July 2020 Midwest Edition by Autobody News

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Hundreds of Individuals in the Industry Get Much-Appreciated Help from Foundation by John Yoswick

Bryan Kim’s collision and mechanical repair business, like many others, was struggling this spring as the COVID-19 virus and economic shutdown hit the Catonsville, MD, area. Sales at ASE Auto Center were down as much as 50% some months, not enough to cover rent and payroll. “We started bleeding money a little than some shops, that actually shut down for a week or two, but once we started, we bled a lot of money,” said Kim, who has owned the nine-employee business for seven years.

Adding to the challenge: Kim’s fiancé and his shop manager’s wife both contracted COVID-19, forcing Kim and his manager to each stay away from the shop for several weeks. “I didn’t want to bring it to the facility, and luckily no one who works here got sick,” he said. The situation was made a little bit easier, he said, because of some assistance from the Collision Industry Foundation, the nonprofit dedicated to providing emergency financial help or other assistance to members See Help from Foundation, Page 18

8 Things to Know in the Wake of Civil Disorders by Patricia L. Harman, PropertyCasualty360

Following days of riots and protests in cities and towns across the country in the wake of George Floyd’s death, there are many questions concerning insurance coverage, how to manage the risks and what other factors business and property owners should address in the aftermath. According to the Insurance Information Institute website, there is a cost to these events. Before the riots in Minneapolis and other areas—for which numbers are not yet available—the most expensive civil disorder events occurred from April

29 through May 4, 1992, in Los Angeles, following the acquittal of the police officers involved with the arrest and beating of Rodney King. Property Claims Services (PCS), a unit of Verisk Analytics, found the riots and looting caused $775 million in insured losses. More recently, there were $24 million in insured losses following the civil unrest that occurred in Baltimore, MD, in 2015 following the death of Freddie Gray, who died while in police custody after he suffered a spinal cord injury. Here are eight factors to considSee 8 Things to Know, Page 36

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How CIF Assistance Has Benefited Collision Repair Professionals in Time of Need by Stacey Phillips

When the coronavirus restrictions were first put into place, the Collision Industry Foundation (CIF) recognized the challenges being faced by the industry. As a result, the nonprofit organization set up a special COVID-19 fund to support collision repair professionals impacted by the pandemic. “Since 2001, CIF has been dedicated to raising, managing and donating funds to provide emergency relief to collision repairers who have

been impacted by natural disasters or other catastrophic events,” said Michael Quinn, CIF board president and SVP of business development at AirPro Diagnostics. “The donations we received for the COVID-19 fund were vital to help repairers across the country.” CIF established the fund with $100,000 raised previously, and CCC Information Services matched that amount. Other industry organizations and individuals then donated to the fund, including AirPro Diagnostics, Guy Bargnes, Colette See CIF Assistance, Page 20

How Hertz’s Forced Fleet Sale Could Affect the Used Car Market by Chris Brown, Auto Rental News

The sub headline under the Hertz bankruptcy is “Hertz fire sale will flood the used car market and depress prices.” This analysis won’t get us closer to knowing exactly to what extent pricing will be affected—if anyone can do that—but it will reveal the extent of the situation. To understand the moving parts, we need to understand approximately how many vehicles Hertz needs to sell, by when, the outlets for those sales, and then put it in context of the larger market. As a benchmark, let’s start with Hertz’s reporting of 518,580 vehicles in its U.S. fleet as of March 31. That figure should be lower as of the bankruptcy, as Hertz was able to return its guaranteed depreciation (program) units to the manufacturers. (In the fourth quarter of 2019, Hertz reported 29% of its vehicles were program cars, though that percentage has likely dropped to date in the second quarter.)

Hertz had the ability to cut its workforce in half because of the pandemic, but it can’t realistically cut fully half of its fleet due to the decline in demand. Though the ABS holders want to get paid sooner than later, they’ll need to allow Hertz enough of a cushion to operate.

We hear the insurance replacement business remains strong—remember Hertz owns the State Farm business—and assuming an estimated 40% utilization, that means roughly 210,000 cars are on the road right now. A realistic cushion that also meets potential increases in demand would mean Hertz could realistically sell off 130,000 vehicles, but not more than 200,000. Of course, this See Hertz’s Fleet Sale, Page 16

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CONTENTS

SEMA Show Attendee Registration Open

REGIONAL

for Automotive and Collision Repair

AASP-MN Awards Scholarships to

Shops for Beyond COVID ��32

GM’s Former Plant in Lordstown, OH, Will

Bipartisan PPP Flexibility Act Sails Through Senate ��46

Return to Mass Vehicle Production,

Carma Project Rewarding Replacing Airbags ��6

Thousands of Jobs ��14

CIC Goes Virtual for July Conference ��46

IL Attorney General Calling Businesses About Social Distancing Violations ��10 Kendall Performance & Repair on How Mentorship Has Helped as a Small Business Owner ��8 Michigan Orders Auto Insurance Companies to Issue Refunds to Drivers ��23 MN Governor Reopens Gyms, Indoor Dining on June 10, Relaxes Other Restrictions ��13 Parts Stolen From Cars Up for Veteran’s Donation at MO Auto Body Shop ��10 Pontiac Fiero Collection Destroyed in Michigan Flood ��12 Vitro to Close IN Plant ��6

CREF Announces Online Virtual Golf Fundraiser ��12 Ford Cautions Against the Use of

Anderson - Determining Whether—and How—to Charge for OEM Research ��34 Day Job/Night Job: Collision Writer Launches Fun Art Project in Quarantine, Now Hundreds of People Want His Pet Drawings ��42 Yoswick - Shops Share More Ideas on How to Get Work In the Door ��26

GM Designates $10M for Inclusion,

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

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes �� 6

Laurel Auto Group of Westmont �� 37

Audi Wholesale Parts Dealers �� 38

Luther Bloomington Acura-Subaru �� 21

BMW Wholesale Parts Dealers �� 43

Matrix Automotive Finishes �� 2

Car-O-Liner �� 11

McGrath City Hyundai �� 20

Car-Part.com �� 12

MINI Wholesale Parts Dealers �� 42

Certified Collision Group (CCG) �� 7

MOPAR Wholesale Parts Dealers ��28-29

Classic Chevrolet �� 31

Morrison’s Auto Parts �� 14

Classifieds �� 46

Nissan/Infiniti Wholesale Parts Dealers �� 44

Courtesy Subaru �� 35

Patrick BMW MINI �� 34

Eagle Abrasives, Inc �� 13

Patrick Hyundai �� 30

Eliminate Most Crashes ��4

Eckler’s Automotive �� 23

PPG Refinish �� 9

SEMA Show Attendee Registration Open ��3

Equalizer Industries, Inc �� 8

SATA Dan-Am Company �� 5

Silicon Valley Tech School Pushes Through

Gandrud Parts Center �� 17

Sears Imported Autos, Inc �� 10

GM Wholesale Parts Dealers �� 41

Shaheen Chevrolet Parts Warehouse �� 39

Haldon Company �� 15

Spanesi Americas �� 22

Hawkinson Kia �� 16

Subaru Wholesale Parts Dealers �� 40

Honda-Acura Wholesale Parts Dealers ��24-25

The Porsche Exchange �� 26

Hyundai Wholesale Parts Dealers �� 47

The Sharpe Collection of Automobiles �� 27

Innovative Tools & Technologies, Inc �� 19

VanDevere Chevrolet �� 33

Across Network ��47

Kelly BMW �� 18

VanDevere Kia �� 33

Women in Auto Care Accepting Entries ��36

Kia Wholesale Parts Dealers �� 45

Zimmer Chrysler-Dodge-Jeep-Ram �� 48

Racial Justice ��38 GM Has a New Plan to Overtake Tesla, and It Starts With an Electric Van ��36 How CIF Assistance Has Benefited Collision Repair Professionals in Time of Need ��1 How Hertz’s Forced Fleet Sale Could Affect the Used Car Market ��1 Hundreds of Individuals in the Industry Get Much-Appreciated Help from

NY Body Shop Owner and Landlord Forgives Rent for 200 Tenants ��44 Postponed NORTHEAST 2020 Now Canceled ��13 Riots in Wake of Floyd’s Death Could Become Most Costly Civil Disorder for Insurers ��43 Self-Driving Vehicles Could Struggle to

Pandemic ��30 NATIONAL 8 Things to Know in the Wake of Civil Disorders ��1 All Girls’ Bogi Lateiner Discusses Post Corona Customer Care and Communications ��39 ATI Shares Five-Step Rapid Recovery Plan

begin its path to recovery, positioning the SEMA Show to be vital in helping businesses move toward a successful 2021. Show organizers are actively working with leading experts to develop standards and protocols that will create an optimal environment to conduct business while emphasizing the health and well-being of those at the event. Education, new products and trend spotting are the typical draws at the event, and this year will continue based on the support the industry has shown thus far. Source: SEMA

Aftermarket Glass ��38

Foundation ��1 COLUMNISTS

The annual gathering featuring automotive innovation is set to take place in the fall, at a time when analysts anticipate the marketplace will

Tesla Is Now Worth More Than GM, Ford, FCA Combined ��4 Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus ��47 Volkswagen Activates ‘Sign Anywhere’

INDEX OF ADVERTISERS

Automotive Students ��6

Registration for the 2020 SEMA Show, Nov. 3–6 at the Las Vegas Convention Center in Las Vegas, is available at www.SEMAShow. com/register.

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

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Self-Driving Vehicles Could Struggle to Eliminate Most Crashes Driver mistakes play a role in virtually all crashes. That’s why automation has been held up as a potential game changer for safety. But autonomous vehicles might prevent only around a third of all crashes if automated systems drive too much like people, according to a new study from the Insurance Institute for Highway Safety. “It’s likely that fully self-driving cars will eventually identify hazards better than people, but we found that this alone would not prevent the bulk of crashes,” said Jessica Cicchino, IIHS vice president for research and a coauthor of the study. Conventional thinking has it that self-driving vehicles could one day make crashes a thing of the past. The reality is not that simple. According to a national survey of police-reported crashes, driver error is the final failure in the chain of events leading to more than nine out of 10 crashes. But the Institute’s analysis suggests only about a third of those crashes were the result of mistakes that automated vehicles would be expected to avoid simply because they have more accurate perception than human drivers and aren’t vulnerable to incapacitation. To avoid the other two-thirds, they would need to be specifically programmed to prioritize safety over speed and convenience. “Building self-driving cars that drive as well as people do is a big challenge in itself,” said IIHS Research Scientist Alexandra Mueller, lead author of the study. “But they’d actually need to be better than that to deliver on the promises we’ve all heard.”

for the road conditions, driving aggressively or leaving too little following distance from the vehicle ahead. • “Execution and performance” errors included inadequate or incorrect evasive maneuvers, overcompensation and other mistakes in controlling the vehicle. • “Incapacitation” involved impairment due to alcohol or drug use, medical problems or falling asleep at the wheel. The researchers also determined some crashes were unavoidable, such as those caused by a vehicle failure like a blowout or broken axle. For the study, the researchers imagined a future in which all the vehicles on the road are self-driving. They assumed these future vehicles would prevent those crashes Will autonomous vehicles be better than humans at caused exclusively by perpredicting, planning and execution? ception errors or involved an towed away, and emergency medical incapacitated driver. That’s because cameras and sensors of fully autonservices were called to the scene. The IIHS team reviewed the omous vehicles could be expected case files and separated the driver-re- to monitor the roadway and identify lated factors that contributed to the potential hazards better than a human driver and be incapable of distraction crashes into five categories: • “Sensing and perceiving” er- or incapacitation. Crashes due to only sensing rors included things like driver distraction, impeded visibility and fail- and perceiving errors accounted for ing to recognize hazards before it was 24% of the total, and incapacitation too late. accounted for 10%. Those crashes • “Predicting” errors occurred might be avoided if all vehicles on when drivers misjudged a gap in traf- the road were self-driving―though fic, incorrectly estimated how fast it would require sensors that worked another vehicle was going or made perfectly and systems that never an incorrect assumption about what malfunctioned. The remaining twoanother road user was going to do. thirds might still occur unless auton • “Planning and deciding” errors omous vehicles are also specifically included driving too fast or too slow programmed to avoid other types of To estimate how many crashes might continue to occur if self-driving cars are designed to make the same decisions about risk humans do, IIHS researchers examined more than 5,000 police-reported crashes from the National Motor Vehicle Crash Causation Survey. Collected by the National Highway Traffic Safety Administration, this sample is representative of crashes across the U.S. in which at least one vehicle was

predicting, decision-making and performance errors. Consider the crash of an Uber test vehicle that killed a pedestrian in Tempe, AZ, in March 2018. Its automated driving system initially struggled to correctly identify 49-year-old Elaine Herzberg on the side of the road. But once it did, it still was not able to predict she would cross in front of the vehicle, and it failed to execute the correct evasive maneuver to avoid striking her when she did so. Planning and deciding errors, such as speeding and illegal maneuvers, were contributing factors in about 40% of crashes in the study sample. The fact deliberate decisions made by drivers can lead to crashes indicates that rider preferences might sometimes conflict with the safety priorities of autonomous vehicles. For self-driving vehicles to live up to their promise of eliminating most crashes, they will have to be designed to focus on safety rather than rider preference when those two are at odds. Self-driving vehicles will need not only to obey traffic laws, but also adapt to road conditions and implement driving strategies that account for uncertainty about what other road users will do, such as driving more slowly than a human driver would in areas with high pedestrian traffic or in low-visibility conditions. “Our analysis shows that it will be crucial for designers to prioritize safety over rider preferences if autonomous vehicles are to live up to their promise to be safer than human drivers,” Mueller says. We thank IIHS for reprint permission.

Tesla Is Now Worth More Than GM, Ford, FCA Combined by Brad Bergan, Interesting Engineering

Toyota is no longer the most valuable automaker in the world. Tesla has ascended to the top position, worth more than Ford, GM, and FCA combined, according to a handy fan-made spreadsheet. With a market capitalization valued at roughly $185 billion, Tesla is now worth more than Volkswagen Group, Daimler, Toyota, Honda and Daimler. The fan-made spreadsheet was made using Yahoo and Google data

to track automaker valuation, and it showed Tesla surging to first place on June 10. As of writing, Tesla’s stock is sitting at roughly $1,014 per share, after a rise of roughly $72 from June 9. This places more valuation distance between Tesla and other U.S. rivals Ford, GM, and FCA. As of June 10, GM’s worth was roughly $41 billion, with Ford at $27 billion and FCA sitting at roughly $20 billion. For a long time, Tesla’s market valuation was more than all three, but then the stock continued its upward motion until the all-electric au-

tomaker cemented a major milestone, according to CNET. The all-electric automaker has seen consistent market value growth, which gave CEO Elon Musk a payday of roughly $700 million earlier in 2020. Musk doesn’t take a salary as CEO of the company, but he still earns stock options at a low price to sell at market rate whenever he chooses. However, there’s little data available to explain the recent jump in valuation. Wedbush Securities lifted its target share price to $1,000 on June 10. The investment

firm pointed to “game-changing” developments as a reason behind the lift in target price. Skeptics of Tesla’s valuation have surrounded the all-electric automaker for years. In January, Bank of America analysts forecasted a 12-month average stock price of only $350 for Tesla. While the company’s stock value did fall near to that level in March, it has since made an impressive comeback. We thank Interesting Engineering for reprint permission.

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Carma Project Rewarding Replacing Airbags Carma Project on June 4 announced the launch of a program that pays vehicle owners to get their defective Takata airbag replaced. This program comes at a time when millions of owners continue to drive their vehicles to access essential businesses amid the COVID-19 crisis. This all-new program―which includes the reward of a $50 Amazon gift card―will further help address the recall of deadly Takata airbags. Despite extensive efforts by manufacturers, such as recall letters, public service announcements and dealer interventions, more than 12.5 million defective Takata airbags are still on the road today. Carma Project’s COVID-19 airbag recall program will stay in effect while supplies last. To participate, visit www.carmaproject. com/covid19 to download the Carma Project app and check your car. Source: Carma

AASP-MN Awards Scholarships to Automotive Students The Alliance of Automotive Service Providers of Minnesota (AASPMN) is pleased to announce scholarship awards totaling $19,500 to help automotive service and collision repair students pay for tuition or tools during the 2020-21 school year. The scholarships are in the amount of $1,000 or $1,500 and were made possible by a successful fundraising drive within the AASPMN membership, as well as generous donations from the Minnesota State I-CAR Committee and the Bill Smith Fund. Twenty college and high school students from seven schools submitted scholarship applications. Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations. The recipients are: Austin Allison, South Central College, North Mankato – Auto Body Collision Repair Carter Brandes, South Cen-

tral College, North Mankato – Auto Body Collision Repair Carisa Camarillo, Lake Superior College, Duluth – Auto Body Collision Repair Clifton Draghine II, Hennepin Technical College, Eden Prairie – Automotive Service Technology Dylan Draxten, Dunwoody College of Technology, Minneapolis – Automotive Service Technology Holly Isdahl, Dunwoody College of Technology, Minneapolis – Auto Body Collision Repair Makaila Kewatt, Hennepin Technical College, Eden Prairie – Auto Body Collision Repair Madyan Khidir, MN State Community & Technical College, Moorhead – Automotive Service Technology Luis Mendoza Martinez, Hennepin Technical College, Eden Prairie – Automotive Service Technology Khoa Luc Nguyen, Hennepin Technical College, Eden Prairie – Automotive Service Technology Reed Patterson, Lake Superior College, Duluth – Automotive Service Technology

Logan Peterson, Ridgewater College, Willmar – Automotive Service Technology Matthew Pipes, South Central College, North Mankato – Automotive Service Technology Mitchell Robertson, South Central College, North Mankato – Automotive Service Technology Kaleb Vanhavermaet, Ridgewater College, Willmar – Automotive Service Technology Holden Whiting, Dunwoody College of Technology, Minneapolis – Automotive Service Technology Sean Wood, Dunwoody College of Technology, Minneapolis – Automotive Service Technology Congratulations to all of this year’s recipients! The scholarship awards are the centerpiece of AASP-MN’s Automotive Education Fund, established to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry. Source: AASP-MN

Vitro to Close IN Plant by Emmariah Holcomb, glassBYTEs.com

Vitro Automotive Glass (Vitro) has announced it is closing its auto glass manufacturing plant in Evansville, IN, by the end of the year.

According to Vitro, the economic impact of COVID-19 was a factor in the decision. Vitro previously had announced two of its lines would cease production. “In mid-April, Vitro advised employees of the possibility of closing the remaining lines, given the growing severity of the economic impact from the coronavirus pandemic and impacts on U.S. auto manufacturing,” a portion of the company’s release reads.

According to the company, it had been working on a turnaround plan for the Evansville Plant since 2019. “Unfortunately, the unprecedented disruption on the U.S. auto market created significant excess capacity and made it impossible for Vitro to complete the turnaround plan and return the plant to profitability,” a portion of the company’s release reads. Vitro’s employees have been informed that the company expects its Evansville facility employees to be “separated from employment due to the closing” at various times beginning on or about July 31. According to the company, the final closing will be on or about Dec. 31. “This is a very challenging time, and a very difficult decision for our company,” said Salvador Minarro, president of Vitro Automotive Glass. “We will ensure support to our employees and families through this time.” We thank glassBYTEs.com for reprint permission.

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Kendall Performance & Repair on How Mentorship Has Helped as a Small Business Owner by Paul Kobylensky, Input Fort Wayne

From a very young age, Kendall Riecken knew his career path would involve automobiles. Having been obsessed with the auto industry since childhood, he spent years going to car shows, races and drag strips―”anywhere and everywhere car-related,” he said.

Kendall Riecken, left, owns Kendall Performance & Repair

While earning his trade school certification and a degree in business administration from Ivy Tech Community College in Fort Wayne, IN, Riecken worked for other auto shops, mostly doing collision and restoration work. When he graduated and won a grant from Ivy Tech’s New Venture Competition in 2017, he began working to open his own auto customization and restoration shop, Kendall Performance & Repair. Today, his business is busy― even during the pandemic―at 12130 N County Line Rd E. in Spencerville, IN, but getting there was no easy journey. Riecken said the first and perhaps most patience-testing step in his journey was constructing a facility for his work. And while the grant money provided him with some seed funding to get started, it also gave him a few key connections that continue to serve his business today. One connection he’s used is a network of free small business mentors and resources in Northeast Indiana, known as SCORE NEI, which have been instrumental to Kendall Performance & Repair’s launch and growth. “What’s so cool about it is that every SCORE mentor is a veteran of business,” Riecken said. With a SCORE mentor’s support and encouragement, Riecken opened his business in 2018, and continues to do well during the pandemic, offering old-model car main-

tenance and classic restoration. SCORE NEI sat down with Riecken to learn more about his journey as an entrepreneur, the challenges and opportunities he’s encountered along the way, and the role that mentorship plays in helping him navigate it all.

Q: A:

Tell us about your work at Kendall Performance & Repair.

We offer everything from detailing to collision repair. Currently, I have three full restoration projects going, where I’m tearing down old cars and completely redoing them; body, paint, rebuilding engines and interior. With the restoration, I can take care of pretty much anything and everything. I also have an interior guy who’s going to be doing my interiors for me, as far as custom upholstery.

Q: A:

Do you offer regular repairs and maintenance?

On older cars, yes. I don’t get into the new cars with computers, simply because of the costs of keeping up with the programming.

Ivy Tech’s New Venture Competition grant was instrumental to you starting your business. Tell us about that grant.

closed on it almost two years ago in 2018. I took possession shortly after the new year. The shop was 40-by-60-feet to start with and had a dirt floor. There were mice and critters, and the eaves were open. It was a 4-H barn for animals. We had a lot of work to do. We did about 80% of it ourselves, my dad and I, and completed it last September. Throughout the project, I had started taking on projects as areas would get done. I was able to take on detailing jobs and stuff like that to start generating some revenue. Then, just over a month ago, I was able to quit my day job and start doing this full time.

What was it like starting your business from scratch? What kind of struggles did you face, and what were some of the victories?

Well, no matter what you’re doing, it’s money and time. I would come home from my day job at 4 or 5 o’clock, then we’d come out

here and run the electrical wire. We did that for a month straight last winter. It was like that every single night, in the cold. We would work until 9 p.m., 10 p.m., sometimes 11 p.m. at night. Then I’d get up the next day, leave for work about 6 to 6:30 a.m., and do it all over again. On the weekends, we would work 12 or 14 hours, both days. The physical demand was probably the biggest struggle. And money’s always tight no matter what you’re doing.

During a global pandemic, that’s more true now than ever. How has the quarantine and economic slowdown affected your business?

My company has slowed, but it’s by no means slow. I have those three full restorations going. So when the virus hit, and we all closed our doors, I’ve still been able to work 40 to 50 hours a week. The biggest change is that my quick-turn projects, such as detailing or small body and paint jobs, have See Kendall Performance, Page 16

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JB Tool and Die and PROFED Credit Union are very big supporters of the grant. I had to present my business idea to a panel within Ivy Tech. They then selected three of us from seven applicants. Then we had a formal night with the competition. I gave a 15-minute speech on every aspect of my company, including how I was going to do it, my investment, where I was going to invest, all of the numbers, all of the marketing and pretty much all facets of the startup. I wrote a full business plan, and the judges felt that I had the most likely opportunity to succeed, so I ended up winning.

Q: A:

What was the next step? In September of 2017, I bought the property for the shop. We

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IL Attorney General Calling Businesses About Social Distancing Violations by Greg Bishop, The Center Square

The Illinois attorney general’s office has responded to more than 2,000 calls during the pandemic it said were focused on things such as social distancing violations, but a lawyer representing businesses challenging the governor’s executive orders said that goes too far. Attorney Thomas DeVore, who reresents businesses and individuals in counties across the state suing the governor, said one of his clients told him she got a call that put her on edge. “She told me what the questions were, it was almost like an inquisition or an investigation of sorts, and when I looked up the name of the attorney that she said called her it was in fact an assistant attorney general for the state of Illinois,” DeVore said. “So, I was a little taken aback by that.” A spokesperson for Attorney General Kwame Raoul’s office confirmed it had responded to more than 2,000 calls about things including businesses not following social distancing guidelines.

“Throughout the COVID-19 pandemic, the attorney general’s office has received communications from thousands of Illinois residents on issues ranging from businesses potentially engaging in unfair business practices during this crisis, to businesses not following social distancing guidelines or taking adequate steps to protect employees,” the state said. “Staff and attorneys from our office are working diligently to follow up on the thousands of complaints we have received.” DeVore said that’s not the attorney general’s job. “The attorney general should have said ‘you know what, call your local health department, call the state health department, call the emergency management agencies and let them look into this stuff,’” DeVore said. The attorney general is defending Gov. J.B. Pritzker in the lawsuits DeVore has brought forward challenging his consecutive stay-athome orders. Despite the state being in Phase 3 of Pritzker’s five-phase reopening plan, DeVore said his cases are still

important. “Because Illinoisans have succeeded in moving beyond staying home as our primary goal, this brings to an end Illinois’ stay-at-home executive order,” Pritzker said last week.

He issued a new executive order amid the COVID-19 pandemic that reshapes how certain businesses must operate in order to open back up to the public. DeVore said those lawsuits are more important now than ever, despite a new executive order being issued with modified restrictions. “Just because we have the easing of the restrictions ... doesn’t take away from the fact that these executive orders never had any force and effect of law for the first place,” De-

Vore said. “And so there needs to be a ruling by the court that says under no uncertain circumstances did the governor ever have the power to shutter businesses and restrict people’s freedoms. He never had it.” Opponents of the governor’s orders have said the governor exceeded his 30-day powers by issuing consecutive orders based on the same emergency month after month since March. Pritzker has said he has followed state law. DeVore said rulings on the governor’s authority are needed to curb possible abuses during future disasters or pandemics. “The message needs to be sent for the next coronavirus… whatever the issue may be, the disaster may be or the emergency may be, when we have the next one, that we don’t have to go through this again because, again, our state, our country cannot handle this type of economic catastrophe each and every time we have an issue to deal with,” DeVore said. We thank The Center Square for reprint permission.

Parts Stolen From Cars Up for Veteran’s Donation at MO Auto Body Shop by Susie Shu, Missourian

Wheels and batteries were stolen overnight June 7 from cars being repaired to donate to veterans at Galen’s Auto Body in Columbia, MO. The shop’s owner, Galen Hassler, said he found out car parts were gone the morning of June 8 when he looked at the shop’s garage. “It seems like they went through almost all the vehicles [donated cars] and stole things out of them,” Hassler said. No customer cars were included in the damage. Four brand-new wheels, including the tires and rims, as well as seven batteries were lost. The estimated cost is $1,700, Hassler said. Two and a half years ago, Hassler started taking charge of the Columbia location of Cars 4 Heroes, a nonprofit organization that provides free cars to those who were unable to get one on their own. The donated cars are fixed up at Galen’s to help veter-

ans, first responders and their families. Cars 4 Heroes has been having a problem with parts being stolen. Hassler said there was another incident of stolen car parts about two weeks ago. Hassler said the organization is in need of more vehicles to fix up. Cars 4 Heroes has more than 15,000 entries of veterans asking for a vehicle nationwide, and it gives away around 300 cars a year between its Columbia and Kansas City locations. “The next best thing is to help us financially,” Hassler said. Each vehicle costs from $500 to $1,000 to repair to donate to veterans and first responders. The Facebook page for Cars 4 Heroes in Columbia contained a post about the damage to seek the public’s help. “We haven’t had anything [donation] come yet, but that would be very helpful,” Hassler said.

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Pontiac Fiero Collection Destroyed in Michigan Flood by Steven Symes, Motorious

Midland, MI, located in the central part of the state, and the surrounding area is in chaos after two local dams failed. Other neraby towns and the Tittabawassee River have been overwhelmed by the surge of water swallowing up buildings, cars and more. Residents are describing it as the type of event that happens once in 500 years. Livelihoods have been destroyed, including Fieros Forever, a shop and museum in Sanford. To non-car people, it was a “handful of Pontiac Fieros” which were damaged, but to car folk it’s a bit of American automotive history that was wiped out. After all, the Fiero is an anomaly for cars made in the U.S., and as such enjoys a strong cult following. But regular people don’t get that. According to a report, the owner of the shop, Tim Evans, moved some of his Fieros to an area of the street which had not flooded in past years. While his garage had never been under water, Evans wasn’t

going to take any chances. Every car guy understands his extreme caution. Among the museum cars located at Fieros Forever was a 1984 Indy Pace Car Edition, which had a production run of just 2,001 units.

He also has a 1988 Pontiac Fiero Formula, one of the most coveted versions of the mid-engine American car, especially since it came with the 2.8-liter V6 while production was capped at 2,900. Several Fiero GTs were also at the shop, including one in Bright Blue. Sadly, with the floodwaters higher than anyone had ever seen, Evans’ Pontiac Fieros weren’t safe. An early-morning call to evacu-

ate the area was given and he was forced to leave his cars behind, including several which were in nearly-perfect condition. In fact, Evans was trying to auction 12 Fieros online, a plan that now will have to be put on hold. He was able to move some of his cars out of the area and to locations that hopefully will stay dry. However, photographs show at least one car flipped on its roof by the floodwaters. Evans also had an array of parts for Fieros and other cars in his shop, including a four-cylinder engine which he claimed was cranking about 400 horsepower. Since a pole barn from an adjacent property slammed into his shop during the flood, the status of those parts is unknown. With the possibility of so many Pontiac Fieros taken out by the Michigan floods, this gives cause for other Fiero owners to cherish their cars that much more. We thank Motorious for reprint permission.

CREF Announces Online Virtual Golf Fundraiser Golfing and online game enthusiasts around the globe are invited to join the Collision Repair Education Foundation (CREF) “fore” its first virtual golf fundraiser, Saturday, July 25. The online event will take the place of the annual CREF summer golf outing, which was scheduled in Philadelphia along with other industry meetings. Through a $25 donation, players will take part in golfing 18 holes using TopGolf’s online game, and the first 150 to register will receive a CREF attendee bag with promotional items. Thousands of dollars in prizes and promotional giveaways will be randomly awarded to players throughout the day of the event. Funds raised through the event will support CREF’s efforts to assist high school and college collision programs across the country. Register online now through CREF, www.collisioneducation foundation.org Source: CREF

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MN Governor Reopens Gyms, Indoor Dining on June 10, Relaxes Other Restrictions by Scott McClallen, The Center Square

Minnesota Gov. Tim Walz will allow restaurants, bars and gyms to reopen at limited capacity starting June 10. Walz signed Executive Order 2020-74 to move the state into Phase 3 of his Stay Safe MN plan. Restaurants and bars can reopen indoor dining for guests with a reservation at half capacity with a maximum indoor capacity of 250 customers and an outdoor limit of 250. Department of Employment and Economic Development Commissioner Steve Grove said the 250-person cap on indoor and outdoor business events is intended to stop large organized gatherings like county fairs. Inside social gatherings have a 10-person limit, while outdoor social gatherings are limited to 25 people, meaning some sports can return. Grove said there’s a capacity difference in outdoor social gatherings compared to inside restaurants because “there isn’t an organizing

body” or regulations to force people to adhere to social distancing. “It’s not perfect,” Grove said. Gyms, personal fitness and yoga studios can open at 25% capacity. Recreational indoor and outdoor entertainment venues, such as bowling alleys, theaters and concerts may open at 25% capacity. Salons, tattoo parlors and barbershops may increase occupancy rates from 25% to 50% with a reservation. Places of worship can increase occupancy rates from 25% to 50%, which allows weddings and funerals. Pools can open at half capacity. “Thanks to your dedication, we are now in a position to carefully turn the dial toward reopening society,” Walz said in a statement. “As we move forward, it is more important than ever that we each do our part as we trust and rely on each other to keep our state safe.” Critical businesses must make a COVID-19 Preparedness Plan by June 29. “As we face the likelihood of many more months of this disease

spreading at various levels in our communities, we must find a way to live with it―accepting a certain level of risk while taking steps to prevent a wave of cases overwhelming our health care sector,” Department of Health Commissioner Jan Malcolm said in a statement. “The goal is to find a proper balance of protections in a way that promotes the best interests of our state. That’s the balance we’re seeking here today.” House Minority Leader Kurt Daudt, R-Crown, called on Walz to end his emergency powers that last until June 12, and the “arbitrary restrictions” on businesses. “Minnesotans are prepared to safely socially distance and reopen businesses with proper procedures in place,” Daudt said in a statement. “Wisconsin’s restrictions ended three weeks ago; their positive case rates are dropping and other indicators remain stable and well below our rates here in Minnesota.” We thank The Center Square for reprint permission.

Postponed NORTHEAST 2020 Now Canceled The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) made the difficult decision to cancel its 2020 NORTHEAST Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ. NORTHEAST 2020, originally scheduled for March 20-22, then postponed to Aug. 21-23, will resume its normal schedule next year, with show dates of March 1921, 2021. An online NORTHEAST event for the weekend of Aug. 21-23 will allow attendees to enter a virtual floor plan and access exhibitors’ products, videos and information, and even schedule a private meeting. Educational opportunities will also be available. For more information on NORTHEAST, visit www.aasp njnortheast.com. Source: AASP/NJ

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GM’s Former Plant in Lordstown, OH, Will Return to Mass Vehicle Production, Thousands of Jobs by Jamie LaReau, Detroit Free Press

Lordstown Motors CEO Steve Burns has bold plans to fill the 6.2-millionsquare-foot facility he bought from General Motors last year. Those plans include both people and products. The CEO said he will start hiring 600 workers next year to build the first 20,000 Endurance all-electric pickups Lordstown Motors is designing. Then, starting in 2022, Burns will hire more people to build other all-electric vehicles, such as SUVs and a midsize pickup, he told the Free Press. “We didn’t buy a mass volume plant like this and not plan to fill it up,” Burns said. “This is a gem of a building built for volume manufacturing.” Burns expects to employ 4,000 to 5,000 people in the plant in the near future based on demand for electric vehicles, adding, “We think the electric pickup is the new normal.” Lordstown Motors already has “well over several thousand” pre-orders for the $52,500 Endurance, even before the truck’s been revealed, Burns said. The company was set to reveal the Endurance at the Detroit Auto Show next month, but the show was canceled because of the coronavirus pandemic. So Lordstown Motors will do a “virtual” reveal instead. Burns is targeting late June to do that, and once he does, he expects to take pre-orders for all 20,000 pickups the automaker will build next year. Just three years ago, Lordstown assembly plant, near Youngstown, OH, employed about 4,500 workers making GM’s Chevrolet Cruze compact car. In its heyday, in the early 1990s, GM employed about 10,600 people at the plant. But on March 6, 2019, the last Cruze rolled off the line. Lordstown was one of four U.S. plants GM said it would shutter as it ended production of some of its cars to accommodate shifting consumer tastes to SUVs and pickups. GM’s Detroit Hamtramck was supposed to also be one of those four to close, but during

UAW contract talks, GM agreed to invest $3 billion in it to make an electric pickup and SUVs there. Most of the 1,600 workers left at Lordstown last spring were transferred to other GM plants across the

Lordstown Motors CEO Steve Burns inside the former GM Lordstown Assembly plant, which his company purchased and is retooling to make the all-electric Endurance pickup truck. Credit: Courtesy Lordstown Motors.

country. Then, GM sold the facility to Lordstown Motors. The plant and adjoining five parcels of land sold for $20 million, according to local records. GM had an option to lease the Lordstown facilities and land as well as the option to repurchase the assets. But GM will not exercise those options, Dan Flores, GM spokesman told the Free Press, adding, “We’re not taking the plant back.” Lordstown Motors had retained Cleveland investment bank Brown Gibbons Lang & Co. to help it raise $450 million to retool the plant, Forbes reported last Novemberr, but Burns declined to comment on financials other than to say, “Except for COVID, we’re on course.” Lordstown Motors presently employs about 70 people, nearly all engineers, some of whom were engineers there when GM owned the plant, Burns said. Twenty of those engineers work in a secret design studio the company has in Dearborn making clay modelings of the future vehicles. The other 50 engineers are in the plant directing the change-over of the tooling needed to make the Endurance instead of the Cruze, Burns said. They are scrambling because, after the late June reveal of the Endurance, Lordstown Motors has to produce 30 pre-production vehicles by December. “We’re six months away from that so that is a push,” Burns said. “The Endurance is just our first ve-

hicle. The architecture is easy to change for a midsize pickup or an SUV, so we’re trying to accommodate multiple vehicles besides the Endurance” in the future. The 50 engineers are also designing the production lines to build battery packs and in-wheel motors, both of which will be built in-house along with the vehicle body, Burns said. On May 12, Lordstown Motors licensed with Elaphe Propulsion Technologies to make the Model L-1500 Endurance In-Wheel Motor, for the pre-production vehicles expected to be produced at the Lordstown Motors complex in the next six months. After that, some time next year, Lordstown Motors will start hiring for assembly workers. “The worker bees, the assembly crew, that hiring comes closer to the production,” Burns said. “We said 400 initially, so now it’ll be 600 due to building the battery packs and the in-wheel motor line.”

Burns said he would allow the UAW to organize if the workers chose to have a union. The jobs have been reported to pay about $17 an hour, a few dollars less than what a new line worker at the Detroit Three is paid per hour. Burns would not confirm a figure other than to say, “We expect to be competitive with pay compared to other automakers.” Burns said Lordstown Motors is making its motors and battery packs in-house because it has no other choice. “There aren’t readily available battery-pack makers and in-wheel motor factories,” Burns said. “When you’re an electric vehicle maker, the battery pack is a super important part and so you want to keep those in-house if you can for controlling cost, quality and supply.” Meanwhile, GM is not done with Lordstown after all. In December, GM said it formed a joint venture with LG Chem to make battery cells. The venture is called UlSee Thousands of Jobs, Page 26

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Continued from Page 8

Kendall Performance

tinues going great. Are you using this time to grow your business in any way?

What are some ways you’ve had to adapt since closing your doors to new work?

Yes. I haven’t even needed to ask [my SCORE mentor] for advice because I am so busy. And with spring here, I expect detailing to pick back up. I’ll be slammed in another few weeks. But I have been checking interest rates and have been considering taking out a loan to expand my building.

diminished. Those are quick money makers. Restorations help to fill the gaps. Now I have been doing restoration work 95% of the time.

When the virus came out, I was slower because of the winter season. When the quarantine rumor hit, I started stocking up supplies. That’s about it. I don’t see much foot traffic through my doors each week, so I’m not too concerned with people coming and going. I actually have less distraction. And with there not being much to do outside of work, I have been working longer hours and getting more accomplished. It may sound weird, but I don’t completely mind this quarantine.

Sounds like you’ve always been well prepared and business con-

Continued from Cover

Hertz’s Fleet Sale is part of the negotiation Hertz will have with the bankruptcy judge and the ABS holders. That’s seemingly a lot of cars to sell, but let’s layer that over Hertz’s “normal” buying and selling: In 2019, Hertz had 501,767 vehicles in the U.S. at the end of the first quarter. This swelled to 554,794 vehicles by June 30 and then to 566,229 by Sept. 30. Hertz ended the year with 534,879 vehicles. The maximum range in the four quarters was about 65,000 vehicles, an indication of the wholesale activity during this time. If Hertz needs to sell, say, 150,000 vehicles, that’s a net growth of 85,000 into the used car market. Chapter 11 is an expensive process, including the obligations that debtors must pay while in bankruptcy. But this one is complicated. Very complicated. Many speculate it won’t end soon. Further, under the terms of the

Speaking of SCORE, how did you learn about them when you first started your company?

I got an email from somebody at Ivy Tech. They gave me a quick synopsis of SCORE and told me that they would be available to mentor me through the competition. That started it. I got a call from [my SCORE mentor] Billy Mitchell, who said, “I want to help you win this thing, and I’ll do everything I can to help you.” It was like, “Okay. I guess I better get my butt moving.” (laughs) After I hung up the phone, I felt like I had smoke coming out of my ears from all the info and knowlbankruptcy, Hertz won’t be legally obligated to start selling for the duration of the “automatic stay” period, which will last for as long as the bankruptcy judge determines. Normally, holding onto those cars would be a bad idea, as they depreciate whether moving or not. Of course, this time is anything but normal: Wholesale supply remains elevated but is dropping from where it was when pricing was its weakest during the pandemic, says Cox Automotive’s Jonathan Smoke. “Retail pricing has held up and we estimate that retail supply is now below normal,” Smoke said. “Used retail sales have seen a strong recovery. New vehicle sales will not be as much of a competitive threat later in the year as supply is already thinning and production is hampered by vast supply chain and productivity issues.” As the market improves, Hertz should be able to sell through its retail sales lots and convene some special sales for hungry dealers. For the major auctions, Manheim and Ade-

edge he shared. It was pretty tremendous. It was a big motivation to have somebody on board. When you’re by yourself, if you fail, you’re the only person it affects. But when you have all the help in the world, if you fail, you’re letting down a lot more people.

How was your mentor able to help you, and what is some of his advice that you’re putting into practice?

Billy helped me with developing and growing the business plan. He helped me fine-tune the plan and make it realistic. He also helped me understand the numbers behind things. He’s helped me understand a lot of the technical side of the business, cash-flow statements probably being the most significant single piece. Billy was able to help me fine-tune it all from the very beginning.

Q: A:

Do you still interact with Billy?

check on each other more or less. I actually did one of his cars for him.

What advice would you give a new entrepreneur in these uncertain economic times?

Right now is a very odd time to be in any industry. The trades are still booming regardless because everyone still needs their plumbers, truck drivers and mechanics. I feel very fortunate to have made the career choices I have made. People are still spending money like crazy; it’s just a matter of studying the demographics and seeing where the money can be made. For anyone else that is stuck at home, now is the perfect time to lay out any business ideas and start fine tune everything. When will you have more free time than right now? Start saving every penny and every nickel. But above all, stay safe and stay healthy. We thank Input Fort Wayne for reprint permission.

Yes. I call him, and he calls me every once in a while. We

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Then, like many shops, he saw about a 70% drop in his $1-milliona-month business in late March and early April. Some employee layoffs of the industry in need. were a painful reality, Garcia said. “I really appreciated that help,” One employee he had to lay off Kim said. “It wasn’t a crazy amount had just been hired less than a month of money, but it was more the idea previously. Another had some recent of this being an industry that helps health issues. Some faced challengeach other. It’s great being a part of es in getting unemployment claims an industry that does that.” going because the state system was Carl Garcia, the owner of Carl’s overwhelmed. So Garcia is thankful Collision Center in Fall River, MA, he could point them to the foundasaid he was among the shop owners tion, which provided some financial assistance to about a half-dozen of his laid-off employees. “It was great to be able to offer this option to employees who truly needed it,” Garcia said. “It was actually amazing how quickly [the Foundation was] able An evening reception and silent auction in January in Palm to process it and get them Springs, CA, helped the Collision Industry Foundation raise some money. It went to peosome of the funds now in its COVID-19 Fund ple who really needed it.” and industry vendors at an evening Garcia said he remembers the reception and silent auction in Palm foundation over the years raising Springs, CA, that serves as an annual funds to help individuals in the infundraiser for the foundation. dustry facing challenges because of “I never would have thought that Hurricane Katrina, the 2018 wildjust a couple months later I’d be put- fires in California and major floodting some of my employees in con- ing in 2016 in Missouri and West tact with the foundation to help them Virginia. out,” Garcia said. “To have my own staff be the re The timing of the pandemic and cipient of that same type of support, economic shutdown was particular- I don’t think I’ll ever forget,” Garcia ly tough for Garcia’s business. In said. “Once we are back on our feet, I January, he purchased three new look forward to making contributions CMC spray booths to install, along so others get the help that they were with an area dedicated to ADAS able to give my people.” calibrations, in a 6,000-square foot Tammy Horvat, manager of addition under construction at the Fred Martin Collision Center in Barshop. berton, OH, had similar praise for the Continued from Cover

Help from Foundation

Continued from Page 16

Hertz’s Fleet Sale sa, keeping physical auctions closed and deferring to virtual-only sales may ironically keep prices elevated. Weighing on this is how other car rental companies approach shedding fleet too, but the situation overall isn’t as drastic as the headlines infer. For car rental in general, the looming issue concerns asset-backed securities as an instrument to fund fleet. ABS will likely advance a lower percentage of acquistion cost as a protection from future bankruptcies.

What was 70% is now 80% and could go back down to 70%. For the major car rental companies, a 10% reduction in the advance rate could force them to raise an extra $1 billion or more to get those cars on the road. We thank Auto Rental News for reprint permission.

foundation, which provided assis- your_details_more_info/Nzg3NTQ tance to four of the shop’s technicians =/49150 Petra Schroeder, an industry laid off because of the pandemic. “This money helped put food on consultant who serves on the board their table, helped pay rent or mort- of trustees for the foundation, said gages or utility bills, the basic neces- its COVID-19 Fund has received sities that are needed when you are impacted financially after suddenly being laid off,” Horvat said. “To have an organization that steps up and helps our collision repair professionals during times of hardship and crisis is another reason I admire our collision community.” Maryland shop owner Kim voiced similar apprePetra Schroeder, who serves on the board of trustees of ciation for the foundation. “I’m going to keep this the Collision Industry Foundation, speaks with California shop owner David Mello at the foundation’s fundraising in the back of my mind, event in January and whenever they ask for what they need, I’m going to try to more than 560 applications for asrespond.” sistance, though that includes some The foundation’s COVID-19 from people outside the industry, Fund received more than $260,000 who were denied since they did not in donations. To donate, visit: https:// meet the foundation’s criteria). By late May, more than 350 valwww.flipcause.com/secure/cause_ id applicants—70%—have already pdetails/Nzg3MTk= To apply for assistance, visit: received funds, with the rest in some https://www.flipcause.com/secure/ stage of the verification process.

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Continued from Cover

CIF Assistance

country to find out how CIF support has helped their employees.

Dalton Collision Nearly 30 years ago, Jerry Dalton opened Dalton Collision, a 13,000-square foot body shop in Blaine, TN. Since then, he and his team of 39 employees have focused on providing excellent service, and safety and peace of mind for customers. As the business expanded over the years, Dalton opened a second location in Knoxville last year. The facility is approximately 24,000 square feet and serves the north, central and eastern parts of Knoxville, as well as the surrounding counties. They first learned about CIF last year during the SEMA Show in Las Vegas, when Dalton watched CIF Board President Michael Quinn give a presentation about the organization. Dalton was impressed with the way CIF helped body shop employees at the time in California when they were dealThe team at Dalton Collision prior to the pandemic ing with wildfires. industry for allowing CIF volunteers to When his business began to deliver aid to collision repair profes- slow down, Dalton reached out to sionals and their families in need.” CIF for assistance. The human re CIF has received more than 630 sources director at Dalton Collision individual applications since March, applied for support on behalf of the the majority of which met the orga- employees at both locations. nization’s established criteria and When they received the checks were funded. from CIF, Dalton said it reminded him Although the application period of winning the Publisher’s Clearing ended May 31 and the COVID-19 House sweepstakes. fund is now exhausted, CIF is still “It was awesome,” said Dalton. trying to assist collision repairers “It sure helped out our employees. and encouraging general donations They were really appreciative.” from the industry. He is very grateful for the sup “I was inspired to join the CIF port from CIF and encourages other Board of Trustees in early 2019 collision repair facilities to reach out when I realized just how unique the when disaster strikes. organization is,” said Ann Gonza- Recently, Dalton said many of lez, CIF board vice president and VP the restrictions have been lifted in of strategic development for I-CAR. Tennessee and business is beginning “The support that CIF receives from to ramp up. across the collision repair industry “There are more cars on road, that allows us to then provide assis- which means more car wrecks,” said tance back to collision repair indi- Dalton. “We’re starting to see busividuals in need is exceptional, and ness getting back to where it was. It’s something I have never seen in other still not where it was but it is getting industries. I am proud to be part of a little better each week.” this generous community that, time As business returns to normal, and time again, steps up in times of Dalton’s goal is to increase sales to need to help our own.” $1 million a month. He attributes his Autobody News talked to three success to repairing vehicles correctbody shop owners from across the ly the way the manufacturer intended Bruce, Chris Caris, Benjamin Cupelli, Dave’s Collision Center/Halethorpe, Kelli Dewberry, Jeff Hendler, Kurt Lammon, Timothy Morgan, Partstrader, Clark Plucinski, Petra Schroeder, Sean Carey Consultants, Spanesi Americas, Tanya Sweetland, Tractable and John Yoswick. Funds were also contributed from monthly donors Meredith Bradshaw and Bill Enross. “We are once again grateful to belong to an industry that believes in supporting their own,” said Quinn. “We thank our generous donors and the

them to be and providing good quality customer service for the local community. Fix Auto Portland East & Fix Auto Gladstone Since the stay-at-home orders were first put into effect, Camille Eber said many heart-wrenching decisions have

and Doris, purchased the business in 1963, and Eber took over operations in 1989. Three years after joining Fix Auto Network in 2009, Eber’s nephew, William Bray, became a partner. They acquired their Gladstone location in 2013 and currently focus on repairing late-model vehicles.

“Since 2001, CIF has been dedicated to raising, managing and donating funds to provide emergency relief to collision repairers who have been impacted by natural disasters or other catastrophic events,” — Michael Quinn been made to save her two collision repair locations in Oregon, Fix Auto Portland East and Fix Auto Gladstone. This includes laying off some of the 23 employees to reduce overhead. “I’ve never been an extreme penny-pincher, and now we are analyzing nearly every dollar going out the door,” said Eber, co-owner of both locations. The southeast Portland shop, originally called Roth & Miller, was founded by Chet Roth and C.E. Miller in 1946. Eber’s parents, Jim

Eber learned about CIF’s COVID assistance from CRASH Network, a weekly online news digest, and forwarded the information to the employees who had been laid off. Although she and Bray provided them benefits for a period of time, they were looking for additional assistance. “We wanted to show our employees that there was more support that they may be able to receive if they acted on behalf of themselves and did so quickly,” said Eber. “We also wanted to show that our industry is a giving one.”

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‘Collisionista’ Petra Schroeder contacted Eber on a Saturday to verify the employees who had been laid off. “I am very thankful to her for doing the work for these people in need, and appreciate the tremendous support she continues to give to our industry,” said Eber. Seven of Eber’s staff received financial assistance from the organization. “What CIF did was above anything I would have imagined,” said Eber. “All business owners know the challenges of managing our businesses, so managing a non-profit like CIF by volunteers generous with their time, and supported by donors generous with their money, is nothing short of remarkable.” Eber is greatly appreciative of CIF’s assistance and encourages the industry to support its ongoing efforts. “Organizations such as CIF can be a safety net to a few or many— any filled need is better than none,” she said. “I want to send an enormous thank you to each person who has touched CIF over the years, including those responsible for the original idea, those giving of themselves to operate it, and the many

folks who have sent funds in the past and during these tremendously gut-tighteningly hard times.” Fuller Auto Body In Auburn, MA, Joshua Fuller grew up helping at his family business, Fuller Automotive. Established in 1914, the brand consists of five related companies and has a total of 60 employees, 42 of whom are in collision repair. Since becoming co-owner in 2003, the fourth-generation body shop owner has been passionate about growing the company and increasing industry awareness. As an active volunteer, Fuller has been part of the AASP-MA board directors and chaired the I-CAR volunteer committee for Massachusetts since 2014, and also participates in Collision Repair Education Foundation (CREF) fundraising events. Since the beginning of the COVID-19 situation, Fuller has looked for ways to maintain the safety of employees and customers. “I got into protective mode,” said Fuller. “As an owner, every day you walk in the front door and that is No. 1 on your mind: how do I make sure our

people are safe and protected and can perform the necessary services that our customers are in demand of?” The goal was to maintain some sense of normalcy while providing the ideal situation for employees. Ultimately, they had to scale down operations and furlough 11 people. As

At Fuller Automotive, a large tent in the parking lot provides customers a makeshift waiting room

a result, they instituted a work shift program where employees were provided 20 hours of work and could file for unemployment for an additional 20 hours. Fuller encouraged employees to apply for CIF assistance, and all 17 of those who filled out the application received funds. “They were ecstatic,” said Fuller. “CIF made it very easy to apply.

When they started to receive funds, they thought it was phenomenal.” He said everybody is feeling some type of pain right now and he is grateful CIF could provide support. “I was impressed by how they were able to come in and help so many of our stakeholders beyond what we could do. Every little bit helps,” said Fuller. “We were very fortunate to take advantage of it and so are our people. It’s definitely a welcome contribution.” Since the coronavirus restrictions, Fuller has recognized his employees’ dedication. They have kept busy, cleaning and painting the facility as well as making additional improvements. They also established a reopening committee to plan how to best operate when the business begins to ramp up. Currently, they set up large tents in the parking lot to provide customers a makeshift waiting room. “At the end of the day, we really want to make it welcoming for people,” said Fuller. Fuller said initiatives like these help them focus on moving forward and staying positive. “We want to keep our identity as a brand and provide superior service

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as we’ve always done,” said Fuller. “We’re just trying to weather the storm and know that brighter things are on the other side.” For more information about CIF, visit: http://www.collisionindustryfoundation.org, Facebook https://www.facebook.com/CollisionIndustryFoundation/ or LinkedIn. https://www. linkedin.com/organization-guest/ company/collision-industry-foundation-inc?challengeId=AQFdirMkIKv2vwAAAXKWK8w8XsC9LJ38V4xkntk27UXZlWI8 w c y 8 i 5 T T 0 x N g y Yp G o K W q IsIthEplNdmgWbiYn0dGh2aLtaQBKQ&submissionId=380cc0c5 -edb3-1616-e3da-12703bd1872b To apply for assistance: https:// www.collisionindustryfoundation.org/ disaster-assistance-request-form. html To donate: https://www.collision industryfoundation.org/donate.html

AUTOBODY

Michigan Orders Auto Insurance Companies to Issue Refunds to Drivers If you haven’t gotten a break on your auto insurance, it looks like there’s still a refund coming your way. Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) on June 1 announced DIFS Director Anita Fox has ordered all auto insurers in Michigan to issue refunds or premium waivers to consumers as a result of insurance companies’ reduced risk due to extreme reductions in driving during the COVID-19 pandemic. “Michiganders have been staying safe and staying home and they should see the benefit in reduced auto insurance rates during the COVID-19 pandemic,” said Whitmer. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.” DIFS Order No. 2020-10-M sets a deadline of June 10 for insurers to submit filings that include the refund or premium waiver amount, information on how that amount was determined and how consumers will receive payments. The order also requires com-

munication plans to inform customers about the refund and the options available to those with long term changes in driving habits, for example those who have been laid off or are telecommuting.

The order does not set an amount that insurers are required to refund. “This order will ensure all insurers are issuing appropriate refunds or premium waivers to their customers,” said Fox. “Consumers may realize additional savings by modifying their policies to reflect their current driving habits. Drivers should contact their agent to discuss garaging a car or making other changes to save on their premiums.” DIFS can assist consumers with questions or disputes that they’re not able to resolve directly with their insurer. Michiganders can call DIFS Monday through Friday from 8 a.m.

to 5 p.m. at 833-ASK-DIFS (2753437) or by emailing autoinsurance@ michigan.gov. This news comes after many insurance companies announced in April they planned to give some money back to their customers amid the coronavirus pandemic; both because people driving around less means fewer claims, and also to help those who are in financial hardship during this time. Credits issued tend to range on average from 15% to 25% of your bill, depending on which auto insurance company you have. State officials note these premium waivers or refunds are in addition to any savings resulting from the upcoming changes to Michigan’s auto insurance law, which has shown reductions to statewide average premiums for Personal Injury Protection medical coverage for policies issued or renewed after July 1. Visit Michigan.gov/autoinsurance for more details on changes to the law and instructional videos. We thank WWJ News Radio for reprint permission.

autobodynews.com / JULY 2020 AUTOBODY NEWS 23

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with Erica Schroeder

Industry Insight with John Yoswick

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

Shops Share More Ideas on How to Get Work In the Door

Shop Showcase

Shops’ backlog of work dried up this on marketing and radio ads, includspring, with one national survey of ing advertising for restoration work, 500 shops finding that even in April, which we have not done in more with Ed Attanasio more than three in four could sched- than 20 years,” he said. ule any new work within one week Another New Hampshire shop or less. owner said he’s halted ads “slamming So what steps are shops taking insurance companies,” and is instead to try to get more work in the door? “projecting a positive attitude that we Massachusetts shop owner Carl are all in this together and we all will Garcia said being a LINE-X fran- pull through, and that my business with Ed Attanasio chise has helped, as Carl’s Collision will be here to help out the community Center has seen an influx of custom- in any way.” ers putting some money—including Gigi Walker of Walker’s Auto federal stimulus funds—into fixing Body in Concord, CA, is calling her up their pick-ups. shop’s regular fleet accounts to ask if “We’ve gotten very big into RVs, they have “any clean-up work we can fixing a lot more of them than ever do on any of their fleet vehicles.” She with Ed Attanasio before,” Garcia said. “I think we’re said the shop is offering free detailing going to have to have an open mind for each vehicle that comes in, and is about doing different types of work to “doing work for the food bank fleet at no cost to keep them on the road.” survive in the future.” Michael Berounsky of Ben’s Auto Jeanne Silver of CARSTAR MunBody in Portsmouth, NH, agreed. delein in Illinois said they are pursuing with Ed Attanasio “We’re spending more money more fleet work as well, and is having

the shop’s marketing manager “contact local agents on a regular basis to let them know we are open.” The shop has been getting a lot of customer engagement with “Guess the Estimate” contests, in which the shop posts photos of a damaged vehicle on its Facebook page and offers gift cards to local restaurants to those whose guesses come closest to the actual repair costs. A shop in North Carolina installed a large sign in front of the shop to honor students graduating this spring; anyone who posts a photo of themselves in front of the sign on Facebook is being entered into a drawing for three cash prizes, totaling $800. John Quinonez of Kidd Collision in Garden City, NY, said he has started a business referral program through Alignable.com. A Pennsylvania shop is marketing that it is prioritizing “fast track”

about 104 engineers working on developing the Endurance. Lordstown Motors also has a with Stacey Phillips design firm in California that works tium Cells LLC. on the exterior design for the Endur The Ultium Cell’s investment is ance and a “major interior company” more than $2 billion to build a plant in Detroit working on the interior. adjacent to the Lordstown Motors’ “Then, you’ve got the safety engifacility. When it’s completed in the neers, the lighting engineers, and we’re first quarter of with 2022, Stacey it will create reprogramming robots as we speak to Phillips more than 1,100 jobs, Flores said. do the Endurance parts rather than the On May 18, GM got site approv- Cruze parts,” Burns said. “That’s a big al from the Lordstown Planning Com- orchestrated, choreographed dance to mission and it can start pouring con- make a vehicle. But the Endurance is crete next month, Flores said. Still, going to be better than we thought.” that plant won’t be ready in time for The Endurance is designed with Stacey Phillips the Endurance assembly line which for fleet sales. It is a lightweight, starts next year. all-wheel drive vehicle with a low “So the initial couple years, it center of gravity built using comwould not be GM’s cells, but I don’t ponents licensed from electric truck ever rule anything out,” Burns said. maker Workhorse of suburban Cin“We are buying them now from a cinnati. It has a computerized motor national cell maker that we haven’t in each of its wheels to propel it and with Stacey Phillips announced yet.” gets the equivalent of 75 miles per Also helping Lordstown get gallon. Its range is 250 miles on one going are some outside consulting charge, Burns said. firms. For about the last year, it has The Endurance is eligible for relied on a consulting company in the $7,500 instant tax rebate, so its Detroit, but Burns was not authorized price tag drops to $45,000. to release the company’s name. It has The projected volume for first

year of production is 20,000 vehicles, Burns said, and based on initial interest, “I think we’ll have well, well north of the 20,000 well spoken for. The demand side is super strong, I am starting to worry we won’t be able to make them fast enough.” About 2.5 million full-sized pickups were sold in the U.S. last year, according to Kelley Blue Book. There are no all-electric models offered yet, Burns said. He plans for Lordstown Motors to be out the gate first with the Endurance to capture a chunk of that market, which accounts for his ambitious employment goals. “That plant was putting out more than 400,000 Cruzes a year,” said Burns. “We think, because our vehicle is simpler to make, with only four moving parts, we think that plant is capable of putting out 600,000 vehicles a year.”

Social Media for Shops

SEMA Show Goes On

Media and Publicity for Shops

Continued from Page 14

Shop Strategies Thousands of Jobs

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

Shop Strategies with Victoria Antonelli

repairs for any first responders. Old Dominion Collision in Eugene, OR, is sprucing up the “curb appeal” of the facility. “We are keeping everyone busy— using our PPP loan money—making lots of needed updates to the shop: painting, concrete resurfacing, front of building facelift, etc.,” shop owner Dustin Caldwell said. He said the company is also adjusting some of its social media and online marketing strategies, such as halting its location-specific geo-fencing, which shows ads to those within a specific geographic boundary, such as another body shop. “We are finding that not many people are shopping around, and are just picking a shop and going there,” Caldwell said. “It just didn’t make sense targeting our competitors when they are seeing such a reduction in traffic as well.”

We thank the Detroit Free Press for reprint permission. www.autobodynews.com

UPDATED DAILY

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Silicon Valley Tech School Pushes Through Pandemic by Ed Attanasio

The pandemic has impacted tech schools throughout the country as they adapt to a whole new world. Online classrooms, drive-by graduations and online testing have become the norm, and many administrators are saying that some of these changes will stick long after the virus has passed. Nathan Chukes is the auto body refinishing instructor at Silicon Valley Career Technical Education (SVCTE) in San Jose, CA, with

Nathan Chukes has been teaching at SCVTE for 18 years and is known for being tough but fair

three decades of industry experience and 18 years as a teacher there. He runs the program with another instructor, Robert McTaggart. Chukes is well-known in the world of collision repair instruction for being a tough instructor who commands excellence, but many of his former students say only wonderful things about him. It’s been a new road to travel for Chukes and his students, but by adapting and changing his approach, things are working. “This year with the pandemic it has been very challenging and difficult for high school students throughout our country,” he said. “For me, as an instructor, I faced similar challenges, but I had to find a way to deliver instruction to my students. With only a quarter of a semester left of our school year, all hands-on and shop instruction was halted, due to the virus. At that point all instruction became viral with Zoom lessons and audio lectures.” Every year, Chukes gives awards to his star pupils, he said. “In the two classes I teach daily, there were four students in my program that stood out above all,” he said. “They never gave up, never

complained and never doubted that they had enough skills and knowledge to continue forward to graduate and prepare for the next chapter in their lives.” Chukes gives excellence awards every semester and seems to be a pretty good judge of talent, because several past recipients have gone on to be body shop owners, gifted painters and top technicians over the years, he said. This year’s award winners are: Junior Ever Martir from San Jose High School in San Jose, CA, received the award for Outstanding Student in Chukes’s AM Refinishing Class Senior Manuel Soto from Prospect High School in Saratoga, CA, received the award for Outstanding Student in Chukes’s PM Refinishing class Senior Jose Gonzalez from San Jose High School in San Jose, CA, received the Achievement award in Chukes’s AM Refinishing class Senior Manuel Madera from Andrew Hill High School in San Jose, CA, received the Achievement award in Chukes’s PM Refinishing class Every year, the school has an awards ceremony, but because of the pandemic, Chukes delivered the plaques to the winners at their homes, accompanied by signs to signify the moment. “It was of great pleasure to hand-deliver these custom signs to the homes of my award winners for the 2019-20 school year,” he said. “These four students deserved these awards, so I was going to do anything I could to get them in their hands.” By teaching high school-level students the latest technological changes in the industry and working with local body shops and vendors, Chukes is making all the right moves, and receiving unprecedented industry support as a result. Chukes was a journeyman painter for many years before he was hired at SVCTE. He has ASE certifications in both structural and non-structural repair and continually refines his classes to accommodate the industry as repair processes, tools and equipment change at a frenetic rate. Formerly known as the Central County Occupational Center (CCOC) before changing its name eight years

ago, SVCTE currently offers a two-semester program for high school students from six school districts in the South Bay Area interested in careers in the collision repair industry. After teaching for so many years, Chukes said this is no longer a job and more like a calling.

Junior Ever Martir from San Jose High School in San Jose, CA, received the award for Outstanding Student in Chukes’s AM Refinishing class

“I have been doing this so long that it’s in my DNA,” he said. “We have seen so many first semester students who have come here with very little knowledge and just two years later, they’re totally employable and have developed some confidence. “At here, they get to work on actual vehicles and they’re using the

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identical tools that they will be using at a shop. Our goal here is to duplicate the real world out there as much as we possibly can, so teach them only OE procedures and always focus on safety and working in an organized way. “We also make sure to teach them life skills that they are going to need out in the working world, such as being punctual and communicating clearly. We want them to have the skills, but we also want them to be successful as people too.” Once the students have completed the program after one or two years, depending on what they choose to learn, Chukes and McTaggert will assist them in finding internships and jobs at local body shops. “We are constantly reaching out to the body shops, and many of them are willing to help us with old parts that the students can practice on, for example,” Chukes said. “When we see a graduate that is working at a local shop and we get good feedback about their performance and attitude, that is very satisfying.”

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ATI Shares Five-Step Rapid Recovery Plan for Automotive and Collision Repair Shops for Beyond COVID by Chasidy Rae Sisk

The Automotive Training Institute (ATI) on May 19 shared valuable information related to the current situation and how to survive the pandemic in “Beyond COVID: A 5-Step Rapid Recovery Plan for Auto Shops.”

ATI Senior Instructor and Coach Chris Brower discussed how to build customer trust and comfort, adjust marketing plans for today’s business environment, restore car count, build cash flow and “prepare to hit the ground running at the outbreak winds down.” “It’s going to be a while before we return to normalcy, and when we do, there will be new norms,” Brower began. “We need to understand that and stayed focused on our goals and our vision. We can’t allow COVID-19 to be something that prevents us from moving forward; we can’t let it distract us from what we ultimately want out of our business. “You need to be profitable because it takes money to do the things you want, so we need to get back to some of the basics.” Most shop owners have goals that include more free time, retiring with financial security, finding quality employees, keeping employees happy and making more money, but all those goals begin with having more money. “Shops sell parts and labor, and that should be a 50/50 mix,” Brower explained. “Anything you make money on has to be a cost of goods sold on your income statement. Producing sales, managing the cost of goods sold and then making changes as possible is the most basic way to run a successful shop.” When gross profit is equal to a shop’s fixed expenses, that’s the break-even point. Before a shop owner even opens the door to customers,

the shop starts in a deficit where a certain amount of money is needed just to get back to zero. Plus, money must be made on top of that to cover operating costs. “It costs money to operate every day,” Brower pointed out, explaining how to calculate the true cost of technicians, including wages, taxes and benefits. “You need to evaluate this cost for every team member to see who’s pulling their weight, but you also want to look at this as a team number to determine how much the team needs to produce,” Brower said. “It takes money to provide your team’s benefits, and the better the benefits you offer, the better you’ll be at attracting, hiring and retaining the right people. “There are too many things in our business that slow us down and are out of our control. That’s why establishing your shops effective labor rate is so important,” Brower said. “Your shop's effective labor rate is what your team needs to produce per hour to hold the desired 60% labor margin to remain profitable. “Margins make you profitable, but dollars pay your bills and allow you to accomplish the things you need and want to do.” Brower reminded attendees they need to make enough money to cover their expenses and have sufficient funds to live on. He recommended shops hold around 50% to 55% on general parts margins and charge around 8% of parts and labor sales for shop supplies, reminding everyone shops lose 3% of their total sales from shop supplies. These are parts or items used in the repair but don’t necessarily go on the car, including protective materials, cleaners, wires, lubes and adhesives. Brower also explained how to sell value to justify the shop’s pricing on parts, knowing the customer can buy the part cheaper then what the shop is selling it for. When ATI helps a shop build a “Road Map to Success,” it begins by working backwards to examine how much overhead the shop has, what investments are needed for the business and for retirement and how

much the shop owner makes, to determine the total gross profit needed. “The shop owner is typically the lowest paid person in the shop, and that’s wrong,” Brower said. “We work from the bottom up to make sure you achieve your goals, starting by determining how much gross profit you need. Then, we work backwards to build you a road map. “Have the right mindset, a positive mindset,” Brower encouraged. “You’re an essential business for a reason. Sanitation and cleanliness are the new norm and aren’t going away; people are always going to expect

tain a couple extra cars each week. “Your messaging should be sincere and supportive—not pushy or promotional,” Brower noted. “Let people know you’re there but not desperate. Don’t try to force them to come in. People still need their cars. Make sure you’re doing the things you tell them you’ll do to sanitize their vehicles and keep them safe.” When it comes to warm calls, shops should prioritize the most unsafe items first, then the items that will become unsafe over time, ending with repairs that keep the vehicle healthy but aren’t unsafe.

“We need to stand out in times like this. Build your brand, and make it stronger.” — Chris Brower this. Remain proactive. Stay on top of things as they change. Make this a daily cadence in your business. “We will get through it. This too shall pass, and when the outbreak is over, you’ll need to hit the ground running.” Rather than cutting marketing, Brower advised shops to adjust marketing, because there is now greater accessibility to a captive audience, essential workers still need reliable transportation to get to work and non-essential workers fear losing transportation for high-priority errands, medical emergencies and the ability to commute to work once they are re-employed. “Adjust your marketing, don’t cut it,” he urged. “We need to stand out in times like this. Build your brand, and make it stronger.” Exploring ways to adjust marketing, Brower suggested offering pickup and drop-off services and goodwill discounts. Notify customers the shop is open, and educate them about the precautions being taken to keep them safe. Shops should determine how many more cars they need to offset the car count deficit, and then reach out to customers through warm calling, email marketing, text messaging and social media. Brower also discussed how using call forwarding during the hours the shop is closed can help ob-

“This helps you refill the pipeline and survive. You miss 100% of the opportunities you don’t take,” Brower said. Text messaging can be used for appointments and other reminders because it’s quick, engaging, affordable and opt-in so customers are agreeing to this form of communication. In fact, most customers prefer text messages, though email can also be an effective marketing tool. According to Brower, effective emails only include useful content, are easy to skim and are concise, though the return rate on texts is higher. Using social media to disseminate pictures and videos of the shop, processes and community outreach creates goodwill. “This is how to build your brand in a time like this,” Brower said. To schedule a phone consultation with ATI, including a free business health check, visit autotraining. net/register

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Determining Whether—and How—to Charge for OEM Research I get a lot of questions from shops regarding billing for the process of researching OEM repair procedures. Obviously, I can’t tell anyone whether to charge for this, nor how much to charge, but I can point to some things you may want to consider as you make that decision for your business. First, I can tell you what our “Who Pays for What?” surveys (www .crashnetwork.com/collisionadvice) indicate about what’s happening in the industry related to billing for OEM procedure research. The surveys definitely show a growing number of shops are charging an administrative fee for this work. Back in 2015, three in four shops said they’d never sought to be paid such a fee. Last year, just shy of half (49 %) said they had. Among those seeking to be paid, about half said the largest eight insurance companies weren’t paying the fee, but

16% said otherwise, saying they were being paid “always” or “most of the time” for OEM research. That was up from just 6% five years ago. Next, I can tell you the two aspects to keep in mind as you deter-

A “Who Pays for What?” survey last fall found more than two in five shops at least sometimes include a line item charge to cover their subscription fees to OEM repair information

mine whether and what to charge for OEM research. First, consider what you’re spending to access the OEM procedures. A few automakers make access to the information available at no charge,

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the justification for your charge. But maybe you buy annual subscriptions to some automakers’ procedures because you use them regularly. A “Who Pays for What?” survey last year, for example, found more than

25% of shops have an annual subscription to the Honda/Acura repair information website, and even more have one to the Nissan/Infiniti website. In that situation, you might consider calculating a per-vehicle cost for that access. Say you pay $400 a year to access one automaker’s information, and you repaired 100 of that automaker’s vehicles last year. Then that access averaged $4 a vehicle. Whether you bill for it—marked-up or not—is another business decision for you to make. Our surveys last year asked whether shops charge a separate line item specifically to cover the access fees they pay for OEM information. Almost one in four (23 %) say they always or almost always do, and another 20% said they do when using an OEM site for which they don’t have an annual subscription.

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The second thing to consider as you determine whether and what to charge for OEM research is the labor time involved. That consists of the time to find all the needed information within the OEM system, read it, print it and distribute or review it as needed with technicians. As many of you are likely well aware, that can be a time-consum-

el. You need to know, for example, what’s involved in removing and reinstalling the bumper cover. You need to know, if removing and reinstalling a door is involved, whether you need to reinitialize the pinch protection on the window. You need to know what steps are required after reconnecting the battery if disconnected for welding. You need to

el and may change over time. It also can involve digging for needed information other than the first place on the OEM website where you might assume you’d find it. I was contacted by a shop that had researched the OEM procedures for replacing a rocker panel on a specific vehicle. Because no sectioning procedure was shown, the shop re-

Among nearly 500 shops responding to a “Who Pays for What?” survey last summer, about half of shops acknowledged never seeking to be paid for the research of OEM repair procedures they do, yet among those who do charge, 16% say they are paid for it regularly

ing task. One of my teammates, Josh Kuehn, recently wrote an estimate to replace a quarter panel on an Acura MDX. He had to pull more than 90 pages of OEM repair procedures. It’s not a matter of just pulling the procedures for the quarter pan-

look up all the corrosion protection steps involved. Some might argue that Josh should know some of what’s included in those procedures. But you can’t take anything for granted, because procedures vary from model to mod-

placed the entire rocker panel. The insurance company involved refused to pay because there was a sectioning procedure. It just was included under the door post section of the OEM website. So sometimes you have to think

outside the box and look in other areas as you do the research. All of the OEM websites are organized differently. I had a similar experience to Josh’s when I recently wrote an estimate to replace a quarter panel on a Toyota Camry; more than 90 pages of documents were involved. I by no means claim to the best at researching OEM procedures, but I believe I’m above average. Yet I easily had five hours into researching the OEM procedures and writing the estimate. Now obviously, the more OEM research you do, the better and faster you will get at it. Repetition breeds efficiency. That’s why a few shops— our surveys indicate about one in 20—designate a particular person to do all the OEM research. There are third-party solutions that standardize the organization of the OEM information, which is great, though I still am a proponent of accessing the OEM information directly. But in any case, this is definitely not a five-minute task. I know there are efforts under way by automakers, estimating sysSee OEM Research, Page 44

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Continued from Cover

8 Things to Know er or actions to take in the wake of civil disorders. 1. Is there coverage? Generally yes, since riots, civil commotion and vandalism are included as named perils in most first-party property policies, unless there is language specifically excluding them. They are covered perils in commercial property policies, standard homeowners policies and business insurance policies. 2. What is covered? Auto insurance should provide coverage for damaged cars under the comprehensive portion of the policy. Homeowners insurance should cover property damage. Business insurance covers physical damage to a building and its contents, lost income for suspended operations, civil authority covers property loss other than the business location due to closures by the authorities. 3. What should landlords/owners do?

Patrick Kelahan, a building consultant with H2M architects + engineers, recommends proving building/property ownership to onsite law enforcement personnel, attending to any injured individuals and stabilizing the building and ensuring it is safe. This can include boarding up windows and doors, securing utilities and capturing witness statements. Code enforcement officials may also need to be contacted. Notify the insurance company and the mortgage-holder of the property of the damage. 4. What should renters do? If the property is leased, the owner should be notified. They should secure any valuable inventory (e.g., jewelry, munitions, medications) either removing it from the property or placing it in a safe on the premises if practical. 5. Is moving an option? Kelahan says business interruption insurance would cover incurred costs above normal expenses. Rent for an alternate location and increased operating costs would be included. If relocation is not necessary,

the lease may indicate whether or not there are any rental remedies (e.g., deferred rent or rent forgiveness) while the property is being repaired. Business owners should also look at their business interruption coverage.

Coordinating efforts, having a detailed scope of damage and knowing what the estimated cost of repairs will be provides a clear roadmap for everyone. More organized parties will often be the ones repaired first.

6. How do you file a claim? Contact your insurance company to file a claim. Since this can be new territory for business owners, Kelahan recommends keeping a daily journal of who you speak with, what was discussed, commitments agreed to and when to followup. Track any expenses related to the loss, inventory all damaged furniture, fixtures and equipment and sales merchandise, and document the damage. Remove financial and sensitive records from the premises. Stabilize the décor and remove damaged materials.

8. What about fraud? Carriers should be aware of fraudulent claims arising from the riots. Red flags include damage to contents but no damage to the structure, no video of the damage occurring despite the presence of cameras on or near the property, insured can’t describe what was on the premises before the riot, no police reports are filed, the insured contacts a lawyer before the insurer, a previous claim for the pandemic was denied and the report with the police is filed weeks after the riot.

7. Who’s responsible for reconstruction? Whoever owns the property is responsible for rebuilding, explains Kelahan. Coordinating adjusting efforts between the building owner and business operator is vital from the time the claim is filed to the final clean up.

We thank PropertyCasualty360 for reprint permission.

GM Has a New Plan to Overtake Tesla, and It Starts With an Electric Van by Joey Klender, Teslarati

General Motors has a plan to take Tesla’s label as the leader of the EV industry away, and it involves taking on a market that the electric car maker has yet to tackle. GM is planning to develop an electric delivery van that would be used by entities like UPS, Amazon or even the U.S. Postal Service, Reuters was told by people familiar with the matter. The plan could put GM into the commercial electric vehicle conversation. However, the project, when combined with Ford, Rivian and other EV makers, is a potentially multi-billion-dollar idea that could help the companies build and deliver a substantial amount of electric cars. It could also help the companies tackle Tesla by targeting a segment the Elon Musk-led company is yet to address. That being said, it should be noted consumer vehicles are much more popular than delivery vans, so there’s not much of a threat for Tesla to be derailed by EVs designed to carry packages.

GM’s plan for a van has not been reported previously. The company, along with Ford, was reportedly advised to keep any plans under wraps. Trucks and commercial vehicles are among the two Detroit-based companies’ most profitable vehicles, and suggestions from suppliers recommended things remain quiet regarding the development of electric vans. They “don’t want to leave the door open for Tesla,” something the

UPS Senior Director of Fleet Maintenance and Engineering Scott Phillippi said the company believes battery-powered vans have the potential to disrupt the commercial market. “It’s going to be similar to what the Model 3 has done for the consumer market,” he said. Even though GM is planning a strong push to develop battery-electric cars within the next few years,

companies both did with consumer passenger vehicles. The GM van is currently recognized under a pseudonym, the BV1. It is set to start production in late 2021 at the automaker’s Detroit-Hamtramck plant, according to sources, and it will share several components with GM’s electric pickups and SUVs. One of these is the Ultium battery system.

there is little evidence its technology will outperform Tesla’s. GM claims it is close to a million-mile battery, a major focal point of Tesla’s battery tech developers for years. But for now, the veteran automaker is yet to prove its EV capabilities in the market. We thank Teslarati for reprint permission

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Women in Auto Care Accepting Entries Women in Auto Care, a community of the Auto Care Association, is now accepting entries for the 2020 Automotive Communications Awards. The Automotive Communications Awards are designed to recognize companies and agencies that provide automotive information to consumers and trade professionals through outstanding advertising, marketing, merchandising and effective public relations. A portion of the proceeds from award submissions goes toward providing scholarships to women entering the automotive aftermarket industry. Award winners will be notified in October and will be recognized at this year’s Aftermarket Products Expo (AAPEX) in Las Vegas, NV. For more infomation see the Women in Auto Care web page’s “Awards” tab. No entries will be accepted after Sept. 11. Source: Auto Care Association

36 JULY 2020 AUTOBODY NEWS / autobodynews.com

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Ford Cautions Against the Use of Aftermarket Glass Ford Motor Company issued a statement outlining what it says is the need for OEM glass to be used in replacement on the company’s vehicles.

The statement says the “[w] indshield and side glass play an integral role in the performance and functionality” of some of the passenger safety features and “it is critical that the vehicle be restored to proper operating condition” when it comes to glass removal and replacement. “The original glass used on Ford Motor Company vehicles is designed and built to provide optimum fit, function, safety and structural integrity. The quality, performance and safety of aftermarket replacement windshield and side glass may not meet Ford Motor

Company’s exacting specifications, and can result in key safety features not functioning properly and reduced customer satisfaction in the performance of their vehicle,” Ford says in the statement. “For these reasons, Ford Motor Company does not approve the use of aftermarket windshield or side replacement glass. Only by using Ford Original Equipment Carlite replacement glass can you be assured of the fit, function, safety and structural integrity of the repair.” The company goes on to list the specific links between glass and the technology in their cars. Some windshields have cameras and integrated camera brackets for use in different Advanced Driver Assistance Systems (ADAS), and Ford says these cannot be replicated on aftermarket windshields, some of which, the company indicates, “often contain distortion that adversely affects the cameras operation, which can result in improper ADAS operation.” Head Up Display (HUD) windshields are specifically designed and manufactured to elim-

inate secondary HUD images, and SoundScreen® acoustic windshield and side glass are engineered with acoustic dampening technology

within the glass layers to reduce road, wind and other exterior noise to maintain the quiet interior ride of the vehicle, none of which, Ford says, can be duplicated to the same degree by aftermarket glass. “Aftermarket glass often does not meet the same stringent specifications as genuine Ford glass and can result in poor quality HUD performance,” according to the statement. We thank glassBYTEs.com for reprint permission.

GM Designates $10M for Inclusion, Racial Justice General Motors announced June 5 it has designated $10 million to support organizations that promote inclusion and racial justice. An initial $1 million will go to the NAACP Legal Defense and Educational Fund. Recipients of additional funding will be determined with input from GM’s Employee Resource Groups (ERGs) and the recently announced GM Inclusion Advisory Board (IAB.) GM’s IAB will consist of leaders from inside and outside the company, with the goal of making GM the most inclusive company in the world. GM Chairman and CEO Mary Barra will chair the IAB. The GM program includes the opportunity for employees to give to organizations, and a corporate matching of those employee contributions. The employee contributions and the GM matching funds are part of the $10 million. Program details will be distributed to employees when finalized. Source: GM

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All Girls’ Bogi Lateiner Discusses Post Corona Customer Care and Communications by Chasidy Rae Sisk

Now that the world has been dealing with the COVID-19 pandemic for a couple months, things are slowly starting to reopen, leading people to talk about the new normal and what life will be like post-corona. Bogi Lateiner, of All Girls Garage, dove into the topic of “Post Corona Customer Care and Communication” during a recent installment of a collaborative series of technical and management classes focused on necessary topics for navigating business operations during the COVID-19 pandemic. The series is hosted by the Carquest Technical Institute and Worldpac Training Institute (CTI+WTI.) Charlie Sanville, most commonly known as the Humble Mechanic from YouTube, introduced Lateiner, who began by posing several questions: “How much has changed, will these changes be permanent and, if not, how long will they last? “We’ve all been forced to find

ways to carry on with many aspects of our lives, including auto repair,” Lateiner said. “Here’s my suggestion: What if corona isn’t really a game changer at all? What if it’s a game elevator? Maybe, the pandem-

Bogi Lateiner

ic is giving us a clearer view of what has to change within our world and within our industry and challenging us to change our perception of things.” “Very little has changed on a deep and fundamental level,” Lateiner insisted. “But this affords us a unique opportunity to examine what we, as an industry, are doing to care for our

teams and our customers. Do we have the things in place that it’ll take to move into the future? “The automotive and collision industries have been in the process of revamping how we serve customers and compete for some time. We don’t know the outcome of COVID-19 since it’s still happening, but this is the time to ask ourselves the hard questions and hopefully come up with new innovations.” Although the outbreak has devastated countless businesses, that is the case with any other major disruption as well, so shop owners should focus on what it means to run a successful shop in a turbulent world, regardless of the current disruption. “How you handle it will determine whether you succeed or not; disruptions are weathered by businesses that are willing to question, adapt and grow,” Lateiner said. “We’ve seen shops go out of business, but other shops are thriving because they are embracing change. If you’re not in a state of growth, you’re in a state of decay. This is a natural process, but

right now, it’s moving as an unprecedented rate.” The COVID-19 pandemic is a huge disrupter, but Lateiner believes the bigger issue is not being customer-centric. “Not focusing on your customers will be more detrimental than the pandemic itself. We’re in the business of customer service, and we need to re-evaluate what being ‘of service’ looks like,” she said. “The most dangerous phrase you can utter is ‘We’ve always done it this way,’ because the same thinking leads to the same results. If we dig in our heels, we’re not going to survive—being self-righteous isn’t going to serve us, but being customer-focused will.” Lateiner pointed out that customers’ increased concern for cleanliness, desire for digital appointments and tendency to drive fewer miles are all things that have been trending in that direction. “Coronavirus isn’t changing anything—it’s just exacerbating and accelerating things,” she stressed. “How we do things might change,

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but the why shouldn’t change. If you’re just in business to make money, that’s not going to cut it, but that was never enough. “We’re in this business because we want to be people’s heroes,” Lateiner continued. “We keep them safe and treat them respectfully. That’s how we compete with dealerships; we care so much about our customers, and that shouldn’t have changed even though COVID has raised the stakes and the stress level.” Because most people are under increased stress, Lateiner emphasized the importance of ensuring service skills are well-honed. She reminded attendees customers have never been excited to come to the shop. “People are scared of being taken advantage of. They come to you with baggage from past experiences and stereotypes about the industry, but with less financial security in the current crisis, people are even more stressed, so you need to approach them with empathy and realize they are experiencing a whole range of emotions that you can’t predict,” she said. “We never knew what was going on for our customers, but now, everything is exaggerated.” Lateiner said the only opinion that matters is that of the customers. People are divided on believing the pandemic is real or a hoax, but a shop owner’s job is to recognize this divide and adapt their business practices to accommodate those customers who are terrified for their lives. “Your opinion doesn’t matter,” she said. “It’s not about you, it’s about your customer. Your customer’s perception is your reality.” Despite the changes caused by the pandemic, the essentials of communication haven’t changed. It’s important to carefully choose words and monitor tone to build trust. “During high stress, listening skills are non-existent,” Lateiner explained. “A stressed customer isn’t thinking clearly, which increases the chance for missed communication, which is the cause of 99% of customer problems. “All customers have one thing in common: their humanity. They need help solving a problem, but they come to you with thoughts and feelings of their own. People want respect and appreciation, to be valued and heard,

so it’s more important than ever that you are present, listening actively and suspending judgment.” Communication begins being 100% present to completely hear what the customer is saying and pick up on any non-verbal cues. Next, practice active listening, encouraging customers to fully express their needs. Finally, suspect judgement. “Judging a person doesn’t define who they are; it defines who you are. People don’t feel heard when they feel judged,” Lateiner said. “You don’t know what’s motivating their decisions, but you need to respect them.” Shops should get creative in their communication, employing ways to make customers feel comfortable. Adopt new policies as needed, then communicate how the shop is taking care of its customers. Communicate alternatives to avoid person-to-person contact, but with fewer customer interactions, it’s important to make each one count. Social media is a great way to demonstrate all of these items. Dealerships have the advantage because they’ve had processes in place to meet customers’ current needs for a long time, but independent shops can compete by playing on their own strengths, which is building relationships. “If you don’t get creative in how we do that, the advantages of going to a small shop gets eroded. We’ve got to step up our game to keep from becoming a commodity,” Lateiner urged. Addressing how to deal with challenging customers, Lateiner reminded everyone of customers’ stress levels in the current situation and pointed out that an upset customer wants to feel heard, be acknowledged and know the perceived wrong will not happen again. “Remember it’s not about you. It’s not a personal attack, even though it often feels that way—unless you’re being intentionally obnoxious and awful, this just isn’t about you. You have to be kind and empathetic, even when they’re not being kind to you. “You cannot argue with feelings,” Lateiner added. “The accuracy of the complaint is 100% irrelevant because you can’t control their perception. The reality is they’re upset, and we’re not dealing with the complaint, we’re dealing with their feelings. You can’t tell them what they’re

allowed to feel, and feelings of lost power, fear, sadness and more often comes out as anger because anger is more socially acceptable. You can’t meet anger with anger, though. You have to meet them where they’re at and work together to resolve the problem.” Lateiner also advised it’s best to let an angry customer get their feelings off their chest since they are physically unable to listen to you until they’ve released their anger. “When they’re done, you can start the rest of the process, but if you start talking before they’re done, you aren’t going to get anywhere. You just have to shut up.” Mistakes made should be owned, using the five-part apology. Thank the customer for bringing the issue to your attention, use empathy, acknowledge them, offer a genuine apology and then work with them to come up with a solution. Lateiner also recommended practicing self-care. “It’s a priority and a necessity, not a luxury. If you have a really rough customer, take a walk or watch a video to make your heart happy and

fill you back up. Otherwise, you’ll take that bad experience to your next customer and wind up with a whole days’ worth of unhappy customers. “Don’t get stuck, get excited about this and make it an opportunity,” Lateiner encouraged attendees. “Get excited about growth and challenge. Use it as inspiration to innovate and ensure that, in the thinning of the herd, your shop is one that not only survives but thrives because many shops are truly thriving right now, despite the challenges and obstacles.” “We don’t know what the world looks like after COVID-19, but we know that what comes next, the future of our industry, is up to us. Let’s choose collectively to make this be the thing that launches our industry into positive growth. Let’s leverage this to show the world how great this opportunity is, and let’s see it as an opportunity to better ourselves and our industry, and to take better care of our customers in the future.” A complete webinar schedule for this series is available here http:// worldpac.com/training/classes/online/ or here https://ctionline.com/

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Day Job/Night Job: Collision Writer Launches Fun Art Project in Quarantine, Now Hundreds of People Want His Pet Drawings Then, in October 2011, Attanasio was presented with a binder filled with Ed Attanasio started our Day Job/ all the drawings he created during his Night Job column here at Autobody rehab: an eclectic collection of baseNews in 2017, writing stories about ball and football players, gangsters, people in the collision repair indus- dinosaurs, dogs, birds, monsters and try who have amazing sidelines and aliens. second careers as musicians, artists, “All of the peculiar-looking ilauthors, performers—even a techni- lustrations that emerged from my cian with a world-class Frisbee dog. stroke-scrambled brain were all toAttanasio has interviewed a wide gether and ready for something…but range of creative people in different what?” he said. “Could this be more capacities within the collision repair than just a hobby or a distraction?” industry, and now Autobody News is The answer turned out to be yes. covering him and his dynamic art caAttanasio sold his first piece, reer. “Bushers,” consisting of 48 fictional baseball players, for $3,000 at a gallery in San Francisco. It also led to a graphic novel based on the image and gallery shows throughout the Bay Area. In April, Ed began looking around for something he could do to bring joy to people during the COVID-19 ABN Writer Ed Attanasio started a thing called the pandemic. Pandemic Pet Project to use his art to create goodwill One day, a few friends during these uncertain times. Credit: Ed Attanasio asked him to draw their pets, Attanasio started sketching as and when they saw what he created, a form of rehab after he had a mini he said they either smiled or cried stroke in 2009. Little did he know that tears. So, he reached out to all of his eventually, his illustrations would lead friends on Facebook and Instagram to a career as an artist, surprising art and started the Pandemic Pet Project critics, gallery owners, his friends and (PPP) to draw abstract images of peoeven himself. ples’ pets for free. In return, Attanasio Attanasio’s stroke didn’t hamper his motor skills, but it did affect his brain to the point where he was forced to take a break from his job at Autobody News. To occupy his time, he began drawing a series of illustrations on Post-It notes for hours and hours during his 14-month recovery. Attanasio said he drew these characters only as part of his therapy and nothing more at first. “I never thought anyone would see them, and I surely never imagined I could sell them. My friends He is creating four images daily, with more than 200 completed and 150 still left to draw always seemed to enjoy the characters, but eventually [the Post-It notes] asked them to pay it forward by dowould migrate down to our refriger- nating as much as they could afford ator door and after a while, they’d to their local pet rescue organization. disappear,” Attanasio said. “I figured What started out as a favor to they were getting tossed, but I wasn’t friends soon gained momentum and concerned, because I could see that I turned into something much bigger. was steadily improving and knew the “I thought maybe half a dozen art was playing a role.” people would respond, but on the first by Autobody News Staff

day, I had 30 requests and more than 50 by day two, and it’s still growing!” he said. Attanasio added the total to date is 350 illustrations requested and more than 200 completed.

Many people take photos of their pets with the art and post them on the Pandemic Pet Project page on Facebook

Attanasio’s art project has attracted media attention from outlets such as the San Jose Mercury News, KNTV, KGO, East Bay Times and the Associated Press of Taiwan, among others. As far as methods go, Attanasio said, “I get the colors and image in

my head right before I draw. I never sketch first; I just dive in.” A writer for Autobody News since 2008, Attanasio said, “I love writing about all of the philanthropy in this industry and interviewing interesting people like the late Gene Crozat, Michael Anderson and Todd Tracy, the attorney in the John Eagle Honda case. I’m known for writing feel-good features highlighting all of the positive things in this industry.” To learn more about The Pandemic Pet Project, check out the Facebook page: www.facebook.com/ pandemicpetproject/?modal=admin _todo_tour Would you trust your pets with Attanasio? If so, submit photos of your cat, dog, bird, lizard, goat or horse along with your mailing address to him via Facebook Messenger and get ready for a small piece of original art to arrive on your doorstep. Limit two per person. “If I cut off an ear, maybe these will be worth something one day,” he joked.

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42 JULY 2020 AUTOBODY NEWS / autobodynews.com

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Riots in Wake of Floyd’s Death Could Become Most Costly Civil Disorder for Insurers by Jim Sams, Insurance Journal

Rioting that erupted in cities across the country after peaceful protests mourning the death of George Floyd in Minneapolis may rival the 1992 Los Angeles riots to become the most costly civil disorder for insurers in U.S. history. The civil disturbance in Los Angeles after the videotaped police beating of Rodney King in April and May 1992 caused $775 million in damages―or $1.42 billion in today’s dollars, according to the Insurance Information Institute (III.) Those riots, however, were largely confined to one metropolitan area. Destruction and looting that erupted after Floyd’s death was reported in at least 25 cities, and spread into many suburbs as well. “We expect this to be a significant loss event as the impact is being experienced in large and small markets across the U.S.,” said III spokesman Mark Friedlander. “However, because it is an ongoing event, it is premature to determine the volume of property loss that will be incurred.”

Civil disturbances generally cause modest property losses when compared to natural disasters, data from III shows. Rioting in Los Angeles in August 1965―the second costliest civil disorder―caused $357 million in damages, measured in 2020 dollars. Together, riots in Baltimore, Chicago and New York City in April 1968 caused $231 million in damages in today’s dollars. By comparison, Hurricane Harvey in 2017 caused an estimated $20 billion in damages. Verisk’s Property Claims Service (PCS) over the weekend declared the riots a catastrophe event, which means it projects damages of more than $25 million. PCS hasn’t designated a civil disturbance as a catastrophe since the Baltimore riots in 2015. PCS head Tom Johansmeyer said the riots sparked by Floyd’s death may be the first civil disorder tracked by PCS that includes more than one state. Johansmeyer said “to better understand” potential riots from current rioting, it make sense to look at losses caused by civil unrest last year

in Chile―which grew from protests over an increase in subway fares in Santiago. Rioting there caused insured losses of $2 billion. About a third of that came from property claims from a handful of large retailers. “When you look at the United States, riot and civil disorder may generally look like a sub-US $100 million risk, although with the potential for much greater losses,” Johansmeyer said in an email to Claims Journal. “But, when you add a handful of large national or international companies with losses of more than US $100 million each, you could see a much larger industry loss begin to materialize. The large losses within the catastrophe could change the character of the overall event.” Keefe, Bruyette & Woods analyst Meyer Shields said June 8 that his best guess is losses from the current riots will be “relatively modest.” Nevertheless, the losses will combine with losses related to COVID-19 claims and property damage from a predicted above-average hurricane season to amount to a “capital event” for some reinsurers.

“As always, major losses should subsequently intensify the current hard market, but the ‘pain’―especially for individual (re)insurers exposed to disproportionate losses―would come first,” KBW said. III said riots, civil commotion, vandalism, looting and fire in the U.S. are covered perils under virtually all business owners and commercial insurance property policies. Merchandise stolen by looters will also be covered. III said about 40% of small to mid-sized businesses are also protected by business interruption coverage. “Even if the business was still shut down or operating at limited capacity due to the impacts of the COVID-19 pandemic, most insurers will determine income loss based on a 12-month assessment of the operation’s income,” III said in an email. That coverage may also protect businesses that have to shut down early because of curfews imposed by city governments, III said. We thank the Insurance Journal for reprint permission.

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When you repair a BMW, use the parts that are identical to those used in Series production – and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation. ©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. autobodynews.com / JULY 2020 AUTOBODY NEWS 43

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NY Body Shop Owner and Landlord Forgives Rent for 200 Tenants by Ed Attanasio

A lot of body shop owners end up being landlords, and sometimes it can be a pain in the you-know-what. When you’re trying to fix cars and keep your customers, insurance partners and employees happy, you don’t want to have to worry about late rent or Mrs. Smith’s leaking faucet in apartment 5.

Mario Salerno is a second-generation shop owner whose children, Sal and Mario Jr., will eventually take over the businesses

When this pandemic blindsided many of us, people all over the world started asking about their rent or mortgages. To placate his tenants and take the high road, Mario Salerno, owner of Salerno Auto Body in the heart of Williamsburg in Brooklyn, NY, waived rent for all 200 tenants living in his 18 properties. When Salerno decided to waive the rents for April, he posted the following message in all of his buildings: “Due to the recent pandemic of coronavirus Covid-19 affecting all of us, please note that I am waiving rent for the month of April, 2020.” The Salerno family has three separate businesses, including a service station, a mechanical repair shop and Continued from Page 35

OEM Research tem providers and others to create solutions to these challenges, to help reduce the amount of time it requires to find the correct dozens of pages of documents needed for most repairs.

a body shop. Owned for three generations, Salerno Auto Body opened in 1959, fixing Buicks, Cadillacs and Lincoln Continentals for guys named Nunzio and Carlo. Salerno’s businesses have played an integral role in the neighborhood since Day One, and when Mario retires, his son Sal, 33, will assume the helm. Today, Sal runs the body shop and Mario’s youngest son, Mario Jr., also works in the business on the mechanical side. A collection of colorful locals often convene at the shop until Mario tells everyone it’s time to get back to work. The neighborhood is calling him “Super Mario” and praising him for a gracious act that changed the lives of more than 200 people. All he asked of his tenants is to pay it forward if possible. “If my tenants can help others because of this, that’s what we are looking for,” he said. “A lot of people have told me about charitable things they’ve done after getting help from us and that always makes me smile.” Salerno is currently tapping into more than his allotted 15 minutes of fame, but he’s not about that. When he sees someone in need, he doesn’t hesitate to help them in any way he can. Salerno’s selfless act led to a big story in The New York Times and an appearance on The Ellen Show. He’s pleasantly surprised by all the hoopla, and a little reluctant to receive the praise and acclaim, according to son Sal. “My dad does stuff like this all the time and people don’t know about it,” he said. “He went to Texas But until that happens, you need to keep doing it, and consider whether it is something for which you should charge. And above all, save all the researched documents with the job file, so in case you ever need to do so, you can prove how the automaker called for the vehicle to be repaired at the time you did it.

one time to save 63 puppies from being destroyed. We have a friend who owns a pet shelter and when he told my father about it, he hopped in one of our Sprinter vans and drove 50 hours roundtrip. Some of our tenants now own those dogs, so we get to see them all the time. They call them ‘Mario’s dogs.’ “In addition, we close during the holidays and invite all of the local schools here to celebrate Christmas. We get a Santa and go way over the top with decorations and small gifts for the kids.” The body shop portion of the family business repairs 35 to 40 vehicles every month in a hyper-competitive market, where “accident chasers” are a reality. “Here in this area, shops will use their police scanners and then rush over to where the accidents are and try to get the car towed to their shop. We have been around long enough and have a great reputation for being honest,” Salerno said. “So, we don’t have to chase accidents or rely on DRPs for business, because people

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know who we are and that we’re not just into this for a quick buck.” Although Salerno does not want to disclose how much money he would lose due to not collecting rent in April, the Times estimated he was

Many of Brooklyn’s most colorful characters stop by Salerno’s to share stories and hang out

likely foregoing more than six figures in rental income. “It’s not about the money,” he said. “These are unique times and we need to work together to make it through this. I learned long ago that money isn’t everything. I thank God every day for being in a position where I can do this.”

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CIC Goes Virtual for July Conference

Bipartisan PPP Flexibility Act Sails Through Senate A bipartisan bill that would give small business more time to use the funds from Paycheck Protection Program, as well as other updates to the program, was passed by the Senate in a unanimous voice vote the evening of June 3. The Paycheck Protection Program Flexibility Act, sponsored by U.S. Rep. Chip Roy (R-TX) and U.S. Rep. Dean Phillips (D-MN), had previously been passed by the House of Representatives in a 417-1 vote. It now heads to the White House, where President Donald Trump is expected to sign it into law. The bill addresses concerns with the Small Business Administration’s forgivable PPP loans, which require businesses to use the money within eight weeks of receiving it to be eligible for full forgiveness. Because many businesses were shut down for months by government orders, they didn’t have the time to do what was necessary to have their loans forgiven in that short span. Roy and Phillips said the PPP Flexibility Act is intended to make it more feasible for businesses to qual-

ify for forgiveness. In addition to extending the time in which the loan funds must be used to qualify for full forgiveness from eight weeks to 24 weeks― through Dec. 31―it would also reduce the percentage of PPP funds required to be used from 75% to 60%.

“NIADA is proud and encouraged to see members of both parties in Congress come together and act quickly to solve this problem,” said Steve Jordan, CEO of the National Independent Automobile Dealers Association.

“This bill provides much-needed flexibility to NIADA members and small businesses across the nation as they reopen and rehire staff,” Jordan said. “Economic recovery from a crisis like COVID-19 takes time, and this gives independent dealers the time they need to get their operations back up to full .” Other provisions include eliminating the restriction limiting loan terms to two years, allowing businesses that receive PPP loans to also defer payroll taxes and extending the deadline to rehire employees from June 30 to Dec. 31 to account for the effect of federally enhanced unemployment benefits. The deadline for to receive a PPP loan remains June 30. The PPP, created by the CARES Act in late March, allotted $349 billion in funding for forgivable loans of up to $10 million per borrower to help small businesses weather the COVID-19 crisis. After those funds were distributed in less than two weeks, Congress approved an additional $310 billion on April 21.

In the face of continued restrictions for gathering, the Collision Industry Conference (CIC) will be held as a virtual meeting for the first time in its history. CIC will be held July 22 and July 23 from 11 a.m. to 3 p.m. Eastern Time via Zoom, pre-registration required. As with the live CIC, several committees will make presentations and attendees will have the opportunity to raise their hand and speak during Q&A and open mic times. Organizer Jeff Hendler believes this platform will also give those who have been curious about CIC―or even too busy― the opportunity to experience the unique meeting without the added cost and hassle of traveling. CIC committees have been hard at work throughout the crisis, and plan to bring that work to the industry stage in July. To learn more, visit the schedule page at www.ciclink.com /schedule/ Source: CIC

Source: NIADA

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Volkswagen Activates ‘Sign Anywhere’ Across Network Volkswagen of America and VW Credit, Inc. announced the availability of remote digital signatures across the Volkswagen dealer network to offer customers and dealers flexibility during the pandemic. Sign Anywhere is remote, digital signature tool powered by CDK Global that allows customers to remotely and securely digitally sign financial documents with their own computer or mobile device without stepping foot in a showroom― providing an online automotive buying experience. While digital signature technology has been in widespread use for some time, it has taken time to adopt this technology to meet the requirements found in the financial services space. Volkswagen is among the first to offer Sign Anywhere at its dealerships through its financial services arm VCI. Source: Volkswagen

Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus by Joey Klender, Teslarati

Shares of Tesla opened June 10 at new highs, crossing $1,000 per share as investors weighed in on rumors of the Tesla Semi’s initial production push. An email from Elon Musk circulated early that morning, indicating Tesla’s focus would be to get the Semi to “volume production.” “It’s time to go all out and bring the Tesla Semi to volume production,” Musk said. “It’s been in limited production so far, which has allowed us to improve many aspects of the design.” Musk indicated in the Q1 2020 Earnings Call Update Letter the Semi would not begin deliveries until 2021. In early January, Tesla’s Truck Team contacted Semi pre-order holders indicating a limited production push would take place in the second half of 2020. The Semi was unveiled in November 2017 and Tesla has been assessing its performance since then. Recently, the commercial vehicle was subjected to cold-weather test-

ing in Alaska. Tesla’s Model 3 ramp-up in China, along with its developments of a million-mile capable battery, has also convinced Wedbush analyst Dan Ives to raise his price target for the electric automaker from $800 to $1,000. Ives maintained a neutral rating for the stock.

“We believe with demand for Model 3’s ramping stronger than expectations in China heading into summer timeframe…that Tesla’s stock likely has room to run further,” Ives said in a note to investors. “While the stock has been roaring higher, we believe the main fundamental catalyst continues to be the massive China market which is showing clear signs of a spike in demand for Musk & Co. heading into the rest of this year,” he added.

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Ives also attributed battery developments that could be potentially “game-changing” for Tesla as another reason for his price target increase. Indicating Tesla’s upcoming “Battery Day” would occur in late June, the company’s Chinese battery supply firm CATL, recently released details on its own million-mile battery assembly. Tesla and CATL signed a two-year contract in early 2020 that pairs the two companies in a partnership from June 2020 to July 2022. In the U.S., speculation continues to indicate Tesla will unveil its own million-mile battery pack that will increase the life span of its electric vehicles by a considerable margin based on current warranty documents. TSLA stock closed at $940.67 on June 9 and is currently trading at $998.25 at the time of writing.

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