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VOL. 3 ISSUE 10 JULY 2014

Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry

Attorney and AASP-MN Lobbyist Kevin Walli is Minnesota’s Shop Champion

PartsTrader proposed state limits on use of non-OEM parts, and challenging the automakers’ patent designs on crash parts were all being discussed when non-OEM parts manufacturers and distributors met recently in Austin, Texas. The Automotive Body Parts Association (ABPA) allowed only members in the room during discussion at its convention of the association’s pending lawsuit challenging the validity of six of Ford’s design patents on collision repair parts. But proposed

Kevin Walli has been the lobbyist for the Alliance of Automotive Service Providers (AASP-MN) for the past 20 years. He is a shareholder in the law firm of Fryberger, Buchanan, Smith and Frederick in St. Paul, MN. We got in touch recently to discuss the recent history of legislation that has impacted the collision industry in Minnesota in the past five years.

by John Yoswick

federal legislation that would reduce how long automakers can use design patents to prevent other companies from producing replacement crash parts was among the topics discussed at the event by Louisiana tax Cassie Felder lawyer Cassie Felder, who is running for Congress. Felder, a Republican who believes in tax reform and repealing the Affordable Care Act, told attenSee Aftermarket Parts Sellers, Page 28

Springfield, OH, Community Businesses Donate Time, Money for Rehabbed Police SWAT Vehicle The Springfield business community has joined together to help transform an outdated Brinks armored truck

The new Springfield Police Division’s Special Operations Team armored vehicle. Local businesses, including Maine’s Collision Repair and Navistar, donated more than $100,000 of parts and labor to refurbish an old Brinks truck

into a SWAT rescue vehicle for the Springfield Police Special Operations Team, according to a report in the Springfield News Sun by Allison Wichie. “We’ve done everything that we can do to that truck,” said Fred Maine, owner of Maine’s Collision Repair. “And it’s for all the guys that do (special operations). This is my thanks to you and we’re just happy that you make Springfield a safer place.” Maine’s Collision Repair, Navistar and the UAW Local 402, Hays Fabricating, the Miami Valley AAA, the Port Authority of Springfield

by Ed Attanasio

Q: How did you become the lobbyist for the AASP-MN? KW: I’ve been representing the collision industry in Minnesota for 20 years now, after working in government affairs for many years prior to that. A friend of a friend knew someone at the

AASP-MN and told me they were looking for some representation and more support at the Capitol. Over the years, we’ve been working hard to Kevin Walli, Esq. provide more balhas been the ance between the lobbyist for Minnesota’s Alliance interests of the colof Automotive lision industry and Service Providers the insurance in(AASP-MN) for the dustry, because past 20 years there’s an ongoing tug-of-war there obviously. I believe that there has been a constructive approach by the two industries to try and communicate with one and other. So, See Kevin Walli, Page 6

OH’s Three-C Body Shops Has Filed Over 100 Lawsuits Against State Farm Alleging Systematic Shortpays by Chasidy Rae Sisk

Three-C Body Shops, a four-facility, multi-shop operation in the Columbus OH, area, has filed multiple lawsuits against State Farm Insurance Company in an effort to recover alleged shortpay losses. Since November 2012, Three-C has filed 104 suits

See Springfield SWAT, Page 45

Three-C is Suing State Farm, Alleging Repeated Estimate Discrepancies on Total Losses

against the insurer, all of which accuse State Farm of engaging in “repeated underpayments for services generally rendered and charged to their cus-

tomers when their vehicles have been deemed total losses.” Currently, owner Bob Juniper is seeking $405,000 in recovery, including legal fees and court costs, of which State Farm previously agreed to pay $31,565.03. Juniper notes that he rarely has problems with insurers refusing to pay the full cost of repairs because “we negotiate with them pretty well. We spend a little time with their adjusters and can generally get to where we need to be. We may not always get the full amount of our estimate, but we get close by compromising until we come to terms we can both agree on.” In fact, Juniper hasn’t experienced difficulty from State Farm in paying for repairs either. Three-C’s shortpay lawsuits are associated with costs related to vehicles that are deemed total losses which the insurer objects to paying. Juniper provides the following example: if the shop writes See Three-C Body Shops, Page 22

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - How to Market to Millennials. . 36 Franklin - Ding Day–A Marketing Tactic . . 37 Luehr - Using an Outside Expert to Improve your Competitive Position . . . . . . . . . . 34 Yoswick - Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and OEConnection . . . . . . . . . . . . . . . . . . . 14

NATIONAL Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry . . . . . . . . . . . . . . . . . . . 1 AMI to Honor New Managers . . . . . . . . . . 17 ASA-CO to Host Pinnacol Safety Meeting July 9 in Denver. . . . . . . . . . . . . . . . . . 40 Attanasio - Tech Turned Tool Designer Headlines EB-CAA May Meeting. . . . . . 32 AudaExplore Pledges $150K to SkillsUSA in Tool Grants . . . . . . . . . . . . . . . . . . 43 AutoZone Names Dornan Products Vendor of the Year . . . . . . . . . . . . . . . . 25 Caliber Acquires MSOs in Los Angeles and North Carolina. . . . . . . . . . . . . . . . 47 CARS This Year Is All New, ASA Promises It Will Be The Best Show Ever . . . . . . . 40 CARSTAR Sees Record Revenue in 2013, Plans Expansion of HQ in Leawood, KS . 39 CAWA Reports on Status of California Legislation Impacting Industry . . . . . . . 33

CCAR and ShipMate Launch Improved HazmatU website. . . . . . . . . . . . . . . . . 39 Chrysler Airbag Recall Being Probed by Regulators . . . . . . . . . . . . . . . . . . . 44 Crashes Cost Almost $1T in Costs, Loss of Life, Pain. . . . . . . . . . . . . . . . . 43 Culpeper, VA, Man Charged after Body Shop Standoff. . . . . . . . . . . . . . . 47 Dusty’s Collision Project Goes to Council in Ann Arbor, MI . . . . . . . . . . . 10 Employee, 23, Killed at Baton Rouge Upholstery Shop . . . . . . . . . . . . . . . . . 47 Fix Auto Acquires Alaska Shops . . . . . . . . 17 Franklin - CAA Glendale-Foothill And Valley-Ventura Chapters Meeting June 2, 2014 . . . . . . . . . . . . . . . . . . . . 41 I-CAR Gold Class and ASE-Certified Shops Rewarded at NACE | CARS . . . . . . . . . 16 I-CAR® Adds New OEM Segment Development Director, John Bosin . . . . 29 I-CAR® And National Auto Body Council Partner on Membership Discount, 30% Off Until End of 2014 . . . . . . . . . . 40 I-Car® Conference on Future of Collision Repair and Automotive Industry, July 30 In Detroit . . . . . . . . . . . . . . . . . . . . . . . 46 Interactive Advanced Steering and Suspension Systems Damage Analysis Course. . . . 29 Letter to the Editor - Why Should Insurers Get Free Estimates When They’re Not Using Adjusters . . . . . . . . . . . . . . . . . . . 3 MERA Joins the Excitement at NACE | CARS 2014. . . . . . . . . . . . . . . 16 New Study Says More Than 75% of All Pickup Trucks will be Aluminum-Bodied by 2025. . . . . . . . . . . . . . . . . . . . . . . . 46 Niebling Auto Body: 120 Years and Still Going Strong . . . . . . . . . . . . . . . . . . . . 24 NSF International’s Bob Frayer Earns Prestigious ASQ Quality Leader Award . 44 Pack Brothers in Belmont NC Wins Short Pay Arbitration . . . . . . . . . . . . . . 47 PartsTrader Integrates Hollander Interchange Codes. . . . . . . . . . . . . . . . 44 Quality Parts Coalition Says Five-Year Price Comparison Report Shows Certified Aftermarket Parts Saved $80 Million Since 2009 . . . . . . . . . . . . . . . . . . . . . 42 SCC Students Receive Nebraska Custom Association Scholarships. . . . . . . . . . . 45 SCRS Open Board Meeting on July 28th in Detroit . . . . . . . . . . . . . . . . . . . . . . . 43 SD Shop Fire Caused by Smoldering Cigarette Butts . . . . . . . . . . . . . . . . . . . 33 SEMA Garage Now Features Photo Cove. . 10 Service King Collision Repair Centers Finalizes Sterling Collision Centers Acquisition . . . . . . . . . . . . . . . . . . . . . 26 Several Hundred Vehicles Suffer Hail Damage in IL Storm on May 22-23, . . . . . . . . . 41 Sisk - ASA-NW’s Automotive Training Expo 2014. . . . . . . . . . . . . . . . . . . . . . 42 Sisk - LaCIA Hosts Attorney General at May 22 Meeting. . . . . . . . . . . . . . . . 38 Sisk - New Auto Body Association of Texas Launches June 18, PartsTrader Provides Impetus, Statewide Members. . . . . . . . 30 VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition . . . . . . . . . . . . . . . 12 Women’s Industry Network Celebrates Excellence In Leadership and the Formal Transition of the ‘Most Influential Women’ Program to WIN . . . . . . . . . . . . . . . . . . 17 Young Technician’s Program to Debut at CARS . . . . . . . . . . . . . . . . . . . . . . . 43

they want us to write the estimate and send up pictures for free! Why do they think my time is worth nothing? My partner and I share the office work and are out in the shop working all day. Our time is valuable. When we are in the office our production time suffers. The insurance companies tell me “Well, you write free estimates don’t you?” My answer is ‘yes, to a prospective customer that I don’t know, or my regular customers,’ but when I have a customer that drops his car off I know I have that job already. The person has picked my shop. Why is it the insurance company feels that I should prepare the estimate for them on my dime? They are saving money by not paying an adjuster, but I feel they should at least pay me some fee for my time and not take advantage of me. Small shops cannot take that kind of abuse and I think it’s taking an extreme advantage of shops and the proprietors. I would like your [readers’] thoughts on how we can combat this abuse. Thanks, Pete Gutierrez, Pete <1redcatz@comcast.net>

Letters to the Editor can be sent to editor@autobodynews.com. They may be edited for length and clarity. See Facebook/autobodynews to respond via comment. Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Midwest

REGIONAL Attorney and AASP-MN Lobbyist Kevin Walli is Minnesota’s Shop Champion . . . . . . . 1 Branson, MO, Shop Keeps Environmental Concerns at Top . . . . . . . . . . . . . . . . . . 4 Brian R. Patrone, Boardman, OH, Painter, Passes at 41 . . . . . . . . . . . . . . . . . . . . . 7 Cape Girardeau, MO, Shop Burglarized, Valuables Taken . . . . . . . . . . . . . . . . . . . 7 Career Center Collision Students Keeps Sidney Police Vehicle on the Street. . . . . 4 Collision Repair Among Programs to Be Cut in Kentucky. . . . . . . . . . . . . . . . 13 Farmers Drops Climate Change Lawsuits in Chicago . . . . . . . . . . . . . . . . . . . . . . 10 Groundbreaking for OCC Collision Repair Technology Center in IL . . . . . . . . . . . . 10 IL Shop Owner Posts 20-min Video of FPB for Panel Fixes . . . . . . . . . . . . . 10 Insurer-Sponsored Hail Damage Centers in Iowa . . . . . . . . . . . . . . . . . . . . . . . . 10 Joseph Lee Grady, 68, Passes in Lodi, Lake Wisconsin in May . . . . . . . . . . . . . 9 Le Mars, IA, Shop Seeks Sewer Line Exception. . . . . . . . . . . . . . . . . . . . . . . . 4 Masters School of Autobody Management Hosts Body Shop Management Essentials in July . . . . . . . . . . . . . . . . . . . . . . . . . . 9 MO Shop Porter Steals Car, Joyrides Off-Road, Posts His Fun. . . . . . . . . . . . . 4 OH’s Three-C Body Shops Has Filed Over 100 Lawsuits Against State Farm Alleging Systematic Shortpays. . . . . . . . 1 Ohio Appeals Court OK’s Line Measurement for Dealership . . . . . . . . . . . . . . . . . . . 25 Sisk - ASA-Midwest - Take Me Out to the Ballgame!. . . . . . . . . . . . . . . . . . . . 26 Sisk - ASC-KY Views Shop Autonomy and Consumer Advocacy as Top Priorities . 18 Sisk - Indiana’s IABA Makes Changes for 2014 . . . . . . . . . . . . . . . . . . . . . . . . 8 Springfield, OH, Community Businesses Donate Time, Money for Rehabbed Police SWAT Vehicle . . . . . . . . . . . . . . . 1 SWCC Collision Repair Students Win Iowa SkillsUSA Competition . . . . . . . . . . 9

I would like your opinion on something I’m seeing becoming a trend. I am seeing more and more insurance companies making the body shop do the original estimate and send up pictures. We will have one of our customers bring a car to our shop and they want US to do the work. They call their insurance company up and let them know the car is at our shop. Normally, they would send out a insurance adjuster to do the estimate because for years now if we did one it was not good enough for them. They would not want it. They would do their own and in turn we would go over it and make adjustments or add to it from there. They may argue and haggle if repair times were unacceptable. Now, Nugent online uploading of pictures and estimates is available. I’m finding more and more insurance companies telling us to go ahead and use Nugent, upload and send pictures. All of a sudden now our estimates are good enough for them ! Of course they are saving money by not sending out an adjuster! This is what I’m upset about. Before we weren’t good enough to write a estimates now

Indexof Advertisers

Contents

Letter to the Editor: Why Should Insurers Get Free Estimates When They’re Not Using Adjusters

Serving Illinois, Iowa, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, 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. ©2014 Adamantine Media LLC.

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AAMStraining.com . . . . . . . . . . . . . . 5 Audi Wholesale Parts Dealers . . . . 43 Automotive ID . . . . . . . . . . . . . . . . . 12 BMW Wholesale Parts Dealers . . . . 34 Bolt Buster . . . . . . . . . . . . . . . . . . . 29 Celette . . . . . . . . . . . . . . . . . . . . . . . 13 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 Charles Gabus Ford . . . . . . . . . . . . 11 Chief Automotive. . . . . . . . . . . . 16, 17 Chrysler on Nicholasville . . . . . . . . 28 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dent Magic Tools . . . . . . . . . . . . . . . 9 Dent Tools Direct USA . . . . . . . . . . 30 Erhard BMW of Bloomfield Hills . . . 31 Erhard BMW of Farmington Hills . . 31 Ganley Auto Group, Inc. . . . . . . . . . 33 GlasWeld Systems, Inc . . . . . . . . . . 10 GM Wholesale Parts Dealers . . . . . 37 Graham Auto Mall . . . . . . . . . . . . . . 35 Griffin Automotive Group . . . . . . . . 24 Herkules Equipment Corporation. . . 8 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 20-21 Hyundai Wholesale Parts Dealers . 41 Induction Innovations, Inc. . . . . . . . . 6 Jake Sweeney BMW . . . . . . . . . . . . 39 Jake Sweeney Chevrolet . . . . . . . . 39

Kia of Des Moines . . . . . . . . . . . . . . 11 Kia Wholesale Parts Dealers. . . . . . 44 Laurel Auto Group of Westmont . . . 19 Lexus Wholesale Parts Dealers . . . 45 Loaner & Rental Insurance by Northland . . . . . . . . . . . . . . . . 26 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Management Success . . . . . . . . . . . 7 Martech Services Company . . . . . . 16 Mazda Wholesale Parts Dealers . . . 40 Minute Man Wheel Lifts. . . . . . . . . . . 4 Mitsubishi Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . 47 MOPAR Wholesale Parts Dealers . . 23 Morrison’s Auto Parts . . . . . . . . . . . 18 NACE/CARS Expo & Conference . . 27 PDR Nation . . . . . . . . . . . . . . . . . . . 14 Rare Parts, Inc. . . . . . . . . . . . . . . . . 22 SATA Spray Equipment . . . . . . . . . 25 Subaru Wholesale Parts Dealers . . 36 Toyota of Des Moines . . . . . . . . . . . 11 Toyota of Grand Rapids . . . . . . . . . 32 Toyota Wholesale Parts Dealers . . . 38 Valspar Automotive . . . . . . . . . . . . . . 2 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 43 Zeigler Chrysler-Dodge-Jeep . . . . . 48

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 3

MO Shop Porter Steals Car, Joyrides Off-Road, Posts His Fun

Police say a Hazelwood auto body worker decided to commute in a car stolen from his employer, Complete Auto Body at 6041 N Lindbergh Blvd, Hazelwood, MO. Over the weekend, a coworker spotted the suspect driving the 2003 Pontiac Bonneville around his neighborhood. His employer checked surveillance, and all the evidence was right there. Complete Auto Body General Manager Kurtis Barks said, “You see a vehicle parked behind our dumpster, watch the guy strategically move the gate, and then take off with our car. Apparently he did this once, got away with it, so he decided he’d just keep the car.” Barks says not only did 41 yearold Ben Taylor take the Pontiac for the weekend, but he documented it on social media: “I came to find out he was actually putting pictures on facebook where he was kind of modeling on the vehicle, and showing off to his friends.” Taylor’s boss, along with Hazelwood Police, presented their evidence to Taylor, but he still denied it, until they showed Taylor his own meal receipts, left in the car. “Eventually, he did come around and admit to it,” says Hazelwood Po-

Collision Students Maintain OH Police Vehicle

Students at Upper Valley Career Center in Piqua, OH, recently helped keep a police vehicle on the street. Junior and senior auto collision students at Upper Valley repaired and painted a rusted Sidney Police vehicle.

Career Center Collision Repair Project Keeps Sidney Police Vehicle on the Street

“This project was an opportunity for students to gain experience and expertise in the career field of auto body repair and to showcase their skills,” Sidney Police Chief William Balling said. “The repairs to the vehicle are very professional and it gave the vehicle a whole new look.” James Hess of J&J Enterprises in Piqua donated the paint and supplies needed for the repairs. Balling said the department owes instructor Frank Anthony, his students and James Hess a great deal of gratitude for the hard work and material. Upper Valley students repainted another Sidney police vehicle in 2011, which is still in service.

lice Lt. Ron Livingston. Ultimately, police say Taylor put 78 miles on the car, and caused $3800 worth of damage. Barks said, “Apparently he decided to go off-roading, and the right front and left front of the vehicle were messed up. We repaired all that, took care of it, we actually bought the car from the customer in order to make up for it, so there was no damage or loss for them.” The Pontiac is now a rental car, and its former owner is now a regular customer. That’s left Taylor, who worked as a porter and car cleaner, fired and behind bars, charged with Stealing a Motor Vehicle, a Class C Felony. Barks adds, “We’re very thankful to have great employees that actually stood up for us, and told us, and we had the right surveillance in place to catch them.” The theft happened back in November, but charges were just filed. That’s because police were investigating a similar crime, in which Taylor was a suspect. However, there was not enough evidence to charge him in that incident.

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Branson, MO, Shop Keeps Environmental Concerns at Top Branson Collision Center has been in business more than eight years, but owner Jesse Lee has nearly three decades of experience in the auto body repair business. Branson Collision Center operates out of a state-ofthe-art facility on Gretna Road, where they keep the environment in mind every step of the way. “We’ve got brand new downdraft pressurized and heated paint booths to keep dust at a minimum,” Lee said. They use waterborne paints and primers, which are more environmentally friendly. And they do everything they can to ensure they are keeping what they can out of landfills. “Everything gets recycled,” he said. Lee said technicians have the use of portable prep stations to make jobs go faster, and they also have frame machines that can handle large trucks. An on-site mechanic shop is also in place to handle other repairs. Branson Collision Center has many direct repair programs and works with all major insurance companies. “We can do RV collision repair, watercraft collision repair and motorcycle collision repair,” Lee said. “All of our techs are exceeding 15 years experience,” Lee said. “They are ASE-certified, I-CAR-certified

and PPG paint-certified.” In order to maintain those certifications, Lee and his crew must continually stay up-to-date on the latest techniques and procedures and maintain a standard of excellence. ASE certification is considered the blue seal of excellence from the National Institute for Automotive Service Excellence. I-CAR, Lee explained, is the NASCAR of collision repair. A PPG-certified shop must fulfill a number of special quality requirements that means the body shop always complies with the highest standards. Branson Collision Center can handle more than collision repair. They can do RV fiberglass repair and spray-in bedliners for trucks, as well as detailing. “Customer satisfaction is the key,” Lee said. “People don’t like to be without a car, so we are going to do everything we can to help them get back on the road.” To tour the shop, visit bransoncollisioncenter.com.

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Le Mars, IA, Shop Seeks Sewer Line Exception

The Le Mars City Council approved an industrial property tax exemption to facilitate expansion of Total Sales and Service’s auto body shop in Le Mars. The exemption has a value of up to $6,594, over five years as a rebate on a declining scale of 75, 60, 45, 30 and 15 percent each year. The city issues tax rebates for projects that add assessed value, buildings and jobs in Le Mars, said City Administrator Scott Langel. The real estate on which Total Sales is located, at 801 Hawkeye Ave. S.W., is owned by Brownmiller Investments, of Le Mars. Brent Brownmiller appeared before the council Tuesday to request the exemption. The proposed expansion includes an 80-by-80-foot building, which will be attached to the existing body shop. “We want to grow. We can’t fit trucks in our building,” Brownmiller said. Brownmiller also requested the relocation of an existing 12-inch sanitary sewer line, which travels underneath the proposed expansion. At Tuesday’s council meeting, Langel said businesses usually do not build on top of sewer lines, but he knows of some exceptions in Le Mars.

4 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 5

Continued from Cover

Kevin Walli

what we’ve done for several years running is that we sit down usually a few times per year to air out our issues and sometimes there’s a response from the insurance companies that indicates that maybe we can address some of these issues ourselves. But in other cases, we end up saying let’s agree to disagree and arm wrestle it out at the Capitol.

Q: You’ve dealt with legislation regarding steering? KW: Yes, and we’ve had some success with legislation concerning steering. We’ve been able to find more clarity on the laws dealing with steering, so that we can understand what steering is and provide some direction in the law. The purpose of the language is obviously to protect consumers from being steered and we’ve had some success with that. Steering has always been an issue and it still is in many ways, so we’ve developed legislation to address that. We sought language a few years ago to prevent an insured or claimant from being required to take their ve-

hicle to a particular drive-in claims center and we were able to get that changed. We also added a section that restricts an insurer from specifying the use of particular vendors for the procurement of parts or other materials necessary to perform a satisfactory repair. Now this very issue is still being contested.

Q: There’s been a battle in Minnesota between the insurance companies and the body shops, because the insurers want the shops to use certain parts, products and management platforms, correct? KW: Yes, we had some legislation this year that we did not succeed with (House File 2690/Senate File 2542-the Auto Repair Claims Processing Bill) that would have prevented insurance companies from dictating certain business practices at repair shops. I think there’s a sense with the body shop owners in Minnesota that there are more and more situations in which insurers are dictating what estimating systems and materials they should use. And we’re concerned that it’s a slippery slope where the insurance companies will take away the au-

6 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

tonomy of the collision repair shop owner. We had some proposed legislation that would have restricted insurance companies from specifying or requiring that repair shops have to utilize specific vendors, manufacturers, suppliers, business platforms or internal processes and we got the bill introduced and some great authors for the bill both in the House and in the Senate. But ultimately, we couldn’t get movement for the bill on the Senate side. The Chairperson there (Senator Jim Metzen, who was also a co-author of the bill) was uncomfortable with the onslaught of input he received from the insurance industry. Some of what they had to say was legitimate, and some was not, but that’s not unusual. When we proposed the legislation and it was circulating at the Capitol, the insurance industry came forward and said that they hadn’t heard of this bill. They said “Hey—we’ve had this practice for several years of discussing legislative proposals with the collision industry in advance of the Legislative Session.” They argued that they hadn’t had such a discussion on this proposal. In addition, this year’s

Legislative Session was shorter with very tight deadlines for getting bills heard, so that also played a role in the death of the bill. But, we’re going to bring it back in a new form, after getting some valuable feedback from the insurance side. They said that we were trying to kill the DRP system, which was never our intention at all. So, we have to address that issue and re-work some of the language the next time around, so that it’s clear we’re not trying to change the fundamental relationship that exists between body shops and insurance companies. Q: I imagine you haven’t been supportive of programs like PartsTrader? KW: Exactly, because our concern has always been that if a body shop is required to use a particular parts vendor, the shop doesn’t have a relationship or a history with that vendor. As a result, parts that aren’t appropriate for the vehicle can enter the picture, because the communication between the shop and the vendor is not present. Shops spend a lot of time and effort to developed business relationships with particular parts vendors and then all of this goes out the door when they are forced to

work with someone else they don’t know anything about. In addition, we have had an ongoing dialog with the Department of Commerce regarding its enforcement and there is an investigation that’s open in this matter and the Department of Commerce is continually gathering information about how PartsTrader system is working or not. We were hoping that the statute would provide enough guidance for enforcement action. But now they’re gathering information and studying the marketplace and as an industry we’re trying to provide information for the Department of Commerce in this matter. Some time ago, we also added language to the same statute that “prohibits an insurer from unilaterally and arbitrarily disregarding a repair operation or cost identified by an estimating system…” This means, if you’re using an estimating system that you and the insurance company have both agreed that it’s acceptable to use, then they can’t deny the repair operation and cost without some clear justification. This kind of shifts the burden to them and it’s now their responsibility to prove the repair practice should not be recognized.

Q: What other issues have you’ve tackled on behalf of the members of AASP-MN? KW: We had to deal with some tax provisions in recent years. There was a sales state tax on paint and supplies for shops when they were purchased at wholesale. But, we were able to shift the point of imposition on the tax from the wholesale to the retail level. That way, shops are able to pass that tax onto the consumer. The repair shops were eating that tax cost before. Most of the other states were already doing it this way and Minnesota was kind of an island in that regard, so the legislation was much-needed.

Q: You have an annual Legislative Day where shop owners can meet with their legislators, right? KW: We’ve been doing a Day at the Capitol on occasion, where we meet with our members and give them an orientation of how things work at the State Capitol. Then, we ask them to talk with their Representatives and Senators and walk the halls to discuss the legislation we’re working on. The insurance industry is extremely wellrepresented and they have a lot very smart people working for them, both

in-house people as well as consultants that they’ve retained. The sheer numbers can be rather daunting at times, to be honest. So having the shop owners converging at the Capitol and meeting with their Legislators puts a practical perspective on our issues–so it’s been a very positive thing. Plus, it helps me to do a better job for the AASP-MN, because after these Senators, for example, have met with one of their constituents, we can follow up to emphasize the point made by the shop owners.

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Brian R. Patrone, Boardman, OH, Painter, Passes at 41

Brian R. Patrone, 41, of Boardman, died the morning of May 31 at his residence. Born May 30, 1973, in Salem, OH, he was the son of Rocco Patrone and Debbie (Foley) Lewis. An auto painter by trade, Mr. Patrone worked for area auto body shops. He graduated from Crestview High School Class of 1991, was a Navy veteran and Catholic by faith. Survivors include his mother, Debbie Foley Lewis and stepfather, Bill Lewis of Petersburg; his brother, Kevin (Jenn) Patrone of New Waterford; his father, Rocco Patrone of Petersburg, Ind; and grandmother, Phil Foley of East Palestine. Preceding him in death were his grandparents, Pete Foley, Rocco and Dorothy Patrone and Reed and Martha Lewis.

Cape Girardeau, MO, Shop Burglarized, Valuables Taken

Cape Girardeau police are currently investigating an auto body shop burglary. Police say Schafer's Auto Body Shop, at 1410 South Sprigg Street, sustained garage door damage during the burglary and a computer processing unit, scanner, tools, an ATV, generator and a trailer were all taken.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 7

Midwest Associations with Chasidy Rae Sisk

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

Indiana’s IABA Makes Changes for 2014 This article is being republished from the IABA monthly newsletter with some additional comments from the organization.

Chapter Meeting Schedules: In the past we have scheduled chapter meetings on a bi-monthly basis. This has grown from a single Indianapolis Chapter in 2005 to seven or more chapters now in which we hold, or plan to hold, regular meetings conducted by the Executive Director and often includes special guest speakers. For this reason, beginning in 2014 we will now schedule meetings in each chapter on a quarterly basis, while still encouraging the local chapter to meet at least each other month. Current plans are to hold our chapter meetings in January, April, July, and October. The days of the week are also changing to the following:

Monday: Lunch - Terre Haute* Dinner - Evansville*

Tuesday: Lunch - New Albany Dinner - Bloomington

Wednesday: Lunch - IN North Dinner - Fort Wayne

Thursday: Lunch - Merrillville Dinner - Indianapolis

Friday: Lunch - Lafayette, Kokomo, Marion, Muncie *

* Working to organize regular local meetings in these areas.

We are also looking at supplementing our ability to reach more within the

8 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

State through WebCasts as well beginning in the second quarter.

Director Note: If you are in Terre Haute, Lafayette, Kokomo, Marion, or Muncie and would like to begin holding meetings, please contact me to assist in getting a suitable location.

Membership Levels: In the past, we had single ($395), 2 - 3 shop ($750), and 4+ ($1000) membership levels. For 2014, two additional membership types have been added. First, an additional multiple shop membership has been added for shops with two facilities in Indiana at $600.00, and an “Out of State” Membership has been added for $250.00.

This change was to encourage more involvement in the association.

Membership Challenge: From discussions it is obvious to ac-

complish what we need to for the Industry in 2014 - 2015, it will require additional revenue, or the association’s success will be limited. As the Executive Director and the Board of Directors, we need all members to embrace our 2014 challenge ... each current member commits bring two other shop owners or managers in your market to join the association, and with all the vendors you have a relationship with, get at least one to become a sponsoring member in 2014 and another in 2015. This commitment by all will move our organization forward and allow us to accomplish our goals for 2014 and 2015. We all have to work together to accomplish this, and I am sure we can! IABA By-Law Changes: It was also noted that the By-Laws will require updating and after the committee updates them, there will be a membership vote to approve the changes.

Masters School of Autobody Management Hosts Body Shop Management Essentials in July

Masters School of Autobody Management will be hosting its Body Shop Management Essentials course Monday, July 21 through Thursday, July 24 in Galesburg, Ill. The three-and-a-half-day course, taught by working professional collision repair shop owners and managers, the class will teach attendees the necessary solutions to achieve smoother personnel relations, effective production and profitability. Tuition is $2,495, and lodging and travel information is available. To register for the event: https://www.eventbrite.com/e/ body-shop-management-essentials-galesburg-registration10869814909 or Masters School of Autobody Management: https://www.masters-school.com/ class_schedule.php

@autobodynews Accept no Substitutes!

SWCC Collision Repair Students Win Iowa SkillsUSA Competition

Southwestern Community College in motive repair programs. The Creston Creston, IA, has announced a pair of based school boasts just one of two Iowa natives have qualified for the programs in Iowa offering students SkillsUSA national auto collision re- ASE and NATEF certification. pair competition. SWCC is the only program in the Zach Mullen of New Market and state to have the I-CAR Gold Class Garrett Hogue of Lenox took home designation. SWCC is one of five first place honors in the Iowa Skill- colleges in the state of Iowa to have sUSA 2014 competition held in Ankeny. The pair will now represent Iowa at the upcoming national competition in Kansas City, June 23-27. Hogue was named gold medalist in collision repair technology and Mullen was named gold medalist in automotive refinishing technology. Hogue and Mullen both received their diplomas in collision repair/refinish in June of Zach Mullen (l) and Garrett Hogue (r) are on their last year and their associate of way to the national SkillsUSA competition applied science degree in auto colli- the I-CAR Training Alliance. This sion repair/refinish last month. allows students to earn Gold Class Hogue, a 2010 graduate of Lenox points during their coursework. High School, is the son of Matt and SWCCâ&#x20AC;&#x2122;s auto collision repair/refinColeen Hogue of Lenox. Mullen, a ish program is based on the I-CAR 2012 graduate of Clarinda High School, Enhanced Delivery curriculum with is the son of Bill and Diane Mullen of valuable hands-on experiences in the New Market. classroom. Courses are taught by Southwestern is one of 11 com- ASE-certified instructors who have munity colleges in Iowa with auto- platinum level I-CAR designations.

Joseph Lee Grady, 68, Passes Away in Lodi in May

Joseph Lee Grady, age 68, passed away unexpectedly at his home on Saturday, May 17, 2014. He was born on Sept. 12, 1945, in Madison, the son of Donald Joseph and Ila Mae (Lewis) Grady. Joseph loved car shows, tinkering in his garage, and his classic Dodge cars. He worked for various auto body shops, starting at Chief Auto Body before opening his own shop, JLG enterprises, in Harmony Grove, in the early 80s. Joseph retired in 2002. His greatest joy was spending time with his family and friends. Joseph had a true soft spot for his grandchildren and a special love for his dogs and cats. He is survived by his wife, Sandy; children, Michael (Shelley) Grady, Laura (Jeff) Veloff, Carla (Randy) Kreger, Tracy Webb, Terry (Allison) Webb and Tricia (Larry) Wickham; 14 grandchildren; one great-grandchild; three sisters, Amber (Bob) Fluckinger, Genieve (Carl) Syftestad and Karen (Jock) Pautzke; and sister-in-law, Lynne Grady. Joseph was preceded in death by his parents; and brother, Donovan Grady. Online condolences may be made at www.gundersonfh.com.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 9

Farmers Drops Climate Change Lawsuits in Chicago

IL Shop Owner Posts 20-min Video of FPB for Panel Fixes

Farmers Insurance Group has dropped lawsuits against 200 Chicago-area communities, reports the Chicago Tribune. The insurer claimed the communities did not do enough to prevent widespread flooding in the areas in April 2013. The class-action suits sought to make the local governments reimburse Farmers for claims it paid out to more than 600 property owners in the communities. The insurer argued that public agencies should have taken more preventative measures to avert damage caused by the record-breaking floods, such as emptying reservoirs before the rains hit, says the Tribune. But now, less than two months after the suit was filed, Farmers has withdrawn it. “We believe our lawsuit brought important issues to the attention of the respective cities and counties, and that our policyholders’ interestes will be protected by the local governments going forward,” says Trent Frager, a spokesperson for Farmers, in a statement. Frager says the company does not intend to refile the suits, says the Tribune.

Russ Hoernis of Hoernis Auto Body in Belleville, IL, has created a 20-minute video and posted it on YouTube to demonstrate all of the steps in the feather, prime and block procedure that must be performed to bring a repair panel back to a new, undamaged one. “Feather, prime and block is a refinish operation that for years has been snubbed by the insurance industry as either an included operation in repair times, or they have just been unwilling to compensate shops for the work and materials utilized. I have researched the CCC, Audatex and Mitchell manuals, and each estimating system has independently stated that feather, prime and block is a necessary operation that must be performed to bring a repaired part back to a new, undamaged panel. Each manual also clearly states that published refinish times are for new, undamaged panels.” After documenting the entire operation, Hoernis goes over the labor and materials used and ultimately calculates that not getting paid for this results in roughly $50,000 per year in lost revenue to his shop. Hoernis concludes the video by saying, “I hope for whoever is watching that this clarifies some of the issues we are up against.”

Insurer-Sponsored Hail Damage Centers in Iowa

SEMA Garage Now Features Photo Cove

Auto insurers in Sioux Falls, IA, set up catastrophe centers to streamline the claims process for residents whose vehicles were damaged by hail in June 5’s damaging thunderstorms. Thousands of vehicles were battered in what some auto insurers expect to be one of their largest ever claims in the city. Catastrophe centers analyze hail damage and adjust claims to be turned into auto body dealers at the time of repairs. The details still were being finalized June 6. American Family Insurance started assessing damage by appointment at the American Family Insurance district office at 4004 W. 49th St. starting Sunday. Farmers Insurance set up near ABRA Auto Body & Glass at 4001 W. 34th St. to see customers, also by appointment. State Farm Insurance also planned to have a catastrophe center up and running.

@autobodynews Accept no Substitutes!

The photo cove in the SEMA Garage—Industry Innovations Center opened for business last month, as celebrity builders Pete Chapouris and Jimmy Shine of So-Cal Speed Shop utilized the studio to photograph a celebrated project car they are building for rock guitarist Billy Gibbons. Large enough to fit a fullsize vehicle and complete with a 30”x10” adjustable light box, the photo cove will help SEMA members develop low-cost, professional marketing pieces for their new products. SEMA Garage services include a training facility, an emissions-certification lab and chassis dyno. “The SEMA Garage is able to help SEMA members throughout the entire product development cycle,” said Mike Spagnola, SEMA VP of OEM and Product Development Programs. Spagnola says that members can measure new vehicles for products using a portable coordinate measuring machine (CMM). A prototype can then be developed from SEMA’s 3D printer, before being tested in the dyno and emissions lab. “The SEMA Garage can literally cut the entire product development process down to six weeks,” said Spagnola.

10 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Dusty’s Collision Project Goes to Council in Ann Arbor, MI

A site plan for Dusty’s Collision at 2310 South Industrial Highway, south of Jewett, was recommended for approval at the Ann Arbor planning commission’s June 3, 2014 meeting. The proposal calls for building a 30,537-square-foot, onestory auto collision repair facility on a parcel that’s currently vacant. A previous building at that location was torn down in 2013. The new building would include 5,285 square feet for office use, a waiting area of 5,227 square feet, and 20,025 square feet for the repair area and garage. The project is estimated to cost $2 million. The site will include 106 spaces of exterior parking, including 24 spaces that will be deferred until needed, according to the staff memo. One bicycle hoop – for 2 bike parking spaces – will be located near the front of the building. The recommendation is contingent on the owner, Whitney’s Collision West of Ann Arbor, providing one footing drain disconnect before the city issues a certificate of occupancy. The project will be forwarded to city council for consideration.

www.autobodynews.com

OCC Collision Repair Tech Center Breaks Ground in IL

State and local officials attend a groundbreaking ceremony Wednesday for a new $1.1 million Collision Repair Technology Center at Olney Central College, 305 N West St, Olney, IL. Illinois Capital Development Board (CDB) and school officials were among those attending the event. The construction project is being funded by Gov. Pat Quinn’s Illinois Jobs Now! construction program. The project will be overseen by CDB, the state’s construction management agency. The new center will be just to the east of the current Collision Repair Technology building. According to information from the CDB, the 8,000-square-foot Collision Repair Technology Center will include 4,400 square feet of classroom and laboratory space for the college’s Collision Repair Technology program, as well as expanded laboratory opportunities for the Automotive Service Technology and Welding programs. The construction project involves four contracts. Shores Builders, Inc. of Centralia was the lowest of four bidders for the general construction work with a quote of $711,156.

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4475 Merle Hay Road · Des Moines IA 50310 www.autobodynews.com | JULY 2014 AUTOBODY NEWS 11

VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition unique vehicle, but while it’s easy to match these labels to a specific vehicle Whether you’ve struggled with the on the production line, manufacturers need to replace automotive VIN and are not equipped to replace a single safety labels or if you’ve never given custom label after the car leaves their them a second thought, the fact re- plant. That’s where AutomotiveID mains that federal law mandates these comes in! Automotive ID launched in 2007 labels be permanently affixed to every to fill this need within the collision repair industry. One-of-a-kind VIN and safety labels were not being replaced and, at best, were being cut out and stuffed in the glove box. The company’s sole business is the production of these unique VIN and Safety certification Installing a replacement Tire & Load label will ensure your customers know how to maintain their vehicles and conlabels, and AutomotiveID tribute to their overall safety supplies collision repair favehicle, yet they’re the part least cilities in every state in the U.S. as likely to be fixed during a repair! well as throughout Canada. Manufacturers rely on both the safety As a provider of aftermarket aucertification label and the tire-and- tomotive labels to the collision repair load label to convey important safety industry, AutomotiveID produces information to drivers. These labels high-quality labels for all makes and are customized with the VIN and models of cars and light trucks, almonth/year of manufacture for each lowing their replacement to go from by Chasidy Rae Sisk

12 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

nearly impossible to one of the easiest tom VIN and Safety certification laparts to replace. Beyond the simple bels. Besides the safety factors menneed to restore a vehicle to its pre-loss tioned, AutomotiveID’s labels also condition, replacing these labels is im- help consumers maintain the value of perative because they instruct drivers their vehicles as appraisers typically on how to handle and maintain their vehicles, including tire inflation recommendations and load limits, both of which are extremely important since ignoring these ratings can lead to dangerous wrecks; this is why the National Highway Transportation Safety Administration (NHTSA) insists the information contained on these labels AutomotiveID’s replacement BMW certification label conis critical to public safety. tains the same information as the manufacturer's original For collision repair facilities, the discount trade-ins with missing labels since the absence of these labels limit benefits of restoring a vehicle to its their knowledge of the vehicle. pre-loss condition by using AutomoAutomotiveID’s replacement lativeID’s labels is obvious, but because insurance companies also recognize bels fulfill many needs to the benefit of the benefit of maintaining the safety all vested parties. In addition to providof their customer’s vehicle and the ing federal regulation compliance of repaired vehicles, these labels preserve value of their own insurable interest, the value of the vehicles, provide necshops can finally get paid for doing essary tracking information, and supply the right thing and replacing these cus-

the repair facility with incremental revenue and compensation on work for which they haven’t traditionally received payment. Each party in the collision repair industry has different, yet valid, reasons for recognizing the importance of replacing vehicle labels, but the predominant concern relates to public safety, and AutomotiveID’s services undeniably contribute to this factor. AutomotiveID offers a complete line of automotive labels, including certification, service parts, tire and loading, emission control, paint and trim, anti-theft and all other aftermarket labels that are typically difficult to find. All of their replacement labels meet the standards set forth by the NHTSA, and AutomotiveID enters all information by hand to ensure accuracy as part of their thorough process of quality control and independent verification procedures. So how do you order replacement labels from AutomotiveID? Easily because it’s all done online! Simply visit their secure website, complete the order form, and upload a photograph of the original label. AutomotiveID will enter the necessary information and print a new label which you can receive as early as the

next business day. AutomotiveID’s replacement labels adhere to all NHTSA content standards, contain the exact information as the original label, including fully functional bar codes, and are permanent and weatherproof. With their industry-leading, webbased ordering and rapid return processes, AutomotiveID ensures their replacement labels are the “easiest part to put back on,” so what are you waiting for? Visit their website and restore the vehicles in your shop to their preloss condition today!

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Collision Repair Among Ed Programs to Be Cut in KY

Citing a grave financial situation in the Fleming County, Kentucky schools, Commissioner of Education Terry Holliday has imposed a series of dramatic cuts to the 2014-15 school year budget. Holliday has proposed cuts totaling nearly $350,000. Holliday is also proposing the elimination of teaching positions in the fields of agriculture, business, family and consumer services, telemedia technology, autobody/ collision repair, Spanish, physical education, and the cutting of three stipends for agriculture teachers. Holliday’s letter stated that the decision to make these cuts was not taken lightly and was made to ensure that the high school would continue to function in a “responsible manner, while addressing the needs of all students appropriately.” This statement leads one to ask just how removing teaching positions will appropriately benefit the needs of the student population. The budget cuts were discussed at a standing-room only meeting held by Superintendent Price on May 5. Many in the crowd voiced strong opposition to the cuts. As cited in the Ledger Independent, a discussion erupted between teacher Bobby Pease and local business owner Adam Hinton, who

both opposed the laying off of an agricultural teacher. They asserted that they would acquire the $60,000 necessary to keep the teacher on for the following school year. Jim Hamm, the Kentucky Department of Education representative, replied that it would have to go through Holliday before they could accept the money. A participant in the meeting asked Hamm, “We can receive money from the state, but it can’t come from our own people? Why can’t we just give them the money?” On May 7, two days after the meeting, 400 Fleming County High School students staged a walkout to oppose the cuts and firings. John Johnson, a junior who led the walkout at the school, was quoted in the Lexington Herald Leader: “We feel like it’s an unfair decision to remove Mr. Leet. He’s done nothing wrong. He’s done nothing but good in the school system.” Freshman Destiny Harmon told the Ledger Independent: “We are standing up to the state, because it’s not right. They can’t come in here and tell us to get rid of good teachers and a good principal.” Freshman Shayla Sparks added, “Firing our teachers is taking our lifeguards.”

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 13

Historical Snapshot with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and 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.

Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and OEConnection 20 years ago in the collision repair industry (July 1994) If the collision repair industry does not get clearly focused on what the mission is, it will be doomed to dance to whatever tune the insurance industry wants. Probably something like that old AC/DC hit, “Highway to Hell.” Bill Clinton was elected president of the United States because he kept the country focused on the economy. (His slogan, “It’s the economy, stupid,” became famous. To win in their ongoing economic struggle with the insurance industry, collision repairers have to concentrate on the car owner. “It’s the car owner, stupid.” Collision repairers are too busy tripping over their own swords to realize that pleasing the car owner every time is a key to survival. Instead, many are more worried about pleasing the insurance companies. They claim that since it’s the insurance companies who are writing the checks, it’s the insurance companies they should be satisfying. Ultimately, though, it’s the car owners who write the checks. They, after all, pay the insurance premiums. I predict that in another 10 year, the American public is going to wake up and realize how monstrous a financial institution the insurance industry has become. – excerpted from editorial by Sheila Loftus, editor of Hammer & Dolly published by the Washington (D.C.) Metropolitan Auto Body Association, July 1994

15 years ago in the collision repair industry (July 1999) CIC’s “Research and Development Committee” is continuing its exploration of a ”new body shop operating model” to improve customer service and “cycle time” – the length of time between the accident and the time repairs are completed and the insurance file is closed. At the meeting in July, committee chairman Randy Stabler said the average repair claims process is 10 days – including four or five days before repairs begin. His committee, he said, is looking into ways to reduce the inefficiencies before repairs actually begin, including the current estimating process. “All of the things that are bottle-

necks in the repair process are a derivative of an inaccurate estimating system,” Stabler said. “The back-end repair process is never going to be efficient and accurate if we don’t start out with an accurate blueprint.” Among his committee’s initial recommendations are: - Improve the estimating systems so that they create that “blueprint for repair” in plain language easily understood by technicians and vehicle owners. “If the estimate is more than just an accounting of what we’re going to charge or pay to fix the car, I think we’re going to have faster cycle times, happier consumers and lower overall costs for everyone,” Stabler said. - Reduce inconsistency in parts names and labor terminology used by the estimating systems and vehicle manufacturers. - Eliminate confusion and inefficiencies by having insurers distribute their pricing guidelines. - Stop insurer “micro-management” of each individual repair charge. “Can you imagine someone going in for surgery, and the doctors finding something else that needed to be done but not doing it because they had to stop and call for authorization?” Stabler said. “That’s not an efficient model. ‘Pull it and we’ll come back and see the damage after it’s pulled’ is a flawed notion. That in the long run does not save the insurer or consumer money.” – As reported in The Golden Eagle. It was at least five years before the “blueprinting” aspect of “lean processing” was being widely discussed in the industry, and still 15 years later it is far from universally adopted by shops.

10 years ago in the collision repair industry (July 2004) The Collision Industry Conference (CIC) “Information Technology Committee” reported that rekeying estimates that shops could be receiving electronically from insurers is costing the industry an estimated $17 million or more each year. Based on a survey of 44 shop owners at a previous CIC meeting, the committee believes that about 28 percent of the 9 million auto claims require rekeying of estimates, which takes an average

14 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

of 21 to 33 minutes per estimate. Assuming a wage of $20 per hour for the shop employees rekeying the estimates, “that basically says there are 2.52 million estimates that are rekeyed each year by body shops, costing a minimum of $17.64 million,” Cindy Schnier, cochairman of the committee, said. –As reported in Autobody News, July 2004. In 2013, CCC Information Services and Mitchell International launched services that enable a participating insurer to enable shops not on that insurer’s DRP to download the insurer’s prepared estimate, eliminating the need for the shop to rekey the initial estimate.

5 years ago in the collision repair industry (July 2009) Shop owner response was mixed last week to the announcement by State Farm that it was no longer requiring its Select Service shops in California and Indiana to use OEConnection for electronic parts ordering.

Debbie Moore of Diamond Collision Services in Avon, Ind., said that despite some glitches with the system over the past year, it has eventually worked well for the shop. “We’ve been using it on all our orders, not just State Farm jobs, and will continue to do so at least for now,” she said. But a Southern California shop owner who asked not to be identified said State Farm’s decision came at an ideal time; his shop’s server had just crashed and he now wouldn’t have to reload the OEConnection parts ordering software on the replacement computer. “It’s kind of been a pain, and some of my dealers really didn’t want to mess with it,” he said of the parts ordering system. “You almost always had to do follow-up phone calls (to the dealer) with it, so if I have to do that anyway, I can do without it.” State Farm’s George Avery said alSee Historical Snapshot, Page 34

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 15

I-CAR Gold Class and ASE-Certified Shops Rewarded at NACE | CARS

NACE | CARS, held at COBO Center in Detroit July 30-Aug. 2, will offer special recognition to attendees who have a proven commitment to collision repair training demonstrated through

achievement of I-CAR Gold Class recognition or ASE Blue Seal certification. Collision and Service Repair facility personnel that belong to an I-CAR Gold Class business or hold the ASE Blue Seal certification will receive a 50 percent discount on the training and conference sessions at NACE | CARS

2014. In addition, any individual that is currently I-CAR Platinum or an ASE Master Technician will be entitled to the same 50 percent discount. This discount includes individual sessions through the Super Pass that covers sessions during the entire conference. “We want those who have achieved the highest levels of industry-recognized training and certification to be rewarded for their achievements,” stated Dan Risley, ASA president and executive director. “This is a great way to highlight an elite group and to encourage their ongoing technical and business education.” “As technology advancements dictate a necessary evolution in repairability, more collision repair businesses than ever are adopting a learning culture to ensure that they are able to per-

form safe and quality repairs,” stressed John Van Alstyne, I-CAR CEO and president. “I applaud NACE and CARS for recognizing this commitment to education and knowledge by giving back to the businesses and individuals who train.”

“ASE’s relationship with NACE and CARS goes back to the very beginning of the event, and we are pleased to once again be a part of this significant educational opportunity for the industry,” said Tony Molla, ASE vice presi-

MERA Joins the Excitement at NACE | CARS 2014 The Motor Equipment Remanufacturers Association (MERA) has joined a growing coalition of leading organizations supporting NACE | CARS 2014 Industry Week in Detroit this summer. MERA will host a Remanufacturing Technology Expo on Thursday, July 31, from 10:00 am-4:00 pm in the Ambassador Ball-

room in the COBO Convention Center. Dan Risley, ASA president and executive director, stated, “We are excited to have MERA join us in Detroit. This is a very important organization in the automotive market and their participation, content, and attendance is beneficial to Industry Week. The overriding purpose

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of the event is to bring the industry together, and MERA’s involvement further solidifies our goal of deeper market coverage.” “Remanufactured parts offer likenew quality and real value that technicians and end users can trust,” said John Chalifoux, president and COO, MERA. “Dur-

dent of communications. “We also salute the efforts to encourage professionalism with this generous discount program for our ASE certified professionals and the businesses that employ them.” Registration is now open for NACE | CARS and hotel reservations can be made via the Travel section of the website, www.NACEexpo.com or www.CARSevent.com for the week of July 27 and all events taking place during “Industry Week” in Detroit. Now in its 32nd year, NACE|CARS will feature numerous opportunities for technical training, business education, demonstrations, networking and technology showcases for stakeholders, owners, managers and technicians in the collision and service repair industries.

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ing the MERA Remanufacturing Technology Expo, members will showcase the advanced methods they use to restore core components to original—or better—condition and performance.” Registration information and the agenda is available at MERA.org/techexpo.

Women’s Industry Network Celebrates Excellence In Leadership and the Formal Transition of the ‘Most Influential Women’ Program to WIN The prestigious Most Influential Women in Collision Repair (MIW) Awards were presented to three women during a celebratory dinner in San Diego during the Women’s Industry Network (WIN) Conference. The MIW Awards recognize women who have enriched the collision repair industry with their leadership, vision, and commitment to excellence. Doug Holmberg, representing AkzoNobel, formally transitioned the MIW program to Margaret Knell, Chair of WIN, by giving WIN a framed issue of AkzoNobel’s Profit Magazine with a commemorative note officially marking the transition. Profit Magazine has highlighted Most Influential Women honorees since inception of the award. This year’s honorees were Frederica Carter, President of F. Carter Events, LLC; Jordan Hendler, Executive Director of the Washington Metropolitan Auto Body Association; and Leanne Jefferies, Director of Collision Programs at AIA Canada. Each honoree was introduced by an industry peer and former MIW who nominated them for the award. In a welcome message, Knell thanked those being honored as well as award recipients from prior years, “for your visibility and ongoing

example of most influential women in the collision repair industry by your leadership, vision, and commitment to excellence—both in your professions and in your communities.” She then recognized AkzoNobel for their vision

Margaret Knell and Doug Holmberg

and elevation of the societal issue of the advancement of women in the collision repair industry. The recognition program's charter aligns with WIN’s mission to ‘enhance the role of women in the industry’ and has recognized more than 75 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. Honorees have held positions in every facet of the collision repair industry, as shop owners, body and paint technicians, man-

agers, wholesalers, lobbyists, suppliers, insurance adjusters, consultants, educators, editors and writers, and industry association directors. Established in 1999 by AkzoNobel, WIN assumed management of the MIW program in 2013. The Most Influential Women program has supported the industry by funding scholarships for prospective female students interested in pursuing a career in collision repair. “The Women’s Industry Network has, in a very short period of time, become a pillar association within the North American collision repair market,” said Doug Holmberg, Director of Vehicle Refinishes for AkzoNobel Automotive & Aerospace Coatings North America. “It was both a pleasure and honor for AkzoNobel to be part of the 2014 WIN Conference and formally transition the Most Influential Women in the Collision Repair Industry program from our stewardship to WIN for their continued mentoring. WIN will be able to advance MIW and create sustainable resources to the full benefit of the entire collision repair industry.” To learn more about WIN and the MIW Awards, or to see a list of past recipients, visit http://thewomensindustrynetwork.ning.com.

Fix Auto Acquires Alaska Shops

Fix Auto USA continues expansion in the Western United States with the introduction of five locations in Alaska, bringing the total number of Fix Auto franchises to 59. This marks the first time Fix Auto has ventured into the Alaskan market. “We’re ecstatic to join this elite and exclusive brand of high caliber operators as we adapt to shifting market dynamics,” said Tony Stanley, who along with his wife Mel are the owners of the Fix Auto Alaskan franchise group, formerly Driven Auto Body.

AMI to Honor New Managers

The Automotive Management Institute (AMI) will honor its 20th class of Accredited Automotive Managers (AAMs) with a formal cap and gown ceremony on Aug. 1 during the new Industry Week 2014 July 28-Aug. 2 at the COBO Center in Detroit. The AAM designation is awarded after they successfully complete coursework and earn 120 credits of management education. More than 1,700 individuals have earned the AAM designation and approximately 100 new graduates are added each year. For more go to www.AMIonline.org.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 17

Midwest Associations with Chasidy Rae Sisk

ASC-KY Views Shop Autonomy and Consumer Advocacy as Top Priorities One of the overarching problems in the modern collision repair industry is the interference from third party entities and how this infringes on the rights of both collision repair facilities and the consumers. Trade associations across the country are taking a stand against these attempts, and the Automotive Service Council of Kentucky (ASCKY) is no different. Ron Stamm, Pres-

adhering to the Code of Ethics.” Those interested in joining ASCKY must read and agree to their Code of Ethics before becoming a member of the association. There are two components to the Code, one directed towards the consumer and the other toward the industry at-large. ASC-KY members promise their customers that they will do the following: uphold the highest standards in the professional diagnosis, service and repair of vehicles by employing the best professional personnel and using state-of-the-art equipment; offer valid written estimates and keep the customer aware of any changes in the repair process; confirm to all applicable state and local laws; maintain a sense of personal obligation to their customers; and maintain methods to Ron Stamm, President of ASC-KY, conducts a meeting resolve any customer complaints. of ther association, focusing on the importance of The association’s promises to the shop autonomy and consumer advocacy automotive industry include upident of ASC-KY and owner of Fort holding the highest standards of the Mitchell Garage in Park Hills, a family industry, attempting to correct abuses owned and operated shop for four genwithin the automotive community, erations, explains why this is such a being aware and proactive in response concern and shares how the association to changing technology and legislahopes to aid in the fight against these tion, and upholding the integrity of all problems. ASC members. ASC-KY was founded in 1961 as ASC-KY believes consumer adan affiliate member of the Independent vocacy is a very important part of their Garage Owners Association (IGOA), role because “individual consumers an association comprised of shops from increasingly bear the safety risks and 11 Midwestern states which was estabeconomic burden arising from adverse lished in Joplin, MO in 1954. IGOA inevents with vehicles. Consumers frecluded members from all facets of the quently suffer from the devaluation of automotive repair industry, including their vehicle caused by damage, theft, collision, mechanical, glass and frame warranty issues and other events, even shops as well as towing companies. in circumstances where they were not Eventually, IGOA changed their name responsible for the condition decreasto the Automotive Service Council ing the value.” (ASC), and the Kentucky affiliate folA large problem with this is that lowed suit, becoming ASC-KY. many consumers are unaware of the According to Stamm, the associ- minimal amount of laws regulating reation’s original missions were “to pair standards; in particular, the state train, test and register automotive of KY has no requirements dictating technicians, to promote a code of that shops be licensed or mandating a ethics to better serve the consumer, minimum level of training, education and to bring a higher level of profes- or certification for technicians. Besionalism to the automotive repair in- cause of this, many shops feel comdustry. Since then, other entities like pelled by insurer dictates on repair ASE and I-CAR have evolved to fill techniques and standards. As such, the training and certification roles, ASC-KY collaborates with national [but] the overarching mission is still associations to train and educate KY the same: to protect the consumer by shop owners, and they implore their

18 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

members to uphold the highest repair standards and to invest in the most upto-date equipment and technology that is available. As part of this initiative, ASC-KY has a section of their website devoted to explaining consumer rights, such as the right to choose the collision repair facility where their vehicle is restored, as well as how estimates work. Because “all the members of the Automotive Services Council of Kentucky would like to provide the general public with as much information as possible to educate our visitors about common questions that occur when an automobile accident happens,” their FAQ section also offers educational value on the topics of aftermarket parts compared to manufacturer parts, total loss settlements, and diminished value claims. The association aids consumers by explaining the proper steps to take if they find themselves in an accident, and their information about fil-

ing complaints culminates with a link to the KY Department of Insurance where such complaints can be filed. In addition to consumer advocacy, ASC-KY also places a lot of emphasis on supporting the autonomy of collision repair facilities, reflected in their current goals which Stamm explains as “to fight the insurance industry’s attempts to implement their own parts procurement plans [and] to promote the rights of every shop to operate as an autonomous entity without outside interference.” For example, the association views PartsTrader as “another attack on the autonomy and profitability of collision repair shops.” Currently, ASC-KY is working on several major issues impacting the collision repair industry, and though they cannot discuss the specifics of any legislative initiatives at this time, ASC-KY “believes that legislation is See Shop Autonomy, Page 30

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Continued from Cover

Three-C Body Shops

a $10,000 estimate on a car valued at $11,000 and the insurer’s adjuster estimates $4000 in damages, the shop has to perform many additional steps as part of the process of writing a thorough estimate. Moving the disabled vehicle, disassembly, taking inventory of parts, recycling hazardous waste, and performing a comprehensive safety check to test for damages are just a few of the many steps needed in order to document the car as a total loss; however, when the adjuster returns to discuss the estimate and declares the vehicles to be a total loss, State Farm only wants to pay the cost of storage and a few minimal charges, though all of these processes are required. Other processes which Juniper feels shops should be aware that they can charge for include suspension checks, rough access, preparing the pack-totaled vehicle, glass clean-up, and labor. Meanwhile, Three-C has time associated with the estimate for which they expect (and deserve) to be compensated since they’ve lost time being involved with a job they aren’t being paid for, yet State Farm wants to pay only the minimum charges. Juniper explains, “our charges are necessary to offset our lost opportunity. When we’re working on these total losses, that’s time we can’t work on jobs where we could make money, but the insurer does not want to understand that—that’s why we have to sue them. Other shops also have to perform these steps, and they should ask why they’re not getting paid for all of their time and hard work!” Over the past three decades, Juniper has been an active voice in the industry, speaking out against insurers and their attempts to exert control over the repair process. “Insurers have been beating on body shops for many years. They used to just pay the bill, but over the years, they’ve decided that they don’t want to pay the labor times and rates. Instead, they want to argue about which steps are necessary be-

cause they are trying to control the repair itself. This industry has been beat down so far that many shops are going out of business; insurers have found the bottom on pricing and can’t push anymore because there’s nothing left. We have to charge them for our time because we can’t afford to work for free!” Though Juniper admits that his relationship with State Farm is currently less than perfect due to the pending lawsuits, he hopes that will

Three-C Body Shops has specific areas to interact with and educate customers

change after matters are settled. He also believes that he is taking a necessary step towards preventing shortpays in the future. “Nationally, there are over 70 body shops with pending shortpay lawsuits right now, and we need to win these battles to change things. With enough victories, maybe the insurers will change their behavior.” Three-C Body Shops asks their customers to sign documents, such as the Authorization to Repair and Assignment of Proceeds, to enable them to pursue proper compensation when the need arises. Juniper explains that they “involve the vehicle owner instead of dealing with the insurance company directly because the insurer is bound by a contract with the insured, but the problem is that many consumers don’t know the laws. Some are savvy, but others don’t understand or want to be involved; that’s what the insurers take advantage of and the reason that lawsuits are necessary… It’s not convenient, but this still has to happen. I don’t see any other alternative.” A family-owned business since opening in 1956, Three-C Body Shops works on around 250 vehi-

Free Twice Monthly Newsletter at www.autobodynews.com 22 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

cles monthly, yielding $700,000 to $800,000 in sales. They have never participated in DRPs because when the insurers introduced these programs in the early 1990s, Juniper foresaw the negative aspects associated with them, predicting that they would start off good and get worse over time. Though he spoke out against DRPs, the industry moved forward, and he believes “most DRP shops now wish they’d never gotten involved, but we weren’t loud enough with our objections. DRPs have caused many body shops to go out of business. Once you’re dependent on them, you can’t afford to lose them—you’re unable to walk away because you’ve become reliant on the insurance companies.” Now, Juniper fears that insurers are using parts procurement systems, such as PartsTrader, to exert even more control over repairs, and he worries that insurers will take over parts distribution also, leaving shops as labor providers only and inhibiting them from supplementing their incomes with the price of parts. Because of this, many shops will be unable to pay some of their personnel, such as office staff, customer service teams

and detailers, whose salaries aren’t paid by the estimates but by parts profits. “If the insurers absorb this discount, we won’t be able to afford these employees, so customer service will decline, and that will be the beginning of the next big problem for our industry,” Juniper predicts. Juniper notes that the industry did not stand up for themselves when DRPs were developed and they have since regretted it; he believes the industry will really regret it if they do not step up to inhibit parts procurement as it will lead to poor customer service in the collision repair industry, forcing repairers into a position where they are not making any money and may be unable to pay their bills. He asks “when and where does the collision industry say no? Because it’s time!” A State Farm spokesman was invited to comment but declined due to unfamiliarity with the specifics of the cases. Autobody News will continue to invite comment on this story for future issues.

www.autobodynews.com CHECK IT OUT!

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 23

Niebling Auto Body: 120 Years and Still Going Strong in Missouri

It all began when Louis Niebling immigrated to the U.S. and moved to If a body shop is in existence for more West St Louis in 1887. Horses, wagons than 30 years, people view it as a suc- and carriages ( and good old walking) cessful business and justifiably so. were the mainstays of transportation But, if a shop has been in continuous back then, as the industrial revolution operation for more than 120 years— shifted into high gear. Gasoline-powwell, now it’s more like a landmark ered vehicles were only for the rich and and a big part of automotive history. eccentric in the late 1800’s, just like the And that’s why folks in Missouri and Teslas or Bentleys of today. Sure, automobiles were only for a select few back then, but the times were a-changing and pretty soon everyone wanted one of these noisy, cantankerous and expensive machines. At the beginning, the shop was busy and flourishing, but then a tornado hit hard and completely destroyed Niebling’s business in 1895. But, it didn’t faze him one iota, Niebling Auto Body opens its doors back in 1892 in St. Louis, MO and pretty soon Niebling throughout the country know of started up again, building a new twoNiebling Auto Body, because it’s been story shop. A decade later, Niebling’s a household name since 1892, when a shop was building truck bodies for German wagon maker opened his own Mack’s five-ton capacity trucks, in which the driver sat over the engine, wagon shop in St. Louis, MO. by Ed Attanasio

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and pretty soon wagons and carriages were no longer a business focus for Niebling and his crew. A year later, the city had its own car manufacturer when the St. Louis Car Company started producing the American Mors under license from a French company. Soon, Louis Niebling Carriage and Wagon Manufacturing was constructing car bodies for the Mors. At a time when the average salary was around $40 a month, the Mors cost between $3,000 and $6,000. The Mors line was eventually discontinued, but Niebling kept moving forward and looking for another dependable source of revenue. By re-inventing his business model once again in 1918, Nielbling began manufacturing wooden truck bodies while his shop grew to 13 employees. These wooden trucks were built to order in the days before customization was prevalent. Customers brought in a bare chassis with a dashboard and a hood and Niebling built the body based on the owner’s specifications. On the shop’s ground floor, there was a carpentry shop, blacksmith shop and assembly area. Each

completed body was sent to the second floor by a hand-operated elevator. There, the trim shop made cloth tops and upholstery as well as completing the necessary painting.

Dave Dolphus has been running Niebling Auto Body since 2008

At about the same time, Louis Niebling’s son, Erwin, joined the business and subsequently focused more on mechanical repair. The wagon-making business dwindled rapidly and Erwin decided to move the shop to a more residential neighborhood in 1927. His two sons, Warren and Ray had grown up in that shop and then joined him in the business at the end of World War II. When Erwin retired, the sons remained partners and expanded by opening a body shop operation under Warren’s

management in 1968. Warren and Ray both had sons and like their fathers and grandfathers, they grew up in the family business Jim with Warren in the body shop and Tom with Ray in the mechanical shop. When Warren and Ray retired in 1986, Tom and Jim became the managing partners. Jim passed away in 2010 and his cousin, Dave Dolphus (who has worked at Niebling Auto Body since 1985), now manages the operation. Dolphus, 59, is what they call a “lifer” in the collision repair industry. He’s been running the show at Niebling for the past five years after working there for 30 years. Today, he manages 14 people as they fix 65-80 cars monthly. Dolphus has a Masters Degree in Public Policy and Administration, so his career plan surely didn’t involve collision repair, at least at the outset. “Getting involved in this industry was the furthest thing from my mind,” Dolphus said. “But one day, my cousin asked me to come in and help and I guess I wasn’t paying attention, because I just kept staying here. At first, I was doing paperwork and handling supplements and to be honest I was looking for the door. But, eventually I learned the business side

of auto repair and realized that this was going to be my job for the long-term.” Dolphus has seen the collision game change several times during the three decades he’s been in it, he said. “Back in the 1980’s, we could make good money by just opening our doors, but no longer. We have a lot of competition now and everyone is vying for these cars. To make it today, you have to con-

as far as we’re concerned. We’re always looking outside the DRPs for customers that are ours, instead of theirs. DRPs changed several years ago requiring discounts on parts and paint caps and at that point we decided to cut them back to a certain degree.” After 120 years, Niebling Auto Body is still a fixture in St. Louis and there are no plans to alter their formula for uninterrupted success, Dolphus explained. “We’re not going anywhere anytime soon. We have a few managers here that are exceptional and when the time is right for me to step back, I am pretty confident that they can take the reins and do very well. There have been numerous changes in this industry, especially within the Today, Niebling Auto Body is still a fixture in St. Louis, MO last 15-20 years, but we’ve centrate on things like training, certificabeen able to adapt to them and benefittions, the technology, marketing and ted from many of them. Things like community involvement, for example.” personal computers, aluminum in these The relationships with insurance newer cars and other innovations have companies have changed over the years impacted this business. But in the end, as well, according to Dolphus. “We it’s still about doing a good, honest job work with several insurance companies for our customers. Those types of and DRPs and it makes up around 40% things are timeless and they will never of our workload, which is still too much change.”

AutoZone Names Dornan Products Vendor of the Year

AutoZone, Inc., a leading distributor of auto parts and accessories, recognized Dorman Products, Inc. as its Vendor of the Year during the company’s annual AutoZone Vendor Summit held in Memphis, Tennessee. “Dorman exemplifies an industry-leading vendor. The Dorman organization is dedicated to innovation, collaboration and speed to market,” said Bill Rhodes, President and CEO of AutoZone. AutoZone also recognized a group of suppliers with the company’s Extra Miler Award.

Ohio Appeals Court OK’s Line Measurement for Dealership

An Ohio appeals court on June 12 upheld a lower court’s ruling in a dispute between two Nissan Motor Co. Ltd. dealerships contesting the proper method of measuring the distance between an established dealership and a proposed one, saying it can be calculated by measuring a straight line between the two spots. The three-judge panel affirmed the trial court’s judgment in favor of M6 Motors Inc., owner of Nissan of Middleburg Heights.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 25

Midwest Associations with Chasidy Rae Sisk

ASA-Midwest—Take Me Out to the Ballgame! On Tuesday, June 10, the Springfield Chapter of ASA-Midwest held their Annual Industry Night at the Ballpark with over 30 association members and their families visiting Hammons Field to root for the Springfield Cardinals. The evening of baseball included a networking picnic at the ballpark, game tickets and a Springfield Cardinals baseball cap. Sheri Hamilton, Executive Director of the association, notes “ASA-Midwest was very pleased with the outcome of the event. We had an impressive turnout, our members had a great time, and the home team won!” Hamilton explains “we organize the baseball outings to bring the automotive service community together for a fun night out. There is time for networking, but it is also a setting conducive to a relaxed, enjoyable evening for shop owners, employees and their families. We had a great response to this event with positive feedback from those who attended. This event has be-

come an annual outing for the Springfield Chapter, and we look forward to continuing it in coming years.” Other chapters of ASA-Midwest have followed suit and begun holding similar events. Their St. Louis Chapter held their own Industry Night at the Ball-

ASA-MW's St. Louis Chapter Enjoys a Night at the Ballpark

park on June 2nd when they cheered on the St. Louis Cardinals, and the Des Moines Chapter will also be holding a similar event, their first Ballpark Night, on July 12th in order to enjoy an evening

Service King Collision Repair Centers Finalizes Sterling Collision Centers Acquisition Service King Collision Repair Centers has announced that it has finalized the acquisition of Sterling Collision Centers. Service King now operates 175 locations across 20 states. The company says that the acquisition supports Service King’s robust growth strategy and further strengthens its position as the premier provider of high-quality collision repair backed with exceptional customer service. “Acquiring a company like Sterling Collision Centers is about more than expanding our network with bricks and mortar. The strength of our organization lies within our people and we are extremely excited to welcome the very talented Sterling team to the Service King family,” said Chris Abraham, CEO of Service King. “Service King has offered consumers a superior collision repair experience for more than 38 years and we are well positioned to grow that legacy with what I believe is the most capable and experienced team in the industry.” Sterling’s 62 locations will begin operating as Service King immediately

of strikes and hopefully a few homeruns at the Iowa Cubs’ stadium. Hamilton believes that hosting fun events for association members is nearly as important as providing education to the industry. “In addition to bringing our members great training

and the rebranding of Sterling stores across the country commences June 3, 2014. “Service King has built a strong reputation in the communities where we do business. We recognize that collision repair is not just about the car, but it’s about the care and the lives we touch every day. This acquisition allows us to expand our footprint and offer more consumers an unparalleled, personal repair experience,” said Jeff McFadden, President of Service King. Service King now employs more than 3,800 technicians and support team members and offers collision repair services in the following states: Arizona, Arkansas, California, Colorado, Georgia, Florida, Illinois, Maryland, Michigan, Mississippi, Nevada, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Virginia. For a full list of locations by city and state or any additional information on Service King, visit www.serviceking.com.

26 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

opportunities, we place a high importance on networking and bringing the automotive service community together for fun and interactive activities outside of their shop. This not only

gives our members the opportunity to meet other professionals in their area, but it also allows for idea swapping, relationship building and a time to relax with their team. We believe these types of events are important to the strength of our membership and organization – plus we always have a great time!” ASA-Midwest recently launched several new chapters throughout the Midwest, including Tulsa OK, Oklahoma City OK, Little Rock AR and Lincoln NE. Hamilton states “we are very excited for this new growth and the opportunity to reach new members. We will be releasing a new schedule of events for all our ASAMidwest chapters for the Fall which will include engaging training and numerous networking opportunities for our members.” ASA-Midwest www.asa-midwest.org 816-781-5801

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Continued from Cover

Aftermarket Parts Sellers

dees at the ABPA event that having grown up in her parent’s Baton Rouge business, Felder’s Collision Parts, she has a good understanding of the issues facing the non-OEM parts industry. “This industry hasn’t had a real friend in Congress,” Felder said. “For many of you who have been to the legislature, who’ve been up there trying to get some of these bills passed, fighting against some of the things that affect you, there aren’t a lot of real friends to the industry there, not a lot of people there who really understand this industry. And so it’s really important for you to pay attention to this race, and I’m asking for your support in this race.” One of the issues Felder mentioned she would go to Congress understanding is the “PARTS Act,” an ABPA-supported bill that would slash automaker design patent protection from 14 years to just 30 months. Felder also discussed the “devastating” impact that automaker parts price-matching programs have had on her parent’s business and others in the non-OEM parts industry. She said she drafted the lawsuit that Felder’s Collision Parts filed in 2012 against General Motors, alleging that General Motor’s “Bump the Competition” price-matching program was an illegal predatory pricing scheme designed to drive nonOEM parts distributors out of business. (A U.S. District Court judge dismissed the case in April, but Felder’s Collision Parts has filed an appeal of that decision. See Autobody News June 2014 issue.) Felder asked ABPA members to support her campaign to represent Louisiana’s 6th Congressional District. She is seeking financial contributions (www.cassiefelder.com) both from individuals and through business political action committees. “Obviously there are a lot of issues that are going to be affecting my district,” Felder said. “But this industry has been so important to me and my family, that this was absolutely one of

the industries I wanted to target.”

State Legislation Discussed State legislation related to non-OEM parts was also the focus of another presentation at the ABPA convention in Austin. Ray Colas, director of government affairs for LKQ Corporation, told the non-OEM parts suppliers that the body shop industry seems reinvigorated. “PartsTrader is something that has motivated them, not only through legislation but also litigation,” Colas said. “With that momentum, they’re throwing us under the bus as well.” In the past, Colas said, most of the legislative challenges to aftermarket parts came from automakers. “But the body shops have really taken it over,” he said. “Now the automakers are supporting the body shop association initiatives.” Colas talked about a number of bills his company successfully lobbied against, including one introduced in Maryland last year that would have prohibited the manufacture, sale or installation of a counterfeit or substandard airbag. “Some of you may wonder: Why are we concerned about airbags? There are no aftermarket airbags,” Colas said. “Well, that’s true today. That doesn’t mean that in the future they may not exist. So we want to protect that market today in case in the future there is an opportunity for that. We don’t want to be restricted from selling any alternative part.” Colas said after a “long, drawnout fight” and “a very, very close call,” aftermarket parts supporters were able to convince Maryland lawmakers this year not to pass a bill that would require insurers to pay for new OEM parts for repairs to vehicles manufactured within the previous three years. “Jordan Hendler (executive director of the Washington Metropolitan Auto Body Association, which backed the Maryland legislation) has done a great job educating these legislators, meeting with them year after year,” Colas said. “It’s something we really want to keep an eye on.” A lawmaker in Iowa also needed to be “re-educated” about the after-

market parts industry, Colas said, after he introduced at the behest of body shops a bill that included a provision similar to the one in Maryland. Colas said that lawmaker’s district includes an LKQ facility. “We got there and told him, ‘Hey, you’re really going to affect our business,’ ” Colas said. “This is how many jobs we have in your district.” Colas said the Iowa bill also included provisions prohibiting an insurer from recommending a shop without also telling the customer they aren’t required to use a recommended shop, and from requiring a shop “to use a specific vendor or process for the procurement of parts or other materials.” Colas said those provisions will likely be included in a future piece of legislation. “There will be a bill that’s reintroduced, but it will not include the aftermarket parts restriction,” Colas said.

PartsTrader addresses questions Ken Weiss, director of business development for PartsTrader, also spoke at the ABPA convention, just days after his company completed national roll-out of its system, now reportedly used by more than 7,500 body shops and 8.500 parts suppliers. Weiss said

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that by the end of this past April, parts lists from more than 700,000 estimates had been put out for quote through PartsTrader, and more than 1.25 million orders totaling more than $450 million had been placed through the system. Weiss said although State Farm Ken Weiss “is a little bit restrictive with regard to aftermarket parts,” he expects non-OEM parts orders through the system to increase as shops use PartsTrader for non-State Farm jobs. He cited a number of benefits that PartsTrader offers suppliers, including “increased sales opportunities and fewer parts returns.” However not everyone at the ABPA convention agreed with Weiss on this last point. “We have not noticed a lower return rate on (parts ordered through) PartsTrader versus phone calls versus faxes versus anything,” Bob Petty of Collins Collision Products in Loveland, CO, told Weiss. “Our return rate is higher than it’s ever been in the history of the company.”

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Petty also asked if returned parts are taken into account in the fees PartsTrader charges to suppliers, which are based on average monthly sales. Weiss said they are, provided that parts purchased through the PartsTrader system are also returned though the system. “We all know the games today where repairers will buy multiple parts, sometimes just to get a receipt that they can show somebody else, and then return the part,” Weiss said. “With the PartsTrader system, you can only buy a part once unless you return it. Then you can buy the part again from another supplier. So we think that will avoid some of the games and will help bring down the returns.” Weiss was asked if there’s a way for a shop to bypass the system to return a part. “Only if you let them,” Weiss told the parts distributors. “If they want to return a part, you need to tell them, ‘You bought this through PartsTrader; you need to return it through the system,’ so you get credit for the return.’ If they don’t want to return it through the system, then, I hate to say it, but they are probably up to no good.”

Interactive Advanced Steering and Suspension Systems Damage Analysis Course

I-CAR® announced that its new interactive Advanced Steering and Suspension Systems Damage Analysis (DAM15) course is now available. This course provides detailed information on the considerations for inspecting steering and suspension systems and provides knowledge that can lead to increased efficiency and a positive customer experience. Josh McFarlin, I-CAR Director of Curriculum & Product Development stated, “Advanced steering and suspension systems are common in today’s vehicles and if not repaired properly, other vehicle systems can be

compromised.” He continued, “Repairers can apply knowledge learned in this course throughout the repair process.” The course features a series of interactive classroom activities and problem-solving scenarios designed to engage the student and enrich their learning experience in order to further prepare them to apply their knowledge on the job. Toward the end of the course, the student will engage in a “damage discovery” activity where he/she will simulate the estimating process. This instructor-led, Live 3-credit hour course meets training require-

ments for Estimators, Auto Physical Damage Appraisers and Electrical/Mechanical Technicians in I-CAR’s Professional Development Program™ (PDP). DAM15 has replaced Electronically Controlled Steering and Suspension Systems (STE05). If STE05 has been completed, training credit earned will not be lost. To register for Advanced Steering and Suspension Systems Damage Analysis (DAM15), visit the I-CAR website at www.i-car.com or contact ICAR Customer Care at 1-800-I-CARUSA (800-422-7872). Classes are being added to the schedule regularly.

I-CAR® Adds New OEM Segment Development Director, John Bosin

I-CAR® announced that John Bosin has joined I-CAR in the role of Director, Segment Development– OEM. John will oversee all business development and strategic activity for ICAR in the OEM segment including refinement of strategies to better serve the OEM segment, as well as I-CAR activity with OEMs related to Collision Repair Network (CRN) programs that rely on I-CAR’s training and Gold Class program, I-CAR® Welding Training & Certification™ initiatives,

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and contract training. He will also work closely with I-CAR’s Industry Technical Relations team to advance I-CAR’s Reparability Technical Support (RTS) program as I-CAR works to develop and mature the portfolio of RTS services for the benefit of OEMs and the Inter-Industry. John Van Alstyne, I-CAR CEO & President stated, “Segment focused sales and marketing, and strategic alignment, have been key to I-CAR’s progress over the past three years. John Bosin is a great

addition to our team, and with his joining, I-CAR is more firmly positioned to create more positive impact in the OEM segment and across the board.” Bosin joins I-CAR with significant experience in the OEM segment through his extensive and diverse roles in the Collision Repair industry. Most recently, John was with AkzoNobel as OEM Aftermarket Manager, and earlier with Fix Auto USA, ICI Autocolor and DuPont. John is also a Lean Six Sigma Sensei.

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Southwest Associations with Chasidy Rae Sisk

New Auto Body Association of Texas Launches June 18, PartsTrader Provides Impetus, Statewide Members Invited to Join The newly formed Auto Body Association of Texas (ABAT) will be holding their Inaugural Meeting on June 18th at the Henderson Civic Center with guest speaker Barrett Smith, President and Founder of Auto Damage Experts Inc. Burl Richards, Acting President of ABAT, took some time to explain how the association is getting started and what they hope to achieve through its development. Several months ago, a local jobber, Chad Neal of Paint Works in Tyler TX, held an educational seminar on estimating which included a number of Eastern TX shop owners. Neal and Richards had previously discussed the need for a trade association in their area, but when Richards tried to organize an association meeting a year earlier, he garnered little interest and participation. Thus, when Neal held the estimating seminar earlier this year, they saw it as

the perfect opportunity to present their idea for a new association. Richards believes that a contributing factor to the positive reception they received this time around was “the fact that PartsTrader had begun to be implemented, and these local shops were truly Barrett Smith of beginning to see ADE will be the that we had better featured guest join together or the speaker at ABAT’s Inaugural Meeting insurance compaon June 18 nies were going to continue to control more and more of our businesses… [Neal and I] basically capitalized on the opportunity that presented itself with shops from all over East Texas being present.” For the past three months, Richards has been working with his local attorney to set up the Corporate

Continued from Page 18

As ASC-KY focuses on becoming more politically active and enhancing member benefits in order to increase their membership, they urge their members to commit to the goals that will help them become a stronger state association. This emphasis is placed on image, training and politics. By striving to raise awareness of the abilities of skilled automotive service professionals, they hope to promote a professional image of the industry while also providing training opportunities for continued technical education and development of management and leadership skills in addition to support I-CAR and ASE. Concerning legislation, ASC-KY plans to continue investigating lobbying opportunities that promote communication with state level political leaders to establish a recognized voice which will aid to preserve and enhance the future of the industry.

Shop Autonomy

necessary to regulate the insurance industry’s negligence in failing to compensate consumers for the proper parts and procedure to maintain their factory warranty and restore the safety of their vehicle after a collision.” Stamm adds, “consumer protection is a top priority.” One of the challenges the association faces is obtaining the resources necessary to fund their legislative efforts. This is due, in part, to a decrease in recent years from over 100 members to their current membership of 32 members and affiliates throughout the state of KY. ASC-KY provides a plethora of benefits to members, including discounted health and liability insurance plans, training and education, legal support, and the opportunity to network with a group of their peers to resolve the problems they share in common. Members also receive a listing on the association’s website, a subscription to their quarterly newsletters, and a weekly fax containing motivational tips and industry news.

ASC-KY Whitaker Bank Building 305 Ann St. Suite 201 Frankfort, KY 40601 502-352-2987 www.ascky.org

30 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Filings for the new association, yet a handful of shop owners have contributed to organizing ABAT. “This would not be happening if not for the enthusiasm and excitement shared throughout our region. Everyone has been more than willing to assist and contribute when asked. It’s really been more about spreading the word, and once others hear about what is happening, they know that they are not alone and begin to realize that together we can truly take back our business for the best interest of our customers and the industry as a whole,” Richards states. Richards and those involved with organizing ABAT are also grateful to John Mosley of Clinton Body Shop and Doug White of Capitol Auto Body for donating their personal time and funds to travel from MS to TX to address shops about the benefits of an organized auto body association in a second meeting held to gauge interest

in ABAT. According to Richards, “their presence, being from an outside area, really motivated others to get involved.” Though ABAT was originally going to be called the East Texas Auto Body Association, they were unable to obtain the name, opting instead for ABAT which Richards feels “was just meant to be… [it has been] fitting as we have received interest from shops and vendors throughout the state. We welcome members from all over Texas.” While ABAT is still in development, Richards notes that their main goal thus far is to “take back our shops. We repair vehicles, and insurance companies sell insurance; it’s that simple! Who knows better and is more qualified to make these repairs than us? We work for the customer, so it is our responsibility to properly repair and restore their vehicle to pre-accident condition.”

ABAT will also strive to provide more education, both from a technical standpoint and as it pertains to shops’ rights without solely relying on what insurers mandate. Along with that, ABAT plans to investigate legislation that will promote beneficial change for the consumer, rather than the insurance companies whose focus is on saving money. Richards add, “we will address more concerns legislatively as we progress as an association and begin identifying specific issues. For example, profit margins have decreased over the years, and we must become more profitable in order to provide the training and equipment necessary to perform repairs to the ever-changing technological advancements on today’s vehicles – and that can honestly be accomplished by being compensated for all repairs and processes that must be performed (not just the hand-picked operations that insurers want to pay for).” Since their initial meeting early this year, Richards has been very pleased with the number of repair professionals who have expressed interest in ABAT. “The response that we have received has been more than I could have imagined. Going back to

just six months ago, I felt like I was on an island by myself, and now I have more faith and excitement about the future of our industry than ever. We will put the customer first, and everything else will take care of itself; good things are about to happen!” Smith also took time to speak about the upcoming meeting, and he is excited to speak at ABAT’s meeting with the “intent to generate excitement and to enlighten and edify Texas repairers in several areas.” Smith plans to discuss three main topics, including Federal Antitrust Laws, Procedures and Labor Rate Surveys. To begin with, he explains that o Federal Antitrust Laws “are fairly simple, yet often misunderstood, and have been used in the past to stifle conversation between repairers out of fear of punishment. I will be giving a layman’s overview of the true nature of the laws, why they exist and how to avoid breaching them regarding what can and cannot be discussed. Federal antitrust laws exist to promote and protect competition. They are to govern the activities of businesses in our country and are designed to be safeguards against activities that may be harmful to the consumer, business

competition and the economy.” “Procedures are also an important topic because many required repair processes and necessary materials go unpaid, and these overlooked and often omitted processes and create significant liability issues for the repairer that need not occur.” Smith plans to highlight these important aspects of the business operation and how to avoid these unnecessary liabilities. He will also be introducing the Variable Rate Survey (VRS) program offered by the National AutoBody Research, Inc. which “provides a viable and labor rate survey to show repairers, consumers and insurers the range of labor rates based upon the individual rates and allowances of participating repairers in a given area. Ranges of labor rates from an area comprised of repairers within mere miles to participating repairers across the country. The VRS not only provides participants the labor rates of repairers within various markets, the program shows them in real-time and can change based upon a repairer’s change in rates, training, certifications, equipment and such. This defeats those socalled surveys which lump all repairers together and provides the

same labor rates for the best of the worst to the worst of the best!” As the President and Founder of Auto Damage Experts, Inc., Smith believes that one of the most valuable services his company offers is Repairer Consulting and Coaching for those who offer high quality workmanship and services. He states, “regardless of their size, all ADE consulting/coaching clients have the same fundamental characteristics in common: integrity and the courage and conviction to do the right thing for the right reasons. What we do is to help them to step outside the box that is often built around them by ‘interested third-parties’ and to see things in a more common sensical and pragmatic manner. This enables them to modify their business acumen and methods of conducting business which is found to be much more profitable and enjoyable.” Smith hopes to share his experience in this area at ABAT’s meeting in order to aid this developing association and its members.

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Western Associations

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

Tech Turned Tool Designer Headlines EB-CAA May Meeting with Ed Attanasio

Francesco’s Italian Restaurant in Oakland, CA was the place to be on May 20, especially if you were a member of the East Bay Chapter of the California Autobody Association (EB-CAA). It was the association’s spring dinner meeting and featured a program with three speakers discussing three distinct segments of the collision industry. Tim Brusher from Honda’s ProFirst Program discussed the importance of OE certifications in today’s collision industry while reviewing Assured Performance Network’s Certification Program; Karl Kirschenman from Alldata made a presentation entitled “Creating Customers for Life” and Tim Gerhards, a former body tech turned tool designer presented his line of collision repair

Tim Gerhards, a former body tech turned tool designer presented his line of collision repair tools during a presentation at the East Bay Chapter of the California Autobody Association’s May dinner meeting

tools during a presentation he called “Tool Time with Tim.” More than 30 collision professionals attended the meeting as they dined on Italian cuisine and networked with fellow body shop owners, local vendors and prospective EB-CAA members. Gerhards’ story will resonate with anyone looking to make a better mousetrap, or in this case, an improved way of skinning a car door. Many great inventors started out the same way as Gerhards did. In fact, Thomas Edison was a salesman before inventing the phonograph and the light bulb and Henry Ford was a machinist before he founded Ford Motor Co. Both saw a

burning need and found solutions by inventing tools that can make our lives easier. And that’s why Tim Gerhards embarked on a journey that eventually led this collision repair veteran to his first invention and six other tools that he subsequently designed—all of which are currently being used for a wide range of applications worldwide. It all began one day when Gerhards was skinning a door while working at B & J Body Shop in Rancho Cordova, CA back in 2001, he explained. “This procedure normally requires lots of hammering and dollying and walking around the entire door frame and beating this metal over and over until you get what you need. It puts a ton of wear and tear on your hands and it’s time consuming. I kept asking myself ‘how does the factory do this?’ and I just began experimenting with a better way of doing it.” So one day Gerhards picked up a piece of wood and shaped it into a crude tool that would enable him to bend the door’s flange over and flatten it out at the same time. After testing it and tweaking it a little, Gerhards realized that it worked and named it the Skin Zipper. “I realized wow—I need to patent this thing,” he said. “This tool takes a two-hour repair and cuts it down to about 10 minutes with a hammer, so I thought shops are going to love this thing.” After more than 40 months, Gerhards received his patent and jumped into the inventor’s world with both feet. “I immediately joined a local inventors’ group and was advised to market the tool at a trade show. So I went to NACE in 2009 and showed the Skin Zipper to everyone I could find. Steck Manufacturing called me back after NACE was over and showed some interest in manufacturing and distributing the tool. It was a great moment, because all of the work I had done on designing it and developing it were finally paying off.” Since inventing the Skin Zipper, Gerhards and Steck Manufacturing in Dayton, OH started working together on more tools, he explained. “The people at Steck must have been pleased with the Skin Zipper, because they were interested in pursuing patents for anything else I could think of, Ger-

32 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

hards said. “Those products include a MIG Light, Panel Shaper, Workstand Clamp, E-Z II Strip Molding Tool and a Handipull Kit that consists of a series of eyebolts that screw into weldedon nuts to allow for light pulls all around a vehicle. Once I get into that inventor’s mindset, the ideas just kept coming. As a tech, I was encountering difficulties all the time during repairs, so I started asking myself, how can I make a tool to solve these problems?” Gerhards’ success with Steck has inspired him to create his own company, TG Products, to manufacture and market other inventions on his own. TG’s first product is The Rail Saver, a system that repairs damaged side members and frame rails. Last year, Gerhards was able to finally step away from his job as a body tech to pursue his dreams as a tool designer and inventor full-time. He strongly believes that the collision repair industry is primed for new exciting tools, to be made by people who actu-

ally make the repairs, just like him. “Many collision repairers have the skill sets to build their own prototypes, because they already know how to weld, shape metal and build prototypes,” he said. “In this business, we’re all constantly encountering situations where there is no tool. So, I know I’m not the first person to ever rig something to get the job done and I surely won’t be the last. One of the biggest problems is that people are reluctant to show their inventions to anyone, because they’re afraid of them getting stolen. Or they think it’s worth more than it really is and think they’re going to be millionaires overnight, which is totally unrealistic.” Gerhards advises aspiring inventors not to go to invention submission companies. Instead, he says they should join a local inventor’s organization at the United Inventors Association or www.uiausa.org. For more information about any of his tools, visit his web site at: www.therailsaver.com.

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CAWA Reports on Status of California Legislation Impacting Industry

As the California Legislature comes to the middle of its legislative session, CAWA’s Legislative team reports the status of three legislative proposals impacting the automotive aftermarket industry and CAWA members specifically. CAWA is currently tracking approximately 40 legislative proposals that could have an impact on the aftermarket industry, however the following bills have been the main priority of the association and its government affairs team.

AB 1735 (Hall) – Nitrous Oxide: Dispensing and Distributing CAWA POSITION: OPPOSE UNLESS AMENDED This bill would make it a misdemeanor to dispense or distribute nitrous oxide to a person, knowing or having reason to believe that the person is going to use the nitrous oxide with the intent to breathe, inhale, or ingest for the purpose of causing intoxication, euphoria, dizziness, etc. and that person proximately causes great bodily injury or death to himself, herself, or another person, punishable

by imprisonment in a county jail not to exceed 6 months, or by a fine not to exceed $1,000, or by both that fine and imprisonment. Additionally, the bill would require any person who dispenses or distributes nitrous oxide to record each transaction in a written or electronic document and would require the person to make the document available for inspection, upon presentation of a duly authorized search warrant, to the California State Board of Pharmacy or other law enforcement agencies. The bill would require the purchaser to sign the document and provide a governmentissued photo identification and residential address. Status: Currently working with author’s office to craft amendments to remove impact on CAWA members that sell or distribute nitrous oxide.

SB 916 (Correa) – Biosynthetic Lubricants: Procurement/Sale CAWA POSITION: OPPOSE Effective January 1, 2016, this bill would have required state agencies and state contractors to purchase lubricating oil that meets minimal stan-

dards and certifications, and bans the sale of lubricating oil in California after January 1, 2017 unless it meets these minimal standards for biosynthetic lubricants. Status: Died in Committee

SB 994 (Monning) – Telematics Legislation CAWA POSITION: NEUTRAL SB 994 would have created the Consumer Car Information and Choice Act by requiring manufacturers that generate or collect vehicle information through telematics technology to make disclosures to the owner about that information, provide the owner with access to the information for transmission to a 3rd party, and would prohibit a manufacturer from limiting or restricting the owner from accessing their vehicle information. Status: Died in Committee

“CAWA is at the forefront of protecting its members from legislation and government regulations that adversely impact the automotive aftermarket industry each year. This California legislative session proves to be a busy year for us as we are defending the aftermarket from a number of attacks on our ability to provide parts and service to motorists”, stated Rodney K. Pierini, CAWA President & CEO. In addition, CAWA in its effort to promote the National Be Car Care Aware Campaign was successful in securing a California Senate Resolution recognizing April 2014 as “National

Car Care Month” in California. The measure, SCR 112 by Senator Tom Berryhill, urges all California residents to be “Car Care Aware” and inspect and perform all maintenance necessary to ensure their vehicle is operating in a safe, efficient and clean manner. “CAWA remains committed to protecting the business and industry interests of its members in the three states we represent, Arizona, Nevada, and California”, continued Pierini. “While we waited with great anticipation the telematics legislation that was introduced by AAA, CAWA took a neutral position on the measure due to a number of concerns that were not resolved in the bill. CAWA commits to continuing to engage in constructive dialogue with AAA to add the aftermarket perspective should AAA decide to take the bill up again next year.” CAWA is a regional automotive aftermarket trade association, which represents auto parts jobbers, warehouse distributors, retailers, manufacturers, manufacturer representatives and program groups. The Association provides education, legislative, regulatory and business support to the industry and its membership. It is one of the largest trade associations of its kind in the United States and recognized as a leader in the automotive aftermarket industry. For more information about the California Legislative session contact California Legislative Advocate Gary Conover at gary@garyconover.com or 916-233-9655.

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Watertown Fire Rescue responded to a fire at Auto Body Solutions, 1500 10th Ave SE, in Watertown, SD, the night of May 20. Drawing a big crowd of spectators, radio traffic indicated that there were no injuries. At 7:45 p.m., crews reported having the blaze knocked down to hot spots and areas in the rafters. Chip Premus, Watertown Fire Rescue Fire Investigator, issued a news release as to the cause of the fire. According to Premus: ‘The fire started on the outside of the structure in the area of a smoking receptacle used for discarded cigarette butts. The fire service has seen an increase in fires that start on the outside of a building from plastic smoking receptacles and plants with potting soil in

plastic pots. This type of fire smolders for a long period of time. If you walk by and notice smoke coming from cigarette butt receptacles or potted plants, please help out and notify the business owner.’

‘This is a public safety message to all businesses and residents of Watertown that any smoking pole, bucket, or container made of plastic used for discarded cigarettes should be replaced with an all metal or concrete container.’

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 33

Lean Operations

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

Using an Outside Expert to Improve your Competitive Position with David Luehr

I received a call last month from a dear friend of mine on the West Coast. I’ll call him Paul here, but that’s not his real name. His voice was shaky and he was clearly upset. Paul told me that one of the big MSOs had recently acquired a shop just down the street from him and at first he wasn’t too concerned, but now he was extremely concerned. My friend has always ran a very good shop, so I asked him what he was so worried about to which he replied, “I hate to admit it, but these guys are better than I thought and I am losing business to them!” You see Paul’s biggest DRP provider put his new big MSO neighbor on the same program even though they are only a block apart! What’s more, Paul was told by his DRP coordinator that unless his shop improved its KPIs, his new neighbor was going to be receiving the lion’s share of the business. Paul’s story is not an isolated one. Knowing Paul, he will figure out

a way to compete and win, but he is going to need some help. Everyone in the collision repair industry knows how challenging it has become. DRPs are demanding more, Consolidators are growing faster than ever, and profits are shrinking. The shops that are serious about competing in this game need to quickly improve their position in the marketplace by performing at unprecedented levels. This document is intended to show the reader that many of the advantages provided to large MSOs can be afforded to any shop serious about transforming their business through using an outside firm to provide many of the services. Organizations like Service King, ABRA, Boyd Group, etc. have systems in place that give them a very strong presence in many major markets in this country. These systems allow for consistent and predictable results in quality and customer serv-

Continued from Page 14

“We encourage the repairers to use it if they would like,” he said. “It works. It has advantages. Now that the test is done, we know moving forward that we have already tested that functionality.” State Farm began the test of electronic parts ordering in two markets in 2007, with a half dozen automakers offering the insurer parts discounts through the program. The program was rolled-out in 2008 to all Select Service shops in the two states, but the number of automakers offering discounts continued to decline until State Farm halted the discount portion of the test earlier this year. – As reported in CRASH Network (www.CrashNetwork.com), July 20, 2009. State Farm subsequently said it seemed inappropriate to seek OEM parts discounts at a time when automakers were struggling economically and in some cases filing bankruptcy. But it saw enough potential benefits to electronic parts ordering that it sough proposals from companies to develop an electronic parts ordering system – which led to the launch of State Farm’s mandated use of PartsTrader in 2012.

Historical Snapshot

though the insurer was “suspending” the requirement to use electronic parts ordering and had no plans to roll such a

Cindy Schnier, co-chairman of the CIC Information Technology Committee in 1999, said her committee’s research indicated that rekeying of insurer estimates by shops was costing the industry more than $17 million a year in wasted labor

program out nationally, State Farm saw the test as valuable because it demonstrated electronic parts ordering “has value.” He noted the Select Service agreement still gives the insurer the right to require electronic parts ordering.

34 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

ice. These systems when combined with the footprint of the consolidators, gives them a very lucrative “seat at the table” with all major insurance carriers. While each MSO is slightly different in their approach to centralized resources, this is a generalized list of advantages that large MSOs have over the rest of us… ■ Assurance of DRP affiliation when opening new locations ■ Centralized Human Resource Departments ■ Centralized Accounting ■ Centralized Customer Call Center ■ Centralized Load Leveling ■ Centralized Management of I-CAR Gold Class ■ On-line training, Learning Management Systems, and testing ■ Self-managed DRP with centralized audit teams ■ Marketing Teams ■ Safety and Environmental Compli-

ance Teams ■ Proven workflow systems and accountability to make them work ■ Mass advertising and name recognition ■ Ability for employees to help other locations when needed ■ Stability and benefits are attractive to potential new-hires ■ Buying power Most small collision repair businesses must attempt to perform many of these functions, but are rarely able to perform all of them well, if at all. To remain profitable typical shop owner/managers must perform many of the functions that shop managers at large MSOs don’t have to deal with. The time that a typical shop manager would spend performing many of these functions is spared to the large MSO shop manager thereby providing them time to ensure that processes are being followed, quality and cycle time standards are being met and in Original BMW Parts

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many ways acts as an “auditor.” With these disciplines in place, it becomes very difficult to compete with these guys. In order to perform all these functions that are required, you would need to hire people that are experts in Insurance DRP Relations, HR, Accounting, Customer Relations, I-CAR Gold Class, Marketing and Advertising, Safety and Environmental Compliance, Admin Workflow Systems, Change Management, Lean, etc., etc., etc. I would bet in most collision repair businesses, at least one or more highly paid people would need to be hired to perform all of these functions which are currently not being performed well or at all. That could equate to $5,000 - $15,000 a month, plus benefits to hire who is needed to get all this stuff done! This of course would be considerably more if you have multiple locations needing these services. Solutions can be provided by an outside firm at a substantially lower price and be performed by experts that will ensure these functions are performed precisely. So in other words, you could get many of these functions at your shop performed both better

A look at ROI Is it actually costing you money by not using an outside firm? In many cases, yes! Training & Coaching has been proven to increase a shop’s Key Performance Indicators substantially. Coaching and Training provided by qualified outside sources can have an immediate positive impact on both KPIs and return on financial investment. Even a modest 5% increase in productivity at a shop producing $100,000 in revenue can yield an additional $2,000 in gross revenue which in many cases is enough to pay for the outside services. There are many cases of shops experiencing significant gains in productivity and profitability that never would have been possible with the assistance of outside experts. Don’t expect quality outside services to be cheap, but look at it as an investment with a favorable ROI. Do your homework when hiring a business coach or any kind of outside service, these folks in many ways become a reflection of your business and will have an impact either positive or negative. You must be able to trust

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and cheaper than trying to do it yourself in-house.

them much as you would a new employee, so don’t feel you need to hire the first one that comes along. The old saying that the “Definition of Insanity is doing the same thing over and over and expecting a different result” is exactly what many shop leaders continually do. It doesn’t have to be this way. Quality of life for stakeholders at body shops doesn’t have to be so bad. We all need help, and there are resources available to provide support.

Resources Available: Business Coaching & Consultants ● General Business Consulting ● Admin Workflow Processes & Implementation ● Learning Management System ● Leadership Coaching ● Training Clinics

Online Human Resources ● Hiring Programs ● Performance Evaluation Process ● Employee corrective action ● Legal Advice

Data Management ● CSI ● Centralized Call Center

● KPI Management & Reporting Safety & Environmental Compliance Marketing & Advertising Solutions I-CAR Gold Class Management Associations, Buying Groups & Networks

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 35

Social Media for Shops How to Market to Millennials

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

with Ed Attanasio

We’ve all heard the term but what exactly is a Millennial? Born between 1981 and 1996, Millennials are represented by 86 million people, which means they’ve outpopulated the Baby Boomer generation by seven percent. There are more 22-year-olds than 53year-olds on the planet right now and by 2018 it is estimated that the Millennials will be outspending the Baby Boomers by a large margin. My stepdaughter is staying with us this summer, so I am getting a firsthand view of how these Millennials live. One thing I noticed is that they eat a lot and text a lot and ignore me with a passion. They’re also very in tune with all of the latest technology and social media and are extremely adept at rolling their eyes and saying things like “whatever” and “it is what it is.” Some find them to be entitled and downright rude, but no matter what your opinion of them is, Millennials are a very significant segment of the market, and that’s why any consumer business should be at least remotely interested in what they’re up to. So, why should the collision industry care about this age group? Because they have money, they drive nice cars and just like everyone else—they get into accidents. After years of studying Millennials, marketers and ad agencies all over the world know full well that the Millennial generation isn’t just a bunch of entitled kids with smart phones snapping selfies and chasing down the latest Groupon deal. In fact, businesses that aren’t pursuing Millennials will soon be missing out on a major consumer opportunity from a generation with an expected $2.45 trillion annual spending power by 2015. Body shops should be marketing to Millennials right now, because they’re the consumers of the world’s, both today and tomorrow. The problem is that most owners of leading ad agencies and marketing/pr companies are in their 40s and 50s and they’re still trying to use techniques that worked back in the Madmen days. But, in order to cater to the Millennials, the powers-that-be have to re-invent themselves once again

and devise ways to appeal to these 20somethings. I recently took a two-day seminar about social media and most of it was dedicated to advertising and marketing to Millennials. The class was taught by a Millennial, so the information was both pertinent and useful. More and more companies are recognizing the value of marketing to Millennials. By using these five tips to re-calibrate your marketing, public relations and advertising efforts, you’ll be able to tap into this increasingly powerful generation.

1. Don’t Talk Down to Them I was talking to a Millennial one day about a world without personal computers or the Internet and he looked at me like I had just emerged from a cave. As the most educated and savvy consumer group in the world, Millennials know what they want and are very skilled at finding it all by themselves. Now, collision repair is obviously not an impulse buy and the Millennials will treat it as an unnecessary expense, like Obamacare or parking tickets. But, in the end they don’t like to be corralled into doing something, so branding and advertising to this group may be more important than ever. They’re not the type that is going to just blindly pick one body shop from the list their insurance company shows them. They will want to do their due diligence and ask around, as well as referring to the shop’s web site, Yelp page and other assorted social media.

2. Don’t Camouflage Your Message “Be real,” is something the Millennials want to tell their parents and the new word I keep seeing everywhere is “transparency.” (Back in the old days, if you called somebody “transparent,” it meant they were not genuine, but now I guess it means exactly the opposite.) My stepdaughter has seen the media change and evolve and has been bombarded by literally millions of ads during her 20 years on the planet, so she can’t be fooled, cajoled or directed by advertising. The Millennials want the facts now and don’t want to sit through your long descriptions or

36 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

veiled messages. Their time is limited and they’re juggling 1,500 things simultaneously and that’s why studies show that Millennials will value honesty and a straightforward approach when it comes to advertising.

3. Strengthen Your Presence Online Millennials are comfortable buying things online and that’s why brick and mortar businesses are moving toward the Internet more all the time. Unfortunately, you can’t get a fender bender repaired via the computer, but much of the groundwork can likely happen there. And that’s why it is important to have a good web site and some presence on Facebook and Instagram, for example, because these Millennials care about it and may use one or more to make their buying decisions.

4. Millennials Communicate All the Time…with Each Other This generation is more connected

than any group in history, because they have so many ways to do it. They also rarely live alone and have numerous roommates in many cases, so word-of-mouth (or text or video or photo bomb) is more valuable to advertisers who understand this. The old days of creating a “buzz” is always beneficial, but now it’s more concentrated and it all moves so much more quickly. Come up with a shorter, more concise message, so that the Millennials can grasp it fast and disseminate it to their friends and associates seamlessly. It’s called “going viral” and if you can get achieve it, you’ll be a success—Millennially speaking.

5. Quality is Still King (or Queen) With today’s technology, bad service and poor quality can’t be swept under the carpet anymore. Anyone can find your competitors online within milliseconds and we all know that bad See Millennials, Page 37

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On Creative Marketing Ding Day–A Marketing Tactic with Thomas Franklin

Shop owners with a shop in a metropolitan area see many vehicles with minor dings, dents, scratches and more, all around the city. Many of these drivers have tolerated these imperfections on their vehicle for weeks, months and possibly even years. Why haven’t they done something about these eyesores? Maybe the discomfort of driving around with these flaws simply hasn’t been great enough to motivate them to fix them. Or maybe they imagine the cost, not only in terms of money, but also in considering the inconvenience of being without the vehicle while it’s being fixed, is too great to bother. If a shop mainly relies on insurance or dealerships for work, this may not be an interesting marketing move. But if a shop seeks to bring in new customers and add to a database of marketing targets, this could be a real opportunity to increase the shop’s volume and potential volume of business.

In general advertising a collision repair shop is mainly done to make a shop’s name, location and reputation broadly known. When viewers of the ad may not have an accident for three or more years in the future, getting an immediate response is only a peripheral intent of the ad. But the advertising campaign I’m proposing here, aimed at a great many drivers with minor body damage, could produce an immediate volume of responses if handled right. The proposed ad should offer a “Ding Day Special.” The two vital aspects of the ad must be that it will be low cost, and with very little time commitment. For the bold shop owner, the ad could also offer “No risk—your money back if not completely satisfied.” Some owners might hesitate on this one, but statistically the no risk offer increases responses significantly. An additional attraction to be offered by the tech-savvy shop would be an

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Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

on-line inquiry and approximate estimate for potential customers. The prospective customer simply uploads a photo of the damage and the shop gets back to him or her with an approximate repair time and cost. To make the “Ding Day” routine work well, a shop must commit significant resources to getting vehicles completed and out quickly at reasonable cost. The real profit should not be in the limited scope of the minor repair. Instead it should be viewed as a sales opportunity. This is a chance to collect many customer information forms filled in with vital marketing information. It has to collect information on all vehicles owned by the customer’s family and employer and any other vehicles in need of repair. It should have his or her insurance agent and possibly organizations the customer belongs to that could be marketing targets. Filling in of the form can’t be simply handing it to the vehicle owner, leaving him or her to omit many important marketing bits of information. The estimator or a welltrained front desk person should make certain most of the requested information is captured. And this is just step one in capturing this vital sales opportunity. While it may be possible to talk the prospect into bringing in another vehicle that needs repair right then and there, this could be shortsighted. In order to keep the turn-around time short, it could be better to solicit work on other vehicles with followup calls. If the customer was pleased

with a quick turn-around, the estimator should get a welcome response when making the follow-up call. This call would also be an appropriate time to ask for permission to call the customer’s business and social organization connections to make the shop known to them. This tactic has worked well with Amway and Avon solicitors and builds an ever-expanding network of related individuals for marketing purposes. When there is reluctance to pass along phone numbers, these days asking for an e-mail address or even Facebook connection could get an easier response. Perhaps the greatest difficulty getting this tactic to work is the problem of where to advertise and how to reach the greatest number of prospective customers. Today print ads have limited value as people turn away from printed newspapers and get their news on-line. TV ads are generally too expensive, but radio ads could be a real possibility in some areas. On-line ads are essential.The ad has to be direct and simple. It should start with the key question: “Are you tired of living with that ugly dent, ding or scratch on your vehicle? For a limited time we are offering a very low-cost, fast turnaround repair to restore your vehicle to its original beauty. And we’re located close enough for you to drop your vehicle off in the morning and pick it up, possibly as early as noon. Call us or e-mail a quick photo of your damage and we’ll give you an approximate estimate immediately.”

Continued from Page 36

graphic more. Whether you’re enamored or not with their attitudes or behavior, they’re a huge market and you can’t deny it any longer.

Millennials

news travels faster than good news. Companies that take the time to provide convenient, Millennial-friendly services and quality products will be continually rewarded with positive recommendations, via the spoken word, smartphones or laptops. Either way, Millennials are demanding better service and higher quality while possessing the power to influence others, so listen to what they’re saying and start concentrating on this demo-

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 37

Southwest Associations with Chasidy Rae Sisk

LaCIA Hosted Louisiana Attorney General at May 22 Meeting

On Thursday, May 22, the Louisiana Attorney General’s influence in itself the repair professionals are responsisioner’s office to inform them that Collision Industry Association (LaCIA) is beneficial to legislative initiatives ble for properly fixing their customers’ they will be pursuing State Farm, with held a meeting at the Hilton Garden Inn since politicians are less apt to ignore vehicles, plus if a shop has a signed or without the Commissioner’s supto update members on the direction the their pleas for help. They also plan to work authorization from the customer port. Hanks recalls, “they wanted to association is taking and their upcomproduce some ad campaigns to advise and the insurer sends their vehicle to make it clear what their main objecing plans. Featured speakers included tives were, and that was to attempt to Attorney General Buddy Caldwell and get rid of DRPs, to get things changed his assistant AG, Randy Ishee, who upthrough legislation, and to make sure dated attendees on their efforts. Execueveryone knows the law on both sides. tive Director Alysia Hanks notes, They want insurers to stick to what “overall, the meeting and turnout was they do, which is writing policies, and excellent, and I think the Attorney Genlet the body shops do what they do, eral is on top of things! He was present which is fixing cars. They believe the with some of his other attorneys who insurers shouldn’t have their hands in are working on our issues, and they had our businesses.” some great updates to share with us. I After the Attorney General’s presLaCIA’s Board of Directors meet with their guests (l to r): Chris Medine, Randy McLachlin, Alysia don’t think I’m alone when I say this, entation concluded, several additional Hanks, Derek Stubbs, AG Buddy Caldwell, Lynn Lejuene, Asst. AG Randy Ishee & Pat Graham but Mr. Caldwell very much exceeded speakers provided updates on some inmy expectations with what he and his consumers to read their insurance dustry trends. Abel Cantrell of Advananother facility, that is a breach of constaff of lawyers have accomplished so policies and encourage them to un- tract for which they can be sued. tage Collision Center in Houma, LA, far. I heard the comment ‘blown away’ derstand their rights during the repair The Louisiana Attorney Gen- spoke about who really owns your when I asked others to describe the process. Attorney Stacy noted that the eral’s office is working with several shop, you or the insurance company, meeting. Mr. Caldwell and four other Attorney General’s office may also other Attorneys General throughout and he also distributed instructions on attorneys are now working non-stop on look into possible tax evasion on the the South, and they have also reached “How to Use Twitter” so no one has an our issues.” part of the insurance companies. De- out to their state’s Insurance Commis- excuse not to get connected to other The meeting began with Chairman spite this progress, Hanks cautions “it Lynn Lejeune welcoming attendees and will take a while to get this situation leading the group in prayer, followed by we find ourselves in today resolved, Vice Chairman Derek Stubbs who inor even to see any movement on it. troduced LaCIA’s Board of Directors We did not get into this situation and discussed some of the association’s overnight, and it won’t go away that goals and accomplishments. fast either. We need to have patience.” When Caldwell was introduced, he Next, Ishee updated attendees on assured the group that he and his team several matters, beginning with the are working diligently on resolving the fact that he cannot comprehend why collision repair industry’s issues, and he provided an update on their progress thus far. THESE DEALERS are GENUINE Because State Farm is the WHOLESALE PARTS SPECIALISTS. largest insurance company in LA and all other insurers follow their lead, he first set his sights on this insurance giant, MIC HIGAN learning that they did put up the money for PartsTrader. His Sunshine Toyota Toyota office has also begun a Civil BATTLE CREEK Grand Rapids Investigation Demand where Executive Director Alysia Hanks (l) with Attorney GenGRAND RAPIDS eral Buddy Caldwell (m) and Asst. AG Randy Ishee (r) 269-965-1000 the Attorney General orders from the LA Dept of Justice the insurance companies to 269-441-1262 Fax 800-354-7037 produce documents which they would any repair facility would willingly join Mon. - Fri. 7:30am - 6pm; 616-942-4658 Fax jody@sunshinetoyota.com not ordinarily produce in a regular depa DRP since he can find nothing in Mon., Wed. 7:30am - 8pm; www.sunshinetoyota.com osition, such as surveys and internal those agreements that benefits the Tue., Thur., Fri. 7:30am - 6pm; policies; he also pointed out his finding shops whatsoever; his feelings about Sat. 8am - 12pm that insurers aren’t even attempting to PartsTrader are the same. He noted www.toyotaofgrandrapids.com hide the fact that they are steering their that by signing those agreements, it customers to DRP facilities! was like relinquishing ownership of Although his office is still in the the shop to the insurance company. discovery stages of the process, the Furthermore, Ishee emphasized that

38 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

shops. Ray Gunder of Gunder’s Auto Repair in Lakeland FL discussed how insurers pushed him to the edge and why he started suing them to get things done, nothing he has not lost a case because “right is right!” Next, Mike Parker of Parker Auto Body in West Monroe, LA, shared the measures he has taken to maintain control of his business which includes installing video and audio surveillance in and around his shop as well as a module to record every call made to or from his business. LaCIA’s Board of Directors is very grateful to all of their guests who spoke at the meeting. Vice Chairman Derek Stubbs said “we have to be excited about the turnout and have to keep the momentum we are establishing going in a positive direction and not let it slip away.” Board member Pat Graham believes the Attorney General and his staff “had a very positive vibe that I think was felt by everyone.” All in all, Hanks believes the meeting “was an incredible success! We are taking back the industry ladies and gentlemen!” LaCIA will hold their next meeting on July 8 in Lafayette. www.la-cia.com

CARSTAR Sees Record Revenue in 2013, Plans Expansion of HQ in Leawood, KS CARSTAR brought in a company record $641 million in revenue in 2013, an increase from its $603 million in revenue in 2012. CEO David Byers said the company's 2013 same-store sales were up by 17 percent from 2012 and Carstar added 45 more locations to its multishop operator network in the United States and Canada. Byers said the unusually poor winter weather, which lasted well into 2014, and the increasing complexity and cost of repairs to automobiles buoyed the company in 2013. He expects the company's strong same-store sales to drive the company to record revenue and store additions in 2014. “We expect to break the records from last year again in 2014,” Byers said. “Based on the fact that we're seeing that 17 percent same-store sales number, that's an indication that the business and the industry is performing extremely well and we have no reason to believe that that is going to subside in the second half of the year.” With increased revenue, Carstar is looking to add new senior staff. Byers said the company is recruiting a new chief information officer and a

new vice president of business development. It is also looking to add new technical resources at its new headquarters at the Pinnacle IV building in Leawood. It relocated from Overland Park in December 2013. Byers said Carstar chose to locate its call center in existing Canadian operation instead of building a new call center in the Kansas City area. Byers said the continuing consolidation of the collision repair industry positions his company well for long-term growth. Over the last decade, Byers said, the number of independently-owned collision repair centers dropped to 35,000 from 80,000. He said the flow of private equity money—Carstar is owned by San Francisco-based private equity management firm Champlain Capital Partners LP—encourages independent shops to sell or join a larger franchising company. “(Independent shops) have two choices: they can sell to one of the consolidators or ... they can join a franchise network like us. Those are really the only two choices they have,” Byers said. “We find we're in a very good growth position because, as the industry continues to contract and consolidate.”

CCAR and ShipMate Launch Improved HazmatU website

CCAR, the Coordinating Committee for Automotive Repair, and ShipMate, Inc. announced the launch of their new website, www.hazmatu.org. This intuitive new site is specifically designed to be easier to use and easier to access for all HazMatU training and resources. CCAR provides tailored information and resources for OEM dealers, collision repair centers, schools and mechanical service centers. The new website communicates updated news, events and services to HazmatU customers in an easier, faster and more userfriendly layout. ShipMate, Inc. works with clients to help resolve their most demanding dangerous goods transportation, environmental management and safety issues. ShipMate provides creative ideas and cost effective solutions to resolve and manage their many compliance challenges.

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CARS This Year Is All New, ASA Promises It Will Be The Best Show Ever This year’s CARS will be held July 30Aug. 2 in Detroit and for the first time, the focus will be on younger techs. There will be a two-day, intensive program called the “Young Technician’s Symposium.” Donny Seyfer, chairmanelect of the Automotive Service Association, which sponsors CARS, reports the program will be “powered” by Bosch. “It’s the brainchild of Bob Pattengale,” said Seyfer, “and will feature cuttingedge learning techniques and thorough introductions to the electronic systems that control modern cars. Targeting the two- to three-year tech, Bosch’s trainers will use hands-on techniques mixed with classroom training to move young techs from maintenance service and light repair to adding routine diagnostic skills to their toolbox.” Each program at CARS this year has been handpicked with an eye to-

ward making your shop better, said Seyfer. Management sessions will be limited so that the “meeting after the meeting” networking opportunities will be enhanced. Seyfer said the “crown jewel” of the CARS lineup will be Friday’s Telematics & Technology Forum sponsored by the Alliance of Automobile Manufacturers. “We will bring you face-to-face with the future,” said Seyfer. “Learn about what cars are doing today and tomorrow from the engineers who build them. How does the independent repair shop fit into this world? You will only know if you attend CARS and attend this session.” Business has changed, said Seyfer, “and things that were effective a few years ago are no longer working.” To help bring attendees up-to-date, ASA is enlisting the aid of notables such as Vin

I-CAR® And National Auto Body Council Partner on Membership Discount, 30% Off Until End of 2014 I-CAR®, in partnership with the National Auto Body Council (NABC), has announced it will pilot a membership discount program for I-CAR Gold Class® businesses. The promotional offer includes a 30 percent discount toward NABC Bronze Membership through December 31, 2014. “I-CAR and NABC have complimentary goals of encouraging professionalism and promoting a positive image of our industry,” explained Jeff Peevy, I-CAR Senior Director of Field Operations and Segment Development. “I believe all of us within the collision repair industry have an obligation to promote a positive image of it. And one of the best ways to achieve this is to support and enable the growth of an organization designed for this purpose.” NABC membership provides businesses with an array of opportunities for members to reinforce their leadership role within the industry and community, and foster goodwill throughout those communities. The NABC also implements community-based programs like Recycled Rides, Distracted Driving Initiative and First Responders Emergency Extrication, while recognizing those in our industry who epitomize the fundamental goodness which exists in the collision repair world. Recycled Rides is a widely-known and unique program in which insurers, collision repairers, paint suppliers, parts

vendors and others collaborate to repair and donate vehicles to deserving individuals and service organizations in local communities throughout the country. NABC Executive Director, Chuck Sulkala explained, “In addition to helping make a difference in someone’s life, participation in NABC initiatives such as Recycled Rides, provides many intangible benefits. Within a business, it creates rewarding experiences, excitement and pride in and for your team, plus has a very positive impact on the community. The enhanced recognition of our member’s businesses in their community as a result of gifting a Recycled Rides vehicle is an added benefit of membership.” Over 800 vehicles worth in excess of $10 million have been donated through the NABC’s Recycled Rides program since its inception in 2007. “Collaborating with an industry powerhouse like I-CAR really helps the NABC to enroll our industry to evangelize about just how good it is for others to rub elbows with all of us,” said Nick Notte, NABC president. “We at the NABC are delighted that I-CAR has embraced our vision and is so willing to help NABC reach out to even more quality individuals and businesses.” Gold Class businesses are encouraged to take advantage of this special promotion. To learn more about the NABC or Recycled Rides, visit nationalautobodycouncil.org.

Waterhouse, Rissy Sutherland, Danny Sanchez and Margie Seyfer, all experts in their respective fields. Always a concern are employee issues, including successfully integrating new employees into the business. Bill Haas, industry consultant and trainer, has a new class that will provide shop owners the tools they need to help new employees fit right in. On the technical side, since CARS 2014 will be in the Motor City, representatives from Chrysler, Ford and General Motors will all be presenting classes. Pete Meier will help you bring those lab scopes back out to aid you in diagnosis for a new generation of cars. “Speaking of diagnosis,” said Seyfer, “we are going to push the boundaries of your diagnostic techniques and understanding with presentations by Mark Warren and Chris Chesney— both

technical wizards. They will bring new programs that will take your diagnosticians to areas many of them will find completely new.” Seyfer said ASA’s board of directors and members of the association’s Mechanical Operations Committee “are excited” to present a different approach to training at CARS this year. “We surveyed members, asking what their biggest challenges were in running their business and repairing cars, and we took the dominant responses and sought out trainers to provide insight and new skills to solve those problems.” Said Seyfer, CARS is built for shop owners. “It’s built for your technicians and it is built for your sales staff,” he said. “ASA puts on a few ‘must attend’ programs each year. This year, CARS will be at the top of that list. See you in detroit!”

ASA-CO to Host Pinnacol Safety Meeting July 9 in Denver

On Wednesday, July 9, ASA-CO will host a Pinnacol Safety meeting entitled “Managing Safety Through Good Hiring Practices” at Pinnacol Assurance, located at 7501 E. Lowry Blvd in Denver, CO. The event will take place from 11:30AM until 1:00PM

and includes lunch. ASA-CO is hosting this event for all ASA Safety Group Members, totaling around 50 policyholders, and they expect around 15 to 20 attendees. For more information, call 303-2025231 or go to www.asacolorado.org

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Western Associations with Thomas Franklin

CAA Glendale-Foothill And Valley-Ventura Chapters Meeting June 2, 2014 The combined chapter meeting was held at the Odyssey Restaurant in Granada Hills, CA. The speaker was Michael Anderson, whose CollisionAdvice.com organization and Team of Advisors provides free Forms & Tools for the industry. Mike speaks more than 300 days a year and is much sought after for his presentations and Mike Anderson seminars. He was introduced by Glendale-Foothill Chapter president, Daniel Panduro, who also works closely with Mike. Danny noted that this is Part Two of a series of Chapter meetings focusing on putting all necessary repair operations on every estimate and getting paid for them! The meeting was sponsored by Finishmaster, arranged by Danard Cook. Mike’s theme for the evening was “Educate, Don’t Alienate” – the

proven method to successfully negotiate for required and necessary repair operation compensation. Mike noted that all elements and examples are based on standard economic principles, not price (that would be in violation of anti-trust law). Mike said to get paid for what you do, it must meet four criteria: 1. That it is necessary and required to restore a vehicle to pre-accident condition. OEM documents specify much of what is needed to prove this. 2. That it is not included in any other operation. The not-included information in the estimating systems is a good start. Mike provides much more. 3. That there is a pre-determined time specified for the operation. Beyond the estimating systems, All-Data, SCRS, DEG and others reference time studies for proof, but Mike has actually proven some of the times himself. 4. That the operation has real worth for the repair of the vehicle and its

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owner. Even just one question, “Is it a safe repair,” if answered affirmatively, proves worth for the customer. Mike stresses that each of these must be proved, not just opinion. He stresses that when an adjuster says “No,” he or she actually means, “I don’t KNOW enough to say Yes.” And it’s the shop negotiator’s responsibility to educate the adjuster to point of knowing enough to say “Yes.” He says the smart shop negotiator doesn’t wait until the time of the negotiation to document the proof. This, he says, will give the adjuster time to think of ways to say “No.” A common complaint is it takes too long to research the proof to substantiate each challenged operation. But Mike demonstrates with clear examples that even a gain of .1 (point one) for an operation, when accepted, can grow to a .2 and a .4 and be gradually accepted as always necessary. Mike’s list of reference materials provides adequate ammunition for any shop negotiator to win the day, but Mike notes that many shop estimators are little more than sign-up clerks. Only a hand-full of shops has astute estimator-negotiators who know how to document necessary operations and get paid for them. But the materials to do so are readily available. As noted, much of the time the estimating systems’ indication of “not-included items” is a good start. ASA’s “not-included chart” is updated annually. OEM bulletins cover much of what is needed and All-Data as an excellent

source can be integrated into ADP, CCC and Mitchell estimating systems. Other resources include SCRS’s “Guide to Complete Repair Planning” and DEGWEB.org. And after drawing on these resources, one can still create a pdf file of the estimate and take it to estimatescrubber.com to get a list of what may have been missed. And Mike’s own CollisionAdvice.com provides twelve free negotiating tools to give a shop a real negotiating edge. As his talk proceeded, it became obvious Mike has a deep, passionate love for these processes. He spent several thousand dollars of his own money videotaping challenged operations (there is an ABRN video on YouTube). He worked to get feather prime and block and final sand and polish properly paid for. He helped publicize the Blend Ruler (now available in many forms) and he personally demonstrated the true cost of cover car. Now he is creating an annual 200-question survey of operations to find out how many shops (1) always charge, (2) sometimes charge, (3) never charge, and (4) never ask. Throughout the talk, Mike referred members of the audience to go to his CollisionAdvice.com site for forms and tools. This site contains detailed information on all the estimating platforms, all the paint company memos, and all vehicle OEM manufacturers’ technical bulletins -- a virtual encyclopedia of whatever shop personnel need to get the job done. Mike can be reached at 301-535-3333.

Several Hundred Vehicles Suffer Hail Damage in IL Storm on May 22-23, Shop Gives Advice At Tuscola Auto Body on Parke Street in Tuscola, IL, people stood in line all morning to get their estimates. Mechanics looked over pockmarked trucks and sedans, many with broken windshields, seeing rather large dents on almost all panels of the vehicles, said Beverly Obrecht, who co-owns the shop with her husband. She took time to advise local consumers about how to handle a claim and the repair. “We expect to be busy. I think

the whole area will be busy,” she said. A late-day storm on May 22 dumped hail the size of pingpong balls and grapefruit throughout the area, with Douglas County hit especially hard. “Since I walked in this morning, I’ve been taking phone calls from people. More of the calls are for cars, although there’s also reports of damage to roofs, siding and some windows,” said Todd Edmundson, an See Hail Damage, Page 42

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 41

Northwest Associations with Chasidy Rae Sisk

ASA-NW’s Automotive Training Expo 2014 On March 21 through 23, ASA-Northwest held their 6th Annual Automotive Training Expo (ATE) at the Doubletree Hilton in Seattle, WA. With over 600 attendees and 83 exhibitors, the 2014 ATE marked the first year the event has been sold out. The goal of the event was to provide training for the automotive industry, including owners, managers and technicians, and ATE 2014 really delivered with 62 training sessions, six of which were I-CAR courses, taught by industry-leading professionals. Attendees raved about ATE 2014, and some of the feedback that ASANorthwest has received so far included the following: “2014 was the best ATE ever; my production team all brought back valuable information they could use the first day back to work, and my service advisors made subtle changes in how they function and brought up ARO and GP the first week back. If this improvement con-

tinues, we will pay the entire investment of sending six people to ATE back in three months just off of that, not including what the Techs learned!” “This was a premier event that allowed my team and I to increase our knowledge in all facets of our business as well as an amazing team building experience. It’s a no-brainer that we will be back next year, and I think every shop should attend.” “ATE teaches you to be better at your job.” “ATE is a great way for Automotive educators to get updated on current repair information. Attending is always a positive experience.” Jeff Lovell, President and Executive Director of ASA-Northwest, notes “this year, our sixth year, was sold out and exceeded our expectations. We have grown this event from the first year of 173 attendees to over 600 attendees going to training classes with 12,430 hours of training. We also had 83 exhibitors participate in our expo,

both Friday and Saturday evening. The expo floor was sold out three months in advance!” On Thursday, the National Automotive Service Task Force (NASTF) joined ATE to host their Spring 2014 General Meeting, and over 100 participants attended to discuss the topic of J-2534 Reprogramming. At breakfast on Saturday, renowned trainer Gary Smith presented “Success or Struggle,” and during lunch, Bryan Dodge taught attendees “How to Have Your Best Year Ever.” Throughout the event, ATE offered an impressive trade expo with exhibitors displaying automotive parts, repair equipment, shop management services, and specialty products. ATE attendees also had the chance to win a variety of door prizes which were distributed throughout the weekend. Lovell believes these types of association-sponsored events are important for members and the industry because it “brings our membership to-

gether to discuss issues affecting our industry, such as getting new technicians into the industry, environmental issues, legislative issues and networking. It is so gratifying to have ATE grow each year and that it has established itself as the West Coast’s premier training event. Our staff and volunteers help make this an exceptional event that provides quality training to all levels of the service and repair industry. In addition to ASA-Northwest, sponsors for ATE included the Northwest Tire Dealers Association, Auto Shop Solutions (the official social media sponsor), and “Parts & People Northwest” who was the official media sponsor of the event. ATE 2015 will be held on March 20-22nd at the Doubletree Hilton in Seattle, WA.

A new report released May 29, 2014 revealed a dramatic price gap between original equipment manufacturer (OEM) and aftermarket or alternative versions of the top 20 most commonly sold certified auto collision repair parts from 2009-2014. The study, compiled by the Quality Parts Coalition (QPC), found that the top 20 aftermarket parts that were tested by the Certified Automotive Parts Association were priced up to 50 percent less than OEM versions of the parts. Aftermarket versions of all of the top 20 were priced lower than the OEM versions; the average was 29 percent less expensive. These price differ-

ences have led to more than $80 million in consumer savings since 2009. “This report reinforces the importance of consumers having a choice when making collision repairs to their cars,” said Ed Salamy, Executive Director of the QPC. “Without competition, auto manufacturers would be free to charge inflated prices, and consumers would have no other options.” In recent years, automakers have begun exploiting a loophole in design patent law to limit access to alternative collision repair parts, forcing consumers to pay car companies more to fix their vehicles.

Bipartisan legislation has been introduced in both the U.S. House and Senate that would fix this loophole and safeguard consumers against price gouging. The Promoting Automotive Repair, Trade, and Sales (PARTS) Act of 2013 (H.R. 1663 and S. 780) would ensure consumer choice for auto collision repair parts is preserved and protect 60 years of competition that has existed in the auto repair parts market. “It is simply not fair to saddle consumers with higher repair and insurance costs as a result of car companies seeking to eliminate competition and charge monopolistic prices,” said

Jack Gillis, director of public affairs for the Consumer Federation of America. “This report highlights the extraordinary consumer savings inherent in a competitive marketplace and the need for Congress to pass the PARTS Act without delay. Consumers need to make their voices heard to ensure that happens.” The QPC says it is leading a grassroots effort to build support for passage of the PARTS Act at supportpartsact.com. QPC is providing information about the bill, including a 2-minute whiteboard video that attempts to explain its side of the issue in a clear and fast way.

Continued from Page 41

Extension. “Take notes, write down the date and time, who you talked to and what were your instructions,” she said. “If you’re stressed out, you can easily forget the company asked you to send something. You don’t want to delay a process because you forgot a step.” How the cars will be repaired (via conventional body repair or other tech-

niques) and for how long will vary based on the extent of the damage, she advised consumers. “These are not day jobs,” Obrecht said. Hail repairs can take a couple days to one to two weeks, possibly more, she said. The Illinois Insurance Association operates a consumer hotline, at (800) 444-3338, and if someone is upset

about how an adjuster is conducting the claim, the association can explain the process and offer tips on dealing with agents or adjusters. State Farm says Illinois residents filed 26,000 claims due to damage from wind and hail in 2013. That was second-most nationally—behind Texas (42,000) and ahead of No. 3 Georgia (25,000).

www.asanorthwest.com 253-473-6970

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Hail Damage

insurance agent with Country Financial in Tuscola. “Taking pictures or video of the damage is key,” said Kathy Sweedler, a consumer economics educator with University of Illinois

42 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Crashes Cost Almost $1T in Costs, Loss of Life, Pain

That includes $277 billion in actual cost, and an estimated $594 billion in “harm from the loss of life and the pain and decreased quality of life due to injuries,” a new U.S. Department of Transportation’s National Highway Traffic Safety Administration report said. Studying crashes in the U.S. in 2010, NHTSA counted up 32,999 fatalities, 3.9 million non-fatal injuries and 24 million damaged vehicles in “The Economic and Societal Impact of Motor Vehicle Crashes 2010.” The sweeping report takes in a lot of ground, particularly in calculating the “quality of life” losses. Among the factors considered in the direct losses of $277 billion, the report said, were $93 billion in lost productivity, $76 billion in property damage, $35 billion in medical expenses, and $28 billion in the costs of traffic-related congestion—like traffic jams and increased air pollution. The report concluded that drunk driving, speeding and “distraction” were key contributors. Drunk driving alone, the report said, accounted for 18% of the total economic loss from motor vehicle crashes, costing the economy as much as $199 billion in direct and quality-of-life losses.

SCRS Open Board Meeting on July 28th in Detroit

On Monday, July 28th, the Society of Collision Repair Specialists (SCRS) will hold an open board meeting from 3:00–5:00pm in Detroit. The meeting, held at the Marriott Renaissance Center located at 400 Renaissance Dr. West, Detroit, will be open to anyone wishing to learn more about the current state of the association's activities and pressing industry topics. The two hour meeting will include updates from SCRS staff and committees outlining current and future work initiatives each group has undertaken on behalf of the membership. It will include a presentation from the SCRS Education Committee who will be providing a detailed presentation surrounding aluminum repair approaches, techniques and considerations. Attendees are not required to be a member of SCRS to participate in this meeting. Anyone interested in learning more about the association, the work it does on behalf of the collision repair industry or interacting with the SCRS Board of Directors is encouraged to attend. Pre-registration is not required. For more information about SCRS, or to join as a member, visit our website at www.scrs.com.

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Young Technician’s Program to Debut at CARS

Automotive service and repair shop owners will want their young technicians to attend this unique symposium at this year’s Congress of Automotive Service and Repair (CARS), which will be held in Detroit July 30-Aug. 2. It was designed specifically for young technicians who shop owners believe have the skills to be all-star technicians. The Young Technician’s Symposium is a first time event at CARS and will be powered by Bosch. Targeting the twoto three-year technician, Bosch trainers will use interactive teaching methods to move young technicians to electrical and driveability diagnosis with confidence and speed. ASA is working with Bob Pattengale, training manager for Robert Bosch, to address the challenges young technicians face. Donny Seyfer, chairman-elect of the ASA, which sponsors CARS, said Bosch recently conducted a trial training program with members of ASA-CO. Out of that came a two-day, four-session program that would teach techs with two or more years’ experience real-world diagnostic skills in basic electronics, gas and diesel engine management, sensors and actuators, and electronic brake management, including ABS and vehicle stability systems.

AudaExplore Pledges $150K to SkillsUSA in Tool Grants

AudaExplore has pledged a threeyear commitment of $75,000 in tool grants that will be awarded to all high school and post-secondary collision repair and refinishing students competing at the national SkillsUSA contest. By working together with industry companies and their student product discounts, the retail value of these tools will exceed $150,000. The tool grants are meant to recognize the students’ outstanding efforts in qualifying to compete at the national SkillsUSA event and help prepare them for careers within the collision industry. “This donation aligns well with our LIFT charitable giving program, which focuses on helping those in need to build sustainable roots for lasting change,” said Rick Tuuri, vice president of industry relations, AudaExplore. “The U.S. Department of Labor projected the employment growth of the automotive body segment to be 13 percent from 2012 to 2022. SkillsUSA and the Collision Repair Education Foundation have done a fantastic job enhancing career opportunities for students to take advantage of this growth, and we are proud to be a part of it.”

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Chrysler Airbag Recall Being Probed by Regulators The automaker says 6 fixed SUVs from 2012 recall had inadvertent airbag deployments. Chrysler Group may be facing a recall do-over after the fix it initiated to stop inadvertent airbag deployments in older Jeep Libertys and Grand Cherokees failed in at least six instances to fix the problem, says a report in Automotive News. The National Highway Traffic Safety Administration said in documents filed on Monday that it had opened a query into the 2012 recall 744,822 Jeep Liberty SUVs from model years 2002 and 2003, and Jeep Grand Cherokee SUVs from model years 2002 through 2004. NHTSA said it plans to study the effectiveness of the nearly 2-year-old recall, which Chrysler launched on Nov. 7, 2012. Chrysler acknowledged in a statement that it had notified NHTSA of a half-dozen instances in which the SUV’s airbags deployed inadvertently while the vehicles were in operation after they had allegedly been fixed. “Chrysler Group LLC advised the National Highway Traffic Ad-

ministration of the six reports and, in accordance with the company’s longstanding practice, is cooperating fully with the resulting investigation. Customer safety is paramount at Chrysler Group,” the company said in a written statement. In 2012, Chrysler addressed the problem by installing an in-line jumper harness with an integrated electrical filter to eliminate electrical spikes that the company believed were causing the problem, according to the NHTSA documents. The safety agency had previously opened an investigation of the issue in October 2011 and three months later upgraded the probe. In the latest six cases in the NHTSA documents, no crashes were reported, but injuries consisting of cuts and burns were alleged. At the time of the recall in 2012, another 174,723 SUVs were affected in Canada, Mexico and outside of North America. The probe found 215 cases of inadvertent airbag deployments that resulted in 81 minor injuries in the United States but no crashes.

PartsTrader Integrates Hollander Interchange Codes

PartsTrader announced that it has in- cler whenever that code is available tegrated Hollander Interchange codes for the parts or assemblies required. within the PartsTrader application to The new functionality has been assist suppliers when they are quot- previewed in Illinois and New Jering recycled parts. sey, and is now available to PartThe Hollander Interchange is a sTrader users nationwide. 75-year old numbering system that “The repairers and recyclers indexes which parts are interchange- who have been using this feature in ableSouthwest among vehicles. For example, our preview areas have been pleased to this Edition? the timing cover for a 1976 GMC with the efficiencies it has delivered Truck also fits a 1969 Corvette. Hol- to them,” said Dale Sailer, Partlander Interchange Manuals cover sTrader’s vice president of business most foreign and domestic cars and development. “Our development autobodynews.com light trucks from the 1920s to the team has worked diligently on askpresent. The manuals cover more ing the right questions of repairers, than 150 mechanical and body parts and to display the Hollander codes and assemblies. in an easy-to-use manner for any ness with For information Promoteonyour business with quoting recycled parts. how to use supplier the Interchange, go to http://hollanPartsTrader’s goal is to continually featuring an exclusive article featuring derinterchange.net/How_To_In- improve our solution so that it reservices. structions.pdf.your products or services. duces the risk of getting the wrong In the PartsTrader system a col- parts and creates efficiencies for lision repair estimator will be asked, both the repairer and the supplier.” when appropriate, clarifying vehicle Said Rob Cooper, CEO of Partoption questions prior to sending out sTrader, “In meeting with recyclers a quote request for Call their specific part across the country, we’ve heard the or details! for details! needs. The estimator’s answers to need for integration with Hollander trigger Part- Interchange loud and clear, and it’s ex251 these questions will 800-699-8251 sTrader to display the appropriate citing to be able to respond to the marHollander code to the quoting recy- ket’s needs in such a positive way.”

NSF International’s Bob Frayer Earns Prestigious ASQ Quality Leader Award The Automotive Division of ASQ (American Society for Quality) recently awarded Bob Frayer of NSF International its prestigious Quality Leader of the Year Award for his leadership and NSF International’s commitment to testing and certifying aftermarket automotive parts. The ASQAutomotive Division Quality Leader of the Year Award recBob Frayer ognizes leaders in the automotive industry who exemplify outstanding dedication to quality. Over the past four years, Frayer (NSF International Global Managing Director Automotive) has significantly increased the number of certified automotive collision replacement parts available in the market, now covering more than 20,000 vehicle applications including models from all major auto companies. As background, NSF International is a global organization with 70 years of certification and testing experience. Frayer oversees NSF Interna-

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tional’s Automotive Collision Certification Program, which includes parts certification through which he and other NSF engineers independently evaluate and compare the form, fit and function of aftermarket parts to original equipment (OE) parts. The program helps ensure that collision parts meet quality, safety and performance standards through rigorous facility audits and parts testing. He also oversees the Automotive Collision Parts Distributor Certification Program which certifies distributors who sell automotive collision parts. “We are honored to recognize the achievements of Bob Frayer and NSF International for their dedication to continually advance the quality and safety of the aftermarket automotive parts industry,” said Jd Marhevko, ASQ Fellow and ASQ Automotive Division council member. “It is an honor to receive this award on behalf of NSF International from the ASQ. NSF International and ASQ are committed to quality improvement and standards, and to helping ensure that the safety and performance of auto parts contributes to that mission,” said Frayer.

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SCC Students Receive Nebraska Custom Association Scholarships One current and two future Southeast Community College students received scholarships from the Nebraska Rod & Custom Association. Conner Mogul of York, a third-quarter Automotive Technology student at SCC’s Milford Campus, received a $1,000 scholarship, along with Ben Nissen of Inland and Kurtis Siebert of Benedict. Nissen attends Adams Central High School in Hastings and plans to study both Automotive Technology and Auto Collision Repair Technology at SCC-Milford beginning in July. Siebert, who attends York High School, plans to study Auto Collision Repair Technology at SCCMilford beginning in January. Tyler Arends of Ord, who attends Central Community College, also received a $1,000 scholarship from the NRCA. He works part-time at Valley Thunder Rods & Restoration in Ord. Continued from Cover

Springfield SWAT

and Dave Maute with Allstate Insurance all donated more than $100,000

Mogul plans to pursue a bachelor’s degree in business administration when he completes his studies at SCC.

Perry Siebert congratulates his son, Kurtis Siebert, who attends York High School and plans to study Auto Collision Repair Technology at SCC-Milford beginning in January, on receiving a $1,000 scholarship from NRCA Scholarships

He has worked for his father, who is a mechanic and owner of Mogul’s Transmission & Towing in York. Nissen has been working parttime at Snyder Street Rods in Hastin parts, labor and cash to transform the old Brinks truck into a rescue vehicle for the Special Operations Team. Maine said the teamwork and collaboration among the Spring-

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ings. His scholarship is funded by TriCity Street Rods. Siebert has worked with his father and grandfather at Siebert Custom Paint & Body in Bradshaw. He also has worked at C&L Machine & Engine Works. In order to be eligible for the scholarship, students must be in their second year of college or be a 2014 high school graduating senior who will enroll in an automotive program in one of Nebraska’s technical and/or community colleges. Other criteria for the scholarship includes holding a minimum 2.5 grade-point average in high school or college, demonstrating responsibility and willingness to work toward vocational achievement and being enrolled in a minimum of 12 credit hours. The NRCA Scholarship Committee reviews all of the application materials, including the quality of

a 250-word personal statement. Six students were interviewed. The NRCA is a special-interest group with approximately 1,400 members in Nebraska whose focus is on vintage and classic cars. Each year the organization awards scholarships to students in or entering an automotive-related field of study. For 10 years NRCA has worked and found ways to raise money to fund scholarships for students attending one of Nebraska’s six community colleges and studying automotive technology, auto body or any other automotive-related curriculum. A small portion of each members’ dues is earmarked for this rewarding effort of the association. The NRCA also uses the proceeds from the sale of merchandise, work it has completed for others, and direct donations.

field and Clark County businesses made the finished product so spectacular. “Anyone that we talked to that we needed something, when I went and asked, they gave,” Maine said. “The Special Operations Team is working constantly trying to get equipment and do the things they need to do and so (helping with the truck) just made sense.” Police and the Special Operations Team began looking into an armored vehicle after Clark County Sheriff’s Deputy Suzanne Hopper was killed by a gunman as she was responding to a shots fired call at Enon Beach campground in 2011. It was then that the law enforcement community realized it needed special equipment to help protect officers responding to dangerous situations, said Springfield Police Chief Stephen Moody. Sgt. Joe Tedeschi with the Springfield police researched a program where Brinks of Dayton sold old armored transportation vehicles to some organizations for a discounted price. Police bought their Brinks truck for just $10. Once the truck was in Springfield, police consulted Maine, who had helped the Police Division with some repairs to another vehicle they had purchased in the past. Maine and his business partner John Hawke Jr. worked on the truck and continually thought of new security measures to add to the SWAT vehicle, said Sgt.

Brian Peabody, commander of the Special Operations team. “It was a rough Brinks truck,” Maine said. Upon research, the group that helped remodel the vehicle discovered the truck was actually built at Navistar in Clark County in the 1980s. Maine and Hawke added a steel grate to the front of the vehicle that can demolish ammunition fired from highpowered machine guns, Maine said. They also added retractable steps that SOT members can utilize to ride on the side of the truck. The entire truck was outfitted with extra armor to make it bulletproof. With the help of Mike Willis, Jason Barlow and Bob Thaxton from Navistar and the UAW Local 402, replacement parts for the truck’s old suspension system and brakes were donated. Navistar also donated its time to install the new parts. When the project was complete, just more than $2,000 of money from the city’s budget was put into the truck, Moody said. The way local business joined to help complete the project shows how the idea of community policing comes together, he added. “We all know that no matter what our vocation, that we can reach out to the members of the business community, law enforcement and manufacturers and put our heads together to solve the problem,” Moody said.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 45

New Study Says More Than 75% of All Pickup Trucks will be Aluminum-Bodied by 2025 Marketing research firm Ducker Worldwide is predicting that once the 2015 Ford F-150 debuts and works out the bugs with dealerships and the auto repair industry, other truckmakers will likely to follow suit. A study conducted by Ducker Worldwide for the Aluminum Association’s Aluminum Transportation Group (ATG), projects that, by 2025, more than 75 percent of all new pickup trucks produced in North America will be aluminum-bodied. The study surveyed all major automakers and reports Ford, General Motors and Fiat Chrysler will become the biggest users of aluminum sheet in the next decade. It also forecasts that the number of vehicles with complete aluminum body structures will reach 18 percent of North American production, from less than one percent today. Vehicle segments revealed as emerging aluminum content leaders are pickup trucks, sport-utility vehicles (SUVs) and both mid-sized and full-size sedans. The study finds that every leading automaker will have numerous aluminum body and closure programs by 2025. As the material mix for body and closure parts continues to change dramatically in the years to come, use

of aluminum sheet for vehicle bodies will increase to 4 billion pounds by 2025, from 200 million pounds in 2012. “The numbers tell a powerful story of aluminum’s explosive growth across the automotive sector,” said Tom Boney, chairman of the Aluminum Association’s Aluminum Transportation Group and vice president and general manager of automotive for Novelis in North America. “Within the next ten years, seven out of 10 new pickups produced in North America will be aluminum-bodied, and so too will be more than 20 percent of SUVs and full–sized sedans.” The ATG commissioned global consulting and research firm Ducker Worldwide to conduct the 2015 North American Light Vehicle Aluminum Content Study. Through detailed inperson interviews with automotive original equipment manufacturers (OEMs), component suppliers and regulators, Ducker Worldwide maintains a comprehensive material use database to track material and mass of individual components for every vehicle model manufactured in North America. The findings were compiled using data updated and verified between October 2013 and April 2014.

I-Car® Conference on Future of Collision Repair and Automotive Industry, July 30 In Detroit

I-CAR® announced that registration is now open for the 2014 I-CAR Conference, which will be held on July 30, 2014 at Cobo Center in Detroit. This year’s Conference picks up I-CAR’s technology advancement discussion started at the company’s 2013 Conference and will provide executives and leaders across the industry further insight into the challenges and opportunities surrounding the Technical Tsunami. John McElroy, host of Autoline Daily and Autoline This Week, will return to moderate this year’s I-CAR Conference. The Conference will feature an expanded lineup of speakers from Ford Motor Company, Oak Ridge National Laboratory, Steel Market Development Institute, Alcoa, University of Michigan, Robert Bosch LLC and more. Key topics will include: • Ford: A high impact session covering OEM strategies related to CAFE, details on the new aluminum F-150, and Ford’s enhanced Collision Repair Service Strategy • Lightweighting: Advancements and trends in Carbon Fiber, Advanced Steels, Aluminum • The Changing DNA of the Ve-

hicle: Reinventing the Automobile • Advanced Electronics, Communications and Safety: Vehicle Wide Driver Safety Systems: V2X Deployment, and how Vehicle Data will reshape our industry I-CAR has also announced new, reduced pricing for this year’s Conference to encourage more of the industry to attend and hear about the important challenges being faced. The admission price is now just $250 for Early Bird registration—a promotion that is running from now through June 14. As an added bonus, all I-CAR Conference attendees will receive a FREE pass to the NACE/CARS expo, also being held at the Cobo Center on July 31 and August 1. In addition to insightful and thought-provoking presentations and panel discussions, the I-CAR Conference also offers numerous networking opportunities, including an evening reception celebrating I-CAR’s 35th Anniversary, complete with live entertainment. For more information and details on how to register, please visit: http:// i-car.cvent.com/2014Conference.

46 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

“Aluminum-bodied cars and trucks are coming in a big way, and soon. Consumers won’t visibly notice a different metal under the paint, but they’ll see greater savings at the gas pump and experience better performance and handling at the wheel,” added Boney. Additional findings from the study include: For 2015, pickup trucks will contain the most aluminum at 548.9 lbs. per vehicle, followed closely by E segment sedans at 546.9 lbs., SUVs at 410.3 lbs. and minivans at 396.5 lbs. The average aluminum content in 2015 will be up 44 pounds per vehicle or 13% over 2012. Total North American light vehicle aluminum consumption will increase 28% in 2015 over 2012. Tesla, Mercedes, BMW and Ford will all exceed the average aluminum content and the average aluminum share of curb weight for 2015. By 2025, 26.6% of all the body and closure parts for light vehicles in North America will be made of aluminum. Total North American aluminum content in 2025 will be 10 billion pounds.

Aluminum hood penetration will reach 85% and doors will reach 46%; complete bodies will reach 18%, from less than one percent today. Globally, light vehicle aluminum content will approach 35 billion pounds by 2025 making light vehicles the most important global market for aluminum. In a separate analysis, Bank nalyst John Murphy said that Ford’s aluminum F-150 will determine whether consumers are willing to pay a premium for a larger-but-lighter vehicle. The 2015 F-150 could be efficient enough to meet future U.S. fuel economy standards without requiring Ford to offset its performance by selling more small cars, he said. If Detroit auto makers can succeed at slashing weight from their large SUVs and pickups, Murphy said, “you could see an environment where [their sales] perform really well.” Heavy-duty pickups and SUVs are big moneymakers for Detroit auto makers and efforts to make them more fuel efficient would keep the profits flowing.

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Employee, 23, Killed at Baton Rouge Upholstery Shop A talented young automotive audio tech was gunned down the night of June 1 at the auto body shop where he worked on Greenwell Springs Road, leaving friends, family and detectives searching for answers. Nicholas Brumfield, 23, was shot and killed about 10 p.m. at Red’s Auto Upholstery, where he installed car audio systems. Baton Rouge police found Brumfield inside the business. He had been shot multiple times, said Cpl. Don Coppola. Police do not have a motive or suspect in the shooting, Coppola said. Coppola said he could not disclose how many times Brumfield was shot, but friends and co-workers standing outside the business said Brumfield had been shot about seven times, including several times in the head. The owner of Red’s Auto Upholstery, who did not provide his name, said he along with a few other people were at the shop when Brumfield was shot, but he was in the back of the building and Brumfield was in the front when the shooting occurred. Baton Rouge Police have asked the public to contact them with information at 225-389-3948.

Pack Brothers in Belmont NC Wins Short Pay Arbitration

Caliber Acquires MSOs in Los Angeles and North Carolina

Caliber has acquired two multiple colPack Brothers Collision Center in lision repair shop operators with a total Belmont, N.C., has won a short-pay of nine locations—four in Los Angeles arbitration case in a North Carolina and five in Raleigh, NC. The North court against Allstate. Carolina acquisition is the first location On May 27, a Lincoln County for Caliber in the eastern U.S. judge ruled in favor of awarding a Pack Caliber Collision Centers anBrothers customer $891.72, which was nounced that it acquired Classic Colliowed to the body shop for collision resion Center, Inc., with four locations in pairs that the insurer refused to pay after greater Los Angeles: (Los Angeles, the insured’s car was fixed. The shortPasadena, Tujunga, and La Crescenta), pay litigation was filed by Ronnie Pack, and Haddock Collision, a dominant reowner of Pack Brothers, on behalf of pairer with five locations in the Raleigh, his customer using a Power of Attorney. North Carolina market (Raleigh, WakeAccording to the insured cusfield, Cary-Crossroads, Cary-Maynard, tomer’s policy, Allstate is obligated and Fuquay-Varina.) to pay for necessary and proper reClassic Collision was founded in pairs of his vehicle. The total amount 1980 and Haddock in 1972. charged for repair of the vehicle was www.autobodynews.com Caliber Collision CentersSteve $3,445.27, but the insurer only paid Grimshaw, Collision Chief ExCHECKCaliber IT OUT! $2,503.55 for the damages. ecutive Officer commented, “Our acquiThe customer is entitled to the sition of Classic Collision Center, Inc. full amount of $891.72 owed to Pack continues to offer more customer choices Brothers plus interest accrued since in the Southern California market. After his accident, attorney fees and any spending time with Classic Collision’s other punitive damages. management team, it was obvious that Classic Collision aligns perfectly with To by advertise Caliber delivering industry-leading callcustomer Advertising Sales at:all four Los satisfaction across Follow us on Twitter: Angeles locations.” 800-699-8251 “We are proud that Classic Collie-mail: sion Center is now a part of the nation’s leading collision repair provider,” said Accept no Substitutes! advertising@autobodynews.com Majic Berenji, Classic Collision Presiwww.autobodynews.com dent. “This combination will allow the company to continue to grow, while

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providing Classic Collision’s customers with even higher standards of quality and personal service that has become our trademark. It will also provide Classic Collision’s staff and their families’ new advancement opportunities and a secure future in the dynamic collision repair industry.” “Our acquisition of Haddock Collision Centers in North Carolina represents our first of many acquisitions to come in the eastern U.S. I am very excited to have Todd McGowan, and the entire Haddock Collision organization, join forces with Caliber,” Give us your opinion on matters said Grimshaw. With these acquisitions Caliber now operates 177 collision repair facilities in Arizona, California, Colorado, Nevada, New Mexico, North Carolina, publisher@autobody Oklahoma, and Texas.

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Culpeper, VA, Man Charged after Body Shop Standoff See the NEW

A Culpeper man involved in a stand- the property. After about two hours of off at a Madison County auto body negotiations, Cole surrendered. shop was taken into custody on May Cole, who was an employee at 28 and is nowwww.autobodynews.com facing charges. Skyline Restoration, has been According to police, a standoff charged with reckless use of a started shortly after 7:30 a.m. when firearm. He is currently being evaluDavid Allen Cole, described as an “ac- ated under an emergency custody tive shooter,” entered Skyline Restora- order. Police say no one was injured tion, an auto body shop on Route 29 in during the standoff, including the susMadison. Someone working at the shop pect. Those involved credit the teamcalled police. work of a number of law enforcement “According to the caller, one shot agencies for that. advertise had To already been fired and a second “It was amazing to see nearly 20 call Hartman at:caller was on organizations come together in a matshotSean was fired while the the phone with dispatch,” said Erik ter of minutes,” said Ernie Hoch, 800-699-8251 Weaver, Madison County Sheriff. Madison County administrator. Madie-mail: Cole, 42, stayed inside the shop son County Schools, located half a shartman@autobodynews.com from 7:30 a.m. until his arrest shortly mile from the scene, were put on after 10 a.m. When law enforcement lockdown while the standoff took www.autobodynews.com first arrived the employees had al- place but the lockdown has now been ready left the shop safely and Cole lifted. Police say no students were inwas the only one inside. volved in the standoff. “After several minutes the susPolice were also forced to shut pect came to the door displaying the down Route 29 in Madison in both difirearm. The deputies challenged the rections while trying to get the sussuspect at which time he pointed the pect in custody. firearm to his throat,” said Weaver. “The establishment was also Police say Cole had a semiauto- very close to Route 29. We did not matic 9 mm gun to his throat the en- want a stray bullet leaving the vicintire time. Authorities also say a total ity and striking vehicles going up and of five empty casings were found on down Route 29,” said Weaver.

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