Collision Repairers Feel Downstream Effects of CDK Global Cyberattack
By Paul Hughes Autobody News
Ripples from the late June ransomware attack on auto dealership software provider CDK Global spread to the independent collision repair shops that buy OEM parts from their local dealerships, which struggled with a supply chain disruption on a scale not seen before.
them — a $100,000 GMC Denali is waiting on door clips, which nobody is sure are in the warehouse.
In the days following the attack, he was able to take delivery of “$20,000 worth of parts, and it’s on a paper ticket” because dealer computers were down, forcing them to revert to manual processes, causing significant operational slowdowns and customer service delays.
Midwest Trade Show Helps Collision Repairers Work On Their Businesses
By Stacey Phillips Ronak Autobody News
Body shop owners, managers and staff had an opportunity to participate in hands-on projects, industry training and meetings with vendors at The Midwest Collision Repair Trade Show & Conference, held May 31-June 1 in Kansas City-Overland Park, KS. The third annual event was hosted by the Nebraska Auto Body Association and Missouri Auto Body Association, in collaboration with several Midwest body shop professionals.
“We all have the same pain points, so it’s very important to come together and realize you’re not alone, and you don’t have to be the expert in all things,” said Gina Cotton,
REGIONAL NEWS
“It’s caused huge disruptions — massive problems across the country,” said Beau Bennett, owner of Kious Kountry Auto Collision Center Inc., a 16,000-square-foot shop in Waukon, IA, that relies on two dealers for parts, as “95% of the parts I put on are OEM,” he said.
Bennett had to immediately boost liability insurance as the number of vehicles stored onsite at his shop grew, held up by the sudden inability to get some of the parts to finish
“It’s not [dealers’] fault,” Bennett said. He’s worked with his vendors for 30 years and intends to stick with them.
In the late night hours of June 18, continuing through June 21, Illinoisbased CDK Global Inc., a software and data provider to 15,000 automotive dealerships, was hit by several cyber attacks, leading CDK to shutter its system, including software, data
CONTINUED ON PAGE 30
executive director of the Nebraska and Missouri auto body associations, who coordinated the event. “We might live in different areas, but we all face the same issues and strive to
Michigan Bill Aims to Ease Burden on Auto Repair
Shops
Michigan lawmakers are considering Senate Bill (SB) 867, introduced in May by Sen. John Cherry, D-27. The bipartisan legislation seeks to simplify the operational and regulatory burdens faced by auto repair shops.
The bill proposes that a motor vehicle repair business with multiple facilities can register all locations under a single registration and number if the additional facilities are within reasonable proximity, serve as extensions of the main facility,
and do not operate independently. This change could save small businesses up to $500 per facility in redundant registration fees and eliminate the need for duplicative customer documentation and exterior signage.
Another significant provision of SB 867 would allow repair businesses to renew their registration every four years instead of annually, reducing the administrative burden on shop owners and freeing up more time
Pictured, left to right, are Mike Anderson from Collision Advice, Tyler Claypool from Optima Worldwide, and Sheryl Driggers from Collision Advice.
Kious Kountry Auto Collision Center Inc., in Waukon, IA, immediately upped its liability insurance to cover the uptick in vehicles sitting on its property, waiting for parts the shop couldn’t order from dealerships in the wake of the attack.
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REGIONAL NEWS
3 Employees Survive Roof Collapse at Chicago Auto Body Shop 21
Wisconsin Resident Receives Buick Envision Through NABC Recycled Rides 28
Educate New Collision Repair Techs 46
Mass Market Cars Outperform Premium, EVs Struggle in J.D. Power Quality Study 49 New Members Join Auto Care Association Board 49
New-Vehicle Sales Show Mixed Results for First Half, Q2 2024 22
NHTSA Launches $9.5M Campaign to Combat Speeding 39
Severe Weather Driving Up Auto Repair Costs 35
Stellantis Plans Major Job Cuts, CostCutting Measures 36
Stellantis Plans Major Job Cuts, CostCutting Measures 48
42 WIN Scholarship Campaign Raises Almost $10,000 to Support Students 30
Finding Your Collision Repair Shop’s Niche Could Be Key To Success
By Abby Andrews Autobody News
One of the most interesting and innovative operators in the collision repair industry, Michael Giarrizzo Jr. is the CEO of DCR systems, a dealer-focused body shop group with four distinct business units and 10 locations, including six independent and four licensed franchise shops.
Giarrizzo spoke to Cole Strandberg, host of The Collision Vision podcast, driven by Autobody News, about his 19-year-old company’s unique business model and the current and future challenges of the industry as a whole.
Early Challenges and Lucky Breaks
Giarrizzo is a third-generation repairer. His grandfather started a mechanic shop in 1946 and his father opened a collision repair shop in the 1960s. From there, they built a family business, which Giarrizzo joined after finishing school, that grew to four locations before being acquired by Sterling Autobody Centers in 1999.
Giarrizzo launched DCR Systems in 2005, a series of independent collision repair centers, each connected with a local automotive dealer.
Giarrizzo said DCR Systems’ business model proved to be ahead of its time when it opened in 2005, as repairs have become more specific to each car brand over the nearly two decades since.
“It’s really gone to where if you don’t have this specific training for the manufacturer, you don’t have a whole lot of business touching that vehicle,” Giarrizzo said. “No longer is it [just] about how pretty that repair is. It’s peeling back the onion and understanding, is this car actually reconstructed in a way that it’s going to respond the same way?”
DCR Systems’ Business Model
Giarrizzo described DCR Systems’ four business initiatives, all connecting to the mission to deliver consistency and quality.
“One is stores that we operate,” he said. “We’re technically an independent. But we connect with auto dealers, sometimes even cobrand with them, represent them through certification.”
Second, DCR Systems now has licensed franchise stores. It began licensing just before the pandemic, and now has four.
“That’s been an eye-opening experience,” Giarrizzo said. “When you hand your playbook off, can somebody else implement it? Can
they grasp what that vision is through that playbook and be able to execute it? And how do we support that? So that’s been an interesting endeavor.”
Third, DCR now has a location that performs calibrations, and a second in the works.
which is not as easy for DCR Systems, since its shops are “out of network” for insurers.
“It’s a challenge for preparing the customer without scaring the customer, and then working out a reasonable settlement [with their insurer] without compromising the work that we’re going to do,” Giarrizzo said. “It’s not the greenest path. So we don’t suggest everybody run out and try this at home.
DCR Systems is headquartered in Mentor, OH.
“The main reason there, again, is around that safe and proper repair and making sure that we can take responsibility for that calibration and know that it’s done correctly,” Giarrizzo said.
Some of DCR Systems’ niche stores, focused on one or two manufacturers, also do their own calibrations to those automakers’ standards, Giarrizzo said.
The larger location supports more than a dozen manufacturers, and has grown to the point it is taking on outside work.
“[Calibration] is important today and you fast forward another five or six years down the road, it becomes even more important,” Giarrizzo said.
Fourth, DCR Systems developed CollisionClarity, its own software application that “essentially forces us to document everything that we do, whether it be through pictures, videos, position statements, manufacturers work, instructions, any industry supportive documents that we’re building,” Giarrizzo said.
The software then matches that supporting documentation to line items on a repair plan.
DCR Systems’ shops have “a completely tooled environment where we own every tool, every piece of equipment, all set up strategically by the people doing the work,” Giarrizzo said.
The technicians also complete formal quality verifications after every key step before moving on to the next, documenting them manually and electronically.
It’s all part of an effort to ensure a consistent, quality repair that creates a “customer for life,” Giarrizzo said,
“You have to balance between that customer experience and that concession that you’re going to make. It really digs deeply into our profitability and our ability to reinvest in the company. So it’s a balancing act today,” he said.
Establishing Partnerships with Dealerships
Giarrizzo said independent repairers interested in developing a similar business model must realize it’s a huge risk for a dealership to refer a customer.
“We’re representing [the dealership],” Giarrizzo said. “That customer is going to perceive that the dealer’s part of that experience.”
The independent shop must assure the dealership it will be well represented, and the customer will get a safe and proper repair with OE parts.
Metrics to Monitor, Improve Business
Giarrizzo said a lot of the metrics DCR Systems tracks are related to the customer’s experience. He said the company also tracks performance indicators for its relationship with its dealership partners.
“We don’t have really the traditional metrics that you see coming out of our industry,” Giarrizzo said. “Ours are on that leading edge looking for ways that we can actually fix something before it impacts the customer.”
For instance, DCR Systems classifies a “unit” as $100 of labor, regardless of the type of labor. That creates “a much more level playing field amongst our stores,” Giarrizzo said.
The shops also measure “units to ready,” meaning a car that is ready to be completely repaired, with an audited repair plan, received and verified parts, and completed mechanical and structural work —
a car that is “essentially ready for the finish line, which involves body repairs, prep, paint reassembly, detail,” Giarrizzo said.
“If we’ve got this ready inventory, 10 cars that are all kitted for completion right there, our priority becomes output,” Giarrizzo continued, looking at what the system needs to move faster — be it more people, solving a parts backup or simply more cars in the door. “We’re trying to balance that out on a daily basis to simulate a continuous, even flow. It works.”
Strandberg acknowledged a lot of the terminology Giarrizzo used is more in line with manufacturing and production, as opposed to collision repair.
Giarrizzo said “lean production” has become a buzzword over the last 20 years. He first learned about what would be considered “lean principles” while working as a regional manager for Sterling Autobody Centers in 2000, where they developed a “simple but not easy” concept of moving from a teardown to a strategic disassembly, to identify everything needed to complete the repair before it is started.
“We call it ‘pre-op’ for good reason,” Giarrizzo said.
The Future of the Industry
Giarrizzo said DCR Systems will be offering its CollisionClarity software to the industry in the next three to four months. It recently contracted with another firm to help optimize the user experience.
He said shops will likely need to become more “niche,” specializing in repairing two to four manufacturers’ vehicles to their specifications.
“Maybe those manufacturers are kind of clustered together, whether it be German brands or domestic brands or whatever it might be,” he said. “The main thing is to know your niche, become that expert, figure out how to market to that. That’s where we’re going.”
Key Takeaways
1. If you don’t have a niche, create one. If you do, find out how to advance and build around that.
2. Change the way work is done to attract your future. Break down your process to help expedite the training and knowledge for tomorrow’s workforce.
3. Documentation, documentation, documentation. Proving you did good work is becoming more and more important every day.
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New State Laws Address Insurer Bad Faith, Non-Functioning Airbags, Steering of Work
by John Yoswick Autobody News
Though the 2024 legislative session has ended in some states, others that meet year-round continue to review proposed laws that would have a variety of impacts on the collision repair industry.
The New York Senate, for example, in early June passed a bill that would require community review, including a hearing, of all motor vehicle repair shop applicants, sending that bill to the Assembly for consideration.
That same week, the New York Assembly unanimously approved a bill that would require that state’s Department of Motor Vehicles to conduct a study to potentially update the requirements of vehicle safety inspections there, particularly with regard to new vehicle technologies. That bill moved to the Senate for review.
Virginia Gov. Glenn Youngkin has signed into law legislation that allows an insurer to be found as acting in bad faith if it fails to pay a reasonable settlement demand made by the insured within the policy’s coverage limits. A 2017 court ruling eliminated the requirement that such decisions be made in good faith. Youngkin signed the legislation after lawmakers agreed to his recommendation that it be amended to require claimants to provide 45 days notice of such a demand and to provide documentation for the insurer to assess.
The Automotive Service Association has been urging shops in Michigan to contact their lawmakers in support of legislation that could reduce state registration fees and regulatory requirements for auto repairers with multiple facilities if those facilities are in close proximity to one another and are an extension of a main facility rather than operating independently.
“It makes no sense for an auto repairer to have to pay for and go through the process of registering twice for a single business operation just because it operates out of two or more buildings,” said Roy Schneppe of Butler’s Collision in Roseville, MI, and an ASA board member. “Running an auto repair business is a practice in small margins. Every dollar counts.”
Tom Piippo, owner of Tri-County Motors in Rudyard, MI, agreed.
“Anyone who runs a small business knows that time is money, and that adage is especially true for small independent auto repairers,” Piipo said. “Instead of having to go through the renewal process every year, [this bill] would allow me to renew every four years.”
Mississippi Gov. Tate Reeves has signed legislation that prohibits the sale or installation of counterfeit or non-functional airbags or other supplemental restraint system parts, and Utah Gov. Spencer Cox has signed into law a similar bill.
and prohibit repairs or maintenance if the registration is not current. The bill calls for a fine of up to $300 for violations.
Since insured vehicles are more likely to be repaired following a crash, it’s potentially good news for
the national average, according to a 2022 estimate by the Insurance Research Council.
A bill introduced in Mississippi that would have defined a “proper repair” as one performed “pursuant to the OEM repair procedures and using OEM or OEM-equivalent parts that have been properly tested…to meet the manufacturer’s specifications” died in committee.
Some state legislative sessions ended without passage of some bills impacting the industry. The Washington state legislature, for example, adjourned without passing bills that would have given policyholders there the right to call for an independent appraisal when there’s a disagreement about repair costs. The Idaho legislature adjourned without passage of a bill that would have required estimates including non-OEM parts to state that such parts “may affect the
In response to a significant drop in sales, Stellantis is cutting a shift at its Warren Truck Assembly Plant in Michigan, impacting approximately 1,600 workers. The move comes as the automaker reported a 21% decline in U.S. sales for the second quarter of 2024 compared to the same period last year.
“Stellantis is adjusting the operating pattern at its Warren Truck Assembly Plant to align production with sales,” said company spokeswoman Jodi Tinson in a statement emailed to the Detroit Free Press. “The plant will run one shift for the month of July. The company will continue to monitor demand and take the necessary action to balance inventories.”
The Warren plant, which produces the Jeep Wagoneer, Wagoneer L, Grand Wagoneer and the Ram 1500 Classic, typically operates two shifts per day and employs about 3,300 hourly workers. The shift reduction will temporarily lay off nearly half of its workforce.
production adjustments at its Toledo, OH, plants. The Toledo South plant, which manufactures the Jeep Gladiator, will shut down from July 8 until August 19 for retooling and alignment with sales. Workers will be reassigned
Day, emphasized the need for a turnaround at U.S. plants and hinted at shifting more production to cost-effective countries.
An analysis by AutoForecast Solutions indicated Stellantis’ production forecast is down by 35,000 units, primarily affecting the Ram fullsized truck and ProMaster commercial van. The company is grappling with managing the American brands acquired in 2021.
United Auto Workers (UAW) President Shawn Fain criticized Stellantis’ decision, arguing the company could maintain the two-shift operation at Warren.
CIECA announced its 15th annual conference, CONNEX 2024, will be held Sept. 24-25 at the MGM Grand Detroit hotel in Detroit, MI. This year’s theme is “The Intersection of Data & Mobility” and will be emceed by industry veteran Bill Garoutte
During the two-day event, thought leaders and industry experts will discuss where technology and businesses are headed and what the collision industry can do to prepare. A highlight will be an exclusive tour of the American Center for Mobility. The conference will also include networking opportunities, a vehicle gifting and a celebration of CIECA’s 30th anniversary of creating data integration standards.
to the Toledo North plant, which produces the Jeep Wrangler and Wrangler 4xe, during this period, except for a scheduled summer vacation week in early August.
The decision to cut shifts and adjust production follows statements from Stellantis CEO Carlos Tavares, who, during
“Stellantis can afford to keep Warren Truck running at two shifts; they just want to find another penny to pinch at the expense of hardworking autoworkers,” Fain told the Free Press. “Thanks to our contract, these workers will get layoff pay and benefits in the meantime while we fight to make sure Stellantis stops trying to kill
The agenda will include OEM representatives, a panel discussion on 3D printing in the collision industry, and a digital claims panel. Information will also be shared about AI, cybersecurity, EV batteries and the electric grid, OEM repair procedures and telematics.
For more information, visit cieca.zohobackstage.com/
A Jeep Wagoneer travels down the certification line at the Warren Truck Assembly Plant.
GM Facing More Lawsuits Over Driver-Behavior Data Sharing
By Abby Andrews Autobody News
General Motors has been named in more class action lawsuits over claims that it and OnStar collected driver data without consent and shared or sold it to LexisNexis Risk Solutions and Verisk Analytics — both named as defendants in the lawsuits as well — which in turn shared it with drivers’ insurance companies, leading to a hike in the drivers’ auto insurance premiums.
In June, the Judicial Panel on Multidistrict Litigation consolidated seven lawsuits filed in California, Florida, Michigan, New York and Pennsylvania in Georgia federal court, ruling that was the appropriate location because LexisNexis’ headquarters are located in Georgia. Another 13 cases were transferred to state.
LexisNexis and Verisk are charged with violating the Fair Credit Reporting Act, while all four defendants are charged with violating various state consumer protection laws and counts of tortious interference with contracts, invasion of privacy and unjust enrichment.
Since model year 2015, GM vehicles have been equipped to use OnStar and related branded apps,
including MyChevrolet, MyBuick and MyCadillac. The software and apps gather driver behavior data, including average speed, percentage of time driving at speeds over 80 mph, frequency and intensity of acceleration and braking, and latenight driving.
enhancement when, in actuality, the features are used by GM and OnStar to surreptitiously document and store driver-behavior metrics which are then sold for profit to third parties without the drivers’ knowledge, notice or consent,” one lawsuit said.
One of the suits was filed in federal court in Georgia by Brian LaFalce, of Michigan, who drives a 2023 Chevrolet Equinox. He downloaded the MyChevrolet app, but was not informed doing so meant OnStar would provide driving data to LexisNexis or Verisk. He was also not given the option to opt out of data collecting.
In addition, the apps also collect and transmit vehicle condition data, like engine or transmission status. GM says both are provided to the vehicle owner to “help them maximize their vehicle’s overall performance, reduce vehicle wear and tear and encourage safer driving,” one lawsuit said.
“These features are misleadingly marketed as a user experience
LaFalce said the insurance premium on his Equinox jumped 10% in 2024. When he asked for a copy of his consumer file from LexisNexis, he found 331 reports on acceleration, high speed and hard brake events, as well as when and how far he was driving. He also requested his Verisk file, which had another 100 recorded reports.
In March, GM and OnStar admitted to the data collecting practice, and said as of March 20, customer
data is no longer being shared with LexisNexis or Verisk.
Scott Hardy, founder and CEO of Top Class Actions, which reports on class action lawsuits, commented on the alleged violations committed by GM.
“Consumers have a right to privacy and the right to expect that their personal and driving data will be protected and used only for intended purposes,” Hardy said. “If the allegations are true, then any unauthorized sharing of driver data by GM with insurance companies could be a significant violation of their rights.”
GM has a responsibility to be transparent with customers about how their data is collected, used and shared, he said. Further, consumers have a right to be concerned about how their data might be used by insurers. “Information shared by companies with insurers could lead to discriminatory practices, such as unfairly increased insurance premiums or denied coverage based on driving habits that insurers deem risky,” Hardy said.
“If GM is found to have violated these laws, they should be held accountable and possibly face penalties to deter similar behavior in the future,” he added. “That’s why class action lawsuits can be so powerful.”
How to Ensure Your Collision Repair Business Has a Future
Editor’s note: This is the first of a twopart series on this topic. Pick up the September issue of Autobody News, or visit www.autobodynews.com for the second installment.
Seven years ago, Matthew and Marcia Seebachan won a $42 million lawsuit against John Eagle Collision Center for the incorrect repair of their 2010 Honda Fit, which left them injured and trapped inside their burning car after a subsequent collision. Fast forward to 2024, and an estimated 75% of calibrations are being missed, according to industry reports, leading to incorrect repairs.
The Collision Industry Conference (CIC) Industry Relations Committee conducted a study in 2023 to determine why there are still poorly repaired vehicles on the road. The committee obtained 26 examples of collision repair center post repair inspections from body shops in the East, Midwest and Western U.S. The study, based on the results of 26 late model vehicles (2013-2022 model years), found more than 90% were totaled after substandard repairs were found.
Following the study, a Guild 21 Webinar was held in May to discuss what can be done to elevate the industry and ensure cars are fixed properly. The webinar was sponsored by OEC and hosted by George Avery, Holly SwitzerPitts and Micki Woods
Elizabeth Stein, vice president of Strategic Initiatives for Certified Collision Group (CCG), led the panel discussion, “How to Ensure Your Collision Repair Business Has a Future.” Panelists included Jeff Butler, president of Haury’s Collision & Vintage in Seattle, WA; Ron Reichen, founder of Precision Body & Paint, Inc. in Oregon; and Erin Solis, senior vice president of Square One Systems/Coyote Vision Group.
“There is no excuse for it [poor repairs] anymore, but it still goes on constantly,” said Reichen. He attributes substandard repairs to body shops shortcutting the process and failing to look up OEM repair procedures.
In the John Eagle Collision case, Reichen said outside pressure from the bill payer reduced the original repair plan and had the shop seek alternative methods to repair the customer’s vehicle so the shop could make a profit.
“To maintain profit margin, the repairer decided to deviate from OEM factory procedures and repair that car in a non-approved repair procedure to make the job profitable,” he said. “Unfortunately, what it did is put the current vehicle owner, as well as the secondary owners — the people injured — in harm’s way because they put profits over the safety of the consumers.”
In every industry, Reichen said, there are unscrupulous people driven by profits.
“There has to be accountability and consequences,” he emphasized. “The John Eagle case certainly proved that there were significant consequences. It’s important that the industry learn from this and address the problem.”
consent.
Even if charges seem reasonable and necessary, Butler said, if you don’t get approval from vehicle owners, you are taking away their choice and violating the act. Butler advises shop owners to learn about the Auto Repair Act in their state, which is typically on the attorney general’s website.
Building Relationships with Clients and Third Parties
Butler talked about the communication breakdown that can occur during the negotiation process with clients and third parties and shared how the industry can proactively address this challenge.
Over his career as both a shop owner and private adjuster, Butler has witnessed the industry from different perspectives. If there’s a disagreement in the amount of the loss, or repair costs, Butler said the consumer generally has recourse.
During the Guild 21 webinar, panelists talked about the importance of understanding state laws, building credibility with clients and bill payers, focusing on a proper repair, promoting a healthy working environment and ensuring a future for staff.
Know Your State Law
Stein pointed out many shops are unfamiliar with state laws and could be in violation.
Butler, former director of the Washington Independent Collision Repairer’s Association (WICRA), has found shops often don’t follow the state auto repair rules or ask customers for approval on repairs.
“That is problematic and leaves a repair facility exposed,” he noted. “If you’re not following the state laws, you’re opening up your repair facility to a significant amount of liability.”
He shared the example of Washington’s Auto Repair Act, which requires the 10% rule. Under the rule, a facility cannot charge a customer more than 10% of the written estimate without the consumer’s
“Our industry will gain a lot more credibility if we’re upfront and honest about what the costs are, what we’re doing and back it up with facts,” Butler said.
“As analysts of the damage, we don’t determine the cost,” said Reichen. “The vehicle damage determines the cost. If we are following all the procedures, the bottom line is the bottom line.”
Reichen emphasized a shop’s contract is with the vehicle owner, not the insurance company, and it’s the business’s responsibility to provide the necessary information to consumers.
Similar to a medical bill, Reichen advises shops to include everything on the repair plan.
“Shops lose focus on how they run their business and don’t focus on trust and transparency,” he noted. “Showing your customer and the insurer what’s needed and why certain repairs are needed really helps facilitate that.”
Solis agreed. As a previous insurance adjuster, she recalled times when she asked shops to show documentation and explain the repair.
Butler cautions shops to stop acting like they are the adjuster for the vehicle owner. Instead, he recommended educating customers on the circumstances of the repair and why the shop is the vehicle repair expert.
One of the most fundamental flaws John Eagle Collision Center made in handling its customer’s vehicle repairs and insurance claim, according to Butler, is not disclosing the payment shortage from the insurer to the vehicle owner and giving them a choice for how they wanted to address the shortfall.
“That’s just fundamentally wrong and repairers have to stop doing that,” he said.
At Haury’s, staff members educate customers about vehicle damage, the repair plan, and the procedures required by the auto manufacturer, and keeps them updated throughout the process.
“If you’ve been transparent and written a repair plan backed up by OEM repair procedures using factory equipment with trained people, and you’ve done a good job of communicating that with the vehicle owner, they can advocate at the end of the day that you’re repairing the car for them and not repairing it for the bill payer,” he said.
“Friction is not necessary if there is good communication and transparency,” added Reichen.
Focusing on a Proper Repair to Avoid Liability
Solis discussed what shop owners and managers should know about ensuring a proper repair and liability exposure.
First and foremost, she said collision repairers need to access the OEM repair information.
Reichen agreed about the importance of looking up repair procedures every time because they change, often overnight.
Solis also stressed the importance of documenting repairs.
For example, she said destructive weld tests should be performed on every car and need to be photographed to demonstrate that the welds were done correctly.
“Documentation is going to be the key to limiting liability,” she noted.
Ensuring technicians are properly trained is also critical.
“If you are certified in a specific brand, you want to make sure that the technician who went to training and carries that certification is the one repairing the vehicle and using the proper equipment,” Solis explained.
Credit: Shutterstock
Learn
How Puget Collision Became a Powerhouse MSO With Franchise, Private Equity Backing
By Abby Andrews Autobody News
Joe Morella is the CEO of Puget Collision, a large consolidator originating from the Pacific Northwest but growing quickly. He recently made a guest appearance on The Collision Vision podcast, hosted by Cole Strandberg and driven by Autobody News, to talk about how joining a franchise and taking on a private equity investor helped him grow Puget Collision, and give insight on what spurred his success as an owner in the collision repair industry.
Founding Puget Collision
Morella got his start in the collision repair industry in late 1999, when he began working with what he called the first regional MSO in Washington State. It expanded to six locations before it was sold to another larger MSO.
Morella later worked for a large national MSO until 2020, when he opened his own repair facility, Six months later, his shop joined Fix Auto USA. In 2022, Fix Auto’s parent company, Driven Brands, offered Morella the chance to buy 10 of its corporately-owned stores in the Northwest, which became the springboard for what is now known as Puget Collision.
Today, Puget Collision operates 53 stores in the CARSTAR and Fix Auto franchises in Washington, Oregon, Idaho, California and Colorado, employing about 600 people.
Morella said he took a leap of faith when he agreed to join Fix Auto, which at the time only had 47 stores in the nation and was struggling to gain a foothold in the Northwest. Today, it operates more than 200 locations.
“I was able to open up the Oregon market, the Idaho market, the Colorado market for this organization,” Morella said. “It really was a true education in every sense of the word on what it takes to scale a business in our industry.”
Morella said he also saw how much power MSOs have in the collision repair industry. “There’s a reason why consolidations are at an all-time high,” he said.
The relationship with Driven Brands benefited his business too, as he went from an independent shop to part of a large network that shared resources and provided a level of protection and support as Puget Collision grew.
“Being in that system was the
catalyst for our revenue growth when I had my one location,” Morella said. “We more than doubled our sales within that first year, because it allowed us to bring in some really large DRP partnerships that just weren’t available to me as an independent during COVID. That allowed me to explore and open more locations.”
culture and maintain control of it, one that gives its employees autonomy and the room to take chances and make mistakes.
“We want the store leadership to operate in the best interest of that store,” Morella said. “I don’t really subscribe to one-modelfits-everything. because we have different personnel, different size
When Puget Collision began expanding into other states, having the national brand recognition of CARSTAR and Fix Auto helped establish relationships with insurance companies.
Private Equity
To start growing Puget Collision in the years following the pandemic, when bank loans weren’t easy to get, Morella found a private equity firm to invest, Eagle Merchant Partners, based in Atlanta, GA.
That required giving up some equity in Puget Collision, but Morella said that was a good decision in the long run. “Owning some of a much larger stake is certainly a lot better than owning everything of a smaller stake,” he said.
The first quarter post-acquisition was key, as was having a strong operational “playbook” to guide it.
“If you can’t deliver that first quarter, it’s going to be hard to ask for more funding to grow the business,” Morella said.
“Our model on acquisition is really focused on buy, build, integrate. Let’s make sure that our playbook is fully instituted and then buy again,” he said. Growing just for the sake of being greedy is not the right philosophy — “That’s a recipe for disaster if you ask me.”
Business Culture
His time working for a large MSO taught Morella a business’ culture can change as it scales. He started his first shop so he could build his own
level understanding of where their business stands and then figure out a plan to get it where they want it to go.
“Do you know what your sales per square foot are? These are things that the industry wants to know. Are you investing in equipment? Are you investing in OEM certifications? Do you have legitimate profit and loss statements?” Morella said.
Trends Shaping Collision Repair
Morella said it’s no surprise the industry is seeing mass consolidation as many independent owners age out.
Since collision repair doesn’t have a “big boom or bust scenario” because it’s close to a B2B industry — shops work with auto insurance companies — it is appealing to private equity investors.
stores, different mix of work. We rely upon our store leaders to know what’s in the best interest of their location.”
Scaling Your Business
Strandberg asked Morella what advice he had for people who own two- or three-location independent shops and want to scale their business in their region or across multiple states.
The playbook is important, but having the right people to help a new acquisition’s employees adapt to it is the biggest key.
“We’re not talking just for a week or two, but we’re talking for a month or two months,” Morella said. “Let’s make sure we’re side by side with them, and bring that business fully into Puget, fully integrated into our organization.”
When Puget first expanded into California and Colorado, Morella’s team spent six months at the new acquisitions to ensure they had fully adapted to Puget’s playbook.
“Those stores are operating great today,” he said. “That gave us the level of comfort like, OK, now let’s go execute on the next rounds of acquisitions.”
Morella estimated about half of the shops Puget has acquired have needed to be updated, in terms of equipment, technology or repair processes. It has sometimes been difficult to get those shops’ employees to see the revenue growth potential and get on board with the changes.
Owners also need to have a high-
“There’s a steady stream of revenue and work in process and business growth that is attractive to [private equity], so they’ve deployed capital to the MSOs that want to grow and prosper,” he said. “I would say in 10 years, we’re probably at maybe four to six MSOs left. Certainly in 20 years.”
Morella also predicted more national MSOs will follow the lead of The Boyd Group, which owns Gerber Collision & Glass, and go public. He expects Caliber to do so in the next 12 months.
“At that size and scale, it’s going to continue to drive more consolidation,” he said.
AI estimating is gaining traction. “It’s fairly accurate,” Morella said. “I wrote an estimate in 90 seconds, and I’d say it was probably about 85% accurate.”
He doesn’t think it will replace estimators, but act as a tool to make them more efficient. AI can’t have an interaction with the vehicle owner like the estimator can, Morella pointed out. “That takes another human being to express what’s occurring,” he said. Using new technology more in repairs also helps attract young people to the industry, he said.
Key Takeaways
If you want to stay in the collision repair industry long term, explore the franchise model. “You need assistance growing your revenue or growing the footprint,” Morella said. If you are planning on selling in the next five years, get your shop ready. “Understand what the needs of the industry are going to be when you want to exit. Don’t wait till the end and just say, OK, I want to sell it,” he said.
Fix Auto Anaheim in California is one of Puget Collision’s 53 current locations.
aftermarket parts –download new factory-official Mopar ® Position Statements at MoparRepairConnect.com
do safe and proper repairs and stay in business.”
Cotton said the book “The E-Myth” focused on the fact that most small business owners and managers work IN their businesses when they really should spend more time working ON them.
She said the Midwest Show allowed collision repairers to escape the walls of their businesses, talk to peers and learn from top vendors and presenters. Then, they could return home enriched to apply what they learned to their day-to-day operations.
More than 420 people registered for the event.
“Our population is not as it is in some other areas of the country so when we can bring in that many people, it’s a feat in itself,” said Cotton.
Cotton recalled attending the SEMA Show and hearing speakers provide a perspective of the industry she hadn’t heard before.
“I thought our mom-and-pop shops in the Midwest would love this,” she shared. “That has always been my goal — to bring the same SEMA vibe to the Midwest in a smaller, more palatable version.”
When planning the educational
sessions, Cotton looked for national presenters who were unfamiliar to attendees. Throughout the event, there were 18 speakers and 14 classes held.
class on “100% Disassembly and Parts Best Practice.” The educational session explored the importance of creating a culture of doing things “WITH your team, not TO your team”
“It was our biggest year for education and our lineup was off the charts,” noted Cotton.
During the first day, Mike Anderson and Jeff Oldenettel from Collision Advice offered a five-hour
and how to gain support for the common goal of 100% disassembly.
“Often, shops believe they are completely disassembling vehicles; however, we find the vehicles still have components that should have
been removed and installed (R&Id),” noted Anderson.
Cotton said the training was a draw for attendees. “I heard from so many people that they loved the indepthness,” she noted. “I’m so grateful to Mike and his team. They are amazing.”
During the event, Anderson teamed up with Craig Stevens from CCC ONE to discuss the customer experience, CCC ONE product updates, new features and the use of artificial intelligence (AI).
Anderson also gave a presentation on “Buying and Selling a Business,” providing tips for attendees looking to grow their companies and expand to multiple locations. Following his presentation, he and Casey Lund from Collision Leaders talked about growth strategies.
Taylor Moss from OEC talked about finding common areas where profits leak out of a collision repair business and how to patch the holes and grow profit. These included inefficient processes, underused resources and overlooked revenue streams.
“There are collision centers all over the nation that are mindful of these areas; they are winning and collecting profits,” Moss said. “Others simply let profit leak out of their business.”
OEC was a new sponsor of the Midwest Show this year.
Pictured, clockwise from bottom left, are Mike Anderson, Collision Advice; Randy Joiner; Greg Peeters, Car ADAS Solutions; and Brian Szala, CollisionRight.
“OEC believes that sponsoring regional trade shows is critical to get close to shops that don’t have larger travel budgets but still need to see the latest and greatest in technology, tools and education,” said Moss.
US Auto Supply also sponsored the event.
“US Auto Supply will continue to support collision industry associations,” said Rob Korycanek from US Auto Supply.” We feel their value provides shops an opportunity to stay updated with new information or tools essential to the day-to-day operations of a collision center.”
Erin Solis from Square One Systems presented on “All Things Post Repair Inspection.” Solis shared data on completed post-repair inspections from across the country and explained how to set up a body shop to avoid being in “a bad spot where it’s your possible bad repair being inspected.”
“The problem starts with lack of training and ends in lack of process,” explained Solis. “If technicians were properly trained on repair techniques and how to read OEM repair procedures, and the quality process was in place to ensure that technique was done correctly and the procedure was completed properly, it would eliminate a majority of what has gone wrong in these
post-repair inspection situations that we have studied.”
Jake Rodenroth from Lucid Motors and Casey Hamilton from Rivian led an interactive discussion on “Certification: What does it mean to YOU.” This included discussing a shop’s online presence, whether it has an off-the-charts Customer Satisfaction Index (CSI) and customer referrals. They asked attendees to share their opinions on electric vehicles (EVs) and explored whether their business and people are ready for the future. Rodenroth and Hamilton also shared the capital expenses for certification and how to adjust the business model to sustain ongoing training and tooling.
“We don’t see a lot of EVs in our market right now, but I feel it’s
important that our shops understand EVs,” said Cotton.
Alex Stapleton and Bret Runyon from Spanesi shared information about measuring repairs correctly. They addressed how to set and meet customer expectations and the importance of creating a process for successful repairs using blueprinting. To maintain quality control, control work in progress (WIP) and ensure goals are met, Stapleton and Runyon recommended inserting hard stops into the business’s standard operating procedures (SOPs). They also talked about issues when finalizing a repair regarding sublets, quality control and test drives.
Greg Peeters of Car ADAS Solutions discussed the critical elements of achieving OEM-centric calibrations.
“It is critical for collision repair facilities across the country to decide how they will meet this increasing demand,” noted Peeters. During his presentation, he talked about advancements in software and equipment, training, implementation and support. Peeters also shared information about the importance of the calibration environment and proper documentation to mitigate liability.
Sheryl Driggers from Collision Advice shared insight on moving from a transactional to a relational
approach with customers. She shared actionable strategies and resources for attendees to learn how to identify a customer’s DISC communication style, enabling them to adapt their communication for each personalized type. The DISC assessment classifies four personality styles: Drive, Influence, Support and Clarity.
Other presentations were held by Rod Cahoy from PPG, who talked about refinish area optimization and how to maximize throughput and profit; Tyler Claypool from Optima Worldwide, who shared information about digital marketing; and Clay Hoberecht, of Best Body Shop, and Tim Morgan, who discussed building a body shop in a box and culture from the inside out so it can be duplicated. Maria Quintero, also with Collison Advice, held a financial boot camp for shops to build their accounting expertise and learn how to enhance the integration between CCC ONE and QuickBooks.
On the last day of the event, Anderson provided the keynote address, focused on “Success Today, Success Tomorrow.” He shared insight from traveling over 300 days a year, working with hundreds of body shops, OEMs and software companies, and his experiences. For more information about the show, visit midwesttradeshow.org.
Jake Rodenroth from Lucid Motors and Casey Hamilton from Rivian led an interactive discussion on “Certification: What does it mean to YOU.”
Parts Delivery Times Improve; Court Rulings, Legislation Could Have Future Effects
by John Yoswick Autobody News
While the cyberattacks on CDK Global in June in some cases temporarily hampered wholesale parts sales to body shops, parts delivery times prior to that had improved significantly not only from the months of the United Auto Workers (UAW) strike last fall but even compared to last spring, according to data shared by PartsTrader.
Across all part types — OEM, nonOEM, used and reconditioned — the median delivery time has remained steady for several years at just above one day, Greg Horn, chief innovation officer for PartsTrader, said at the recent Automotive Body Parts Association (ABPA) conference. But if nine out of 10 parts needed for a
data continues to show three types of ADAS have the most impact on claims frequency: forward collision warning, front auto-brake and rear auto-brake. In general, he said, the systems that “act on your behalf are associated with far bigger frequency reductions than those that just yell at you like my mom did when I was 16.”
Moore said ADAS is contributing to the rising severity of claims for reasons beyond the cost of replacing and calibrating the systems.
“Rear auto-braking is incredibly effective and eliminates a large percentage of claims,” Moore said. “But how fast are you going when you back up? Two, three miles per hour, tops. So what kind of claims are we going to eliminate with that system? Cheap claims. So in a hypothetical distribution of claims, if we throw out a whole bunch of cheap claims and recalculate the average, what happens? The average goes up. We didn’t make any claims any more expensive. We just threw out a whole bunch of cheap ones.”
The implementation of ADAS can also impact the claims mix, Moore said. Mazda has a system called Smart City Brake Support that works only when the vehicle is moving up to 18 mph; obviously it reduces more small severity claims.
where prevailing wages are higher.
Discussion of Design Patents on Parts
ABPA’s membership consists primarily of manufacturers and distributors of non-OEM parts, so the conference includes discussion of the industry’s efforts — both through legislation and litigation — to increase the industry’s ability to sell more aftermarket parts.
“The electric vehicle fleet looks nothing like the gas power fleet, making comparisons incredibly difficult.”
and distributors of non-OEM parts. Justin Rzepka of the coalition told ABPA conference attendees the SMART Act has a dozen co-sponsors, including U.S. Rep. Darrell Issa (R-CA), chairman of a House subcommittee reviewing the legislation.
The REPAIR Act has 54 cosponsors, including many of the members of the House Energy and Commerce Committee reviewing the bill. It has moved through the subcommittee process.
Rzepka said he was expecting forward movement on both bills this summer. “But we can’t predict the future and lots of things can happen,” he acknowledged.
job typically all arrive promptly, Horn said, it’s the outlier that tells more of the story.
“Averaging dilutes the impact of that one part out of 10 that is significantly delayed,” he said. “By looking at the median plus two standard deviations, you capture 95% of the population.”
Without diving deeply into the statistical methodology, that number stood at 9.7 days in March, according to PartsTrader data. That was down significantly from the most recent peak of 14.8 days last October during the final four weeks of the UAW strike against the domestic automakers. But it was also down from between 12 and 13 days in April and May 2023, and down from all of 2022, which ranged by month from a low of 13.4 days to a high of 14.4 days. But pandemic supply chain delays haven’t fully disappeared: Deliveries were at just 7.4 days in the first quarter of 2021.
Claims Impact of ADAS
Matt Moore of the Insurance Institute for Highway Safety (IIHS) also spoke at the ABPA conference. He said IIHS
On the other hand, General Motors has a forward collision warning system that is only active above 25 mph, reducing higher severity claims.
A lot has been made of the higher claims severity of electric vehicles compared to vehicles with internal combustion engines. But Moore cautioned such comparisons can be problematic.
“The electric vehicle fleet looks nothing like the gas power fleet, making comparisons incredibly difficult,” he said. “We have almost no [electric] pick-up trucks, and pickup trucks represent a huge piece of the U.S. market. And we don’t have big honking, electric SUVs. And this matters a whole bunch because the types of crashes we get into by point of impact, and the dollar values of those crashes, vary by vehicle type. The most expensive crash you can get into and the most common is front dead center. The least expensive crashes are the rear quarters, particularly in pick-up trucks.”
Electric vehicles, Moore also noted, are primarily operating — and being repaired — in metropolitan areas
At the federal level, the Congressional clock is ticking for backers of the Right to Equitable and Professional Auto Industry Repair (REPAIR) and Save Money on Auto Repair Transportation (SMART) acts, with just months until the session ends and the election this fall likely cutting into legislative activity.
Similar to bills introduced since 2015, the SMART Act would slash the length of time automakers’ design patents on exterior crash parts can prohibit the production and sale of non-OEM versions of the parts — from 14 years to just 30 months.
In addition to passage by committee, the bills would have to be voted on by both the full House and Senate, before early January when this Congress ends. The legislation would have to be reintroduced to start the process over next year.
Impact of Parts Patents
Even if the federal legislation doesn’t pass, a federal appeals court ruling in May could make it easier to challenge design patents. The court overruled tests used for more than four decades to gauge the validity of design patents, at a minimum creating uncertainty for some time as to how courts should evaluate them.
“This ruling is a major victory for aftermarket part manufacturers,” said Ed Salamy, executive director of the ABPA.
During the conference, PartsTrader’s Horn shared data he thinks demonstrates the impact that automaker design patents on crash parts have on non-OEM parts sales. Horn compared the market share of OEM to non-OEM parts sales for some part types and automakers.
The REPAIR Act is described as “right to repair” legislation, prohibiting vehicle manufacturers from impairing a vehicle owner’s access to their vehicle’s data related to diagnostics and repair, or impairing a non-OEM parts manufacturer from producing or selling compatible aftermarket parts.
Both bills are backed not by the largest mechanical and collision repair shop trade associations, but by the Consumer Access to Repair (CAR) Coalition, which consists of insurance companies, CAPA, LKQ Corporation and other manufacturers
Horn said domestic automakers — he shared data for Ford and Chevrolet — tend to have more design patents compared to import brands like Honda and Toyota. In terms of front lamps, Ford and Chevrolet OEM parts capture about 63% and 69% market share, respectively, compared to about 49% for Honda and 42% for Toyota. The market share of OEM bumpers for Honda (about 73%) and Toyota (about 67%) are again lower than that for Chevrolet (about 75%) and Ford (about 81%).
“This is, in my mind, what the [patents] have done for the American versus the Asian manufacturers,” Horn said.
Delivery times to shops this past March were about 25% lower they were in spring of 2023
Greg Horn of PartsTrader
— MATT MOORE
INSURANCE INSTITUTE FOR HIGHWAY SAFETY
‘Don’t Let the Consolidators Scare You’: Better Collision Centers Follows Its Own Path To Success
By Abby Andrews Autobody News
Jonathon Best is the CEO of Better Collision Centers, a Carolina-based regional MSO established in 2021 that now has seven stores and is growing quickly. He joined The Collision Vision podcast, hosted by Cole Strandberg and driven by Autobody News, to talk about how he is scaling his business, why culture is key, and why consolidation is good for all shop owners.
From Lot Porter to CEO
Though his father worked in the collision repair industry, Best never pictured himself following in his footsteps. But when Best needed a flexible work schedule in college, the Charleston, SC, shop where his father was working was one of the only employers that could provide that and pay enough to make ends meet. Best started working parttime as a lot porter. Later he joined the parts department. Eventually he became an estimator, and then a service advisor.
After that, Best worked his way up through the office, becoming assistant manager and then an area manager. At 25, he became the shop’s CEO.
“I helped the company grow,” Best said. “I want to say we had four or five stores at the time. We grew from five stores to 10 stores.”
About five years later, when Best was 30, the owner wanted to sell the company. “I was not ready for that,” Best said. “So we moved on, and we created Better Collision Centers.”
Consider Your Capital
Best said the biggest hurdle singleshop owners face when trying to grow their business is capital.
“Interest rates are out the roof; banks are not wanting to lend,” Best said. “Where are you going to get your capital to grow?”
Best said he expected Better Collision Centers to have twice as many stores now as it does, but it “ran into this post-COVID world of capital.”
“We’ve had to think a little bit more strategically on growth, and not just go off to the races like you see with some of these private equity-backed groups that are just acquiring everything around you,” Best said.
“That doesn’t mean that we’re not going to get caught up,” he said. “We’re at seven stores now, and next
year we’re going to try to open twice as many.”
Better Collision Centers has spoken to private equity firms, Best said, but the company prefers traditional debt — bank loans and small investors — as it grows mostly through green- and brownfield locations, rather than acquiring other shops.
“We’ve had some amazing offers, but anytime you bring [private equity] in, it’s going to cost you something.
When that technology becomes available, Best said his company wants to be ready to implement it — and customers will know.
“We love marketing, so you’re going to know right away if we bring a robot on property, I promise that,” he said.
Creating a unique brand and effectively marketing it is vital for a regional MSO’s success, Best said.
“If you truly want to get your voice out there, you do amazing things
They’re going to take a fairly large piece of your company,” he said.
New Vehicle Technology, New Opportunity
Better Collision Centers was subletting out ADAS recalibration work until Best attended the 2023 SEMA Show, where he learned just how much ADAS was forecasted to grow in the coming years. “It’s going to get more dynamic and more complex,” he said.
He started looking at ADAS as an opportunity to diversify his business. Better Collision now has four mobile calibration vehicles that service all of its own stores, as well as a growing list of other area shops.
“It’s another segment for us when we enter new markets,” he said. “We’re finding a lot of other shops are having trouble with their sublets, making a decent margin on it. Because we’re from the collision space, we understand their needs a lot better. We’ll put the paperwork and the invoicing together in a way that helps them get the money they need with their insurance carrier.”
Better Collision is also exploring how robotics can help streamline its shop operations.
“Some of these robots can be programmed to pick up parts and carry them around your parking lot,” Best said.
Don’t Fear the Consolidators Consolidation will never stop, Best said, but it is not something to fear.
“I was terrified of consolidation. I was reading the news articles. These guys just got $500 million and shops were getting gobbled up left and right all around us. And then we realized what was happening,” Best said. “At the time, our opportunity was just a two-lane road. But the more consolidation that took place, the opportunity opened up into an endless highway, a 12-, 18-lane highway of opportunity.
“I think consolidation is great for business,” Best said. “I think it starts allowing your regional MSOs to truly be the place to be the home for talent to go to.”
Large consolidators also help all repair shops negotiate better pay rates from insurance companies, Best said.
“A bunch of independent MSOs have a lot of trouble standing arm in arm and getting things done,” Best said. “The big boys step in. It’s a huge help for us all.
and share it,” he said. “Get that stuff. Get it on video, get it in pictures and text and get it out there so the world could see.”
Better Collision is also looking into programming its central call center to run through an AI control dashboard that will answer the phone, book appointments and text customers.
Culture First
Better Collision’s “culture-first” strategy is the real driver of growth, Best said, as it has helped attract top talent among technicians and management. But it has to be authentic.
“Practice the culture you preach,” he said. “It’s easy to talk about it, but I find it the more we grow, the harder it is to practice it, because you get so caught up in the mundane items. But we put a huge emphasis on it.”
The company’s culture focuses on integrity, transparency and doing better.
“That’s why we came up with Better Collision — we want to do everything better,” Best said, from the quality of repairs to customers’ and insurers’ experience working with the company.
“Our culture is pretty much the only thing, as a regional MSO, that will allow you to stand out,” Best said. “That’s your edge. That’s always your edge. You can create relationships with teams and individuals that they can’t replicate.”
“Don’t let the consolidators scare you. We talked to a lot of different independents, and they’re always so terrified of where the next Caliber over the next year is going,” Best said. “Do you really have enough time to worry about that? Really?
“I think that we all need to focus on our businesses, and don’t let that consolidation around you scare you. Focus on your people, your culture, the quality of repairs, your relationships,” he added.
Better Collision uses a combination of buying brownfield locations and renovating them itself, or asking one of its property investors to buy the location and renovate it before selling it to Better Collision. It also sometimes leases buildings.
“For us, it’s not one path. It was before. But we’ve learned quickly…it has a lot of weight on what choice we do, on which property, which market we’re going to,” Best said.
Key Takeaways
Consider your capital source. Don’t take on a private equity investor unless you have someone in your organization with strong financial experience.
Stay focused on your mission. Don’t let industry swings and consolidators scare you or disrupt you. Focus on your people.
Don’t forget about your culture. Culture is top of the food chain.
Mike Anderson — From the Desk of Mike Anderson
Post-Crash Inspections Find Multiple ‘Deformed’ but Undeployed Airbags
In earlier columns this year, I shared one shop’s story about being visited by the police each time a certain vehicle’s battery was reconnected, and another shop’s story about sunlight being magnified through rainwater on crash wrap leading to burn damage to the interior of the vehicle.
Now I want to tell you about another shop’s startling discovery during vehicle safety inspections, which I believe should be a wake-up call for every single person involved in the collision industry.
Rick’s Paint and Body is a Lexus Authorized Collision Center in Augusta, GA, and as such, repairs a lot of Lexus and Toyota vehicles. Shop owner Tyler Smith understands the post-collision repair inspections both automakers call for on many of their vehicles. The procedures for the Toyota Camry and Lexus ES 350, for example, call for airbag inspections even in non-deployment crashes. Smith said those inspections, which can be pretty intrusive, on multiple occasions recently have proven to be very important.
“It was the passenger head airbag that we found in numerous vehicles have been deformed,” Smith told me, clarifying the shop had found four such instances. “You could see on a couple of them where the brackets where they mount up underneath the dash panel were slightly tweaked, and instead of the airbag being a nice little neat package, the top of it was bulged out almost like a loaf of bread. The webbing that kind of holds it all together was stretching so much that it was starting to separate.”
Smith said none of the vehicles had related lights illuminated on the dash, nor any diagnostic trouble codes that would indicate there was
any issue with the airbags. He said he made sure to check them against new replacement airbags to make sure what he was seeing wasn’t how those airbags in the vehicle should look.
Further evidence that the airbags had an issue came when a local fire department held a vehicle extraction training class at Smith’s shop. After the class, Smith said he asked if the first responders had ever seen an airbag deploy. They said they hadn’t, so Smith’s team gathered the setup they have to safely deploy an extracted airbag. Smith said the shop does the demonstration for new employees as well, to show the force with which airbags deploy and the importance of following all automaker procedures and precautions.
But of the four deformed airbags Smith’s team discovered during its post-crash safety inspections, three of them did not deploy when hooked up for the firefighters in training.
“So I can’t say for sure, but they might not have fired if we’d left them in the vehicle and it was involved in a subsequent accident,” Smith said.
When I asked Smith what he thinks caused the issue with those airbags, he was quick to note he’s not an engineer. All the vehicles were about four to eight years old. All took midsized hits in the left rear quarter panel.
type of first-stage deployment in some way led to the deformation, and if that may be why Toyota and Lexus call for their inspection.
teapot,’ then you stand over there and you sing,” he said, laughing.
Ladies and gentlemen, those deformed airbags found during safety
Smith said his shop has done quite a few inspections on similar year, make and model vehicles and not found issues with the majority of those particular airbags, so he doesn’t think it’s an issue from the factory. But in any case, in his mind, that makes doing the inspections to find the ones that are deformed all the more important.
“The webbing that kind of holds it all together was stretching so much that it was starting to separate.”
TYLER SMITH
Has finding those deformed bags made it any easier to convince insurance companies of the importance of the inspections?
inspections by Smith’s team should be all you need to understand you are playing a dangerous game with your customers’ lives and your shop’s liability when you don’t follow the safety inspections procedures laid out by the automakers. Will some — or even most — of the inspections turn up nothing? Maybe so. And I hear from shops that these inspections are the single biggest friction point in the industry.
“We’re not talking train wrecks,” Smith said. “They obviously took a pretty good hit, but nothing major, no major structural damage. No other airbags deployed from the wrecks in the vehicles.”
He knows some airbags have what he thinks of as a two-stage deployment, where it may get charged for deployment but the sensors indicate it doesn’t need to actually deploy. He wondered if that
Unfortunately, Smith said it hasn’t. It doesn’t help, he said, when someone at a dealership who doesn’t know better tells the insurer the inspections aren’t necessary. In some cases, customers have had to pay for the inspections themselves.
“Like I tell insurance companies all the time, ‘I didn’t engineer these vehicles. So I have to follow the procedures from the people who did,’” Smith said. “For most of the manufacturers, it’s very cut-anddried. Do I necessarily agree with all of it? No. But that’s not for me to agree or disagree with. If they say to stand over here and sing, ‘I’m a little
So it’s good that we have instances of some automakers reviewing the safety inspections they call for to better clarify what level of damage is required to make which of the inspections necessary. General Motors in 2021, for example, rolled out a significant overhaul of its postcollision vehicle inspections, saying the changes in no way compromise safety. While GM previously had a long list of such inspections required “after any collision,” it now says most are necessary only after “any collision that exceeds minor outer body panel cosmetic distortion.”
But Smith’s shop is just one of a growing number of shops reporting they have uncovered some important safety issues when regularly conducting the inspections. Let me know through my assistant, Tiffany Driggers, at tiffany@collisionadvice. com, if your shop uncovers something damaged you might have missed without a safety inspection.
“We’re lucky we caught them when we did,” Smith told me. “Because from what we saw, they will not necessarily perform as designed.”
A post-crash safety inspection of a vehicle found an undeployed airbag bulging to the point of starting to separate the webbing that holds it together
A post-crash safety inspection of a vehicle found the bracket that mounts an airbag underneath the dash panel was slightly tweaked
RICK’S PAINT AND BODY AND PAINT
3 Employees Survive Roof Collapse At Chicago Auto
Body Shop
A roof collapse at Nu-Life Body Shop in Portage Park, IL, a suburb of Chicago, on June 13 left three men unharmed but brought attention to serious building safety concerns.
The incident occurred around 11 a.m. at the Milwaukee Avenue location. Tim Levan, an employee at the shop, told CBS 2 he had just walked to the back of the shop for some touch-up paint when the roof gave way above him.
City demolition inspectors later confirmed the roof failure was due to years of accumulated water along a structural seam, which had caused significant rot in the wooden supports.
The collapse damaged three vehicles inside the building. One car was immediately pulled from the building and another is likely to be repaired, but the third was deemed a total loss. Fortunately, none of the three men inside at the time sustained serious injuries.
A failed inspection report from Jan. 12, 2023, said the owner had “failed to maintain [the] building or structure in a structurally safe
and stable condition.” The report noted that the roof leaked and described the roof structure as “water damaged with rotted rafters and decking with poor and substandard previous repairs.”
A Portage Park auto body shop employee was startled and shaken after he survived a roof collapse June 13. Image via CBS.
The building’s owner told CBS 2 he had faced financial difficulties after his health deteriorated a few years ago. Despite the damage, the owner confirmed a pending sale of the property would proceed, with plans to gut and renovate the building. He expressed relief that no one was seriously hurt in the incident.
for repair work.
Additionally, SB 867 addresses business succession planning. Under current law, repair businesses owned by corporations must report to the state if 10% or more of the corporation’s stock is sold or transferred. The proposed legislation would increase this threshold to 25%, reducing the reporting burden on businesses.
The Automotive Service Association (ASA), a national trade association, is urging Michigan lawmakers to pass the bill.
“It makes no sense for an auto repairer to have to pay for and go through the process of registering twice for a single business operation just because it operates out of two or more buildings,” said Roy Schnepper, owner of Butler’s Collision in Roseville, MI, and an ASA board member. “Running an auto
repair business is a practice in small margins. Every dollar counts. SB 867 would make it easier for repairers to remain compliant with state law while simultaneously providing customers with high-quality repairs. I urge our state elected officials to pass this important legislation.”
“SB 867 would help repairers like me immensely,” added Tom Piippo, owner of Tri-County Motors in Rudyard, MI, and an ASA board member. “Anyone who runs a small business knows that time is money, and that adage is especially true for small independent auto repairers. Time spent completing detailed paperwork and dealing with government bureaucracy is time spent away from repairing my customers vehicles.”
ASA is urging Michigan residents to contact their state representatives and senators to support SB 867, which they believe will provide much-needed relief to independent auto repair shops.
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New-Vehicle Sales Show Mixed Results For First Half, Q2 2024
Automakers reported sales results for the first half and second quarter of 2024, as well as for the month of June.
As dealerships continue to feel the effects of the late-June cyberattack on software provider CDK Global, the impact on sales can not yet be quantified, according to GM spokesman David Caldwel l.
“Our dealers who use the CDK platform are working to meet strong customer demand under difficult circumstances,” Caldwell told the Detroit Free Press. “Some deliveries may be delayed until Q3.”
GM
In Q2, GM sold 696,086 vehicles, a 0.6% increase year-over-year. But the automaker reported a slight 0.4% decrease in the first half of 2024 compared to last year, selling 1,290,319 vehicles. The decrease was largely attributed to fewer fleet sales.
EV sales were up 40% in Q2, as GM sold 21,930. They also increased in the first half of the year compared to 2023 — GM sold 38,355 EVs.
Ford Ford reported a 61% increase in Q2 sales and a 72% rise in sales for the year for its EV division, Model e. Ford also said 54% of Mustang Mach-E and 64% of F-150 Lightning sales were to customers new to the Ford brand.
The Mustang Mach-E, Ford’s crossover EV, experienced a 46% rise in sales over the past year and a 58% increase through the first half of 2024. The model is now ranked as the fifth best-selling EV in the U.S. according to U.S. News.
Ford’s F-150 Lightning also continues to dominate the electric truck market in the U.S., with sales of 15,645 units through June 2024, and 7,902 units sold in Q2 alone — a 77% increase compared to the same period last year.
Ford’s E-Transit electric van also continues to lead its segment, with sales of 6,301 units, a 96% increase. Notably, three out of every four E-Transit sales were to repeat customers, who cited lower maintenance and fuel costs as primary reasons for their continued loyalty.
Toyota Toyota Motor North America (TMNA) said it sold 193,120 vehicles in the U.S. in June, a 1.2% decrease year-over-year. However, it sold 84,781
electrified vehicles in June – 43.9% of its total sales and a 64.5% increase compared to June 2023.
Looking at the second quarter, TMNA reported U.S. sales of 621,549 vehicles, up 9.2% compared to Q2 2023. Second quarter electrified vehicle sales totaled 247,347, up 63.1%, representing 39.8% of total sales for the period.
ambitious target of 2 million vehicle deliveries for the year remains uncertain.
Kia
Kia America sold more than 5,000 all-electric vehicles for the third consecutive month and 29,392 total EVs through the first half of 2024 — its highest first-half EV sales ever — resulting in a
GM reported sales of its Cadillac LYRIQ jumped 26% in Q2, compared to Q1, contributing to GM’s total EV sales increase of 40% in the quarter compared to last year.
Finally, TMNA reported first half U.S. sales of 1,186,647 vehicles, up 14.3% on a volume basis. First half electrified vehicle sales totaled 454,197, up 67.9% on a volume basis, representing 38.3% of total sales for the period.
FCA
In Q2, FCA US LLC reported 344,993 vehicles sold in the U.S. — a 4% growth compared to Q1, but a 21% decrease year-over-year.
Matt Thompson, head of U.S. retail sales, attributed the sag in sales compared to Q2 2023 to moves FCA did in the first half of 2024, including working toward a “multi-energy strategy” consisting of battery electric, plug-in hybrid and ICE vehicles, and pricing adjustments across its U.S. brands.
Tesla
Tesla announced its Q2 2024 delivery and production figures, exceeding Wall Street expectations but showing a decline from the previous year.
The automaker delivered 443,956 vehicles in Q2, surpassing the anticipated 438,019. Despite this achievement, deliveries decreased from over 466,000 in the same quarter of 2023. Production for Q2 2024 stood at 410,831 vehicles.
Tesla’s bility to reach its
Mazda
Mazda North American Operations (MNAO) reported total June sales of 35,696 vehicles, an increase of 19.8% compared to June 2023. Year-to-date sales totaled 202,486 vehicles sold, an increase of 10.2% compared to the same time last year. With 26 selling days in June, compared to the same the year prior, the company posted an increase of 19.8% on a Daily Selling Rate (DSR) basis. Certified pre-owned sales totaled 6,241 vehicles in June, an increase of 20% compared to June 2023.
Mitsubishi
Just six weeks after announcing its new North American business plan, Momentum 2030, Mitsubishi Motors North America, Inc. (MMNA) closed out the first half of 2024 with strong sales of 51,130, up 12.3% over the first half of 2023 and the strongest first-half sales result for MMNA since 2021. First half sales of Outlander, Mirage/Mirage G4 and Eclipse Cross were up 1.3%, 85.5% and 38.2%, respectively.
112% growth year-over-year and indicating strong EV sales growth momentum for the company.
Four Kia models – Carnival (+18%), Forte (+13%), Sportage (+11%) and Seltos (+1%) set new first-half sales records.
Hyundai
Hyundai Motor America reported total June sales of 67,631 units, a 2.5% decrease compared with June 2023.
Hyundai set total sales records in June for Elantra HEV (+1%), Elantra N (+19%), IONIQ 5 (+17%), Santa Fe HEV (+90%), Tucson HEV (+28%) and Palisade (+57%). Hyundai’s total hybrid sales were up 39% in June while Green sales represented 26% of retail.
In Q2, Hyundai sold 214,719 units, an increase of 2.2% compared with Q2 2023. Hyundai set total and retail sales marks in Q2 for IONIQ 5, IONIQ 6, Santa Fe HEV, Tucson HEV and Palisade. HEV sales for the quarter rose 42% compared to Q2 last year while pure EV total sales climbed 15%.
And in the first half of 2024, Hyundai sold 399,523 total units, a 1.2% increase compared to the first half of 2023. Hyundai Green sales saw an increase of 24% yearover-year. SUVs represented 75% of the retail mix.
In Q2, MMNA sales totaled 22,727 units, down 7.6% year-overyear. However, Mirage hatchback sales more than tripled at an increase of 243.4%. Mirage G4 sales also increased 70.3% for the same period, notching a 146% increase for the Mirage lineup collectively.
Subaru
Subaru of America, Inc. (SOA) reported 55,228 vehicle sales for June 2024, a 0.1% increase compared with June 2023 (55,168). SOA also reported year-to-date sales of 322,443, a 6% increase compared with the same period in 2023.
For the second month in a row, Outback was the top seller with 16,853 vehicles sold, followed closely by Crosstrek, which had its best June ever with 15,132 vehicles sold, a 9.6% increase over the same month in 2023. Forester also had a strong showing with 11,108 vehicles sold, a 4.1% increase over June 2023. Solterra also achieved its best June ever, up 115% over the previous year.
Capitalizing on the ADAS Opportunity: Three Shop Owner Success Stories
In recent years, perhaps no automotive technological advancement in the mechanical and collision repair industries has been such a disrupting force as the increasing adoption of Advanced Diver Assistance Systems (ADAS), such as Adaptive Cruise Control and Lane Departure Warning, on even the most basic vehicle lines.
Even though an estimated 60% of vehicles on North American roads today come with one of these safety systems—that’s 180 million vehicles—some collision shops have not developed an effective strategy for servicing vehicles with ADAS.
“The strategy a shop chooses, whether to perform the work in-house or sublet calibration work to another shop, calibration center, or mobile provider, depends on multiple factors, including its size and layout, the training and current workload of its technicians, and quite simply, its business plan, said Autel Senior Executive of ADAS Sales Stewart Peregrine.
“Ideally, if shops have the space, the technicians, the funds for equipment investment, and the desire, they should consider bringing ADAS calibrations in-house.
“There are calibration centers and mobile calibration providers that offer comprehensive, quality service with accuracy and quick turnaround that you can partner with. Many of them use our equipment; we’re proud they do,” said Peregrine.
Precision Diagnostics in Madison, Wisconsin, Fuller’s Collision in Auburn, Massachusetts, and Angie’s Service in Newbury, Massachusetts, are ADAS calibration shops that became so proficient that they started separate companies to handle other shops’ calibrations. The results have been startling.
Tom McGuire and Dave Zielke started Precision in response to repeated poor service from
those they sublet to. “We were seeing an increasing number of delays from a cycle time perspective, getting cars back from the dealerships, and there was probably one mobile vendor in the space then. And frankly, the service levels just were not there; they weren’t realistic with what I needed as a body shop, “ McGuire said.
So, McGuire and Zielke created a calibration solution for their collision shop and others who didn’t want to perform ADAS calibrations themselves.
“The goal (with this new business),” McGuire said, “was to be an extension of the Body Shop’s production team—that’s what I would have wanted when running shops. Hundreds of different things are pulling on them —the insurance companies, the customer, and the OEM specifications—all those pieces. [They] want somebody that can come in and look at it and say this isn’t a problem at all, here’s what we need to do, here’s the OE information on it, here’s the process,” McGuire said.
What started with a small shop and one van has blossomed into a fleet of 100 mobile vans and three brick-and-mortar facilities, including a 10,000-square-foot facility. Today, Precision’s mobile units (all outfitted with a technician or two and an Autel MaxiSYS MA600 mobile ADAS system) perform about 4,500 ADAS calibrations per month, servicing 1,500 shops across 11 Midwestern states.
Mike Ambrosino of Fuller’s Collision Center in Auburn, Massachusetts, faced similar challenges with subletting and decided to bring ADAS inhouse. “One of the toughest things that we were dealing with was scheduling with dealerships, getting the vehicles out to the dealerships to be properly calibrated, and getting thorough reports from the dealership that these cars were being calibrated properly,” Ambrosino said.
After considerable time discussing what calibration system to purchase, Fuller’s went with Autel. “Once we made the decision to go with Autel, training was included, and they sent a trainer out shortly after the purchase for a full day, “
Ambrosino, now the director of ADAS calibration and diagnostics at Fuller’s, said.
The decision to bring ADAS in-house has been beyond successful for Fuller’s. Since purchasing their first Autel ADAS system in 2021, Fuller’s Collision purchased two more and created a separate business, ADAS Diagnostic Solutions LLC, which serves Fuller’s Collision and about 45 shops in the area. “We’re doing about $72,000 a month (in calibration revenue), “ Ambrosino said. ADAS Diagnostic Solutions has six bays and three calibration systems. Its turnaround rate has gone from 10 calibrations a month to almost 15 daily.
Gary Machiros of Angie’s Service Inc. in Newbury, Massachusetts, is not new to ADAS. He started about four years ago, not long after Autel released the IA800, its first system to use cameras for target placement. “We calibrate every vehicle that comes through our shop with Autel equipment and have done so since our first purchase,” Machiros said.
Over the years, the demand for ADAS calibrations at Angie’s Service Inc. has grown significantly, with the shop now performing about 50 calibrations weekly. This growth is a testament to the shop’s expertise and status as the go-to calibration shop for the area’s collision and mechanical shops.
“We’re seeing double and sometimes triple the calibration work because we are working on more and more later model vehicles. This workload will only grow with the increase of late-model cars on the street. With more radar, cameras, and other systems incorporated into the vehicle, accurate ADAS calibrations become even more necessary. Right now, there is a huge potential for independent outfits to service local body shops.”
Collision Shop Owners Create Work-Life Balance, Offer Superior Benefits To
Attract, Retain Techs
By John Yoswick Autobody News
Aaron Flett, owner of Kent Collision in Washington state, said when he opened his shop 10 years ago and considered what he needed to do to attract and retain employees, he thought about the differences he’d seen and heard about Walmart’s Sam’s Club versus Costco, which is headquartered about an hour from his shop.
“Sam’s Club, at least up here, failed, and they’re all gone [from the Pacific Northwest],” Flett said, during a Talent Pool and Education
Another panelist, Kevin House of Center Collision in Tacoma, WA, said he’s placed an emphasis on employee retention by focusing on building camaraderie and culture within his 30-year-old business.
“We look for opportunities for our employees to interact not just at work, but outside of work,” House said, pointing to recent paintball contest his employees had against employees of a nearby tire shop.
“My employees just had a great time. That’s part of our culture, making it not just about work, but about a little bit of a life experience.
Committee panel discussion at the Collision Industry Conference (CIC) this spring. “Costco is thriving across the country.
“One of the big things that we learned about the difference is just a work-life balance [for employees],” Flett said. “We’ve all had techs who want to work 10- or 12-hour days. We don’t really allow that. We want to make sure they get their eight hours in and go home, to enjoy their family, be healthy, have longevity in life and longevity in the industry. We want fair compensation plans that make them want to not have to work 12-hour days.”
Another Washington state shop owner on the panel, Micah Strom of Modern Collision Rebuild and Service, said his company took a different approach to providing that work-life balance.
“We switched to four 10s, which is a little unusual in our industry, but has been very well accepted by our team,” Strom said. “It’s a great attraction for new talent coming in. We get three days a week to spend with our family at home. Some of them do have things going like daycare or getting kids off to school, so we have flexible hours. I think it’s important to accommodate because everybody has different things going on in life.”
“Does anybody know what national holiday was last Friday? You guys all missed the boat: It was National Grilled Cheese Day,” House continued. “There’s a holiday for every day of the year. You can Google it to create opportunities. We grilled cheese sandwiches for a whole staff. Everybody had a great time. We shut down for an hour and all have lunch together every Friday. We take the whole crew out boating every year. We just look for opportunities to build a team, to create that culture and make it more than just going to a job.”
“We switched to four 10s, which is a little unusual in our industry, but has been very well accepted by our team.”
— MICAH STROM MODERN COLLISION
The panel agreed that improved benefits have become as important as wages in terms of attracting and retaining employees.
“One thing that I’ve found surprising, that’s changed since I was a tech in the industry, is that it seems like people coming in want a better benefits package,” Flett said. “When I was in my 20s as a prepper or a painter, I just wanted a paycheck. Give me more money, fewer benefits. But now they definitely know the importance of having good benefits. We’ve recently added a 401(k) package. We pay for everybody’s vision and dental 100%, and we’ve increased our contribution to the actual medical portion of the health insurance as well. That helps us compete with the MSOs that also have a pretty good benefit package based on their size. So it’s
an investment on our part, but it’s worked out pretty well for us.”
Strom agreed.
“We have the dental, vision and life insurance,” he said. “We’ve had a really good health care plan, and a 401(k). We also just started [giving
stay the same, you’re going to end up being behind.”
Strom also said it’s important for the industry to be involved in their local schools, saying his shop tries at least once a year to bring an intern in for job shadowing.
new hires] one week’s vacation after six months. So they’re not working a whole year without having any paid time off. Times have changed. This younger generation needs something different. It’s about adapting and working with it, not against it. If you want to sit there and
“I’d have to say probably at least six of them we actually hired on afterwards,” he said. “If we aren’t involved with the schools, there’s so many other trades out there that are. In Kitsap County, they have a ‘Try-a-Trade’ event. This last year, they bused in 650 students from all around the Puget Sound. We had a booth there, to talk to them about the collision industry and the automotive industry, in general. Probably a lot of us growing up, your dad worked on cars, or your uncle or your grandpa. Nowadays, the kids don’t have that opportunity. The parents take their car to a shop. That’s all they know. So it’s our job to get out there, to talk to the kids, to get involved in the schools, and show them this a rewarding career and it’s a lot of fun.”
Shop owner Micah Strom said his shop tries at least once a year to bring in a local student to job shadow.
Shop owner Aaron Flett said an improved employee benefits package has helped his company compete with MSOs in terms of recruiting and retaining talent.
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Wisconsin Resident Receives Buick Envision Through NABC Recycled Rides
Michael Frey, of West Bend, WI, received a significant boost to his daily life with the donation of a fully refurbished 2019 Buick Envision, provided through the National Auto Body Council (NABC) Recycled Rides program in partnership with GEICO and Crash Champions.
Frey had managed to keep his old car running for 29 years before it finally broke down. Frey had been a client of Family Promise, living in its shelter, and in April he was able to move into an apartment on his own. He has recovered from health issues. Through all of this, he has kept his job as a taxi driver. The donation of the car ensures Frey will get to work and to appointments reliably.
“At Crash Champions, one of our core commitments is People First
Always,” said Maureen Marconi, business development manager for Crash Champions. “That commitment drives our culture -which is made up of selfless team members who believe in the power of giving back.”
The NABC Recycled Rides program is a collaborative effort involving businesses from all facets of the collision repair industry to repair and donate vehicles to individuals and families in need. Since its inception in 2007, the program has donated more than 3,300 vehicles valued at approximately $47 million.
“We want to find the people who need help and make a difference,” said Gene Caburian, vehicle donation program ambassador for GEICO. “It makes us feel wonderful to see people receiving a car that they would not otherwise be able to have.”
Additional partners presentation included Bob’s Main Street Motors, Commercial Auto Glass, Dentsmart, Russ Darrow Toyota, 800 Charity Cars, Copart and Enterprise.
Traffic fatalities in the U.S. continue to trend downward, with an estimated 8,650 deaths in the first quarter of 2024, representing a 3.2% decrease compared to the same period in 2023, according to the National Highway Traffic Safety Administration (NHTSA). The preliminary data for the first quarter of 2024 continues a trend of declining traffic fatalities that began in the second quarter of 2022. This positive development comes despite a 0.6% increase in vehicle miles traveled from January through March. The fatality rate per 100 million vehicle miles traveled also saw a decline, dropping to 1.13 from 1.18 in the previous year.
“We’re encouraged to see traffic fatalities continue to decline, but more work must be done to reduce these preventable tragedies on our roads,” said NHTSA Deputy Administrator Sophie Shulman. “NHTSA is working diligently to save lives and ensure our roads are safe for everyone inside and outside of vehicles.”
The NHTSA report also indicated fatalities decreased in 30 states and Puerto Rico, while 19 states and Washington, D.C., saw an increase, and one state remained unchanged.
Earlier this year, the U.S. Department of Transportation (DOT) released its 2024 Progress Report, marking two years since the launch of the National Roadway Safety Strategy (NRSS). This strategy, which adopts a safe system approach, has been central to efforts to address the fatality crisis on U.S. roads. Key actions taken in 2023 as part of the NRSS include the awarding of $1.7 billion in funding through the Safe Streets and Roads for All discretionary grant program, benefiting more than 1,000 communities and approximately 70% of Americans. Additionally, the NHTSA has accelerated the deployment of new vehicle safety technologies, initiated rulemaking for impaired-driving prevention technology standards, and updated key road safety regulations.
DOT has also expanded the use and support of the National Emergency Medical Services Information System, now accepting data from all 50 states, two territories and Washington, D.C. Moreover, the NRSS has welcomed more than 123 organizations as Allies in Action, including 36 state transportation agencies and safety offices.
Crash Champions Opens New Chicagoland Location
Crash Champions recently opened the doors to a newly constructed collision repair center in its home Chicagoland market. The new 22,000-squarefoot facility is located at 1652 Waukegan Road in Glenview, IL, and officially opened for business June 10.
It marks Crash Champions’ fifth new location in the Chicagoland area in the past sixth months, following the successful acquisition of Adams Collision in December.
“This is our home, and we’re always proud to expand the Crash Champions brand across
Chicago,” said founder and CEO Matt Ebert. “We look forward to serving our neighbors in Glenview with this brand-new state-of-theart facility, which features the signature high-quality service our customers have come to expect from Crash Champions.”
Crash Champions, which has added 30 locations to its overall network in 2024 alone, operates a nationwide platform of 649 locations in 37 states, including its Crash Champions LUXE | EV Certified line of repair centers, and backs all repair work with a written lifetime warranty.
BMW announced a significant recall affecting nearly 395,000 vehicles in the U.S. due to concerns over potentially explosive Takata airbags. The recall targets specific models to inspect and replace sport or M-sport steering wheels that may have been equipped with these faulty airbags.
The recall involves the following models:
2006-2011 BMW 3 Series Sedan (324i, 325i, 325xi, 328i, 328xi, 330i, 330xi, 335i, 335xi)
2006-2012 BMW 3 Series Sportswagon (325xi, 328i, 328xi)
2009-2011 BMW 335d According to BMW, “Certain vehicles may contain a sport or M-sport steering wheel equipped with a Takata driver’s front air bag module that contains a
PSDI-5 inflator that could have been installed by an owner, even though it was not officially offered or approved by BMW as a replacement part. The originally equipped air bag module did not contain an inflator with ammonium nitrate.”
The main concern is that these airbag inflators, which contain ammonium nitrate, can degrade over time and potentially explode when deployed, posing a serious risk to vehicle occupants. BMW will replace any Takata airbag modules identified by an inspection.
BMW expects to begin mailing recall letters to owners Aug. 23. The company urges owners to respond promptly to ensure their vehicles are inspected and, if necessary, repaired without delay. For further assistance, owners can contact BMW customer service at 800-525-7417.
This recall adds to the long list of vehicles affected by the widespread Takata airbag issue, which has impacted millions of cars globally.
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WIN Scholarship Campaign Raises Almost $10,000 To Support Students
The Women’s Industry Network (WIN) successfully raised $9,670 through its 2024 Scholarship Fundraiser Walk and Donations programs, supporting a record 30 scholarships awarded to students in collision repair technology programs.
WIN’s annual scholarships are presented to deserving female students enrolled in post-secondary collision repair technology programs. This year’s fundraising success, combined with group sponsorships and general fund commitments, allowed WIN to provide $30,000 in scholarship support.
“The Women’s Industry Network’s mission is to support and enhance the role of women in the collision repair industry, promoting education, professional advancement and networking,” said Laura Kottschade, 2024 chair of the WIN Student Relations Committee. “This also grows the collision industry’s much needed workforce — and that is why WIN and its sponsors play an important role in supporting and educating tomorrow’s collision repair professionals — today.
l CONTINUED FROM COVER CDK
Global Cyberattack
centers and phone lines.
Bloomberg reported an Eastern European group, later identified by several sources as BlackHand, launched the attack and sought an eight-figure ransom to end it. A U.S. cybersecurity agency said BlackHand shares code with another group in return for a cut of the cash. CDK has not disclosed whether or not it paid the group behind the ransom attack.
Publicly traded companies issued press releases noting they were “using alternative processes” until CDK is back. This included, as Bennett has experienced, a pen-and-paper approach.
On July 2, CDK said nearly all of the 15,000 car dealerships across North America were back online to its core management system.
Cliff Steinhauer, director of information security and engagement at National Cybersecurity Alliance in Washington, D.C., warned against a “decrease in workflow due to delayed parts shipments and service
“These additional funds also complement what our sponsors and our general fund provide, and have allowed WIN to award a record number of scholarships this past year alone,” she added.
bracelets.
April Keim and Christina Sepulveda, WIN Scholarship Fundraising co-chairs, noted the success of this year’s efforts. “We separated the Scholarship Walk, support sales items, and the Scholarship Fundraiser to simplify and expand it for participant involvement,” the co-chairs said.
The additional funds were raised through a series of initiatives, including the on-site Scholarship Walk held at the WIN Annual Conference in May in Newport Beach, CA, an ongoing donation campaign, and sales of SWAG and
approvals” in an email to Autobody News in late June, before CDK restored service.
Bennett said it hadn’t come to that for his shop. “I’m sitting on five or six weeks of work,” he said. “But it definitely disrupts the workflow.”
He went from next-day parts delivery to who knows when. The two dealerships Bennett works with are a large one he estimates holds between $4 million and $12 million in warehouse inventory, and a smaller local one. Even the latter, not on the CDK system, was affected when it gets parts from the larger one.
Bennett is part of a buying group of 24 independent shops in Iowa, Wisconsin, Minnesota and South Dakota, and all felt the effects.
“Every shop in Iowa is being affected,” he said in late June. “We have three major dealerships in the state which supply 75% to 80% of the parts” to Iowa shops.
Body shops weren’t the target of the ransomware attack, but they felt the aftershocks.
“It’s hard to plan for a supply chain disruption of this magnitude,” Bennett said.
“We’re especially proud of all the individuals, as well as the corporate/business involvement, with the top three organizations recognized by their generosity.”
The top three businesses contributing to the fundraiser were Enterprise Mobility with $1,700, Classic Collision with $1,190, and Jerry’s Abra Auto Body & Glass with $1,000.
“We are thrilled to support the Women’s Industry Network’s
mission to enhance the role of women in the collision repair industry,” said Mary Mahoney, vice president of Enterprise Mobility. “As a leading provider of mobility solutions, Enterprise Mobility has a major stake in the health of the automotive repair industry. We are committed to doing our part to invest in its continued success through participating in the WIN Scholarship fundraisers as well as providing foundational support for the Collision Engineering program, which aims to develop a new generation of highly skilled, motivated and passionate collision repair professionals.”
The record number of scholarships awarded this year also follows a record number of applications, thanks to WIN’s partnership with the Collision Repair Education Foundation (CREF). Each scholarship applicant received a complimentary WIN Student Membership, and award recipients are eligible to partake in WIN’s monthly mentoring program, which includes student engagement group calls and sharing best practices with industry professionals.
The Classic Collision team at the WIN Scholarship Walk, held during the WIN Annual Conference in May in Newport Beach, CA.
Platinum Equipment Named Preferred GFS
Distributor For Illinois
Global Finishing Solutions (GFS) announced Platinum Equipment is now its preferred automotive and truck refinish distributor in Illinois, giving body shops and collision repair centers a local equipment supplier they can trust.
developed a track record of completing projects on time and on budget to help shops save money and increase efficiency.
Platinum Equipment also services body shops in Minnesota, North Dakota, South Dakota and Wisconsin.
Founded in 2020, Platinum Equipment supplies, installs and services a variety of automotive repair equipment, including paint booths and frame racks. With more than 25 years of experience and a wealth of industry knowledge, Platinum Equipment provides full-service solutions, including training and growth planning, having
GFS is committed to providing the highest level of service and support to its customers through the finest distribution network in the industry. GFS is confident customers in Illinois will benefit greatly from increased access to technical support, parts, filters and a wide range of GFS products.
To talk with a GFS sales representative or be put in touch with a GFS distributor in your area, call 800-848-8738 (option 3) or email autorefinishsales@ globalfinishing.com.
To talk with a Platinum Equipment sales representative, call 320-491-6207 or visit platinum-equipment.com.
Ford Recalls 550,000 F-150 Trucks Due To Sudden Downshift Issue
Ford is recalling more than 550,000 2014 F-150 pickup trucks in the U.S. due to a transmission defect that can cause the vehicles to unexpectedly downshift to first gear at any speed.
The automaker said a lost signal between the transmission speed sensor and the powertrain control computer causes the truck to downshift unexpectedly. This sudden downshift can result in drivers losing control of their vehicles, raising the risk of crashes.
“This issue can lead to a loss of vehicle control, which increases the risk of a crash,” Ford said in documents released by the National Highway Traffic Safety Administration (NHTSA).
Ford said drivers might see an illuminated malfunction indicator light after the downshift. In some cases, the signal could be restored while driving and the truck will resume normal function. In others, the truck may need to be
stopped and restarted to get the transmission to work properly again.
Ford will update the powertrain control software at no cost to the owners. Notifications will be sent out to owners beginning July 1, and repairs are expected to be available in the third quarter of this year.
The recall follows an investigation initiated by the NHTSA in March, after it received complaints from owners experiencing abrupt downshifts. The investigation turned up 396 warranty and field reports and 124 customer complaints, involving 482 trucks. Additionally, there were 130 complaints to the government, with 52 alleging rear wheel lockups or loss of vehicle control. Notably, two complaints reported injuries and one reported a crash potentially caused by the issue.
Owners of any vehicle can check for open recalls using their vehicle’s VIN or license plate number at www.nhtsa.gov/recalls.
Honda Begins Production of First U.S.-Made Plug-In
Hydrogen EV
Honda announced the start of production for the 2025 Honda CR-V e:FCEV at its Performance Manufacturing Center (PMC) in Ohio, the first U.S.-made fuel cell electric vehicle (FCEV) that combines an advanced fuel cell system with plug-in EV charging capabilities.
“The Performance Manufacturing Center was conceived as a small volume manufacturing facility with a focus on craftsmanship, and I’m proud of how our production technicians leveraged their experience building the Acura NSX to take on the challenge of making this all-new Honda CR-V e:FCEV,” said Patrick McIntyre, lead of PMC. “Producing a zeroemission fuel cell electric vehicle is one more step toward Honda’s global goal of achieving carbon neutrality for our products and operations.”
The CR-V e:FCEV features a 270-mile EPA driving range, with the fuel cell system providing flexibility for longer trips through quick hydrogen refueling and
up to 29 miles of EV driving for short trips around town. This dual capability offers a unique blend of efficiency and convenience.
Production at the PMC involved significant adaptations, including the introduction of new assembly processes for the hydrogen tanks, fuel cell system and under-floor battery. Technicians also adapted a new weld system and modified the paint system to accommodate the larger, all-steel body of the CR-V e:FCEV.
The fuel cell system, developed in collaboration with General Motors, boasts higher efficiency and increased refinement, with
durability performance doubled and costs reduced by twothirds compared to the previous generation in the Honda Clarity Fuel Cell. The system is produced at Fuel Cell System Manufacturing LLC in Brownstown, MI. Honda’s CR-V e:FCEV also highlights advanced features such as customizable drive modes for efficiency and sportiness, rapid hydrogen refueling comparable to gasoline, and a quick 1.8hour recharge time using a level 2 charger. Additionally, the vehicle includes the Honda Power Supply Connector, allowing it to serve as a clean power source for small home appliances, power tools or camping equipment.
This production milestone aligns with Honda’s broader electrification strategy, which aims for battery-electric and fuel cell electric vehicles to represent 100% of its new vehicle sales by 2040.
Cappella Appointed COO, EVP At PCNA
John Cappella has been appointed executive vice president and COO at Porsche Cars North America (PCNA), reporting to President and CEO Timo Resch
Joining from Porsche Cars Canada where he was president and CEO since September 2022, Cappella is no stranger to Porsche Cars North America having spent three years as vice president, Area East. He replaces Joe Lawrence, who left PCNA on his own accord, effective July 2. Lawrence, who has spent 15 years at Porsche — 11 of which were at PCNA — will be leaving to, among other things, pursue more fully his love of the outdoors and his classic 968.
Cappella joined Porsche Cars Canada in September 2022 following a period of three years as vice president, Area East, for PCNA. He joined the brand in 2011 as director of network development at Porsche Cars Canada, Ltd., and then became managing director of Porsche Centre North Toronto in 2016. Cappella assumed his new role as EVP and COO at PCNA on July 2. His successor as president and CEO of Porsche Cars Canada will be announced in due course.
Severe Weather Driving Up Auto Repair Costs
The auto insurance and collision repair industries face escalating challenges due to severe weather, according to CCC Intelligent Solutions’ new Crash Course Q2 2024 Report.
This edition of the report, now released quarterly instead of annually, focuses on how severe weather events, particularly hurricanes and convective storms, are impacting the auto insurance and collision repair industries, and provides updates on data, insights, and trends impacting auto claims and repairs. The data was derived from an extensive analysis of 300 million claims-related transactions.
According to the report, severe weather has expanded its geographical impact, forcing the auto insurance and repair industries to adapt to new patterns and prepare for an unpredictable future. The report showed significant increases in repair times and costs due to storm-related damages.
Specifically, hail-related auto claims rose to 11.8% of all comprehensive claims in 2023, up from 9% in 2020, with average
repair costs for hail-damaged vehicles increasing by 15% over the past three years. In addition, hail claims are on average 21.7% more costly to repair than the average comprehensive claim and 25.6% costlier than the average repairable claim.
analytics at CCC and co-author of the report. Our Q2 report delivers critical insights, showing that the frequency and severity of storms are not just a seasonal issue but a persistent challenge that demands strategic planning and swift adaptation from industry players.
Extreme weather events are increasing in severity, becoming major disruptors in the auto claims and repair industry, said Kyle Krumlauf, director of industry
A case study within the report provides a detailed look at Hurricane Ian s impact in 2022, where comprehensive estimates in affected states, particularly Florida, saw nearly a sevenfold increase. This spike reflects a trend toward more severe and costly weather events.
The migration of populations to areas prone to hurricanes and hail, like Florida, Colorado and Texas, further intensifies these challenges, leading to higher
volumes of claims and increased stress on repair infrastructures.
The average total cost of repair (TCOR) increased 3.3% in Q1 2024 compared to Q1 2023, with labor rates and parts costs contributing to the rise. Q1 2024 saw significant improvements in repair cycle times, with vehicles entering repair shops six days sooner compared to Q4 2023.
Electric vehicles (EVs) accounted for 2.4% of all repairable claims in early 2024, up from 1.6% the previous year. Notably, EV repairs cost an average of 46.9% more than those for non-electric vehicles, primarily due to higher labor costs.
The medical aspect of auto claims is also seeing significant shifts, with treatment costs soaring and uninsured motorist injury claims increasing by 44% from early 2023. Additionally, high turnover among adjusters is impacting subrogation efforts, leading to a 16% drop in referrals.
The full report is available for download at cccis.com/reports/ crash-course-2024.
Eustis Body Shop announced its Lincoln, NE, Amber Hill location at 88th and Highway 2 has officially become part of the Rivian Certified Collison Network.
As the first of its kind in Lincoln and one of Nebraska’s few Riviancertified body shops, Eustis Body Shop is now equipped to provide
Additionally, being part of the Rivian Certified Collision Network enables Eustis Body Shop to carry out warranty work dispatched by Rivian Service Centers across the region.
“We’re excited to be able to serve Rivian owners in Lincoln and the surrounding communities,” said Vice President Ryan Clark. “With more and more EVs on the road, we’re happy that Eustis Body Shop can provide service for Rivian owners.”
its repair expertise to local Rivian owners. With this certification, Eustis Body Shop’s LincolnAmber Hill location is capable of repairing all aspects of a Rivian vehicle, including the structural and battery components.
To become a Rivian Approved Collision Center, Eustis Body Shop technicians underwent specialized training to develop expertise in handling unique equipment, OEM parts and repair techniques for Rivian EVs. This comprehensive certification process involves devoting numerous hours to training, ensuring technicians meet Rivian’s stringent standards.
Stellantis Plans Major Job Cuts, CostCutting Measures
In a recent investor meeting, Stellantis CEO Carlos Tavares unveiled a 30% cost-cutting strategy aimed at bolstering the company’s competitiveness against Chinese automakers. The move is expected to result in considerable job losses, particularly at the Auburn Hills, MI, office tower.
The cost-reduction plan targets operational efficiencies and cost competitiveness. “We have at least two plants that need a significant turnaround, at least two,” Tavares said. European plant managers will be brought in to oversee the changes.
A key component is the “EV first strategy,” designed to streamline operations and focus on EV production. “By the way, when we compare to Leapmotor [a Stellantis-owned Chinese auto manufacturing startup], those 30% cost-competitive edge is what I’m always talking about,” Tavares noted.
Auto analyst John McElroy told Local 4 that Tavares’ approach is taking an “axe” to the company’s expenses. “The old Chrysler group as we know it in Auburn Hills is
going to be a mere shadow of itself in just a couple of years,” he said, predicting substantial layoffs. McElroy estimated thousands of
“By the way, when we compare to Leapmotor [a Stellantis-owned
jobs could be at risk as Stellantis moves to outsource engineering to lower-cost countries like Turkey and Morocco.
The potential sale of the Auburn Hills headquarters building looms as Stellantis reduces its need for extensive office space.
“The tower almost undoubtedly will be up for sale,” McElroy said.
Stellantis Media Relations was not available for further comment, but industry insiders suggest the layoffs could begin as early as July.
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United Auto Workers (UAW) members working at Ultium Cells’ EV battery plant in Lordstown, OH, have ratified a landmark contract, setting a new standard in the EV industry. The agreement, approved by 98% of UAW Local 1112 members, promises substantial wage increases, bonuses and enhanced health and safety measures for the workers producing EV batteries for General Motors vehicles.
The contract, which was overwhelmingly supported over the weekend of June 1516, will see Ultium production workers’ hourly wages rise to $35 by October 2027 — a 112% increase from their initial $16.50 per hour when the plant opened in 2021. This historic agreement also includes a 30% raise over three years, an immediate $3,000 bonus, and the appointment of four full-time union health and safety representatives, along with a full-time union industrial hygienist.
“It enables me to just go ahead
and move forward in life rather than living from paycheck to paycheck,” said Ultium worker Donald Bevly
“This is setting a precedent that can be built on,” said Ultium worker Chris Wyatt. “This is a guideline that every other EV plant can follow through with.”
The UAW highlighted the transformative nature of this contract in a new video, featuring testimonials from the Ultium workforce, and emphasized the broader implications for the EV sector. “The benefits are just the best benefits I’ve had in my life,” said worker Lori Lovitz. “Paid hospitalization, holiday pay. I’ve never had this many paid holidays. Job security.”
The Ultium plant in Spring Hill, TN, is set to begin operations soon, with more battery plants expected to follow nationwide. This contract should influence labor agreements across the burgeoning EV industry, setting a benchmark for wages, benefits and worker protections.
AutoNation, Inc. announced a partnership with the U.S. Army through the Partnership for Your Success (PaYS) program, to provide soldiers with career pathways in the automotive industry following their military service.
The Army’s PaYS program guarantees soldiers five job interviews from a network of companies, including AutoNation, upon completing their service. This initiative allows soldiers to serve their country while preparing for their future careers.
AutoNation employs more than 1,000 veterans in various roles, from technicians to general managers. The company emphasizes diversity and inclusion, believing these principles drive innovation and success. Through the PaYS partnership, AutoNation is dedicated to offering veterans rewarding career opportunities and professional growth.
Since its inception in 2000, the PaYS Program has partnered with over 1,300 employers, spanning private industry, academia, and public institutes.
NHTSA Launches $9.5M Campaign To Combat Speeding
The National Highway Traffic Safety Administration (NHTSA) launched a $9.5 million campaign to combat speeding, a factor in nearly one-third of all traffic fatalities in 2022. The “Speeding Catches Up with You” campaign aims to remind drivers to reduce their speed and prioritize safety, especially during the busy summer travel season.
“Speeding accounts for nearly a third of all fatalities on our roads. While speeding may seem like the quick and easy option to make up some time when you’re running late, it puts you, your loved ones and everyone else on the road in danger,” said NHTSA Deputy Administrator Sophie Shulman during the campaign’s launch
event at Chicago’s Navy Pier.
The event featured notable figures, including NASCAR Cup Series driver Ross Chastain, Pullman National Historical Park Superintendent Teri Gage, and speed-related crash survivor Matthew Hamon. NFL’s Kansas City Chiefs player Xavier Worthy also contributed taped remarks. The speakers emphasized the deadly consequences of speeding and urged drivers to enjoy their journeys by slowing down.
Despite a slight decrease in speed-related fatalities in 2022, speeding still contributed to 29% of all traffic deaths that year.
NHTSA’s data revealed 12,151 people died and approximately 300,595 were injured in speed-related crashes, marking a 3% and 9% decrease from 2021, respectively.
The campaign will run through July 31 and includes English and Spanish ads across TV, radio and digital platforms. The initiative is part of the U.S. Department of Transportation’s
National Roadway Safety Strategy, which focuses on safer speeds and reducing roadway fatalities.
NHTSA also highlighted that speeding is not just a highway issue; 87% of speeding-related fatalities in 2022 occurred on non-interstate roads. The comprehensive approach aims to tackle speeding on all types of roads to ensure the safety of all road users.
In 2023, significant actions were taken to address roadway safety, including awarding $1.7 billion in funding through the Safe Streets and Roads for All discretionary grant program and accelerating the deployment of new vehicle safety technologies. These efforts are part of the Department of Transportation’s ongoing commitment to reducing serious and fatal injuries on U.S. roadways.
As the summer travel season continues, NHTSA encourages drivers to slow down and prioritize safety to ensure everyone reaches their destinations safely.
Fisker Becomes 2nd EV Maker To File For Bankruptcy in Past Year
Electric vehicle startup Fisker Group Inc. has filed for Chapter 11 bankruptcy protection — the second such filing by an electric vehicle company in the past year, after Lordstown Motors Corp. filed in June 2023, as the industry struggles to expand beyond early adopters.
The Manhattan Beach, CAbased company, founded by Henrik Fisker, disclosed in a filing with the U.S. Bankruptcy Court in Delaware that it has estimated assets between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million. The filing indicates that Fisker has between 200 and 999 creditors.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” Fisker said in a prepared statement. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”
Founded seven years ago by Fisker, who also serves as chairman and CEO, the company developed the 2022 Ocean allelectric SUV and the luxury plugin hybrid Karma, launched in 2011. Henrik Fisker is also known for his work on the BMW Z8 sports car. This marks his second failed automotive venture, following the bankruptcy of Fisker Automotive Inc. in 2013.
Fisker and other EV startups, like Lordstown, aimed to challenge industry giants such as Tesla and Detroit’s big automakers, who have aggressively entered the EV market. However, a slowdown in EV sales has hampered these efforts. J.D. Power reported EV sales grew only 3.3% to nearly 270,000 units in the first quarter of this year, a significant drop from the 47% growth seen last year. This slowdown has led to a reduced market share of 7.15% for EVs in the U.S. and forced major companies like Tesla to implement price cuts and job reductions.
Another EV startup, Rivian, paused construction of its $5
billion manufacturing plant in Georgia earlier this year to expedite production and save costs.
Henrik Fisker’s initial attempt to launch an electric car company ended in bankruptcy in 2013. Fisker Automotive Inc. had received a $529 million loan commitment from the U.S. Department of Energy, but the company failed to meet production targets, leading to the suspension of the loan in 2011.
Earlier this year, Fisker Inc. received a warning from the New York Stock Exchange after its stock price fell below $1. Although the company’s shares were not immediately delisted, Fisker announced plans to comply with NYSE’s listing standards.
The current bankruptcy filing does not include Fisker Inc. or its U.S. subsidiaries, nor its subsidiaries outside the U.S. Fisker is reportedly in advanced talks with financial stakeholders regarding debtor-in-possession financing and selling its assets.
Phone:
Parts Fax: 515-278-2917
Hours: M-F 8am-5:30pm; Sat 8am- 4pm www.bmwdesmoines.com jcarlson@lithia.com
VW Invests Up To $5B in Rivian, Announces Joint Venture
Volkswagen Group will invest up to $5 billion in Rivian in a deal announced June 25, which also forms a joint venture to leverage Rivian’s advanced technology to create electrical architecture and software to be used in both companies’ future EVs.
The deal includes an initial $1 billion investment by German automaker VW in U.S. EV startup Rivian, and up to $4 billion in planned additional investments.
The partnership is anticipated to accelerate the development of software for Rivian and VW by combining their complementary strengths, while lowering cost per vehicle by increasing scale and speeding up innovation globally.
It is expected to bolster Rivian’s financial security as it deals with a general slowdown in EV demand, and benefit VW by giving it access to Rivian’s proven hardware design and integrated technology platform, which will serve as the foundation for the development of future software-defined vehicle (SDV) platforms that will be applied to both companies’ vehicles.
Rivian plans to contribute its electrical architecture expertise and is expected to license existing intellectual property rights to the joint venture.
Both companies aim to launch vehicles benefiting from the technology created within the joint venture in the second half of the decade.
In the short term, Volkswagen Group will use Rivian’s existing electrical architecture and software platform, after VW validated that Rivian’s technology are compatible with its vehicles. The parties currently expect the completion of the joint venture formation in the fourth quarter of 2024.
Each company will continue to separately operate their respective vehicle businesses.
“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture,” said Oliver Blume, CEO of Volkswagen Group. “Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our
strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”
“We’re very excited to be partnering with Volkswagen Group,” said RJ Scaringe, founder and CEO of Rivian.
“Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”
Fix Network Announces 2025 Global Conference
Fix Network announced its highly anticipated Global Conference will take place April 27-May 1, 2025, at the luxurious Dreams Playa Mujeres Golf & Spa Resort in Mexico. The event promises to be a unique blend of business and inspiration, drawing network franchisees, company leaders, valued sponsor partners and special guests to a tropical paradise.
Set in the heart of the Mexican Caribbean north of Cancun, the all-inclusive, allsuites resort offers a stunning backdrop for the biennial event. The Dreams Playa Mujeres Golf & Spa Resort combines modern meeting facilities with impressive accommodations and amenities, ensuring a memorable experience for all attendees.
Building on the success of the 2023 Global Conference in Orlando, the 2025 event is expected to deliver an exceptional agenda filled with insights from industry and business leaders.
Michigan
MAPLE HILL HYUNDAI
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Raymond Kia Antioch (847) 395-3600 (847) 838-7997 Fax
M-F 7am-6pm; Sat 7am-2pm kweber@raymondchevrolet.com
KANSAS
Midwest Kia Wichita (316) 652-2960 (316) 652-2992 Fax
M-F 8am-6pm; Sat 8am-2pm jjensen@midwestkia.com
MICHIGAN
Kia of Lansing Lansing (517) 393-5700 (517) 393-6767 Fax
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Suntrup Kia
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Ex-Tesla Employee Pleads Guilty To Stealing Trade Secrets
A former Tesla employee admitted guilt in a case involving the theft and attempted sale of the EV manufacturer’s trade secrets.
Klaus Pflugbeil, arrested in March, conspired to sell proprietary information and manufacturing techniques gathered by Tesla.
The arrest occurred after Pflugbeil, alongside Yilong Shao, engaged with undercover federal agents posing as businessmen. Both men previously worked for Hibar Systems, a Canadian battery manufacturer acquired by Tesla in 2019. The duo then moved to China, attempting to establish a company to sell the stolen trade secrets.
Pflugbeil met undercover agents on Long Island, where he was apprehended. However, Shao remains at large, with his whereabouts still unknown.
Pflugbeil has since pleaded guilty to conspiring to send valuable trade secrets to what the U.S. Department of Justice refers to as a “leading U.S.-based electric vehicle company.”
“Today, the defendant is guilty
secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of battery-powered electric vehicles to an undercover law
“Today,
the defendant is guilty of boldly sending valuable trade secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of batterypowered electric vehicles to an undercover law enforcement agent expertly posing as a businessman on
Long Island,”
.S.
enforcement agent expertly posing as a businessman on Long Island,” said Breon Peace, U.S. attorney for the Eastern District of New York. “Today’s guilty plea
will swiftly bring to justice those who misappropriate intellectual property belonging to American companies, to safeguard our economy and national security.”
Although Tesla is not explicitly named in the announcement, the Department of Justice’s description of the victim company aligns with Tesla’s profile: “Victim Company-1 is a U.S.-based leading manufacturer of batterypowered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines.”
Pflugbeil and Shao advertised the stolen intellectual property on platforms like Google, YouTube and LinkedIn. Internal messages between the two revealed their efforts to disguise the stolen information. In one message, Pflugbeil mentioned reformatting a document to make it appear original and not like a direct copy of Tesla’s work.
Pflugbeil faces up to 10 years in prison.
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Driven Brands Joins AutoBody Alliance Network
Driven Brands and AutoBody Alliance (ABA) joined forces to expand the AutoBody Alliance’s extensive service network of auto body repair facilities throughout the U.S. Driven Brands is a leader in providing quality auto body care, aligning with the values of AutoBody Alliance as industry leaders. AutoBody Alliance certifies only the best in quality shops in the country and Driven Brands is now part of that valuable network.
“We are excited to work closely with the team at Driven Brands because of their influence in the marketplace the past 50 years, as well as their extensive experience in working with both Insurance Carriers and Fleet Companies,” said Steve Bruce, President, AutoBody Alliance.
AutoBody Alliance supports a managed, turn-key Direct Repair Network of automotive body repair facilities. The network connects insurance and fleet companies throughout the U.S. with premier auto body repair service providers.
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Ken Ganley Subaru North Olmsted North Olmsted (440) 788-7060 jtjoyce@ganleywestside.com Mon-Fri 7:30-6 Sat 8-5
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Michigan
Ed Rinke Chevrolet Buick GMC CENTER LINE
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LaFontaine Buick GMC Cadillac HIGHLAND
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Minnesota
Mills Parts Center WILLMAR
800-247-1158
866-235-6700 Fax M-F 8 am - 5:30 pm
Missouri Bob McCosh GM COLUMBIA 800-800-8071 573-449-4103 573-441-5632 Fax M-F 7 am - 6 pm Sat 7 am - 3 pm gmparts@bmcmail.com
Mon-Thu 7am-6pm Fri 7am-5:30pm Sat 7am-3pm matt.fullerton@cochran.com
Jake Sweeney Chevrolet
SPRINGDALE
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513-782-2846 Fax
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Joseph Chevrolet CINCINNATI
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I-CAR Steps Up Efforts To Recruit, Educate New Collision Repair Techs
June was Automotive Service Professionals month, and to celebrate, I-CAR announced several new or increased efforts to attract and train new collision repair technicians.
CollisionCareers.com
In 2023, I-CAR launched Collision Careers, in collaboration with the Collision Repair Education Foundation (CREF), to provide resources for students and career changers interested in joining the industry.
downloadable resources for parents, educators and school advisors, as well as a new, engaging video to better serve the collision repair industry in attracting and retaining skilled collision repair technicians.
The evolved website and new video feature real, working technicians and students who demonstrate that today’s professionals work in a clean, safe, cutting-edge environment. The website also houses information outlining career paths, descriptions for different roles within the industry, a search for accredited shops and schools and career guidance tools to illustrate the importance of a career in this field. Additionally, the website connects technician candidates with schools, industry partners and potential employers.
Recently, I-CAR announced an enhanced version of the program’s website, CollisionCareers.com. The updated site now includes highly sought after career path details and
“The response to the launch of our Collision Careers platform and website last year was so positive, we immediately began building new features and adding resources to the platform to support the industry, individuals, and influencers that all help bring new talent to collision repair,”
said John Van Alstyne , CEO and president of I-CAR. “We are dedicated to continuously enhancing and updating our talent attraction services for the industry, ensuring aspiring technicians can easily connect with top schools and shops to begin their careers.”
The Collision Careers program was honored in 2023 with a SEMA Global Media Award, recognizing the program’s outstanding efforts in attracting new talent to the collision repair industry.
New Early Career Technician Program: I-CAR Academy
The new I-CAR Academy is an educational program that includes a revolutionary entry-level collision repair curriculum for both career and technical schools and collision repair centers.
I-CAR Academy is the first industryneutral, comprehensive early career program designed specifically to attract, train and retain technicians, and recognize the schools and repair
be available to shops in August with additional tools tailored to improve shop culture and enhance the leadership and mentorship experiences.
I-CAR Academy is designed to kickstart a technician’s education journey, providing an engaging, solid foundation to launch into I-CAR Professional level (ProLevel) curriculum and Platinum Technician certification, along with OEM and supplier certified programs.
For shops, additional training and best practices for effective mentoring, which is key to technician development and progression, and culture best practices for shop leaders, which aids in retention, will be available.
“For over 45 years, I-CAR has been collaborating with the automotive collision repair industry to set the training standard, provide education programming that meets modern accepted standards, and credential technicians and shops who commit to staying current as technology and repair methods evolve,” said Van Alstyne. “I-CAR Academy is the next
I-CAR supported this year’s SkillsUSA National Leadership & Skills Conference, held June 24-28 in Atlanta, GA.
them to be properly prepared to succeed on day one and stay in our industry for a career.”
I-CAR Academy curriculum’s was developed through extensive research and development, industry participation and feedback, and is aligned with the I-CAR’s Automotive Collision Repair Industry Knowledge & Skills Protocol.
The curriculum provides collision repair fundamentals such as safety and tool skills, and foundational knowledge for entry level roles including estimator/ repair planner, non-structural, structural, and re-finish technician. Five badged learning areas are available now: Collision Repair Fundamentals; Disassembly and Reassembly; Plastic Repair; Aluminum and Steel Small Dent Removal; and Preparation for Refinishing, with Spanish-language and extended courses available later this year.
Schools and shops interested in the I-CAR Academy program can learn more at www.i-car.com/academy.
SkillsUSA National Competition
I-CAR continued its participation in the SkillsUSA National Leadership & Skills Conference (NLSC), a premier event recognizing excellence in career and technical education, held this year June 24-28 in Atlanta, GA.
For several decades, I-CAR
volunteers, instructors and employees have been volunteering with SkillsUSA on a local and national level, and providing materials, such as personal protective equipment (PPE) and welding coupons, for competitors.
This is the second consecutive year I-CAR and its Collision Careers platform are exhibiting at the event to engage with educators, students and parents and highlight its resources.
Support at the 2024 event includes a booth adjacent to the Collision Repair Competition where attendees can learn more about I-CAR’s resources and watch the competition livestream, which I-CAR is also sponsoring; competitor PPE materials; swag gift bags; participation in SkillsUSA “missions,” a scavenger hunt style event designed to encourage and inspire students’ development.
“I-CAR’s long-time support of SkillsUSA is a testament to our enduring commitment to fostering the next generation of skilled collision repair professionals,” said Arianna Sherlock, senior marketing director for I-CAR. “Now, we’ve taken our participation to the next level to ensure that students interested in collision repair know they can count on I-CAR for the duration of their career to fuel their passion and support their growth in an industry that drives innovation, mobility and progress.”
Toyota Suspends Grand Highlander, Lexus TX Production Over Airbag Issue
Toyota Motor Corporation announced the suspension of production and delivery of the 2024 Grand Highlander and Lexus TX SUVs, citing an airbag deployment issue.
Toyota said in a press release. The automaker said affected vehicles might not meet federal safety standards, thereby increasing the risk of injury during specific types of collisions.
The company previously said it is also recalling 145,000 of the SUVs in the U.S. due to the issue, which poses safety risks if the driver’s window is rolled down during certain crashes.
“Production and deliveries of the three-row SUVs are halted until a remedy can be determined. An improvement for mass-produced vehicles is currently under study,”
Schmelz Countryside Volkswagen St Paul 651-484-0424
Direct 866-869-0481 M-F 8am-6pm skokaisel@saabvw.com
MISSOURI
Molle Volkswagen Kansas City 816-941-4969
M-F 7am-6pm; Sat 8am-3pm jbarczak@mollevw.com ewolf@molleautogroup.com
The curtain shield airbag on the driver’s side may not deploy as intended during certain crashes if the driver’s window is rolled down.
Toyota said customers will be notified about the issue by mid-August, although the timeline for announcing the recall remedy remains unclear.
Both the Grand Highlander and Lexus TX are manufactured at Toyota’s assembly plant in Princeton, IN. The company is currently studying improvements to resolve the airbag issue.
For further details and updates on the recall, customers should visit www. toyota.com/recall or contact their local dealerships.
OHIO
Byers Volkswagen Columbus 614-552-5490
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Ken Ganley VW North Olmsted North Olmsted 440-734-1076
M 7:30am-7pm T-F 7:30am-6pm Sat 8am-4pm jim.j@ganleywestside.com www.kenganleyvwnortholmsted.com
Grant Dixton Joins GM
As Chief Legal Officer
General Motors announced Grant Dixton joined the company as executive vice president and chief legal and public policy officer, effective July 15. Dixton, who brings a wealth of experience from Activision Blizzard and Boeing, will oversee GM’s global legal, compliance, corporate governance, privacy and public policy functions, reporting directly to GM Chair and CEO Mary Barra
Before joining GM, Dixton served as the chief legal officer of Activision Blizzard, where he managed complex business transactions and regulatory issues. At Boeing, he held several executive-level positions, including general counsel and corporate secretary, providing strategic counsel on governance, litigation, intellectual property, and labor matters.
Dixton will replace Craig Glidden, who will now focus on Cruise, GM’s autonomous vehicle subsidiary. Glidden, who joined GM in 2015 as general counsel, will continue to serve as president and chief administrative officer of Cruise and as executive vice president and strategic advisor at GM.
Survey: 46% of U.S. EV Owners ‘Likely’ To Switch Back To Fuel-Powered Vehicle
A survey by global management consulting firm McKinsey & Co. found 46% of responding U.S. EV drivers are likely to purchase an ICE vehicle next.
The findings from the 2024 McKinsey Mobility Consumer Pulse, which surveyed 30,000 people worldwide who regularly use transportation, showed 29% of all EV owners around the globe are considering switching back. Of the nine countries surveyed, only Great Britain’s EV drivers had a higher percentage — 49% — than the U.S. who said they were likely to return to an ICE powertrain.
The top reason for switching back was charging difficulties, cited by 35% of global respondents. Right behind it were high total cost of ownership (34%) and impact on driving pattern on long road trips (32%).
A bit further down the list were lack of ability to
Hubler Nissan Indianapolis 800-960-9811 (317) 888-9227 (317) 884-1750 Fax M-F 8-6, Sat. 8-4 rhoffmann@drivehubler com nissanparts@drivehubler�com Gerald Nissan Matteson 708-720-2185 (708) 720-3709 Fax M-F 8-5:30, Sat. 8-3 mattesonnissanparts@geraldauto com www geraldnissanmatteson com
charge at home (24%), stress from worrying about charging (21%), a change in the respondent’s mobility requirements (16%) and not enjoying the driving experience (13%.)
Despite that, the survey also found global purchase intent for EVs continues to rise, but more slowly than before. Of current non-EV owners in six countries, including the U.S., 18% said their next vehicle purchase would be a battery electric vehicle, compared to 16% in 2022 and 14% in 2021. Interest in plug-in hybrid EVs (PHEVs) was slightly higher; 20% said their next vehicle would be a PHEV.
The percentage of non-EV owners who said they do not want to switch to an EV — 21% — held steady between the most recent survey and the 2022 survey. In 2021, that number was 24%.
The top reasons given for not wanting to switch to an EV
were “too expensive” (45%), charging concerns (33%) and range concerns (29%.)
Researchers noted the interest in EVs for respondents who drive luxury vehicles is nearly double that of those who drive entry level cars. The survey also found consumers who are considering buying an EV tend to be younger and more tech-savvy, with more disposable income, and live in an urban area with the ability to charge vehicles at home.
The survey findings come at a time when several automakers are scaling back EV production in response to a slowing demand.
New Members Join Auto Care Association Board
The Auto Care Association announced the elected members of its board of directors for the 20242025 term, effective July 1. This year’s board welcomes Bill Hackney and Dwayne Myers, who bring extensive experience in the automotive industry.
Hackney, the new executive vice president of merchandising, marketing and supply chain for AutoZone, has been a pivotal figure in the company since 1983. Hackney has held various leadership roles, including senior vice president of merchandising and vice president of store operations support. He is an ASE-certified professional with a bachelor’s degree from the University of Memphis and an MBA from Duquesne University.
Myers is CEO and managing partner of Dynamic Automotive. Myers has been with Dynamic Automotive since 1997, where he has advanced from technician to CEO. His career also includes experience in the heavy-duty truck field and as a tank mechanic in the U.S. Army. Myers holds a bachelor’s degree from UMUC and is dedicated to the ongoing development of his team and company culture.
Mass Market Cars Outperform Premium, EVs Struggle in J.D. Power Quality Study
Mass market vehicles outshone premium brands in the latest J.D. Power 2024 U.S. Initial Quality Study, which incorporates franchise dealership repair visits for the first time. The study revealed mass market brands, with an average of 181 problems per 100 vehicles (PP100), outperform the industry average of 195 PP100, while premium brands lag behind with an average of 232 PP100.
“It is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality,” said Frank Hanley, senior director of auto benchmarking at J.D. Power. “However, the industry can take solace in the fact that some problem areas such as voice recognition and parking cameras are seen as less problematic now than they were a year ago.”
The study also highlights the challenges faced by battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which require more repairs than their gas-powered counterparts. BEVs
have an average of 266 PP100, significantly higher than the 180 PP100 for gas-powered vehicles.
“Owners of cutting edge, tech-filled BEVs and PHEVs are experiencing problems that are of a severity level high enough for them to take their new vehicle into the dealership at a rate three times higher than that of gas-powered vehicle owners,” Hanley added.
False Warnings, Unpleasant Interior Smells
Key findings from the study include rising frustration with false warnings from rear seat reminder technology and advanced driver assistance systems, persistent problems with Android Auto and Apple CarPlay connectivity, and an increase in unpleasant interior smells across nearly all brands.
The 2024 U.S. Initial Quality Study, now in its 38th year, surveyed 99,144 purchasers and lessees of new 2024 model-year vehicles. For the first time, the study incorporated repair visit data, allowing for a more comprehensive
analysis of vehicle quality.
Highest-Ranking Brands and Models
Ram emerged as the highestranking brand overall with a score of 149 PP100, followed by Chevrolet and Hyundai among mass market brands. Porsche topped the premium brand category with 172 PP100, with Lexus and Genesis following closely behind.
Toyota Motor Corporation’s Takaoka 2 plant in Japan received the Platinum Plant Quality Award, while Honda’s Alliston 2 plant in Canada and Toyota’s Cambridge South plant in Canada shared the Gold Plant Quality Award for North/South America. BMW’s plant in Born, Netherlands, received the Gold Plant Quality Award for Europe and Africa.
The enhanced methodology and expanded data sources of this year’s study provide automakers with valuable insights to identify and address potential issues more effectively.
651-490-2652 Fax M-Thu 7am-10pm; F 7am-6pm Sat 8am-4pm pwienke@maplewoodtoyota com
Parts (440) 347-9723 Fax M-F 7-6; Sat 7-3 bmwparts@driveclassic.com classicmini.com
Illinois Laurel BMW of Westmont Westmont 630-230-2890 Direct Wholesale M-F 7am-6pm Sat 8am-3pm www.laurelbmw.com
Iowa BMW of Des Moines Urbandale 515-446-3660 515-278-2917 Fax
M-F 8am-5:30pm Sat 8am-4pm jcarlson@lithia.com www.bmwdesmoines.com
Missouri
Autohaus BMW St. Louis 888-811-6199 314-880-8428 Fax M-F 7am-6pm brian.fischer@bmwautohaus.com
Ohio
Kelly BMW Columbus 614-471-2277 614-476-2488 Fax
M-F 8am-6pm Sat 9am-2pm www.kellybmw.com
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