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Hail Damage from NE Storm that Insurers Now Call a Catastrophe Could Top $80 Million by Steve Jordon / World-Herald staff writer / Omaha World-Herald
VOL. 6 ISSUE 11 AUGUST 2017
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chip paint and break the lens on his right headlight—and cracks arrayed like a spider web in his windshield. “I couldn’t believe it,” said Seitz, who was at a drive-thru insurance claims office in La Vista this week. A claims adjuster had just given him a $7,000 check, which he’ll use to fix the CR-V. “I like this car,” Seitz said. The check was Seitz’s piece of what insurance companies now call the June 29 Omaha hail property damage catastrophe, setting in motion a tedious
Takata Airbag Recall Expands by 2.7M More Vehicles, Ca2SO4 Desiccant is Now Suspect in Certain Inflators by Autobody News Staff
mechanism is to prevent the propellant, largely ammonium nitrate, from becoming hydrated and therefore unstable. In chemical terms instability can affect the burn rate of the compounds and behave unpredicably, leading to malfunction. Environmental moisture, high temperatures, and age contribute to the process that can disastrously fragment the airbags’ inflator mechanism. NHTSA has determined the root cause of the inflator casing shattering problem is airbags that use ammonium nitrate-based propellent without a reliable chemical drying agent, i.e., without an effective desiccant. The propellant oxidizes hydrated fuel granules and wafers explosively, causing the inflator’s casing to rupture and fire the shattered fragments with sometimes lethal velocity.
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In a dramatic expansion of what is already the largest automotive recall in history, Takata Corp.—which recently filed for bankruptcy protection—has just added 2.7 million vehicles to the total. Vehicles made by Ford, Nissan and Mazda are using a type of airbag inflator including a desiccant, or drying agent, that previously was thought to be safe. Commonly encountered desiccants are solids that absorb water. See Hail Damage, Page 18 They are frequently used in packaged foods to retain o m c l e e s w ws g this iss reade crispness and are in e ue N in MN Commerce Department Fines Two in rs y ead no way explosive in r a their own right. Insurance Companies for Failure to However the Settle Claims desiccant’s role Even when the driver won’t cooper- even worse if in the Takata ate, the insurance company must pay the at-fault driSee Takata Adds to Recall, Page 32 airbag inflation claim. ver’s insurance Minnesota Commerce Commis- company tries Mahalo Nui Loa Mahal sioner Mike Rothman announced to stonewall and State Insurance Regulator Expresses Openthat his agency has fined two insurdeny your claim, ness to Ideas Implemented in Other States ance companies for violating state which is not acceptby John Yoswick consumer protection laws by refusing able.” to insurers. Bob Redding, the Autoto pay auto accident claims for damWhen someone files a motive Service Association lobbyist age caused by drivers they insured. damage claim with another driver’s Collision repair shops and associawho serves as vice-chairman of the CIC “When there’s damage from a insurer, it is known as a third-party tions often express frustration in trycommittee, said the U.S. House has apcrash caused by the other driver, you claim. ing to work with their state proved legislation overturning must be treated fairly by that driver’s In recent consent orders with the insurance regulators on isthe antitrust exemption for insurance company,” said Rothman, Commerce Department, American sues related to steering, use health insurance companies. whose agency regulates the insurFamily Mutual Insurance Company of non-OEM parts or other But, he said, it was too early ance industry. “Getting hit by another was fined $25,000 and Bristol West insurance claims practices at that time to know if the car is a terrible experience, but it gets they consider unfair or illeSenate would also include See MN Commerce Department, Page 22 that in its healthcare legislagal. But presentations and discussions at a recent Colli- Brooke Stringer of tion, nor if lawmakers would sion Industry Conference the National Associ- have interest in also ending ation of Insurance the antitrust exemption for (CIC) on state or federal regCommissioners ulation of the insurance inproperty-casualty insurers. (NAIC) said NAIC dustry may offer an example supports state rather He also said the Republiof how to approach getting than federal regula- can-controlled Congress has tion of insurance also expressed plans to roll regulators to act. The CIC “Governmental Com- back some financial industry regulamittee” began its presentation with a tions (known as the Dodd-Frank leglook at the prospect of repealing the islation) passed in response to the 1945 McCarran-Ferguson Act, the 2007–08 financial crisis. Among federal antitrust exemption granted See Insurance Regulator, Page 49 Dick Seitz (Class of ‘61) and his Cathedral High School buddies were at Mama’s Pizza on Saddle Creek Road [in Omaha, NE] on the evening of June 29—telling stories of the old days—when they heard what sounded like firecrackers outside. The noise actually came from hailstones, some as big as 4 inches in diameter. Within a few minutes, Seitz’s 2010 Honda CR-V had dozens of dings and dents—one of them deep enough to
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COLUMNISTS ‘Who Pays for What?’ Finds Improvement in Payment for Not Included Body Labor Operations . . . . . . . . . . . . . . . . . . . . . . . . 23 Antonelli - CAA Members Tour UTI Long Beach, Learn to Negotiate Pre and Post Scans . . . 44 Antonelli - Techs of Tomorrow: Student Says He’s “Fascinated by Everything” in Auto Body Program . . . . . . . . . . . . . . . . . 53 Attanasio - Air Force Veteran Credits WyoTech for his Success at Son of a Fink Kustoms. . 58 Attanasio - Are You Gearing Up for Voice Search? . . . . . . . . . . . . . . . . . . . . . 41 “Phillips - How a PA Shop Delivers Excellent Customer Service & Receives Top Reviews” . . . . . . . . . . . . . . . . . . . . . . . . . 54 Phillips - Jobbers Focus on Value-Added Services for Collision Repair Facilities . . . . 52 Phillips - Smith Brothers Focus on Exceptional Customer Service While Dividing Time among Three Locations . . . . . . . . . . . . . . 46 Sisk - Snapsheet President: Photo-Based Estimating, Claims are the New Way for Carriers. . . . . . . . . . . . . . . . . . . . . . . . 42 Yoswick - Retro News: Talk of Other Insurers Requiring use of PartsTrader Goes Back Five Years. . . . . . . . . . . . . . . . . . . . . . . . . 36 NATIONAL ACA: ‘No’ to Transition Period for Border Adjustment Tax. . . . . . . . . . . . . . . . . . . . . 22 Advance Auto Parts Cuts 475 Jobs as Sales Decline . . . . . . . . . . . . . . . . . . . . . . 63 Auto Care Careers Now Offers Job Posting
Packages . . . . . . . . . . . . . . . . . . . . . . . . . 41 Automotive Students Receive 3M Scholarships . . . . . . . . . . . . . . . . . . . . . . 67 BASF Invests $40 Million in Automotive Coatings in North America . . . . . . . . . . . . 64 BASF Sponsors 53rd Annual SkillsUSA, 44th WorldSkills Competitions . . . . . . . . . . . . . 12 BASF’s VisionPLUS Performance Groups Approved for I-CAR Platinum Credit Points. . 30 Bill Pierce is our New Digital Marketing Manager . . . . . . . . . . . . . . . . . . . . . . . . . 33 CARCO Announces the Launch of SafeRIDE Certified . . . . . . . . . . . . . . . . . . 50 CARSTAR 76 Helps Local Youth Group Raise Money for Youth in Malawi, Africa. . . . . . . . 6 Certified Collision Group™ Appoints Martin Evans as VP . . . . . . . . . . . . . . . . . 29 Chief® Heavy-Duty Rivet Gun Makes Easier Work of Truck Cab Repairs. . . . . . . 62 CIECA Uses Scans in BMS Starting June 19 . . 64 Coil Replacement: When to Replace Mini-Ductor® Induction Heating Coils . . . . 64 Dealers See Growth for NIADA Convention and Expo . . . . . . . . . . . . . . . . . . . . . . . . . 63 DIY Repair in Florida Results in Fatal Airbag Explosion, “Alpha” Inflators are Most Dangerous Type . . . . . . . . . . . . . . . . . . . . 30 Hawaii Body Shops and Their Customers Handicapped by Insurance Issues. . . . . . . 24 IAR 2017 Summer Outing Updates Over 100 Recyclers on Industry Trends . . . . . . . 9 KPMG Report: Autonomous Vehicles Could Reduce the Insurance Sector by 71% by 2050. . . . . . . . . . . . . . . . . . . . . 4 Legalizing Recreational Marijuana Is Linked to Increased Crashes . . . . . . . . . . . . . . . . 56 Michael Linnerooth Named US Subsidiary Business Director for 3M AAD . . . . . . . . . 57 Mitchell 1 to Lead Training Sessions at NACE Automechanika Chicago 2017 . . . . 17 Nicholas Schoolcraft Replaces his Father at Phoenix Solutions Group. . . . . . . . . . . . 65 Polyvance Demonstrates Nitrogen Plastic Welding at SkillsUSA Competition . . . . . . . 65 PPG Announces Video of OEM Panel Session . 64 PPG Launches PaintManager® XI Software . . 53 Property/Casualty Insurance Industry’s Net Income Drops 42.2 Percent in First-Quarter 2017 . . . . . . . . . . . . . . . . . . . 3 Rochelle Beckel is Online Editor at Autobody News . . . . . . . . . . . . . . . . . . . . 33 Service King Welcomes 34 Technicians to Rapidly Growing Apprenticeship Program. . 62 Sherwin-Williams Ecolean™ Level 2 Workshop Scheduled for Chicago . . . . . . . . . . . . . . . 66 Snap-on Introduces ETHOS Edge . . . . . . . . . 60 Spectra Premium is First Radiator Supplier to Join CAPA . . . . . . . . . . . . . . . . . . . . . . 62 Takata Airbag Recall Expands by 2.7M More Vehicles, Ca2SO4 Desiccant is Now Suspect in Certain Inflators. . . . . . . . . . . . . 1 Takata Bankruptcy Benefits Automakers, Not Victims, Lawyers Say. . . . . . . . . . . . . . 4 U.S. House Committee on Energy and Commerce Considers Self-Driving Vehicle Legislation . . . . . . . . . . . . . . . . . . . 4 Volvo Cars to Go All Electric . . . . . . . . . . . . . 66 WIN Complies with Members’ Requests for Regional Events . . . . . . . . . . . . . . . . . 66 Women’s Industry Network to Host Educational Webinar Featuring Mike Jones . . . . . . . . . 61
According to reports by Verisk Analytics, Inc., The private U.S. property/casualty insurance industry saw its net income after taxes drop to $7.7 billion in first-quarter 2017 from $13.4 billion in first-quarter 2016-a 42.2 percent decline-and its overall profitability as measured by its annualized rate of return on average policyholders’ surplus fall to 4.4 percent from 7.9 percent, according to ISO, a Verisk Analytics (Nasdaq:VRSK) business, and the Property Casualty Insurers Association of America (PCI). The industry experienced $7.3 billion in direct catastrophe lossesthe highest first-quarter catastrophe losses since the 1994 Northridge earthquake and $2.3 billion above
the direct catastrophe losses for firstquarter 2016. Insurers’ combined ratio deteriorated to 99.6 percent for first-quarter 2017 from 97.4 percent for first-quarter 2016. Insurers also saw some improvement from a year earlier. Net written premium growth accelerated to 4.0 percent for first-quarter 2017 from 3.2 percent for firstquarter 2016. Net investment gains[1] increased by $1.2 billion to $14.4 billion in first-quarter 2017 from $13.2 billion for firstquarter 2016. The industry’s surplus[2] reached a new all-time high value of $709.0 billion as of March 31, 2017, increasing $8.1 billion from $700.9 billion as of December 31, 2016.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel
Audi Wholesale Parts Dealers . . . . 56 Axalta Coating Systems . . . . . . . . . . 5 Bettenhausen Automotive . . . . . . . 15 Blue Springs Ford . . . . . . . . . . . . . . 33 BMW Wholesale Parts Dealers . . . . 60 Bob Hook Chevrolet . . . . . . . . . . . . 57 Borton Volvo . . . . . . . . . . . . . . . . . . 42 CarcoonAmerica Airflow Systems . 28 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 11 Charles Gabus Ford . . . . . . . . . . . . 47 ChemSpec USA, LLC . . . . . . . . . . . 10 Classic Chevrolet . . . . . . . . . . . . . . 37 Classifieds. . . . . . . . . . . . . . . . . . . . 66 Courtesy Subaru. . . . . . . . . . . . . . . 61 Dent Magic Tools . . . . . . . . . . . . . . 12 Dominion Sure Seal . . . . . . . . . . . . 23 ECS Automotive Concepts . . . . . . . 36 Equalizer Industries, Inc. . . . . . . . . . 9 Erhard BMW of Bloomfield Hills . . . 49 Erhard BMW of Farmington Hills . . 49 Ganley Westside Hyundai . . . . . . . 44 Ganley Westside Subaru . . . . . . . . 51 GM Wholesale Parts Dealers . . . . . 55 Griffin Automotive Group . . . . . . . . 17 GYS Welding USA. . . . . . . . . . . . . . 18 Herkules Equipment Corporation. . 30 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 34-35 Hyundai Wholesale Parts Dealers. . 58 Infiniti of Naperville . . . . . . . . . . . . . 44 Insta Finish Car Care . . . . . . . . . . . 25 Jack Phelan Chrysler-Dodge-JeepRam of Countryside . . . . . . . . . . 19 Jake Sweeney Chevrolet . . . . . . . . 52 Kelly BMW . . . . . . . . . . . . . . . . . . . . 46 Kia of Des Moines . . . . . . . . . . . . . . 47
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. ©2017 Adamantine Media LLC. Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
Midwest
REGIONAL (Not) Hot Wheels Feds Say Thief Left Cars, Took Bins . . . . . . . . . . . . . . . . . . . . . . . . . 15 1958 Chevrolet Impala from “American Graffiti” on Road with Axalta . . . . . . . . . . . . . . . . . . 8 80-Plus Jobs Being Cut at Northern Indiana Auto-Parts Plant . . . . . . . . . . . . . . . . . . . . 12 AASP-MN to Host “Night Out with the St. Paul Saints” . . . . . . . . . . . . . . . . . . . . 17 ASA Midwest Hosts Annual Tailgate, SOS Kickoff . . . . . . . . . . . . . . . . . . . . . . . 10 Chip Foose at the 3M D.E.M.O Trailer at 2017 NACE Automechanika Show . . . . . . 16 Dave’s Auto Body of Lakeville MA at 40 Yrs. . 64 GFS Featured at 2017 SkilksUSA National Competition in KY. . . . . . . . . . . . . . . . . . . . 8 Griffin’s New Parts Warehouse Offers Customers Convenience of Ordering from the “Big Three”. . . . . . . . . . . . . . . . . . 6 Hail Damage from Storm that Insurers Now Call a Catastrophe Could Top $80 Million . . 1 MN Commerce Department Fines Two Insurance Companies for Failure to Settle Claims . . . . . . . . . . . . . . . . . . . . . . . 1 Nagy’s Collision Centers in River Styx, OH, welcomes Nick Lopiccolo. . . . . . . . . . . . . 16 Ohio Budget Amendment Would Remove Consumer Protections . . . . . . . . . . . . . . . 10 PNC Riverarch Capital Acquires Painters Supply & Equipment Co’s 21 Midwest Locations . . . . . . . . . . . . . . . . . . . . . . . . . 15 Springfield Woman Gets Two Years for Embezzling from Auto Body Shop . . . . . . . 12 State Muskegon Auto Shop Operating Illegally; Customers Entitled to Refund . . . . . . . . . . 15 Thieves Make off With Body Shop’s Trailer and $200,000 in Tools . . . . . . . . . . . . . . . 63
Property/Casualty Insurance Industry’s Net Income Drops 42.2 Percent in First-Quarter 2017
Index of Advertisers
Contents
Kia Wholesale Parts Dealers. . . . . . 59 Killer Tools & Equipment. . . . . . . . . 27 Laurel Auto Group of Westmont . . . 43 Luther Bloomington Acura-Subaru. 40 Luther Hopkins Honda . . . . . . . . . . 50 Maplewood Toyota-Scion . . . . . . . . 45 Matrix Automotive Finishes. . . . . . . . 7 Mazda Wholesale Parts Dealers . . . 64 Midwest Parts Group . . . . . . . . . 20-21 MINI Wholesale Parts Dealers . . . . 62 MOPAR Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 38-39 Morrison’s Auto Parts . . . . . . . . . . . 26 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 63 Polyvance . . . . . . . . . . . . . . . . . . . . 14 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Promax America, LLC . . . . . . . . . . . . 8 Richfield-Bloomington Honda . . . . 48 Robaina Industries, Inc . . . . . . . . . . 31 Russ Darrow Automotive Group. . . 41 SATA Dan-Am Company . . . . . . . . 13 Sorbothane . . . . . . . . . . . . . . . . . . . . 6 Spanesi Americas . . . . . . . . . . . . . . 29 Subaru Wholesale Parts Dealers . . 65 The Sharpe Collection of Automobiles . . . . . . . . . . . . . . . . 32 Toyota of Des Moines . . . . . . . . . . . 47 Toyota Wholesale Parts Dealers . . . 62 VanDevere Kia-GM . . . . . . . . . . . . . 53 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 54 Wesch Tools . . . . . . . . . . . . . . . . . . 24 Wizards Products . . . . . . . . . . . . . . 16 Yellow Jacket . . . . . . . . . . . . . . . . . 22 Zimmer Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 68
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 3
KPMG Report: Autonomous Vehicles Could Reduce the Insurance Sector by 71% by 2050 Autonomous vehicle technology could shrink the auto insurance sector by 71 percent or $137 billion by 2050, according to new research by KPMG. The white paper report titled The Chaotic Middle: The Autonomous Vehicle and Disruption in Automobile Insurance reads, in part: Since our initial white paper in October 2015, Marketplace of change: automobile insurance in the era of autonomous vehicles, we now believe that the traditional personal automobile insurance marketplace has the potential to be even more severely disrupted by new competition and shifts to other types of insurance coverage. The move to new business models will not be smooth and we anticipate a “chaotic middle” of a decade or more as companies adjust their strategies and operations. “Our new study synthesizes our latest research and thinking and covers four underlying themes: ►Alignment for mass autonomy: Acceleration of the pace of change ►The triad of disruptors for auto insurance ►Perfect storm: Modeling the potential impact ►Chaotic middle: Dual challenge facing insurers
KPMG has extended its actuarial model by 10 years to 2050, finding that the pace of change has accelerated, pushing projections that illustrate greater declines to the insurance sector than KPMG’s previous 2015 study. It also shows an increasing need for new types of insurance products. “Insurance companies will have to
make important strategic and tactical changes sooner than anticipated to navigate through this turbulent transformation of the industry,” said Jerry Albright, principal in KPMG’s Actuarial and Insurance Risk practice. “New business models bring about a decade or so of a ‘chaotic middle’ as insurers adjust their strategies and operations as autonomous vehicle technologies significantly deplete the need for personal auto insurance.” Chris Nyce, principal in KPMG’s Actuarial and Insurance Risk practice, added, “Building the latest observations into our actuarial model affirms the projected long-term decline in the number of auto accidents overall, and the share of accident claims funded by personal auto policies will also contract. Partially offsetting this, average repair costs will continue to increase at a higher rate than overall inflation as new technologies in future cars become more expensive to repair.”
The Triad of Disruption in the Auto Insurance Industry Three major forces are disrupting the current, $247 billion premium, auto insurance marketplace: 1) Autonomous technology is making cars theoretically safer, leading to a potential 90 percent reduction in accident frequency by 2050. 2) Auto manufacturers (OEMs) will assume more of the driving risk and associated liability, and have new opportunities to provide insurance to car buyers, taking market share away from traditional insurers. KPMG estimates that by 2050 there will be a significant increase in products liability
U.S. House Committee on Energy and Commerce Considers Self-Driving Vehicle Legislation
The U.S. House Committee on Energy and Commerce held a hearing on a draft package of 14 driverless car bills on June 27. The hearing follows closely behind ASA’s Mechanical Operations Committee meeting with senior House Energy and Commerce staff June 14 to discuss several issues related to driverless cars and the potential impact on repair shops. Witnesses included: ● Mitch Bainwol, president and CEO, Alliance of Automobile Manufacturers ● John Bozzella, president and CEO, Global Automakers ● Tim Day, senior vice president,
Chamber Technology Engagement Center, U.S. Chamber of Commerce ● The Hon. David L. Strickland, counsel, Self-Driving Coalition for Safer Streets and Partner, Venable LLP ● Alan Morrison, Lerner Family associate dean for Public Interest and Public Service Law, The George Washington University Law School ● Will Wallace, policy analyst, Consumers Union ASA is reviewing the draft legislation and will make comments to the committee. To read the witness’s testimony or to view a recording of the hearing, please visit: TakingThe Hill.com.
4 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
insurance to 57% of total auto losses in order to cover the autonomous technology in vehicles, and a considerable decrease in personal auto insurance to 22% of total auto losses. 3) The rapid adoption of mobilityon-demand is quickly lessening need for personal auto coverage, with the use of fleets requiring commercial auto insurance. “Insurance companies are varied in their level of preparedness for this disruption and many have taken limited action to face this challenge,” said Joe Schneider, managing director at KPMG Corporate Finance LLC. “As a result, auto insurers may choose to branch out into home-related products, or other commercial coverage, to benefit from diversification.” A New Mix of Auto Insurance Coverage By 2024, the majority of travel within cities and surrounding suburbs is expected to be on-demand rather than
with a personal vehicle, and by 2035 it is expected to be the new normal in transportation. As a result, products liability coverage and other new types of insurance are expected to pay a greater share of claims resulting from roadway accidents. Cyber risk is a good example of a new type of risk associated with the era of driverless cars, and market participants are building new products to cover the potential hacking of autonomous vehicles.
Autonomous Capabilities on a Fast Track The auto insurance industry is further disrupted by the surge of “smart money” generated by a variety of sources including venture capital (VC) firms. “The infusion of capital is boosting the development of autonomous capabilities and related business models, thereby accelerating the pace at which highly automated vehicles will hit the market,” added Schneider.
Takata Bankruptcy Benefits Automakers, Not Victims, Lawyers Say
TK Holdings, the US business of Takata, filed for Chapter 11 bankruptcy due to tens of billions of dollars of liabilities from recalls and lawsuits over its air bags, along with 11 Mexican and US subsidiaries. Most of Takata’s obligations are owed to automakers for recalling and replacing millions of its air bags, and the Japanese supplier’s restructuring plan relies heavily on financial support from its customers. Some legal experts say the biggest worry for car companies caught in the fallout is playing out in a Delaware bankruptcy courtroom. People injured by the air bags, were appointed to their own official committee in the Japanese company’s US bankruptcy, giving them a powerful voice in the proceedings. This unusual committee, which includes people whose cars lost value due to the recall, will be pitted against Honda, Toyota, and other automakers. The OEMs have been trying to use the bankruptcy to limit their liability for installing the faulty air bags, said Kevin Dean, a Motley Rice attorney who represents injured drivers on the committee. Because the committee has official status, Takata must provide it with funds which can be used to investigate the automakers’ liability or to challenge financial assump-
tions. Without a committee, plaintiffs’ lawyers would typically have to pay for that themselves. “If I were a plaintiffs’ lawyer, this would be a golden goose for me,” said John Pottow, a professor at the University of Michigan Law School, of the appointment of the special committee. Takata, Honda, Toyota and General Motors declined to comment. Other carmakers did not return requests for comment. Bankruptcies typically only have one official creditors committee. In the Takata case, the committee of injured drivers will sit alongside another made up of suppliers and vendors, who are likely more interested in the future of the business than compensation disputes, according to bankruptcy attorneys who are not involved in the case. Both committees were appointed by the US Trustee’s Office, the arm of the Department of Justice that acts as a bankruptcy watchdog. Seventeen fatalities, including one confirmed last week, and at least 180 injuries have been tied to Takata’s air bags since at least 2009. Last week, the National Highway Traffic Safety Administration widened a global recall of the airbags, which regulators expect to ultimately cover 69 million cars and 125 million inflators. Most defective air bags have not been replaced.
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 5
Griffin’s New Parts Warehouse Offers Customers Convenience of Ordering from the “Big Three” In the southeastern part of Wisconsin, Griffin Automotive Group prides itself on being a one-stop shop for customers. The company currently operates four car dealerships, runs a collision center facility and service department at each location and recently expanded its parts warehouse to 80,000 square feet. “There are a handful of large wholesalers in the Wisconsin area that have their own facilities but we have parts for the Big Three in one location— General Motors, Ford Motor Company and Fiat Chrysler,” said Dean Renteria, the wholesale parts manager. The family-owned and operated business was established by Jack Griffin. In 1960, he opened Griffin Ford in Waukesha, Wisconsin. His son, Jim, who now owns the Griffin Automotive Group, purchased an Oldsmobile and Dodge dealership in 1997. When General Motors shut down the Oldsmobile line in 2004, the automotive group was without a GM franchise. Jim eventually acquired a Chrysler Jeep franchise in Milwaukee to combine with the Dodge franchise, which is now called Griffin’s Hub Chrysler Jeep Dodge RAM. In 2015, Jim purchased a Chevrolet franchise and this past year the company acquired a Ford Lincoln dealership in Fort Atkinson.
The company also set up a parts warehouse in 1995 that initially sold Ford parts. As the company grew over the years, so did the parts inventory and Griffin rented an additional building to house parts. In 2006, they combined the Chrysler warehouse and Ford warehouse together. Once the Chevrolet dealership
The warehouse sells a large inventory of parts for the Big Three—General Motors, Ford Motor Company and Fiat Chrysler—in one location
was purchased, they decided it was time to ramp up and expand the parts warehouse. While planning what it would include and how it would be built, Renteria said the team visited other facilities. “We toured a large wholesaler in Illinois to see their set up and a Chrysler parts distribution center in Milwaukee,” said Renteria. They also needed to pay close attention to the fire code and de-
CARSTAR 76 Helps Local Youth Group Raise Money for Youth in Malawi, Africa
CARSTAR 76 Collision in Grand Rapids, MI teamed up with the Frontline Bible Church Youth Group to hold a Car Wash Fundraiser on June 10. The money raised helped a youth group in Malawi, Africa. CARSTAR 76 provided the location, all the necessary supplies, and the “know-how” while Frontline provided the mission, the drive and the volunteers, youth and parents. Frontline Bible Church Youth Group made $1,000 with its car wash, which will support the Youth Group in Malawi. The Malawi Group is now starting its own “youth group supporting” car wash business following the success at CARSTAR 76. For more photos from the event,
visit the CARSTAR 76 Facebook page at https://www.facebook.com/ carstar76/. CARSTAR 76 offers its body shop and experience to area nonprofits so they can run successful fundraising car washes. It created a map of the facility noting traffic flow and wash stations, tickets that they can pre-sell, an SOP showing the number of volunteers at each station, the tools the nonprofits will need and the tasks they will perform. CARSTAR 76 offers to promote and pre-sell tickets if they would like Facebook posts they can share. For more information about CARSTAR 76, visit its website at https:// www.carstar.com/carstar76.
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6 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
sign accordingly. “It’s really about size constriction and trying to get as much inventory into the building as possible,” he said. In 2016, they broke ground on a 50,000-square-foot expansion and took occupancy of the building in early May. After three weeks of moving all parts into one location, Griffin Automotive recently opened the facility. “We now have a large inventory of all three lines here to satisfy the needs and take care of our customers,” said Renteria. In addition, he said they have special access to the entire catalog of Mopar parts as well as accessories for all manufacturers. “Our team either has it in stock or can order it quickly,” he said. They currently provide product to approximately three-quarters of the state and continue to expand. “We are in the growing phase right now, adding trucks as we go along,” said Renteria. The goal is to operate 30 vehicles on the road, which will cover the local area as well as travel twice a day to outlying areas. With the convenience of having all three lines in-house, Renteria said that the same truck will be able to bring customers all parts needed for a repair rather than having deliveries at
different times of the day and week. “We’re competitive on price, offer quick delivery for our customers and have a knowledgeable and experienced sales staff,” he said. Some of the Griffin employees have 40 years of experience. “We take pride in ensuring that we can handle our customers’ vehicle needs throughout the lifespan of owning their vehicles,” said Renteria. Griffin Ford was named Wisconsin’s #1 Ford Dealer for the past 10 years and Griffin’s Hub Chrysler Jeep Dodge RAM earned the title of Wisconsin’s #1 Chrysler and #1 Dodge dealer in 2016. Renteria said by having a dedicated parts department and easy ordering by phone, fax and through Collision Link, it enables customers to obtain the parts they need. “Part of being in a crash is to ensure that everyone is as safe as they can be and is going to get their car back properly repaired hopefully with factory OEM parts that we are able to supply,” said Renteria. “We are committed to providing superior customer satisfaction.” For more information and to order parts, call 262-542-8058 or 800-2422240; fax 262-542-6088 or 800-5473649; email orders@griffinparts.com or access Collision Link.
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 7
GFS Featured at 2017 SkilksUSA National Competition in KY
Global Finishing Solutions® (GFS) is proud to partner with SATA® and AkzoNobel, as well as numerous other donors, to provide SkillsUSA® with a second professional-grade finishing environment for the 53rd
1958 Chevrolet Impala from “American Graffiti” on Road with Axalta Axalta Coating Systems (NYSE: AXTA), a leading global supplier of liquid and powder coatings, partners with three-time NASCAR® Cup champion crew chief and 2018 NASCAR Hall of Fame inductee, Ray Evernham to display the beloved 1958 Chevrolet Impala from the movie, American Graffiti at se-
August 3-6, 2017. For Evernham, the 1958 Impala and the movie, American Graffiti, inspired his life-long passion for American car culture. After pursuing this iconic car for most of his adult life, Evernham finally acquired it from the gentleman who purchased the car directly from Lucasfilm after the movie
Skills USA trailers
annual National Leadership and Skills Conference. This years’ trailer joins a previous competition trailer that was supplied in 2011. The newest equipment supplied includes a custom, portable paint booth trailer for a total of 16 state-of-the-art spraying stalls which will be used for the SkillsUSA color matching competition.
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Iconic 1958 Chevrolet Impala from the film “American Graffiti” hits the road with Axalta this Summer
lect automotive shows this summer. The Impala is featured in Axalta’s exhibit space during the NHRA Hot Rod Reunion in Bowling Green, Kentucky on June 15-17, Goodguys Columbus in Columbus, Ohio on July 7-9, and NSRA Nationals in Louisville, Kentucky on
was produced in 1972. Upon arriving at his shop, it was clear the car needed work to protect it from deteriorating. Evernham and his team set out to preserve the car and restore it to the exact specifications as it appeared in the film. When it came time to restore
the most visible part of the car, the finish, Evernham turned to Axalta. With the help of Axalta’s color experts and Cromax® refinish products, the vehicle’s finish was completely restored to its original paint scheme, including the iconic hand-painted red striping. “The paint was more than 40 years old and hadn’t been maintained. If it was left unprotected for much longer, the car would have just been bare metal,” said Evernham. “My long-standing relationship with Axalta allowed me to call on the industry’s best paint experts to evaluate the car, get recommendations and subsequently, restore a vehicle that was originally coated in obsolete lacquer material. Axalta’s color match ability played a primary role in making the car look just as it did in the movie.” See the iconic car and learn more about Axalta’s products, services, and color matching tools for the refinish industry by visiting Axalta experts at the shows.
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IAR 2017 Summer Outing Updates Over 100 Recyclers on Industry Trends by Chasidy Rae Sisk
On June 9—10, the Iowa Automotive Recyclers (IAR) hosted its Annual Summer Outing at the Coralville Marriott Hotel and Conference Center in Coralville, IA. According to Sue Schauls, Executive Di-
ance Services, four educational seminars were offered. Will Velin from Assured Partners presented “Insurance Protection from Crime,” and “How Automotive Recyclers Can Become Invincible to Lawsuits and Save Thousands in Taxes” was discussed by Larry Oxham of the
Saturday evening’s BBQ dinner included dancing to a live band and general revelry
rector of IAR, “The Iowa Automotive Recyclers annual Summer Outing went well as usual. The IAR event draws a crowd of over 100 recyclers from 30+ salvage yards, some from out of state.” IAR’s 2017 Summer Outing commenced on Friday afternoon with a tour of the National Advanced Driving Simulator facility, followed by the opening of the event’s trade show exhibition. After breakfast in Saturday, sponsored by Professional Solutions Insur-
American Society for Asset Protection. Hollander shared a seminar on “eBay Selling,” while CarPart.com’s Teresa Colbert elaborated on the importance of “Teamwork Among Team Members.” From 11AM-12PM, IAR hosted a Recyclers Roundtable, and Schauls shares, “The era was a big topic at the Recycler’s Roundtable event during the conference. With media and marketing experts telling everyone millennials buying preferences favor the environ-
mentally friendly product, we as auto recyclers, are left wondering how “the original recycler” got left out of that category. Much discussion centered on the need to make consumers aware that buying used auto parts saves money, supports buy local and puts the ECO back in economics of resource conservation through re-use. Used auto parts are good green business! The trade show reopened for two hours during lunch, and then attendees enjoyed a tour of the local Antique Car Museum, followed by a Yard Tour at Ace Automotive Recyclers in Iowa City. Saturday evening was filled with networking opportunities during IAR’s BBQ dinner and Scholarship Auction which preceded dancing and revelry with a live band. Schauls believes, “The event was enhanced, for the third year, by honoring one of our association founders. This year Bruce Chase, Sun Line, Inc., Cedar Rapids and Chase Auto Parts, Waterloo, was the honoree. Bruce regaled the crowd with a speech that can only be described as an auto recycling stand-up routine! Bruce drove home the point that auto recycling has changed every year, year over year, and so the pace of keeping up with this industry is mind boggling and compares only to the pace of the changes seen in automotive tech-
nology itself. As Lloyd Van Horn, the 2016 honoree, noted ‘No one envies the auto recycler in this era!’”
Association Past President Bruce Chase was honored during Saturday’s lunch
IAR hosts its Annual Summer Outing to provide association members and other nearby automotive recyclers with educational and networking opportunities. Schauls explains, “Local events are important for many members who do not attend national conventions or training opportunities. Plus, nothing beats the networking and sharing of wisdom than a face-to-face meeting of peers.” For more information about IAR, visit www.iowaautomotiverecyclers .com.
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 9
ASA Midwest Hosts Annual Tailgate, SOS Kickoff by Chasidy Rae Sisk
In recent months, ASA Midwest has been busy pursuing their goal of advancing professionalism and excellence in the automotive repair industry. In June, the association held its Annual Tailgate event, after expanding its SOS program in May when they kicked off the first meeting for the Central MO chapter. On Saturday, June 3, ASA Midwest held their Annual Royals Tailgate event, sponsored by Advance Auto Parts, and over 50 attendees indulged in food, frozen margaritas, music, games and networking before watching the Royals defeat the Cleveland Indians with a score of 12 to 5. ASA Midwest Executive Director Sheri Hamilton recounts, “Our members had a great time, and we owe a great big thank you to the Advance Auto Parts team members who worked the grills in the heat to keep attendees well-fed and entertained.” On Thursday, May 4, ASA Midwest kicked off the newest Shop Owner Support (SOS) Group with the Central MO Chapter, and the meeting was held at Midwest Autoworx in Columbia, MO. These SOS Groups allow ASA Midwest member shops to meet monthly to dis-
cuss important topics related to running successful businesses, and Hamilton attended the kickoff to share guidance and offer additional insights.
Over 50 ASA Midwest members and guests enjoyed tailgating before the Royals game. In May the Central MO Chapter held its first Shop Owner Support Group event, where association members discussed the challenges they face and how to best run successful businesses
Ohio Budget Amendment Would Remove Consumer Protections
An amendment proposed for the Ohio budget legislation would exempt insurers from providing notice to customers when non-OEM parts are used in a repair. If enacted, the repair shop would be held responsible for notifying the customer. As most auto insurers’ policies require the use of non-OEM or used parts during the repair of the vehicle, this measure would place an unfair burden of enforcing the insurer’s provisos on the repairer. ASA and ASA-Ohio oppose this amendment and encourage repairers to send a letter of opposition to their state legislators. To send a letter in opposition to the proposed amendment, visit: TakingTheHill.com, click “Alerts” and scroll down to Ohio.
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and collision repair professionals. ASA serves an international membership base that includes numerous state affiliate and chapter groups. ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. To take advantage of the many benefits of membership in ASA, please visit ASAshop.org or call (817) 514-2900. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA’s legislative website at Taking TheHill.com.
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James Copeland, owner of Midwest Autoworx, hosted the event for 12 local shop owners and led them through the discussion. DK Motors’ Devin Kel-
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10 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
ley was in attendance and provided his feedback: “I have to admit I was feeling a little unsure about the concept of an SOS group. We work so hard to develop our business models and want to protect the things that make them unique. Once I was explained the structure, flow and agenda of an SOS meeting, I quickly became more curious. I decided to take a leap of faith by joining and attending a meeting. Once around the familiar faces of our local chapter members, I was reminded that we all share similar values. ASA is serious about protecting personal financial information, and that was clearly expressed from the beginning of the meeting. Even though it was our chapter area’s first SOS meeting, it went very well. By the end of the meeting, I knew I had way more to gain from my peers than I realized. Now I am brainstorming ways to expose aspects of my business that may be valuable to others. This is a valuable opportunity!” A different area shop hosts each monthly event which includes dinner and a shop tour. SOS opportunities are only available to association members with an attendance rate of at least 80%. For more information about ASA Midwest’s SOS events, contact the association at 816-781-5801.
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 11
BASF Sponsors 53rd Annual SkillsUSA, 44th WorldSkills Competitions BASF recently sponsored the 53rd annual SkillsUSA, a national competition for career and technical education students, held this year in Louisville, Ken-
level as well, supplying judges and supporting schools that attend and host competitions across the country and throughout the year.
Students are lined-up and ready to start testing their painting skills at SkillsUSA
tucky. In addition, Glasurit, BASF’s premium paint brand, will be the official sponsor for the 44th global competition, WorldSkills, which will be held in Abu Dhabi, UAE October 14-16, 2017. For SkillsUSA, BASF Refinish sponsored a new color-match trailer, used in the color-match competition for the first time. BASF also supported many BASF representatives who helped judge the painting competitions. BASF Refinish supports SkillsUSA on a local
“I started working with Guilford Technical Communication College (GTCC) my first week at BASF in May 1989,” said BASF Account Representative, Ricky Hale. “It’s the best feeling to see how excited the students are when they arrive at the competition. This is a way to give back to the business I love.” In April, BASF sponsored the North Carolina state competition held at GTCC and Hale, along with other representatives from BASF and their
single-line ColorSource distributor, Fairystone Imports, ran the Automotive Refinishing Technology contest. As the sponsor for the Car Painting category at WorldSkills, the young painters in the competition will be spraying Glasurit refinish products. Their tasks will include restoring the surface of a damaged vehicle and finding the matching colors — including shades and effects — while considering safety and protection of the environment. “BASF is invested in the development of the quality of automotive refinish training, encouraging young talent to join in the skilled trades and pushing our industry into the future with the highest quality products, people, education and technology,” said Marvin Gillfillan, Vice President BASF Refinish Coatings NA. “From the local level to the international level, BASF Refinish is looking to bring more young talent into the industry,” said Jeff Wildman, BASF Refinish NA, OEM and Industry Relations Manager. “Having representatives available for these students to ask questions and recruit is invaluable to us as an organization, to our customers and to our industry, along with the students looking for opportunities.”
Springfield Woman Gets Two Years for Embezzling from Auto Body Shop
federal indictment, handed down in November 2015, accused Eddington A 54-year-old Springfield woman of using company money to pay for has been sentenced to more than her personal debts and expenses and two years in federal prison for em- to fund vacations, shopping trips and bezzling in excess of $500,000 major home improvements. from a Springfield auto In March, she pleaded repair business where she guilty to three counts of worked, the U.S. Attormail fraud related to the ney’s Office announced. embezzlement. After comElaine Eddington of pleting the prison term, Edthe 1100 block of North dington will remain on Hill Street was sentenced supervised release for three July 7 to two years and years, the U.S. Attorney’s three months in prison and Office said. ordered to pay $505,834 in Elaine Eddington. Assistant U.S. Attorney Sangamon County restitution. Bryan Freres prosecuted Jail photo Eddington was an ofthe case. The investigation fice assistant who paid the bills and was conducted by the Sangamon balanced the company checkbook at County Sheriff’s Office, FBI, InterKim’s Auto Body, 312 W. North St. nal Revenue Service and U.S. Postal in Springfield, from 2009 to 2014. A Inspection Service. by Staff report, The State Journal - Register
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80-Plus Jobs Being Cut at Northern Indiana Auto-Parts Plant
More than 80 workers will soon be laid off from a northern Indiana auto-parts factory for its second large round of job cuts in the past two years. Carter Fuel Systems says it plans to lay off 82 hourly workers and an undetermined number of salaried employees from its Logansport factory starting in late August. The (Logansport) Pharos-Tribune reports (http://bit.ly/2t3eOnE) the fuel pump assembly plant now has 260 total workers. The company says the job cuts are meant “to better meet the current business climate” but declined to elaborate. More than 100 jobs were cut in 2015 at the factory, which was sold off by Federal Mogul in 2013.
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(Not) Hot Wheels Feds Say Thief Left Cars, Took Bins
State Muskegon Auto Shop Operating Illegally; Customers Entitled to Refund
“As this is part of an active crim- not own the crates and had not obinal investigation it would be inap- tained them lawfully from (FCA) and Fiat Chrysler Automobiles has two of propriate for FCA US to comment or was not entitled to sell them,” the inthe most-stolen cars in the country, provide details on this matter at this dictment reads. but one alleged thief scored a multi- time,” company spokesman Michael Prosecutors want Hall to forfeit million-dollar payday by bypassing Palese wrote in an email. “In general, a $200,000 house on Shadylane the automaker’s fleet. FCA will seek to have Instead, a Farmington any party in wrongful Hills truck driver swiped the possession of our conplastic — more than $2 miltainers held civilly and lion worth of plastic crates criminally responsible.” and bins owned by FCA — Hall’s lawyer deand turned the buckets into clined comment. cash, federal prosecutors The alleged crime said Thursday. dates to May 2012 and Arshawn Hall Federal court records lasted 10 months, prosCredit: Michigan chronicle an unusual and luecutors said. Department of crative theft from one of The alleged crime spree Corrections Detroit’s Big Three auinvolved Hall picking up Federal prosecutors want Arshawn Hall to forfeit tomakers that allegedly netted con- FCA’s plastic bins used to trans- a $200,000 Farmington Hills home victed felon Arshawn Hall $460,000 port automobile parts at a logistics — enough cash to buy five Dodge company on Detroit’s west side, ac- Drive that allegedly was bought with Vipers. cording to court records. money generated from selling the auHall blew some of the cash on a Hall hauled the bins to a recycling tomaker’s bins, according to the inhouse, according to an eight-page in- company in Wixom and sold them for dictment. dictment unsealed Thursday in fed- $460,000, prosecutors said. eral court. Hall, whose criminal record inThe 51-year-old Farmington Hills cludes a 2014 larceny conviction, alFOLLOW US ON man was arraigned Thursday in federal legedly lied to the recycling company, court on wire fraud and other charges saying he owned the bins and had ob: that could send him to prison for up to tained them legally, according to an 20 years. He was released on $10,000 indictment. unsecured bond. “As he very well knew, Hall did by Robert Snell , The Detroit News
by Andrew Krietz, WZZM 13 Grand Rapids, MI
Customers of a Muskegon auto body shop are being asked to give the state a call following allegations of a lapsed registration. The office of Michigan Secretary of State Ruth Johnson issued a cease and desist order June 30 against G & M Auto, located at 1272 Getty St., for performing work on vehicles after its registration with the state expired, according to a news release. Even as state officials say they made two inspections thereafter, employees continued to make repairs. The business never operated without a license, according to a spokesperson. Customers are entitled to a refund of any amount paid to an unregistered facility for work performed to their vehicles. People with complaints can call the Office of Investigative Services Automotive Complaint Line at 517-335-1410. The cease and desist notice against G & M Auto prohibits it from continuing operation until it gains back its license. “Repair facilities must comply with the law,” Johnson said in the release. “If they do not, we will take action to bring them into compliance to protect consumers.”
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PNC Riverarch Capital Acquires Painters Supply & Equipment Co’s 21 Midwest Locations PNC Riverarch Capital announced the acquisition of Painters Supply & Equipment Co. (“PSE”), a leading distributor of automotive, industrial, and architectural coatings in the United States. Founded in 1952 and headquartered in Taylor, MI, PSE has grown to 21 branch locations across Michigan, Ohio, and Indiana. PSE serves more than 4,000 customers, including collision repair shops, auto dealerships, fleet operators, and various other commercial and industrial accounts. PSE is a PPG Platinum Distributor and maintains strong market share across its footprint. “Today marks an exciting new day for the future of Painters Supply & Equipment Co.,” said Patrick Mayette, CEO of PSE. “I am excited to partner with PNC Riverarch
Capital to accelerate the growth of our business. We will continue to deliver the highest quality products, superior service, and value added programs to our customers. We are excited for the company’s next phase of growth.” “PSE’s close partnership with PPG and strong customer value proposition have generated an impressive track record of growth,” said a spokesman. “We were particularly attracted to the company’s talented management team, highly attractive business model, and strong customer relationships.” “We look forward to partnering with the PSE team to continue to build the best distributor of automotive, industrial and architectural coatings and associated products in the United States,” said a spokesman.
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Chip Foose at the 3M D.E.M.O Trailer at 2017 NACE Automechanika Show For 2017, 3M Automotive Aftermarket Division returns to exhibit at the NACE Automechanika Show with a full lineup of appearances by automotive designer Chip Foose,
ing. Featured product systems include the 3M™ Accuspray™ Spray Gun System with PPS™, the new Total Automotive Sanding System, 3M™ Cubitron II™ abrasives, 3M™ Dynamic Mixing System, advanced 3M power tools and more. At NACE Automechanika, 3M AAD will showcase:
New Product Solutions ● 3M Collision Mobile App for collision repair professionals
technical presentations, product demonstrations and new product in- ● Total Automotive Sanding System troductions. 3M AAD will showcase with the long lasting Cubitron ™ II its new 3M Demonstration and Edu- abrasives cation Mobile Operations trailer, located at booth #1129 in the NACE ● 3M AAD Power Tools with the Automechanika Spray Zone Pavil- power of Cubitron™ II cutting and ion. grinding products The 3M D.E.M.O. trailer gives customers the Celebrity Appearances opportunity to try out 3M’s Chip Foose will appear at industry leading tools and the 3M D.E.M.O trailer product solutions. On locathroughout NACE to sign tion, the D.E.M.O. unit exautographs and conduct pands into five different product demonstrations at live workstations, including the following times: Chip Foose body repair solutions, adhefile photo sives, coatings & sealers, » Wednesday paint prep, painting and paint finish- Noon to 1:30 p.m., 3 p.m. to 5 p.m.
16 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
» Thursday Noon to 1:30 p.m., 3 p.m. to 5 p.m. » Friday 1 p.m. to 2:30 p.m.
Technical Presentations 3M AAD technical experts will present critical issues and solutions for the collision repair industry, including
» Friday – 8 a.m., Bonding Practices and Solutions for Heavy Duty Trucking with John Spoto, National Heavy Duty Truck/Commercial Fleet Manager
» Friday – 10 a.m., Would Your Shop Pass a QC Inspection with Shawn Collins, Senior Technical Service Engineer
To arrange interviews or for additional information, please contact Deborah Robinson at drobinson@vmg1.com or 312-505-4336.
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Nagy’s Collision Centers in River Styx, OH, Welcomes Nick Lopiccolo
Nagy’s Collision Centers, located in River Styx welcomes Nick Lopiccolo as Location Manager. Nick has 27 years of experience in the collision repair industry where he has worked in Ohio as well Nick Lopiccolo as the sunshine state. Nick resides in Avon with his wife Sharon. Nagy’s Collision Centers has locations in Ashland, Doylestown, Green, Hartville, Orrville, Millersburg, Wadsworth & Wooster. Nagy’s offers services unlike others in the area such as Carwise, an online viewing of your repairs being completed and e-Estimates so you can get an Estimate without leaving your home or office. Nagy’s Collision Centers mission is to repair vehicles back to pre-loss condition efficiently, effectively and with the highest quality, while maintaining a strong moral integrity. For more information about Nagy’s Collision Centers visit www.nagys.com or call (330) 334-1149.
Mitchell 1 to Lead Training Sessions at NACE Automechanika Chicago 2017 Three members of the Mitchell 1 team will be joining the lineup of industry leaders presenting training sessions in the extensive education program at the NACE Automechanika Chicago trade show taking place July 26-29, 2017 in Chicago, Illinois.
“We’re looking forward to taking part in NACE Automechanika Chicago this summer as it will give us another opportunity to interact with automotive technicians and shop owners to pro-
vide tips and information to help them reach their customers, improve their diagnostic strategy and prepare for future technologies,” said Nick DiVerde, director of marketing, Mitchell 1. Each of the following three ses-
sions will be presented twice during the conference: ► Using Social Media and Other Tools to Improve Communication with Customers Before, During and After Their Service—In this session, Marcus Mackell, market manager for the Mitchell 1 SocialCRM auto shop marketing product line, will focus on multiple communication strategies such as automated email communication, consumer reviews, reporting and online reputation management to help attendees both retain customers and attract new ones. The session will be offered Thursday, July 27 at 8 a.m. and Friday, July 28 at 8 a.m. ► Integrating Repair Information into your Diagnostic Strategy— Mike Alberry, Mitchell 1 product manager, and Jim Moritz, Snap-on national sales and training support representative, will show attendees how to use auto repair information systems, such as Mitchell 1’s ProDemand, to improve their diagnostic strategy. Attendees will get tips that will help them diagnose and repair vehicles faster and more confidently, while maximizing their repair information subscriptions in conjunction with
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their handheld diagnostic platforms. The session will be offered Friday, July 28 at 8 a.m. and Saturday, July 29 at 1 p.m. ► What You Need to Know About Telematics and Emerging Vehicle Technology—Ben Johnson, director of product management for Mitchell 1, will give an overview of the industry and speak on related topics as he explores the technologies being developed and released across the globe. He will cover current and future technologies that vehicle manufacturers are investing in, such as the connected car and the autonomous vehicle, key drivers for those technologies, and which technologies are gaining the most traction. The session will be offered Friday, July 28 at 4 p.m. and Saturday, July 29 at 1 p.m. A complete schedule of speaker sessions is available online at www .AutomechanikaChicago.com. When registering for any of the NACE Automechanika training sessions, enter the Mitchell 1 promo code PMIT2017 to receive free training. For more information about Mitchell 1, visit www.mitchell1.com, call (888) 724-6742, or locate an independent sales consultant at www .mitchellrep.com.
AASP-MN to Host “Night Out with the St. Paul Saints”
The Alliance of Automotive Service Providers - Minnesota (AASPMN) is pleased to announce it will host “A Night Out with the Saints” again this year. “The last couple of years have been so well attended and so much fun, we had to do it again!” said Executive Director Judell Anderson. The game is at 7:05 p.m., Wednesday, August 23, at CHS Field and will feature the St. Paul Saints vs. the Wichita Wingnuts. Prior to the game, AASP-MN member, Carl Thomas, of Lancer Service Auto Care, St. Paul, will host a tailgate party for those that attend. “This event is a great way to get AASP-MN members, their employees and families together in a fun and relaxing setting,” said Anderson. “I’m sure it will be another big hit!” For additional information, contact the AASP-MN office at (612) 623-1110 or 800-852-9071 or visit www.aaspmn.org.
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Continued from Cover
Hail Damage
dance of home and vehicle inspections, repair estimates, contractor bids, deductibles and neighborhood disruption aimed at returning things to prestorm condition.
The math for this catastrophe: So far, 6,370 State Farm Insurance clients have claimed damage from the storm—4,550 of them for vehicles and most of the rest for roofing. State Farm covers about one-fourth of the vehicles and houses in the state, so the total number of claims could reach 25,000. If auto claims average $2,500 apiece and roofing claims average $5,000, as some industry groups estimate, that’s more than $80 million in damage. Most of the hail fell in two swaths of the metro area, one starting in Irvington and spreading east through the Keystone, Benson, Country Club and Dundee neighborhoods, and the other farther south, from about 180th and West Center Road toward Offutt Air Force Base. Among those with hail damage to vehicles in that southern stretch is Travis Dingman, whose family owns Dingman Collision Centers. “I stood in the garage and watched it get pelted,” Dingman said. “It got some pretty big dents.” So far he hasn’t scheduled an appointment for his SUV, although others are coming to the Dingman locations to have dents smoothed out or body panels replaced. Most of the broken glass has been replaced by auto glass shops, and now the body work is underway, with thousands of cars in the city due to seek repairs. “The customers are showing up with their insurance estimates,” Dingman said. The insurance and repair work is moving quickly with cars. Replacing windshields and other vehicle glass is a top priority to prevent water damage, said Brice Huddleston, who heads a 40-person State Farm catastrophe team in Omaha. The drive-thru office at 8614 Giles Road is writing about 160 claim checks a day. Geico spokesman Rich Johnson said most of the clients’ 2,000 claims from that week’s storm— in Nebraska, Iowa and Illinois — were for damage considered “low- to mid-severity.” In the category of ill wind blowing some good, Mike Durkin, general manager of Woodhouse Ford at 3633
N. 72nd St., said the dents and broken windows for the dealership’s 400 new vehicles and 100 used vehicles — none of them total losses — mean bargains. “It was the right level of damage to pass along really good savings and still have a good vehicle,” Durkin said. After appraisals, Woodhouse sets
Dick Seitz’s Honda CR-V is among the thousands of vehicles damaged in the June 29 hailstorm. Seitz took his vehicle to a drive-thru insurance claims office in La Vista
a price on each car and truck, he said. About 50 have been sold so far. “Some people are willing to take it like that, and some want to have work done on it,” he said. For example, a Ford Focus with hail damage that usually sells for $16,145 is now priced at $10,990. Most repair work hasn’t started on homes yet because homeowners and insurance companies are still in the claims stage. The hail likely damaged thousands of Omaha roofs, but often not siding or windows, said Jamie Pflug, who started Lastime Exteriors with his brothers, Tom and Tony, in Omaha 21 years ago. “It came down straighter than normal,” Pflug said, with hailstones big enough to damage standard asphalt shingles and even pound holes in the tougher asbestos shingles found on some of the older homes in the area. He cautioned against hiring “storm chaser” contractors, suggesting that people check out reviews posted on websites and hire established local companies. Knocking on doors and leaving flyers that offer free inspections don’t mean a company is fly-by-night, said Deb Drumheller, restoration office manager for Crafts Construction of Norfolk, Nebraska. The company, owned by Tyler Wingate, has been in residential and commercial construction for 50 years. Crafts began storm repair work a few years ago and opened an Omaha office earlier this year after restoring some homes in the 80th Street and Hartman Avenue area in 2016. Visiting neighborhoods in person and offering free inspections, she said, “is a type of lead-generating service. It’s a way our salesmen get into the field,
18 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
get themselves known.” Crafts isn’t registered with the Better Business Bureau, she said. “We’ve built our reputation without having to use the Better Business Bureau,” she said. She said the company offers to “pre-inspect” for damage and then be present when the homeowner meets with the insurance adjuster to make sure that all the damage is noted and that the planned work will meet city codes. If there is insured damage, then the homeowner can decide whom to hire to make the repairs. “I’m not putting insurance companies down whatsoever,” she said. “But they’re human. They’re busy. They may overlook something.” Drumheller said the company urges homeowners to check out contractors’ credentials and get recommendations to avoid schemes that, for example, require paying money upfront. “We tell them ‘Go with people that you feel like you can trust,’ “ she said. “There’s a lot of scammers out there.” That’s true, said James Hegarty, president and CEO of the Omaha Better Business Bureau. Some out-of-town contractors may do good work, but others invariably cause problems after
damaging storms in the Omaha area. “Some took money upfront and didn’t do the work or did poor-quality work, or they were not available for warranty repairs,” Hegarty said. People should check online reviews and Better Business Bureau ratings from the company’s hometown, he said, and not hurry into contracts. Making temporary repairs to prevent further damage gives people time to check out contractors, he said. “We really believe that the best policy is to be patient and be absolutely certain you are dealing with a reputable firm,” Hegarty said. “It’s really important for people to do their research.” Still, “storm chaser” companies pose a challenge for local contractors who already have work scheduled for their existing clients, said Danny Thompson, who owns Window World in Omaha and Wichita, Kansas, with his brother, Bryce. “The out-of-towners kind of sweep in and undercut you on price sometimes,” Thompson said. “We’re not built to react that quickly. But we’re going to be here for you should anything go wrong down the road.” We thank Omaha World-Herald for reprint permission.
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Continued from Cover
MN Commerce Department
Casualty Insurance Company (owned by Farmers Insurance Group) was fined $20,000. The companies are also required to take corrective actions to ensure that claims are handled in compliance with Minnesota consumer protection laws. The Commerce Department investigation found significant compliance concerns with 41 of American Family’s third-party claims in 20142016 and seven of Bristol West’s third-party claims in 2015-2016. After the Commerce Department intervened, the companies re-opened and re-adjusted the claims. Under Minnesota law, an insurer or adjuster is not allowed to deny a liability claim because its insured driver has not cooperated, unless an independent evaluation of available evidence indicates there is no liability.
Auto Accident Insurance Tips for Consumers Rothman offers the following tips for Minnesotans after an auto accident occurs:
■ Remain calm. Check for injuries. If possible, move vehicles away from traffic.
■ Call 911 so there will be a police report of the accident.
■ Exchange information with the other driver. Get name and contact information, license plate number, insurance company name and policy number.
■ Get contact information and statements from any witnesses at the scene.
■ Take photos or video of the accident scene, including all damage to cars involved in the crash.
■ The National Association of Insurance Commissioners (NAIC) offers the free WreckCheck app. It will allow you to gather the necessary information to file a claim and to e-mail an accident report to yourself or your insurance company.
■ Notify your agent or insurance company about the accident as soon as possible. Do this even if you are not at fault. Also notify the other driver’s
22 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
insurer that you have been involved in a crash with one of its policyholders.
■ If you have collision or comprehensive coverage on your auto policy, it may be more convenient and faster to file the claim with your own insurer even if the accident was not your fault. Your insurance company should work with the other driver’s insurer to determine liability and, through subrogation, obtain reimbursement for the claim, including your deductible.
■ Do not have your car repaired until an insurance adjuster has inspected it and the insurer has authorized repairs. While the insurer can recommend a repair shop, you have the right to choose where you want your car repaired.
If you have a question or concern about your insurance, contact the Commerce Department’s Consumer Services Center by email at: consumer .protection@state.mn.us or by phone at 651-539-1600 or 800-657-3602 (Greater Minnesota).
www.autobodynews.com
ACA: ‘No’ to Transition Period for Border Adjustment Tax
The Auto Care Association (ACA) expressed its disappointment that U.S. House Ways and Means Committee Chairman Kevin Brady, R-Texas, proposed a five-year transition plan for the Border Adjustment Tax (BAT) that is intended to subdue BAT critics. The BAT, which would impose a new 20 percent tax on imported goods and services, would result in a $20 billion annual tax increase on automotive parts. “There is no tweaking, modification or transition period that will negate the harmful effects of the BAT tax,” said Bill Hanvey, ACA President and CEO. “No matter what [Chairman Brady] proposes, consumers will foot the bill and numerous family-owned businesses in the auto care industry will suffer catastrophic losses.” The ACA is part of Americans for Affordable Products, a national coalition opposing the BAT. The BAT would create higher auto repair costs and is estimated to cost the average American family $1,700 annually in higher prices on everyday consumer items. “This tax hike would burden middle class households who have seen their wages stagnate in recent years, while enabling profitable, multi-national corporations—to operate virtually tax-free,” said Hanvey.
‘Who Pays for What?’ Finds Improvement in Payment for Not Included Body Labor Operations “Who Pays for What?” survey finds improvement in payment for not-included body labor operations; latest survey on frame and mechanical operations is now open. More shops are now being paid “always” or “most of the time” for nearly two dozen not-included body labor operations compared to a year earlier, according to the latest findings from the “Who Pays for What?” quarterly survey series. Mike Anderson of Collision Advice, creator of the surveys, said that’s something he’s pleased about as the latest of the surveys, covering frame and mechanical labor operations, opens now through July 31. “Though many of the increases are slight, and within the margin-oferror for the survey, there are a number of procedures that have seen significant jumps,” Anderson said. “Clean-up of airbag residue is a good example, rising 9 percentage points since 2016.” Other procedures for which more shops are now reporting being paid “always” or “most of the time” include clean-up of old urethane (up more than 6 percentage points compared to 2016), application of weld-thru primer (up more than 8 percentage points), and duplication of OEM seam-sealer (up
6.6 percentage points). The current survey, conducted by CRASH Network and Collision Advice, asks shops about their billing practices – and insurers’ payment practices – regarding about two dozen “not included” frame and mechanical labor operations. Shops can take the survey before the end of July by clicking below: https://www.surveymonkey.com/r/Q3 DDCP3
Newly-released data from the “Who Pays for What?” body labor survey, completed this past April by a record 1,042 shops around the country, contained some other evidence indicating the surveys’ positive impact: Of the 20 “not-included” body labor operations covered in both the 2016 and 2017 surveys, 18 had a higher percentage of shops (compared to a year earlier) now negotiating to be paid for them. “If you don’t bill for it, you will never be paid for it, yet the biggest percentage of shops not billing for these procedures say they never thought of billing for them when they are required as part a repair,” Anderson said. “These surveys were designed to help raise that awareness.”
Each of the four different “Who Pays” surveys explores a different area of shop operations. The current survey focuses on “not-included” mechanical and frame labor operations, asking shops how frequently they are paid for each of the operations by each of the eight largest auto insurers in the country. The current survey also asks about frame and mechanical labor rates, payment practices related to “set-up and measure,” and billing practices for wheel alignments and air conditioning recharging. Survey participants will receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented.
Anderson said the survey, which will take about 15-30 minutes, should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online (https://www .crashnetwork.com/collisionadvice). Collision Advice (www.CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network (www .CrashNetwork.com) is a subscription newsletter offering news and information not available from other industry sources.
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Hawaii Body Shops and Their Customers Handicapped by Insurance Issues by Stacey Phillips
On the north side of the Big Island of Hawaii, in a quiet little town named Kamuela, Judith was at home watching a football game. She noticed her back door was open and soon realized her 2014 BMW X3 had been stolen from her garage. Two weeks later, police located and recovered the vehicle about 100 miles away on the opposite side of the island, in an area called Puna. Not only had it been driven approximately 2,000 miles, but the entire vehicle had been vandalized, the exterior had large dents and scratches, the seats and seat belts were cut, the tires were flat and there was graffiti throughout the interior. The vehicle was taken to a tow yard in Hilo where a GEICO auto damage appraiser told Judith the car was repairable for less than $8,000. “I went into a tirade,” said Judith, who is 76 years old. “I felt that there was no way
Matsumoto. “Rissa took me under her wing. She was just a blessing. She was so helpful,” Judith said. After the vehicle went through a thorough mapping and blueprinting process at Auto Body Hawaii, GEICO was again notified. The vehicle was re-
Excerpt of the Appraisal clause from Judith’s GEICO insurance policy: 6. Appraisal: If we and the insured do not agree on the amount of loss, either may, within 60 days after proof of loss if file, determine an appraisal of the loss. In that event, we and the insured will each se-
inspected by a third appraiser, who then determined it to be a total loss. The shop recommended that Judith reach out to Billy Walkowiak, CEO of Collision Safety Consultants. “We recognized that the owner needed someone who would be representing her best interest,” Rissa said. “With these kinds of situations,
lect a competent appraiser. The appraisers will select a competent and disinterested umpire. The appraisers will state separately the actual cash value and the amount of the loss. If they fail to agree, they will submit the dispute to the umpire. An award in writing of any two will determine the amount of the loss. We and the insured will each pay his chosen appraiser and will bear equally the other expenses of the appraisal and umpire. We will not waive our rights by any of our acts relating to appraisal.
“These body shops are getting beat up left and right, and there is nobody there to help them. It is happening all over the islands,” — Billy Walkowiak
“I call him the ‘Terminator’ because he is,” Judith said. “I knew I needed help because the car was a total. They never want to say it’s a total because they have to give the value of the car.” Walkowiak said GEICO’s licensed adjuster, Bill Harwood, the auto damage supervisor for GEICO’s Hawaii Claims Office – Outer Islands, told him he was the GEICO appraiser and wanted to use the evaluation from CCC to determine the value of the vehicle. Since they did not agree on the amount of the loss, the next step was choosing an umpire. Walkowiak provided three names. “He said the umpire has to be a licensed adjuster on the island,” Walkowiak said. “I had a copy of the policy and it doesn’t say the umpire has to be licensed and doesn’t say it has to be someone from Hawaii. The policy said a competent umpire.” Eventually, they agreed to use an independent appraiser recommended by GEICO who turned out to be located out of state. “Mr. Harwood recommended the See Hawaii Body Shops, Page 26
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that the vehicle could be repaired for the amount they suggested so I called the main office of GEICO and asked for another adjuster.” The vehicle was then towed to GEICO’s DRP shop and a second appraiser was assigned to re-inspect the car. Judith said she was informed once again that the car was repairable. “The car is worth over $50,000,” she said. “I said, ‘there is no way I’m accepting that.’” She called the local BMW dealership and they suggested contacting Auto Body Hawaii in Kona. Judith had her car towed to the shop, which is owned and operated by Dale and Rissa
your average consumer does not know what their rights really are or even know they actually have rights. We see it happening over and over on a daily basis. People need to read and understand their insurance policy.” Judith hired Walkowiak to help determine the actual cash value of the BMW. “Once it was totaled, they offered a value much below what I believe the value of the vehicle was,” Walkowiak said. “She [Judith] invoked the appraisal clause, which says that each party shall hire a competent and disinterested appraiser.”
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Hawaii Body Shops
umpire that we ultimately agreed to use,” Walkowiak said. “I found it comical that not only was he not a licensed adjuster but he also wasn’t even located in Hawaii, which was the original reason Mr. Harwood rejected my umpire recommendations. I guess this now sets a precedent for our next umpire selection.” After receiving the umpire’s ruling, Walkowiak said he was able to obtain an additional $6,700 for Judith’s vehicle. “It was a long hard battle fought, but GEICO was forced to finally declare it a total loss and the grieving GEICO paid me $34,000,” Judith said, who describes her feeling as “finally in a joyous frame of mind.” “It took the stress off because I knew there was someone there to help,” she said. “The guy [Billy Walkowiak] is sharp. It was well worth the money.” Janice Hobart, GEICO’s Assistant Vice President of Corporate Communications, told Autobody News that “GEICO was happy to work with our customer to resolve the issues throughout the claim.” After dealing with this situation, Walkowiak said it has actually motivated him to get his adjuster’s license in Hawaii. “These body shops are getting beat up left and right and there is nobody there to help them,” Walkowiak said. “It is happening all over the islands. It has been going on a long time and they have been struggling. It’s getting worse because nobody has challenged them [the insurance companies].” In addition to working on another total loss claim in Hawaii, Collision Safety Consultants is assisting with two diminished value claims in the Aloha state. Walkowiak wants other shops to know they are not alone and how important it is to reach out for assistance when a consumer or body shop is struggling with an insurance company. “There is someone out there to help their consumers and help them get paid for proper repairs,” he said. “It pains me to watch how long some of these insurance claim interactions take to reach a conclusion,” said Dale Matsumoto, owner of Auto Body Hawaii. “The time it took from the first estimate to the time the vehicle was de-
Tim Ronak: Body Shops in Hawaii Facing a Sea of Change
Tim Ronak, Senior Services Consultant with AkzoNobel Automotive and Aerospace Coatings, works with several shops in Hawaii, including many that have agreed to be part of some form of a Direct Repair Program (DRP). Autobody News reached out to Ronak to find out more about the current state of the collision repair industry in Hawaii. “Most of the businesses on the Island(s) are owned by the operators and function much like a family business,” Ronak said. “For years, the assertion has been that the rate paid for repairs has been ‘determined’ by the insurer paying the bill, and occasionally they adjust rates up or down as well as deem whether required procedures are billable or not. termined to be a total loss and Judith accepted the settlement was ridiculous and unacceptable. We are finding that much time and money are wasted due to the inefficiencies of the insurance company. Many of the delays the consumer experienced could have be reduced if the insurance company utilized experienced appraisers and pricing tools that are more reflective of the actual local market prices. Just the fact that this is happening implies that this process is unfairly stacked against a consumer when they have a loss.” Sabrina Dela Rama, manager of the Tony Group Collision Center in Waipahu, located on Oahu, is dealing with similar issues. Recently, Dela Rama went to court regarding a situation with her aunt’s vehicle and Farmers Insurance. “Farmers decided to short pay this claim by trying to pay us their contracted rates and not the market rates, as we are not a direct repair shop for Farmers,” Dela Rama said. Both parties were referred to mediation and according to court documents, Farmers refused to mediate. The case was recalled and the parties were ordered to mediate again. When no resSee Hawaii Body Shops, Page 29
26 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
“The fragmented small ‘family’ business mentality has handicapped the industry in Hawaii more than it has in most other areas of the country. It has an extreme cost of living, yet has a lower labor rate than many areas in the U.S. that have much lower costs of living. “With all this effort to limit reimbursement for collision repairs, it is interesting that Hawaii, according to NAIC Insurance Information Institute, was the most profitable state for insurers to sell auto insurance for the 10 years ending in 2014. “This is where the challenge comes in… some insurers felt that since they pay a specific rate in some shops (either through a DRP or otherwise) or define certain procedures as not billable (conceded
by DRP shops) that it should apply to all shops. The conflict started when one shop became manufacturer-certified to be able to support the new vehicles produced and sold by their organization. The manufacturer required some expensive equipment and also a commitment to participate in ongoing training for technicians. The manufacturer also required performance of specific repair procedures in a specific way to ensure the safe operation of all safety systems after repairs are completed. Initially, the facility simply tried to avoid conflict by not performing repairs for specific customers whose insurers were unwilling to reimburse for all procedures at the rates the facility charged. The manSee Tim Ronak, Page 28
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Tim Ronak
ufacturer stepped in and indicated that they indeed needed to provide service (including collision repairs) for vehicles they sold. “This created two conflicts: 1. DRP (asserted) Rates were inadequate to provide an adequate return for the required new ongoing investment in training and equipment that would be critical to ensure the capability to repair back to the manufacturer-recommended state ensuring consumer safety. The investments will no longer be one-time expenditures, as the investments will be ongoing as new technology will displace old technology at a more frequent pace than in the past, requiring a
more frequent and sizable investment. “Aside from the anti-competitive legality of an insurer attempting to limit reimbursement to a consumer based on what that insurer can contract with elsewhere, consumers are free to select repair shops they feel will perform repairs to their satisfaction at a reasonable rate. In this case, the facility researched local retail rates and voluntarily left DRP programs that did not reimburse consumers at the competitive retail door rates charged by the facility. An attempt by an insurer to limit or cap rates paid to reimburse consumers to the specific contracted DRP rates when working with facilities outside of that DRP contract is prohibited through the Sherman Act and is a
defined anti-competitive behavior. “2. Specific procedures required by the manufacturer to return the vehicle back to a state ready for the next collision need to be performed. If the procedures are required by the manufacturer and as part of a certified repair, it does not leave the facility any realistic options. The procedures NEED to be performed and completing them for free while paying technicians with no reimbursement is an unrealistic expectation. Not performing the recommended procedures will leave the consumer at additional risk than they were exposed to prior to the repair. “In June 2017, an article reported that Thatcham in the UK had seen repair severity increase 30 percent
in just the last three years and blamed manufacturer safety system technology. The efforts of insurers to manage severity through rate capping and denial of procedures is becoming a huge friction point. In an environment where severity is increasing due to advancing technology, the losers seem to be the repair shops that face a severity metric they have no ability to manage. This conflict is starting to elicit change, but the constant battle and accusations of charging for things that are not needed is something that can take a toll on anyone. The reality is that this market out in the Pacific is facing a sea of change and the technological tsunami of new vehicle safety systems and Advanced Driver Assistance Systems (ADAS) is forcing many out of their comfort zone.”
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Hawaii Body Shops
olution was reached, it went to trial and the court found in favor of the plaintiff. Since that case was settled, Dela Rama began working on two more files involving Farmers Insurance. She said they have invoked the appraisal clause on one of the files, which Dela Rama believes is a first on Oahu. “Even after Farmers lost in court, they are using anything they can to not pay a fair and reasonable repair—how is that?” Dela Rama said. The second file involved a claimant’s vehicle and the insurance company paid in full, including body supplies, after a demand letter was sent to their insured. “They [the insurers] continue to cause Tort Interference to avoid paying a reasonable and fair market rate,” said Dela Rama. Tortious interference is defined by the Legal Information Institute at Cornell Law School as “…a common law tort allowing a claim for damages against a defendant who wrongfully interferes with the plaintiff’s contrac-
tual or business relationships.” According to the 2016 Hawaii Revised Statues (HRS) Insurance Code: §431:10-220 “Policy must contain entire contract. (a) No agreement in conflict with, modifying, or extending any contract of insurance shall be valid unless in writing and made a part of the policy.” Dela Rama said that after a loss is accrued and an estimate is prepared, the insurance company usually sends a letter stating if the insured or claimant chooses a shop that is not part of a DRP and the shop charges more than what the Farmers estimate is, they will have to pay the difference. “The issue is that it is also misleading, as this letter is given out when the initial estimate is done, which is missing a lot of required procedures; therefore, customers think that’s all the insurance will pay,” Dela Rama said. “That letter seems to be breaking HRS 431:10-220 as the insurance company is making changes after a loss accrued; that’s not in the entire contract/policy. They’re changing the policy verbiage to limit rates and coverage after the fact.” Hawaii is a “no-fault-state” meaning that the insurance company will pay
for injuries up to a certain amount. “Because ‘no-fault’ applies to injuries, not to vehicles or property, the driver at fault in an accident is responsible for damage to vehicle and property,” according to Hawaii Motor Vehicle Insurance Information. “Even though we’ve been involved in these recent situations with Farmers, we are not anti-insurance,” Dela Rama said. The Tony Group currently has direct repair contracts with insurance companies and also works with nonDRP insurance companies. “I want shops to realize that our duty is to complete repairs for our customers,” Dela Rama said. “We are obligated to them. Sometimes, we as collision repairers forget who the customers are.” “We don’t build these vehicles,” Rissa Matsumoto said. “We, as the repairer, have the responsibility to repair these vehicles back to their safety condition prior to the accident.” Farmers Insurance declined to comment.
www.autobodynews.com
Certified Collision Group™ Appoints Martin Evans as VP
Certified Collision Group™ (CCG) announced the appointment of Mr. Martin Evans to Vice President of Business Development on July 18. A seasoned business development executive, Evans provides more than 25 years of direct automotive refinish distribution and key account development and management including large MSOs across the U.S. and Canada. “Our team and board’s broad industry relationships allows us to continue to attract the industry’s most dedicated, talented and proven professionals; those who are truly committed to helping the industry by addressing today’s significant challenges and opportunities alike”, stated Bruce Bares, CCG President and CEO. CCG now operates in 22 states and is quickly expanding beyond 135 locations. It provides non-intrusive competitive solutions to well-established collision repair businesses with Proven Performance relative to repair capabilities, customer satisfaction and client KPI’s. For more information visit: www .certifiedcg.com
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 29
DIY Repair in Florida Results in Fatal Airbag Explosion, “Alpha” Inflators are Most Dangerous Type A Florida man was killed by an exploding Takata air bag inflator while doing a DIY repair in June last year. Ramon V. Kuffo, 81, of Hialeah, Florida, was working inside a 2001 Honda Accord using a hammer when the air bag inflator ruptured, on June 18, 2016. A medical examiner ruled his death accidental due to head trauma, according to a Hialeah police report. According police, Kuffo was in the back yard of his home near Miami, working on a silver 2001 Honda Accord, when a neighbor heard a loud bang. The neighbor went outside and found Kuffo sitting in the passenger seat of the car unconscious and bleeding from his face. Kuffo was taken to a trauma center, where he died the next day. Both air bags had inflated. Honda released a statement on July 10, 2017, which read, in part: “Honda has notified the National Highway Traffic Safety Administration (NHTSA) of the rupture of a Takata driver’s airbag inflator in a 2001 Honda Accord on June 18, 2016 at a private residence in Hialeah, Florida. The rupture occurred while an individual, who was not the vehicle owner, was attempting to perform unknown repairs inside the vehicle using a hammer while the ignition switch was in the “on” position. This triggered activation of the airbag inflator, which ruptured during deployment of the airbag. The individual died the next day from injuries sustained when
the airbag deployed. “It is difficult to determine whether the cause of death in this incident was the inflator rupture, or an interaction of the hammer with the deploying airbag. While the absolute cause of death may never be fully determined, Honda now considers this to be the 11th confirmed fatality in its vehicles related to Takata airbag inflator ruptures in the U.S.
“Honda has shared all of the available vehicle history information collected to date with NHTSA and will continue to cooperate with NHTSA throughout the process of the investigation. “Since 2009, the vehicle in the Hialeah, Florida event has been included in multiple recalls as well as a safety campaign related to its original defective Takata “Alpha” driver’s airbag inflator. Twelve mailed recall notices were sent over the course of nearly seven years to registered owners of this vehicle prior to the June 2016 incident. Our records indicate that the recall repair was never completed on this vehicle.
BASF’s VisionPLUS Performance Groups Approved for I-CAR Platinum Credit Points
BASF’s VisionPLUS® Performance Group program is now I-CAR–approved. In 2017, each Performance Group member will receive seven ICAR Platinum points for meetings they attend, helping them maintain ICAR Platinum status each year. “Our Performance Group community is growing and getting stronger each year,” said Craig Seelinger, BASF VisionPLUS Program Manager. “We continuously strive to develop the best-performing and most profitable collision shops in the country, and this first-in-the-industry approval from ICAR demonstrates the value these meetings bring to BASF customers.” 2016 was a strong year for both growth and profitably across the board for Performance Groups. Members meet several times a year to discuss current industry issues, best-practices,
profit improvement and insurance relations. “BASF has been an invaluable partner of ours for more than 10 years,” said Jason Bartanen, I-CAR Director—Industry Technical Relations. “The BASF Refinish Performance Groups strengthens this commitment and emphasizes the need for continuous business process improvement. We’re excited to reach BASF students in a new way, and are happy to support and expand the I-CAR BASF management training.” BASF VisionPLUS University classes were I-CAR certified last year. Certifying the Performance Group meetings was the next evolutionary step and provides deeper insights into the shops’ business practices. For more information contact Craig Seelinger at (313) 720-8231 or craig.seelinger@basf.com.
30 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
“Honda continues to encourage all owners of vehicles containing recalled Takata airbag inflators, especially the “Alpha” inflators found in certain 2001–2003 models, to immediately check for open recalls and, if replacement is required, make an appointment at an authorized dealer for a free repair. The 2001 Accord has one of the most dangerous types of Takata driver’s side air bag inflators. Laboratory tests show they have as high as a 50 percent chance of blowing apart in a crash. The victim, who police said was not the car’s owner, was working on the interior of the car with a hammer and had taken apart the car’s center console, but it wasn’t clear what he was trying to fix. It’s also not clear why the air bag deployed, but police photos show the metal driver’s side inflator ruptured and shot out fragments, Honda said. The car’s ignition switch was on, so the air bag would have been ready in case of a crash, according to Honda. Martin noted that there is a deceleration sensor that activates the air bags mounted on the wall between the engine and passenger compartment.
Honda urged owners who have received recall notices to get repairs made as soon as possible, especially those with the Alpha inflators. Those models are the 2001 and 2002 Accord and Civic, the 2002 CR-V and Odyssey, the 2002 and 2003 Acura 3.2 TL, the 2003 Acura 3.2 CL and the 2003 Pilot. Honda says it has sufficient supplies of replacement inflators available to fix all of its recalled vehicles. “It’s essential to safety that highrisk inflators are replaced immediately,” the National Highway Traffic Safety Administration said in a statement. Honda says its service procedures recommend disconnecting the battery when working on the air bag system. Owners can go online and subscribe to Honda service manuals and find out proper procedures for many repairs. It costs about $10 per day, Martin said. Multiple owners of the car were mailed 12 recall notices over seven years. “Our records indicate that the recall repair was never completed on this vehicle,” Honda said in a statement.
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 31
Continued from Cover
Takata Adds to Recall
Ammonium nitrate is an inexpensive propellant that cycles through five solid states depending on temperature. Generally this occurs in a predicable way and as the vehicle goes from the heat of sunshine to the cold overnight, the temperature swing is large enough for the ammonium nitrate to change from one phase to another. Ammonium nitrate also absorbs moisture from the atmosphere readily, hence the need for a desiccant to keep the compounds dry. The desiccant is there to stabilize this process and, if it fails, may make ammonium nitrate dangerous, engineers say. Takata’s inflators have used a variety of chemical agents to keep the propellant dry in its devices over the years, with some combinations showing a greater propensity to fail than others, federal regulators said. Ford, Mazda and Nissan installed these inflators in vehicles manufactured for the United States market from 2005 through 2012, according to Takata. All are on the driver’s side of the vehicles. The affected vehicles are
from the 2005 through 2012 model years. At least 17 people have died and more than 180 injured due to the problem. These inflators have caused the largest automotive recall in U.S. history with 42 million vehicles and up to 69 million inflators being called back for repairs. The latest recall is the first involving the inflators that use calcium sulfate as a drying agent. The inflator can combust in an “over-aggressive” manner, potentially rupturing and causing harm, according to a filing Takata submitted to the highway safety administration. Takata previously believed that a particular drying agent, calcium sulfate (Ca2SO4), stopped the propellant from degrading, but now suspects that desiccant is inadequate and is a potential hazard. Takata originally used a toxic airbag propellant called sodium azide. But that compound is volatile and could release toxic fumes into the car when the airbags deployed, especially if damaged. Ammonium nitrate, they concluded, would do the job more effectively and at lower cost. In 1981 Mercedes-Benz was the world’s first automobile manufacturer
to present the airbag and a propellant driven belt tensioner as restraint systems to the public in a series-production car. American manufacturers followed suit and delivered their first test fleets with compressed-air operated airbags, these restraint systems—which were conceived as an alternative to seat belts—sometimes led to serious injuries and in a few cases even fatalities. Autoliv, a Swedish-American automotive safety products manufacturer, said in 2014 that it avoided using ammonium nitrate because of stability issues. Key Safety Systems, the recent buyer of Takata’s bankrupt assets, said at the time that it used guanidine nitrate and tetrazole— which experts said was more expensive but less risky and more durable than ammonium nitrate. TRW Automotive, a large supplier of safety parts based in Michigan, also used a propellant based on guanidine nitrate. The National Highway Traffic Safety Administration now says that tests done by Takata show that—for the first time—this type of calcium sulfate-desiccated inflator “will pose a safety risk if not replaced.” The agency says it has no reports of any inflators with this desiccant actually
rupturing. Takata said in documents filed with the safety agency that it tested the inflators returned from Nissan and Ford vehicles which use calcium sulfate as a drying agent. Although none of the inflators actually ruptured, some showed a pattern of deterioration in the ammonium nitrate propellant over time “that is understood to predict a future risk of inflator rupture.” NHTSA said in a statement that not all Takata inflators with a desiccant are being recalled. Takata used different drying agents in its other inflators, the agency said. Nissan said the new recall affects just over 515,000 Versa subcompact hatchback and sedans from the 2007 through 2012 model years. Mazda said its recall covers about 6,000 BSeries trucks from 2007 through 2009. Ford, which has the most vehicles involved in the latest recall, is reviewing the information and will file a list of models within the time required by law. The latest recall raises doubts about the safety of other Takata Corp. inflators that use ammonium nitrate and drying agents. The doubts over Takata’s propellant raise questions of
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whether the recalls should be limited to humid regions. For as far back as 2014 NHTSA said that it would urge automakers to expand recalls of certain drivers’ side airbags that had previously been limited to states and territories with high humidity. The company has now agreed to recall all original equipment inflators without a drying agent in phases by the end of 2018. NHTSA gave Takata until the end of 2019 to prove that inflators with the drying agents are safe, or they must be recalled as well. Takata pleaded guilty to criminal charges in January 2017 and agreed to pay a $1 billion fine related to its faulty airbag inflator systems. After filing for bankruptcy protection in June, it is selling assets to be able to continue manufacturing components. The company has said that it expects to fund the airbag repairs through
the asset sale and that it has secured financing to ensure it can continue operations, including dealing with the defective inflators, while it restructures. NHTSA said Takata has assured the agency that it will keep making inflator parts available. “This recall now raises serious questions about the threat posed by all of Takata’s ammonium-nitrate-based airbags,” Senator Bill Nelson, Democrat of Florida, said in a statement. “If even more are found to be defective, it will take us from the biggest recall ever to something that could become mind-boggling.” The agency is urging people whose inflators have been recalled to get them replaced as soon as possible. To find out if your car or truck is part of the recall, go to nhtsa.gov/recalls or airbagrecall.com and key in the 17digit vehicle identification number.
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Rochelle Beckel is Online Editor at Autobody News
Rochelle Beckel has joined Autobody News as Online & Web Content Editor. Rochelle has been a California resident her entire life, having spent her early years growing up in North San Diego County and college/postgrad years in the Bay Area. She graduated with a BS in Journalism from San Jose State University, where she was an active Rochelle Beckel member of the student newspaper and student magazine editorial staff. After graduating in 2014, she worked as a technical writer at an investment services firm and an account coordinator at a recruitment advertising agency in the Bay Area before moving back to San Diego in July. She looks forward to applying her passion for reading, writing and editing to her new role at Autobody News. Her other passions include exploring new cities, alternative music, Pringles, “Friends” (both the sitcom and her own), her boyfriend and her family. Contact Rochelle at: rbeckel@autobodynews.com.
Bill Pierce is our New Digital Marketing Manager
Bill Pierce has taken the position of Digital Marketing mananger at Autobody News. He is a web developer, graphic artist and marketing manager with over 16 years of experience in the industry. He holds a BA from San Diego State University. He enjoys keeping up with the latest trends in social media, online marketing and web development. He is pasBill Pierce sionate about the local music and art scene and has produced over 40 art shows. As a graphic artist, he has designed over 400 concert posters for bands. He has appeared on radio and national television. His artwork has been shown throughout the United States, as well as; Japan, Spain, Iceland, Italy, Belgium, and the UK. He grew up in Vermont and Mississippi and has lived in San Francisco CA, Greenbelt, MD, and Washington, DC. He enjoys swimming, camping, hiking, biking and spending time with his family in North County. Contact Bill at: bpierce@autobodynews.com.
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H ON DA I LLIN O IS
Honda Superstore of Lisle Ch i ca go /Su b u rb s
866-874-6632 Dept. Hours: M-F 7-5 hondaparts@auto-plaza.com
Schaumburg Honda Automobiles Scha u m bu rg
847-884-8898 847-884-6632 Dept. Hours: M-F 6:30am-Midnight; Sat 8am-5pm k.kelley@rohrman.com
Meyer Honda O ’F a l l on
888-714-6739 618-206-2172 Dept. Hours: M-Sat 7-6 partsmeyerhonda1@gmail.com I ND I AN A
Basney Honda M i sh a wa k a
800-877-7477 574-255-2179 Dept. Hours: M-F 7:30-6; Sat 8-2
Bob Rohrman Honda La fa ye tte
800-488-3537 765-448-1000 Dept. Hours: M 7:30-8; Tue-F 7:30-6; Sat 8-3 Brho.partsmgr@rohrman.com A CURA OH I O
Columbia Acura Ci n ci nn a ti
800-654-3553 513-530-0698 Dept. Hours: M-F 8-5:30; Sat 8-12 columbiaparts@mail.com IL L IN O IS
Acura of Libertyville Li b e rtyv i ll e
847-680-7333 Dept. Hours: M-F 7:30-6; Sat 7:30-4 kmilz@acuralibertyville.com
Arlington Acura in Palatine Pa l a ti ne
800-991-8438 847-991-9005 Dept. Hours: M-W 7:30-7:30; Thu-F 7:30-5:30; Sat 8-3 aaip.partsmgr@rohrman.com 34 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. I NDI A NA
M INNE SO TA
MIS SOU RI
OHIO
Bosak Honda
Buerkle Honda
Frank Fletcher Honda
Hig hla nd
S t . P aul
C o lu mb i a
Be d ford
800-542-6725 219-922-3102
800-592-9514 651-484-0975
573-818-3650
800-509-9057 440-786-3363
Dept. Hours: M 8-5; Tue 8-8 W, Thu, F 8-5; Sat 8-4 davepropeck@bosakmail.com
Dept. Hours: M-Thu 8-9; F 8-6; Sat 8-4:30 hondaparts@buerkle.com
Honda of Fishers F ishe r s
800-806-6404 317-299-3723 Dept. Hours: M-F 8-6 honda-west@att.com
S t . Lo u is
Ho pkin s
888-680-6025 636-336-5003
800-328-6016 952-908-8585 Dept. Hours: M-Thu 7-9; F 7-6; Sat 8-4 tim.lewis@hopkinshonda.com
Pl ymo uth
Dept. Hours: M 7:30-8; Tue-F 7:30-6; Sat 8-4 Karl_messer@victoryplymouth.com
Zeigler Honda
Dept. Hours: M-F 7-6; Sat 7-5 hondaparts@frankleta.com
K a ns a s C it y
816-452-3221
800-328-2703 612-866-8197
Dept. Hours: M-Fri 7-6; Sat 7-4 parts@hondaoftiffanysprings.com
Dept. Hours: M-Thu 6:30-9; F 6:30-6; Sat 6:30-5 parts@rbhonda.com
Roper Honda
M ISS OUR I
Bommarito Honda
Jo p li n
877-244-6632 417-625-0846 Dept. Hours: M, W, Th, F 7:30-6; Tu 7:30-7; Sat 9-1 dvice@roperauto.com
Ka la ma zoo
Ha ze lwoo d
888-342-1678 269-585-5812
800-731-8270 314-731-8270
Dept. Hours: M-Thu 7-8; F 7-6; Sat 8-4 bobsmith@zagteam.com
Dept. Hours: M-Sat 7-6 Lrowe@bommarito.net
Superior Honda of Omaha
Ed Napleton Honda
888-408-0911 402-408-1100
MI N NES O TA
Brookdale Honda B ro o kl yn Cente r
800-899-8900 763-331-6880 Dept. Hours: M-Th 7-9; F 7-6; Sat 8-6 parts@lutherbrookdalehonda.com
IL L INO IS
S t . P et ers
800-875-4190 636-928-4400
Mike Pruitt Honda Ak ro n
330-633-8197 330-633-6060 Dept. Hours: Tue, W, F 8-6; M, Thu 8-8; Sat 8-4 edally@mphonda.com W IS CO NS IN
Russ Darrow Honda M i lwa u ke e
888-318-1671 414-586-5401 Dept. Hours: M-F 7-6; Sat 7-4; Sun 8-4 hondaparts@russdarrow.com
Wilde Honda Wa u ke sh a
800-526-3209 262-542-9300 Dept. Hours: M-F 7-9; Sat 8-4 wildehondaparts@gmail.com
N EBR ASKA
O m ah a
Dept. Hours: M-F 7-5:30; Sat 8-6 ianw@hondaofomaha.com
Dept. Hours: M-Sat 7-6 gethondaparts@napleton.com
IL LIN OIS
Continental Acura of Naperville
Dept. Hours: M-F 7:30-6; Sat 8-4 jayhondaparts@gmail.com
Honda of Tiffany Springs
R ichf ie ld
MI C HIG A N
800-824-4646 734-453-3600
Frank Leta Honda
Luther Hopkins Honda
Richfield-Bloomington Honda Victory Honda
Dept. Hours: M-F 8-5; Sat 8-4 gropp@fletcherauto.com
Jay Honda
MIC HIGAN
W IS CO NS IN
Muller’s Woodfield Acura
Acura of Troy
Ho f f m an E st a t es
Tr oy
Br oo k fi e ld
Ch icag o /Su bur b s
866-475-9280
630-960-2175
Dept. Hours: M 7-5; Tue-F 7-6 Sat 8-3 mcavallini@woodfieldacura.com
800-935-0923 248-643-0900
800-383-3936 262-439-6029
Dept. Hours: M 7:30-8; T-F 7:30-6; Sat 10-3 parts286@acuraoftroy.com parts287@acuraoftroy.com
Dept. Hours: M-Th 7:30-6; F 7:30-5; Sat 8-4:30 patrick.murphy@zimbrick.com
Dept. Hours: M-F 7-5:30; Sat 8-4 bobw@conacura.com
Joe Rizza Acura
M INNE SO TA
Acura of Brookfield
Buerkle Acura
Or la ndo Pa r k
Mi nneap ol i s
708-460-6369 708-403-7770
800-717-3109 763-488-1122
Dept. Hours: M-W 8-5:30; Thu 8-7 F 8-4:30 Sat 8-2 acuraparts@rizzacars.com
Dept. Hours: M, F 7-5:30; Tue-Thu 7-7; Sat 7:30-4 acuraparts@buerkle.com
McGrath Acura of Morton Grove
Luther Bloomington Acura
Mo rto n Grove
847-470-2309
800-451-5078 952-887-0600
Dept. Hours: M-F 7-9; Sat 8-6 acparts@mcgrathag.com
Dept. Hours: M 6:30-6; Tue-F 6:30-9; Sat 8-4 parts@bloomingtonacura.com
B lo om ing t on
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 35
Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Talk of Other Insurers Requiring use of PartsTrader Goes Back Five Years with John Yoswick
20 years ago in the collision repair industry (August 1997) A ban on the use of non-OEM parts on vehicles covered under warranty, and a call for insurers to share more information about their claims handling guidelines were among the issues debated by shop owners, association leaders and other participants at the National Leadership Conference held in August. The National Leadership Conference brings together leaders in the industry for a day of training as well as discussion of national issues. The conference allows participants to prepare and debate industry position papers or resolutions. At the conference held in Anaheim, CA, three resolutions were approved with little or no opposition among the more than 100 participants:
“Who Pays for What?” survey earlier this year), although more than 60 percent of the shops using such a system say they are paid “always” or “most of the time” based on the materials invoice by the eight largest auto insurers.
15 years ago in the collision repair industry (August 2002) It’s a frustration every independentlyowned autobody or automotive shop owner has faced: The job that gets held up, the part that gets unnecessarily damaged or replaced, the technician time that gets wasted–all because of a lack of service or repair information from the automakers. After years of griping about the lack of easily-accessible OEM vehicle information, there may be some light at the end of the tunnel for independent • One stated that non-OEM shops hoping to get the inforparts should not be used in the mation, training and tools aurepair of a collision-damaged tomakers have long made vehicle that is still under waravailable to their franchised ranty if the use of such parts dealers. A combination of cowould violate the warranty. operation and coercion culminated last fall in an agreement • Another called for a change by more than a dozen of the In 2012, Bill Haas in federal regulations to re- was helping lead the OEMs to make such informaquire airbag systems be re- Automotive Service tion available by January 1 of placed (or otherwise made Association’s effort next year. While a giant step on access to OEM operational) as part of the reforward, there is still work to repair information pair process if a vehicle had be done, according to Bill such systems originally. Haas of the Automotive Service Association. • A third deemed the current system by “There’s really three aspects to which shops are compensated for rethe OEM information issue: availabilfinish materials “archaic,” and called ity, accessibility and affordability,” for the use of refinish materials manuHass said. “At some point, all of these als or guides found to be fair, objective things are going to have to fall in and acceptable across the insurance place. [Last fall’s letter by the OEMs] and repair industries. might address the availability issue, but that doesn’t mean that the infor– As reported in Auto Body Re- mation is accessible and it certainly pair News. There has been only some doesn’t mean it’s affordable.” movement in the industry toward the That’s why ASA and a variety of goals of the three objectives. Federal industry organizations are still battling air bag regulations have not changed. the OEM service and repair informaSome states, including Arkansas, lim- tion issue on a number of fronts. its the use of non-OEM parts on vehicles still under the manufacturer’s – As reported in Autobody News. warranty, though non-OEM parts pro- Though efforts to pass federal “Right ponents are working to loosen such re- to Repair” legislation to ensure access strictions. And 20 years later, less than to OEM repair information failed, a 20 percent of shops are using a mate- similar regulation was passed at the rials invoicing system (according to a state level in Massachusetts, giving the
36 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
aftermarket repair industry legal leverage to ensure automakers have complied with the voluntary agreement. Haas left ASA in 2012 and is trainer and consultant with Educational Seminars Institute.
craftsmanship in regard to the refinish process of a repaired panel.
– As reported in Autobody News. Still 10 years later, more than half of shops (51.9 percent) in a “Who Pays for What?” survey (www.CRASHnetwork .com/collisionadvice) earlier this year 10 years ago in the collision repair reported being paid body labor industry (August 2007) time rather refinish labor time A position statement on the for “feather prime and block.” “feather fill and block proceAlmost half (47.4 percent) of dure presented by the Automore than 750 shops respondmotive Service Association ing said the painter completes (ASA) “Refinish Subcommitthat process in their shop, 23.3 tee” has been approved by the percent said the process was association’s board of direcIn 2012, George split between the painter and tors. Avery of State body tech, and another 10.2 The approved statement Farm said it was too early to know percent said a combo tech makes clear that as an indusif other insurers (who does both body and paint try standard, the process of would adopt use work) does the feather prime “feather fill and block” occurs of PartsTrader and block process. Less than during the refinish process of 1-in-5 shops (19.1 percent) said a body a repair. ASA recognized the necessity technician completes all of the feather of this process to provide the consumer with the highest standard of repair and See Use of PartsTrader, Page 50
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Social Media for Shops Are You Gearing Up for Voice Search? with Ed Attanasio
“Siri, what is the meaning of life?” “I find it odd that you would ask this of, me, an inanimate object.”
Siri and I are not getting along right now. I accidentally called her Cortana the other day and she is obviously still fuming. I asked her for movie times just now and she said go ask Cortana. Whether her name is Siri, Cortana or Alexa, she and her sisters are going to be more and more in all of our lives from now on. Say goodbye to the keyboard generation, because typing is a drag and takes way too much time— just ask your kids. If you spend time with anyone in their twenties, you’ll notice that they prefer voice assistants over keyboards. This is a funny reversal of what happened in the early days of personal computing when the keyboard was part of the problem. Voice control is here to stay and there is no doubt that cell phone and tablet manufacturers
are looking for more ways to make voice even more prevalent in every aspect of society. There are three main reasons that are driving voice searches: 1) Voice search is starting to become part of the Generation Z’s mobile behavior as
they spend more of their day accessing apps and making them a bigger part of their lives. 2) Enhanced voice search apps such as Siri and Cortana are supported by AI technology and
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Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
new proactive voice concierge services and 3) The growing consumer demand for wearable devices with voice control as a main feature. With voice search gaining major momentum, companies (including body shops) should be figuring out ways to optimize voice search and deliver seamless services, all from a mobile platform in all of their online marketing efforts. If you’re doubting the importance of voice search, check out these stats: According to GlobalWebIndex, voice search is increasing at the expense of browser-based search. In a recent study commissioned by Google, 55% of users under the age of 18 use voice search apps more than once daily, in comparison to 41% of adults. This study also revealed that 57% of people 18-25 aren’t worried about
protocol when using their smart phones, compared with only 24% of adults polled. As a result, companies will have to react to how your current and potential customers “voice their search” as the keywords and approach differ from text search in their browsers. The numbers are compelling and companies like Apple and Google are undoubtedly listening. These are numbers compiled by HubSpot, Search Engine Land and Statistica: ■ 19% of people use Siri at least daily.
■ 37% use Siri, 23% use Microsoft’s Cortana AI, and 19% use Amazon’s Alexa AI at least monthly.
■ 20% of search queries on Google’s mobile app and on Android devices are voice searches.
■ 60% of smart phone users who use
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voice search have begun using it within the past year, with 41% of survey respondents having only begun to use voice search in the past six months.
■ 43% of mobile voice search users do so because they say it is quicker than going on a website or using an app.
■ 21% of mobile voice search users do so because they say they don’t like typing on their mobile.
While many marketing experts and trying to learn on the fly about the ins and outs of voice search, others feel it’s much ado about nothing at least for now. One of these people is Luke Middendorf, the owner of WSI Connect, a digital marketing firm in Concord, CA, that includes body shops as some of his clients. “To be honest, voice search is actually pretty low on our radar, Middendorf said.”I’m just not convinced that customers are using it to source local services. I know there are a lot of articles out there that point to unprecedented growth, but I believe that most of those are related to the weather fore-
casts, driving directions, or branded searches (ordering a pizza from Dominos).” By continually monitoring consumers’ online behavior and tracking their habits on their personal devices, Middendorf is able to find consistencies that will hopefully anticipate the next best thing. “There is a lot of research that goes into choosing a local service provider, including body shops, contractors, plumbers, etc.,” he said. “People like to look at a few different options which includes the companies’ websites and online review profiles. This is difficult to accomplish with voice. The most important things businesses need when it comes to digital marketing are mobile friendly websites (only about 40% of the prospects that we meet with have one) and a strong local SEO strategy (I’d say around 5% of the prospects that we meet with have any kind of strategy). If a business has both of those and still has capacity for more clients they should look at PPC, email marketing, and social media. Once they successfully implement those they can consider content marketing and marketing automation. At that point we might start looking into
voice search.” Angel Iraola, the owner of Net Business Consulting & Solutions in Santa Rosa, CA is currently trying to figure out a way for his clients to leverage this technology to their advantage, he said. “We think that those companies that will adapt quickly to the different types of voice search will succeed in that arena where others will be left behind, just like with any new type of technology,” Iraola said. “If you ask Siri for a list of the top body shops in any region, you will get 15 results, so how do you get to be #1? These are the things we need to know now, instead of 2-3 months from now where everyone else is on the same path.” Iraola says that voice search is not only here to stay, but will eliminate keyboards altogether on personal devices soon. “Many of these smart houses with sophisticated systems that control climate, electronics, etc. are run on voice and our cars are going that way too, so get ready for voice search and be prepared for when it truly explodes. People have realized that typing is time-consuming and a little clunky when you can just talk and get what you want.”
Auto Care Careers Now Offers Job Posting Packages
Unlimited and bulk job posting packages are now available on the Auto Care Careers Industry Job Board. “We are very pleased to announce that custom bulk and unlimited posting packages are now available,” said Courtney Hammer, director, job and career development, Auto Care Association. Each posting made on the Auto Care Careers Industry Job Board is automatically shared on multiple jobs boards via a broad industry network, including Auto Care Association, Automotive Service Association (ASA), etc. “With the addition of custom bulk and unlimited packages, we are making it easier for companies of all sizes to share more exciting career opportunities and connect with thousands of qualified candidates interested in a career in the dynamic auto care industry,” continued Hammer. Hiring managers will find the new job posting rates by visiting http://jobs.autocarecareers.org/rate.
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www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 41
National News
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Snapsheet President: Photo-Based Estimating, Claims are the New Way for Carriers with Chasidy Rae Sisk
by Chasidy Rae Sisk
In early May, Allstate announced it will be dropping its drive-in inspection stations, instead directing customers to the photo estimating system available through its mobile app – citing that customers have embraced the technology, with many opting for the virtual experience. According to Snapsheet President CJ Przybyl, this represents a new normal for the industry which he discussed during an informative webinar on May 31. A small number of insurance companies have implemented mobile self-service technology, specifically the ability to send a branded self-service mobile app to a customer in order to obtain photos of a damaged vehicle. Przybyl calls this “the first step toward virtual claims.” “Very few carriers are doing this themselves, starting with mobile selfservice and getting photos from the customers,” he said during the webinar. “But these photos only capture the first portion of the claim. There’s still a need to negotiate supplements, handle triaging and total losses, deal with complaints and so forth. All sorts of other mechanisms happen outside of mobile self-service to process a claim, and though you could utilize self-service for up to 20-50% of a claim, it would be very taxing and painful on the backend, leading more carriers to realize they need a full virtual claims platform.” Compared to mobile self-service, virtual claims refers to the ability to process 100% of a claim by obtaining photos through multiple channels, tracking the progress in a dedicated software platform, and centralizing all estimating resources. Przybyl explained, “This doesn’t mean you’ll estimate and settle 100% of claims virtually, but we’re moving in that direction. With technology like our virtual claims platform, 100% can start and be triaged perfectly based on photos and information. Full automation of claims requires more technology and a new way of processing claims.” Automated claims integrate a virtual claims platform with data in order to apply machine learning and fully
automate the generation of estimates and other tasks. Przybyl noted, “As we’re implementing this technology at Snapsheet, we’re taking the data that’s been submitted and using it to make intelligent decisions, utilizing the analysis from machine learning and artificial intelligence.” Przybyl stressed that there’s no chance that insurance adjusters will go away within the next ten years, but rather this process can actually supplement their jobs. According to Przybyl, “Around 70% of our claims communications are fully automated. Processing a claim requires more than just utilizing visual learning to generate an estimate. It’s a more comprehensive process and that needs to be considered holistically, which is the value Snapsheet’s virtual claims platform provides.” Serving 45 automotive insurance carriers, Snapsheet offers scalable, cloud-based claims software, operating in a single, unified platform that is completely customizable for each specific insurance carrier’s workflow. The platform allows carriers to track and analyze new metrics and automate metrics traditionally found offline, control costs, enable payments, streamline shop interactions and control the customer experience. “Many carriers will struggle to handle photo estimating on a large scale because their infrastructure is not built for that,” Przybyl explained. “Our scalable software allows for infinite data storage and the ability to easily add modules to solve problems, and we’re always innovating, employing code updates two or three times each day. Because of this commitment to flexibility and constant innovation, we’ve become the largest provider of virtual claims processing.” In 2013, Snapsheet processed 10,000 virtual claims, and the company forecasts that it will handle over 400,000 claims in 2017. When insurance carriers need an estimate, they provide the claim to Snapsheet’s customer support team to capture photos and triage the claim. Once Snapsheet receives photos, their estimators prepare an estimate and then work with the shops, keeping the adjuster and carrier informed,
42 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
trading data and analytics, and giving the customer a virtual experience. Przybyl stated, “This isn’t just a piece of mobile technology; it’s about having the customer self-select into the right virtual method and then having all of the real-time tools to be able to engage them, preempt problems with predictive analytics, handle all of the engagements, and basically use technology to have your resources feel like they’re standing over the customer’s shoulder when, in reality, the customer is in the field, doing the work themselves and then internalizing all of the outcomes.” Przybyl believes most of the damage is captured in these photos, providing a good idea of the needed supplements. “We have 98% accuracy on the original estimate based on photos, and a lot of our technology is built around getting the right photos from the customer to make the correct assessment. Teardown will reveal the
additional damage, and we still need to handle supplements and negotiate with the shop which gets their information from normal sources, such as OEM requirements.” All of Snapsheet’s estimators are W-2 employees with proper licenses on file, and Snapsheet’s information is provided to shops on the original estimates. According to Przybyl, “We are using technology to optimize operations, but more of our data has to do with the customer experience. We help insurance carriers with their processors; there are a lot of claims, and frequency and severity are both up. Snapsheet’s platform can help these carriers today.”
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Western Associations
Victoria Antonelli is a freelance writer and model, based in Los Angeles. She has been writing for the collision industry since 2013. She can be reached at vantonelli.autobodynews@gmail.com.
CAA Members Tour UTI Long Beach, Learn to Negotiate Pre and Post Scans with Victoria Antonelli
Hillel Shamam. “UTI Long Beach has more collision students now—100 On Thursday, June 22, members from on any given day—and they have a several California Autobody Associa- graduation every six weeks.” tions in Southern California gathered At 6 p.m. there was a meet and with students at Universal Technical greet style dinner for UTI Long Beach Institute-Long Beach for the chapters’ students and CAA members. The two groups had the opportunity to chat about the industry, upcoming projects at the technical school, and a variety of other topics as part of the second annual UTI Tech Showcase. “The UTI Tech Showcase was better this year than last, but we had only half the attendees,” said Shamam. Shamam added that there CAA members from across Southern California were given were several shop owners and a tour of the UTI Long Beach state-of-the-art facilities more than 40 collision stumonthly meeting. The evening started dents at the meeting. off with a campus tour at 5 p.m. “It was a tremendous opportunity “The tour was great,” said CAA for our collision program students to Glendale/Foothill Chapter President, meet and have dinner with local colliby Victoria Antonelli
sion shop owners who represent their future employers,” Larry Hohl, president of UTI-Long Beach. “And those employers were able to experience the high standard of education, lab training on state-of-the-industry equipment, and professionalism that we use to prepare our students for a highly successful career.”
for the collision repair industry, specifically how to negotiate and justify pre and post scans. “I’m trying to educate shops on how to staff, react to, implement OEM repair info, and ultimately build their business around diagnostics,” said Rodenroth “Especially now that more and more mechanical parts are becoming electrical, and therefore more difficult to work with.” He added that these issues are not only diagnostic; they also affect the collision repair side. “This technology isn’t going anywhere; it’s not a fad,” Rodenroth said. “We have to prepare ourselves as best we can.” However, this isn’t a “one size fits all” type of adjustment. Rodenroth said the measurements owners need to take to keep their shops up-to-date rely heavily on a variety of variables, including what state they’re in or whether they’re located in an urban or
Jake Rodenroth, director of client services at asTech, showed attendees how to negotiate pre and post scans
At 6:45pm, guest speaker Jake Rodenroth, director of client services at asTech, took the podium. He covered diagnostic solutions and services
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rural area. “There are going to be some new requirements in Southern California that will change the current standards for emissions tests,” said Rodenroth.
An inside look at the UTI Long Beach classrooms
“As a result we will continue to see more clean diesel engines and small displacement gas engines built around efficiency, which will include turbo-charging and supercharging as well as start/stop and cylinder deactivation.” Along with EV and Hybrid vehicles, Rodenroth said these exotic propulsion systems can create additional challenges for collision repairers when they require service. For shops in rural areas that may have fallen behind on OEM requirements due to a lack of resources, Ro-
denroth said now is the time to get caught up before it’s too late. “Shops use platforms like CCC and Outlook every day and feel completely comfortable navigating the programs. Shops must implement OE service information programs into their daily duties in a similar fashion,” he stressed. “Manufacturer service information sites provide the best resource for properly repairing the vehicle. I recommended subscribing to them if there’s a particular car you work on frequently; some of them are even free.” Rodenroth added that shops need to ask themselves, “What are the trigger points in my business when we de-
cide we need to go look?” He said the answer is right when that customer walks in the door. Don’t commit to repair a vehicle you don’t quite understand or lack the training and equipment to service. Another topic Rodenroth discussed was the difference between aftermarket pre/post scan equipment and OEM pre/post scan equipment. “At asTech, we tested the two side by side and noticed a pretty big difference, specifically around module counts, build data, functionality and updates,” he explained. “Everyone wants to talk about it, but we actually proved in a lab that OEM scanning equipment is the better choice.” Rodenroth said if asTech could’ve taken the cheaper option, they would have. “At asTech we spent over $600,000 on OEM scan tools and growing to support our client shops in the field,” he said. “We recently incorporated mobile into our busiAttendees of the June 22 CAA meeting were able to view ness to support our remote some of the repair projects the UTI students had been working on operations. We truly want to
FIX what we find.” Rodenroth has 17 years of collision repair and mechanical experience and is Jaguar Landrover structural alu-
minum certified. He previously worked for ABRA Auto Body & Glass as part of their corporate operations and integration team. “The discussion was well-received and informative,” said Shamam. “It was great to meet more shop owners as well.”
For more information on CAA, visit calautobody.com. For more information on UTI Long Beach, visit www.uti .edu/campus-locations/longbeach-ca.
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Shop Strategies with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Smith Brothers Focus on Exceptional Customer Service While Dividing Time among Three Locations At Smith Bros Collision Center and Truck Accessories, brothers Chad and Adam Smith work hard to ensure every repair is a positive experience for their customers. “We believe our customers come first and great service is something they deserve,” said Chad, co-owner of the Mississippi-based business. “Through
The McComb location was acquired by Smith Bros Collison Repair and Truck Accessories in 2004
continuing education and process improvement, we empower our team with knowledge to serve our customers and exceed their expectations.” In 2000, the brothers acquired a dealership shop in Brookhaven, MS, that was shutting down. Adam was 21 years old at the time and had a few years of experience in the body shop industry, while Chad was 28 and had a background in finance and accounting. The Smith brothers rented the building from the owner of the dealership, kept the same team of employees in place and named the shop Smith Bros Collision Center and Truck Accessories. Four years later, they acquired a second location in McComb. A third location was added in September 2015 in Hattiesburg. Autobody News talked to Chad about the family-run business and how the brothers operate three locations while focusing on excellent customer service and staying active in the industry.
As a family-owned business, Q: how have you and your brother divided responsibilities?
A:
When we first started and grew from one to two shops, it made sense that one of us primarily stayed at one of the locations. At the time, we had to manage the individual shops,
which prevented us from expanding the business. When we opened the third location, we realized that we couldn’t be in three places at the same time. We promoted someone from within the organization and hired general managers who could handle day-to-day operations. It also enabled us to focus on growing the business. We are now able to manage operations from any of the three locations. Neither of us just put our feet up and work from home. Adam or I are always at one of the shops, although we’re not necessarily on the same schedule. Sometimes we’re both at the same place, depending on what is going on at a certain time.
Working in a family company Q: can often be challenging. Can you share any advice with those in a similar situation?
It has been a good experience A: for us. Fortunately, we haven’t had any issues working together. I
you want to run and what you want to achieve.
long-term relationships with our customers.
car and truck mechanical repair shop. We also provide a great selection of truck accessories at each of our three locations. In our part of the country, trucks are very prevalent. We might have a customer who has purchased a new or used truck and he/she wants to add certain things to it, such as a bed cover or step bar. By selling truck accessories, we potentially have an up sale. We try to stock items that make someone’s ride “one-of-a-kind.” This includes access to a complete line of coolers and freezers. In addition to making a retail sale, it gives us an opportunity to build
our customers’ vehicles in the proper manner according to manufacturers’ specifications. Over the past few years, we put a lot of effort into obtaining our OEM certifications and are currently certified with most of the major players. I believe only one in 10 shops will exceed or meet the standards for these certifications. We are also working on becoming I-CAR Gold Class and are on track to be Honda ProFirst certified. On average, accidents occur every 10-12 years, and some reports say 1517 years. Although it’s not a normal
How has offering additional What is the importance of havQ: services to collision repair benQ: ing OEM certifications? efited Smith Bros? One of our goals is to be a bestIn addition to collision repair A: in-class collision repair busiA: work, we have a full-service ness. We make every effort to repair
See Smith Brothers, Page 48
think one of the main things is having a good understanding that family comes first. It’s so important to always put family above anything businessrelated. Make sure you are on the same page knowing what your end goal is as far as where you want your business to go.
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The reception area at the company’s Brookhaven location
Ask the tough questions. Do you want to have a business that relies on insurance relationships and profitability in order to be sustainable and not necessarily focus on the customer? I’m not saying the two are exclusive to one another. Or do you want to have a business that focuses on customer relations and still be profitable? It’s critical to make sure you both have the same idea about the business model
46 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
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Continued from Page 46
Smith Brothers
occurrence for most customers to get into an accident, the industry tends to see repeat customers. It’s important to build a relationship with them so they are educated on the repair process and feel comfortable doing business with your shop. Part of this is having OEM certifications to provide another level of comfort to customers. Being OEM certified gives you another feather in your cap with your customers showing them that you’ve taken the initiative to make sure your employees are trained through the proper channels. It’s also something else you can market and something your competitors might not have.
How has your involvement in an Q: industry association been helpful to your business?
We’ve been members of the Mississippi Collision Repair A: Association (MSCRA) for the past
15 years and I’m the Secretary-Treasurer on the Board of Directors. Many times, fellow shop owners feel that being a member of an association might look unfavorable to their insurance partners, but it’s definitely doesn’t. The purpose of a trade association is not to bind together for the greater good and be adversarial to your insurance partners and collude, because that’s illegal. The purpose of an association is to educate. It helps shop owners learn about new products coming out as well as new processes and ideas that you can implement to improve your business. That might mean profitability, production or employee retention. I think the biggest thing to gain from being part of an association is giving yourself the opportunity to learn something you can take back and apply to your business. In addition, the networking is tremendous. For various reasons, many collision repair facilities have looked at the shop across the street, across town or even in the next town as competitors. Although we are competitors, there’s another side of that relationship that we’ve always neglected—networking. An association will allow or should allow you to network with the same people who are fighting the same battles that you are fighting, so you can try and learn from one another.
Can you tell us about the recent Q: consumer guide released by the Mississippi attorney general and how
will it be helpful to all parties who were involved?
I was one of the members of A: the Mississippi Auto Repair Task Force that provided feedback for
the Consumer Guide to Insurance and Auto Body Repair. I feel that it will help the industry simply because it’s a
members who share the same beliefs that we do. We try to always put customers at the forefront in whatever decisions we make and make sure that when the time comes to deliver the vehicle, they are satisfied. It’s important to not be shy of that relationship or standoffish. Instead, build a relationship with your customers that you can be proud of and serve them in a way they want to be served.
With more than 1,200 followQ: ers on Facebook, how have you been using social media?
We are mainly using it for conA: sumer awareness and education in our business. We let customers
In September 2015, the company added a third location in Hattiesburg
document produced by a third-party outside of our industry—the attorney general’s office—which is focused on consumer awareness and consumer protection. The attorney general was trying to gather all the information by building this taskforce composed of body shops in the state, as well as insurance representation, OEMs and even aftermarket representation. It was a good collaboration of all entities involved in the repair process and the end result is a document that I believe is unbiased. The document provides information for consumers so they really understand what questions to ask about their insurance policies, as well as their rights when choosing a repair facility and the differences between parts usage. If you look at the document, it even says what consumers should do when they pick up their vehicles to hold the repair facility accountable so they are assured of receiving a proper and safe repair. It was a great effort among all involved and I don’t think it was sided toward any one party. I think it was a well-weighted out document that ultimately did what it was supposed to do, and that is to educate the consumer on their rights.
Q:
Smith Bros has received very favorable online reviews from customers. What sets your company apart? I honestly think we have good A: employees who are good team
48 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
know about our retail side and the different accessories we sell as well as our service center. Facebook is so user friendly— you can post pictures and articles from your phone. Shops can take beforeand-after pictures and post them to their page. You just need to ask your customer first to make sure it’s OK that you are using pictures of the vehicle. We also found that if you follow certain industry-related pages, you can share articles on your own business
Facebook page. There are no limitations on social media. There is always more that you can do and we’re not using it as well as I think we should. We have a relationship with a third-party company that manages our website and sets up our Facebook posts to go out three times a week, 30 days in advance. They probably determine 80 percent of our Facebook posts, but we still retain the right to do individual posts as we see fit. Originally, I was trying to be so intentional and methodical with Facebook and really think it through. I finally realized that it’s better to just be free form. If there is something that is related to your business and you think it is of value, post it on Facebook! Customers are going to look at it. Even if they don’t click on it, if they are looking through their feed they are going to see your post and your company name and that’s all you really want. You want to give them information that is of value to them and you still want that front-of-mind awareness that they constantly see. Then, in the event they might have an accident, your business name comes to mind.
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tendees at the meeting. “We believe FIO is an unnecessary federal entity,” Stringer said. She said state regulators suffiother things, that legislation created ciently oversee insurers, including “rethe Federal Insurance Office (FIO), solving more than 2 million consumer which some viewed as a step toward inquiries and complaints in the past increasing federal regulation of in- year.” surance, something that has previOne such regulatory agency, the ously been left almost entirely to the Pennsylvania Insurance Department, states to handle. also had a speaker at the meeting who Redding said the FIO seemed open to the idea of was given limited authority, pursuing several suggestions and “unfortunately it failed made by CIC attendees. its first series of tests, that we David Buono, a consumer liwere all very hopeful about, aison for the Pennsylvania dealing with just studies” of Insurance Department, noted the need for additional fedthat his agency oversees the eral regulation of insurance. fifth-largest insurance market ASA’s Bob Redding “They were late, and not said the Republican- in the country, and the 14thas strong as they should have controlled Congress largest in the world, larger been,” Redding said of the than the insurance markets in is likely to scale back regulation FIO reports. India, Australia and Spain. on the financial That has added fuel, he His agency keeps an eye on industry said, to Congressional argumore than 1,700 insurance ments to scale back or eliminate the companies, and licenses more than FIO as part of Dodd-Frank reforms. 200,000 insurance agents. State insurance regulators also “Last year we handled 12,329 agree the FIO should be on the chop- complaints, and took 46,993 phone ping block, Brooke Stringer of the calls,” Buono said. “We recovered alNational Association of Insurance most $3 million for Pennsylvania conCommissioners (NAIC) told CIC at- sumers.” Continued from Cover
Insurance Regulator
He said steering of consumers to acknowledged. “But really what would insurers’ preferred shops is “one of the help us is if the consumer would file it, things we do hear about,” and he said because we get a little more informathe Department offers a guide on contion about what was said and how it sumer shop choice; it recommends that was said. We can work through that consumer’s choice be based on the with the consumer.” shop’s longevity and reputation in the Aaron Schulenburg of the Socicommunity, the availability of a lifeety of Collision Repair Specialists sugtime warranty, and a history of workgested that Buono’s Department might ing with the insurer involved in the want to review a video public service claim. announcement put out by the Buono said he think it’s Montana Department of Inunlikely that insurers are disurance some years ago that rectly forcing someone to addressed the more subtle take their car to a particular forms of steering. shop. “That’s actually a really “What I worry about great idea,” Buono said of are…where a person says, Dave Buono of the such a video, saying it could ‘You know Bob’s Body Shop Pennsylvania Insur- be something the Department ance Department just takes a long time. But we could include on its Facebook can get you in this shop right expressed openness page. “That’s something you to the idea of using away,’” Buono said. “That’s could almost role-play to help new tools to steering. So we want to make educate consumers consumers…understand what sure those types of conversa- about steering and steering actually is.” the limitation of tions aren’t happening. The Another CIC attendee photo appraisals choice is up to the owner.” suggested Buono’s DepartHe was asked whether complaints ment review two Illinois Department to his Department about steering have of Insurance consumer guides on what to come from the consumer or if they to do if filing a claim with your own can be filed by a shop. insurance company, and what to do if “We’ve had shops file the comanother party’s insurance company is See Insurance Regulator, Page 50 plaint on behalf of the consumer,” he Original BMW Parts
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CARCO Announces the Launch of SafeRIDE Certified
CARCO, a leading provider of mobile technology that helps prevent automobile insurance fraud as well as background screening and monitoring services, has released SafeRIDE Certified, an independent vetting service that monitors both the driver and the car that riders use for appbased rideshare services. SafeRIDE Certified is a risk monitoring and fraud prevention management solution for both the driver and the vehicle. It ensures that each driver displaying the SafeRIDE Certified shield in the app and on their vehicle undergoes ongoing monitoring by CARCO. SafeRIDE Certified also certifies the clean title and possible fraud events, and its in-house team of experts validates the vehicle. Will Pagan, CARCO’s Senior Vice President states, “We are excited to introduce SafeRIDE Certified to the ridesharing market as it incorporates a comprehensive solution to the complicated issue of driver and vehicle risk management.”
www.autobodynews.com Continued from Page 36
Use of PartsTrader
prime and block process.
5 years ago in the collision repair industry (August 2012) In New Zealand where a version of PartsTrader was first developed in 2003 for the largest insurer in that country, nearly all insurers have since adopted use of the system. Does State Farm foresee PartsTrader being available for use by other U.S. insurers and shops outside of the Select Service program? “Too early to tell,” State Farm’s George Avery said, “but State Farm worked with PartsTrader with the intent to have a tool flexible enough for anyone to use.” Avery has said that part of the reason State Farm mandated use of the system by Select Service shops in the four pilot markets is because a “critical mass” of both shops and vendors was needed in each market to make a test viable. But does State Farm foresee eventually making use of PartsTrader an option (just as it does not mandate
Continued from Page 49
Insurance Regulator
handling the claim. Jordan Hendler of the Washington (DC) Metropolitan Auto Body Association told Buono that Pennsylvania’s recently-enacted regulation allowing the preparation of estimates using only photos was modeled after a similar regulation in Virginia. She asked if Buono’s Department was concerned about consumers getting insufficient settlements if they cashout based on such estimates, or that potential vehicle safety issues aren’t being pointed out in such situations. “It’s one of those things I worry about,” Buono said, noting that state lawmakers, not his Department, enact such regulations. He said he would prefer photo appraisals only be used for minor damage, but he also noted his Department has not received complaints from consumers about insufficient settlements. Hendler asked if perhaps there could be more required disclosures on photo appraisals to alert consumers to their potential limitations. “I think that is something that I which estimating system a shop uses) given that the insurer already has other means to measure a shop’s performance and given that State Farm believes the system will prove beneficial for shops (and thus would not need to be required in order to gain acceptance)? “Again, too early, but our vision would be to have all Select Service repair facilities use the tool,” Avery said. – As reported in CRASH Network (www.CrashNetwork.com), August 13, 2012. Though rumors – often passed along by PartsTrader personnel – of other insurers adopting use of PartsTrader have circulated for several years, no other insurer has mandated use of PartsTrader.
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50 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
could absolutely look into and take back to see if a disclaimer of that nature should be added or could be added,” Buono said. “It’s something we could talk to our legislative liaisons about to see what we could do to try to make a change.” Buono also said state regulations on the use of non-OEM parts are clear. “If there are aftermarket parts that insurance companies are using that do not fit, hopefully no one is saying you’ve got to use them anyway,” Buono said. “That would be an issue, in my eyes, in terms of indemnification, of putting [the vehicle] back to the way it was before that loss, no better and no worse. It would obviously be worse. If you are having those situations, don’t be afraid to reach out to us just so we can make sure we’re addressing it appropriately.” Likewise, he said, “operational safety is paramount” when it comes to
part choice. He was asked about an insurer saying all it would pay for is a used suspension for a vehicle. “If you’re putting a used suspension on a car, that is something that I would hope the insurance company and the shop would have a good enough relationship that they can say, ‘Look, this is a bad repair for x, y and z reasons,’” Buono said. “I know I’m living in a perfect world [but] we can’t have consumers being put in a unsafe situation. If you do have [that happening], please, let us know.”
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@Spirit One.com.
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Industry Training
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Jobbers Focus on Value-Added Services for Collision Repair Facilities with Stacey Phillips
More than 20 years ago, auto body shops routinely ordered individual paint colors from a paint distributor to repair vehicles. “You’d order it by the job,” explained industry veteran Joe Mattos. “That’s where the origin of the word ‘jobber’ came from.” Over time and as the process evolved, jobbers placed paint mixing systems in shops where techs could mix their own colors. Today, “jobbers,” often referred to as PBE (paint, body and equipment) distributors, are taking on new roles in the collision repair industry. “One of the key benefits of using a jobber is to have a partner to lean on who is up-to-date on industry trends and provides value-added services to help shops thrive in the competitive market,” said Kevin Bohte, sales manager at Mike & Jerry’s Paint and Supply. “With consolidation at an alltime high, it’s important for collision shops to really think about choosing a jobber who will be able to grow with them in an ever-changing industry.” The Louisiana company is a member of Refinish Distributors Alliance (RDA), a national organization of PBE distributors. Mattos, manager of management analytics for ComCept (a provider of distribution management software), said the PBE industry is separated into generalists, such as O’Reilly’s and NAPA, that also sell hard parts; specialists, such as FinishMaster, National Coatings & Supplies (NCS)/Single Source (which merged in 2016); and other distributors that sell only automotive paint and body shop supplies. He said most jobbers specialize in one or two of the five major automotive refinish paint manufacturers that dominate the U.S. market: Axalta Coating Systems, AkzoNobel, BASF, PPG Industries and Sherwin-Williams. “Since approximately 65 percent of a collision shop’s paint and material purchases are paint liquids, jobbers focus on selling and supporting specific paint lines and can usually gain the shop’s remaining business if the shop purchases paint,” said Mattos, who sold his PBE business—Pro Finishes PLUS—to NCS in 2013. “Abrasives, adhesives, masking and
safety items make up most of the remaining 35 percent of purchases.” Over the last several years, paint companies have been providing additional services, often becoming a onestop-shop for collision repair facilities. “This has become especially prevalent
over the last five years as the competition has increased significantly,” said Mattos. “A good jobber provides valuable services to its customers and can have a profound influence on a shop’s profitability.” According to information from The Romans Group, compiled in a report by Focus Investment Banking automotive group in May 2017, jobbers are providing more value-added services to shops including the use of technology and software, order process automation and performance metrics. There are many important considerations when choosing a jobber to ensure it is the best fit for the body shop. Not only is it helpful to ask for referrals from other shops and interview the jobber, but Mattos also suggested checking with the paint manufacturer for recommendations. Paul Derdich, western regional vice president of NCS/Single Source, said most shops choose jobbers based on relationships. “If I were a body shop owner, I would see what the company had to offer as far as business consulting and monitoring my purchases.” Once a paint distributor is determined, a shop can usually expect a long-term partnership with a jobber. “The distributor’s sales personnel then become a valuable resource for the collision shop, providing everything from equipment and accessory purchase guidance to training for the shop technicians,” said Paul Fiore, senior director of government affairs for the Auto Care Association. “While their most basic function is to provide the actual vehicle paint used
52 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
in a collision repair to the shop, that simple transaction has become much more sophisticated, reflecting the evolution of vehicle construction and paint technology,” said Fiore, who was a former shop owner and liaison to the Paint, Body and Equipment Specialists community of the Auto Care Association. “The vast majority of body shops utilize distributors to enhance their ability to run an efficient, profitable business.” “I would encourage all collision shops to seek out distributors in the marketplace who will serve them,” said Robert McKenzie, executive director of RDA. “Seek people out who are going to be more apt to have personal, direct service in the marketplace for you.”
Value-Added Services Provided by Paint Distributors:
Inventory Management and Delivery Mattos said many jobbers will analyze
a shop’s inventory and create a stocking strategy to minimize the shop’s investment in product. For example, Derdich said NCS/ Single Source offers a system that allows shops to track their inventory using bar codes. “Not only can we track paint purchases, but we can assess how many pieces of sandpaper a body man uses,” he said. “We can also do an analysis of estimates so if a shop feels like they are not profitable we can find out what’s missing.” In terms of delivery, Mattos said, “Jobbers can also make special deliveries in emergency situations so that shop production does not suffer.” Training/Education Training shop personnel is an important role of many paint distributors. This might include paint systems such as waterborne systems, color matching and troubleshooting. Whether See Jobbers, Page 56
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Techs of Tomorrow: Student Says He’s “Fascinated by Everything” in Auto Body Program by Victoria Antonelli
Justin Maldonado started taking courses at Texas State Technical College in Harlingen, TX 10 months ago. Before his “love and passion for vehicles” led him to pursue a career in collision repair, he spent his winter holiday and summer breaks painting gym floors across the state. “This is a job that I had been doing since I was 12, so I’ve never had a normal Christmas or summer break,” Maldonado explained. “Every year I would be gone for months at a time just to be able to buy my own school clothes and help my dad, who had five other kids to provide for.” Through this job, Maldonado was able to paint some of the most renowned gyms in Texas, including the San Antonio Spurs, Houston Rockets, Texas A & M, Dallas Mavericks, and University of Texas floors. “Now that I have a wife and son, it’s so hard to leave them and not miss them while I’m on the road,” he said. “This is why I came back to school; I just want a job that allows me to come home and see them at the end of the day and is good pay, along with many other benefits.” Maldonado’s father, who also
attended Texas State Technical College, supported his decision to pursue trade school. Other members of his family were not as on board. “Most of my relatives wanted me to become a doctor or lawyer, but I just
cheap products off Amazon and started painting YETI cups for gas and food money,” he explained. “I would paint the cups, put on the logo of the customer’s choice, and clear coat them as a way to help my wife pay the bills while I am still in school and am not working yet.” Maldonado said he’s enjoyed every part of his courses so much, it’s almost impossible for him to pick a favorite project. “I have been put on projects painting rims, and others where I’ve painted cars; each of them presented a new obstacle to overcome, making them all exciting to be a part of,” he explained. Texas State Technical College Student Justin Maldonado “Currently, I am working on an F-150 with rust and couldn’t see myself working in a doc- a ton of body work that I am taking tor’s office for the rest of my life,” he care of, and after, we will paint the said. whole truck then bed line the fender Despite having no recent experi- flares, rocker panels and tool box as ence in the field, Maldonado said he’s well.” catching on fast to the concept of body Maldonado will graduate in Dework, prepping, and painting. He’s al- cember 2017. He plans on securing a ready been able to use his newfound job before then. skills to make money on the side. “Early on in the first semester I For more information on Texas State bought a cheap paint gun and some Technical College, visit www.tstc.edu.
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PPG has introduced its all-new PAINTMANAGER® XI software, the latest addition to the company’s state-of-the-art Color Solutions XI product line. The all-new PaintManager XI software features critical advancements in color retrieval, mixing and management functions and offers a more intuitive workflow designed to simplify the overall automotive refinish process. The software program provides formulations for OEM cars and trucks, commercial fleets and custom colors through one convenient application. “This is a significant industryleading innovation,” said Tracey Johnson, PPG senior manager, global color IT. “PaintManager XI software has been specifically developed to help PPG customers streamline refinish operations and more easily manage and evaluate shop performance. That, in turn, yields greater productivity.” PPG Color Solution XI products are now being rolled out in the U.S. and Canada.
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Shop Strategies
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
How a PA Shop Delivers Excellent Customer Service & Receives Top Reviews with Stacey Phillips
When Jim Pfau talks to his customers at Alan’s Collision Center, he often asks if they are familiar with their vehicle insurance policy. The general manager of the Philadelphia, PA body shop said that since the average person does not have a clear understanding of their policy, he takes the time to explain the issues associated with the repair process, such as labor rates and parts usage. Alan Zeitz founded Alan’s Collision Center in 1973. Just two years later, he decided to move to Florida and sold the business to Dennis Winokur and Bob Neisser. “Our mission is to ensure vehicles are repaired safely and returned to pre-collision condition,” said Pfau, who has worked in the industry since
is important to review us. By the end of the repair, we usually wind up with a new friend. Google and Facebook are so important. Almost everyone reads reviews during a big decision and I understand the value of that. We are NOT a DRP (direct repair program) shop, and we do believe in factory certifications. The industry is slowly changing, and I believe that over the next five years, certifications will be mandatory in order to keep your doors open. We do invest in our shop annually. The equipment we own is up-to-date and well-maintained. We are also an I-CAR Gold Class shop. Alan’s Collision has a unique business model. We are certified for Ford F-150, Mercedes Benz, Hyundai, Honda and Nissan. A large percentage of our work is referred by two local new car dealers. Our employees make all the difference. They are mature and work hourly so the work is topnotch and it shows. We have 15 people employed at Alan’s and most of them have worked here Alan’s Collision Center is located in Philadelphia, PA for over 20 years. We have a he was 16 years old. “We deliver the pair of twins who started right out of best customer service and workman- high school—Mike Kochis (lead metal ship possible and put our customers tech) and Steve Kochis (lead painter). first…always.” Mike and Steve have never worked in Pfau was hired in 2012 to mod- another body shop. The brothers are ernize the business. Since then, the now in their 50’s. company has invested thousands of How has your background in dollars annually in the latest, most adthe industry prepared you to vanced equipment and training. work as general manager at the colliAutobody News talked to Pfau sion repair facility? about the importance of communicating to customers throughout the repair I spent all of my youth in my process, his views on scanning vehifather’s garage doing restoracles and the reason he thinks the shop tion work. When I was 18 years old, I consistently receives top reviews. landed my first job at Faulkner CadilYou have 19 five-star reviews lac as an engine rebuilder. on Facebook as well as five-star I was then hired at Acura of Huntreviews on Customer Lobby. Congratingdon Valley as a lead technician and ulations! What do you think sets Alan’s transmission specialist. Soon after, I Collision Center apart from others in was promoted to service manager. the industry? During my first year as a young manager, I won a trip to Aruba, all exHonestly, it is simple. Listen to penses paid for being number one out your customers, educate the of 25 for customer satisfaction. customers, and keep them in the loop. Later on, I was promoted again to Do quality work and sell yourself at the service director. I was in charge of four delivery. We show all of our customers award-winning service departments. the work performed and explain why it Our body shop manager had a heart
attack and I was asked to take over collision. This was a huge adjustment, as I
ter. It took me five years, but when I left, it was well in the black. Five years ago, I was asked to take over the store at Alan’s Collision Center and modernize it. This has by far been my biggest challenge yet, and the most fun. I have an awesome group of friends on Facebook. We exchange ideas and war stories every day.
Jim Pfau, general manager of Alan’s Collision Center
had never dealt with an insurer before. I felt it was time to move on and “fix” another business, so I went to work for a local MSO. Quickly, our store became number one in service and received numerous awards. Once I had everything dialed in, it was time to move on to my next project. I worked for a local Chevy dealer that had a dying collision cen-
How do you communiQ: cate the repair process to customers and what is the
importance of doing so?
During the first point of conA: tact, we review the scope of the damage and how we will repair it. We also inform customers about the way their insurance policy dictates what an insurance company will pay. The biggest eye-opener for consumers is See PA Shop Delivers, Page 61
Q:
Q:
A:
A:
54 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
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M-F 7 am - 6 pm Sat 7 am - 3 pm gmparts@bmcmail.com www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 55
Legalizing Recreational Marijuana Is Linked to Increased Crashes by Staff, HLDI News
Legalizing recreational marijuana use in Colorado, Oregon and Washington has resulted in collision claim frequencies that are about 3 percent higher overall than would have been expected without legalization, a new Highway Loss Data Institute (HLDI) analysis shows. This is HLDI’s first report on how marijuana legalization since 2014 has affected crashes reported to insurers. More drivers admit to using marijuana, and it is showing up more frequently among people involved in crashes. Though there is evidence from simulator and on-road studies that marijuana can degrade some aspects of driving performance, researchers haven’t been able to definitively connect marijuana use with more frequent real-world crashes. Some studies have found that using the drug could more than double crash risk, while others, including a large-scale federal case-control study, have failed to find a link between marijuana use and crashes. Studies on the effects of legalizing marijuana for medical use also have been inconclusive. Colorado and Washington were Continued from Page 52
Jobbers
classes are held at the shop or locally offsite, jobbers often hold classes for shops to ensure techs are knowledgeable about the products they use and can best utilize them for repairs.
Providing Information/Metrics Jobbers can be the top source of information for the shops they work with. They commonly collect basic data from their customers and combine it with sales data to provide materials cost analyses to shops. “This can help a shop determine areas of improvement,” explained Mattos. Additional information, such as paint and material (P&M) profitability, refinish hours per RO benchmarks, re-repair information and actual P&M sales/hour calculations are also commonly shared. “Monitoring of costs and how it relates to a facility’s business is something else we do as a supplier,” said Derdich. “That’s a huge value for a customer.” Business Consulting Increasingly, more jobbers are taking on the role of small business consult-
the first states to legalize recreational marijuana for adults age 21 and older with voter approval in November 2012. Retail sales began in January 2014 in Colorado and in July 2014 in
additional controls to examine the collision claims experience of Colorado, Oregon and Washington before and after law changes. Control states included Idaho, Montana, Nevada, Utah
A new Highway Loss Data Institute (HLDI) analysis shows states with recreational marijuana use have collision claim frequencies that are about 3 percent higher overall
Washington. Oregon voters approved legalized recreational marijuana in November 2014, and sales started in October 2015. HLDI conducted a combined analysis using neighboring states as
ant for some of their shops; however, in the majority of cases Derdich said smaller distributors will often rely more on a paint company to help them with small business consulting. Many shops are finding multiple benefits having a team of knowledgeable professionals who truly understand the business and can advise them on business decisions.
Personal Service It’s not uncommon for distributors to visit collision repair facilities on a regular basis, usually weekly, and provide relevant industry information. “In our business, we like to get to know our customers on a personal level and also take the extra step to learn as much about their business so we can better service them,” said Bohte. “We believe our relationship should extend beyond our products to value-added and other services designed to help a collision center operate to its fullest potential.” “Jobbers are rethinking their business model to deal with industry dynamics,” said Mattos. “However, the basic functions of a jobber continue to be an important link to the collision repair industry.”
56 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
and Wyoming, plus Colorado, Oregon and Washington prior to legalization of recreational use. During the study period, Nevada and Montana permitted medical use of marijuana, Wyoming and Utah allowed only limited use for
medical purposes, and Idaho didn’t permit any use. Oregon and Washington authorized medical marijuana use in 1998, and Colorado authorized it in 2000. HLDI also looked at loss results for each state individually compared with loss results for adjacent states without legalized recreational marijuana use prior to November 2016. Data spanned collision claims filed between January 2012 and October 2016 for 1981 to 2017 model vehicles. Analysts controlled for differences in the rated driver population, insured vehicle fleet, the mix of urban versus rural exposure, unemployment, weather and seasonality. Collision claims are the most frequent kind of claims insurers receive. Collision coverage insures against physical damage to a driver’s vehicle in a crash with an object or other vehicle, generally when the driver is at fault. Collision claim frequency is the number of collision claims divided by the number of insured vehicle years (one vehicle insured for one year or two vehicles insured for six months each).
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Estimated effects of recreational marijuana sales in 3 states Change in claim frequency for vehicles up to 33 years old, 2012-16 “The combined-state analysis shows that the first three states to legalize recreational marijuana have experienced more crashes,” says Matt Moore, senior vice president of HLDI. “The individual state analyses suggest that the size of the effect varies by state.” Colorado saw the biggest estimated increase in claim frequency compared with its control states. After retail marijuana sales began in Colorado, the increase in collision claim frequency was 14 percent higher than in nearby Nebraska, Utah and Wyoming. Washington’s estimated increase in claim frequency was 6 percent higher than in Montana and Idaho, and Oregon’s estimated increase in claim frequency was 4 percent higher than in Idaho, Montana and Nevada. “The combined effect for the three states was smaller but still significant at 3 percent,” Moore says. “The combined analysis uses a bigger control group and is a good representation of the effect of marijuana legalization overall. The single-state analyses show
how the effect differs by state.” Each of the individual state analyses also showed that the estimated effect of legalizing recreational use of marijuana varies depending on the comparison state examined. For example, results for Colorado vary from a 3 percent increase in claim frequency when compared with Wyoming to a 21 percent increase when compared with Utah. HLDI’s new analysis of realworld crashes provides one look at the emerging picture of what marijuana’s legalization will mean for highway safety as more states decriminalize its use. In the coming years, more research from HLDI and others will help sharpen the focus. As HLDI continues to examine insurance claims in states that allow recreational use of marijuana, IIHS has begun a largescale case-control study in Oregon to assess how legalized marijuana use
may be changing the risk of crashes with injuries. Preliminary results are expected in 2020. In addition to Colorado, Oregon and Washington, five other states and Washington, D.C., have legalized marijuana for all uses, and 21 states have comprehensive medical marijuana programs as of June. An additional 17 states permit limited access for medical use. Marijuana is still an illegal controlled substance under federal law. “Worry that legalized marijuana is increasing crash rates isn’t misplaced,” says David Zuby, executive vice president and chief research officer of the Insurance Institute for Highway Safety. “HLDI’s findings on the early experience of Colorado, Oregon and Washington should give other states eyeing legalization pause.” We thank HLDI News for reprint permission.
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Michael Linnerooth Named US Subsidiary Business Director for 3M AAD
3M Automotive Aftermarket Division announced the appointment of Michael Linnerooth to the role of U.S. subsidiary business director in the Automotive Aftermarket Division (AAD). Linnerooth has held several sales and marketing positions across the 3M Consumer Business Group during his career at 3M. His background in sales, business management, marketing, Six Sigma, business analysis and key account management make him well qualified for this role. Linnerooth was most recently the U.S. subsidiary director in consumer health care in the Consumer Business Group. He is a graduate of the University of Tulsa with a Bachelor of Arts degree in finance. He began his career at 3M in 1993.
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Air Force Veteran Credits WyoTech for his Success at Son of a Fink Kustoms by Ed Attanasio
Bryan “BJ” Barger was an Air Force jet engine mechanic for a decade and was deployed to Iraq, Afghanistan and Korea. Today, he is the owner of Son of a Fink Kustoms in Mountain Home, ID. As a 2010 WyoTech graduate, Barger, 36, gives much credit to the school that helped him find a viable and profitable career in car restoration and customization. ABN sat down recently with Barger to discuss his journey and his opinions about the industry overall. How did WyoTech set Q: you up for success in the collision repair industry,
and how has it led to owning a shop?
Do you hire veterans/WyoTech including the insurance companies, Q: grads at your shop? happy. We work hard to make sure our reputation stays as good as possible. Yes. We have a lot of retirees A: here and I like to bring them in Q: dustry How has the restoration into do body work. I work with a lot of in your state changed disabled veteran organizations around most significantly within the last 10here trying to relocate vets. I hire them
Veteran Bryan “BJ” Barger is the owner of Son of a Fink Kustoms in Mountain Home, ID, a 2010 graduate of WyoTech.
A:
I owe everything to WyoTech— that’s where I got my inspiration. The instructors are top-notch. I’ve never been in a place that offered as much instruction as you wanted. I took a ton of classes—automotive, high performance, collision, street
rod—and finished at the top of my class every time. While I was there I would stick around after school every day and pick up as much as I possibly could. I’d even stick around for the next class and help the instructor just to gather more information and soak up as much as I could while I was there.
Q: Being at WyoTech made me A: want to own my own shop because learning all that information and How did that lead to you owning your shop?
getting all that training made me a jack-of-all-trades. It made me want more. Being a veteran, you come out of the military and you want to push yourself to be the best. Being at WyoTech, one of the best schools in the country, also pushes you to be the best.
as apprentices and teach them a trade. I open up my shop to everybody because there are too many people who close their doors. My deal is if you come in and work for me for two hours, I’ll go work on your car for an hour for free. That way they’re learning. I like that they’re trying to better themselves. It’s all around great for everybody. Right now, I only have one partner in my business, and we have one apprentice. We like doing the apprenticeship program because we like to teach them.
20 years?
The big trend we are seeing is that customers don’t want their A: How has all of the new techcar back the same color it came in with. Q: nology impacted your producAlso many are moving towards graphtivity? Customer service? Marketing?
ics and customization. This trend is getting stronger in our state (Idaho). We can customize a car with aftermarket parts and make it better than when it was new for less than a traditional body shop using OEM parts.
Technology is great. Facebook A: is key to driving customers and Instagram allows you to post pic-
will never cease, although it will change and evolve over time. Do you agree and if your relationships with your insurers have changed, how and why?
In Idaho, do you still encounter Q: midnight body shops that are operating under the radar? How do
A body shop owner told me one Q: time that the tug-of-war between body shops and insurance companies
A:
I agree that our relationships with insurers have changed, but
What are the three main things you learned while attending Q: WyoTech?
The most important things I A: learned at WyoTech are that I can do it, to pay attention to detail, and
that it’s best to learn as much as you possibly can when you can. The instructors at WyoTech put so much into me; they let me know that I can do it. They taught me to pay attention to detail and about the business. They pushed me, and inspired me to start my own shop. I owe everything to that place.
Q:
As a body shop owner/restoration company, what are your top concerns?
A:
My top concerns are keeping the doors open, keeping customers flowing and making sure that good relationships are kept with other body shops. I want to keep everyone,
58 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
for us they have gotten better. They want to save money by using aftermarket parts – I suggest using aftermarket products with a warranty. The insurance guy in town sends customers to my body shop all the time. I often hear “I should get in an accident so I can get my car fixed” and I consider that a compliment.
Online?
tures and hook a younger generation that is looking for graphics. We are surrounded with social media, which is why I created a social media team to drive more attention.
these shady businesses affect your bottom line? See Air Force Veteran, Page 60
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Continued from Page 58
Air Force Veteran
A:
We encounter midnight body shops a lot. They don’t affect our bottom line—they weed themselves out. The part that frustrates me the most is redoing the poor work they did on someone’s vehicle.
Imagine this industry in 20 Q: years, and share your vision. Twenty years from now it will A: still be pretty much the same. You’ll still have to fix dents and dings
and chips here and there. We also do a lot of custom work, and people will al-
Are you constantly asked by Q: your insurance partners to incorporate more aftermarket and
recycled/remanufactured parts into your repairs? Are some of these parts OK to use, or would you want to use OE parts on every repair if you could?
A:
We are the ones recommending aftermarket parts to the insurers and customers. I prefer aftermarket, because I can make them fit better. We can cut and trim the parts and do a little customization to make it fit better than it did originally. Believe it or not, it’s really affordable. If more body shops were to offer custom work, they would see a lot more productivity and more people coming in.
restoring a 1966 Ford Bronco for TKO Clamping Systems called “Norma Jean” to appear at this year’s SEMA show for TKO Clamping Systems. We’re taking this diamond in the rough and turning her into a big star, and then taking her to Vegas! This is our first SEMA build and we are working with a lot of local artists on this project, so we’re really excited.
Snap-on Introduces ETHOS Edge
The Snap-on® ETHOS® Edge full function scan tool takes entry-level diagnostics to a new high in performance and coverage. ETHOS Edge delivers the scan tool functions that technicians expect from Snap-on including codes, live data graphing, functional tests, relearns and adaptations. It provides coverage for nearly 50 domestic, Asian and European vehicle makes dating back to 1983, as well as OEM-specific coverage for over 100 vehicle systems. Timesaving features include Auto vehicle ID to read the VIN so technicians don’t have to and One-Touch Code Scan and Clear, which reads all available vehicle systems to help technicians get moving when they aren’t sure which system is the root cause. The Steady-Charge battery system in the ETHOS Edge charges the lithium-ion battery from the vehicle, eliminating changing or charging batteries. To learn more about the new ETHOS Edge, visit us online at http://diagnostics.snapon .com/ ETHOSedge.
What would you say Q: to other veterans who are considering a career in the collision repair industry?
Barger and his crew are working hard on their 2017 SEMA build by completely restoring this 1966 Ford Bronco for TKO Clamping Systems
ways want to customize their vehicles. There will always be aftermarket parts and accessories and custom paint. And even if cars are all automated, people will still want hot rods and street rods.
What are you currently workon? Q: ing One of the restorations we’re A: doing right now is completely
It’s a good industry to A: get into. I would highly recommend going the custom
way, but the collision industry would be great to get into. There will always be wrecks. You’re always going to have people getting into fender-benders, so you’re always going to have work. You’re always going to be able to put food on the table and it’s honestly not that hard; it’s a fun job to do.
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Continued from Page 54
PA Shop Delivers
always aftermarket or salvage parts usage. They are always under the impression that if they demand OEM parts, the insurance companies will simply say OK. We explain the entire process and how we interact on their behalf to get the claim paid correctly. We continually update consumers throughout the repair process. We make them aware of any issues that require their attention regarding the insurance claim. We also show them industry publications and arm them with information to refute an insurance script. I have always believed that an informed customer is a good customer. Our repair process is not anything elaborate. We blueprint the repair after a complete tear down, order parts through CollisionLink and research ALLDATA for a correct repair. A work order stays with the vehicle and is quality checked at each hand-off point. We match parts for correctness and then monitor the cycle time in the office. We also use our paint scale in the front office to determine the true costs of repair. Every file has the quality control
sheet, ALLDATA research and electronic notes among our staff. When our customers see everything in place, it gives them a sense of confidence.
Q:
In your opinion, what is the importance of scanning vehicles and what steps have you taken to explain this to consumers, employees and the industry in general? This is a big topic! It is not only A: important, but also a legal obligation. Can you imagine if a repair shop
did not scan and calibrate the collision avoidance system and the owner was in an accident as a result? Personally, I do not pre-scan every repair. Pre-scanning, in my opinion, is to catch any system failures early in the repair process. If a vehicle is in for minor body repair, I do not see the need to pre-scan. However, those vehicles will always get postscanned and calibrated. This is extremely important to review with the owner of the vehicle prior to the repair. We arm them with the position statement from the vehicle manufacturer and explain why it is important. We also explain to the owner why aftermarket scan equipment cannot properly see all of the data. We use an outside vendor
that has OEM software, with the exception of Mercedes-Benz. I have been heavily engaged with one insurance company that is flat-out refusing payment to the vehicle owner. This insurance company is one of, if not the largest, in our country. I have spoken to the managers there and they hold the position, “…that if there is no light on the dash, the vehicle does not need a scan or calibration.” This is oldschool thinking and despite the numerous articles and position statements I have provided, they will not change their point of view. As a result, I have made several complaints to the Pennsylvania Department of Insurance, contacted our Attorney General Josh Shapiro, who happens to be one of our customers, and wrote to every local news outlet. I will not give up until I get this resolved for the consumer. As far as the industry goes, I am very disappointed. I am disappointed by how many shops do not follow OEM procedures. The OEMs have set the standard for which we are to repair the vehicle properly—not the insurer. The industry is in turmoil, but it will get better as we weed out the poor repair shops that do not care about safety.
Women’s Industry Network to Host Educational Webinar Featuring Mike Jones
The Women’s Industry Network will host a 30-minute educational webinar titled “Be Deliberate” on August 2nd at 2 p.m. EST. Mike Jones, President of Discover Leadership, will continue the powerful message that he delivered at the WIN Annual Educational Conference in May 2017. “We are excited to see Mike Jones return after his outstanding address at the WIN Conference to conduct this interactive video session for our membership,” said Melissa Miller, Membership Committee Co-Chair. Mike will discuss how most of us live every day in our comfort zones, with certain patterns of thinking and ways of behaving. When we live in our comfort zone, life is happening to us. Learning to “Be Deliberate” means to be purposeful, willful and intentional. WIN encourages all members to register for the event through the following link: http://conta.cc/2sR5WyF
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Service King Welcomes 34 Technicians to Rapidly Growing Apprenticeship Program Service King Collision Repair Centers® continues to add to its quickly growing Apprentice Development Program as the organization today welcomed 34 technicians at seven elaborate signing day events held across the country. The events sig-
naled the start of a hands-on 52-week paid training program designed to prepare aspiring technicians for a successful career at Service King and in the collision repair field. Service King’s popular apprentice program has now more than doubled in size since its unveiling in 2015 with more than 40 programs underway in 16 states across the country. The latest signing day comes less than a week after the White House and President Trump signed an executive order aimed at expanding apprenticeships and vocational training programs in the U.S. “The entire Service King family is thrilled to welcome our latest sign-
ing class to the Apprentice Development Program,” said Tyra Bremer, Service King Vice President of Talent Development. “This is an exciting step in their careers and we look forward to providing a challenging, hands-on path towards rewarding careers at Service King.” The official signing day events took place in Fort Worth, TX, Chicago, Denver, Pasadena, CA, Santa Clara, CA, Columbus, OH, and Charlotte, NC. The Service King Apprentice Development Program officially launched in 2015 featuring a 52-week paid training program for aspiring auto body technicians across the U.S. Today, it continues to grow as demand for experienced, skilled technicians increases across the industry. Service King’s unique program provides personalized instruction and training to technicians by capping individual programs at less than five apprentices per supervisor. Each class is immersed in a detailed, progressive curriculum that fosters a focused learning environment allowing apprentice technicians to master each element of the collision repair process. Furthermore, all learning takes place in the live setting of a Service King Collision
Repair Center. The Apprentice Development Program has been widely heralded across the collision repair industry and featured in the media, including recent stories by Dallas CBS affiliate KTVT. Aspiring technicians interested in joining the Apprentice Development Program are encouraged to visit ServiceKing.com/careers to connect with a representative from the Service King recruiting team. Service King, one of the fastestgrowing providers of high-quality collision repair service, operates 324 repair centers in 24 states across the U.S. For more information on the organization, or to find a local repair center, visit www.ServiceKing.com and follow the company on Facebook, Twitter and Instagram.
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Spectra Premium is First Radiator Supplier to Join CAPA
The Certified Automotive Parts Association announced that Spectra Premium Industries Inc. has joined the CAPA Program as a Full Participant to certify its parts to the CAPA 601 Radiator Standard. Spectra Premium Industries Inc. is an international supplier of automotive, truck and heavy duty parts with over 1,500 employees across the world. It currently produces and distributes over 1,500 different radiators worldwide. The CAPA 601 Radiator Standard includes requirements for performance testing, material composition, dimensions, appearance, function, construction and retaining features, and fit. A key element in the CAPA 601 testing procedure is confirming that the radiator will perform the same as the car company brand radiator over time. “Supporting quality initiatives, such as the CAPA 601 Certification has always been a main driver of our ongoing commitment to providing the aftermarket with the highest level of quality parts.” said Jason Best, Senior Vice President Aftermarket, at Spectra Premium.
Chief® Heavy-Duty Rivet Gun Makes Easier Work of Truck Cab Repairs
Chief’s Heavy-Duty Rivet Gun puts out 10 metric tons of compression force—plenty of power to install new rivets or press out existing rivets in the thick steel and aluminum used to build heavy-duty truck cabs. It also uses 8 metric tons of tension force to hydraulically retract the punching tool from metal sheets easily and simply – with just the push of a button. “The Chief Heavy-Duty Rivet Gun has the advantage of strong twoway operation – it powers out and it powers back,” explains Lee Daugherty, director of collision sales, the Americas, for Chief parent company Vehicle Service Group (VSG). “This means it smoothly punches in selfpiercing rivets, and then easily powers back out of even the thickest sheet metal materials. It delivers the force needed to repair today’s cab structures, as well as future trucks that will likely incorporate even more highstrength metals.” The pneumatically driven Chief Heavy-Duty Rivet Gun includes a dial to provide infinite adjustment of the working pressure. This allows the technician to control the output compressive force as well as the retract
tension force. The rivet gun can be used to press out or install self-piercing rivets and to punch precisely sized holes to accept flow form or blind rivets. Optional attachment kits are available to install blind rivets as well as blind nuts and blind bolts. Because the Heavy-Duty Rivet Gun is larger than standard rivet guns in order to deliver higher power output, Chief offers it with a new optional cabinet equipped with a boom. The boom takes some of the weight of the gun off the technicians’ shoulders to reduce strain and improve mobility. The Chief Heavy-Duty Rivet Gun is part of the full line of heavy-duty collision repair equipment available from Chief, including: Centurion heavy-duty frame rack, Cam Scan HD™ photogrammetric measuring system, Vulcan ADU adhesive debonding unit, Rotary® Lift Mach Series mobile column lifts, Chassis-Liner Heavy-Duty Trucker™ frame rack. To learn more about the Chief Heavy-Duty Rivet Gun, visit chief automotive.com/Shop-Tools/HDRivet-Gun/, contact your local Chief distributor or call (800) 445-9262.
62 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com
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Dealers See Growth for NIADA Convention and Expo 71st Annual Event Breaks Last Year’s Record for Overall Attendance and Again Draws Rave Reviews. For the second year in a row, the NIADA Convention and Expo broke previous records. The final count is in, and it shows the 2017 Convention, held June 12-15 at The Mirage in Las Vegas, edged the 2016 total for most attendees in the 71-year history of the event. Overall attendance was up for the fifth consecutive year, and the number of dealers was also up from last year. And just as in 2016, nearly 20 percent of those attending the 2017 convention did so for the first time. The reviews from attendees and exhibitors were overwhelmingly positive to see what they’re saying). Among attendees who responded to NIADA’s post-convention survey, 98 percent said they were satisfied with the event, 88 percent said the Convention met their objectives, 94 percent said the information presented was very useful, 98 percent said the speakers and panelists were very prepared and more than three-fourths gave the sessions “good” or “excellent” ratings. In addition, 95 percent said they are likely to attend future NIADA events, 96 percent said they are likely to recom-
mend NIADA events to others and 99 percent said they plan to engage with NIADA in the future. “An awesome investment in my business,” wrote Larry Schmidt of Countryside Auto and Cycle in Fond du Lac, Wis. “Four days of industryspecific training along with trade vendors to improve my business – that’s an investment every dealer should be making. I’ll be back next year.” The 170-plus vendors and industry partners that exhibited in the 60,000square foot Expo Hall also felt they got their money’s worth – 84 percent of respondents to the exhibitor survey rated the value of their NIADA Convention experience “excellent” or “good.” Alvlis Tabaks of Elva DMS said his company exhibited at NIADA’s event for the first time and “the experience we got there was beyond our expectations.” “The event structure was perfect and gave the right balance between the sessions and the Expo,” he said. “So we managed to get useful information from industry experts and had enough time to interact with attendees at our booth.” The exhibitors gave the Convention a 90 percent overall satisfaction rating, while 95 percent approved of the level of decision-makers among
Thieves Make off With Body Shop’s Trailer and $200,000 in Tools
the attendees and 90 percent said they are likely to be back to exhibit at the 2018 Convention and Expo—which was held June 18-21 at the Rosen Shingle Creek Resort in Orlando, FL, as NIADA’s biggest event leaves Las Vegas for the first time since 2009. Just as it surpassed its record-setting predecessor in attendance, the 2017 Convention topped the 2016 event with more sessions on more topics than any previous NIADA Convention. That included for the first time a dedicated area of focus on certified pre-owned, as well as sessions addressing retail, compliance and an even more extensive Buy Here-Pay Here component. In addition to keynote speaker Captain Richard Phillips—inspiration for the hit movie Captain Phillips—the featured speakers included many of the top names in the used vehicle industry, beginning with NIADA’s own Chuck Bonanno and Shaun Petersen. Others included leadership trainer Dave Anderson, TrueCar CEO Chip Perry, Cox Automotive’s Janet Barnard, attorney Tom Hudson, KAR Auction Services chief economist Tom Kontos, FBI Special Agent Edward Parmalee, AutoZone’s Ray Curry and NABD president Ken Shilson, among many others.
A team of auto body repair techs from the Kansas City, KS, metro area say thieves ripped them off for over $200,000 in tools and computerized car keys. Keith Starling operates KC Dent. For the past month, he and his workers have been at Legends Toyota in KCK repairing hail-damaged cars. Starling says his trailer vanished June 25 along with over $200,000 in tools, not to mention keys to around 40 cars. “This is the padlock from the trailer,” Starling said, holding up a hunk of twisted metal that had been cut from the storage trailer. Starling told KCK Police burglars broke into the 24foot trailer during the early hours on June 25. When he’s doing contract work on a thousand cars, as he’s doing in Wyandotte County, Starling says he and his crew often keep the keys to as many as 50 dealer cars. Starling is offering a significant cash reward to anyone whose information leads to the recovery of the trailer and tools. If you have information that can help police, please contact the KC Crimestoppers Tipline at (816) 474-TIPS.
Advance Auto Parts Cuts 475 Jobs as Sales Decline
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Advance Auto Parts cut nearly 500 jobs as it seeks a turnaround predicated on store upgrades after two consecutive years of sales declines. The Roanoke-VA-based company will transition from four divisions to two, just North and South, CEO Tom Greco said in a June 19 memo. He also announced plans to improve the company’s online presence to better cater to do-it-yourself customers. The company, which has more than 5,000 stores, employed about 74,000 workers as of February, according to a public filing. Advance Auto Parts spokesperson Laurie Stacy said the company had not cut any positions at its stores, where the company has been focusing its investments. “These organizational changes
ensure our structure and resources are properly aligned with our shortand long-term strategic business plan,” she said in an email. “We are
focused on productivity enhancements in areas that do not affect our customers while also significantly improving the customer experience.” A source said that the company is targeting field and corporate leadership to streamline and reduce product costs in this round of layoffs. Advance Auto Parts stock has fallen almost 28% since the start of the year.
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www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 63
When to Replace Mini-Ductor® Induction Heating Coils
While mechanics and body shop owners love their Mini-Ductor® Venom® and Mini-Ductor II, the effectiveness of these portable induction heaters – and safety – are contingent on the state of the coils used with them. Many don’t realize that these coils need to be replaced over time, but how do you know when to do so and where can you go to buy them? Coil Replacement Mini-Ductor coils are manufactured in a variety of lengths and sizes to fit inaccessible areas. Standard coils need to be replaced anytime that the metal underneath the fabric coating becomes exposed otherwise, you can get sparking and the possibility for fire, which defeats the purpose of using induction heating in the first place vs. a torch. Another sign that coils need to be replaced is if the fabric becomes noticeably brown. Each coil will last for several hundred uses or more subject to use. Bearing Buddy coils are much longer (41” to 96”) than standard coils. They need replacing when metal becomes exposed and/or turns brownish like standard coils, but also when they become brittle since they are made of finely twisted copper. Where to Buy Replacement Coils Mini-Ductor coils are available for sale through all of our domestic and
international partners. If you would prefer to buy them directly from Induction Innovations, coils are available in our online store here on this website. However, you should know that we sell them at the same price as our channel partners, though our partners offer additional discounts from sales promotions, product bundling, free shipping, or otherwise so be sure to check with the Induction Innovations partner near you first. About Induction Innovations Induction Innovations, Inc. is a family owned and operated manufacturer of high performance inductionheaters. Our headquarters and all manufacturing is located in Elgin, Illinois, just west of Chicago. Induction Innovations was founded by president Tom Gough in 2000 after the first model of the Inductor® Series was developed, which uses high-frequency magnetic fields to heat ferrous metal objects without an open flame, cutting torch time in half. The Inductor Series now includes the ProMax, Max, Glass Blaster. The Mini-Ductor® is a handheld induction heater that is now available in 110V, 220/230V and 12V (battery powered) versions. Both the Inductor Series and Mini-Ductor are used for repair and maintenance in the automotive, construction, farm equipment, industrial, and marine industries.
BASF Invests $40 Million in Automotive Coatings in North America
BASF is expanding its automotive coatings production in North America with investments of nearly $40 million over the next two years. The investments add capacity to the company’s production plants in Greenville, Ohio, and Tultitlan, Mexico.
“These investments reflect our continued market growth and underscore BASF’s commitment to developing a sustainable production platform that provides customized coatings solutions,” said Chris Toomey, BASF Senior Vice President, Coatings Solutions North America. Increased waterborne basecoat
capacity in Tultitlan and electrocoat emulsion capacity in Greenville enables BASF to continue to drive innovation through production of state-of-the-art automotive coatings. Waterborne basecoats are low volatile organic compound paint products that give vehicles their color and electrocoat or e-coat is the primer coat applied to vehicles to prevent corrosion. “BASF is a process and product innovator. We’re the global leader in integrated process and we pioneered waterborne basecoat technology as part of our commitment to social responsibility and environmental protection,” said Frank Hezel, Vice President, BASF Coatings Mexico. “Our added capacity positions us well to continue our innovations to serve our automotive coatings customers.” For more information about BASF’s Coatings division visit basfcoatings.com
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Dave’s Auto Body of Lakeville MA at 40 Yrs
Dave Rose is a busy man. While running a successful auto body shop on Taunton Street, in Lakeville, MA, he manages to find the time to train for regular participation in tri-athlete competitions, do some seasonal hunting and fishing, and gather his family at their Long Pond cottage for weekend recreation activities in the summer months. “This year, we’re celebrating our 40th anniversary,” he noted, looking back on the history of the business he started in 1977 in a rented garage in his hometown of Taunton. “How lucky we are to be business survivors for 40 years,” he said at the outset of his walk down memory lane. “The business has changed tremendously over the years,” with automotive technological advances making it much harder to return a damaged car to perfect working order. “There’s so much electronics in today’s cars” that repair crews these days must be “electricians, plumbers, and mechanics” as well as body men and painters, Rose said. Watch Autobody News for a feature story on Dave’s shop in the near future.
CIECA Uses Scans in BMS Starting June 19
CIECA, the Source of the Collision Industry data communications standards, began work June 19 on a new project to implement the exchange and transmission of scanning diagnostics results within the Business Message Suite (BMS). “Vehicle Scanning has become an integral part of the entire repair process on certain vehicles. Pre-repair and Post-repair scanning has become necessary in certain situations. The information received from the vehicle scan tool should be saved with the other Repair Order documentation for subsequent review, auditing, and other purposes. Repairers and the industry need a method to retain and exchange this data with the entire RO file,” said Darrell Amberson, of LaMettry’s Collision Inc., and author of the CIECA project request. The project is being fast-tracked to meet the needs of the industry. Contact CIECA to participate in the project. Please forward this email to others in your company that might be interested in joining the project. More information about the scanning project, CIECA, how to join, and its standards can be viewed on the CIECA web site: www.cieca.com or Fred Iantorno at fred@cieca.com.
PPG Announces Video of OEM Panel Session
The 2017 PPG MVP Conference featured a panel discussion in which representatives from Audi, Toyota, Mazda and Collision Diagnostic Services (asTech) discussed their positions on OE repair procedures, system diagnostics, and recalibration.
In this video you’ll hear from the experts as they take a deeper dive into the hundreds of onboard systems on today’s vehicles, any of which can be affected by a collision, including the repair process itself. Watch as this distinguished panel fields tough questions from some of the highest performing collision repair shops in the country. This video is now available online at the PPG MVP Business Solutions YouTube channel here: https://youtu.be/dP-AN3nRLh8
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The Right Parts. A Perfect Fit.
Order Genuine Mazda Parts from these Parts Specialists in your area
OHIO
Brunswick Mazda Brunswick Toll Free
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Polyvance Demonstrates Nitrogen Plastic Welding at SkillsUSA Competition
Last week, technical school students from across the United States gathered in Louisville, Kentucky for the SkillsUSA competition. Trades of every sort were represented, from collision repair to cake decorating.
In the collision repair technology segment, Alan Zimmerman of Vanguard-Sentinel Career and Technology Center in Fremont, Ohio won the secondary competition, and Joel Hartstack of Southwestern Community College in Creston, Iowa won the post-secondary competition. Polyvance congratulates these winners and all of the contestants who made the trek to Louisville to represent their states. In the plastic repair portion of the competition, Kurt Lammon of Polyvance presented a demonstration of a new nitrogen plastic welding component which will become an of-
ficial part of the competition in 2018. So, in 2018, competitors will be required to repair a 3” long cut and a tab using 3M’s two-part repair material and, in addition, will be required to repair a 3” long tear to the edge of the bumper with the Polyvance nitrogen plastic welder. The technical requirements of the new nitrogen plastic welding component are shown at the SkillsUSA YouTube channel, which may be reached by searching “2018 SkillsUSA Nitrogen Plastic Welding Requirements” or going to this link: http: //bit.ly/2tyEIOq To help underfunded technical schools across the country prepare for this new plastic welding requirement, Polyvance is promoting a “tech school trade-in program”. Body shops that donate their old nitrogen plastic welders (of any make) to a tech school will be able to take the tax deduction on the donation, and, when they purchase a new Polyvance plastic welder, Polyvance will provide a $300 rebate to the shop. Contact Polyvance at 800-633-3047 for more information about this tradein program.
Nicholas Schoolcraft Replaces his Father at Phoenix Solutions Group Phoenix Solutions Group announced, today, that Nicholas Schoolcraft will join the Phoenix Solutions Group leadership team, replacing his late father, Steve Schoolcraft. “Steve’s extraordinary vision and leadership have positioned Phoenix Solutions Group as the collision industry’s most innovative and comprehensive marketing consulting company,” said Tina Biancalana, Vice President for Phoenix Solutions Group. “Steve’s ambition was to build an organization that puts our clients’ needs at the center of everything we do. Every Phoenix staff member can attest to this goal as being achieved.” “The Phoenix Solutions Group leadership team has complete con.dence that Nick is the ideal person to further Steve’s vision and legacy,” added Biancalana. “Nick’s background in marketing and customer experience consulting has demonstrated his remarkable talent for developing solutions that deliver results and drive customer and employee engagement. Also, his knowledge of the traditional as well as digital marketing space will be a welcome addition to the Phoenix Solutions team.” Steve Schoolcraft passed away
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Luther Bloomington Subaru
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May 19th but collaborated closely with Nick over the past five years to help position Phoenix Solutions Group as the industry thought leader it is today. Over Nick’s career, he has spent time working with Fortune 100 clients to develop marketing and customer experience strategies that deliver tangible results. In his recent role at Accenture, Nick led many customer experience transformation projects where he identi.ed and evaluated complex customer and employee experience problems and created solutions that delivered business value, while increasing customer and employee engagement. Nick’s relentless focus on delivering value for customers – while incorporating business demands into actionable strategy – has enabled him to propel signi.cant business value through optimized processes and overall operational alignment. Before Accenture, Nick worked for a leading national media company where he helped develop digital and traditional marketing campaigns that transformed the way advertisers interact with their customers. These marketing campaigns not only increased ROI and engagement but delivered on the expected outcomes of the organization.
Direct (330) 460-7080 (330) 460-7082 Fax Mon.-Fri. 8-6; Sat. 8-4 www.brunswickautomart.com
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(262) 544-1913 Fax
Mon.-Thu. 7-7; Fri. 7-5; Sat. 8-4 parts@gowilde.com www.wildesubaru.com
www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 65
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WIN Complies with Members’ Requests for Regional Events by Chasidy Rae Sisk
In response to members’ requests, the Women’s Industry Network (WIN®) hosted its first three regional events in Southern California, Chicago, IL, and Atlanta, GA, on June 13 and 14. Ac-
Marcy Tieger spoke at WIN’s Southern CA Regional Event on June 13
cording to WIN Board of Directors member Denise Kingstrom who coordinated the events, “We had over 50 attendees in total participate in our June regional events with over 50% being non-members who were interested in continuing to participate locally. We were very happy to see the excitement and participation with these events and expect them to grow as we continue in these three markets and expand to new areas.” On June 13, the Southern California Regional Event, sponsored by BASF and Brad Mewes from Supplement, featured an industry presenta-
tion from Marcy Tieger, Managing Director of Symphony Advisors. ICAR sponsored WIN’s Chicago event which included a presentation by Elise Quadrozzi, Director of Business Development for I-CAR. Rick Fifer, North America Business Service Manager for Akzo Nobel, provided the industry update at WIN’s Atlanta event on June 14 which was sponsored by ABRA. With a strong network of over 400 members representing all segments of the collision repair industry, WIN offers many opportunities to get involved with ongoing initiatives as well as future regional events which serve to
WIN’s Chicago Event on June 13 was sponsored by I-CAR whose Elise Quadrozzi provided an industry update
conference. WIN events offer not only networking opportunities but also leadership and development opportunities,” Kingstrom stated. Responses to WIN’s Regional Events were very favorable, and Kingstrom shared, “The events were very well received and were the first time we hosted official Regional Events for both members and non-members. All of the surThe Atlanta Regional Event was held on June 14 and vey results showed extremely included a presentation by Rick Fifer positive feedback and requests “further drive and expand WIN’s mis- to continue with the events on a regular sion, provide more frequent opportuni- basis.” ties for both networking and education For more information, visit www as well as create a local network of re- .womensindustrynetwork.com.
Sherwin-Williams Ecolean™ Level 2 Workshop Scheduled for Chicago
Sherwin-Williams Automotive Finishes announced it will hold its next 2017 EcoLean™ Level 2 workshop on August 29-30, 2017 at the Hilton Chicago/Oak Brook Hills Resort & Conference Center. While there, the group will have the privilege of touring CARSTAR All Line Auto Body, one of the leading CARSTAR franchises in North America. This collision facility has completely implemented lean production principles and subsequently seen its production and profitability levels dramatically increase. The EcoLean Level 2 workshop is an extensive, two-day course that further implements the SherwinWilliams message by educating shop owners on the connection between environmentally sound business decisions and the reduction of process and environmental waste. It is exclusively designed to educate attendees about maximizing profitability by improving productivity throughout their facilities. “The best way to start to move the numbers is by scheduling efficiently, implementing damage analysis, blueprinting, and a predictable parts process. This is all discussed in our EcoLean Level 2 workshop that provides collision shop owners and managers with
sources and mentors. The events were also an opportunity to reach women who are unable to attend WIN’s annual
the tools to immediately help align their Purpose, their People, and their Process on the production floor,” says Lee V. Rush, Sherwin-Williams Manager of Business Consulting Services. He notes that EcoLean courses have been built by some of the best consultants in the industry, and will provide collision repair professionals the opportunity to relax in the company of their own peers while learning from one another over the two day period. The EcoLean Level 2 workshop curriculum includes: • Repair Planning for Rapid Throughput • Damage Analysis/Blueprinting • Parts Correctness All class materials, lunch on both days and a group dinner are included in the workshop fee. Breakfast vouchers are included with hotel room reservation. Hotel and transportation costs are the responsibility of each attendee. To register for the EcoLean Level 2 workshop online, visit our website: www.sherwin-automotive.com/ ecolean2. For more information on the Sherwin Williams EcoLean program, visit: www.sherwin-automotive.com/ ecolean or call (216) 332-8524.
Volvo Cars to Go All Electric
Volvo Cars, owned by China-based Geely Automotive, has announced that every Volvo it launches from 2019 will have an electric motor, marking the historic end of cars that only have an internal combustion engine (ICE) and placing electrification at the core of its future business. The announcement represents one of the most significant moves by any car maker to embrace electrification and highlights how over a century after the invention of the internal combustion engine electrification is paving the way for a new chapter in automotive history. “This is about the customer,” said Håkan Samuelsson, president and chief executive. “People increasingly demand electrified cars and we want to respond to our customers’ current and future needs. You can now pick and choose whichever electrified Volvo you wish.” Volvo Cars will introduce a portfolio of electrified cars across its model range, embracing fully electric cars, plug in hybrid cars and mild hybrid cars. It will launch five fully electric cars between 2019 and 2021, three of which will be Volvo models and two of which will be high performance electrified cars from Polestar, Volvo Cars’ performance car arm. Full details of these models will be announced at a later date.
Automotive Students Receive 3M Scholarships
Two students enrolled in the Collision Repair and Refinishing Technology program at Stanly Community College (SCC) were recipients of the Collision Repair Education Foundation’s 2017 3M Hire Our Heroes Veteran Family Scholarships. Tim Hefner, Sales Representative, 3M Automotive Aftermarket Division, Charlotte, NC, presented the awards to the students.
with the Collision Repair Education Foundation and provide these scholarships and tool grants to deserving
students since 2013,” said Dale Ross, US Marketing Operations Manager. “We hope this helps them complete their training and find rewarding careers in this great industry of ours.” Both students will use their scholarship funding for the I-CAR Professional Development Program, an industry recognized pro(l to r) Tim Heffner, Billy Huneycutt, Adam Foster, gram for training collision Robert Richard repair professionals in esAndrew Foster was the recipi- sential role-relevant knowledge and ent of the 3M Hire Our Heroes Veter- skills. ans Family Scholarship in the amount According to EMSI data, colliof $2,500. Robert Richard received sion repair and refinishing specialists $2,000 from the 3M Hire Our Heroes can earn $22.64 an hour (medium Scholarship, plus another $4,500 from hourly income) and 1,680 jobs will the 3M Hire Our Heroes Tool Grant. be available in the Charlotte region “3M is proud to be partnered by 2020. www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 67
68 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com