Midwestern Issue Oct. 2014

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VOL. 4 ISSUE 1 OCTOBER 2014

NC Shop, K and M Collision, Joins RICO Case Against Seven Major Insurers

A First-Person Account of the Consolidated MDL Hearing in Orlando, September 11

K and M Collision LLC of Hickory, NC, has been included as a plaintiff in a lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) against seven major insurance carriers and their affiliates. The suit, originally filed in an Illinois district court on April 30, accuses State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual, Nationwide, and many of their respective subsidiaries, for short pays and conspiracy to establish “an artificial market value for collision repairs.”

As an observer of the initial court proceedings for the repairers Multi-District Litigation against dozens of insurers in the Orlando Federal Courthouse [on Sept. 11], I can’t tell you the feeling that I had and that other repairers present expressed while watching the proceedings. I’m not sure any words can capture the feeling but it was a feeling that I believe was long overdue for repairers... and insurer’s alike. While phones and cameras were not allowed in the courthouse, the picture of the hearing was one I wish every repairer could have seen. I was sitting at the back of the courtroom, close to center and from my view point I saw 50 plus attorneys

by Lee Emmons

Kevin Michael Bradshaw, VP of Operations at K and M Collision LLC, says, “I think the lawsuit will uncover and prove what many shops throughout the country have known for years, that the insurance companies are refusing to pay for proper repairs, and are using illegal methods to suppress the market rate.” This is the latest in a series of actions taken by body shops throughout the country in an effort to push back against insurance company tactics that they believe to be unlawful. The Mississippi Collision Repair Association See K and M Joins RICO, Page 8

Federal Court in FL to Rule on Overtime Pay for Employees in Body Shops Under FLSA

See Overtime Pay, Page 6

P.O. BOX 1516, CARLSBAD, CA 92018

A federal court case involving overtime payment for employees under the rules of the Fair Labor Standards Act (FLSA) was filed in State Court February, 2014, and removed to the Federal Florida Southern District Court in July. The court’s ruling in Smoluk v. Action Auto Body, LLC, has the potential to clarify confusing and contradictory positions from the Department of Labor and rulings by courts with regard to exempt status for employees in automotive repair. The plaintiffs, Jospeh Smoluk and Michelle Smoluk, are suing their

former employer, Franck Tatto and Action Auto Body, LLC., for damages exceeding $15,000, excluding attorneys’ fees or costs for breach of agreement and unpaid wages under the FLSA. Franck Tatto and Action Auto Body, LLC., located in Broward County, FL, deny the allegations. In court documents, the defendants say the “… Plaintiffs have been paid all wages due in full and in a timely manner.” According to the lawsuit, Jospeh Smoluk worked for Action Auto Body as a non-exempt service writer from

Change Service Requested

by Stacey Phillips, Assistant Editor

by Ron Perretta

who were there representing the 40 plus defendant insurers, all in dark suits, sitting side by side, row after row along the entire right side of the court room. In the center, on an elevated bench were the two Honorable Judges (Presnell and Smith) who sat facing the court room, and then to my left were five attorneys sitting at the plaintiff’s table who were there representing hundreds of collision repairers from various states. To the far left, in spectator’s area were 15 or more shop owners who were plaintiffs in the lawsuits to witness this first step in what will prove to be, no doubt, a pivotal and historical event for the entire collision repair industry. When provided the opportunity to See MDL Opens, Page 10

Roseville, MN, Police Replace Local Auto Body Shop After Employees Take Squad Cars on Joyride The Roseville Police Department in MN has hired a new auto body shop after employees from its former vehicle repair vendor reportedly drove squad cars at “irresponsible” speeds on the way to be fixe, as reported by Johanna Holub at LillieNews.com. According to the department, on the morning of Thursday, Sept. 4, there were two phone calls from “concerned citizens” regarding two marked squad cars “being driven at excessive speeds” on County Road C, which has a 40 mph speed limit, from Victoria Street to Western Avenue. The department found the vehicles were being driven by employees from a local auto shop the department used for repair services. The employees came to the Roseville Public Works garage to pick up two squad cars that needed body work following a police pursuit that took place overnight, and were supposed to drive the vehicles to the repair shop. They had authorization to do so, according to the police statement. After discussing the matter with the owner of the auto repair business, the department decided to “end busi-

ness dealings” with the shop. “The department recognizes its accountability to the community,” the statement reads. Lt. Lorne Rosand said the vehicles were equipped with everything “except the rifle,” which is secured in the police armory before a vehicle is taken to any location for repair work. Because the department contracts several vendors for service including a local dealership, Rosand said mechanics often pick up police vehicles and drive them to the shop for repairs. Certain repairs also require a test drive to be sure the problem is fixed. They’ve never had a problem with vendor employees driving their vehicles unprofessionally until now. “It’s not uncommon for civilians to drive our cars,” Rosand explained. “We just hope they do so in a manner that represents the city in a very positive way. These two individuals did not.” But, from now on, the department plans to put in the “best effort possible” to have a city mechanic or police officer drive squad cars to be repaired, Rosand added.

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


2 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com


Contents

NATIONAL A First-Person Account of the Consolidated MDL Hearing in Orlando, September 11. . 1 Aluminum Association to Present During SCRS’ OEM Collision Repair Technology Summit . . . . . . . . . . . . . . . 43 ASA Announces Plans to Relocate Headquarters. . . . . . . . . . . . . . . . . . . . 45 Auto/Steel Partnership to Present During OEM Collision Repair Technology Summit at SEMA Show . . . . . . . . . . . . 42 Axalta Coating System’s Front Royal Plant in VA Hosted Congressman Bob Goodlatte . . . . . . . . . . . . . . . . . . . . 34 Boyd Group Acquires Seven Champs Collision Centers . . . . . . . . . . . . . . . . . 12 Boyd Group Adds GA & FL Collision Repair Shops. . . . . . . . . . . . . . . . . . . . 35 Caliber Enters FL Market With Four New Stores . . . . . . . . . . . . . . . . . . . . . 28 CarMax Recruiting for More than 1,000 Jobs . . . . . . . . . . . . . . . . . . . . . 33

Victoria Antonelli is Our New Online Content Editor

Contact Stacey at:

Contact Victoria at:

Stacey Phillips

is our new Assistant Editor. She has written and edited for numerous online and print publications over a 15-year period. Stacey graduated from the University of Southern California with a double major in journalism and political science. Born and raised in Los Angeles, CA, she also lived in Calgary, Alberta where she edited several magazines before joining Suncor Energy. There she helped create an online company newsletter that received the Apex Award of Excellence two years in a row. Stacey also co-authored a commemorative history book for the Province’s Institute of Chartered Accountants. After moving back to San Diego in 2007, Stacey has spent the majority of her time writing about local issues. When she isn’t writing, Stacey enjoys playing tennis, reading and spending time with her family.

sphillips@autobodynews.com with your story ideas and news items. 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, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Audi Wholesale Parts Dealers . . . . 45 Automotive International . . . . . . . . . 12 BMW Wholesale Parts Dealers . . . . 43 Bolt Buster . . . . . . . . . . . . . . . . . . . 20 Car-Part.com . . . . . . . . . . . . . . . . . . . 4 CarcoonAmerica Airflow Systems . 23 Celette . . . . . . . . . . . . . . . . . . . . . . . 16 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 Charles Gabus Ford . . . . . . . . . . . . 17 Chief Automotive. . . . . . . . . . . . 26, 27 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Clements Cadillac-Chevrolet-Subaru . 9 Color-Dec North America, Inc. . . . . . 8 Dent Tools Direct USA . . . . . . . . . . 26 DJS Fabrications, Inc.. . . . . . . . . . . 48 Dominion Sure Seal, Ltd. . . . . . . . . 10 Equalizer Industries, Inc. . . . . . . . . 31 Erhard BMW of Bloomfield Hills . . . 39 Erhard BMW of Farmington Hills . . 39 GlasWeld Systems, Inc . . . . . . . . . . 22 GM Wholesale Parts Dealers . . . . . 36 Graham Auto Mall . . . . . . . . . . . . . . 35 Hank Graff Chevrolet . . . . . . . . . . . 33 Herkules Equipment Corporation. . 37 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers . 36 Innovative Tools & Technology, Inc. . 21 Jake Sweeney Chevrolet . . . . . . . . 28

Victoria Antonelli

is the newly appointed online content editor at Autobody News. Victoria will be managing our new website and social media pages. She is originally from South Kingstown, RI, and has lived in San Diego, CA, since August 2013. Victoria graduated from the University of Rhode Island in May 2013 with a BA in journalism. Previously, she attended High Point University in High Point, NC, for two years, and studied abroad for a semester at Oxford Brookes University in Oxford, England. Victoria completed two internships while in college, one with the University of Rhode Island Marketing and Communications Department and another at Rhode Island Monthly Magazine. Victoria’s favorite color is turquoise and her hobbies include hiking, reading, writing, and photography.

vantonelli@autobodynews.com with your story ideas and news items. Serving Illinois, Iowa, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

Autobody News

Midwest

COLUMNISTS Antonelli - Autobody News Launched Our New Website on September 13 . . . . . . . 4 Attanasio - Is Angie’s List Impartial or Is She Playing Favorites? . . . . . . . . . . . 40 Franklin - End Useless Marketing—Redirect Funds and Get Results! . . . . . . . . . . . . 38 Luehr - Better Blueprinting, Part 2: How to Set Up a Blueprinting Area . . . . . . . . 18 Sisk - Parts Authorization, Indemnification and More—Documentation Part 3 . . . . 36 Yoswick - CIC Committees Look at Autonomous Vehicle Issues, Impact of “Length of Rental” Formulas . . . . . . 44 Yoswick - October Retrospective—ADP, Non-OEM Parts, AAIA Study . . . . . . . . 41

Celette Has Fixtures for M-B B Class Electric Drive . . . . . . . . . . . . . . . . . . . . 31 Counterfeit Engine Control Devices Found in Florida . . . . . . . . . . . . . . . . . . 35 Crowd Favorite the “Telephone Doctor” Returns for SEMA Education Days . . . . 34 Federal Court in FL to Rule on Overtime Pay for Employees in Body Shops Under FLSA . . . . . . . . . . . . . . . . . . . . . . 1 FL is the Third Most Expensive State in Which to Own a Car . . . . . . . . . . . . . 46 Ford and Chrysler Up, GM down in August Car Sales . . . . . . . . . . . . . . . . . 47 GM Posts Best July Sales Since 2007, Toyota Also Up . . . . . . . . . . . . . . . . . . 13 Herkules to Host NASCAR Driver Brendan Gaughan During SEMA Show. . . . . . . . 21 K & M Collision Sends Second Version of ‘Open Letter’ Video to NC Attorney General . . . . . . . . . . . . . . . . . 26 MS is the 4th Most Expensive State for Car Ownership Overall . . . . . . . . . . 46 NABC 20th Anniversary Golf Fundraiser, January 14, 2015 . . . . . . . . . . . . . . . . 42 Napa Body Shops Jolted After 6.0 Quake. . 30 NC Auto Injury Attorney Urges Drivers to Use the New NHTSA Online Recall Check . . . . . . . . . . . . . . . . . . . . 44 NC Shop, K and M Collision, Joins RICO Case Against Seven Major Insurers . . . . 1 New SEMA Event Provides Opportunity for 10 Builders and Their Cars . . . . . . . 12 Newest Shop in Utah Opens November 1. . 35 NJ is 5th Most Expensive State for Auto Ownership . . . . . . . . . . . . . . . . . . 47 NY Shop & Owner Pleads Guilty to Grand Larceny & Criminal Tax Fraud. . . . . . . . 34 NY Shop Owner’s Forgotten Lottery Ticket is a Nearly-Lost $2.9 Million Winner. . . 27 O’Reilly Automotive Joins the CCC TRUE™ Parts Network . . . . . . . . . . . . . . . . . . . 28 Over $500,000 in Support to Makeover School Grant Applications . . . . . . . . . . 22 PA Insurance Co. Vindicated in YouTube Bugatti Crash Case . . . . . . . . . . . . . . . 21 PA Shop Owner Held Meeting to Discuss How Insurance is Negatively Impacting Industry. . . . . . . . . . . . . . . . . . . . . . . . 20 Panel to Discuss Aftermarket Access to OEM Education During NASTF Meeting Nov. 5 . . . . . . . . . . . . . . . . . . 20 SCRS Posts Tribute to March Taylor for Supporting and Inspiring the DEG. . . . . 46 Season 34 of MotorWeek 2014 Features Collision Mitigation, Traffic Alerts . . . . . 47 Service King Team Member Wins Jeff Silver Award . . . . . . . . . . . . . . . . . 13 Six Holmes Body Shop Locations Acquired by Cooks Collision Centers, All but Original Shop in Pasadena . . . . . 33 Theft and Serious Injury at PA Auto Body Shop. . . . . . . . . . . . . . . . . . . . . . 27 Volvo Reappears on World Market with XC90 . . . . . . . . . . . . . . . . . . . . . . 43 WI is the 5th Cheapest State in Which to Own a Car . . . . . . . . . . . . . . . . . . . . 46 WY is the Most Expensive State in the US for Car Ownership . . . . . . . . . . . . . 46

Stacey Phillips is Our New Assistant Editor for Print

Indexof Advertisers

REGIONAL AASP–MN Announces Fall Seminars . . . . 22 ABRA Auto Body & Glass Helps Raise $40,000 for Helping Paws . . . . . . . . . . . 9 ABRA Auto Body Acquires USA Collision Centers . . . . . . . . . . . . . . . . . . . . . . . . 23 Appeal Seeks to Open MI Insurance Fund To Public . . . . . . . . . . . . . . . . . . . . 9 ASA Confirms Detroit as Location and Dates for Next NACE-CARS Expo . . . . . 13 Attanasio - AASP-MN President Jerald Stiele has Lifetime of Repair Experience . 14 Bus Inspections Conducted by MI Police . 23 Collision 34 in MI Expands to New Building . 23 Fewer Highway Traffic Deaths in MO . . . . . 9 Mankato Free Press.com Posts “What’s What on Wrecked Windshields” in MN. . 28 MI Ban on Non-OEM System . . . . . . . . . . 23 MI’s No-Fault Car Insurance Under Fire . . 28 Roseville, MN, Police Fire Local Auto Body Shop After Employees Take Squad Cars on Joyride . . . . . . . . . . . . . . . . . . . . . . . 1 Sisk - AASP-MN on Track to Break Membership Record . . . . . . . . . . . . . . 16 Suburban Collection Adds Two New MI Repair Shops . . . . . . . . . . . . . . . . . 23 UFG’s Dividend for AASP-IL Insurance Program . . . . . . . . . . . . . . . . . . . . . . . 23

New Talent Joins the Autobody News Editorial Staff

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Kia Wholesale Parts Dealers. . . . . . 47 Laurel Auto Group of Westmont . . . . 7 Lexus Wholesale Parts Dealers . . . 42 Loaner & Rental Insurance by Northland . . . . . . . . . . . . . . . . . . . 8 Luther Hopkins Honda . . . . . . . . . . 34 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 5 Martech Services Company . . . . . . 18 Mazda Wholesale Parts Dealers . . . 47 MINI Wholesale Parts Dealers . . . . 43 Mitsubishi Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . 44 MOPAR Wholesale Parts Dealers . . 29 Morrison’s Auto Parts . . . . . . . . . . . 32 Motor Guard Corp. . . . . . . . . . . . . . . 6 PreFab Ads . . . . . . . . . . . . . . . . . . . 22 Prima srl, Inc. . . . . . . . . . . . . . . . . . 13 SATA Spray Equipment . . . . . . . . . 11 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 18, 19 Subaru Wholesale Parts Dealers . . 40 TG Products, Inc. - The Rail Saver . 14 Toyota of Des Moines . . . . . . . . . . . 17 Toyota of Grand Rapids . . . . . . . . . 32 Toyota Wholesale Parts Dealers . . . 38 Valspar Automotive . . . . . . . . . . . . . . 2 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 45 West Bend Insurance . . . . . . . . . . . 30

www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 3


Web Window

Autobody News Launched Our New Website on September 13 with Victoria Antonelli

On Sept. 13, 2014, Autobody News launched a new and vastly improved website, under the same domain name— www.autobodynews.com. Enhanced video handling, strengthened social media connectivity, optimal organization, and an eye-catching color scheme are just a few of the many up-

Home The home page (see p. 8)displays the most recent articles in the following categories—Regional Content, Product News, National Events, Recent Association Articles and the Video Gallery. The Video Gallery will feature recent videos that has impacted the industry.

Regional Content Regional Content is grouped, like our print editions, into five major sections of the country—Midwestern News, Southwestern News, Western News, Northeastern News, and Southeastern News. National News, which is replacing the former Industry News category, covers stories that affect all corners of the US. The regions are color-coded at the top of the page to match the headings of each section. Each region now has its own domain. For example, western.autobodynews.com will take you to Western Regional Content, including News, Associations, and Events. You can also located and save RSS feeds from each of these regional categories.

SPS SPS stands for Shop & Product Showcase. This unique publication gives shop owners and managers a detailed, peer to peer perspective on the prod-

grades this advanced template has to offer. The template is fully responsive, meaning you can view it optimally on any device you carry. The main functionality is to group our regional coverage into Regional Content pages, one for each of the print issues of Autobody News.

News Here you will find National News, Company News, Product News, Insurance News, and Automakers and Dealers. Find current and timely news stories about automobile companies, new product releases, insurance dealings, and news provided by dealerships.

4 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

ucts and services being used. Downloadable PDFs of each issue are located in this section, with the most recent being October 2014. The next drop down item, Advertising in SPS, gives detailed information about advertising policies, and how you can get your products noticed by the owners and managers of over 40,000 collision repair shops nationwide. Columns This tab features articles by industry enthusiasts. With the help of over 15 contributors, AutoBody News is able to produce thought-provoking, informative features.

Events This drop down menu not only lists meetings, classic automobile shows, and other activities for all five regions, but also national events, including the latest on SEMA and NACE. See Our New Website, Page 8


www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 5


Continued from Cover

Overtime Pay

October 1, 1997 to January 25, 2012. Michelle Smoluk claims she performed work as a non-exempt secretary from approximately May 2004 to January 25, 2012. The plaintiffs say they worked an average of 50 hours per week and were not paid the proper overtime rate for the hours they worked over 40 per week, as prescribed by Federal and Florida law. They also say that Action Auto Body received gross revenue in excess of $500,000 per year, which satisfies the FLSA’s coverage requirements of working in interstate commerce. According to Section 7 of the FLSA guidelines, unless employees are specifically exempted from this rule, “...employers must pay covered workers at least one-and-a-half times their regular hourly wage for hours worked over 40 hours a week at a given job. Employers may choose to pay more than time-and-a-half for overtime or to pay overtime to employees who are exempt from overtime under the FLSA.”

The Smoluks are seeking damages for unpaid minimum wage and unpaid overtime compensation for hours they worked in excess of 40 per week with interest; an equal amount in double damages/liquidated damages; the cost of the action and reasonable attorneys’ fees and additional relief decided by the court. If the plaintiffs prevail, there is likely a statute of limitations for any entitlement going back two or three years, at the discretion of the court, from the date on which the case was filed. Since the case was filed in State Court in February 2014, that would be the effective date for damages. The defendants assert that Jospeh Smoluk was exempt from the FLSA under the executive and/or professional exemptions and Michelle Smoluk was exempt under the administrative exemption. Over the years there has been considerable confusion about the status of service writers and whether or not they are exempt from the overtime pay provisions of the FLSA. The answer appears to lie in whether or not the employer is a deal-

Excerpt from FLSA Regulation §779.372

Nonmanufacturing establishments with certain exempt employees under section 13(b)(10). (c) Salesman, partsman, or mechanic. (1) As used in section 13(b)(10)(A), a salesman is an employee who is employed for the purpose of and is primarily engaged in making sales or obtaining orders or contracts for sale of the automobiles, trucks, or farm implements that the establishment is primarily engaged in selling. As used in section 13(b)(10)(B), a salesman is an employee who is employed for the purpose of and is primarily engaged in making sales or obtaining orders or contracts for sale of trailers, boats, or aircraft that the establishment is primarily engaged in selling. Work performed incidental to and in conjunction with the employee's own sales or solicitations, including incidental deliveries and collections, is regarded as within the exemption. (2) As used in section 13(b)(10)(A), a partsman is any employee employed for the purpose of and primarily engaged in requisitioning, stocking, and dispensing parts.

(3) As used in section 13(b)(10)(A), a mechanic is any employee primarily engaged in doing mechanical work (such as get ready mechanics, automotive, truck, or farm implement mechanics, used car reconditioning mechanics, and wrecker mechanics) in the servicing of an automobile, truck or farm implement for its use and operation as such. This includes mechanical work required for safe operation, as an automobile, truck, or farm implement. The term does not include employees primarily performing such nonmechanical work as washing, cleaning, painting, polishing, tire changing, installing seat covers, dispatching, lubricating, or other nonmechanical work. Wrecker mechanic means a service department mechanic who goes out on a tow or wrecking truck to perform mechanical servicing or repairing of a customer's vehicle away from the shop, or to bring the vehicle back to the shop for repair service. A tow or wrecker truck driver or helper who primarily performs nonmechanical repair work is not exempt.

6 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

ership or a collision center. The distinction is important, since the exemption for service writers only applies to service writers who work in an auto dealership, that is an ‘establishment . . . primarily engaged in the business of selling automobiles, trucks, or farm implements to the ultimate purchaser.’ 29 CFR 372(b)(ii). If the service writer works in a collision center, service shop, or some other business which does not actually sell cars, then the exemption does not apply, according to attorneys. If Action Auto Body, LLC is a dealership, then the service writer exemption pretty clearly applies. There is a case called Brennan v. Deel Motors, 475 F.2d 1095 (5th Cir. 1973) which is directly on point, and is actually binding on the court where the Smoluk case is pending. “A body shop would have all of the general exemptions available under the FLSA at their disposal,” said an attorney with a nationwide firm that represents employers in labor and employment matters. “For example, executive, administrative, professional, computer professional, outside sales. They just would not have the three commonly used dealership over-

time exemptions: salesperson, partsmen, and mechanic,” said the attorney, who is not affiliated with this case, adding the service writer exemption is considered part of the salesperson exemption. In 1966, Congress amended the FLSA and created an exemption for any salesman, partsman or mechanic employed at a retail dealership. A year later the U.S. Department of Labor (DOL) confirmed service writers were exempt from overtime pay; however, they retracted their statement a month later and issued an opinion letter saying service writers would not be included in the exemption. Since then numerous federal cases have ruled that service employees are exempt from FLSA overtime. On April 5, 2011, the Wage and Hour Division of the DOL clarified its position. According to their website, “Salesmen, partsmen and mechanics employed by automobile dealerships are exempt from the overtime pay provisions of the FLSA.” Richard Longo, Director of Enforcement for DOL’s Wage and Hour Division in the Western Region said, “The April 2011 cleanup rule did stipSee Overtime Pay, Page 10


Laurel Auto Group of Westmont Accidents Happen

Laurel BMW of Westmont

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Mercedes-Benz of Westmont • Large Inventory • Exceptional Service 200 E. Ogden Ave Westmont, IL 60559 www.mercedesbenzofwestmont.com

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Hours: M-F 7-6; Sat 8-4 www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 7


Tips for Smooth Operation If you’re a frequent flyer on our site your browser may store links to our old site in its cache. If you’re not getting active links, go to your history and delete the cache file, then relaunch autobodynews.com.

Continued from Page 4

Our New Website

Associations The association stories come from all five regions, as well as national association news. Examples include news about the Iowa Collision Repair Association (ICRA), Automotive Service Association (ASA), and the Louisiana Collision Industry Association (LaCIA).

Some Ugly Regional Placeholders? You’ll notice some placeholder banner ads on the regional content sections of the website. If you’re a dealership doing wholesale parts trade in your area, consider replacing these ‘eye catching’ spots with a banner of your own. We’ll design it for you at no charge. Email advertising@autobodynews.com for more information.

Digital Editions Download a PDF version of past and present regional issues.

Contact Us Click here to find numbers and emails for all staff members at AutoBody News. Information on how to sign up for the eNewsletter or a print subscription can also be found here.

Login Click this link in the top right corner to create and sign into your account. You will need to create an account and log in in order to post a comment on an article or column for example.

Social Media On the top left corner, you will find

links to our Twitter, YouTube, Facebook, and LinkedIn pages. On the left side of each article, you will also see a Facebook tab, which allows you to “like” our page.

Take Advantage of Regional Coverage As a shop owner or association member we want to know what’s going on with your shop or your association in your state. Send us an email with the date of your meeting in advance, we’ll post it in our regional secction. Let us know what happened with pictures or video. Likewise if there’s something special going on with your shop, we can get the word out. Email your details to: editor@autobodynews.com. Thanks. We hope you enjoy using our new site.

Continued from Cover

K and M Joins RICO

filed to block State Farm’s PartsTrader parts procurement mandate in the summer of 2013; a Tennessee body shop filed suit against Progressive for steering and shortpays in November of 2013, and Ray Gunder has filed suit to block State Farm’s PartsTrader in Florida. The RICO Class Action plaintiff, Crawford’s Auto Center, is a Pennsylvania-based automobile collision repair facility who alleges that the defendants conspired amongst themselves and/or others to “suppress compensation to repair facilities for automotive collision repairs covered by insurance.” For more on the RICO case, search ‘RICO’ at: www.autobodynews.com.

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ABRA Auto Body & Glass Helps Raise $40,000 for Helping Paws

by ABRA Auto Body & Glass

ABRA Auto Body & Glass announced on Sept. 9, 2014 it helped raise more than $40,000 during the

second annual Bent Creek Charity Golf Tournament to benefit Helping Paws, Inc. Over 100 golfers and guests gathered at the Bent Creek Golf Course in Eden Prairie, MN on August 11, 2014 to support Helping Paws of Hopkins, MN. The second annual golf event is part of Helping Paws’ initiative to provide the healing power of service dogs to disabled veterans suffering from Post Traumatic Stress Disorder (PTSD). The cost of raising and training a service dog is estimated at $30,000. The canine companions

will assist in transitioning returning veterans back to civilian and home life. “We are honored to partner with important organizations like Helping Paws to support our Veterans,” said Duane Rouse, ABRA’s president and chief executive officer. “We want to give back to our veterans in recognition of the sacrifices they make for our freedom and country. Supporting Helping Paws to help heal our military heroes is our privilege.” Since 1984, ABRA has been supporting charitable causes in Minnesota and throughout the United States with similar core values and common goals. The company has raised more than a million dollars for local charities in the Twin Cities area and across the country.

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Appeal Seeks to Open MI Insurance Fund To Public

Fewer Highway Traffic Deaths in MO

Traffic deaths on Missouri roads have been on a downward trend for nearly 10 years, and a highway patrol spokesman said the declining numbers are likely due to factors such as education and road improvements. The number of traffic fatalities has dropped since 2005, with 2012 the only year showing an increase from the previous year, the Jefferson City Tribune reported. On average, about 1,068 deaths a year have occurred since the Missouri Highway Patrol began reporting traffic fatalities in 1949. The highest number of traffic deaths reported was in 1969 with 1,521 fatalities, and the lowest number reported was in 2013 with 757 deaths. Lt. John Hotz, Missouri Highway Patrol spokesman, said the state agency attributes the decline in fatalities to education, enforcement, engineering and emergency medical services. “The Patrol, of course, works diligently in the areas of education and enforcement, conducting educational programs for tens of thousands of Missourians each year,” Hotz said. “We stress the importance of paying attention, obeying the speed limit, driving sober and buckling up.”

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A group is asking the Michigan Supreme Court to force an insurance fund that charges drivers a fee to open its books to the public. The Coalition Protecting Auto No-Fault won its case in Ingham County only to see the state appeals court reverse this year. It will announce an appeal Wednesday. The advocacy group says the Michigan Catastrophic Claims Association should be covered by the state Freedom of Information Act so more is known about how its annual fee is set. The MCCA is a private nonprofit created by the Legislature. Michigan drivers pay the fund $186 per car per year for unlimited medical benefits for catastrophic injuries and rehabilitation. The insurance industry says the MCCA’s pertinent financial data is available from its website or the state insurance department.

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Continued from Cover

MDL Opens

speak and ask quotations, few came from the defending attorneys. John Eaves Jr. mentioned to the courts that since the litigation, some repairers have experienced various levels of abuse from some insurers as and asked of the court to consider rendering a ruling to prohibit steering and retaliatory efforts against those repairers who are named as plaintiffs in the litigation and to enjoin them from efforts to harm them by making disparaging comments about them and to steer consumers away from them. The judge stated in so many words that he would not render an order at that time as he anticipated the insurers would not make it necessary to do so... but he would consider it if indeed their behavior warranted it. This was pivotal as it placed the concern in the judge’s minds as well as became part of the record. Repairers will be documenting any such instances and share them with their legal counsel. The five attorneys representing the repairers were Mississippi attorneys John Eaves Sr., John Eaves Jr., Continued from Page 6

Overtime Pay

ulate our current position on this matter and that we don’t take an automatic position that service writers are exempt just because of their job title. That would be consistent with how we apply any of our exemptions. We look at the facts of the case. “With that being said, even though we’ve made these changes when appropriation came in for the spending bills they basically didn’t fund some of the changes,” said Longo. “We’re taking a non-enforcement position on the matter currently but it does not prohibit individuals from seeking court decisions to determine exempt or non-exempt status.” Longo said that if courts are looking for interpretive guidance, the most recent guidance would be the April 2011 update. “If the company is able to establish that service writers satisfy one of the white collar FLSA exemptions, it would eliminate any need to record service writers’ hours worked or pay overtime for hours

Allison Fry, Hal Wilkins and Florida’s own Brent Geohagan, who, as most know, has represented Ray Gunder in his ongoing legal quests. Because this was a pretrial hearing, the judges were cordial yet to the point regarding their conveying the court’s expectations for the attorneys. The judges made it clear to all that frivolous filings and unnecessary delays and such would not be tolerated, and due to the sheer volume of the issues and evidence that was to be presented, that the court would be quick to discourage and stop such behavior. Based upon the limited questions posed by the insurer attorneys, the judge’s message had been received clearly and duly noted. Upon conclusion, as the court rose to its feet and the judges left the bench, while it was quiet and subdued, there was a sense of relief along with excited expectations by the repairers who were there. They knew that this was the beginning of long overdue changes in the automotive collision repair and casualty insurance industries normal behavior and practices. It wasn’t a day of reckoning… but I firmly believe it is the first day of its beginning! worked over 40 in a work week,” said the attorney consulted. “While service writers typically work long hours, they are usually paid quite well. If service writers are found to be exempt under one of the FLSA white collar exemptions, this would be a great victory for body shops and collision centers.” The defendant’s attorney has a policy of not commenting on pending litigation. The plaintiff’s attorney was unavailable for comment at press time. Autobody News will continue to follow this story and update readers on the status of Smoluk v. Action Auto Body, LLC. Details about the applicable FLSA regulations are available on the following website: www.ecfr.gov under section 779.372. As always, consult a qualified attorney before acting or reacting to any business news discussion such as this.

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10 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

Excerpts from Orlando Sentinel Articles

The following are excerpted from Paul Brinkman’s September 11 article in the Orlando Seninel as referenced by Ron Perretta. •About 55 attorneys representing insurance companies came to the Orlando court hearing September 11 •The judge in charge, Senior U.S. District Judge Gregory Presnell, showed dry humor, saying, “I don’t know what we did to deserve this, but here we are.” •Body shop attorneys said they expect another 20-25 cases to be filed in other states. •The hearing mostly set schedules and conducted introductions between attorneys and court staff. •Michael McCluggage with Eimer Stahl in Chicago said he would be doing “most of the talking in court for State Farm.” •Judge Presnell said he would discourage lengthy extensions on deadlines or filing too many back-and-forth replies to others’ motions, adding “you’ll have to come back from the golf course to get it done [if he allows it.]” Separately, Paul Brinkman has quoted Ray Gunder of Gunder’s Auto Center in Lakeland as saying, “[I have] seen many cars that were repaired improperly at other shops under insurer-imposed expense limits.” “One of those cars was a 2007 Toyota Camry hybrid owned by Joan Dick of Lake Wales, Gunder said. After a collision, Dick said, she had the car repaired first at a shop that is part of State Farm’s repair program. She says the car still shook violently on the road. She eventually took it to Gunder. Gunder’s inspections indicated a cracked block and bent steering column, among other problems, Dick said in an interview. Eventually the car was declared totaled. “I had been through hell for months,” Dick said.” “Gunder’s attorney on the case, Brent Geohagan of Lakeland, said the court may need to rent a hall for all the attorneys involved.”


www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 11


Boyd Group Acquires Seven Champs Collision Centers in Southeast Louisiana The Boyd Group Inc. has signed a definitive agreement and concurrently closed the acquisition of Champ’s Holding Company, LLC (“Champ’s”) the company announced in a news release on Sept. 12. Champ’s is a premier full-service auto collision repair service provider in southeast Louisiana, owning and operating seven collision repair centers. Champs locations are in New Orleans, 4047 South Carrollton Ave.; Elmwood, 200 Edwards Ave, Harahan, LA; Kenner, 1601 22nd Street; Westbank, 3621 Lapalco Blvd., Harvey, LA; Northshore, 2501 Florida Street, Mandeville, LA; Hammond, 500 South Morrison Blvd.; and Baton Rouge, 6137 Siegen Lane. Champ’s has grown significantly since its inception in 1978 and generated sales of approximately $37 million for the trailing twelve months ended June 2014. This acquisition increases the number of Boyd collision repair locations to 313 across 16 states and five provinces. “We are very pleased to enter the Louisiana market which will expand

our reach to new customers, increase our geographical footprint for our insurance industry partners and also provide us with another new market from which to execute our single location growth strategy,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “With this acquisition we strengthen our position as the largest multi-shop operator in North America in terms of number of locations, and demonstrate our ability to add attractive multi-shop operations in line with our growth strategy.” “Our team is proud of the business we have built over the last 36 years,” added Champ’s President Danny Kingston. “Champ’s decades of growth and success in the collision business are a direct result of the efforts of our knowledgeable, friendly, and professional team. We are excited to build on our accomplishments as part of the Boyd team.” The total purchase price consideration of approximately $35.0 million. It is within the range of other recent multi-location acquisitions completed by Boyd.

12 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

New SEMA Event Provides Opportunity for 10 Builders and Their Cars

SEMA Ignited, a new post-Show event, will offer exhibitors and industry partners an opportunity to reach an expanded audience, including media and consumers. The event will include a spectacular collection of vehicles from the SEMA Show. This year a panel of top automotive editors will select 10 deserving builders and their vehicles to appear center stage at SEMA Ignited and be featured in a nationally televised special that SEMA is sponsoring. The TV program will highlight the hot trends from the SEMA Show and feature the unique builds and the artistry of our Top Ten builders. The evening will culminate in awarding the “SEMA Battle of the Builders” trophy to this year’s top vehicle and its builder. SEMA is producing the SEMA Ignited event to help stoke consumer awareness and excitement by highlighting the impressive vehicles, products

and personalities gathered in Las Vegas for the SEMA Show. As such, participation in the SEMA Battle of the Builders is open to the full range of builders and vehicles including truck, hot rod, street rod, off-road, motorsports, sport compacts, luxury exotics, and the like. Builders interested in participating in the event and TV production should complete an online form. If selected, the builders and vehicles will be featured at the SEMA Show and SEMA Ignited event (deadline for consideration is Friday, September 19). Selected builders must also agree to make their shop available for video work leading up to the event. The Friday night SEMA Ignited event will take place at one of the newest landmarks in the Las Vegas— the High Roller observation wheel at the LINQ entertainment district. For more information, e-mail: info@semaignited.com.

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ASA Confirms Detroit as Location and Dates for Next NACE-CARS Expo The Automotive Service Association (ASA) announced that NACE | CARS 2015 will again be held in The Motor City, July 23–25 by ‘popular demand.’ The ASA Board and management considered feedback from attendees, exhibitors, and other industry constituents. Dan Risley, ASA Executive Director, stated “The response for Detroit was overwhelmingly positive. Many said this was the best event in recent memory. Attendees were pleased with the education and training, and numerous exhibitors made significant sales on the show floor. There were many requests for the exhibition to continue through Saturday, and we will incorporate that for 2015.” Partnering with industry organizations and associations is key to the success of Industry Week, and that format will continue. I-CAR, CIC, CCIF, MERA, NABC, and CREF have already committed to Detroit next year. I-CAR will again host the center stage in the exhibit hall to provide education and awareness on advancing vehicle technologies and related repair and industry trends, maintain a booth for membership, provide live technical demonstrations in the demo zone,

and offer add-on I-CAR training sessions in classrooms. John VanAlstyne, I-CAR CEO & President, said “We are very pleased with the results of Industry Week this year. Attendance was up significantly on the NACE floor and the I-CAR Conference was a great success. We are committed to NACE and will continue with a similar footprint in 2015. We also plan to continue holding the I-CAR Conference in conjunction with Industry Week moving forward, shifting to a biennial cadence, so make plans to attend our next Conference in 2016.” ● CIC will once again host the summer quarterly meeting during Industry Week following a successful meeting this past July in Detroit. ● CREF will hold its annual golf fundraising event during the week. ● After drawing a larger-than-expected Canadian contingency, and with close proximity to the growing Canadian market, CCIF will be back once again with their education program, sessions, and a keynote speaker. ● MERA will host a series of sessions again in 2015. ● NABC will produce the Recycled Rides program on the exhibit floor.

Other organizations are currently evaluating co-located meetings and announcements are forthcoming. “On behalf of the ASA members, the board of directors, and our team, we are pleased to be working with ICAR, CIC, CRES, CCIF, MERA, NABC, and others for the benefit of the automotive repair industry,” said Darrell Amberson, ASA Chairman. “With our organizations working together we can provide the most current education and training in the market. We look forward to seeing everyone in Detroit the week of July 20, 2015.”

GM Posts Best July Sales Since 2007, Toyota Also Up

General Motors has posted its best July sales since 2007. GM sold 256,160 cars in July, a 9% uptick from July 2013. Retail sales were only up 4%, though—perhaps a sign that those who buy cars for fleets have more faith in GM than individual customers. This is the ninth straight month of year-overyear sales growth for GM, and an improvement from June when yearly growth was at around 1%. Toyota said it sold 215,802 cars last month, an 11.6% increase over a year ago.

Service King Team Member Wins Jeff Silver Award

The Inter-Industry Conference on Auto Collision Repair (I-CAR) named Service King teammate Dustin Harrier winner of the prestigious Jeff Silver Award for his outstanding commitment to the industry. Harrier, Service King’s Western U.S. Quality Control Manager and an I-CAR instructor, received the award July 30 at the International Autobody Congress and Exposition in Detroit. The Jeff Silver Award is presented annually to an I-CAR Platinum individual who demonstrates passion for training, professional growth and improvement of the industry’s image. “Dustin is a multi-talented ICAR instructor, and Service King is proud to have a teammate that shows so much dedication to his students and the collision repair industry,” said John Halbrook, Service King Project Specialist. “His instruction has led to thousands of high quality collision repairs for Service King’s customers.”

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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 13


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

Midwest Associations

AASP-MN President Jerald Stiele has Lifetime of Repair Experience with Ed Attanasio

Many body shop owners are content with making a decent profit, while others are willing to work toward bettering the collision industry in their state. Jerald Stiele, president of the AASP-MN and the owner of Hopkins Auto Body in Hopkins, MN, fits into the latter category. Stiele, 40, is a third-generation body shop owner, who takes pride in offering full and mechanical collision repair. Hopkins Auto Body was established in 1963 by Stiele’s grandfather, Floyd Stiele. Today, Stiele co-owns and manages the shop with his uncle, Dale Stiele. “When I first came onboard fulltime, I was working as an estimator,” Stiele said. “Prior to that I worked on and off through the summers in high school and in college, cleaning the shop floor and masking cars and whatever other entry level task that needed to be done.” Initially, Stiele wasn’t expecting his path to lead to collision repair. “After graduating from North Dakota State University with a degree in Economics, I did not go into the business, because at that time, the shop consisted of a six-car garage and there wasn’t room for me,” he said. “Today, we’re working out of a 26,000 squarefoot shop that fixes approximately 150 vehicles every month and employs 16 people. I run the front office and Dale manages the production/shop floor and we work very well together. But, getting into this industry wasn’t a slam dunk at the beginning.” Stiele is proud of what AASP-MN has achieved. “In Minnesota, we have a really strong association and we’re proud of the fact,” he said. “Whenever I travel to out-of-state conferences, people from other state organizations tell us that we’re a really well-respected group. We have a strong association that starts with Executive Director Judell Anderson and a board that works really well together. Judell’s assistant Jody Pillsbury runs the office really well and Tom Kluver is having great success as our new recruiter. We’ve got a great team here and that’s why we’ve been so successful.” AASP-MN’s membership consists of 697 shops, both mechanical and collision. We asked Stiele, “what

are some of your major concerns with the future of the organization?” “From a body shop’s perspective, we want to retain the control of our businesses and our procedures,” he said. “The way we manage and order our parts really concerns us and I know it’s the same thing across the whole country. DRPs are a reality in this industry and some of them can be great partnerships, but we don’t want to compromise our work as a result. AASPMN’s main concern is that we don’t want to lose control when it comes to the parts and part venders that we use on our repairs. We’re being asked to handle more and more of the administrative work as it gets handed off to us by the insurance companies, so we constantly have to be adjusting to that. It now takes us additional front office staff to fix these vehicles, which of course means that we’re making less profit on these cars. Yes, we’re still profitable with our DRPs, but we’re starting to see that our DRPS are less profitable and we’re obviously concerned about that.” Stiele believes that in some cases, aftermarket parts are suitable. “New, OEM is not the only way to go in every situation, in my opinion,” he said. “There are situations that call for the use of aftermarket or LKQ parts. As shop owners, we know when it’s right to use them. The point is—we want to make the determination and we don’t want to be forced or coerced into making those decisions, because they can impact the quality of our work and cycle time. “Minnesota is one of the few states where we have aftermarket parts legislation on the books,” Stiele said. “If the owner does not want aftermarket parts they can specify that. So it’s a matter of who talked to the customer first. A lot of times it’s the insurance company that will talk to them and say ‘Hey--there are going to be aftermarket parts incorporated into the repair of your car.’ They don’t ask, they tell them. It will fix it back to pre-accident condition with a lifetime guarantee and you know so it’s up to them to say yes sometimes that’s the case. In some cases, the aftermarket parts don’t fit as well, but in other cases, they work just fine.” “Many shops are torn about the whole topic of steering, but in a perfect

14 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

world it would be better to not exist altogether,” Stiele said. “If an insurance company is steering business away from another shop, that’s bad obviously. But, if they’re recommending one shop over another, that’s called a DRP. Collectively at the AASP-MN, we agree that from the perspective of the entire industry, we’re better off without steering. We would rather compete with each other fairly and gain our business through marketing and doing a good job, by focusing on things like quality and customer service. We have anti-steering laws in Minnesota, which may lead to less steering--at least that’s the intention.” The majority of shop owners have a love/hate relationship with the DRP concept, and Stiele is no exception. “The DRP relationships are the biggest change in this industry, no doubt. Many body shops rely exclusively on their DRPs. Our DRPs make up is around 40% of our total business.

We have three main relationships with larger insurance companies, but handle a lot of customers and insurance companies outside of the DRP arrangement.” It’s hard to say what the future holds, but Stiele is excited to be working in today’s collision industry in Minnesota. “We really enjoy using technology to do a better job, whether we’re using tablets or smart phones to capture data from vehicles and writing the estimates. We’re working on being aluminum-ready and spending the money and time needed to get onboard in that regard. It’s a significant investment as all of the necessary equipment isn’t cheap. It’s important for us to be ready as the manufacturers start increasing the use different types of metals and materials. I can’t predict how many or when the new F-150s will start showing up, but when they do I want our shop to be trained and ready.”

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Midwest Associations

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

AASP-MN on Track to Break Membership Record with Chasidy Rae Sisk

The Alliance of Automotive Service Providers of Minnesota (AASP-MN) is on track to break its all-time high membership record this year. Currently, the association consists of 717 members, including collision repair facilities, mechanical shops and industry suppliers. Though AASP-MN primarily serves the entire state of MN, Executive Director Judell Anderson explains that they also “offer an out-of-state membership at a reduced rate and have members in communities bordering MN in Wisconsin and South Dakota.” As an association comprised of independently-owned automotive service businesses and industry suppliers, AASP-MN’s mission is to be “dedicated to improving the state’s automotive service industry and the success of its members.” Benefits of membership in the association include access to education and training, group buying programs, legislative

representation, industry information updates, and networking opportunities. “Membership literally does pay… it’s quite common for members who utilize just one of our group buying programs—like uniforms or insurance—to save many times more than the cost of their membership dues,” Anderson says. Despite the significant value the association offers to members, Anderson has many short-term goals for enhancing its offerings, including to provide more opportunities for peerto-peer information exchange and networking among members, refreshing the association’s website to make it easier for members to find and use the information they need, and working to expand the workforce talent pool available to the automotive service industry. Additionally, AASP-MN hopes to pass legislation which would prohibit insurer mandates and steering of estimates.

16 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

In discussing long-term initiatives, Anderson explains, “the four key pillars of AASP-MN are education and training, legislative advocacy and representation, group buying, information and networking. Our longterm goal is to continue to deliver innovative, relevant and valuable benefits to members in each of those areas. We want to maintain a professional, dynamic and financiallysound organization that is recognized as one of the best in the automotive service industry.” Over the years, Anderson has noticed a lot of consistency in the biggest challenges facing the industry. They include keeping up with rapidly-changing technology, the availability of qualified technicians, and increasing insurer control. “Through its various programs and initiatives, including training opportunities, our scholarship program and legislative efforts, AASP-

MN is working to address each of these challenges,” Anderson says. As part of these efforts, the association has organized several training programs this fall, including OSHA compliance workshops and seminars in gasoline direct injection and variable cam timing. AASP-MN will also hold a meeting for collision members to discuss the preparations necessary to repair aluminum vehicles. The association has also begun planning for the 2015 legislative session and annual meeting and convention. AASP-MN also has a unique program for its mechanical members called “Get to Know Your Neighborhood Auto Repair Pro™.” Anderson describes this program as “a marketing campaign that promotes the benefits of doing business with independentlyowned shops. Currently, commercials are running on-air and streaming on two popular radio stations in the Twin Cities area.”


Like many associations, AASPMN is faced with the challenge of identifying and preparing the next generation of volunteer leaders. Anderson notes, “the association depends on input and direction from members of the industry, and it is that involvement that drives what the association does and how we go about doing it. No ‘good ole boys’ club here; we enforce term limits and work to ensure that we have an ongoing influx of new people and new ideas.” During the 2014 Legislative Session, AASP-MN introduced legislation which would prohibit insurers from requiring insureds to go to a particular shop for an estimate or requiring shops to utilize specific vendors, distributors, manufacturers, suppliers, business platforms or internal processes to carry out vehicle repairs. Due to the time constraints of a short legislative session, the bill did not advance, but Anderson believes the groundwork has been adequately laid to try again in 2015. This proposed legislation is important, Anderson says, because “it would restore the balance of power in the relationship between repairers and

insurers. Insurer mandates significantly diminish shop owners’ control over how they run their business. Insurers too often abuse their power and interfere in the business practices and relationships of the shop. If we’re successful, collision repairers will once again have the ability to determine repair decisions, vendor selections and business practices based on what’s best for their customers and their business. Consumers will benefit by being assured that their shop of choice has the discretion to safely and properly repair the vehicle to its preaccident condition without being unduly pressured by insurers to cut corners and control costs.” Of course, like any collision repair association, AASP-MN faces certain challenges when attempting to pass legislation, namely in terms of “the human and financial resources of the insurance industry.” Anderson elaborates, “when AASP-MN goes to the Capitol, we’re up against not only lobbyists from the insurer association, but lobbyists employed by a dozen individual insurers as well. But we have the upper-hand when it comes to grassroots participation. AASP-MN members are local, main street busi-

nesses who oftentimes have personal relationships with the legislators in their communities. That is what really makes a difference when we’re working to advance legislation.” AASP-MN also takes a stance on national legislative matters. The association supports Right to Repair because “consumers should ultimately have the choice to decide where their vehicle is repaired. The ability of independent shops to conduct those repairs is contingent upon having access to the same technical information, communications, tools and training available to new car dealerships,” Anderson states. Although the association has not taken an official stance on the PARTS Act, Anderson notes that “generally speaking, AASP-MN members believe that OEM, recycled and aftermarket parts all have their specific applications and that shops are best positioned to select the appropriate part for the particular vehicle being repaired.” AASP-MN is opposed to insurer-mandated parts procurements systems, such as PartsTrader, which Anderson refers to as “perhaps the most egregious example of an insurer

mandate, to date. It unduly interferes in the business relationship between shops and their suppliers and has failed to demonstrate any benefit or value to the parts procurement and repair process.” The association, known as AASP-MN since 1999, was originally established as the Independent Garage Owners Association (IGOA) in 1955 and was later a part of the Automotive Service Council (ASC) and the Automotive Service Association (ASA) before settling on its affiliation with AASP. AASP-MN 1970 Oakcrest Ave, Suite 102 Roseville, MN 55113 612-623-1110 www.aaspmn.org

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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

Lean Operations

Better Blueprinting, Part 2: How to Set Up a Blueprinting Area with David Luehr

In last month’s Better Blueprinting Part One, we discussed reasons that shops have failed at Blueprinting. This month we will focus on performing Blueprinting, and how it can greatly benefit your collision repair shop.

Blueprint Admin Staffing Over the years I tried numerous variations and combinations of people to staff a Blueprinting program. All of them worked better than no Blueprinting program, but some combinations definitely worked better than others. Much of what influences your Blueprint staff is simply the size and volume of your shop. Many clients run smaller shops where people wear many hats. In a small shop it is not uncommon for the manager to also be the estimator, the parts guys and the Blueprint guy. It is pretty easy to determine how to staff a really small shop, but what about a shop that is a little bigger? I recently worked with a

client that had two estimators, one of them liked being in the shop and the second one was better at dealing with customers. So we moved one of them into the shop to be the Blueprint Analyst, and the other efficiently handled the entire volume of customers as the Customer Service Manager. You may need to experiment with different staffing combinations to make it work for your unique needs.

Blueprint Technician Staffing The best Blueprint team I put together had an older and very knowledgeable technician working alongside an apprentice disassembly technician. This was a high volume shop and the team worked in a dedicated Blueprint workspace with a Blueprint analyst who never left his station. Many advanced shops have taken advantage of the benefits that creating a team system brings. It is still possible to use a dedicated Blueprint area with individual flat rate

techs who are not paid as a team, but there is a lot of movement of tools and people. Some shops using rolling computer carts are finding some success performing the Blueprinting in the technician’s stalls. It works, but I still prefer a dedicated area. Again, there are many ways to create a Blueprint staff and each shop is going to be a little different than the next based on skill level, shop size, personalities, etc.

Space Don’t fall in the trap of believing that your shop may be too small to be successful with Blueprinting. I have analyzed damage in space from 2,000 sq. ft. to over 60,000 sq. ft. and the practical application is still the same.

1. Disassemble and analyze the damage. 2. Move the car until enough parts arrive to continuously work on it. (Notice I said continuously.)

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● Laptop or dedicated computer in the Blueprint area ● If possible, keep the area accessible for tow trucks ● Keep fasteners and fluids in the Blueprint area

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6. Small mirror 7. Flash light/drop light 8. Mobile Estimating system 9. Creeper 10. Collision estimating system 11. Access to OEM parts schematics 12. Colored markers 13. Heavy Gloves 14. Safety Glasses

Recommended Tools In addition to the usual hand tools, the following items are needed to complete the inspection procedure: 1. Parts cart 2. Clipboard 3. Tape measure 4. Tram gauge 5. Tread depth gauge

Better Blueprinting Techniques Step 1. Vehicle Check-in Even though the process of performing a “check-in” with the customer during vehicle drop-off may not be considered a part of the Blueprint process, the information obtained is absolutely vital to the Blueprint. With the customer present, this process involves walking around the vehicle and

communicating and documenting the following. It is a great way of communicating the customer’s concerns indirectly to the Blueprint Analyst to ensure things don’t get missed! ● What damage is a result of the accident? ● Unrelated prior damage? ● Upsell opportunities? ● MILs such as check engine warning lamps on dash – prior or related? ● Anything unusual about the vehicle’s performance mechanically? ● Touch-up paint and other “freebie” promises

Step 2. Identify Mechanical Issues Identifying mechanical issues prior to disassembling and disabling a damaged vehicle is always preferable. (But not always possible.) Everyone can relate to the delays that are caused when these problems are discovered on the day the car was supposedly going to be ready! In a collision, mechanical issues could involve many things; however the most common are suspension, air conditioning /cooling system, wiring and supplemental restraint systems. I recommend that first you address these items by: ● Review the customer concerns on the check-in sheet ● Test driving ● Performing suspension alignment prior to disassembly (if possible) ● Using a scan tool to help diagnose trouble codes (check engine lights, etc.) ● Always ask the customer how many passengers were in the car, especially if restraint systems were deployed. Check those seatbelts! ● Check interior electronics, heat/air, etc. ● Check fluid levels Step 3. Communication between Estimator and Technician How many times have you seen a techSee Better Blueprinting, Page 32

www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 19


Panel to Discuss Aftermarket Access to OEM Education During NASTF Meeting Nov. 5

A three-person panel will discuss key issues in a one-hour session, Aftermarket Access to OEM Education Resources, during the NASTF Fall 2014 General Meeting, Wednesday, Nov. 5 at the Sands Expo Center/Venetian Hotel in Las Vegas. Jill Saunders of Toyota, Rob Morrell of WORLDPAC and Bill Moss of EuroService Automotive will engage with panel moderator Skip Potter of NASTF, revealing their expert insights on the availability, use and plans of OEM technical training resources for the independent aftermarket. Panelists will discuss key issues concerning OEM education resources, including the legal requirements on au-

tomakers, why automakers may want to provide training voluntarily, the difference between OEM dealer training and what the aftermarket may need, navigating OEM websites to find training, OEM licensing of resources to independent trainers and more. Jill Saunders is a Product Engineer for Toyota Motor Sales, USA, in the Product Quality and Service Support Division. She is responsible for the development and support of the Techstream Diagnostic Scantool for all of North America and the US Territories. Rob Morrell has been Director of Training for WORLDPAC since 2001. Previously, he had been lead technician and shop foreman in a 115-bay, San Fran-

cisco area BMW-Porsche dealership. Morrell currently serves as the Independent Co-chair for the NASTF Education Committee. Bill Moss owns a four-bay service shop, EuroService Automotive in VA, which he purchased in 2009. Moss is an ASE Master, L-1 Technician and serves on the Boards of Directors for both NASTF and the Automotive Service Association. Skip Potter is the Executive Director of NASTF. “The OEMs provide a great deal of training resources to the techs in their dealer networks,” said NASTF Board Chair Allen Pennebaker. “While the resources available from some OEMs to independents is often the same and

those from others may not be as extensive, much of what is being provided is not being consumed. This panel should go a long way to fixing that disconnect and helping all to understand what is available and what is not, how to access those resources and what to do if they cannot.” The NASTF meeting begins at 1pm (PT) in Casanova 605 during the Automotive Aftermarket Industry Week. No registration is necessary. Information can be found at www.nastf.org/generalmeetings/. Seating is limited but the full event and panel discussion will be broadcast on the NASTF website, www.nastf.org, and recorded on the NASTF YouTube Channel, www.youtube.com/nastfdotorg.

PA Shop Owner Held Meeting to Discuss How Insurance is Negatively Impacting Industry

Ron Perretta, owner of Professionals Auto Body in central PA (see cover story), held a meeting for body shop owners and employees, as well as consumers and vendors, who believe insurance companies are negatively impacting the industry. The meeting was held Sept. 20, at the Holiday Inn Fort Washington PA. “...this is not about DRP or Non-DRP. This is about independence and charging what's fairly owed to our shops,”

said Perretta. He encouraged industry workers and patrons to come out and show their support. “This gathering is to discuss what the solutions are to an ever growing problem,” said Perretta. “You need to get off the sidelines and get involved. We are very powerful when we join together.” The following was addressed: ● legal actions by repairers in the states of Mississippi, Florida, Tennessee, Indiana, Utah and Louisiana, plus addi-

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● the right of consumers to have repairs done by the body shop they choose; ● the right of consumers to use whichever rental car company they choose. “We cannot continue to have the insurance industry control our every move, even to the point that shops and vendors who were frightened to come out on Sept. 20,” said Perretta. For more information, contact Ron Perretta at 814-931-7669.

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Herkules to Host NASCAR Driver Brendan Gaughan During SEMA Show Herkules Equipment Corporation will be hosting NASCAR Driver Brendan Gaughan at the 2014 SEMA Show, being held in Las Vegas, Nevada November 4-7. Gaughan will be

NASCAR Driver Brendan Gaughan will be signing autographs on Nov. 4 & 5 at the Herkules booth during the SEMA Show in Las Vegas, NV

signing autographs and chatting with fans on Tuesday and Wednesday, November 4 and 5, from 1 to 3 pm, in

the Herkules booth #11139. Brendan Gaughan has been a NASCAR Driver since 1997 with his debut in the Camping World Truck Series and winning this race in 2000. A Georgetown University graduate and family man, he holds 17 career wins and 83 top-five finishes throughout all of the NASCAR Series races. His latest win was in June 2014 at the NASCAR Nationwide Series Gardner Denver 200 race. His website is: www.brendangaughan.com. Herkules Equipment Corporation, established in 1984, is a leading manufacturer for the Automotive Paint & Body Repair industry, having designed, manufactured and patented the first Paint Gun Washer. They have been manufacturing quality vehicle lifts and scissor lift tables for close to 30 years, providing many industries with ergonomic solutions for countless applications. Herkules also supplies Sparkle Clean, Air Jacks, Carts & Stands, and Crushing Equipment. For more product information, please contact Herkules at 800-4444351, or at info@herkules.us or visit their website at: www.herkules.us.

PA Insurance Company Vindicated in YouTube Bugatti Crash Case

Philadelphia Insurance Companies said it has been vindicated in its investigation and denial of a fraudulent claim filed by an East Texas motorist for the 2009 crash of his Bugatti Veryon, following his guilty plea in August in the case United States of America v. Andy Lee House, as reported by Insurance Journal. The Bala Cynwyd, Pennsylvania-based insurer said it committed extensive resources over the past four years to fight the $2.2 million fraudulent claim filed by Andy Lee House of Lufkin, Texas, for the intentional destruction of the luxury sport car. The 2009 crash, which was captured on video by a passing motorist and viewed more than five million times on YouTube, drew national attention. Philadelphia Insurance said its claims investigators had suspected fraud from the beginning and steadfastly denied the claim. Authorities said House initially claimed that he was reaching for his cell phone when the car swerved into water near Galveston, Texas. The salt water flooded the engine, ruining the Bugatti. Philadelphia Insurance said it commenced its investigation, secured witness statements, and received an

anonymous call regarding the scheme developed by House to destroy the vehicle in exchange for the insurance proceeds. In lieu of settling the claim, Philadelphia Insurance filed suit in 2010 in the U.S. District Court for the Southern District of Texas seeking to not only rescind the insurance policy issued to House, but also sought damages for breach of the insurance contract and fraud. The insurer said the FBI ultimately got involved and filed a federal lawsuit against House, resulting in his guilty plea on August 26 to wire fraud. House faces up to 20 years in federal prison and the U.S. Attorney in the case has recommended that he pay restitution to Philadelphia Insurance. “We owe a great deal of thanks to the witnesses who provided video and statements, which allowed the truth to come to light, as well as to federal and local enforcement for their investigations,” said Bill Benecke, executive vice president and chief claims officer at Philadelphia Insurance. “Fraudulent claims adversely impact all of our customers and it is our fiduciary responsibility as an insurance carrier to protect our policyholders.”

www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 21


Over $500,000 in Support to Makeover School Grant Applications Announced During SEMA

Collision industry members are invited to join the Collision Repair Education Foundation during their industry reception the evening of Tuesday, November 4 from 8:30 p.m.-10 p.m. (Local Time) in Ballroom B at the Westgate Las Vegas Resort & Casino (formerly the Las Vegas Hotel) during SEMA 2014. During the reception, attendees will hear about the organization’s efforts to support high school and post-secondary collision students, 2014 donors/supporters will be highlighted, and over $500,000 in support will be announced for the 2014 Ultimate Collision Education Makeover school grant applicants. Industry members will also have an op-

portunity to meet attending collision school instructors and students. Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “Over 100 collision school programs from over 30 states applied to have their $50,000 wish lists fulfilled in 2014 and through the industry’s continued generosity, we will be able to announce over $500,000 in support to the Makeover applicant schools during our annual SEMA reception. We would like to invite all industry professionals to join in recognizing those who are making this support possible and also introduce attendees to the instructors and students that will explain how much of a differ-

AASP–MN Announces Fall Seminars The Alliance of Automotive Service Providers of Minnesota (AASP-MN) will host, “Gasoline Direct Injection and GM GDI Diagnostics,” Wednesday, Oct. 8, and “Variable Cam Timing,” Thursday, Oct. 9. The seminars, presented by John Thornton, will be held from 4-8 p.m. at EP Auto, Tire & Glass, in Eden Prairie, MN. The Gasoline Direct Injection & GM GDI Diagnostics class will focus on GDI operation, theory, diagnostics and service procedures. The discussion will be applicable to most manufacturers

using GDI today. GM has used GDI since 2007. This high-pressure fuel system is found on most late-model GM vehicles. A strong emphasis will be placed on testing techniques using both the GM scan tool (GDS2) and a lab scope. Additionally, there will be case study analysis of failed components. The Variable Cam Timing class will be a case study-based class. Specific manufacturers’ strategies and testing techniques will be discussed using broken vehicles with a scan tool and

22 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

ence this support means to ensuring graduating students have a quality technical education.” The goal of the Ultimate Collision Education Makeover grant is to honor a school that has been doing an outstanding job in educating students in collision repair, but needs some financial assistance to improve their program’s teaching materials and equipment. With strained school budgets, the Education Foundation and industry supporters have the opportunity to bridge the program’s financial gap and to make a difference in the lives of the students studying collision repair. As part of the Makeover grant ap-

plication, schools provide an itemized wish list which can include any tools, supplies, and equipment that are needed by the collision program. Additional details of the event will be made available as the date approaches; however, industry members are asked to RSVP for the reception by emailing attendee information to info@ed-foundation.org. Questions regarding the reception and/or the Education Foundation’s efforts to support the future of the collision industry can be directed to Director of Development, Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org or 847.463.5244.

lab scope. Also on tap in October are a BS Session for collision shops and Mech XChange session for mechanical shops. The BS Session will focus on preparing for aluminum repair and the Mech XChange roundtables will discuss the various ways of handling compensation for employee training and the pros and cons of extended shop hours. More details about these programs are available on the AASP-MN website, www.aaspmn.org. On Nov. 12 and 13, AASP-MN

will host “Preparing for an OSHA Inspection,” from 11:30 a.m. –1:30 p.m., at its offices in Roseville. The workshops, presented by Carol Keyes and Janet Keyes, of Complete Health, Environmental & Safety Services (CHESS), will cover the most frequently-cited and most commonly-found OSHA violations in automotive repair facilities. For additional information contact the AASP-MN office at (612) 623-1110 or 800-852-9071 or visit: www.aaspmn.org.


ABRA Auto Body Acquires USA Collision Centers

ABRA Auto Body & Glass, a leading national damaged vehicle repair company, announced it had acquired USA Collision Centers in Harrison, West Chester, and Cincinnati, Ohio. The news follows ABRA’s initial entry into the state in June 2014. Terms of the transaction were not disclosed. The recent growth in Ohio is part of the company’s strategy to increase its national footprint. ABRA is one of the collision industry’s largest multi shop repair operators in the country. ABRA’s portfolio now stands at 243 repair centers in 19 states. “The acquisition of USA Collision Centers represents a fantastic opportunity to expand our presence in Ohio and continue building on the extraordinary success we’ve achieved in the region,” said Duane Rouse, ABRA’s president and chief executive officer.” Joseph Sanfillipo, Jr., founder and co-owner of USA Collision Centers, said, “I have complete confidence ABRA will continue the legacy my family and I have built over the years. There is no doubt our employees will flourish and our customers will receive the highest quality repairs and superior service they’ve come to expect.”

Bus Inspections Conducted by MI Police

Michigan State Police motor carrier officers joined the Federal Motor Carrier Safety Administration for the National Motorcoach Safety Initiative. The nationwide effort aimed at ensuring passenger bus safety and compliance took place until Sept. 8. During the effort, Michigan State Police motor carrier officers conducted bus inspections. Officers checked overall vehicle maintenance, including brakes, tires and exhaust systems.

MI Ban on Non-OEM System

SEMA-opposed legislation to prohibit motor-vehicle repair facilities from modifying an exhaust system to “produce noise in excess of OEM stock decibel levels” has been introduced in Michigan. Under the bill, a person who violates this prohibition would be forced to pay a fine of $10,000 for each violation. Under Michigan law, a motorvehicle repair facility means “a place of business which engages in the business of performing or employing persons who perform maintenance, diagnosis, vehicle body work or repair service on a motor vehicle for compensation.” For information, visit the SEMA Action Network website or contact Steve McDonald at stevem@sema.org.

Collision 34 in MI Expands to New Building in New Location

Collision 34—located at the intersection of Highway 34 and 48 under the busy lights of Osage, MI, for the past two years, has a new building and a new location. Owned and founded by Mark Larson, the auto body and mechanic shop outgrew its old location and is now settling in with a larger building at 45980 Highway 34, formerly Lymburner Awning. “We had to expand. The location we had been at was just too small,” said Larson.

UFG’s Dividend for AASP-IL Insurance Program

The Board of Directors of United Fire Group (UFG), an AASPI endorsed provider of insurance coverage for collision and mechanical shops, has approved the payment of an eight percent all-eligible-lines dividend on earned premium for members in the Alliance of Automotive Service Providers Illinois-UFG insurance program for calendar year 2013. The program became effective February 1, 2013, and finished the year with $649,000 written premium and a 32 percent loss ratio.

Suburban Collection Adds Two New MI Repair Shops

The Suburban Collection automotive group has rebranded two major automotive repair facilities in Troy and Farmington Hills, Michigan under the Suburban Collision Center name. Suburban Collision Center of Troy, 1759 Maplelawn Dr., and Suburban Collision Center of Farmington Hills, 34600 Grand River Ave., had previously been operated under the Fischer Body Refinishing name. “We are extremely proud of our outstanding work accomplished year after year by a great team,” said David T. Fischer, chairman and CEO, The Suburban Collection. “The name change will increase the awareness that these two facilities will continue to be key components of The Suburban Collection, offering industry-leading body repair and refinishing services for our customers.” Suburban Collision Centers are also located in numerous other Michigan locations, including Sterling Heights, Ferndale, Ann Arbor, Waterford Hills, Garden City, Plymouth, and Lansing.

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K & M Collision Sends Second Version of ‘Open Letter’ Video to NC Attorney General K & M Collision, a NC shop that is known for strong advocacy (see previous story this page and search autobodynews.com), posted a consumer-

ferral program or preferred list, we won’t warranty or guarantee the repair’. “This statement isn’t just misleading, It’s completely false. The insurance company does not, has not and will not warranty the repair even if your car is repaired at their direct repair facility. “Let’s say you do follow their recommendation, and take your car to one of their shops. If there are problems with that repair, the shop itMeredith Bradshaw narrates the second version of the self is liable, in exactly the open letter video. Previous videos are viewable online same way that K&M is liable oriented video on YouTube that it pro- for any of the repairs that we perform. duced in support of Louisiana Attor“The shop you choose, whether it ney General Buddy Caldwell’s action be an insurance preferred shop or an against State Farm. independent shop, is solely responsible “These kinds of unfair trade pracfor the warranty on the repairs to your tices aren’t just a problem in Louisiana,” vehicle. owner Meredith Bradshaw states in “So why do insurance companies the video. “They pose a threat to conmake this misleading statement to their sumers here in North Carolina and policyholders? It’s just another scare throughout the United States.” tactic. The text of a related video states “In reality, the insurance com“After an accident, one of the most pany itself doesn’t provide any guarcommon things you’ll hear from an antee. In fact, with the pressure they insurance company is ‘if you take place on their shops to turn out high your car to a shop that’s not on our re- volume, they create an environment

26 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

that’s more likely to result in bad repairs. “But they don’t have to worry about that. Because ultimately, the shop is responsible. “At K&M Collision we don’t participate in referral networks. Our only priority is to serve our customers by fixing their car the right way. You can rest assured that any repair that comes through our doors is guaranteed for life.” A previous version of the video was suspended from YouTube because of a copyright complaint from the Insurance Institute for Highway Safety (IIHS) due to its use of one of the organization’s crash test clips. K & M Vice President of Operations Michael Bradshaw alleges State Farm persuaded IIHS to file the complaint. “The basis of their complaint was that we used a few-second clip of a crash test to give our viewers a sense of the way a ‘crash management system’ works,” says Bradshaw. “We found this clip on YouTube, created by what we thought was an independent, nonprofit organization dedicated to consumer safety. We’re also certain that our brief, educational use of this clip constitutes ‘Fair Use.’ However,

we didn’t notice that this ‘independent, nonprofit organization’ was founded by State Farm.” Bradshaw says K & M has countered the copyright claim through YouTube and is awaiting word on the outcome. He says the video has gotten the attention of the North Carolina Attorney General’s office, and they have even taken an interest in the IIHS’s effort to remove K & M’s video from YouTube. “We will be documenting State Farm’s efforts to get our content removed from the Internet and will continue to fight back and notify the industry press about their actions,” Bradshaw says. “People should know that the IIHS, supposedly a nonprofit organization dedicated to highway safety, is nothing more than a puppet of State Farm, an organization responsible for putting unsafe cars on the road.” The new version of the video can be viewed directly at http://kandmcollision.com/open-letter/?utm _source=YouTube&utm_medium=Vi deo&utm_campaign=2ndVersionof AGLetter A link can also be viewed at: www.autobodynews.com.


NY Shop Owner’s Forgotten Lottery Ticket is a Nearly-Lost $2.9 Million Winner by Victoria Antonelli, Online Editor

A missed step in Jerry Ritieni’s routine on July 19 almost cost him close to $3 million. When the Extreme Auto Body owner stopped at Cumberland Farms in Syosset, NY, to buy $10 in Quick Pic lottery tickets, he placed the winning numbers in his center console, instead of their usual spot—on his visor mirror. Ritieni found the tickets a month and a half later while searching for his Vermont house keys. After entering the numbers online at his shop, he became a millionaire in the blink of an eye. “I’m a joking kinda guy, so my son, friends and employees didn’t believe

think he’s serious, he hasn’t left the shop during business hours in 22 years, and

he’s been gone for almost an hour!’” Ritieni, 48, says he will continue to work. “The money is life-easing, not life-changing,” Ritieni explains. “I never had a retirement plan, which was always a concern of mine, so it’s nice to have that taken care of.” Ritieni’s 20-year-old daughter and 17-year-old son are his priorities, specifically their college tuition. He also bought the building next door to his shop for expansion purposes. “I drove into a Maserati dealership next door to the lottery office while my son was in the car, just to mess with him,” said Ritieni. Ritieni said he’s happy with the way the com-

munity responded to his win. “I live by my father’s words: Be honest, be fair, and do the right thing and you’ll be fine,” said Ritieni. “A lot of the locals said I won because of good karma and I believe that to be true.” Ritieni said he is not affiliated with any insurance companies or DRPs, and that the customer is the priority. “Everybody wants to make a living, but money is not my driving factor,” said Ritieni. “I don’t believe in taking advantage of people. At my shop, everybody gets what they paid for, and everybody gets treated the same.” After a cash buyout and tax deductions, Ritieni collected $1.3 million.

“He thought it was one of his friends at first,” said Joe Sokolowski, the owner of the shop. Sokolowski said when the car started Harlack opened the door to stop the thief. A surveillance video, aired on WTAE Pittsburgh Action News 4, showed Harlack being dragged away by the car before hitting the side of a tow truck and falling to the ground, with a broken leg. The thief sped away, hitting eight cars and totaling the Subaru before running away.

Sokolowski said he wished that Harlack wouldn’t have tried to stop the thief. “I just hope he’s going to be okay,” said Sokolowski, who has worked with Harlack since the shop first opened and considers his colleague a close friend. Ultimate Auto Body specializes in complete collision repair and works on the police cars for the City of Pittsburgh Bureau of Police and the Mount Oliver Police Department. The auto body shop is continuing operations during this difficult time; however,

Sokolowski said it is frustrating as a small business to have Harlack in the hospital and the thief at large. Autobody News contacted the police department for an update and learned no arrests have been made. Ultimate Auto Body Shop is offering a $500 reward to identify the thief.

that I had won the lotto, until I sped out of the parking lot,” said the Massapequa local. “Kenny [an employee] said, ‘I

Extreme Auto Body owner Jerry Ritieni in front of his NY shop with the winning ticket (Photo courtesty of VICTORALCORN.COM)

Theft and Serious Injury at PA Auto Body Shop by Stacey Phillips, Assistant Editor

An attempted auto theft at a collision repair shop in Pittsburgh, PA on August 30 left the shop manager seriously injured in the hospital and nine cars damaged. Pittsburgh police are investigating the incident that took place at Ultimate Auto Body Shop, in business for more than 30 years. Mike Harlack, the manager, noticed someone getting into a new Subaru that had just been dropped off that morning and was ready to be put on the rack.

www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 27


O’Reilly Automotive Joins the CCC TRUE™ Parts Network

CCC Information Services announced that O’Reilly Automotive, Inc. has signed on to join the CCC TRUE™ Parts Network, an electronic automotive parts quoting and eProcurement network that connects auto parts suppliers with CCC’s expansive customer base of collision repairers. O’Reilly Automotive, Inc., one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the U.S., is the first mechanical parts supplier to join the CCC TRUE Parts Network, adding its vast mechanical and aftermarket inventory to the options collision repairers can view and purchase from within CCC ONE® Repair Workflow. “Reducing the time it takes to review and order parts is vital to the continued improvement and growth of the collision industry,” said Tony Bartholomew, Sr. VP of Professional Sales, O’Reilly Auto Parts. “Collision repairers now have the opportunity to pull inventory from over 4200 O’Reilly stores and 25 distribution centers from within the CCC ONE Workflow application. O’Reilly Auto Parts has a commitment to provide quality aftermarket parts and excellent customer service to the collision repair industry and this platform provides us with another avenue through which we can continue meeting this goal.” “O’Reilly Automotive is a national leader in the automotive aftermarket parts industry and we’re very excited to have them join the CCC TRUE Parts Network,” said David Boden, VP, CCC’s Parts Services Group. “The addition of O’Reilly marks our foray into mechanical parts and serves as the perfect complement to the dozens of other national, regional and local market suppliers we have in the network today. Our goal with the CCC TRUE Parts Network is to offer the collision repair industry choice and convenience when it comes to parts procurement and today marks another important step in that vision.” Participation in the CCC TRUE Parts Network is open to all parts suppliers. Parts suppliers interested in becoming part of the CCC TRUE Parts Network should visit: http://www.ccctrue.com. Integrated auto parts quoting, procurement and invoicing are available now, free of charge, to CCC ONE Repair Workflow customers.

MI’s No-Fault Car Insurance Under Fire

The Coalition Protecting Auto No-fault (C-PAN) is in the process of taking The Michigan Catastrophic Claims Association (MCCA) to the Supreme Court. The high costs of car insurance in Michigan sparked the lawsuit. The MCCA covers medical costs for serious accidents totalling more than $530,000 in damages. The association charges drivers $186 per car and is currently exempt from requests through the Freedom of Information Act or FOIA. C-PAN argues that the association should not be exempt and records should be opened up to public scrutiny. An Ingham County judge originally ruled in favor of C-PAN, ordering the MCCA to open up it's records to the public. However, the MCCA appealed that decision and a 3-judge appellate panel agreed that the association is, in fact, exempt from FOIA requests. The case is still underway.

Caliber Enters FL Market With Four New Stores

Caliber Collision Centers announced its expansion across the East Coast with the acquisition of three Universal Auto Body Centers in the Orlando, FL area along with Flagler Collision in Palm Coast. Caliber Collision’s new Florida locations opened for business Aug. 22 at 2024 Wellfleet Court in Orlando; 430 Kane Court in Oviedo; 17649 US Hwy 27 in Clermont; as well as 3 Market Place Court in Palm Coast. Caliber’s four new facilities are located throughout the greater Orlando market. “Today’s openings in Florida further enhance our ability to restore customers to the rhythm of their lives in the Eastern U.S., as we deliver on our commitment to expand customer convenience while providing industry-leading metrics in every market we serve,” said CEO Steve Grimshaw. “Our new Florida centers bring Caliber Collision’s total number of locations to 186 across the Caliber network as we continue to grow into the collision repair provider of choice in the nine states we now serve,” added Mark Sanders, President and COO.

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Mankato Free Press.com Posts “What’s What on Wrecked Windshields” in MN Q: The other day I was coming into town when I passed a construction company truck. When the truck passed my car, it threw a rock onto my car windshield and broke it. I followed the truck until it stopped, we got out and confronted the truck driver. He said: “It’s not my problem.” My question is: Why is that the farmers hauling grain and soybeans have to have the cargo covered and not construction companies? Stuff flies off the trucks and hits other vehicles. What are the requirements for trucks like this? I know I’m not the only one that this happens to. A: If a rock on the road was flung by a tire into your windshield, there’s no responsibility under the law for the owner of the tire to reimburse the owner of the windshield. But as to your question about stuff being hauled by a truck, Lt. Eric Roeske of the State Patrol pointed Ask Us Guy to Minnesota Statute 169.81, subdivision 5. As it turns out, the reader actually has it backward as to who has to cover their loads and who doesn’t. The statute states: “No vehicle shall be driven or moved on any highway unless such ve-

hicle is so constructed, loaded, or the load securely covered as to prevent any of its load from dropping, sifting, leaking, blowing, or otherwise escaping therefrom, except that sand may be dropped for the purpose of securing traction, or water or other substances may be sprinkled on a roadway in cleaning or maintaining such roadway.” Violating the subdivision is a misdemeanor. But then comes the exception to the rule. Ask Us Guy has noted before that Minnesota lawmakers from rural parts of the state have a long tradition of making sure that regulations don’t overly burden farmers, and that’s the case with this law as well. “This subdivision shall not apply to motor vehicles operated by a farmer or the farmer’s agent when transporting produce such as small grains, shelled corn, soybeans, or other farm produce of a size and density not likely to cause injury to persons or damage to property on escaping in small amounts from a vehicle,” the law states. “Violation of this subdivision by a vehicle that is carrying farm produce and that is not exempted by the preceding sentence is a petty misdemeanor.”

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Napa Body Shops Jolted After 6.0 Quake by Ed Attanasio

In most parts of the country, snow, tornadoes, floods and other severe weather can lead to an unexpected windfall for body shops. But most of California isn’t usually affected by dramatic seasonal weather. However, when an earthquake hits, like the one that shook Napa, CA, on August 24 at 3:20 a.m. and measuring at a 6.0 on the Richter scale, everyone, including body shops, are impacted. The quake’s epicenter was located approximately 3.7 miles northwest of American Canyon near the West Napa Fault beneath the Napa Valley Marina, just west of the Napa County Airport. The earthquake was the largest to hit the San Francisco Bay Area since the 1989 Loma Prieta earthquake 25 years earlier. Significant damage and several fires were reported in the southern Napa Valley area, and there was also damage in the nearby city of Vallejo, in Solano County. Napa, of course, is best known for its wine industry, and certainly wineries were damaged. So were distributors and retailers whose inven-

Most cars damaged by the Napa Earthquake needed just cosmetic work, but obviously some vehicle required much more. (Photo courtesy of Michael Smith)

tory was subject to breakage. Bistro Don Giovanni in Napa lost about a third of its wine and liquor inventory, worth $20,000 to $30,000, said Curtis Bradford, the restaurant’s manager. The quake could lead to economic losses of as much as $4 billion from wrecked wine stock and shuttered businesses that rely on

30 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

tourists, according to an estimate from Kinetic Analysis Corp. Brent Blackwood, the owner of Blackhawk Body Shop in Napa was obviously concerned about his shop when the earthquake hit, but once he realized that the damage was minimal, his focused shifted to repairing cars. “There was a little sheet rock damage and quite a bit of broken glass here at the shop. A few tool carts and a jack fell over, but other than that we were fine. It was just enough to make a big mess, that’s all.” Since the earthquake, Blackhawk Body Shop has been inundated with customers and business is up at least 40%, Blackwood explained. “On a normal day, we do 4–6 estimates, but since the earthquake, we’re doing 15 or more every day. It’s mostly PDR (Paintless Dent Removal) work, but in some cases if the paint was affected, we need to do more than just PDR. We knew that we would get a spike in business, so we came in the day after the shaker and made sure we’d be prepared. We have a PDR guy that we work with regularly and he’s normally here once a week, but now he’s been

down here almost every day.” A second-generation body shop owner, Blackwood and his father have seen a few earthquakes over the years, including the 1989 Loma Prieta quake, but this one hit closer to home. “[Loma Prieta] impacted us, of course, and some people here in Napa lost their homes,” Blackwood said. “We’ve been here since 1957 when my dad opened this shop, so we have second and thirdgeneration customers. We’ve developed relationships with them over the years, so seeing their cars coming in and asking them about their homes was different. In this industry, we make money when people get into accidents, but when things like earthquakes happen, everyone is affected and anyone’s property can be damaged.” Mike’s Auto Body in Napa experienced some toppled shelves and flipped chairs, but overall the shop came through without damage, according to the shop’s Manager Brad Woodland. “We were extremely lucky,” he said. “The city green-tagged our building, which means we’re clear for business as usual. I live here in Napa and we know people whose


earthquake has been good for us from a business standpoint, but in the end we’re more focusing on helping people in need after a disaster like this.” Randy Lichau, a Napa native and the owner of Lito Auto Body near downtown was shocked by the magnitude of the quake. “Our refrigerator danced across the room and it’s a very large unit, so I was impressed by that,” Lichau said. “We lost a lot of good buildings and several parts of the town took it hard, but we never shut down and we have been working hard to fix all the cars that have been coming Some older buildings in Downtown Napa didn’t fare well here.” during the 6.0 temblor. (Photo courtesy of Michael Smith) Lichau has been fast homes have been red-tagged or yellow- tracking his production to meet the intagged and some that came down comcreased need and getting his cuspletely.” tomers back on the road as quickly as Business was already brisk even he and his crew possibly can. “We’re before the quake hit, so now Wood- coming in early and working on Satland’s workload is over the top, he urdays, because we were actually busy explained. “The repairs are all earth- even before the quake,” he said. quake-related, involving dented “We’re doing all of the glass-related roofs, hoods, fenders and trunks. The repairs first, replacing windshields,

headlights, side mirrors and things that make the cars unsafe to drive. We’ve definitely seen a spike in business, but as someone who was born here and grew up here, a tragedy like this is never a good thing. We’re happy to be helping people by fixing their cars and allowing them to return to their normal lives.” Insurers will probably cover about $2.1 billion in damage, according to research firm Kinetic Analysis. Costs borne by the insurance industry may be limited because many homeowners don’t have earthquake coverage, according to the Insurance Information Institute. The costliest earthquakes in the U.S. have occurred in the state. But just 10% to 11% of California homes with homeowners insurance have earthquake coverage, which must be obtained on top of the standard homeowners policy, according to the California Earthquake Authority, a state-managed earthquake insurer. California residents seeking a CEA policy can contact an insurance agent for a premium quote, or go to CaliforniaRocks.com for an estimate. “I’m sure more people are going to buy earthquake insurance now,”

Amy Bach, executive director of San Francisco-based consumer advocacy group United Policyholders. Ms. Bach’s main buying tip is: “Don’t forgo buying it because you think the high deductible is a rip-off. No earthquake insurance means you’re carrying a 100% deductible!”

Celette Has Fixtures for M-B B Class Electric Drive

Mercedes-Benz launched its first electric vehicle in 1906. Over a century later, the company has returned with a vehicle that is 100 percent electrically powered. The new vehicles are built on the same assembly lines as models equipped with gas and diesel engines, and retain the same structural characteristics. The electric engine, developed by Tesla, is integrated in the engine block. The batteries are housed underneath the passenger cabin. For the underframe check, Celette says to use the existing MZ+ fixtures 7246.510 B Class W246 and the complementary set 7156.509 GLA X156. For side repair, use the existing overhead gantry 7246.810 B Class W246. For more information, please visit celette.com.

www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 31


Continued from Page 19

Better Blueprinting

nician take the front bumper off a car that was in the shop to get the rear bumper fixed? This is not a complicated step, but one that is often skipped with costly results. Shops need to include this step as a standard procedure and hold people accountable because the technician must be properly informed prior to touching a single wrench to the vehicle! Make it part of your program to have the estimator or Blueprint Analyst go over the checkin sheet with the technician and also review the estimate if one had been previously prepared. Use the next step (visual mapping) to help with this communication as it will clearly indicate what parts need to be removed in order to properly analyze the damage.

Step 4. Visual Mapping A great form of communication between the Blueprint Analyst and the disassembly tech is the use of a colored water marker to write on the vehicle or “visual mapping.” It can sometimes be difficult to pull the technician aside for an extended period of time to discuss

the details of a particular vehicle’s disassembly requirements. This technique can help by writing the instructions on the car in advance. This technique can also be used by the customer service rep who is identifying damage during vehicle check-in and is particularly handy when there are multiple dents or scratches on a single panel, some which are supposed to be repaired, and some that are not. When doing visual mapping, you can use any color you wish; however, I prefer to use traffic light colors: red, yellow and green.

● Red = Don’t fix ● Yellow = Caution, Don’t know if fixing yet? ● Green = Fix it! You can come up with your own system of words, abbreviations, or symbols to mark the vehicle, but here are a couple of the most common ones.

● X = Replace ● R = Repair ● RI = Remove and Install

Step 5. Meticulous Disassembly in Sequence (if Possible) In this step, it is time to start disassembling the damaged vehicle. If you have a dedicated Blueprint Analyst who will be keying-in the estimate as the technician removes the parts, it will be much easier to remove the parts in approximately the same group sequence as your estimating system parts groups i.e. bumper, grille, lamps, etc. This method is not always possible, but you will find that removing damaged parts and entering damage into the estimating system with both people following the same group sequence (Step 10) will make your life easier. You have probably heard the

terms “meticulous disassembly” or “100% Teardown.” This refers to the practice of taking off EVERY damaged component that is bolted or otherwise fastened to the vehicle. This practice should not only include damaged parts but also parts being re-

moved for blend panels or that need to be removed for access. Damaged assemblies such as bumpers should not only be removed as an assembly, but

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Six Holmes Body Shop Locations Acquired by Cooks Collision Centers, All but Original Shop in Pasadena Cooks Collision Centers, based in Rosedale, CA, has acquired six collision repair locations from Holmes Body Shop. Holmes will continue to own and operate the original Holmes Body Shop location in Pasadena, CA. The transaction is Cooks Collision’s

The original Holmes Body Shop location in Pasadena, CA, from which it grew into an MSO with seven collision repair centers throughout the Los Angeles area. This location will continue to be owned and operated by Tom Holmes

first MSO acquisition in the Southern California market. Terms of the agreement were not disclosed. The Holmes Body Shop locations solidifies Cooks’ position as the largest independently owned and operated collision repair organization in California, with 25 locations through-

out the state. The Holmes collision re- sion Centers. “Cooks Collision is compair centers are located in Alhambra, mitted to providing our new Southern Canoga Park, Duarte, El Segundo, California customers the same high Riverside and Westlake Village, CA. quality collision repair, customer serv“We are very excited about Cooks ice and value that our Northern CaliCollision assuming ownership of our fornia customers have come to expect six locations,” said Tom Holmes, for the past 33 years.” owner and CEO of Holmes Body Shop. Chris Rose, vice president of “Since 1972, our team has focused on Southern California operations for delivering outstanding customer servCooks Collision, said the company ice and quality collision repairs to our plans to add several more collision recustomers. We made our final decision to join the Cooks team based on the honesty and integrity of the entire Wood family and Cooks employees that we met and dealt with. Our team is excited to join the Cooks Collision organization.” Cooks Collision said The seven locations of Holmes Body Shop are dispersed Holmes will continue to own over a wide area of greater Los Angeles and operate the Holmes Body Shop pair locations throughout the Southlocation in Pasadena, CA. ern California market in the future. “The acquisition of the six Symphony Advisors consulted Holmes locations is a key step in exewith both Cooks Collision Centers cuting our strategic plan by expanding and Holmes Body Shop throughout to the Los Angeles basin and serving the acquisition process and separately Southern California consumers,” said Veritas Advisors, Inc. assisted Cooks Rick Wood, co-CEO of Cooks ColliCollision Centers.

CarMax Recruiting for More than 1,000 Jobs

CarMax Inc. said it is recruiting for more than 1,000 positions to fill across the country. The used-car retailer in Richmond, VA, said in a statement that it is offering full- and part-time permanent positions. Most of the openings are in sales and service operations, which include detailers and technicians, CarMax said in a statement. The retailer also has openings in purchasing and in its business office. “While many retailers are hiring for the holiday rush, we are looking for individuals who are looking for a long-term career,” CarMax spokeswoman Michelle Topping Ellwood said. CarMax plans to open 10 to 15 stores during the next year, Ellwood said. CarMax has 139 superstores in 70 markets, but cities with the most job openings are Sacramento, CA; Bakersfield, CA; Cincinnati; Atlanta; Lancaster, PA; and Huntsville, AL. Job seekers can apply at carmax.com/careers. Most positions, with the exception of technicians, require no prior automotive experience.

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NY Shop & Owner Pleads Guilty to Grand Larceny & Criminal Tax Fraud A Staten Island, NY auto body shop pleaded guilty to felony grand larceny and its owner pleaded guilty to a misdemeanor count of criminal tax fraud on August 25. They were responsible for paying $175,000, which included $135,000 in back taxes owed by the corporation and individual as well as $40,000 in interest accrued. Richard Corio, president and 100 per cent shareholder of Absolute Car Carriers, Inc. was arrested in November 2013. Corio and his business were indicted by a grand jury and arraigned on multiple felony charges of grand larceny and criminal tax fraud as well as failure to file

a return or report, and city criminal tax fraud. Corio was released on his own recognizance. The case was heard in the Richmond County Supreme Court nearly a year later. “The defendants were convicted of not paying the owed sales tax, corporate income tax and personal income tax all while operating a lucrative business,” said Richmond County District Attorney Daniel M. Donovan, Jr. “Richard Corio and Absolute Car Carriers, Inc. have been ordered to repay not only the taxes they evaded, but also a hefty amount of interest.” The defendants are still liable civilly for penalties that may be collected by state and city tax authorities.

Incorporated in December 1997, Absolute Car Carriers conducted business as OK Auto Body and Auto Collision, Inc. During a three-year period the company grossed more than $1 million; however, only just over $70,000 was reported in sales. That figure equates to about seven percent of the total income. Prosecutors said the business under-reported sales tax from March 2009 to February 2012 and didn’t file sales taxes for two quarters. Company officers can be personally held liable for non-payment or under-payment of sales taxes, known as trustee taxes. Over $75,000 of sales taxes were paid back in restitution. Corio also under-reported his personal income tax for all three years

and was ordered to pay back over $10,000 in restitution. Absolute Car Carriers had to pay more than $50,000 in corporate income taxes owed to New York City. “Sales tax evasion disadvantages honest business owners and steals directly from customers,” said Thomas H. Mattox, the New York State Department of Taxation and Finance Commissioner. The case was prosecuted by Assistant District Attorney Jin Lee under the supervision of Assistant District Attorney Kyle Reeves, the chief trial counsel. Corio’s lawyer, Joseph Sorrentino, had not responded to Autobody News’ request for a comment as of press time.

Nancy Friedman was recently featured in a column by Ed Attanasio, so we were pleased to see that she’ll be back at the SEMA Show this year with her session, “Have You Asked Your Customer to Marry You? (Are You Really Engaged?).” The session will be offered twice during SEMA Education Days. Friedman spoke with SEMA about what attendees can expect from her sessions. SEMA: What is a Telephone Doctor? Nancy Friedman: I got that name

from an editor in Davenport, Iowa, who said, “You’re the doctor. You’ve got the prescription for everything.” We know more business is lost to poor customer service and poor treatment than to poor products, and it’s usually done on the phone. There are people in businesses whose job is to answer the phone and have more of a service mentality than a sales mentality, and that’s so wrong. SEMA: What is the right thing for a business to do after the phone rings? Friedman: There are many lead generators around the country who can

tell you how to make the phone ring. That’s great, but what happens when it does ring? The phone can ring, but turning it into a sale is what matters. Companies hire people to pick up the phone when it rings, but often they get screwed up and lost when somebody answers. SEMA: What’s the biggest telephone mistake businesses make?

Friedman: We’re just not friendly enough. Companies spend hundreds of thousands of dollars to make that phone ring and, if it’s not handled just right, all that money is wasted. We answer that phone and we’re in a bad mood. We let it ring too long. We answer the phone improperly or without a name. You get less than 30 seconds to build that rapport.

by Autobody News Staff

Crowd Favorite the “Telephone Doctor” Returns for SEMA Education Days

Axalta Coating System’s Front Royal Plant in VA Hosted Congressman Bob Goodlatte

Axalta Front Royal Plant Manager Lou Papa (l) and Congressman Bob Goodlatte (r)

Axalta Coating Systems, a leading global supplier of liquid and powder coatings, hosted Congressman Bob Goodlatte, serving Virginia’s Sixth Congressional District, at its Front Royal plant on September 8, 2014. Congressman Goodlatte is visiting select industries in the area in sup-

port of local economic growth. Lou Papa, Axalta Plant Manager, hosted the congressman who addressed a large group of employees. “We enjoyed visiting with Congressman Goodlatte. Our Front Royal plant manufactures and distributes high quality paint products for customers in the Refinish and Industrial markets. We are proud of our team members and our products, and we are pleased that he took the time to visit our facility,” said Papa. “Axalta has an important presence in Warren County – both employing many hardworking individuals and helping to stimulate the local economy,” said Congressman Goodlatte. “I was delighted to visit the Front Royal facility to learn more about the work they are doing and take questions from team members on some of the issues facing our nation today. I thank Lou Papa and the team members in Front Royal for welcoming me.”

34 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

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The Newest Shop in Utah Opens November 1 After nearly a year building their new state-of-the-art facility in Southern Utah, Red Rock Collision Repair & Auto Painting is expected to open on November 1, 2014. “We’re planning to be a one-stop shop for everything,” said Josh Borrowman, the general manager of the company. The 16,000 square foot collision repair and painting facility will be located at 765 N. Red Rock Road in St. George, UT. In addition, they are opening a 6,000 square foot mechanical shop on site as well as Red Rock Towing. Since founding Red Rock Collision Repair & Auto Painting in January, the company has operated out of a temporary location in St. George at 1275 E. Red Hills Pkwy. Mike Keetch, the owner of the company, managed MAACO Collision Repair & Auto Painting in St. George for the last 10 years prior to starting Red Rock. Keetch has also owned an auto dealership, Approved Auto Sales, in the area for the last four years. With 25 years of experience in the auto body and paint industry, Keetch opened his new company with two distinct departments to differentiate between the types of services provided. The collision repair center offers fac-

tory-to-match collision repair using industry best practice repair methods, OEM parts and experienced technicians, who will all be I-CAR certified. Borrowman, who worked with Keetch for the last 10 years, said they are expanding their business to include trucking companies and fleet vehicles because they noticed the increased demand. “What makes us unique is that we’re going to have the only downdraft truck booth in all of Southern Utah,” said Borrowman. They will also have a downdraft car booth and laser frame rack. Red Rock will offer customers multiple paint lines and options, varying from cost-effective single-stage Urethane to premium commercial fleet paint. He said the goal is to cater to a wider market to meet everyone’s needs. “Currently there is no option for customers to get their whole car painted unless they want to spend $4,000 to $5,000,” he said. Borrowman said their team takes pride in offering customers good prices and quality, guaranteeing all of their repairs and paint jobs. “We’ve never once turned anyone away,” he said. His advice to other shops is to “build good, solid relationships and you’ll never run out of business.”

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by Stacey Phillips, Assistant Editor

Boyd Group Adds GA & FL Collision Repair Shops

Counterfeit Engine Control Devices Found in Florida

The Boyd Group Inc. announced the opening of two new collision repair locations, one located in Atlanta, GA, and another in Naples, FL, on Sept. 9. The Atlanta location previously operated under the name Atlanta Import Collision Center and is approximately 22,800 square feet with 21,600 square feet of production space. This center is located in the second-largest business district in Atlanta, and houses one-third of the city’s highrises. The new location in Naples, FL, the principal city in the Naples-Marco Island metropolitan area, is the Boyd Group’s second location here. It previously operated under the name Eagle Automotive Auto Body Repairs and is approximately 6,000 square feet, with 5,500 square feet of production space. “Both of these locations increase our capacity in densely populated areas and allow us to reach out to new customers and better assist our insurance partners,” said Tim O’Day, President and COO of the Boyd Group’s U.S. operations. “Together, these additions demonstrate that we are on track to achieve our growth target of six to 10 percent through single storeadditions.”

A Florida man has been charged with one count of trafficking in counterfeit engine control devices— an offence that carries a maximum penalty of 10 years in federal prison. The goods at issue are counterfeit versions of goods produced and marketed by Hondata for use in modified Honda and Acura vehicles. In a plea agreement filed with a U.S. District Court, the defendant admitted that, beginning in 2009, he arranged for Hondata’s K-Pro and S300 devices to be reverse-engineered. The counterfeit devices bore Hondata’s trademarked name, as well as counterfeit serial numbers. The defendant also admitted creating counterfeit packaging, labels, instructions and compact discs for the devices. The investigation in this matter was conducted by the Federal Bureau of Investigation. For more information on how to protect your intellectual property, go to: www.sema.org/ipr.

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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 35


The Legal View with Erica Eversman

Erica Eversman is an attorney, frequent speaker and author on automotive legal topics. She has been quoted in such publications as The Wall Street Journal Online, USA Today, Kiplingers Personal Finance, Cars.com, Yahoo! News and other trade magazines.

Parts Authorization, Indemnification and More—Documentation Part 3 by Chasidy Rae Sisk

Over the past two issues (see August and September Autobody News), industry attorney Erica Eversman has offered some insights into the various types of documentation that collision repair facilities can use to protect their interests and help them obtain proper compensation for work performed. In the final installment in this series on repair documentation, Eversman helps explain the purpose for and how to use the Parts Notice/Authorization and the Indemnification/Hold Harmless Letter, with a few additional documents. The Parts Notice/Authorization is an important form for repair shops to utilize since most states have statutes pertaining to the use of used or aftermarket parts which requires the shop to notify the consumer if these types of parts are used to repair their vehicle. When choosing the parts to use in a repair, the facility has several op-

tions: new OEM parts, aftermarket parts, or salvage yard parts (which the insurance industry commonly refers to as “recycled parts”), but dependent on and subject to state laws, the repair facility must be sure that the consumer understands which parts are being utilized in their vehicle—and that disclosure can be easily be substantiated by having their customers sign a Parts Authorization. Often, the insurance company instructs the repair facility to utilize aftermarket parts in the repair, but ultimately, the consumer is putting their life in the repairer’s hands, not the insurer’s. “Nothing gives a repairer the right to knowingly put an unsafe part on someone’s vehicle,” Eversman admonishes; however, there will be situations that repairers face when they are not entirely comfortable with the insurer’s suggestion to use particular used or aftermarket parts in the repair. In those situations, if the consumer is

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

unwilling/unable to pay for new or new OEM parts when the repairer has concerns about using used or aftermarket, Eversman states, “the repair facility is ethically responsible for performing a safe repair, despite pressure from insurers, so the repairer must ensure that the consumer is notified that the repairer really prefers to use different parts during the repair process.” Although aftermarket or recycled parts may work just fine the majority of the time, there is always the potential for problems when parts used in the repair are not new OEM. In the event of an accident related to the failure of these parts, the repair facility needs to make certain it has protected itself by proving the insurer refused to pay for new OEM parts, the consumer was informed about the use of these parts but refused to pay the difference for the preferred parts, and the repairer possesses this signed document establishing the consumer’s notification and

consent. “People don’t want to think about accidents,” Eversman points out. “Generally, they don’t think of it until after an accident when they’re already vulnerable. We, as an industry, need to do a better job of educating consumers in advance.” In addition to the Parts Notice/Authorization, repair facilities that are averse to installing certain used or aftermarket parts should also ask their customers and the customer’s insurer to sign an Indemnification/Hold Harmless Letter which explains that the repairer is only using the specified parts because both the customer and the insurer insisted on them. This document makes the insurer liable for the use of the specific parts and documents their agreement to pay for any lawsuits or damages the repairer suffers for problems with the parts. Insurers rarely agree to sign this document, often opting to pay for the appropriate part instead, but if the insurer insists on the

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use of potentially unsafe parts and the customer agrees, the repair facility must protect itself from the insurer’s influence; otherwise, the insurer will claim it has no responsibility for the use of those parts in the repair. Because manufacturers don’t offer a warranty on aftermarket parts, using these in a repair can lead to a partial or complete restriction on the vehicle’s bumper-to-bumper warranty. OEMs cannot automatically void a warranty due merely to the use of aftermarket parts, but they can restrict or void the warranty if the aftermarket part results in problems with the vehicle or causes an accident due to part failure or malfunction. Still, many insurance companies’ DRP contracts require the use of aftermarket parts, yet they will not insure the shop’s liability if there is an issue. Though insurers say they will “guarantee” the work of a DRP shop, doing so requires assuming liability, which insurers invariably try to avoid. While they generally say they offer warranties on the aftermarket or used replacement parts, insurance companies’ warranties do not cover the facility’s workmanship unless specifically stated. As a result, consumers are too

often told by insurers that the insurer “guarantees the repair”, but if a consumer actually reads what the insurer is guaranteeing, it is often nothing more than a statement that it will try to address a problem with an aftermarket part after the consumer has addressed the warranty problem with the part manufacturer. Eversman states, “the insurance company’s guarantee is useless. Warranties are like insurance policies – they contain more exclusions than actual coverage. The insurers will say they don’t fix cars—they just pay for repairs and that all of the decisions for how the vehicle was repaired were the collision facilities; however, their ads brainwash consumers by creating the impression that insurers are involved in the repair. These ads focus on a magical restoration without the involvement of the consumer or the repair facility. Much of this glib advertising creates the wrong impression for consumers that doesn’t reflect reality.” Eversman also strongly discourages shops from offering a warranty on anything besides their workmanship, especially on parts. Thanks to the Magnuson-Moss Warranty Act, insurers can offer a warranty for the repairer’s workmanship and parts used

in the repair, though this puts them on the hook to assume liability in the event of a problem. Eversman advises shops to “refuse the insurer’s demands to offer aftermarket or recycled parts warranties. Repairers should clearly state in all customer documents that you guarantee your services and repair work, but never offer a warranty for any part used in the repair. Doing so only subjects repairers to potential lawsuits involving double or treble damages and the payment of the consumer’s attorney fees if there are issues with the parts.” In addition to the documents discussed in detail throughout this threepart series, Eversman feels that shops should also be aware of some additional documentation that they may find useful. The Customer Notice of Insurer Deficiency is a form that serves to inform the consumer of their insurance company’s refusal to pay for a proper, safe repair. Eversman notes, “this form can help with the public relations battle; the insurance companies don’t like to be called out on their actions, so they are more likely to handle the problem. It also reminds the customer that you are the collision repair professional and that you are re-

fusing to perform an unsafe repair, despite the insurer’s demand that you breach this part of your contract with your customer.” The Customer Notice of Insurer Delay keeps the consumer in the loop by alerting them to the fact that the insurer is causing a delay in the repair process. The Vehicle Damage Insurance Election Form, which only applies in first-party cases, is a document that the customer can send to their insurance company demanding to know what specific remedy under the insurance policy the insurer is choosing. This forces the insurer to define whether it is “electing to repair” and accepting all liability for the repair or paying for the loss in money. Though the insurer is unlikely to sign this document, the customer can note their refusal to responds to the request, and this can be useful if a trial is necessary as the insured has the right to demand a response from the insurer to questions related to their claim. A Notice of Additional Cost is a nice way to inform the insurance company of an additional repair cost, granting them a specific amount of time to respond before resuming the See Documentation Series, Next Page

www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 37


On Creative Marketing with Thomas Franklin

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

End Useless Marketing—Redirect Funds and Get Results! The marketing world has changed significantly during the past few years. So much has moved on-line that most other marketing expenditures may no longer make sense in your area. If you track results from your marketing efforts, you have probably noticed the lack of business coming from print ads, print version yellow page, and other phone book ads. It may be time to pull the plug on non-productive marketing and make better use of those funds. As insurance companies establish toll-free numbers to report claims, you should probably stop marketing to most agents. Unless you have nearly unlimited funds to advertise just to keep your name in front of the public, you should probably end off radio and TV advertising. And stop paying for useless advertising schemes. These moves should free up money to pay for real marketing results. So where should you redirect these funds? Mainly you want to double up on-line and live contact efforts. On-line yellow page, Superpage, and similar services will allow prospective customers to find you. Enhancing your website, Facebook page and other social media will be one good use for expanded expenditures, but this should only be a start. As the volume of collision repairs decline due to advances in vehicle accident avoidance technology, to survive shops will have to embrace other profit centers. This may call for a new mindset not familiar to most shop owners and managers. For example, merchandise store marketing rule number one is “Get as many people as possible into the store!” People like to go to famil-

iar places and prefer not to have to try out a new place if they are happy with the old one. The intent is always to make a prospective customer’s first experience so incredible, they will always come back first before trying out any other place. How can a shop make use of this fundamental principle? Perhaps it’s time for shops to copy what dealerships have done for decades. Shop owners and managers accustomed to $2000 repairs and up, may scoff at a couple of hundred dollars here and there in profits from vending machines, accessories, audio sales, and cosmetic automotive merchandise. But keep in mind that many “profit-centers” have a second benefit as marketing opportunities. Every new person that comes into the shop should be given a powerful propaganda piece. This should be a booklet featuring the shop’s “special” features. Shop personnel often think prospective customers know what equipment shops have, and what they do, but this is rarely true. A booklet should spell out why a shop’s frame machine, welding equipment, and painting capabilities are better than the competition, and why special skills in repairing hybrids, electric vehicles, exotic cars and more make this the best shop to repair a vehicle. The reality is the public is generally unaware of shop expertise, and the unspoken message of the booklet is that our competitors are unlikely to have this high quality equipment and systems (even though they may have it too). Sharing or piggybacking businesses is increasingly popular as rents go up. Local grocery stores now often

Continued from Page 37

website). Obtaining proper repair documentation is essential to providing customers with the best possible repair. Eversman encourages all collision repair facilities to protect their businesses by contacting a local attorney to begin drafting these vital documents. Erica Eversman is the Chief Counsel for Vehicle Information Services, Inc. and founder of the Automotive Education and Policy Institute.

Documentation Series

repair, since this saves rental car time for the insurer. It also gives the impression that the insurance company must respond to you because you’re in control of the repair process. Lastly, an Authorization and Release gives you the right to use photos or videos of the repaired vehicles for your own purposes (such as on your

38 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

have a Starbucks or similar concession in the store. Some hamburger chains now have a donut vendor concession or a pizza concession sharing the space. Sharing the cost of a space again frees up funds for marketing and perhaps advertising deals on line using Craig’s List, eBay and other sites. Auto glass, headlights, accessories, cosmetic fixes, running boards, pet restraints,, child proofing, older cars with no GPS are all profit-center prospects for sales and/or installations and add new names to an e-mail marketing list. A shop might want to partner with an automotive accessories vendor and provide an alternate display area—and not only share in the sales profits, but also profit from installations and again capture prospect names. In a shop where estimators only write estimates a few hours a week, product sales and installation fees can be an on-going supplemental commission opportunity.

Beyond front office space, a collision repair shop also has a huge amount of space compared to most businesses. Some shops open up repair space for mini-trade shows, and not only for collision repair products. Convention centers are costly places to hold trade shows, and small groups like furniture and equipment vendors could appreciate a local space to show products. This could bring in local businesses with company vehicles and provide an opportunity to solicit their vehicle repairs. Another alternative is more community-based uses of space. Sundays some shops make open space available for meetings, church groups, school groups, and boy or girl clubs or activities.. Kid’s activities bring parents, especially moms who can be good prospects for vehicle repair. Redirecting marketing funds like this will generate far more sales than old-style advertising and promotions.

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Continued from Page 32

Better Blueprinting

should also have all the grilles, lamps, moldings, fasteners, etc. removed. There are three main reasons that 100% Teardown is recommended.

1. To reveal all hidden damage 2. Ensure fasteners will be reused 3. Facilitate ease in mirror matching the replacement parts

Step 6. Divide Parts by Good and Bad (R&R and R&I) As the technician is disassembling the vehicle, the parts being removed should be separated and placed in two visually separate spaces. One space for damaged parts (Bad) and another for parts just being removed and later re-installed (Good). I prefer to use a table to lay parts out, but you could also use the floor.

and billed out on the initial Blueprint, they become a profit center! I have seen several ways to capture and record these, but my favorite technique is to use a clip sheet. By the tech taping a sample of the damaged clip to a clip sheet and writing out the quantity needed, the person entering the information into the estimating system will have the information. There are two additional benefits to using this system. 1. You can take a photo of the clip sheet to send to the parts vendor. 2. The clips are where you can mirror match them until the new clips arrive. If your company stocks the needed clips, you should put the new replacement clips in a marked bag along with

Step 7. Using a Clip Sheet Clips and fasteners tend to be an often overlooked part of the damage analysis process and with costly consequences. Some shops consider clips and fasteners an expense. When damaged or missing fasteners are captured

● Is ready to go back on during assembly (part of the “kit”)

the old re-usable clips so when it comes time to reassemble the vehicle, everything the tech needs will be there. It’s a term called “kitting” because you are actually building a kit with everything needed to assemble the car on a parts cart.

Step 8. Re-backing Moldings and Trim As mentioned, we are trying to build a “kit” for the technician during reassembly so cleaning the adhesive and applying new adhesive backing on moldings and emblems should be done immediately after removing them. There are advantages to re-backing the trim now. ● If molding is painted, lessens chance of damaging paint later on ● If they are going to break, it is better to know now so it can be added to repair plan

Step 9. Sequenced Analysis of Damage Using Arrow-Down Method There are several schools of thought about what sequence to put damage entries onto the estimate. Most of us were taught to start with the point of impact and then work outwards. I don’t agree with this because it opens up too much room for error. Nearly 10 years ago, a good friend suggested that I should use the information in the estimating system and take it to the damaged car, instead of the other way around. By keying down through every part in each group, you will now catch parts that may have been completely destroyed or torn off during the accident. I also highly recommend using actual OEM diagrams.

Step 10. Photo Documentation In addition to your company’s photo standards, I suggest getting photos of the parts as they are being laid out on the table or floor. Your local insurance adjuster will most likely appreciate it. Step 11. Blueprint Verification Process, Loading Parts Cart See Better Blueprinting, Page 42

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(888) 834-8635 (248) 699-3003 www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 39


Social Media for Shops

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

with Ed Attanasio

Is Angie’s List Impartial or Is She Playing Favorites? Some body shops swear by Angie’s List and call it the “Anti-Yelp,” but in the end, isn’t it just another advertising-based review system? If you’re not familiar with Angie’s List, it’s a paid subscription supported website containing crowd-sourced reviews of local businesses. They currently have 2.3 million paid members, although the company lost $1 million last year. Right now, Angie’s List is under fire and many small service companies have put her on their enemies list. Poor Angie is getting bad feedback from subscribers, investors and businesses alike, for bad reviews from low-rated businesses, disappointing earnings, executive departures, and lawsuits alleging misleading practices. Then, there’s the younger, hipper competition offering similar information for free. Angie’s List wants users to think they’re consumer-driven, when in fact 70% of their revenue comes from advertising. “It’s not advertising from Coca Cola, it’s advertising from the companies they rate,” Jeff Blyskal, a senior editor for Consumer Reports explained. While companies do not pay to be listed on Angie’s List, companies can pay to appear higher up in the search results—which Blyskal believes compromises the validity of the Angie’s List sorting system. “If you’re looking for a contractor, you’re only going to look at page one or two. That skews the ratings,” said Blyskal. “It’s about who advertises and I don’t think they’re being straight with the public on that.” In a recent statement, Angie’s List founder and CMO Angie Hicks said, “Angie’s List is built on a foundation of fairness and transparency. Everything at Angie’s List starts with the consumers. The consumers give the reviews and assign grades. The companies’ A–F ratings are the average of the consumer reviews we receive. Companies that are A–B rated are eligible to advertise with Angie’s List, but they must offer a discount with that advertisement and if their grades fall below a B, we pull their advertising.” Hicks also noted that the company puts itself through an outside audit in order to determine that the data-han-

dling process is fair to all businesses listed on the site, and that these audits have “always found Angie’s List reviews a fair, impartial, trustworthy source.” Angie’s List has been criticized for the fundamental contradiction between its mission statement which states, “Companies can’t pay to be on Angie’s List,” while in reality its toprated businesses are allowed to advertise. Small business owners (like body shops) are crying foul, because they’re aware of the fact that if a company advertises with Angie’s List, their negative reviews will be removed. The company’s effort to keep advertisers happy reveals their conflict of interest, which is why subscribers and businesses are claiming that Angie is playing favorites. Angel Iraola from Net Business Consulting & Solutions in Santa Rosa, CA has advised his clients in the past to use Angie’s List, because for many years it was better and more credible than Yelp, he claimed. But no longer, Iraola said. “The A- and B-rated companies on Angie’s List can buy their way to the top of the default search results and that makes it patently unfair. My automotive repair clients are gravitating more now toward Yelp, because they’re not so blatant about giving special treatment to advertisers.” One body shop owner (who chose to be anonymous fearing bad reviews from Angie) said the following: “It seems to me that just a few short years ago Angie’s TV commercial was completely different. She seemed to end each one with the statement ‘no company can pay to be on Angie’s list.’ But, now they’re forced to make money and advertising seems to be the way they’re doing it. I think ‘truth in advertising’ should pertain to everyone, especially those that claim complete transparency but don’t adhere to their own claims. Do we even know if Angie is the real owner or just a paid actor like Flo on the Progressive commercials? I’ve lost my faith in this site, so we don’t use it anymore and we took their link off our web site as a result.” How can a body shop owner be certain that Angie’s List is on the up and up or playing games with your re-

40 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

views? Iraola says do your due diligence and get everything in writing. “Angie’s List is just like any other review site” Iraola said. “They need to make money somehow and at the beginning they were going to the customers to get it. But, how many people are going to pay $100 annually to find good, honest companies if they know that these companies are also paying for their positions on Angie’s List? That’s one of the biggest problems with Angie’s List. Are the toprated companies really there because they do excellent work or are they there because they bought that spot? Once any review site loses its credibility and the end users doubt its validity, problems will follow. I hope Angie’s List can figure out a way to re-invent itself, so that my clients will want to get involved and the customers will believe in it again.” When it comes to review-based sites, Iraola prefers Yelp to Angie’s

List, especially for body shops. “Yelp is more relevant and many shops still don’t like it, but in the end it’s their best way to go. I tell collision marketing people to manage your Yelp page and respond to every review, both positive and negative. Use it as a tool and stay on it, because if you let a bad review sit, it looks like it’s justified. And stay away from Angie’s List at least for now. They will undoubtedly re-invent itself to a certain degree very soon, because right now they’re losing traction.” Curtis Nixon is the president of AutoBody-Review.com in Chino Hills, CA, a company that verifies every customer review by tapping into a database that confirms their identity and thereby gets true reviews for its body shop clients. “The big problem with these review sites is that they do not contain verified reviews,” Nixon said. “We make sure that the customer See Angie’s List, Page 46

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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.

October Retrospective—ADP, Non-OEM Parts, AAIA Study with John Yoswick

20 Years Ago In The Collision Repair Industry (October 1994) Responding to complaints from the collision repair industry, ADP will be pulling the plug on a program that allowed dealers to promote discount retail parts prices using ADP’s “Parts Exchange New” system. “As a result of the issues that responsible parties of the industry brought to our attention, we will be taking discounted OEs off the ‘Parts Exchange New’,” ADP’s Rick Tuuri announced at the Collision Industry Conference (CIC) held in Nashville, TN. “They will be off the system by January 1, 1995. I want to emphasize that this is no reflection on the way the discounted OEs themselves are doing business.” Although the parts prices listed in the ADP database are the manufacturers’ suggested retail prices, the “Parts Exchange New” system allowed the names of dealers discounting these retail prices to be listed on an estimate. More than 30 dealers were discounting retail prices through the system. Shop owners at a previous CIC meeting had pointed out that while the discounted retail prices affected what insurers will pay, the shop was still being charged the same wholesale price. “The dealers are not giving a discount, they’re not giving anything up,” California shop owner Darrell Malott said. “They’re selling at wholesale anyway. All they’re doing is putting a different retail price down there. They can mess with that list price all they want because it doesn’t change what they sell it for. The system encourages them to play that game and at no cost to themselves. They’re giving away our margin for their advertising so that they can be selected by a third-party to make us buy from a particular OE vendor, and they didn’t have to give up a thing.” ►As reported in Autobody News. ADP’s Claims Services Group (including its estimating system) was acquired by Audatex (now AudaExplore) in 2006. Tuuri (who left Audatex in 2004 and spent four years with I-CAR) became AudaExplore’s vice

president of industry relations in 2007. Malott died in 1999.

15 Years Ago In The Collision Repair Industry (October 1999) After losing a $456 million class action jury verdict and being assessed an additional $730 million by the trial judge, State Farm has stopped writing for non-OEM crash parts on its estimates. The class action trial concluded early in October in Marion, IL, with the 4-man, 8-women jury finding against State Farm. A week later, trial judge John Speroni assessed the insurer a financial penalty, including $600 million in punitive damages.

Illinois Supreme Court; in 2005, that court overturned the lower court’s judgment against the insurer. The case remains in the news, however, because of a pending lawsuit over whether one of the judges on the Illinois Supreme Court at the time it overturned the verdict should have recused himself from the case because of election campaign donations the lawsuit alleges he received from State Farm.

10 Years Ago In The Collision Repair Industry (October 2004) The Automotive Aftermarket Industry Association’s recently released study, “Collision Repair Trends,” examines a number of the trends that continue to reshape the collision repair industry in the United States. “Total collision repair-related sales by aftermarket repair shops increased 5 percent in 2003 to $34 billion,” the report states, noting that this was driven by an increase in the number of miles driven and the increasing cost of collision repair per vehicle. California shop owner Darrell Malott was among those The study forecasts that critical in 1994 of an ADP tool that allowed dealers to sales will increase 5.4 perpromote discounted retail parts pricing through the ADP cent in 2004 and an addiestimating system. ADP eliminated the system in tional 5.1 percent in 2005. response to industry criticism. AAIA found that there The total judgment against State were roughly 43,360 shops that speFarm came to $1.1 billion. The in- cialize in collision repair—34,700 insurer plans to appeal. dependents and 8,600 dealership In response to the verdict, State affiliated body shops. That’s a decline Farm stopped promoting non-OEM of about 2,000 shops since 1999. crash parts. A State Farm memo to its ►The AAIA earlier this year reemployees dated October 6 said, “Ef- branded itself as the “Auto Care Asfective immediately, State Farm will sociation.” The total collision repair temporarily suspend quoting non- market is now estimated at about OEM crash parts on repair estimates. $33.7 billion—about the same This decision applies countrywide amount as a decade earlier—but if and in Canada, until further notice.” total industry revenue had grown just ►As reported in Hammer & by the rate of inflation over the Dolly. Other insurers also halted use decade, today’s collision repair marof non-OEM parts temporarily, but ket would need to be about $44 bilmost returned to the practice of call- lion to be equivalent. The current ing for their use. State Farm has not, total number of shops is estimated at at least in the case of 25 parts types, about 40,100—about 3,200 fewer including hoods, fenders, doors and than a decade ago, a decline of 7.4 decklids. The insurer did, however, percent. Dealership shops account for appeal the ruling all the way to the much of that decline, dropping to

about 6,350 (down by more than 2,200) while there are about 900 fewer independent shops.

5 Years Ago In The Collision Repair Industry (October 2009) Last month’s press conference by Connecticut Attorney General Richard Blumenthal in which he condemned steering by insurers prompted a Hartford Business Journal columnist to write that, “It’s probably not the state’s business whether you, your insurer, or your Momma chooses the body shop that fixes your car.” If someone trusts an insurer enough to do business with them, freelance writer Laurence Cohen said, why wouldn’t they trust them to suggest a particular body shop even if other shops “are unhappy about not being included in the big hug from the insurers” and say that the preferred shops “often attach new equipment with used chewing gum.” In a letter to the editor of the paper, Bill Denya, owner of Denya’s Auto Body in Meridan, CT, and a board member of the Auto Body Association of Connecticut, said what customers “don’t know about those secret deals is that the insurance companies typically put huge pressure on these preferred body shops to reduce costs—and increase insurance company profits.” Denya said Cohen may have been joking about “chewing gum” being used in repairs, but that the association has “documented countless instances of these shops doing significantly substandard repairs.” “If you needed heart surgery, would you allow your insurance company to select the least expensive surgeon for the job or would you want the best surgeon possible?” Denya wrote. ►As reported in CRASH Network (www.CrashNetwork.com), October 12, 2009.

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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 41


Auto/Steel Partnership to Present During OEM Collision Repair Technology Summit at SEMA Show The Society of Collision Repair Specialists’ (SCRS) OEM Collision Repair Technology Summit will be held on Wednesday, Nov. 5th at the Las Vegas Convention Center during the SEMA Show. The Summit will allow the industry to explore how automotive design, technology and materials impact repairability, and how in turn repairability influences structural design and David Rigg development. The full-day program will include four unique panel discussions with automakers, equipment suppliers, certified repair facilities, and OEM certifiers/auditors and will also feature special presentations from subject matter experts on automotive materials. Registration is required to attend and seats will be limited. Register today at: www.semashow.com/scrs. As the newest development to the agenda, SCRS has announced that David Rigg, Project Lead with the Continued from Page 39

Better Blueprinting

This is the most important step! Print the estimate out. Check off each damage entry on your estimate as the corresponding part is loaded onto the cart. If you have everything checked off your estimate and there are still damaged parts on the table or floor, you

may have missed something. It’s a simple but very powerful technique. Finally, be sure to place the parts in the same manner as discussed in Step 6. When you orderly divide the good and the bad parts on the cart, it makes checking the replacement parts for correctness (mirror matching) easier to do. For more information or to schedule a Blueprint Clinic at your shop, please contact David Luehr at: dluehr@msn.com

Auto/Steel Partnership (A/SP) Advanced High-Strength Steel (AHSS) Repairability Project, will provide a detailed overview of the market developments and repairability research taking place between the steel industry and the automakers. The A/SP is a collaboration between the steel company members of the Automotive Applications Council of the Steel Market Development Institute and Chrysler Group LLC, Ford Motor Company and General Motors Company to pursue research, validation and education that help automakers enhance vehicle safety, fuel economy and improve design and manufacturing. Through the A/SP, automakers and steel companies have worked to drive improvements and innovation in vehicles on the road—and in repair businesses— today. “Participating in the SCRS OEM Collison Repair Technology Summit allows us the opportunity to interact with the leaders of the automotive repair industry to better understand their needs, so that we can incorporate them into our project plan,” said Terry Cullum, director of the A/SP. “Our goal is

to share the latest technology on these innovative advanced high-strength steel materials so that they can be repaired in the field using the best practices developed from our repairability project.” Rigg will deliver visibility into the technological advancements being made in the steel industry relative to automotive materials, and an overview of how their market is developing as a result of increased collaboration towards ever evolving safety and sustainability goals. He will share reasons behind the automakers’ continued reliance on steel as a critical substrate; and what their industry is doing to aid in the development of that relationship. The presentation will ultimately address how repairability plays a role in material research and development, and the prevalence steel will have in the vehicles of tomorrow. In addition to his role with the A/SP, Rigg serves as Global Service Lead - Structures, Front and Rear Closures at General Motors where he is responsible for the development, consensus, documentation and implementation of Global Service Re-

quirements. He also represents service at the Advanced Vehicle Development Center for body structures. In his previous position as Body Service Engineer, Rigg was responsible for authoring collision repair manuals; however, his career with GM extends back to 1998. Rigg’s formative years were spent working in his father’s body shop making the traditional advancements from washing cars to eventually straightening frames and writing estimates. His first-hand experience in the repair community has given him valuable insight into the collision repair industry. For more information about SCRS’ Repairer Driven Education (RDE) series, and to register for the OEM Collision Repair Technology Summit and other RDE sessions, please visit: www.semashow.com /scrs.

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NABC 20th Anniversary Golf Fundraiser, January 14, 2015

The National Auto Body Council (NABC) is holding its 20th Year Anniversary Golf Fundraiser on Wednesday, January 15, 2015 in Palm Springs, California. The fundraiser at the Tahquitz Creek Golf Resort will be a highlight of special activities NABC is planning to commemorate its anniversary. Hertz will continue as the presenting sponsor for the annual event, which is one of the NABC’s major sources of funding to support its ongoing community service programs. These programs include NABC’s signature Recycled RidesTM, First Responder Emergency Extrication (FREETM) and the Distracted Driving Initiative. “Last year’s golf event was a sold-out success, with a lot of positive feedback from participants, and plans are underway to raise that bar even higher this year,” said David Merrell of Parts Trader and Domenic Brusco of PPG Automotive Refinish, cochairs of the NABC fundraising committee. Companies interested in sponsorships should contact the NABC at 1-888-667-7433 ext 119 or email M.mcmanus@NationalAutoBodyCouncil.org

42 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

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Aluminum Association to Present During SCRS’ OEM Collision Repair Technology Summit In early August, the Society of Collision Repair Specialists (SCRS) announced the launch of the first issue-specific collision repair industry forum being held at the SEMA Show. The OEM Collision Repair Technology Summit will be held on Wednesday, November 5th at the Las Vegas Convention Center and will explore how automotive design and technology intersect with repairability, and how developments in this area impact the collision repair process and the professional businesses planning for their future in the ever-changing landscape of this industry. Registration can be made at www.semashow.com/scrs. In addition to panel discussions with technology experts representing the automakers, certified repair facilities, equipment suppliers, and certifiers/auditors, the program will feature special presentations from subject matter experts on automotive materials. SCRS announced that Doug Richman, Technical Committee Chairman of the Aluminum Transportation Group (ATG) will offer insight into the role aluminum will play in collision re-

pair businesses now, and in the future. “The ATG is eager to share with SCRS session attendees key insights on aluminum’s long history in the automotive industry,” said Richman. “Aluminum-intensive vehicles have been in the marketplace for many decades and are regularly repaired as needed. Within the next ten years, seven out of 10 new pickups produced in North America will be aluminumbodied, according to a recently released survey of automakers conducted by Ducker Worldwide. As Doug Richman aluminum use in auto bodies grows exponentially in the next decade, we applaud the SCRS’ efforts to educate and train repair professionals to be better prepared for the change in status quo materials that come through their shop doors.” Richman will deliver visibility into the technological advancements being made in the aluminum industry relative to the automotive market, and an overview of how their market is de-

veloping as a result of increased integration into our modern fleet. He will share reasons behind the automakers interest in, and use of, aluminum; and what their industry is doing to aid in the development of that relationship. In addition to his role with the ATG, Doug Richman is Vice President of Engineering and Technology for Kaiser Aluminum. He joined Kaiser in 1996 and was appointed to his current position in 2001. Before joining Kaiser, Richman was Vice President of Automotive Castings for Alcan Aluminum and his background also includes almost 20 years of experience in development and design management at General Motors. Richman is a long-standing member of the ATG, serving as technical chairman of the sub-committee. He also serves as co-chairman of the Society of Automotive Engineers (SAE) Light Metals committee. The OEM Collision Repair Technology Summit is made possible through support from PPG Refinish Products, Ford Motor Company, BASF, Toyota Motor Sales and The Hertz Corporation.

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Volvo is trying to regain a foothold worldwide with the introduction of its XC90 full-size crossover, the first for China’s Zhejiang Geely’s acquisition of the Swedish automaker from Ford in 2010. The premium seven-seater will contend against models like the Lexus RX350, BMW X5 and Chevrolet Tahoe. Its arrival is considered critical for Volvo dealers who have watched sales plummet since Ford, in the midst of financial difficulties, sold the brand to the Chinese company for $1.8 billion.

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Industry Insight with John Yoswick

John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the collision 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 Committees Look at Autonomous Vehicle Issues, Impact of “Length of Rental” Formulas The auto manufacturers and sysLawmakers and regulators on a state, federal and international level are tem suppliers will potentially face liaworking to make sure they can stay bility if their systems are controlling these vehicles, Regan said, but some ahead of the quickly-developing “driverless vehicle” technology—but what of that liability is addressed in the state and federal regulations being enwill it mean for collision repairers? That was one of the questions acted. “We started tracking these laws considered in a presentation at the and noticed the missing component,” most recent Collision Industry Conferwith Janet Chaney ence (CIC), held in Detroit, Mich. The Regan said. “There’s no protection in committee looked at what laws and any of these laws for those who are fixing the cars.” regulations are being enacted surThat’s an issue the industry will rounding the technology, and what that need to continue to monitor, Regan could mean for collision repairers, insaid. surers and other industry segments. Steve Regan, chairman of the committee, said that for insurers, the ‘Length of rental’ formulas discussed new and costly safety-related equip- Also at CIC in Detroit, a panel tackment involved in autonomous cars led a new twist on the issue of cycle will impact repair costs. Access to or time. The topic: Do insurer formulas use of “black box” data will continue used to calculate the number of “rental to be an issue. And liability related to days” on an initial estimate drive the repair of the vehicles could be an down cycle time? Do they set unrealissue for insurer offering garage-keep- istic expectations for consumers? Do ers, as well as liability policies for col- they add friction and inefficiencies? Or do they do some combination of all lision repairers.

Industry Interview

NC Auto Injury Attorney Urges Drivers to Use the New NHTSA Online Recall Check

The North Carolina auto accident law firm of Riddle & Brantley LLP, is urging consumers to use the National Highway Traffic Safety Administration’s (NHTSA) new Online Recall Check feature on their website. Drivers can now use this tool to search for recalls which may affect their particular vehicle by entering their car’s Vehicle Identification Number (VIN). “As we saw with General Motors’ defective ignition switches, it is extremely important for consumers to stay up-to-date on recalls which may affect the safety of their vehicles,” said attorney Gene Riddle, partner at Riddle & Brantley. “Our firm is urging drivers to use the NHTSA’s tools to keep their families safe.” According to an August 20, 2014, report from the Associated Press, U.S. automakers have recalled over 40 million vehicles this year alone. Over 29 million of these vehicles were the results of extensive recalls from General Motors after faulty ignition switches blamed for causing multiple accidents leading to over a dozen fatalities and many more injuries.

Before the creation of the tool, drivers had to search multiple sources to make sure that their vehicles had not been recalled. According to the NHTSA’s VIN checker website, this new tool lists all ongoing safety recalls, any recalls which have been conducted in the past 15 years, and all recalls by major car and motorcycle manufacturers. The checker does not cover non-safety related recalls, recalls for international vehicles or ultra-luxury cars, or vehicles which are over 15 years old. According to an August 14, 2014 press release from the NHTSA, consumers were previously limited to searching using a car’s make and model year. Now, the addition of VIN searches will allow consumers to find alerts specific to his or her particular vehicle. In addition to the creation of this checking tool, the NHTSA is also mandating that auto manufacturers maintain a list of current recalls which affect their models on their websites. Automakers must update this information at least once a week. To use the NHTSA’s recall checker, consumers should visit: https://vinrcl.safercar.gov/vin.

44 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com

of these things? Pat O’Neill of Bodyshop Revolution, who moderated the discussion, noted that there is a wide variation in the formulas shops and insurers use to determine expected “length of rental” (often used as a proxy of “cycle time”) and even in the statistics about average length of rental that are reported by the rental car companies or information providers. Data provided by Enterprise Renta-Car, for example, found that length of rental in the secPat O’Neill ond quarter of this year averaged 10.7 days nationally, but ranged from a low of 8.9 days to a high of 14.1 days in another. With a 5-day difference between some states, repairers on the CIC panel asked, is it reasonable for an insurer to set length of rental expectations using a national formula? Panelist Darrell Amberson of

LaMettry’s Collision in Minnesota read some of the formulas that the CIC committee had collected that insurers use (or require their direct repair shops to use) to establish the initial completion date, which may be included on the paperwork given to the vehicle owner. Those formulas ranged from one day for every three hours of labor to one day for every six hours of labor on the estimate. Some formulas allow the shop to exclude weekends or delays caused by parts. Panelist Aaron Schulenburg of the Society of Collision Repair Specialists said one insurer acknowledged to the association that it recognized its hours-per-day formula for its direct repair shops was outside the norm for the industry, but that it set that goal to make sure its shops prioritized that insurer’s work over one who had set an unrealistic hours-per-day goal to try to get its work prioritized. If the goal is to drive performance, Schulenburg said, that’s one

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thing. But when it establishes unrealistic expectations for the consumer, and requires multiple adjustments by the shop and rental car company to the completion date information, that impacts efficiency and customer satisfaction. He said it’s also unfair for a shop to have to pick-up the cost of a rental if repairs exceed a calculation based on an unrealistic formula. “The shop didn’t sell a rental coverage policy, and they didn’t profit from the sale of that policy,” Schulenburg said. “My concern is: Is that the best way to drive behavior,” Amberson asked about the formulas. “If you’re going to push us to fix cars faster, is that really the best way to do it? I might suggest there are more cooperative ways to do this. This feels like a negative approach with a negative consequence if we don’t achieve what you’re looking for, and on top of that causes us to create an unrealistic expectation to the customer, which only irritates and frustrates them.” Amberson said that his company is making an effort to reduce cycle time by using blueprinting – but that “the formulas insurance companies use have very little to do with the improve-

ments we’ve shown in our numbers.” Chris Andreoli of Progressive Insurance, the lone insurance company representative on the panel, agreed that the customer should not be given inaccurate completion date information, but that length of rental formulas can be used as a starting point in that conversation. He agreed that using the same formula for every vehicle across the nation isn’t as accurate a system as he believes the industry will develop as data sophistication improves. He predicted that at some point shops and insurers will be able to establish more Chris Andreoli accurate completion dates based on data that will include year, make and model of vehicle, as well as market or region. “I think that’s where the level of sophistication needs to go in the industry,” Andreoli said.

Not a lot of consensus The panel did not seem to agree on how often consumers currently are being given an accurate completion date.

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Curtis Nixon of UpdatePromise.com said his company’s research indicates shops are hitting promise dates 88 percent of the time; however, he shared data showing the impact on CSI Curtis Nixon based on the number of times a promise date changes, a chart that showed the impact on CSI for as many as 12 such promise date changes on a job. The rental car companies on the panel seemed to experience more changes to the initial completion date information than an 88 percent accuracy stat indicates. “We do see a lot of changes,” said Mckenzie Spalding of Choice Auto Rental, a regional company in the Twin Cities market of Minnesota. “It happens a lot.” “We see an average of 2-4 changes that occur per claim,” concurred Frank LaVioila, assistant vice president for collision industry relations at Enterprise. Amberson said using better data instead of arbitrary formulas could reduce or eliminate such changes, which impact shop and rental car company

efficiency as well as potentially lower customer satisfaction. Because of such formulas, Amberson said, “Sometimes we meet the customer’s basic expectations but we’re not exceeding the customer’s expectations. We’re not wow’ing them. We’re not creating raving fans. And that’s what we should be striving for. We should be striving for excellence, not just a tolerable experience for the customer.”

ASA Announces Plans to Relocate Headquarters

It’s been a busy season for the Automotive Service Association (ASA) as the national office prepares to relocate its headquarters in a few weeks from Colleyville, Texas, to nearby North Richland Hills. In addition, the association recently held its successful NACE|CARS trade show in Detroit. Effective immediately, the association’s 800-ASA-SHOP (2727467) number is changing to (817) 514-2900. Please update your records to reflect this change. And effective Oct. 1, 2014, the association’s new headquarters will be located at 8209 Mid-Cities Blvd., North Richland Hills, TX, 76182.

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SCRS Posts Tribute to March Taylor for Supporting and Inspiring the DEG Seven years ago this month in August of 2007, the Society of Collision Repair Specialists (SCRS) and the collision repair community lost a dear friend and tremendous asset with the untimely passing of March Taylor. Those that were fortunate enough to have been touched by March knew him as a dedicated family man, an innovative shop owner, an experienced master technician, and a selfless and iconic collision industry leader and contributor. He was a fixture within SCRS, March Taylor the SCRS Board of Directors and a mentor to many of us in our careers and businesses. March was passionate about addressing inaccurate estimating data and volunteered his time collecting, researching and processing hundreds of database inquiries. He was a technician at heart and was insistent on identifying areas where the data failed to reflect the real world requirements technicians’ face in the repair process. His work was the catalyst and inspiration behind the creation of the Database Enhancement Gateway (DEG), and the concept to have a centralized point for our industry to submit inquiries to.

The DEG (www.degweb.org) is an initiative that was developed to help address collision repair estimates data, through proactive feedback from the collision repair industry to the information providers (IPs) that supply the databases for the various estimating products. The DEG was created, and is equally funded and maintained by SCRS, Alliance of Automotive Service Providers (AASP) and Automotive Service Association (ASA). It is a perfect example of our organization putting membership dollars at work to address real issues in the industry. The DEG has processed more than 7,000 inquiries from the industry, many of which have resulted in changes to the estimating system database, or necessary explanations of how they work. The process is simple, the shop submits the inquiry to the DEG and the administrator works with the representatives from the IPs to bring the inquiry to resolution. Here are some great recent examples of responsive results from DEG submissions: 7112 - 2004 VW Beetle Left Door Skin 6939 - 2013 VW Beetle Roof Panel 6602 - 2013 Chevrolet Camaro SS Side Body Drip Molding If you are using electronic estimating systems to itemize your repair process and price your services, it is important to pay attention to the information being used to create the estimate.

doing the review indeed had their car repaired by the shop they’re reviewing. We illicit the reviews by doing a customer satisfaction survey and we’re finding out that about 25% of the customers are writing reviews on our site as a result. This way, both body shops and customers can rely on these reviews, because they’re real.” AutoBody-Review.com charges its body shop clients a monthly fee and does not offer advertising to get any shop at the top of any list. “Staying objective is crucial and that’s why our reviews carry weight. We never manipulate reviews or call customers to have them changed or delete any review, negative or positive. Our playing field is 100% level, so if a shop does good work, they get praised and vice versa. Selling ads for prime positions is definitely a clear conflict of interest and not the right way to do things, in my opinion. The customers should dictate position, not the almighty dollar and that’s why we will never sell ads to our body shop members—ever!”

MS is the 4th Most Expensive State for Car Ownership Overall

Mississippi is the third-most expensive state for annual estimated gasoline costs, at $1,231. Other costs are not too outrageous: the state ranks as the 21st most expensive for insurance at $901, and repair costs come in at $356 per year. But thanks largely to those gas prices, owning a car in Mississippi comes with an annual estimated cost of $2,487.

WI is the 5th Cheapest State in Which to Own a Car

Repair costs are about in line with Ohio’s, at an annual estimated cost $329, and insurance is the third-cheapest of all states at $658. Wisconsin, though, is 1 of 22 states with gasoline prices over the annual estimated cost of $1,000 ($1,031). That’s over half the annual estimated car ownership cost of $2,018 in the state.

WY is the Most Expensive State in the US for Car Ownership

With relatively cheap repair and insurance rates, why is Wyoming the most expensive state in which to own a car? Gas prices. The state is the most expensive for annual estimated gas costs, and it’s not even close. Wyoming is over $350 more expensive per year than second-ranked Alabama. It costs about $1,588 annually to fill your car up in Wyoming. At $324, repair costs are reasonable, as is insurance at $792. In total, it costs about $2,705 per year to own a car in the most expensive state.

FL is the Third Most Expensive State in Which to Own a Car

According to Bankrate.com there is no one cost that is astronomical in Florida when it comes to owning a car, but all three factors Bankrate measured were on the high side. Estimated annual repair costs are $377, 11th most-expensive among the 50 states and D.C. Insurance costs are $1,124, comfortably in the top-10 most-expensive states, and gasoline costs are $1,015. Overall, the cost of owning a car per year in Florida is about $2,516.

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Continued from Page 40

Angie’s List

Talk to your estimating staff about the DEG and visit www.degweb.org to check it out today. The DEG and all of its successes are dedicated to the memory of our good friend, March Taylor.

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Season 34 of MotorWeek 2014 Features Collision Mitigation, Traffic Alerts Season 34 of MotorWeek, television’s longest-running automotive series, celebrates the reinvention of the automobile. Upcoming 2015 and 2016 models will feature the highest level of infotainment, safety, and driver’s aid technology ever on four wheels and MotorWeek will cover all of it in exciting detail. This new technology is transforming how automobiles interact with consumers as well as how they drive, paving the way for the emergence of the autonomous, self-driving car. The new season of MotorWeek premieres on public television stations nationwide beginning Sept. 5, 2014. Season 34 of MotorWeek will highlight advanced functions such as Collision Mitigation, Lane Keep Assist, Rear Cross Traffic Alert, and other driver aids that are a step towards cars that completely drive themselves. While this approach may be somewhat alarming to automotive enthusiasts, it will be a boon for everyone that loves or needs the everyday freedom that driving an automobile provides. “The autonomous automobile will not only continue America’s love affair with the automobile, but move it to an even higher level of usefulness,” says John Davis, MotorWeek Host

and Senior Executive Producer. One new technology, Collision Mitigation, which uses a radar aided braking system to slow and even stop a vehicle to avoid a collision, will become a special focus of MotorWeek’s continuing commitment to driving safety. In season 34 MotorWeek will

MotorWeek Cast Members

inaugurate a new test for cars with automatic braking systems. MotorWeek will add a low speed barrier test, the first all-new test in our Road Test regime in a generation. This new barrier test was created to measure the effectiveness of the various automatic braking systems among different makes and models. MotorWeek Season 34 will reveal how automatic braking systems react in low speed collisions; one of the most common accidents causing billions of dollars

NJ is 5th Most Expensive State for Auto Ownership

in insurance claims for injuries and property damage. The season premiere of MotorWeek features the newest addition to the BMW family, the exotic 2015 BMW i8 advanced hybrid, the compact 2015 Lincoln MKC utility, the 700-plus horsepower 2015 Dodge Challenger SRT Hellcat, along with the all-new 2015 Acura TLX. Other highlights from MotorWeek’s new season include road test reviews of the 2015 Chevrolet Camaro Z28, designed and engineered to be the fastest street-legal Camaro ever built; and the new 2015 Lexus NX, the brand’s first compact luxury crossover. MotorWeek’s line-up of popular segments returns with Master Technician Pat Goss offering do-it-yourself car care advice at Goss’ Garage. Yolanda Vazquez will continue to tackle consumer news and trends in FYI and Motor News. Roving reporter Zach Maskell goes Over the Edge with a quirky and fun look at the auto world in overdrive, while Brian Robinson reviews the newest motorcycles and scooters in Two Wheelin’. MotorWeek also continues its decade-long emphasis on the widening availability and practicality of hybrid and electric vehicles in Green Motoring.

It costs more to fix your car in New Jersey than in any other state, with an annual estimated cost of $393. New Jersey is also the third-mostexpensive state for auto insurance at $1,244 per year. Gas, though, is affordable, with New Jersey ranking as the sixth cheapest state in this category at $783. For owning a car in New Jersey, you pay about $2,421 per year.

Ford and Chrysler Up, GM down in August Car Sales

It was an up and down sales month for the Big Three US automakers, with Chrysler and Ford seeing gains while General Motors saw retail sales decline, though fleet sales made up some of the ground. All told, a total of 1.58 million light vehicles were sold in August, according to data from Wards Auto. This brings the year-to-date total to 11.3 million units, a 5% increase over 2013.

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