June 2020 Midwest Edition

M IDW ESTEDITIO N

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

A Look at the Impact of Driven Brands Purchase of Fix Auto USA & Auto Center Auto Body

by Stacey Phillips

With Driven Brands’ purchase of Fix Auto USA and Auto Center Auto Body on April 21, the collision repair industry is experiencing another shift in landscape during a time of accelerating consolidations.

FOCUS Advisors, Inc., a full-service mergers and acquisitions (M&A) firm specializing in the automotive aftermarket, announced the completion of the transaction for both parties in a press release to the industry. See p.

Autobody News had the opportunity to talk to David Roberts, man-

aging director of FOCUS Advisors, Inc., about the transaction and its impact in the industry.

Q:

tion?

Can you share some of the background of this transac-

A:

Erick Bickett and I have been friends and professional colleagues for nearly 27 years. He and Shelly Bickett have had a huge impact on this industry for a long time and are some of the most sophisticated operators in the country.

See Purchase of Fix Auto USA, Page 12

Body Shop Still Swinging After 3 Losses Against Insurers in OH Courts

by Jim Sams, Claims Journal

A Columbus, OH, auto body shop, for the third time, has lost an attempt to pocket money paid to it by an auto insurer for vehicle repairs that were never made. The 10th District of the Ohio Court of Appeals upheld a trial court ruling requiring Three-C Body Shop to reimburse Liberty Mutual Insurance Co. $12,506.81 that it paid to repair a policyholder’s vehicle.

The appellate panel noted in its opinion that Three-C had made similar arguments when it lost two lawsuits against Nationwide in 2017.

The appellate court ruled in those cases an auto body shop cannot pursue an unjust enrichment claim against an insurance carrier because its services confer no direct benefit to the insurer.

“In the present case, Three-C gives us no compelling reason to depart from our precedent in the Nationwide cases,” District Judge Susan Brown said in the panel opinion. “Although Three-C argues that the benefit to Liberty is that Three-C satisfied Liberty’s contractual obligations to restore the vehicles to their pre-accident condition, any effect upon See Still Swinging, Page 8

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AUTOBODYNEWS.COM Vol. 9 / Issue 9 / June 2020

Car Rental Industry Braced for Impact from Coronavirus

by Mark Zinn, News-Press NOW

With a recently estimated reduction of more than 90% of non-essential travel, car rental companies are feeling the ripple effect caused by the coronavirus outbreak.

While most local car rental branches remain open, the excess amount of cars on their lots can only mean business is dwindling during a time the car-sharing industry has been hit hard by less demand.

“Like others across the travel industry—and countless other companies large and small—we have wit-

Car rentals are down amid the COVID-19 outbreak.

Credit: Mark Zinn, News-Press NOW

nessed an impact to our business,” said Lisa Martini, a spokesperson for Missouri-based Enterprise HoldSee Industry Braces for Impact, Page 20

As we move from medical crisis to economic recovery, Autobody News chooses to focus on information detailing how the economy is recovering and how companies are managing that process.

Please check Autobodynews.com for the most current information.

NIADA Survey: Independent Dealers Getting Back to Business Employees are coming back to work and vehicles are beginning to sell as independent auto dealers ramp up to get back to business, according to a new survey by the National Independent Automobile Dealers Association.

The survey of 846 used vehicle dealers conducted from May 9-14—a follow-up to a survey taken a month earlier—found almost twothirds (63%) of the dealerships that had furloughed or laid off employees a month earlier have begun the process of bringing them back.

Overall, 34% of the independent dealers said they are rehiring staff, 20% said they are not and 47% said the question was not applicable, meaning they had remained at full staffing level throughout the COVID-19 pandemic—the same percentage as the previous survey.

Thirty-nine percent of those who

are rehiring said they had experienced no problems in doing so, but 31% said their employees were hesitant to come back because they were making more through the government’s

enhanced unemployment benefits than they had made at their jobs, and 19% said fear of the coronavirus was an issue.

The survey also showed dealerships opening up again, with 44% doing business as usual (compared to 27% in April), 34% open by appointment only and 10% selling online See NIADA Survey, Page 18

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CONTENTS

Enterprise Implements Complete Clean Pledge

REGIONAL

NATIONAL

‘Phase 3’: MI Manufacturing Begins

10 Shops Share What They are Doing

Body Shop Still Swinging After 3 Losses Against Insurers in OH Courts ��������������������������1 Chevy Corvette Chassis Deemed Essential, Production Never Stopped at IN Plant ������������20

to Get Work in the Door ���������������������������������45 A Look at the Impact of Driven Brands Purchase of Fix Auto USA & Auto Center Auto Body ��������1 ACA Joins More Than 100 Business Organizations to Launch America’s

Fire Torches Cleveland Auto Body Shop �������������23

Recovery Fund Coalition �������������������������������44

GM Declines Land Option at OH Ex-Plant ������������6

Axalta Supports CA COVID-19 Response �����������22

IL Gov. Pritzker Released Five-Phase Plan

Car Rental Industry Braced for Impact from

to Re-Open on May 5 ������������������������������������13 MI Governor Extends State of Emergency, Shutdown of Bars, Gyms, Theaters Through May 28 ���������������������������������������������6 St. Louis Body Shop Slow After Virus and Storms �����������������������������������������������������8 Team Automotive in OH Keeping First Responders on the Road During Pandemic �����������������������������������������������������22 Two Cars, Tools Stolen from MO Auto Repair Shop ��������������������������������������������������18 Virus ‘Killing’ Some IL Car Repair Firms, Others Adjusting �������������������������������������������16 WI Gov. Evers Delivers Democratic Radio

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry.

Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes ����������������� 12

Midwest Parts Group ���������������������������������10-11

Audi Wholesale Parts Dealers �������������������������� 36

MINI Wholesale Parts Dealers �������������������������� 40

BMW Wholesale Parts Dealers ������������������������ 41

MontiPower Americas, Inc. ������������������������������ 13

Certified Automotive Parts Association �������������� 8

MOPAR Wholesale Parts Dealers ����������������28-29

Classic Chevrolet �������������������������������������������� 31

Morrison’s Auto Parts �������������������������������������� 14

Classifieds ������������������������������������������������������ 46

Nissan/Infiniti Wholesale Parts Dealers ������������ 44

Courtesy Subaru ��������������������������������������������� 37

Patrick BMW MINI ������������������������������������������� 32

Gandrud Parts Center �������������������������������������� 17

Patrick Hyundai ���������������������������������������������� 30

GM Wholesale Parts Dealers ��������������������������� 39

SATA Dan-Am Company ������������������������������������ 2

Haldon Company �������������������������������������������� 15

Sears Imported Autos, Inc ������������������������������� 22

Hawkinson Kia ������������������������������������������������ 16

Shaheen Chevrolet Parts Warehouse ��������������� 33

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

Sherwin-Williams Automotive Finishes. ����������4-5

Hyundai Wholesale Parts Dealers �������������������� 45

Southern Polyurethanes, Inc. ����������������������������� 7

Getting Back to Business ��������������������������������1

Innovative Tools & Technologies, Inc ������������������ 9

Subaru Wholesale Parts Dealers ���������������������� 38

OE Certifications Update 2020—Part 2 of 2 ������38

Kelly BMW ������������������������������������������������������ 20

Symach. ��������������������������������������������������������� 18

Scholarship Recipients Announced by WIN ��������44

Kia Wholesale Parts Dealers ���������������������������� 43

The Porsche Exchange ������������������������������������ 26

State Auto Announces Plan to Help Customers

Laurel Auto Group of Westmont ����������������������� 19

The Sharpe Collection of Automobiles ������������� 27

in Response to COVID-19 ������������������������������42

LKQ Corporation ��������������������������������������������� 47

VanDevere Chevrolet ��������������������������������������� 35

Tractable Donates to CIF COVID-19 Fund ����������34

Luther Bloomington Acura-Subaru ������������������ 21

VanDevere Kia ������������������������������������������������ 35

Women of the Year Award Nominations

McGrath City Hyundai ������������������������������������� 34

Zimmer Chrysler-Dodge-Jeep-Ram ���������������� 48

Enterprise Implements Complete Clean Pledge ���3 Fix Auto USA and Auto Center Auto Body Sold to Driven Brands �����������������������������������46 Ford CEO on Weathering Coronavirus: ‘Don’t Waste a Crisis’ ������������������������������������44 Ford, 3M Shipping Air-Purifying Respirators ��������6 Ford’s Potentially Devastating F-150 Problem Has Been Solved �������������������������������������������42 Garmat Develops Walk-Up Testing Booth for COVID-19 ������������������������������������������������42 Glass Company Shifts Gears to Make ‘Sneeze Guards’ for Vehicles �������������������������42 Good Sam Insurance Agency Underwriter

Address on Supreme Court of Wisconsin

to Give Refund and $3M Donation to

Ruling �����������������������������������������������������������18

COVID Relief Efforts ��������������������������������������22 New Auto Insurance Limits May Be Costly

COLUMNISTS Anderson - Not Busy? If You’re Leading the Business, You Sure Should Be �����������������41 Attanasio - Body Shop Owner Triples Advertising Budget During Pandemic ������������40 Chess - Kool Tools from SEMA 2019 �����������������30 Sisk - Riding the Emotional Roller Coaster of COVID-19 as a Shop Owner ����������������������36 Yoswick - Finding Some Hopeful Bits of Good News Amid the Pandemic Fallout ������������������26

and vehicle-subscription services.

It’s one step in enhancements the company is implementing across the organization to ensure its customers feel safe and confident as they move forward and look to travel again.

“Employee and customer safety are our top priority,” said Chrissy Taylor, Enterprise Holdings president and CEO. “Today and every day, we are committed to maintaining the highest standards of cleanliness in the industry.”

Source: Enterprise Holdings

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

Coronavirus, Financing Concerns ��������������������1

for AZ Drivers ������������������������������������������������20 NIADA Survey: Independent Dealers

Sought ����������������������������������������������������������34

INDEX OF ADVERTISERS

Methodical Restart ����������������������������������������14

Enterprise Holdings is reinforcing its commitment to maintaining the highest standards of cleanliness in the car rental industry. The company announced the implementation of its Complete Clean Pledge program across the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, as well as its comprehensive portfolio of transportation services.

The pledge includes the company’s car rental operations, as well as its truck rental, vanpooling, corporate fleet management, retail car sales, carsharing

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

Michigan Collision Equipment ������������������������� 23 autobodynews.com / JUNE 2020 AUTOBODY NEWS 3

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MI Governor Extends State of Emergency, Shutdown of Bars, Gyms, Theaters Through May 28

by Scott McClallen, The Center Square

Hours before some of her executive orders expired, Michigan Gov. Gretchen Whitmer on April 30 signed a flurry of orders extending her powers and stretching the shutdown of public places, including bars and gyms through May 28.

Whitmer initially declared a state of emergency March 10. The Legislature on April 7 extended the state of emergency through April 30.

Executive Order 2020-66 subsequently terminated Whitmer’s previously issued state of emergency and disaster declaration, followed by Executive Order 2020-67, which declared a state of emergency through April 28, citing the Emergency Powers of the Governor Act of 1945, and Executive Order 2020-68, which declared a state of emergency and a state of disaster through the same period under the Emergency Management Act of 1976.

Whitmer said extending the emergency order is “vital to the health and safety of every Michigander.”

“If we work together and do our part, we can help reduce the spread

of COVID-19 and save lives,” Whitmer said in a news release.

Gov. Gretchen Whitmer gives a press conference April 29. Credit: Press@mich.gov

Executive Order 2020-69 shutters certain places of public accommodations, such as bars and theaters, through May 28. Restaurants can still operate through walk-up or drivethrough service if it limits inside capacity to five patrons staying 6 feet apart. Meanwhile, more than 1.2 million Michiganders have filed for unemployment, more than 25% of the state’s workforce.

The Michigan restaurant industry

estimated a $1.2 billion loss in April sales. Justin Winslow, president and CEO of the Michigan Restaurant &

Lodging Association, said the industry “needs clarity and direction as it struggles to persist in trying times.”

“We are committed above all else to creating an environment conducive to the safe return of the general public to their favorite restaurant,” Winslow said in a statement. “For many restaurants, however, if that date isn’t known soon they may not be there at all.”

Critics argue the extension will continue to cripple the state’s economy. Michigan Chamber President and CEO Rich Studley told The Center Square his group opposed the extension. “Although the governor’s first stay-at-home order was timely and reasonable, the second order, which really was a statewide lockdown, has unnecessarily resulted in serious damage to Michigan’s economic health,” Studley said.

Studley said nearby states such as Indiana and Ohio had done a better job of protecting lives and livelihoods.

Both states adopted critical worker guidelines from the Cybersecurity and Infrastructure Security Agency’s (CISA), but Whitmer hasn’t, going against a request by the Legislature.

GM Declines Land Option at OH Ex-Plant

by Ron Selak Jr., Tribune Chronicle

General Motors has declined an option to lease back space at its former automaking plant in Lordstown, OH, but has an agreement with the facility’s new owner for some access to the property so GM can build its battery-cell plant next door.

Part of the deal with Lordstown Motors Corp. when it bought the sprawling facility in November were options for GM to lease back 400,000 square feet of land and 500,000 square feet of real property.

The automaker decided to let those options lapse and instead worked out a temporary access agreement with Lordstown Motors, as GM constructs its more than $2 billion next-gen plant that will manufacture cells for electric vehicle battery packs.

“GM let the options expire without exercising them because these were no longer desired,” GM spokesman Dan Flores said. “GM has instead entered into an access agreement with LMC, allowing

GM to temporarily use some of their overflow vehicle shipping lot for construction staging as we begin site work at the adjacent battery cell manufacturing plant site.”

The new plant is on 158 acres on Tod Avenue, immediately adjacent to the 6.2 million-square-foot automaking facility. Grading and clearing at the site began earlier this month.

Construction is expected to begin by July and wrap in January 2022.

The lease options were contained in paperwork filed in December regarding an open-end mortgage agreement that let Lordstown Motors borrow up to $40 million from GM. The deal was designed that way to let Lordstown Motors take possession of the plant and begin repurposing it to launch its electric pickup truck while still raising money to begin operating.

Lordstown Motors plans to launch the battery-powered Endurance in January, one month behind

what the automaker had planned.

The delay is because of the coronavirus pandemic.

The truck will be revealed publicly this summer, likely during a virtual event from the plant.

GM’s facility figures to play a huge role in the automaker’s all-electric future with cells made at the plant used in packs that will power 11 of 13 vehicles GM plans for in the next five years. Those cells also will be used in packs in two new electric vehicles GM and Honda are developing jointly for the Japanese automaker.

The plant, a joint venture with South Korea’s LG Chem, will employ upward of 1,100 people.

GM has a third option in the agreement with Lordstown Motors to buy back the facility and other transferred assets. That option expires at the end of May, and it’s unlikely GM will exercise it.

We thank the Tribune Chronicle for reprint permission.

That alone nearly shuttered Michigan’s construction industry and has prevented many manufacturers from working, Studley said.

“When you have a million people file for unemployment benefits in a two-month period, that’s a pretty good indication that the order was overreaching and unnecessarily severe,” Studley said.

“Other states have been able to slow and stop COVID-19 without doing this kind of serious harm to working families and job providers.”

The announcement followed hours after hundreds of protestors gathered at the Capitol to ask lawmakers not to extend Whitmer’s emergency orders.

They didn’t extend the orders.

The GOP argues Whitmer’s emergency powers expired overnight.

Whitmer contends she can act unilaterally. The courts may solve their dispute. The Legislature on April 30 authorized House Speaker Lee Chatfield, R-Levering, to sue Whitmer to challenge her powers.

We thank The Center Square for reprint permission.

Ford, 3M Shipping Air-Purifying Respirators The first Ford-built powered air-purifying respirators, developed in close collaboration with 3M, are on their way to help protect health care workers fighting COVID-19.

Since late March, Ford has been working with 3M to create urgently needed PAPRs, using design guidance from 3M and off-the-shelf parts, like vehicle ventilator fans and power tool batteries.

In a separate effort, 500,000 reusable medical gowns distributed by Ford will soon be on their way to the state of New Jersey.

3M is a leading provider of personal protective equipment, including powered air-purifying respirators. Demand for 3M PAPRs is exceeding supply due to the COVID-19 pandemic.

Through partnerships with companies like Ford and others, 3M plans to increase capacity of its own PAPRs by ten-fold within the next several months.

Source: Ford

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Continued from Cover

Still Swinging Liberty’s contractual duties was merely an incidental consequence of Three-C’s agreements with its customers to repair their vehicles.” Triple-C is a family owned business founded in 1956 by current owner Bob Juniper’s father.

What started out as a 1,200-square foot repair shop now occupies 12 acres in North Columbus and does $11 million in repairs annually, according to the company’s website.

Triple-C also has a shop in Chillicothe, OH.

Kesha D. Kinsey, an attorney for Liberty Mutual, said the company has long history of going to court to get its way. She said typically Triple-C submits two or three supplemental reports after providing an initial estimate. As those supplemental reports stack up costs, at some point the insurance carrier may decide the cost of repairs exceeds the replacement value of the vehicle. That’s what happened when Liberty Mutual policyholder Dan Lobdell brought his car in for re-

pair at Three-C, Kinsey said. Liberty Mutual paid $12,506.81 to get repairs started, but Three-C submitted a supplemental report that proved too pricey for the carrier’s taste. Liberty Mutual instead decided the vehicle was a

ing on those claims, but she wasn’t surprised the company went to court.

“They do this a lot to insurers,” she said. “This is the way they make their money. I think for them it’s better to roll the dice and see where the

“This is the way they make their money. I think for them it’s better to roll the dice and see where the case goes. I’ve never seen them back away from a fight.” — Kesha D. Kinsey total loss, issued a check to Lobdell for the replacement value and asked Three-C for a refund.

The body shop argued Liberty Mutual owed it that money and more for past “short pays”―meaning the difference between the amount it had invoiced for repairs to other vehicles and the amount the carrier paid for those repairs. Liberty Mutual filed suit in May 2018 to retrieve its money.

Three-C filed a counterclaim alleging the carrier owed it $55,555.71 for underpaying for repairs to 56 vehicles.

Kinsey said she never thought Three-C had much chance of collect-

case goes. I’ve never seen them back away from a fight.”

For the past three years, Columbus attorney Charley Hess has been fighting Three-C’s court battles. He said his client had not yet decided whether to appeal the Court of Appeals’ decision to the Ohio Supreme Court. He said he did try to take the two losses against Nationwide to the Supreme Court, but the justices refused to review the appellate court decisions. Hess said he and his clients haven’t given up fighting underpayments by insurers even if the latest case isn’t appealed.

He said Three-C has invested heavily in scanning equipment that automobile manufacturers insist be used or they won’t honor vehicle warranties. Insurers won’t pay repair bills that support the use of that expensive equipment. As long as carriers underpay, policyholders end up picking up the cost, he said.

The unjust enrichment argument didn’t fly in the case against Liberty Mutual, but Hess said there are still other circumstances where the argument may prove persuasive, and his clients intend to continue litigating until the courts provide some forum where body shops’ arguments that insurers are paying unfair rates can be heard. “They’ve been doing this for 20 to 30 years,” Hess said. “They really want to make some inroads, not only for themselves, but for the customers.”

We thank Claims Journal for reprint permission.

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St. Louis Body Shop Slow After Virus and Storms

by Sara Machi, KSDK News

When 55 to 60 mph winds whipped through South City, they ripped gutters from buildings and tree limbs from the trunks, with the debris often landing on the parked cars below.

These spring storms usually drive up visits to local auto body shops, but the coronavirus has put the brakes on most business and mechanics say they are no exception.

“Since everything happened with the coronavirus, things have slowed down quite a bit,” St. Louis Auto & Truck Repair co-owner Lisa Renaud said. “We usually put through about 45 to 50 vehicles a day, and right now our max is maybe 10 customers a day.”

When 5 On Your Side visited Renaud’s garage near Downtown West in January, they were busy fixing vehicles damaged by potholes.

With St. Louis’ stay-at-home order still in effect, their waiting room is closed. So they’re offering new services: picking up a cli-

ent’s car or chauffeuring customers home. Renaud said they also allow time for an extensive cleaning before returning a car to its owner.

“We tried to make it as safe as possible because people still do need repairs. I know a lot of people are holding off on things until businesses open back up completely,” Renaud said.

The coronavirus has affected the automotive business on many fronts. With many people driving less, working remotely and cancelling road trips, Allstate CEO Thomas Wilson told CNBC driving is down around 35% to 50%.

Renaud said, like many small businesses, St. Louis Auto & Truck Repair qualified for the Payroll Protection Program, which will give them a little momentum to make it through this slow period.

“We were able to obtain that, which takes a little bit of the stress out of it,” Renaud said. “I can breathe a little better knowing that will be able to make payroll.”

We thank KSDK News for reprint permission.

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helping them strategize and put totheir package, they were able to Purchase of Fix Auto USA gether go to market with a coherent approach to potential buyers. I believe that’s one Some time ago, Erick, Paul and of the reasons they got the deal done, I started talking about their invest- even though we went from being in ment in Fix Auto USA and the best collision repair envithe way in which Fix USA ronment to maybe one of the was gaining momentum. worst.

While Fix USA was deIt’s something we feel livering great value to its very proud of, but also at the franchisees, many of them end of the day, we are helpwere looking for additioning people who have investDavid Roberts, al capital or ultimately an ed a lifetime of effort buildexit strategy. Erick and managing director of ing a wonderful business and FOCUS Advisors, Inc. Paul saw an opportunity to now they get to realize some provide financing solutions to those of their rewards. franchisees through external capital sources.

With so much uncertainty goDuring this time, Fix USA coning on in the world and the tinued to be regarded as a real class collision repair industry due to the act in the industry. Since its incep- pandemic, how does a deal of this tion, they invested in excellent sys- magnitude get accomplished? tems, leadership and helping shops upgrade their operations. Insurance We are all in the midst of this companies really trusted them. completely unforeseen, unWhen Paul, Erick and Shelly be- precedented time. However, we have gan to evaluate outside capital options, demonstrated that a good transacthey engaged us to represent them. We tion can actually get done. In fact, wrote a business plan and identified our belief is that things aren’t totally possible capital sources. After ap- collapsing at least for a big segment proaching a number of potential in- of the economy and certainly for vestors, Roark [Capital] and Driven our industry. We are very pleased to Brands showed the most interest and have a successful transaction for our eventually decided they wanted to client. own the entire firm.

But no transaction is ever done What will the future hold for until the day it closes, and in this case, an independent shop owner? the day it closed was April 21, 2020.

Currently, there are thousands Please tell us about FOCUS of single shops and small MSOs Advisors and your involve- across the country. They operate in ment in the transaction. different communities in unique situations, and have built prominent FOCUS Advisors serves au- businesses in their respective areas. tomotive aftermarket owners Many of these business owners want who are looking for advice and rep- to continue operating because they resentation about their future pos- are very successful and love what sibilities. We advise our clients about they do. growth and sale options and then repreAt the same time, everybody recsent them in mergers and acquisitions ognizes the need to be better at what or capital formation transactions. Over they do and one of the ways to do this the last five years, as managing direc- is getting together with other successtor of FOCUS and a prior firm, we’ve ful business owners. completed more than 22 collision and It doesn’t necessarily mean you paint distribution transactions. have to sell out. You can be part of What we do is help our clients a group and still stay independent. figure out what they really want and For example, franchise systems work with them to achieve that goal enable independent operators the in a really organized and well-docu- opportunity to participate in an ormented, well-articulated fashion. ganization larger than themselves, In this case, having known Er- while still maintaining their indeick and Shelly and Paul for years and pendent ownership.

Continued from Cover

Q:

A:

Q:

Q:

In a changing landscape, how can independent shop owner compete?

A:

I have tremendous admiration for the people in this industry.

They are some of the smartest, most creative and successful entrepreneurs that I know. But the landscape is constantly changing and getting tougher and tougher for small independents.

The reality is that a two-shop operator who is competing against Caliber Collision, Gerber and Service King is going to have a tougher time unless they get more specialized, or closer to insurers, dealers or focus on particular brands.

The alternative is to join other folks and get bigger yourself. We have clients around the country who have literally gone from a two-shop $10 million operation to an eight-shop $40 million operation in the last four or five years. They are figuring out how to do it on their own through retained earnings, paint rebates and some borrowing. As a result, they are getting bigger and more sophisticated and are delivering better service. They are not the only ones finding unique ways to

grow and stay relevant.

Q: A:

Do you have any concluding thoughts?

As an industry, we will recover. But it will change how we do business in ways we cannot now foresee. So stay safe, keep your family safe, conserve cash, take care of your customers, your referral sources and your staff.

This is a condensed version of the full article, which can be found online at www.autobodynews.com.

For more information about FOCUS Advisors, visit https://focus advisors.com/ or email David Roberts at david.roberts@focusadvisors. com.

For more information about Driven Brands, visit https://www.driven brands.com/.

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A:

12 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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IL Gov. Pritzker Released Five-Phase Plan to Re-Open on May 5

by Greg Bishop, The Center Square

Illinois businesses won’t be able to fully reopen and conventions, festivals and large events will be on hold until there’s a vaccine or “highly effective treatment” for COVID-19, under a new five-phase plan Gov. J.B. Pritzker announced May 5.

Pritzker released the plan May 5. His office said it’s a public health approach to reopening the state.

“Restore Illinois is a public health plan to safely reintroduce the parts of our lives that have been put on hold in our fight against COVID-19,” Pritzker said. “This is also a data-driven plan that operates on a region-by-region basis, a recognition that reality on the ground looks different in different areas of our state.”

There are 11 emergency medical service regions in the plan with four health regions split among Northern Illinois, North-Central Illinois, Central Illinois and Southern Illinois.

Phase 1 of the plan is “Rapid Spread” and calls for a strict stay-at-home order

with social distancing guidelines.

“The rate of infection among those tested and the number of patients admitted to the hospital is high or rapidly increasing,” the plan states. “Every region has experienced this phase once already and could return to it if mitigation efforts are unsuccessful.”

stable or declining,” the plan states.

“Manufacturing, offices, retail, barbershops and salons can reopen to the public with capacity and other limits and safety precautions. All gatherings limited to 10 or fewer people are allowed. Face coverings and social distancing are the norm.”

Phase 2 is “Flattening.”

“The rate of infection among those tested and the number of patients admitted to the hospital beds and ICU beds increases at an ever slower rate, moving toward a flat and even a downward trajectory,” the plan states.

This phase has nonessential retail stores open for curbside pickup and delivery with face-covering requirements.

“To varying degrees, every region is experiencing flattening as of early May,” the plan states.

Phase 3 is “Recovery.”

“The rate of infection among those tested, the number of patients admitted to the hospital and the number of patients needing ICU beds is

with face coverings.

“The rate of infection among those tested and the number of patients admitted to the hospital continues to decline,” the plan says.

“All gatherings of up to 50 people are allowed, restaurants and bars reopen, travel resumes, child care and schools reopen under guidance from the IDPH. Face coverings and social distancing are the norm.”

Gov. J.B. Pritzker speaks during a news conference on May 5 in Chicago. Credit: Courtesy of BlueRoomStream

Phase 5 is “Illinois restored” but only comes around with a vaccine or highly effective treatment that’s widely available, “or the elimination of any new cases over a sustained period, the economy fully reopens with safety precautions continuing.”

“Conventions, festivals and large events are permitted, and all businesses, schools and places of recreation can open with new safety guidance and procedures in place reflecting the lessons learned during the COVID-19 pandemic,” the plan said.

Phase 4 is “Revitalization” and allows for larger gatherings, but still

We thank The Center Square for reprint permission.

autobodynews.com / JUNE 2020 AUTOBODY NEWS 13

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‘Phase 3’: MI Manufacturing Begins Methodical Restart

by Breana Noble & Jordyn Grzelewski, The Detroit News

May 11 was a dress rehearsal for automotive suppliers and other manufacturers across Michigan as employees began returning to work at places like Mahindra Automotive North America following a seven-week shutdown because of the coronavirus pandemic.

“We are going through every single function on every possible path before we let people come back,” said Matt Pearson, head of prototype services in North America for the India-based automaker, which recalled a small crew to test safety protocols.

Hundreds of thousands of manufacturing workers across Michigan are returning to work this week for the third phase of Gov. Gretchen Whitmer’s plan to re-engage the state economy as COVID-19 cases continue to fall. Detroit’s three automakers won’t begin making vehicles until next week, but their suppliers and other manufacturers now are reopening facilities―albeit slowly.

“There’s a lot of moving pieces before they produce parts,” said John Walsh, CEO of the Michigan Manufacturers Association. “There’s a lot of warm-up work with getting employees accustomed to what the new world might look like for a bit and then actually beginning production. It’s going to take time.”

Mahindra expects its 120-person manufacturing team will return for the real show next week. Even then, it will be a gradual ramp-up to producing up to 25 of its Roxor offroad vehicles per day. Safety plans will be re-calibrated as often as needed. And employees, who are returning to work even as the coronavirus poses a continued threat, will be given time to adjust to a new normal of wearing face masks, maintaining distance from fellow workers and daily health screenings.

Manufacturing represents 19% of the economy for the state that put America on wheels. Before May 11, less than 5% of business activity had been considered “essential.” Roughly 622,700 Michiganians worked in manufacturing in March, the U.S. Bureau of Labor Statistics estimates, and at least half were sidelined because of executive orders limiting

commercial activity, according to the state manufacturing association.

Some companies had expected they would not be able to resume until May 18 with the Detroit automakers. The allowance starting May 11 had some, including Troy-based Precision Global Systems, hustling to prepare, said Lisa Young, the company’s sales and marketing manger.

Technician Randy Ford works in the final measurement check area on a transfer case for a Ford vehicle May 11 at BorgWarner in Auburn Hills, MI. Credit: Daniel Mears, The Detroit News

The Tier 1 and 2 auto supplier that offers derusting, machining and other services called back 42 of about 100 employees May 11 to resume some production after spending much of May 8 ensuring new safety protocols were in place.

“It does take a little bit of time to get things started up, and it’s not just a push of a button,” Young said.

“We made it work. It was a quick response.” Precision began limited production May 11 and intends to return a second shift next week. Other manufacturers are recalling their workers in phases, as well.

“We don’t want to jump in right away with everybody back and then things go haywire,” said Trent DeSenglau, United Auto Workers Local 155 chairman for Detroit-based American Axle & Manufacturing Holdings Inc.’s Fraser plant making transmission components, shafts, gears and other metal parts for the auto industry. “They are doing a measured approach, which is what we asked them to do.”

American Axle recalled at the Macomb County plant one shift of three for the week starting at 6:45 a.m. May 11, DeSenglau said. A tent outside had workers drive through to get their temperatures checked and pick up masks and other protective equipment before entering the facility. The new measures inside the

plant, including hand sanitizing stations, helped ease some of the workers’ concerns. American Axle declined to comment. But during its earnings call May 8, the company said it expects to resume production in phases starting in mid-May and going into June.

Other companies, including Nexteer Automotive in Saginaw and Ontario-based Magna International Inc., also resumed manufacturing May 11. Others, such as seating manufacturer Southfield-based Lear Corp., are holding off until next week. Ramp up for auto suppliers even could extend into July, said Dan Kennedy, executive director of sales for Illinois-based Flex-NGate, which makes metals, plastics and other parts in Detroit, Livonia, Grand Rapids and elsewhere. The timing will align with its automaker customers. “As they ramp up,” Kennedy said, “we will ramp up.”

Engineers at BorgWarner Inc.’s propulsion technical center in Auburn Hills are anticipating long workdays ahead to catch up orders from global

clients and sort out supply bottlenecks.

“We’re having issues with [our] suppliers that are still closed, so that’s going to lead to some supply-chain chokepoints,” said Matt Belt, a senior validation engineer with BorgWarner who returned May 11 with about 50 employees to the technical center.

The components and parts supplier is gradually phasing its workforce and production as it navigates differing government directives across its U.S. footprint. Plants in Livonia and Cadillac began a staggered restart May 11. In the technical center, small crews were building parts prototypes and validating transfer cases from a plant in South Carolina that recently resumed after a tornado damaged the facility.

Liquidity is posing a challenge to suppliers as pre-shutdown payments dry up and they purchase materials they need to restart, said Steve Hilfinger, who represents automotive suppliers at law firm Foley & Lardner’s Detroit office. Some suppliers are not paid until 60 days after deSee ‘Phase 3’, Page 23

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14 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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Virus ‘Killing’ Some IL Car Repair Firms, Others Adjusting

by David Blanchette, The Telegraph

The coronavirus stay-at-home orders and layoffs mean people are driving fewer miles, avoiding wear and tear on their vehicles, crashing less often and requiring fewer roadside assists.

That’s good news for drivers, but bad news for area automotive service businesses.

Brad Pedersen owns Prairie Street Auto in Bethalto, IL, and his repair business is down more than 25 percent since the viral pandemic precautions started.

“This is normally a busy time of year as more people are getting out on the road,” Pedersen said.

“With the stay-at-home order people are putting less miles on their cars and that equates to less wear, anywhere from brakes to tires to oil changes.”

The repair and maintenance work itself has become more involved, Pedersen said, since every car he works on must be disinfected twice, both before the job begins and prior to the customer picking it up.

He’s also noticed customers right now only want the bare minimum amount of work done on their vehicles.

“People aren’t doing a whole lot of repairs; they’re trying to do the things they must in order to get by,” Pedersen said. “They are letting a lot of things slide because of money. I think it will take a while for people that have been laid off to get back on their feet.”

Work is typically scheduled a month in advance at the body shop portion of Andy’s Automotive in Alton, and that pre-pandemic workload is now starting to slow down.

“People are still wrecking cars,” said Andy’s Automotive owner Mark Anderson. “But the ones that are happening in the last couple of weeks, people are kind of putting them on the back burner.”

Anderson said there are still a number of people who have “essential” status and need to get to work, and whenever there are drivers on the road, there are bound to be accidents. But he said people who have had fender-benders in recent weeks are more carefully weighing the eco-

nomic factors before they decide to call him.

“If the car’s not drivable or if there’s no out of pocket insurance deductible, they usually just come on by,” Anderson said. “But if they may have to come up with a $500 or $1,000 deductible, it’s not really a good time to be putting that money out right now. If it’s somebody who is laid off, naturally they’re not going to do it.”

Anderson said his shop uses a commercial automotive business sanitizer to disinfect the entire shop three to four times each day, and his workers also clean every touchable surface of the customers’ vehicles before and after the repair work.

“We clean all of the door handles, the customer waiting areas, employee computers and keyboards,” Anderson said. “In the cars themselves we disinfect the areas that get a lot of touch, the steering wheels, shifters, radios, climate controls, keys. We wipe those down so when we get in it, we know it’s clean and when we’re done the customer knows it’s clean as well.”

Roberts Motors of Alton has a unique way of sanitizing the customer vehicles brought in for repair or maintenance work. The technicians employ a “fogger” that quickly and thoroughly disperses disinfectant throughout the vehicle.

“We learn new things as we go, and you do what you have to do,” said General Manager John Roberts. “I got the ‘fogger’ idea from another dealer.”

Roberts said his service business is down approximately 40% since the stay-at-home order was issued, and the work being done consists primarily of necessary repairs.

Roberts has had to furlough some technicians due to the decline in service business, he said.

Roberts Motors is primarily a new and used car dealership, and although the stay-at-home order considers the entire operation “essential,” Roberts has temporarily reduced the sales staff by half and the constantly sanitized storefront is open only when the service department is operational.

“For those who need new cars at this time, we have adjusted our process so we can do many more

things on line,” Roberts said.

The Rapid Lube operations in Alton, Edwardsville, Granite City and Jerseyville have instituted a new policy that allows customers to stay in their vehicles during oil changes.

When customers do come inside, Rapid Lube staff make sure the entire lobby area is sanitized before customers enter and after they leave.

Even with these precautions in place, Rapid Lube Inc. owner Gary Warren said his oil and lube business is down by half since the pandemic began.

“People are in panic mode right now and they’re not thinking about their cars,” Warren said. “I’ve noticed the last week it’s picked up a little, but we are nowhere near where we were.”

Rapid Lube employees wear gloves and face masks on the job even though “it’s hard to do when you’re working on a car,” Warren said.

Bowers Towing & Repair drivers are supplied with gloves, masks, hand sanitizer and disinfectant spray.

“They usually carry cleaning supplies anyway because it can be a

dirty business,” said Kathy Bowers, owner of the Godfrey-based towing business. But that business the past several weeks has been very slow, particularly the non-emergency work.

“With people being laid off, it’s kind of hard for them to have their cars towed or repaired,” Bowers said. “Everybody is just trying to save a dollar right now.”

Vehicle towing requests from area police agencies are also down considerably because “no one is on the street and there aren’t that many accidents now,” Bowers said.

“I just hope things can get back to normal soon,” Bowers said. “This is killing us and I know it’s not just us, it’s everybody.”

We thank The Telegraph for reprint permission.

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Continued from Cover

WI Gov. Evers Delivers Democratic Radio Address on Supreme Court of Wisconsin Ruling

NIADA Survey

Wisconsin Gov. Tony Evers on May 14 delivered a democratic radio address on the Supreme Court of Wisconsin ruling that struck down Wisconsin’s Safer at Home order, effective immediately.

“Hi, folks. Governor Tony

Evers here.” As you may have heard, the State Supreme Court struck down Wisconsin’s Safer at Home order, effective immediately.” Until now, Wisconsin was in a prety good place in our battle against COVID-19.”

We had reached almost all our gating criteria, we had opened up small businesses across the state, putting folks back to work, and that was because of the good work of Wisconsinites across our state who banded together, stayed home and stayed safe.” Now just because the Supreme Court says it’s OK to open, doesn’t mean the science does. Folks, deadly viruses don’t go away on their own and they don’t go away because the

only. Just 11% remain closed temporarily—down from 27%—and one percent reported they have closed permanently.

“I am encouraged that the COVID-19 pandemic hasn’t put more dealers out of business permanently, as was originally feared,” NIADA CEO Steve Jordan said. “Recovery and signs of life are showing, as 88% of dealers are open for business, with almost half open for ‘business as usual.’

“Unfortunately, open for business as usual doesn’t always mean sales have returned.”

Indeed, sales remain below preCOVID levels for most dealers—53% of the respondents said their sales were down 50% or more for the previous two weeks. Twelve percent of dealers said their sales were back to normal levels and 6% said sales were actually better than before the pandemic.

Rebuilding sales and customer traffic is by far the greatest challenge

Supreme Court says so.

“We cannot let this ruling undo all the work we have done and all the sacrifices Wisconsinites have made over these past few months.”

“We need everyone to continue doing their part to keep our families, our neighbors, our health care providers, as well as our communities safe by continuing to stay safer at home, practice social distancing and limit travel.”

“I am disappointed in the court’s decision, but our top priority has been and will remain doing what we can and what we have to do to protect the health and safety of the people of our state.

“I hope you will join us in continuing to stay safe and stay home.”

Source: Office of the Governor, State of Wisconsin.

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currently faced by independent dealers, cited by 38% of respondents.

That’s twice as many as the second choice, access to inventory at 19%, which was followed by funding and access to capital at 17%.

The funding issue has been lessened for some dealers by government relief programs such as loans from the Small Business Administration’s Paycheck Protection Program.

The survey found 64% of dealers have received some sort of federal or state government funding. Of those who have not, 28% have applied and 4% have been approved. Another 8% said they were approved but told there was no money available.

To view the complete results of the NIADA COVID-19 Dealer Impact Survey, visit covid19.niada.com.

Source: NIADA

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Two Cars, Tools Stolen from MO Auto Repair Shop Eureka Police in Missouri are investigating a burglary at Eureka Auto Collision Center, 1023 W. 5th St., where two cars and about $5,000 worth of tools were stolen.

The incident happened between 3:15 p.m. April 5 and 6:54 a.m. April 6, police reported.

A 2015 Chevrolet Impala and a 2005 Chrysler Crossfire were stolen. The Impala, which was valued at about $12,000, was recovered April 5 on Iowa Street in

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St. Louis, but the Crossfire, which was valued at $5,000, had not been recovered as of April 8, Capt. David Wilson said.

It looked like the culprits cut open a gate behind the auto repair business and kicked in a back door to the building. Two men allegedly could be seen on surveillance footage going through toolboxes and taking various tools, the report said.

Both men were wearing white shirts and dark pants, and one of them also was wearing a surgical-like mask that was covering his face, according to the report.

As of April 8, none of the stolen tools had been recovered, and the men had not been identified, Wilson said. Anyone with information about the burglary should call Eureka Police at 636-9386600.

We thank Leader Publications for reprint permission.

UPDATED DAILY

18 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

New Auto Insurance Limits May Be Costly for AZ Drivers

Industry Braces for Impact

New Arizona requirements for auto insurance coverage take effect July 1, as a result of Arizona Senate Bill 1087. This legislation increases the required auto insurance coverage limits to $25,000/$50,000/$15,000.

Arizona limits are presently set at $15,000/$30,000/$10,000.

A coverage increase was needed to help ensure that Arizona drivers have adequate protection, particularly considering the rising costs of medical care, automotive repairs and litigation.

However, this increased protection comes at a price, and may result in sticker shock when policies come up for renewal.

With those projections in mind, drivers who pay $100 per month now could pay $140 per month when their policies renew after July 1. This change applies to all insurance companies that sell insurance in Arizona. Auto insurance rates vary by carrier and state, so shopping with multiple insurers is key to saving money.

Source: RightSure Insurance Group

ings. “This includes a decrease in reservations as travel has come to a standstill.”

That standstill in reservations is highest at rental locations based at airports, said an industry expert.

“Our business is down somewhere between 50% and 75% on average at the airport locations,” said Greg Scott, with the American Car Rental Association.

Scott said neighborhood branch locations are seeing a decline in customers, but not at a rate as high as what the industry is seeing at airport branches.

“There are people who are in accidents and need an insurance replacement vehicle,” he said. “And there are always people who don’t have a car and need one.”

Scott estimated that a typical day for a branch would be having roughly 70% of available cars out for rent.

“If 90% of them or 80% of them are are not out on rental, all of a sudden you’ve got a huge parking prob-

lem,” Scott said in an interview with News-Press NOW. “That’s been reported by a variety of media sources.”

With an excess supply and a decrease in demand, car rental giants have announced massive layoffs and furloughs.

Late last month, Hertz said it plans to lay off some 10,000 employees in North America. Meanwhile, the world’s largest fleet of rental vehicles, Enterprise Holdings, also announced a series of furloughs and layoffs. Enterprise Holdings is a privately held company that owns the rental brands Enterprise, Alamo and National Car Rental.

Enterprise realized the layoffs were necessary because of the extension of some local shutdowns and recent extension of federal guidelines on social distancing, the company said. Some layoffs began March 23 while others began last week.

The layoffs will affect Missouri employees in several jobs and locations, including at company headquarters in Clayton, MO. It wasn’t clear if either Enterprise, Hertz or Avis-Budget was laying off any St. Joseph employees.

Regardless of the uncertainty the car rental market faces, the industry has been deemed as essential by the U.S. Department of Homeland Security and remains open for business.

“We remain open and are committed to helping serve these critical transportation infrastructure needs during this challenging time,” Martini said in a statement to News-Press NOW. “While we remain open for business, we have modified our offerings at some locations for the benefit and well-being of both employees and customers. Part of these temporary operational changes, include curbside rental transactions at our open branch locations, as well as delivery, to promote social distancing.”

There are an estimated 1.3 million rental cars currently in circulation in the U.S., according to Scott.

The Associated Press contributed to this report.

We thank News-Press NOW for reprint permission. www.autobodynews.com

Chevy Corvette Chassis Deemed Essential, Production Never Stopped at IN Plant

by Anthony Alaniz, Motor1.com

The coronavirus pandemic has shut down much of the world. Automakers have closed plants to help slow the spread of the disease, including General Motors. The Detroit automaker began idling plants in March as governments started ordering non-essential workers home. GM shut down several, including its Bowling Green, KY, plant, where it builds the 2020 Chevy Corvette. However, not every GM plant saw operations screech to a halt. A new report from The New York Times details how GM kept its Bedford, IN, plant operating over the last few months, continuing to produce Corvette chassis. The factory had been operating at some capacity since March, going to three shifts in April. However, the number of people working per shift is down considerably—about 20 people per shift today compared to the usual 250.

Those working are doing so voluntarily. A company spokesperson told the Times it wanted to continue operations to help reduce a shortage when production resumed. GM said it

wanted to begin resuming operations at a majority of its North American facilities on May 18. All three automakers have continued limited operations during the closures, working closely with the United Automobile Workers union. Some worked to retool plants with new safety measures for returning workers, while others worked to produce parts for vehicle repairs. The paper references a November Morgan Stanley report that said the Corvette would account for roughly 2%—$3.3 billion—of GM’s revenue this year. This year is also the first for the C8, the eighth-generation mid-engine model. The 2020 Corvette was supposed to begin production before the end of last year, but a UAW strike pushed that to February. As governments begin easing coronavirus restrictions, factories will hum back to life with workers returning to temperature checks, social distancing rules and plastic dividers. Production at GM’s Bowling Green plant should have no trouble with a glut of chassis to finish.

We thank Motor1.com for reprint permission.

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Kelly BMW Phone: 614.471.2277 Parts Direct: 614.337.3090 Parts Fax: 614.476.2488 www.kellybmw.com Hours: M-F 8am-6pm; Sat 9am-2pm 4050 Morse Rd., Columbus, OH 43230 ©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

20 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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inty e inntial men for

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Contin

Axalta Supports CA COVID-19 Response Axalta, a leading global supplier of liquid and powder coatings, is partnering with Marathon Industries to coat truck bodies for the State of California’s COVID-19 response team using its Tufcote™ industrial products.

Truck bodies are highly valuable in times of crisis due to their versatility and ability to haul both large and small amounts of critical supplies, as well as load from either side. Marathon Industries’ Reno, NV, facility and Axalta worked together to select Tufcote Low-VOC Primer and High Solids Black and White Topcoats for this job.

Axalta Tufcote liquid coatings are designed for maximum performance, corrosion protection, gloss and color retention. They deliver consistent, high-quality results with a durable finish.

Source: Axalta

Team Automotive in OH Keeping First Responders on the Road During Pandemic

by Bill Phillips, WTOV News

With Ohio and West Virginia re-opening many businesses, owners in the Ohio Valley are feeling hopeful for the first time in a long time.

keep us safe.”

Team is not only taking care of the heroes, but every car owner they do business with, because they know how critical good transportation is at this time.

“It’s a hard time right now, so we are going to do whatever we can do right now within our means to take care of our customers and our employees.” — Ryan Westling

Team Automotive in Ohio has been open during the pandemic, with much of their time spent working to keep our first responders on the road.

“First and foremost, right now that’s our priority,” said Ryan Westling, fixed operations manager. “We want to make sure our ambulances, our police officers, fire departments are on the road.

Nurses, if they are at the hospital, if they need it, we’ll pick it up at the hospital and drop it back off.

Right now, they are the heroes, so we want to keep them moving to

“The way that we are disinfecting the vehicles as they are coming through the door, we’re doing more pick-ups and deliveries so people who are elderly, people with underlying conditions can’t get to the shop, we’re picking their vehicles up at the house and dropping them back off,” Westling said.

Anywhere you go on Team’s property, you see tape to make sure everyone is social distancing. Keeping everything as clean as possible is another priority.

“Anything that is a touch point, we’re cleaning every two hours, some-

times every half an hour,” Westling said.

And if you are in the market for a car, Team and its manufacturers are ready to provide the best deal possible during these uncertain times.

“I know a lot of them have had us with 0% for 48, 0% for 72 months.

It’s delayed payments for 90 to 120 days,” Westling said.

Whether you are buying, maintaining or experiencing an emergency, Team is ready.

“We are here for the community, we’ve always been here for the community, and if somebody needs something, we’re going to get them taken care of, we’re going to get them out the door,” Westling said.

“It’s a hard time right now, so we are going to do whatever we can do right now within our means to take care of our customers and our employees.”

We thank WTOV News for reprint permission.

AUTOBODY

Good Sam Insurance Agency Underwriter to Give Refund and $3M Donation to COVID Relief Efforts Good Sam Insurance Agency underwriter National General Insurance announced a 15% credit on all applicable April premiums for auto, RV and motorcycle insurance policyholders, as well as a commitment from National General to donate $3M toward COVID-19 relief efforts.

The credit will automatically apply to auto, RV and motorcycle insurance customers with an active policy through April 30, subject to state regulatory approvals. This credit is in addition to other substantial billing relief efforts currently in place in response to COVID-related hardships and may vary in different states.

“We’re in this together, which is why we want to help our customers as much as possible and ease some of the financial hardship they may be experiencing,” said

Ben Harrison, vice president of business development for National General Insurance. “Through our relationship with The Good Sam Insurance Agency, helping our customers get outside has always been at the core of our business.

“In times like these, it’s difficult to not be able to experience the outdoors fully, but as soon as it’s safe to explore again, National General and Good Sam Insurance will be here.”

National General has also committed $3M toward various COVID-19 relief efforts. These efforts include, but are not limited to, donations to select charitable organizations that support communities in which our employees and policyholders live and work.

Source: Good Sam Insurance Agency

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22 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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‘Phase 3’ livering an order.

“I think as suppliers are being asked to ramp back up and purchase raw materials and supplies,” Hilfinger said, “this is going to become a very pressing issue in very short order.”

Flex-N-Gate began opening its industrial facilities in Michigan, turning on large injection molding machines and presses and recalling workers. Those efforts will continue at different facilities late into the week. Employees will get their temperatures checked and fill out a questionnaire about travel and if they are experiencing symptoms. If they are, they may be sent home or quarantined in a separate room until they can get a ride. Those able to enter the building will receive and must wear a face mask.

Management also will go “page by page” with the workers through the company’s restart “playbook,” Kennedy said, that discusses the new protocols including social distancing and wiping down work sta-

tions before and after their shifts.

“It’s to make sure they understand it, they agree with it and that it makes sense to you,” he said. “We need to not only ensure that, but that we believe [in] each other to do this in the right way.” After being away from the job for weeks, employees also will get a refresher on ensuring the production of quality parts under new safety measures. As that happens, the company will resume production based on orders from the automakers, which themselves initially will start with fewer shifts and at slower production rates.

“The last thing anyone wants is to start-stop, start-stop,” Kennedy said. “They are big, complex monsters. Once they get going, you don’t want to stop. So, everyone is taking a smart, thoughtful and logistical manner.” Pearson of Mahindra has developed ever-evolving protocols based on Occupational Health and Safety Administration guidelines, conversations with other manufacturers and feedback from employees. But the automaker says it is being even more cautious in its approach.

Employees must complete contact tracing forms and go through a temperature check each time they enter the building. Anyone with a temperature higher than 99.1 degrees Fahrenheit will be sent home, even though 100.1 is the standard.

Pearson has divided buildings into “zones” into which employees are confined. Necessary meetings or handoffs will happen in neutral areas that are regularly sanitized. Foot traffic will flow in one direction.

The automaker will provide employees with personal protective equipment. During the production hiatus, Mahindra has made face masks and face shields as well as aerosol boxes that protect health care workers when they are caring for intubated COVID-19 patients.

Plant leaders understand workers may feel stress about returning and learning to adhere to a new way of working: “So we’re starting super conservative,” Pearson said. “We can loosen it back up to the actual plan we have, once we know they’re comfortable.”

We thank The Detroit News for reprint permission.

Fire Torches Cleveland Auto Body Shop

by Alan Rodgers, WOIO News

A May 5 morning fire raged through an auto body shop on the East Side of Cleveland, OH.

Credit: ClevelandFire on Twitter

The Cleveland Fire Department battled the flames on E. 106 and Harvard Ave.

It is uncertain if there were any injures, but the cause of the fire is under investigation.

We thank WOIO News for reprint permission.

FREE

4x Monthly E-Newsletter.

www.autobodynews.com

st

autobodynews.com / JUNE 2020 AUTOBODY NEWS 23

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HONDA ILLINOIS

MICH

Schaumburg Honda Automobiles Schaumburg

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

Dept. H

MINN

B

Bob Rohrman Honda Lafayette

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

parts

MICHIGAN

Suburban Honda Farmington Hills

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

h

Rich

Victory Honda Plymouth

800-824-4646 734-453-3600

D

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

ACURA ILLINOIS

MICH

McGrath Acura of Morton Grove Morton Grove

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

p p

24 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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

MICHIGAN

a

ght;

MISSOURI

Zeigler Honda

Bommarito Honda

Apostolakis Honda

Kalamazoo

Hazelwood

Cortland

888-342-1678 269-585-5812

800-731-8270 314-731-8270

800-900-4600 330-638-3060

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

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

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

Ed Napleton Honda

Jay Honda

MINNESOTA

Brookdale Honda a

m

com

Brooklyn Center

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

St. Peters

Bedford

800-875-4190 636-928-4400

800-509-9057 440-786-3363

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

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

Columbia Honda

WISCONSIN

Buerkle Honda

573-818-3650

Columbia

Russ Darrow Honda

St. Paul

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

888-318-1671 414-586-5401

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

Honda of Tiffany Springs

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

800-592-9514 651-484-0975

Richfield-Bloomington Honda Richfield

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

com

6

OHIO

MICHIGAN

Kansas City

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

Roper Honda Joplin

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

MINNESOTA

Acura of Troy Troy

Milwaukee

Buerkle Acura Minneapolis

MINNESOTA

Luther Bloomington Acura Bloomington

800-935-0923 248-643-0900

800-717-3109 763-488-1122

800-451-5078 952-887-0600

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

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

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

autobodynews.com / JUNE 2020 AUTOBODY NEWS 25

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with Erica Schroeder

Industry Insight with John Yoswick

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

Contact him by email at jyoswick@SpiritOne.com.

Finding Some Hopeful Bits of Good News Amid the Pandemic Fallout

Shop Showcase

It was a bleak spring for many shops, and charging for the added vehicle but there have been some glimmers cleaning process. of hope for a better summer ahead.

“Most insurance companies have with Ed Attanasio Here are some potential bits of good sent out a very nice ‘stay healthy’ bulnews for collision repairers. letin authorizing a charge for disin States are opening back up. fecting customers’ vehicles on arrival Eighteen states began reopening their and before return to the customer,” a economies and public life in early shop manager in an Idaho suburb said.

May, and about another half dozen do- Nationwide Insurance sent a ing so in mid-May leaves than memo to its direct repair shops at the with Edfewer Attanasio half of states still shut down or severe- end of March, saying it would pay for ly restricted. Life and business won’t one labor hour and $25 in materials completely be returning to “normal” for “sanitizing the vehicle when it aranywhere for a bit, but with business- rives and prior to delivery to the cuses reopening and more people getting tomer.” No additional documentation out and about, the need for collision would be necessary unless charges repair work should beginEd to Attanasio rebound. exceed this amount, Nationwide told with

Traffic levels are growing since its direct repair shops.

CARSTAR’s corporate staff told bottoming out in early April. Passen- ger vehicle traffic nationwide ticked its franchise shops in mid-April that up slightly April 18-24, the third State Farm had agreed to pay its diweek-over-week rise in a row. Though rect repair shops a similar amount for it remained just 59% of Ed whatAttanasio it was in added vehicle cleaning. with February, it was more than an 11% USAA on April 10 also said it improvement from a month earlier, would pay a “sanitize vehicle” estiwhen it bottomed out at just 53% of mate line item, but the amount it said “normal,” according to the traffic ana- it would pay—one-half of a labor hour lyst firm INRIX. and $15 in materials—was about half

Traffic was up in all 50 states; of what State Farm and Nationwide with Rhode Island saw theStacey smallest Phillips in- had agreed to pay shops. crease (less than 1%), but seven states Shops’ fears about business sur(Wyoming, South Dakota, Montana, vival seem to be easing. One indusNebraska, Iowa, Minnesota and Col- try survey in early April found that orado) all saw week-over-week in- almost 1 in 4 (23%) said they were very (or extremely) concerned about creases of 10% or more April 18-24. also was still being in business even just 30

Personal vehicle withtraffic Stacey Phillips up that week in all 98 of the metro- days in the future, but by the second politan areas INRIX is tracking. The half of April that level of concern metro areas with the largest week- was expressed by just 14% of shops. over-week improvements April 18- The percentage of shops that 24 were Omaha, NE (up 12%), Den- were not very (or not at all) concerned ver, CO, and Des Moines, IA (each about their businesses surviving the with Stacey Phillips up 11%), Colorado Springs, CO (up next 30 days increased from 52% in 10%), and Minneapolis, MN (up 9%.) early April to 63% by the end of the Many insurers are paying for month.

COVID-19 cleaning. Added efforts “We are strong financially due to clean vehicles as they come in for to 20 years of conservative practices repairs, and before they are returned and paying off debt,” the owner of a to customers, towith reduce the riskPhillips of shop in Lubbock, TX, said, for exStacey COVID-19 transmission has become ample. a routine “repair operation” for most Government financial assistance shops, and it’s a procedure more and may well have played a role in easing more shops are now successfully bill- some shops’ short-term concerns. Suring for as a line item. A survey of veys indicate about 70% of shops that more than 650 shops found almost 3 said they had applied for the Small out of 4 (73%) shops are performing Business Administration’s pandemic

Social Media for Shops

SEMA Show Goes On

assistance have already received the funds.

“The Paycheck Protection Program loan will make it possible to survive,” the office manager of a shop in Tulsa, OK, said.

Many shops still voice concerns about their ability to stay in business when asked about longer time frames.

But a majority in late April said they had little or no concern about being in business in 90 days or even over the next 12 months.

The growth in the number of ADAS-equipped vehicles has slowed.

The pandemic’s expected effect on sales of new vehicles could have one minor silver lining for collision repairers: a slow-down in the growth within the vehicle population of vehicles with crash-reducing advanced driver assistance systems.

At the start of the year, the National Automobile Dealers Association (NADA) was projecting about 16.8 million new vehicles would be sold this year, down somewhat from 17.1 million last year, the fifth year in a row when sales topped 17 million. NADA this spring slashed its projection for how many vehicles dealers will move this year, to between 13 million and 13.5 million.

That would make it the slowest year for new car sales since 2011.

New vehicle sales benefit collision repairers in that newer cars are generally insured and repaired after accidents, and are less likely to be total losses. On the other hand, robust new car sales also accelerate the percentage of ADAS-equipped vehicles in the U.S. fleet, something that appears to be slowly eroding accident frequency.

The Independent Statistical Service (ISS) shows collision claim frequency was down 1.5% in 2018 and then down another 1.8% last year.

CCC Information Services points to the growth of ADAS-equipped vehicles as a likely cause of the decline.

Earlier this year, CCC stepped up its forecast for the rate of decline in accidents likely attributable to ADAS. CCC said that change was in part because of automakers’ ramped-up

Media and Publicity for Shops Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

Shop Strategies with Victoria Antonelli

adoption of ADAS. Twenty major automakers, for example, had committed in 2016 to equip all new vehicles with frontal crash warning and automatic emergency braking by 2022, but many have done so well ahead of that deadline.

“As a result, our projection this year shows a slightly faster increase in the reduction of vehicles in accidents annually,” a CCC report from earlier this year states.

Whereas CCC had previously projected about a 5% drop in accidents by 2022, its subsequent forecast was for a decline more than 10%. The 10% decline CCC had projected for 2024 was upped to 15%.

But now that decline in claims could become less steep if the significant drop in new car sales during the expected recession ahead slows the pace of ADAS growth in the U.S. vehicle population.

26 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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28 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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Hey Toby! with Toby Chess

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator.

Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

Kool Tools from SEMA 2019 your compressed shop air into an endless supply of both regulated & high pressure nitrogen. PLUS you can also fill your customer’s tires with beneficial nitrogen and/or safeguard the internals of your pneumatic tools by powering them with nitrogen from the EZ Nitro Generator! The next item we found was stand-alone measuring system, from Accuvison 3D.

It is that time of the year again for was from Reliable Automotive EquipKool Tools of SEMA (6th edition). ment.

Kye Yeung, Amber Alley and I walked the floor of SEMA (2019) to find more Kool Tools. As in the past, we found some interesting and unique tools that can save your and your shop with time and money.

The David first itemMcClune we found was from Time Shaver.

California Autobody Association Fig. 3 - www.raeservice.com

The MEC600 pneumatic milling cutter tool has been designed to open welding seams for easy removal of the outer panels. The adjustable guide of the cutter allows the MEC600 to be easily adjusted to different anguFig. 1 - www.TimeShaverTools.com with John Yoswick lar positions of the metal sheets and

They have a fantastic set of sand- no damages by preventing the cutter ing blocks. You cut up 4 sheets of from slipping off the edge. You can sand paper from 9”x 11” and attach all vary the depth of cut so that it does 4 sheets. As the top sheet becomes not damage parts under the part that worn, all you have to do is tear it is being cut. There are no spark and off and a fresh sheet is available. can move around tight spaces such as All metal parts are constructed from the tail lamp pocket. I would highly stainless steel, which will not rust. recommend that you go the RAE web They are contoured to fit your hand site and watch the demo. The forth and they come in 4 colors to fit dif- item we found (Kye purchased this Steffen ferent grit sandwith paper.Richard Finally, the tool) was from Glasbot Quarter Masspring locking device cuts end waste ter. by nearly 40%. The next product is from Evercoat.

Year in Quotes

Fig. 5 - www.dentfix.com

gen plastic welders sit a corner collecting dust. One of the biggest reasons is that there is no Nitrogen gas available.

Well, the problem of getting a full tank of gas has been solved by Dentfix. Upgrade most brands of Plastic Welder with the DF-EZG1 EZ Nitro Generator and “Ditch the Bottle”, Never Run out of Nitrogen AGAIN! Dent Fix’s revolutionary Dual Chamber Separating System transforms

Fig. 6 - www.accuvision-3d.com

The system easily measures upper and lower body as well as openings

Collision Repair Association of CA. • Large Inventory • Wide Delivery Area • Free Local Delivery

• Experienced Staff Ready To Serve You • Competitive Prices

Transition Planning with John Yoswick Fig. 2 - www.evercoat.com

Fig. 4 - 530-748-8880

Optex Super Build 4:1 Primer Glassbot® QuarterMaster Anchor highlights dents, low spots, scratches, one end of cutting element to body of and other surface imperfections while QuarterMaster, insert the other end of at the same time eliminating the need the cutting element into the throughfor messy carbon black powdered bore in shaft. Attach Tip Extension to guide coats. This 4:1 primer sprays shaft and rotate the shaft to remove the on pink and turnswith gray asKaryn it is sanded, window. You can even save the plastic Hendricks revealing high spots while low spots locating pins that always break when and scratches remain pink. It does take using other removal tools. Next up is a a little longer to dry than conventional Nitrogen generator from Dent Fix. primer (It was tested by Kye’s per- As I go into a number of shops on sonnel). The next product we found a daily basis, I notice that their Nitro-

Shop Showcase

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Shop Showcase

30 JUNE 2020 AUTOBODY NEWS / autobodynews.com

with David M. Brown Midwest_Issue_0620.indd 30

5/18/2020 5:28:25 PM

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such as door, window, trunk, etc. No additional accessories or adaptors are required to assemble for Upper-body measurements. Simply point and measure with the hand held pointer in 3D. No inconvenient rulers/gauges or tape measures. The system consists of only 2 units: Pointer and Measuring beam (stereo camera). There are no complicated mechanical assemblies, no gauges, no adaptors, no sensors, no magnets etc. You don’t need to spend precious time for installation and calibration of the system. Cameras track the position of the pointer and immediately indicate exact coordinates of the measured point and its deviation from the database. Camera and stand can be moved easily as needed to measure for an estimate or repair.

Just tilt on its back wheels and move the system to where you need it. The database includes schematic and pictorial information about control points for upper and lower body of any vehicle found in the Mitchell database. Once you measure, results can be displayed in red (out of spec) or green (within spec) points with direction and magnitude of pull for correction. A table of XYZ axis on the

side of screen shows the variances in mm against the database. The results can be saved in PDF format, emailed or printed. Moving on, the next item was an adjustable wrench from Irega.

Fig. 7 - www.angloamericantools.com

This wrench is made in Europe and works like no American made adjustable wrench. A Reversible Jaw with Xtra Capacity allows working with bigger diameter nuts and pipes with the same adjustable wrench.

Fig. 8

Kye turned me on to this product while we were walking the show.

The company had a booth way off the

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Right!!! The owner sanded a black hood with 600 grit sand paper (owner recommends 1500 grit paper) and was able to remove the sand scratches with the wool pad. He followed up with the same product and a foam pad. When it was done, I was amazed that there were no swirl marks and the shine was

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32 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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fanta shop mys end time our an al

repa teria repa usin adva very pans and pairs tool of th teria own adju and tion To g men ing c SEM

putty cond

fantastic. I followed up with him at a shop in Southern California and tried it myself and it works as advertised. The end result is 40 percent reduction in time and materials. Going forward on our quest for new products, we found an aluminum hot box from Beteg.

It has always been a challenge to repair aluminum panels due to its material characteristics using any type of repair method. The Alu T-Hotbox is using the material characteristics to its advantage and makes the reparability very simple. The extreme thermal expansion characteristics of the material and activating it locally makes the repairs fast and easy. In the first stage the tool measures the resonance frequency of the tool in resonance with the material. Every aluminum panel has its own and different frequency. Than it adjusts itself to the optimal frequency and activates the material. This activation allows the material to realign itself.

To get the most out this piece of equipment, I highly recommend their training course. My next product found at SEMA is Hot Box from Solderweld.

As a non-toxic, heat absorbing putty, Hot Block will block direct and conductive heat transfers of all types

of surfaces and metals. Stops all transfer of heat down from 3000 degrees and one half inch from heat source. It

is perfect for stopping warping when welding on flat panels and body work.

Best of all, it is 100 percent reusable.

I used this on a sail section of a quarter panel and there was not warpage when I was finished welding. Moving on to the next Kool Tools was from Vampire Tool Company.

all have. What do you do? Vampire tool has the answer. There first tool is a Philips screw extractor kit. The number one bit will extract most damaged screws, but if it does not work, then the number two bit will most likely work.

Fig. 13

Fig. 12 - www.vampiretools.com

Fig. 11 - www.Solderweld.us

Have you ever had a Philips screw strip out when trying to remove it? We

The extraction/linemen’s pliers have a unique set of grooves on the jaws that allow you to grab virtually any type of screw head (won’t work on counter sunk screws) for easy removal.

I bought of them and they really work.

Going forward, Kye found an add on to the DJS Fabrication’s car dolly.

DJS Fabrication added a “link adapter” to car dolly system. The link adapter adds stability to their system, which in turn allows for easier movement of the disabled vehicle. The next two items were found by Amber.

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access to the far corners of your windshield or back window. Amber’s second pick was from SATA.

Fig. 14 - www.djsfabrication.com

The Stoner Invisible Glass Reach & Clean Tool makes it faster and easier to clean any glass surface. Imagine having an extra 14 inches of reach – that’s exactly what the Reach & Clean Tool gives you! The long handle and pivoting cleaning head gives you easy

Fig. 15 - www.amazon.com

Fig. 16 - www.sata.com

SATA has introduced the Ladies Pro-Series Women’s paint suit, the first paint suit tailor-made for women in the paint industry. This new paint suit was first showcased in the SATA booth at the 2019 SEMA Show. Next on my list is the crease killer from Keco Tabs.

We featured the Keco Tab hot glue dent pulling system in Kool Tools of SEMA-2018 and they added a new

Women of the Year Award Nominations Sought

Tractable Donates to CIF COVID-19 Fund

Women in Auto Care, a community of the Auto Care Association, announced it is accepting nominations for the 2020 Women of the Year Awards.

The Women of the Year Awards include “Auto Care Woman of the Year”, “Female Shop Owner of the Year” and “Auto Care Woman of Excellence,” and highlight women who have made a significant impact in the auto care industry.

Award recipients will be honored at the Women in Auto Care press conference and reception during the 2020 Automotive Aftermarket Products Expo (AAPEX), taking place Nov. 3-5 in Las Vegas, NV. The deadline to submit nominations is June 26. For more information, including full entry requirements, visit autocare.org/women-in-autocare and click on the “Awards” tab.

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Tractable answered the Collision Industry Foundation’s call for help for its COVID-19 relief fund in a very big way―by donating $25,000.

Over the past month, more than 500 requests have been submitted by collision repair professionals asking CIF for financial assistance, through the CIF COVID-19 fund established in late March.

The initial fund, including early contributions by half a dozen generous donors, had been nearly expired in mid-April, when CIF sent out a request for additional support from the industry.

As funds became exhausted, CIF had to close its website to new applications. CIF was able to immediately re-open the website to accept new assistance requests, using Tractable’s donation to continue to provide assistance for new submissions.

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pulling device for creases. Wide PassThrough Adapters - create twice the

Schulenburg (SCRS Board member and Executive Director respectfully) added more items and placed the 1000 item list on the SCRS web site and it

Fig. 17 - www.kecotabs.com

Fig. 18 - www.SCRS.com

lifting power spread evenly across tabs. Adjustable Precision Crease Pull Plates - hold metal down while focusing lifting and reducing time spent on corrective blending and knockdown sessions. Dead Center 7mm Centipede Crease Tabs - targets smaller creases without sticking and over pulling the crown. I actually used this on an aluminum hood and repaired the crease with very little effort. Great add on tool from Keco. My last Kool Tools of SEMA 2019 is from the Society of Collision Repair Specialist (SCRS).

Twenty years ago my friend, the late March Taylor, and I put together a 600 item list of non-included operations for the collision repair process.

We shared with our friends and two gentlemen, Barry Dorn and Aaron

was free for anyone in the collision industry. SCRS and NuGen It collaborated last year to take the non-included list and have it open up on an estimate to show all these items on a pop up. It has the ability to be added to the estimate as separate line items. The program immediately identifies overlooked repair operations and dollar amounts. Finally, the tool received the SEMA New Product Award and 2020 SEMA Global Media Award. Pretty KOOL!

Well that’s it for the Kool Tools SEMA 2019. Visit these companies’ web sites for videos on their products. You will find them informative and a better understanding how they work. The three of us are looking forward to walking the SEMA floor for more Kool Tools in 2020.

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34 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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with Chasidy Rae Sisk

National News with Chasidy Rae Sisk

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

Riding the Emotional Roller Coaster of COVID-19 as a Shop Owner Business ownership always has its shot off the chart, and my 10-year- on to your passion. We’re going to ups and downs, but the current eco- old hands dented the handlebars be- get back to all the things we enjoy; nomic climate has added loops and fore I finally relaxed towards the end we just have to be patient.”

Taylor identified human behavtwists leaving many folks feeling of the ride. with Victoria Antonelli ior as one thing that always “It was quite the journey, nauseated. remains the same. He disDan Taylor, of Transformers In- and this situation has been cussed passive social herd stitute, addressed “Riding the Emo- very similar to that.” mentality, meaning people “Society has been drational Roller Coaster as an Owner,” tend to move in a herd, even during a recent installment of a col- matically impacted, but we when they do not necessarlaborative series of technical and are going to come out of ily endorse the behavior or management classes focused on nec- this,” he continued. “How Dan Taylor of believe it’s the right direcessary topics for navigating business can you ride this roller coastwith Gary Ledoux operations during the COVID-19 er both rationally and emo- Transformers Institute tion. Behavior is emotionaladdressed “Riding tionally? Our brains work the Emotional Roller ly driven, Taylor explained. pandemic.

“Humans do things over The series is hosted by the Car- emotionally and rationally at Coaster as an Owner” and over again because we’re quest Technical Institute and World- the same time, and it doesn’t during a recent behoove us to stay in one area webinar, sponsored wired a certain way.” pac Training Institute (CTI+WTI.) Maslow’s Hierarchy is a “It has been an unbelievable six and not work with them both by CTI+WTI. Credit: All captured via psychological theory, in pyrweeks—we’ve never seen anything interlocked, because that’s screenshot amid form, identifying the like this,” Taylorwith began,Gary recalling his where we find the most harLedoux five basic needs of humans, which first roller coaster ride when he was mony and peace.

“Remember that all roller coast- build upon the previous need.

10 years old. “As we started the asAfter physiological and safecent, I was pretty relaxed, but as we er rides end, allowing you to return proceeded down, my anxiety level home again. In the meantime, hang ty needs are met, the middle of the

Techs of Tomorrow

In Reverse

OE Shop Certification

OE Shop Certification

pyramid indicates the psychological need for belonging and love.

“As shop owners, we have a huge impact on employees in all three bottom categories. People need people,” Taylor stressed. “We are social and need to be connected with each other.

We don’t like change, we like things to stay normal, and we want to remain in our comfort zones. We can’t operate effectively over long periods of time in fear because the fatigue factor will force change.”

During the Great Recession, Taylor said, employers with five or fewer employees experienced a 30% failure rate, while companies with 10 or fewer employees had a 20% failure rate; for organizations that were less than five years old, that rate doubled.

America is heading into a recession now, due to COVID-19’s impact on the economy, and noting 54% of small businesses have either

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36 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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closed or will close within the next two weeks, Taylor predicted 24% of small businesses will close permanently if there are no changes in the next seven weeks.

“We learn things when we look in the rearview mirror,” Taylor said.

“Every recession or depression is followed by an economic improvement. After each macroeconomic trough, there will be a peak—it will rise again. This is a normal, anticipated cycle. We all have to exhale at some point.”

There have been 22 million new unemployment claims since this crisis began, Taylor said.

“The labor pool change will be advantageous to employers,” he said.

“We’ve been experiencing a tech shortage so many shops hire who is available, but with more candidates available, attitudes will improve and shops will be able to be more selective about who is the right fit for their business.”

Macroeconomics is concerned with large scale factors, while microeconomics focuses on the impact of individual decisions and factors.

Macroeconomic impacts will be

seen in a decrease of new car sales, since consumer confidence will be shaken, Taylor said.

“Dealers will employ creative tactics to survive, including aggressive service offers,” he said. “There will be work force reductions and both temporary and permanent closures. There will be failures in the marketplace; some of our peers and competitors will fail in the next weeks and months, unfortunately.”

On the microeconomic scale, according to a recent survey by the Washington Examiner, 49% of employees live paycheck to paycheck, and 31% of Americans missed their April rent payment. The survey indicated it will take this segment of the economy considerably longer to recover, compared to other segments.

Throughout all these catastrophic changes, it’s important to search for the positive.

“There will be a void in the market for our services. Car sales, public transportation and Uber are all on the decline, which means the use of personal vehicles will rise, and that’s where we shine,” Taylor noted. “There are great opportuni-

ties for you to pick up clientele and expand your business. Failures will allow us to adjust labor rates, compensation levels, margin expectations and profit levels. You deserve to make healthy returns on your investment; I want you to make money.”

Taylor emphasized the importance of being proactive and focusing on things that can be controlled.

“Pour energy and focus into the future. Determine what steps you can take now to position yourself for future success,” he said. “Self-talk is the bulk of conversations you have, and you need to be positive. Spend time with positive people, and limit your exposure to the news.

“Find something to look forward to—pick a date for when you plan to move forward, knowing that it will need to be flexible based on what happens with this pandemic, and focus on what you can do now to get ready for when the economy starts to reopen.”

Taylor discussed the importance of emotional intelligence (EQ), which has been identified as the single factor distinguishing star performers in every field. He examined the various

soft skills that fall in this category, and explained how the five core emotions (happy, sad, angry, afraid, guilty) impact people on a regular basis, but particularly in the current environment.

Taylor shared 11 tips for managing anxiety: create/maintain a schedule, limit time-consuming media and choose what media is consumed.

“It’s important to get different perspectives so you obtain as much information as possible and keep emotions in check. There’s a lot of false information out there, so look for the truth,” he pointed out.

Exercise and labeling emotions can also help people manage anxiety. Balance emotions with logic, maintain social support and focus on the things that can be controlled.

Externalize anxiety, and schedule time to worry so it’s not overly consuming.

If a thought becomes overwhelming, Taylor recommended trying to “argue the opposite. Ask yourself questions to try to rearrange your thoughts when you’re hyper-focused on something that’s enhancing your fears and anxiety.”

See Emotional Roller Coaster, Page 45

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OE Certifications Update 2020—Part 2 of 2

by Gary Ledoux

In last month’s edition of Autobody News, we began looking at OE shop certification programs, with three shops participating in several different programs for some time, and two consultants involved with many certified shops, fully familiar with the concept and with a broad view of the industry.

We continue that conversation here.

Do you think the OEMs need to do a better job helping certified shops promote themselves as such, and drive more customers of that brand to the certified shops?

Chad Eldridge of Majestic Auto Body in Idaho said the OEs should do a better job of promoting their certified shops, especially when the shop first becomes certified, to help get them started.

Terry Mostul of Artistic Auto Body in Oregon noted, “All the programs have a shop locator, which is fine—but there’s more that they could do.”

“There are two things OEs should do,” said Mark Olson of Vehicle Collision Experts. “The first is receiving the first notice of loss. This way, they could give the customer a choice of OE certified shops, so the job gets done right and the brand is protected.

“The second thing is to restrict certain repair parts to only certified shops. This will add validity to those shops and again, ensure a proper repair.”

“From a shop’s perspective, especially in a DRP world, they pay to be on a certification program, or invest and qualify, the expectation is to get work driven to the shop’s door,” said Ron Kuehn of Collision Business Solutions. “I truly believe the OEs will eventually be able to help get the vehicles to the network.

“However, the network needs to be properly trained, equipped, and have a culture to actually repair vehicles to the required OE standards.

The OEs have to be able to monitor the network to make sure that the certified shops are actually doing what they’ve been entrusted to do,” Kuehn continued. “In my opinion, promoting the OE certified network will happen. The primary focus for both

the OEs and the shops [should be] to get the vehicles repaired safely and properly for the vehicle owners and their families.”

If you could get all the OE certification program managers in a room at the same time, what would you tell them, or what would you ask for?

Eldridge favors online training for body shop technicians.

“In-person training is fine for managers or shop owners,” he said.

“But to send a tech to school is very expensive when you figure not only travel cost but productivity loss.

Online training is the way to go for techs.”

“We need better communication between the shops and the OE,” Mostul said. “Honda does a good job with this because they have their own field people.”

“I would ask where will they go next?” said Josh Fuller of Fuller Auto Body in Massachusetts. “How can we focus our efforts?”

Both Olson and Kuehn agreed OE dealers need to be better informed on the technology of ADAS systems, and the concept and focus of OE certification programs and how they affect the OE brand.

“I would ask them to educate their dealers, including service managers and technicians, on ADAS repair and what it takes to do it right,” Olson said. “We constantly hear of body shops subletting ADAS work to a dealership who either has no idea what they are talking about, or tells the body shop the recalibration procedures, or other post-repair safety procedures are not necessary.”

“If I could tell them one thing, it would be to aggregate their information, including OE site usage, scanning info, parts usage, training participation, etc.,” Kuehn said. “I would ask for an expanded and stronger communication to the industry in regard to a focus on safe and proper repairs. The industry culture today recognizes the importance of structural repairs.

It has been developed over decades.

Today, electronics on vehicles is the ’structural’ of the future.”

What do you think is the future of OE certification programs?

“The programs will continue to evolve,” Mostul said. “Advancing technology will dictate that shops

work on a limited number of vehicle makes.”

“OE certification is going to grow, and specialization of certain makes will become necessary,” Kuehn agreed. “The days of a shop capably repairing all makes and models are over.”

“In the future, the OE will control the market, but shops will choose between being either an OE certified shop or a DRP shop,” Eldridge said.

Fuller felt OE programs will continue to evolve, but there will continue to be a place for both DRP and OE certified shops.

“Both OE certification programs and DRP programs will still be around, but the shrewd shops will choose them strategically,” Olson said. “The smart choice would be a mix of DRP arrangements and OE certifications.”

“There is no doubt that OE certifications are necessary,” Kuehn said.

“The connected vehicles of today and in the future have capabilities of first notice of loss/damage, which will help the vehicles end up in capable hands [OE certified shops] for repairs.”

Ron Kuehn summed things up.

“A percentage of shops go above and beyond to learn the technology of their vehicles and become the best independent representative of their brand,” Kuehn said. “As for the others, I believe most shops are not intentionally repairing vehicles improperly. However, many do not know what they don’t know and improper repairs still result.”

While OE certifications have come a long way, it will take just as much if not more political and cultural effort on the part of the OEs to bring certifications to the next level.

Likewise, shops will need to adopt a culture of proper repair and aggressive promotion to get to their next level.

As technology advances, so too must the OEs and shops.

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Body Shop Owner Triples Advertising Budget During Pandemic Bob Juniper, owner of Three-C Body DRPs, Juniper focuses on consumer Shop, Inc. in Columbus, OH, (see co- advertising, primarily via radio ads and ver story) has always been a strong billboards. withand Stacey Phillips In a crowded market with one believer in marketing advertising.

While many shops all over the body shop per every 7,000 peopcountry are abandoning much of its le, Juniper takes the high road and marketing during these uncertain won’t ever take the easy way to protimes, Juniper is tripling his bud- fit, he said.

“There are some shops get from 5% to a full 15%.

Stacey Phillips here who advertise the fact That’s right—hewith is spending that they will pay people›s an unprecedented amount of deductibles, which is bad for money on advertising even all of us. Every dollar we put with an uncertain immediate into our marketing adds vafuture for his shop and his lue to our business at least crew. equal to that, so it’s one of History often repeats itwith StaceyBob Phillips Juniper, the self and Juniper knows this owner of Three-C the smart investments we can all too well. In 2008 when Body Shop, Inc. in take.”

Columbus, OH, is Juniper has captured more the economy imploded, most tripling his advertisshops scaled down marketing ing and marketing than 70% of the market when and advertising, but not Juni- during the pandemic it came to outdoor advertising in Columbus. per. He saw the opportunity “I own 95 billboard locations and seized it, andwith when Stacey everythingPhillips returned back to normal approximately here in town, so if you drive more 18 months later, he had captured more than five minutes in every direction, you will see us,” he said. “They aren’t of the market in Columbus.

When the pandemic hit in March, all in ideal locations, but by buying in Juniper called his advertising vendors volume, the average price is low. We and told them it was go-time. The rotate 10 different themes and focus on educational topics like antiprices were rightwith and the market was Victoria Antonelli steering, safety, anti-texting and we also promote our community efforts, our car certifications and our app.

“We have used literally a hundred different meswith Ed Attanasio sages over the years and In addition to an aggressive radio ad campaign, Juniper we’ve become well-known owns the lion’s share of every billboard location available from our billboards. People in town come up to me all the time wide open, so Juniper starting nego- and mention our most recent billtiating a series of unprecedented long- board.”

In addition to being a master marterm deals. with Gary Ledoux “No one else is advertising, espe- keteer, Juniper is also an inventor. In cially body shops,” he said. “It feels 2012, he created the Pink Button aclike I’m stealing, because they are cident-help app with Leo Daugherty discounting everything. When all of III, the owner of Rampart Hosting, this is over, I will still have these ama- Inc. Currently, he has 1,500 people zing rates. I am saving an enormous using it and it brings him four to five cars every week. amount of money.” witharea—home Stacey Phillips The formula Juniper uses to deThe Columbus of The Ohio State University—is highly termine how much money he should competitive, with more than 130 body spend on marketing and advertising shops all vying for the top spot. Since during non-pandemic times is fairly he has chosen not to work with any simple, he said.

Shop Strategies

“I have figured out over the years how much I save by not giving the insurance companies discounts through DRPs, and I use those funds on marketing. In addition, I retain full

Body Shops Giving Back

Some of Juniper’s billboard messages include anti-steering like the one here

Tips for Busy Body Shops control on each repair and run a steaMy SEMA

dy three-week backlog all the time, so who needs DRPs?” Radio advertising has also been extremely effective for Juniper and Three-C Body Shop, he said.

“Thirty years ago, we did our first radio campaign and since then, we’ve produced more than 400 radio spots. We realized that television ad-

No vertising doesn’t work well anymore for us because people now tape their shows and skip the commercials.”

Juniper isn’t afraid to use his image in many of his billboard ads, and he also does all the voiceovers for his radio spots. They also have a catchy jingle that is well-known, he said.

“In fact, customers sing it to me all the time.”

Back when she was 8 years old, Juniper’s daughter, Jade, got her 15 minutes of fame as a local radio spokesperson.

“We put her on the air and she was fantastic,” he said. “Listeners like the fact that we are a family business and these commercials reinforce it.

Jade picked up all of the lingo quickly and now she is 19 and she still does an ad for us whenever she can.

She is now in her third year of college and looking at a major in business.”

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From the Desk of Mike Anderson

40 JUNE 2020 AUTOBODY NEWS / autobodynews.com

with Mike Anderson Midwest_Issue_0620.indd 40

5/18/2020 5:28:50 PM

Whe need to th resp are cons

(RO that day ten d how clos your plem

tions your and you’ men skip tack Hav

more heir .” his ads, s for catsaid. o me

old, r 15 spo-

she like ness e it. quistill can. colusi-

with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Not Busy? If You’re Leading the Business, You Sure Should Be When work slows down, shop owners need to get busy. Now isn’t the time to think there’s nothing you can do to respond to the current situation. Here are some positive steps you should consider taking.

Close out those repair orders (ROs.) I’ve been preaching for years that ROs should be ready to close the day the car leaves, but I know that often doesn’t happen. Now is the time, however, to get any outstanding ROs closed and billed, and then recommit yourself to not getting behind on supplements and paperwork.

Don’t put off knowing your options. Now may be a good time to get your bank or landlord on the phone and find out what your options are if you’re struggling to make a full payment. They might be willing to let you skip some or all of a month or two and tack that money on later, over time.

Have those conversations before you

really need them, so you’re prepared.

Manage your credit. Hopefully you have a good credit line established before now with a bank that’s a good partner for your business. But if not, start those conversations.

Follow up. I mentioned this in a previous column about improving your “capture rate.” When a DRP assignment comes in, start contacting that potential customer immediately through multiple means. Go back through estimates you’ve written in the past six months to follow up with customers who didn’t schedule in the work. These are things that are easy to let slide a little when you’re busy, but now is a time to make them a priority.

Get them committed. Consider asking a customer scheduling a repair for a small deposit to help ensure they don’t back out. Tell them parts can sometimes be a little harder to come by quickly, but for, say, a 10%

deposit, you can start the parts order immediately to help ensure they are there when the car arrives.

Chase your money. If you have parts to return, that’s like money gathering dust on your shelves. And get after your receivables; that’s actual money of yours sitting out there.

Look at your expenses line-byline. There are “must-have” expenses and there are “nice-to-have” expenses.

Your estimating software subscription and business insurance are “musthaves.” But office cleaning services or landscaping services may be “nice-tohaves” but things you could be doing in-house.

Don’t stop marketing. One expense I would not cut out is marketing. Now more than ever, your name has to be out there, top of people’s minds when they need you.

Reduce staff only as a last resort. I’m not a fan of furloughing

or laying off staff unless you have little choice. There are some shops that may have gotten “a little fat” before this in terms of office stuff.

But in any case, if you have to do it, make your choice judiciously. Consider who are the people you could always count on to be willing to stay late or come in during a weekend to help a customer or get a car out.

Hang on to the people who are really going to help you and your business.

If you must cut hours, do it fairly. If you’re trying to reduce the economic hit by spreading a reduction in work time for all of your hourly employees, try to find ways to do it equitably. I had one shop tell me they needed to temporarily have each of the company’s five office staff take one day off a week. Each week, they drew names out of a hat to determine, for the next week, who was staying at See Not Busy?, Page 46

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Choose Original BMW Parts and Accessories. Because you can’t repair your reputation. ©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. autobodynews.com / JUNE 2020 AUTOBODY NEWS 41

Midwest_Issue_0620.indd 41

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Garmat Develops Walk-Up Testing Booth for COVID-19 Garmat USA, a leading U.S.-based manufacturer of paint booths and refinish equipment, has joined the fight to help stop the COVID-19 epidemic, with a new idea that protects the medical provider while saving personal protective equipment (PPE.)

The company’s COVID-19 Walk-Up Testing Booth was developed in less than six days by Garmat entrepreneur Johan Huwaert, using expertise in airflow and differential pressure.

The core of Garmat’s business is providing a clean environment through containment.

The availability of safe and rapid testing is one of the most critical tools in the fight against COVID-19.

In the weeks and months ahead, both the number of tests and availability of testing sites will need to grow exponentially.

Garmat’s innovative COVID-19 Walk-Up Testing Booth enables a rapid and effective rollout of testing sites. This solution saves PPE and protects the provider, while providing a more efficient way to test masses of individuals.

Current testing methods are flawed when it comes to testing the masses of individuals in the months ahead. For example, in the medical office, when a patient is suspected of having the virus that causes COVID-19, the medical provider must don PPE. Most of these cases come back negative, so the PPE is wasted.

Testing stations in Colorado provide drive-through operations, which are unsafe, time-consuming and not viable for those without access to transportation.

South Korea has been very

Ford’s Potentially Devastating F-150 Problem Has Been Solved

by Jay Traugott, CarBuzz

The Ford F-150 is critical for the automaker. For years, it has been the best-selling vehicle for the Blue Oval, as well as in America. Without this full-size truck, Ford would be a very different automaker.

Last month, a tornado struck the BorgWarner factory in Seneca, SC, severely damaging the facility that produces transfer cases for the F-150 as well as the Ford Explorer and Expedition, and Lincoln Aviator and Navigator.

The plant’s roof was ripped off and part of the building itself collapsed. Without this critical transmission component, Ford would have a serious problem―as if the coronavirus pandemic isn’t already enough of a problem.

Fortunately, it seems Ford has dodged a bullet on this one.

Automotive News reports Ford and plant officials moved fast with a damage assessment and numerous various other efforts and have managed to find a way to get the plant up and running.

Within only 12 hours of the

tornado strike, repair teams were on the scene and quickly got to work.

The plant’s roof has been temporarily repaired as well as the necessary computer rooms that manage the production line. As a result, Ford reports there will be no production disruption.

“I’m extremely confident that when we start up our systems in the U.S. and North America, BorgWarner will support them. The risk is dropping every day,” said Gary Johnson, Ford’s chief manufacturing and labor affairs officer. “The decision was made to help retrofit the plant to make it viable to come back.”

BorgWarner added it plans to resume production at the end of the month. And speaking of production, Ford said late last week it intends to restart production at its North American plants the moment the government gives approval. No specific restart dates have been set as of this writing.

Meanwhile, Ford’s European plants are scheduled to reopen May 4.

We thank CarBuzz for reprint permission.

proactive in testing its citizens for COVID-19, which has led to a lower number of cases and deaths. One hospital in Seoul has set up four walk-up booths outside the hospital for patients to enter for testing.

Before the development of these booths, patients were treated in large negative pressure rooms that took a long time to disinfect.

The innovation to “individual patient” walk-up phone booth testing made processing 10 times faster, allowing for more patient testing each day.

It also reduced the amount of PPE required by health care workers to perform the tests.

The patient-centered booth in South Korea has one major drawback―it still requires a fulsome disinfection process after each patient.

Brigham & Women’s hospital in Boston designed a three-sided plexiglass version, an improvement over

the South Korea booth, as it placed the health care provider inside, minimizing the surface area and time required for disinfection.

Garmat’s latest innovation ad vances Brigham’s version, to provide additional protection for health care workers by fully enclosing the booth and applying positive airflow pressure, forcing contaminants from the interior of the booth.

The size and convenience of these walk-up testing booths would allow for testing outside hospitals, urgent care centers, pharmacies, airports, universities and major sporting venues.

Garmat has ample production capacity in its Colorado manufacturing facility. Units can be shipped fully assembled on a standard pallet, and install is as simple as placing the unit and plugging into a power source.

Garmat USA is America’s leading manufacturer of paint booths serving auto collision repair and industrial refinishing customers. Read more at the Garmat USA website.

Source: Garmat

Glass Company Shifts Gears to Make ‘Sneeze Guards’ for Vehicles

by Nathan Taylor, OrrilliaMatters.com

An Orillia, Ontario, Canada, company is doing its part to ensure the safety of those who are still on the road during the COVID-19 pandemic. Speedy Glass Orillia has been creating and installing partitions, or “sneeze guards,” for various vehicles.

It started a couple of weeks ago, when nearby municipalities contacted the business to see if it would create the partitions for use in some passenger transportation vehicles. Then, word got out to security and waste collection companies as well as local auto dealerships, some of which have purchased the partitions for their shuttle vehicles.

“People are staying home and we’re a little bit quieter than normal. We realized this was something we could do to keep us busy,” said Scott Stevens, owner/operator of Speedy Glass Orillia. “It’s good to help the community a little bit.”

Those who are interested in purchasing the partitions or learning more about them can call

Speedy Glass Orillia at 705-3253500. The partitions come at a cost, but the company has agreed to donate $20 for each one installed to local food banks and shelters.

Speedy Glass Orillia has been creating and installing these partitions, or sneeze guards, to keep drivers and passengers safe during the COVID-19 pandemic. Credit: Supplied photo

“We know the food banks and shelters are having a hard time right now with more people out of work than usual. We hope this can help out a little bit,” Stevens said. “We’re just trying to keep ourselves busy and benefit organizations and individuals in this unprecedented time we’re in.”

We thank OrrilliaMatters.com for reprint permission.

42 JUNE 2020 AUTOBODY NEWS / autobodynews.com

Midwest_Issue_0620.indd 42

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autobodynews.com / JUNE 2020 AUTOBODY NEWS 43

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ACA Joins More Than 100 Business Organizations to Launch America’s Recovery Fund Coalition The Auto Care Association (ACA) announced it has joined America’s Recovery Fund Coalition, an alliance of more than 100 trade associations and business organizations advocating for a grant-based federal assistance program to power the resilience of American enterprise.

Together, the coalition’s members span 30 business sectors and employ 45% of the nation’s workforce— more than 58 million workers.

“The Auto Care Association is leaving no stone unturned in its continued effort to identify opportunities to help our members, American businesses and American workers to get back on their feet and get back to work,” said Bill Hanvey, president and CEO, ACA. “Joining the coalition is another important step we have taken in order to secure more funding and resources that will be vital to keeping businesses within the auto care industry afloat during this unprecedented crisis.”

In a letter sent to President Donald Trump, congressional leaders and the Secretary of the Treasury, the coalition noted:

“Today we are announcing the creation of America’s Recovery Fund Coalition, a group of over 100 organizations advocating for a grant-based federal assistance program to power the resilience of American enterprise. America’s Recovery Fund Coalition includes members representing more than 30 business sectors that together employ 58 million Americans and comprising more than 45% of the private workforce.”

The coalition went on: “Existing programs like the Paycheck Protection Program were a well-intentioned effort to help defray the impact of the COVID-19 economic crisis, but we must build upon the current options and address the overwhelming need for additional capital support to businesses. A broad-based, efficient recovery fund that does not pick winners and losers is the best path forward. Without such a fund, our retailers, theatres, restaurants and many other industries will be decimated―and our communities will be poorer both economi-

Scholarship Recipients Announced by WIN

cally and culturally as a result.

“America’s Recovery Fund Coalition believes Congress must urgently create a federal direct assistance fund to provide rapid liquidity to businesses impaired by the COVID-19 national emergency.

We believe the fund should be designed to help businesses maintain ongoing capital obligations during the prolonged crisis and the next months of economic healing, enabling employees to continue receiving pay, maintain benefits and helping employers rehire former employees while workplaces get back on their feet and safely reopen to the public.”

To see the full list of America’s Recovery Fund Coalition members, click here. https://americasrecoveryfund.org/about-us/

To learn more about America’s Recovery Fund Coalition visit www.

AmericasRecoveryFund.org.

For more COVID-19 information and resources, visit autocare. org/coronavirus.

There are 11 new recipients of the 2020 Women’s Industry Network (WIN) College Student Tuition and Conference Scholarship Award. The scholarhips are presented annually to deserving students enrolled in a post-secondary collision repair technology programs. Each recipient receives a $1,000 scholarship to continue their post-secondary education in collision repair and complimentary registration to attend the 2021 WIN Educational Conference.

This year’s winners are Melissa Acosta, Tampa, FL; Taylor Berglund, Beaverton, OR; Jamie Frey, Windsor, CO; Errin Gill, Mount Dora, FL; Katheryn Hasty, Topeka, KS; Brooke Kline, Winona, MN; Breanna Ramirez, Katy, TX; Lilian Reed, Kimberly, ID; Kristina Tedesco, Ridgebury, PA; Nichole Turner, Grand Island, FL; and Elyssa Wilson, Liscomb, NS, Canada.

Source: ACA

Source: WIN

Ford CEO on Weathering Coronavirus: ‘Don’t Waste a Crisis’

by Joann Muller, Axios

The coronavirus pandemic couldn’t have hit Ford at a worse time― midway through a restructuring effort, with several critical vehicle debuts just around the corner.

With its factories closed and car demand sharply lower, it’s more important than ever for Ford to get the company back on track quickly so it can weather the storm.

But some analysts are worried about what they see as a lack of urgency after Ford posted a $2 billion Q1 loss and predicted it would lose another $5 billion or more this quarter.

Pressed during an earnings call about whether Ford would accelerate its restructuring actions in light of the pandemic, CEO James Hackett acknowledged “one truth, right? Don’t waste a crisis.” But he offered no new plans.

“While the cash burn dynamics were in-line with what we had modeled, Ford did not appear to have a firm grasp on how it might accelerate restructuring

actions to offset what could be a lower sales environment even post-lockdowns,” Barclays analyst Brian Johnson wrote in a note to clients.

Ford has $35 billion in cash after recent borrowings, enough to last through the year if there’s a prolonged crisis, CFO Tim Stone said.

So far, none of the Detroit automakers appears to be in need of a bailout.

Ford still owes the federal government $1.5 billion for government loans it received during the last crisis in 2009.

It’s not clear when Ford will reopen its U.S. manufacturing plants but every day that it’s not producing cars means more red ink. Ford’s European factories are scheduled to gradually resume production starting Monday.

We thank Axios for reprint permission.

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44 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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Continued from Page 37

10 Shops Share What They are Doing to Get Work in the Door

by John Yoswick

What steps are shops around the country taking to get work in the door? Here is a quick run-down of 10 ideas from 10 shops.

1. William’s Collision in Eloise, FL, has picked up some revenue by adding spray-in truck bedliners to its list of offerings.

2. “We are offering free pick-up and delivery, mobile estimates, photo estimates through Podium, and utilizing CCC Engage for free,” said Zach DeGroot of Riverbend Body Shop in Grand Rapids, MI. (CCC Information Services is making its CCC Engage photo estimating and CCC Mobile available to its customers at no cost through July.) “We’re also advertising special promotions for first responders and front line workers, like free car washes, vehicle disinfecting services and discounts on deductibles.”

3. A 30-second ad (https://www.youtube.com/watch?v=EenStgoq_YY) posted by Arrowhead Autobody in

Duluth, MN, points to the mobile estimating and pick-up and delivery services the shop is offering customers, along with the added precautions it is taking to sanitize its office, loaner cars and customer vehicles.

4. “We are reaching out to all insurance companies to let them know we are open, and calling friends who are in car clubs to see if they need any clean-up work on collector cars,” said Joe Krebs of K&H Automotive Collision Center in Hamilton, NJ. 5. “We have upgraded our website and we are on Facebook every day,” said Sherry Card, owner of Collision Connection at Brookside in Tulsa, OK. 6. Randy Stabler of Pride Auto Body in Van Nuys, CA, said his company is contacting all past customers to offer discounted pricing on repair of minor damage.

7. Christy Jones of R Jones Collision 1 in Des Moines, IA, said promoting detailing services “has worked to fill in some gaps in our

8. Sherry Martin, office manager at Pro Collision Center in Orange, VA, said the shop has brought in some complete paint jobs that it normally wouldn’t do.

9. Rosann Kramer of Runway Auto in South Burlington, VT, said she is starting a quarterly email campaign and a YouTube channel for short videos “so people can see who we are as a business.”

“We donate a vehicle every year through ‘Recycled Rides,’ and we haven’t used those donations in our marketing in the past, but this year I will be promoting our charitable endeavors,” Kramer said.

10. Many are finding ways to support other businesses in their community, like a “pay-it-forward” campaign started by Ernie’s Auto Body in Hayward, WI.

“With any collision repair over $1,000, the customer gets to choose a $30 gift certificate from several local restaurants doing take-out,” shop owner John Magowan said.

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Attendees were encouraged to be who they are.

“Don’t be somebody that you aren’t. You can’t fake your way through leading your team during this crisis,” Taylor insisted. “We’re in a battle right now, but you have to stay true to yourself.”

Taylor ended his presentation by encouraging folks to set new habits, improve their mindset, practice gratitude and find joy in ordinary life.

“Be in the moment—your five senses, foods, Mother Nature, a warm bed—these things are awesome, and it can help to remember that you have plenty of things to be thankful for, no matter how hard things may seem.”

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Hyundai Parts Dealers: autobodynews.com / JUNE 2020 AUTOBODY NEWS 45

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Not Busy?

Fix Auto USA and Auto Center Auto Body Sold to Driven Brands FOCUS Advisors announced the sale of the franchisor 79411, Inc. dba Fix Auto USA and its largest MSO franchisee, Auto Center Auto Body, Inc., to Driven Brands, a portfolio company of Roark Capital.

See cover story this issue.

With 152 current locations, rapidly growing Fix Auto USA, the U.S. licensee of the Fix Auto brand, is the franchise of choice for premier collision repair operators in the U.S. Auto Center Auto Body, a nine-location MSO in Southern California owned by Erick and Shelly Bickett, is also one of Fix USA’s top performing operations.

Driven Brands operates more than 3,100 auto aftermarket locations in seven separate firms, including collision repair franchisors CARSTAR, ABRA and MAACO.

David Roberts, managing director of FOCUS, who led the transaction, commented on the impact of this industry realignment and what it foretells.

“Together with CARSTAR and their recent ABRA franchise

acquisition, Driven Brands is now positioned as the primary home for operators that want to remain independent in a time of accelerating consolidation,” Roberts said. “Additionally, the acquisition of ACAB positions Driven to begin building its own consolidation platform.”

“As a competitor to Driven Brands’ CARSTAR franchise, we’ve been impressed with their increasing professionalism and marketing impact,” said Fix Auto USA CEO Paul Gange. “As an independent brand under the Driven umbrella, we expect to gain access to industry-leading franchise expertise, synergies and capital to accelerate and successfully manage the next phase of Fix USA’s growth.”

Erick and Shelly Bickett, co-founders of Fix Auto USA, have been collision industry pioneers since they opened their first Auto Center Auto Body shop in 1984.

They also co-founded CEICA in 1995, Cyncast in 2000 and CCI training institute in 2015. Shelly

and Erick Bickett will both continue to advise Driven Brands.

“For years, we’ve contemplated how independent operators could continue to do what they do best and still have the opportunity to access capital and exit their businesses when they were ready,” said Erick Bickett. “We have worked with Dave Roberts over many years to help craft our strategy and ultimately represent us in our own exit event. The current climate made the combination more challenging but we are pleased to cement this vital partnership with Driven.”

“Erick and I created Fix Auto USA to provide the kind of scale and professional support for smaller MSOs and individual shops that allowed them to effectively compete against the consolidators,” said Shelly Bickett.

“With new capital and an expanded team, we expect to continue and expand our competitive position in the California market.”

home each day, so everyone took the same cut, and the choice was random and fair.

Keep them busy. The last thing you want is people standing around with nothing to do but get negative or scared. If there’s no work, have employees take online training, or do maintenance and repair of equipment and the facility. Or offer them free use of the shop, by letting them bring in family members’ vehicles to change the oil or brakes. Keep them busy.

This is no time for those leading a business to sit idle and just wait for things to change.

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