May 2021 Midwest Edition by Autobody News

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Elon Musk Shares Update on Tesla’s In-House Collision Repair and Insurance Efforts by Maria Merano, Teslarati

Tesla CEO E lon Musk recently stated Tesla is building up its collision repair capabilities. He added Tesla Insurance would ensure collision repairs would make the experience smoother for customers. “Tesla is building up collision repair capability to help address the grief that you went through, but usually insurance companies make you go [ to] their ‘ approved’ collision repair partners. Tesla Insurance will make it smooth sailing,” Musk tweeted in response to a tweet from “Everyday Astro-

naut.” After Tesla Model 3 owner and SpaceX enthusiast Everyday Astronaut received his car from a Tesla certified body shop, he noticed the driver’s side mirror wasn’t working, and a loud whistling noise came out of his windshield. A Tesla Mobile Service technician fixed the side mirror and windshield in minutes. In 2018, Musk announced Tesla was bringing collision repairs in-house. He noted outside firms were taking too long on repairs, and it was “driving Tesla owners (and us) crazy.” Musk shared Tesla was aiming to complete repairs See Musk Shares Update, Page 6

Automakers Could Make 1.3 Million Fewer Vehicles Because of Semiconductor Shortage by Todd Spangler, Detroit Free Press

A trade group that represents automakers said a semiconductor shortage caused by CO VID-19 could result in 1.28 million fewer vehicles being made in the U .S. this year. In comments sent April 5 to the Commerce Department, the Alliance for Auto Innovation said a recent survey done of automakers and supplies indicated the shortage could hurt auto production for another six months. “The chip shortage has forced a number of automakers to halt pro-

duction and cancel shifts in the U nited States, with serious consequences for their workers and the communities in which they operate,” wrote J ohn Boz z ella, the group’s president and CEO . The Auto Alliance represents most major automakers doing business in the U .S., including General Motors, Ford and Stellantis. President J oe Biden in February directed the Commerce Department to review risks in the supply chain, including the pressures put on industry by a global semiconductor See Semiconductor Shortage, Page 14

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President Biden’s $174 Billion EV Package Broken Down Dollar by Dollar by Joey Klender, Teslarati

President J oe Biden’s $ 174 billion aid package for electric vehicles has been broken down in an email sent by oﬃcials from the U.S. epartment of Transportation. Biden’s plan to increase EV production and adoption across the U .S. is fueled by the massive spending package that aims to woo car buyers away from gas-powered engines, favoring electric cars instead. The $ 174 billion package can be broken down into several categories of diﬀerent spending allocations.

The largest is the consumer rebates portion of the package, accounting for $ 100 billion of the $ 174 billion package, Reuters said. The rebates would be a signiﬁcant boost to U .S. automakers, especially ones like Tesla and General Motors, who cannot oﬀer , rebates when a vehicle is purchased. Previous limits axed the EV tax credit after manufacturers sold 200,000 electric cars. The reintroduction of the $ 7,500 tax credit would undoubtedly convince some car buyers to consider all-electric options, bringing down See $174 Billion EV Package, Page 15

Sales of Electrified Vehicles Jump Up 81% in the First Quarter of 2021 According to an analysis of the U .S. auto market by Cox Automotive and Kelley Blue Book, sales growth of both electric and hybrid vehicles outpaced overall market performance in the first uarter of . Electrified vehicles—automobiles featuring large battery packs and electric motors in the propulsion system—accounted for 7.8% of the total U .S. market, up from 4.8% in Q 1 . Electrified vehicle sales growth of 81% far outpaced industry growth. Sales of electric vehicles (EVs)—battery only—grew by 44.8% year over year, reaching nearly 100,000 sales in the quarter, a record. Sales of hybrid vehicles outpaced both the market and EVs, doubling to more than 200,000 in the quarter. The overall automobile market increased by 11.4% in Q 1. The EV market continues to be dominated by Tesla, which sold an estimated 6 9 ,300 vehicles in Q 1 and remains the only significant automaker in the U .S. with an EV-only lineup. Tesla accounted for 71% of total EV sales in the quarter, down from 83% share in Q 1 2020.

The new Tesla Model Y is the best-selling EV in the U .S., followed by the Tesla Model 3. The Model 3 was the No. 1 best-selling EV in 2020, but sales in the U .S. market declined by more than 50% year over year in the first uarter of . The Chevrolet Bolt was No. 3 on the EV list, with nearly 10,000 sales in the quarter. The all-new Ford Mustang Mach-E, which went on sale in December, was No. 4, outselling both the Tesla Model S and Model X . While sales of EVs are increasing, hybrid sales are increasing more quickly, according to the Cox Automotive analysis. Sales of hybrid and plug-in hybrid vehicles jumped by 106 % in Q 1. Toyota, a hybrid pioneer, delivered most of that growth, selling , electrified vehicles in , up from 49 ,576 in Q 1 2020. Nearly 25% of new Toyota vehicles are now hybrids. The Toyota RAV4 Hybrid is now the best-selling hybrid in the U .S., with sales of 32,26 3 vehicles in the first uarter. The new Toyota Sienna minivan, which is available excluSee Jump Up 81%, Page 10

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CONTENTS AASP-MN Announces First In-Person Meeting Since Pandemic ..............................................6 Former HP Head Whitman, NBA Exec Tatum, Named to Diverse GM Board ...........................8 Gateway Bronco Announces Auto Tech

Collision Repair and Insurance Efforts .............1 Erie Insurance National Survey: Americans Eager to Take Road Trips in 2021 ..................46 EV Market Declined in 2020, But Less

College and Carroll Shelby Automotive

Behind the Wheel ..........................................44

Booked Times .................................................8 Lexington, NE, Planning Commission Approves Levander’s Body Shop Redevelopment Plan ..10 Navy Veteran Gifted Car by Topeka, KS, Body Shop, Farmers Insurance........................6

Gerber Collision & Glass Acquires Repair Center in Milwaukee, WI ...............................15 GM Airbag Investigation Launched After Injuries .........................................................22 GM, LG Energy Solution Investing $2.3 Billion in 2nd Ultium Cells Manufacturing Plant in U.S............................................................14 Government Investigates Passenger Airbag

COLUMNISTS Anderson - Have We Handcuffed Employees from Providing Extraordinary Customer Service? .......................................................26 Phillips - How a Shop Owner Enhanced Employee Culture While Providing Outstanding Service During COVID-19 ..........................................40 Sisk - ASA Bonus Webinar Explores Value of Return to Work Programs ..........................36 Sisk - WIN Webinar Explores What’s NEXT for Auto Body in the Digital World ..................34 Yoswick - Deciding Between Leasing and Purchasing When Adding Shop Locations ......28

Recalls..........................................................45 Hyundai Santa Fe SUVs Recalled for Airbag Problems ......................................................36 Kia Recalls 2021 Telluride, K5, Forte to

Las Vegas Ready to Welcome 2021 SEMA Show ............................................................42

By Early 2030s .............................................43 New Vehicle Inventory Continued to Dwindle in March: Edmunds .......................................47

President Biden’s $174 Billion EV Package

Excellence ....................................................22 Sales of Electrified Vehicles Jump Up 81%

Vehicles Because of Semiconductor Shortage .1

in the First Quarter of 2021 .............................1

Axalta to Host Virtual Capital Markets Day .........47

SEMA Scores State Legislative Victories ............44

California Autobody Assn. Supports AB 471 for

Teens Who Get a Driver’s License at 16 Will

Glimpse of the ‘New Normal’.........................38 Combat the Tech Talent Crisis with CREF...........20 Cox Automotive March Forecast: U.S. Auto Sales Pick Up Pace Heading into Spring ........42 Elon Musk Shares Update on Tesla’s In-House

Kia Wholesale Parts Dealers ............................ 41

Audi Wholesale Parts Dealers .......................... 35

Laurel Auto Group of Westmont ....................... 23

AutoNation Collision Part ................................... 2

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

BMW Wholesale Parts Dealers ........................ 39

Luther Bloomington Acura-Subaru .................. 21

Car-O-Liner....................................................... 9

Luther Kia of Bloomington ............................... 26

Car-Part.com .................................................. 15

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

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

MINI Wholesale Parts Dealers.......................... 38

Classic BMW MINI........................................... 10

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

Classic Chevrolet ............................................ 29

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

Classifieds ...................................................... 46

Patrick Hyundai............................................... 26

Columbia Hyundai ........................................... 20

SATA Dan-Am Company .................................. 13

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

Sears Imported Autos, Inc ............................... 28

Ford Wholesale Parts Dealers .......................... 36

Shaheen Chevrolet Parts Warehouse ............... 27

Gandrud Parts Center...................................... 19

Sherwin-Williams Automotive Finishes .............. 7

GM Wholesale Parts Dealers ........................... 37

Spanesi Americas ........................................... 48

Hawkinson Kia ................................................ 22

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

Honda-Acura Wholesale Parts Dealers .......24-25

Subaru Wholesale Parts Dealers...................... 43

Hyundai Wholesale Parts Dealers .................... 45

Sunmight USA ...........................................16-17

Insta Finish .................................................... 11

The Sharpe Collection of Automobiles ............. 33

Kelly BMW ...................................................... 34

Willis Volvo...................................................... 26

Record-Breaking 78 AutoNation Dealerships

asTech Acquires Red EU & Red Autocentres ......47

CCC’s 2021 Crash Course Report Offers a

American Icon Automotive Finishes ................. 18

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

Nominations Open for NABC Awards .................43

Certified as J.D. Power 2021 Dealers of

Accountability, Accessibility, Transparency .....32

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

MINI Will Switch to Fully-Electric Vehicles

ASE Launches Redesigned Website...................32

Automakers Could Make 1.3 Million Fewer

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

Protect Kids ..................................................46

Broken Down Dollar by Dollar .........................1 NATIONAL

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Farmers Insurance Finds More Than Half of Drivers Admit to Using Cell Phones While

Illinois Bill Would Bring Parity to Repair

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AUTOBODY

than Overall ..................................................35

Scholarship for Students at McPherson

Program .......................................................12

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Cost Their Families Over $33,000 .................43 Tesla Owner Involved in $100K+ Legal Battle as Parking Garage Blames Autopilot for Model 3 Crash ................................................4 U.S. Auto Industry Pushes Biden to Move Forward with EV Adoption Plan........................4

Kia of Lansing ................................................. 12

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Tesla Owner Involved in $100K+ Legal Battle as Parking Garage Blames Autopilot for Model 3 Crash by Simon Alvarez, Teslarati

A Tesla owner has found himself in the middle of a battle worth more than $ 100,000 in property damages after his Model 3 Performance crashed while being driven out of a valet parking garage. Despite being in the right and having the evidence to back up his claims, the Tesla owner has ended up in an uphill battle that could last for some time. It was supposed to be a routine process. After having his Model 3 parked at a multi-story garage, the Tesla owner asked for his vehicle to be returned. A valet then went on to retrieve the Model 3 from its parking spot. A Teslacam video of the valet driving the vehicle showed everything seemed normal, despite the parking garage employee driving a bit fast in such a cramped space. Moments later, the Tesla owner was shocked as part of the parking garage’s second-floor walls came crashing into the sidewalk below. Images taken by the owner after the incident revealed a vehicle had been partly pushed through the parking garage’s brick walls. Fearing the worst, the Tesla driver ran up to check on the valet and his Model 3. hat he saw confirmed his fears. Smashed against two vehicles was his blue Tesla Model 3 Performance, its front end crushed as it collided with other parked cars. As the valet stumbled out of the Model 3, he promptly claimed the Tesla suddenly engaged Autopilot and drove itself into the other vehicles. The valet was not joking. While those inexperienced with Tesla’s tech may find it easy to blame Autopilot to avoid accountability when something terrible happens, those familiar with the driver-assist

system know Autopilot could not be engaged in a number of places. O ne of these is, of course, a multi-story parking garage. The Model 3 owner then knew something was amiss when the valet told him Autopilot suddenly drove the Tesla into the other vehicles. The parking garage company claimed innocence by stating the incident was caused by “unintended acceleration” on the Model 3’s part. The company refused to budge, and the Tesla owner decided to ﬁght all the way. Being familiar with how Tesla stores its vehicles’ data, the Model 3 owner decided to gather so much evidence that there will be no way his insurance company could lose the case. In cases such as these, which involve a party claiming unintended acceleration through Autopilot, it is always best to have a Tesla’s Event Data Recorder (EDR) report. The EDR is like the car’s black box, recording everything that has happened in the vehicle. Everything, from the driver’s weight, the vehicle’s speed, which pedals were pressed and how far they are pressed, could all be determined in the EDR report. The Model 3 owner then contacted Tesla for help in retrieving his car’s records. Much to his chagrin, Tesla refused, citing legal reasons because he lives outside of California. In a statement to YouTube channel Wham Baam Teslacam, the Model 3 owner remarked he is not really sure why Tesla refused his request, though he thinks if it were his lawyer who contacted the electric car maker, the results would have been diﬀerent. Disappointed but not deterred, the Model 3 owner ended up hiring an EDR technician to retrieve his Tesla’s report. The move cost him

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$ 1,300. The EDR report was damning. A look at the data from the Model 3 showed the valet was not even wearing a seatbelt while operating the Tesla. The vehicle was also moving reasonably fast for a car being driven out of a multi-story parking garage. But even more importantly, the EDR showed the valet had applied 100% pressure on the accelerator and 0% pressure on the brake pedal all the way up to the crash. With this data, the Model owner ﬁgured he could ultimately prove the parking garage’s unintended acceleration claim was untrue. But despite the mountain of evidence provided by the EDR report, the parking garage company decided to dig their heels in the sand and stand by their claim of unintended acceleration. The Model 3 owner’s insurance company has paid out on the multiple claims for the damages that resulted from the incident and has pledged to reimburse him

after litigation is finished. ut that process could take quite a while. The incident resulted in $ 24,000 worth of repairs to the Model 3 Performance. Adding on the damage to the other vehicles involved in the incident and the damage to the building itself, the total cost of property damage from the crash is estimated to be far beyond $ 100,000. U ltimately, the Tesla owner’s experience with the parking garage highlights two notable things. O ne, parking garages and valets should know it’s tough to lie about what one does in a Tesla since data from the E would most definitely show the truth. And second, Tesla’s service has a lot of space for improvement, so owners who approach the company for help after such a harrowing, aggravating incident would not be turned away. An EDR request, especially one by an owner involved in an accident, is better off approved, after all. W e t h a n k T es l a ra t i f or rep ri n t p erm i s s i on .

U.S. Auto Industry Pushes Biden to Move Forward with EV Adoption Plan by Steven Loveday, Inside EVs

Large automakers, related companies and the U nited Auto Workers (U AW) made specific re uests to the iden Administration recently in a sixpage letter. The letter, dated March 29 , asked for a push forward related to tax credits and incentives for the future of the EV industry. President J oe Biden has been talking about his $ 3 trillion infrastructure plan, which aims to speed up EV adoption in the U .S. by pulling a number of levers. If the plan plays out as proposed, it will include electric car tax credits, EV charging infrastructure build-out and much more. According to Reuters, via Autoblog: “As a candidate, Biden pledged to invest $ 2 trillion in infrastructure spending, including fixing highways, bridges and airports; encouraging fuel-efficient vehicle manufacturing and installing 500,000 EV charging stations. The letter noted there are currently 100,000 public charging outlets nationwide.” ith several automakers officially announcing plans to go “all in”

on EVs, Biden’s plan, if passed, will help alleviate their previous apprehension. It has been proven for years that electric cars are difficult and expensive to produce. Legacy automakers fear losses going forward; with the help of the federal government, it could be a huge win-win situation in the future. The letter points out there are 278 million passenger vehicles currently registered on our shores. O nly 1.5 million are electric cars. EVs account for only 2% of vehicle sales in the U .S. today. “To fully transition is going to require an enormous effort across the economy in every sector,” said J ohn Boz z ella, head of the Alliance for Automobile Innovation. The letter highlights the need for a comprehensive plan based on reality. It points out in the current situation, there’s no way EV adoption can find success in the near term, and the possibility of transitioning to carbon-free transportation is not going to happen without a major change in policy and governmental support. W e t h a n k I n s i d e EV s f or rep ri n t p erm i s s i on .

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Continued from Cover

Musk Shares Update within the same day or in under an hour. Having Tesla Insurance coordinate with the company’s in-house collision repair facilities would make the repair process more streamlined and convenient for EV owners. This could be a notable advantage for Tesla owners, as having a vehicle repaired after a collision is arguably one of the most stressful times in car ownership. A streamlined process between Tesla Insurance and the company’s in-house collision repair could be a game changer. Tesla has taken steps to expand its insurance program since Musk and Z achary Kirkhorn expressed the company’s intentions for expansion during the Q 2 2020 earnings call. Tesla Insurance has expanded to Texas, Illinois and Washington in the U .S. The company has also set the board to launch Tesla Insurance in other countries, like Israel, China and some nations in Europe. W e t h a n k T es l a ra t i f or rep ri n t p erm i s s i on .

AASP-MN Announces First In-Person Meeting Since Pandemic The Alliance of Automotive Service Providers of Minnesota (AASPMN) is pleased to announce, with the recent easing of I - restrictions, its Annual Meeting and Leadership Conference will take place as an in-person event.

The conference will be held May 20 at Nicollet Island Pavilion in Minneapolis. “Celebrating Resilience” is this year’s theme—and plans are in place to do just that. Although the event might look a little diﬀerent, elebrating esilience will oﬀer a lineup of topnotch programming tailor-made for auto service and collision repair shop owners and managers. The general session keynote events,

roundtable discussions and vendor showcase will be in-person, with all recommended safety protocols in place. The break-out sessions will be available virtually and on-demand, followed by a live discussion/Q & A session with the presenters in J une. All sessions feature some of the industry’s top trainers. In addition to the educational programming oﬀered, there will be plenty of time for attendees to network and socialize with peers and industry vendors as they showcase new products and services in an open-air tent during social hour.

experts

Here’s what’s planned:

V irtual O n-Demand: “Top 10 Front Counter Mistakes & How to Avoid Them,” presented by Rick W hite, 180Biz

1 1 : 3 0 a.m.: “Pivot! Building Accountability into Your Life & O rganization, Lunch and Annual Meeting,” presented by Sam Silverstein, Sam Silverstein Enterprises 2 p.m. A AS Are ou eady presented by J ason Bartanen, Collision Hub, and AASP-MN member

3 : 3 0 p.m.: “THRIVE! Turning U ncertainty to Your Competitive Advantage,” presented by Meridith E lliott P owell, MotionFirst 4 : 3 0 -6 p.m.: Vendor Showcase & Social Hour V irtual O n-Demand: “Know Your Numbers: Marketing KPIs,” presented by Kim W alker, Shop Marketing Pros V irtual O n-Demand: “Prove it! File ocumentation for roﬁt, presented by Kristen F elder, Collision Hub

For registration information, visit the AASP-MN website, www.aaspmn.org, or contact the AASP-MN oﬃce at . Source: AASP - MN

Navy Veteran Gifted Car by Topeka, KS, Body Shop, Farmers Insurance by Marissa Ventrelli, WIBW News

When his car broke down in May 2020, U .S. Navy veteran Bruce Curl was in dire straits.

Bruce Curl. Credit: WIBW

After serving 12 years in the Navy and 20 years working for his father’s company, he had nowhere to live, and no way to get around. “A lot of people have been suﬀering with I - , and it hit me right in the pocketbook,”

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Curl said. His life changed, however, when he found out about Veteran’s Community Project, a Kansas ity, M -based nonproﬁt that builds tiny houses for veterans. With a new home, all Bruce needed was a new ride. That’s when McAbee CARSTAR in Topeka, KS, stepped in—through the National Auto Body Council’s Recycled Rides program, the body shop was able to get a used car from Farmers Insurance to ﬁx up and give to Curl, free of charge. “I can’t say how much I’m thankful,” Curl said. “It’s gonna change my life, it’s making me whole again.” W eth a n k W I B W p erm i s s i on .

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Former HP Head Whitman, NBA Exec Tatum, Named to Diverse GM Board by Auto Remarketing Staff

Saying that its diverse board of directors is a competitive advantage, General Motors named technology leader Meg W hitman and NBA executive Mark Tatum to its board.

Credit: Linda Parton/Shutterstock.com

The board appointment of Whitman, the former head of Hewlett Packard Enterprise, and Tatum, deputy commissioner and CO O of the N A, are eﬀective March . Seven GM directors are women. Areas of senior leadership and board experience for the company’s 12 independent directors include information technology, digital commerce,

retail, higher education, investment management, international aﬀairs, defense, transportation, cybersecurity and pharmaceuticals. GM’s diverse board of directors is a competitive advantage as the company works to deliver a safer and more sustainable world, GM Chairman and CEO Mary Barra said. Whitman was president of media startup, Q uibi Holdings LLC, a media startup, from 2018 to this year. She was president and CEO of computer hardware and services company Hewlett-Packard Co. from to . She was CEO of Hewlett Packard Enterprise, an edge-tocloud platform-as-a-service company, from to and was president and CEO of eBay from 19 9 8 to 2008. “I have tremendous respect for the commitments Mary and her team are making and the culture they have been building,” Whitman said. “GM’s growth strategy has all the elements of a startup but with far great-

er scale, millions of customers and a strong underlying business. This makes it a very exciting time to join the board.”

ple and billions of dollars to drive solutions that matter for the environment, communities, businesses and investors,” Tatum said. “J oining

“Mark and Meg will bring unique experiences to the board, especially in technology, brand building and customer experience that will help us drive value for shareholders and other GM stakeholders now and into the future.” — Mary Barra Tatum joined the NBA in 19 9 9 . Appointed NBA deputy commissioner and CO O in early 2014, he is currently responsible for the NBA’s global business operations. That includes leading the NBA’s international eﬀorts, and he also oversees the global partnerships, marketing, team marketing and business operations and communications departments. He also oversees the NBA G League and NBA 2K League. “GM is changing a more than 100-year-old business model and marshalling thousands of peo-

the board and helping accelerate that change is an honor, and I look forward to working with the GM team and my fellow directors to make it happen.” Barra said, “Mark and Meg will bring unique experiences to the board, especially in technology, brand building and customer experience that will help us drive value for shareholders and other GM stakeholders now and into the future.” W e t h a n k Aut o R em a rk et i n g f or rep ri n t p erm i s s i on .

Illinois Bill Would Bring Parity to Repair Booked Times Legislation in Illinois that would increase the booked time of repairs of vehicles under manufacturer warranty picked up another co-sponsor March ep. J ay Hoffman -Swansea , one of the House’s assistant majority leaders. Automakers consider different time guides for the same repair when technicians ﬁx a car under warranty versus the longer time considered when customers pay for the work. ealers have long charged the reduced time allowance for warranty repairs comes from, among other things, manufacturer studies of repairs in which all the needed tools and parts are carefully laid out near the vehicle before the job begins, hardly a real-world scenario. Instead, it can take a technician to minutes to fetch those during a repair. Technicians say many warranty jobs just can’t be performed in the booked time allowance, meaning they work at times without compensation.

Mechanics Local 701, the union representing area technicians at dealerships, is working with the CATA to advance the legislation. U nder House Bill 39 40: “Adequate and fair compensation requires the manufacturer to pay each dealer no less than the amount the retail customer pays for the same services with regard to rate and time. Any time guide previously agreed to by the manufacturer and the dealer for extended warranty repairs may be used in lieu of actual time expended. In the event that a time guide has not been agreed to for warranty repairs, or said time guide does not deﬁne time for an applicable warranty repair, the manufacturer’s time guide shall be used, multiplied by . . HB 39 40 was assigned March 16 to the House Labor & Commerce Committee, whose members include oﬀman. Source: C h i ca g o Aut om ob i l e T ra d e As s oci a t i on

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Lexington, NE, Planning Commission Approves Levander’s Body Shop Redevelopment Plan by Brian Neben Lexington, Clipper-Herald

L ev a n d er’ s B od y Sh op is one step closer to building a new location in Lexington after the planning commission approved the proposed redevelopment plan. The location of the new building will be east of ollar Tree and south of the proposed ServiceMaster building. Levander’s is an auto store that was founded in 19 9 7 in Grand Island and now has locations in Hastings, York, Kearney, St. Paul, North Platte and O maha, according to their website. Brian Levander is listed as the developer in the contract. City Manager J oe P epplitsch said Levander’s is adding new locations along the I-80 corridor. The plan is for Levander’s to build a 6 ,300 square foot building for automotive body work with public parking, screened storage and landscaping. There will be four full time positions created by the project. Per the contract, Levander anticipates , for construction

their March meeting. The planning commission also gave the redevelopment plan the nod. The resolution will now go before the city council for their approval and if so, it will return to the A for one final look over before final approval. uring the roundtable discussion Pepplitsch said upcoming items before the commission include a couple proposed subdivisions and a redevelopment plan. They also plan to look over the comprehensive The plan is for Levander’s to build a 6,300 square foot plan and do any needed building for automotive body work with public parking, updates, the last time screened storage and landscaping. There will be four full this was done was in time positions created by the project. Credit: C-H photo, 2013. Pepplitsch said the Brian Neben changes made to the city Pepplitsch said this was the since then have been, “dramatic.” There is also a housing market type of project intended for the area in question and said it will have long study underway that will be presented to the commission. term benefit in the years to come. The ommunity evelopment Agency started the ball rolling by W e t h a n k t h e L ex i n g t on C l i p p er approving the resolution during H era l d f or rep ri n t p erm i s s i on . and installation costs related to the pro ect and around , are eligible for tax increment financing. The projected annual tax shift related to this project is $ 8,9 29 , according to the redevelopment plan.

AASP-MN Announces 2021-22 Board of Directors April marks the beginning of service for the 2021-22 AASP-MN oard of irectors. The Alliance is pleased to welcome new board members Travis Doyle, Arrow h ea d Aut o B od y , uluth and Mike McLynn, Aut om ot i v e El ect ri c, Grand Rapids. They join other members of the board, which include: President Tom A rchambault, B L V D Aut ow ork s , St. Anthony Immediate Past President Matthew F eehan, F i x Aut o, Brooklyn Park Secretary/Treasurer J esse J acobson, H ep p n er’ s Aut o B od y , Woodbury Associate ivision irector Loren F eldkamp, L ub e- T ech & P a rt n ers , St. Paul ollision

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sively as a hybrid, is No. 2 with sales of 26 ,044. In all, there are more than 6 0 different hybrid or plug-in hybrid vehicles now available in the U .S. Honda is the No. 2 hybrid maker, with more than 22,000 hybrids sold in . onda’s electrified tally was 7.1% of its total Q 1 sales volume, up from . in . Ford is the No. 3 player with more than 18,000 hybrids sold, including 7,176 F-Series pickups. Volvo sold more than , electrified vehicles in the first uarter, accounting for . of the brand’s total sales in . Electrified vehicle growth in the U .S. and around the world is shining a spotlight on battery development and sourcing,” said Cox Automotive Executive Analyst Michelle Krebs. “As the industry builds more vehicles with battery packs, sourcing of these parts and lifetime management of the battery cells is a critical hurdle the industry must clear.” Source: C ox Aut om ot i v e

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Gateway Bronco Announces Auto Tech Scholarship for Students at McPherson College and Carroll Shelby Automotive Program Gateway Bronco in St. Louise on March introduced the ateway Bronco Innovators scholarship, recognizing and rewarding aspiring automotive restoration and repair leaders with scholarships and internships for students at two of the most renowned automotive technology schools in the country. Gateway Bronco CEO Seth Burgett, standing next to A aron Shelby, grandson of auto legend Carroll Shelby and co-president of the Carroll Shelby Foundation, along with Craig J ackson, chairman and CEO of Barrett-J ackson, announced the scholarships and corresponding internship benefitting the auto restoration program at McPherson College and the Carroll Shelby Automotive Program at Northeast Texas Community College. Gateway Bronco has quickly established itself as the leader in the restoration and modification of original Ford roncos the company was named by Top Gear as a 2020 Top Restomod and set a world record for the sale of one of its Ford Broncos at the 2019 Scottsdale Barrett-J ackson Auction. “Everyone at Gateway Bronco has a keen appreciation for the fine art of auto repair, restoration and reimagination,” said Gateway Bronco CEO Seth Burgett. “I started my first business at ust years old, an engine repair shop, in our family shed and later paid for college by painting cars. Most of our team at Gateway Bronco have similar stories, which is why we believe so strongly in promoting innovation and education. “By working with top automotive tech programs, we hope to inspire and prepare the next generation of young people to push the envelope through meaningful careers in this exciting industry.” The Gateway Bronco Innovators program will award , and help offset cost of living expenses for a summer internship at the company’s production facility outside St. Louis. A scholarship will be given every spring to a student at each school who continues to demonstrate commitment to the

profession. The eight-week internship assignments at Gateway Bronco will be aligned with college curriculum. In addition, scholarship recipients can attend marquee automotive events and meet industry stakeholders. The Carroll Shelby Foundation

cars ranging from vintage Mercedes Auction in Scottsdale. The Automotive Restoration to Mustangs. “Hands-on internships are espeTechnology Program at McPherson cially important at McPherson and the College was established in 19 76 through a gift of collectible cars Gateway Bronco program opens an from Gaines H. “ Smokey” Billue. entirely new avenue for our students In 19 9 7, J ay Leno established two to innovate, learn and refine their skills scholarships that provide financial while earning college credit.” ateway ronco offers worldassistance to students interested in studying clas- class reconditioned Ford Broncos sic auto restoration. To- and 100% reproduction Broncos day, it stands alone as the licensed by the Ford Motor Comonly school to provide a pany with contemporary engines, bachelor’s degree in res- transmission, brakes and suspensions engineered to make the classic toration technology. “O ur bachelor’s de- SU V perform similar to a modern gree in restoration tech- vehicle. The company also reimagnology is the only one of ines classic 19 6 7-19 72 Ford F-100, and Ftrucks it also acits kind in the nation,” Fsaid A manda Gutier- cepts select one-off pro ects. Additional information about rez , vice president for automotive restoration the heritage Ford Bronco and F seat McPherson College. ries classic truck lines from Gate“O ne of the core aspects way Bronco is available at gatewayStudents working on Bronco. Credit: Gateway Bronco is that our students have bronco.com. the opportunity to work is a major supporter of the Carroll with an amazing group of classic Source: G a t ew a y B ron co Shelby Automotive Program at NTCC. The program teaches the operation and repair of the eight Automotive Service Excellence (ASE) areas in the National Technicians ertification Master Technician Program. M-F 7:30am-6pm “Carroll Shelby strongly believed that learning to repair and restore vehicles was a clear road to 517.393.6767 Fax a better life for young people,” said 5737 S. Pennsylvania Ave. J ohn McCullough, vice president Lansing, MI 48911 for institutional advancement at Northeast Texas Community College. “That is why he was such a strong supporter of the Carroll ShelALL the Genuine Kia by Automotive Program through the Carroll Shelby Foundation. Parts You Need I am confident that he would Dedicated Wholesale Staff be pleased that others are now joinCompetitive Prices ing our efforts to help kids win the race for life,” McCullough said. Perfect Fit Everytime “The scholarship will be very helpFast Free Delivery ful to a student and the internship, Large Warehouse especially with the opportunity to network with others in the industry, will be extremely valuable. We appreciate Seth Burgett and the Gateway Bronco team for including us www.kiaoflansing.com in their program.” The announcement was made at the Barrett-J ackson Collector Car

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GM, LG Energy Solution Investing $2.3 Billion in 2nd Ultium Cells Manufacturing Plant in U.S. U ltium Cells LLC, a joint venture of LG Energy Solution and General Motors, on April 16 announced a more than $ 2.3 billion investment to build its second battery cell manufacturing plant in the U .S. The facility will be located in Spring Hill, TN. U ltium Cells will build the new plant on land leased from GM. The new battery cell plant will create 1,300 new jobs. Construction on the approximately 2.8 million-square foot facility will begin immediately, and the plant is scheduled to open in late 2023. O nce operational, the facility will supply battery cells to GM’s Spring Hill assembly plant. “The addition of our second all-new U ltium battery cell plant in the U .S. with our joint venture partner LG Energy Solution is another major step in our transition to an all-electric future,” said GM Chairman and CEO Mary Barra. “The support of the state of Tennessee

was an important factor in making this investment in Spring Hill possible and this type of support will be critical moving forward as we continue to take steps to transition our manufacturing footprint to support EV production.”

Continued from Cover

ed to making those used in automobiles. “This could be accomplished by, for example, specifying that a particular percentage―that is reasonably based on the projected needs of the auto industry―be allocated for facilities that will support the production of auto grade chips in some manner,” he said. Early this year, Congress passed legislation allowing for funds to be used to incentivize manufacturing but the money hasn’t been appropriated yet. Biden has called for $ 37 billion to be committed to boosting semiconductor production.

Semiconductor Shortage shortage. Bozzella’s letter was in response to that review. Because of last year’s closing of auto manufacturing facilities due to CO VID, semiconductor suppliers, most of which are based overseas, moved production into other types of semiconductors needed for personal computers and other goods. Semiconductors are integral to multiple systems on vehicles. “We have been conducting anonymized surveys of our member companies since the onset of the chip shortage,” Bozzella wrote. “The most recent survey was conducted within the last couple of weeks and, unfortunately, the high end projections indicate an even more signiﬁcant impact to U nited States auto production than was projected in previous surveys.” As part of his letter, Bozzella also urged some portion of funding be used to boost the domestic production of semiconductors dedicat-

Early conceptual rendering of Ultium Cells LLC battery cell manufacturing facility in Spring Hill, TN.

“This partnership with General Motors will transform Tennessee into another key location for electric vehicle and battery production. It will allow us to build solid and stable U .S-based supply chains that enable everything from research, product development and produc-

tion to the procurement of raw components,” said LG Energy Solution President and CEO J onghyun Kim. “Importantly, I truly believe this coming together transcends a partnership as it marks a defining moment that will reduce emissions and help to accelerate the adoption of EVs.” The state-of-the-art Spring Hill plant will use the most advanced and efficient battery cell manufacturing processes. The plant will be extremely flexible and able to adapt to ongoing advances in technology and materials. GM’s proprietary U ltium battery technology is at the heart of the company’s strategy to compete for nearly every EV customer in the marketplace, whether they are looking for affordable transportation, luxury vehicles, work trucks, commercial trucks or high-performance machines. U ltium batteries are unique in the industry because the large-for-

mat, pouch-style cells can be stacked vertically or horizontally inside the battery pack. This allows engineers to optimize battery energy storage and layout for each vehicle design. Energy options range from 50 to 200 kilowatt hours, which could enable a GM-estimated range up to 450 miles or more on a full charge with 0-6 0 mph acceleration in 3 seconds. GM’s future U ltium-powered EVs are designed for Level 2 and DC fast charging. Most will have 400-volt battery packs and up to 200 kW fast charging capability while GM’s truck platform will have 800volt battery packs and 350 kW fast charging capability. With a 30-year history in the battery business, LG Energy Solution has made consistent, largescale investments to accumulate enough stability, credibility and manufacturing experience to invent its own cutting-edge technologies. The company established its ﬁrst

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research facility in the U.S. in the early s. In , the company built its ﬁrst U.S battery plant in olland, MI. Through Ultium ells, En-

ergy Solution and M will merge their advanced technologies and capabilities to help accelerate automotive electriﬁcation. Source: G M

Gerber Collision & Glass Acquires Repair Center in Milwaukee, WI The oyd roup Inc. announced the ac uisition of a collision repair center in Milwaukee, I. This location operated as P res t i g e Aut o W ork s and has served this market for nearly years. Milwaukee is the largest city in isconsin with a metropolitan population of more than million people and is the founding city of arley avidson, Miller rewing ompany and a number of other Fortune companies. ften referred to as the ity of Festivals, Milwaukee is well known for its annual summer music festival, which can bring more than bands and , guests to the city. e are excited to welcome this location, which has built a

strong reputation for providing high- uality repairs, said Kevin Burnett, of erber ollision lass. This ac uisition strengthens our brand and introduces us to new customers in this region while aiding in assisting our insurance partners. The oyd roup is continuously looking to add new collision repair locations to its existing network in anada and the U.S. Interested collision repair center owners are asked to contact J ason Hope, vice president of business development and strategic pro ects, at or ason.hope boydgroup. com. Source: T h e B oy d G roup

Continued from Cover

$174 Billion EV Package their car’s cost by a signiﬁcant amount in some cases. There have been rumblings of the , E credit being bumped up to , per unit sold. hile unconﬁrmed, several ashington . . sources have indicated the iden administration is considering a , boost to the previous E tax credit amount. edbush analyst Dan I ves commented on the possibility of the , amount earlier this week. e are hearing from our contacts in the eltway that , tax credit could potentially be , in terms of a credit and that’s going to be a massive catalyst not ust for Tesla, but for the E ecosystem in the U.S., Ives told ahoo Finance ive. ith billion out of the way and billion remaining, it appears billion will be used to accelerate the buildout of the electric vehicle charging infrastructure. iden’s campaign is targeting at least , new E charging stations.

ne of the main concerns and points of non-E owners is the lack of charging options available throughout the U.S. owever, with more companies oining the E sector, the focus on charging is becoming an evident focus of automakers moving forward. Tesla has started to plan for larger Supercharger stalls in highly populated areas. New companies like ivian are ust releasing their E charging plans a few months ahead of their first vehicles being delivered to customers. The final billion of the package will be divided into three subsections billion for electric school buses, aligning with iden’s plan to electrify the government fleet, billion for ero-emission transit vehicles, and the remaining billion going to other tax incentives. Ultimately, the package will greatly benefit nearly any car company that will begin developing electric powertrains for the passenger or commercial market. W e t h a n k T es l a ra t i f or rep ri n t p erm i s s i on .

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Automakers Report March, Q1 Sales Several automakers on April 1 began reporting March sales results. Toyota Toyota Motor North America reported March U.S. sales of , vehicles, an increase of 87% on a volume basis and up 79 .8% on a daily selling rate S basis compared to March 2020. For the first uarter, TMNA reported U .S. sales of 6 03,06 6 vehicles, a 21.6 % increase on a volume basis and . increase on a S basis. Toyota division posted March sales of , vehicles, up . on a volume basis and up . on a S basis. For the uarter, Toyota reported sales of , vehicles, up 20.3% on a volume basis and up . on a S basis. Lexus division posted March sales of 33,186 vehicles, up 112.9 % on a volume basis and up 104.7% on a S basis. For the uarter, exus reported sales of , vehicles, up 31.8% on a volume basis and up . on a S basis. Mazda Mazda North American O perations reported total March sales of 31,9 9 1 vehicles, an increase of 104.2% compared to March 2020. Year-to-date sales totaled , vehicles, an increase of 23% compared to the same time last year. With 26 selling days in March, compared to the year prior, the company posted an increase of 9 6 .4% on a aily Selling ate S basis. CPO sales totaled 7,834 vehicles in March, an increase of 74% compared to March 2020, and achieved an all-time record high. Mazda Motor de Mexico reported November sales of 4,720 vehicles, an increase of . compared to March last year. Year-to-date sales decreased . , with , vehicles sold. Kia Kia Motors America announced its best-ever month and an all-time high for first uarter sales. Through March, Kia sales are up 9 % over the previous first uarter high set in . Finishing in record-setting fashion, ia delivered , vehicles in March, with best-ever monthly per-

formances by the and Seltos. March also saw Telluride continue its historic run, posting best-ever March sales a full two years after the model’s introduction. Hyundai Hyundai Motor America reported total March sales of , units, a increase compared with March 2020 and the all-time best month in Hyundai history. Palisade and Kona had their best month ever, while Santa Fe and Tucson set new March highs. Hyundai fleet sales were down , representing 4% of total volume. March was also the best retail month ever, with 72,740 retail sales, up . etail sales rose for the entire lineup with SU Vs (+ 173%), cars (+ 120%) and eco-friendly vehicles , all up triple digits. For the quarter, Hyundai had its highest retail sales ever at , units, an increase of 38% compared with Q 1 2020. Total Q 1 sales were up with significant growth across the lineup. Mitsubishi Mitsubishi Motors North America, Inc. reported total March sales of , , a increase compared with March 2020, and the best retail sales month since August 2019 . March marked the arrival of the highly anticipated all-new 2022 O utlander and restyled 2022 Eclipse Cross. After its global reveal on the Amazon Live platform—an auto industry first—the overall excitement for O utlander, from both consumers and Mitsubishi Motors dealer partners, helped fuel strong retail sales from March. For the quarter, Q 1 2021 retail sales matched the same performance versus the prior year. Mitsubishi fleet sales were down 38% versus the same period in 2020, as the company focuses on more profitable retail sales growth. GM General Motors Co. announced it sold , vehicles in the U.S. in the first uarter of , with retail deliveries up and fleet sales down year over year. Total sales were up 4% compared to a year ago.

All four GM U .S. brands had double-digit year-over-year increases in retail sales. GM estimates the U .S. retail SAA in the first uarter of was 14.6 million units and the total U .S. light vehicle SAAR was 16 .7 million units. In another sign of strong U .S. economic activity, sales to small businesses, which are included in retail sales, increased in the first quarter. Gains were driven by fullsize SU V sales (up 132%), Silverado medium-duty pickup sales up and large vans up . The hevrolet Colorado and GMC Canyon also increased sales by a combined . Ford Ford’s investment into electrified vehicles, along with trucks and SU Vs, is paying off. Electrified vehicles hit a new record sales start, trucks reported best retail start in 13 years and SU Vs posted best first uarter retail sales since 2001. riven largely by the fully electric Mustang Mach-E and F-

PowerBoost Hybrid, Ford’s electrified vehicle sales increased . to a new record sales start, with , vehicles sold. First quarter sales of the fully electric Mustang Mach-E totaled 6 ,6 14 vehicles, with days-to-turn of just seven days. Fower oost ybrid sales jumped 110% in March compared to February making March its best sales performance since launch. Ford sold , Fower oost ybrids in the first uarter, with , sold in the month of March. Ford’s first- uarter retail sales were up 23.1%, selling above both and first- uarter results. Retail truck and SU Vs were up , over a year ago, fully offsetting the retail loss of 13,6 88 from the discontinuation of cars. Combined retail trucks and SU V sales were up 30.8%, providing Ford with its best first- uarter performance since . F-Series had its best start in years—retail sales up . . Sales of America’s best-selling truck, Ford See Automakers Report, Page 22

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Combat the Tech Talent Crisis with CREF by Chasidy Rae Sisk

With the average technician age approaching , shops and other collision repair industry businesses are in desperate need of ualified entry-level staff to fill positions as technicians age out. The industry has a major problem, but by supporting the schools that educate future collision repair employees, the Collision Repair Education Foundation EF offers the solution. EF is a nonprofit organi ation that facilitates the industry’s generosity by investing in collision repair educational programs around the country, helping equip school shops and funding student scholarships, among many other endeavors that serve to attract, properly train and retain more ualified collision professionals.

Since 2009 , CREF has been able to provide more than $ 300 million in support to schools and students through the industry’s donations. Supporting CREF’s initiatives is a lot easier—and less time-consuming—than industry professionals often realize. Because collision educational programs are frequently underfunded, instructors’ biggest needed are used parts, especially fenders, hoods and bumper covers— just like the ones discarded by shops every day. Most programs rely on older vehicle parts to train their students

without being able to learn on current model vehicles, students do not receive the education necessary to become a useful and productive entry-level technician after graduation.

Schools also need updated tools and equipment to ensure students are learning on the same technology they’ll be using at their future shop, and when a shop upgrades, CREF can help identify a local school in need. Industry supporters can also promote the industry’s professionalism by sponsoring student uniforms, which include a company logo. Monetary donations help CREF fund school grants and student scholarships, and in addition to donations being tax-deductible, donors can feel confident their contributions make the desired impact, since CREF’s lean operations ensure 9 0% of all donations are invested in schools. EF also offers initiatives to help the schools’ shops look more professional, even looking outside the industry for help with initiatives like providing new floors to combat the dungeon-like appearance of many shops. “Limited budgets don’t allow instructors to worry about the shop’s appearance, but to attract the best students, we need to present the best possible image of the collision repair industry and promote the professionalism of this career path,” said Brandon E ckenrode, director of development for CREF. “We have to change the public’s mindset about this being a viable career option.” Instructors have responded very favorably to the industry’s support,

which helps them better educate their students, but schools are always seeking guest speakers, shop tours, mentors and advisory committee members as well. CREF encourages industry professionals to get involved with their local schools to get in front of future industry professionals. Getting students employed after graduation is another important effort CREF has undertaken with the industry’s support. CREF hosts physical and virtual career fairs, where they oﬀer interview workshops and resume advice to students. This also provides a great opportunity to introduce industry employers to recent graduates who are well-trained on current model vehicles using advanced equipment and modern tools, ready to start in their shop. When the industry invests in the schools training their future employees, everyone beneﬁts. “There are roughly 1,000 collision education programs around the country, and they need the industry’s support to train the professionals

that will be working on our vehicles after an accident,” according to Eckenrode. “We want to make sure students are skilled before they start repairing vehicles, and then we want to get them employed so we can start addressing the industry’s aging workforce issue.”

For information on how to donate to programs supported by CREF, visit CollisionEducationFoundation.org or contact Brandon Eckenrode, director of development, at or randon. Eckenrode@ed-foundation.org. Source: C R EF

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Automakers Report

Record-Breaking 78 AutoNation Dealerships Certified as J.D. Power 2021 Dealers of Excellence

F-Series, totaled 203,79 7 vehicles in the ﬁrst uarter. Thanks to the allnew Fand Fower oost, F-Series retail share expanded an estimated 3 percentage points in the full-size pickup segment. Ford brand SU V retail sales up 37%—its best start since 2001, on strong new product introductions. Both Bronco Sport and Mustang Mach-E totaled 29 ,9 70, with March representing the strongest sales month to date. Combined retail sales of Bronco Sport and Mustang Mach-E are up 38.3% over February, while Escape retail sales were up 49 .9 %. Lincoln SU Vs had their best retail sales start in 20 years. Navigator retail sales up 26 .6 % and Corsair achieved a new ﬁrst uarter sales record, with sales up 26 .4%. Source: T oy ot a , Ma z d a , K i a , H y un d a i , Mi t s ub i s h i , G M, F ord

emonstrating its commitment to exceeding customer expectations, AutoNation, Inc., America’s largest automotive retailer, on April announced AutoNation stores have been certified in the . . ower ealer of Excellence Program. This program recognizes a very selective number of retail dealerships throughout the U .S. that provide an exceptional customer sales experience and once again, AutoNation was the clear leader. This certification is an outstanding accomplishment for our teams. Last year we set the bar with stores receiving the . . ower ealer of Excellence recognition. These stores again received the recognition with 24 new stores added this year. We could not be prouder,” said J im Bender, president and CO O at AutoNation. “This recognition amplifies AutoNation’s commitment to providing a peerless customer experience as the clear industry leader and every member of our

AUTOBODY

team shares in this achievement.” Known for its “Voice of the Customer” research for more than years, . . ower and, subseuently, its ealer of Excellence Program help consumers identify leading retailers that will go the extra mile. According to . . ower, buying a vehicle is a significant financial transaction and can be stressful because there’s so much information to digest. The ealer of Excellence Program assists auto buyers who are looking for an exceptional dealership where they can confidently buy a vehicle. ertified dealers also benefit by leveraging the . . ower brand and promoting their dealership’s commitment to an outstanding customer purchase experience. ealer of Excellence is an exclusive program and not all dealerships can qualify. Those that do must pass a three-step process. As the first ualification criterion, . . ower limits the percentage of eligible dealerships by

GM Airbag Investigation Launched After Injuries by David A. Wood, CarComplaints.com

A GM airbag investigation has been opened following claims of injuries caused when the airbags failed to deploy in crashes. The National ighway Traffic Safety Administration (NHTSA) said it opened the General Motors airbag investigation after receiving complaints alleging six severe crashes where the airbags failed to deploy. According to NHTSA, the six M vehicles suffered significant frontal collision damage,” and all six incidents caused injuries. Additionally, nine airbag complaints indicate the airbag warning lights were illuminated. Included in the GM airbag investigation are nearly , of these vehicles: 2 0 2 0 -2 0 2 1 Chevrolet Silverado 2 0 2 0 -2 0 2 1 Chevrolet Tahoe 2 0 2 0 -2 0 2 1 Chevrolet Suburban 2 0 2 0 -2 0 2 1 GMC Sierra 2 0 2 0 -2 0 2 1 GMC Y ukon 2 0 2 0 -2 0 2 1 GMC Y ukon X L 2 0 2 0 -2 0 2 1 Cadillac E scalade 2 0 2 0 -2 0 2 1 Cadillac E scalade E SV

2 0 2 0 -2 0 2 1 Cadillac CT4 2 0 2 0 -2 0 2 1 Cadillac CT5 2 0 2 0 -2 0 2 1 Cadillac X T4 GM issued technical service bulletin TS -NAin March regarding illuminated airbag warning lights associated with diagnostic trouble codes B0001-1B or - . The GM airbag investigation will have federal safety regulators looking at what the automaker said in the TSB which was sent to dealerships. Speciﬁcally, M told dealers rust particles in the connection terminal interface of the airbag inﬂator is what causes illuminated airbag warning light. It’s when the airbag warning light activates the airbag deactivates and won’t deploy in a crash. NHTSA said investigators will determine how severe and widespread the GM airbag problems are, and if the automaker should recall and repair the vehicles. CarComplaints.com will update our website with results of the GM airbag investigation. W e t h a n k C a rC om p l a i n t s . com f or rep ri n t p erm i s s i on .

nameplate based on each brand’s performance in the most recent . . ower U.S. Sales Satisfaction Index (SSI) Study. Thus, proportionally more dealerships from top-performing brands can become a . . ower ealer of Excellence. Second, dealerships must rank among their brand’s top performers in key customer satisfaction areas consistent with measurements found in the SSI Study. Finally, qualifying dealers must pass an audit to show they meet or exceed . . ower sales best practices. Those best practices include, but are not limited to, listing vehicle inventory and pricing on the dealership website, negotiating in an efficient and transparent manner, offering a fair trade-in value and presenting a clear and easy-to-understand menu of finance and insurance products. Source: Aut oN a t i on

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autobodynews.com / MAY 2021 AUTOBODY NEWS 25

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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.

Have We Handcuffed Employees from Providing Extraordinary Customer Service? I’m concerned some of you may read the ﬁrst paragraphs of this column, and presume it’s about customer satisfaction indexing SI ― it’s not―and decide to move on. O r you may think it’s about online reviews―it’s not, really―and decide to move on. So please stick with me here. I’m going to talk about CSI and online reviews, but only as an introduction. It’s no secret for years many insurance companies have conducted―or asked their direct repair shops to conduct― SI surveys. Many body shops track CSI on their own, regardless of whether a job is done under a or not. And in recent years, more automakers have added CSI requirements for the shops in their certiﬁcation programs. It all makes sense. Insurers and automakers want to make sure the

mutual customers they refer to shops are being kept informed during repairs, are receiving their repaired vehicle back in a timely manner, etc. They want to make sure their brand is being protected.

For shop owners, CSI makes good sense as well, particularly as a shop’s volume or location count increases. When I owned multiple shops, I used CSI to help identify “blind spots” in my business. Since I couldn’t touch every single car,

CSI results helped me ensure my employees were providing the same quality of repairs and customer service I would personally. So to be clear: CSI is useful and valuable. It’s helped our industry reach “net-promoter” scores that are better than those found in so many other industries. But I believe online reviews are becoming equally important for shops. Consumers increasingly have a “trust but verify” mentality. In a column I wrote a couple years ago, I shared a story about the time my friend Greg’s son and daughter-in-law didn’t go to a restaurant Greg had highly recommended, because that restaurant’s online reviews weren’t as good as others the son looked up. Greg’s son used online reviews to verify whether his

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own father’s referral could be trusted. Given that, do you think consumers are going to trust a shop referral from an insurance company or an automaker without verifying by checking the shop’s online reviews Maybe my 84-year-old father isn’t going to do check those reviews, but my niece in her s deﬁnitely will. So that makes online reviews increasingly important as these generational shifts continue. Part of what this brings to mind is something I learned from Ryan Taylor at Bodyshop Booster: “People are more afraid of making a wrong decision than they are of spending money.” Think about it: Have you ever passed over a lower-priced option for something you were buying because you were leery the cheaper one could be a mistake ave you ever sorted your search results on Amazon based

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on average customer reviews rather than price I know I have. And think about this: How much are online customer reviews influencing your ranking in search results State Farm is among the insurance companies using a shop locator that now includes online review scores. Some of the automakers have done this as well. Anyone who Googles “best auto body shop near me” is going to see only shops with a four-star rating or better―even if others are closer. That search may bring up four or five shops, but if the consumer conducts a voice-activated search, their device is likely to suggest only the one shop― the one with the best online reviews. I think connected cars are only going to accelerate the use of voice-activated search. Try it yourself: Ask your phone something like, “Hey, Siri, what’s the best auto body shop near me Is your shop the one that’s suggested But as I said at the start, my message here is about something bigger than CSI scores and online reviews. It’s about figuring out how you can differentiate yourself by

providing exceptional customer service, creating a memorable or―not to sound like isney―a magical experience for your customers. hy I think as an industry, most shops have developed ways to ensure customers will answer the three or four basic CSI questions positively. We’ve found ways to keep them informed, to ensure their vehicle is returned on time, etc.

tunities for your business to set itself apart. What does that memorable or magical customer experience look like I’ll be honest I don’t know. In talking about this with my good friend Ray Chew at CCC Information Services, he told me he thinks it has to start from that ﬁrst point of contact, when we ﬁrst get that assignment or referral. From

“People are more afraid of making a wrong decision than they are of spending money.” — Ryan Taylor That’s part of how CSI has made us better as an industry. And of course those things are, and will continue to be, very important elements to our business. But as we’ve crafted our customer service around just those things, I think we may have handcuﬀed our team, limiting how much they think outside the box in terms of providing exceptional, memorable service. That’s why I think the additional power of open-ended online customer reviews will open new oppor-

that point on, we need to be looking for opportunities to wow that customer, to turn what they might perceive as a bad situation into a great experience. An example: How often have we had a customer call to say they left their sunglasses or phone charger in their car when they dropped it at the shop nce you locate the item in the car, do you just tell them how late you are open if they want to pick it up―or does someone oﬀer to drop it oﬀ at their home or work It’s

a little thing, but a kind, convenient gesture customers may well mention as part of a ﬁve-star online review. I can point to something similar in my own life recently. I had groceries delivered to my home, and in trying to pick up more of the bags than I should have, I managed to drop one, cracking open a watermelon and most of a do en eggs―the equivalent of “one-time-use parts” in the world of groceries. About 20 minutes later, there was a knock at my door. There was the young grocery delivery guy with another watermelon and carton of eggs for me. He wasn’t the person responsible for the busted groceries. He didn’t even work for the grocery store he was a subcontractor who did this on his own. You better believe that turned an otherwise mundane transaction into a memorable experience to share in an online review. That’s the sort of thing your employees need to be empowered to do. It will be key to helping your business thrive as online reviews expand the customer experience beyond the basic building blocks of CSI.

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with Erica Schroeder

Industry Insight with John Yoswick

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

Deciding Between Leasing and Purchasing When Adding Shop Locations

Shop Showcase

Here’s a tip: Investors might be in- ment play,” while larger MSO s conterested in buying your shop’s real sider efficiency of capital ―what estate. will get them a greater financial rewith Ed Attanasio Gary Chou, executive vice turn. president of commercial real estate “There’s no right or wrong,” said brokerage firm Matthews eal Estate Chou, as long as someone purchasing Investment Services, said outside in- considers whether they would do betvestors such as real estate investment ter freeing up that money to open adtrusts (REITs) have recently begun to ditional shops. see collision shop properties “as a leW ill J ohnston, chief corporate with Ed Attanasio gitimate investment product.” development officer for Service ing, “That’s helped push values of agreed there’s not one definitive ancollision properties up, because it swer to the purchase-vs-lease quesbasically increases the buyer pool tion. overall,” Chou said. “It really depends on where you Chou was speaking last fall are in your growth and how aggresduring the first MS Symposium sively you’re growing,” J ohnston with Ed Attanasio panel discussion in the event’s nine- said. “You may decide that your year history focused on issues relat- pace of growth is such you want

Social Media for Shops

SEMA Show Goes On

an acquisition, it’s the third-party landlords that can potentially really gum things up. Because they’re not the ones about to make a big payday. They may very well see it as their chance to renegotiate items within the lease.” Think carefully even about an arms-length lease you put in place with yourself or an affiliate , J ohnston said, because a buyer of your business may look at that lease and “expect those same terms.” Panelist Ben Hidalgo of Net ease evelopment agreed, suggesting anyone leasing commercial property to or from others find an attorney who understands leasing for a specific use. A collision repair business that has even just one poorly crafted lease among its two or three or 10 locations can get “held hostage” to that, particularly at the time the owner hopes to sell the business.

Media and Publicity for Shops with Ed Attanasio

“Get a good attorney, not just a friend who does it,” Hidalgo said. on’t skimp on that. et an expert in retail leasing, to get a lease that will protect you long-term.” An attorney with suﬃcient leasing experience will know what’s been problematic for other clients in the past, he said. Dean F isher, president of riven Brands’ collision group, which includes CARSTAR and Maaco, also oﬀered his take on the purchase-vslease decision during the panel discussion. He said most of his company’s franchisees have fewer than 10 locations and tend to buy the real estate at most or all of their shops. “Most of them look at real estate as a form of the asset base that they’re building, utilizing the business to pay for the asset base,” he said. “So they’ll typically try to purSee Leasing and Purchasing, Page 45

Shop Strategies with Stacey Phillips

Body Shops Giving Back

John Walcher, top left, of Veritas Advisors moderated a panel discussion on real estate issues related to growing collision repair businesses

with Stacey Phillips

ed to real estate―and the speakers to lease that property because you focused on some topics that could be want to save capital to go after addiequally of interest to single-location tional shops. But if you’re growing collision repairers as well. with brownfields and take-overs and The new interest among inves- will be adding a lot of value to the tors in body shop real estate, for facilities you take over or that you with Stacey Phillips example, offers another option for build, you may want to benefit from a shop owner who sells the business the value [ in the property] you put in to a large MS ―which is unlikely there as the operator.” to want to buy the real estate―and The terms of any lease can be wants to cash out the property rather very important, J ohnston said, parthan continue as landlord. ticularly when you decide to sell Much of thewith discussion centered your business. Stacey Phillips around whether a collision repairer “The lease you’re negotiating adding a shop location―whether a now might be the lease that you’re second or th―should purchase assigning over to a buyer of your or lease the new location’s building business later,” he said. “It will afand real estate. fect the valuation [ of the business] Chou said smaller MSO s often and certainly will affect the ease of view the purchased land as “a retire- getting that deal done. Typically in

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California Autobody Assn. Supports Accountability, Accessibility, Transparency To this end, BAR has responded and has successfully developed AB 471 is a multi-faceted piece of the Auto Shop Locator, a new molegislation created to address con- bile-friendly search tool that alsumer protection and transparency lows consumers to perform locawithin the automotive repair indus- tion-based searches for automotive try. repair dealers, filter results by the Among other things, it will sig- type of services needed and quickly nificantly enhance alifornia ureau verify if a licensee is on probation or of Automotive Repair (BAR) pro- the subject of a pending accusation. grams for consumers, protect conO ne of the goals of AB 471 will sumers from unsafe salvage vehicle be to support and expand the consumer protection and transparency of this platform. J ack Molodanof, registered lobbyist for CAA and the president of Molodanof Government Relations in Sacramento, CA, has watched this bill as it’s gone through several reincarnations. Molodanof believes the California Assembly Member Evan Low authored AB 471 to bill will be good for all address consumer protection and transparency within the automotive repair dealers, automotive repair industry including auto body shops, repairs, improve the current citation that go by the rules, while making and fine regulatory program and al- shady operators responsible for sublow for a more efficient and expediat- par repairs. ed disciplinary processes. “O ne of the goals of AB 471 is The California Autobody As- to make it easier for consumers to sociation (CAA) supports this bill find out which shops have training because it protects consumers, im- and educational credentials to propproves the current BAR citation and erly and safely perform repairs befine process and streamlines disci- fore they decide where to take their plinary hearings while preserving vehicles,” he said. due process. AB 471 will allow BAR to colThe bill was authored by Cali- lect additional information from aufornia Assembly Member E van Low tomotive repair dealer application, th Assembly istrict, San ose including educational and training and Silicon Valley.) Last year, AB certifications that are nationally rec, also authored by ow, was in- ognized and generally accepted by the troduced but paused in order to allow auto repair industry―ASE, I- A , A to address the Trusted ealer etc. It also will combine the current ertificate portion of that bill. brake and lamp program and rename by Ed Attanasio

it the vehicle safety inspection program, provide BAR the authority to develop additional inspection criteria standards for safety systems through regulations and allow for electronic transmittal of the brake and lamp certificates to M . Among other things, AB 471 will enable BAR to establish a fair appeal process for citation and fines by establishing an independent review panel that includes a consumer, BAR representative and representative from the auto repair industry. In addition, it will provide for an automotive repair shop that receives a citation to attend educational training, certified by A , which will remove the citation from BAR’s website, similar to traffic school. The bill will allow BAR to certify these remedial training providers. It will also allow administrative law judges to be pre-assigned to hear BAR cases. “This will allow for expediate hearings for auto repair shops rather than having to wait for years to resolve,” Molodanof said.

It will allow BAR to hire inhouse attorneys to handle preparation of accusations to revoke auto repair shop licenses, rather than the attorney general. “This will streamline the current process and resolve cases quicker while maintaining the auto body shop’s right to due process,” he said. A also clariﬁes a person required to have a valid BAR license shall not have the beneﬁt of any lien for labor or materials, including the ability to charge storage fees or right to sue, unless the person possesses a valid BAR license. Along with CAA, these associations support AB 471 and applaud Low for his leadership in authoring this important legislation: Automotive Service Councils of California, California Automotive Wholesalers’ Association, Auto Care Association, Coalition for Automotive Repair Equality, Automotive Service Association, Automotive Aftermarket Suppliers Association and Motor and Equipment Manufacturers Association.

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Midwest_Issue_0521.indd 33

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@gmail.com.

WIN Webinar Explores What’s NEXT for Auto Body in the Digital World

Southeast News

n International omen’s ay on hicles involved in accidents will be March 8, E laina F arnsworth, CEO more expensive to fix. of The NEX Twith Education, shared Chasidy Rae Sisk“Range of vision is important to insights on “What’s NEX T for the think about as a repairer. We need to Future Autobody Worker in O ur know how the sensors interact and Emerging igital orld, during a what they’re expected to do,” Farnwebinar hosted by the Women’s In- sworth added. “Be careful of the dustry Network (WIN). sensors and the cameras when you “Never before have we seen repair connected vehicles―these with Rae Sisk such a change in how Chasidy transportation features provide enhanced safety has been done,” Farnsworth began. and mobility. Each have different re“We are experiencing a wonderful quirements for speed, security, disperiod of growth, and the industry tance and bandwidth.” needs as many women as Farnsworth believes it’s possible.” important for the collision Chasidy Rae Sisk repair industry to “underReferencingwith technologies, such as intelligent instand where we are today frastructure, self-driving and but also where we’re going. autonomous vehicles and A lot of development is beconnected cars, Farnsworth ing done around WiFi and pointed out, “If we Chasidy don’t Elaina , which will come to fruFarnsworth with Rae Sisk have technicians who really ition in the near future. It’s understand the technology, all this important to understand all the ways great technology is worthless. We fo- these vehicles communicate because cus on growing the person, who can it could impact your diagnosis. then become an agent of change and epairers will follow a differgrow the industry.” ent diagnostic process with these vewith Chasidy Rae Sisk Connected vehicles (CV) are hicles, and we need to think about cars that talk to one another. Many how we will need to diagnose them modern vehicles already include a differently as vehicles evolve. variety of wireless communications, Although automated and auinformation and entertainment sys- tonomous vehicles (AVs) are often tems, such as GPS, smartphone grouped together, they are not the with ChasidylinkRae Sisk ing and automated incident reporting. same. CVs provide the ability to equip ve“Automated refers to vehicles hicles with bidirectional communica- that have a capability to steer, acceltion using any protocol connectivity erate and brake under certain road, wirelessly, as well as the ability to al- weather and traffic systems, while withtoChasidy Rae Sisk low vehicles access both wireless fully autonomous vehicles do not and networked devices inside and require a driver for any road, weathoutside of the vehicle itself. er or traffic condition, Farnsworth According to Frost & Sullivan, explained. “Currently, there are no 20% of vehicles in North America fully autonomous vehicles in the will have telematics capabilities by world they are all level and limitwith Chasidy Rae Sisk , and nearly of vehicles ed to dry, well-marked and generally will contain some sort of connected flat roads in good weather and usualcapability by 2030. ly light traffic. Connectivity provides an opFarnsworth provided examportunity to optimi e traffic man- ples of systems found in automatagement, reduce collisions and pro- ed vehicles. Adaptive cruise convide travel information, according to trol down to a stop builds on basic with Ed Attanasio Farnsworth. adaptive cruise control but allows “There are a lot of electronics the system to function down to a going on inside a connected vehicle, full standstill, “an important next and though the industry is likely to step to manage bumper-to-bumper see fewer collisions in the future, ve- traffic,” she said.

Western Associations

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Lane-center steering builds upon lane-departure steering assist, which only intervenes as a vehicle approaches or crosses the lane markings. The lane-center steering system actively centers the vehicle in its lane by tracking lane markings and/or the vehicle ahead. Although these systems can often navigate mild curves, they typically require the driver’s hands to remain on the wheel and will issue warnings and eventually deactivate if they sense a lack of steering force. Hands-free steering centers the cars without requiring the driver’s hands on the wheel, though it still requires the driver to pay attention. O EMs are currently leading development, with GM leading in execution for connected and automated vehicles, while Ford vaults ahead in strategy. “The news constantly reports

partnership announcements, as well as some mergers and acquisitions,” Farnsworth said. “In addition to the traditional O EMs, companies like Apple and Google are beginning to play a role in vehicle technologies they’re even exploring the idea of building their own cars. Lots of new players are entering the market, and it’s deﬁnitely not going anywhere. As that segment of the industry grows, there will be more opportunities for others to join in.” Explaining why CVs and AVs matter to repairers, Farnsworth said, “Sensor-based blind zone and cross traﬃc alerts get knocked around in crashes, and A AS are proliferating in lower-priced vehicles. All new light vehicles will have backup cameras, and the industry has agreed to make automatic braking and forward collision warning systems standard by 2022.

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with Ed Attanasio

34 MAY 2021 AUTOBODY NEWS / autobodynews.com

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eplacing a sensor torn oﬀ a car’s front end and swept up at a crash site can require a body shop diagnostic technician to go far beyond looking up a vehicle identiﬁcation number to see what A AS technology was original equipment.” Repairing AVs also requires knowledge about repair and replacement of sensors, knowledge of electrical theory and information technology, and understanding of A AS technology. A AS assist drivers in driving and parking functions,” Farnsworth said. “Through a safe human-machine interface, A AS increase car and road safety, using automated technology, such as sensors and cameras, to detect nearby obstacles or driver errors, and respond accordingly. A AS are developed to automate, adapt and enhance vehicle systems for safety and better driving. Although cars with A AS are involved in fewer collisions, these systems are the costliest to repair.” iscussing the number of sensors on a modern vehicle, which can exceed 100, Farnsworth pointed out even the headlights and tires con-

tain sensors, and she predicted more sensors will be added to vehicles as they evolve. The addition of so many sensors necessitates scanning and calibration procedures. “Sensors are the eyes and ears of A AS, and when A AS need to be serviced, it requires special equipment, operated by a specially trained technican,” she noted. “Many previously simple repairs now require A AS calibration, which includes cameras, sensors and controllers, and requires specialized tooling and equipment.” Farnsworth reminded, A AS systems use multiple sensors, and all need to be validated to solve the problem. In addition to the increased cost, the vehicle often requires a recalibration of the entire system, an additional cost.” How does this impact the collision repair industry “As connected, automated and autonomous and smart cars rapidly increase, so does the demand for knowledgeable leaders, certiﬁed and credentialed employees, and skilled workers with access to the latest information, since new technologies

are being released every day,” Farnsworth said. “Collisions are projected to reduce, but the cost to repair will increase. The repair process will include the need to recalibrate sensors, which requires consistent up to date information on new technologies and real-world experience to stay relevant.” Before ending with a Q & A session, Farnsworth encouraged attendees to “Get involved! Find out about the latest technologies available and where you can receive training. There are so many opportunities in this ﬁeld, and we need to understand the various issues happening as we connect vehicles with and satellites. iscover a new passion that will lead you into the new future of transportation.” For more information on The NEX T Education, visit thenexted. com. WIN will hold its 2021 Scholarship Walk virtually, April 18 through May 2. The 2021 WIN Educational Conference, also held virtually, is scheduled for May and . For more information on WIN, visit www.womensindustrynetwork.com.

EV Market Declined in 2020 Less than Overall hile the fleet market took a hit like most other industries due to the pandemic, the electric vehicle sales declined by only 14% compared to the overall vehicle sales decline of 28% in 2020, said eroe Inc. The fleet management companies and car leasing companies are steadily increasing their dependency on electric vehicles as large MNCs have started framing electric vehicle policies. These car fleet management companies are piloting EVs in multiple countries and providing incentives to their staff for adopting this more environment-friendly mode of travel. This trend will see an upward surge in the next couple of years. The reason for the thrust on electric vehicles comes from the increasing interest in investing in alternative fuel options, said the report. Governments are offering tax subsidies and incentives that have driven up EV sales. The debate on carbon emission has pressed organizations to look at zero-emission options. Source: B eroe, I n c.

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

ASA Bonus Webinar Explores Value of Return to Work Programs

Southeast employees Newson workers’ compensation make about 6 6 % of normal wag-

O n March 31, ASA hosted a special bonus webinar, “Importance of a Return to Work Program for Your with Chasidy Rae Bottom Line,” featuring Nick DiCarlo, vice president, regional sales director, AmeriTrust CO NNECT. Explaining the purpose of a return to work (RTW) program, he defined it as a return to health and with Chasidy Rae happiness.” When employees are absent on workers’ compensation insurance, it impacts the productivity of the shop and the business’ bottom line. RTW programs allow employees to return Chasidy Rae to their normalwith or modified ob duties as quickly and safely as possible, minimizing the indemnity of a claim. In addition to lowering costs of workers’ compensation, studies have with Chasidy Rae proven allowing injured employees to return to their regular schedule and environment, albeit with possible limitations based on doctor recommendations, helps them get back to their normal with duties faster as well. Chasidy Rae i arlo explained the benefits “RTW programs reduce employee days away from work, enables them to recover more quickly, and it fosters a positive work environment, also showing other withemployees Chasidyhow Rae much you care. These programs reduce the financial impact of workplace injuries, improve your ability to manage an injury claim and any restrictions, and increase producwith Rae tivity by getting yourChasidy experienced employees back to work. RTW programs also allow you to keep in regular communication with your injured employees, while keeping them productive.” with Chasidy Rae The employee also benefits. ith RTW programs, the employee retains full earning capacity in most states,

es. They maintain their regular work Sisk

schedule, do not need to depend on a disability system and have a greater sense of security and stability. “RTW programs make team members feel that you care about them and getting them back to work,” Sisk according to i arlo. This tends to create a stronger sense of loyalty long-term. Also, employees are able to maintain a productive mindset because they feel that they’re contributing to the team, and that will benefit Sisk them personally more than sitting around, doing nothing.” So how can a shop put a RTW program in place First, know the facts―conduct preliminary research about RTW Sisk programs to learn about the potential for costs savings and how to adapt the programs to meet your company’s needs. Next, gather data by asking coworkers their thoughts on RTW pracSisk tices to determine how much work will be needed. Then, demonstrate a commitment to early RTW, but be sure to clarify the company is committed to the recovery process above all else. Sisk reate clearly defined goals and objectives for the program so employees know what to expect, and appoint a team to lead the RTW initiative, setting expectations and communication Sisk channels. “In a small shop, the owner may be the whole team, i arlo acknowledged. evelop a workflow chart that outlines the RTW program, and use Sisk the workflow to identify the next steps, eliminating confusion in the RTW process.

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Next, develop and maintain a job bank to include a list of possible transition roles for injured employees returning to work. A communication and education plan is also needed to ensure employees are aware of their job responsibilities, both before and after an injury occurs, both while limited and following recovery. Keep a transitional duty database to measure the success of the program, making adjustments where needed. Finally, distribute the plan. Make sure the RTW program is easily accessible to all employees. “Make sure everyone understands it’s in place and how it works,” i arlo said. Employees, including new hires, should sign and date acknowledgement forms to reduce the shop’s liability.” Being back at work aids in recovery. “O ften, people on workers’ compensation are just sitting around, which doesn’t help them recover,” i arlo said. etting back to work and doing their job within their physical limitations helps them recover faster and get back to their regular duties quicker.” The employee’s doctor will determine what limitations exist and an appropriate guideline for them to return to work. The employee will agree to provide this information to the shop owner as part of the acknowledgements however, the shop owner cannot reach out to the employee’s doctor directly. i arlo wrapped up T programs provide a positive ﬁnancial impact on the company’s bottom line, which allows for things like raises and bonuses. It’s important to show your team that this bene-

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fits everyone, not ust the business. Before the webinar concluded, i arlo briefly mentioned the upcoming launch of Ameritrustconnect.com, a new consumer portal being launched in conjunction with ASA, which allows shops to purchase workers’ compensation insurance online. “This is going to be great innovation we’re bring to associations that will save shops time and money,” he said. “You’re buying directly from us. Simple, fast and direct is the goal here.” O n April 21, ASA’s next Webinar ednesday, the first of a two-part series, will feature Rick E scalambre of Independent Contract Technical Training, as he talks about “Identifying ifficult-to- un Monitors Using In-U se Performance Tracking.” For more information or to register, visit asashop.org/asa-webinars.

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36 MAY 2021 AUTOBODY NEWS / autobodynews.com

Midwest_Issue_0521.indd 36

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autobodynews.com / MAY 2021 AUTOBODY NEWS 37

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CCC’s 2021 Crash Course Report Offers a Glimpse of the ‘New Normal’ by Ed Attanasio

What will the “new normal” look like and how will it aﬀect the collision repair industry The I - pandemic has forced businesses to evaluate key issues such as supply-chain sourcing, telecommuting and how to work with insurance partners, vendors and customers. et ready for increasing A AS technology, fewer drivers on the road and more severe accidents due to speeding and reckless driving. In addition, more people will continue to work at home and, as a result, change the types of car insurance they choose. Recently, CCC Information Services, Inc. (CCC) unveiled its annual Crash Course report, the cumulation of a full year of research, analysis and looking for trends that can potentially impact the industry for many years to come. The person behind the report is ’s irector and Industry Analyst Susanna Gotsch, who authors the report every year. She wrote the ﬁrst one in , when A AS was still in its infancy.Today, many shop owners worldwide covet the information presented in CCC’s Crash Course report. If you’ve been in the collision industry for more than a few years, you know CCC’s Crash Course report provides revealing industry-leading insights on the business, consumer, environmental and technology trends shaping the P& C insurance economy. This year’s report provides a substantive view of how I reshaped the industry with shifts in driving behavior, attitudes toward personal mobility, adoption of telematics-enabled usage-based insurance, and exponential growth in the digitization of operations across the claims and repair experience. “Crash Course illustrates how I impacted our industry and the trajectory of change moving forward,” Gotsch said. “CCC has published Crash Course for 26 years and this edition reveals unprecedented change. And though we expect some changes, like miles driven, to revert to pre-pandemic levels, we project other changes will

become the new baseline, as photos, mobile, AI and customer demands have reset expectations and changed how we work. “To help make sense of the rapidly changing market dynamics and accelerating innovations, the Crash Course team is evolving how we bring information to you,” she said. “We’re excited to deliver a unique Crash Course report each quarter in 2021, sharing the most current data

available and even timelier insights for the auto industry and related ecosystem, how people decide to buy, own, insure and drive their cars will determine, in part, how we move forward as an industry. “How these interconnected decisions and data points are shifting and changing as a result of the I pandemic is important to monitor and frame in the reference of what we are seeing in the market right now.” The 130-page report draws insights from decades of experience from processing more than 200 million claims-related transactions, billion miles of driving data and millions of auto BI and PIP/MedPay casualty claims. CCC is committed to providing the industry with information and data to create more visibility into what’s ahead, informing understanding to positively impact business outcomes. Key topics covered in Crash Course 2021 include: The rise of tech-enabled I customer experiences in insurance how I became the spark for consumers to take another look at usage-based insurance why saw more severe accidents and the impact on the repair process I - ’s impact on the casualty claims process and health care, and the role of vehicle technology in increasing repair costs. When people stopped driving

last March, Gotsch witnessed some very distinctive trends that appeared overnight. “Everything that happened was the byproduct of the fact that people stopped driving,” she said. “It meant that there was less congestion, which led to things such as erratic driving habits, speeding and more cases of distracted driving. “There were more younger drivers on the road than normal because elderly people were also driving less due to their compromised health and other reasons. Younger drivers equal more distracted driving, as well as drunk driving and drug-related driving. It led to a riskier, faster and more dangerous cocktail of driving behavior. “California and less-populated states such as Wyoming and Nebraska reported a huge spike in the total number of citations that were written for drivers who were driving in excess of 100 mph, for example.

“The numbers of people who die every year in this country are equivalent to a 747 crashing every day without any survivors, but people don’t seem to want to understand how broad the devastation actually is,” Gotsch said. “People say that it’s more dangerous driving to the airport as opposed to getting on a plane.” As previously noted, the I - pandemic led to a significant decline in claims and congestion, logically leading to fewer but more expensive claims. Consumer preference for light trucks and vehicles loaded with the newest technology forged ahead, further driving repair complexity and higher costs. When a claim did happen, insurers oﬀered customers new curated digital capabilities embedded with AI, helping accelerate overall cycle time at the front end by enabling the customer to make faster and more informed decisions. In 2020, carmakers didn’t slow down when it came to developing new A AS technology, which

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mea edge mod

and ue to satis falls cust tion the ingn insu ers m to fe crea

ple’s shop com

it w safe rese is cl diﬀe opti from choo fam or o

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means shops have to be more knowledgeable than ever about the newer models in order to survive. “With rising repair complexity and costs, repair cycle times continue to grow,” Gotsch said. “Customer satisfaction with a repair typically falls as repair costs rise, as does a customer’s corresponding satisfaction with the insurer’s handling of the claim and the customer’s willingness to recommend that shop or insurer. As repair costs rise, consumers may need more frequent updates to feel informed, and potentially increase the average service score.” Post-pandemic changes in people’s lifestyles will directly affect shops’ car counts for many years to come. “No one really knows how long it will take before people will feel safe enough to return to something resembling pre-pandemic life what is clear is that things are likely to be different, otsch said. ith the option for more individuals to work from home in the future, people may choose to relocate to be closer to family, find less expensive housing or other reasons, as we saw early in

the pandemic. “This could potentially slow the shift toward urban areas that the U .S. experienced over the last decade. Many do anticipate some share of remote work in the U .S. will be permanent.” People will continue to work at home or virtually in 2021 and beyond. If approximately 40% of jobs could be done remotely, but workers chose to do so only one day per week, there would still potentially be an impact to daily travel. O verall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush hour trips, less congestion in urban areas and freer movement of remaining traffic, otsch said. “In many ways, the pandemic environment has actually given us some idea of what the future may look like, and what that means to our industry, she said. espite an estimated $ 18 billion in auto premiums returned to customers because of the pandemic, the percent of consumers that indicated they were ‘ very satisfied’ with their auto insurance carrier fell from 6 8% in late March 2020

by the end of August. As of early ecember, a study conducted by ENGINE CARAVAN found of vehicle owners continued to drive less, with of those who reported driving less posting at least a decline in miles driven, according to CCC’s Crash Course report. Not surprisingly, interest in user-based insurance (U BI) policies grew as people recognized they were driving less and wanted more transparency around how their policies were priced. In their annual reports submitted to NHTSA, automakers also showed just how far they have come toward equipping vehicles with the building blocks for full vehicle autonomy and A AS. A AS includes technologies such as front crash prevention or warning, lane departure warning, blind spot detection, park assist, back-over prevention, obstacle detection and autonomous emergency braking. The reports are submitted annually by the 20 manufacturers that pledged to e uip at least of their light-duty cars and trucks with a gross vehicle weight of , lbs. or less

with the crash avoidance technology by the production year of 2022. hen A AS technology went mainstream a few years back, the collision repair industry was put out on the front lines first, versus mechanical repair, which is unusual,” Gotsch said. “The main challenges for body shops are daunting because the Es have different names for these systems and with consumer demand high, they’re all packaged differently and operate differently. “So, understanding what’s going on with a car when it comes into your shop and then trying to fix it―these are some pretty significant challenges. The question is where and what should you invest in, or should you use a third-party company to do your diagnostics was a year of uestions will 2021 provide us with some of the answers as we emerge from these uncertain times To find out more, get a hold of the CCC Crash Course report to anticipate trends before they affect you.

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Midwest_Issue_0521.indd 39

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with Ed Attanasio

Shop Strategies

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

with Stacey Phillips

How a Shop Owner Enhanced Employee Culture While Providing Outstanding Service During COVID-19

Body Shops Giving Back

ing time looking at disaster loans or We got stuck on all reading one Clay Hoberecht, owner of B es t B od y Sh op in Kansas, said he is crazy about Paycheck Protection Program (PPP) book for a while, but now we’re loans and figuring out what the best choosing separate books. I’m readthree things: his with customers, their cars Stacey Phillips fit is. ther times, it is working on ing Never Split the ifference by and his team. “We want rabid fans, not just the shop flow, learning how to fix Chris V oss. A couple of guys just vehicles better, training or spending finished reading an’t urt Me by satisfied customers, said oberecht. David Goggins. With a passion for repairing ve- time with the team. We shut down for 40 days and Another good book is “The hicles correctly, Hoberecht said his team works hard to provide outstand- used that time as an opportunity Five ysfunctions of a Team by with Stacey Phillips ing customer service by maintaining to continue moving forward in our P atrick Lencioni. That author also wrote a book called “Geta culture of humility and expertise. ting Naked,” which is about “We are driven to succeed and being transparent with your have a hunger for knowledge,” he teammates. That one, in said. particular, has made a sigHoberecht and his wife, Barbanificant difference in our ra, started the Wichita business in a with Stacey Phillips shop’s culture. 2,700-square foot facility in 2014. Recently, I was talking O ver the years, the operation exto Mike, my painter, about panded. They eventually purchased being vulnerable and transthe building next door, increasing parent with each other. We their space to 10,000 square feet both felt that our team now and focusing on collision repair, Clay and Barbara Hoberecht opened Best Body Shop in has a better level of trust body painting, paintless dent repair Wichita, KS, in 2014 with Victoria Antonelli than we ever had. There , car restoration, hail damage business and not retract it. uring was obviously a milestone of educaand other services. Aut ob od y N ew s asked Hoberecht that 40 days, we rebuilt the en- tion that has made a major change in how the shop owner has enhanced tire shop, invested in new Spanesi our shop’s culture. his culture with employees during equipment and tools, and focused How did you adapt your busiI - while providing outstand- on training and Standard O perating Procedures (SO Ps). ness once it opened again ing customer service. with Ed Attanasio Timothy W. Morgan, chief opWhen we opened the shop hen the pandemic first erating officer at Spanesi Americas, back up to the public, it was broke out a year ago, how did was instrumental in helping Best Body Shop achieve this. Things are like a fren y. e offered a discount you and your wife react going exceptionally well right now. to customers, which was a big part of how we became busy really quickly. Without a shadow of a doubt, What steps did you take to That busy-ness stayed for quite a few the last year has been intense. with Gary build a team environment and months. Between the political issuesLedoux and uring the presidential race, we I - , the market has been how has it impacted the culture at your shop noticed a major slump and the shop volatile. slowed down. There was a lot of tenThe No. 1 thing Barb and I did I wanted to get to know my sion in the air and I don’t think people right off the bat when we very first employees better and found cared about the aesthetics of their vestarted seeing a downturn in the economy is we immediately went this was a great opportunity to do hicle. nce that passed―whether or withwith Stacey Phillips that. As a team, we began to read a not you liked the results―it seemed into protection mode our business. We made the decision to have lot of books about culture, trust and there was a little bit of pressure reno retraction whatsoever and agreed building a team that can reply on one lieved in the market and business another. Then we discussed what we ramped up again. to move forward no matter what. We’ve also noticed a ramp-up From then on, we made sure learned. I shared my heart with the team in our production ability because of that every move we made was not a retraction. We were able to hold each and told them that I didn’t want to the trust we built with the employother accountable, and Mike the team was be the one picking out the books all ees. I felt like we had a strong culwith Anderson the time. This isn’t a school and I’m ture before, but it is mind-blowing able to hold us accountable. I has Sometimes, moving forward not their dad. I wanted to see their that enhancing it during doesn’t mean getting a lot of cars interest in personal growth and I’m made such a difference. It’s like we are a well-oiled machine. in the shop. It might mean spend- happy to say that we’ve seen that.

Tips for Busy Body Shops My SEMA

Shop Strategies

Product Innovation

Q: A:

OE Shop Certification

A: Product Innovation

From the Desk of Mike Anderson

What are some of the procedures you’ve implemented for customers

We’ve had an appreciation for our customer base but that has grown over time, especially now. Customers come in and tell us that they want to support small businesses and we want to show our appreciation to them. As a result, we have done anything and everything we can to go above and beyond for customers. This includes providing a concierge service. We have been a lot more open to picking up and delivering people. O ur customer service representative (CSR)’s main focus is to build relationships with customers. We spent a tremendous amount of time consistently going over what can we do that is above and beyond. O nce a month, Barbara, myself and J osh, our S , sit down and pick ﬁve customers who have either referred work to our shop or had their car repaired here. We do tremendous research to ﬁnd out what they like and purchase a gift for them. We’ve bought autographed jerseys, baseballs, barbecue kits and even a gun holster. We want to show our appreciation to those who are supporting our business. uring times of extreme behavior, such as I - , there are extremes on both sides. As a result, I’ve seen more giving hearts and more empathy and sympathy than I’ve ever seen. We want to be part of the solution and not part of the problem no matter what is going on that is creating this craziness in society. We have no desire to compete with other shops. We want to dominate and compete with ourselves.

What is your advice to other shop owners who are reinventing their business right now due to I -

I receive a tremendous amount of phone calls from shops across the country. Many people I See Service During COVID, Page 44

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Cox Automotive March Forecast: U.S. Auto Sales Pick Up Pace Heading into Spring March U .S. auto sales, when reported the last week of March, will show strong growth over February’s pace and a signiﬁcant increase over last year’s pandemic hit numbers. The seasonally adjusted annual rate (SAAR) of sales this month is forecast by Cox Automotive to hit . million, up from February’s

were reported. The sales recovery has been choppy since September. The SAAR has bounced around between the upper- to mid- million levels over the past six months. A return to the higher end is expected in March. The sales pace should improve this month after being hampered by winter storms that disrupted much

“Supply chain disruptions that continue to plague the industry are adding to the short supply situation. — Charlie Chesbrough . million pace and well above last March’s dismal 11.4 million level. Sales volume is forecast to increase nearly over last March and reach 1.48 million units. hile sales in the ﬁrst uarter have been healthy, they remain below pre-pandemic levels. Total sales in Q 1 2021, forecast at 3.77 million units, will be up 8.7% versus Q 1 2020 but down 4.9 % from Q 1 2019 , when 3.9 7 million sales

of the country in February. With the deep freeze impacting markets as far south as Houston and disrupting millions of lives and businesses for days, many sales were likely delayed into early March. Also, the distribution of stimulus checks is well underway, and we’ve already noticed upward movement in our daily sales tracking numbers as a result. “Inventory levels are tight right now, though, and this could hinder

the market in coming months,” said Charlie Chesbrough, senior economist, Cox Automotive. “Supply chain disruptions that continue to plague the industry are adding to the short supply situation. Although lean inventories have not had much impact on buyers in the ﬁrst uarter, that will likely change as we move into Q 2. The production disruptions happening now will turn into even lower inventory in the months ahead.” March Sales F orecast Highlights • In March, new light-vehicle sales are forecast to increase by 49 0,000 units, or nearly , compared to March 2020. When compared to last month, sales are expected to rise nearly , units, or . . • The SAAR in March 2021 is estimated to be . million, above last year’s 11.4 million level and an increase from last month’s . million pace. There are 26 selling days this month, one more than last year and two more than February, so additional time will also help lift sales. • Year-over-year comparisons will

become less relevant in the months ahead as large year-over-year increases are reported. Compared to March 2019 , sales volume this month is forecast to be down by more than 8%. March 2019 had one additional selling day than March 2021. • First-quarter sales are forecast to be up 8.7% compared to Q 1 2020 but down 4.9 % versus Q 1 2019 . Cox A utomotive Q 1 2 0 2 1 U .S. A uto Sales W ebcast The Cox Automotive Industry Insights team will host a webcast at a.m. ET March . uring the event, the team will discuss key economic indicators driving the auto market, review the 2021 forecasts and oﬀer analysis of new- and used-vehicle sales for March and the ﬁrst uarter. The presentation will be followed by a Q & A session. RSVP to attend. Source: Cox Automotive

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Las Vegas Ready to Welcome 2021 SEMA Show by SEMA Editors

ith more than five weeks to go before the SEMA Show space agreement deadline, show management reports more than 1,000 exhibitors have already been confirmed for the 2021 event. The news is significant, and underscores the work Las Vegas and its businesses are doing to welcome back large-venue events like the SEMA Show. The Las Vegas Convention Center’s newly constructed West Hall, a 1.4-million square foot facility, was completed in J anuary, and will house exhibitors from the Restyling & Car Care Accessories, Powersports & U tility Vehicles and Truck, SU ff- oad sections. As the city continues to ramp back up to host events, the buzz among exhibitors anticipating the return of the in-person SEMA Show for 2021 has increased significantly. eople are eager to get back to the SEMA Show and reestablish their in-person connections with colleagues and customers,” said Vice President of Events Tom Gattuso. “The groundswell of excitement among

exhibitors increases each day, and the show is the ‘ main event’ that the industry is looking forward to in 2021.” The 2021 SEMA Show is a little more than seven months away, and show management continues to work closely with the convention center authorities and the state of Nevada to help deliver the best SEMA Show ever. SE MA Show Dates to Remember The Exhibitor Services Manual (ESM) will be live in May. The ESM contains all of the forms and applications required to prepare for the show: feature vehicles, new products, booth vehicles, celebrity appearances, etc. eadline to submit Exhibit Space Rental Application and deposit is May 7. SEMA Show Space Selection: J une 7-23. Reserve booth space for the 2021 SEMA Show at www.SEMAshow. com/exhibitor. For complete information about the 2021 SEMA Show, visit www. SEMAShow.com.

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42 MAY 2021 AUTOBODY NEWS / autobodynews.com

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Nominations Open for NABC Awards

Teens Who Get a Driver’s License at 16 Will Cost Their Families Over $33,000

The National Auto Body Council announced it is opening the nominations for its 2021 awards, the NABC Changing and Saving Lives Award and the NABC President’s Award. The NABC President’s Award is designed to honor the NABC member company that supports the vision of the National Auto Body Council through donation of their time and resources. Companies will be nominated by the NA oard of irectors, and members at all levels of NABC membership are eligible. The NABC Changing and Saving Lives Award recognizes the individual in the collision repair industry who has delivered exemplary service in the NABC mission of Changing and Saving ives Every ay, far beyond their role in the industry. Individuals may be nominated by a member of the NA oard of irectors or by the public. The winners will be named during the annual SEMA Show in Las Vegas. Nominations will run through Aug. . Source: NABC

Getting a driver’s license is one of the biggest rites of passage for 16 -year-olds across the country, but can American families aﬀord the expense in epending on the state, a teen driver can take up as much as 19 % of a family’s income just for car insurance costs alone, according to a new ValuePenguin.com by LendingTree report. By waiting until the age of 22 to drive, young drivers can save families an average of $ 33,09 1 on car insurance. ey ﬁndings Adding a 16 -year-old as a driver of an insured vehicle costs an average of , a year. Even with a good student discount―which only lowers insurance costs by an average of across the country―adding a 16 - to 19 -year-old to a family’s car insurance policy costs $ 4,79 9 a year on average. y waiting until age ―the age when many young Americans graduate from four-year college― young drivers can save their families an average of $ 33,09 1 over the six years they waited. Additionally, the cost of adding a new 22-yearold driver to a car insurance policy

drops by 37% to $ 3,9 31 a year. Families in Michigan, Louisiana, Arizona, Florida and Kentucky will experience the biggest financial burden if their 16 -year-old got a driving license. Families here will need to allocate 10.9 % to 19 % of their incomes to insure a teen driver. Good student discounts here reduce overall annual expenses by less than 2%. Families in poor neighborhoods pay significantly more for car insurance when adding teen drivers to existing policies, especially in big cities. In New York, lower-income families will need to pay , more for car insurance than the wealthiest if they added a teen driver to their policy. The trend is the same in Los Angeles ($ 441 more) and Chicago ($ 2,242 more). “A teen driver can be a heavy financial burden for most, but that burden might be heavier to bear in a year when many American families are struggling,” said Andrew Hurst, insurance data analyst at ValuePenguin.com by LendingTree. “The data shows that the most financially at-risk families are the same who can least afford to pay the inflated

premiums it takes to add a teen driver onto an existing policy. “If families are able, encouraging a teenager to wait until they’ve graduated could make a lot of financial sense,” Hurst continued. “For those who don’t have the luxury of waiting — because they need multiple vehicles for work or school, or because they live in areas with poor public transportation―the discussion is a lot more difficult. To view the full report, visit https://www.valuepenguin.com/ cost-of-adding-young-driver-tofamily-car-insurance ValuePenguin.com analysts looked at insurance rates for 16 through 22-year-old drivers across the country who did and did not qualify for good student discounts, to determine the cost of adding these drivers to an existing policy as the third driver of a vehicle. The young driver’s -year-old parents were primary drivers of the insured vehicle. Rates were publicly sourced from insurer filings and should be used for comparative purposes only, as individual uotes may be different. Source: ValuePenguin

MINI Will Switch to Fully-Electric Vehicles By Early 2030s by Andrei Nedelea, Inside EVs

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Automakers are scrambling these days to not only churn out more and more electric and electriﬁed vehicles, but also to stop making fuel-burning vehicles as soon as possible. MINI seems like it’s one of the most ambitious in this regard, with the BMW-owned brand announcing its goal to launch its last-ever internal combustion-engined vehicle in , and to not have any more of them for sale by the early 2030s. The news was broken by O liver Z ipse, BMW chairman, who mentioned it during the BMW Annual Conference 2021 that mainly focused on the reveal of the production spec BMW i4 electric sedan. If MINI does stay true to the claims, it will rid itself of ICE quicker than its parent brand, BMW, and it wants full EVs to account for half of its annual sales by the year 2027. Right now, MINI only has one

pure-EV in its roster, the Cooper SE two-door, which will eventually be joined by a four-door hatch variant. However, MINI plans to launch more EVs after 2023 when it expects to complete work on a new electric car platform which it is jointly developing with China’s Great Wall Motors. The ﬁrst model to be underpinned by this new platform is believed to be the next-gen MINI Countryman, which will be sold both with ICE power as well as a fully-electric powertrain. BMW says this new Countryman crossover will debut in 2023 and will be assembled at BMW’s plant in eip ig electric MINIs will also be built in China starting the same year, through the collaboration with Great Wall. We thank Inside EVs for reprint permission.

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Farmers Insurance Finds More Than Half of Drivers Admit to Using Cell Phones While Behind the Wheel The vast majority of drivers understand the danger cell phones present on our roadways, but survey data from Farmers Insurance reveals a signiﬁcant gap between this belief and drivers’ actual behavior. According to the survey, 87% of drivers surveyed believe that people who use their phone behind the wheel pose a danger to others. Yet, 53% of those drivers admit to making a call behind the wheel and 45 percent admit to sending, reading or receiving a text message. Gen Z and Millennial drivers surveyed also admitted to participating in video chats (32% collectively), posting to or viewing social media (28%), playing a game (27%) and streaming video (24%) while behind the wheel, suggesting younger drivers could face continued driving distractions as technology continues to evolve. “It’s understandable that today’s drivers feel a conﬂict―people know that phones, and the distraction they introduce, pose a risk and can interfere with safe driving; however, phones can be tempting and pull our attention and focus,”

said Carolyn Wald, head of product innovation integration for Farmers. “With April being National Distracted Driving Awareness Month, we want to remind people that there are a few precautions and tools we can all use to help keep our attention focused where it belongs, and to help keep the roads safer for everyone.”

Farmers offers its safe-driving app, Signal, to help drivers recognize behaviors that may be taking their attention off the road and earn a discount for focused driving. The insurer also recently launched CrashAssist within the Signal app, a feature that can detect crashes and help connect drivers to emergency and support services. Signal users can receive push notifications should a crash be detected then be connected with emergency services, and get help reporting a claim. After 2020 saw an 8% spike in

traﬃc fatalities according to the National Safety Council, this month’s observance of National Distracted Driving Awareness Month hits even closer to home as all drivers share a responsibility to practice focused driving when behind the wheel. Wald recommends the following tips to help people stay safe when they hit the road: Make your car a “no phone zone”: It may seem like a no-brainer but limiting mobile phone use is one of the easiest ways to become a more focused driver. And don’t forget, hands-free calling and voice texting can still be a distraction while you’re on the road. If you ﬁnd it helpful, use an app to silence phone calls and texts when you’re behind the wheel. Multitask later: The last place you should be multitasking is behind the wheel of a car. Avoid eating, glancing at your calendar, searching for dropped items or anything else that can take your attention away from the road. Chat light: Take a cue from the 33% of those surveyed who believe that talking to passengers, includ-

The 2021 state legislative sessions are in full swing and SEMA’s Government Aﬀairs team is working non-stop to ensure positive outcomes for business.

Below is a summary of SEMA’s most recent hard-fought victories. To receive the latest breaking news from your home state, be sure to join the SEMA Action Network (SAN) for free. After receiving hundreds of opposition letters from SEMA-member companies and enthusiasts, the Nevada legislature did not act on a bill that would have restricted the registration of hobbyist vehicles. SEMA testiﬁed in opposition to a Nevada bill that would have

outlawed most vehicle exhaust modiﬁcations. The bill failed to advance prior to a key legislative deadline and cannot be considered again until 2023. In the face of SEMA’s opposition, the Wyoming legislature killed a bill that would have signiﬁcantly restricted antique vehicle registration eligibility. Thanks to SEMA’s effort, Kansas Gov. Laura Kelly signed into law a version of SEMA’s model legislation to allow for the registration and on-road use of surplus military vehicles. The Kansas legislature passed a SEMA-supported bill to ease restrictions on antique vehicles. The bill is sponsored by SEMA State Automotive Enthusiast Leadership Caucus member Rep. Leo Delperdang and awaits Kelly’s signature or veto. After an outpouring of support from the industry and enthusiasts, Montana Gov. Greg Gianforte signed into law legislation to expand single license plate usage.

Source: Farmers Insurance

Continued from Page 40

SEMA Scores State Legislative Victories by SEMA Editors

ing those in the back seat, poses a danger to others on the road. Save serious conversations and important news with passengers for when you’re oﬀ the road. Instead, keep the chatter light so you can focus on the road ahead. Buckle up children and pets: Make sure children and pets are properly secured in their seats before starting the ignition. In many cases, the safest place for your children and four-legged passengers is in the back seat of the car. Park it: Always pull over and park in a safe place before adjusting controls in your car, tending to a pet or child, sending a text or talking on your phone. Get an app for that: Consider downloading an app that rewards you for focused driving behaviors, like Signal from Farmers. Households who enroll in Signal will automatically have access to CrashAssist. A Signal discount is also available in some states. For more information, visit: https:// www.farmers.com/signal/.

At the urging of SEMA, Virginia Gov. Ralph Northam signed into law legislation to expand imported foreign-market vehicle titling. With SEMA’s support, Idaho’s legislature passed a bill creating a new custom vehicle registration class. The bill awaits Gov. Greg Little’s signature or veto. With backing from the industry, Mississippi Gov. Tate Reeves signed into law SEMA-supported legislation to expand titling eligibility for older vehicles. * West Virginia approved SEMA-supported resolutions calling for the creation of an interstate oﬀ-highway vehicle trail system. The measures were sponsored by SEMA’s 2018 Stephen B. McDonald Legislator of the Year Award winner Sen. Mark Maynard and SEMA State Automotive Enthusiast Leadership Caucus Chairman Del. Gary Howell. For more information, contact Christian Robinson at christianr@sema.org. Source: SEMA

Service During COVID talk to struggle with how to fix a car correctly or find time for the training needed to learn how do it. Now is the time to do that. I see too many people utilizing this time as an excuse to fail. During the most challenging times over the last year, there were nerve-racking times. We reminded ourselves that the only way to fail was to quit. So, as long as we didn’t quit, we should be good. And if we’re not, at least we left it all out on the field. Ultimately, that was a successful strategy for us. Throughout this time, I’ve grown a passion for helping the industry and I welcome other shops to reach out to me. We’re all in this together.

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Leasing and Purchasing chase the real estate as part of their retirement or sale model.” He said real estate in this industry is unique, often requiring many modifications to a property, lease-holder improvements that may make leasing less advantageous. “When you purchase a piece of property, often that mortgage is less than you would be leasing it for on a triple net lease,” he said. “There can be some profitability that you can specifically take out of that payment to yourself that creates some favorable tax opportunities for you.” All that said, there are some risks involved in purchasing the real estate, Fisher noted: EPA risks if it is a brownfield, oning issues, easements, tying up too much wealth in the industry even if it’s in two different asset classes. “Too many don’t weigh the potential cost of all that,” he said. He also cautioned anything driving up real estate values does not automatically increase the lease payment

a shop owner who sells the business but retains the real estate can expect from the new shop operators. That remains “contingent big-time” on the cash flow of the business, so a period of business retraction “devalues the lease value” as well, Fisher said. J ohnston said there is one set of circumstances when it is often in your best interest to purchase shop real estate: when your landlord on a property is considering selling to someone else. “You might have had a cozy relationship with that landlord. It might even be someone who sold you the business,” J ohnston said. ut if they’re now flipping that real estate, you have to consider whether the person buying that real estate is buying it because they want you there as a long-term tenant, or if they are buying it because they want to redevelop that property. “It may be advantageous to you to consider buying it if you think there’s a risk of losing what is otherwise a very valuable operational asset. No one wants to have to go find another body shop and relocate a successful operation.”

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Incorrectly folded airbags have caused the National Highway Trafﬁc Safety Administration N TSA to open an investigation into previous recalls of vehicles equipped with the airbags. Airbag manufacturer J oyson said the front passenger airbags may not have been folded correctly during production and could possibly fail to unfold properly in a crash. The problem could occur during times of high temperatures when the internal pressure could increase in the airbags. A portion of the airbag material could be torn when the passenger airbag deploys, or the airbag plate which mounts the airbag to the assembly case could be damaged. Certain automakers recalled vehicles since 2019 to replace the passenger airbag assemblies, but NHTSA has concerns about the replacement airbags and how they were folded. In August 2019 , Toyota recalled about 274,000 model year orolla and -

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Matrix vehicles to replace the passenger airbags because they may not have been folded properly. Included in the recall were 2008 Pontiac Vibes manufactured by Toyota in cooperation with General Motors. And in March, about 26 ,000 model year 2006 -2008 INFINITI F and F vehicles were recalled to replace front passenger airbags that could tear when they deployed. The cause was once again problems with how the airbags were folded. A total of , vehicles are included in the investigation, but the possible passenger airbag problems are not related to Takata airbags at risk of exploding. NHTSA will contact J oyson Safety Systems and the aﬀected automakers to make them aware of the investigation and to ensure the recalls were adequate. CarComplaints.com will update its website with results of the federal investigation.

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FOR YOUR COLLISION JOB. autobodynews.com / MAY 2021 AUTOBODY NEWS 45

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Kia Recalls 2021 Telluride, K5, Forte to Protect Kids by David A. Wood, CarComplaints.com

Model year 2021 Kia Telluride, and Forte vehicles may have problems with the occupant classiﬁcation systems used to detect when children are in the front passenger seats. This could cause the front airbags to deploy when they shouldn’t, namely when children are in the seats. The airbag may cause injuries even if the crash doesn’t. The 142 recalled vehicles need their classiﬁcation and detection systems replaced, but owners may call - . Kia’s number for this recall is SC207. W e t h a n k C a rC om p l a i n t s . com f or rep ri n t p erm i s s i on .

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Erie Insurance National Survey: Americans Eager to Take Road Trips in 2021 While the pandemic cancelled vacation plans in 2020, cooped-up travelers are planning more road trips this year, according to a new national survey from Erie Insurance conducted to support istracted riving Awareness Month in April. More than half of respondents plan to take at least one road trip this year. Another 30% say they would like to but it depends on the status of the pandemic. O f those planning to pack up their car, truck or SU V, more than half plan to travel more than miles from home. “We commissioned this survey to better understand how the pandemic has impacted road travel, and what distractions are impacting driver safety,” said J on Bloom, vice president of personal auto, Erie Insurance. “Based on data collected, there will likely be more people traveling by car who may be distracted by a number of factors, both inside and outside their vehicle. We want this to serve as a reminder for drivers to be safe and aware on the roads at all times.” What’s driving this year’s trav-

el trends The urge to see family and friends is real. When asked where they plan on going during their road trip, the majority (41%) will visit loved ones, while many others are beach-bound (21%) or seeking outdoor adventure at a national park (12%). Most (76 %) expect to travel with just one other person, typically their spouse or partner. Write-in destinations included many outdoor, socially spaced locations―likely a reaction from the pandemic―including campsites, lakeside resorts, lodges and cabins to partake in fishing, golfing, hiking and overall sightseeing activities. More than any other age group, the crowd expects to travel long distances this year―one-third plan to travel more than 1,000 miles. As the first age group to be fully vaccinated, they may feel safer to travel and are eager to finally hug their adult children and grandchildren again. Nearly half the respondents (44%) said they are distracted by other passengers in their vehicle

when driving. O f those, 40% say children distract them the most, followed by a spouse or signiﬁcant other. The greatest distraction for drivers in the three older age groups - , - and was their spouses or signiﬁcant others complaining about their driving skills. In the three younger age groups - , and - , their greatest distraction was noisy children. The older the age group, the less distracted drivers are by things inside their vehicle. rivers , for example, are distracted seven times more by what they see outside than they are by cell phones. Men and women responded similarly to all distractions except trying to eat and drink and using their phone’s GPS. Nearly twice as many men (23%) are most distracted by trying to eat or drink compared to women (13%), while twice as many women are distracted by their GPS (nearly 7%) compared to men (nearly 4%). Source: Erie Insurance

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asTech Acquires Red EU & Red Autocentres Repairify, Inc. d/b/a asTech, a portfolio company of Kinderhook Industries, LLC, announced March 24 the acquisition of Red (EU ) Limited and Red Autocentres. Red (EU ) Limited is a leading distributor of aftermarket electronic devices designed to run diagnostic tests and calibration services on automotive electrical systems, spe-

Red provides a complete suite of solutions for the service, maintenance and repair, collision and automotive insurance industries through diagnostic scan tools and automotive electrical system services. Services include local, car-side and remote diagnostics along with sensor calibration, programming and vehicle health support.

“Red is an exciting acquisition that enables asTech to further broaden its suite of global tools and solutions for customers.” — Paul Cifelli ciﬁcally advanced driver assistance systems A AS . ed Autocentres is a leading provider of automotive diagnostics, calibration and programming services for the collision and mechanical markets. The combined companies will operate as Red EU , and represent the 11th add-on acquisition for asTech and inderhook’s th automotive-related transaction. Financial terms of the transaction were not disclosed.

“Red is an exciting acquisition that enables asTech to further broaden its suite of global tools and solutions for customers. With demand for A AS repair and calibration services rising, asTech looks forward to continuing to be the solution provider of choice for customers seeking to properly repair today’s sophisticated car parc,” said P aul Cifelli, managing director of Kinderhook Industries. “Repairify is thrilled to wel-

come Martin Brown from Red, who will be joining the Repairify team as technical director, Repairify Innovations,” said Cris Hollingsworth, president of Repairify. “Expanding into new markets and augmenting service offerings to better serve all customers is key to asTech’s global growth strategy. We look forward to integrating Red, a leading market expert in the U nited Kingdom, which will enable us to further execute on that strategy across the U K, Europe and internationally.” “The merger between Red and Repairify will provide tremendous value and benefits to all of our ed global customers,” said Brown, CEO of Red EU . “Red customers will benefit from having access to a complete portfolio of world class tools, products and services rapidly being integrated under the Repairify global solutions platform.” Mishcon de Reya LLP and Kirkland & Ellis LLP served as legal counsel to asTech. Source: asTech

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Axalta to Host Virtual Capital Markets Day Axalta invites investors, analysts and other stakeholders to a virtual apital Markets ay, a.m. to p.m. ET May . CEO Robert Bryant and members of the Axalta leadership team will present the company’s growth strategy, the business and ﬁnancial outlook and detail plans to drive long-term shareholder value. Presentations will be followed by a Q & A session where participants can post questions and engage with Axalta’s leadership team. Presentation materials will be posted to Axalta’s website at www.axalta.com/investors on May prior to the event. A recording of the webcast will be made available following the event. Participants are requested to pre-register their attendance and can do so here: https://www. bigmarker.com/tv_ /Axalta-Capital-Markets- ay For questions or more information, contact Axalta Investor Relations at Christopher.mecray @axalta.com. Source: Axalta

New Vehicle Inventory Continued to Dwindle in March: Edmunds Consumers in the market for a new vehicle will likely have a harder time finding what they want at an affordable price right now due to severe supply shortages affecting the automotive industry. According to the car shopping experts at Edmunds, new vehicle inventory on sale at dealerships nationwide was down by 36 % in March compared to a year ago, and prices are rising for both new and used vehicles as a result. Edmunds analysts forecast the average transaction price (ATP) for new vehicles will climb to , in March compared to $ 38,6 01 a year ago the AT for used vehicles is expected to hit $ 22,6 6 3 compared to $ 20,273 last year. “The chipset shortage has snowballed into a bigger crisis for the automotive industry,” said J essica Caldwell, Edmunds’ executive director of insights. “Major auto manufacturing plants are implementing temporary closures, and we’re seeing the industry being hit hard on both sides: Retail customers are being offered fewer choices and paying higher prices, while fleet customers

are likely seeing their orders delayed as auto manufacturers shift their focus to serving consumers.” Edmunds analysts note full-size trucks and large SU Vs are among the vehicle categories most disproportionately aﬀected by these shortages. According to Edmunds data, full-size truck inventory was down by 6 0% in March compared to a year ago the average transaction price for new full-size trucks is expected to climb to , compared to , a year ago, while the average transaction price for used full-size trucks is expected to climb to , compared to , a year ago. Large SU V inventory decreased in March compared to last year the average transaction price for new large SU Vs is forecasted to climb to , compared to , in March 2020, and the average transaction price for used large SU Vs is expected to climb to , compared to $ 31,232 a year ago. “Full-size trucks and large SU Vs have been a bright spot for automakers throughout the pandemic because of their proﬁtability, but unsurprisingly these high-demand vehicles have

also been the uickest to fly off the lot,” said Caldwell. “U nfortunately, these supply shortages translate to a bigger financial hit for automakers, and the etroit Three are likely the most affected. In spite of these shortages, Edmunds analysts note a uent consumers have continued to drive a significant portion of financed purchases throughout the first uarter of the year, as indicated by increases in average down payments and the average amount financed for both new and used vehicle purchases. According to Edmunds data, the average down payment for new and used financed vehicle purchases is expected to climb to $ 4,729 and , , respectively, in compared to $ 4,246 and $ 2,6 79 a year ago. The average amount financed for new and used vehicles is expected to climb to , and , , respectively, in Q 1 compared to , and , a year ago. “So far, automakers have been able to comfortably count on financially stable consumers focusing their spending on bigger-ticket vehicle purchases during the pandem-

ic,” said Caldwell. “But as vaccines continue to roll out and consumers crave new experiences and products to spend their money on, automakers and dealers will need to prepare to get more creative in marketing the limited inventory that they have on hand.” Edmunds experts advise consumers in the market for a new car to start shopping sooner rather than later, as they anticipate the chipset shortage is likely to aﬀect pricing and inventory through at least the second half of 2021. “Americans looking forward to their newfound freedom this summer in the form of a road-trip vehicle should be doing their research now,” said Ivan rury, Edmunds’ senior manager of insights. “The summer sales that consumers can typically look forward to might not look the same this year, and even with stimulus checks on the way, the only relief that price-sensitive car shoppers might ﬁnd might be in lower interest rates and the increased value of their trade-in.” Source: Edmunds

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