May 2020 Midwest Edition by Autobody News

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Trump, Congress Agree on New Stimulus Package by Dan McCaleb, The Center Square

President Donald Trump and congressional leaders have agreed on a new, nearly $500 billion stimulus package to help small businesses im-

pacted by stay-at-home orders in response to the COVID-19 pandemic. The $484 billion deal includes $310 billion for the Paycheck Protection Program so businesses can continue paying employees. It also includes an additional $60 billion for a small business emergency grant and loan program, $75 billion for hospitals and $25 billion for a new coronavirus testing program. “I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing,” Trump wrote See New Stimulus Package, Page 16

As Part of U.S. COVID-19 Reopening Steps, Midwest Governors Form Coalition by Stephanie Soucheray, CIDRAP News

President Donald Trump during his daily coronavirus task force briefing on April 16 announced the first plans for reopening the economy and transitioning from widespread stay-athome efforts. During the briefing April 15, the president said America had likely passed the peak of its infections, and physical distancing measures were working. Deborah Birx, M.D., White House coordinator of COVID-19 response, said the country had noted

declining case counts for nine days, but still said the physical (social) distancing measures implemented by the White House should be followed through April 30, at a minimum. Meanwhile, in phone calls with governors April 16, Trump was reported to say each state had to call its own shots on when to open up, according to a recording obtained by the New York Times. “You’re going to be calling the shots. We’ll be standing right alongside of you, and we’re going to get our country open and get it working. See Reopening Steps, Page 22

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Michigan Returning to Work Will be ‘Phased in Carefully,’ Whitmer Says by Rose White, WZZM News

Re-engaging the Michigan economy will take time, Gov. Gretchen Whitmer emphasized during her press briefing April 17. “There’s a lot of anxiety and the most important thing that anyone with a platform can do is to try to use that platform to tell people we’re going to get through this,” Whitmer said. “And we will re-engage our economy when it’s safe.” It’s been just over a month since Michigan officials starting taking aggressive action to rein in the threat of

COVID-19, which has put 1 million Michiganders out of work and shuttered countless businesses. The state is faced with both a health crisis and an economic crisis, the governor has said. Meanwhile, the case count remains high; the Michigan Department of Health and Human Services reported more than 30,000 positive cases of the virus April 17 and the death toll has reached over 2,200. “We’re not there yet,” Whitmer said. “The rate of infection remains high, especially in certain parts of See Michigan Returning to Work, Page 20

Most Shops Weathering The Storm – So Far by Gary Ledoux

On April 17, 18, and 19, Autobody News used its 19,000 shop email subscribers and also social media channels to conduct a survey of collision shops across the country to see how they were coping with the COVID 19 pandemic. The majority of shops responding were independently owned singe-point shops, those perhaps the most vulnerable to volatile market swings. Despite that, and a wide range of available work, (most shops operating at 25% to 75% capacity) most seem to be faring reasonably well. The majority of shops (59%) have not laid off any workers although 21% have laid off three-quarters of their people. Most shops have taken a number of precautions to protect employees and customers including use of gloves and masks, frequent hand-washing, etc. It is surmised that not many shops think the pandemic situation will last very long because only 19% have taken on work other than traditional collision repair.

The majority of shops have applied for financial assistance through the government’s CARES Act but have not received their funds yet. The sad truth is, those funds may never come because as of this writing, the funds have been exhausted. There are, however, other measures being debated to replenish the program (see related stories.) Wayne Stevens, owner of Stevens Collision in western New York is a single-point shop, certified with FCA, Hyundai, and Kia but with no DRP arrangements. At present he hasn’t laid-off any employees because he has a two-week backlog of work. He says, “My father always told me, ‘Take care of the people that come through your door, no matter what they want, and you’ll build your business.’” Doug Hassell owns Hassell Auto Body on Long Island in New York, another single-point shop that has been in business since 1963, and has enough work to stay busy—so far. The shop has no DRP arrangements and no dealer relationships although they See Body Shop Survey, Page 12

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CONTENTS

IN Shop Owner Closes to Keep Workers Safe, With Pay

REGIONAL

Chess - A Quick Course on Primers ��31

AutoNation to Lay Off 7K Employees, Cut

Yoswick - Shops Cautioned Tough Economy

A Full Service Life in Collision Repair ��8

Could Spur More Counterfeit Parts, Pirated Software ��42

As Part of U.S. COVID-19 Reopening Steps, Midwest Governors Form Coalition ��1 Auto Glass, Parts Manufacturers Among OH Companies Laying Off Workers During ‘Stay at Home’ Order ��10 Auto Repair and Supply Businesses are ‘Essential’ in Ohio ��16 Employee at IN Toyota Plant Tests Positive for Coronavirus ��18 Governor Loosens Michigan Auto Dealership Shutdown to Allow Online Sales ��23 IN Shop Owner Closes to Keep Workers Safe, With Pay ��3 KY Ford Truck Plant Employee Tests Positive for Coronavirus ��18 MI Auto Body Shops Offering Deals During Coronavirus Outbreak ��16 Michigan Returning to Work Will be ‘Phased in Carefully,’ Whitmer Says ��1 MN Dealership Collecting Facemasks for Healthcare Workers ��10 OH Shop Helps to Supply WV Hospital with Equipment ��20 Test Drives to Oil Changes: MN Auto Dealer Launches Home Delivery Program ��6

NATIONAL Auto Glass Industry Responds to Those

AutoNation to Lay Off 7K Employees, Cut Costs Deeply ��30 Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery ��38 Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same ��36 Everyday Heroes: Auto Body Shops Still Doing Business During Coronavirus Pandemic ��18 First Funding for Small-Business Loans Depleted, Second Round Just Approved ��44

Anderson - Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ ��41

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, Bill Doyle, Norman Morano, Andrew Staicer (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

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. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes �� 6

McGrath City Hyundai �� 38

Audi Wholesale Parts Dealers �� 41

Michigan Collision Equipment �� 23

BMW Wholesale Parts Dealers �� 45

MINI Wholesale Parts Dealers �� 44

Certified Automotive Parts Association �� 14

MontiPower Americas, Inc. �� 22

Classic Chevrolet �� 37

MOPAR Wholesale Parts Dealers ��28-29

Classifieds �� 46

Morrison’s Auto Parts �� 18

Courtesy Subaru �� 30

Nissan/Infiniti Wholesale Parts Dealers �� 47

Eagle Abrasives, Inc �� 11

Patrick BMW MINI �� 32

Equalizer Industries, Inc. �� 10

Patrick Hyundai �� 34

Gandrud Parts Center �� 17

PPG Refinish �� 9

GM Wholesale Parts Dealers �� 39

Richfield-Bloomington Honda �� 36

Haldon Company �� 19

SATA Dan-Am Company �� 5

Hawkinson Kia �� 16

Sears Imported Autos, Inc �� 8

Honda-Acura Wholesale Parts Dealers ��24-25

Shaheen Chevrolet Parts Warehouse �� 31

Hyundai Wholesale Parts Dealers �� 40

Southern Polyurethanes, Inc. �� 7

Innovative Tools & Technologies, Inc �� 15

Spanesi Americas �� 13

Kelly BMW �� 20

Subaru Wholesale Parts Dealers �� 47

Kia Motors America, Inc �� 2

The Porsche Exchange �� 26

Kia Wholesale Parts Dealers �� 43

The Sharpe Collection of Automobiles �� 27

Laurel Auto Group of Westmont �� 35

VanDevere Chevrolet �� 33

Luther Bloomington Acura-Subaru �� 21

VanDevere Kia �� 33

Malco �� 12

Zimmer Chrysler-Dodge-Jeep-Ram �� 48

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

Ford Tests Social-Distancing Wearables ��47 GM’s ‘Project V’ Could Build Ventilators For Coronavirus Victims ��6 Most Shops Weathering The Storm – So Far ��1 Shops Using Downtime Advantageously During COVID-19 Crisis ��26 Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles ��4 Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts ��4 Trump, Congress Agree on New Stimulus

COLUMNISTS

The business is temporarily shutting down to protect workers and their families. McDaniel says he is still paying his workers during this tough time—money that is coming out of his pocket, but he says he is glad to do it. “The financial part versus the health and families...it overweighs it. Family is first absolutely,” McDaniel said. It will be closed until April 8. We thank WTHI News for reprint permission.

in Need ��23

INDEX OF ADVERTISERS

Costs Deeply ��14

When Indiana Gov. Eric Holcomb gave his stay-at-home order, he deemed several businesses as essential. That included auto body shops. But one Terre Haute facility says it is closing. We stopped by Scott’s Custom Colors and Autobody on Terre Haute’s north side. Owner Scott McDaniel told us he took it upon himself to shut down for the next two weeks. He has 16 employees and says he wants them all to be safe.

Package ��1 Why You Should Keep Advertising During a Major Market Downturn ��47

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Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts by Joey Klender, Teslarati

Tesla released a video highlighting the company’s ventilator manufacturing process, which incorporates parts from its all-electric vehicles.

The video update was shared via Twitter on April 5, and shows a group of masked Tesla employees, including VP of Vehicle Engineering Lars Moravy, working in an engineering lab. Company Engineering Director Joe Mardall outlined the company’s current process of development for the ventilators, which consists of a design using Tesla car parts. The use of parts has allowed Tesla to develop machines that can assist patients in breathing while infected with the virus, while not taking away from the amount of actual ventilator parts that exist right now. The ventilator prototype uses a hospital-grade air supply system that

feeds into a mixing chamber. This combines air and oxygen to create breathable air. The air then is pressurized and fed into tubes, providing a patient with air, which alleviates their breathing issues. COVID-19 is primarily a respiratory virus that attacks a patient's lungs and breathing patterns. Ventilators also have screens that provide medical professionals with information like tidal volume

ﬂow and volume. The shortage of ventilators across the U.S. is due to a low availability of the machines. Medtronic CEO Omar Ishrak said his company has quadrupled the production of ventilators to combat the shortage. While this increased production rate has helped provide hospitals in need with additional machines, there is still a massive shortage of ventilators.

per breath, respiratory rate (usually set by a doctor to give a patient the proper amount of breathable air), and oxygen concentration. These ﬁgures will be displayed on a Model 3 dash screen powered by the vehicle’s infotainment computer and will show air pressure, air-

Tesla plans to build its in-house breathing apparatuses with car parts as a strategy to “help out the medical industry without taking away from their supply.” Mardall said in the video Tesla’s reliable car parts could help solve the shortage of ventilators, as they

are readily available and produced in high volume. As ventilators remain a rarity in some locations of the world, Tesla’s influx of available car parts could solve a big part of the coronavirus issue, as there seems to be no ceiling on how many machines the company will be able to produce. Tesla made plans to help with the production of ventilators in late March after CEO Elon Musk said he had a conversation with Medtronic’s engineering team. Tesla’s team of engineers found their company’s vehicle parts were more than capable of being used in ventilators. After Medtronic’s first Tesla-purchased ventilators arrived in New York City on April 3, the company has shifted its focus to ventilators. Vehicle production has shut down at the company’s Fremont, CA, facility and Tesla’s engineering team has turned its focus to the health care field. Its preparation of the first Tesla ventilator prototype is evidently well under way. We thank Teslarati for reprint permission.

Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles With each new model, Subaru of America, Inc., makes advancements in technology that assist in the operation and safety of our vehicles. These advancements incorporate different sensors, cameras and control units, as well as other components, to assist with the functionality of the vehicle. They are a critical part of vehicle operation and the safety features in each Subaru vehicle. In the event of a collision, these components could incur damage, which may trigger diagnostic trouble codes (DTC), but may not be evident via a warning light on the instrument cluster. Subaru defines a collision as damage that exceeds minor outer body panel cosmetic distortion. During collision repairs, it is critical the proper function of these systems and features be restored back to pre-accident condition and performance. If these components are not evaluated, it could have a direct effect on vehicle operation and safety. For Subaru vehicles from model year 2004 and forward involved in a collision, Subaru collision repair procedure requires pre-repair scanning be performed.

Pre-scanning will reveal DTCs for items not functioning properly in the vehicle. It allows a shop to identify any issues early in the estimate process, allowing a more complete estimate and encompassing repair process. Additionally, Subaru collision repair procedure also requires post-repair scanning be performed on these vehicles. Post-scanning is critical in ensuring the malfunctioning items have been repaired and there are no remaining DTCs. It may also assist in assuring the appropriate calibrations and reinitializations have been performed. To accurately determine whether DTCs are present in a vehicle, Subaru recommends the use of the Subaru SSM4 diagnostic tool. Information regarding the purchase of the Subaru SSM4 diagnostic software application and Denso DST-i interface device can be found in the Subaru Technical Information System (STIS) at https://techinfo.subaru. com/Information/Special Tool Information. If a Subaru SSM4 diagnostic tool is not available, Subaru recommends the use of an asTechTM device. The asTechTM device per-

forms a diagnostic scan remotely using a genuine Subaru scan tool. Information regarding the purchase of the asTechTM tool can be found at https://astech.com/. Subaru does not recommend the use of a generic scanning device as we cannot guarantee the content or accuracy. Always refer to the applicable Subaru Service Manual or Technical Service Bulletin (TSB) for the most up-to-date repair procedures. Some safety and driver assistive systems will require inspections, calibration and/or aiming after collision or other body repairs. Any time a collision repair is performed, always refer to the appropriate Body Repair Manual and Service Manual for the most up-todate repair procedures. All Subaru technical information including Body Repair Manuals, Service Manuals, TSBs and more are available for purchase in STIS at https://techinfo.subaru.com>Log in/ My Account > Purchase a Subscription. Subscription options are listed on the site. If a collision repair is necessary, Subaru strongly recommends any repairs be performed by a Subaru Cer-

tified Collision Center using Subaru Genuine Parts designated for use in the specific Subaru vehicle being repaired, including all mechanical and electrical parts, body panels and structural components. Subaru Genuine Parts are manufactured to the same specifications and tolerances as the parts installed on factory new Subaru models. The use of Subaru Genuine Parts will help ensure the vehicle is restored back to its original pre-collision condition. The use of non-OEM components that may not be manufactured to the same specifications or tolerances as Subaru Genuine Parts could compromise occupant safety in a subsequent collision. The use of any aftermarket or substitute structural, body, mechanical or electrical repair parts is not covered under the Subaru of America, Inc., limited warranty, replacement parts limited warranty or Subaru Added Security (SAS) agreements or contracts. Subaru of America, Inc., is not responsible for any resultant damage caused by the use and/or installation of any aftermarket substitute part(s). Source: Subaru of America, Inc.

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Test Drives to Oil Changes: MN Auto Dealer Launches Home Delivery Program Amid shutdowns and social distancing, a Minnesota-based automotive group is pivoting to redefine the car buying process. This week, Walser Automotive Group launched Walser To You, a home delivery program offering customers the option to buy, test drive, trade in and service vehicles, all from the comfort of home. The program gives automotive customers the ability to completely purchase a vehicle remotely, said Walser’s Chief Merchandising Officer Colton Ray. “Most dealer groups are focused on a sales experience that caters to a dealer’s needs, not the customer. We believe customers shouldn’t have to compromise. Customers can choose to shop online or in store because Walser To You is a true ‘click and mortar’ experience,” Ray said. Walser To You creates options for customers who want to shop remotely; however, all Walser retail locations are still open for business. In an open letter from Walser CEO Andrew Walser, the company detailed its expanded cleaning protocols, including the use of gloves

on all customer vehicles, additional wipe downs of high-traffic touch points and increased professional cleaning services. Ray added the move to offer an online buying experience has been in production for some time. The company, which has operated under a one person, one price business model for nearly 10 years, already uses proprietary financing software and digital payment review tools to streamline the process. “The impact of the COVID-19 outbreak has been profound, and automotive groups are not immune to this. Major changes to our business landscape meant we needed to think creatively about how to best serve our customers in a way that’s easy, comfortable and safe. Walser To You is the next evolution in our customer-centric approach,” Ray said. Walser Chief Human Resources Officer Sherry Schultz said the offering is also about the protection of Walser employees amidst continued consumer demand. “COVID-19 is changing everything about life and work as we know it. We are doing everything we can

to keep our employees working and employed while safely supporting the transportation infrastructure in Minneapolis and Wichita,” Schultz said.

The National Automobile Dealers Association (NADA) estimates that 1.8 million vehicle leases are due to expire nationwide between March and July. Schultz added the option to buy and service remotely means customers, especially those who work in essential service roles, retain access to transportation for groceries, medical care and critical work. “This goes beyond casual Saturday dealership shopping. Instead,

we are talking about the support of necessary sales when leases come due, when cars are totaled and need to be replaced, and heavy truck sales for infrastructure. Online sales with home delivery mean customers can obtain personal transportation without congregating in public places,” Schultz said. “We’re committed to supporting the maintenance of this while keeping our employees safe.” Walser To You includes at-home test drives, free home delivery, mobile trade appraisals and white glove maintenance options. The program also includes a host of digital offerings for shoppers, including real-time vehicle walkarounds, virtual test drives and video chat. “Walser has always been an innovator in the automotive retail industry, and we’re not stopping now. We’re committed to supporting our customers with a sales and service experience that supports their needs,” said Ray. We thank Business Wire for reprint permission.

GM’s ‘Project V’ Could Build Ventilators For Coronavirus Victims by Christopher Smith, Motor1.com

Detroit automakers are starting to take an active role in combating COVID-19, better known as Coronavirus. A report from The New York Times says General Motors is accelerating a plan to build new ventilators for hospitals, working with medical equipment manufacturer Ventec to make that happen. The effort is apparently being dubbed Project V by folks working on the initiative, and when it’s up and running, the plan is to build 200,000 ventilators.The collaboration could use GM’s electronics manufacturing facility in Kokomo, IN, for the project. According to the report, GM already has 95% of the components needed to manufacture the ventilators. It’s unclear how long it will be before manufacturing can begin, however. The report lists a date of April 6 for the first parts to be delivered by suppliers, and additional components are still required before production can commence. In a statement to Motor1.com, a GM spokesperson confirmed the collaboration to produce ventilators.

“Ventec Life Systems and General Motors have been working around the clock to implement plans to build more critical care ventilators. With GM’s support, Ventec is now planning exponentially higher ventilator production as fast as possible. “This partnership combines Ventec Life Systems’ life-saving technology and General Motors’ manufacturing expertise to respond to the urgent and growing need for more ventilators. As part of those efforts, GM is exploring the feasibility to build ventilators for Ventec at a GM facility in Kokomo, IN. “Both companies have been proactively working together to arm medical professionals on the front lines with the tools they need to respond to this pandemic and save lives. Additional updates will be provided as they are available.” According to the March 23 report from the Centers for Disease Control and Prevention, there were 33,404 confirmed COVID-19 cases in the U.S., with 400 death; 32,416 cases are still under investigation. We thank Motor1.com for reprint permission.

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A Full Service Life in Collision Repair by Skye Pournazari, Maryville Forum

“‘You don’t want to wash cars all your life do you,’” Charles Roush, of Hopkins, MO, recalled being asked in 1953. “So that’s how I got started into doing body work.” In September of that year, after graduating high school, Charles Roush began his auto body mechanic career by washing cars for the Bill Duke Pontiac dealership located where Walker’s Body Shop is now in Maryville, MO. After a few employee turnovers, Roush was asked to switch jobs, and just a few months later, Roush said the dealer consolidated stock in Independence, MO, and closed up shop. Roush then started working in Hopkins, at Rosecrans Chevrolet for $40 a week. “That sounds crazy now, but in those days it wasn’t a big wage, but it was enough to scratch by living wage,” he said. It was the first week of May in 1954 when Roush went up to start the job. Later that year, he married his wife Barbara, moved up to Hopkins and began to grow his family, eventually adding four children: Rick Roush, Darla Thompson, Deena Poynter and Tim Roush. Just a beginner auto body man, Roush said he learned more and more on the job during his seven years and eight months at Rosecrans Chevrolet. Eventually, an auto body worker at Glenn Woodruff and Erville Allison’s Ford dealership decided to go out west and Roush’s name came up as a possible replacement. “They offered me a little more money,” he said. For 21 years and 11 months, Roush said he worked on cars at the Ford dealership until it went out of business. He said Allison had already bought out Woodruff by that time and a man by the name of Paul Beason then purchased it. Then, as a lot of the small town businesses at that time did, the dealership closed. Roush, who needed to support his growing family, said he hated to uproot them, like he’d been moved around as a child. “There were still things I missed out so much by not getting to stay

in one place longer,” he said. “So if there was any way possible I wanted my kids to get to go to school in the same place.” So he spoke with his banker and in January of 1983, Roush Body Shop opened in Hopkins. For 35 years, until 2018, its namesake worked hard fixing cars to feed his family of six.

Charlie Roush, of Hopkins, MO, stands in his living room. Roush spent 65 years serving his community through auto body repair, but also in numerous other ways. Credit: Skye Pournazari

“We got to be members of the community,” he said. “People around Hopkins have known me long enough, they didn’t push too hard to finish up something.” Roush said not having that pressure really helped him put his family first and the job second. “He’s the dad every kid always dreams of having,” said Roush’s daughter, Deena Poynter. She explained that after working a long day at the shop, Roush would take the time to stop and push her on a swing before doing anything else. “It was that ‘You’re important enough I’m going to stop,’ and he did that for all four of us,” she said. “He was wonderful with all of us.” Roush said the reason he got by so many years in the business was because he had “an awful patient wife. She understood that everything didn’t just go to five o’clock and cut off.” However, because he was his own boss, occasionally he said they got to knock off at 3 or 4 p.m. if they wanted to go watch his grandchildren play ball. “All told it’s been 63 to 64 years I’ve done body work in Hopkins,” he said. Poynter joked that her father’s initials—Charles Amos Roush—spell CAR. “I think it’s cute,” she said, laughing. Oftentimes Roush would dedi-

cate time teaching and mentoring high school votech students at his shop. “Charlie is one of the greatest men I know,” said James Brown, who worked for Roush. “I’ve never heard that man get angry.” Brown worked in the body shop from 1989 until he graduated high school in 1991. While his career took a different path than he had originally wanted, doing auto body work, Brown said he learned a lot from Roush. “He taught me a lot both from an auto body standpoint and (about) patience,” he said. “He’s the most patient man I know.” As a member of the Hopkins community, Brown said Roush is always willing to visit with people and ready with a good word to say. “He’s always been a positive member of the community, in the church,” he said. Not only did he provide training for those students, but also for two of his sons and four grandsons, who worked during summers gaining experience.

While they didn’t all go into the auto body repair field, they did receive a lot of good knowledge about cars and customer service, Poynter said. “He was a good boss,” she said. “He expected them to be on time. He expected them to do what they were supposed to do. Of course, he was a kind and loving boss, but yet he had expectations. That was great. That’s why we all loved having our kids work for my dad, because we knew that’s what they were going to get.” Roush not only kept community members mobile by way of his business, but moved himself easily throughout the community, helping with local events in and around the area, including coaching little league for 17 years, while his sons were in the league. He continued to coach for many years after they left. Poynter said he still hears from some of those men he coached back then. “They talk about how they remember all the lessons he taught them,” she said. “It wasn’t just all See A Full Service Life, Page 14

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Auto Glass, Parts Manufacturers Among OH Companies Laying Off Workers During ‘Stay at Home’ Order by Thomas Gnau, Dayton Daily News

Layoffs are beginning in earnest across Ohio. In the past approximately 24 hours, the Ohio Department of Job and Family Services made public several WARNs (Worker Adjustment Retraining Act Notice) outlining nearly 1,350 layoffs across the state. That number will likely rise. Fuyao Glass America—the Moraine auto glass manufacturer founded by a Chinese billionaire industrialist six years ago—is pulling back from most production work as Ohio comes to grips with the state’s “stay at home” order. Other auto parts manufacturers, such as Murotech Ohio Corp. in St. Marys, are doing likewise. Fuyao said it is offering assis tance to some employees who find themselves in financial straits. “Fuyao Glass America operated a skeleton crew today (March 23) to prepare our operation to go down until April 5 under the advisement of (the) Ohio executive order,” said an email to the Dayton Daily News from Leslie O’Hara, Fuyao assis-

tant human resources director. “We will only have a small group of employees onsite to maintain the necessary equipment, to complete customer commitments and to perform other essential business operations.”

tin said. Ohio Gov. Mike DeWine issued a “stay at home” order March 22 affecting “non-essential” businesses. Though manufacturers of products necessary for pharmaceu-

“We believe the longterm RV market will be robust once again...” — Bob Martin RV makers Thor Industries Inc., based in Elkhart, IN, with operations in West Central Ohio, and Iowa-based Winnebago Industries Inc. both said they will suspend North American operations. Thor’s move affects Shelby County’s Airstream, which has more than 900 workers. Thor President and CEO Bob Martin expressed optimism in a statement that the company will bounce back. “We believe the longterm RV market will be robust once again, and when that time comes, we will take advantage of our flexible business model to quickly resume production to meet dealer orders,” Mar-

tical, technology, biotechnology, healthcare and other areas may remain open, many others are closing, particularly with domestic auto production having largely ceased in recent days. “We will continue to have security and the safety departments present to ensure the safety of this small group of employees while they are working onsite,” said the email from Fuyao. “During these uncertain times, we are doing all we can to take care of our employees,” the email continued. Fuyao said employees who do not have pay and benefits “at a rate richer than what they would get with unemployment and COBRA” could

receive assistance from the Heren USA Foundation, Fuyao Global’s charitable arm. The funding “offers additional assistance to qualified FGA employees who are in financial difficulties,” Fuyao said. “We hope that our business will be back to normal as soon as possible. We will continue to share information with our employees as there are new developments.” Fuyao founder Cho Tak Wong created Fuyao Glass America in a shuttered General Motors plant off West Stroop Road in early 2014. The auto glass manufacturer has more than 2,300 workers. Late March 23, Norcold Inc., which has operations in Sidney, filed a WARN letter with the Ohio government. In Sidney, 224 of 265 employees will be laid off, the company told the state. In Gettysburg, OH, about 120 of 137 employees will be laid off, the business said. Norcold makes refrigerators. Murotech Ohio Corp. will layoff 52 workers in St. Marys, that company said in its own WARN notice. We thank the Dayton Daily News for reprint permission.

MN Dealership Collecting Facemasks for Healthcare Workers by Estefan Saucedo, KARE 11

As a Minnesota-based healthcare system requests protective mask donations, a local Ford dealership has stepped up to help collect them.

Allina Health is asking anyone able to donate protective masks to drop them off at designated locations so that healthcare workers can have protection when treating patients. AutoNation Ford in White

www.autobodynews.com

Bear Lake, MN, said as of March 23, it would use its resources in the push to collect the masks, by using its 40+ delivery vehicles, already visiting auto repair and body shops, to collect any donated face masks. Simply hand N95 or N100 masks to an AutoNation driver, or call the parts line at 651-4848888 to schedule a pick up. There is a huge demand for masks as the healthcare needs of the community grow due to the coronavirus. Factory made N-95 masks and ear loop masks are needed, but people can also contribute hand-sewn masks if they make them. For more information on Allina Health locations accepting donations, see the full story on the KARE 11 website. We thank KARE 11 for reprint permission.

UPDATED DAILY

10 MAY 2020 AUTOBODY NEWS / autobodynews.com

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AUTOBODY are certified by FCA, Honda, Nissan, Lexus and a few others. Hassell writes, “In our shop, we work for the customer. Our customers are our friends, and we make things right for them.” When asked how he was handling his employee situation, Hassell replied, “We had one guy that was getting ready to retire, so he took this opportunity

Analysis of the Body Shop Survey

to do just that, and gave a younger guy a chance to stay on. That was very gracious of him. Other people were in a financial situation that would allow them to take a couple of weeks off without pay so that worked out. Plus, we have shifted hours around for some people and gone to a no-overtime policy. So, it’s all worked out.” Hassell not-

100%

Independently operated single-point shop Independently operated with two or more locations

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

87.2%

9.5%

MSO (Caliber, CARSTAR, Service King, etc.)

3.1%

No Response(s)

100%

TOTALS:

restoration work for the brands they usually handle—mainly Porsche and BMW. And one shop in a snow-belt area has taken on more rust-repair jobs to keep busy. Read Autobody News on-line at autobodynews.com and in-print to keep up with the industry’s latest developments.

2. Given the current pandemic situation, to what degree is your shop operating? (Choose one)

1. What is your type of shop? (Choose one) ANSWER:

ed that in his area of Long Island there is a heavy concentration of shops. Some are busy, some are dead. One shop in northern California noted that their DRP work had all but dried up so they were knocking on doors of businesses that were still open to find work. One highend shop in Utah has taken on some

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

100%-plus (backlog of work)

5.3%

100% - 75%

17.0%

75% - 50%

22.3%

50% - 25%

27.6%

25% - 5%

21.2%

We’re temporarily closed

6.3%

No Response(s)

100%

TOTALS:

12 MAY 2020 AUTOBODY NEWS / autobodynews.com

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3. Have you had any layoffs due to work changes? (Choose one) ANSWER:

100%

Yes - Laid off a quarter of my staff

4. What changes have you implemented in your workplace? (Choose all that apply)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

12.7%

Closed front office

29.6%

Pickup / deliver customer cars

54.9%

100%

Yes - Laid off half of my staff

6.3%

Yes - Laid off three-quarters of my staff

21.2%

Sanitation stations / enforce social distancing

78.0%

No - Have not had to lay off anyone

59.5%

Use face masks and rubber gloves regardless of the shop operation

56.0%

Other

16.4%

100%

No Response(s)

TOTALS:

5. Have you taken on any other type of work such as restoration or custom work?

TOTALS:

6. Have you applied for assistance under the CARES Act just passed by Congress? (Choose one)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

Yes

19.1%

73.4%

If yes, what type of work? Comment below

7.4%

No Response(s)

100%

ANSWER:

100%

TOTALS:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

Yes - I have submitted a application but have not yet received the funds

62.7%

Yes - I have submitted a application and have already received the funds

10.6%

8.5%

11.7%

6.3%

100%

No - But I plan to at a later time No - I do not intend to use CARES funds No - I have not heard of the CARES Act

TOTALS:

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A Full Service Life about baseball.” Poynter said Roush offered life lessons along with his time. She became a more accurate softball pitcher, thanks to her father’s help. Through his business, Roush also donated to various organizations throughout the community, sponsoring teams and events. Poynter said he also was incredibly involved in all the school activities in which she and her siblings participated. “He never missed any of our concerts, ballgames,” she said. “My dad would come to watch us cheer.” Currently, Roush still participates in Lions Club and is an elder emeritus at the First Christian Church in Hopkins. Roush is very active in his church, joining just after he and Barbara were married. For years, he was the custodian and later, a youth leader at the church. “I loved having my dad as my youth group leader,” Poynter said.

“My dad was great, he was fun. The other kids loved him. He had these great messages, so I loved it.” Steven Wainwright, current pastor at the First Christian Church in Hopkins, hasn’t known Roush for a long time, but believes he’s a true leader in the congregation. “He has just a great love for his church and for his wife Barb,” he said. “He’s a very compassionate and caring person.” Wainwright recalled when his mother died and Roush called on him not just once, but multiple times offering support. “Even to this day I can’t really explain how he did it, you could just tell by inflection the care he had and the words he used that he was genuinely there to encourage and to support,” he said. “He’s especially loved in the church.” Even in disagreement, Wainwright said, Roush has a palatable way to converse about difficult topics. “We call him one of the patriarchs of the church in a sense that he really stands for the very best of what the church should be and can be,” he

said. “He’s done well in his walk with the Lord. I think he’s a person who still seeks to be more and more like Jesus.” In 2018, Roush was stopped amid work in his shop by a phone call that shuttered his business and changed his life forever. In early December 2018, Poynter said her dad received a call from Dr. Rony Abou-Jawde’s office at the Mosaic Life Care Cancer Center in Maryville. She explained Dr. A.J. told him to immediately go to the emergency room at St. Luke’s. “They just had discovered (through a PET scan) that cancer had eaten a lot of his bones away, especially through his neck,” Poynter said. Multiple myeloma is a cancer of plasma cells in the human body, according to the American Cancer Society. Plasma cells make the antibodies that help the body attack and kill germs. Plasma cells are found mainly in the bone marrow. In general, when plasma cells become cancerous and grow out of control, this is called multiple myeloma. Poynter said if he had moved

in the wrong way, he could have become paralyzed. After a neck surgery, Roush was moved out of the ICU, and contracted pneumonia three times, but eventually bested it too. He started cancer treatments and was able to go home in a wheelchair. “Several times they thought not only would he not survive, but never thought he would walk,” she said. “At this point my dad is walking with just a cane. He is a very strong man. He is pretty much who he always was. He’s a little less ebullient, I guess you might say, but not a lot. He’s an amazing guy.” Roush said he still usually has a side project vehicle he’s working on or thinking about in his free time since closing the shop. “I’m not working on it very fast,” he said. “When I get back to a little better health I’ll go back out and play with it. I guess the good Lord has something left for me to do. I’m still here and I’m thankful for the good years I’ve had.” We thank the Maryville Forum for reprint permission.

‘Essential’ Businesses in WI Taking Extra Precautions by Dan Hagen, WJFW News

Wisconsin Gov. Tony Evers’ “Safer at Home” order allows essential businesses to continue operating during the coronavirus pandemic. While these businesses will stay open, it won’t be business as usual. Walking into Arbor Vitae’s Pukall Lumber, you may notice some changes. President Rick Wilson installed a sneeze guard in the retail store, and says there is no more browsing. “It’s a pretty strict policy, but these aren’t normal times,” said Wilson. During the COVID-19 outbreak, Pukall is staying open but taking extra precautions to keep everyone safe. “We’re restricting our employees from traveling,” said Wilson. “They can only travel really from home to work and that’s within a 50-mile radius, and they can’t have guests for the next two weeks.” The Shimkus Auto Body Shop in Rhinelander is taking similar measures. Brian Shimkus said when a car is dropped off, employees wear

gloves and masks while disinfecting the vehicle. “After we’re done fixing the vehicles we’re doing the same thing— we’re disinfecting the vehicles for the customers’ safety,” said Shimkus. Business hours are now 9 a.m. to 4 p.m. Shimkus said this gives his team an extra hour in the morning and evening to disinfect the facility. “[We’re] trying to keep everybody safe,” said Shimkus. “Try to keep everything disinfected and trying to make the best of what we can do.” Right now Shimkus says business is slow, but for Wilson things are steady at Pukall. But both businesses are staying open for now—with customers coming around to the changes. “Slowly but surely, everybody’s coming onboard and accepting the changes,” said Wilson. Pukall Lumber sells low-grade lumber to become food pallets and wood chips for toilet paper. We thank WJFW News for reprint permission.

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New Stimulus Package on Twitter. “We have a deal, and I believe we will pass it today,” Senate Minority Leader Chuck Schumer told CNN. The U.S. Chamber of Commerce heralded the news in a statement. “We applaud congressional leaders and the administration for reaching a deal to increase desperately needed funding to support America’s small businesses during this difficult time,” said Neil Bradley, executive vice president and chief policy officer, U.S. Chamber of Commerce. “Every hour of every day, small businesses across the country are being forced to make difficult decisions due to the significant revenue disruptions caused by the coronavirus.” We thank The Center Square for reprint permission.

AUTOBODY

Auto Repair and Supply Businesses are ‘Essential’ in Ohio Essential Services Includes ‘Auto Supply, Auto Repair and Related Facilities’ In an effort to further reduce community-spread of COVID-19, Ohio Gov. Mike DeWine issued an executive order that only certain businesses may remain open to serve essential functions. Businesses considered “non-essential” were required to close as of 11:59 p.m. March 23. Businesses needed for transportation, including gas stations, auto supply, auto repair, farm equipment, construction equipment, boat repair and related facilities and bicycle shops and related facilities are listed among the businesses considered essential.The full executive order can be read here. https://associationdatabase.com/aws/OADA/asset_manager/get_file/434945?ver=1285 Additionally, a set of FAQs issued by the Ohio Department of Health on this stay-at-home order are HERE. https://associationdatabase. com/aws/OADA/asset_manager/ get_file/434941?ver=392The executive order also requires social distancing. This includes designating 6-ft. distances with signage, tape or

by other means. Also, businesses are required to have separate operating hours for vulnerable populations, post hours of operation on their website and implement other measures for the safety and health of employees and customers.

Dealers are also required to follow the CDC’s Guidance for Businesses and Employers, including actively encouraging employees to remain home until they are fever-free for 72 hours, performing routine environmental cleaning, respiratory etiquette and hand hygiene by all employees.

MI Auto Body Shops Offering Deals During Coronavirus Outbreak by Ali Hoxie, WXYZ News

Auto body shops are remaining opening during the coronavirus pandemic, and some in Michigan are offering special deals for essential workers still hitting the roads. “We have known for sometime that we are the backbone that has to move on the roads these days. We are essential; we have been essential all this time,” said Bill Nalu, president of Interstate Auto Care in Madison Heights. Right now, Interstate Auto Care has taken $10 off an oil change. They are also offering to pick up customers’ cars for free, and sanitizing the inside. The goal is to keep working on cars while maintaining social distancing. “You don’t even necessarily come into the building,” said Nalu. “We have a lockbox outside so that you can pick up you vehicle with your invoice that we can either email or give you a physical copy.” Certain Midas locations are

offering deals for first responders and those in the healthcare industry. Todd McIntyre, general manager for the Midas in Adrian, said the shop is asking people not go intwaiting rooms and to call ahead. “I would urge anybody that’s looking for automotive service, tires, oil change, brakes, give us a call, call your location and let’s see if we can talk,” said McIntyre. “I remind folks out there, and I certainly remind myself on a regular basis, that we are modeling this to our children, we are modeling this to our elderly, who are depending on us to be the strength that is required,” said Nalu. Select auto shop locations are also offering cleaned out rental cars to help limit people sitting in waiting rooms. We thank WXYZ News for reprint permission.

www.autobodynews.com

UPDATED DAILY

For additional guidance, dealers should consult the CDC’s Interim Guidance for Businesses and Employers, located here. https://www. cdc.gov/coronavirus/2019-ncov/ community/guidance-business-response.htmlOADA appreciates the governor’s commitment to the health and safety of Ohioans and applauds his administration for taking steps to reduce community spread of this COVID-19 pandemic. OADA advocated that our members remain open for sales and service to serve the essential needs of our customers, including local governments and municipalities, the trucking industry and others. We are committed to continuing to serve our communities, while maintaining precautions to protect their health and wellbeing. OADA believes this order permits dealers to be open for sales and service functions. However, if dealers have any questions regarding the scope of what services they may continue to offer, please contact your legal counsel for additional guidance. Source: OADA

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parts@gandrud.com autobodynews.com / MAY 2020 AUTOBODY NEWS 17

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Employee at IN Toyota Plant Tests Positive for Coronavirus by Jill Lyman and Jessica Costello, 14 News

Toyota Motor Manufacturing Indiana, Inc., President Leah Curry sent a message to employees saying an employee at a Gibson Co., IN, plant has tested positive for coronavirus. The plant is in the middle of a two-week shutdown in order to help stop the spread of the virus. There are still some essential employees working at the facility, but Curry says deep cleaning has been under way. Those who had been in close contact with the employee have been notified.

Production resumes April 6. In a press release, Toyota said it learned of the positive test March 24. That employee’s last day of work was

March 17 and has since been off. The press release said once they were informed of the positive test result, the onsite physician im-

Toyota suspended all production March 23 and, according to the press release, has been taking extra precautions to increase efforts

mediately contacted public health authorities and other team members who may have closely interacted with the employee. After learning of the COVID-19 case, members of the community say it’s a matter of time before more cases pop up in the area. “I do beleive we’re going to see many many more cases due to the contact people have with each other,” Princeton resident Michael Melson said. “And I think that’s why it’s so important to stay at home, if at all possible. We will still go out and get food as we need it, gasoline as we need it, but other than that we’re hoping to do our part by just staying home.”

to deep clean and disinfect all areas where the employee was exposed. Princeton Police Chief Derek McGraw said even with the positive case now confirmed, emergency services will continue to help the community as much as possible. “We’re all going to be out here in the front lines working for you,” McGraw said. “And again, we just urge everyone to stay calm, we’re going to get through this and it’s going to pass.” We also reached out to Princeton, IN, Mayor Greg Wright about the positive case, and he said he did not want to talk on behalf of Toyota or any further on the situation.

KY Ford Truck Plant Employee Tests Positive Coronavirus By Sarah Ladd, Louisville Courier Journal

A Kentucky Ford Truck Plant employee has tested positive for the coronavirus, a spokeswoman confirmed March 25. “We are thoroughly cleaning and disinfecting the building, as promised as part of our coronavirus emergency response protocol,” spokeswoman Kelli Felker said. The Kentucky Truck Plant in Louisville, KY, where the Expedition, Lincoln Navigator and F-250 are assembled, is on a temporary hold because of a government order to stay home. “The health and safety of our workforce, dealers, customers, partners and communities is our highest priority,” Felker said. “Our thoughts are with our employee and family during this difficult time.” We thank the Louisville Courier Journal for reprint permission.

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Everyday Heroes: Auto Body Shops Still Doing Business During Coronavirus Pandemic by Chris Oberholtz and Savannah Rudicel, KCTV5 News

Typically, when you come into a shop like Hafkemeyer Motors in Kansas City, MO, mechanics will have grease on their hands. But now, they’re trying to wash and sanitize more often to prevent the coronavirus from forcing them to close. Business is down with fewer people on the roads and drivers pushing off repairs until after the stay at home order is lifted. Hafkemeyer usually has six to eight service appointments per day. Now, they’re doing two to four. Andy Scott, the owner of the specialty shop, says they’re limited to working on BMWs, Mer-

cedes and Mini Coopers, but that does bring in loyal and frequent customers. “It’s definitely a lot slower, especially for this time of year. It could be a lot worse though,” he said. There’s still enough work right now for most of the mechanics to stay busy. Scott says they want to stay open and things would have to get very slow before they would consider temporarily closing. All this week, KCTV5 News is highlighting essential workers, or everyday heroes, who continue to keep much-needed businesses open. We thank KCTV5 News for reprint permission.

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Michigan Returning to Work our state. And the threat of a second spike that overloads our hospitals is still very real if we don’t get this right.” The governor teased a plan to reboot the workforce that will be explained late next week, that will likely start by reopening “low risk sectors.” This includes factors like whether workers interact with the public, whether workers are inside or outside, whether workers are in close proximity to each other and if they share tools, Whitmer explained. It’s also possible, depending on the data, that certain regions that are not as hard hit could open earlier. All of these elements will contribute to the state’s assessment on reopening Michigan. “It’s going to be really important that we are re-engaging in waves, and it is going to take a while before everyone is back to work and the way that we think of it,” Whitmer said. “And even then, our lives, our lives may be very different. We may be wearing face masks, we may have new precautions in the workplace that that weren’t there before.” The governor cautioned that without a strategic plan to reopen businesses, Michigan could face an even more devastating second wave of COVID-19 that could lead to a second stay at home order. The current order is set to be lifted May 1, and Whitmer said April 17 she hopes that certain restrictions could be relaxed by then. While Whitmer has emphasized the need to move slowly, she has faced pushback from Michiganders who either outright disagree with the order or have issues with specific elements of it. A couple thousand people gathered in Lansing on April 15 to demonstrate their dissent against Michigan’s stay at home order. Criticism has ranged from people urging Whitmer to reopen the state soon to anger over Whitmer’s ban on motorized boating. President Donald Trump also

chimed in April 17, saying in a tweet “LIBERATE MICHIGAN.” Michigan recently joined a coalition of seven Midwest states that have agreed to work together to reopen their economies. This will be accomplished through a leveling out of new cases, expanded capacity to test and trace COVID-19, sufficient health care capacity to handle an influx of patients and observing best practices regarding social distancing. “This doesn’t mean that our economy is going to open all at once. It doesn’t mean that these states are going to take the take the exact same steps of the exact same time,” Whitmer said. “But what this does mean is that we are all now working together to make sure that we are making data driven decisions, and protecting people in our region so that we don’t see a second wave of COVID-19.” Michigan’s chief medical executive Dr. Joneigh Khaldun said the rate in the growth of new cases has plateaued. April 17, there were 760 new cases reported, the third time that week they dipped below 1,000. “These are positive signs and it means that social distancing is working,” Khaldun said. “A plateau in cases still means there are a lot of cases and deaths occurring, and we have to be mindful of this as we move forward with our response.” Both the governor and Khaldun emphasized they will be keeping an eye on the data as the state develops a plan to start reopening. In the briefing, Whitmer showed two maps of Michigan: one of Michigan’s current status with COVID-19 and one that displayed the original projections if a stay at home order was not enacted. The second scenario shows Michigan would have 46,000 cases right now, compared to 30,000. “Social distancing remains the single most important thing we can do to prevent this disease from spreading and to save lives,” Khaldun said. Some portions of the state will have a different curve than others, Khaldun said, and that will be a factor in determining how things are opened

back up. One important element in getting Michigan restarted is expanding testing. The state recently opened or grew 13 testing sites across the state. And health officials have expanded the list of testing criteria so more people can clear the bar for testing. However, it still remains a hurdle for officials. Michigan has tested much fewer people than states with a comparatively similar case rate. Khaldun pointed to a lack of supplies, like swabs, to process tests. “This week, we continue to work with our lab directors across the state to understand what the challenges are,” she said. Both state officials said a plan on how Michigan will progress will be unveiled next week. “It is my fervent hope that we do what we need to do to it right so that we do it safely and don’t ever have to think about a stay at home order again,” Whitmer said. “But it’s going to take time. And people are going to need to be patient and this will happen in waves.” We thank WZZM News for reprint permission.

OH Shop Helps to Supply WV Hospital with Equipment By Alex Hines, 12 WBOY

Like many businesses, Murray’s Auto Glass in Marietta, OH, has been closed as part of the precautions against the COVID-19 pandemic. But when a nurse friend of owner Dennis Farrar came to him worried for her safety, he and his crew jumped in to help by shifting production from auto glass to face masks. “That was the initial idea. I thought, gosh, we could make these. I’ve got the 1/32nd polycarbonate in stock, I’ve got 10 sheets, it’s sitting here. We closed anyway, so why not?” Farrar explained. His crew started small, making only a dozen of the face masks, and sending them to the WVU Medicine hospital in Parkersburg, WV. He explained they’re not built like the ones hospital staff may be used to, but they come with some advantages, too. To read more, see 12 WBOY News.

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Continued from Cover

Reopening Steps People want to get working,” Trump said, and he also emphasized that some states could open up before May 1. On April 16, another 5.2 million Americans filed for unemployment benefits, raising the total number of Americans to 22 million, or 13% of all U.S. workers, who have lost jobs and income in the wake of the pandemic. According to the U.S. Labor Department, this is the fourth week in a row of catastrophic unemployment numbers. Joining governors on the West and East coasts, seven Midwestern governors on April 16 announced a new coalition to open the Midwest economic region. In a letter from Michigan Gov. Gretchen Whitmer’s office, she and the governors of Ohio, Wisconsin, Minnesota, Illinois, Indiana and Kentucky announced the partnership. “Phasing in sectors of our economy will be the most effective when we work together as a region,” the letter said. “This doesn’t mean our economy will re-

open all at once, or that every state will take the same steps at the same time. But close coordination will ensure we get this right.” New York Gov. Andrew Cuomo said April 16 his state and neighboring East Coast states will shutter nonessential businesses through at least May 15. Cuomo said he is working with the governors of New Jersey, Pennsylvania, Rhode Island, Connecticut, Massachusetts and Delaware to create a safe plan for reopening the economy. “I need a coordinated action plan with the other states. So, one month, we’ll continue the closedown policies. What happens after then? I don’t know. We will see what the data shows,” Cuomo said during his daily briefing from Albany. “I don’t want to project beyond that period.” As of April 16, New York had 222,284 cases and 12,192 deaths. The New York death rate continues to spike as state authorities have now begun to include presumed COVID-19 fatalities in the daily totals. According to a ProPublica investigation, New York City is recording an average of 200 in-home deaths per day, and Detroit and Boston have also recorded

spikes in deaths at home, which may represent undercounted COVID-19 fatalities. According to the John Hopkins University COVID-19 tracker, the U.S. has 629,264 cases, including 26,708 deaths. The Smithfield pork processing plant in Sioux Falls, SD, is now home to the largest cluster of COVID-19 cases in the country, with 644 people with connections to the plant testing positive as of April 15. That’s more than half of the state’s COVID-19 total of 1,168. So far, at least one Smithfield plant employee has died from the disease. South Dakota remains one of eight states without statewide shelter-in-place orders. Politico reported April 15 many of those states, in the nation’s farm belt, are seeing spikes of COVID-19 activity, including Nebraska, Iowa and South Dakota. In the past week, Nebraska has seen a 30% increase in cases, as has North Dakota. Cases increased by 260% in South Dakota and 26% in Oklahoma. According to Politico, these rates compare to roughly 26% over the same period in New York, the epicenter of the pandemic.

Trust for America’s Health (TFAH) released a new report April 16 suggesting years of chronic underfunding of America’s public health systems, including repeated budget cuts to the Centers for Disease Control and Prevention (CDC), primed the country for a pandemic such as COVID-19. According to a press release on the report, TFAH found funding for state and local public health emergency preparedness and response programs has been reduced by approximately one third since 2003. “Of critical concern now, funding for the Hospital Preparedness Program, the only federal source of funding to help the health care delivery system prepare for and respond to emergencies, has been cut by half since 2003,” TFAH said. The report also said from 2016 to 2018, state expenditures of federal monies for public health activities decreased from $16.3 billion to $12.8 billion. TFAH calls on lawmakers to increase funding to the CDC by 22% by Fiscal Year 2022. We thank CIDRAP News for reprint permission.

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Governor Loosens Michigan Auto Dealership Shutdown to Allow Online Sales by Kalea Hall and Henry Payne, The Detroit News

Michigan auto dealerships will be allowed to make online sales during the COVID-19 pandemic, after Gov. Gretchen Whitmer issued a new executive order April 9 declaring dealership employees are now considered critical workers. The new order, which extends the state’s stay-at-home order to April 30 from the original date of April 13, accepts vehicle sales and leasing are essential activities and can be conducted remotely and electronically. Although they still cannot open their showrooms for in-person sales, it’s good news for Michigan dealerships that went dark with the original March 24 order. “We are really excited to be able to help people who are in critical need of a car,” said Doug North, owner of North Brothers Ford in Westland. “We are hopeful that maybe this will give us an opportunity for the rest of April to certainly sell a few more cars and to service a few more.” He said one Ohio dealership

told him they had sold 15 vehicles to Michigan customers who had been unable to buy a vehicle in their own state over the last few weeks. Michigan last week opened up a narrow window for sales, allowing dealers to perform sales for first responders and other essential workers in emergency situations. The new order April 9 specifically states workers are deemed essential “at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.” Michigan had been one of only four states—including Hawaii, Pennsylvania and Kentucky—to ban all auto sales. Washington state dropped off the list last week when it OK’d digital sales, according to J.D. Power. Overall, 24 states (accounting for 44% of US sales in 2019) allow for dealership sales operations to remain open. Another 23 states have restricted sales to online. In the first week of April, sales were off 59% across the country,

with Michigan flat-lining at a near 100% decline, J.D. Power said. Automakers across the U.S. already started to implement changes in their business last month as the contagion spread. They’ve been doing extra sanitizing of vehicles, covering seats and steering wheels, dropping off vehicles for test drives and having customers complete paperwork over the web before delivering them their new vehicle. “This will impact every part of how we do business going forward,” North said. Meanwhile, it’s unclear when auto production will restart to help keep stock on dealer lots. Most auto factories in North America are shut down. But inventory remained strong at the beginning of April with the average days’ supply number for the industry at 95 days, according to Edmunds.com. That’s a 26-day gain from March and is the highest it has been since February 2009, during the Great Recession. We thank The Detroit News for reprint permission.

Auto Glass Industry Responds to Those in Need COVID-19 continues to impact the U.S., but some in the auto glass industry worked together to help those in need. Paul Bycok, of Glass One Auto Glass, used social media to challenge those in the industry to give back. He, along with others, went into their community to deliver “care boxes” to the elderly. According to Bycok, some of the items included in the boxes were toilet paper, water, rice, canned and packaged soup, toothbrushes with toothpaste, bar soap, pasta, pasta sauce, muffin mix, coffee, tea and cookies. “A lot of us have been blessed by this crazy industry. Let’s hope this passes over, but be mindful of others who (may) need a drop box of help,” Bycok said. We thank glassBYTEs.com for reprint permission.

www.autobodynews.com

UPDATED DAILY

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HONDA ILLINOIS

MICH

Schaumburg Honda Automobiles Schaumburg

847-884-8898 847-884-6632 Dept. Hours: M-F 6:30am-Midnight; Sat 8am-5pm k.kelley@rohrman.com INDIANA

Dept. H

MINN

Bob Rohrman Honda Lafayette

800-488-3537 765-448-1000 Dept. Hours: M 7:30-8; Tue-F 7:30-6; Sat 8-3 Brho.partsmgr@rohrman.com

parts

MICHIGAN

Suburban Honda Farmington Hills

248-427-7996 Dept. Hours: M, Thu 7-8; Tue, W, F 7-6; Sat 8-3 nowiesny@suburbancollection.com

Rich

Victory Honda Plymouth

800-824-4646 734-453-3600

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

ACURA ILLINOIS

MICH

McGrath Acura of Morton Grove Morton Grove

847-470-2309 Dept. Hours: M-F 7-9; Sat 8-6 acparts@mcgrathag.com

p p

24 MAY 2020 AUTOBODY NEWS / autobodynews.com

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

ght;

MISSOURI

Zeigler Honda

Bommarito Honda

Apostolakis Honda

Kalamazoo

Hazelwood

Cortland

888-342-1678 269-585-5812

800-731-8270 314-731-8270

800-900-4600 330-638-3060

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

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

Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@apostolakisauto.com

Ed Napleton Honda

Jay Honda

MINNESOTA

Brookdale Honda a

com

Brooklyn Center

800-899-8900 763-331-6880 Dept. Hours: M-Thu 7-9; F 7-6; Sat 8-6 parts@lutherbrookdalehonda.com

St. Peters

Bedford

800-875-4190 636-928-4400

800-509-9057 440-786-3363

Dept. Hours: M-Sat 7-6 gethondaparts@napleton.com

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

Columbia Honda

WISCONSIN

Buerkle Honda

573-818-3650

Columbia

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St. Paul

Dept. Hours: M-F 8-5; Sat 8-4 gropp@fletcherauto.com

888-318-1671 414-586-5401

Dept. Hours: M-Thu 8-9; F 8-6; Sat 8-4:30 hondaparts@buerkle.com

Honda of Tiffany Springs

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

800-592-9514 651-484-0975

Richfield-Bloomington Honda Richfield

800-328-2703 612-866-8197 Dept. Hours: M-Thu 6:30-9; F 6:30-6; Sat 6:30-5 parts@rbhonda.com

com

OHIO

MICHIGAN

Kansas City

816-452-3221 Dept. Hours: M-Fri 7-6; Sat 7-4 parts@hondaoftiffanysprings.com

Roper Honda Joplin

877-244-6632 417-625-0846 Dept. Hours: M, W, Thu, F 7:30-6; Tue 7:30-7; Sat 9-1 dvice@roperauto.com

MINNESOTA

Acura of Troy Troy

Milwaukee

Buerkle Acura Minneapolis

MINNESOTA

Luther Bloomington Acura Bloomington

800-935-0923 248-643-0900

800-717-3109 763-488-1122

800-451-5078 952-887-0600

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

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

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

autobodynews.com / MAY 2020 AUTOBODY NEWS 25

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Shops Using Downtime Advantageously During COVID-19 Crisis by Chasidy Rae Sisk

As the U.S. strives to prevent the spread of COVID-19, most states have instituted some version of a shelter-in-place order. Many businesses are experiencing a decrease in workload, including collision repair shops and related businesses. While furloughs are happening, experts advise against it, especially in light of aid offered by the U.S. government, including the Paycheck Protection Program (PPP), which provides small businesses with forgivable loans to keep employees paid. Most shop owners are doing everything they can to maintain their employees, including pursuing less traditional schedules and duties. Industry leaders agree that looking for the opportunities within the current situation will help collision repair professionals maintain a more positive outlook and come out in a good position on the other side. “No one wants to face declining car counts and repair volume, but if there is a silver lining to all of this, it does provide an opportunity to focus on how you can improve your business during the downtime,” VeriFacts CEO Farzam Afshar recently said. Improving the business can take a variety of forms, including maintenance, financial and training opportunities. During this period, many shops are using the extra time to clean and sanitize their entire facility. Deep clean the paint booth, change filters, service or upgrade equipment, power wash the building and reorganize to enhance efficiencies to prepare for the day the work starts coming back in the door. Kevin Anderson of Elite Auto Body in Gambrills, MD, has his team gutting the shop, purging junk and painting the floor and walls. At Downingtown Collision in Downingtown, PA, Tim Hedrick is “working because I’m trying to make sure my guys can collect a real paycheck and not unemployment. I’m paying them to do maintenance and sweep and other stuff around the shop.” At Parks Royal Body Works in Boise, ID, the technicians are still

processing their current workload, but after that, Matt Thornton has plans to deep clean the building, convert the booths to LED lighting and replace office carpet. “That should keep them busy for a couple of weeks. We are taking it day by day and keep adjusting our ideas and finances as needed,” Thornton said. “We applied for the PPP, which will really help.” The team at Cocoa Auto Salvage in Cocoa, FL, is employed on special projects like resetting the yard, maintenance and auditing as well. Owner Shan McMillon is also using the

views, which often get deferred due to workload. With the reduction in work, many shops may be tempted to reduce or even eliminate marketing efforts, but successful shop owners disagree with that approach. “If your shops are slow, use this opportunity to put yourself in front of your customers,” said Brian Shaw from Sudden Impact Auto Body & Paint in Salisbury, NC. “I’m not a very good speaker and don’t do well on camera, but right now, at least in North Carolina, our customers are sitting at home scrolling

“No one wants to face declining car counts and repair volume, but if there is a silver lining to all of this, it does provide an opportunity to focus on how you can improve your business during the downtime,” — Farzam Afshar downtime to evaluate her inventory and update settings in her electronic platforms. “I have more time to work on my business, instead of in my business, and I’m trying to take full advantage of that,” McMillon said. DCR Systems LLC is processing paperwork and accounts receivables during the lighter supply of vehicles, according to Marketing Specialist Pam Giarrizzo. “The team is working on ways to communicate with the insurance companies and the customer to try to lessen or eliminate short pays. It just takes more communication with both parties,” she said. “Develop your fully reopen checklist and get to work. ‘Fill the potholes,’ meaning go take care of the little things in your systems and processes that you just always seemed too busy to take the time needed and fix,” said John Hill of The Autotrends in Greensboro, NC. “If your building needs a little paint, it’s the perfect time to freshen things up.” On a recent CIECAst, Mike Anderson of Collision Advice recommended shops analyze their financials to look at areas they can reduce or eliminate. Closing out repair orders, chasing receivables and establishing new accounts may be worth a look, as well as audits and associate re-

Facebook. Try to have fun and stay positive!” At Body Works Plus in Charlotte, NC, Brian Davies has been sending email blasts to previous customers, which generate a 55% return ratio; the day after he sent the first blast, he received a job. He contracted a local marketing company to set up a free valet for customers to have their vehicles picked up and dropped off, sans contact. “We amped up our budget for marketing and started promoting our business on two new radio stations. Last week, I did a Facebook Live about a special we’re offering, and that went really well,” Davies said. “If things slow down, we’ve taken on a project to repair a veteran’s truck, and if it comes to it, we’ll paint the floors and perform maintenance.” “Do not stop marketing. If anything, increase it,” Hill said, recommending shops keep an eye on the future throughout this crisis. “Everyone is a startup now, and it’s a great time to adjust those pay plans you were too timid to address. Get help wanted ads out. We all knew the labor market was too tight with everyone employed, and now, we can get and retain some quality applicants. “It’s going to be a real-life game of musical chairs when people get back to work,” Hill said. “Plan now so you can get the right people lined

up for the right chairs. The hysteria is going to end, and while it may be a little jagged getting to the new normal, I believe that many of us will like it better, ultimately.” Preparing for the future by ordering parts ahead of time, especially in light of staggered deliveries, can be helpful, Anderson recommended. Paul Morro of Morrobuilt in Raleigh, NC, agreed. “Because I work on 40- to 50-year-old British cars, parts supply is critical, and when I received an email from my next-day supplier that they were temporarily shutting down operations, I placed a large hard parts stock order from a different supplier that is still in operation to ensure I can satisfy future customer vehicle repairs,” Morro said. “I normally order as needed, but I wanted to be certain that I’d prepared for whatever the future holds.” Another common practice among shops is revising their employees’ work schedules in some way. “We’re still open five days each

26 MAY 2020 AUTOBODY NEWS / autobodynews.com

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28 MAY 2020 AUTOBODY NEWS / autobodynews.com

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week, but our techs have gone to a four-day workweek, reducing payroll by approximately 20%,” said Stan Creech, from Creech Import Repair Inc. in Raleigh, NC. “During idle time, we clean the shop, paint, update equipment and perform maintenance.” R&N Motor Company, Inc. in Sanford, NC, has emailed its customer base to offer vehicle pickup and dropoff, is focused on sanitization and has begun preparing for equipment updates. “We lost a tech to a government job, but it couldn’t have happened at a better time,” Manager Robert Crawford said. “There’s still enough work coming in to keep two techs going. If we get caught up, they leave an hour or two early, but we still pay them to make up for the lack in billable hours. We are making plans to hire a new tech.” In Little Egg Harbor, NJ, one of the areas of the country hardest hit by COVID-19, John Molinaro of Streamline Auto Body erred on the side of caution. When New Jersey Gov. Phil Murphy implemented a stay-at-home order, Molinaro instructed employees

to follow the order, “although we are essential,” he said. “They have received full pay for the time they are out, and my rent will be paid on time,” Molinaro said. “My customers were supportive in our decision with regards to delays in completing their vehicles, as well as our scheduled customers understanding our decision.” Molinaro didn’t pay his techs without assigning them some work, though. “We used this time to review SOPs and learn new procedures and technology from the products and tools we use,” he said. “Each employee is asked to view two hours of training videos each day, and Collision Hub has been amazing in having videos in one place for my techs to view, offering over 850 videos on YouTube.” Anderson recommended shops take advantage of downtime by reviewing repair guides from the manufacturers they repair and investing in training. Crawford, Davies, Creech and Thornton all have plans to train their teams as well. Often, shops complain

training causes delays in the repair process, but with a lack of workload, this is the perfect opportunity to take advantage of the many virtual training opportunities available. Due to the current situation, many associations and industry supporting companies are providing free resources and training opportunities online. Here are just a few websites offering free or discounted webinars: CollisionHub.com FordHarrison.com ShopMarketingPros.com business.spanesi-americas.com/ youtube.com/user/SCRSCollision youtube.com/user/ButlerCollision rts.i-car.com worldpac.com/training/classes/online/ thepowerofa.org/coronavirusadvocacy/ nada.org/coronavirus/resources/ sema.org/corona-updates/ tstseminars.org/ elitebodyshopsolutions.com/ Although there are many challenges ahead, there are plenty of ideas to help shops keep employees working with a little creativity and positivity. Good luck, and stay safe.

AutoNation to Lay Off 7K Employees, Cut Costs Deeply by Clark Schultz, Seeking Alpha

AutoNation said April 3 it's taking dramatic measures after seeing significant declines in new and used vehicle unit sales, including a yearover-year decline of approximately 50% during the last two weeks. The retailer is placing 7,000 employees on unpaid leave, implementing temporary base pay reductions for associates and freezing all new hiring. Widespread spending cuts are also being initiated. On the financial front, AutoNation discloses it had borrowings outstanding of approximately $790 million on March 31 under its revolving credit facility and about $140 million under its commercial paper program. “Based on those borrowings and the maximum leverage ratio contained in our amended and restated credit agreement, we had approximately $1.1 billion of liquidity, including over $400 million of cash and approximately $700 million of availability under our revolving credit facility,” AutoNation said. We thank Seeking Alpha for reprint permission.

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Hey Toby! with Toby Chess

A Quick Course on Primers Recently, I received a call from a glass blew out, and did not deflect friend who owns a high-end colli- the bag onto a passenger. I hate to sion repair facility in the Los Ange- think about the consequences. les area. I was called to come and look at In June 2019, a 2017 Ford Rap- the truck. tor was repaired at his shop. The I asked the painter how he shop replaced the A-pillar on the prepped the vehicle prior to painting. passenger’s sidewith of the David vehicle. McClune Last He said the body technician sanded December, it rained in L.A. for three the bare aluminum with 180 grit sanddays straight, and the vehicle devel- paper and primed it with epoxy primoped a water leak at the windshield. er. The vehicle was returned to the shop First problem: you cannot just and the glass company that installed sand bare aluminum and think it is the new windshield was called to ready for paint. You need to clean come back and reseal the glass. the bare metal with a stainless steel Everyone was surprised when brush. I use the small “toothbrush” the glass on the passenger’s side post types because they do a better job of did not stick to the A-pillar. What removing the aluminum oxide from Johnfailure. Yoswick we have here iswith an adhesive bare aluminum (See Fig. 1) compared In other words, the adhesive did not with the larger traditional brush. stick to the substrate. Let’s take a look at aluminum Imagine if the vehicle were in- oxide. volved in another accident and the Aluminum oxide (Al2O3) is a airbag struck the windshield and the naturally-forming compound on bare

aluminum. Metallic aluminum is very reactive with atmospheric oxygen and moisture, and a 4-nm passivation layer of aluminum oxide forms on any exposed aluminum surface in a matter of hundreds of a second. This layer protects the metal from further oxidation. The melting point of aluminum is 1,221 degrees Fahrenheit, compared to aluminum oxide, which melts at approximately 3,700 degrees. This oxide layer is much harder than the aluminum and helps the material resist corrosion and abrasion. However, it also acts as an insulator that can create issues during welding, like porosity, as well as during the repair process—body filler adhesion, adhesive adhesion and certain types of primers and finish coats will not stick to it. In the case of the shop’s problem with the windshield, the aluminum oxide and phosphoric acid caused the

adhesive to degrade and not stick to the pillar.

California Autobody Association

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Fig. 1

Remember, use a stainless steel brush rather than a steel brush to prevent galvanic corrosion (See Fig. 2).

Fig. 2

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with David M. Brown Midwest_Issue_0520.indd 31

4/20/2020 6:29:46 PM

As a best practice, clean the area with a good wax and grease remover like Kent Automotive’s Acrysol (Fig. 3).

tached to the vehicle (Fig. 7). Note the strip of gray epoxy primer where the windshield will be attached. After seeing what happened at my friend’s shop, I taught his staff about the various types of primers used in the repair process. It would be beneficial to give the same information here so repairs are done properly, reducing the chance of a comeback or catastrophic failure.

Self etch primer (Fig. 4) uses phosphoric acid to etch the metal. If the acid has not fully dissipated, it will attack the adhesive, which will lead to an adhesive failure. The only recommend primer to be used in this repair is epoxy primer (Fig. 5).

Fig. 3

Fig. 6

I asked the painter to bring over the epoxy primer he was using. It turned out to be self etch primer. Fig. 5

After cleaning the part with the brush and Acrysol, I brushed on a coat of epoxy primer with a foam brush (Fig. 6 showing the process, but not the vehicle in this article) After a 30-minute dry time, the vehicle was ready to be primed and painted. The epoxy primer on the windshield flange is the only coating where the windshield will be at-

Fig. 4

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WTPs are primarily used when MIG or spot welding together two or more panels. The coatings on the inner flanges are removed and the WTP is applied to the bare metal. Allow it to dry prior to welding. It should be noted the primer is cleaned from the hole when MIG plug welding. Also, Fiat Chrysler does not recommend the use of WTPs, preferring spot welding through the E-coat. Remember, E-coat is not electrically conductive, so a shut clamp will be necessary for the first weld (See Fig. 9).

welding, but not when MIG welding. Audi and Ford recommend their WTP and Honda/Acura recommends Kent’s Self Etch WTP. The next category of primers is Direct to Metal Primers (DTM), because they contain an acid that etches into the metal. Self etch primer (Fig. 10) comes in a spray can or quart container that can be sprayed. This primer contains phosphoric acid, which etches the surface, and zinc for corrosion protection. This primer is used over bare metal to provide a solid base for high-build primers and paints. Self etch primers are not used under body fillers, on plastic parts or under seam sealers. To use it prior to applying seam sealer, first allow it to thoroughly dry—the acid needs to be totally evaporated—and follow with some sort of sealer.

Fig. 9

Some vehicle manufacturers do not recommend copper WTPs because in the past, some paint manufacturers were selling the primer, but it did not contain any zinc and would dissolve when cavity wax was applied to mating surfaces. Most of the copper WTPs have been reformulated with zinc added. The zinc WTPs are the most common. Any excess zinc primer on any surface to be painted needs to be removed—paint does not like to stick to zinc. The self-etch WTP uses phosphoric acid to etch the metal and has zinc for corrosion protection. Once completely dry, paint can be applied directly to metal that may have gotten some of the primer. Nearly all OEMs require WTPs. Honda recommends WTP when spot

Fig. 10

A characteristic feature of this process is the primer particles are

Fig. 12

suspended in a liquid medium, migrate under the influence of an electric field (electrophoresis) and are deposited onto an electrode, or in this case, the metal of the vehicle. The final step is to rinse and bake the vehicle, resulting in a smooth finish. We in the collision industry do not have the ability to replace the E-coat the OEM has, but we have a product that comes very close—epoxy primer. Epoxy primer is known as a 2K primer, consisting of the primer and hardener. It can be applied to any rigid metal surface (steel, aluminum, SMC, fiberglass, etc.) It can be applied as a high build primer or reduced to be sprayed on as primer-sealer.

I have my shops mix it up the epoxy primer in a 4:1 cup in the morning (it has an eight-hour pot life) and, depending on the job, I tell the body tech to brush it on with a foam brush as a first option. Dry time is about 30 minutes. For example, let’s say you are replacing upper fender reinforcement on a vehicle, the attached part is welded into place and now the bare metal needs to be coated with primer. In this case, the body tech does it in his stall with the foam brush.

Fig. 13

Note: do not mask the vehicle for primer, and the car does not need to be moved to the paint department.

Fig. 11

Whereas regular self etch primer is not sanded, this product is sandable. The same rules apply to this primer as with self etch primers. Another type of self etch primers is DTM primers. Similar to regular self etch primer, these primers are color coded to match the inner structural panels (rails, aprons, etc. Fig. 13) of a vehicle. You should follow the same rules of use as the self etch primers. The last of the DTM primers is epoxy primer (Fig. 5). Electrodeposition primer is applied to a manufactured vehicle by submerging the vehicle in a container or vessel holding the coating bath or solution and applying direct current electricity through the EPD bath using electrodes. The object to be coated is one of the electrodes, and a set of “counter-electrodes” are used to complete the circuit.

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After about 30 minutes drying time, the vehicle can have seam sealer applied to the welded joints. The tech does not need to go to the paint de-

partment and seal it. (See Figs. 14 & 15) Moreover, Honda released a bulletin in March saying “never apply seam sealers to bare metal and apply 2K epoxy primer to the bare metal.” Toyota states in Collision Repair Information Bulletin (CRIB) #63 to “apply epoxy primer or wash primer over bare metal. Do not apply body filler over bare metal.”

color or clear coat.” Ford, GM and Audi recommend in their repair manuals epoxy primer on bare metal glass bonding surfaces. Finally, Honda said in its March repair news “2K epoxy is to be applied to all bare metal surfaces prior to applying seam sealer, body filler or other refinishing products.”

Fig. 18

Fig. 14 Fig. 17

Fig. 16

Fig. 15

In CRIB #127, it says “body fillers should not be applied to bond surfaces. Epoxy primer applied directly to properly prepared bond surfaces should NOT be refinished with

particular primer has a flex agent added, making it ideal for small plastic bumper repairs.

Furthermore, primer can be applied using a foam or standard brush, small roller or dobber as well as being sprayed on. The last primer is specialty high build primer. A few paint manufacturers have a high build primer (Fig. 16) in a handy spray can for small areas. This

In Fig. 17, the bumper repaired area was sanded and two coats of high build primer were applied in the body department. This primer works great with a short wave infrared light (Fig. 18). The primer was completely dry from the top to the base in less than two minutes, and the total repair was done by the body repair technician. Think of the time saved. I hope this article is helpful to you and your staff.

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Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same by Mark Phelan, Detroit Free Press

The way we buy cars may never be the same, as auto dealers adjust to working under COVID-19 restrictions and customers discover they prefer the new approach, which leans heavily on internet sales and vehicle demos and could include valet-style pickup and delivery service for everything from test drives to oil changes. “This is going to fundamentally change how people view buying a car,” said Rhett Ricart, CEO of Ricart Automotive Group in Columbus, OH, and chairman of the National Auto Dealers Association. “By the end of this year, you’re going to see 80% to 90% of U.S. new car dealers with full e-commerce capability in their shops” to handle everything online but the test drive and—maybe—the final signature, he said. Online deals at Ricart’s domestic dealerships have doubled during the last six weeks, he said. In Michigan, Gov. Gretchen

Whitmer’s extended “stay home” order clears the way for that, after a month when nearly all vehicle sales were prohibited in the state. It allows “workers at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.” Michigan dealers have been hoping and making plans for just such a change. Deliveries could begin as soon as they work out a process that addresses all the legal documents that are part of buying a vehicle. “We’re seeing a fundamental change in the way cars will be sold,” said Doug North, owner of North Bros. Ford in Westland, MI, and chairman of the North American International Auto Show. “This pandemic is going to create some permanent changes.” We thank the Detroit Free Press for reprint permission.

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Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery Assured Performance is taking bold the future. mize the risk of the transmission of action to support our certified repair Since this industry is directly im- COVID-19 for both team members Autobody News recently reached out network. pacted by miles driven and employ- and customers alike. to leaders in the collision repair indus- We’ve created a special ment, people NOT driving Following the municipal, provintry to find out how they are best man- subsidy and stimulus proand forced to stay at home cial, state and federal guidelines for aging the inevitable interruptions to gram for our certified repair will be significant and could health and safety that are local to the “business as usual” during the current providers we hope will help be devastating if the shut- repairers remain paramount during coronavirus restrictions. this COVID-19 pandemic. Increased in the short term and actualdown lasts too long. In addition to sharing their insight ly reinvent and turbocharge In the short term, it is a rates of cleaning frequently touched on how this will affect the industry, their businesses for the long great time for shops to im- surfaces, spaces and property is a they offered some advice to business term. plement new systems, train common directive as well as making Dean Fisher owners and employees. staff and refine their sales, hand sanitizers and disinfectant wipes For immediate relief, we have instituted a payment pro- marketing and production processes. more available to both customers and Farzam Afshar, CEO of VeriFacts gram, discount incentives and ac- We can all be far better businesses employees. Automotive celerated rebate redemption for the coming out of this crisis if we do this VeriFacts Automotive is working cost of certification. As a stimulus, well and execute a smart business Jim Keller, President of 1Colllision closely with our customers, insurers we have introduced a new program improvement plan. Network and OEMs to adapt our practices in to help drive sales and re-engineer 1Collision has addressed our locations these challenging times. as a group in regard to safety precaubusiness operations to save money Dean Fisher, President of CARSTAR We are conducting many of our and manpower. The safety of our customers and team tions by issuing bulletins, holding coaching services virtually to ensure Through an agreement with members is always our first priority, group web meetings and conducting we are keeping our team members Bodyshop Booster, certified net- and we are taking steps to protect the discussions with shops about the ways and the shop employees safe. We are work shops can offer consumers health and wellbeing of our team and they are protecting employees and cusfollowing OEM guidelines and their insurers a hands- customers. tomers. on shop certification visits. We have implemented a num- To help capture traffic to your free estimating and repair Also, we’ve shared tips with process that protects the ber of precautions based on the ad- door, educate consumers on the vehicle our customers about how shop employees, the con- vice of the Centers for Disease Con- disinfecting measures they can take, they can enhance their busisumer and the insurers. trol, the World Health Organization as well as the policies and procedures ness practices to ensure shop The new process com- and other health authorities to mini- your repair facility has implemented. cleanliness, follow social bines photo and remote virdistancing rules and provide tual estimating with a fully Farzam Afshar convenient customer service. documented and/or certified While there will be short-term repair. The process eliminates the declines in repair volume as fewer need for the consumer or the insurer HYUNDAI people are on the road each day, we to come to the shop by using a pickup will see business return to previous and delivery system, centralized aplevels as this challenge subsides. pointment setting with an active cal We may also see daily driving endar and special tools for the shops’ trends increase, as people may be re- websites. luctant to return to air travel, trains These combined with full elecand public transportation. tronic visual documentation will en In addition, people may hold on able consumers and insurers to interto their vehicles longer rather than act with shops in a new and far better investing in a new car, which will way of doing business. translate to more repair needs. Programs like this can save re We always advise shop owners pairers hundreds of thousands of and managers to use the good times dollars each year and save insurers • Experienced Parts Team • Wide Delivery Area to prepare for potential millions. The process is far • Large Inventory • Genuine Hyundai Parts downturns, and to use the easier for consumers and of• We are in the Hyundai Go Genuine™ Collision downtime to productivefers a “hands-free” solution Conquest Program ly plan for the future. This during this time of social is the ideal time to conduct distancing and quarantining. Parts Number: your facility and equipment Consumers do not have to Parts Hours: maintenance, participate in come to the shop and they 8am - 5pm Mon - Fri 24-Hour Fax: employee training, complete will have higher confidence Scott Biggs 773.413.3008 your annual financial review than ever before because of and planning and do your employee the repair documentation. reviews. Our certified repairers’ survival is essential to all of us. It may be the mcgrathcityhyundai.com hyundaiparts@mcgrathcity.com Scott Biggs, CEO of Assured perfect solution for these uncertain 6750 W. Grand Ave. / Chicago, IL 60707 Performance times and become the new norm in Compiled by Stacey Phillips

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In the sales process, especial- ress) and sales volumes. Parts availabilly during a shrinking market, it’s ity will likely become a challenge, with critical to educate consumers about manufacturer supply chains weakening making the proper repair facility internationally and the within the U.S. choice. By using effective sales and Talk to your employees, and most closing techniques, and writing a importantly listen to what they are feelcomplete and accurate repair plan, it ing…be compassionate, and assure will likely be the difference between them they are being heard and you will help in any way you can. Always rebreakeven and a respectable profit. On the financial side, I recom- member, without our employees, there mend managing your numbers dai- is no business. ly; close more sales and manage all Collision business owners must costs, especially labor and parts. be strong, smart, courageous and lead With monthly building their organization by taking payments, whether you are calculated risks. in a lease or a mortgage, Henry Ford once said, have conversations with the “The competitor to be feared bank or building owner to is one who never bothers delay a payment or two to about you at all, but goes help weather the storm. Anon making his own business alyzing all expenses to cut better all the time.” The leadJim Keller costs and being more effier that does nothing will cercient is always a good exercise. tainly lead to failure. Also, grant programs are becoming available on both a federal and Aaron Schulenberg, Executive state-by-state basis, that are potential- Director of SCRS ly beneficial to collision shop owners. The Society of Collision Repair The most critical issues I see for Specialists (SCRS) recognizes many shops are the early reports that have collision repairers are being inunindicated lower claims volumes, which dated with emails and information will mean lower WIP (work in prog- surrounding the current events un-

folding, and many of our members are reaching out trying to understand what it means to their businesses. As an association, we are largely relying on those with specialized expertise to offer guidance, and then finding ways to share that guidance through our free channels of communications. These include Repairer Driven News www.repairdrivennews .com, and a new resource page we have set up: www.scrs.com/covid19 -resources. The resource page is continually updated with information about workplace preparation and help, as well as financial aid and relief to help small businesses and citizens across the U.S. As essential businesses, we know the critical role collision repairers are playing right now for customers and employees. We’ve seen many examples of businesses taking enhanced precautions against COVID-19, ranging from zero-contact interactions with customers at drop-off and pick-up, that allow for adherence to social distancing policies surrounding personal contact. We’ve also seen examples of busi-

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nesses promoting services to “clean,” “sanitize” or “disinfect” customer vehicles. SCRS urges caution with the language used in your promotion of services. For instance, your facility can assure that you “apply disinfectant,” but there is no testing protocol to ensure that you “disinfected” the vehicle. In our interaction with other industries, this has been a repeated caution; describe only what you performed, rather than a promise of what it accomplished. The information is constantly evolving, the situation changing, and the best advice we can offer is to make ample use of the resources available to you to stay abreast of the current events. But most importantly, remain positive. We are an industry that fixes broken, seemingly unfixable incidents every day, as we restore safety and peace of mind after unexpected tragedy. While the conditions are unchartered territory for us all, as an industry we will find our way through to the other side, using our professional experience to serve the motoring public as they turn to us in their time of need.

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Hyundai Parts Dealers: 40 MAY 2020 AUTOBODY NEWS / autobodynews.com

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ Even before the coronavirus outbreak, I was telling shops I work with a renewed focus on “capture rate” was increasingly important. Now it’s become critical. Here’s why: Look at any reliable source of claims counts in the U.S. over the last couple of years, and you’ll see they are declining. The increasing number of vehicle on the road with advanced driver assistance systems (ADAS) is reducing accidents. Not by a lot, and it varies a bit by region, but by about 2 to 4% a year overall, most analysts agree. That might not be particularly noticeable—yet. I think it has been masked by shops feeling like their sales increased in recent years, but that’s because severity has been getting higher. The ADAS impact on claims count has also been offset until recently because low unemployment and low gas prices were keeping more

vehicles on the road for more miles. But we’re a little bit like the frog in that old analogy: Put a frog in a pot of boiling water, and it will jump out. But put it in a pot of tepid water and only slowly bring up the temperature, and the frog will boil to death. Similarly, a 2 or 3% decline in claims counts each year might be easy to ignore, but in five or seven years, you’re going to be wondering why the water around you has gotten so hot. So now, and especially in response to this pandemic, we have to get back to the fundamentals, including focusing on capture rate, something most of us did when we were first in business. You need to convert more of your potential customers into actual repair orders. How do you do that? How about following up on estimates written? If a customer gets an estimate but

doesn’t schedule the job, call them the next day, then three days later, then five days after the estimate. One of the major clients I work with said those type of follow-up calls are helping them capture 20% of those jobs that weren’t scheduled at the time of the estimate. That’s a big deal. The pandemic and work slowdown has shops following up like never before. I talked to a shop in late March who told me, “We’re following up on estimates we wrote a year ago.” The reality is all shops should have been doing that type of follow-up all along. Another thing you should be doing: Monitor where your work is coming from. Most management systems can help you do that. Unfortunately, I look at many shops’ “referral” or “source” reports and see just generic categories like “insurer” or “internet”

or “dealer.” That’s not good enough. Capture your source information in detail. Let’s say you’re a direct repair shop for ABC Insurance. If you run the source report and see you repaired about 20 cars a month through DRP claims paid for by ABC, and now you’re only doing 15 a month, you need to get proactive and find out why. You can also track how many claims were paid for by various insurers through a “Body Shop Scorecard” report available through Enterprise. It shows you by insurance company how many of your customers were in an Enterprise rental while their vehicle was in your shop. If you are seeing fewer rentals covered by a particular insurer, find out why. Don’t just list “dealer” as a source; identify which dealer. Again, if you see a decline in those referrals, See ‘Capture Rate’, Page 45

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with Erica Schroeder

Industry Insight

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

with John Yoswick

Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software

Shop Showcase

The economic fallout from the coro- ten save money by shipping multiple navirus pandemic is likely to be felt airbags in a single box, or by skipworldwide, and that has law enforce- ping the hazardous material label. with Ed Attanasio ment bracing for almost inevitable Shops concerned a part they reuptick in crime, including illegal busi- ceived may be counterfeit should conness activity. tact the National Intellectual Property Shops should take a number of Rights Coordination Center (IPRC) measure to avoid perpetuating—or (www.iprcenter.gov), part of the U.S. Immigration and Customs Enforcefalling victim to—criminal activity. Anti-Counter The Automotive with Ed Attanasio ment and the U.S. Department of feiting Council (A2C2), a coalition Homeland Security. of 11 automakers, is reminding shops How can shops best avoid purto avoid counterfeit airbags and other chasing or installing counterfeit parts? automotive parts. The first step is to know your Dee Pagdilao, of American Hon- parts supply chain, Abe Jardines of da, said A2C2 offers a visual guide to the IPRC said. some of the mostwith common Edindications Attanasio “My first job when I was 17 that a part may be counterfeit, includ- years old was delivering parts to auto ing labels that don’t match one anoth- shops in New Jersey for a local car er (such as two different part numbers dealer,” Jardines said. “Every guy at on the same package) or that cover those body shops knew me by name, other labels; labels with conflicting and I knew them by name. The next information (“made in Thailand” and time my mom needed a body shop, with Ed Attanasio “made in Japan”); or, most commonly, I could call that guy up and say my labels with odd misspellings of such mother is coming in. I knew who I common words as Ford. trusted. Genuine automaker airbags are “That was knowing the supply shipped one per box, with a “Class chain. The internet kind of changed 9” hazardous material label, Pagdi- that. As great as the internet is at conwith Stacey lao said; counterfeiters, however,Phillips of- necting people that are good, it’s also

really good at connecting people who are bad with those who don’t know the other person is a bad source,” Jardines said. “But at the end of the day, it all comes down to knowing your supply chain. If you can trust your supply chain, if you would put a part (you buy from a source) on your own car, we can’t ask for anything more from you.” Authorities caution parts aren’t the only automaker product subject to pirating. Shops buying an aftermarket scan tool should determine whether the tool maker licensed the needed information from the automaker, or just “reverse-engineered” it by putting an OEM scan tool on a vehicle and using monitoring equipment to determine the diagnostic routines to essentially copy. Greg Potter of the Equipment and Tool Institute said it’s safe to say every manufacturer of aftermarket scan tools reverse-engineers to some degree. “Even if you are given all the great data that you (license from) the OEMs, you still have to implement

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How can a collision repairer know an tool maker has integrated the test you aftermarket scan tool will adequately need,” he said. with Stacey Phillips emulate the OEM tool? But Seyfer also acknowledged “Well, that’s the big challenge. aftermarket scan tool makers in genYou really can’t,” said Donny Seyfer eral have focused on the mechanical of the National Automotive Service repair segment of the market and Task Force during a panel discussion won’t necessarily know what the colearlier this year at the Collision Indus- lision industry needs until the industry with try Conference. “UntilStacey you havePhillips it in conveys it. your hands and plug it into the car, Scott Brown, a founder of Diagyou don’t know if it works or not.” nostic Network, an online community Seyfer said he thinks that’s why designed to provide resources and the collision industry is largely de- support for diagnostic technicians, faulting to OEM scan tools (or to using said aftermarket scan tools in some scanning service providers that use cases offer more functionality than with Stacey Phillips them.) OEM tools, particularly on vehicles that “I’m not saying that’s necessar- are a few years old. OEM scan tools ily the right solution, because unless don’t always display data in a format you’re working on (a vehicle) that’s re- that is most helpful to technicians. ally, really new, you have a pretty good “A lot of times, the aftermarket chance that the (aftermarket) scan tool companies listen and end up fix-

ing that, providing a way to display the data in a way that (best helps shop technicians find) the diagnostics needed,” Brown said. Greg Potter of the Equipment and Tool Institute agreed. “The automakers do a good job developing diagnostics for next year’s vehicles, because they have to. That’s their job, their focus,” Potter said. “But some of them don’t do a real good job in upgrading or enhancing diagnostic software that is a couple of years old. They move on to developing stuff for the future. But for the aftermarket, that’s their sweet spot. They focus on collecting information and enhancing software as they learn how people are using it, learning what the weaknesses are and correcting those issues.”

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those features and functions into your aftermarket tool,” Potter said. “You have to validate and verify that that tool is doing what it’s supposed to do. How do you do that? You get the OEM tool, you send a command, you see what the reaction is, you monitor that traffic, and then you take your tool and you do the same thing. “That’s your validation effort, back and forth. That can certainly be called reverse-engineering. You are monitoring the messages from the OEM tool and making sure your tool does the same thing and gets the same responses back.” But Donny Seyfer of National Automotive Service Task Force (NASTF) said it’s not really that type of “professional” reverse-engineering that is a problem. “It’s the, ‘How can we steal the software off the OEM tool and then sort of implement it into our own tool, and then sell it, in some cases representing it as an OEM tool,’ that’s the problem,” Seyfer said. “In some cases, they’re not even taking the (OEM tool) copyright information off. As you use it, you see that and say, ‘Huh, that’s not even the brand of the tool I’m using.’” Seyfer that type of piracy undermines the companies producing both OEM and legitimate aftermarket tools. “So if you buy those (pirated) tools just to save a few hundred bucks, and those other (legitimate scan tool) companies keep raising the prices because they’re spending all their time going to court (to fight the piracy,) now you’ll understand why,” Seyfer said. “Customs and border patrol snags these things constantly, by the case load. Truck loads in some cases.” Jack Rozint of Mitchell International said his company’s software similarly gets pirated, and he said that the same online sources where that pirated software is being sold also often offers knock-offs of automaker scan tools for sale. www.autobodynews.com

with Victoria Antonelli

42 MAY 2020 AUTOBODY NEWS / autobodynews.com

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First Funding for Small-Business Loans Depleted, Second Round Just Approved by Rick Barrett, Milwaukee Journal Sentinel

A $349 billion coronavirus loan program for small businesses has run out of money less than two weeks after it was launched, the U.S. Small Business Administration said April 16. An extension was passed April 21. The Paycheck Protection Program, part of the Coronavirus Aid, Relief and Economic Security Act passed by Congress in late March, is aimed at helping businesses meet payroll. As long as they keep their employees—or rehire those laid oﬀ —the loan amount covering eight weeks of paychecks can be forgiven. Wisconsin ranks 10th in the nation in both approved PPP loans, 31,702, and approved dollars, nearly $7.3 billion as of Monday, according to the SBA that’s made the federal program available to businesses

Bob Roden combines a field of winter wheat on his family’s farm, Roden Echo Valley LLC, in the West Bend area. They milk 700 cows on any given day and have 1,800 acres of corn, soybeans, winter wheat and alfalfa that they cultivate. Credit: Michael Sears, Milwaukee Journal Sentinel

with fewer than 500 employees. Nationwide, 70% of small businesses surveyed by the National Federation of Independent Businesses said they at least tried to apply for PPP money. However, many applications could not be processed because of overwhelming demand and now the initial round of funding has dried up. On its website, the SBA now says the agency is unable to accept new applications based on a lack of available funding. The Treasury Department says by law it will not be able to issue new PPP loan approvals due to the lapse, putting a pause on the program that’s become a lifeline for millions of businesses. The loans have been dished out

on a first-come, first-served basis. As of Thursday morning, the SBA said it had approved roughly 1.6 million applications for more than $339 billion in loans since the program was launched April 3. “The money running out has been a big fear that drove a lot of people to apply,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. For some businesses, the program was too good to be true. “There was this understanding that the government was going to help any business with eight weeks of payroll. But when you start working through the details, you have to be operating right now with a full, normal payroll … and with the governor’s shelter-at-home order in Wisconsin, it’s effectively closed businesses like bars and hair salons that don’t have a payroll right now,” Poels said. There have been delays in getting the money out and some banks and credit unions haven’t had the closing documents or systems in place to make the transactions. “I liken it to trying to put a firetruck through a garden hose. You literally had, overnight, thousands of lenders who didn’t have access to the SBA system all trying to get access at once,” Poels said. The Trump administration has asked Congress, which set the program’s original ceiling, for another $250 billion, although that request has stalled in the Senate. Late on April 15, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza issued a statement noting the historic demand for loans and pleading for Congress to pass additional funds for the program. “The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time,” they said. “We urge Congress to appropriate additional funds for the Paycheck Protection Program — a critical and overwhelmingly bipartisan program.” Democrats have demanded that in approving more money for the program, Congress should also pass more funds for hospitals and state and local

governments. They also want to bolster food stamp beneﬁts and mandate some of the funds go to businesses owned by women and minorities. Republicans, on the other hand, have pushed for this money to be approved without any additions or mandates, arguing it’s the only program at risk of evaporating thus far. A breakdown of the PPP loans on SBA’s website showed that, as of Monday, the average loan size was $239,152, and 70% of the loans were for $150,000 and under. Construction companies were approved for the largest share, nearly 14%, or $34 billion. In second place were companies that provide professional, scientiﬁc and technical services, with 12.3% or $30.35 billion. Manufacturers were in third place with 12.25%, or $30.32 billion. Thousands of businesses are still awaiting word on their loan applications. “There were a lot of technical problems early on. And there have been communication problems. Some individuals applying for money never

knew whether they were approved or not,” Poels said. As word leaked out this week that the PPP funding was nearly gone, one Wisconsin bank had 24 loan processors working through the night processing as many applications as they could, said Eric Skrum, communications manager for Wisconsin Bankers Association. If your application wasn’t submitted before April 15’s cutoﬀ, don’t throw out the paperwork. “I would hold on to it. Then you’re prepared so that if Congress does in fact move forward and fund the program again, you will be that much further ahead,” Skrum said. Still, for a program of this size rolled out quickly, it’s gone quite well, said Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce. “I think the federal government worked with great speed, but with that comes haste and not a perfect delivery system to get this into the economy,” Sheehy said. He likens the PPP loans to the

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44 MAY 2020 AUTOBODY NEWS / autobodynews.com

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$1,200 coronavirus checks that should be showing up in the mailboxes of individuals soon, and the $600 in weekly federal unemployment money that is supposed to be coming. “Those individual and business lifelines are critically important … The severity and speed of the COVID-19 impact on the economy is unlike anything we’ve seen,” Sheehy said. Some Wisconsin businesses say the application process went smoothly enough for them. “I thought it was amazingly simple,” said Eric Isbister, CEO of GenMet, a metal fabrication company in Mequon that employs 46 people. “When I bought this business 20 years ago, we had an SBA loan with paperwork that was inches thick. This was much quicker,” he said. Keefe John, president and CEO of Ethoplex, a Germantown internet service provider, said he received approval on a PPP loan in less than a week. It helped, he said, that he already had a relationship with an SBA-approved lender. “We just wanted some extra working capital to help us out during uncertain ﬁnancial times. We will use

it to retain our employees and give people sick leave if they get the virus. I think small businesses need to do everything they can now to survive and remain competitive,” John said. His company currently employs 10 people. “We are actually looking to hire more now. We’re seeking technicians to do customer installations in southeast Wisconsin,” he said. Bob Roden, a dairy farmer from West Bend, said Wednesday he was waiting to hear whether his PPP loan was approved. He and his family milk about 700 cows and grow corn, beans and wheat on 1,800 acres. They have nine employees. Roden said his milk and grain prices have been sinking, with no bottom in sight as coronavirus wreaks havoc on the global economy. “The loan is going to help, but it’s a band aid not the answer,” Roden said.

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‘Capture Rate’ you can look into whether there’s been some change at the dealership. Maybe there’s a new general manager or service writer who is sending work to his buddy’s shop down the street. Similarly, don’t use a generic source as “internet.” Indicate whether that customer found you through your social media, your shop website, an OEM shop locator, etc. Another way to monitor and improve capture rate for direct repair shops, or those who receive “open assignments” through an information provider, is tracking the metric of “assignment received to estimate start date.” This report shows you how much time on average passes between when your shop receives an assignment and when you begin to write the estimate. Often when a shop tells me they need more work, we’ll check out their assignment-to-estimate metric and see it shows it’s taking them ﬁve or six days after getting an assignment to get that customer’s estimate

started. Those shops don’t need to be attracting more work; they need to be getting on assignments in a more timely manner. Capture rate will also increase in importance if something leads to an increase in the rate at which consumers are shifting to newer cars with more ADAS. That might seem hard to fathom with the slow-down in car sales we’ve seen. But that decline might at some point prompt some sort of “cash for clunkers” federal incentive to attempt to revive new car sales. The good news in such programs for shops is that newer cars are more likely to be insured and thus repaired after an accident. But it could also push a lot more ADAS-equipped cars onto the roads. That could mean the annual decline in claims could jump to 5 or 7 or 10% a year. So we all need right away to start refocusing on basic best practices, like improving capture rate. Because it’s going to be much more competitive for claims. The water around us is going to start heating up, and we can’t wait too long to respond.

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When you repair a BMW, use the parts that are identical to those used in Series production – and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation. ©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. autobodynews.com / MAY 2020 AUTOBODY NEWS 45

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Call or e-mail now for rates: 800-699-8251 or ltedesco@autobodynews.com 46 MAY 2020 AUTOBODY NEWS / autobodynews.com

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d el?

line nline

600

Why You Should Keep Advertising During a Major Market Downturn Businesses nationwide are taking a hard hit due to the Covid-19 pandemic, and the print media industry is no exception. Often times during an economic crisis, businesses may end up cutting marketing expenditure in an effort to save money. However, history tells us that cutting advertising budgets during a downturn can actually hurt your business long-term as opposed to helping it. Forbes gives us a list of several different brands who benefitted by maintaining their marketing budget during an economic downturn. Here are their stories. Kellog’s Cereal Brand In the 1920’s, Post Foods Cereal brand was the category leader for ready-to-eat cereal. During the Great Depression, Post cut back on their advertising budget while Kellogg’s Cereal Brand doubled their advertising spend, investing in radio and introducing a new cereal called Rice Krispies, featuring “Snap, Crackle, and Pop.” Kellogg’s profits grew by 30% resulting in the company becoming the

category leader, a position it has maintained to this day. Toyota Corolla The 17-month recession of 19731975 was triggered by the energy crisis. In late 1973, the U.S. government issued its first miles-pergallon report in which Toyota Corolla was second to Honda Civic in fuel efficiency. Since Toyota was experiencing strong sales, when the economic downturn hit, the temptation was to drop their ad budget, which they resisted. By adhering to its long-term strategy, Toyota surpassed Volkswagen as a top imported carmaker in the U.S. by 1976. Taco Bell and Pizza Hut In the 1990-1991 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%. Amazon

Amazon sales grew by 28% in 2009 during the “great recession.” The tech company continued to innovate with new products during the slumping economy, most notably with new Kindle products which helped to grow market share. As a result, in the minds of consumers, Amazon became an innovative company by introducing a lower cost alternative to cash-strapped consumers. While the temptation now may be to cut back on advertising, you may want to reconsider. Instead, redirect your brands’ message to match the current economic climate but be careful with the type of message you put out there, especially during these fragile times. Covid-19 has impacted many individuals on a personal level, and you don’t want to risk coming off as insensitive or exploitative. Whatever your message may be, it’s best to keep a positive, inspirational and helpful tone. Sources: Forbes – When A Recession Comes, Don’t Stop Advertising, By Brad Adgate

Ford Tests Social-Distancing Wearables by Yoel Minkoff, Seeking Alpha

Ford is experimenting with wristbands that vibrate when employees come within 6 ft. of each other as part of a broader array of new safety protocols.

The devices could be deployed more widely once the carmaker reopens its idled manufacturing plants. Ford is also expected to subject all workers entering a facility to a thermal-imaging scan and will provide staff with masks and, in some cases, plastic face shields. We thank Seeking Alpha for reprint permission.

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48 MAY 2020 AUTOBODY NEWS / autobodynews.com

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