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Record Hailstone, 4.5 Inches Across, Marks Massive Storm, Extensive Vehicle Damage in Northern MI by Samantha Radecki, 9 and 10 News
These severe storms also dropped some massive hail in northern Michigan. In Ogemaw County’s West Branch—the hail set a new record—and caused some major damage. Just north of the town, a hail stone came in at 4¼ inches. It’s the largest hail Northern Michigan has seen since record keeping began back in 1950. And this big hail storm caused a lot of damage. “Massive hail, the size of baseballs, coming down like crazy.” The largest hail in West Branch was about the size of a softball. There
The largest hail stone reported during the storm was 4 ¼ inches
were also many reports of one and two inch hailstones in the area. See Massive Hail, Page 48
Record $24,000 Raised at Godfrey, IL, Body Shop Fundraiser “Christmas in July”
Taylor and Lily Freer with their family. Credit: riverbender.com
See Christmas in July,, Page 30
P.O. BOX 1516, CARLSBAD, CA 92018
It was beginning to look a lot like Christmas on July 31 at Freer Auto Body. Taylor and Lily Freer and the rest of the Freer family hosted its annual Christmas In July event, which
raised a phenomenal $24,000 for Community Christmas. Community Christmas is an annual United Way toy and clothing collection for the impoverished. The meal at Freer Auto Body in Godfrey consisted of Sloppy Joes, chips and Margaret Freer’s well-known cheesecake. The large group in attendance all had smiles on their faces, enjoying the meal with the joy of helping a good cause. Margaret Freer said the family’s goal was to top the $20,000 mark in fund-raising and they did that by $4,000, getting to $24,000 total. “The customers and sponsors
Change Service Requested
by Dan Brannan, riverbender.com
VOL. 4 ISSUE 12 SEPTEMBER 2015
www.autobodynews.com ww ww.autobodynews.com
Three-C Body Shop in OH Wins Lawsuit Against American Family Insurance Three-C Body Shop in Ohio recently won a lawsuit against American Family Insurance. On September 29th, 2014, during a bench trial in the Court of Common Pleas of Franklin County, Ohio, Civil Division, American Fam-
granted, and on April 29, the Magistrate reversed his earlier judgment and ruled in favor of Three-C Body Shop. The facts surrounding this matter stem from when the vehicle owner had a vehicle towed to Three-C Body shop
“We are happy that our customer [the vehicle owner] did not need to come out of pocket for work that was clearly owed by American Family,” —Bob Juniper, Owner and President of Three-C Body Shop
ily, the Plaintiff, levied a complaint against Three-C Body Shop. On April 10, 2013, American Family Insurance filed a lawsuit for replevin against the shop due to a dispute arising from Three-C Body Shop’s billing. On January 21st, 2015, the Magistrate ruled in favor of the insurer. Three-C’s legal team filed a Motion for Reconsideration, which was
for repair. During the repair process, American Family Insurance, recognizing they had not properly evaluated the cost to repair, and after reviewing Three-C’s blueprint deemed the vehicle a total loss. On September 19, 2011 the insurer made a settlement with the vehicle owner (their policy holder), took title/ownership of the vehicle and on
by Clay Chandler, The Clarion-Ledger
Mosley’s crusade began right after a 2013 hailstorm did millions of dollars in damage to vehicles and buildings in the Jackson area. Insurers were less than clear about what repair procedures were covered, Mosley said, an issue he took to Chaney in a meeting attended by representatives of State Farm Insurance, the company Mosley labeled as the worst offender. The summit seemed to iron out the issues, but it wasn’t long before the insurer reverted. Making the problem worse was insurers’ ignoring an opinion from Attorney General Jim Hood that Mosley said affirmed his position. Chaney countered with data his office gathered after the hailstorm that showed that, out of 100,000 claims filed (about 60,000 of which were for automobiles) a total of “50 or 60” complaints arose, all filed by three body shops, he said. He said last week that further investigation into the issue
See Three-C Body Shop, Page 14
Mike Chaney Defeats John Mosley for MS Insurance Commissioner in GOP Primary Incumbent Insurance Commissioner Mike Chaney likely secured another term on August 4, defeating Clinton businessman John Mosley in the Republican primary. Chaney and Mosley had sparred over insurers’ ability to dictate vehicle repairs at body shops. Mosley, whose family started Clinton Body Shop almost 40 years ago, said a series of complaints he and other body shop owners had taken to Chaney’s office regarding insurance companies moving the target as to what they would and would pay for was the primary reason he ran to unJohn Mosley (File seat the incumbent. photo), owner of Neither returned Clinton Body Shop, cell phone messaran for Insurance ges on the night of Commissioner of Mississippi. August 4.
See Mosley Defeated, Page 48
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
REGIONAL
3M Hire Our Heroes Tool Grants Awarded to
Ivy Tech Automotive Graduate. . . . . . . . . . . 11
Takata’s Plans For Airbag Components by Victoria Antonelli, Online Editor
Automotive Writer Speculates About Why the AL vs Steel Repair Cost Debate Won’t Be
Resolved Soon . . . . . . . . . . . . . . . . . . . . . . 19
AASP-MN to Host 2-Day R.O. Writer™ User
Ben Komenkul Became WIN Member to
AASP-MN’s Night Out With the St. Paul Saints
Carmakers are Keeping Data from Tech Partners . 16
Training Camp . . . . . . . . . . . . . . . . . . . . . . 12 a Hit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Family Touch Makes Lawrence Auto Body in
Livingston County, MI A Favorite . . . . . . . . . 10
Generational Equity Acquires DJ’s Autobody . . 12 MI Shop Repairs Damage, Nearby “Largest
Support Women in the Workplace. . . . . . . . 45
Car-O-Liner and AudaExplore Hold Seminar
on Trends in Fixed Operations . . . . . . . . . . . 20
CARSTAR All Line Supports Children’s Initiatives . 6 CCC Mobile Technology Enhancements
for Shops . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Hailstone in MI History” . . . . . . . . . . . . . . . . 8
CREF Fundraiser Co-Hosted by PPG Raises
Position at AASPI Golf Tournament . . . . . . . 32
EstimateScrubber.com Releases Invoicing APP . 16
Owner of Parkville Auto Body Holds Chairman
Precision Collision in MO Earns Certification. . 12 Record $24,000 Raised at Godfrey, IL, Body
Over $100,000. . . . . . . . . . . . . . . . . . . . . . 40
Getting Paid for Investing in Facility,
Equipment and Training . . . . . . . . . . . . . . . 50
Shop Fundraiser “Christmas in July”. . . . . . . 1
Hot Topics Discussed During Mitchell’s
Massive Storm, Extensive Vehicle Damage
I-CAR® Adds Nick Notte to Leadership Team. . 14
in Northern MI . . . . . . . . . . . . . . . . . . . . . . . 1
Restitution Ordered in WI Body Shop Gas
Q3 Industry Report. . . . . . . . . . . . . . . . . . . 52
July Auto Sales Surge Due to Pickups
and SUVs. . . . . . . . . . . . . . . . . . . . . . . . . . 37
Theft Case . . . . . . . . . . . . . . . . . . . . . . . . . 11
Mike Chaney Defeats John Mosley for MS
Against American Family Insurance . . . . . . . 1
Mopar Helps Dealers with New Service
Worker Shot in Columbia, MO . . . . . . . . . . . 4
More Stringent Auto Recalls in 2015 are
Illegal Activity . . . . . . . . . . . . . . . . . . . . . . . . 4
Nevada Shop Owner Films Pilot Show for
Three-C Body Shop in OH Wins Lawsuit
Two Arrested After Car Stolen, Body Shop Two MI Shops Shut Down After Alleged
Wanted Body Shop Owner Arrested in Iowa . . . 8 COLUMNISTS
Attanasio - Body Shops Nationwide are
Joining the Blog Party . . . . . . . . . . . . . . . . 36
Insurance Commissioner in GOP Primary . . . 1 Capacity Tool . . . . . . . . . . . . . . . . . . . . . . . 34
‘New Normal’ . . . . . . . . . . . . . . . . . . . . . . . 19 Reality Series ‘Every accident is a unique
story to be told’ . . . . . . . . . . . . . . . . . . . . . 22
New ALLDATA President Discusses OE Repair Info with Associations and Insurers at
NACE 2015 . . . . . . . . . . . . . . . . . . . . . . . . 32
Luehr - Why Past Success Could Be
New Sherwin-Williams Web-Based System Aims
Yoswick - ‘MSO Symposium’ Panels Presented
Nissan Donates $1M and 10 Autos to
Holding You Back . . . . . . . . . . . . . . . . . . . . 38
Ideas on Human Resources, Customer
Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . 26
Yoswick - CIC Committee Working to Eliminate
Hidden Costs of Parts Procurement . . . . . . 42
Yoswick - Farmer’s COD Program, CARSTAR’s
Growth, Estimates 10 Years Ago, Texas Rate
Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 NATIONAL
to Save Shops Time & Increase Their Profit . . 44
Habitat for Humanity. . . . . . . . . . . . . . . . . . 40
PartsTrader and State Farm Credited with
Increased Chrome Bumper Sales for LKQ . . 18
PPG Pickups Drive off With Honors . . . . . . . . . 6
Takata’s Plans For Airbag Components . . . . . . . 3
Team PRP Nationwide Recycling Network Adds
Ohio’s Milliron Auto Parts, Inc. . . . . . . . . . . . 4
Tesla Motors Selects Solera to Provide Collision
and Customer Communication Services . . . 38
4th Annual Aftermarket Telematics Challenge. . 48
Texas Law Enforcement Vehicles Hard Hit by
Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
U.S. on Pace for Deadliest Driving Year Since
Allstate Delivers Sharp Drop in Operating Apple is Building Self-Driver, Looking to
Test in Bay Area . . . . . . . . . . . . . . . . . . . . . 16
Takata Airbag Recall Say TV News Reports . . 12
2007, Says National Safety Council . . . . . . 34
oritized for replacement parts. A digital campaign to raise awareness is also in the works. Takata plans for both initiatives to eventually go national. There are several updates to the Takata recall in this month’s issue including a story on Texas Law Enforcement having to park some official vehicles due to lack of parts. Fiat Chrysler is supposedly expediting those parts orders.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Indexof Advertisers
Record Hailstone, 4.5 Inches Across, Marks
Now that Takata has begun replacing defective airbags in up to 34 million vehicle recalls, regulators and consumers alike are wondering, how safe are the new parts, and how long will they last? That is why the Japanese air-bag manufacturer is in the process of proposing a plan to address these concerns. However, the details have yet to be released to the public. Out of the 37-page document posted to the National Highway Traffic Safety Administration’s website on August 11, 35 pages are redacted (blank) due to confidentiality issues. NHTSA’s Gordon Trowbridge said the agency will hold a public hearing this fall, which regulators intend to coordinate. U.S. officials have described the Takata recall as the largest in our country’s history, affecting 11 automakers. The shrapnel that can spew out from exploded airbag inflators has resulted in at least eight deaths and more than 100 injuries. Although the cause is unknown,
it is believed the ammonium nitratebased propellant plays a role. Humidity is a trigger, so states with a more tropical climate are being pri-
Serving Illinois, Iowa, Indiana, Kansas, Kentucky,
Audi Milwaukee . . . . . . . . . . . . . . . . . . 27 Audi Wholesale Parts Dealers . . . . . . . 44 Axalta Coating Systems. . . . . . . . . . . . 55 BASF Corporation . . . . . . . . . . . . . . . . . 5 Blue Springs Ford . . . . . . . . . . . . . . . . 11 BMW Wholesale Parts Dealers . . . . . . 37 Car-Part.com . . . . . . . . . . . . . . . . . . . . 20 CarcoonAmerica Airflow Systems. . . . 30 CCC Information Services . . . . . . . . . . 23 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . 39 Charles Gabus Ford . . . . . . . . . . . . . . 43 Chief Automotive . . . . . . . . . . . . . . . . . 17 Classic Chevrolet. . . . . . . . . . . . . . . . . 35 Classifieds . . . . . . . . . . . . . . . . . . . . . . 54 Courtesy Subaru . . . . . . . . . . . . . . . . . . 6 Dent Magic Tools . . . . . . . . . . . . . . . . . . 8 Diamond Standard Parts, Inc. . . . . . . . 33 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . 10 EMM. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Equalizer Industries, Inc. . . . . . . . . . . . 34 Erhard BMW of Bloomfield Hills . . . . . 22 Erhard BMW of Farmington Hills. . . . . 22 Ganley Westside Subaru . . . . . . . . . . . 49 GM Wholesale Parts Dealers. . . . . . . . 47 Graham Auto Mall . . . . . . . . . . . . . . . . 26 H & S Autoshot Mfg. Co. . . . . . . . . . . . 27 Hall Volkswagen-Mazda . . . . . . . . . . . 14 Hendrick Automotive Group . . . . . . . . 21 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 28-29
Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC. Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Midwest
Contents
Hyundai Wholesale Parts Dealers . . . . 40 Isringhausen Imports. . . . . . . . . . . . . . 25 Jake Sweeney Chevrolet . . . . . . . . . . . 16 Kelly BMW . . . . . . . . . . . . . . . . . . . . . . 32 Kia of Des Moines . . . . . . . . . . . . . . . . 43 Kia Wholesale Parts Dealers . . . . . . . . 51 Laurel Auto Group of Westmont . . . . . 53 Luther Hopkins Honda . . . . . . . . . . . . 16 Maplewood Toyota-Scion . . . . . . . . . . 36 Mazda Wholesale Parts Dealers . . . . . 48 Mercedes-Benz . . . . . . . . . . . . . . . . . . 13 Mitsubishi Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 52 MOPAR Wholesale Parts Dealers . . . . 31 Morrison’s Auto Parts . . . . . . . . . . . . . 40 Nissan of South Holland . . . . . . . . . . . 12 Palmen Buick GMC Cadillac . . . . . . . . 24 Patrick BMW-MINI . . . . . . . . . . . . . . . . 41 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SATA Spray Equipment . . . . . . . . . . . . 15 Subaru Wholesale Parts Dealers. . . . . 38 The Hail Team, LLC . . . . . . . . . . . . . . . . 4 Toyota of Des Moines . . . . . . . . . . . . . 43 Toyota of Grand Rapids. . . . . . . . . . . . . 8 Toyota Wholesale Parts Dealers . . . . . 44 United Fire Group . . . . . . . . . . . . . . . . . 9 Urethane Supply Company. . . . . . . . . 18 Valspar Automotive . . . . . . . . . . . . . . . 56 VanDevere Kia-GM . . . . . . . . . . . . . . . 19 Volkswagen Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 45
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 3
Two Arrested After Car Stolen, Body Shop Worker Shot in Columbia, MO by Alan Burdziak, Columbia
The afternoon of July 30 took a strange turn for employees at RC Autobody, east of the Boone County line, when two men suspected of an armed robbery in Kansas City entered the business and allegedly shot an employee before stealing a car. The men had crashed their getaway car on Interstate 70 near the 137 mile marker at about 1 p.m. and ran to the shop located at 1450 Jade Road, Callaway County sheriff’s Lt. Clay Chism said. The suspects allegedly stole a customer’s car and shot one body shop employee, who Chism said suffered injuries that were not life-threatening and was recovering at University Hospital. Chism said another RC Autobody employee returned fire during the altercation but did not hit either culprit. After the men fled, the car was spotted south of Jefferson City. Authorities chased the vehicle to the Lake of the Ozarks, Chism said, where officers arrested Ruben D. Harris, 34, and Ryan A. Rummans, 33, both of Kansas City. Harris was jailed in Camden County on suspicion of first-degree tampering with a motor vehicle, resisting arrest and unlawful
use of a weapon, according to a Missouri State Highway Patrol arrest report online. Rummans is suspected of the same charges and was taken to a
Officers speak to a man on July 30 outside RC Autobody, 1450 Jade Road, after two men stole a car and shot an employee. Authorities arrested two suspects after a chase that ended near the Lake of the Ozarks. Credit: Vivian Abagiu/Tribune
hospital for observation. Information about the cases was not available in online court records Friday morning. The arrest reports said Harris was jailed without bond.
A Camden County Sheriff’s Office news release said the pursuit ended in Hickory County, where at least one of the suspects fired at an occupied civilian vehicle. Officers exchanged gunfire with the suspects after their car crashed into a ditch, the release said. Both men had gunshot wounds, White said. No one else was hurt, the release said. Patrol troopers and Callaway County sheriff’s investigators were still at the arrest scene late into the afternoon Thursday processing evidence. Chism referred questions about the chase and arrest to the highway patrol. Cpl. Scott White, the patrol’s spokesman, alerted reporters to the online arrest reports. “There will be a magnitude of charges” for the suspects, Chism said, “ranging from felony assault, stealing a motor vehicle, robbery—just a whole gamut of charges. Not to mention they’ll have multiple charges in various counties near Lake of the Ozarks for the chase near that area.” Chism said several agencies, including the Callaway County Sheriff’s Office and the Missouri State Highway Patrol, were cooperating in the investigation. We thank Columbia Daily Tribune for permission to reprint their story.
Team PRP Nationwide Recycling Network Adds Ohio’s Milliron Auto Parts, Inc.
clers is the right choice for Milliron to be aligned with,” explained Karl. “Over the last several years, we have seen major industry shifts that have changed the landscape in which we operate. I have watched the Team PRP organization grow over the years, and I am excited about the direction in which it is heading and the leadership taking it there. By joining Team PRP, we help preserve our existence in this industry and allow ourselves the best opportunity for profitability.” Milliron Auto Parts, according to a press release, “has placed strong emphasis on environmentally friendly and best management practices since its inception. We also place great importance on modernization and use of current technology to provide the highest quality service to their customers.” Milliron’s professional industry affiliations include Automotive Recyclers of America (ARA), United Recyclers Group (URG), and Ohio Auto and Truck Recyclers Association (OATRA).
4 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Lee’s Auto and D & S Auto are no longer in business after their licenses were summarily suspended, reported wbkb11.com. A joint investigation between Michigan Department of State and local Michigan State Police began after a tip was dropped that illegal activity was taking place. It was discovered that there were significant problems with record keeping after an inspection was completed by the Michigan Department of State at both dealerships. Both dealers are prohibited from selling or buying auto parts at this time. The Michigan State Police Alpena Post is working on a criminal investigation separate from the Michigan Department of State and will be presenting their findings to the Alpena County prosecutor, reported wbkb11.com. Consumers who feel threatened, suspect fraud, etc., are encouraged to file a complaint with the Secretary of State’s Office and they will take licensing action if warranted.
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Milliron Auto Parts, Inc., located in Mansfield, Ohio, has become the newest automotive recycler to join with the Team PRP nationwide network. “I am extremely excited to announce the addition of Milliron Auto Parts to Team PRP,” stated Team PRP’s Executive Director, Mark Gamble. “They are a key addition within our Midwest expansion that provides a critical transportation link to our Northeast partners, as well as benefiting our customers with expanded inventory and quicker delivery. Their inclusion certainly provides a building block for expansion in Ohio, and continues our strong momentum in adding first-rate partners across the nation.” Grant Milliron founded Milliron Auto Parts in 1954. Currently owned and operated by his son, Karl Milliron, this second-generation business now operates a hybrid facility, conducting its full-service operation alongside of its newly founded selfserve You Pull and Save business. Milliron operates on an 18-acre facility with 40,000 square feet under roof, and employs 26 individuals. “The Team PRP family of recy-
Two MI Shops Shut Down After Alleged Illegal Activity
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 5
PPG Pickups Drive off With Honors
The annual PPG Dream Car awards were presented at the Goodguys 18th PPG Nationals held at the Ohio Expo Center in Columbus, July 10-12. A 1955 Chevy pickup owned by Joe
1940 Ford Pickup
and Josh Bailey of Maryville, TN, and a 1940 Ford pickup owned by Robert Anderson of Savannah, GA stood out among the competition. The three-day PPG-Goodguys event displayed more than 6,200 custom cars and trucks and attracted over 75,000 auto enthusiasts. The PPG Dream Car awards are given to the two vehicles (cars or trucks) that best exhibit color, design, gloss and execution
in a paint job. Joe and Josh Bailey, a father-son team, presented their flawless ’55 Chevy pickup. The truck was acquired by an uncle in 1972 and handed down
1955 Chevy pickup
through the family. The Baileys took possession of it in March 2014 and worked evenings and weekends in their home shop to give the Chevy its redo. They achieved the award-winning finish using PPG’s DELTRON® 2000 DBC Basecoat and DCU2002 CONCEPT® High Solids Polyurethane Clear with PPG colors Fender Guitar Surf Green and 1957 Chevrolet India Ivory. Robert Anderson entrusted his
Ford pickup to Steve Legens at Legens Hot Rod Shop in Martin, TN. The shop customized and sandblasted the body to repaint it a custom-mix glossy green. Legens and painter Keenan Hailey
chose PPG’s ENVIROBASE® High Performance waterborne basecoat along with water-compatible GLOBAL REFINISH SYSTEM™ D8152 Performance + Glamour Clearcoat and D8372 Slow Hardener to earn a PPG Dream Car award. PPG is the official paint supplier to the Goodguys Rod & Custom Association. For information, call (800) 647-6050 or visit ppgrefinish.com.
CARSTAR All Line Supports Children’s Initiatives
CARSTAR All Line Auto Body has once again joined with the Knights of Columbus Council #6521 as a sponsor of their annual Father Frank Anksorus golf outing. This is the second year that CARSTAR All Line Auto Body has been a sponsor of the event.
(l to r) Mike Enos, State Farm Office Manager and Event Coordinator and Frank Cuzio, Korean War Veteran and 40-year Knights of Columbus Member
The fundraiser was held on July 12, with participation from more than 30 local businesses as golfers and hole sponsors. The event raised over $6,200, which will be used to support local youth programs and children with disabilities. CARSTAR All Line Auto Body is owned by Teresa Kostick and her brother, Mike. They participate in several local charity events throughout the year.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 7
MI Shop Repairs Damage, Nearby “Largest Hailstone in MI History” by Eric Stafford, TheMorningSun.com
A week after statewide storms that brought record-setting hail, a Clare body shop is among those busy fixing the damage.
Hail the size of baseballs—or larger—was reported Sunday, Aug. 2, 2015, near West Branch, Mich. Credit: Shelly Evergreen via the National Weather Service
Although rare, extensive vehicle damage brought on by hail storms is a devastating one nonetheless. Earlier last week, the National Weather Service said the largest hailstone in Michigan history was reported near West Branch, where it measured 4.25 inches—about the size of a softball. Destruction from that storm also
hit parts of Clare County, with Farwell and Harrison getting the worst of it—although nowhere near the size of the West Branch boulders. Jim’s Body Shop in Clare has connections and the facility to fast-track the repairs. Owner Jim Paetschow said many local garages and dealerships actually send vehicles damaged by hail to his shop because of ties to an outside company that specializes in paintless dent repair as well as panel replacement. As of Friday, Jim’s Body Shop has about 15 cars lined up for hail damage repairs. A lot of people don’t know what to do after their car is damaged due to hail and some don’t even know it’s covered by their insurance, Paetschow said. Drivers who have comprehensive insurance will be covered in the event of hail damage because it is considered an “act of nature.” However, the deductible and things like that vary depending on policies. Paetschow took to social media after the storm hit and encouraged people with dented cars or trucks to bring them in to his shop to get an estimate of the damages. Once an ap-
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pointment is scheduled, a repair can be completed in as soon as a day, depending on he damage, he said. While light damage can be quickly handled by the paintless dent professionals, more extensive damage can require entire panels to be replaced, which obviously take longer. Jim’s Body Shop usually only has to call in back-up once a year, but it all depends on the number of severe storms. Either way, it is starting to be known as a go-to place for dent repair in the area. “We do a lot of it,” Paetschow said. In the event of hail storm while driving, he said if a person can keep driving safely that will better help prevent damage than coming to a complete stop. Also, getting under a tree to break up the stones will help or the best bet, finding an overpass. “If you know a storm is coming, get it covered or at lease put a tarp over it,” said Paetschow. See also cover story this issue.
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Wanted Body Shop Owner Arrested in Iowa
The owner of a body shop in Arvada, Colorado who was wanted for not completing work on customer orders—and even possibly stealing their cars—was arrested in Cedar Rapids, Iowa, according to 9news.com. Ronald Cox, 54, was associated with a vehicle that had been reported stolen in Illinois when he was arrested. Ronald Cox was In July, Arvada arrested for allegedly Police issued a not completing work Crime Stoppers on customer orders. report seeking inPhoto: Arvada Police formation about Cox’s location. The news report said it was a Crime Stoppers tip that ultimately led to his arrest. Cox was wanted for misdemeanor theft and three felony counts of motor vehicle theft. The alleged incidents happened between February and July after police received reports of incomplete car repair work and missing vehicles from Always Available Mobile Mechanics after Cox disappeared, according to 9news.com. It was reported that Cox faces extradition to Colorado.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 9
Family Touch Makes Lawrence Auto Body in Livingston County, MI, a Favorite by Wayne Peal, Livingston Daily
Lawrence Auto Body isn’t the kind of place folks ever hope to visit. But they’re glad they did. The Brighton collision shop is again a People’s Choice Award winner, marking the fourth time in the past five years — and 14th time in the past 15 years — it has claimed the honor of Best Auto Collision Shop (Nondealer). For owner Kate Lawrence, success comes down to two things: trust and quality. “We have built strong relationships with our customers, they come back generation after generation,” she said. Because it’s small, the company can provide personal service, office manager Monica Winberg said. That includes calling people to let them know their cars are ready to handing them their keys in person. “It's the personal touch,” Winberg said. It’s not an award the company takes lightly. “We know there are many, many auto shops in Livingston County,” Lawrence said. But she also knows a little some-
thing about constituent service. Lawrence served eight years as Brighton mayor between 1999-2009 and is currently a county commissioner.
Mike Lawrence installs weather seal to a replacement hood on a 2014 Ford Escape in a bay of Lawrence Auto Body. The shop was honored a People’s Choice Award, this being the 14th win of the past 15 years. Credit: Gillis Benedict/Livingston Daily
The commitment to quality extends not just to the parts themselves, but to the way they are installed.
10 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
“When we have to paint around a window, we take the window out. We don’t just tape it off,” said Kate Lawrence’s son, Mike Lawrence, who runs the back shop. The shop area also features heated floors, rapidly defrosting even the most snow-covered vehicles for faster service. Operating since 1977 at the same location, the business underwent a major renovation in 2001. It added brick fronts along with a bay window, earning a beautification award from the city in the process. “We don’t look like an auto shop, and we don’t want to look like an auto shop,” Kate Lawrence said. If anything, the business at 306 W. Grand River Ave. in Brighton looks like a home — albeit one with an unusually large garage. But that’s appropriate for a family-owned business. Kate Lawrence’s husband, Larry Lawrence, founded the business after working several years as an auto-body painter. He learned the trade at Cars and Concepts, an auto-customizing company owned by onetime U.S. Rep. Dick Chrysler. There, he received several highprofile assignments, including paint-
ing the car of three-time Indianapolis 500 winner Johnny Rutherford. “But he always wanted his own business,” his wife said. Back then, it was a one-man shop. “When he’d have a major painting job, he’d lock the door and put out a sign saying ‘Come back in two hours,’” Kate Lawrence added. She was on board from the start, tending books after completing her standard 9-to-5 insurance industry job. The couple married in 1980, raising three sons. Though Larry Lawrence retired a few years ago, the business will remain in family hands for years to come. “You could have an auto shop almost anywhere, but we love Brighton and we love being here — right on the main drag,” Kate Lawrence said. Their customers wouldn’t have it any other way. We would like to thank Livingston Daily for reprint permission.
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3M Hire Our Heroes Tool Grants Awarded to Ivy Tech Automotive Graduate
Ivy Tech Community College Northeast automotive technology student Gabriel Davis and graduate Paul Hyde recently selected more than $3,000 each in tools and equipment, as recipients of the Collision Repair Education Foundation’s (CREF) 3M Hire Our Heroes tool grant for 2015. Thirty-five winners from across the country had the opportunity to select $3,000 worth of tools and equipment to help in their education and for employment after graduation. Since 2013, 3M has partnered with CREF in support of the collision repair industry and American veterans. 3M has donated $500,000 to be used toward scholarships and tool grants for individuals who served or are currently serving in the military and their family members. “Our nation’s military veterans deserve every opportunity to get a great start in our industry,” said Dale Ross, U.S. marketing operations manager at
Ivy Tech Northeast automotive technology student Gabriel Davis (left) and graduate Paul Hyde (right) display $3,000 in tools and equipment. They are joined by Randy Minobe, senior account representative with the 3M Automotive Aftermarket Division
3M Automotive Aftermarket Division. “We are happy to continue to give back to those who have served in our military through the 3M Hire Our Heroes program, and we wish them all great success in their future careers.”
Davis served in the Indiana Army National Guard for nearly eight years before enrolling at Ivy Tech Northeast. “This grant means that there are companies out there that recognize vets are just as hard-working and dedicated to what we do as our civilian counterparts,” Davis said. Hyde, a spring graduate, served in the U.S. Army for five years. “My passion for the automotive field is screaming, and the tools that have been put into my hands by this grant will ensure that all of the hard work in getting to this point will be worthwhile,” Hyde says. Ivy Tech Northeast was one of only two colleges in 2015 to have more than one 3M Hire Our Heroes tool grant recipient. “When you have more than one individual win, that says a lot about your program,” said Darrel Kesler, dean of Ivy Tech Northeast’s Technology Division.
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Restitution Ordered in WI Body Shop Gas Theft Case
A Colfax, WI man must pay restitution for using his former employer’s fuel account to fill more than $6,000 worth of gasoline into his personal vehicle, according to: leadertelegram.com. Jacob D. Caswell pleaded guilty in Eau Claire County Court to three amended misdemeanor counts of theft. He has paid $4,500 in restitution. Leadertelegram.com reported that as part of a two-year deferred agreement with prosecutors, two of the three theft charges will be dismissed if Caswell commits no new crimes, pays a $250 fine and a total of $6,993 in restitution, and has no contact with Madison Street Auto Body. According to the criminal complaint, police investigated thefts while Caswell was employed at Madison Street Auto Body. The shop has a fuel account intended for employees using company vehicles. A monthly statement shows origCaswell made 133 transactions. He was fired in April 2014 and admitted using the fuel card but told police the body shop was supposed to deduct that amount from his paychecks.
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Texas Law Enforcement Vehicles Hard Hit by Takata Airbag Recall Say TV News Reports Given that more than 30 million vehicles are affected by the massive air bag recall, a few local vehicles may not seem noteworthy, but for a Sheriff’s department the recall is taking a toll. Included in the 30 million are 2005 to 2010 Dodge Chargers in use by many law enforcement departments across the United States. Texas law enforcement vehicles have not been spared the recall, according to TV reports by Dallas’ NBC5. Ten Ellis County Sheriff’s Department vehicles are not currently being used after Sheriff Johnny Brown ordered them out of service when he learned they fall under the massive nationwide recall of defective Takata airbags that when deployed can rupture internally with too much force and send metal fragments flying into the cabin of the vehicle. “We made the decision at the time to park all our 2010 units,” said Lt. James Saulter. “We don’t want a deputy getting hurt or somebody that’s been arrested getting hit with flying fragments, as well as we have folks that ride out with us, and we didn’t want anybody getting hurt.” Saulter said the department was
notified the parts to take care of the recall were not available. “It’s a huge impact,” Saulter said. “But we definitely want our citizens to know it’s not going to impact us being able to answer calls or take care of them.” NBC 5 reached out to Fiat Chrysler Automobiles and was told the parts are now en route to Ellis County and service for those units is imminent. “Customer safety is a top priority at FCA US LLC. Accordingly, we are executing this recall campaign in the most expeditious manner possible, keeping NHTSA fully apprised of our progress,” said a statement from the company. With safety concerns looming, some departments immediately started repairs when the parts were available, including both Irving and Dallas police departments. In Dallas, about 530 of the departments Dodge Chargers fall under the recall, according to Equipment Building Services representative Charitta Johnson. However, Dallas Police did not remove any of the recalled vehicles from service. Johnson tells NBC 5 the recall did not instruct
Assured Performance Collision Care, a nonprofit consumer advocacy organization, is working with automakers such as Ford, Fiat, Chrysler, Hyundai and GM to certify body shops that maintain the tools, equipment, training and facility modification necessary to repair the participating automaker brand vehicles back to the manufacturer’s specifications. These shops are also officially recognized by the automakers and carry special credentials. Precision Collision Center, with sites in Gladstone and Pleasant Valley, MO is part of the Certified Collision Care Provider repair network. The shops that receive the certification include only best-inclass collision repair businesses that have passed a rigorous inspection and evaluation process essential to help ensure a proper and safe repair. “Consumers need the confidence and peace of mind to know their vehicle is repaired by a shop that has what it takes to ensure the vehicle safety,” said Scott Biggs, CEO of Assured Performance Collision Care.
Generational Equity, a mergers and acquisitions advisor for privatelyheld, middle-market businesses, announced the acquisition of its client, DJ’s Autobody, Inc. dba Wheeler’s Autobody Supply (Wheeler’s), headquartered in Waterloo, Iowa, by LKQ Corporation (LKQ) headquartered in Chicago, Illinois. The acquisition closed on April 20. Founded in 1985, Wheeler’s sells aftermarket sheet metal—products primarily for the outside of cars and trucks. The company also sells automotive paint, and associated products to collision centers, body shops, parts stores, dealerships and salvage yards. Managing Director Michael Goss and his team, including affiliate Michael O’Malley and Jene’ Hong, and Vice President Julie Sandoval, led the Generational Equity deal team that advised Wheeler’s on the transaction. “Both parties saw the fit and were committed to make the deal happen,” said lead dealmaker Hong. LKQ offers a broad range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, recreational and performance vehicles.
Precision Collision in MO Earns Certification
Generational Equity Acquires DJ’s Autobody
12 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
that the vehicles should not be used. In Irving, 46 of the police department’s more than 250 vehicles are affected by the recall. The department has already repaired 10 of those units and is continuing repairs on others. “It really hasn’t affected us too bad. Some of these are unmarked, they might be in use by our detectives or not in use every day,” said Irving Police Department spokesman James McLellan. “Only a portion of those are marked cars, and those are being called in as they have the parts and paperwork for them, so it really doesn’t have an impact on our operations.” Chrysler Fiat Automotive also pointed out there are two airbag inflators that are subject to recall, Alpha and Beta. All deaths have been associated with the Alpha inflators. FCA vehicles have never been equipped with Alpha inflators, according to the company. The company is aware of an issue with a Beta inflator in a 2006 Dodge Charger, which resulted in non-life threatening injuries, according to FCA. Fiat Chrysler told NBC 5 they are not using Takata parts to replace the potentially defective inflators.
AASP-MN to Host 2-Day R.O. Writer™ User Training Camp
The Alliance of Automotive Service Providers of Minnesota (AASP-MN) will host a 2-Day R.O. Writer™ User Training Camp, from 8:00 a.m. to 4:00 p.m., September 30 and October 1 at the Ramada Plaza, 1330 Industrial Blvd., NE, Minneapolis. The training, led by R.O. Writer™ Software Expert Paul Allen Stewart, is designed to provide a new level of understanding of the tools and capabilities built into the R.O. Writer™ software. The training covers recommended setup and best practices, as well as how to build a business and marketing plan using data collected. Topics include: The cost to attend the two-day camp is $295 for members and $395 for non-members. Each additional person from the same company may attend for $150. For additional information or to register, contact the AASP-MN office at (612) 623-1110 or 800852-9071 or visit www.aaspmn.org.
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Continued from Cover
Three-C Body Shop
October 5 took possession of the vehicle. Prior to this, Three-C Body Shop deducted its billing for services rendered from the amount received for the repair. Because the final billing was the same as the initial payment for repair, no monies were left for reimbursement to the insurer. The insurer contested ThreeC Body Shop’s billing, which prompted the legal proceedings. American Family filed a motion for replevin against Three-C Body Shop to argue the charges and to take possession of the vehice, of which they already obtained from the shop one year, six months and 24 days earlier. When asked why the insurer would attempt litigation to seize a vehicle they already possessed, Bob Juniper, Owner and President of Three-C Body Shop, stated, “It’s either one-hand didn’t know what the other-hand was doing and it was a false action, which is unlikely; We have been to court a number of times with American Family and find them to be quite inept in that venue. It’s more probable that the insurer used the action as a predatory practice to use the legal
system as a means to fight us on our charges and it was with intent that the insurer filed a motion with the court for a writ of replevin.” A writ of replevin is a prejudgment process ordering the seizure or attachment of alleged illegally taken or wrongfully withheld property. Where a dispute in billing is at question, the disputed amount is paid to the courts and the court issues a bond that enables the consumer possession of his/her vehicle and holds the funds in escrow until either the time passes or the matter is heard by the courts and settled. The repairer has a predetermined time (i.e. 60 days) of which to file a lawsuit against the customer to settle the dispute. Juniper said, “Some insurers have used and abused the legal system and employed a replevin in an effort to dare the repairer into filing a lawsuit against their customer to recover their billing. This generally results in a lengthy legal battle (as was ours) which the insurer will make as costly as possible. The insurers know that most shop owners are ill prepared and don’t want to file a lawsuit against their own customers and incur the legal costs, and as a result, the repairers often cave to the insurer’s pressures and reduce their billings. This often times results in the
shop merely accepting what they can for their billing and foregoing or “eating” the rest to avoid a replevin. Thereafter, the repairers accept what they’re given to avoid similar issues in the future. The insurer wins and the repairer loses. At Three-C we don’t play that game; we charge what’s competitive and reasonable and will do what is necessary to collect it and stop such behavior.” In this instance the court initially sided with the insurer and then reversed itself when the Magistrate learned that Three-C had relinquished the vehicle and American Family Insurance had taken possession of it well before the replevin was filed. The court found on behalf of Three-C Body Shop and that American Family was not entitled to any award. There was also a claim made by American Family against Three-C Body Shop for violation of the Consumer Sales Practices Act that the Court ruled in Three-C’s favor and dismissed it. American Family had 14 days to appeal the decision; they did not do so. “It is rare for a court to grant a motion to reconsider so it was a good win. We are happy that our customer (the vehicle owner) did not need to come out of pocket for work that was clearly owed by American Family,” said Juniper.
I-CAR® Adds Nick Notte to Leadership Team
I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced that Nick Notte has joined I-CAR as Director, Finance and Operations. As a member of the leadership team reporting to John Van Alstyne, CEO & president, Notte will lead the Accounting and Finance, Data Services, Information Technology, Project Management and Lean Process Improvement teams. Notte will be based at I-CAR’s Training Support Center in Hoffman Estates, IL. “Not only does Nick bring deep background across the collision repair industry, he is also recognized for his contributions to our industry, Nick Notte joined and he brings I-CAR as Director, solid operational Finance and and financial Operations leadership experience to the role,” said Van Alstyne.” Before joining I-CAR, Notte was most recently with PDR International as COO.
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Apple is Building Self-Driver, Looking to Test in Bay Area
Apple is building a self-driving car in Silicon Valley, and is scouting for secure locations to test it, according to Britain's Guardian newspaper. Documents show the oft-rumoured Apple car project appears to be further along than suspected. Reportedly, engineers from Apple’s secretive Special Project group met in May with officials from GoMentum Station, a 2,100-acre former naval base near San Francisco that is being turned into a high-security testing ground for autonomous vehicles. In correspondence obtained by the Guardian under a public records act request, Apple engineer Frank Fearon wrote: “We would ... like to get an understanding of timing and availability for the space, and how we would need to coordinate around other parties who would be using [it].” Apple declined to comment. GoMentum Station is on the old Concord naval weapons station still guarded by the military, making it “the largest secure test facility in the world for testing validation and commercialization of connected vehicle (CV) applications and autonomous vehicles technologies to define the next generation of transportation network infrastructure.”
EstimateScrubber.com Releases Invoicing APP
VehicleOwnersGuide.com, announced the release of the first of its’ ScrubberApps—a joint development with Saint-Gobain/Norton Abrasives to develop the Norton Invoicing App. The Norton Invoicing App allows estimatescrubber.com subscribers to create an invoice for seam sealers, corrosion protection, foams, accessories, metal bonding, bumper/ plastic repair. The Norton Invoicing App 1) automatically imports R.O, vehicle and owner information from the scrubbed estimate, 2) allows building the invoice with point and click technology, and 3) prints “the” Saint-Gobain/Norton Invoice using current retail pricing. The App is provided at no extra cost to estimatescrubber.com subscribers. “The Norton Invoicing App helps our customers create invoices supporting their materials usage on an RO basis. The invoice will have the Saint-Gobain/Norton logo and current retail prices. You just select the products and quantities used to build the materials invoice. It will help our customers more easily document their materials usage using our invoice format and current retail prices.”, said Randy Vidal, National Accounts, Norton/Saint-Gobain.
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Carmakers are Keeping Data from Tech Partners
Allstate Delivers Sharp Drop in Operating Earnings
Allstate Corp.’s 2nd Qtr operating earnings fell 41% on lower auto insurance margins and seasonally high catastrophe losses. Operating earnings are a widely watched benchmark for the insurance industry because they exclude realized capital gains and losses from companies’ investment portfolios, among other items that aren’t considered recurring on a quarterly basis, reported nasdaq.com. The decline in operating earnings reflected a broad-based increase in the frequency and severity of auto accidents by state, risk class and other factors. One of the largest drivers of Allstate’s disappointing performance was its higherthan expected auto claims costs; the company paid more in quarterly claims than it collected in premiums. The last time that happened was in the fourth quarter of 2012, when Hurricane Sandy sent auto claims skyrocketing. But there’s no natural disaster to blame this quarter. In a conference call with analysts last week, Allstate CEO Tom Wilson and President Matthew Winter attributed the increased claims to more drivers putting in more miles on the road, according to Crain.
Carmakers are limiting the data they share with technology partners Apple and Google through new systems that link smartphones to vehicle infotainment systems, defending access to information about what drivers do in their cars, according to reports in straitstimes.com. Car companies hope that the vehicle data will one day generate billions of dollars in e-commerce, though they are just beginning to form strategies for monetising the information. Apple and Google already make money from smartphone owners by providing a variety of products and services, from digital music to targeted advertising, and connecting phones to car systems will almost certainly extend their reach. But as infotainment systems such as Apple’s CarPlay and Google’s Android Auto become more widespread, car companies hope to keep tech providers from gaining access to a wealth of potentially profitable information collected by computer systems in cars. Some car companies have specifically said they will not provide Apple and Google with data from the vehicle’s functional systems—steering, brakes and throttle, for example.
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PartsTrader and State Farm Credited with Increased Chrome Bumper Sales for LKQ Since State Farm implemented PartsTrader as its electronic parts ordering partner, its use of aftermarket parts appears to be changing based, in particular, on increased chrome bumper sales. Last summer State Farm released a document titled “Replacement Parts Promises” which suggested new aftermarket and recycled parts policies. Now, more details have been revealed of State Farm impacting the growth of aftermarket chrome bumpers from quarterly financial statements by LKQ. LKQ CEO Rob Wagman told analysts during LKQ’s most recent July 30 quarterly conference call that chrome bumper sales were up nearly 16.9% and attributed it to the nation’s No. 1 auto insurer. In previous conference calls Wagman has cited State Farm purchasing aftermarket chrome bumpers as a factor in increased sales, as recorded in the Seeking Alpha website’s transcripts of the calls. State Farm has been out of general aftermarket purchasing since October of 1999, when the company “temporarily” suspended the use of aftermarket crash parts. At the time Edward B. Rust, chairman and chief executive officer State Farm Mutual Automobile Insurance Company, said, “We don’t want
our policyholders caught in the middle of the lawsuit-driven confusion and misinformation about the quality of the aftermarket parts we specify. To prevent that from happening, we’ve decided that the best course for now is to begin specifying only crash parts made by auto manufacturers.” In a consumer document released July 2014 called “Replacement Parts Promises” on the State Farm website, the company says: “We're committed to your satisfaction regarding new non-original equipment manufacturer (non-OEM) and recycled parts used in the repair of your vehicle. Below please find additional information regarding the State Farm promise of satisfaction.” A link to a PDF entitled All States but Indiana is viewable at https: //www.statefarm.com/claims/resources /auto/replacement-parts-promises. The linked document states in part that “State Farm® keeps the promise of “Good Neighbor” service every day as we pay individual claims. Our promise includes a commitment to your satisfaction regarding new non-original equipment manufacturer (non-OEM) and recycled parts used in the repair of your vehicle. “When a damage estimate is prepared, it may include competitively
18 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
priced, readily available new nonOEM parts, recycled parts or new parts provided by the manufacturer of your vehicle.” Wagman told investors on April 29, 2014, that the insurer’s return to aftermarket parts with certified chrome bumpers came “in close conjunction” with its partnership with PartsTrader. On Oct. 30, 2014, LKQ CEO Rob Wagman cited “again really good growth on chrome bumpers” for the third quarter, with the company up 22.4 percent likely partly because of State Farm interest. He also told investors that GEICO had just become the No. 2 auto insurer, and “they’re very active users of our products.” On Feb. 28, 2015, Wagman reported a 22.3 gain in fourth-quarter 2014 chrome bumper sales and told analysts LKQ was “cautiously optimistic” State Farm would use more aftermarket parts. Despite the big 2014 first quarter of chrome bumper sales, purchases of the parts were still up 19.5 percent, Wagman said April 30. “We continue to really raise the number on the products they (State Farm) are writing in the aftermarket, in the bumpers,” Wagman said. “Looking at these particular part types, year-over-year sales of after-
market chrome bumpers were up 30 percent in January, 29 percent in February and 33 percent in March. While some of this increase may be weatherrelated, we believe that some of the increase is related to State Farm’s new policy regarding aftermarket certified chrome bumpers. We continue to have open dialogue with State Farm, and we hope that they will continue to expand their use of our aftermarket product offerings.” Wagman later said in the call that LKQ wasn’t involved in the decision. “They came upon this on themselves, and they did it in conjunction with the rollout of PartsTrader,” Wagman said, according to the transcript. “And as PartsTrader has gone across the country, obviously, we’ve seen more and more sales. Our reps that are on PartsTrader reviewing those estimates know about those 2 part types and are pushing them hard.”
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Automotive Writer Speculates About Why the AL vs Steel Repair Cost Debate Won’t Be Resolved Soon
“Here’s why we won’t really be able to answer the question of aluminum vs. steel repair costs for a long time,” writes Richard Truett for Crain.com. ● There are too many different kinds of vehicle accidents. The F-150 is going to have to be crashed thousands of times in every conceivable way before we’ll really know about the true cost of repairs. In all likelihood, some repairs will be less and some will be more. ● There are too many insurance companies with different levels of coverage. One body shop operator recently told me many insurance companies don’t distinguish between steel and aluminum repairs. He said it takes longer to repair aluminum and often the owner of the vehicle has to pay the difference between the repair cost and the insurance payout. ● Body shops charge different labor rates. ● The investment needed in tools and facilities to repair aluminum is substantial, more than $100,000 in many cases as body shops have to buy the tools, train the technicians and build a separate area to fix the aluminum-bodied trucks. So, some body shops may be charging a premium to
fix the truck and pay off their investment. “To Ford’s credit,’ says Truett, “the company has made repairs as easy as possible by creating hundreds of small repair panels that can be stitched in to the F-150’s body. And these parts are shipped with the repair instructions. That saves time. “But in many cases, repairing an aluminum panel is more complex than fixing a similar steel panel. The 2015 truck’s body is held together with rivets and adhesive, which usually takes more time to repair than a steel part. Here’s the bottom line: If it turns out there is a significant difference in repair costs for the new truck, Ford will likely do whatever it takes to keep the F-150 competitive. The stakes are simply too high in the highly profitable, hyper-competitive U.S. truck market. We don’t really don’t have enough information to definitively say the new F-150 is more or less expensive to fix.” For the full article go to: http:// w w w. a u t o n e w s . c o m / a r t i c l e / 20150731/BLOG06/150739949/itstoo-early-to-settle-aluminum-vs.steel-repair-cost-debate
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U.S. for electrical problems that can prevent air bags from inflating; VW had determined it wasn’t a safety issue. Automakers are facing electronic issues they haven’t seen before. Fiat Chrysler recalled 1.4 million vehicles because of concerns they can be hacked and controlled wirelessly. This year’s higher-than-normal recalls also have been boosted by air bag manufacturer Takata Corp.’s decision to declare more than 32 million vehicles defective in the U.S. See related article this issue. More than 14 million of those already had been recalled by automakers last year. New NHTSA Chief Mark Rosekind caught the industry’s attention when he suggested in January that automakers could recall more vehicles in 2015 than in 2014. Sean Kane, president of Safety Research and Strategies, an auto safety advocacy group, said NHTSA’s aggressive posture is prompting carmakers to move faster. “There is a new normal,” Kane said. “Manufacturers are becoming much more diligent about fixing things that they would have been able to get away with doing customer satisfaction or dealer bulletins that NHTSA would have accepted in past. Today, no one’s even going to cut these corners.”
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More Stringent Auto Recalls in 2015 are ‘New Normal’
U.S. automakers and other vehicle manufacturers overseen by the National Highway Traffic Safety Administration already have recalled more than 32.4 million vehicles in nearly 500 campaigns through early August, according to a Detroit News analysis of government data and automaker reports, says David Shepardson, writing for the paper’s Washington Bureau. That’s still fewer than the 63.95 million vehicles recalled in 2014 in 803 campaigns. But it’s already topped the previous record of 30.8 million vehicles recalled in all of 2004. Several automakers are on pace for a record-setting number of recalls. And the total number of campaigns this year could come close to last year. Accounting for nearly one-third of all U.S. vehicle recalls this year is Fiat Chrysler. It has called back a companyrecord 10.2 million vehicles this year in 24 recall campaigns in the United States, including 77,000 new 2015 Chrysler 200s for an electrical problem that could cause stalling. About 4 million of the automaker’s callbacks are for Takata air bag inflators. The NHTSA has demanded recalls in several instances. In documents released Friday, Volkswagen AG disclosed the agency had demanded the recall of 420,000 cars and SUVs in the
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Car-O-Liner and AudaExplore Hold Seminar on Trends in Fixed Operations by Victoria Antonelli, Online Editor
The presentation, held at NACE, began with an industry flashback to 40 plus years ago. Pulling and heat, mild steel, paper estimates, and a non-existent internet were just a few of the hang ups older generations can remember dealing with on a daily basis. Now, more than ever, time drives efficiency on the shop floor. Every new collision repair system is designed with decreasing cycle time as the top priority.
Car-O-Liner/AudaExplore PowerPoint
To ensure that other tasks don’t slip to the wayside while technicians are rushing to clear and refill the bays, Dave Scribner, Car-O-Liner techni-
Car-O-Liner/AudaExplore PowerPoint
cal director, Dan Trahey, manager of technical training at Car-O-Liner, and Gordon Henderson, vice president of collision repair services at AudaExplore, have some suggestions for body show owners: ● Increase insurance count ● Invest in employees ● Invest in training ● Attract, grow & retain the best technicians
Surveys conducted by the Collision Repair Education Foundation and I-CAR every three years “confirmed the need for a continual supply of qual-
ified entry-level technicians, while also showing changes concerning business operations and the collision repair technician workforce.” Tools that can aid in accomplishing the above goals include: ● Increasing the profit margin ● Driving CSI improvement ● Driving industry leading KPI’s ● Creating uniform and positive customer experience ● Expanding related add-on services
According to the business statistics side of the previously mentioned
survey, in the last six years “the industry has experienced a market size reduction of 3,047 shops (7%) to a current count of 40,488 shops.”
Other significant points of change according to the Car-O-Liner and AudaExplore presentation include: ● Digital measuring & validation ● Body tolerances decreasing ● Much less pulling, more replacement ● HSS, aluminum, carbon fiber evolution ● Bonding and riveting ● Measuring, universal anchoring and “fixturing” required on more vehicles ● Increasing OEM certification programs ● OEMs driving more repair procedures ● Stand alone 3D measurement ● “Triage” estimates
20 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
● Upper and lower measurements ● “Before” and “after” validation
The reps from Car-O-Liner then discussed how math data provides for a more complete damage analysis, and how insurance “robotics” can lead to a faster repair decision. Henderson then covered latest industry trends: Luxury Specs on High-End Vehicles: ● Computer-driven efficiency ● Collision avoidance tech ● Focus on infotainment ● Increased complexity
Car-O-Liner/AudaExplore PowerPoint
● Semi-autonomous safety
Due to the high percentage of accidents caused by human error (90 percent), the driver assist technology trend is becoming the most prominent. According to Henderson, OEMs are planning on reducing accidents by 80 percent through the implementation of these programs. AudaExplore data shows that by 2020, 80 percent of vehicles will be cognitive automated, bringing manual assistance down to 20 percent. As recently as 2014, these See Seminar on Trends, Page 54
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 21
Nevada Shop Owner Films Pilot Show for Reality Series ‘Every accident is a unique story to be told’ by Stacey Phillips, Assistant Editor
The McCarran Auto Body team was hard at work, as usual—back in January 2015—painting, welding and sanding. It was a typical day. The only difference was that the employees were being videotaped for a possible TV reality series. Jerry Wientjes, Jerry Wientjes owner of McCarfrom McCarran ran Auto Body in Auto Body Sparks, NV, said that Bishop Lyons Entertainment made the commitment to produce the series for nationwide distribution. CEO Andrew Bishop and President David Lyons, the executive producers of the series, are currently in discussions with national cable networks in anticipation of airing episodes in 2016. “The premise of the show is behind every auto accident is a unique story to be told,” said Lyons. “The series follows outrageous and comical stories as seen through the eyes of the
customers and employees.” Lyons said that after working with Jerry and his team, they noticed Jerry’s personal connection to his clients is what makes him so successful. “His ability to draw stories out of his customers and give them the reassurance that he will make it better is a strong driving force that not only makes for a great show, but also a tremendous business,” he said.
the repair process showed an unsightly car being rolled into the shop and re-appearing minutes later completely repaired.” He began toying around with the idea of creating a show that was both informative and entertaining. Years earlier he had discussions with his wife’s uncle Bill about reality TV. Bill was a seasoned Hollywood writer for many hit shows in the ‘70s and ‘80s.
“The series follows the outrageous and comical stories seen through the eyes of the customers and employees” —Executive Producer David Lyons Wientjes said the premise is three cars, three stories and a lot of camaraderie. He is a reality TV show fan himself. He said that he noticed that the process of repairing a car is rarely shown, and never in any detail. “I thought it would be so helpful to educate the public about what goes on in the repair process,” said Wientjes. “Until now all representations of
“He would say that inspiration for a plot often comes from real life situations,” said Wientjes. “Sometimes the chemistry is just right and it works.” He recalls Bill telling him, “You can’t make this up!” Realizing that a body shop is not the ideal backdrop for filming, Wientjes and his crew spent countless hours sprucing up the place. This included
removing clutter, painting walls and floors. Although McCarran Auto Body had been producing and airing commercials for more than two decades, Wientjes quickly discovered it would not be easy to find a film crew with the experience and equipment required that had any interest in filming for days at a body shop. The first few calls were less than encouraging. In fact a producer suggested that he just get a “Go-Pro” and do his own filming. Finally he got a break. After contacting Sam Breen, and John and Brian of CID Media (a local production group), they agreed to come to the shop and film for a few hours to see what would transpire. After the first day, they were optimistic and agreed to return for more filming. As the days turned into weeks a show began to emerge. Wientjes said it was certainly not an easy process. “We would meet before filming and come up with a concept for that day,” he said. “Inevitably something unexSee Reality Series, Page 24
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Continued from Page 22
Reality Series
pected would happen, and we would just go with it. By the time the first show was complete we had developed a very comfortable relationship with the film crew, so they were able to film us just being us.” Wientjes said that during the course of filming their first show he had a meeting with his longtime friend and attorney Curtis Coulter. “Coulter has an uncanny way of communicating his vast knowledge of the law,” he said. “Knowing that I could not myself say things of a legal nature, I asked Curtis if he would mind being in my show.” Coulter agreed and has become a regular fixture, imparting valuable, relevant information on each segment. A final addition to the show were his dogs; Nicholas, a seven-year-old Coton DuTulear, who dutifully greats visitors at the shop each day, and Kachi, his two-year-old Akita. “The magic they created in editing was unbelievable,” said Wientjes who is very pleased with the result. With the first show complete; they were ready to air it. Three 30-minute episodes have aired on local stations 2 and 21 every Saturday and Sunday. They are cur-
in January. A crew of 10 worked tirelessly, putting in 12-hour days. “This was truly a production,” said Wientjes. “The professionalism and work ethic of the crew was truly
ceived my first custom painting book from Jon.” Wientjes moved to Montana in the 1980s and worked at Classic Auto Repair before re-locating to Palm
Jerry Wientjes, Owner of McCarren Auto Body in Sparks, Nevada, mixing paint at his shop while a TV camera man looks on.
outstanding.” They shot about 60 hours of footage to create a 26-minute pilot show for a potential reality series. “My crew and I agreed it was such a positive experience for us to work with them, said Wientjes. After they were finished, his office assistant Cheryl discovered that the crew had many, many accolades. “The crew had been so down to earth and easy to work with, we had no idea of the magnitude of their previous success. Probably better that we didn’t know, we were already a little nervous.” Wientjes grew up in Minnesota. His father purchased a car for him during high school—a 1968 Camaro. “It needed a paint job but I couldn’t afford it so I said that Terry McNary doing structural pulls at McCarren I’d have to get a job at a body Auto Body. shop.” It was at A&G Auto rently available to watch online on Body in Rosemount, MN. you tube. (First episode: https://www While he worked there, he was .youtube.com/watch?v=5MRsXmtu taught to pinstripe and letter from Dv8) Lloyd Vinge and learned custom After the first two shows were painting from Jon Kosmoski (House filmed, Bishop-Lyons Entertainment of Kolor) who brought his cars to became interested in producing a Vinge for custom striping and letterpilot. They sent their “A Team” from ing. “I would always be hanging Los Angeles to McCarran Auto Body around and watching Lloyd, and re-
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Springs, CA, and finally settling in Reno, NV, where he met his wife Julie. He started working at McCarran Auto Body in 1993. When the shop became available in 1995, he decided to obtain it. By 2003, the 10,000
square foot strip mall location became a parking challenge due to no fenced parking. That same year a former cab company facility became available. It sat vacant for several years and Wientjes said it was in pretty rough shape. However, the location was ideal and it had a 1.5 acre fenced yard, thus eliminating the task of moving cars out every morning to start work and securing them back inside the shop at the end of the day. After a few months of extensive remodeling, they relocated. “Life has been so much easier with this configuration. We went from two roll up doors to 16,” he said. “I’m hands on. I’m a painter, I’m a body man, I do everything,” said Wientjes. He said this helps him get everything accomplished in the shop in case someone is sick or he needs to help out. Since filming the episodes, Wientjes said business has increased and customers now need to schedule appointments in advance. When he first began filming he said he didn’t feel comfortable in front of a camera, said Wientjes. “Now I just do my job. I just forget about it and go to work,” said Wientjes. Toll Free:
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 25
Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
‘MSO Symposium’ Panels Presented Ideas on Human Resources, Customer Satisfaction Attracting, training and retaining quality employees was among the topics tackled at this year’s NACE “MSO Symposium,” a half-day event in Detroit in July that focused on the needs of multiple shop operators (MSOs), as well as those who aspire to become an MSO. During one panel discussion at the event, for example, Max Sorensen of Minnesota-based ABRA Auto Body & Glass explained how his company has
a 300-module “learning management system” that covers subjects ranging from how to greet a customer coming into the shop to preparing final billing of an insurer. Employees can use the system to learn new skills, or use the system as a “refresher” when they have questions. Darrell Amberson of LaMettry’s Collision, an MSO in the Minneapolis, MN, area, moderated the panel discussion, and said that while large MSOs like ABRA can have staff devoted to employee training and development, his company is not that large. “So we’re looking at developing a training department using some resident experts to help train some of other people,” Amberson said. That inhouse training will become part of a formalized career path the company is developDarrell Amberson (l) and Max Sorensen in panel discussion ing to offer to entry-level em-
ployees. “Knowledge is a company assets, but knowledge has a shorter and shorter shelf-life,” panelist Jeff Peevy of the Automotive Management Institute said, emphasizing the need to hire those who will seek out continued training. “But learning is the cure for that. The willingness and capability to learn is Brandon Eckenrode the only true source of a sustainable competitive advantage.” Brandon Eckenrode of the Collision Repair Education Foundation said that organization is doing several things to help attract more people to careers in the industry. The Foundation is involved with the national association of school guidance counselors, for example, to help educate them about careers in the industry. The Foundation
is developing a national job board, and is launching a series of career fairs across the country to help students and shops connect. The Foundation is also working to attract military veterans to training in the industry and to educate employers about veterans’ benefits that can help those vets transition to careers in the industry. Several panelists said requiring entry-level employees to spend several weeks as a porter or detailer at a shop helps the employee get a feel for the business and the shop get a sense of the employee’s chances for success. “You get a good feel about whether they have a good attitude, do they show up on time, that kind of stuff,” Kevin Burnett, vide president of operations for Gerber Collision & Glass, one of the largest MSOs in North America, said. That can prevent both the shop and the employee from make an larger investment in training, etc., before they
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know if it’s a good fit for both, panelists said.
Entry-level pay an issue But Eckenrode also said the industry needs to address that fact that its entry-level wages often aren’t always competitive with those in other trades. That’s allowing other technical training programs and trades to attract students away from collision repair. He said the Foundation is working to help collision repair training programs understand the need to focus students on fewer skills – the skills that will help the students be more immediately productive in shops. “We’re going to do a better job of helping to instruct these school educators to not teach a mile wide and an inch deep,” Eckenrode said. Another panel during this year’s MSO Symposium focused on the use of customer satisfaction measurement to help manage MSOs. Jason Bertellotti of Mitchell International, said some of the highest customer satisfaction he sees are at shops that offer employee incentives based on customer feedback. One such company, he said, uses formalized customer follow-up inter-
views, but also asks customers before they leave the shop to fill out a card asking for one thing they truly enjoyed about the process. Anytime a customer mentions an employee by name on that card, that is shared with all the staff at daily meetings, and the employee receives some sort of incentive. “It’s all about creating the culture by talking about the customers’ experience, not pressuring the customer to give you a ‘10,’” Bertellotti said. Dean Fisher, a CARSTAR franchisee and leader of the MSOs field service team agreed that pushing a customer to give you a high CSI rating – something he experienced when he recently purchased a new car – is less effective than just focusing on the customer experience. “You don’t sell CSI. You do CSI,” Dean Fisher Fisher said. Bertellotti agreed. Attempting to “manage the score” only communicates to your staff that it’s the score itself, and not your customer’s expeSee MSO Symposium, Page 40
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 27
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AASP-MN’s Night Out With the St. Paul Saints a Hit
One hundred and forty seven people represented AASP-MN at the St. Paul Saints game on August 5, at CHS Field in St. Paul, MN. The group cheered on the Saints to a 6-0 victory over the Lincoln Salt Dogs. AASP-MN members nearly witnessed history as Pitcher Robert Coe carried a perfect game into the seventh inning and a no-hitter into the eighth. Coe finished the night with a complete game, one-hit shutout as the Saints improved to 53-16 for the season.
Almost 150 AASP-MN members attended the St. Paul Saints game in early August
AASP-MN member, Carl Thomas, of Lancer Service Auto Care in St. Paul, hosted a tailgate party prior to the game and provided free parking for those who attended. “The event was a great way to get fellow AASP-MN members and their families together in a fun and relaxing environment,” said Executive Director, Judell Anderson. “It was a hit!”
Continued from Cover
Christmas in July
make this event happen; we just put the event on,” Margaret Freer said. “It means a lot to the community. We are very blessed and thankful we have the ability to help others.” There were several event sponsors and a first-class raffle for $10 a ticket. A main raffle item included a sevennight condo stay at Orange Park in Kissimmee, Fla., three miles from Disney, plus $1,000 cash. Other raffle prizes were four tickets to NASCAR Kansas Speedway on Oct. 18, plus one night lodging, also donated by Axalta Coatings. Four Cardinal Green Seats were donated by John and Amy Barnerd Also donated was two nights lodging and four tickets to Holiday World in Santa Claus, IN. Lily Freer was going to donate money to Community Christmas from her piggy bank and she and Taylor decided with their grandmother they would raise more through selling Sloppy Joe’s and Kool-Aid and it has grown from there. Taylor Freer, 11, said she felt grateful they can devote their time to helping
other children have a better Christmas. Lily Freer, 8, said she has participated in the event since she was only 2 years old.
Taylor and Lily Freer helped prepare and serve food. Credit: riverbender.com
“It means a lot to me because we get to give people things they don’t have,” she said. Margaret Freer is always the proud grandmother devoted to both Taylor and Lily. The two grandchildren are the light of Margaret’s life. She beamed with pride when the two girls answered their questions. She said both were good girls and had been taught such important lessons at a very young age. Margaret said Lily and her friend Maria Stanton even delivered flyers over the last week taking a wagon around the neighborhood to drum up business for the Christmas In July event. Rep. Dan Beiser, D-Alton, was
in attendance and he said this event fits right in with his love of Christmas, his favorite holiday. “Christmas is my favorite time of the year,” he said. “Anything that focuses on Christmas and serves a good cause is something I want to support. It is refreshing to see young people, Taylor, Lily and the others, so involved.” Tim Freer, one of the co-owners of the auto body business, said it is “very heartwarming” to know how much the region supports this good cause. “It shows how great our community is,” he said. “I also think of my late brother, David, every year when we do this event. David was my best friend and I admired him so much as my older brother.
Illinois Re. Dan Beiser. Credit: riverbender.com
“I think of David every single day. The Christmas In July just keeps growing every year. We have kept the tradition going in memory of my brother.”
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New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 by Victoria Antonelli, Online Editor
Over the past eight years, ALLDATA, a provider of OEM service and repair information since 1986, has expanded its predominantly mechanical focus to the collision repair sector with the addition of ALLDATA Collision. This new and improved program allows users to access a single source of up-to-date OE-direct repair information. The company’s database is available online and features information on more than 33,000 engine-specific vehicles from year 2000 to present. Featured OE procedures include sectioning and structural repairs, handling of new materials and panel removal and replacement. In March 2015, Mitchell Major, Mitchell Major president of became president of ALLDATA ALLDATA after holding various positions at ALLDATA’s parent company, AUTOZONE, for 10 years. Autobody News spoke with Major while he attended NACE CARS 2015 in Detroit, MI. “NACE has been a great opportunity to talk to people on the user side of the equation, such as associations and insurance carriers, and understand their thoughts about OEM information,” said Major. “My perspective is that I can’t imagine a world in which you would not want to be using OEM data repair information on the collision repair side, particularly if you walk the collision floor and see the complexity of the structure of vehicles.” Major said he began his career at AUTOZONE on the inventory supply chain side, where he ran replenishment for several years. He then moved
over to the operation store side before taking over the role of vice president of stores. While serving as VP, Major was responsible for 900 stores across the country, and because of that, he said he spent a lot of time out in the field talking to both DIY and commercial B2B customers. “This position gave me a deep familiarity with the concerns and opportunities on the shop side of the business,” said Major. “When I started at ALLDATA, I began filling in the blanks on the software end.” Major said that since a lot of collision shops are still not using OEM information, the liability for shop owners continues to increase. “Many collision shops are small independents without the resources of national chains and aftermarket information fills that need,” he said. “OEs are certainly changing and adapting to the market place, including customers of ours, when it comes to pricing. It's an ‘adapt or die’ universe we live in, when it comes to the economy, and everyone is going to have to change and roll with the punches.” In order to prevent incorrect repairs, which could lead to consumer injuries or even death, Major said he and the rest of the product team make a point to speak with industry members to find new ways to make OEM data that much more compelling. “Typically, if you go to a shop and say, ‘My check engine light is on and I need to understand what's going on here,’ they’ll go out and write it down on a paper pad, then they’ll go in and key it into the computer, and it takes a lot of time,” said Major. “This creates a huge opportunity to streamline that whole process. Whether you’re mechanical or collision, you want to turn the bays; you want to get the cars in and out,” he
Owner of Parkville Auto Body Holds Chairman Position at AASPI Golf Tournament by Chasidy Rae Sisk
On August 6, the Alliance of Automotive Service Providers of Illinois (AASPI) held their annual golf tournament at the Old Orchard Golf Course. According to Executive Director of AASPI, Michael Lane, “Old Orchard Golf Course did a fantastic job in hosting the event. We had 114 golfers and 24 hole sponsors.”
This year’s event chairman was Nick DePaul of Parkville Auto Body in Bensenville, IL, and he claims that the automated prize distribution provided easy access to prize selection. In turn, this expedited the process to everyone’s satisfaction. AASPI will hold next year’s golf tournament on August 4, 2016 at the Old Orchard Golf Course.
32 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
continued. “Most shops have two or three bays, which gives you limited physical space and limited technicians. ALLDATA Collision is available online, on either desktop computers or mobile devices, so it can be checked nearly anywhere in the shop. [Simplifying those steps] increases cycle time and productivity, which in turn increases profit.” Tanushree Sircar, marketing manager at ALLDATA, explained that their customers span a wide range of backgrounds and age groups. While the younger generations adapt to new techTanushree Sircar, nologies faster and marketing manager prefer using mobile for ALLDATA devices, some technicians are more comfortable with older technologies. “The convenience of accessing this information is what’s interesting to everybody,” said Sircar. “The ability to access quality OEM information through their desktop or Android or iOS device, making the repair process
much easier and faster, is what makes our customers willing to change and adapt to the new technology.” Instead of paying for classroom time to keep technicians up-to-date on the latest vehicle trends and models, “you can just turn on ALLDATA Collision, and the system will lead you through the process so you don'’ make an incorrect repair. Our product roadmap is all about a training-free solution. It’s as easy as making a purchase from eBay or Amazon,” added Major. Another tool ALLDATA has implemented to help make life easier for technicians is the online database Community. According to Sircar, Community allows technicians to log on and ask other technicians detailed questions about the OE repair process and specific issues. She added that the database has recently reached 70,000 users in just two years. ALLDATA is based in Elk Grove, CA. For more information on ALLDATA Collision, visit their website at http://www.alldata.com/collision or contact the company’s marketing manager, Tanushree Sircar, at tanushree.sircar @alldata.com / 800-829-8727.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 33
U.S. on Pace for Deadliest Driving Year Since 2007, Says National Safety Council
The National Safety Council estimates traffic deaths are 14 percent higher through the first six months of 2015 than they were during the same period in 2014, and serious injuries are 30 percent higher. From January to June, nearly 19,000 people died in traffic crashes across the U.S., and more than 2.2 million were seriously injured, putting the country on pace for its deadliest driving year since 2007. Costs are also up. The six-month estimated bill for traffic deaths, injuries and property damage is $152 billion—24 percent higher than 2014. “Follow the numbers: the trend we are seeing on our roadways is like a flashing red light—danger lies ahead,” said Deborah A.P. Hersman, president and CEO of the National Safety Council. “Be a defensive driver and make safe decisions behind the wheel. Your life really depends on it.” While the high death and injury toll could be due to many factors, an improving economy with lower gas prices and unemployment rates herald increases in vehicle miles traveled. Average gas prices are 30 percent
lower than they were in 2014 and are projected to remain relatively stable heading into 2016. This generally means an increase in traffic; more people can afford to drive, and many travel longer distances and take vacations. To help ensure safety, the Council recommends drivers: ● Make sure every passenger buckles up on every trip ● Designate an alcohol and drugfree driver or arrange alternate transportation ● Get plenty of sleep and take regular breaks to avoid fatigue ● Never use a cell phone behind the wheel, even hands-free ● Stay engaged in teens’ driving habits. Teens are three times as likely to crash as more experienced drivers. Learn about your vehicle’s safety systems and how to use them. My Car Does What can help drivers understand the ins and outs of features such as adaptive cruise control, blind spot warning systems and backup cameras.
34 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Mopar Helps Dealers with New Service Capacity Tool Mopar is introducing a new “crystal ball” to assist FCA US dealerships in preparing for and predicting the best strategies for enhancing the customer experience, both now and in the future. The Mopar Service Capacity Analyzer is a powerful new online tool that helps dealers to assess, plan and implement changes to the number of technicians, technician hours, stalls and much more to better service customers. “Providing a great customer experience is at the core of what we do,” said Pietro Gorlier, President and CEO, Mopar Brand Service, Parts and Customer Care, FCA. “That is why this year alone we have supported the addition of more than 1,300 technicians, 700 service advisors and 500 service bays in our dealer network, which overall is well ahead of our targets. Now, the new Mopar Service Capacity Analyzer offers dealerships a ‘road map’ to more efficiently utilize these resources by forecasting customer needs out to 2018 based on dealer-specific parameters.” The algorithm-based Mopar Service Capacity Analyzer allows dealers to adjust physical capacity metrics such as number of techni-
cians/service advisors, technician available hours and stall numbers, to match projected service lane traffic. The dealer can create scenarios and evaluate the changes needed to reach the optimum level of service. Dealerships can also examine operational efficiency and identify opportunities for improving existing processes and eliminating waste or inefficiencies. A summary page allows quick comparison of how hypothetical plans stack up to current capacity statistics. Mopar also offers tools to help dealerships implement service capacity changes. The brand is launching a new Service Capacity Guidebook as part of the Service Capacity Analyzer to assist dealers in seizing existing opportunities while avoiding the pitfalls of a crowded service lane. The Mopar Career Automotive Program (CAP) works in partnership with automotive tech schools to provide dealerships with a pipeline for recruiting trained and skilled technicians. “The customer journey is about Mopar partnering with our dealers to ensure that we have the tools, the people and the plan to continue to serve those who drive us,” said Gorlier.
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Social Media for Shops Body Shops Nationwide are Joining the Blog Party with Ed Attanasio
One of the items on my marketing todo list for 2015 (January 2015 ABN) was entitled Get a Blog and I can’t take credit for it, but there are more body shop blogs out there now than ever in the collision industry. Four years ago, there were 156 million blogs in existence and today there are more than 180 million worldwide. Shops that didn’t even have web sites now have them complete with blogs that contain weekly posts, sometimes more. Blogs are no longer a fad or even a trend—no, they’re here to stay and gaining traction more and more as they stampede into the World Wide Web. A decade ago, people didn’t really take blogs seriously. They thought a blog was for amateur poets, soccer moms or quilting clubs, but those days
are long gone. Blogs are an ideal way to enhance your Search Engine Optimization (SEO) efforts because Google indexes blog articles and will move
your company’s name up their rankings by regularly sending its search spiders through your blog. And with more players now in the SEO game, blogs are all about getting companies to that desirable first page of Google.
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
It’s inexpensive to create a blog (using Word Press, for example) and linking it to your web site. In a busy shop, there are a lot of things going on to blog about, including employee birthdays, holiday events (such as a company costume contest for Halloween); new babies, I-CAR certifications, community mixers and so much more. Once you start searching out topics for blog articles, you’ll see that there is a wealth of great things for you to write about. With blogs now the norm rather than the exception, it’s hard to believe that many body shop owners still don’t know exactly what they are, so here is a rather brief description. A blog (a truncation of the expression weblog) is a discussion or informational site published on
the World Wide Web and consisting of discrete entries (“posts”) typically displayed in reverse chronological order. Until 2009, blogs were usually the work of a single individual or occasionally of a small group, and often covered a single subject. More recently “multi-author blogs” (MABs) have developed, with posts written by large numbers of authors and professionally edited. The rise of Twitter and other “microblogging” systems helps integrate MABs and single-author blogs into societal newstreams. Rich Pannazzo is the Chief Operating Officer at AutoBody-Review.com in Chino Hills, CA, a company that was created to increase capture ratios and instill confidence in consumers when referred to a body shop by DRP partners, dealers and previous customers. They help their shops find local shops nearby, tour their facilities and schedule an appointment quickly and easily using AutoBody-Review.com. In addi-
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tion, the company also assists body shop clients with marketing efforts— including blogs. “The collision industry is changing on multiple levels,” Pannazzo said. “Not only is their rampant consolidation happening at an unprecedented rate, there is also a significant change in the demographics of the typical collision repair customer. Crossgeneration communication skills are CEO Rich Pannazzo essential to any marat www.AutoBody keting initiative in -Review.com cites blogs as an our industry. Blogeffective way ging, for instance, for body shops to has become an efget their brand in fective way of getfront of consumers ting your brand in as well as helping their Search Engine front of consumers Optimization efforts as well as helping your Search Engine Optimization efforts. In order to be effective however, your Blog must be relevant, routinely updated and well-scripted.” “Collision repairers are not, by nature, good marketing professionals,” Pannazzo said. “And even a vast majority of marketing professionals are
not good collision repair marketers. Collision repair customers are unique because 95% of a shop’s business comes from insurance, dealer and customer referrals. Marketing to get 2% of the 5% that are left just isn’t a logical course of action, nor is it economically efficient. Companies such as AutoBody-Review.com have figured this out. Everything done to promote the brands represented by AutoBody-Review.com is specifically targeted at increasing the capture rate of the referral business being sent to those locations. Even down to the unique blogs posted for their thousands of customers each month. No two blogs are identical and each blog is tailored to the specific body shop that it is being written for.” Eric Gouldsberry is a Silicon Valley-based media consultant and owns EGAD, a company that designs web sites and adjoining blogs for body shops and large automotive companies that end up at the top of search results on a consistent basis. He has seen the incredible growth of the blog universe and the recent popularity of blogs among body shops large and small. “The Hummingbird algorithm went into effect during the summer of 2013 when Google announced the
change on the eve of the company’s 15th anniversary,” Gouldsberry explained. “It was their first major update to their search algorithm since 2010. At that time, people didn’t realize that it would lead to the explosion of blogs. Hummingbird is all about content and what they call ‘semantic search.’ Google now focuses more attention to each word in a query, ensuring that the whole query—the entire sentence or conversation or meaning—is taken into account rather than just a handful of keywords or word streams.” So, why are so many body shops finally coming to the blog party? “Body shops talk a lot to each other and they’re always looking at the shop down the street,” Gouldsberry said. “Look at all of the body shops that are gearing up to work on aluminum vehicles, for example? The shops that started doing blogs three to four years ago are in a prime position, because they’ve already established a top position. It won’t be easy to unseat those shops, but it’s never too late to improve your spot by blogging. If you’re thinking about a blog, I would tell you start today, because right now the stragglers are getting ready to enter the fray!”
July Auto Sales Surge Due to Pickups and SUVs
The industry kept on course for its best year in more than a decade last month after a disappointing June, driven by deliveries of SUVs and pickups as car sales lagged. Most major carmakers handily beat estimates, with the average analyst projection putting the annual selling pace at about 17.2 million vehicles, which would be the highest total since 2001. “Pickups and SUVs continue to keep new-car sales elevated,” Jessica Caldwell, director of industry analysis for car-shopping site Edmunds.com, told the Daily News. “In fact, July marks the 23rd month in a row in which trucks (together with) SUVs have outsold cars. Lower gas prices certainly are a catalyst, but the availability of cheap credit is helping consumers get into these more expensive vehicles,” Caldwell said. Buyers spent a record $47 billion on new vehicles in July, a 2.1% increase from last year, according to automobile pricing site TrueCar.com. Ford, which saw sales sputter in the first half of the year as the company faced production—and perception—problems transitioning its bestselling F-150 truck to a lighter aluminum body, reported a better-than-expected 5% jump in sales last month.
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Lean Operations
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Why Past Success Could Be Holding You Back with David Luehr
One of the most fascinating career experiences for me was also one of the most difficult. It was called a 360 Degree Evaluation. I thought maybe it was called a 360 Degree Evaluation because when the results were read aloud to me about my management performance, that’s how hot it felt in the room! In those days I was in auto body operations management for a large company that rightfully believed that a healthy culture involved giving all employees a voice. The price for this culture was of course that the employees had the opportunity to evaluate their managers, yikes! The benefit was powerful and has profoundly affected my leadership style to this day. Now in my business as an industry mentor and consultant, I work with very successful people daily. These people are often your typical “type A” business folks that have accomplished a great deal in their lives already. Typically when dealing with these personalities I find that there is a great deal of confidence surrounding themselves, their business operations, and the skills they possess as leaders. The dogged determination, the courage to face difficult situations, and absence of fear in asking for more from life propel these people to a level of success higher than the average person. While these are great qualities that will continue to help them in the future, what these individuals often don’t understand is that they may have become successful despite of some of their inferior qualities. Because they are so confident overall, the not so great qualities get lumped into their overall belief system along with
the good qualities as an overall success “formula.” In other words, they see no need for change within themselves because what they have been doing has been working fine. At least up to now. What is ironic in this scenario is that these same successful leaders are the very ones that are usually complaining about how difficult it is to get their own people to accept change when in reality they are the most stubborn ones! This takes me back to the 360 Degree Evaluation. This method has become my most powerful weapon in my arsenal for getting leaders out of their own way of achieving big-time success. I am reminded of my own utter disbelief years ago in that hot office when I get to share employees’ real feedback with their disbelieving bosses. I don’t mean to make light of this process, because it is not easy for even the most battle-hardened body shop manager, it can rock their world in a big way! Growth can of course be difficult but well worth it for those serious about living up to their true god given potential. So how can leaders overcome this curse? The short answer is AWARENESS. When a person can come to grips with the fact that their beliefs may be holding them back, there are a couple ways fix it.
2. Be brave! Those that have thick enough skin to hear the truth about themselves will also benefit greatly. How do people know what to change to? How do they identify areas in their personalities and skillsets that may need some help? There are two main tools I like to use. The first I have already mentioned. The 360 Degree Evaluation is a great way to get to the truth if people in the organization trust the process and have no fear of retribution from superiors. Shops could probably create their own employee survey, but companies tend to get more accurate and relevant feed-
Solera solution set to enhance both the driver experience and communication between Tesla and its customers. “We have worked closely with Tesla over the past several months to develop highly accurate and data-driven integrated solutions for Tesla’s collision repair network,” said Tony Aquila, Solera’s founder, Chairman and CEO. “Our goal is to fully leverage Solera’s technology platforms to digitally transform the vehicle repair experience for all stakeholders.”
38 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
back when a 3rd party company provides the service.
3. Use science! The second tool that I use with all my clients is the tti Trimetric Assessment. This is an incredibly insightful tool that can give leaders and their employees a scientific look at personality traits, behaviors, values/motivators, and skills. If leaders are serious about getting to the next level in their careers and moving closer to reaching their potential, this is a great place to start! For those successful people that are wondering why things may not be progressing as you would like, I invite you to consider the advice in this article. Be aware, be curious, be brave, and use science. As always my associates and I at Elite Body Shop Solutions are always here to help you find the resources you need to win! Contact me at: david.luehr@elite bodyshopsolutions.com
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1. Be curious! I strongly encourage those that want to be hugely successful to balance their confidence with an equal dose of curiosity. We are no longer living in the Industrial Age and things are changing way too fast to become educationally complacent. How cars are repaired and
Tesla Motors Selects Solera to Provide Collision and Customer Communication Services
Solera Holdings, Inc. announced on August 3 that its collision estimating and customer communication platforms were chosen by Tesla Motors for its global certified collision repair centers. Through AudaExplore (U.S.) and Audatex (global), insurers and repairers will use the Solera solutions to process fast and accurate collision repair estimates and insurance claims on Tesla vehicles. Tesla will also leverage the AutoWatch platform within the
the methods used to lead people in the modern “Conceptual Age” requires a completely different skillset than most people currently have. It doesn’t have to be a “scary” thing, but future success will require an open mind, and a willingness to learn. I believe curious people will someday rule the planet.
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Continued from Page 27
MSO Symposium
rience, that you care about. He recommends taking a step back, almost as a secret shopper, to see and hear what your customers are seeing and hearing. “See how you would perceive that, from the minute they drive on the lot, what it looks like,” he said. “All the way through how they are greeted, how they are talked to, whether they are given some empathy during the process and so forth.”
How to stay in contact Do customers prefer regular contact – including customer satisfaction indexing – by text, email or phone? Not surprisingly, the panelists said ‘it varies.’ David Kulkis, business development director for ABRA Auto Body & Glass, said he still believe phone calls are the best way to keep customers updated. Such calls give you an opportunity for a personal touch and to convey empathy, he said. Electronic communication can augment that, he said, and there are some customers who just don’t want the phone calls.
That’s why it’s important to ask customers about their preference, Fisher agreed, because automated texting or email may even be alienating some of your customers. “We find that younger customers prefer texting and email is great for them,” he said. “But there’s at least 40 percent of your clientele who want a phone call. They still want to communicate with you regularly that way.” Bertellotti agreed that a hybrid strategy is best, particularly when it comes to follow-up customer satisfaction indexing. “There’s a very high self-selection bias in email or any sort of electronic survey,” Bertellotti said. “People who are unhappy or extremely happy typically will take it – and always more of the extremely unhappy. So you David Kulkis self-select downward. The results are usually lower than they would be on the phone, and you miss all of the quality data in the middle. You never get their feedback and never know what’s important to them.”
Nissan Donates $1M and 10 Autos to Habitat for Humanity
Ten years after its first donation to Habitat for Humanity, Nissan has announced a $1 million grant to help build affordable, sustainable homes and to support Habitat’s disaster response efforts. Nissan’s contributions to Habitat for Humanity in North America amount to more than $13 million over the past 10 years. “Having a permanent home allows a family to realize stability and a sense of community,” said Nissan Senior Vice President Scott Becker. “Nissan employees engage directly with those families by making personal commitments of their time and effort in Habitat home builds. This partnership is a tangible example of how we carry out our corporate vision to build a sustainable future for all Nissan stakeholders.” A portion of Nissan’s contribution will be used to double Habitat’s Mobile Response Unit fleet to 10 units, boosting its capacity to quickly support U.S. affiliates and their long-term recovery efforts following natural disasters. “The generous donation from Nissan and the volunteers who continue to work alongside those in need of decent housing makes such a difference in the lives of families and communities,” said Jonathan Reckford, CEO of Habitat for Humanity International.
CREF Fundraiser Co-Hosted by PPG Raises Over $100,000
The 14th annual Collision Repair Education Foundation (CREF) industry fundraiser, co-hosted by PPG Automotive Refinish, raised a record $100,000+ through the support of attendees and sponsors. Sponsors and participants enjoyed a day of golf at Northville Hills Golf Club in Northville, Michigan on July 22nd, and the funds raised from this event will go toward supporting scholarships and grants for collision schools and students. “Thank you to the event sponsors, golfers, volunteers, and to PPG Automotive Refinish for making this event an incredible day of fun and fundraising for high school and college collision students,” noted CREF Director of Development Brandon Eckenrode. The CREF is already starting to plan for the 2016 event, which will be the organizations 25th anniversary year, and the date and location should be announced in the coming months. Individuals and companies interested in getting involved with next year’s fundraiser should contact Brandon Eckenrode at 847-4635244 or Brandon.Eckenrode@edfoundation.org.
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Industry Insight
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
CIC Committee Working to Eliminate Hidden Costs of Parts Procurement with John Yoswick
A Collision Industry Conference (CIC) committee is working to identify some of the costs – for shops, insurers and parts vendors – associated with various inefficiencies related to the parts procurement process. The committee views this as a key step in determining what electronic parts procurement systems are – or aren’t – doing to reduce such inefficiencies. At CIC in Detroit in July, CIC Parts and Materials committee member Amjad Farah of AkzoNobel Coatings acknowledged that the entire parts ordering process is non-value-added. “No one is paying us to order parts,” Farah said. “We get paid to paint them or put them on, but we’re not getting paid to order the parts. So the process in and of itself is nonvalue-added. But we still have to do Amjad Farah it. So the objective here is to look at the entire process [to figure out how to] make it as efficient as possible given that it has to be done.” During the meeting, the panel shared a “process map” it is building showing all the steps in traditional parts ordering, looking at all the wasted steps and trying to establish some idea of the costs these steps add to the process. John Bosin, chairman of the committee, said some of those initially reviewing the process map criticized the fact that it still included fax or phone orders. “I want to assure you that while some of us may consider faxing ‘20th century,’ the fax is still very much alive,” Bosin said. “When you talk to parts suppliers, ask them how many faxes they get a day with orders. Not only is the fax machine still being used, but the phone is being used and a John Bosin lot of parts salespeople and delivery people are carrying orders back into the office. We all think it’s super-streamlined and elec-
tronic parts procurement is just rapidly sweeping the industry. It’s not.”
The hidden costs Turning to the committee’s process map, Farah said each step in the process has risks that can add waste and costs to the process. For example, shops sometimes order both OEM and nonOEM versions of the same parts at the same time in order to save time if the non-OEM version proves unusable. But receiving multiple parts and returning one adds costs for both the shop and parts vendors, he pointed out. Choosing only parts offered by the “best vendor” identified by the shop can offer some efficiencies for the shop, Farah noted, but can raise the total costs of the parts used, or – if the shop can’t pass those costs along – reduce the shop’s profits. Similarly, if a shop’s ordering decision is based on price alone, one risk could be poor service from the vendor, resulting in delays. Ordering parts from multiple vendors for the same job results in multiple invoices to be paid. If it costs you $25 to receive a part and process that invoice, Farah said, and that happens on 75 percent of your repair orders, that can quickly add up to thousands of dollars in costs. When you look at the whole process as a whole, Farah said, you quickly “come to the realization that as an industry we really need to find a way to make the whole process more efficient for all parties involved.” The committee’s work, he said, is a start to building that awareness. But Aaron Schulenburg of the Society of Collision Repair Specialists said the issue is more complex than a “process map” might indicate, given the often competing interests of shops, insurers and vendors. Some insurer mandates on shops regarding parts – or parts procurement systems – are a good example, he said. “What do we do as a group if we determine that certain processes create inefficiencies and costs for some, while creating reductions in costs for others?” Schulenburg posed, rhetorically. But CIC Chairman Randy Stabler said he’d like to see the commit-
42 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
tee finish the process map to document the potential costs, then see whether and how the electronic parts procurement systems measure and track such potential inefficiencies so they can be reduced. “It’s one thing to say we need better cycle time, but if you don’t know the incremental steps in the entire process, and start to look at them incrementally, you can’t drive out the costs,” Stabler said, as an analogy. “So we may have electronic parts procurement models that do a good job sourcing by price, but do they look at all those other factors that can reduce the overall internal cost of operation?”. “Suppliers, repairers, consumers and insurers all pay for these inefficiencies,” Stabler concluded. “But if we don’t know the additional costs, then we’re going to continue to do it. That’s what I’m hoping to try to ferret out here.”
State of industry training Another panel discussion at CIC in Detroit focused on what was assessed by many as an abysmal rate of technical training among collision repair technicians. Several panelists cited an I-CAR statistic from several years ago that 69 percent of working technicians who weld in U.S. body shops lack formal welding training. “As an industry, we need to be ashamed of this,” Jeff Peevy of the Automotive Management Institute said. “And it’s not just the collision Jeff Peevy repair shops; it’s all of us involved in this. It takes time and resources to train your technicians, and all of us need to acknowledge that. Regardless of what segment we’re in, we need to take an honest approach and say, ‘Are we contributing to this problem, or are we a solution to this problem?’ This is an ethical issue, that we as an industry allow this to be okay. Shame on us as an industry.” Industry consultant and former shop owner Mike Anderson of Collision Advice said he thinks there’s a lack of a ‘training culture’ in the industry.
When he operated his shops, he said, he let new-hires know up front how many hours of trailing they were expected to complete each year. One night a month, he held after-hours training for the body department; another night was reserved for refinish department training, etc. “That allowed our entry-level people who had a desire to grow to stay after-hours for those classes,” Anderson said. “We also opened that up to SkillsUSA student in our local area, so they could attend, and that helped us recruit some of the best of the best.” Anderson said shops always blame the lack of training on time, which is understandable. “We have these unrealistic mandates put upon us that say we need to upload an estimate in x amount of hours,” Anderson cited as one example, “But if I do that, I don’t have time to research the OEM procedures properly. But is that really the reason? Or is it because I was never trained how to integrate OEM software into that process? It boils down to time and culture.” Independent consultant Roger Cada, a retired insurance company executive, suggested that increasing consumer awareness about the dangers of improperly repaired vehicles could help address the training issue. He said salvage yards have examples of cars that were repaired but later declared total losses because the vehicles were known not to be safe based on how they were “repaired.” He suggested that the industry could have the Insurance Institue for Highway Safety crash test such “repaired” vehicles to draw consumers’ attention to the need for safe repairs. “Show the consumer what poor repairs look like, because they don’t have a clue,” Cada said. “They’re not the experts. But if they take away that their family and friends who ride in that car are in danger, they will search out those repairers that are good.”
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New Sherwin-Williams Web-Based System Aims to Save Shops Time & Increase Their Profit by Stacey Phillips, Assistant Editor
A new web-based system developed by Sherwin-Williams Automotive Finishes was designed to help shops decrease the time it takes for the paint selection process to less than five minutes. After being tested by hundreds of shops across the United States and Canada, the company’s Formula Express 2.0 color retrieval system was officially launched in August. John Ceglarek, color systems manager for Sherwin-Williams Automotive Finishes, said the new FormulaExpress 2.0 Color Retrieval System was designed to achieve the best color match results in the shortest possible time, which can result in improved profitability, cycle time, and customer satisfaction. “The problem with so many of the existing color retrieval systems is that they are slow, cluttered, and difficult to enhance, change or maintain because they are built on aged platforms,” he said. Ceglarek said color selection can typically take seven to eight minutes or even 30 minutes or sometimes more. “A significant percentage of vehicles don’t fit the mold,” he said. “Those are the ones that cause that time to identify a color to skyrocket. It’s those non-typ-
ical things going through your process that are most disruptive in the body shop.” He said that if just one vehicle in 10 is difficult to identify color, it can completely disrupt the entire lean process in the repair facility. “Those were what we were trying to eliminate,” said Ceglarek. It took approximately two years for Sherwin-Williams, a manufacturer and distributor of automotive refinish and
fleet/commercial transportation coatings and sundries, based in Ohio, to develop the product. Ceglarek said that the faster system will be more efficient for the automotive repair industry. “With FormulaExpress 2.0, painters and technicians will spend much less time picking the right color for the job, and much more time delivering vehicles,” said Ceglarek.
“This will increase through-put, productivity, and profit in their shop.” Formulas are sorted by popularity instead of the “standard with alternates” method widely used by many existing color retrieval systems. Additionally, FormulaExpress 2.0 has a patent-pending Color Filter™ feature. This feature helps the painter select from a list of color variations by selecting a few user-friendly filters. Ceglarek said that no other system has this way of picking from a set of variations. When Autobody News talked to Ceglarek about the new product, he demonstrated how a painter is able to look at the various color options on the screen to help make a decision. He noted that they can be sorted by most likely to match vs. least likely to match which really helps make color retrieval faster and easier. “Instead of doing it the way traditional software would to add more information to look at, we take information away,” said Ceglarek. “We start to take away data from the screen that we know isn’t relevant to try to help [painters] make those decisions faster.”
Unlike other systems that require the user to know the specific information about the vehicle such as formula code, color code, color chip, etc., the new system allows the user to enter whatever is known about the vehicle. “The system provides intuitive search functionality, and is extremely fast, reliable and provides real-time updating,” he said. FormulaExpress 2.0 also provides storing, tracking and reporting. Designed to work with multi-platforms including tablets, smartphones and PCs, Ceglarek said it has the most updated color information readily available, 24/7, 365 days a year. He also said the new FormulaExpress 2.0 system is extremely versatile. “It is literally functional with every automotive finishes intermix and factory pack system Sherwin-Williams provides, with access to more than 750,000 color formulas,” he said. It also works in conjunction with Sherwin-Williams Automotive Finishes color tools, including the PROSPECTOR® color reference system and Color Works® The Match Box (for fleet refinish and OEM colors). For more information about Sherwin-Williams Automotive Finishes FormulaExpress 2.0, visit www.sherwin -automotive.com/formula-express or call 1-800-798-5872.
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Ben Komenkul Became WIN Member to Support Women in the Workplace by Ruth Weniger
Ben Komenkul, Vice President at ClaimForce, is a man among (wo)men. As one of a handful of male members of Women’s Industry Network, Komenkul is so convinced of the value of women in the workplace and in his workforce, he not only joined the organization in 2011, but he has attended every eduBen Komenkul, cational conference Vice President at since he joined. ClaimForce joined We talked with WIN in 2011 Komenkul about the value of his membership in this mostly female organization.
Tell me a little about yourself: I started in the insurance industry when I was 18 in a sales position, representing life, property and casualty policies. I had family that was in the insurance business, so you could say that it was just in my blood. Throughout my career I have worked in various capacities with companies that were all somehow connected to insurance. Now, I am vice-president at ClaimForce.
Tell me about your organization and what you do” With ClaimForce, we saw an opportunity to use technology to improve the claims process. At the same time, we are independent and we provide a sort of ‘Angie’s List’ of the insurance world. Women make up a large portion of our corporate office, probably 40%. Of that group, two key roles, VP of Technology and Material Damage Vendor Manager, both traditionally male roles, are filled by our female leaders. And in the field, women make up about 25% of our total force.
Why are you a member of WIN? I first heard about WIN three employers ago, and in that particular company only 15-20% of our appraisers were women. When looking at the business, I noticed that those female appraisers’ estimates were very detailed and complete—we seldom had issues with their “sheets.” They just didn’t miss the small things. What I took from that is that I wanted to learn more about how women think, work and communicate. That’s when and why I joined WIN…to learn. What value has the organization (WIN) brought to you personally or to your or-
ganization? Aside from giving me the opportunity to network with segments of the industry that I would simply not be exposed to, WIN has helped me relate better to both my male and female clients as well as my employees. Witnessing the co-operation and willingness to work together across this entire organization has been incredible. Isn’t that what we strive for in all of our companies? I was recently at a conference and was acutely aware of the women in the room being the minority…just as I am the minority at WIN conferences. That role reversal gave me a whole new perspective on how I choose to interact when I attend these events. At that same conference I saw that there was a group of women taking a picture. They were from all segments of the industry but the energy and co-operation around this group was remarkable. It turned out that this was a “WIN photoop.” There is no other organization that I have either been part of or witnessed that demonstrates that level of “community.”
What advice do you have for business leaders who may consider joining WIN or sending their female execu-
tives/staffers to the educational conference? Nobody reaches success without the support of the women in our lives. Starting from our mentors, colleagues, assistants, to our partners at home, women are the ones men seek for encouragement when we need it most. WIN, being the sole organization in our industry that encourages more female leadership, deserves to hear that we, as men, support WIN as they work to support their members and their careers. You don’t need to be a woman to understand WIN’s contributions to our collision industry. If you support WIN, you are supporting our daughters, our wives, our colleagues, and our friends. WIN gives women an anchor and motivation to do something more; it gives them inspiration to be more than they ever imagined. So, what would I tell them? I would say “send your employees to conferences, become a member, or sponsor the organization.” It’s the right thing to do, it’s the smart thing to do and it’s a great business decision. Opportunities have opened up for me at WIN and attending WIN conferences has even helped me communicate better with the real decision maker in my home.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 45
Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Farmer’s COD Program, CARSTAR’s Growth, Estimates 10 Years Ago, Texas Rate Survey with John Yoswick
20 years ago in the collision repair industry (September 1995) Also at the Collision Industry Conferences in Kansas City in September, Bob Matejzel of Farmers Insurance said that although one of the company’s regional offices has asked Chicago area shops for price concessions in order to participate in Farmers’ “Circle of Dependability” (COD) program, he did not foresee that happening elsewhere. “I do not see this as a wave of the future, at least I hope it is not,” he said. “Our program was instituted with no concessions. It’s still that way.” – As reported in ABRN. Matejzel, who was among the principle designers of the COD program, retired from Farmers Insurance just 15 months after making this statement and after 32 years with the insurer. The COD program has changed significantly since that time.
15 years ago in the collision repair industry (September 2000) The consolidators have been seemingly very open about their goals and business strategies – and about what they look for in the shops they acquire. CARSTAR, for example, has announced an ambitious 5-year growth plan for the Kansasbased company. While most of its more than 250 shops are franchises, the company plans to add 200 company-owned locations over the next five years. What will CARSTAR be looking for as it acquires shops? Kam Nassar, the company’s chief financial officer outlined a set of characteristics that are fairly consistent with those described by other shop consolidators. CARSTAR, he said, will look to acquire shops that have: - At least $1.5 million in annual revenues – preferably $2 million. - About 10,000 to 13,000 square feet of space, with the production capacity (or room to expand) to handle in excess of $2 million a year in sales. - A computerized shop management system, and good accounting practices. - A well-trained staff, and excellent relationships with customers and insurers. - A visible, high-traffic location in areas with high household incomes
and an abundance of late model vehicles with young drivers. – As reported in The Golden Eagle, September 2000. CARSTAR subsequently abandoned its growthby-acquisition plans and sold many of its corporate-owned stores back to franchisees. It currently has about 440 franchises in 32 states and 10 Canadian provinces.
10 years ago in the collision repair industry (September 2005) The information providers faced criticism at the Collision Industry Conference (CIC) for their proposed solutions and timelines for addressing the issue of shops having to rekey insurer-prepared estimates. The CIC Electronic Commerce Committee outlined two types of scenarios in which shops should be able to receive insurer-prepared estimates electronically. In the first, the insurer’s estimate is prepared at the shop, so the file could be transferred to the shop’s estimating system via a thumb-drive, the USB drive or even a CD or floppy disk. The second scenario that leads to estimate rekeying is when the shop and appraiser are not at the same location and cannot physically move the estimate file from one computer to the other. The committee believes this is a more common situation leading to rekeying than is the “face-to-face” scenario. In terms of the ability to copy an estimate file to an external drive or disk or otherwise transfer it from one computer to another within the shop, Chad Taylor of Mitchell International said his company offers such capability now, and Bruce Yungkans of CCC Information Services said Pathways 4.3, released in mid-October, would as well; Yungkans said CCC’s system would require a one-time set-up fee of about $150. But Scott Jenkins of ADP drew fire from some CIC participants when said his company has no plans to create such capability, preferring to put its “development effort” into addressing the other type of scenario that requires estimate rekeying. “What kind of ‘development’ does it take?” Craig Griffin of Laney’s Collision Center in El Dorado, Ark., asked
46 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Jenkins, pointing out that virtually all software allows a user to copy a file to a disk to transfer to another computer. “My assumption is since every other software in the world allows me to do this, that it’s more likely more difficult for you to keep me from doing that than it is to let me do it, other than you can’t charge me for it.” But Jenkins said ADP sees the ability to download an estimate from an insurer’s library as the solution that would address the majority of the estimate rekeying situations and has pledged to make this possible by next April. He said ADP currently has such a system in place for a shop in an insurer’s direct repair program; that capability, he said, will be expanded to shops not in a particular insurer’s DRP once the insurer gives a oneIn 2005, Craig time permission Griffin of Laney’s for the shop to do Collision Center in so. El Dorado, Ark., – As reported in questioned why Autobody News. shops couldn’t use an external drive or It would be several disk to transfer an years after this disestimate on an cussion before all insurer’s laptop to three information a shop’s computer. providers offered Griffin is still involved in his complete solutions family’s 2-location to estimate rekeycollision repair ing. ADP eventubusiness. ally sold off its estimating system business, which later became AudaExplore.
5 years ago in the collision repair industry (September 2010) The Texas Department of Insurance has received written responses from the state’s top five auto insurers to four pages of questions the Department asked about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices by the insurers. The insurers were asked, for example, how many DRP shops they have in Texas (State Farm = 636, Allstate = 388, Progressive = 277, GEICO = 56, Farmers = 285), and what percentage of their claims in 2009 went through DRP
facilities (State Farm = 50%, GEICO = 35.2%, Farmers = 32%, Allstate = 23.7% of 1st-party claims and 12% of 3rd-party claims; Progressive said it was providing this information to the Department in a supplemental response). The insurers were asked, “Does your company set caps or limits on the reimbursement rates for certain labor, services, parts and/or materials, e.g., paint?” State Farm and Farmers said they do not. Allstate said thresholds and pricing guidelines are negotiated individually with its DRP shops; for non-DRP shops, the company said, thresholds may be used and “additional costs are negotiated with the shop to arrive at an agreed repair cost.” Progressive said it has a “local payment authority” for its claims reps on paint materials, but said it is not a “cap” and “does not represent the maximum we’ll pay on a per vehicle basis.” The amount is sufficient for most estimates, Progressive said, but if the requested amount exceeds it, the claims rep should ask for supporting documentation and also may reference Mitchell’s paint and materials calculator “to confirm or negotiate any differing amounts.” GEICO, too, said it has no caps, only an authorization level on materials “to alert the adjuster to reviews any repair facility charges that appear abnormal in order to determine the appropriateness of such charges.” The Texas survey of insurers was prompted by a petition circulated by a handful of Texas shops asking the Insurance Department to request claims processing procedures and information from the insurers. Larry Cernosek, owner of Deer Park Paint & Body in Pasadena, Texas, presented the petition to the Insurance Department, and helped review drafts of the survey questions. All five of the insurers prefaced their responses to the Department of Insurance by saying the information and documents should not be disseminated beyond the Department. But Cernosek filed an Open Records Act request with the Department to receive copies of the responses. – As reported in CRASH Network (www.CrashNetwork.com), September 27, 2010.
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Continued from Cover
Massive Hail
“It just sounded like baseballs hitting the house. I mean just, ‘Boom, boom, boom,” a constant pound for about 10 minutes and then it was all over with,” said Michael Deyarmond who witnessed the storm.
The hail that fell during the storm in Ogemaw County, MI in early August was heavy enough to shatter car windshields
Though it was short, it all took a big toll on vehicles. You can see where the hail came down here with these dents. Many windows are also smashed and cracked. Auto body shops in West Branch have been slammed all day. “It’s just, just its crazy. Never seen a hail storm like this before, ever.
CCC Mobile Technology Enhancements for Shops
CCC Information Services Inc. (CCC) announced on July 22 enhancements to its consumer solutions, helping repair facilities provide a more streamlined experience to customers throughout the repair process. CCC ONE® UpdatePlus will now offer text messaging that includes pertinent shop and estimate information. CCC ONE® Repair Workflow will now include digital signature capabilities, allowing customers to authorize repair work at the vehicle using the CCC ONE® Touch application on a mobile device. “Consumers expect hassle free interactions with the companies they do business with,” said Mark Fincher, VP, Market Solutions, CCC Information Services Inc. “We’ve looked at our solutions to see how we could change them in order to create high-impact, low-touch interactions that don’t require a phone call or sitting in a lobby waiting for paperwork. We’re excited to introduce enhancements to CCC ONE UpdatePlus and CCC ONE Repair Workflow to enable a better customer experience, while helping our repair facility customers be more efficient.” Call 877-208-6155 for more info.
I mean you might get one car or two cars here and there, but you don’t have 30 cars before lunch pull in your driveway.” A local car dealership had similar problems. At least 50 of their cars are damaged. “Oh, there’s dents all over the place, a smashed windshield—it looked like someone had beat the cars with baseball bats,” said sales associate Killian Frisch at Dean Arbour Ford of West Branch. Even though Deyarmond now has three damaged vehicles, he’s not letting it get him down. “Just a part of living in Northern Michigan—you get these freak storms every once in a while. It just happened to go over West Branch. That was all, it was our turn,” he said. Hail bigger than four inches is extremely rare. In the last ten years in the United States—it’s only happened less than 40 times. See related story on p. 8 this issue.
We thank 9 and 10 News for permission to reprint their stories.
4th Annual Aftermarket Telematics Challenge
The Auto Care Association (ACA) and the Equipment and Tool Institute (ETI) announced that applications are now being accepted for the 2015 Aftermarket Telematics Challenge. Now in its fourth year, the challenge seeks to recognize the best examples of aftermarket technology in telematics. This is the first year the challenge is being co-sponsored by ETI. “The Auto Care Association established the Telematics Challenge in 2012 to demonstrate that the auto care industry can provide the technology and solutions today for vehicle telematics,” said Kathleen Schmatz, president and CEO, ACA. “We see the telematics initiative as a very big task for ETI members and the aftermarket as a whole in the coming years and there will be many challenges and opportunities along the way,” said Greg Potter, executive manager, ETI. Applications can be found at: www.autocare.org. They must be received by Friday, Oct. 2. The winner will be announced at AAPEX and the winning entry will have a $10,000 scholarship awarded in their name to the Aftermarket Foundation.
48 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Continued from Cover
Mosley Defeated
was a possibility, but any inquiry would not start until after the primary. Who did and did not appear on the candidates’ campaign finance reports became an issue, too. Mosley said he would not accept contributions from the insurance industry because he questioned the ethics behind money given by those the commissioner would regulate. “How can it not?” Mosley responded when a reporter asked if he thought Chaney was influenced by insurers’ donations. I see that campaign contribution, what am I going to think? That cloud of doubt is hanging there.” Chaney said he regulates the industry “with a pretty strong hand. Most
of mine comes from agents who have a vested interest in rates not going up. For 35 years, Mosley’s run a body shop, and most of his money comes from payments to consumers from insurance companies to get their cars fixed. So indirectly, he’s getting insurance money.” Chaney did not respond to a cell phone message on the night of August 4. Mosley said on that night if he had it to do over again, he would have started his campaign earlier. He announced his run in February. “I ran hard and talked about the issues. I congratulate him and these issues I brought up are issues that affect everybody in Mississippi. I’ll be right back four years from now if things don’t change.” We would like to thank The Clarion-Ledger for reprint permission.
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Getting Paid for Investing in Facility, Equipment and Training by Stacey Phillips, Assistant Editor
Collision repair shops learned what it takes to keep up with the increasing rate of technological innovation and implementation, during a recent talk by Tim Ronak, Senior Services Consultant from AkzoNobel Coatings. Ronak spoke to attendees during NACE about “Getting Paid for Investing in Facility, Equipment and Training.” The following is based on his presentation. Ronak said the technological face of the automotive industry is evolving exponentially. Some of the factors involved in these changes include onboard safety systems and controls; telematics and web-connected vehicles; accident avoidance; autonomous driving capability; hybrid power systems; and CAFE requirements. Now, more than at any other time in the past, higher specialized environments, equipment and training is required, according to Ronak. “In order to be capable of repairing and servicing this new auto technology, businesses are required to invest capital in people and tooling to stay current and capable,” he said. However, many businesses are realizing a shorter period of return on their investment (ROI).
Current and Past Collision Industry Labor Profitability Trends Ronak explained how gross profit, in terms of the True Cost of Labor (TCL), has been declining over the years. In just the last two years alone, there are more facilities recording less than 50 percent TCL. Ronak said that a decreasing TCL can be attributed to four factors:
1) Wage and benefit unit costs rising faster than lagging labor reimbursement rates This includes the impact of higher costs to retain a decreasing number of skilled trainable workers. Ronak defined a “unit” as a measurement of time that it takes an average skilled technician with an average set of tools in an average equipped facility to complete a specified operation.
2) Absence of a retail door rate in market areas Ronak pointed to the fact that there is currently no prevailing rate survey process in place. In addition, there is often a perception that customers should pay the same or less than insurers. 3) Credit Card Effect Ronak said the increasing use of credit
cards for payment is eroding the realized labor gross profit as shops are taking cards for the payment of jobs and deductibles. “Shops have not adjusted to the retail pricing model to deflect this increasing erosion of marginal profitability,” he said. For example, to cover the credit card fee with a seven percent sales tax, you need an additional $3.26 to $6.66 over the original $60 door unit rate to cover the lost revenue. In this case, the adjusted retail door unit rate would need to be at least 5.4 percent to 11.1
myth,” he said. “People invest for the singular incentive of a return!” Ronak explained that ROI essentially compares the magnitude and timing of investment gains directly with the magnitude and timing of costs. “A high ROI means that gains compare favorably with costs,” he said. “The goal is not to simply break even. The reason to invest is to generate a return.” Costs include such things as interest expenses/finance charges, property taxes, and the opportunity cost of alternative investments.
The definition of “Customer Value” is: “ANYTHING the customer is willing to pay for,” —According to Tim Ronak, AkzoNobel.
percent higher to just preserve the previous profit margin. Ronak said the retail differential may need to increase by 15 percent if a component is built in to shield against fees paid when a deductible is paid with a credit card.
4) Vehicle Technology Advancing at Frantic Pace With vehicle construction and technology changing yearly, repair methodologies become outdated quickly. Vehicles require specialized training and no longer can one skill fit all vehicles. In addition, there is more of a requirement for precision with technology such as accident avoidance and on board safety systems. Ronak said OEM certification is now required to restore some of this technology. “It is now more important than ever to ensure that a facility restore a 4.5 star crash-rated vehicle back to the same 4.5 star crash rating,” he said.
How Much to Invest in Facility, Equipment & Training Ronak said it can be very difficult to determine how much to spend on facility, equipment and training since each business has its own needs. Ultimately, facilities will make a choice depending on what services they offer to customers such as aluminum repair, OEM certification, and servicing hybrid technology.
How to Determine ROI and What is a Reasonable Return Investing in a business requires a return greater than what is available in alternative secure investments. Ronak recommended that an analysis be done prior to making an investment to determine what it will actually cost the business. “The idea that capital investment is ‘just a cost of doing business,’ is a
50 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
He advised that investors have a minimum target return they are willing to accept, which should typically be higher than a more secure alternative investment.
Payback Time Period to Expect for an Incremental Investment Since each investor will have his/her own rationale for determining the expected payback period, Ronak recommended performing a more complete ROI analysis that factors in all costs as they occur against the desired rate of return. Some of the considerations include time frame, residual value, technology, setup costs and finance charges.
Equating Capital Expense for Training, Facility and Equipment into a Reimbursable Charge Ronak said that the actual capital needed for the investment needs to be quantified first. Then the acceptable return for that investment of capital should be defined. He stressed the importance of then determining how to capture revenue related to an expense and how to apportion the expense to the revenue it generates.
Training: Ronak said that training is becoming an annual requirement for individual OEM certification and some of it can be very expensive and time consuming. “These costs need to be tracked and considered when determining the rate you choose to invoice for that skilled and capable labor resource,” he explained. Since the average tech will generate about 3,000 units of billable labor per year, an annual training expense of just $6,000 (including tuition, testing, wages, travel, meals, accommodation and certification fees), it results in a
training surcharge of $2/unit billed. If that labor is specialized to a particular OEM and requires an annual renewal, it could be a recurring charge. Ronak asked attendees to also consider that perhaps only 50 percent of the time the tech is actively engaged in work that requires that certification, the required reimbursement could double to $4/unit billed to recapture the investment in training. Facility: Additional facility expenses may imply that a shop is increasing its capacity or reconfiguring use of a facility or portion of that facility. “A reasonable expectation would be to determine break even and return sales targets,” said Ronak.
Equipment: Businesses equipping to service or repair new technology may not necessarily increase efficiency, according to Ronak. “In some instances specialized tooling may quickly become obsolete as new devices are deployed.” This implies that the $12,000 self piercing rivet tool that may be used five times before a new replacement version is required should be critically considered. He said it might be better to rent these pieces of equipment and charge them on each job … much like a frame fixture/jig. When calculating equipment expenses, Ronak said to determine the total equipment investment, determine the required return on that investment and then calculate incremental sales targets that provide sufficient returns. If additional volume is not forthcoming, he said to consider a higher door unit rate for work and then develop a plan to achieve sales targets. Ronak then addressed the final question: “Are these expenses just the cost of doing business?” He said the definition of “Customer Value” is: “ANYTHING the customer is willing to pay for.” “It is not a large inductive leap to infer that a customer would be willing to pay to ensure the 5 star crash worthiness of the vehicle would be restored back to a 5 star through the repair process by properly equipped and trained resources,” said Ronak. “When investment costs are incurred for the singular purpose of creating customer value they should be passed on as a cost to the customer in one way or another,” said Ronak. “The challenge is to clearly ‘know your cost’ before you justify and ultimately ‘establish your price.’”
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Hot Topics Discussed During Mitchell’s Q3 Industry Report by Stacey Phillips, Assistant Editor
During Mitchell’s August review of its Industry Trends Report for the third quarter of 2015, Greg Horn, Vice President of Industry Relations and Data Analytics, highlighted a variety of topics of interest to attendees. This included addressing rumors and misconceptions surrounding the new Ford F-150. Ford has announced discounts of up to $10,000 on the aluminum-bodied F-150, depending on trim level and power train. While some in the industry are saying this means slow sales and/or buyers are rejecting aluminum, Horn said this is a misconception. “In a new vehicle launch, car makers typically over product load top-of-the-line models.” He said the rebates are designed to “move a buyer up to the next level,” so they purchase a more expensive vehicle.
Ford has announced discounts of up to $10,000 on the aluminum-bodied F-150, depending on trim level and power train
The F-Series reported a modest gain this quarter, although overall sales are down 1.3 percent. Horn said much of this is due to a ramp up of production. “There was a lack of availability of all model ranges of the F-150. As production is now fully up to speed and they are meeting demand plus incentives, I think you are going to see the latter part of the year look good for the F-150. The average transaction price of an F-Series pickup was more than $44,000 per truck, which is $3,600 higher than last year. “The all-new F150 is turning twice as fast on dealer lots than the industry average for halfton pickups, as Ford continues building dealer stocks,” said Horn. Although the 2015 Ford F-Series continued to be the top-selling full-size pickup truck in the United States during July, Horn said the Chevrolet Silverado is closing in. The Silverado showed the most improved for both the month and
year to date, selling 33.9 percent more in July this year than July 2014. He mentioned Chevy’s new ad campaign, which he described as “provocative.” During a new Chevy commercial, the Silverado and F-150 are compared. Chevy hired an independent firm,
a high of 14 million. “We have an aging vehicle population,” said Horn. “We had thought earlier that with record new vehicle sales of 17 million units that this trend would reverse itself and we would start to see a newer average age. What’s happening is we have a record number of light vehi-
“I think we’re going to repair more vehicles than total out vehicles in this year,” — said Greg Horn
AMCI Testing, to document the cost and time for repairs. Based on the results, Chevy said it took twice as long and cost more to repair the Ford F-150. Horn pointed out that it may be a risky campaign for GM, since it uses aluminum parts on its existing Silverado. In addition, the company announced that it will be using a predominantly aluminum structure in 2018. Horn told attendees that after the Insurance Institute for Highway Safety (IIHS) announced repair costs being higher for the F-150, Ford disputed this finding, saying their studies show that costs are actually slightly lower for aluminum vehicles. Horn pointed out that the test used by the IIHS was unusual because they used two F-150s crashing into one another (a 2015 steel-bodied vehicle and a 2015 aluminum-bodied one), which brings up the question of mass. He said it would be interesting to see the same type of vehicle being used side by side. Horn also conducted a live poll during the broadcast. Out of the 528 attendees, 70 percent participated in the survey. When asked if the F-150’s aluminum structure will hurt sales, 73 percent said no. Ninety-two percent of those who answered the poll said they don’t think repair costs will be more for the F-150. In terms of insurance rates, 65 percent said they would be more expensive. Horn plans to share these findings with Ford.
Average Appraisal Values & Estimates During the presentation, Horn discussed the average age of vehicles, actual cash values and actual appraisal values. Since 2002, the average age of a car has steadily increased and Horn said it has now hit a record high of 11.5 years old. Cars 16-24 years old also hit a record of 44 million units and cars on the road that are 24 years and older hit
52 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
cles on the road at 257.9 million.” This is up from 239 million five years ago. He attributed it to the fact that fewer vehicles are being scrapped than before. When looking at the average age of a vehicle being repaired, Horn said the second quarter of 2015 showed it was 7.42 years old. The average actual cash value showed a record value of $14,794 and the appraisal value was $2,884. When looking at auto physical damage (third party losses) the average vehicle age was 7.77 years old. The average actual cash value was a record $13,983 and the average appraisal value
was $2,620. Horn said by looking at these numbers it’s a good indicator of the repair versus replace comparison. “I think we’re going to repair more vehicles than total out vehicles in this year,” he said. He then looked at the three factors that make up a repairable estimate: parts, labor and paint materials. In the second quarter of 2015, he found that labor dollars were actually the largest percentage of the overall contribution to repair costs. In terms of the number of parts used per repairable estimate, the OEM percentage was down slightly at 66.47, compared to the second quarter of 2013 and 2014. Meanwhile, there was an increase in aftermarket parts at 14.52 percent, and recycled parts at 12.95. Remanufactured parts, the lowest percentage of parts dollars, are mainly categorized into two categories: bumpers and alloyed wheels. Horn said the availability of these parts, due to the cost of remanufacturing and availability of plastic bumper covers, is significantly lower than a few years ago. There is also a growing trend using
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more aftermarket covers. “We’re starting to see the overall decrease in the percentage of parts dollars towards remanufactured parts,” he said.
Replacing Damaged Parts Mitchell’s feature article this quarter addressed, “How Often Are the Top Damaged Parts Replaced.” Horn said that out of the number of claims made through the repairable system, 68 percent had a bumper cover included. The replacement rate was 72 percent. “That is a very very high percent; 31 points then the next most replaced part, the fender.” He advised both insurers and repairers to look closely at how bumper covers are handled. He recommended
they be efficient when ordering, replacing or repairing bumper covers. “You really need to focus on expertise,” said Horn. The third most common involved part is the bumper absorber. “The takeaway is to look at bumper covers, and make sure appraisers are making the optimal decision for that bumper cover, whether it is repair versus replace,” said Horn. Mitchell’s Industry Trends Report can be accessed online: http:// www.mitchell.com/industry-trendsreport/itr-2015-q3-apd/index.html. For more information, contact Mitchell@lewispr.com.
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Seminar on Trends
statistics were reversed. So, what can be done to stay ahead of the game, or even just keep up with it? According to the PowerPoint presentation, use predictive analytics to: ● Leverage thousands of data points ● Provide guidance and support ● Increase operational consistency ● Every dollar that flows to the bottom line starts with the estimate
● Increase kept informed and net promoter scores ● Reduce waste in phone-tag
Lastly, Scribner, Trahey and Henderson encourage shop owners to: ● Embrace change in order to thrive ● Invest in people, training, equipment certifications ● Change how we engage with consumers ● Mindset of operating a growing business ● Leverage software and technology
Give us your opinion on matters affecting the industry.
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