May 2022 Midwest Edition by Autobody News

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Inaugural Midwest Collision Repair Trade Show a Big Success The inaugural Midwest Collision Repair Trade Show and Conference, held April 1-2 in Overland Park, KS, was a big success. The auto body associations of Iowa, Nebraska, Kansas, Missouri and South Dakota joined forces to create and host the event at the Overland Park Convention Center. The anticipated number of participants was met and surpassed, booth space was sold out and the available sponsorships were also fully sold. “The actual attendance was nearly triple what we had set as our goal for an inaugural event,” said Gina

The exhibit floor at the Midwest Collision Repair Trade Show and Conference. Credit: Mark Claypool

Cotton, cocoordinator of the event and executive director of the Nebraska, Missouri and Kansas associations. See Big Success, Page16

U.S. Rep. Warren Davidson of Ohio Co-Sponsors Federal REPAIR Act by Camille Sheehan, Auto Care Association

The Auto Care Association, Automotive Aftermarket Suppliers Association (AASA), CAR (Consumer Access to Repair) Coalition and Specialty Equipment Market Association (SEMA) applaud U.S. Rep. Warren Davidson, R-OH, for co-sponsoring the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act. Introduced in February by U.S. Rep. Bobby Rush, D-IL, to provide consumers rights to their vehicle’s repair and maintenance data and safeguard a free and fair repair market, the

Credit: wirestock

REPAIR Act (H.R. 6570) is the only federal right to repair legislation that addresses this critical need in the automotive industry. Davidson is an automotive industry alumnus who ran his family

Vol. 11 / Issue 8 / May 2022

Corvette Production Shut Down Again by Steven Symes, Motorious

For a lot of reasons, people feel like they’re living in the movie “Groundhog Day.” Awful stuff seems to be on repeat, like the shutdown of Corvette production in Bowling Green, KY. This time around at least it isn’t due to a tornado damaging the factory. Instead, we’re repeating the parts shortage thing. According to Chevy spokesman Trevor Thompkins, GM’s Bowling Green Assembly plant has seen its first and second shifts completely ceased. Also, those were the only shifts, so C8 Corvettes aren’t being assembled.

Just like in May of last year, GM won’t disclose what component(s) has led to the complete shutdown of car assembly in Bowling Green. And just like last year, the automaker is

denying the offending part is microchip related. Considering all kinds of raw See Corvette Production, Page 8

Bad Driving Has Americans on Edge The roadways changed drastically at the onset of the pandemic, even with fewer drivers on the road, traffic deaths have soared throughout the pandemic. According to the National Highway Traffic Safety Administration, despite miles driven declining by 11%, there was a 6.8% increase in fatalities from motor vehicle crashes in 2020.

See Federal REPAIR Act, Page 18

The problem continued to get worse as people returned to the roadways with fatalities increasing 12% through the first nine months of 2021. Despite a decrease in miles driven, accidents are likely to be more severe—even fatal—from reckless driving behaviors like

speeding or not wearing a seat belt. As we enter Distracted Driving Awareness Month, a new study from Nationwide found drivers are practicing poor driving behavior despite fears of others driving dangerously. Drivers say the road is considerably more dangerous today than before the pandemic, with half saying that driving is more stressful. Reckless behavior behind the wheel is happening everywhere and drivers are taking notice of other people’s wild actions. Compared to 2020: 81% think drivers are more aggressive 79% think drivers drive faster 76% think drivers are more reckless Even more frightening, more than a third of drivers (34%) believe it is safe to hold your phone while driving—whether that is to make a call, send a text or use navigation. This feeling is more prevalent in younger drivers: • 39% of Gen Z and Millennials think it’s safe to be using the phone See Bad Driving, Page 20

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CONTENTS

FREE 4x Monthly E-Newsletter. Subscribe Today! www.autobodynews.com

REGIONAL

Auto Body Shops Billing, Being Paid for

Bills Would Pause Missouri’s Fuel Tax for

Masking During Priming �� 46

6 Months �� 14 Chicago Thieves Take Teen Cancer Victim’s Truck �� 16 Classic Collision Acquires Minnesota

1Collision, Auto Techcelerators Partner �� 44 Bad Driving Has Americans on Edge �� 1 Biden’s FY 2023 Budget Proposal Includes Investments in EVs, ADAS, Autonomous

Auto Body Shops �� 18

Vehicles �� 4

Corvette Production Shut Down Again �� 1

CCC Launches Integration with asTech �� 15

Flint, MI, Man Driving Up Used Car Shortage

CDK Global Supports ASE Foundation �� 46

with Dealership Fraud �� 6

Dingle Family Continues Journey with Their

INDEX OF ADVERTISERS

AUTOBODY

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips, Eric Murphy, Ron Liesch 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

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. ©2022 Adamantine Media LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

American Icon Automotive Finishes �� 22

LaFontaine Buick-GMC-Cadillac �� 30

Audi Wholesale Parts Dealers �� 40

Laurel Auto Group of Westmont �� 31

Axalta Coating Systems. �� 7

LKQ Corporation �� 13

BMW of Des Moines �� 18

Luther Bloomington Acura-Subaru �� 37

BMW Wholesale Parts Dealers �� 41

Luther Brookdale Mazda �� 16

Car-O-Liner �� 19

Luther Kia of Bloomington �� 38

Certified Automotive Parts Association �� 12

Matrix Edge �� 2

Classic BMW MINI �� 20

Mazda Wholesale Parts Dealers �� 44

Classic Chevrolet �� 33

McGrath City Hyundai �� 36

Classifieds �� 46

MINI Wholesale Parts Dealers �� 40

Columbia Hyundai �� 34

MOPAR Wholesale Parts Dealers �� 28-29

Dominion Sure Seal, Ltd �� 15

Nissan/Infiniti Wholesale Parts Dealers �� 44

Eagle Abrasives �� 48

Patrick Hyundai �� 38

Equalizer Auto Glass Tools �� 6

PPG �� 9

Ford Wholesale Parts Dealers �� 42

SATA Dan-Am Company �� 5

Gandrud Parts Center �� 23

Sears Imported Autos, Inc �� 26

Ganley Westside Subaru �� 14

Shaheen Chevrolet Parts Warehouse �� 27

GM Wholesale Parts Dealers �� 39

Spanesi Americas �� 11

Hawkinson Kia �� 34

Steck Manufacturing Company �� 10

Consumer Paid Subscription Share

Honda-Acura Wholesale Parts Dealers ��24-25

Subaru Wholesale Parts Dealers �� 47

in Sharp Decline �� 4

Hyundai Wholesale Parts Dealers �� 45

The Sharpe Collection of Automobiles �� 35

Industrial Finishes and Systems �� 21

Varsity Ford �� 38

Kelly BMW �� 26

Willis Volvo �� 36

NATIONAL

Kia of Lansing �� 32

Wrenchers �� 17

‘Who Pays for What?’ Survey Shows More

Kia Wholesale Parts Dealers �� 43

Gas Prices Continue to Stymie Illinois Small Business Growth �� 10 Inagural Midwest Collision Repair Trade Show a Big Success �� 1 Leap of Faith and Love Delivers Livelong

Recycled Ride �� 42 EagleMMS Software Soars to the Top of Auto Body Shops’ To-Do Lists �� 38 EV Operating Costs Appear Much More Appealing as Gas Prices Soar: Report �� 44

Happiness and Success with CARSTAR

Farmers Insurance Wins NABC Award �� 18

for Ohio Family �� 12

GM Headlight Recall Issued Over Low-Beam

LG Energy Solution Announces $1.7 Billion Plant Expansion in Michigan �� 10 NABC Recycled Rides Program Donates ®

2 Refurbished Vehicles to Springfield, MO, Recipients �� 8 NABC Recycled Rides® Program Donates Refurbished Vehicle to Ronald McDonald House Charities® of St. Louis �� 15 New Engineering Jobs to Support Toyota’s Electric Future �� 6 PPG Honors ColorVision with 2021 Platinum Distributor of the Year Award �� 8

Glare �� 20 GM to Expedite Hummer EV Production as Reservations Increase to 65,000 �� 47 Improved Semiconductor Supply Drives Truck Market Share Gains for GM �� 47 New Standardized Independent Adjuster Competency Exam Announced �� 41 Startups, AkzoNobel to Collaborate �� 10 Supply Chain Issues and Repair Complexity Major Concerns in 2022 �� 30 U.S. Rep. Warren Davidson of Ohio Co-Sponsors Federal REPAIR Act �� 1 USDOT Announces New Vehicle Fuel

COLUMNISTS

Economy Standards for Model Year

Anderson - Tips to Help Auto Body Shops

2024-2026 �� 45

Get Paid for Crucial Step of Destructive Weld Testing �� 26 Yoswick - Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics �� 34

Vehicle Connectivity Surging, but

WIN to Recognize 2022 Most Influential Women Award Winners During Hybrid Educational Conference �� 22

autobodynews.com / MAY 2022 AUTOBODY NEWS 3

Biden’s FY 2023 Budget Proposal Includes Investments in EVs, ADAS, Autonomous Vehicles President Joe Biden released his $5.8 trillion budget proposal for fiscal year 2023, which builds on the investments made in the Infrastructure Investment and Jobs Act, passed last year, by allocating $105 billion to the U.S. Department of Transportation.

Included in the budget are important projects for independent vehicle repair shops related to vehicle safety, autonomous vehicles, electric vehicle deployment and emissions reductions. The budget includes $49.8 million for the National High-

“From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.” — Pete Buttigieg “The investments in the presdent’s budget make traveling safer, easier, cleaner and more affordable for the American people,” said U.S. Transportation Secretary Pete Buttigieg. “From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.”

way Traffic Safety Administration’s (NHTSA) Vehicle Safety Research program, which studies vehicle improvements and other technical advances that can better protect people in a crash and reduce the likelihood of crashes. Portions of the $49.8 million will go toward Advanced Driver Assistance Systems (ADAS) and Automated Driving Systems

(ADS) research that facilitates innovation and development of new tests, tools and procedures to properly evaluate the safety of new technologies surrounding highly and fully automated vehicles. In the proposal, the Federal Highway Administration (FHWA) is allocated $1 billion in advance appropriations to work with the newly formed Joint Office of Energy and Transportation to implement the new National Electric Vehicle Infrastructure (NEVI) Formula Program. This program will assist states in creating a network of convenient, affordable, reliable and equitable electric vehicle charging stations along the Interstate Highway System to build designated Alternative Fuel Corridors. The FHWA budget also includes $400 million to implement the new Charging and Fueling Infrastructure Grants Program, designed to further increase electric vehicle charging access in locations throughout the country through competitive grants, and

$1.3 billion for the Carbon Reduction Program, which will provide formula grants to states to reduce transportation emissions. The budget proposal aligns with Biden’s climate and energy goals and includes $27.5 million in funding for the Corporate Average Fuel Economy (CAFE) program and $14.5 million for the New Car Assessment Program (NCAP). In August 2021, NHTSA responded to Biden’s Executive Order on Protecting Public Health and the Environment by amending the CAFE standards for vehicles model year 2024-2026 to require increased stringency for fuel efficiency standards. The release of the president’s budget proposal is the kickoff for the months long budget process. Lawmakers can now begin crafting the legislation that will make up the 2023 federal budget, using Biden’s proposal to guide them in the administration’s priorities. Source: Automotive Service Association

Vehicle Connectivity Surging, but Consumer Paid Subscription Share in Sharp Decline According to global technology intelligence firm ABI Research, connectivity will be available in more than half of new vehicles sold in 2022 and more than 70% in 2028.

Carmakers are committed to connectivity because of its various benefits, including fleet management, reduction of warrant costs, convenient electric vehicle (EV) ownership and over-the-air (OTA) updates. However, they still have not found an effective strategy to recoup the connectivity and airtime costs. Connected services adoption is low, especially among lower-tier vehicles, and the increase in free trial periods means the ratio of paid subscriptions will contract by 20% between 2021 and 2028. Despite moving to become ubiquitous, vehicle connectivity is still not a significant revenue source.

“Due to the prevalence of high traffic phone data plans, end consumers have little motivation to pay for connectivity and rarely renew subscriptions after the free trial period, which carmakers are constantly extending,” said Maite Bezerra, smart mobility and automotive research analyst at ABI Research. “This is especially true for infotainment services that compete with free phone mirroring. This reality signals that it will be challenging for carmakers such as Stellantis, Ford and GM to achieve their recently announced goals to generate $20 billion in software and services revenues annually by 2030, at least 13 times what they generate today.” From premium to volume cars, nearly all carmakers are committed to deploying software-defined vehicle platforms and betting on revenues from delivering software-enabled services and features OTA. That requires the establishment of a revenue-generating consumer touchpoint where these new services will be bought or updated, essentially relying on user engage-

4 MAY 2022 AUTOBODY NEWS / autobodynews.com

ment with embedded infotainment systems rather than mirroring through CarPlay or Android Auto.

dle. ABI Research expects more than 70% of active infotainment subscriptions to be on a free trial or

“Due to the prevalence of high traffic phone data plans, end consumers have little motivation to pay for connectivity and rarely renew subscriptions after the free trial period, which carmakers are constantly extending,” — Maite Bezerra “However, most subscription revenues presently derive from essential telematics and remote services rather than infotainment,” Bezerra pointed out. Connected services subscriptions are being extended to drive higher customer engagement. The average free trial period in the U.S. is increasing from three to six months, in Europe from one to three years (e.g., Polestar), and in China, many carmakers offer free for life connectivity (e.g., NIO, SAIC-GM). The drawback of such a strategy is the ratio of subscriptions paid by the final consumers will dwin-

free-for-life arrangement in 2022. Further adding to the connected vehicle monetization challenge, software-defined vehicle platforms will considerably increase monthly data consumption—from 400500 MB to up to 2-20 GB—and connectivity costs, which neither carmakers nor end consumers have been willing to pay so far. “Nevertheless, EVs could be the panacea for low connected services adoption by final users as they significantly improve ownership convenience,” concluded Bezerra. Source: ABI Research

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New Engineering Jobs to Support Toyota’s Electric Future The future of mobility is here, and it’s electric! Toyota Motor North America announced April 7 it is boosting engineering support across its North American operations as plans to advance electrified vehicle production kick into high gear.

Specifically, the company will add 220 new positions to Toyota’s Production Engineering Division, which serves as the go-between for design and manufacturing. The additional support will increase Toyota’s capacity to use innovative engineering technology to design and build manufacturing plants, equipment and processes across its operations. “As we ramp up our plans for additional electrified products in

North America, we must have the resources and talent in place to lead that transformation,” said Brian Krinock, senior vice president, vehicle plants, Toyota. “Our engineering team is working tirelessly on industry-leading production processes and technologies that help reduce carbon emissions while assembling world-class carbon-neutral vehicles, all with safety and quality in mind.” Toyota’s Production Engineering and Manufacturing Center, located in Georgetown, KY, is the headquarters for production engineering and is currently home to nearly 800 engineers. The company’s production engineering division employees more than 1,800+ spread across its North American facilities, all dedicated to maintaining Toyota’s position as a leader in safety, quality, productivity, efficiency and environmental sustainability through collaboration, innovation and education. The new jobs will be located in Georgetown and across Toyota’s other manufacturing facilities in North America. Toyota has put more electri-

Flint, MI, Man Driving Up Used Car Shortage with Dealership Fraud by Elizabeth Puckett, Motorious

A Michigan man is in deep with the federal government as he allegedly used a stolen identity to defraud several dealerships in the state. A total of 15 vehicles, with an estimated worth of $201,000, were involved in the scheme. Eddie E. Hendrickson bought a 2018 Dodge Charger with a stolen social security number, and never made a payment on his $36,468.70 loan. This was the fifth loan he got like this, and there were eight more opened after. In all, a total of 15 loans would be opened from nine different dealerships, totaling $201,080.12. Among the vehicles were: • Two 2020 Polaris Sportsman 570 ATVs from Shiawassee Sports Center in Birch Run— $17,563.08 2012 Jeep Grand Cherokee from Champion Chrysler Jeep Dodge RAM—$21,658 • Two 2020 Polaris Outlaw

ATVs from Shiawassee Sports Center—$7,439.88 • 2015 Dodge Ram 1500 Rebel from Champion Chrysler—$26,267.64 • 2019 Dodge Charger from Extreme Dodge—$36,186 • Two 2019 Honda ATVs on a credit card issued at Genthe Power Sport in Southgate, as well as a 2019 Honda motorcycle via a Honda Finance credit application—$17,637.32 • 2019 Honda motorcycle from Bay Cycle Sales in Bangor Township—$12,459.04 • 2019 Honda motorcycle from Nord-Ride Motorsports in Mt. Morris—$4,400 Two of the cars were tracked to a Flint address, where a man said he was storing them for Hendrickson. When Hendrickson was finally caught, he was charged with identity theft, aggravated identity theft and bank fraud. He faces a total sentence nearing 50 years in prison on the combined charges.

6 MAY 2022 AUTOBODY NEWS / autobodynews.com

fied powertrains on the road than all other automakers combined and has remained the leading manufacturer and seller of electrified vehicles for 22 consecutive years. In 2021, 25% of Toyota’s total U.S. sales were electrified.

1,700 North Carolinians. Toyota is committed to reducing and eliminating carbon through its electrified vehicles and in its operations and facilities. The company is aggressively working toward making its North American

“Our engineering team is working tirelessly on industry-leading production processes and technologies that help reduce carbon emissions while assembling world-class carbon-neutral vehicles, all with safety and quality in mind.” — Brian Krinock The company plans to further expand its global portfolio of electrified vehicles to 70 by 2025. Last year, the automaker announced new investments totaling $5.1 billion into its U.S. manufacturing operations to support electrification efforts. Included in that investment is Toyota’s new battery manufacturing plant, Toyota Battery Manufacturing, North Carolina, a $1.29 billion investment set to begin production of lithium-ion batteries in 2025 while employing more than

manufacturing plants carbon neutral by 2035 through a science-based approach, replacing high-emission electricity with clean, renewable energy either through direct installations at its facilities or through virtual power purchase agreements with energy providers. In addition, Toyota will continue to electrify its vehicles, with a commitment to reduce CO2 emissions by 90% from its new vehicles within the first half of this century. Source: Toyota

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PPG Honors ColorVision with 2021 Platinum Distributor of the Year Award PPG on March 25 announced it has named ColorVision of Springfield, MO, its Automotive Refinish 2021 Platinum Distributor of the Year. The annual award recognizes the distributor that demonstrates outstanding performance, extensive knowledge of PPG products and an unwavering commitment to serve and support its customers--key qualities that are fundamental to the PPG PLATINUM DISTRIBUTOR™ program. Natalie Scott, PPG director, PPG Platinum Distributor program, Automotive Refinish, U.S. and Canada, presented the award to ColorVision’s leadership team during PPG’s annual Platinum Distributor Celebration of Excellence awards ceremony in February. Gary and Kathy Allen, co-owners of ColorVision, accepted the honor on behalf of the company. “Platinum Distributor of the Year is our most prestigious Automotive Refinish customer award, as it recognizes deep knowledge, mutually valued partnership and shared success,” said Scott. “Col-

Continued from Cover

orVision was selected due to its outstanding year-over-year growth spanning a five-year period. It was an honor to present the trophy to a

“Without question, this award is a tribute to our team,” said Gary Allen. “The past two years have been quite a challenge, but the

ColorVision is the recipient of the PPG Automotive Refinish 2021 Platinum Distributor of the Year award. Taking part in the celebration are, from left: Tom Maziarz, PPG vice president, Automotive Refinish, Americas; Chris Dewes, former PPG director, PPG PLATINUM DISTRIBUTOR™ programs; Christopher Wegley, ColorVision operations director; Michael McGarry, PPG chairman and CEO; Connor Allen, ColorVision general manager; Kathy Allen, ColorVision owner; Gary Allen, ColorVision president; Jay Elliott, ColorVision sales director; Natalie Scott, PPG director, PPG Platinum Distributor programs; and Chancey Hagerty, PPG vice president, global Automotive Refinish.

company that fully embraces and uses all the resources available through the PPG Platinum Distributor program.”

knowledge, experience and resiliency of our people combined with our trusted relationship with PPG positioned us to continue

delivering for our customers in a challenging marketplace.” Founded in 1987, ColorVision has been a member of the PPG Platinum Distributor program for more than 25 years. Specializing solely in collision and commercial paint, body and equipment, the company maintains 11 branch locations across five states. The key to the company’s success lies in its commitment to provide each customer with top-quality products backed by an unmatched level of service and support. The PPG Platinum Distributor program began as a loyalty and support initiative for PPG single-line distributors, with the ultimate goal of providing exceptional service and benefits for PPG’s Automotive Refinish customers. The program delivers competitive advantages to participants by aligning PPG technology, training and customer support with the entrepreneurship, customer awareness, local market knowledge and service capability of independent distributors. Source: PPG

Corvette Production

NABC Recycled Rides® Program Donates 2 Refurbished Vehicles to Springfield, MO, Recipients

materials which used to be plentiful are now constrained, and numerous automotive parts manufacturers have had trouble with their production as a result, it could be almost anything. There’s also the possibility Russia or some other nation hacked a supplier’s computer network, like what happened to Toyota recently. The part that’s brought production to a halt must be exclusive to the C8 Corvette. No other GM production facility has been shut down. There are also plans to add more positions in April to increase Corvette production. Considering production shutdowns have plagued the C8 starting with the UAW strike in 2019, there are a lot of people who are anxiously awaiting their turn to own the mid-engine American sports car. Before you start panicking, the shutdown is only for the week of March 21. It’s expected to fire up again March 28, unless something unforeseen happens.

In a feel-good event, two deserving Springfield, MO, recipients experienced a life-changing moment when they were presented vehicles to provide them independence and the ability to work and take care of their families. The event was sponsored by the National Auto Body Council (NABC) Recycled Rides® program along with Crash Champions collision repair, GEICO and Enterprise. Further supporting the initiative were the following businesses: Keystone Automotive, Henry’s Towing, Highway 160 Auto Salvage, Bud’s Tire and Wheel and Youngblood Nissan. The presentation was held at the Crash Champions’ South Springfield location. The deserving recipients were selected by Springfield Dream Center and the Community Partnership of the Ozarks, and the event included the following donated vehicles that were refurbished by Crash Champions: a 2017 Chevy Sonic and a 2016 Nissan Rogue. NABC Recycled Rides is a unique program in which busi-

8 MAY 2022 AUTOBODY NEWS / autobodynews.com

nesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of

never take for granted. We are all incredibly thankful to the organizations and individuals who made this possible.”

“The Recycled Rides program is a perfect example of how we can contribute in our own way to improve the lives of our neighbors.” — Matt Ebert reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. “My family and I could not be more grateful for this wonderful gift,” said Kevin Cross, one of the Recycled Rides recipients. “Having a reliable vehicle that we can count on for getting to work, running errands and taking part in everyday family activities—especially with our children—is a truly life-changing opportunity and one that we will

“Crash Champions is a national company, but every one of our shops is connected into their local community,” said Matt Ebert, CEO and founder of Crash Champions. “The Recycled Rides program is a perfect example of how we can contribute in our own way to improve the lives of our neighbors. We are collision repair experts, and it’s wonderful to use that expertise to help a family in need with something as important as safe and reliable transportation.” Source: Crash Champions

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autobodynews.com / MAY 2022 AUTOBODY NEWS 9

Startups, AkzoNobel to Collaborate After winning Paint the Future awards, three startups have already signed letters of intent to continue working together on sustainable business opportunities with AkzoNobel. The solution from Israeli startup SolCold is a sustainable self-cooling coating based on anti-Stokes. It uses the sun’s energy to keep the inside temperature much cooler without having to use any electricity. Latvian startup Aerones brings a robotic solution to wind turbine maintenance. Its crawling robot allows technicians to safely and efficiently perform inspections, cleaning and repairs at height. From the Czech Republic, SprayVision brings a data-driven approach to optimizing spray application of paint, offering customers full control over the process. The solution helps to reduce environmental impact by saving material and improving quality. Source: AkzoNobel

LG Energy Solution Announces $1.7 Billion Plant Expansion in Michigan by Mark Kane, InsideEVs

LG Chem’s LG Energy Solution (LGES) will invest $1.7 billion into its existing, wholly-owned lithium-ion battery cell plant in Holland, MI, which was built in 2010. According to the Michigan Economic Development Corporation (MEDC), the investment will quintuple the plant’s capacity, as well as create an additional 1,200 jobs, on top of almost 1,500 now. The exact output in GWh/ year has not been disclosed, but currently, it’s 5 GWh/year. The company produces in Holland large lithium-ion polymer battery cells and packs for electric vehicles. According to the info, the expanded plant will produce a new format of batteries— specifically, new long cell design batteries. “As the future of the electric vehicle industry grows, LG Energy Solution needs the additional capacity to allow for the production, testing and storage of materials needed for battery man-

Gas Prices Continue to Stymie Illinois Small Business Growth by Kevin Bessler, The Center Square

Almost two-thirds of Illinois small business owners report experiencing a significant negative impact from high gas prices. According to Alignable’s Gas Price poll, 62% of Illinois small business owners said they are suffering from high gasoline prices, one of the highest percentages in the nation. “Prices across the board are really going up, and with the gas prices going up, that is adding insult to injury on top of what else people have been facing through inflationary trends,” said Alignable lead researcher Chuck Casto. Businesses hit the hardest are transportation-related, but also cleaning services. They rely on their workers driving often long distances to and from clients’ homes or corporate facilities. Casto said some businesses you wouldn’t think about are dealing with financial pressures. “You are seeing it with beauty salons,” Casto said. “On the other end of the scale, accountants

are reporting that they are having trouble.” The poll shows minority-owned businesses are having more challenges with the increase in gas prices, as 74% reported a very significant negative impact on their business growth. However, veterans aren’t far behind, with 70% of those businesses also struggling with high gasoline prices. Another reason Illinois businesses face higher gas prices than in most states is Illinois has the fifth-highest gas tax nationally at nearly 40 cents per gallon, according to data from the federal government. Prices have eased a bit over the past couple weeks, but the average price for a gallon of gas in Illinois is still hovering around $4.50 a gallon. Motorists in Danville, Kankakee and Bloomington-Normal are paying the least for gas in the state, while Chicagoans are paying the most. Nationwide, Californians pay the most for gas, while motorists in Illinois neighbor Missouri are paying the least.

10 MAY 2022 AUTOBODY NEWS / autobodynews.com

ufacturing,” the company said. “The expansion includes the construction of several new facilities on LGES’s existing footprint in Holland. “The state-of-the-art Michigan plant will use the most advanced and efficient battery cell manufacturing processes,” it continued. “Particularly, the facility will manufacture the company’s new long cell design batteries with improved energy density thanks to cutting-edge technologies that allow engineers to more fully utilize the space within the battery pack. The long cell design batteries are expected to advance EV’s driving range and ESS’s energy storage, and at the same time, simplify the overall structure of battery pack.” The Michigan Strategic Fund announced a package of incentives to support the investment: A $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs A $10 million Jobs Ready Michigan performance-based grant to

assist with job-related training A 20-year Renaissance Zone to the city of Holland, valued at an estimated $132.6 million Up to $36.5 million in Community Development Block Grant funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration LGES’s investment in Holland is not the only one in Michigan, as the company announced also a new joint venture plant with GM—the third Ultium Cells plant. The $2.5 billion Ultium Cells JV plant will be located in the city of Lansing and Delta Township. The other two Ultium Cells plants are currently under construction in Lordstown, OH, and Spring Hill, TN, where production should start in 2023. Additionally, LGES will invest in Canada, with Stellantis, and is considering a new plant in Arizona. In other words, LGES is allin with several sites under construction simultaneously.

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Leap of Faith and Love Delivers Livelong Happiness and Success with CARSTAR for Ohio Family When customers and vendors arrive at CARSTAR Mount Orab in Williamsburg, OH, they are greeted by the director of operations, Jackson Barnes, who offers a handshake and a welcome from his desk, where his Snap-on toolbox is by his side. He is 6 years old, son of owners Kenny and Sarah Barnes, and he has literally grown up in the collision repair center. Kenny and Sarah Barnes were high school sweethearts and married young. Kenny Barnes went on to work in the collision repair industry for 25 years, including managing locations in Cincinnati for a previous CARSTAR franchise partner. Sarah Barnes was in real estate. When the opportunity came available, the Barneses joined forces with their friends Chris and Jennie Clark to open their own CARSTAR location. “Kenny had always dreamed of owning his own repair center, so we took the leap,” said Sarah Barnes. “We opened when my son was 2.5 years old, and we’ve been a family business ever since. We worked 24/7 in the beginning, and our son Jackson was right by our side. He literally potty trained in the front office bathroom. But it’s been an amazing experience to all be together and spend so much time raising our son in this type of family business environment. We’re very fortunate to have this opportunity, but we worked hard to get here.” Sarah Barnes never intended to have a career in collision repair. She had one in real estate and was used to working on her own. When Jackson was born, she intended to be a stay-at-home mom. Then they opened a collision repair center, and she agreed to help out in the beginning. That soon turned into

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50-hour weeks. “When we started, we worked around the clock through weekdays and weekends,” Sarah Barnes said. “Then we got our business established, earned our customer base, achieved our certifications and built our insurance relationships. CARSTAR was incredible in helping launch our business and guide us through the process. Today, they are right by our side as we continue to grow amid today’s changing industry.”

Sarah Barnes said she and Kenny have learned from each other through the process. “I’d never been a manager, so I learned a lot about managing the business and managing people on the job from my husband and developed my multi-tasking skills,” she said. “I think he’s learned patience from me—things don’t always happen as fast as you’d like.” One of the keys to being successful in a family business is keeping the “family” first and foremost, Sarah Barnes noted. “When we leave the building, we leave work behind and don’t talk about it at home,” she said. “We keep our weekends dedicated to a family activity together. We both now have the opportunity to coach soccer and baseball and spend a lot of time with Jackson. That’s great for our son, and for the whole family. We couldn’t have done this without building a family business. Kenny always says his

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12 MAY 2022 AUTOBODY NEWS / autobodynews.com

worst day here is still better than his best day working for someone else.” Jackson Barnes is ready to follow in his family’s footsteps, even as he is learning his ABCs. “He’s already learned to be a great help around the shop,” said Sarah Barnes. “He greets the customers, the delivery guys always check in with him, and he helps keep the team on task. When parts come in, I have him assist in checking in and organizing them, like it’s a game. He’s also learned to apply putty when most kids are playing with PlayDoh, and he can even buff a little.” Right now, Jackson earns his allowance for working in the shop in Pokemon cards, but Sarah and Kenny Barnes would be very pleased if he took over some day. “We want him, and all kids, to know that there is a path to success

that doesn’t require an investment in a college education,” said Sarah Barnes. “There are other options out there that can provide a great life for a family. If Jackson decides to take over for us, that would be amazing, but we’ll support whatever decision he makes.” For anyone considering a family business, Sarah Barnes highly recommends the experience, flexibility and ability to work together. “It has been so nice to raise our son together while building our business,” she said. “We never would have had this opportunity if we didn’t work so closely as a family. Yes, you have to separate your family life and work life sometimes and not take things personally. But, we’re very fortunate. I wouldn’t trade this lifestyle for the world.” For more information visit www. CARSTAR.com. Source: CARSTAR

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Bills Would Pause Missouri’s Fuel Tax for 6 Months by Joe Mueller, The Center Square

Two identical bills would give Missourians a one-time, six-month motor fuel tax holiday, but an exemption of the state’s sales tax also was mentioned during a hearing March 22. Rep. Adam Schwadron, R-St. Charles and sponsor of House Bill 2801, and Rep. Travis Fitzwater, R-Holts Summit and sponsor of House Bill 2813, testified their bills would allow Missourians to keep dollars as they face high fuel costs and the highest inflation rate—7.9% in February—since 1982. AAA reported the average price per gallon was $3.765 in Missouri. After hitting a record $4.33 per gallon on March 11, AAA reported March 22 the national average for a gallon fell to $4.25, 72 cents higher than in February and $1.37 more than last year. Missouri’s current gas tax is 19.5 cents per gallon, and it will increase by 2.5 cents on July 1. Senate Bill 262, signed into law by Republican Gov. Mike Parson last

year, increased the gas tax by 73% to 29 cents per gallon by 2025. “The intent is really important and that’s to give some Missourians relief,” Fitzwater said. “We’re trying to figure out a path for that. I’d be willing to look at any type of

the six months is underestimated as the agency receives three or four matching federal dollars for transportation projects. “It could be $978 million to $1.3 billion dollars lost for doing projects,” Schroeter said. “We

“If I was in the majority party and I was trying to do something to offer relief, I would look at a sales tax holiday. I think that would more directly impact people who need it the most.” — Rep. Wes Rogers tax cut for everyday Missourians.” The gas tax is expected to generate approximately $500 million in additional revenue for the Missouri Department of Transportation (MODOT) to improve roads and bridges. MODOT estimates it needs $745 million to complete all necessary projects. Eric Schroeter, assistant chief engineer for MODOT, testified the estimated loss of $318 million for

have a planned bond issuance of $500 million, which would be used to match approximately $1.5 to $2 billion in federal funds. So uncertainty in revenue or a reduction doesn’t make bond issuance attractive or likely. This could have an impact of over $3 billion towards projects.” Fitzwater stated Missouri’s record levels in general revenue and additional new federal transporta-

tion funding would allow the state to develop a plan to “plug some holes.” Rep. Wes Rogers, D-Kansas City, told the committee Maryland and Georgia recently passed gasoline tax holidays, and it’s being considered in Illinois, Massachusetts, Maine, Michigan, Minnesota, New York and Tennessee. He suggested a sales tax exemption would help more taxpayers. “It’s a noble goal when you know inflation is out of hand and normal people are trying to get by,” Rogers said. “If I was in the majority party and I was trying to do something to offer relief, I would look at a sales tax holiday. I think that would more directly impact people who need it the most.” House Bill 1594, sponsored by Rep. Sara Walsh, R-Ashland, would repeal the gasoline tax passed last year. The bill was voted out of the Special Committee on Government Oversight 8-2 on Feb. 16, passed in the Administrative Oversight Committee 6-5 on Feb. 25, and was placed on an informal perfection calendar March 1.

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NABC Recycled Rides® Program Donates Refurbished Vehicle to Ronald McDonald House Charities® of St. Louis

CCC Launches Integration with asTech

unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated nearly 3,000 vehicles valued at some $42 million. “Presenting a NABC Recycled Ride on the main stage at the CCG national conference was an amazing experience,” said Bill Garoutte, president and CEO of the NABC. “Our members CCG, Allstate, Schaefer Autobody and Enterprise all contributed their time, talents and resources to make this happen, and it is incredible to see those efforts come to fruition to benefit Ronald McDonald House Charities of St. Louis.” Additional partners in the NABC Recycled Rides presentation include 1-800 Charity Cars, Alloy Wheels, All Star Auto Lights, Color Match, O’Reilly’s Auto Parts, Sunset Ford Auto Group, Xtreme Detail and Zisser Tire. Source: NABC

CCC Intelligent Solutions on March 31 announced asTech®, a Repairify company and a leader in diagnostic, calibration and programming solutions, has joined the CCC® Diagnostics network. The integration makes it easier for repair facilities to capture and document scan information in CCC ONE® workfiles. This streamlined service is available now via CCC ONE. The integration does not require a physical connection between the asTech device and CCC ONE. Information is uploaded wirelessly and the scan report is automatically attached to the vehicle’s CCC ONE workfile. Activation is simple. Repair facilities using CCC ONE select their preferred diagnostic provider(s) from those available through CCC’s network and providers send scan data directly to the workfile. Source: CCC Intelligent Solutions

On April 4, the National Auto Body Council (NABC) Recycled Rides® program teamed up with the Certified Collision Group at its inaugural conference to present a refurbished vehicle to the Ronald McDonald House Charities® of St. Louis. The vehicle, a 2017 Ford Escape, was donated by Allstate and repaired by CCG member Schaefer Autobody, which has 14 locations throughout the St. Louis area. St. Louis-based Enterprise “stuffed the trunk” with wish list items for operations at Ronald McDonald House Charities of St. Louis. The vehicle will be used to provide transportation for the families staying at Ronald McDonald House Charities of St. Louis while their children are being treated at area children’s hospitals. The presentation was held at the CCG Conference at the Hyatt Regency at the Arch. “Ronald McDonald House Charities of St. Louis provides a home-away-from-home to families from across the United States and the world,” said Dan Harbaugh, president of Ronald McDonald House

Charities of St. Louis. “For many of our families, safe and reliable transportation is a huge barrier for them, especially when their child is receiving medical treatment. Now, with the help from the National Auto Body Council and the NABC Recycled Rides program, with this new vehicle we can go the extra mile for families by helping relieve the burden of transportation.” For Scott Schaefer, owner of Schaefer Autobody, the involvement in this project is a labor of love. “We have always wanted to do a NABC Recycled Ride vehicle to help children and families being treated at the local children’s hospital,” said Schaefer. “Our family has a passion for supporting Ronald McDonald House Charities and the local hospital through our own experiences. This project has allowed us to combine that passion for helping others with the passion we have for delivering the highest-quality repairs every day. We’re honored to be able to refurbish and present this vehicle to help families in need.” NABC Recycled Rides is a

autobodynews.com / MAY 2022 AUTOBODY NEWS 15

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Big Success “We were thrilled with the turnout, and the feedback we received from the exhibitors as very good as well. We sincerely thank all involved, including our event sponsors.” “I was impressed with this entire show,” said exhibitor Tom Day, treasurer of Key Choice Collision Centers. “There were many quality vendors and attendees. Attendees were looking for industry information and this show really delivered. We are already looking forward to next year.” “The education sessions were a big hit too,” said Janet Chaney, co-coordinator of the event and executive director of the Iowa Collision Repair Association. “Each classroom session was nearly full and additional chairs had to be brought in for a few of the sessions. The presenters worked hard to create workshops of value and the participants reported great satisfaction with the material presented.”

Mike Anderson, founder of Collision Advice, was the keynote speaker over lunch April 2. In his State of the Industry address, Anderson told the 300 people in atten-

Mike Anderson, of Collision Advice, gave the State of the Industry keynote address. Credit: Mark Claypool

dance his theme for 2022 is “Grow Your Team, Grow Your Business and Change The Way You Compete.” He pointed out that most shops leave a bunch of money on the table when writing estimates. He shared strategies to address this, sources for procedure documents

Chicago Thieves Take Teen Cancer Victim’s Truck by Steven Symes, Motorious

Jacob Watson, who is now 18, won his fight against bone cancer last year, so Make-A-Wish decided to do something extra nice for him. The charitable organization restored the 2002 Ford F-250 gifted to him by his late grandfather. It was a sentimental gesture for a teenager who had been through a lot in his short life. Then some thieves took it. According to a local report, Watson was at the Wintrust Sports Complex in Bedford Park, IL, on April 2 when the truck was taken. He was inside for about two hours, but that was more than enough time for the thieves to swipe it. “I kept it nice over winter, and I hadn’t had it out for not even a week, and this happened,” said Watson. Witnesses describe seeing a gray Honda Odyssey with “completely tinted windows” by the truck. It sound like a suspect got out of that minivan and broke into the truck, then drove away with it. The family is hopeful the 2002

as well as what the average repair order is by state. Anderson also focused on workforce development. He reported 80,000 technicians will be

Ford F-250 is located soon and returned in good condition. They’ve filed a police report and have been getting the word out through local media. Help spread the word so hopefully this has a positive resolution.

needed in the industry by 2024, but demand is significantly outpacing a steadily declining supply of post-secondary collision technician entrants. He introduced an Automotive Collision Engineering Pilot program being powered in a joint ven-

16 MAY 2022 AUTOBODY NEWS / autobodynews.com

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Car theft has been out of control for years now. That makes it more important than ever to take extra steps to secure your ride. There are a lot of ways to do that, like installing an alarm with push notifications, GPS trackers, kill switch, Trunk Monkey, etc. Unfortunately, like Watson, you might just be going about your day when someone decides to take your property.

ture between the Enterprise RentA-Car Foundation and Ranken Technical College. This program is designed to attract and develop entry-level talent to fill essential roles within collision repair, and enhance retention and advancement among collision repair technicians. Other pilot sites are the College of Lake County in Illinois, Contra Costa College in California and Texas State Technical College. Cotton and Chaney are working to secure a date and location for this event for 2023. Interested parties can keep abreast of future plans on the event website, www. midwesttradeshow.org, or Facebook page, www.facebook.com/ MidwestCollisionRepairTradeShow. Contact Janet Chaney at 480720-2565 or Gina Cotton at 402304-2140 for more information.

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Federal REPAIR Act business: a small-batch machining and fabricating business which was transformed into a high-volume contract fabrication and injection molding manufacturer during his tenure. “By prohibiting vehicle owners from accessing and sharing data they generate, manufacturers stop consumers from accessing third-party repair shops,” said Davidson. “American vehicle owners have a right to control their data, and a right to access third-party repair shops, tools and parts. This bill would end manufacturers’ anti-competitive practices and restore consumer property rights.” “Thanks to Congressman Davidson, the bill is now a bipartisan effort,” said Bill Hanvey, president and CEO, Auto Care Association. “We thank the representative for recognizing that consumers deserve the right to choose where they get their vehicle repaired. In a time where Americans rely on their vehicles more than ever and are keeping their

vehicles longer due to economic uncertainty, we hope that other legislators follow suit.” “AASA applauds Rep. Davidson for joining Rep. Rush on this critical legislative push,” said Paul McCarthy, president and CEO, AASA. “The consumer’s ability to continue to have choice in where to repair, service, and maintain their vehicles is at stake. The bipartisan support from this bill, as we saw with the bipartisan-supported ‘Nixing the Fix’ report from the FTC, speaks to the fact that this automotive right to repair effort is not partisan, it is to support consumers, competition and free markets. Without action, consumers will face rising costs and fewer options. We look forward to working with both representatives on this important effort.” “The CAR Coalition applauds Rep. Davidson for co-sponsoring the REPAIR Act,” said CAR Coalition Executive Director Justin Rzepka. “This bipartisan legislation is critical to protecting the rights of consumers in the post-collision auto repair market. It is also crucial to ensuring the security and accessibility of vehicle

data. As the cost of cars and repairs rise, consumers need more choices, not fewer, when it comes to repairing their own vehicles. The CAR Coalition looks forward to working with Rep. Davidson and Rep. Rush to advance the REPAIR Act on behalf of consumers across the country.” “SEMA and the specialty automotive aftermarket appreciate Rep. Davidson standing up for free and fair competition for consumers looking to service, repair or modify their vehicle,” said Daniel Ingber, vice president, government and legal affairs, SEMA. “The bipartisan REPAIR Act must be passed to protect access to vehicle systems, tools and information necessary for independent repair and modification services for millions of consumers.” Automotive aftermarket companies can urge legislators in their district to also co-sponsor the bill by visiting autocareadvocacy.org/takeaction-tell-congress-support-rightto-repair, aftermarketsuppliers.org/ repairact, carcoalition.com or semasan.com.

Farmers Insurance Wins NABC Award The National Auto Body Council (NABC) President’s Award is designed to honor the NABC member company that supports the vision of the NABC through donation of its time and resources. For 2021, the NABC President’s Award was presented to Farmers Insurance, selected by a vote of the NABC Board members. The Farmers Insurance nomination received overwhelming support from the NABC Board based on Farmers strong commitment to the NABC. Throughout 2021, Farmers Insurance assisted with the gifting of nearly 30 NABC Recycled Rides vehicles, and provided its staff with the time and resources to act as chairman of the NABC Fundraising committee and support NABC activities.In addition to presenting Farmers with the NABC Presidents Award, the NABC will make contributions to two organizations in the recipient’s honor— one selected by NABC and one by Farmers. Source: NABC

Source: Auto Care Association

Classic Collision Acquires Minnesota Auto Body Shops Classic Collision, LLC, a leading national multi-site collision repair operator based in Atlanta, announced a new closing April 4—the acquisition of Crystal Lake Automotive in Burnsville and Lakeville, MN. Classic Collision now operates a total of 176 repair centers in Alabama, Alaska, Arizona, California, Colorado, Florida, Georgia, Minnesota, Nevada, North Carolina, Oregon, South Carolina, Texas and Washington. Crystal Lake Automotive was established in 1986. In the 1990s, the company experienced several years of growth and expanded automotive service capabilities. In 2000, CLA consolidated multiple locations into a single facility in Lakeville, designed to create a pleasant environment for customers. “We have changed our business for the better in the past and

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I am sure this move is another improvement. I am excited for Classic Collision to continue the work we started in this community,” said Karl Drotning, former co-owner and founder of Crystal Lake Automotive. “As we establish our presence in this new market, we also welcome the entire Crystal Lake’s teams to the Classic Collision family,” said Toan Nguyen, CEO of Classic Collision. “This is a time of growth for Classic and we are confident these new centers will have the experience, culture, management discipline and necessary venture to continue being successful as the industry and operating climate changes. We have a lot more in store for the remainder of this year as we continue to progress across the country.” Source: Classic Collision

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Bad Driving while driving • 35% of Gen X think it’s safe to be using the phone while driving • 20% of Boomers think it’s safe to be using the phone while driving “Half of the drivers Nationwide surveyed said in the last six months they have held a cell phone to talk, text or use an app while driving,” said Beth Riczko, Nationwide’s president of P&C personal lines. “Far too many drivers are multitasking behind the wheel, putting everyone at risk by creating dangers for themselves, their passengers, pedestrians and others on the road—I promise you it isn’t worth it.” Despite reports of increasing danger, everyone thinks other drivers are to blame and they are not the ones contributing to the problem. 85% rate their driving as excellent or very good, but only 29% give the same rating to other drivers on the road around them. Drivers of all generations seem to

share this sentiment: • Gen Z—82% say they are good drivers/36% say others around them are good drivers • Millennials—86% say they are good drivers/38% say others around them are good drivers • Gen X—86% say they are good drivers/30% say others around them are good drivers • Boomers—85% say they are good drivers/20% say others around them are good drivers While people think they are good drivers, some of the behaviors they reported doing behind the wheel would indicate otherwise. Despite two-thirds of drivers (66%) saying holding a cell phone to talk, text or use an app while driving is dangerous, half (51%) reported doing this in the past six months, with Millennials doing this more than any other age group (67%). During the past 12 months: • 54% of drivers reported driving 10+ mph over the speed limit • 53% reported eating while behind the wheel • 23% said they have audibly

GM Headlight Recall Issued Over Low-Beam Glare by David A. Wood, CarComplaints.com

A GM headlight recall over lowbeam glare includes more than 740,000 model year 2010-2017 GMC Terrain SUVs after the National Highway Traffic Safety Administration denied a petition from General Motors to skip the headlight recall. General Motors said a reflection from the headlight housing may illuminate “excessively bright light” in areas above the Terrain and outside the view of the driver. “A reflection caused by the headlamps’ housing can project a narrow beam of light 80 degrees outboard and 45 degrees upward of each lamp’s forward-center axis,” GM said. GM also said the design of the Terrain headlights allows a narrow beam of light from the lower beam light to reflect off the inner surface of the high-beam reflector. However, the high-beam headlights are not affected. The headlight problem has been going on for years because it was in June 2019 when the automaker petitioned NHTSA for a recall exemption because only one GMC Terrain

owner had complained. That complaint didn’t mention bright lights or glare, but the complainant said the headlights shined into the tops of trees.

tion allowing drivers to only use hands-free mobile phone technology while operating a motor vehicle. The intent is to curb crashes caused by drivers distracted by their mobile devices. To date, 24 states have enacted hands-free-primary enforcement laws with active legislation pending in 21 states. Survey Methodology: Edelman Data & Intelligence conducted a national online survey of 1,000 adults (ages 18+) US car-owning consumers on behalf of Nationwide. The study was fielded March 4-11, and has an overall margin of error of ±3% at the 95% confidence level.

yelled at another driver • 21% have given an obscene gesture • 17% ran a stop sign/light “The first step to correcting bad driving behavior is recognizing when you’re doing it, and surprisingly enough, technology can help with that,” said Riczko. “Nationwide’s SmartRide mobile app provides customized feedback on phone distractions to help our members reduce distracted driving on roadways. The app’s feedback has reduced everyday hand-held distractions by nearly 10% among those who use it.” Nationwide is advocating for state lawmakers across the country to enact hands-free legisla-

Source: Nationwide

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GM also said the headlights hadn’t caused any crashes or injuries even though the Terrain model years go back to 2010. Early in March, safety regulators denied GM’s petition and told the automaker it should issue a GMC headlight recall for 2010-2017 Terrains.According to GM, dealers aren’t sure what they will do to repair the headlight problem, but headlight recall notices are expected to be mailed April 23. GMC Terrain owners may contact GMC at 800-462-8782 and use headlight recall number N222363740.

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WIN to Recognize 2022 Most Influential Women Award Winners During Hybrid Educational Conference by Leona D. Scott

tial’ standard every day.”

According to Catalyst.com, women in automotive repair and maintenance make up only 9.9% of the automotive workforce. In 2014, when Mary Barra became CEO of GM, she was the first woman to run a major OEM. While women are making progress in the industry, it can happen slowly and with great challenges. That’s why programs like the Women’s Industry Network (WIN) Most Influential Women (MIW) Awards are vital. The collision industry looks forward to WIN’s annual announcement of its stellar lineup of recipients, and 2022 is no different. WIN’s 2022 MIW recipients will be honored at a gala held during WIN’s 2022 Annual Educational Conference, May 2-4 in Greenville, SC. This year’s conference will be hybrid, offering an in-person event, alongside an online program to make the event accessible to more attendees. To learn more, visit www.womensindustrynetwork.com. Autobody News reached out to the seven recipients who make up the 2022 class of Most Influential Women to get their thoughts and reflections on receiving this prestigious industry award.

Alicia Figurelli, vice president, Thomas Greco Publishing, believes the recognition that awards like this provide Alicia Figurelli will help elevate the work of all women in collision repair. “Being recognized in this way as someone who has helped make a difference in our industry is exhilarating! It’s a definite milestone in my career, and I’m so grateful to help represent one of the many areas of collision repair where a woman can excel and contribute,” said Figurelli.

Allison Boever, chief human resources officer, Repairify, values the opportunity to mentor women for leadership Allison Boever roles at Repairify. “I am beyond humbled by the recognition as one of WIN’s Most Influential Women,” said Boever. “As a human resources leader, I’m a believer that when we strive for diversity, we strengthen the organization as a whole. One of my most rewarding activities in business and life is to mentor and help prepare women for leadership opportunities as our industry continues to evolve. I’m surprised and honored and will strive to live up to the ‘most influen-

Shirin Hezar, director, strategic accounts, Caliber Collision, said as a result of recent economic and cultural dynamics, Shirin Hezar she found opportunities to contribute in unexpected ways. “In today’s evolving environment, it will be key for female leaders in our industry to leverage innovative, out-of-the box thinking to ensure we keep pace with rapidly changing customer expectations,” Hezar said. “The collision industry offers many unique opportunities for female leaders. Their fresh perspectives and new ideas will shape our future, and I am honored to be part of this amazing journey.” Jennifer Hubbard, client engagement manager, CCC Information Services, looks forward to promoting careers for women in col- Jennifer lision repair even Hubbard more as a result of the award. “I am grateful for being recognized and I intend to live up to the level of success this award demands,” Hubbard said. “I am dedicated to

22 MAY 2022 AUTOBODY NEWS / autobodynews.com

spreading the word on how a career in the automotive collision industry is very rewarding. The people I meet on a daily basis are an amazing group of individuals with a strong worth ethic and are driven by our ever-changing and exciting industry.” Samantha Kita, regional vice president, operations, Gerber, is grateful for the award’s legacy and is humbled by the Samantha Kita recognition. “... It’s hard to find the words to explain how I feel. All the amazing women out there who are paving their own way while finding work-life balance, have my utmost respect,” Kita said. “Knowing that I have the support and dedication of my Gerber family makes me want to be better. I am so honored to have my work recognized by the Women’s Industry Network.”

Micki Woods, owner, Micki Woods Marketing Genius for Body Shops, is thankful for the recognition and believes the Micki Woods award highlights the overall contributions of women in collision repair. “I know I work hard and do well for my clients but there are so many other women out there working their tails off doing their best that deserve to be honored,” said Woods. “I’m proud, I’m surprised, I’m grateful, I’m humbled and I’m freaking pumped UP!” Debbie Menz, strategic account manager (retired), Axalta, will also be recognized at this year’s event. She was unable to be reached for comment before press deadline.

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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.

Tips to Help Auto Body Shops Get Paid for Crucial Step of Destructive Weld Testing In a previous column, I wrote about the critical necessity to perform destructive testing of welds prior to welding on any vehicle—and regardless of whether your shop is being paid for that procedure. But I also believe you should be paid for this crucial work, and that’s what I hope to address here. Those of you who have read my articles in the past on better negotiating know I believe the process involves four questions: Is the procedure necessary? Is it included in any other labor operation? Are there pre-determined times? If not, what it is worth? Looking at any of the OEM repair procedures should convince you that it is necessary. Here is some of the wording I’ve seen: BMW: “To determine the optimum electrode contact force for

spot-welding, carry our spot-weld shear tests on sample sheet metal.” Ford: “Place the welded sample in a vice and carry out destructive weld tests by peeling the scrap metal apart using large lock-type pliers. Measure the weld nugget to determine the nugget meets Ford weld nugget requirements.” Hyundai/Kia: “Test welding must be performed before welding vehicle body.” Toyota: “Welding strength must be validated by tuning the welder and performing destructive testing.” I could go on and on, but you get the idea: It is a necessary procedure. The next negotiation question: Is it included in any other labor operation? No matter which estimating

system you are using, you should be able to find that the user’s guide— often referred to as “procedure pages”—lists set-up and performing test welds as a not-included operation. If you can’t find it, visit the Database Enhancement Gateway website (www.DEGweb.org), and read the estimating system providers’ responses to inquiries about this, including #15358 (Solera/Audatex), #12565 (Motor/CCC) and #16652 (Mitchell). None of the estimating systems publish a labor time for destructive testing of welds, so the answer to the third negotiation question is no. That leaves you with the fourth question: What is it worth? I can’t answer that question for you. Perhaps you could conduct your own time study. In any case, remember it should be based on how long it takes an average tech-

nician—one with five to seven years of experience—to gather the tools, equipment and supplies needed, perform the task safely, and return the tools, equipment and supplies to their store area, and clean the work area. Remember, too, material costs for this process are not included. That can include OEM-approved wire, welding tips/nozzles, shielding gas and gun liner. If you’re buying welding coupons, keep that cost in mind. You can also improve your chances of being paid for this necessary step by documenting the process. Shoot images of the test welds prior to testing, while the test welds are in the vise, and after they destructively tested. If you use an electronic quality control app, you can set it up to require these photos, ensuring they are time- and date-

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stamped. Some shops also actually label and store the test welds to help limit their liability should any questions about the repair arise down the road. Remember the automakers state the welding coupons you use should be of the same material with the

International and a program consultant for Jaguar Land Rover North America and Subaru of America. Others mistake he sees: Not checking to ensure the correct wire type is in the machine, not understanding what makes a good quality weld, not following the specific

In addition to photographing the destructive testing of welds, some shops label and store the test welds as part of their documentation

same coating that the new replacement panel will be attached to. In some cases this may require multiple different coupon thicknesses and coatings, such as galvanized. That’s a common oversight, according to Rick Miller of Wadsworth

placement of welds called for by the automaker, or the use of MIG welding because of a perception that it’s easier than squeeze-type resistance welding. Potential sources of coupons include I-CAR, your welder manufac-

turer or Custom Metal Shearing in Ohio (www.custommetalshearing. com). Some other resources that may be helpful: CollisionHub offers a welding validation series (collisionhub.com/ product/oem-weld-validation) and will build customer QR series for shops to put on their welding equipment to offer “just in time” training for the tech. SCRS has some great information on its website, including video of a panel discussion on OEM expectations about welding at www. youtube.com/watch?v=x85ZcSGvbU4&t=9s American Honda offers twoday hands-on welding training for anyone in the industry, with a discount for Honda and Acura certified shops. Attendees will learn how to identify steel strengths and thicknesses on Honda vehicles, and how to find Honda service information requirements for each type of recommended attachment method. After completing 13 unique practice joints, attendees are expected to complete multiple replacement pro-

cedures. To register, visit academy.veri factsauto.com, or for questions, email collisioinrepairtraining@na .honda.com. “Anyone may enroll, but I would suggest this is not a class for beginning welders,” said Scott Kaboos, national assistant manager for collision repair training and technology for American Honda. “It is an advanced level class, and so far we have had a 50% pass rate, mostly because some attendees did not have prior basic training.” Listen, I mean this in love, but we as an industry need to get it together! We must follow the OEM procedures. Not setting up and performing destructive weld test is not negotiable. All of the steps above should help your shop join those being paid regularly for performing destructive testing of welds. But whether or not you choose to pursue being paid for it, I can’t stress enough that you need to ensure your technicians are absolutely performing this crucial step every time they will be welding on a vehicle.

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Supply Chain Issues and Repair Complexity Major Concerns in 2022 by Ed Attanasio

Before the pandemic hit, people in the collision repair industry were most concerned about a lack of qualified employees and the growing complexity of OE repairs. Those problems still exist, but now the crippled supply chain has been added to the equation. It’s a whole new world and scary in many ways, so how will auto body shops be able to navigate through these uncertain and troubled times? Solid, carefully researched and highly relevant data can surely help everyone in this industry. Director/ Industry Analyst Susanna Gotsch from CCC Intelligent Solutions, Inc., is well-known for being the author of the company’s annual Crash Course since 1995, where she interprets the numbers and forecasts what is going to happen next. Gotsch’s historical perspective supported by data is invaluable for anyone who works in the automotive industry. Gotsch set the table for this year’s report before diving into the numbers. “It’s hard to fathom that we are nearly two full years into the pandemic, but one thing we know for sure: The natural pre-pandemic order of things has been altered, leaving us searching for a new normal or rhythm to how we live, communicate and conduct business,” she wrote. Obstacles created by supply chain issues are a concern to every body shop in the world right now. “Despite new variants and ongoing debates on how best to balance public health and economic well-being, the U.S. economy has roared back, with consumer buying things like cars, homes, furniture, electronics and other goods,” she said. “As a result of the increased demand, supply chains have been pushed to their brink, either from shortage of goods or people to deliver them. “Whether it’s the auto industry’s shortage of semiconductor chips or metals critical to development of electric vehicles, or the medical industry realizing many of the most critical drugs and supplies are only manufactured overseas, all industries are hav-

“Unfortunately, new vehicle pandemic, the Crash Course said. While repairers are seeing an technology such as ADAS and EVs increased number of non-driveable have added increased complexity DRP repairs relative to the preced- and requirements for new skillsets, ing two years, both driveable and training and tools for the collision non-driveable repairs are taking repair industry,” she said. “So, while longer, and repairer productivity is the industry has demonstrated its relower. silience and ability to adapt to new “Unfortunately, as repair costs vehicle technology over the years, climb, repairer productivity can adapting takes time, and today’s ensometimes suffer, custom- vironment means these repairs may er satisfaction can fall and cost more.” the likelihood that the cusA sharp increase in motor vetomer needs to bring their hicle fatalities occurred in 2020 and vehicle back for additional 2021 in the U.S., highlighting the work after repairs complet- need for new directives to improve ed also increases,” Gotsch vehicle safety. An estimated 20,160 people explained. “And it’s not just repair time that is tak- died in motor vehicle traffic crashes ing longer. The time to get in the first six months of 2021, acDirector/Industry Analyst Susanna Gotsch from CCC an appraisal has increased cording to the NHTSA—an increase Intelligent Solutions forecasts that supply chain problems, for traditional channels of 18.4% from the first six months inflation and repair complexity will continue to be major where the customer either of 2020, and the highest number of obstacles for collision repairers in 2022 is visited by an insurance fatalities during the first half in 15 data pointing to higher wages in staff appraiser or brings their vehicle years, based on this year’s Crash Course. 2022,” she said. “The disruption in for a DRP appraisal.” Ultimately, the key to combat The fatality rate per 100 million experienced over the last two years has accelerated the pace of innova- higher costs is to improve produc- vehicle miles traveled increased to 1.34 for the first six months of 2021, tion across all industries, leading to tivity, Gotsch outlined. the transformation of how business is conducted as technologies such as artificial intelligence (AI), telematics, mobile and cloud are being adopted to help inform and speed processes, and combat challenges stemming from labor shortages, new consumer expectations and other market dynamics.” The automotive repair industry • Fast Free Daily Delivery is still struggling to find employees, • Large Inventory of GM Genuine Parts Gotsch reported. • Professional Responsive Parts Specialists Ready to Help “Representatives from Universal Technical Institute predict a wave of retiring baby boomers will create 100,000 auto technician job openings over the next decade or so, with the Bureau of Labor Statistics projecting a 4% decline in employment in the overall auto technician Hours field through 2029,” she said. “FindM-F 7-6 l Sat 8-2 ing technicians with the right skillParts Direct sets is also a growing challenge as 734-793-6000 vehicle complexity increases.” Most collision repairers inFax 734-793-1101/1102 dicate the technician shortage has 4000 West Highland Road been the primary reason for longer Highland, MI 48357 backlogs of work. Repair work is up kmason@lafontaine.com as auto accident frequency has riswww.lafontainegm.com en. Many shops have indicated they cannot repair as many vehicles at the same time as they did before the ing to re-examine and restructure their supply chains.” The supply versus demand imbalance has also impacted U.S. inflation in a huge way, which hit a 40year high in December 2021, Gotsch said. “Labor shortages have also driven up wages across nearly all industries, with Conference Board

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versus 1.28 for the first six months of 2020 and 1.07 during the same period in 2019. Fatal accidents either involving just one vehicle, speeding, illegal substances or failure to wear a seat belt rose disproportionately—underscoring how more drivers are more reckless than ever before. Some of those states with the highest fatality rate per 100 million vehicle miles traveled in 2019 are also those states experiencing the most growth in population. What caused this lack of inventory in 2021? “Extreme weather and cyber security were not the only challenges in 2021 that forced people and businesses to evaluate business models,” Gotsch wrote. “Many industries like the automotive industry had moved to a just-in-time inventory system prior to the pandemic—an approach that was sorely tested over the last year as consumer demand increased much faster than anyone had planned. “Inventories had been drawn down from plants being closed at the outset of COVID, and then operating at lower levels of production while trying to balance employee safety and production demand,” she continued. “As industries scrambled to meet demand, they met the same challenges: Higher raw material prices, higher transportation costs from higher wages and fuel prices, record spot container shipping rates (14 times higher now than during the same period in 2019), more money and time to unload goods at shipping ports, and shortage of employees on site.” In the P&C insurance and automotive sector, dealers, OEMs and aftermarket parts sellers have been operating with lower parts inventories, based on numbers outlined in the report. “Demand for parts has rebounded faster than many of the parts manufacturers and distributors expected, leading to an increase of ‘out of stock’ from aftermarket or ‘backorder’ scenarios for OEM parts,” Gotsch said. “Even when parts are available, they may be stuck overseas where the issue is getting the parts from the warehouse to the ports, onto the ship and then unloaded and delivered to the U.S.” Parts delays and challenges

finding qualified technicians are the two primary reasons repairers have seen their throughput of repairs and productivity fall and repair times grow. CRASH Network in Q4 2021 reported 96% of shops surveyed were experiencing delays, and the national average scheduling backlog reached 3.4 weeks, versus the pre-pandemic Q4 average backlog of only 1.7 weeks. Shops are focused more than ever on blueprinting the repair to identify parts needing replacement and delaying the start of the repair until all parts have arrived on site. This is leading to delays in the average days from estimate completion to vehicle in for both driveable and non-driveable DRP repairs. In conclusion, supply chain disruptions, extreme weather, cyber threats and labor shortages are disrupting historical trends, and have also made pricing and reserving for insurance much harder. Fewer commuters mean less traffic and fewer accidents. “Nearly two years in from the early shelter-at-home orders and a sizable share of the working population in the U.S. is still working remote at least one day per week,” the report said. “Many companies have postponed plans to bring employees back to the office numerous times, even in a hybrid model. Research from the Federal Reserve Bank of Atlanta, Stanford and University of Chicago suggests nearly 40% of U.S. jobs can be done at home, and office occupation levels tracked by Kastle Systems continue to stay well below 50% across their 10-city average.” With many vehicles traveling at faster speeds on less congested roads during the pandemic, vehicles in accidents were seeing higher Delta-v’s, with greater damage to both the vehicle and its occupants. Delta-v is a measure of a collision’s severity or force. Higher forces in an accident increase not only the damage to a vehicle but also the likelihood for occupant injury and more severe injuries. The professional disciplines of accident reconstruction and injury causation have clearly established axioms. All other factors being equal, the following are true: increasing the severity of an impact, in terms of impact force, increases

32 MAY 2022 AUTOBODY NEWS / autobodynews.com

the amount of damage to a vehicle, and increasing the severity of an impact, also in terms of impact force, increases the risk of injury to the vehicle’s occupants. According to a survey by Workplace.com, 37% of U.S. employees will be working remotely in 2022, according to Gotsch’s data, with between 29% to 39% of the time spent working in the U.S. possibly done remotely, with 22% of employees able to work remotely three to five days per week without affecting productivity. With potentially fewer people on the road during rush hour, congestion levels may remain lower, and some of the auto claim trends experienced during the pandemic may become more permanent. Overall 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. This is important because the variable shown to be most highly correlated to vehicle accident frequency is a large number of vehicles

on the same road at the same time— i.e., congestion typical of morning and evening rush hour traffic. So, with miles driven recovering, but fewer during historic peak rush hour times, does automotive claims data suggest different driving patterns will continue in 2022 and beyond? Overall claim counts including comprehensive losses were up 9.6% in 2021 versus 2020, while non-comprehensive losses were up 10.2%. The acceleration of repair costs is always a major issue for body shops nationwide. Gotsch’s report said in 2021, the industry experienced a much larger increase in repairable claim costs than in prior years. The average total cost of repairs overall for all repairable appraisals was $3,708, up 8% from 2020 and up 14% from 2019. Growth in the average number of parts replaced per claim as well as more labor hours per claim largely account for the rise in repair costs. Increasing vehicle complexity—both in terms of the materials used in the construction of the vehicles, as well as an increased number of standard See Concerns in 2022, Page 40

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Industry Insight

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

with John Yoswick

Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics

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Collision repairers have for some substantially, but the largest increas- repairable non-comprehensive claim time been saying changes they are es that we experienced in 2021 are grew slowly from 2011 (23 hours per seeing within their business point to not likely to be repeated in 2022. claim) through 2019 (23.9 hours), but with Ed Attanasio a need for insurers to adjust their key Where most analysists are predict- then jumped to 24.7 hours in 2020, performance indicators (KPIs) metrics for direct repair claims. Recent industry data from CCC Intelligent Solutions support the trends shops are reporting. Average repair for exwithcosts, Ed Attanasio ample, rose 8% in 2021, about one percentage point higher than U.S. inflation overall; the average part cost across all part types—OEM and aftermarket—was also up 8% last year, the “largest annual increase we have seen” since CCC began reportwith Ed Attanasio ing that data in 1997, according to CCC’s Susanna Gotsch. “Moving forward, most ana- With more larger repair jobs during the pandemic, cycle time across the industry has risen lysts expect that we’ve seen most of the increase in parts costs that we are ing [the industry] will see the most and to 25.8 hours last year. Gotsch going to see,” Gotsch said.Attanasio “We’re pressure in 2022 will be on wages.” said the pre-pandemic growth was with Ed not likely to see part prices reverse Average total labor hours per related to vehicle complexity, but the

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larger increase in the last two years is based in part on the increase in the percentage of non-drivable claims. Compared to 2019, there was more than a full percentage point jump in DRP claims with repair costs above $10,000 in 2021, and a 2.5 percentage point jump in claims between $5,000 and $10,000. That results in longer cycle times, Gotsch said. “For each $1,000 increment, we essentially see an additional two full days in the overall repair time, or keys to keys time,” she said. “Industry wide, DRP repairs are now taking over 12 days, two full days above where they were in 2020, and a little less than two full days longer than they were in 2019. By the time we get to a $10,000 or higher repair, the average repair time exceeds 35 days. “Subsequently, we hear more

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carriers saying their customers are running out of allocated rental days, and many carriers have said they are looking at…their policies to determine if those [limits] should be adjusted.” Another data point of note from CCC’s recently-released annual Crash Course Report: The national average body rate in 2021 ($52.86) was up just 1% from the prior year, the smallest percentage increase since 2011, in a year when overall inflation in the country was 4.7%. CCC reports overall claim counts were up nearly 10% in 2021 compared to the prior year, but still down more than 13% from 2019. “Month-by-month comparisons, however, show volumes have been steadily rebuilding,” CCC said in the report. For example, overall claim counts in January 2021 were down 19% versus January 2019, but by December 2021, overall claim counts were down just 5.9% compared to December 2019. One statistic in the CCC report will be of little surprise to shops: The percentage of claims with supplements continues to increase. Back in 2001, more than 50% of DRP claims did not have a supplement, according to CCC. Today, it’s just over 30%. The percentage involving two, three or four supplements has nearly tripled over that time span to more than 30%. “In addition, the share of the overall repair cost added during supplements has also grown, where over 35% of the overall repair cost is added during supplements for those claims with four or more supplements,” the report said. Another interesting statistic for DRP shops concerned about the metrics insurers are using to measure their performance: The decline in labor hours per day that has been occurring since 2017 only accelerated in 2021. Direct repair shops were producing about 2.5 labor hours per repair day on drivable vehicles in the second half of 2021, down from just over three hours during the same period in 2020, and down from more than 3.5 hours in 2016 and 2017. For non-drivable cars, shops were producing about two labor hours per day during the second half of 2021, down from above 2.5 in 2018 and 2019, and about three in

2017. CCC cites such factors as the technician shortage and the increased number of non-drivable repairs as the likely cause of the change. But a number of shops said they would point to other causes. “For us, it’s absolutely the parts shortage,” one shop owner said. “It’s

going to continue because of the ever-increasing vehicle complexity. “It’s not like you can just hang a replacement fender or replace a bumper cover any more,” one shop manager said. “Those jobs have mostly gone away. There’s electronics involved with almost every part now.”

CCC data shows labor hours produced per day for DRP claims has been declining since 2017

got us stopping and starting on jobs like never before, and spending way too much time shuffling cars around in the shop and back lot.” Two other collision repairers said they think the decline is only

agreements in recent years, like we have. Not to knock the big MSOs, but even some people I know who work at them say they’re not as productive as shops with an owner on-site. They can help contain costs, but it’s not usually through better productivity. I think the CCC data reflects more DRP claims going through those MSOs.” MSOs with 25 or more shop locations last year accounted for 43% of uploaded DRP appraisals, according to CCC, a percentage that has grown nearly four-fold since 2008. Whatever the cause, even CCC acknowledged labor hours produced per day isn’t likely to rebound soon. “With many repairers seeing repair volumes grow while still unable to find the technicians needed, we expect we will continue to see labor hours per repair day remain below where it was pre-pandemic,” Gotsch said.

Still another had what he acknowledged was just a theory. “A lot of CCC’s data reflects only DRP claims,” he said. “Many of the top independent shops have cut way back or eliminated DRP

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EagleMMS Software Soars to the Top of Auto Body Shops’ To-Do Lists by Ed Attanasio

Two brothers were driving from Connecticut to Maine, and they decided to spend the time brainstorming instead of playing 20 Questions or the license plate game. It’s a 4.5-hour trek, so to kill time they began talking about difficulties in the auto body industry and how it has lagged from a technological perspective for many years. That journey turned out to be highly productive for the Koutmos brothers, Yanni and Alex, because by the time they reached their destination, the pair had an idea for a product that could help any collision repairer track consumables usage and get paid for them by the insurance companies. They named it EagleMMS and were excited about their new baby and how it could change the collision repair industry. EagleMMS is a technology company committed to providing collision repairers with the insight needed to run at peak efficiency.

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From family-owned independent shops all the way to large MSOs, EagleMMS is a materials management software saving shops thousands of dollars month after month. Yanni is a seven-year veteran of the auto body industry, having spent nearly one year as a certified appraiser from the insurance side and

gramming language community, and has spent more than a decade developing reliable and robust software systems. After a highly productive brainstorming session, Yanni and Alex sought to develop a lightweight, high impact solution to address the disparity regarding stagnant insurance rates and rising materials costs to help business owners in their mission of providing excellent car care and customer service, without sacrificing their bottom line. After nearly a year and a half of intensive development, they were poised to offer the industry a cutBrothers Yanni, pictured, and Alex Koutmos developed ting-edge solution that can EagleMMS, a software program that can help shops get help shops reclaim lost revpaid for materials and other expenses related to every car enue on items and products repair they used on almost every six years as a frame tech and master repair. That car ride has turned into a body man. Alex is a former Amazon soft- product gaining traction and receivware engineer, currently one of the ing five-star reviews nationwide. leading experts in the Elixir pro“We started out venting about

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the industry and all of the problems associated with it,” Yanni said. “The insurance companies are always going to be playing with labor rates and ignoring things like inflation and supply chain issues. Their numbers are consistently outdated and arbitrary. The paint companies have informed the shops earlier this year that they’re going to raise their prices significantly. “In addition, it’s harder and harder to find qualified people to fix these vehicles and it’s more and more difficult to recoup their costs for materials. We knew if we could come up with software that could help shops to recoup their costs, it would be a hit.” Yanni’s mantra is “If something comes into your shop and it costs you money, it should always make you money on the way out,” he said. “Too many shops have gotten used to not charging for things, so we’re re-educating them. Once they see how much they can recover, they realize how much money has been bleeding out of their businesses for

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literally decades.” By creating precise documentation that clearly states the products being used down to each piece of sandpaper and every ounce of rubberized undercoating, for example, EagleMMS is also educating the insurers.

By building a comprehensive and detailed invoice on every repair, EagleMMS is saving shops thousands of dollars every month

“The system builds an invoice and as the tech scans every QR code, it goes into the document,” Yanni said. “Every product you use is invoiceable and once your people become familiar with that concept, it becomes part of their daily lives. Then

once you get the insurance company onboard, they will normally stop fighting you.” Simple is one of the best adjectives to describe EagleMMS, Yanni said. “Getting started with EagleMMS is easy and straightforward. After adding all of the materials that you want to track into EagleMMS, you’ll be able to generate QR code tags to put near your materials. With your QR tags in place, all your technicians need to do is scan a QR tag,” he said. “Technicians scan the needed material QR tag and then provide checkout details. The technician selects the repair order and the quantity used, and it’s immediately added to the invoice. After the scan is completed, the repair order invoice is automatically updated. All that’s left to do is submit the shop’s EagleMMS invoices in order to get adequately reimbursed.” In addition to providing accurate repair order material usage invoices, EagleMMS also enables users to manage all aspects of material management from the shop floor. “Technicians can report low or

out of inventory items, so that your parts people can order more inventory before running out,” Alex said. “You can also analyze your data to find out which materials are being used, by whom and at what rate, in order to better optimize your production process.” EagleMMS is web-based and does not require any cumbersome mobile or desktop applications. Techs can access their shop’s information and perform the job right from their phone. Another benefit is EagleMMS is not tied to any particular material manufacturer or supplier. “When we designed EagleMMS, a critical objective was to have a product that was extremely fast and streamlined,” Yanni said. “That’s why it takes less than five seconds—start to finish—to add material usages to repair orders. We’ve also made it very affordable with a monthly subscription of $49 and an optional $499 one-time setup fee if customers choose to have us set up their inventory and print their QR code tags and technician QR tag binders.”

Continued from Page 32

Concerns in 2022 options—are helping to lift costs. The distribution of repair cost dollars has changed little over the last 20+ years, the timeframe in which CCC tracked this information. In 2021, the increase in both the share of overall dollars spent on replacement parts and sublet/miscellaneous operations continued. The average price paid per replacement part had historically experienced only moderate increases at an aggregate level. However, supply chain issues in 2021 drove prices up sharply. At the close of 2021, the industry’s share of replacement part dollars was split at 64.4% OEM versus 35.6% non-OEM. Between 2001 and 2021, the average number of replacement parts per non-comprehensive appraisals increased from 5.1 parts to 9.1 parts for driveable vehicles; from 18 parts to 22.3 parts for non-driveable vehicles; and from 8.0 parts to 12.1 parts for the combined driveable and non-driveable claims.

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New Standardized Independent Adjuster Competency Exam Announced by Ed Attanasio

When an adjuster walks into your auto body shop to write an estimate, the decisions they make can affect the repair from start to finish. If your number and their number don’t agree, it can lead to an avalanche of supplements and potentially open up a tug-of-war between you and the insurer. How qualified is the adjuster and can you rely on their assess-

its kind in the independent claims industry. Adjuster Score will provide secure, fully proctored multiple choice and practical claims testing for new and experienced property and auto adjusters. The exams will test key competencies including but not limited to basic computer skills, policy knowledge and application, estimating knowledge and application, building construction and vehicle knowledge, damage identi-

“We want IA firms to be able to assess an applicant at a glance—similar to a credit score or a standardized test score like the SAT or LSAT,” — Chris Stanley ment of the vehicle in question? A test score could help shops strip out a lot of question marks across the board, and be confident of an accurate sheet. AdjusterTV.com and IAPath. com have partnered to create a new company, Adjuster Score, offering a standardized independent adjuster core competency exam, the first of

fication and customer service skills. “It’s important that we test applicants not only on how well they can build a diagram in the estimating software, but also how well they can use that software in the context of a claim,” said Mathew Allen, Adjuster Score co-founder and owner of AdjusterTV.com. “We feel that Adjuster Score

scratches several important itches in the claims industry,” Allen said. “It will provide adjusters with a narrow roadmap for building their skills and equipment, and will calibrate third-party adjuster training companies to the skills that firms and carriers need new adjusters to have. It will also provide IA firms with an objective measure of an adjuster’s skills, knowledge and equipment.” “We want IA firms to be able to assess an applicant at a glance— similar to a credit score or a standardized test score like the SAT or LSAT,” said Chris Stanley, co-founder of Adjuster Score and owner of IAPath.com. A user’s Adjuster Score will have an aggregate total score that is then broken down into specific scores for soft skills, technical skills and policy skills, among others. In addition, adjusters will be able to gain points every time they get a new license, certification or important piece of equipment. This will help firms and carriers to know who’s ready to deploy. Adjuster Score is rapidly gain-

ing traction with insurance companies and the collision repair industry, as well as with both fledgling and veteran adjusters. Insurance claims adjusters play a vital role in the insurance industry. They are often called upon to conduct interviews, study police reports and inspect damages, among other duties. It can be a fast-paced career that has its financial rewards, and there are a number of different areas an insurance claim adjuster can work in. But education and licensing requirements vary state to state, so without a standardized national test, no one can quantify someone’s skillset definitively. A test levels the playing field and offers a number everyone can use to measure and compare, as well as offering that much-needed peace of mind to insurance companies and consumers alike.

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Dingle Family Continues Journey with Their Recycled Ride “It was so miraculous, I still can’t believe it happened even now,” As part of Autobody News’ “After Dingle said. “The people at Mike’s the Donation” series, we focus on Auto Body and the Rose family are families, individuals and nonprofit incredible, because they make their organizations who give away cars benevolence program a priority evthrough NABC’s Recycled Rides ery year. After receiving these blessings, I realized that I now have a reProgram. Mike’s Auto Body is a leader sponsibility to help others—to pay it when it comes to philanthropy, and forward.” Since receiving the vehicle, nationally known for giving people a hand up as opposed to a hand out April and Eugene Dingle have been through its Benvolence Program. In doing everything they can to give December, the California Bay Area back to their community, and their MSO, owned by the Rose family, Nissan Versa has played a signifigave four families “nearly new” cant role in their journey. “Back then, I was the chaplain completely refurbished cars—bringing its total number of donations to assistant at Moffett Field in Sunny100. vale, CA, so I had a 1.5-hour commute from our home in Suisun City,” Eugene said. “I was also studying to become a chaplain at Gateway Seminary in Fremont, and running the religious education programs at Travis Air Force Base at the same time.” In December 2018, Eugene transferred to MaryThe Dingle family is still driving the 2013 Nissan Versa land to join the 175th War they received in 2015 as part of Mike’s Auto Body’s Field Wing in Middle RivBenevolence Program er. He now proudly wears Many of these recipients have two hats—one as an active member decided to pay the benevolence for- of the Air Force and another as an ward and help others in need, and assistant chaplain. It’s a role he loves the Dingle family is a prime exam- because it allows him to help people ple of the power of giving. as they navigate through their lives In November 2015, Mike’s in the military. Auto Body presented a 2013 Nis“It can be a stressful existence san Versa to Staff Sgt. Eugene Din- and a lot of what I do involves crigle from Travis Air Force Base and sis management,” Eugene said. “I his wife April as part of its annual offer the men and women I help presentation on Veterans Day at the with 100% confidentiality, which company’s Fairfield, CA, location. is something they appreciate. We At the time, Eugene was a do everything we can to keep these member of the 60th AMXS Squad- people in the Air Force and this can ron and had to commute to and from be a very stressful job, but the rehis assignment at Moffett Air Base wards are many.” as well as get his children to and When Mike’s Auto Body gives from school. Thanks to their com- anyone a vehicle, they first re-conpletely refurbished vehicle from dition every part of the car. With Mike’s Auto Body, the Dingle fami- 112,000 miles now on the Dingles’ ly was able to function normally. 2013 Nissan Versa, the vehicle is In addition, the Rose family still going strong after a few treks gave the Dingle family one year of that tested its ability to go the disinsurance coverage and a trunk full tance. of gifts for the children. “When we moved to Maryland, Eugene said he couldn’t stop we drove there with the Versa and a smiling when he first saw his 2013 van that we purchased. It was a little Nissan Versa for the first time six scary with my wife, the kids and a years ago. dog and it was wintertime,” Eugene by Ed Attanasio

42 MAY 2022 AUTOBODY NEWS / autobodynews.com

said. “My friends told us take the southern route to avoid the snow and the mountains, and that was good advice. It took us six days to get there.” Before moving to Maryland, Eugene and April donated their time generously to Mike’s Auto Body, which included walking in the Veterans Day Parade in Fairfield, CA. In addition, Eugene did the invocation at the Veterans Day presentation and April sang the National Anthem at the 2016 Christmas presentation in Antioch. “We feel like we’re part of the family at Mike’s Auto Body now. Sal Contreras and the Rose family have been wonderful to us,” April said. “We’ve become good friends with the people at Mike’s—they’re truly special!” The car now gets Eugene to and from his job—another 1.5-hour commute—while April uses the van to transport her children to their activities. “The car is a workhorse and we wouldn’t be in the position we are

now without it,” Eugene said. “One of my daughters, Ariel, is now playing competitive basketball and volleyball, and we are also taking care of our parents who live in Washington, D.C. My father Lovair is 85 [former Air Force]; and we are also taking care of my wife’s parents [David, 78, and Carlisle, 76]. The car gets us to where they live, so we can take them to our appointments, etc.” One random and wonderful event happened as a result of the benevolence car, Eugene said. “Our little pug named Bishop was an escape artist and one day he ran off and we figured we’d never see him again,” he said. “But, because of the media coverage we got through Recycled Rides and Mike’s Benevolence Program, a veterinarian all the way in New Jersey knew my name when they found Bishop and scanned his microchip. We didn’t update the contact information, so if they hadn’t known our name from the press coverage, we would have never been reunited with Bishop!”

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EV Operating Costs Appear Much More Appealing as Gas Prices Soar: Report by Steven Loveday, InsideEVs

According to a new analysis by the Zero Emission Transportation Association (ZETA), electric cars are saving owners money, attributed to operating costs, which comes as no surprise. To be clear, the general idea here is not news. We’ve shared comparisons time and time again showing how an electric car can be cheaper to own than a similar gas-powered car once you factor in long-term ownership costs. EVs are much more expensive up front, though they tend to save owners money on fuel and maintenance over the years. If this wasn’t already provable in a growing number of cases, it’s becoming even more of a reality as gas prices soar. While electricity prices are also rising, they’ve remained relatively consistent over the years, with a more gradual rise. Meanwhile, gas prices have proven more volatile over time. Moreover, due in part to Russia’s invasion of Ukraine, oil prices have spiked to record highs, and gas prices are following suit.

“This month’s Consumer Price Index shows once again that gas prices are surging, which has been exacerbated by Putin’s invasion of Ukraine,” said ZETA Executive Director Joe Britton. “American families are losing money at the pump to a commodity that is increasingly unpredictable and unaffordable in an already-expensive pandemic year. Our analysis shows that American consumers don’t have to choose between driving their car or saving money. Electric vehicles are affordable now.” Note that “affordable” is highly subjective here. Just because a family can potentially save money over time by choosing an EV over a gas car doesn’t mean it will prove true in all cases. In addition, if a car shopper simply can’t afford the upfront cost of an EV, they won’t be able to take advantage of the potential opportunity. Finally, even with high gas prices, it almost always makes sense to keep the car you already own, especially if there aren’t major issues with it. Buying a new car right now

when inventory is scarce and prices are high may not be the best plan. At any rate, ZETA put together a report comparing the operating costs of electric cars versus gas-powered cars. We’ll say right up front these studies should always be taken with a grain of salt, though they do paint an interesting picture of the situation as it’s unfolding. Reports such as this typically rely on a small data set, and there are an immense amount of factors and variables involved. ZETA used three of the most popular gas-powered vehicles. It looked at a select number of U.S. states and aimed to compare the operating cost of the gas-powered vehicles to that of similar EV models. ZETA claims its research suggests, unlike gasoline prices, EV charging costs aren’t “dependent on global oil markets—and are therefore not subject to the same price shocks, disruptions and supply shortages.” “Instead, EVs run on electricity, which is cheaper than gasoline and is produced domestically from increasingly renewable and locally derived resources,” Britton said. “As Congress moves forward to pass

new transformative clean energy investments to electrify the transportation sector and bolster domestic auto manufacturing, EVs’ sticker prices and total cost of ownership will only continue to come down, paving the way for electric vehicles to become the new—and affordable—normal in the United States.” Based on the details in the study, ZETA suggests, as of March, driving an electric car is significantly less expensive than a gas-powered equivalent. The EV advocacy group goes so far as to say “EVs are three to five times cheaper to drive per mile than gas-powered vehicles.” It added in some states, the savings appear to be even higher. ZETA mentioned earlier data from Consumer Reports that claimed EV owners were saving between $6,000 and $10,000 over the lifespan of the car as compared to gas-powered vehicles. That report was published in late 2020, when average U.S. gas prices were much lower than they are today, though several more expensive EVs have also come to market since then, and electricity prices have risen slightly.

1Collision, Auto Techcelerators Partner 1Collision and Auto Techcelerators, LLC have announced a partnership where Auto Techcelerators will provide consulting, software, mobile apps and training to help 1Collision affiliate locations open and operate ADAS service and calibration businesses. 1Collision affiliates will now have access to advice, training, software, mobile apps and other solutions that will help them launch and operate a profitable ADAS services and calibration business in their local markets. The agreement provides support for site identification and preparation, equipment selection, software and mobile apps that identify ADAS systems, components and required calibrations to managing their calibration businesses and documenting, invoicing and validating all aspects of the calibration process.

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USDOT Announces New Vehicle Fuel Economy Standards for Model Year 2024-2026 The U.S. Department of Transportation’s National Highway Traffic Safety Administration on April 1 announced new, landmark fuel economy standards which follow President Joe Biden’s executive order to drive American leadership forward on clean cars. The new standards will make vehicle miles per gallon more efficient, save consumers money at the pump and reduce transportation emissions. The new Corporate Average Fuel Economy (CAFE) standards require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks in model year 2026, the strongest cost savings and fuel efficiency standards to date. The new standards will increase fuel efficiency 8% annually for model years 2024-2025 and 10% annually for model year 2026. They will also increase the estimated fleetwide average by nearly 10 miles per gallon for model year 2026, relative to model year 2021. Strong fuel economy standards strengthen U.S. energy indepen-

dence and help reduce reliance on fossil fuels. Since CAFE was signed into law in 1975, the standards have reduced American oil consumption by 25%, or approximately 5 million barrels a day since then. The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips. “Today’s rule means that American families will be able to drive further before they have to fill up, saving hundreds of dollars per year,” said U.S. Transportation Secretary Pete Buttigieg. “These improvements will also make our

country less vulnerable to global shifts in the price of oil, and protect communities by reducing carbon emissions by 2.5 billion metric tons.” The new standards will also reduce greenhouse gas emissions and air pollution. These reductions will improve public health and provide environmental justice for communities who live near freeways and other heavily trafficked roadways, which are disproportionately low-income communities of color. “NHTSA is helping American families by making life more affordable—and the air cleaner for their children,” said Dr. Steven Cliff, NHTSA’s deputy administrator. “These vehicles will be better for the environment, safer than ever, and cost less to fuel over their lifetimes. We are proud to fulfill President Biden’s mission to move us to a more sustainable future, one that strengthens American energy independence and helps put more money in American families’ pockets.” This announcement of new standards comes as the automobile

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industry is retooling production for future models in response to rapidly growing market demand for cleaner, more fuel-efficient vehicles. Nearly all auto manufacturers have announced new electric vehicle models. More robust fuel economy standards will encourage the industry to continue improving the fuel economy of cars powered by internal combustion engines as the transportation sector transitions to electrification. The final fuel economy standards follow Biden’s Executive Order 13990, which directed NHTSA to review the 2020 “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks” final rule. These CAFE standards also support the Biden-Harris Administration’s priorities to cut costs for American families, improve public health, combat climate change and create and sustain good-paying jobs with a free and fair choice to join a union.

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autobodynews.com / MAY 2022 AUTOBODY NEWS 45

‘Who Pays for What?’ Survey Shows More Auto Body Shops Billing, Being Paid for Masking During Priming

CDK Global Supports ASE Foundation

The percentage of auto body shops saying they are paid regularly by the eight largest auto insurers for the labor involved in masking prior to applying primer has grown significantly since 2015, according to the “Who Pays for What?” survey series. Seven years ago, fewer than one in four shops (24%) said they were paid “always” or “most of the time” when masking was required as part of the priming process. In January of this year, that had grown to 45%, a figure that has been consistent for three years in a row. Perhaps just as significantly, the percentage of shops saying they have never billed for the procedure has fallen from about 39% in 2016 to just 25% today. While the surveys ask specifically about billing for the labor involved in the procedure, Mike Anderson of Collision Advice is concerned some collision repair businesses may not be sufficiently considering the costs for the materials involved.

CDK Global has expanded its support of the ASE Education Foundation with a second donation of $20,000 to provide technician toolboxes to aspiring automotive students with a demonstrated need. This donation is in addition to the CDK donation announced earlier in March that will support the foundation’s diversity, equity and inclusion program. Data shows 94% of students who focus on a CTE (Career and Technical Education) course of study graduate from high school on time versus 86% for other high school students, a result that holds true in low-income areas as well. For those students to start their first job, they need the basic tools of the trade. Even with a student discount, sets of starter hand tools can cost $1,000 to $2,000, and this can discourage otherwise promising students from pursuing automotive service careers before they even get started. Source: ASE

“As inflation drives up the cost of shop supplies, it’s important for shops to review their billing practices,” said Anderson, who conducts the quarterly “Who Pays” surveys in conjunction with CRASH Network. “We see many shops billing for this masking procedure through their parts code tables as a body operation with a manual line for materials, and they are not capturing enough for materials. Shops should review this because it can vary based on the specific job.” The latest quarterly “Who Pays for What?” survey is now open through April. It focuses on “not-included” body labor operations. Shops can take the survey at: https://www.surveymonkey. com/r/76X7BMV Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information

presented. Anderson said the survey, which has been streamlined to take less than 15 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https://www.crashnetwork.com/ collisionadvice Collision Advice (www.CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network (www.CrashNetwork.com) is a subscription newsletter offering news and information not available from other industry sources. Source: CRASH Network

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Improved Semiconductor Supply Drives Truck Market Share Gains for GM General Motors Co. sold 512,846 vehicles in the U.S. in the first quarter of 2022, with improved semiconductor supplies supporting higher production and market share in key truck segments. “Our ability to meet pent-up demand improved dramatically thanks to a tremendous effort by our supply chain and manufacturing teams to keep our plants operating at close to normal levels,” said Steve Carlisle, executive vice president and president, GM North America. “Supply chain disruptions are not fully behind us, but we expect to continue outperforming 2021 production levels, especially in the second half of the year.” According to GM Chief Economist Elaine Buckberg, industry light vehicle volumes will grow this year and top 2021 levels, thanks to a strong labor market, higher vehicle production and pent-up demand. “Ordinarily, a U.S. economy this strong would translate into light vehicle sales in the 17 million range,” she said. “Improvements in the supply chain should lift auto sales as the year progresses, despite headwinds from higher inflation and fuel prices.”

GM estimates total light vehicle SAAR for the first quarter was 14.1 million, down from 16.8 million a year ago, due to lower inventory and production levels. GM deliveries in the first quarter were down 20% from a year ago, but they were up 16% from the fourth quarter. GM’s production in North America has increased sequentially each quarter since the end of September 2021, and the company ended the first quarter with 273,760 vehicles in dealer inventory, including in-transit units, which are rising. Inventories were 128,757 units at the end of the third quarter of 2021, and 199,662 at the end of the fourth quarter. GM expects inventory to remain relatively low throughout the year due to high demand. GM’s performance, along with a more stable operating environment, has already translated into market share gains for GM in key truck segments: The combined retail market share of the Chevrolet Silverado HD and GMC Sierra HD pickups was a segment-leading 41.5% during the first quarter, according to J.D. Power PIN— up more than 10 percentage points from a year ago and GM’s strongest

quarter in HD retail market share in over a decade. The Chevrolet Silverado 1500 and GMC Sierra 1500 also led their segment during the quarter, with combined retail market share of nearly 42%, up 2.6 points year over year, according to J.D. Power PIN. The combined retail market share of the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon and Yukon XL reached 69% during the first quarter, up 5 points year over year. GM’s sales in the segment were up 10%. The Cadillac Escalade had its best first quarter since 2007, with a 7% sales increase. In another sign of robust economic growth, commercial customers have been upgrading and expanding their fleets. GM delivered its best commercial sales quarter in nearly three years with sales velocity at the end of the quarter reaching a 15-year high. In the commercial market, sales of full-size pickups were up 5%, compact SUVs up 131% and mid-size pickups up 23%. Total first-quarter deliveries of the Chevrolet Low Cab Forward were up 48% compared to a year ago. The

Chevrolet Silverado medium duty line, which is a popular choice for upfitters, was up 23%. Fleet sales, which were 24% of GM total sales in the first quarter, grew 10% year over year, with commercial and government deliveries up 14% and 18%, respectively. Chevrolet Tahoe sales to government customers increased 243%. The first quarter saw GM reach several milestones as the company scales EV capacity in North America to more than 1 million units by the end of 2025. GMC’s launch of the HUMMER EV is going according to plan, with early production focused on satisfying orders of the launch edition. Production of the Chevrolet Bolt EV and Bolt EUV will resume April 4. Chevrolet dealers continue to repair customer vehicles and recently resumed deliveries of some completed Bolt EV and Bolt EUVs in inventory. Production of the Cadillac LYRIQ began March 21, nine months ahead of the company’s original target. Cadillac will begin taking orders for future editions May 19. Source: GM

GM to Expedite Hummer EV Production as Reservations Increase to 65,000 by Maria Merano, Teslarati

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General Motors is expediting GMC Hummer EV production after receiving more than 65,000 reservations. “Production’s actually slightly ahead of plan, and we’re putting things in place now to actually expedite that as well, so we can deliver these reservations quicker than we originally thought. We’re seeing momentum building,” Duncan Aldred, GMC’s global vice president, told CNBC. He also said GMC Hummer EV reservations had exceeded expectations. Once again, the demand for electric vehicles remains strong. Ford was in a similar situation with the Mustang Mach-E. Aldred said about 95% of people are converting their Hummer EV reservations into orders, a much higher number than GM expected. Unfortunately, he estimated the company will not be able to fulfill new Hummer EV pickup orders until 2024. Meanwhile, the Hummer EV SUV is expected to arrive in 2023. “What we’re looking at now is how can we build the maximum

amount and how can we deliver, fulfill these reservations as quickly as possible? We’re doing all the studies on that, and we’re confident we can go a lot quicker than we originally thought, but it still means a reservation now probably means delivering in ’24,” said Aldred. GM has invested billions in transitioning from an internal combustion engine producer to an electric vehicle manufacturer. The legacy automaker plans to build most of its EVs at Michigan’s Orion and Factory ZERO facilities. The Orion plant is expected to produce up to 360,000 EVs per year by 2025, while Factory Zero could make up to 270,000 units by mid-decade. GM unveiled the Hummer EV SUV after the pickup version. Megan Hart, assistant marketing manager for the Hummer EV, noted newer reservations seemed evenly split between the SUV and pickup truck versions. In December 2021, GMC announced Factory ZERO had already produced the first 2022 Hummer EV pickup trucks. The announcement kicked off customer deliveries.

autobodynews.com / MAY 2022 AUTOBODY NEWS 47

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