. In the mid-to-late 1990s, they were available only in select models. Today, he said, “it’s pretty much universal.” As more sophisticated safety features continue to hit the market, crashes are increasingly the result of user error. “The cars really help you a lot now,” Gilbert said.

We thank Lincoln Journal Star for reprint permission.

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Vandals Destroy Nearly 300 Car Windows at Detroit Dealership by Randy Wimbley, Fox2 Detroit

Car Wize Auto Sales is going to be out of commission for a couple days, and it could not have happened at a worse time.

We’re in the thick of tax season, when a lot of used car lots make sales. But that’s hard to do when garbage bags double as car windows. Two suspects vandalized 55 cars, taking bolt cutters to nearly 300 windows. It all happened at Car Wize on John R, just south of Eight Mile in Highland Park, MI, early the morning of Feb. 21. The two crooks were caught on camera going from car to car, breaking windows. “I went into shock a little bit, because you just don’t know where to start,” said owner Ogeen Kada.

Kada said the damage to the car windows could be as much as $80,000. “That’s just in repairs,” he said. “That’s not talking about other damages. We have cars that have physical body damage to them, but we haven’t had time to assess them.” Kada said this is not the first time his business has been targeted. “Our Carleton location was actually set on fire about two weeks ago, and same thing: Three guys show up between 3 and 4 in the morning, [with] bolt cutters, cut a hole in the fence and then they vandalize the place,” he said. And he thinks the same people responsible for that, did this. Only two cars were left unscathed, and that’s only because they were in the garage. Car Wize is offering a $5,000 reward for information that leads to an arrest. If you have any information, contact Detroit police at (313) 596-5200.

We thank Fox2 Detroit for reprint permission.

Burnsville, MN, High School Auto Students Fix Their Teachers’ Cars by Christine Schuster, Savage Pacer

In an old bus garage, located a short walk away from Burnsville High School’s main building, a revamped, state-of-the-art auto body shop is operating in full swing. Burnsville High School senior Ryan Wolfe worked on installing

For students like Wolfe, the Pathways model provides a way to focus on his passion and gain industry credentials while in high school. He plans to study diesel mechanics at Universal Technical Institute in Arizona after graduation. Another senior student, Jackson Gray, takes classes in the automo-

“A lot of this technology here gets me familiar with what I’ll be using in the field” — Ryan Cosner

a new gas line into a rusty 1967 Chevrolet Malibu. Wolfe began working on small engines at a young age. “I can’t stand sitting down for a long period of time,” he said. “I love to work with my hands. I’ve always wanted to do stuff like this.” The 2016–2017 school year marked the beginning of the new Pathways curriculum at the high school. It is one of many significant changes made under the Vision One91 initiative to transform curriculum in the district.

tive pathway as a precursor to becoming a mechanic in the U.S. Army. The Pathways model is designed to help all students prepare to enter the workforce—whether that means exploring new classes or gaining credentials for the field the student plans to enter. Director of Strategic Partnerships and Pathways Kathy Funston said the 150,000-square-foot addition helped Burnsville High School become a comprehensive 9th–12th grade high school and See Teachers’ Cars, Page 60

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Auto Body Clinic of Huron, SD, Benefit Sale

by Staff, Huron Plainsman

Auto Body Clinic of Huron, SD, hosted a rummage sale in its shop on Feb. 10, with proceeds from all items earmarked for the Royal Family Kids Camp. People in the community brought in items they wanted to donate to the rummage sale. Royal Family Kids Camp is a camp that gives foster children a week of positive memories and royal treatment in a Christian camp environment. “Lorena Blom, (owner of Auto Body Clinic) and Christie Brantner (Director of Royal Family Kids Camp) were up and ready early that Saturday morning,” said Jen Block, the one behind the rummage sale, from Auto Body Clinic. “I couldn’t have done it without their help.” The James Valley Christian High School cheerleaders also came out and sold baked goods and coffee to the customers. The total amount of money raised was $1,238.75.

We thank Huron Plainsman for reprint permission.

Fire at CARSTAR in Troy, OH, Causes $1 Million in Damages

by Melanie Yingst, Troy Daily News

An estimated $1 million in damage to 19 vehicles, five RVs, the building and its contents have been re-

Every year, Levi Johnson at Turning Wrenches on Mellwood Avenue in Louisville, KY, sees flood-damaged cars.

And every year, he tells car owners the same thing. “It’s like a vacuum cleaner, basically,” Johnson said. “It’s going to pick up that water and suck it right in. And it’s going to get inside your engine, whether you want it there or not.” Johnson said even if you drive through a few inches of water, it can still cause damage. “A lot of modern cars, the air induction systems are so low to the ground,” he said. “It doesn’t matter if it’s 6 or 8 inches of water—It can cause a problem to your vehicle. Credit: WDRB

All three Troy fire stations reported to the scene, as well as Covington and Piqua fire departments.

Fire crews respond to a fire at Troy CARSTAR on Kings Chapel Drive. Credit: Mike Ullery, AIM Media Midwest

Midwest Firefighters from Covington Fire Department saw an opening in an overhead door at Troy CARSTAR to access a fire in the building on Feb. 27. Credit: Mike Ullery, AIM Media Midwest

ported following a fire at the Troy, OH, CARSTAR auto body shop on Kings Chapel on Feb. 27. The fire was reported around 6:25 p.m. Feb. 27 by a passer-by who heard the smoke alarms and saw smoke coming from the vents in the back of the building.

Auto Repair Shops Prepare for Flood of Damaged Cars Swallowed by Ohio River by Travis Ragsdale, WDRB.com

According to Assistant Chief Gary Stanley, the cause of the fire is still under investigation. Fire investigators are still trying to determine the exact amount of damage. No one was inside the building and no firefighter officials or personnel were injured in battling the blaze. Stanley also said the business’ paint booth was completely destroyed. He estimated it took two hours to contain the fire before officials could overhaul the building and its contents.

“The car is made to run off air and light fuel mixture, nothing like a complete liquid. So it locks the engine up when it ingests that much water.” The rising Ohio River has swallowed many cars across Louisville, and after the waters recede, it’s time to keep a closer eye out if you’re buying a used car. “Look under floor mats if you can pull parts of the interior carpet back, because a lot of people don’t go that far when they are trying to clean a flood-damaged car up,” Johnson said. “Look at the bolts of the seat—See if they’re rusty. A lot of that stuff has a very light film on it. So if water gets on it, it takes that film off.” Some drivers may get lucky and be OK, but driving through water could be an expensive gamble. Experts recommend that if you have a question about whether a car might be flood-damaged, call an independent mechanic to have it checked out We thank WDRB.com for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Casstown Volunteer Fire Department also was on stand-by at Station I in Troy during the incident.

Smoke pours from the rear of the Troy CARSTAR business on King’s Chapel Drive on Feb. 27. Credit: Mike Ullery, AIM Media Midwest

Stanley said business owners were working to restore electricity to open the businesses’ offices, including Enterprise Rent-a-Car, that same week.

We thank Troy Daily News for reprint permission.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Aspiring Auto Tech in West Salem, WI, Overcomes Struggles by Emily Pyrek, Lacrosse Tribune

Counselor Julie Arentz did a double take when Caden Kane walked into her office in November 2016. Recovering from an intensive surgery for a Chiari malformation, the resilient West Salem High School junior wasn’t due back for months, but has never been one to take it easy. Throughout his high school career, Kane, now a senior, has seen obstacles pop up at every corner, from multiple medical procedures to family strife. And yet when many would crumble, Kane stood tall, showing the initiative, positivity and unrelenting work ethic that earned him the La Crosse Tribune Extra Effort Award. “Caden’s been in a lot of tough situations, and he’s made his way through them,” said West Salem High School technology and engineering instructor Paul Liethen, who nominated Kane for the honor along with Arentz. “He’s continued to make good choices, even under the most trying circumstances.” Kane was a sophomore football player when he first experienced a rapid heart rate. Finding his chest pounding and struggling to breath, Kane was fitted with a cardiac monitor, which recorded rates of up to 250 beats per minute. A resting heart rate of between 70 and 100 is considered normal for a teenager. Diagnosed with paroxysmal supraventricular tachycardia, an episodic condition of elevated heart rate, Kane underwent a cardiac ablation in Sept. 2015, which scars and destroys the triggering tissue in the heart. He returned to school the next week, resuming football as well. That semester, Kane joined Liethen’s automobile fundamentals course and quickly developed a passion for mechanics. Having struggled in his core classes, Kane was a natural in the auto body shop, and joined Liethen’s weekly automotive technician training night course his junior year. Hitting his stride in school, Kane again found his health suffering, experiencing troubling symptoms during football and weight training classes. 12

“It felt like knives being stabbed in my arms,” Kane said of the pain radiating through his forearms. “On a scale from one to 10, it was a 15.”

“He didn’t miss a beat,” Arentz added. “He was an advocate for himself.” Kane resumed his regular school schedule, as well as his Tuesday evening auto course, where he took on a mentoring role with the younger students. “Where Caden shines is in the shop,” Liethen said. “He is absolutely the leader in our night class. It’s tough to hold him back... he’s always a couple steps ahead.” In June 2017, he applied for the Youth Apprenticeship program at Dahl Ford West Salem Extra Effort Award winner Caden Kane is on Liethen’s recommendaworking as an apprentice at Dahl Ford and taking night tion, putting in 45 to 50 classes on auto repair. Credit: Erik Daily, La Crosse Tribune hours during the summer at Initially identifying his pain as the Onalaska location. Upon resumnerve damage from a torn muscle, ing school his senior year, Kane kept doctors recommended physical ther- up a packed schedule, juggling a full apy and a CAT scan. Despite his course load with 30 hours at Dahl physical therapist’s insistence the Ford. screening wasn’t necessary, Kane unTension with his mother and derwent two scans, which revealed stepfather, which had developed over his Cerebrospinal fluid was herniat- the summer, reached a boiling point ing the cerebellar tonsils, exerting pressure on the spinal cord and brainstem. “They told me my brain was too big for my head, which was kind of funny,” Kane recalled. Transported to Mayo Clinic, he underwent posterior fossa decompression in Oct. 2016, requiring an incision on the back of the neck and the removal of a portion of skull and vertebrae. His physicians estimated he would miss up to four months of school, and while the recovery was uncomfortable, Kaden, who jokes of his high pain tolerance — “I’m tough. I’m used to pain,” he remarked — was most concerned with falling behind. “Missing school and making up the work was the [scariest] for me,” Kane said. Just weeks into his recovery, Kane walked to the school and approached Arentz for more homework to take home, teachers and classmates swiveling around in surprise at his presence. “I was a rebel,” Kane laughed. “I said I was going to come back (early), and I just did it.”

APRIL 2018 AUTOBODY NEWS / autobodynews.com

just before the semester began. Kane chose not to elaborate on the circumstances of the conflict, but found himself temporarily without a place to live last August, first staying with his girlfriend’s family while she attended college in Winona, and now residing with his maternal grandparents. He found much-needed encouragement in both homes, as well as at school. “They’ve been a great deal of support,” Kane said. “My grandma is the kindest person you would ever meet. Mr. Liethen’s been a big [source of] support.” Despite the turmoil in his home life, Kane kept up with his responsibility, putting in up to 15-hour days. Arriving at Dahl at 6 a.m., he logs an hour of work before arriving at school for his five daily classes, returning to the dealership until 6 or 7 p.m. On Tuesdays, work is followed by his three-hour night class. Homework is completed when he arrives back home around 10 p.m., or squeezed in intermittently during the See Aspiring Auto Tech, Page 27

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Nebraska Native Uses NPCC as Springboard to Pursue his Passion the eastern part of the state, but none of them offered exactly what I was looking for.” The turning point came when he met Don Wilson, an auto body instructor at North Platte Community College. “I really liked the fact that the projects his students were working on were all classic cars,” said Hill. “That’s what really brought me to NPCC. I hadn’t seen anything like Anthony Hill (fifth from right) stands beside the body of it.” the 2018 NPCC raffle car, a 1932 Ford Roadster. In front of the car is Hill’s Automotive Technology instructor, Bryan The two-year Classic Herrick Car Restoration program at Anthony Hill is living proof of NPCC consists of two semesters of that adage. Where he is now is ex- automotive technology and two seactly where he always wanted to be. mesters of auto body training. Those “I do classic car restoration at who successfully complete it receive The Car Doctor in North Platte,” said an automotive technology certificate Hill. “I love it. My dad always worked in customization and restoration. “I always thought of college as on old cars, and from the time I was big enough to walk, I was in the being a lot of bookwork and paperwork, but with Don and [Bryan garage trying to help him.” Hill’s passion for all things auto- Herrick, Automotive Technology motive continued through his teen instructor], it was a lot of shop time,” said Hill. “I think that’s the best way to learn, and that was my favorite part about NPCC—the hands-on experience.” Much of that hands-on experience comes in the form of the college’s raffle car. Every year, students Anthony Hill stands beside the 2017 NPCC in NPCC’s transportation department raffle car - a 1965 Chevrolet Impala either restore a classic car or build years. By the time he graduated from one from the ground up. The vehicle Pleasanton High School in 2014, there is then raffled to raise money for was no question what he wanted to do scholarships and production costs associated with the next year’s project. with his life. Hill got to help with three raffle “I began looking at schools that could help me break into the restora- cars: a 1968 Ford Mustang Coupe in tion industry,” said Hill. “I looked at 2016, a 1965 Chevrolet Impala in 2017 Southeast Community College at and this year’s 1932 Ford Roadster. “The Roadster was my favorite,” Milford and some other schools in “Choose a job you love, and you will never have to work a day in your life.”

said Hill. “I worked on it more than the other vehicles. I built the motor and did a lot of the framework.”

Anthony Hill poses beside one of his recent restorations during a car show in downtown North Platte. Hill went through the Classic Car Restoration program at NPCC

The Mustang and the Impala were restoration projects. They were reduced to a bare shell, then reconstructed and modified using a combination of traditional and modern engineering and technology. The Roadster is different in that it is a new car built entirely from scratch with Speedway parts. Both types of projects taught the students about chassis, electrical systems, drivetrains, engines, refinishing and upholstery. “I like the history behind the classic cars,” said Hill. “It’s cool to

see how things were done back in the day. Learning both those traditional and modern methods at NPCC really prepared me for what I do now. We take brand-new motors and put them in cars [that are] 60 years old.” Hill graduated from NPCC in 2017, but his instructor’s influence didn’t stop there. Wilson put Hill in contact with The Car Doctor when a job opening became available, and the rest is history.

Anthony Hill receives painting tips from Don Wilson, auto body instructor at North Platte Community College

“I’m very lucky to be working where I am,” said Hill. “Right now I’m just trying to learn as much as I can, and time will tell how far I go. One thing’s for certain—I’ll always be doing some form of restoration.”

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Anthony Hill (thrid from right) works on a class project as part of an Engine Fundamentals class at NPCC. Hill has since graduated from NPCC and has a job in classic car restoration 14

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students at 50 Michigan schools; 25th annual Toy-A-Rama and Pedal Car Challenge presented by Summit Racing Equipment; a charity auction for Leader Dogs for the Blind; and an outdoor truck and car flamethrowing fest. Celebrity guests included racing legend Dale Ernhardt Jr., WWE wrestlers Charlotte Flair and Roman Reigns and “Car Crazy” host Barry Meguiar. “We are always striving to bring new excitement to Autorama along with the most spectacular showing of performance cars anywhere in the country,” said Peter Toundas, president and owner of Championship Auto Shows Inc., producers of Autorama. We thank The Macomb Daily for reprint permission.

derscores that no repair shop or technician may complete a repair that deviates away from the OEM’s specifications for the given part unless the customer has given authorization in writing and is fully aware of the difference between the OEM and aftermarket part. Current state law already prohibits insurers from specifying a non-OEM part for an insured’s auto repair. Similarly, repair shops and technicians are not allowed to use aftermarket parts unless the customer is advised of it writing. Under the Automotive Collision Repair Act, repair shops are required to disclose to the customer whether the part used in the repair is old, new or aftermarket—the amendment only aims to require a customer’s written consent to use a non-OEM part. The bill has been referred to the Rules Committee.

signing any rights of the insured or claimant to the repair shop or a third party; Accept the assignment of any rights of an insured or a claimant related to the repair of the motor vehicle.” Under the same chapter, legal action that can be taken against an insurer is restricted. According to the amendment, if an action were to be brought forth as a deceptive act, the action may only be brought on behalf of an individual, not a group or a class of plaintiffs. It would also be a rebuttable presumption that a repair is not defective if it’s done according to the OEM’s repair procedures or “generally accepted industry standards.” The amendment also removed language that weakened the bill’s anti-steering measures, including an insurer’s failure to conclude an investigation promptly due to the insured’s repair facility choice. According to the Indiana Auto

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Body Association (IABA), the organization that originally pushed for the bill, the amendments were added last minute. Due to these changes, it has withdrawn its support. “As many are aware, the IABA has been working with Senator Mark Messmer on Senate Bill 164,” the group said in a Facebook post. “The [bill] was heard … by the House Insurance Committee, where a lastminute amendment was thrown in that we WILL NOT support … The IABA Board Members and a few others are working with Senator Messmer to see that the amended bill does not pass at it reads currently.” The bill was passed on to the Senate, which has refused to concur with the House Committee’s amendments. We thank glassBYTEs.com for reprint permission.

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‘Transportation Academy’ Turns Out Future Auto Repairers in OH

by Morgan McKinniss, Gallipolis Daily Tribune

The ability to drive is a foundational aspect to life in Gallia County, OH. With the operation of automobiles, service and maintenance of those cars becomes an important aspect of the local economy. Buckeye Hills Career Center trains and prepares students to do just that—repair and service cars. In the Transportation Academy, there are three different programs that train students to work in various fields from the farm to the garage. Agricultural and Diesel Mechanics is a program that trains students for work in a wide variety of areas, particularly occupations having to do with agricultural and industrial diesel engines. “They learn a basic set of skills rather than a concentrated set. We work on cars, we paint, we do some auto body, we do some welding, stick and mig, and do everything in between basically,” said instructor Randy Hamilton. “Most of my students that want to do this wind up in a starter or entry-level mechanics job, regardless of whether it’s auto or (agricultural) or equipment—it’s all

be a diesel technician,” said Lee Gau. “My favorite part is the memories you make and the friends you make.” Students don’t only have the chance to learn about diesel and agricultural mechanics— there are also programs designed to train students to service and maintain automobiles. Auto Service Technology teaches students to inspect, diagnose and repair the electrical, mechanical and auxiliary systems of a car. Students learn this trade by working in labs with hands-on experience diagnosing and repairing Jason Cain works to secure the frame of a truck to a spevehicles. cial rig that can straighten out a bent frame, a necessary “I like cars—It’s been skill for students in auto collision. Morgan McKinniss|OVP my whole life. Hopefully engines because many old diesel me- in the future I can use my training to chanics weren’t taught to, and strug- help people in the community,” said gle to repair a lawn mower because Damian Preston. of the differences between gas and “I’ve grown up around vehicles diesel engines. my whole life. I want to make my ca“I like trucks, and a little bit of reer in it,” said Aaron Causey. tractors. I want a degree in (agriculThe Auto Service Technology ture) since I want to go to (Universal program is certified by the National Technical Institute) in Chicago and Institute of Automotive Service Exaround.” Students are taught to work on diesel engines, as well as small engines found in equipment such as lawn mowers and weed eaters. Hamilton adds the emphasis on gas

APRIL 2018 AUTOBODY NEWS / autobodynews.com

cellence (ASE), which also certifies mechanics and garages. The third program in the transportation academy is Auto Collision Technology, which provides training for body repair and painting. Students are taught the skills necessary to weld, metal repair, straighten frames, paint and perform automotive refinishing. Students receive hands-on education in this field as well as time in the classroom learning about modern techniques and habits of the trade. “I want to learn how to do body work and all that stuff. I want to learn how to fix cars and how to paint,” said Jason Cain. “I want to get a job in auto collision after high school.” In all three of these areas, students will graduate high school with the ability to enter the job field working with their hands. As with all programs at BHCC, these take two years to complete. Sophomore students who want to enter the program as juniors should contact the school at 740-245-5334 or visit its website at www.buckeyehills.net.

We thank Gallipolis Daily Tribune for reprint permission.

AASPI Annual Meeting Features Terrific Speakers

AASPI Executive Director Mike Lane said, “State Senator Thomas On Feb. 24, the Alliance of Automo- Cullerton stopped by and was so imtive Service Providers of Illinois pressed with Tracy’s talk that he volunteered to sponsor AASPI’s bill, HB4926, in the Illinois Senate.” Next, Mike Anderson of Collision Advice presented “Get Certified? OEM Certification: The Pros and Cons.” Additionally, AASPI Chief Lobbyist Brian Wojcicki reTodd Tracy shared information on the John Eagle verdict viewed several pieces during AASPI’s Annual Meeting of legislation, includ(AASPI) held its Annual Meeting at ing HB4926, which would require the Diplomat West in Elmhurst, IL. estimates to be written with OEM The meeting attracted nearly 100 at- parts and to OEM repair specificatendees. tions. AASPI President Bob Gottfred According to Lane, “It [is] our noted, “We received good feedback annual meeting where we bring in about the meeting.” top-level presenters and update Texas attorney Todd Tracy members on our legislative initiakicked off the meeting with his pres- tives. It brings together a strong comentation on “The Anatomy of a Law- posite of our membership and is a suit: The Crucial Details of the $42 visible sign of the strength of this orMillion Verdict,” sharing details on ganization.” the depositions, the trial and the information the jury used to decide For more information on AASPI, visit upon the precedent-setting verdict. www.aaspi.org. by Chasidy Rae Sisk

AASP-MN Annual Meeting & Leadership Conference to Take Place April 5

The Alliance of Automotive Service Providers of Minnesota (AASP-MN) is pleased to announce its Annual Meeting and Leadership Conference will be held April 5, 2018, at the Doubletree by Hilton BloomingtonMinneapolis South, 7800 Normandale Blvd., Bloomington, MN.

This year’s event, with the theme of “Focus on Success,” offers a line-up of seminars that are specifically geared for mechanical and collision repair shop owners and managers, and are presented by some of the industry’s top trainers. In addition to the robust agenda of educational programming, there will be ample opportunity for attendees to network and socialize with their peers and industry vendors as they showcase new products and services during happy hour. Here’s what’s in store:

8:00–9:30 a.m. Opening General Session: Bring It!, Terry Watson, Easify, Inc. 9:45–11:30 a.m Roundtable Discussions (Three-30 minute sessions) Topics TBD 11:30 a.m –1:30 p.m. Luncheon Keynote: Momma Told Me There’d be Days Like This, Mark Mayfield, Mayfield Presentations 2:00–4:00 p.m. Can I Have a Side Order of Service with That? Creating Dazzling Customer Service, Mark Mayfield, Mayfield Presentations 2:00–4:00 p.m. The Secrets of America’s Greatest Body Shops – Six Secrets Revealed, Dave Luehr, Elite Body Shop Solutions 2:00–4:00 p.m. Survive & Prosper in the Auto Repair Business, Dan Gilley, RLO Training 4:00–6:00 p.m. Vendors Showcase & Social Hour 6:00–8:30 p.m. Industry Dinner & Casino Royale For registration information, visit the AASP-MN website, www .aaspmn.org or contact the AASPMN office at 612-623-1110.

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Auto Body Customization Business Offers Unique Designs in SD

by Patrick Anderson, Argus Leader

It didn’t take long at all for Derrek Hamilton to start customizing cars. He started with the 1992 Honda Prelude he got in high school.

Premium Dips & Design owner Derrek Hamilton hydrodipped a hood scoop for a customer March 2 at his shop in Sioux Falls, SD. When Hamilton pulls the hood scoop out of the water, the liquefied film is on the hood scoop. The design is called “turbos and pistons.” Credit: Brianna Sanchez, Argus Leader

Now, Hamilton’s auto body customization business offers one-of-akind design options for Sioux Falls, SD, drivers. Premium Dips and Design Hydrographics specializes in a process that allows Hamilton to put a unique artistic touch on car parts, utilizing an

adhesive technology that lasts longer than decals or wraps. “I’m a pretty creative person and this is kind of like the new innovation,” Hamilton said. Hamilton offers drivers a wide variety of car customization options at the shop he rents at 807 N. Helen Ave. After graduating from Mitchell High School, Hamilton went to the auto body program at Southeast Tech.

On Feb. 13, ASA-OH hosted a Central Ohio networking event at the Four Strings Brewing Company in Columbus, OH. According to ASA-OH Executive Director Matt Dougher, “The meeting was well-attended. Zach Feller of Keystone Insurance Group provided an excellent presentation on the future of the health care industry. The attendees found the presentation very informative and had many questions on how it relates to their businesses. “We hosted this meeting to help shop owners and their teams understand the health care market and what to expect moving forward, as well as to provide a fun atmosphere to network with other shops. All the attendees appreciated the information that Zach provided on the health care industry, and they also enjoyed Four Strings Brewing Company and the craft beer they produced.” Dougher feels it’s important 20

Hamilton said. He can also apply the adhesive designs to cell phone cases and golf clubs. “Anything that can go inside of the water, you can do,” Hamilton said. The Sioux Falls’ car scene has been a good place to build up his business, Hamilton said. “There are a lot of people in custom cars,” Hamilton said. “That’s what I kind of grew up around.”

Derrek Hamilton hydrodipped accessories in his car March 2 at his shop in Sioux Falls, SD. Credit: Brianna Sanchez, Argus Leader

Premium Dips & Design owner Derrek Hamilton shows a hydrodipped hood scoop he created for a customer Friday, March 2. Credit: Brianna Sanchez, Argus Leader

He started Premium Dips in 2016 after taking out a line of credit from the bank and searching around for a space he could rent out with a paint booth and enough room to do his work. He’s spent the last two years

ASA-OH Meeting Attendees Learn About Future of Health Care Industry by Chasidy Rae Sisk

building up his customer base and showcasing his work in local competitions. His motorcycle customizations have won awards at local shows,

for associations to offer these types of educational opportunities for members. “ASA-OH events provide shop owners and their staff an opportunity to network with other shop owners and share their views on the current status of the industry. The guest speakers also provide important information to help make their shops run more efficiently and profitably.” ASA-OH will next host Mike Anderson of Collision Advice for his newest workshop on “100% Disassembly and Parts Best Practices.” Seminars will be held on March 9 at Tree of Life Ministry Center in Columbus, OH, and on March 10 at the ESC of Cuyahoga County in Independence, OH. Members pay just $159 for the workshop. For more information about ASA-OH or its educational offerings, visit www.asa ohio.org.

www.autobodynews.com

APRIL 2018 AUTOBODY NEWS / autobodynews.com

including numerous Bike Nights, an event hosted weekly at local bar and restaurant 18th Amendment. Hamilton’s specialty is hydrographics. The technology allows him to customize car body parts with artistic designs by dipping them into water. The same technique works on just about anything—not just car parts, Hamilton said. Dipping is a slang term used to describe the process. One of the most popular household items people want dipped is reusable drink tumblers,

Derrek Hamilton hydrodipped a hood scoop for a customer. Credit: Brianna Sanchez, Argus Leader

For more about Premium Dips and Design Hydrographics, check out its Facebook page or call 605770-2437.

We thank Argus Leader for reprint permission.

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WIN Announces 2018 Educational Conference Agenda in Indianapolis

by Chasidy Rae Sisk

The Women’s Industry Network (WIN®) recently published the agenda for its 2018 Educational Conference, to be held on Monday, May 7 through Wednesday, May 9 at the Hyatt Downtown Indianapolis in Indiana. This year’s theme is “Racing to Connect.” Before the conference officially opens on Monday, first-time attendees will have the option of attending one of WIN’s member orientation sessions. At 1 p.m., the Conference will kick off with the Opening General Session: WIN Welcome. Next, the Paul Hertz Group will lead attendees in a networking activity focused on people’s core motivations and how understanding these motivations can make leaders more effective in all realms of their lives. Monday evening will conclude with a Welcome Reception from 5 to 6 p.m. WINners will reconvene on Tuesday at 7 a.m. for the Annual WIN Scholarship Industry Walk, with proceeds benefitting WIN’s scholarship fund. After breakfast, Dr. Lois Frankel of Corporate

Coaching International will present “Leadership is a Women’s Art,” followed by “Racing for Success” with Brittany and Courtney Force from the John Force Racing Group. During lunch, attendees will learn about

“Traveling the World with your Family for Free: The Secret Primer to Award Travel” from Ben Komenkul. On Tuesday afternoon, attendees will choose two of three breakout sessions from the following options: “Mastermind Groups, Budgeting and Goal Setting” with Brad Mewes of Supplement; “Calibrating, Pre and Post-Scan” with Denise Caspersen from asTech; and author Jim Webber’s “Toxic People: How to Work with Them Without Becoming One of Them.” Tuesday evening will feature

WIN’s Annual MIW and Scholarship Award Ceremony and Gala Dinner, where WIN will honor its 2018 scholarship recipients as well as its 2018 Most Influential Women (MIWs). This year’s MIW honorees are Shelley Bickett, Director and Co-Founder of Fix Auto USA; Mary Mahoney, Vice President of Enterprise Holdings’ Insurance Replacement Division; Marie Peevy, owner of Automotive Training Coordinators LLC; and Petra Schroeder, Collisionista. Wednesday morning’s sessions will begin with Bogi Lateiner’s presentation, “Bogi’s Garage—Connecting the Next Generation,” followed by an “Industry Update” from the Hartford’s Greg Horn. A panel discussion will be held on the topic of “Connected Cars” before WIN’s Closing Session concludes the 2018 Educational Conference.

For more information on WIN and the 2018 Education Conference, visit https://thewomensindustrynetwork.site-ym.com/.

2 Men Shot To Death in Little Village, IL, Shop

by Amber Fisher, West Side Patch

Two people were found dead in an auto shop in Chicago’s Little Village neighborhood Saturday, March 10, police said. The victims were shot in Auto Body Castenada in the 3300 block of South Lawndale Avenue, according to police. Their bodies were found just before 6 p.m. Saturday. Both victims were found with gunshot wounds to their heads, police said. Dozens of officers responded to the shooting. One of the victims was identified as 56-year-old Gilberto Casteneda, according to the Cook County Medical Examiner's Office. Casteneda and a 33-year-old man were pronounced dead at the scene, authorities said. The identity of the 33-year-old has not been released. No one was in custody as of the morning of March 12, and the investigation is ongoing. We thank West Side Patch for reprint permission.

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Omaha, NE, Area Firefighters ‘Cut Up’ Vehicles at CARSTAR Don & Ron’s

In crashes where minutes can spell the difference between life and death, first responders to the accident scene need up-to-date training so they can act quickly and safely. Keeping firefighters abreast of the latest new technology in vehicles is a challenge for every local fire department. The First Responder Emergency Extrication program (F.R.E.E.) keeps first responders abreast of the rapid changes in vehicle design. High-strength steel, airbags, advanced restraint systems and safety around alternative fuel vehicles are all covered in the training. CARSTAR Don & Ron’s, located at 5329 South 72nd St., Omaha, NE, hosted a F.R.E.E. event on March 14. More than 30 firefighters from Omaha, Ralston, Boys Town, Council Bluffs and Emerson, IA, attended this training. The true strength of this program is the opportunity to practice “cutting” late model vehicles. Salvage cars were donated so first responders could get a chance to practice “cutting” vehicles in a controlled and safe environment. The F.R.E.E. program is a partnership between the National Auto Body Council and Holmatro Rescue

Equipment. Holmatro is an international rescue equipment manufacturer. Four salvage vehicles were

donated by State Farm for firefighters to practice “cutting” techniques. Towing was donated by Young’s Towing and Insurance Auto Auctions. “State Farm is proud to be able to provide a donation that is enhanc-

Luther Bloomington Acura Our parts. Your peace of mind.

ing the learning and training of our first responders,” said Kelly Pargett, State Farm Community and Media Relations. “We make it our business to help build safer, stronger and better educated communities.” Dan Crowbridge from Holmatro Rescue Equipment was the instructor at the event. The program displayed key products used to increase the speed at which occupants can be removed safely from damaged vehicles. “Our training and experience in repairing vehicles also translates into knowledge of how to `cut’ these vehicles in an emergency scenario,” said Darrin McGaughey, general manager of CARSTAR Don & Ron’s. “Holmatro knows the tools and techniques for extrication. CARSTAR body shops know the vehicles.” The growing popularity of highvoltage hybrid and electric vehicles and the many safety concerns surrounding these vehicles make this training a necessity. Alternative fuel systems present different challenges when first responders arrive at the scene of an accident. Electric cars, hybrid cars and natural gas vehicles have fuel systems that pose dangers

for first responders if need arises to “cut” the vehicle for rescue. “First responders need to know about alternative fuel vehicles on the road,” said McGaughey. “We teach the firefighters how to be safe when working around those vehicles and how to disable the systems if needed.” The training included alternative fuel vehicles, and Baxter Ford provided an electric hybrid for training purposes. “CARSTAR Auto Body Repair Shops are committed to helping our community become a safer, better place to live,” said McGaughey. “Hosting the F.R.E.E. events is a way for our body shops to further serve our community.” More than 900 first responders have been trained at the CARSTAR locations in Omaha and Lincoln since 2010.

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Olympics Ran on Self-Driving Cars, Electric Buses by Jin Eun-Soo, Korea JoongAng Daily

Attendees of the PyeongChang Winter Olympics had a chance to ride vehicles of the future, including shuttle buses powered by electricity and cars that drive themselves. Hyundai Motor Group, the country’s largest automaker, and the public utility Korea Electric Power Corporation, both official partners of the Games, are supplying eco-friendly cars and charging facilities for electric cars while promoting technology they have developed. Hyundai Motor and Kia Motors are providing more than 4,000 vehicles including sedans, vans and buses to shuttle athletes, sports officials and spectators between venues at the Olympics. A good portion of them are relying on green power. In addition to free transportation, Hyundai has five of its new hydrogen-powered sport utility vehicles, Nexo, available to test. In particular is the car’s autonomous driving technology, which is Level 4 on the Society of Automotive Engineers’ index, meaning the car can largely drive on its own except for some emergency situations where a human has to intervene. Hyundai is testing the model at the Olympics before putting it to wide release. The test course is a 7kilometer (4-mile) route that includes curvy roads, roundabouts and

with autonomous driving technology. Instead, they are meant to show off the automaker’s hydrogen fuel cell technology, on which the car is powered. The hydrogen car is able to run 600 kilometers on a single charge, which the company says takes less than five minutes. Fifty of these cars, which will go on Clockwise from top left: Hyundai Motor’s hydrogen-electric sale in Korea in March, will bus, which will shuttle visitors between Gangneung Station, be available at the Gangnea major rail hub, and Gangneung Olympic Park; a hydrogen ung and Pyeongchang test charging station at the Yeoju Rest Area in Gangwon set up by Hyundai Motor; and an incapacitated driver warning sites. system that tracks a driver’s eyes and sounds an alarm The Korea Electric Power when it detects drowsiness [HYUNDAI MOTOR] Corporation will be using but the car will largely drive on its Hyundai cars to transport governown. Out of safety concerns, it will ment officials and company execumaintain speeds below 50 kilometers tives. It has purchased 150 Ioniq electric vehicles for various business an hour. The self-driving Nexo is able purposes at the Games. To ensure to accelerate, slow down and stop smooth travel, the state utility installed on its own by using Lidar sensors 26 rapid charging stations at major to inspect its surroundings, includ- Olympic venues around Gangneung ing road conditions and presence of and Pyeongchang. “It may not be a lot,” an official nearby vehicles. It relies on preloaded map data as well as GPS from the company said, “but we are happy that we could be of small help readings. The test drive takes less than 15 minutes and is available for anyone who signs up at the Hyundai Pavilion near the PyeongChang Olympic Stadium or online. Longer test drives are available from Gyeongpo Lake in Gangneung and Jinbu Terminal in Pyeongchang, though these Nexo cars do not come intersections. In each session, a Hyundai engineer will occupy the driver’s seat in accordance with local regulations,

Tips to Avoid Buying Flood-Damaged Cars in IL

by Ty Batemon, IllinoisHomepage.net

Many areas throughout Central Illinois have flooded and cars have gone underwater, so there are some things you should know so you don’t pick a lemon. The Secretary of State’s Office screens title applications from areas impacted by flooding to see if the cars are registered in a county hit by flooding. Before getting to that point, there are some questions shoppers can ask before shedding any cash. The cars may look good on the outside, so it’s hard to spot the true problems. Sometimes the owner of the car will improve it to make it look better and make the sale. Since some dealers aren’t up24

front, one 20-year expert said there are some things to keep in mind while car shopping. “I would feel underneath the seats to feel if it’s wet at all, waterlines on the seats or door panels. Any rust on the interior bolts and nuts and stuff. That’s also an indicator. Musty smell—That’s also an indicator,” said Fifth Dimension Collision Repair owner Ingrid Hampton. Foggy headlights, electrical wiring and the VIN number are other things to check. Even though you may have these as highlights, it never hurts to have a mechanic take a look at the car. We thank IllinoisHomepage.net for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

to the Winter Games and align with the organizing committee’s intention of making this a green Olympics.” Four hydrogen-electric buses made by Hyundai Motor will shuttle visitors between Gangneung Station, the city’s main rail hub, and Gangneung Olympic Park. It comes with an incapacitated driver warning system that constantly monitors the eyes of a driver to ensure he or she remains awake. If the driver begins to doze, the system sounds an alarm. A fifth bus will operate as an express bus carrying VIP guests from Yangyang International Airport to sites in Pyeongchang and Gangneung. “We are going to operate the hydrogen-electric bus topped with state-of-the-art technology for the safety of visitors coming to see the global event,” Hyundai said in a statement. “Even after the Games finish, we will put our best effort into secure commercial vehicle safety in Korea’s public transportation.” We thank Korea JoongAng Daily for reprint permission.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

A Tale of Two Paints: A Visit to Axalta’s Training Center by Barbara Davies

On Feb. 22, I arrived at the Axalta media event on behalf of Autobody News expecting a tour of Axalta’s training center in Concord, NC. Little did the other media participants and I know, we would also be getting a chance to spray two of Axalta’s premier basecoats: Cromax EZ and Spies Hecker Hi-TEC. Before the hands-on spraying took place, Harry Christman, Axalta’s North America Cromax Brand Manager, gave an overview of Axalta’s history, the collision repair market and the target audiences for both the Cromax EZ and Spies Hecker HiTEC waterborne basecoats.

Christman outlined the top three market trends: 1. The insurance market continues to consolidate and the top 10 insurers, led by State Farm and GEICO, continue to push direct repair programs to lower costs and improve CSI. 2.

Top insurers will continue to

drive DRPs and reward MSOs with more work, fueling MSO segment growth. As of 2014, over 30 percent of DRP workflow is allocated to MSOs.

“Big insurers, State Farm, etc., are becoming more influential,” Christman said. “The big are getting bigger and

nel with insurers. “The MSOs are all about growth, repeatable processes and strategic relationships. These are large-scale operations, many with hundreds of locations across the country. They want to grow and standardize every process and KPI, and narrow down the variables. Their culture is standardized in order to meet company growth goals. They are all about productivity.”

3. Despite all the consolidation fueled by the “Big 4” MSOs’ growth, the nonMSO (e.g. independent shop) market size is still sizable at $23.3 billion or 72.1 percent of the total market (Romans Axalta media event participants spray two of Axalta’s premier Report 2015)

basecoats, Cromax EZ and Spies Hecker Hi-TEC, at Axalta’s training center in Concord, NC, on Feb. 22

they have extensive DRP programs. The insurers are partnering with MSOs for efficiencies and are laserfocused on productivity and CSI. MSOs streamline their processes and productivity to ensure their DRP chan-

Hence, the Tale of Two Paints: Spies Hecker Hi-TEC and Cromax EZ.

Axalta launched Spies Hecker Permahyde Hi-TEC waterborne basecoat about 10 years ago. It was designed to

provide a faster process to help improve cycle time and CSI. Hi-TEC’s streamlined process was a great fit for the MSOs in that it only required 1.5 coats wet on wet application with no flash required between coats. Fewer coats provided increased productivity and capacity with higher spray booth throughput. “Spies Hi-TEC requires about seven minutes of application time vs. 30+ minutes for a traditional paint process,” Christman said. “It gives shops the capability of pushing through more cars for greater profitability—something the MSOs are keenly focused on.” “When Axalta came out with Spies Hecker Hi-TEC, they thought that all shops would move away from the traditionally applied basecoats since Spies Hi-TEC required fewer base coats and less drying time in between coats. “We were wrong! Many of the independent shops liked using the traditional basecoats that they had great expertise with, and didn’t want to switch to Spies Hi-TEC. These

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shops may have some DRPs, but they are not driven solely by insurance companies and DRPs. They have more latitude to select the processes, and paint, that they want to use. “An analogy I like to use is getting a notification that a piece of software you use constantly (for example, software version 1.0) has a new version, 2.0, that the software company wants you to upgrade to. You know how to use version 1.0, and even though you know the new version 2.0 is probably better, you resist upgrading. “This is what Axalta experienced when they launched Spies Hi-TEC. Some painters have been using a particular paint process for 20+years. They understood that Hi-TEC might be better, but it required a different spraying technique and they didn’t want to give up their current painting process.” To continue the analogy, many painters who loved version 1.0 (Cromax) didn’t want to go to version 2.0 (Spies Hi-TEC). “Axalta realized after 7+ years of trying to get all painters to switch to Spies Hi-TEC, some painters just

didn’t want to give up the way they had been painting for years,” Christman said. “Axalta listened to these painters and came up with a new Cromax, Cromax EZ, in late 2017.”

Axalta media event participants speak with Steffen Apollo (r), Brand Manager, Spies Hecker, Standox at the Axalta training center

As Christman explained, Cromax EZ is “waterborne made easy.” It was designed to be simple and incorporated the same spray and blending techniques that independent shops have been using for years.

Cromax EZ’s new basecoat is all about simplicity: • Easy to mix: No agitation toners, eliminates need for traditional

mix machine. • Easy to match: Intuitive Fan Deck with 5,500 color chips sorted chromatically as well as digital Acquire Quantum EFX and Colornet Web 2.0. • Easy to apply: Coat-flash technology. Familiar wet on dry application process, similar to solvent borne. No wait time before applying clearcoat. To experience these paints first hand, all Media Day attendees were suited up and invited into the booth to spray each brand and experience each paint process first-hand. After spraying both paints, I certainly appreciated the speed and efficiency of spraying Spies Hecker Hi-TEC paint, but there was something compelling about the artistry of spraying the Cromax EZ, even though the process did take longer. My takeaway: Two options are better than one.

To learn more about Axalta’s Cromax EZ and Spies Hecker Hi-TEC, go to axaltacs.com.

Continued from Page 12

Aspiring Auto Tech

day. For his senior exit project, Kane is fixing up his 1986 F-150 truck— his thesis on the benefits of shop courses. Kane plans to apply for the automotive technician program at Western Tech, and hopes to enter the Ford ASSET (automotive student service educational training) program at Hennepin Technical College the next year. “I’m working my butt off for it,” Kane said of the coveted six-semester program. “I really want it.” Arentz and Liethen marvel at Kane’s upbeat attitude, noting the “intelligent and hardworking” refuse to accept pity, powering through without complaint. “He’s just kept in stride,” Liethen said. “As a freshman, if I had known the course that was facing him, I would have said no way he’d be (this successful). He’s going to be a great auto tech someday soon.” We thank La Crosse Tribune for reprint permission.

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330-633-8197 330-633-6060

Dept. Hours: M 7:30-8; Tue-F 7:30-6; Sat 8-4 Karl_messer@victoryplymouth.com

Dept. Hours: M-Thu 6:30-9; F 6:30-6; Sat 6:30-5 parts@rbhonda.com

Roper Honda

Dept. Hours: Tue, W, F 8-6; M, Thu 8-8; Sat 8-4 grobinette@glakeshonda.com

F ish er s

800-806-6404 317-299-3723 Dept. Hours: M-F 8-6 honda-west@att.com M IC HIG A N

Zeigler Honda Ka la ma zoo

M ISSO URI

888-342-1678 269-585-5812

Bommarito Honda

Dept. Hours: M-Thu 7-8; F 7-6; Sat 8-4 bobsmith@zagteam.com

800-731-8270 314-731-8270

MI NNE S O TA

Brookdale Honda

Ha ze lwoo d

Dept. Hours: M-Sat 7-6 Lrowe@bommarito.net

B ro o k lyn Ce n ter

Ed Napleton Honda

800-899-8900 763-331-6880

S t . P et e r s

Dept. Hours: M-Th 7-9; F 7-6; Sat 8-6 parts@lutherbrookdalehonda.com

Buerkle Honda St. Pa u l

800-592-9514 651-484-0975 Dept. Hours: M-Thu 8-9; F 8-6; Sat 8-4:30 hondaparts@buerkle.com

IL LINO IS

800-875-4190 636-928-4400 Dept. Hours: M-Sat 7-6 gethondaparts@napleton.com

Frank Fletcher Honda C ol um bia

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M INNE SO TA

Jo p li n

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Dept. Hours: M, W, Th, F 7:30-6; Tu 7:30-7; Sat 9-1 dvice@roperauto.com

800-225-0281 330-478-4435 W IS CO NS I N

Superior Honda of Omaha O m ah a

M i lwa u ke e

888-318-1671 414-586-5401

Dept. Hours: M-F 7-5:30; Sat 8-6 ianw@hondaofomaha.com

Dept. Hours: M-F 7-6; Sat 7-4; Sun 8-4 hondaparts@russdarrow.com

Honda of Lincoln

Wilde Honda

Li n co ln

Wa u ke sh a

800-742-7811 402-437-1201

800-526-3209 262-542-9300

Dept. Hours: M-F 7-5:30; Sat 7-12 hondaparts@hondaoflincoln.com

Tr oy

708-460-6369 708-403-7770

800-717-3109 763-488-1122

800-935-0923 248-643-0900

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Dept. Hours: M, F 7-5:30; Tue-Thu 7-7; Sat 7:30-4 acuraparts@buerkle.com

Dept. Hours: M 7:30-8; T-F 7:30-6; Sat 10-3 parts286@acuraoftroy.com parts287@acuraoftroy.com

McGrath Acura of Morton Grove

Luther Bloomington Acura

Mo r ton Gr ove

800-451-5078 952-887-0600

Acura of Brookfield

Dept. Hours: M 6:30-6; Tue-F 6:30-9; Sat 8-4 parts@bloomingtonacura.com

800-383-3936 262-439-6029

Ho ffma n Esta te s

Dept. Hours: M-F 7-9; Sat 8-4 wildehondaparts@gmail.com

MIC HIGAN

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Tu-F 7:30-5:30; Sat 8-4

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888-408-0911 402-408-1100

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Dept. Hours: M-F 7-9; Sat 8-6 acparts@mcgrathag.com

M a si l lo n

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Orl an do Pa rk

847-470-2309

Dept. Hours: M-F 7:30-6; Sat 8-4 jayhondaparts@gmail.com

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K a ns a s C it y

Joe Rizza Acura

B loo m ingt o n

Be d ford

800-509-9057 440-786-3363

Acura of Troy

W IS CON SIN

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Dept. Hours: M-Th 7:30-6; F 7:30-5; Sat 8-4:30 patrick.murphy@zimbrick.com

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

In Reverse

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

with Gary Ledoux

The 1930s – New Products and an Insurance Company’s Realization The 1930s ushered in the biggest financial calamity of all time: the Great Depression. The Depression resulted in widespread unemployment and poverty in the U.S. and around the world. At the beginning of the 1930s, more than 15 million people, or roughly 25 percent of America’s workforce, were idle. President Hoover did little to alleviate the pain and despair and thus lost the 1932 election to Franklin D. Roosevelt and his New Deal. Between 1930 and 1932, more than 9,000 banks failed, taking with them more than $2 billion in assets. In the days before the Federal Deposit Insurance Corporation, many people were left with only the clothes on their backs. In the auto industry, new vehicle production was cut in half—from 5.3 million units in 1929 to just under 2.4 million in 1930. By the end of 1931, this number was cut in half again.

Cadillac took such a beating that General Motors considered dropping the line. Soon, about 80 percent of the car-building capacity was idle and 25 percent to 30 percent of auto dealers went out of business. General Motors, Ford and Chrysler held 90 percent of the automotive market in the U.S. The remaining 10 percent was shared between Hudson, Nash, Packard, Studebaker and Willy-Overland. No one had yet heard of names like Toyota, Honda or even Volkswagen. But things weren’t all bad. Despite the sharp decrease in new car production, advances were still made in vehicle technology and safety features including safety glass, windshield washers and sealed beam headlamps. All were meant to either help mitigate auto accidents or protect vehicle occupants in the event of a crash. In 1934, curved windshields

sey, one of the earliest associations of its kind, was founded. Auto body associations would grow for the next 40 years, when finally, they started having a more profound effect on the industry. Auto paint manufacturers began paint distribution through what traditionally had been auto parts jobbers. Eventually, the business grew to a point where carrying only paint and body shop supplies became a financially viable business. By the early 1940s, Paint Body and Equipment (PBE) jobbers began to emerge. Paint application technology was also advancing. It was during this period that DeVilbiss introduced the model MBC spray gun featuring an entire spray head assembly that can be removed from the gun body with one bolt. The high-volume, lowpressure spray gun was also invented—but it would be 60 years

were introduced in limited numbers. But curved windshields and back glass would not be widely used until the mid-1950s. By this time, most car manufacturers utilized body-over-frame auto construction, a convention that would dominate the industry for almost 50 years when unibody construction became the norm. In the early 1930s, collision shops, as an industry, started to coalesce. Finally, there began a differentiation between mechanical repair shops and body and paint shops. Paint had been spray-able since 1926, and shop owners came to the realization that you could not get a decent paint job in a shop filled with dust and dirt. One of the earliest collision trade magazines, Auto Body Trimmer and Painter magazine, emerged. By 1939, the Auto Body Rebuilders Association of New Jer-

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before it would come into general use in the automotive refinish industry. The paint that was going into those guns was also changing. The 1930s saw the introduction of alkyd enamel, best known as DuPont’s Dulux and an acrylic lacquer, DuPont’s Lucite. Sikkens introduced AutoFlex paint and Rubbol A-Z, a synthetic lacquer. The earliest paint booths began to show up in the mid-1930s, consisting of three pre-fabricated walls, an open front and a fan on the back to eject fumes and overspray. In front of the fan was a crude filter made of burlap or some other fabric. This was the best painters had to date, but the system had a couple of problems; the burlap material clogged very quickly, so filters had to be changed several times a day and the filters were not fire-retardant. To make matters worse, the paint booth was usually a wooden structure. A build-up of paint and solvent on the cloth, coupled with a wooden booth led to several fires in which the paint booth and the shop burned to the ground. A better solution had to be found. The 1930s wore on and despite a deepening recession, State Farm

Insurance continued to grow, but certainly not at the rate it once had. The company had gone from selling 40,000 new policies per year to an average of a little more than 17,000. This bothered State Farm founder George Mecherle, but not as much as something else—rising loss costs. Since the inception of the company, Mecherle and his financial people had concentrated on sales dollars and the number of policies sold. Now, in the economic downturn and the overall lack of profits, they looked, for the first time, at loss costs. In his address to the State Farm employees at the State Farm annual meeting, Mecherle pointed out that cars were changing—They were being built for higher speeds, causing more accidents with a higher severity. He noted that new and different construction made repairs more expensive. The price of parts was increasing, along with labor costs. Company executives met to decide what to do about the situation. Their answer was to do a state-by-state analysis of each of their policy holders, noting premiums paid versus claims made and losses paid. What they discovered

was certain geographical areas had an inordinate amount of losses. It was decided that State Farm would no longer sell insurance in those areas. They also found a few agents selling insurance to people who were known to be bad risks. These agents were eliminated and insurance policies for high-risk policy holders were cancelled. Hereafter, company executives kept a close watch on losses. At the State Farm annual meeting held Feb. 21, 1939, Mecherle announced an ambitious plan called A Million Or More in ’44, meaning he intended to have 1 million auto insurance policies in force by 1944—a five-year plan. At the time, the auto policy count stood at 450,000—and it had taken 17 years to get there! It would take a lot of work and perseverance to meet the lofty goal. The home office began advertising like never before. Agents were supplied with printed materials, film strips and movies with projectors to tell the State Farm story. Field agents carried boatloads of promotional giveaways. Mecherle considered it only an acceleration of what the agents were al-

ready doing—but now they were in overdrive! At the same time, a “conservation department” was established, designed to reclaim policy holders who had cancelled their policy, or allowed it to lapse. This was the first time this was done by State Farm, and it was highly successful. State Farm also worked with lending institutions that were writing car loans. Innovative at the time, State Farm wrote a policy to coincide with the terms of the loan and made the lending institution the first payee in the event of loss. By 1942, more than 2,000 banks were cooperating with State Farm. To make the policy a little “sweeter,” State Farm started offering a medical rider, paying a maximum of $500 for medical, surgical or hospital expenses. Mecherle was determined to meet his goal, so he kept on pushing. In 1941, he had so much business that the home office had to add a night staff just to keep up. The growing collision repair business and Mecherle’s dreams all changed on the morning of Dec. 7, 1941.

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OE Shop Certification with Gary Ledoux

OE Shop Certification Programs: Assured Performance Network This month, we’re looking at the Assured Performance Certification Network, representing Ford, Nissan, FCA, Infiniti, Hyundai and Kia (Ford was handled in a previous profile.) For this interview we caught up with Scott Biggs, industry icon and CEO of Assured Performance.

Does your program have a specific name? When was it started?

The Assured Performance Certification Network was formed starting in 2003, and has since grown to include joint-effort collaboration with several OEMs. Now, Assured Performance Certified Repair Providers have the option of multiple OEM Certifications and Recognitions through one centralized and managed

program, saving redundancy and extraneous costs. The joint effort program includes the following OEMs:

1. “FCA Certification Collision Care” Program launched in 2012. 2. “Ford National Body Shop Network” Program launched in 2014.

3. “Nissan-Recognized Collision Care” Program launched 2012. In 2014, Assured Performance took over administration of the program.

4. “Infiniti-Recognized Collision Care” Program launched in 2012. In 2014, Assured Performance took over administration of the program.

5. “GT-R Certified Collision Repair Network” Program. Assured Performance took over administration of the program in 2017.

6. “Hyundai-Recognized Collision Care” Program launched in 2015

7. “Kia-Recognized Collision Care” 34

Program (most recent partnership) launched in October 2017.

Q: A:

What is the main purpose of the program?

To identify and officially certify and/or officially recognize collision repair providers that possess the proper tools, equipment, training and facilities required to properly repair automobiles to manufacturers’ specifications—ensuring the fit, finish, durability, value and safety of the vehicle and to assist consumers and insurers with locating and connecting with those Certified Repair Providers.

What are the program requirements?

There are 36 major requirements that shops must meet, and an additional eight if they wish to be aluminum-certified for the Ford program. Edited for brevity, here are some of the main requirements:

General Business Requirements: • Be in business for at least five years • Provide proof of Garage Keepers liability insurance • Provide a limited lifetime warranty on all work performed Customer Service Requirements: • Measure customer satisfaction through a third-party provider • Have a professional and wellmaintained customer reception, waiting and restroom area • Utilize a preferred rental car provider General Technical Repair Capability: • Meet I-CAR Gold Class or equivalent with proof of ongoing training • Subscribe to current OEM repair procedures and have the ability to provide documented proof of compliance • Utilize a frame rack or dedicated/universal fixture bench with ap-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

propriate vehicle anchoring and pulling capabilities • Utilize an electronic, three-dimensional vehicle measuring system Advanced Materials Repair Capabilities: • Must have a 220 volt, 3-phase Inverter STRW welder • Must have a 220 volt MIG/MAG welder • Must have a dent removal/pulling system for steel panels Aluminum requirements include but are not limited to: • Isolated aluminum work area • Tools designated for aluminum work only include all special tools, as specified by Ford Motor Company • 220 Pulse MIG welder specifically for use with aluminum • Utilize a special SPR rivet gun, as specified by Ford.

Q: A:

What are the program benefits?

The Assured Performance Network of dealer-owned and independent Certified Repair Providers benefits includes the following:

• Official certification and recognition by more than 63 percent of the OEMs under one program, including Ford, Nissan, Fiat, Dodge, Jeep, Chrysler, Lincoln, Infiniti, Hyundai, GT-R and Kia.

• Leverage the OEM brands: Use of the official OEM-certified signage, OEM logos and badges to promote and market the shop through use in marketing, advertising, social media, online and recruitment. • Listing on online shop locators and smart apps with appointment set-

ting. Certified shops are listed on multiple online shop locators with the exclusive ability to set appointments directly with a certified shop. These sites include the following:

♦ Consumer-Facing Certified Shop Locator ♦ autobodylocator.com ♦ Insurer-Facing Advanced Repair Capable Certified Shop Locator ♦ advancedrepaircapable.com ♦ OEM Branded Certified Shop Locators ♦ nissancertifiedshop.com ♦ fcacertifiedshop.com ♦ fordcertifiedshop.com ♦ hyundairecognizedshop.com ♦ infiniticertifiedshop.com ♦ crashrepairinfo.com ♦ mopar.com/collision

• Marketing and collateral materials provided by all of the OEMs to promote their official status with the OEMs.

• Multi-media in-shop system (eLOBBY) for consumer awareness and shop promotion, including lobby area electronic signage and

full-length videos as well as revolving OEM messaging. • ShopOps operational process management system that includes a full library of processes, procedures, checklists and job descriptions, a turnkey HR management system, KPI reporting, business development and planning tools, data management and safeguarding, customer relations management, training management and tracking.

• Electronic Quality Assurance Program (OE-QC) that enables the shop to efficiently document using OEM repair procedures and the adherence to a quality control checklist electronically, including the use of smart devices at the technician level. • On-demand, data-driven marketing for various OEMs, based upon the shops own historical customer base.

• Collision Care Marketing Tools: Access to a suite of Collision Care marketing materials to differentiate Certified Collision Repair Businesses

from local competition; includes press releases, eLOBBY, eLISTINGS and On Demand Marketing.

• OE Owner Referrals: OEM Direct Consumer Marketing, as OEMs send millions of consumers direct emails and letters throughout the years to their vehicle owners promoting the Certified-Recognized Collision Repair Programs

What shops are eligible?

Q: A:

Any dealer-owned, independently owned body shop or MSO that meets the certification’s combined requirements as published. Some OEMs have additional requirements, e.g. Ford Certification requires additional aluminum-specific [requirements].

• Manufacturer Collision Consumer Education: consumer education marketing and multi-media videos and commercials that highlight the importance of using OEM parts and a FordCertified Collision Repair location.

Must an independent shop be sponsored by a dealer? If so, has that caused any problems?

• OEM Repair Procedures: Various OEMs subsidize the cost of the subscription to their OEM repair procedures for the Certified Collision Repair Centers.

Q: A:

• Business Improvement: Turnkey system to assess and chart improvements and performance throughout the business. The system is supported by independent consultants to assist as desired, optionally.

There are requirements to have a dealer sponsor the shop for some of the OEMs, but dealers are NOT limited to how many and which of their body shop customers they can sponsor, eliminating the opportunity for unethical practices in pay-to-play and extorting for access.

Which OEs do you represent? Assured Performance is the partner and administrator for

See Assured Performance, Page 42

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Old School Know How

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

with Ed Attanasio

Teresa Aquila Just Won’t Quit... Ever! To say that Teresa Aquila takes life by the reins is the understatement of the century, because ever since she can remember, she’s been doing it all without slowing down.

chanic, shot as a reserve cop and marginalized by men in the automotive industry at every turn, but she keeps coming back with more fervor and determination than ever before. As a renowned mechanic, columnist, teacher and the producer of a popular auto repair radio show for women, not to mention a policewoman, Aquila isn’t afraid to take chances and follow her dreams. Her mechanical career has spanned more than four decades, working on everything from Porsches to heavy equipment, including her personal fleet of classic Teresa Aquila owns a fleet of 13 classic vehicles, all of vehicles—all of which she which she completely restored herself restored herself. Aquila’s weekly radio show, At age 63, Aquila doesn’t have a pause button—only forward, and “Teresa’s Garage Radio Show,” is that’s the way she prefers it. She has broadcast on 1180 AM KCKQ every been injured on the job as a me- Tuesday at 2 p.m. PST. Her show’s

Luther Hopkins Honda

tagline is “Empowering Women One Wheel at a Time,” dedicated to women who dare to be different and desire to become more knowledgeable of car care.

“We’ve presented topics like how to find a good body shop, the differences between aftermarket and OE parts, the telltale signs of a bad body shop, and recently we interviewed Rocco Avellini, the founder of Wreck Check Centers about how to avoid shoddy collision repairs,” she said. “The show’s overall theme is to educate women about cars and how to repair them, in order to protect them as consumers.” Aquila’s career in mechanical repair started right after high school graduaAquila recently celebrated her 41st year as a Washoe tion, she explained. County reserve sheriff “I got a job working on Aquila’s show deals primarily a fleet of ice cream trucks, and I with mechanical repair, but occa- learned a lot by observing their mesionally includes various topics that chanic,” she said. “He taught me are related to the collision repair in- about brakes, engines and carbureSee Teresa Aquila, Page 41 dustry.

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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@chasidyraesisk.com.

In-House Money Makers: ASA Partners With Bosch for 2nd Webinar in Series On Wednesday, Feb. 21, the Automotive Service Association (ASA) partnered with Bosch to present “In-House Money Makers,” the second webinar in its series about pre- and post-repair scans, at 1 p.m. EST. ASA Vice President Tony Molla welcomed attendees by mentioning the industry’s interest in pre- and postscans with modern vehicles. He introduced the presenters, Bosch Technical Trainer Duane “Doc” Watson and Bosch Technical Instructor Steve Zach, who addressed pre- and postrepair scanning in-house over the following hour. Expressing his hope that these webinars were useful, Watson encouraged participants to provide feedback before noting that the industry needs a powerful tool because the dash lights do not tell the complete story. “More systems are coming every year, and newer vehicles have up to

100 modules that need to communicate with each other to work properly. The pre- and post-scan procedures covered will help get a damaged vehicle back to its safe, pre-accident condition,” he said. Watson pointed out that many OEMs require, or at least recommend, pre- and post-repair scans. When answering when a scan tool is required, he admitted that it’s not a simple answer because it’s based on the age of the vehicle, options available and both the type and extent of damage. For example, Fiat listed conditions that could trigger DTCs prior to or during repairs, leading to improper vehicle performance. While there is not yet an industry standard for receiving payment for scans, shops get paid for approximately 70 percent of scans. However, Watson noted that having a printed scan report is vital to getting paid, ne-

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gotiations may be necessary with some insurers and rates can vary. It’s important to know what OEMs recommend. The equipment and training required include a quality scan tool, a battery maintainer or high-end battery jump box and copies of OEM position statements. Bosch supports scanning to identify DTCs in alignment with OEM position statements, and the company offers two scan tools: the Encore and the Evolve. Watson stressed, “It’s more than just buying a scan tool. There’s test prep to follow for the best results. The battery must have 12.6 volts, or you can get an inaccurate test. Use a fully charged battery booster or maintainer, but don’t use a battery charge because this can cause erroneous codes and is a poor choice when diagnosing.” Providing a demonstration of the Encore, Watson explained that it begins by connecting the cable to the Vehicle

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Data Link connector and turning the key to the start position without starting the car. Then, users would set up their scan report by scrolling to the bottom of report options where they can alter settings, such as removing uncommunicative systems, prompting for extra fields, and include shop information. When it comes to vehicle entry, auto ID works with most 2006 and newer vehicles, or users can choose Manual Entry to select a vehicle by answering a series of questions, such as year, make and model, in order to show all modules on the vehicles that are available for diagnostics. Watson instructed attendees to touch ECM/PCM and choose “All system DTCs” to check all modules. All DTCs found on each module will be listed, and touching “code assist” under the DTCs will provide suggested repair information, also alSee ASA Partners, Page 47

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Continued from Page 38

Teresa Aquila

tors, and later how to prep and paint a car. It gave me a good start in the industry, but after that it was a battle, because no one wanted to work with a woman.” Today, there is the “Me Too” movement, but back when Aquila was working in the automotive repair industry, there seemed to be an “Anybody But You” movement. Her career as a mechanic taught her a lot of valuable lessons, and the main one was “Never quit...ever!” “I worked for 10 years at a place where I was the only female mechanic and the guys never accepted me,” Aquila said. “They sabotaged my work or gave me ridiculous jobs to do that were demeaning. When they saw that I wasn’t going to quit, they threw all of my tools on the roof and told me that I was taking money out of a man’s pocket.” Now celebrating her 41st year as a Washoe County reserve sheriff, Aquila serves and protects the community without collecting a pay-

One particular day definitely tested Aquila’s passion for law enforcement—The day she almost lost her life. “I was at another call, when a report came over the radio that told me that a high-speed chase was coming my way,” she said. “Here comes a vehicle at 120 mph coming right at me. It swerved and missed me by 20 feet, and I can still see the driver with his window cracked and a gun in his right hand. He smiled at me like he was saying ‘You’re dead,’ and then I heard a loud crack. I thought I had blown a tire, but then there was blood everywhere.” Still in pursuit, Aquila “Teresa’s Garage Radio Show” is broadcast on 1180 AM became faint and had to pull KCKQ every Tuesday at 2 p.m. PST over after traveling about hours weekly now. I receive the same eight miles. The chase eventually training and was promoted to lieu- ended when the perpetrator committenant 10 years ago. I’m involved in ted suicide, and later it was discovneighborhood watch efforts, coordi- ered that he was wanted on murder nate high-profile events, do public and drug charges. “I was lucky, because when he speaking and meet with the community to hear their concerns. It’s a shot at me, the bullet went through both of our car doors before going great job and I love it!”

check. It’s an arrangement she is happy with, because it allows her to dictate her schedule and participate in a lot of programs that are dear to her heart. “When I first started, I got the graveyard shift and realized I could not do this,” she said. “So I retained my reserve status and work 30–40

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through my leg. Six months later, I was back on the job. People thought I was going to quit, but I’m in it for the long run,” she said. When she isn’t chasing bad guys or producing her radio show, Aquila is writing a book about her life and maintaining her fleet of 13 classic vehicles. “I love all of my cars, but I do have a special place in my heart for my 1954 Chevy Bel-Air, because I did all of the bodywork on that one myself. Every one of my vehicles is drivable and I still have [my] very first car—a 1963 Chevy Impala that I bought when I was 18,” she said. Even though her career as a mechanic hit its share of speed bumps along the way, Aquila still believes that women belong in the automotive repair industry. “I tell young women all the time that it’s still a male-dominated business, but if you stay focused and put your best foot forward in anything you do, you will be successful,” she said. “Don’t ever let anyone dissuade you on your journey, because we’re all on the same road—even though we’re in different cars.”

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Continued from Page 35

Assured Performance

Nissan, FCA, Hyundai, Infiniti, Ford and Kia.

What is the fee for the program? Does the program run on an annual basis?

$2,950 per year is the base certification fee for independent shops, plus various optional marketing and signage fees specifically for each OE certification-recognition the collision repairer elects to enroll in. All programs combined are approximately $6,300 annually total, but there is no cost for the ShopOps or Quality Assurance systems. This total cost represents less than 40 percent of the full overall costs of all of the programs. The shop’s annual fees are subsidized by the participating OEM by as much as 60 percent. Yes, the program runs on an annual basis.

tions?

Do you inspect every shop and if so, who does the inspec-

Yes, every collision repairer is inspected and audited onsite on an annual basis. The results are documented, electronically published and posted online for additional internal auditors to review and approve. Assured Performance maintains a national network of onsite inspectors/ auditors that use smart apps with GPS location tracking to ensure integrity.

Is there an optimum number of shops you want to have and if so, how close are you to reaching that number?

Yes, our overall objective is to maintain 100 percent demographic and geographic coverage of all urban, rural and suburban market areas and have adequate coverage to meet the repair needs for all units in operations for all of the brands represented. This requires approximately 3,000–3,600 certified repair providers across North America.

Q: 42

Have you had any shops drop out and if so, why?

So far, only about 2/3 of all of the shops that apply are able to eventually become certified and remain in the program. The annual renewal rate is nearly 90 percent because most of the collision repairers have continued in the program, unless they sell out to a consolidator or go out of business.

What has been the biggest challenge in establishing the network?

Our initial challenge was getting the industry to understand its value and importance. However, once we established a national footprint of well over 1,000 shops, the momentum changed. Getting to 3,000 is now a matter of shops re-investing to improve their business. While approximately 10–15 percent of the industry is well on its way to becoming OEM- certified (3,500 to 5,000 shops), the rest remain fixed on the past. Many collision repairers claim they have a great reputation in their market and generate plenty of work without the cost of compliance and certification credentials. There are also many shops that elect to operate outside of the mainstream and don’t feel they’re part of the equation. A massive percentage of the market focuses on cosmetic repairs and/or low-cost, consumer-paid repairs and wrongly assume they don’t have to have the OEM-required tools, equipment and training to still be able to repair the next generation of vehicles.

Q: A:

What is you biggest challenge in maintaining the network?

The biggest challenge in maintaining the network is keeping all of the moving parts focused on the big picture and overall vision of a “proper and safe repair while consumers receive an exceptional treatment.” There are always people popping up with a new idea and metoo program that look shiny and exciting that can distract the market. With any program, there is always the challenge of keeping the shop engaged and using certification correctly to differentiate them and have them stand out from the non-certified shops in their market. We have continuously added more OEMs and

APRIL 2018 AUTOBODY NEWS / autobodynews.com

more value to the program to ensure that the shops see and gain value. Our overall objective is to ensure our network is filled with best-inclass businesses performing at their peak potential. To achieve that, we have to invest several million into the IT and innovation with new tools for quality assurance, business improvement, consumer awareness, marketing, human resource management, customer service and data integrity. Certified Collision Care Providers are extraordinary and not the same as body shops. They need to look and operate differently by using the tools that are available to them to improve their business model.

Based on the recent John Eagle decision, will you make any changes to your program?

We have already made the changes by introducing an OE-QC Quality Assurance program to enable shops to properly and adequately electronically document their use of OEM repair procedures and help manage their technicians’ compliance to quality for 100 per-

cent of their repairs. This is far superior to the spot check approach. NOTE: We are the only organization or certification program from any OEM with this tool, and it is offered at no charge to our Certified Repair Providers as an integral part of their certification.

What do you see for the future of OE certification programs?

The future of the OEM certification programs will be stronger, and more than ever, the backbone to ensuring vehicles are properly repaired to protect the consumers. With vehicles becoming more advanced in material and technology, coupled with the introduction of telematics, the OEM is going to be playing a bigger role in the collision business. Eventually, consumers will demand that their new generation vehicle only be repaired by a shop that is certified to repair their specific vehicle.

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Historical Snapshot with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, 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.

OEM Info Websites Have Existed for 15 Years 20 Years Ago in the Collision Repair Industry (April 1998) Roger Wright of Integon Insurance agreed that the existence of nonOEM parts may have resulted in higher prices for some OEM parts for which there is no non-OEM version. “That’s why moldings are $200,” Wright said. “It’s interesting: When you look at the gross parts dollars combined [for OEM, non-OEM and salvage], it’s still about the same part of the estimate as it was before nonOEM and salvage parts were used extensively. But what if we say, ‘Okay, let’s not use non-OEM; let’s just use OEM.’ What’s going to happen to parts pricing then? We’re just scared of that as an industry.”

In 1998, Roger Wright said insurers recognize that non-OEM parts help hold prices of some OEM parts in check while resulting in higher prices for parts without a non-OEM alternative

He said insurers do have some other leverage regarding parts pricing by informing vehicle manufacturers how the choices they make affect insurance premiums for a particular vehicle. He said insurers contacted one manufacturer about higher claims cost for vehicles that didn’t have break-away mirrors. “We said if you want to continue to have this as an insurable vehicle, you have to put the break-away mirrors on, and they did,” Wright said. “Can we do the same thing if they start raising the price of parts? Can we make the car uninsurable from a customer stand-point? Yes. So there is a little leverage there.” – As reported in The Golden Eagle. Wright was speaking during a panel discussion regarding nonOEM parts during an Automotive 44

Service Association annual meeting. Wright later worked for other insurers (including AIG) and collision repair chains (CARSTAR and Sterling Auto Body) before forming Vector Squared, an independent consulting firm, in 2014.

15 Years Ago in the Collision Repair Industry (April 2003) Accessibility to OEM repair information continued to be a topic of discussion within the industry and at the Collision Industry Conference (CIC) in Phoenix in April. In a presentation for the CIC “OEM Committee” on how Ford Motor Company takes collision repairs into account when designing vehicles, Steve Nantau, collision repair supervisor for the automaker, said his company now has repair manuals available for many of its models and expects to have manuals for all models by the end of this year. Bill Haas of the Automotive Service Association pointed out that 22 automakers currently have service and repair information available to shops via website. Subscriptions for access average about $20 a day and offer shops immediate access to the specific information they need. He cited an example of a shop that had replaced a door on a 2002 Nissan Altima but couldn’t get the power window to open or close completely. “There’s a relearn procedure that’s necessary for the power window,” Haas said. “That procedure is available on the Nissan website. So the technician was able to access that service information immediately, go back to the vehicle, perform the relearn procedure and make that car deliverable.” – As reported in Autobody News. Nantau retired from Ford, and Haas is now an independent consultant and trainer. Links to OEM information websites for more than three dozen automakers can be accessed via www.OEM1stop.com. 10 Years Ago in the Collision Repair Industry (April 2008)

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Mitchell International and CCC Information Systems say they will continue to operate independently for the next 2–6 months until the merger the two companies have announced is approved by regulators and final-

In 2003, Steve Nantau said Ford Motor Company was expanding the amount of collision repair manuals it was making available to the industry

ized later this year. At that time, CCC’s CEO Githesh Ramamurthy will become CEO of the new “CCCMitchell, Inc.,” and current Mitchell

CEO Alex Sun will become president of the new company. Termed a merger-of-equals, its new board will have equal representation from each of the two private equity firms that currently back CCC and Mitchell. Longer-range plans reportedly being discussed within the companies include creation of a new common electronic estimating platform that will use Mitchell’s database. One side note to the CCCMitchell announcement: Sources say that just such a merger was something Tony Aquila unsuccessfully worked to make happen while chief operating officer at Mitchell in 2003– 04. After leaving Mitchell, Aquila founded Solera, now the parent company of Audatex, which now must compete against the merged CCCMitchell. See OEM Info Websites, Page 47

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Tips for Busy Body Shops with Stacey Phillips

Stacey Phillips is a 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.

Emotional Intelligence Is a Key Element for a Successfully Run Body Shop Whether a body shop is looking to success is emotional intelligence.” ence in life,” she said. increase productivity, enhance team Marino explained that this is reIn a worldwide study of what performance or foster better leaders, ferred to as a person’s “EQ.” companies look for in hiring employAdrianna Marino said emotional Throughout her decade of expe- ees, Marino said 67 percent of the intelligence can help achieve such rience studying emotional intelli- most desired attributes were found to business goals and be a key factor in gence, which includes a certificate in be EQ competencies. running a successful company. The North American sales train“The link between EQ and earnings is so ing leader at AkzoNobel spoke to a direct that every point increase in emotional group of body shop owners and manintelligence adds $1,300 to an annual salary,” agers about the benefits of emotional intelligence during an AkzoNobel — Adrianna Marino Acoat Selected performance group meeting in San Diego, CA. EQ, Marino said she has found that a By being aware of emotional in“Emotional intelligence is a way better understanding of a person’s telligence, Marino said employees of recognizing, understanding and emotional intelligence has numerous will increase the likelihood of improvchoosing how we think, feel and act,” benefits for the workplace. These in- ing their communication and problemsaid Marino. “It shapes our under- clude enhanced employer/employee solving skills, decision-making skills, standing of ourselves and interactions relations, an improvement in company leadership, sales skills, teamwork and with others.” culture and a decrease in employee team performance. Someone who has low emotional turnover, burnout and absenteeism. “Productivity improves, as well intelligence may feel misunderstood Marino has found that most peo- as relationship satisfaction, customer and unappreciated, blame others for ple aren’t comfortable talking about service, conflict management and their problems and is subject to emo- their feelings. overall effectiveness,” she said. tional outbursts and moodi“All human beings, reness. In contrast, Marino gardless of gender, have said those with high emofeelings and emotions they tional intelligence learn and bring to the workplace,” she adapt to audiences and situsaid. “We don’t work with ations, assume responsibility robots and machines every and take control of their perday. We work with human formance and productivity. beings. Whether we like it Adrianna Marino, North American During her presentaor not, we have to talk about tion, “Applying Emotional sales training leader feelings and emotions.” at AkzoNobel Intelligence for Personal She said the key word is and Professional Success,” Marino “choosing.” explained to attendees how emo“We get to choose our thoughts, tional intelligence can shape interac- behaviors and feelings every day,” she tions with others, define how people added. “We’ve all heard the adage: learn, help set priorities and deter- “Leave your stuff at the door when you mine the majority of a person’s daily walk in. Well, it’s not possible. The actions. good news is you can learn how to maShe shared information from Dr. neuver that. That's what emotional inMichael Rock, a specialist in this telligence is going to teach you.” area, who designed and taught “EQ Numerous studies have shown and the New Workplace.” that managing emotions is something “People typically attribute the that can be learned and directly influlion’s share of their success person- ences a person’s professional and perally and professionally to their men- sonal success. tal intelligence or IQ,” said Rock. Marino cited a study from UC “Research in psychology and human Berkley PhDs that showed EQ was performance over the last 20 years in- four times more powerful than IQ in dicates that mental intelligence does predicting who achieved success in contribute to success, but the far their field. more significant intelligence that ac“It may be responsible for up to counts for personal and professional 80 percent of the success we experi-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

In 2016, entrepreneur.com stated that people with a high EQ make more money—on average $29,000 more per year than those with a low EQ. “The link between EQ and earnings is so direct that every point increase in emotional intelligence adds $1,300 to an annual salary,” said Marino. “These findings hold true across all industries, in all levels, in every region of the world.” Marino outlined the four areas of emotional intelligence: self-recognition, self-management, social management and social recognition. She then shared tips on how to incorporate these competencies into a person’s personal and professional life. Self-Recognition: Self-recognition involves self-awareness and understanding, personal acceptance and an overall understanding See Emotional Intelligence, Page 51

Continued from Page 40

ASA Partners

lowing users to access Direct Hit, Google, Mitchell or AllData for additional information based on the program with which they have an account. The DTC scan can also be emailed or printed through the share option—Both actions require set-up when used for the first time. The scan can also be saved to the scan tool itself, using the save function. In order to clear DTCs, users can touch “clear codes.” Watson recommends choosing “clear and reread,” which involves cycling the key off and on in order for the Encore to rerun the DTC test, but he warned that it may be necessary to manually clear specific modules. After hooking the tool to the battery and selecting “test,” users can “select vehicle” in the lower lefthand corner of the screen, start Auto ID, and follow the prompts to allow the scan tool to communicate with all of the vehicle’s modules. The time it takes to pre- or post-scan depends on the number of modules and

the scan tool processor speed. Watson reiterated, “After selecting the green arrow on the right for a complete report, users can save the report or select ‘Share’ to email or print it. It’s also possible to link to additional resources for information about codes and how to correct issues.” Back on the list of modules, choose the correct module and data stream, and select “All data items” to test. Users can review saved reports by scrolling to the left on the next page and choosing “View saved scans,” which allows them to select a report from a list. The saved reports also indicate if it was a pre- or post-scan, the time and date, the repair order number, the VIN and the mileage. As the webinar concluded, Watson and Zach fielded questions from attendees and announced that they will demonstrate the Evolve scan tool in their next webinar. The third webinar in this series is titled “The Right Scan, the Right Way: Key Scan Tool Procedures for Collision and Mechanical Repair” and will be presented on Wednesday, March 21. For more information on ASA, visit www.ASAShop.org.

Continued from Page 44

OEM Info Websites

– As reported in CRASH Network (www.CrashNetwork.com), April 14, 2008. A year later, the two companies cancelled the planned merger after the Federal Trade Commission (FTC) moved to block it; the FTC said it had an “impressive body of evidence…demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers.” Ramamurthy, Sun and Aquila remain in their positions at CCC, Mitchell and Solera Holdings, respectively. 5 Years Ago in the Collision Repair Industry (April 2013) Because Arizona shop owner Dan Hunsaker had spoken negatively at several industry meetings about his experience with PartsTrader, he was asked why he stays on the State Farm program. “At this juncture, I don’t see the benefit of being a sacrificial lamb,

and then having them six months from now say, ‘You know, this isn’t working; we’re not going to continue with it,’” Hunsaker said. “I’m taking a wait-and-see attitude. If this thing goes national, then I’ll sit down and pencil it out, and I will make a very informed business decision.” Perhaps of more interest to shops often afraid to speak out negatively about an insurer’s mandate, Hunsaker was asked if his company had experienced any blow-back from State Farm because of his outspokenness about PartsTrader. “State Farm is entitled to their opinions, and the collision industry is, too,” Hunsaker said. “No, I’ve haven’t had any repercussions yet. Would I be surprised if it happened? After 40 years in this industry, no, I wouldn’t be surprised. So far I’m saying what I think and I share all this with State Farm, too. I’m very clear with them about how I feel.” – As reported in CRASH Network (www.CrashNetwork.com), April 1, 2013. Five years later, Hunsaker’s shop remains on the State Farm “Select Service” program.

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Continued from Cover

Legal Battle

So how does a non-OEM parts lawsuit started back in the 1990s still remain embroiled in the judicial system? Back in 1999, a jury in the original Avery lawsuit found that the non-OEM parts installed on the drivers’ vehicles as part of their State Farm claim were inferior to OEM, and thus the insurer breached its contract to return those cars to “pre-loss condition.” It also found that State Farm had defrauded consumers by concealing known problems with the parts. The $1.2 billion judgment against State Farm was, at the time, one of the largest judgments ever levied against an insurer. The ruling changed the way many insurance companies dealt with non-OEM parts for years, and even today is seen as the basis for State Farm’s limited use of such parts. In 2001, in response to an appeal by State Farm, an appellate court affirmed the decision but lowered the damage award to $1.05 billion. State Farm then filed an appeal with the Illinois Supreme Court. In 2004, Judge Karmeier was elected to his first 10-year term on the Illinois Supreme Court. At that time, lawyers for the plaintiffs in the Avery case sought to have Karmeier recuse himself from participating in the Avery decision because they claimed his election campaign had received significant campaign contributions from State Farm. But Karmeier did not recuse himself. The next year, four of the six Justices on the Court—including Karmeier—voted to overturn the Avery ruling. The court ruled that the case should not have been approved as a national class action because State Farm uses different policy language in different states, and even within the same state. The Court found no breach of contract under any of the three different policy wordings related to the use of parts. It ruled that the plaintiffs in the case failed to demonstrate damages. Additionally, the court pointed out that the plaintiffs did not contend that non-OEM parts are defective—only that they are not all as good as OEM parts. The decision emboldened insur48

ers, some of which had curtailed calling for the use of non-OEM parts for some years after the 1999 Avery judgment, to return to pushing shops to use the parts. New findings, new lawsuit However, in 2011, lawyers for the plaintiffs in the Avery case filed a lawsuit claiming they had new evidence of State Farm’s involvement in the recruitment of Karmeier as a candidate and in financing the campaign that led to his election to the Illinois Supreme Court. That campaign shattered state and national spending records for a judicial seat, with the two candidates spending more than $9 million combined. The current lawsuit argues that State Farm “delivered ‘tremendous’ financial support (at least $2.5 million and as much as $4 million) to Justice Karmeier’s campaign.” The plaintiffs’ attorneys argue, for example, that State Farm attorney and lobbyist William Shepherd was on the executive committee of the Illinois Civil Justice League (ICJL), which recruited and endorsed Karmeier as a candidate for the seat on the court, and was involved with weekly conference calls with Karmeier’s campaign manager (the head of the ICJL). The money trail described in the court filings is a bit convoluted, indicating that the contributions largely came through intermediary organizations being influenced by State Farm. The ICJL, for example, through its political action committee made $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, the lawsuit argues, State Farm CEO Ed Rust was part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated more than $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign. Attorneys say the new evidence should lead the court to reinstate the judgment against State Farm, or alternatively reconsider the case without Karmeier’s involvement. (Justice Karmeier in 2014 was narrowly reelected by Illinois voters to a second 10-year term on the state’s highest

APRIL 2018 AUTOBODY NEWS / autobodynews.com

court, and in 2016, he was unanimously elected by his fellow justices to serve as the chief justice on the court.) State Farm has argued that overturning the Avery ruling would be “disruptive in the extreme” to the Illinois legal system because the ruling has been cited in more than 200 subsequent court opinions. The insurer argues the contributions to Karmeier’s campaign from State Farm employees and others connected with the insurer were “quite modest,” by their estimate about $350,000. And it says the notion of “State Farm-influenced contributions” relies on an unsubstantiated argument that the insurer controls such organizations as the U.S. Chamber and the ICJL. State Farm had asked Judge Herndon for summary judgment in the suit, essentially dismissing it based on a lack of basis for it to move forward. But Herndon in February declined State Farm’s request. Herndon wrote that State Farm couldn’t demonstrate that any issues in the current suit were identical to the issues decided by final judgment in the Avery lawsuit.

“As the parties are well aware, Avery was about State Farm’s failure to equip its insureds’ vehicles with proper replacement parts, and this case is about State Farm’s alleged conduct in secretly recruiting Judge Karmeier, covertly funneling millions of dollars to support Judge Karmeier’s campaign and concealing and misrepresenting the degree and nature of its support of Justice Karmeier,” Herndon wrote. “Simply, [State Farm’s] actions in the two cases are entirely different and do not seek redress from the same wrong.”

The legal battle that began over nonOEM parts back in 1997 has still not seen its final chapter.

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Industry Training with Stacey Phillips

I-CAR CEO, President Says Industry Is Embracing Training, More Stepping Up Needed More than half of all the collision repair professionals in the industry are likely not participating in training, according to John Van Alstyne, CEO and president of I-CAR. At the end of 2017, there were an estimated 33,500 total body shops in the United States.

“About 14,000 of those shops are doing some level of training, which we equate to 42 percent of the industry,” said Van Alystne. “The remaining 58 percent are likely not training at all.” He said the good news is that the numbers are getting better. There were 2,000 more shops training with I-CAR in 2017, which was up 25 percent from the previous year. There was also a 27 percent increase in Gold Class shops, bringing that number to 5,570 nationwide. The Gold Class recognition is the highest rolerelevant training achievement recognized by the industry. “As an industry, we’re stepping up,” said Van Alstyne during a presentation he gave highlighting ICAR’s initiatives during the January CIC conference in Palm Springs, CA. “But more stepping up is required.” In response, the Inter-Industry Conference on Auto Collision Repair, commonly known as I-CAR, is dedicated to providing the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer. “We take that seriously and it shapes our work,” said Van Alstyne. “One industry—one goal. That statement sums up what I-CAR is all about and it’s really about performing complete, safe, quality repairs. That’s the sole focus of what we do.” Established in 1979, the international not-for-profit organization represents the six segments of the 50

collision repair industry it serves: collision repair; insurers; original equipment manufacturers (OEMs); education, training and research; tools, equipment and supply; and other related industry services. In addition to providing training in the United States, I-CAR training is licensed for distribution in Canada, Australia and New Zealand. Looking back about six years ago, there were three key phases of I-CAR’s strategy. First, the organization set out to improve everything it does regarding its products, services and operations. The second phase was a focus on growth by serving the industry and the third was being relevant and responding to the needs of the industry.

those that are vehicle/technical-specific are all currently being offered. Nine new courses were launched in 2017, including “Using Vehicle Maker Repair Procedures.” “That course should be taken by everybody in the industry because it explains how to utilize best practices on OEM procedures,” said Van Alstyne. Fourteen new courses in electrical/diagnostics were introduced as well as two new hands-on courses in skills training: plastic repair and squeeze-type resistance spot welding. Van Alstyne shared information about I-CAR’s focus for 2018, which was determined with the assistance of I-CAR’s Industry Segment Advisory Councils (ISAC). The first ISAC for education was set up in 2011 to facilitate independent industry feedback and help provide direction to the organization’s strategy and future program enhancements. Van Alstyne said the initiatives are indicative of some of the benefits I-CAR delivers to the industry. This includes making sure I-CAR’s leadership team (l to r) Nick Notte, senior vice vehicles are repaired proppresident – sales and marketing; Ann Gonzalez, vice president – strategic development; John Van Alstyne, erly, reducing liability and CEO and president; and Elise Quadrozzi, vice president increasing brand loyalty. – education and technical services “I think it also contributes “Back at that time, we weren’t to talent attraction and retention,” he talking about technology,” explained said. “Shops that invest in their emVan Alstyne. ployees attract and retain talent.” Now, he said the industry is experiencing a “Technical Tsunami™” I-CAR’s 2018 Initiatives: where vehicle technology is changing rapidly, and shops are seeing an In-Shop Knowledge Assessments™ increasing number of cars coming in Launched in 2017, I-CAR’s In-Shop that are complex and costly to repair. Knowledge Assessments™ entail Over the last several years, I- going into body shops and conductCAR has focused on three key pro- ing face-to-face interviews with techgrams to help meet these issues: core nicians to assess whether or not their foundational training programs, weld- knowledge meets ProLevel® 1 staning programs and contract training, dards. If successful, they qualify for which encompasses custom training credit. If they don’t possess that solutions. knowledge, Van Alstyne said they are “We’ve listened to the needs of going to learn what gaps they have. the industry and responded with what “This is a major innovation for they asked us to do,” said Van Al- I-CAR and highly valuable for the styne. Classes such as industry basics, industry,” he said. hands-on skills development and Not only does this procedure

APRIL 2018 AUTOBODY NEWS / autobodynews.com

eliminate redundant training, but it also helps shops with time efficiency. I-CAR has found that, on average, the shops that participate in these assessments achieve Gold Class status in approximately one-quarter of the time.

Update to Entire Core Curriculum During the last two years, I-CAR has worked on updating its core curriculum. It is expected to be complete by 2019. Van Alstyne explained that courses, which are referred to as “Purpose-Built,” are no longer three hours long. Instead, the type of courses now offered dictate their format, whether that’s live, online or virtual. “In general, courses are going to be shorter,” he said. “We want them to be succinct and deliver value.” In addition, all core foundation courses will be offered in Spanish by 2019. See Embracing Training, Page 52

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Continued from Page 46

Emotional Intelligence

of personal psychology. Marino said it is foundational to social awareness and self-management. Some of the measures include learning styles, strengths and weaknesses, self-esteem and temperament. 5 ways to build self-recognition: 1. Accept emotions without judgment. 2. Self-monitor; take time to reflect and review. 3. Accept advice without becoming defensive. 4. Analyze strengths and weaknesses fairly with an eye toward growth. 5. Create realistic personal expectations. Social Recognition: Social recognition reflects awareness and consideration of the feelings and responses of others. Marino explained that it’s the ability to empathize and maintain sensitivity to the moods and emotions of others, which allows for superior intuition and connection.

These include factors such as empathy/understanding, service, listening, rapport and adding value. 5 ways to build social recognition: 1. Actively look for opportunities to help others. 2. Actively listen; pay attention. 3. Take in feedback and critiques from others. 4. Follow through on promises and commitments. 5. Be positive and open when responding to new people and ideas. Self-Management: Self-management measures self-evaluation coupled with self-regulation. The awareness and discipline needed to control and harness feelings directly impact the ability to achieve personal objectives and develop an inner resolution, according to Marino. Satisfaction, happiness and contentment are results of self-management. Some of the factors might be restraint, discipline, flexibility and stress management. 5 ways to build self-management: 1. Set and monitor a specific course

and path for each day. 2. Act with focus and intensity. 3. Take time to evaluate and critique personal performance. 4. Avoid fatigue and burnout. 5. Remain accountable for your actions. Social Management: Social management includes interpersonal skills and focuses intelligence on generating results. Marino said that social intelligence fosters collaboration and connection. Some of the measures include encouragement, collaboration, conflict management and negotiation. 5 ways to build social management: 1. Take an active interest in others and their agendas. 2. Develop persuasion and rapport. 3. Be assertive, engaged, enthusiastic and involved with others. 4. Maintain poise and calmness. 5. Look for positive, constructive answers that help everyone improve.

When adopting emotional intelligence skills in a person’s day-to-day routine, Marino said a good reminder

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Audi Integrates Toll Payments Into Car

by Chuck Martin, MediaPost

Aside from all the announcements about autonomous driving tests and driverless ridesharing services coming down the road, some automakers are moving one small step at a time toward connecting cars for practical reasons for drivers.

Audi is a good example. The automaker just introduced a vehicle-integrated toll payment system on some models so that car owners don’t have to stick an additional device onto their windshields to pay for road tolls. The Integrated Toll Module (ITM) is a toll transponder built into the vehicle’s rearview mirror. The technology is compatible with existing tolling agencies nationwide, which can be linked with a driver’s new or current account, according to Audi. Continued from Cover

Uber Halts Car Testing

tonomous vehicles on public roads across Arizona, giving rides to a small number of customers. A safety operator sits in the driver’s seat of all of these vehicles. Uber said it has suspended its autonomous car operations in Phoenix, Pittsburgh, San Francisco and Toronto. Company chief executive Dara Khosrowshahi said on Twitter: “Some incredibly sad news out of Arizona. We’re thinking of the victim’s family as we work with local law enforcement to understand what happened.” The company began testing its autonomous vehicles on public roads in California in 2016. However, within hours of the trial commencing, the vehicles were caught running red lights. California then revoked Uber’s license to operate self-driving cars in the state, claiming it had not paid for the correct permit to test its vehicles. Uber moved its testing to Arizona, but soon after that, in March 52

Audi has been working on another down-to-earth innovation, connecting some of its cars with traffic lights. Audi created a feature called Traffic Light Information so that its cars can communicate with the traffic infrastructure in certain cities and metropolitan areas, which started testing in Las Vegas some time ago, detailed in a video from Audi. When a car comes near a traffic light, a dashboard display shows the time remaining until the traffic light turns green. The idea is that eventually traffic light systems and cars will be interconnected so that lights will be more reflective of traffic on any given road. Audi is not alone in the traffic light department, as General Motors has been testing receiving realtime information from specially equipped traffic lights in Michigan. While companies like Waymo, Apple, Uber and others go the longer ball of self-driving cars, some automakers are plodding along, introducing one practical connected feature after another. We thank MediaPost for reprint permission.

2017, one of its autonomous Volvos was knocked onto its side at an intersection. Although the car was driving itself at the time of the collision, it was ruled that a human-driven vehicle had failed to give way at a traffic signal, thus causing the crash. Tempe Police Department said: “On March 18, 2018 at approximately 10 p.m., Tempe PD responded to a traffic collision on Curry Road and Mill Avenue in Tempe, Arizona. The vehicle involved is one of Uber’s self-driving vehicles. It was in autonomous mode at the time of the collision, with a vehicle operator behind the wheel. The vehicle was traveling northbound just south of Curry Road when a female walking outside of the crosswalk crossed the road from west to east when she was struck by the Uber vehicle. The female was identified as 49-year-old Elaine Herzberg. Herzberg was transported to a local area hospital where she passed away from her injuries. Uber is assisting and this is still an active investigation.” We thank GearBrain for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Continued from Page 50

Embracing Training

Official Live Training Sites There are currently more than 260 training locations across the country, which include career and technical schools and other industry partner locations. Van Alstyne said these neutral fixed locations ensure consistency and effective course delivery as well as provide a better learning environment. New class scheduling is also being planned, similar to college scheduling where students will be able to view a listing of classes months in advance. “We want the industry to have visibility on class schedules, so they can plan their training rather than being reactive,” he said. Sustaining Partner Program I-CAR launched its Sustaining Partner program in January. The program provides the organization’s partners with access to information, course content and marketing opportunities. “Our sustaining partners contribute to funding and in exchange, they get access to our portfolio of

products and services,” said Van Alstyne. “This allows us to simplify and streamline our relationships with our partners.” Over time, Sustaining Partner program funding is expected to help reduce increasing education cost demands on the collision repair and education segments. I-CAR’s first Sustaining Partners include Chief Automotive Technologies, Car-O-Liner and CCC, which have been I-CAR Industry Training Alliance partners for years. New Learning Management System Another project that I-CAR has been working on is an overhaul of its learning management system. It will be piloted this year and is expected to be launched in 2019. Not only is it being designed to improve ICAR’s course delivery system, but Van Alstyne said it also will simplify training management, tracking and reporting and allow for an easier user experience. For more information about I-CAR and its programs, visit https://www .i-car.com/.

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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

When Was the Last Time You Updated Your Website? You maintain your vehicle on a regular basis to keep it running right and on the road. I’m sure we all have those friends who are constantly remodeling their houses and looking for that next project to work on, whether it’s building a deck or re-doing their kitchen. Changing and updating things is a part of life, so why haven’t you touched your shop’s website since 2008? A website with new content lives and grows on the Internet. Every up-

rithmic factors determined by the search engine company itself. Their rules change all the time, so that’s why you need a web wizard to navigate through what Google is doing today. For instance, there are several reasons why a site could be indexed, including incoming links, the number and type of subject keywords used and how frequently a site is updated. Every time you make a significant update to your website, the search engine notices it and rearranges your

date you make to your site enables your existing and potential customers, insurance partners and vendors to find you online more easily. On the other hand, a static website without updates is considered dead by every search engine out there, which means that it will eventually drop down the rankings and end up being buried behind your competitors’ sites over time. Search engines love fresh content and sources of new information for their search requests, so if you can create relevant high-quality content, you will be on page one before you can say “Google.” Because in the end, one of the main reasons why any shop should have an online presence is so that customers can find them easily via any web search. The more you consistently update your website with articles, downloads and new web pages, the more regularly a search engine will drop in to visit your website. When search engines look at your site recurrently, you have the opportunity to attain higher rankings based on the content you’ve provided. Search engines use web crawlers, also known as “Googlebots,” that are basically high-tech programs that scan the Internet at lightning-speed for websites. The web crawler will index a site based on a wide range of algo-

site’s ranking accordingly. So, if you want to increase the chances of your website moving up the ranks, updating your content often so that a search engine will reassess your position on its index is the best way to go. But please keep in mind, a gaggle of new content is not the solution here—quality is. So, yes, it is a smart idea to update often, but make certain to keep your content standards high. Too many shops blast their websites with an avalanche of lowquality articles stuffed with too many keywords. When the web crawlers notice it, they penalize your website and in many cases, knock you down a few spots as a result. By far, the most frequently used search engine is Google. As the king of all search engines, Google has tremendous influence on webmasters and how websites are constructed. Google expresses its love for websites that are updated frequently, so you should add fresh content to your website as often as you can. But also avoid making unnecessary changes to your site, because Google is a little smarter than that. Shops that have a strong online presence are usually updated at least two to three times a week, normally through a blog. The Googlebots that crawl the web are always watching and searching for

“The reasons for changing or updating a website are numerous, but the main one is that the site must have an overall look and feel that is contemporary,” — David Moore

APRIL 2018 AUTOBODY NEWS / autobodynews.com

web pages that are new or updated, and then add this fresh content to their Google index. If you update your content often with consistent and valuable information, you will have a better chance of Google ranking your site higher after each new update. It’s really not that difficult to add an article or a photo to your site to get noticed. The easiest and best way to stay fresh is to add a blog on your site and continue to add articles that will get noticed by your viewers. If they comment on those articles, it also counts as an update on your site. So, write something that will elicit some feedback from your customers and friends in order to gain some attention that will lead to frequent updates. David Moore, the CEO of Collision Websites, normally recommends completely updating a website

every 3–5 years depending on the initial quality of the site. “The reasons for changing or updating a website are numerous, but the main one is that the site must have an overall look and feel that is contemporary,” Moore said. “If it’s not mobile-ready, you’re running behind, so you need to change that immediately and if your site is using technology that isn’t supported by all browsers (e.g. Flash), you should update it right away as well. “If your site doesn’t have a clear call-to-action, it should be updated. Make sure that the ‘above the fold’ section is uncluttered and contains a clear and simple headline with your phone number [and] address in large bold letters. You have three seconds to capture people’s attention, so don’t confuse them and make sure that your navigation is simple and that everything is easy to find.”

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How Do the U.S., Canada Differ in Their Fight Against Insurance Fraud?

by Bethan Moorcraft, Insurance Business America

Fraudsters will always find a way to cheat the system. All lines of business are vulnerable to the crime, including insurance, and organizations worldwide face the sometimes cumbersome task of continuously fortifying their operations to keep the tricksters at bay. Some countries are more active in their response to insurance fraud than others, according to Dan Gumpright, product manager, Global Insurance Solutions, BAE Systems Applied Intelligence. The issue is “significant” across North America, but the response mechanisms differ between Canada and the U.S. “While Canada suffers similarly to the U.S., there are considerably more central initiatives to combat fraud, such as the data sharing model adopted by CANATICS, an antifraud consortium in Ontario, which is pooling data in a single system and detecting organized fraud across multiple insurance companies. The majority of insurance companies in the province have signed up for the service and are actively using it,”

Gumpright told Insurance Business. “British Columbian government-run auto insurer ICBC insures all vehicle owners in the province and has adopted the same technology to com-

iStock Photo

bat fraud. A recent PWC report indicated success in early detection of opportunistic fraud, which will lead to prevention over time in the case of ICBC, as consumers become aware of the detection models in place and the risk associated to defrauding their insurer.” U.S. insurance fraud solutions also differ dramatically from the models working in the UK, Gumpright added. While the concept of P&C insurance remains the same in both countries, the insurance models are significantly different, there-

fore prompting different types of fraud. “The UK purchasing model of car and home insurance in recent years has massively increased through aggregators or price comparison websites rather than direct, with fewer policies than ever before being written directly,” Gumpright explained. “In the U.S., however, much of business is still direct, with a large number of consumers still purchasing through the traditional broker model. While internal policy and claims management systems have advanced in the US, the route in for the customer is very different.” Some UK insurance lines, such as car insurance, are slightly more simplistic than the comparable offerings in the U.S., where coverage understanding is sometimes limited. Add to that significant differences on a state-by-state basis in the U.S., and the chances for fraudsters to slip through the cracks continue to grow. “The state of collaboration is another significant difference,” Gumpright added. “The UK’s data sharing model is significantly more advanced than most places in the world. For example, the UK market

MINNESOTA

has the Insurance Fraud Bureau (IFB), Insurance Fraud Register (IFR) and a dedicated insurance police task force, with almost all insurance companies collaborating to detect insurance fraud hitting the industry at large. “Collaboration is more complex in the U.S., often due to how states operate and their various rules. Datasharing capabilities exist, but they are significantly less advanced than that of the UK at this point in time. Indeed, some states in the U.S. don’t even count insurance fraud as a specific criminal offense yet.” We thank Insurance Business America for reprint permission.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Welcoming the Next Generation of Collision Repair Job titles matter to millennials, but in a different way than typically understood. A lot has been made of Over my 30 years in the automotive the millennial tendency to change industry, I’ve seen a number of gen- jobs. Certainly, evidence indicates erations enter the workforce. Each millennials don’t see themselves as wave arrives with its own expecta- long-term in any role. Increasing an tions and work habits. Our industry employee’s ability to move —uptoday is the result of adaptation made ward or laterally—is reason to conwith each new generation. Sure, it’s sider introducing intermediate titles the responsibility of any newcomer to an operation, and backing them up to learn and support the longstanding with added responsibility. Keeping values of a new environment. But it’s employees feeling valued and enalso important to embrace the new gaged transcends generational differideas and fresh perspectives that ences. Studies have widely shown that milcome with new talent. With college debt at record levels lennials are constantly on the lookout for their next job. This and tuition growing higher should be motivation for each year, many young peoemployers to ensure they are ple are choosing to explore offering competitive pay, exblue-collar career options. perience and opportunity. As Blue-collar fields often pay any collision repair shop better and are less saturated owner knows, finding and than the roles typically marretaining employees who keted to high school stuMike Lanza perform with excellence, are dents. Compensation has grown as a reliable and trainable, and bring a concept over the years. No longer is high-level skill set is a difficult chalit just about pay—Compensation lenge. That’s why capitalizing on milstrategies today center on creatively lennials entering the workforce is developing talent and motivating in- such a strong opportunity for a shop dividuals for results. As employers, willing to make the right cultural adwe have a valuable advantage for justments. right-sizing our cultures for millennials: Thanks to numerous studies and Considering Compensation a large volume of research, we know Compensation has grown as a cona great deal about what millennials cept over the years. No longer is it want and expect out of the workplace. just about pay; it’s about creatively developing talent and motivating inHere are a few insights based on re- dividuals for results. To create and porting from Millennial Mindset: implement innovative and balanced benefit and compensation design— with an eye toward retaining talent Shop Culture Though flexible work schedules are and maximizing productivity—takes most important to millennials, most a carefully considered strategy. Ideindicate they prefer working in an of- ally, each element of the incentive fice environment, as opposed to from plan drives business goals of customer satisfaction, revenue and profhome. An overwhelming majority, 98 itability. percent, say a company’s vision and values are important to consider when For a compensation strategy to work, choosing an employer. They need to four elements must be in place: feel like what they do and who they • Fit the financial reality of the work for matter beyond a paycheck. by Mike Lanza, Sherwin-Williams Automotive Finishes Business Consulting Manager

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business

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Inspire and reward teamwork

• Provide a clear picture for individual opportunity

Instead of making the common mistake of overpaying employees and hoping they stay, developing a career path that rewards employees for their contributions while protecting the margin is the key to sustainable results. Transparent, easily understandable and simple goals are critical for employee productivity and retention. This has been true for every generation. I’ve seen the SMART matrix work for countless organizations. Employees need to know what they are being measured on, what the measuring instrument looks like and how it is used, agree that their goals are attainable and—most importantly for millennials—understand

how it serves the organization’s strategy. Naturally, many millennials entering collision repair will be on the front lines, engaging directly with customers. Therefore, it’s critical that they not only are given the tools they need to provide outstanding customer experience, but are also rewarded for doing so. Importantly, rewarding employees does not have to be about cash. Millennials show a strong value for spending time with friends and family. This down time is equally—if not more—important than cash. It ultimately comes down to understanding what motivates the employee, and right-sizing bonus plans and incentives accordingly. By 2025, 75 percent of the workforce will be millennials. As millennials enter—and many more consider entering—the collision repair industry, we need to be doing what we can to ensure our industry is a rewarding career path for the best talent. That begins with understanding the employee.

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Michigan State, Texas A&M Studying Impact of Driverless Cars on Workforce

Continued from Page 4

Michigan State University is leading a study to better understand and measure the impact of driverless cars on the current transportation workforce. Texas A&M’s Transportation Institute will offer additional research and resources throughout the duration of the project, which was commissioned by the American Center for Mobility (ACM). The study will also consider the type of training necessary to prepare the future workforce to adapt to the effects of autonomous vehicles. “The adoption of connected and autonomous vehicles (CAVs) has the potential to lead to job impacts in the transportation and mobility sector and create a range of new labor opportunities in businesses that develop and implement innovative usage models for CAVs,” said Shelia Cotten, MSU Foundation professor and director of the Sparrow/MSU Center for Innovation and Research, in a statement. ACM—a nonprofit testing, education and product development facility based in Ypsilanti, Michi-

index for Honolulu, Hawaii is 181, meaning that it costs 181% of the national average to live in Honolulu. Based on the cost of living index alone, we might expect to see body labor rates in Honolulu in the $103 to $159 range (that is, $57 times 181%, and $88 times 181%). Yet the survey data for posted body labor rates in Honolulu is in the $55 to $75 range, below the national average, and far below the cost-of-living-adjusted rates. As you can see, labor rates there appear misaligned with that geography’s cost of living. 2) Consider general consumer price inflation. This is simply the overall increase in prices of typical household expenditures. Inflation also erodes the purchasing power of money, as your dollars don’t go as far as they used to. In the US, inflation is measured by the Consumer Price Index (CPI) and is often used for cost of living adjustments (COLA), such as social security benefits. Last year

by Michelai Graham, EdScoop

gan—says it is dedicated to automotive vehicle technology and accelerating the development of voluntary standards. The center provides “real-world environment testing,”

Getty Images

Soraya Kim, ACM’s chief innovation officer, told EdScoop. Michigan State is located not far from ACM, in East Lansing. TTI is supporting the study by supplying its expertise and research in truck platooning, which refers to the line of vehicles following each other closely and taking directions from a lead driver. AARP and Waymo are co-sponsoring the study with ACM. “Connected and automated technologies have the potential to create a safer and less stressful occupation

We thank EdScoop for reprint permission.

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for platooning truck drivers while creating opportunities to be involved with cutting-edge technologies that will change the way freight logistics will be delivered in the future,” said Christopher Poe, assistant director of connected and automated transportation strategy at the TTI, in a statement. The research, interviews and roundtable discussions will be conducted in Texas, California and Michigan from now until May. As ACM draws from the results, it will implement programs to deploy to the 15 universities involved in its education initiative. “Our goal is to ensure that employees, employers and policymakers are informed about the potential developments, so they can approach them proactively rather than reacting to issues as they arise,” Kim said in a statement. Results from the study will be shared this summer.

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Autonomous Vehicles Must Give Passengers Some Control following the rules of the road, and we are accountable for our actions Our team at Intel has been designing, while driving, including crashes and parking tickets. So with prototyping and testing new coming self-driving vehiexperiences passengers will cles, where many decisions have with autonomous veand operations will be hanhicles that handle all drivdled by an autonomous sysing tasks. tem, we will need to adopt We do this work to una different mindset. derstand what technical caWe’ll need to let go of pabilities will be required, Matt Yurdana being the driver, but we’ll and how best to optimize also need to be more engaged than those capabilities on our platforms. During our investigations, we simply being a passenger. In essence, heard peoples’ enthusiasm, concerns, when riding in an autonomous vehiquestions and expectations. One of cle, we’ll need to be a passenger with the most common responses from control. We’ve found that a need for our research is that potential users by Matt Yurdana, WardsAuto

Trust and safety will be established when passengers feel in control of where they’re going and what the vehicle is doing. — Matt Yurdana

want an autonomous vehicle that drives like they do. When asked to explain, they said they thought the vehicle should mimic the way they personally drove, including making decisions and following (or not following) traffic laws as they would. At first glance, this response seems strange in light of how people interact with other modes of transportation where they are passengers. In general, we don’t want taxis, buses, planes, trains and subways to drive the way we do. We may want to get to where we’re going faster, but we easily assume the role of a passenger in these contexts because it’s the only role we’ve known. We place our trust in the abilities of the driver, pilot or engineer and turn our attention to various activities, take a nap or simply look out the window. However, with cars, it’s different. For decades, we’ve been the drivers and trusted cars in the way we trust other tools—as reliable instruments that support our own abilities. This makes sense because we are the ones who are tested, licensed and insured. We are responsible for

control in autonomous vehicles has surfaced again and again in our research. Based on these learnings, the following are three key areas where providing control for passengers will be crucial within autonomous vehicles:

Control Over the Route Without using a steering wheel, pedals or other traditional controls, passengers still will need to interact with an autonomous system to get from point A to point B. Passengers will need to understand why, how and when to engage with the system. Trust and safety will be established when passengers feel in control of where they’re going and what the vehicle is doing. Control in this context includes determining how to begin a trip, adding a stop, changing the route or destination, and deciding where the vehicle will pull over. Control in Case of Emergency From a minor accident to a malfunctioning sensor, passengers will need to feel in control of a variety of emergency situations. We’ve found that passengers assume an autonomous

www.autobodynews.com 58

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

ited the vehicle also will help establish trust with the autonomous system. All in all, what our testing has shown is that, as drivers, all of us will need to shift our frame of mind as we embrace autonomous vehicles at our own pace and on our own terms. Each of us will have to come to a new understanding of how we interact with vehicles as part of a new relationship that is somewhere between driver and passenger. Feeling in control of the rides we take will be a crucial part of trusting, feeling safe and ultimately accepting autonomous vehicles. Matt Yurdana is a Creative Director in the Internet of Things Experiences Group at Intel, focused on creating new experiences with autonomous vehicles. He and the team prototype and test new interactions for how passengers will trust, communicate with, and feel safe in autonomous vehicles.

system will handle certain aspects of an emergency, but they also expect to have a hand in what is required or needed. Passengers must have the ability to pull a vehicle to the side of the road if it can’t do so on its own, and they will need to be able to exit the vehicle in an emergency and speak to appropriate support services when necessary. Again, these abilities will go a long way toward establishing a sense of trust and safety between passengers and the autonomous system. Control Over in-Vehicle Activities Freed from the necessity of driving a vehicle, passengers will want to have control over the things they will do in an autonomous vehicle. Depending on the activity, this may include accessing the internet, charging and using the devices they’ve brought with them, and sharing content or information with others they are riding with. Keeping passengers’ data secure during a trip and not leaving data behind once a passenger has ex-

We thank WardsAuto for reprint permission.

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Continued from Page 57

Your Labor Rates

in 2017, the CPI rose 2.1%, driven largely by energy costs, especially fuel oil and gasoline. To help maintain purchasing power and keep up with the overall increase in cost of goods, a shop could consider making an inflation adjustment to its labor rates. For example: if a shop currently charges $57 per hour, adjusting the labor rate for last year’s approximate inflation would yield a price of $58.20 (that is, $57 times 102.1%). Overall, our observation is that most body shops’ labor rates do not keep up with inflation over time, which puts those shops farther and farther behind every year, eroding their profits and purchasing power and risking their sustainability. Instead, we see body shops’ costs increasing at faster rates than inflation; paint costs alone could increase 3% to 8% per year, sometimes multiple times per year. We suggest shops think of keeping up with inflation as a minimum requirement, not a real solution to choosing their proper labor rate. 3) Consider what makes your shop different, especially training, equipment, facilities, and OEM certifications. Shops are not alike, and those that have made more investment in these items likely have greater repair capabilities than shops that haven’t. And they likely require a higher labor rate to pay back and earn a return on those investments. Use the VRS to find apples-to-apples comparisons for your shop and what price ranges are for shops similar to yours around the country. For example: our national survey data shows I-CAR Gold Class shops have body labor rates in the $56 to $84 range; Assured Performance shops are in the $58 to $84 range; while Audi OEM authorized collision repair facilities range from $65 to $104 and Mercedes certified collision centers are in the $64 to $100 range. (All ranges quoted here are from that group’s average to plus 2 standard deviations. There is some overlap in these groups, and some shops are priced higher or lower.) 4) Consider what investments you need to make this year. How much money do you need to invest to improve your repair capabilities (especially for high technology vehicles), such as training, equipment, or earn60

ing OEM certifications? In general, your current labor rate only covers your current business. You likely need a new labor rate to cover new investments because your current rate was never priced to pay for them. Most body shop investments such as tools, equipment, and training are intended to make repair labor more skilled and effective. Equipment can’t repair a car by itself; it needs labor to put the equipment to use. The same goes for tools, facilities improvements, and certifications. Therefore, labor activity has the burden to pay off those investments plus earn a return. Let’s look at an example shop and investment: A shop needs to make a $5,000 training investment for a technician. The shop currently charges $57/hour for labor, has a 50% gross profit margin on labor, and wants to earn a 15% return on investment in one year for this training investment. The technician bills 2,000 hours per year and operates at 100% efficiency. The 15% return on investment is $750 (that is, $5,000 times 15%). So the shop needs to earn back $5,750 (the $5,000 investment plus the $750 return) in one year. The shop decides to spread that cost evenly over the tech’s 2,000 billable hours, which calContinued from Page 9

Teachers’ Cars

provided a chance to redesign and reimagine what high schools look like in the 21st century. “We had this great opportunity and we seized it,” Funston said. “Schools have talked for a long time about how learning in rows with the teacher standing in front just isn’t giving students the skills that they need to be able to succeed in future jobs.” The school’s Automotive, Construction and Technical Education Instructor Russ Tesmer said the automotive students work on donated vehicles, as well as staff vehicles for a $40 per hour flat rate. At the end of the semester, Tesmer divides the earnings into an amount of around $350 for each student, which he uses to purchase the students items of their choice from a tool catalog. Financial backing The introduction of the Pathways curriculum caught the attention of Walser Automotive Group at the same time that the Walser Foundation shifted its focus to education. In 2016, the

APRIL 2018 AUTOBODY NEWS / autobodynews.com

culates to $2.88 per hour. This is the additional amount per hour the shop needs to earn to pay back the investment in one year. Because the shop earns a 50% gross profit margin on labor, we divide the $2.88 by 50% to get $5.75. This is the additional amount that needs to be billed for each hour (via the labor rate) so that the shop earns the $2.88/hour profit it needs to pay off the investment and earn the return. Therefore, the shop’s current $57/hour labor rate plus the additional $5.75 equals $62.75, which is the new labor rate the shop needs to collect to pay for this $5,000 training investment and earn a 15% return. A similar analysis is needed for all the other investments in equipment, facilities, certifications, and ongoing training. It can add up quickly. But shops that don’t adjust their rates to fund these investments quickly eat into their profits. Given the rapid increase in technology in this industry, we can expect a large and continual investment required to keep up with the training and equipment necessary to repair these high-tech vehicles properly and safely. Mathematically, the industry’s current labor rates will only take a shop so far down that road before they are simply unable to afford Walser Foundation gave $200,000 to the school’s automotive program and formed a partnership with the school. “The school has made the commitment not only to keep an onsite facility for automotive, but also to improve their facility,” said Ryan Moffitt, the service training director at Walser Automotive Group. Moffitt said that while trends show a decline in skilled labor education programs, District 191 has shown growth. “They are trying to invest in what they have and that’s extremely impressive to us,” Moffitt said. Walser’s financial contribution allowed the automotive center to add new equipment, including a full auto paint booth. Additionally, the partnership connects students to jobs and internships at the dealerships and various networking opportunities throughout the year. “A lot of this technology here gets me familiar with what I’ll be using in the field,” said senior student Ryan Cosner. “This class is not just a workshop—It’s also a classroom and we learn specifically how things work.” He plans to pursue a degree in mechanical engineering following

the necessary investments. This leads to three major risks to shops: 1) lacking the knowledge to repair new high-tech vehicles, 2) putting consumer safety in jeopardy, and 3) putting themselves at legal risk by performing improper or unsafe repairs. None of these four tips are intended to be the only thing you do to compute labor rates. Think through all of these, look at the results, and then decide what price to choose. You can also do a more thorough cost of doing business analysis, examining competitive wage levels in your market, and determining your profit goals then backing into the labor rate needed to hit that goal. These require having a good handle on your financial statements and a good spreadsheet or calculator to help with the calculations. Also, as unemployment in the US continues to drop, wage levels will increase, and it could become more expensive to acquire new employees and retain good ones. Shops need a labor rate that can support paying competitive wages. If you find yourself choosing between two rates, we suggest erring on the high side to help stay ahead of the increasing wage curve. Remember, there is no rule that says you can only set your labor rates graduation. Full circle Moffitt brings students on tours of the Mazda dealership. He remembers one student remarking how cool the business was, saying he wanted to work there. The general manager responded with, “Great, you’re hired!” Shortly after, the student was hired as a lot technician. With more than 200 different positions within the Walser Automotive Group organization, Funston said the partnership is able to expose students to all aspects of the industry. GeekSquad and Firefly Credit Union are other examples of corporate partnerships that work with the Pathways model to help students gain real-world experience and explore opportunities. “Every student has access,” Funston said. “There are no barriers to any students to participate in these different pathways, nor are they locked in.” As for the 1967 Malibu in the auto body shop—it’s being fully restored and painted in Burnsville Blaze colors. We thank Savage Pacer for reprint permission.

once per year. Prices can change at any time for any reason, and because markets and businesses are dynamic, labor rates can and do change continually throughout the year. We advise shops to consider their labor prices several times per year as their business evolves, cost structure changes, and investments are made. They can change rates as often as they need to. And very importantly, shops can freely report their new rates to the independent VRS Labor Rate Survey at LaborRateSurvey.com. Pricing transparency is essential for free markets to function efficiently, so your survey participation is critical. In conclusion, pricing your labor can often be more complex and more involved than this, especially considering all the investment needed to repair high-tech vehicles, but these simple four steps can help get you in the right range and closer to the right price for your individual shop. For a deeper analysis of your labor rates, greater access to more independent labor rate data, or help with any of these topics, contact National AutoBody Research for more information. www.nationalautobody research.com

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