October 2018 Midwest Edition

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37 YEARS

MIDWEST EDITION

AUTOBODY IL / IN / IA / KS / KY / MI / MN / MO / NE / ND / OH / SD / WI

NE Body Shop’s 11-Year Car Project Earns National Honors

The latest build coming out of Boesch Auto Body’s shop in Humphrey, NE, is a 1936 Ford Roadster. The award-winning roadster is owned by Dana and Marge Elrod of Sunrise Beach, MO. In January, the car competed in Pomona, CA, where it placed second in the America’s Most Beautiful RoadThis 1936 Ford Roadster was rebuilt by Dale Boesch of ster contest. A month later, in Boesch Auto Body in Humphrey, NE. It earned numerous Del Mar, CA, the car placed awards, including 2018 Builder of the Year from the in the top five for the Street National Street Rod Association during competition at

by Patrick Murphy, Norfolk Daily News

the Louisville, KY, Convention Center. Courtesy photo

See National Honors, Page 22

ASA’s Attorney Discusses Overtime Laws by Chasidy Rae Sisk

On Wednesday, August 22, the Automotive Service Association (ASA) hosted a webinar on “Making the Overtime Law Work for You” as part of its Webinar Wednesdays initiative. The presentation featured Brian Farrington, ASA’s wage and hour attorney and expert, who addressed federal overtime laws and the costly impact they have on non-compliant shops. ASA Vice President Tony Molla opened the webinar by welcoming attendees and introducing

Farrington. Farrington began by discussing the Fair Labor Standards Act of 1938 (FLSA), which is the basic wage and hour law in the United States and establishes standards in four areas: minimum wage, overtime, child labor and recordkeeping. As of July 24, 2009, the federal minimum wage is $7.25 per hour. Farrington emphasized that when state law varies from federal law, an employer must follow whichever standard most benefits the employee. For example, if the state’s minimum wage is higher than the federal minimum wage, but there is no state overSee Overtime Laws, Page 30

AUTOBODYNEWS.COM

Vol. 7 / Issue 12 / October 2018

Indiana Tops U.S. in Road Rage Fatalities by Jim Chapman, The Journal Gazette, Fort Wayne, IN

Indiana led the nation two years ago in the number of fatal crashes involving road rage and aggressive driving, a study released in late August says. But an Indiana Criminal Justice Institute official and two police officers said the fatal crashes cited in the report likely didn’t include physical altercations like the one that led to a man’s death after an incident in August in Fort Wayne. The study by Auto Insurance

Credit: The Journal Gazette

Center said there were 77 fatal crashes involving road rage and aggressive driving in Indiana in 2016, the latest year full data are available. Those See IN Road Rage, Page 9

INTRODUCING A NEW COLUMN! From the Desk of Mike Anderson with Mike Anderson

See page 46 in this issue.

Like a Good Neighbor... State Farm Settles by Bruce L. Roistacher, Esq. NY, FL and DC Bar

A brief history of this very long case is in order. Back in 1999 in Avery v. State Farm, a class action lawsuit was filed claiming State Farm was using non-OEM parts. The class included more than 4 million State Farm policyholders. The jury found that the non-OEM parts were inferior to OEM and that State Farm breached its contract in failing to return the damaged vehicles to “pre-loss condition.” It also found that State Farm concealed known problems with the non-OEM parts. The jury returned a $1.2 billion judgment against State Farm. In 2001, State Farm appealed and an appellate court affirmed the decision but lowered that award to $1.05 billion. State Farm then filed an appeal to the Illinois Supreme Court.

This is where it gets really interesting. In 2004, Judge Lloyd Karmeier was elected to the Illinois Supreme Court. The Avery judgment was eventually overturned. The Illinois Supreme Court ruled that there was no breach of contract by State Farm, no damages were proven and that the “class” was not legally shown based on a legal technicality. The plaintiffs appealed to the U.S. Supreme Court and they denied hearing it. THE CASE SEEMED DEAD at this point. The plaintiffs continued to investigate and in 2012 filed a new lawsuit in federal court (Hale v. State Farm) claiming, among other issues, that they had newly discovered evidence that State Farm recruited Judge Karmeier as a judicial candidate and heavily financed his campaign that led to his election to the See State Farm Settles, Page 34

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com


CONTENTS AASP-MN Members Enjoy BBQ, Horse Races . 14 AASP-MO Gateway Meeting Focuses on OEM Certifications . . . . . . . . . . . . . . . . . . . 22 ABRA Auto Body & Glass Planning To Construct New Building in Eden Prairie, MN . . . . . . . . 16 Arrest Made in Wichita Body Shop Robbery. . . 17

Webinar . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Yoswick - ‘Who Pays for What?’ Surveys Illustrate Shops’, Insurers’ Practices for Scanning Vehicles . . . . . . . . . . . . . . . . . . 6 Yoswick - 5 Years Ago at NACE, Keynote Speaker Said Industry Was Headed Toward Catastrophe . . . . . . . . . . . . . . . . . . 50

Automotive Women’s Alliance Foundation Swings “Fore” Scholarships in MI . . . . . . . . 12 Butler Body Shop, Broadheads & Bullets in Coldwater, MI, Showcase Products . . . . . . . 10

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC.

AMH CANADA LTD . . . . . . . . . . . . . . . . . . . . . 13

Launch Tech USA. . . . . . . . . . . . . . . . . . . . . . 71

Audi Wholesale Parts Dealers. . . . . . . . . . . . . 68

Laurel Auto Group of Westmont . . . . . . . . . . . 55

AUTEL Automotive Parts Intelligence . . . . . . . . 7

Luther Bloomington Acura-Subaru . . . . . . . . . 58

AutobodyLaw.com . . . . . . . . . . . . . . . . . . . . . 22

Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Axalta Coating Systems . . . . . . . . . . . . . . . . 2, 9

Maplewood Toyota-Scion . . . . . . . . . . . . . . . . 59

BASF Automotive Refinish Coatings . . . . . . . . 45

Mazda Wholesale Parts Dealers . . . . . . . . . . . 66

Bettenhausen Automotive . . . . . . . . . . . . . . . 14

McGrath City Hyundai . . . . . . . . . . . . . . . . . . 48

BMW of North America, LLC. . . . . . . . . . . . . . 53

Mercedes-Benz . . . . . . . . . . . . . . . . . . . . 36-37

BMW Wholesale Parts Dealers . . . . . . . . . . . . 69

Midwest Parts Group . . . . . . . . . . . . . . . . 20-21

Bob Hook Chevrolet . . . . . . . . . . . . . . . . . . . . 50

MINI Wholesale Parts Dealers. . . . . . . . . . . . . 68

CarcoonAmerica Airflow Systems. . . . . . . . . . 30

Mitsubishi Wholesale Parts Dealers . . . . . . . . 66

Certified Automotive Parts Association . . . . . . . 8

MOPAR Wholesale Parts Dealers. . . . . . . . 28-29

Charles Gabus Ford . . . . . . . . . . . . . . . . . . . . 61

Morrison’s Auto Parts. . . . . . . . . . . . . . . . . . . 46

Chicago Pneumatic Compressors. . . . . . . . . . 14

Motor Guard Corp. . . . . . . . . . . . . . . . . . . . . . . 6

Classic Chevrolet . . . . . . . . . . . . . . . . . . . . . . 57

Nissan/Infiniti Wholesale Parts Dealers. . . . . . 66

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Patrick BMW MINI . . . . . . . . . . . . . . . . . . . . . 56

Courtesy Subaru . . . . . . . . . . . . . . . . . . . . . . 43

Patrick Hyundai . . . . . . . . . . . . . . . . . . . . . . . 52

Dent Magic . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Diamond Standard Parts . . . . . . . . . . . . . . . . 49

Rapid Tac. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Dynabrade, Inc. . . . . . . . . . . . . . . . . . . . . . . . 15

RBL Products. . . . . . . . . . . . . . . . . . . . . . . . . 27

Eckler’s Automotive . . . . . . . . . . . . . . . . . . . . 19

Reliable Automotive Equipment . . . . . . . . . . . 24

ECS Automotive Concepts . . . . . . . . . . . . . . . 40

Richfield-Bloomington Honda. . . . . . . . . . . . . 44

EMS Automotive . . . . . . . . . . . . . . . . . . . . . . 18

Robaina Industries, Inc. . . . . . . . . . . . . . . . . . 47

Equalizer Industries, Inc. . . . . . . . . . . . . . . . . 16

SATA Dan-Am Company. . . . . . . . . . . . . . . . . 39

Erhard BMW of Bloomfield Hills . . . . . . . . . . . 51

Sherwin-Williams Automotive Finishes. . . . . . . 5

Erhard BMW of Farmington Hills . . . . . . . . . . 51

Shop-Pro Equipment, Inc. . . . . . . . . . . . . . . . 41

GM Wholesale Parts Dealers . . . . . . . . . . . . . 65

Subaru Wholesale Parts Dealers. . . . . . . . . . . 63

Why to Join One . . . . . . . . . . . . . . . . . . . . . 52

Honda-Acura Wholesale Parts Dealers . . . 32-33

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

SEMA Show Week Member Buyer Rewards. . . 16

Hyundai Wholesale Parts Dealers . . . . . . . . . . 62

The Sharpe Collection of Automobiles . . . . . . 34

Infiniti of Naperville . . . . . . . . . . . . . . . . . . . . 52

Toyota of Des Moines. . . . . . . . . . . . . . . . . . . 61

Jack Phelan Chrysler-Dodge-Jeep-Ram

Toyota Wholesale Parts Dealers . . . . . . . . . . . 68

Anderson - Are You Upgrading Your Shop’s

FCA US Invests $30 Million in New Autonomous

Losing Out to Shops That Are? . . . . . . . . . . . 46

for Sale in WI . . . . . . . . . . . . . . . . . . . . . . . 18 Guy & Sons Auto Rebuilders Closes Shop After 56 Years in Chicago . . . . . . . . . . . . . . 24 Indiana Tops U.S. in Road Rage Fatalities . . . . . 1 MI CARSTAR Locations Join NABC To Highlight Distracted Driving Awareness . . . . . . . . . . . 14 Sioux Falls, SD, Auto Body Shops Stay Busy After Hailstorm . . . . . . . . . . . . . . . . . . . . . . 17 Sterling Autobody Owner Hangs Up Tools, Spray Gun in Wintersville, OH . . . . . . . . . . . 26

Apple’s Secretive Self-Driving Car Program Suffers 1st Reported Crash . . . . . . . . . . . . . 18 ASA’s Attorney Discusses Overtime Laws . . . . . 1 Audatex 5-Year Donations of $25,000 to CREF. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 AutoX Launches Autonomous Grocery Delivery in San Jose, CA . . . . . . . . . . . . . . . . 4 CIF Disaster Relief for 2018 Hurricane Season . . 3 Haunting Images of Cars Caught in the CA Wildfires . . . . . . . . . . . . . . . . . . . . . . . . . 9 Like a Good Neighbor... State Farm Settles . . . . 1 NE Body Shop’s 11-Year Car Project Earns National Honors . . . . . . . . . . . . . . . . . . . . . . 1

COLUMNISTS Attanasio - How To Squeeze Maximum Value Out of SEMA 2018 . . . . . . . . . . . . . . . . . . . 35 Attanasio - Who Should Be Your #1 Audience for Your Advertising and Marketing? . . . . . . 48 Chess - Plastic Bumper Repair Part 1: Adhesives . . . . . . . . . . . . . . . . . . . . 40 Ledoux - Honda Collision Parts Program Sets New Standard . . . . . . . . . . . . . . . . . . . 58 Ledoux - Vision, Foresight Help Launch This PBE Jobber . . . . . . . . . . . . . . . . . . . . . 64 Sisk - I-CAR Discusses Training, Recognition, Service Enhancements During SCRS

www.autobodynews.com

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

ACA’s Bill Hanvey Testifies on 301 China Tariffs . 31

Customer Service Experience? Or

Flood-Damaged Cars Could End Up

to assist our fellow brothers and sisters impacted by natural disasters,” stated Dale Matsumo-to of Auto Body Hawaii and board member of ABPAH. “If you or others you know are impacted by any storms or other natural disasters, please go to the CIF website and request aid,” said Michael Quinn, CIF Disaster Relief Task Force chairman.

NATIONAL

CARSTAR Bridgeton, Wentzville Open in MO . . 22

Driving Facility in MI . . . . . . . . . . . . . . . . . . 12

On Sept. 12, the Collision Industry Foundation (CIF) announced its Disaster Relief Task Force is continually poised to render assistance to industry members who may be impacted by natural disasters. As Hurricane Florence barrels toward the East Coast and the 2018 hurricane season goes in full swing, the CIF wants to bring awareness of its mission and seek support for this cause. “It’s comforting to know the Collision Industry Foundation exists

Oldest Body Shops in America: Keene Auto Body . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Phillips - Sherwin-Williams Study Reveals Primary Reason Body Shops Prefer Waterborne Coatings. . . . . . . . . . . . . . . . . . 62 Phillips - The Power of Peer Groups and

TN DOT Commissioner Talks Autonomous Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Top Automakers Committed to Advanced Technology . . . . . . . . . . . . . . . . . . . . . . . . . 66

INDEX OF ADVERTISERS

REGIONAL

CIF Disaster Relief for 2018 Hurricane Season

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

of Countryside . . . . . . . . . . . . . . . . . . . . . . 23

VanDevere Kia-GM. . . . . . . . . . . . . . . . . . . . . 42

Jake Sweeney Chevrolet . . . . . . . . . . . . . . . . 54

Volkswagen Wholesale Parts Dealers . . . . . . . 64

Kelly BMW . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Wedge Clamp Systems . . . . . . . . . . . . . . . . . 31

Kia of Des Moines . . . . . . . . . . . . . . . . . . . . . 61

YesterWreck . . . . . . . . . . . . . . . . . . . . . . . . . 12

Kia Wholesale Parts Dealers. . . . . . . . . . . . . . 67

Zimmer Chrysler-Dodge-Jeep-Ram . . . . . . . . 72

Killer Tools & Equipment Corp. . . . . . . . . . . . . 17 autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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AutoX Launches Autonomous Grocery Delivery in San Jose, CA AutoX is launching a grocery delivery and mobile store pilot in San Jose, CA, allowing public users to order and receive fresh produce and other goods delivered by AutoX selfdriving cars. Arriving in time for the autumn harvest produce season, the new amenity will be available to customers in geo-fenced areas throughout the city.

and is a testament to our cutting-edge AI and all its potential capabilities. We believe self-driving car technologies will fundamentally change people’s daily lives for the better.” AutoX’s featured partner on fresh produce is e-commerce company GrubMarket.com, which is one of the key partners fulfilling the grocery orders. GrubMarket sources organic and healthy food directly from

“We’re very excited to launch the first autonomous grocery delivery and mobile store service in the heart of Silicon Valley with self-driving vehicles on the road,” said AutoX Founder and CEO Jianxiong Xiao, who has a PhD from MIT Computer Science and Artificial Intelligence Lab and is a pioneer in the research field of 3D computer vision and robotics. “It’s the first step of our mission to democratize autonomy

producers and offers fresh food at the lowest cost to popular retail stores such as Whole Foods, Blue Apron, Hello Fresh and Chipotle. “AutoX is a true innovator in the autonomous driving industry, as evidenced by their pioneering self-driving delivery vehicle,” said GrubMarket CEO Mike Xu. “We are thrilled to combine the fresh and affordable grocery experience of GrubMarket with the ingenuity

“You can order goods from an app and get them delivered by a self-driving vehicle. Or, our self-driving car brings a shelf of goods to you, and you can select and purchase onsite in front of your house.” — Jewel Li

TN DOT Commissioner Talks Autonomous Vehicles by Matt Masters, Lebanon Democrat

Tennessee Department of Transportation Commissioner John Schroer spoke about the coming revolution of autonomous vehicles August 23 at the Lebanon-Wilson County Chamber of Commerce’s Lunch and Learn event at Five Oaks Golf & Country Club in Lebanon. Gov. Bill Haslam appointed Schroer the 29th TDOT commissioner. Schroer is also former mayor of Franklin. He spoke to a packed room of about 70 people with a presentation on the future of transportation and more specifically, the coming revolution of autonomous vehicles that will operate almost completely free of human operators with the goal of safer, cheaper and more efficient forms of transportation. “Those cars are going to be available in the next two or three years in our country,” Schroer said. “You’re not going to be able to go buy a Ford Escort or whatever they’re selling because those cars will be for their autonomous fleet. You won’t probably buy autonomous vehicles, and the reason being is because [of] 4

the way insurance is working and the way the national government is talking about autonomous vehicles. They’re making the car producers— the manufacturers—insure that vehi-

Tennessee Department of Transportation Commissioner John Schroer spoke about the coming revolution of autonomous vehicles August 23 at the Lebanon-Wilson County Chamber of Commerce’s Lunch and Learn event at Five Oaks Golf & Country Club in Lebanon. Credit: Matt Masters

cle, so you won’t have to have [car] insurance. They’re going to make sure they maintain them, they’re in control of them and everything is working on them because ultimately it’s the technology that’s doing the driving. “So we’re going to belong to the services, the Ford service or the

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

from the L4 autonomous driving crowd is its emphasis on inexpensive but high-resolution cameras as the primary sensor, rather than expensive LiDAR laser arrays and other costly sensors. AutoX’s high resolution camera sensing enables the AI to safely detect small objects, such as kids and pets, and see farther ahead than other autonomous driving technologies that heavily rely on LiDAR. “Highest safety and lowest cost; this is where our key technology lies,” said Jianxiong. With a diverse team of research minds from the likes of MIT, Stanford, CMU and AutoX is launching a grocery delivery and mobile store Berkeley, along with engipilot in San Jose, CA. Credit: Business Wire neering talent from Google, “We are enabling two shopping Apple, Microsoft, Amazon, and Ford, experiences with self-driving cars,” AutoX is determined to make a mark explained AutoX COO Jewel Li. on the autonomous driving industry. AutoX’s grocery delivery and “You can order goods from an app and get them delivered by a self-dri- mobile store pilot will roll out in two ving vehicle. Or, our self-driving car phases: The first pilot is in San Jose, brings a shelf of goods to you, and and phase two will expand the pilot you can select and purchase onsite in west to Mountain View and Palo Alto with more delivery partners joining front of your house.” What sets AutoX’s system apart soon. and delivery capabilities of AutoX. We look forward to providing our customers with even more convenient delivery options.” When the AutoX car arrives, the window rolls down with AutoX’s selections for customers to pick.

General Motors service or the Audi service, and that’s how we will go to and from work. We’ll probably own a car for a while. We’ll use it when we drive to the grocery store or go out on the weekend, but most of the time, we’ll use autonomous vehicles, and as we do that we will start saving lives, and that’s really what this is all about.” Schroer gave an example of New York City from 1900–1913, where the mode of transportation changed from horse and buggy to the automobile in a relatively short timeframe. Schroer said it’s currently in the first five years of a similar revolution that will take about the same amount of time, 13 years, to become fully integrated in society. Schroer cited several numbers and said the average cost to own a car in the United States is between $700– $800, coupled with the near 40,000 highway deaths per year, 94 percent of which are caused by human error. Schroer said the goal of TDOT is to make sure government investments are compatible with the future of autonomous vehicles. He said safety is the main concern with any efforts to which TDOT commits.

Schroer also promoted a hightechnology corridor between Murfreesboro and Nashville that will act as a pilot program to implement a variety of technologies to make travel safer and more efficient. “We’re putting every type of technology available to us in that corridor of I-24 and Murfreesboro Road, which will include [dedicated shortrange communications] units that will receive and transmit information from the cars and to the cars. We’ll have traffic-signal coordination on Murfreesboro Roads, dynamic message boards telling drivers what to do and where to go, what speed to drive in order to reduce congestion; so lots of new technology that’s going to be involved,” Schroer said. We thank Lebanon Democrat for reprint permission.

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, 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.

‘Who Pays for What?’ Surveys Illustrate Shops’, Insurers’ Practices for Scanning Vehicles Two recent “Who Pays for What?” surveys offer a glimpse into shops’ and insurers’ practices related to vehicle scanning. The most recent of the quarterly surveys found that of more than 500 shops that responded from across the country, 78 percent said they are paid “always” or “most of the time” to conduct post-repair “health scans” of vehicles by the country’s eighth-largest auto insurers. That’s up significantly from the 64 percent in the same survey a year earlier.

There was an even bigger jump in the percentage of shops reporting they are being paid regularly for prerepair vehicle scans. Though the percentage being paid regularly is a bit lower (71 percent) than those reporting being paid for post-repair scans, it is still up 20 percentage points over a year earlier.

supplies, is open throughout October. Shops can go to https://www.crash network.com/collisionadvice to take the current survey before Nov. 1. Last spring’s survey found that more than half of shops say they conduct scanning in-house, using their own equipment. Of those, about 1 in 4 charge a flat fee, and just over 40 percent charge one labor hour (or less) at a mechanical labor rate. The remaining 35 percent of shops conducting scanning in-house were all over the map—some charging up to two hours at a body labor rate, some charging more than one hour at mechanical labor rate, a few not charging at all and some saying the charges vary by vehicle. That particular “Who Pays” survey focused on “not-included” body repair operations. It found, for example, that compared to the same survey in 2016, more shops are seeking (and receiving) payment for the notincluded process of duplicating the OEM texture of seam-sealer. “Although the labor to apply seam sealer on a welded-on or bolted-

Most shops conduct vehicle scanning in-house, using their own equipment, according to a “Who Pays for What?” survey earlier this year; almost 30 percent use a remote scanning service, but less than 3 percent said they do not scan vehicles at all

A “Who Pays for What?” survey earlier this past spring found that fewer than 3 percent of shops said they are not scanning vehicles at all. There are four “Who Pays for What?” surveys per year, each focusing on different aspects of the collision repair process. The surveys are conducted by CRASH Network and Mike Anderson of Collision Advice. The current survey, which asks shops about their billing practices—and insurer payment practices—related to aluminum repair and various shop 6

on part may be included (depending on which estimating system you use), the additional labor required to match the OEM appearance is not included and can be very time-consuming for the technician,” Anderson said. Two years ago, more than 50 percent of shops surveyed said they had never charged any of the eight largest national insurers for the additional labor time to match the OEM texture of seam-sealer. The same survey this year showed that number has dropped to about 43–46 percent,

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

meaning more shops are charging for this procedure. Similarly, only 34 percent of shops two years ago said that when they did charge for the procedure, they were paid “always” or “most of the time,” but today, even with more shops billing for it, a higher percent-

ing,” Anderson said. Some of the other procedures asked about in the survey were:

• Replace vapor barrier. Anderson said it’s important for shop estimators or repair planners to check OEM procedures to determine whether the vapor

About 60 percent of shops report being paid “always” or “most of the time” for “replace vapor barrier,” yet the “Who Pays for What?” survey also found that nearly one-third of shops say they’ve never billed for that procedure when it was necessary and completed

age (40 percent) say they are paid “always” or “most of the time.” “Educating collision repair professionals is a big part of what these surveys are about, and findings like this indicate to me that that’s happen-

barrier is designated as a one-time use part and must therefore be replaced. “This is common if there are airbag pressure sensors in the door,” he said. In either case, labor to R&I or replace vapor barriers is a not-in-


autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

7


cluded operation that 3 in 5 shops say they are regularly paid for when it is necessary. About one-third of shops, however, haven’t sought to be paid for this labor.

• Labor to gain collision access. “It is very surprising to me that, in most regions of the country, 25 percent of shops have not sought to be paid for this,” Anderson said. “It has been my experience that it is not uncommon for a collision technician to need to cut an access hole to remove components from a damaged door, for example, or to get the latch open when the hood is damaged.” Anderson believes more shops would seek to be compensated for this labor when it is necessary and performed if they knew, as the survey in April found, that 54 percent of shops that bill for this are paid for the procedure always or most of the time. • Clean up old urethane. When glass is removed, there’s often labor required to remove or level the old urethane left behind. The “Who Pays” survey found that more than one-third (37 percent) of shops who bill for it

8

said they are paid always or most of the time for this procedure when it is necessary, yet more than half of shops have not sought payment for it. Four out of five shops that participated in the “Who Pays for What?” survey series reported that they have

are required as part of the repair. About half of participating shops (46 percent) also said they have shared the survey results with insurance representatives, and more than 1 in 10 have occasionally shown the results to vehicle owners. Others have

Of the eight insurers asked about in each “Who Pays for What?” survey, six are more likely to pay their DRP shops for the “replace vapor barrier” procedure, but Progressive and GEICO tend to more regularly pay shops outside their DRP for it

been able to use the surveys and the results to improve their business. Most (about 75 percent) said they use the surveys as a regular reminder of procedures that are “not-included” in the estimating systems and to train their staff about “not-included” procedures they could be charging for when they

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

even shared the results with state regulators. The surveys, now in their fourth year, have consistently indicated that whether or not a shop gets paid for various procedures depends largely on whether the shop includes the item on estimates or invoices. One

independent shop owner from New York confirmed this. “I was an insurance company staff adjuster for over 20 years, and as a staff adjuster you were instructed not to give if the shop doesn’t ask for it,” he commented with his survey responses. Shops can take the current “Who Pays for What?” survey (or sign up to be notified about future surveys) at www.crashnetwork.com /collisionadvice. The four different surveys, conducted at one per quarter, each take about 15–25 minutes, and Anderson said they should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Individual responses are not released in any way; only cumulative data is released. On the website, shops also can download the results of previous surveys, reports that break the findings down by region, by insurer and by DRP vs. non-DRP. The reports also include analyses and resources to help shops better understand and use the information presented.


Continued from Cover

IN Road Rage

crashes accounted for about 10 percent of all fatal crashes in the state that year, according to the report. Auto Insurance Center says it’s an industry-driven news and information site that covers all things automotive. The study cites statistics from the National Highway Traffic Safety Administration’s Fatality Analysis Reporting System. After Indiana, Colorado was second on the list with 53 fatal crashes involving road rage and aggressive driving, about 9.5 percent of all fatal crashes in the state that year. South Carolina and Alabama each had 64 such crashes, about 6.8 percent, and Connecticut had 16 such crashes, or 5.7 percent. Wisconsin’s 22 crashes accounted for 4 percent. Will T. Wingfield, communications director at the Indiana Criminal Justice Institute, said the Indiana cases in the study are based on crash reports and likely wouldn’t include details such as physical altercations if there were no crashes.

Details involving such physical violence are covered in separate crime reports, he said. Fort Wayne Police Lt. Tony Maze and Ron Galaviz, public information officer with the Indiana State Police at Fort Wayne, agreed. In August, Brandon Cook was charged with involuntary manslaughter after he allegedly punched Orlando Fernandez, 60, on U.S. 30 near U.S. 33 on Fort Wayne’s northwest side August 8. Both men had gotten out of their vehicles after Fernandez “brake checked” Cook, police said. The coroner said Fernandez died from heart failure and ruled his death a homicide. Police called the incident road rage, but Wingfield and Maze said this incident likely wouldn’t have been included in Auto Insurance Center’s study because there was no crash. Road rage or not, “aggressive driving is a problem,” Wingfield said. “Road rage happens after aggressive driving.” Following too closely, improper lane changing, failure to yield and excessive speed are among aggressive driving behaviors and major See IN Road Rage, Page 10

Haunting Images of Cars Caught in the CA Wildfires In October of 2017, wildfires ripped through Northern California, destroying everything in its path with 8,900 structures destroyed, 44 deaths and more than $3 billion in losses.

More than 100,000 people were displaced from their homes, and countless numbers of people have lost absolutely everything. When the fires and smoke eventually cleared, they revealed a cemetery of a wide range of vehicles across the land. Art Out of Ashes felt one way they could communicate the people’s losses was through photographs of these vehicles. While the collective of these vehicles represents the loss felt by all those affected by the fires, each unique vehicle represents how each individual's losses

are different. Art Out of Ashes has captured the souls of these vehicles through the incredible lens of talented photographer Scott Maddern and has turned the photos into artwork for you to help raise money for the victims still struggling. You can support the victims of the wildfires by purchasing tickets to the Art Out of Ashes dinner and auction on Saturday, Oct. 13 at St. Francis Winery & Vineyard, purchasing their photos or purchasing their photobook. They are looking for several volunteers who share their passion of helping the victims of the fires. They are also seeking donations to extend the fundraising efforts beyond the artwork. Vistit www.artoutofashes.org to donate or to get involved. The proceeds will go to benefit the victims of the fires through their partnership with the Sonoma County Resilience Fund to address the mid-to-long-term needs of those impacted by these devastating fires.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Butler Body Shop, Broadheads & Bullets in Coldwater, MI, Showcase Products

on the project. “We get the best car we can for Butler Body Shop and Broadheads & the budget,” Jeff said. With all the advertisement and Bullets, north of Coldwater, MI, are patrons dropping in to admire the car, owned by Jeff and Lori Butler. each hoping to win from WRKR, Jeff displayed other prize vehicles they had restored. Most notably were two owned by Ted Nugent—a 1966 black Ford Bronco that Jeff built from the frame up and Nugent’s zebrapainted Bronco, which Jeff did not have a hand in. Also on display was a Ford orange beast worth $250,000. It was built by Jeff Butler, owner of Butler Body Shop, with the 1974 BDS Suspension, a division Chevy Laguna for the 107.7 Rocker Classic Car. Credit: of Sports Trucks USA of Rosalie Currier photo Coldwater, and was painted On August 16, the pair held an by Butler. The truck took home top honors open house highlighting both businesses. The 107.7 Rocker Classic Car —a 1974 Chevy Laguna—was on Don’t Miss the Weekly display at Butler Body Shop. Jeff and his crew provided the body and Industry NEWS interior work for the vehicle. Napa Your Shop Needs. Auto Parts of Kalamazoo and Boland Tire of Sturgis were also in Sign Up Today! by Rosalie Currier, The Daily Reporter

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

from Ford at the 2017 SEMA show in Las Vagas. At Broadhead & Bullets, Lori and her staff showed off all the sporting goods the store offers; nearly anything needed for hunting, archery and fishing, along with guns and ammunition. “We buy and sell guns and offer consignments,” Lori said. They also have an indoor archery range where leagues play. Lori opened the store when the Gun Rack, which rented space from Butler, closed. About that time, Gander Mountain also went out of business. Because they had the space, the Butlers expanded into another area of their interests. “It’s going well,” Lori said. “We have loyal customers.” We thank The Daily Reporter for reprint permission.

AUTOBODY

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IN Road Rage

causes of fatal crashes, Wingfield and the officers said. The Auto Insurance Center report said there could be differences in how states report and define aggressive driving. California, for example, had only one fatal crash in 2016 that involved road rage or aggressive driving, the report said. Twenty-one states had no crashes related to road rage or aggressive driving, it said. Galaviz said although the report was “surprising and disappointing,” it showed how aggressive Indiana is in investigating and reporting such crashes. “As an agency, we take pride in doing a thorough investigation,” he said of the state police. To see the Auto Insurance Center report, go to https://www.autoinsurancecenter.com/american-road-ra ge.htm We thank The Journal Gazette, Fort Wayne, IN for reprint permission.


autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Automotive Women’s Alliance Foundation Swings “Fore” Scholarships in MI by Chasidy Rae Sisk

On August 14, the Automotive Women’s Alliance Foundation (AWAF) held its 23rd annual Swinging “Fore” Scholarships Golf Outing fundraiser at the Indianwood Golf and Country Club in Lake Orion, MI.

Automotive industry professionals had a great time golfing and raising money for AWAF scholarships during the annual golf tournament

According to Kim Ziomek, AWAF secretary and co-chair for the AWAF golf event and fundraiser for scholarships, and Sherry Irwin, AWAF professional development and cochair for the AWAF golf event and fundraiser for scholarships, “Mother Nature collaborated with over 115 golfers to provide a sunny but breezy day for golf. All the participants enjoyed the course and had the oppor-

tunity to win hole-in-ones, longest drive contests and closest to the pin.” In addition to using the event as an opportunity to teach attendees about the association, AWAF presented four $2,500 scholarships from AWAF, Magna, and Warner Norcross & Judd. Ziomek explained, “The AWAF Annual Fundraiser focuses on raising funds for scholarships that support women who are either entering into or continuing their education in the automotive arena. Since 2001, AWAF has awarded close to $400,000 in scholarships to over 155 students. In addition, the event provides the opportunity for women and men in automotive to network with other professionals that they do not have the opportunity to meet in their everyday business activities. “First and foremost, the event was successful in raising funds to support our AWAF scholarship program. In addition, it was both a fun and challenging opportunity to enhance participants’ golf games and to have meaningful business conversations with colleagues who share similar career paths and challenges for career growth. The attendees

FCA US Invests $30 Million in New Autonomous Driving Facility in MI FCA US announced Sept. 5 that it has invested more than $30 million in its Chelsea Proving Grounds in southeast Michigan to further development and testing of autonomous vehicle and advanced safety technologies. The all-new facility, which begins testing programs in September, features a dedicated autonomous highway-speed track, 35-acre safety feature evaluation area and a hightech command center. “The all-new facility at Chelsea Proving Grounds will help support and enable the successful rollout of the company’s five-year plan laid out earlier this year,” said Mike Manley, chief executive officer, Fiat Chrysler Automobiles and chief operating officer, NAFTA region. “Our ability to test for autonomous and advanced safety technologies enables FCA to offer our customers the features they want across our brand portfolio.” The facility will allow for testing of various levels of autonomy and enables the company to evaluate FCA vehicles using test 12

protocols from third parties, such as the Insurance Institute for Highway Safety (IIHS), U.S. New Car Assessment Program (NCAP) and European New Car Assessment Program (EuroNCAP), plus additional automatic electronic brake test simulations. The autonomous highwayspeed track offers the capability to develop autonomous vehicle systems under a wide range of challenging environments, including obstacles, tunnels, varying road lighting conditions and interstatestyle exit and entrance ramps. The command center covers more than 6,500 square feet and houses computer equipment vital to GPS capability and test vehicle communication. The ADAS facility accommodates testing of advanced iterations of automatic emergency braking and automated parking technologies on a new 35-acre paved test facility.

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

games and personal pampering baskets—to name just a few of the prizes. All proceeds from our auction go to the AWAF scholarship fund. “[AWAF events are] important as a means to enable and continue professional social opportunities to expand their network and grow rapport with other professionals that they do not meet in their everyday business. AWAF received some very useful feedback on the location, food and course and will utilize those comments as we focus on continuous improvement for 2019. We are energized to More than 115 golfers attended AWAF’s Swinging “Fore” build alliances, grow memScholarships Fundraiser, where four scholarships were bership and attract sponsors awarded to worthy students to continue this progress “In addition, AWAF offered the and momentum! Come join us and see ‘first ever’ electronic bidding on how much fun you can have expanding great items like jewelry from MB your career experiences, socializing Jewelers in Bloomfield Hills, sports with other professionals like yourself memorabilia from DC Sports, a night and even participating in our coaching out on the town and bed & breakfast or mentoring programs.” packages from trendy, new Detroitarea hotels, rounds of golf at various For more information on AWAF and prestigious country clubs in the De- future events, visit AWAFoundation troit area, events at various sports .org. liked the event, which was hosted for the first time at Indianwood. We played the Old Course, which is a very challenging track that has hosted PGA and LPGA events throughout the years.


autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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MI CARSTAR Locations Join NABC To Highlight Distracted Driving Awareness The CARSTAR locations throughout Western Michigan teamed up with the National Auto Body Council (NABC) to promote safe driving during August and September as part of the national It Can Wait campaign. The participating locations include CARSTAR Rockford, CARSTAR Star Collision, CARSTAR 76, CARSTAR Kalamazoo, CARSTAR Portage, CARSTAR Impact of Cascade and CARSTAR Auto Care Experts. CARSTAR locations displayed vehicles that were involved in distracted driving accidents—flipped upside down in front of their stores— to provide a very real example of what can happen when a driver is distracted on the road. In addition, CARSTAR took the It Can Wait campaign on the road to local high schools. They staged distracted driving simulations with virtual reality goggles to demonstrate the dangers of texting behind the wheel and share tips on reducing distractions in the car. The owners of the seven CARSTAR locations in Western Michigan want to remind all drivers that

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when they are behind the wheel, they have just one job, and that is to focus on driving. Their goal is to help drivers reduce distractions on the road and get to their destinations safely.

the only guilty parties; the AT&T study also reveals nearly half of commuters (49 percent) admitted to texting while driving—a higher rate than reported by teens. CARSTAR locations in Western Michigan and the National Auto Body Council urged drivers of all ages to act: • Install and use apps that block texts and phone calls when you are behind the wheel

As teens head back to school in August and September every year, dangers increase with daily drives to class, outings to football games and trips to other events with friends in the car. The temptation to take selfies, Instagram and Snapchat in the car and text others during the drive increases as school season goes underway. The National Auto Body Council, a business advocate partner with AT&T’s It Can Wait program, cites survey results showing 97 percent of teens say texting while driving is dangerous—yet alarmingly 43 percent admit to doing so. Teens are not

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

• Reading just one text message keeps your eyes off the road an average of five dangerous seconds

• Take the pledge to end distracted driving at ItCanWait.com— then text NABC to 50555 to reinforce your commitment to the pledge with NABC The CARSTAR owners noted that, as collision repairers, they know all too well the consequences of texting while driving and other distracted driving behaviors. They encourage all young drivers to make a pledge to end distracted driving, keep our eyes on the road and help make our community safer.

AASP-MN Members Enjoy BBQ, Horse Races by Chasidy Rae Sisk

On Wednesday, August 22, AASPMN hosted a fun evening of BBQ and horse races at Canterbury Park in Shakopee, MN. More than 50 people attended. The event began with a presentation on reading a race program, picking a horse and winning money, delivered by association members Brad Schmid and Matt Roop of CBIZ AiA. According to AASP-MN Executive Director Judell Anderson, ““It’s always fun to get together with our members and their families. This was our first time at the horse track, and it made for an exciting and fun evening!”

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ABRA Auto Body & Glass Planning To Construct New Building in Eden Prairie, MN by Patty Dexter, Eden Prairie News

Abra Auto Body & Glass in Eden Prairie, MN, is planning to build a new 18,000-square-foot location in the community. The Eden Prairie City Council approved the first reading of plans on Tuesday, August 21, to construct the new auto body repair facility. The new building would be located on three existing parcels at 13045, 13075 and 13105 Pioneer Trail, just

structed, but eventually all operations are expected to move to the new Pioneer Trail facility. The plans call for removal of existing structures and redeveloping the site for the proposed building.

The Eden Prairie City Center is at 8080 Mitchell Rd. in Eden Prairie, MN. Credit: Patty Dexter

east of the SuperAmerica gas station on the corner of Pioneer Trail and Flying Cloud Drive. Abra Auto Body is at 9020 Aztec Dr. According to the presentation, the two Abra locations may be open and in operation at the same time once the new facility is con-

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“The proposed site plan complies with all city code requirements including building materials, architecture, parking lot design and parking stall count,” an August 21 city report states. The city report said the applicant is requesting that the property be rezoned from commercial to industrial use. The three parcels were guided and zoned for industrial use until 2004, when a request made to

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

rezone the properties for commercial was approved. The City Council has approved two commercial development proposals since that time, but neither has materialized. “This application includes a request to revert the guiding and zoning back to Industrial. The draft 2040 land use plan guides this property for flex service which supports the proposed use for the site,” according to the report. The new Abra building would meet or exceed requirements for architecture and building materials on all building facades. Landscaping for the site and a pedestrian connection to Pioneer Trail to allow a link to the broader trail system are included in the project. The project also includes several sustainable features, including LED lighting for the parking lot, offices and shop area, bike rack installation, native plants and an irrigation system with rain sensors. We thank Eden Prairie News for reprint permission.

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SEMA Show Week Member Buyer Rewards

SEMA members attending the 2018 SEMA Show as buyers have access to the Member Buyer Rewards (MBR) program perks. Just by wearing their MBR cards and lanyards during the SEMA Show, they will be recognized as MBR members, giving them access to the following: ● VIP Taxi Line: Enjoy shorter lines available Tuesday–Friday during select hours.

● Members-Only Lounge: Book meeting rooms, charge your devices, network with other SEMA members, purchase food options and more. ● MBR Lounge: Located inside the Members Lounge–North, this lounge offers MBR members exclusive access to a space to relax and enjoy complimentary refreshments during the SEMA Show. ● MBR cards will be mailed in late October. Be sure to stop by the MBR lounge early to pick up your gift; they will go fast!


Sioux Falls, SD, Auto Body Shops Stay Busy After Hailstorm by Michaela Feldmann, KSFY

Many parts of the region saw some pretty intense storms the night of August 27. Those storms brought hail as big as baseballs in central South Dakota. Along with that severe weather comes damage. “From what I can tell so far, maybe the severest that we’ve seen in Sioux Falls since 2014,” Marv’s Body Shop partner Evan Kindt said. Severe storms rolled through the area the night of August 27. “[It] sounded like the roof was coming off. [I] looked out, and there was a bunch of hail and rain. It was pretty crazy,” Sioux Falls resident Derick Christianson said. On August 28, many were busy checking out the damage. “A lot of the vehicles on our lot are outside. So we took a look at those. Every single one of them has minor to significant hail damage,” Kindt said. Marv’s Body Shop stayed pretty busy August 28 with the increase in business.

“At the rate that it’s coming in and what we’ve talked about this morning, sounds like there’s going to be a lot of damage,” Kindt said. Many of the cars hit by the storm that took place August 27 may not look like they have a lot of damage. Auto body experts said

that if you think your car may have been hit by the hail, the first thing you should do is call your insurance agent. “Nobody asks for this to happen. It’s one of those things that occur. We never know when and where usually,” Kindt said. The work then begins at the auto body shop. “Dropped this off and got an estimate and went and looked at a couple other vehicles to see if

they had any damage,” Christianson said. “We put a light on it like we have here and we circle up the damage so we can show where the dents are at the severity and scope of things,” Kindt said. Kindt said he thinks it will be awhile before most people stop in because it can be hard to notice the damage. “If you just looked at this hood outside at a glance, you maybe would see two or three dents. We get it in here, [and] now just on that half of the hood, I can easily see 25 dents. We haven’t [written] an estimate on it yet, but [there is] $2,000 or $3,000 in damage on this,” Kindt said. Kindt said that while there is a lot of damage to vehicles, he thinks it should be relatively easy to fix because it’s not too severe. We thank KSFY for reprint permission.

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Arrest Made in Wichita, Body Shop Robbery by Staff, KAKE News

Wichita, KS, police arrested two men who allegedly stole two vehicles and tools from a local auto body shop. Officers were called around 9 a.m. Sept. 11 to the report of a burglary at Gerber Collision and Glass in the 5600 block of West Kellogg. Officer Charley Davidson said the investigation led police to a home in the 3700 block of Armstrong, near 37th Street North and Arkansas wher officers arrested 50-year-old Jaime Lambert and 38-year-old Charles Bogguess. The tools and vehicles were recovered as well as a third vehicle, a skid loader and a trailer. Each suspect was booked on multiple counts of possession of stolen property valued at $68,000. Kansas Department of Corrections records show Lambert has prior convictions of burglary, theft, aggravated battery, drug possession and criminal possession of a firearm. Bogguess has prior convictions of aggravated robbery, theft and criminal possession of a firearm. We thank KAKE News for reprint permission.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Apple’s Secretive Self-Driving Car Program Suffers 1st Reported Crash by Ethan Baron, The Mercury News

The first rule in Apple’s self-driving car program called “Project Titan” is you don’t talk about Project Titan. But thanks to California regulations, if a company’s autonomous vehicle gets in a crash on a public road in the state, the company must talk about it in a report to the DMV. After an accident involving an Apple self-driving SUV on August 24 in Sunnyvale, Apple filed such a report, but didn’t say much.

“An Apple test vehicle in autonomous mode was rear-ended while preparing to merge onto Lawrence Expressway South from Kifer Road,” said the Cupertino tech giant’s report to the DMV, which was released by the agency the week of August 26.

Titan remains mostly unclear outside the company. Although CEO Tim Cook suggested in 2017 that the firm was developing self-driving software to be used by car companies, its recent poaching from Tesla of highprofile engineering executive Doug Field was seen as a possible indication that it was aiming to build its own autonomous vehicles. More than 50 technology firms and car makers have permits to test selfdriving vehicles on California public roads. Google spin-off Waymo pioneered the technology and appears to be leading the pack on developing it—albeit with issues. Apple CEO Tim Cook speaks in front of a rendering of the Among autonomous vecompany’s new “spaceship” headquarters during a prodhicle accidents reported to uct launch event March 21, 2016, at Apple in Cupertino, the DMV, rear-enders are CA. Cook said that the next time Apple does a product common, and industry oblaunch event, it will be announced at the new facility. servers have noted these Credit: Karl Mondon, Bay Area News Group crashes appear to be caused Both vehicles sustained damage, frequently by the robot cars driving in with the Apple vehicle’s described as a more hesitant fashion than vehicles “moderate,” but no injuries were re- driven by humans. “Autonomous cars make other ported. The ultimate goal of Project drivers worse,” the Wall Street JourApple’s self-driving Lexus RX 450h SUV was crawling along at less than a mile per hour on a clear day around 3 p.m., “waiting for a safe gap to complete the merge,” when a Nissan Leaf smashed into its back end, according to the report.

Flood-Damaged Cars Could End Up for Sale in WI by Tony Galli, WKOW

Madison, WI, customers are being encouraged to be aware that cars, trucks and SUVs damaged in flood waters could be deemed total losses while still being made available for sale. American Family Insurance Claims Manager Mark Follmann said the vast majority of policyholders’ approximately 250 cars damaged in Madison-area flooding have been declared total losses by the insurer. In Cross Plains at the Kalscheur Dodge-Chrysler-Ram dealership, owner Dean Kalscheur said 80 of his inventory of 100 vehicles were flood-damaged. He said they were on his car lot when flash flooding swamped the property. Kalscheur estimates his losses at $1 million. “I think we’ll survive it,” Kalscheur said. “We’ve been around a long time. We did have good insurance, flood insurance.” Kalscheur said that even though most of his inventory has been deemed a total loss, most vehicles still run and could end up at auto auctions, and later, for sale to 18

the general public. “If the damage exceeds 70 percent of what the vehicle is worth, the vehicle is stamped as a salvage vehicle,” Follmann said of a state requirement on the vehicle title. “For a flood-damaged vehicle, the same thing happens.”

Wisconsin Department of Transportation Dealer & Agent Section Chief Michael Domke said prospective car buyers should go beyond the vehicle title after Dane County’s major flood. “Look at a vehicle for signs it was submerged,” Domke said. He recommends checking for water marks in particular under the car’s dashboard and in its trunk. Domke said regulatory and auto industry standards helped limit the problem of suspect vehicles hitting the car market after Hurricanes Katrina and Sandy. We thank WKOW for reprint permission.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

nal said in a 2015 op-ed, when the hit-from-behind issue started to become apparent. “A driver in Google’s neighborhood … reported ‘Google cars drive like your grandma.’” Apple has significantly ramped up its public roads testing program for autonomous vehicles in California. After having permits to test only three vehicles last year, by this May it had 55, putting it second behind GM—with 104 permits—for number of test cars authorized to drive on the state’s public roads, this news organization reported. Unlike Waymo, which has been public about many aspects of its autonomous vehicle program, Apple has kept its program largely secret, with bits of information trickling out through public records of government agencies. We thank The Mercury News for reprint permission.

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Continued from Cover

National Honors

Rod d’Elegance Award. In July, it received a Pro-Pic Award in Des Moines, IA. One week later, at the Goodguys Nationals in Columbus, OH, it was chosen to be in the top five for Street Rod of the Year. On August 1, the car was displayed, along with 41 other cars, in the lobby of the Louisville, KY, Convention Center, where the National Street Rod Association holds its contest and chooses the Builder of the Year. At the banquet, it was announced that Humph-rey’s Dale Boesch was the 2018 Builder of the Year. The car will be featured in Rodding USA magazine with an eightpage layout. A photo shoot was done in a studio for the magazine. Wheel Hub magazine, a new high-end printed book, is coming to Humphrey for a photo shoot. The next stop for the car is Nov. 1 in Las Vegas, where it will be displayed in the Axalta Paint display at

the 2018 SEMA Show, a worldwide automotive trade show. It will compete for the Mothers Shine Award, the Goodguys Gold Brock Award and the Battle of the Builders, the best car show of the SEMA show. The Battle of the Builders will air on the Velocity channel in January. “Cars of this design and quality only happen when there is a group effort,” Boesch said. He gave credit to “my wife, Joan; the owners, Dana and Marge Elrod; and [my] crew, Daniel McLain, Jim Gronenthal and Jordan Schaecher.” From start to finish, the car was in the shop for 11 years. We thank Norfolk Daily News for reprint permission.

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CARSTAR Bridgeton, Wentzville Open in MO CARSTAR recently announced the opening of CARSTAR Bridgeton in Bridgeton, MO, as well as CARSTAR Wentzville in Wentzville, MO. Jon Parmentier, owner of both CARSTAR Bridgeton and CARSTAR Wentzville, is a thirdgeneration repair center owner. Starting his career working at his grandfather’s collision repair facility by helping him with whatever the job of the day was, Parmentier quickly grew an affinity for the industry. Parmentier began his training when he was 19 and worked for his grandfather until 2005, when he bought his first collision repair location. “Having been in the industry for so long, I have seen all kinds of industry changes, but it got to a point where I could not keep going it alone, and I needed the support of a larger network to compete in my market,” said Parmentier. “I went to the CARSTAR Discovery Day in Charlotte to learn more about the organization, and it was a breath of fresh air. Knowing that there was a company out there available to help people with questions about their daily tasks in the shop was encour22

aging and ultimately why we joined CARSTAR—for this additional support.” CARSTAR Bridgeton is a 3,500-square-foot facility, and CARSTAR Wentzville is an 11,500square-foot facility. Both locations are fully equipped to provide expert collision repairs and are working to become I-CAR Gold-certified. “Franchise partners like Jon, who have been in the industry for decades, understand that the industry shift we are currently experiencing is different than past changes,” said Michael Macaluso, president, CARSTAR. “The CARSTAR network provides added support for independent owners who can continue doing what they love in the communities they live and work in.” Having grown up in the area, Parmentier is committed to supporting the local school districts, police department and chamber of commerce, Parmentier is incredibly active in his region. Helping people however he can, contributing to charitable causes and providing premier collision repairs, Parmentier is the personification of generosity.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

AASP-MO Gateway Meeting Focuses on OEM Certifications

According to AASP-MO Executive Director Ron Reiling, “It On Wednesday, August 15, the Gate- was a great meeting on OEM certiway Collision Chapter of AASP-MO fications, and it went well with over hosted a meeting at Trailhead Brew- 40 attendees. Tim Reiner shared ing Company in St. Charles, MO, tons of great information.” The meeting began with dinwhich was sponsored by Mitchell. ner, which was paired with a meet and greet, followed by the educational seminar and then social time for members to network. Reiling shared, “It was very well-received, and many took advantage of the opportunity to network and catch up with their peers prior to and after Tim’s presentation. Association meetAASP-MO’s Gateway Collision Chapter attracted more ings and events are the than 40 attendees to its August meeting on OEM best way to network with certifications like-minded professionThe topic of the meeting was als and to stay on top of the fastest“The Who, What and Why of OEM changing industry in the world.” Certifications: Future or Fad?” and presented by Tim Reiner, director For more information on the associof OEM Solutions for Mitchell In- ation and future events, visit www .aasp-mo.org. ternational. by Chasidy Rae Sisk


autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Guy & Sons Auto Rebuilders Closes Shop After 56 Years in Chicago by Eva Hofmann, Gazette Chicago

Guy & Sons Auto Rebuilders, formerly at 1050 W. Van Buren St. in Chicago, IL, officially closed its garage doors on Labor Day. A highly respected business in the community, the shop was started in 1962 by the late Guy Pascale. “Mom and Dad moved to Chicago in 1959 from Erie, Pennsylvania,” said Guy’s elder son, Dan Pascale, who joined the family business in 1974. “Dad worked for Earl Scheib.” In those days, the Earl Scheib franchises specialized in repainting automobiles and repairing them after collisions. They were known for the catchphrase, “We’ll paint any car, any color, for $29.95.” Guy was responsible for opening all the Earl Scheib shops in Chicago. “Dad wanted to go out and do his own thing, so in 1962 he rented a little three-car shop,” said Dan. “It was a horse barn that was converted to a garage.” That shop was located behind Roosevelt Road and Miller Street,

where Guy’s Auto Rebuilders quickly earned its reputation for doing a good job at a fair price. Dan would come in on Saturdays and days off from school to learn how to paint. “His landlord was Roosevelt Glass, and that was a nice tie-in,” Dan continued. “And there was a used car lot on Miller Street and Roosevelt Road. Dad bought these old junkers

and would paint them, fix them up and put them on the lot, so off the bat he had an instant clientele and developed relationships with some of the insurance companies.” Dan’s brother, Tom Pascale, remembers being in that shop at age 6. “I remember my dad bringing me down and sitting me on a stool with this propane heater, and he actually had charcoal burning,” said Tom. He recalled working weekends starting at age 14. Neither brother actually had planned to work in the family business. Dan joined the U.S. Air Force after graduating high school in 1969. “I loved it,” he said. “I met my wife in the Air Force, and I wanted to stay after three years. But Dad got sick and needed an operation, and he wanted me back in the shop. And that’s how I came back, and it ran Dan Pascale and Tom Pascale, who took over the family off from there.” business from their father, were known for making sure Younger brother Tom Guy & Sons personnel did superior work on cars. Credit: studied painting and sculpChristopher Valentino

ture at Triton College for two years after high school but ultimately came back to join the business. “It was easy to fall into working on vehicles,” said Tom. “I watched my dad do it, so I just did it.”

Van Buren Move In the early ‘70s, the Pascales moved the shop to its West Van Buren street location, where it remained until closing. There, Guy and his wife, Pearl, renovated the three-story building and built an apartment above the shop, where they lived from 1973 until they passed away in 2010. “They got to experience all of what the Near West Side was,” Dan said. “Nobody lived there under the Eisenhower at the time. Everyone was in the Little Italy area. They loved going to Fontano’s and Pompei Bakery, loved Greektown. Café Bohemia was the ultimate treat on a Saturday night.” Guy and Pearl got a chance to enjoy some quality time in Florida for 12 to 15 years after they retired. “It was beautiful for them,” said

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Dan. “We took care of everything. When they started getting older and not feeling so good, they came back. Dad got diagnosed with leukemia, prostate cancer, COPD, and was on oxygen. It never slowed him down. He worked in the office. He was always there.” “Dad was a real Near West Side pioneer,” added Tom. “He did everything. He worked with the plumber and put in the sewer, and he put in all the light fixtures. It didn’t matter what the job was—he just did it, and we just came along for the ride.” Longtime customers also remember the elder Pascale. “I knew Guy for over 55 years, and he was a great man,” said Mario “Skippy” DiPaolo of Mario’s Italian Lemonade. “He was a very fair businessman and did great work on cars. Like father, like sons; the sons took over and kept the same quality of excellent work as their father had before them. “In my opinion, they were the very best body and paint shop in the city and suburbs by far. They were also a great source of information and were always available to help if I

ever had any questions.” Guy & Sons has fixed cars for the likes of Jerry Reinsdorf, Ernie Banks and Keith Magnuson, to name a few luminaries. There were plenty of other longtime customers from the neighborhood as well. ‘Best Body Shop’ According to George Lemperis, owner of Palace Grill, Guy & Sons is “unequivocally the best body shop in the city of Chicago,” he said. “I’ve known them for 40 years—I knew their father. They’re two of the best guys you’d ever want to meet. It’s Chicago’s loss that they’re leaving. In fact, I’m taking my car there tomorrow, and it’s one of the last jobs they’re doing. They’re staying open for me.” Lemperis isn’t sure who will repair his cars in the future. “I don’t want anyone else touching my car,” he said. Of course, this might be a good time for Guy & Sons to call it quits after all those long hours in the shop. “The work ethic was 6 a.m. to 6 p.m., then go to dinner and paint a car after dinner,” said Tom. “It was con-

stant 12-hour days, and you didn’t get two weeks in a row if you went on vacation. We used to call Saturdays eight-hour half days.” Now that vehicles are becoming more high tech, the shop would need some serious upgrading, according to Tom. “We’re the last of a ‘70s-era shop,” he said. “The repair side of it has changed for us because we don’t have an electronic technician. We’ve worked on some fancy cars, but it was always about mainstream collision. These days, you have to scan a car before you work on it.” Another challenge in the industry, according to Dan, is dealing with insurance companies. “We have to take a shot at the insurance companies who are trying to squeeze the independent auto repair shop,” said Dan. “They’re raising rates on policies and premiums and cutting back on fair prices to fix the cars. So this is a good time to exit because I’ve had enough. State Farm was just there today and told us more things are just going to get worse.” Customers are not happy about the move.

“There is nobody that compares to them,” said DiPaolo. “We will all just have to drive a lot more cautiously … because we will definitely have a hard time finding a good auto body shop that will produce the same quality of workmanship as they did. We will miss their excellent work, but mostly we will also miss them as friends. They were always friendly and so helpful, and you were always completely satisfied with their work. We wish them all the very best and hope they enjoy their retirement years.” Tom is not sure what will come next for him, and Dan’s short-term plans include cleaning out the Guy & Sons premises. Dan noted that his father, Guy, “did what he wanted to do and he wanted to do it for us. This was his plan to make sure his kids got taken care of. I’m hoping that the sale will benefit my kids and Tom’s kids. That’s what we live for. It’s sad to say goodbye to so many of our customers. They’ve been stopping by. It’s almost like an old rock star going on a farewell tour.” We thank Gazette Chicago for reprint permission.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Sterling Autobody Owner Hangs Up Tools, Spray Gun in Wintersville, OH by Paul Giannamore, Herald-Star

It’s time to hang up the tools and the spray gun for Spike Sterling, who, at age 71, retired in September from the business he and his wife, Christine, built from the ground up beginning in 1987. Sterling Autobody was sold to a new owner and eventually will move from the Sterlings’ garages next to their home on Bantam Ridge Court. The Sterlings’ last day in the shop was Sept. 28. They’ve done little advertising through the years, relying on wordof-mouth to build the business. They are thanking their customers who made the business what it is today. Sterling said he always had an interest in cars and motorcycles. “When I was 12, I built Whizzer motorcycles and painted gas tanks,” he said. (Whizzers are motorcycle engines fitted to a bicycle to create a small motorcycle.) “My dad always worked on cars, and I followed in his footsteps. He was a jeweler and he wanted me to be a jeweler. I couldn’t see that stuff. It was too little.” Sterling said he started building hot rods in high school and continues to build them today. He started drag racing when he was 15, without a driver’s license, in his father’s Studebaker. “He didn’t know it at the time,” Sterling said. Sterling started his first job at Reichart’s in Wheeling as an overthe-road TV repairman. “Remember when TVs still had tubes in them and the repairman would come to your house?” he asked. Eventually, he worked for 15 years underground in the Franklin Mine as a mechanic and welder. When the mine closed and he figured it wouldn’t be coming back, he moved to Arizona to work in a friend’s body shop, but he was spending more to live there than he was earning. Christine told him it was time to come home. “We started the shop here in a two-car garage and built it to what it is now,” he said. His son, Cale, is the painter, who, like his father, started working on cars at age 12. 26

“He’s 48 now,” Sterling said. They’ve had employees who have worked for them for years, some for more than 30, and four employees retired from the shop.

car. And, even in Florida, he’s known by his neighbors for his body work. A neighbor with a Porsche racer asked him to repair and paint the car just before the Sterlings were ready to head back north. He told her to mask off the car and have it jacked up in the driveway, and he painted it in the morning before leaving for home. The downside of the pony-tailed Sterling being well-known is that he is something of a local celebrity, unable to go anywhere in town without being Spike and Christine Sterling sit in the office of Sterling stopped by friends and cusAutobody on Bantam Ridge Court, Wintersville, OH, in front tomers—and there are lots of an arrow stating “South for the Winter.” Spike Sterling retired from the business he established in 1987. He of them. earned acclaim from his customers for his service and for “We have to go out of helping the community town to get dinner. OtherChristine worked at Trinity wise, there are five people who want Health System and was director of their cars fixed,” he said. Christine environmental technology. At Ster- said they were waiting to get on a ling’s, she did the book work and ride at Disney World once and somemanaged the shop. She noted they’ve one yelled, “Hey, Spike!” used accountant Dana Joyce for taxes “It happened to us in Mexico, for years, and recalled him telling too,” Sterling added. her, “If you’re paying taxes, you’re making money.” The Sterlings are known for community generosity, helping others and organizations. “We helped Big Red, the sheriff’s department and the Little League; we didn’t even want a sign put out,” Sterling said. Customers would regularly stop by to talk and eat popcorn (“Putting in the popcorn machine was the best thing I’ve ever done,” Sterling said) and when they needed some easy, small thing done, he did it on the spot at no charge. The returns for kindness were thank-you cards, cookies, cakes, pies and the occasional sixpack. “I feel sorry for older ladies. They get taken advantage of. If I do something free for them one time, they tell 50 friends and you get at least five new customers out of that,” he said. Christine said retirement is bittersweet, but it’s time. “It has to end sometime. He can’t work his whole life,” she said. They’ll travel as snowbirds and Spike will keep working on street rods for fun. He’s sold his drag race

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Christine said, “They call him the mayor when we go camping. He can talk with anybody. It’s what you have to do to be good with customers and talk with them.” He recalls the loss of his friend, Wintersville businessman Clarence West. “I did his limos for years. When he died, a little bit of me went with that. I missed doing them, and we’d go to concerts and other events,” he said. Sterling said all his employees got jobs when the shop was sold and the new ownership will be working out of the Bantam Ridge Court shop for a while before moving. “It won’t be Sterling’s. We sold everything but our garages,” he said. We thank Herald-Star for reprint permission.

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Continued from Cover

Overtime Laws

time law, an employee in that state will receive the state’s minimum wage while being paid overtime under federal provisions. Farrington stressed, “Employers must be familiar with the state laws in every jurisdiction where they operate.” Although overtime is often viewed as a reward for an employee who works a long week, Farrington explained, “It is actually a penalty on the employer for working an employee over 40 hours. Overtime is paid out at one and a half times the employee’s regular rate of pay for hours worked over 40 hours in a workweek. The primary purpose of overtime is to spread employment because the government wants you to work more people for fewer hours. It is meant to be punitive, cost you money and be difficult to comply with.” Clarifying that a fundamental principle of overtime is that “each workweek stands alone,” Farrington defined a workweek as a “fixed and

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recurring period” of seven consecutive 24-hour days that may not be altered unless it is being changed permanently. However, daily overtime is not required under FLSA, which means an employer can schedule employees within the workweek as they see fit, moving hours around to minimize overtime. Averaging workweeks is forbidden, even if the employer pays bi-weekly. For example, an employee who works 48 hours one week and 32 hours the next is still entitled to eight hours of overtime for that first week. Paid time off does not count toward overtime. If an employee utilizes eight hours of vacation, sick or holiday pay, they will be paid for 48 hours, but since only 40 hours were actually worked, there is no overtime due. “Overtime is based on time worked. Only hours that are actually worked beyond 40 hours count toward overtime,” Farrington said. Overtime must also be paid at an employee’s regular rate, which is the employee’s total remuneration for employment within the workweek divided by the total number of

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

hours worked. This means that overtime must be paid on the employee’s base rate and all compensation, including bonuses and commissions. Farrington explained how to calculate overtime on bonuses and commissions on a monthly or quarterly basis. Hours worked is defined as all time the employee is required to be on the employer’s premises, all time the employee is required to be at a prescribed work site and all time the employee spends in activities that benefit the employer. Because management has the total power to control, schedule and require the hours worked, it is therefore completely management’s responsibility to record and pay for hours worked, meaning an employer must pay for overtime even if it is unauthorized or unknown. “Make sure it’s a proactive management responsibility to see that employees record and are paid for hours worked,” Farrington stressed. Meals are not required by FLSA, but if they are given, they do not need to be paid as long as these three conditions are met: the break is long enough for the employee to consume

a meal or use the time for their own purposes (typically 30 minutes), the break is uninterrupted and the employee is relieved from their duties during the break. It is important to note that many states have requirements pertaining to lunch breaks. While short 15-minute breaks are not required by FLSA, they must be treated as paid work time when given. Noting that there is an overtime exemption for most employees paid on flat rate hours, Farrington explained that overtime is not required for “salesmen, parts men and mechanics” employed by a “dealership,” which is defined as an establishment that derives over 50 percent of its gross revenue from the sales of automobiles, trucks or farm implements. Farrington continued to describe another applicable exemption for establishments that do not derive 50 percent of its revenue from selling vehicles. Employees are exempt from overtime if the following three conditions are met: They work for a retail establishment, their regular rate is more than 1.5 times the federal minimum wage, and they are paid primarily (more than 50 percent of their


earnings) by commission. A retail establishment is considered such under FLSA if 75 percent of its income is derived from retail sales and sales made to the general public. In a collision shop, this means individual customers, even when the insurance company is paying. The three common types of nonretail income are income from work on heavy trucks (16,001 pounds or more) or specialized equipment; income from fleet work, where work is done for a fleet customer pursuant to a contract or agreement and where the customer gets a fleet discount; and income from sales for resale, in which a dealer engages a shop to refurbish a used car that the dealership then sells, or a dealership farms out its body work to a body shop. In each case, income to the shop is non-retail. If these types of income constitute more than 25 percent of the business’s income, it is not eligible for the exemption. Farrington provided several examples of how these requirements can be analyzed. He also explained the benefits of drawing against commission. He warned, “The danger is if the

draw is so high that the employee never gets commission. Then, the courts will determine that is a salary, not a commission. For example, techs paid on commission of 40 percent of labor draw $700 per week. Commissions are settled at the end of the quarter. At the end of the first quarter, employees generated $25,000 in labor charges and have therefore earned $10,000 in commissions at 40 percent. The employee has drawn $9,100 ($700 x 13 weeks), so at the end of Quarter 1, the employees get another $900 in excess commissions above the draw. “Employers should ensure that regular payments to employees are not considered salary payments. The best way to do this is to carry forward any deficits (amounts by which draws exceed commission), and charge them against future commissions,” Farrington suggested. “For instance, say the commissions had been $9,000 for the quarter. There is a $100 deficit, so it gets carried forward to the next quarter and subtracted from Quarter 2’s commission. “Under this system, a fixed number of hours are attributed to a particular job, regardless of how long it

actually takes to do the job. The customer pays for the number of hours to the shop at the labor rate, and the technician receives money so what they receive is a function of what the customer pays, and that’s a commission. A painter or mechanic may work for seven, eight or nine hours in a day and still receive credit for 10, 11 or 12 flat rate hours, depending on how much work is done and regardless of the actual time it takes to complete a certain job.” As his presentation came to a close, Farrington emphasized the importance of engaging legal counsel that is familiar with your specific state’s legal requirements. Molla stated, “Ignorance of the law is no excuse. Seek competent legal advice when in doubt.” For more information on ASA, visit asashop.org.

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ACA’s Bill Hanvey Testifies on 301 China Tariffs

Auto Care Association President and CEO Bill Hanvey testified August 23 before the U.S. Trade Representative (USTR) in Washington, D.C. on the latest proposed tariff list on imports from China. Hanvey warned the administration that the cost of an additional tariff would cause severe economic harm to the U.S. automotive industry and U.S. consumers. The tariffs are part of USTR’s Section 301 investigation to address unfair acts, policies and practices by China that are related to technology transfer, intellectual property and innovation. “The greatest impact from this action will be on U.S. consumers who will experience higher repair costs, likely leading to the delay of critical vehicle maintenance procedures that may result in serious highway safety concerns,” Hanvey said in his testimony.

www.autobodynews.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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P HONDA ILLINOIS

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

State Farm Settles

Illinois Supreme Court. (A record $9 million was spent on the election that Judge Karmeier ultimately won.) Further, it was alleged that a State Farm attorney actually was the individual who recruited Karmeier and had discussions about the case with his campaign manager. This new evidence persuaded the federal judge to agree with the plaintiffs, and despite State Farm’s objection, the federal case was allowed to continue to a jury trial. The federal case included civil racketeering claims and claims of fraud. Essentially, plaintiffs alleged that State Farm recruited and funded Justice Karmeier’s 2004 campaign to be elected to the Illinois Supreme Court without revealing it. Further, the plaintiffs alleged that this was done for the purpose of getting a favorable ruling in favor of State Farm in the appeal of Avery. On August 5, 2013, the plaintiffs in Hale v. State Farm told the

federal judge that their “stated intention” was to ask Justice Karmeier to address the allegations in a deposition. The plaintiffs contended that State Farm violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, by using the U.S. Chamber of Commerce, the Illinois Republican Party and other entities or conduits to conceal its role in funding and operating the Justice’s campaign. RICO allows plaintiffs to sue persons or entities involved in a conspiracy to engage in improper activities such as bribery, fraud or violent crimes. State Farm’s motion to dismiss the above claims was denied and the federal court ruled that discovery and the case may continue. In 2016, the federal court certified the class, denied all motions to dismiss by State Farm and ultimately set a trial date for Sept. 4, 2018. State Farm denied the allegations and Judge Karmeier maintained that he didn’t know who or how much was given to his campaign. Indeed, prior recusal motions were all denied by Justice Karmeier. Moments before the case in fed-

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eral court was to begin, State Farm agreed to pay $250 million to settle the federal lawsuit (which now charged them with Civil RICO violations). The settlement will provide benefits to more than 4 million current and former State Farm policyholders who were members of the class in Avery. Obviously, the settlement saves State Farm from any further transparency and humiliation that would result from the case going to trial. Most importantly, it prevents further monetary damage being inflicted upon them. The Avery case demonstrates that insurance companies can and should be challenged if they engage in unfair, unethical or illegal conduct. A low and unfair estimate can be challenged in small claims, civil court or a higher court. Tortious interference with your business is an actionable tort under the law that can be the basis of a lawsuit. Defamation is also a serious allegation that can affect your livelihood and reputation within your community, and that, too, is action-

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able in court. Remember that insurance companies are for-profit businesses, and like any business, they want to lower costs and make as much money as they can. When they intrude in any significant way on your livelihood, it’s time to act! In the very near future, I will be holding seminars in which you can address any unfair or potentially illegal issues that you have had with insurance companies. They may include: steering, low or unfair appraisals, unfair or no negotiations, declaring vehicles totaled when they are fixable, defamation against you, your shop or reputation, tortious interference with your business, denial of PainTex accounting or any other issue that has damaged your business that you can prove.

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SEMA Show Goes On with Ed Attanasio

How To Squeeze Maximum Value Out of SEMA 2018 by Ed Attanasio

Autobody News recently discussed the 2018 SEMA Show with SEMA Vice President, Communications and Events Peter MacGillivray. His department organizes and produces the annual SEMA Show in Las Vegas and several regional trade shows, international shows and special events throughout the year.

Why should a body shop owner/manager or even a tech /estimator/painter, etc. attend SEMA?

Q:

As the world’s leading automotive trade event, the SEMA Show is the best place for automotive professionals to connect face-to-face with business partners, make new connections, see the latest trends and new products and learn new skills to help their businesses.

A:

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

It’s where the $43 billion spe- SEMA Show is a reflection of the incialty aftermarket industry gathers dustry it serves. Our collision section includes every year to conduct business. There more manufacturers than ever. This is no other trade show like it. Over the last few years, our atten- year, we have over 200 exhibitors in dance among the automotive repair the collision repair section alone and more than 250 in related category has increased sigsections like tools and nificantly. We’ve learned equipment. Overall, we exthat attendees from this catpect more than 2,400 exegory are finding unique hibitors at the 2018 SEMA value in the show via the Show. widespread product offerAmong the new features ings within their “home” category of collision repair, Peter MacGillivray at this year’s SEMA Show are features from Hoonigan, but also among the nine Polaris, Kia and Mahindra. We’re also other sections of the show. expanding the Monday Vehicle ReWhat are some new and excit- veal, which debuted last year, to give ing things that will be taking media a sneak peek at some of the vehicles from the SEMA Show and an place at 2018 SEMA? opportunity to hear from the builders. Additionally, the annual SEMA As the industry changes, so, too, does the SEMA Show. In a Awards, given to the top trending velot of ways, a trade show like the hicle models in five categories, will be

Q: A:

presented during the SEMA Reveal on Monday. In addition to awards to the top car, truck, 4x4/SUV and sport compact, an award will be presented for the first time to recognize the Powersport Vehicle of the Year. Another big change for this year is the location of the after-party, known as SEMA Ignited, and the SEMA Cruise route. On Friday, after the show closes, all the vehicles from the SEMA Show exit the convention and make their way to SEMA Ignited. Because of construction at the Las Vegas Convention Center, the cruise will have a new route and the afterparty will take place at what is known as the Platinum Lot, which is on the east side of the convention center on Swenson Street, between Desert Inn road and Sierra Vista Drive.

Q:

How can attendees get maximum value out of the show?

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Don’t just show up; plan in advance. Reading this article is a good start, since it means you’re thinking about what you need to do and how to get around the show. We recommend that attendees attend all four days of the SEMA Show. One badge allows access to each day of the event, so it’s actually the most economical. Aside from not having to rush through the show floor, attending every day ensures that you won’t miss a single thing. Every day features new events, conferences and networking opportunities. The show provides attendees an overall experience that includes more than 100 educational sessions, most of which are free of charge. The complete list of events is on www.sema show.com. Also, visiting the No. 1 destination at the SEMA Show, the New Products Showcase, is essential because it is where an attendee can see the hottest products hitting the aftermarket. In addition, we have worldclass education (visit www.sema show.com/education) and networking events that attendees can benefit from.

A:

What are some tips on how to cover as much territory at the show as possible?

Q:

The online floorplan (www .semashow.com/floorplan) is a great tool that an attendee can use to identify where exhibitors and features are located in order create a plan to navigate the show. The official SEMA Show Mobile App enables you to create a schedule, gives you access to the floorplan and helps you locate exhibitors and browse educations session, networking events and conferences before and during the show. Attendees can also stay up to date with the latest SEMA Show happenings by reading SEMA eNews each week and by following the official SEMA Show social media accounts.

A:

Q: A:

What are some tips for surviving the show?

With more than 1 million net square feet of booth space at the SEMA Show, a comfortable pair of shoes is essential, as is having liquids with you at all times to remain hydrated. Items like business cards, hand sanitizer, mints and a bag to carry them in will make networking a comfortable experience. We have sectionalized the show into 10 business categories. Work the section where you have the most interest first, and then move on to other areas. Also extremely essential is being familiar with the location of amenities such as food, restrooms and pickup locations for transportation services. Given the Gold Lot’s unavailability due to construction, parking at the 2018 SEMA Show will be even more scarce, so knowing where taxi drop-off spots are located will be valuable. Using the Las Vegas Monorail is another great option to travel to and from the show. The monorail is fast and makes multiple stops, many of which are within walking distance to most hotels. How can attendees follow up once they get back from the show and get even more value from the event?

Q:

One easy way to follow up with manufacturers of the hottest products to hit the market is to use the scanners at the New Products Showcase to create a list of all the products you’re interested in. The list, which will be provided to you when you return your scanner, will contain key information to contact those companies. Also, have exhibitors scan your badge when you visit their booth. This will generate a list of companies visited that will be sent via email to the attendee after the SEMA Show. The list will provide access to their personal list of exhibiting

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companies and their contact information. Our technology keeps track of your visits and reminds you to follow up. Be sure to also visit the SEMA Association Center in the Grand Lobby to learn more about how you can connect with others in the industry. Face-to-face time is more valuable today than ever before. The SEMA Show is the time to connect with others in the industry quickly and easily. SEMA can help, whether it’s through council events or an association activity. Why is SEMA more valuable than other collision repair-related shows?

Q:

The SEMA Show is where the entire automotive aftermarket industry comes together to conduct business, so you’ll learn about crossmarketing opportunities and connect with more people than you will at any other trade show. The SEMA Show also partners with the Society of Collisions Repair Specialists, the leading organization for the collision industry. SCRS holds

A:

meetings at the SEMA Show, and they organize collision-specific seminars and workshops. Their partnership really brings a lot of value for the collision industry. Most important, we don’t try to mimic any other collision repair show; we offer a unique value proposition for all our attendees.

If you wait until late October to make reservations to SEMA, what are some tips to get good hotel rooms, etc.?

Q:

If you wait until late October to make reservations to SEMA, what are some tips to get good hotel rooms, etc.? It’s never too late to register and attend the SEMA Show, but you obviously want to do so early so that your travel and lodging options are vast. Through our partner onPeak, we’ve negotiated travel discounts and secured reduced-rate hotel rooms to make the trip to Las Vegas affordable. A list of available hotels and other travel services for SEMA’s official travel partner is available at www.semashow.com/travel-and-lodging.

A:


autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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Hey Toby! with Toby Chess

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

Plastic Bumper Repair Part 1: Adhesives Check out this ‘57 Chevy Impala. Look at all that chrome. The bumper had to weight over 200 pounds. The hood weighed another 150 pounds, and who knows what the rest of all of that steel weighed.

Let’s move forward to the 2018 Chevy Impala, which is composed of plastic headlamps, a plastic bumper, plastic grills and an aluminum hood.

I would venture to say that all these parts would weigh less than the bumper on the ‘57 Chevy. A couple of months ago, I was at a welding at an MSO in Southern California. A large bumper recycler had delivered six recon bumpers. The parts manager inspected each recon bumper and rejected three. He took his pictures, ordered three new covers and had the estimator reflect the change in the estimate. I asked when he thought the new covers would be delivered, and he stated that it would be between one and three days. Sounded familiar. At another collision center welding, I saw this Audi Q5 rear bumper on a cart with damage to the left corner about the size of a basketball. I inquired why they didn’t repair the bumper. They said that it couldn’t be repaired and that they made more money on the new bumper. I asked them when they expected the new bumper. They didn’t know (the new bumper had been ordered six days 40

earlier). The rear bumper was slightly under $400, and with their discount they would gross about $100. I told them they could have repaired the bumper and charged the carrier for five hours ($275 total sale and gross profit of $185), which would have translated to an additional gross profit of $125. Furthermore, the vehicle would have been in and out in two to three days instead of waiting for the new bumper. Granted, not every bumper can be repaired. I have a real hard time with the insurance appraisers, who attend a one-hour bumper class put on by the equipment manufacturers, telling the shop how they can repair the cover. Let the shop professionals make the decision to replace or repair and compensate the shop fairly and not some arbitrary number they (insurance appraisers) pulled out of the air or even worse, a flat number of hours the insurance company will only pay. Let’s take a look at what a shop should do: repair or replace a bumper cover.

Here is a list you may want to look at prior to writing the estimate: • Repair cost vs. OEM new • Will repair allow from life time warranty? • Can the repairs be seen? • Will the repairs stand up to stress? • What does the OEM state about repairing its bumpers? • What is the availability of another bumper? • Warpage or memory • Age of the vehicle • Damage in area of parking sensor • Bumper has been repaired before and/or repainted

We made the decision to repair the bumper. What is next? There are two ways to proceed. First, you can use adhesives for the repair, or second, you can use a plastic welder or even better, a Nitrogen

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

welder. In this article, I will use adhesives, and in my next article, I will use a Nitrogen welder. When finish,

I will provide you with the pro and cons of each and look at a number of Nitrogen welders on the market. Pictured above are three different companies that supply bumper adhesive products that I am very familiar with. There are also a number of other fine adhesive manufacturers, but I will use one company’s products to demonstrate the repair process. I will add one major warning: Do not mix other companies’ products with the one you are using because it may cause a chemical reaction that will


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lead to a failure. So let’s get started. First and foremost, you need to check manufacturers’ SDS for personal protection equipment or PPE. Section 8 of the SDS from Kent Automotive states, “If the exposure limits are exceeded, an NIOSH-approved respirator is recommended.” Since I was just filming, it was not necessary to use a respirator, but I would highly recommend that a respirator be worn when working with any chemicals in a body shop environment. Gloves are recommended for prolonged or repeated skin contact. Again, I did not have the tech put on gloves for the photos due to limited exposure. One final note: Kent Automotive does not use isocynates in its plastic chemistry.

not car wash soap.

4. Push out the dent with a dolly and cool with water (sets the plastic).

I am going to outline a number of steps that need to be done on any type of bumper repair. They are as follows:

1. Wash the front and back with soap and water for both single-sided and two-sided repair. You should use a grease-cutting soap such as Dawn,

3. Remove stressed plastic with heat. I would recommend the Revo Hand-Held Short Wave IRT.

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5. Remove paint on the outside of the bumper 80 grit DA at low speeds

2. De-grease the bumper repair area with Acrysol WB or any waterbased de-greaser (do not use a solvent-based de-greaser).

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(high speeds will melt the plastic). Note the slight low spot on the bumper. It can be filled with epoxy filler.

6. Clean again with wax and grease remover to remove mold release agent that has been exposed.

its chemistry (step #7 is not needed with Kent Products).

11. Apply Kent High build primer (has flex added to it), apply a guide coat and fill any low spots.

8. Equalize the twin tubes for epoxy adhesive. Run a bead about 4 inches before applying the adhesive to the bumper to make sure the repair is getting totally mixed material.

Next, I will show a two-sided adhesive repair. Follow steps 1–6 for a two-sided repair. 7. Some manufacturers require a surface modifier (aka adhesion promoter) prior to applying the adhesive. Kent Automotive uses an epoxy adhesive with a surface modifier in

10. Allow the adhesive to dry (15– 25 minutes depending on the temperature). Sand with 220 grit DA sander.

9. Apply adhesive to the bumper and spread the material over the repaired area.

7A. Sand the front and backside of the damaged bumper with an 80 grit DA sander at low speeds. High speeds will melt the plastic (small, shiny

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black beads), and adhesives do not like to adhere to burnt plastic. It will be necessary to remove the burnt plastic before moving on with the repair.

15A. Apply a thin layer of epoxy finishing adhesive. Sand.

11A. After equalizing the twin tubes of epoxy adhesive, apply material to the hole (covered by the aluminum tape). Make sure that pressure is applied when spreading the adhesive. You want the adhesive to be higher than the surrounding plastic, which will allow you to sand it down flush with the surrounding plastic (thus eliminating the need for additional adhesive).

14A. Sand the front side of the repair with 220 grit DA and clean again with water-based wax and grease remover.

8A. Clean the front and back side again with a water-based wax and grease remover.

10A. Apply aluminum tape to the front side of the bumper using a spreader.

Let’s look at the pros and cons of using adhesives.

Pros: • Much easier to learn compared to Nitrogen welding • More than one tech can use materials at one time See Plastic Bumper Repair, Page 46

12A Cover the hole with reinforcing tape. I add an additional strip of reinforcing tape at a 45 degree angle to the first strip. This method gives the repair additional strength. Apply adhesive to the repaired area and spread out the material.

9A. A surface modifier would be applied at this time. Remember, Kent products have adhesion promoter in their chemistry; therefore, this step is eliminated.

16A. Apply High Build Kent Primer. You can use the Revo light to cure the primer at this time. It takes about two minutes to fully cure the primer and be ready for final sanding. The bumper is now ready for the paint department. It should be noted that this whole repair, including the High Build Primer, was done in the body technician’s stall.

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From the Desk of Mike Anderson with Mike Anderson

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

Are You Upgrading Your Shop’s Customer Service Experience? Or Losing Out to Shops That Are? First, just a quick note to say I appreciate Autobody News offering me an opportunity to share some of my thoughts, opinions and ideas with you here. I know many of you may have only an occasional chance to attend one of my presentations or classes, so this is a way for me to try to offer you some information every month. I’ve been thinking a lot lately about a term I first heard from Mark Fincher at CCC Information Services: “liquid expectations.” What it means, in a nutshell, is that your customers and potential customers aren’t comparing their experience interacting with your shop based solely (or even at all) on their experience with another body shop. They’re actually comparing it with their experience with other types of companies. Think about it: You can book a hotel room or airline ticket any time of day or night. Order almost anything from Amazon (24/7) and it likely can be delivered in the next day or two—often with free shipping. You can use OpenTable to make a restaurant reservation in the middle or the night, and the large movie theater chains enable you to buy tickets in advance online. Have you picked up a

rental car from an airport recently? You likely could walk straight from the plane right to a designated parking space where your car was waiting with the keys in it – with no stop at a rental counter. Are you offering any type of conveniences like this? I’ve been told as many as one-third of consumers want (or even expect) to be able to do business with you outside of business hours. Are you making that possible? Or are you at risk of losing those potential customers to shops that understand the customer experience they want? Can your customers go online in the evening or on weekends and book an appointment for an estimate or to drop off their car? CCC’s “CarWise” is just one of the ways you can enable this. Customers can punch in their zip code to see a listing (and possibly reviews) of shops in their area. But go to the site and you’ll see only some shops have it set up to also allow a customer to click a “Schedule Appointment” button to see what appointment days and times are available and book online. A potential customer might not think to go to the CarWise site if they already know your business. So

Continued from Page 44

lack of training and not following manufacturers’ recommended procedures • Different material than the plastic • Repairs are very visible on the backside • Cannot repair small side brackets (hold bumper edge to fender and quarter panel • There are some limits to what can be repaired • Cannot charge out for materials

Plastic Bumper Repair

• No retraining if tech leaves • Faster than nitrogen welding • Start-up cost is considerably less than purchasing a Nitrogen Welder system • Materials are readily available • Faster cycle time • Charge out for materials Cons: • A greater chance of failure due to

Next time, I will show you how to use a plastic welder, hot stapler and a Nitrogen plastic welder.

some of the shops I work with have the CarWise appointment scheduling system embedded right into their own shop website. Do your customers have to be at the shop to sign a paper document to authorize repairs? Or do you offer them the option of providing an electronic signature remotely? As you walk around a vehicle to check for prior damage, are you still using pens to mark the damage on the car, or are you capturing that information electronically? I know there’s lots of controversy about photo estimating, and I absolutely agree that you can’t write an accurate complete estimate from photos. I also know estimating by photo is not legal in some states. But with those limitations in mind, does providing photo estimating offer you a way to start the process with a potential customer who doesn’t

find it convenient to come in for that initial step? Another client of mine has a two-minute video on their shop’s website that walks the customer through the process of shooting and submitting photos for an estimate using a cell phone app that they can download there at the shop’s website. Other shops offer a concierge service that sends an estimator to the customer’s home or work to prepare an estimate, perhaps even outside of traditional work hours. I know shops that use independent appraisers to provide this service on behalf of their shop. The bottom line: We have to provide a much more modern customer service experience, particularly if we don’t want to risk losing the estimated 1-in-3 customers looking to interact with us outside of typical shop hours.

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Media and Publicity for Shops

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

with Ed Attanasio

Who Should Be Your #1 Audience for Your Advertising and Marketing? Depending on what part of the country you’re in, most body shops are highly dependent on their insurance partnerships (DRPs). Every once in a while, a shop owner or manager will ask me, “Why do we market to the consumer, when in the end we get most of our work through our DRPs?” It’s a logical question, so what is the answer? Should shops’ advertising and marketing efforts focus more on insurers than customers? Many of them must agree because some large shops are cutting back their marketing budgets and moving away from consumer advertising, such as broadcast, print, collateral, direct mail or various forms of online marketing. Is it a wise move or will it come back to hurt them down the road? Jim Keller, president of 1Collision Network, has heard the same question time and time again. His 45 locations nationwide are always aggressively marketing themselves to their DRPs under his organization’s direction. “We do a significant amount of marketing for our locations in addition to all of our many other programs and have seen positive results by developing unique programs catering to DRPs and agents,” he said. “Through marketing efforts that are specifically designed for both insurers and insurance agents, our shops are more likely to land a new DRP(s) when the opportunity presents itself, which can help drive revenue and the bottom line. Our performance system also enhances shop operations to gain more work from existing DRPs.” Pursuing and attaining OE certifications is another way to attract DRPs because it indicates to the insurer that a shop is committed to repairing vehicles properly and using OE procedures and recommended equipment. Keller said, “This is a huge opportunity for shops to get onboard because now we have four parties involved in the claim procedure: the shop, the customer, the insurance company and the OE car manufacturers. The certifications are becoming

48

recognized by the insurers, including those that have DRP programs. We make certain to promote our location’s OE certifications and I-CAR Gold Class status on their websites, social media, collateral advertising and other forms of marketing. A body shop with multiple certifications creates an added level of legitimacy and integrity, making that shop more at-

and bringing them donuts is not effective anymore,” Keller said. “We continue to have a strategy with the agents and make sure that we get enough touches per year with them because they’re the front line when it comes to the customers. We focus more on conveying a strong, relevant message through our marketing, and the results have been very positive. We stress

tractive to insurers, DRPs, agents and the consumer. We also believe certifications will aid in recruiting the better technicians to our shops because it ‘raises the bar’ within the industry.” An effective strategy for marketing to insurance agents is beneficial because in the end, a percentage of agencies will make referrals and often are connected to their clients. “At 1Collision Network, we have programs that we use to get in front of the agents and build relationships with them,” Keller said. “The biggest concern for any insurance agent is retaining their customers because they rely on those renewals, along with new customers, each year to grow their business. We believe marketing to agents is a necessary component to a solid marketing [strategy].” In the end, shops must address all parties involved—the consumer, the repairer, the insurer and the OE—when it comes to their marketing, public relations and advertising, Keller explained. “Yes, the OEs are becoming more important now, but the insurance companies aren’t going away. To be successful, we must cater to all parties involved, and to leave any of them out of the loop is short-sighted. Good companies adapt and change as the market changes and continually seek new methods and techniques to increase their visibility,” he said. Interacting with insurance agents remains an effective way to connect with them and harvest referrals, but that approach has changed as well. “Meeting with insurance agents

things like driving safety education, CE classes and the dangers of distracted driving programs, rather than social media messages about how to make the best cookies or what breed of dog is the best to buy. 1Collision has also developed a simple and effective policy retention program for agents that involves making the customer feel special, on behalf of the

“Meeting with insurance agents and bringing them donuts is not effective anymore,” — Jim Keller

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

agent, upon completion of the repairs at the point of delivery at the collision center. This has proved to increase agent loyalty and in turn, referrals.” When it comes to any effective form of marketing, Keller said that it all comes down to conveying your shop integrity and creating brand and name recognition. “When someone gets into an accident and contacts their insurance company, they will often ask about a shop that they’ve seen through the media or various forms of advertising,” he said. “If a shop has a positive, meaningful presence and continually leverages it, customers will inquire about that shop over others for obvious reasons. Having a strategic mixture of marketing and advertising will lend itself to strengthening the relationships with the DRPs. Being on their list is important, but that’s only the first step.”

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Historical Snapshot with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, 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.

5 Years Ago at NACE, Keynote Speaker Said Industry Was Headed Toward Catastrophe 20 Years Ago in the Collision Repair Industry (October 1998) Jack Gillis of CAPA perhaps best summed up a demonstration of nonOEM parts at the Collision Industry Conference (CIC) in October when he said, “Not one of our better days.” The demonstration, arranged by the CIC Parts and Airbags Committee, involved installing several nonOEM parts, including a hood and fender that bore the CAPA-certified sticker, on an undamaged 1994 Toyota Camry. Fit and other problems with the parts were obvious, and after the demonstration, Gillis said neither of the parts would be listed as certified in the next Certified Automotive Parts Association (CAPA) directory. The fender, he said, had been decertified earlier in the week because of more than 20 complaints, including one the week of the CIC demonstration that was the second

complaint after the manufacturer had supposedly fixed earlier problems with the part.

- Test fits of parts continued at CIC meetings over the next two years; OEM parts generally were found to score higher in attendees’ evaluations of fit and finish, but occasionally non-OEM parts were rated as equal to—and in one case, better than—the OEM. Gillis retired from CAPA earlier this year. 15 Years Ago in the Collision Repair Industry (October 2003) In a special two-year study of the auto body repair industry, the California Department of Consumers Affairs’ Bureau of Automotive Repair (BAR) documented that in nearly half the transactions it studied, consumers were charged for parts and labor they didn’t receive.

The BAR inspected 1,315 vehicles that qualified as part of a pilot program mandated by legislation. Of those, 551, or 42 percent, had parts or labor listed on the invoice that

In 2003, Chuck Sulkala of the National Auto Body Council said a study of shop fraud by California regulators was skewed because of its methodology

were not actually supplied or performed. The average dollar amount of overbilling was $811.93. “We’re disturbed by the pattern of problems we found in some shops,”

said BAR Chief Patrick Dorais.

– As reported in Autobody News. While the “42 percent” statistic received a lot of attention, the National Auto Body Council (NABC) noted (in the article) that the vehicles inspected were not randomly selected among all those repaired in California, but rather were vehicles brought to the BAR by owners concerned about possible fraud. “Considering the way the sample was skewed by the BAR’s methodology, it is more surprising that 57 percent of the repaired vehicles showed no problems at all,” Chuck Sulkala of the NABC said at the time. 10 Years Ago in the Collision Repair Industry (October 2008) The estimating system providers are being very responsive to questions posted on the Database Enhancement

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Gateway (DEG), according to Aaron Schulenburg, the administrator of the system. The website (degweb.org) is designed to provide a single, simplified way to question labor times or missing or incorrect information in any of the major estimating systems. The DEG, which was created and is jointly operated by SCRS, ASA and AASP, posts and tracks the inquiries and responses. “The information providers are doing a great job of providing strong responses that are useful and informative,” Schulenburg said. “And they are doing it very quickly.” One example: Inquiry No. 713, a concern about the Audatex labor time for a right front side rail reinforcement on a 2007 Mercedes Benz SL 550. Two days after the DEG submitted the inquiry to Audatex, the labor time was increased by more than six hours. Schulenburg said 2–4-day responses by the system providers are not uncommon. But some in the industry have questioned whether such prompt responses will continue if competition

among the estimating system providers is reduced by the proposed merger of CCC Information Services and Mitchell International (CRASH 6/9/08). That’s an issue more than one source told CRASH Network they

In 2013, Mike Anderson offered a keynote address at NACE, warning that efforts to reduce cycle time and severity could push the industry toward a “catastrophe like the Space Shuttle Challenger.”

raised with the Federal Trade Commission (FTC) when the regulator spoke with them during its continuing review of the proposed CCC-Mitchell merger.

– As reported in CRASH Network (www.CrashNetwork.com), October 20, 2008. Schulenburg left the DEG just two months later to become ex-

ecutive director of SCRS. The DEG has now processed more than 12,000 inquiries. CCC and Mitchell called off their merger plans in March of 2009 after a federal district court judge granted a FTC request for a preliminary injunction to halt the merger pending a FTC’s administrative trial that was slated for later that month. 5 Years Ago in the Collision Repair Industry (October 2013) NACE organizers on Friday said it would be about a week before final attendance figures would be announced, and though the number would be down from 16,000 last year, it would meet their projections for this year’s event. The trade show, held in Las Vegas just three weeks before SEMA, included 170 exhibitors, down 28 percent from last year and the fewest since 1985. But the MSO Symposium continued to prove popular, attracting nearly 300 MSO representatives, and exhibitors said they appreciated that the welcome party and a dozen free informational sessions were held on the show floor. Also widely praised was the

opening keynote address by industry trainer and consultant Mike Anderson. Among his messages: A study following the 1986 Space Shuttle Challenger disaster found that a culture at NASA of “relaxing safety standards to meet financial and time constraints” set the stage for that failure. “If we continue to let certain things dictate our industry, we’re going to have a catastrophe like the Space Shuttle Challenger,” Anderson said. In some ways, he said, insurer pressures to cut cycle time have forced the industry to improve. “But if we keep focusing on cycle time and … severity because we’re afraid about the costs being too high, if we start focusing on the wrong things, we’re going to have a catastrophic event just like NASA did,” Anderson said. – As reported in CRASH Network (www.CrashNetwork.com), October 21, 2013. Since 2014, the trade show has been renamed NACE Automechanika and has been held in Detroit, Chicago, Anaheim and Atlanta. It is slated to return to Atlanta in 2019.

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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Tips for Busy Body Shops with Stacey Phillips

The Power of Peer Groups and Why to Join One To address this challenge, espeManaging a collision repair facility today requires an owner to wear many cially for a growing body shop, Keller different hats and have a great deal of recommends that employees get inknowledge, according to Jim Keller, volved in organizations to build relaCEO/president of 1Collision Network tionships and become the best they based in Milwaukee, WI. can be to help steer the business forThose roles might include CEO, ward. The industry veteran has held a COO, CFO, VP of marketing, VP of human resources, estimator, parts variety of industry jobs over the past manager, repair planner and customer 40 years, including paint technician, dealer manager, entrepreneur, franservice representative. “Regardless of the size of the chisee, consolidator and most recently, founder of 1Collision Netbody shop, it’s very difficult work. Established in 2012, for one owner to be an ex1Collision Network is a netpert in each one of these work of independent and fields,” said Keller during dealer collision repair busihis recent presentation for nesses that work with insurDave Luehr’s Elite Body ers and OEs to properly Shop Academy. “We either have to rely on people to fill Jim Keller, founder repair collision damaged vethose positions or we have to and CEO/president hicles. During Keller’s presenknow all of this information of 1Collision Network ourselves, which I think is a very tation “The Power of Peer Groups,” he shared personal stories that were daunting and difficult task.”

friends, that number grows to be 2,500 people with whom you can potentially connect. If 50 of those people influence 50 of their friends, that number increases to 5,000. With technology, the Internet and social media, we can now connect to people throughout the world without having to go anywhere. The more people you know and positively influence, the more successful you are likely to be.

“game-changers” for him and helped him operate his business more professionally and come up with strategies to address any challenges that he faced. Keller said it all starts by joining a peer group(s).

Q: A:

What is a peer group and why is it important to join one?

Wikipedia defines a peer group as both a social group and a primary group of people who have similar interests (homophily) in age, background or social status. The members of the group are likely to influence the person’s beliefs and behavior. Peer groups also contain hierarchies and distinct patterns of behavior. According to an article in the New York Times, the average person knows 600 people. If only 50 of those individuals each influence 50 of their

Q: A:

What is your personal experience with peer groups?

The first individual who helped me understand the peer group concept was Bob Goff of Goff’s Collision Repair Centers in Wisconsin. He is a real innovator. His body shop wasn’t far from mine, and one day he walked into my business and invited me to a body

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shop association meeting. I didn’t really understand the concept of a body shop association at that time. I thought I was on my own and was going to run my business all by myself and make my own decisions. I thought it was really strange that this guy came in and approached me, but I went anyway. To me, it was a little intimidating to go into a room full of my competitors without even knowing them. I remember going that Tuesday night and being in a room full of body shop owners from around Wisconsin. They were great guys and were friendly toward me and made me feel at home. We saw a great presentation by Blackhawk and learned what the future held for the unibody car. It was very much like our industry is today with all of the technology we are facing. It was a revolutionary time in the industry. From that point on, I didn’t miss a meeting. It was one of the most powerful things that had happened in my professional life. I went from a guy who thought he was going to fix wrecks to a guy who saw there was a much bigger world with a much bigger opportunity than there was within my four walls. Bob got me out of my shop and into seeing what is happening in the world. Over the years, I’ve been involved in many peer groups such as the Dale Carnegie Leadership Training, ARMS management workshop, the Collision Industry Conference (CIC) Total Loss Committee, Coyote Vision Group and CARA Collision Group, to name a few. The peer groups I joined met regularly, and we learned from one another. We visited one another’s shops and were able to reach the next level by sharing strategic information, data tricks and secrets.

Q: A:

What is the advantage of being part of an association?

I can’t imagine any professional in any industry not being a member of a trade association. I think it’s critically important. We don’t always think of an association as a peer group, but it actually is. I think everyone who is in the industry should belong to a national and a local association. The Alliance of Automotive 54

Service Providers (AASP), The Society of Collision Repair Specialists (SCRS) and the Automotive Service Association (ASA) are three of the primary national ones I recommend because they have the most events, education and publications available. Look at all three and determine the best fit with your culture. If you don’t have a strong local association in your area, then get involved in your state association or form one of your own. In the mid1980s I formed one in Milwaukee— the Milwaukee Collision Repair Association—because there wasn’t one where I lived. Talking to your peers locally can be really powerful. Now more than ever, I think associations need our support. With autonomous cars coming out, there are issues we are likely going to deal with, such as the legal challenges that will be the result of car accidents. We need to support those associations and organizations that support us. I understand that it can be challenging to make time to do that while running your business, but if you take the time to connect with people, you’ll learn from one another. Every time you go to a meeting outside of your shop, you’re probably going to meet more people in the industry, whether it’s two people or 500. It can be extremely eye-opening and informative.

Q: A:

What is a master mind group?

I think Napoleon Hill explained it best in his book “Think and Grow Rich.” He said a master mind is when one or two people come together in a spirit of harmony. It is believed that when they come together they will engage a third, greater mind that will allow ideas to come to them. Today, a master mind translates to a meeting or conference between two people, such as the way boards of directors and senior staff get together to do business. The third mind represents the creative energy between two or more people who get together to improve something. A master mind could be two people coming together or a group of 20 trying to figure out the next steps for the group. The bigger the group, the more ideas and opinions you’ll

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

have and the more sharing you’ll do. You’ll find things move faster, decisions get made more accurately and effectively and everyone feels involved in the process. Whether there are two people or 20, if they feel like part of the team, it creates a great synergy for success. The key is understanding that two heads are better than one and can be a really powerful collaboration.

Can you share the human relations principles you learned from attending the Dale Carnegie program you attended?

Q:

If you are attending a peer group meeting, whether that’s with one person or more, it’s virtually guaranteed that you will learn more from that person or persons, they will like you more and you will probably capitalize on opportunities from that relationship(s) more so than any other way by following these principles.

A:

1) Don’t criticize, condemn or complain. 2) Give honest sincere appreciation. 3) Arouse in the other person an

eager want. 4) Become genuinely interested in other people. 5) Smile. 6) Remember that a person’s name is the sweetest sound to them, in any language. 7) Be a good listener. Encourage others to talk about themselves. 8) Talk in terms of the other person’s interest. 9) M ake the other person feel important and do it sincerely. 10) The only way to get the best of an argument is to avoid it. 11) Show respect for the other person’s opinion. Never say, “You are wrong.” 12) If you are wrong, admit it quickly and emphatically. 13) Begin in a friendly manner. 14) Get the other person to say, “Yes, yes.”

Q: A:

How can a performance group be beneficial?

A good performance group will demonstrate how to achieve a higher level of success than you could See Peer Groups, Page 69

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National Associations with Chasidy Rae Sisk

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.

I-CAR Discusses Training, Recognition, Service Enhancements During SCRS Webinar On Wednesday, August 22, the Society of Collision Repair Specialists (SCRS) hosted I-CAR’s Nick Notte for a webinar titled “The ‘Even Better’ I-CAR.” After thanking SCRS and its executive director, Aaron Schulenberg, for the platform and assistance in arranging the webinar, Notte explained that I-CAR’s “true north” is complete, safe and quality repairs, and the reason for the upcoming enhancements is related to the current technical tsunami in the industry. “Complexity of vehicles and the skills bar are rising, but 65 percent of shops are not training. I-CAR’s vision is for EVERY person in the collision repair industry to have the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer,” Notte said. These goals have driven the ex-

pansion of I-CAR’s products and services over the years, enhancing the technical curriculum offered. Notte expressed gratitude to the industry segment advisory councils who have contributed to I-CAR’s goal to continuously improve and be more relevant.

“Independent industry feedback has provided direction to I-CAR’s strategy and program enhancements, and we’ve enjoyed very active industry engagement over the past four years and continuing,” he said. “We’ve had a lot of people weigh in on this, especially collision repair folks.”

He emphasized that I-CAR’s innovations have been driven by industry feedback. “We’ve engaged industry leaders and other people who really understand the industry,” he said. “We’ve also partnered with OEMs to look at the benchmarking they use in their programs, such as how long they certify, the benefits of certification, how many certified technicians they require … The OEMs were very forthcoming. We also talked a lot about how people like to learn and what works. After nearly five years of collecting data, we took that data to our subject matter experts at I-CAR to turn it into something the industry could use that would be meaningful as a standard for collision repair training.” Some of the most common complaints that this research yielded were compiled and addressed in Notte’s

presentation. Complaints on core training included the relevancy of content, redundancy, virtual/online courses being too long and a desire for more hands-on/skills training. Industry professionals also expressed a desire for I-CAR to recognize knowledge and then train to close the gaps instead of defaulting to training. Additional complaints included that the level of training was too low and one person should not hold all the roles. Participants saw a need to simplify the training alliance, include shop equipment training, reduce the complexity of the subscription model and support the overall vision. Looking at I-CAR’s industry knowledge and skills protocol, Notte explained that their program lists the foundational knowledge and skills for every role in the shop for them to be able to do their jobs. “We put a document together that

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lists all the industry training available for those knowledge and skills, including I-CAR courses as well as OEM, supplier and other courses. This is not an I-CAR document but an industry document, and it’s available on our website,” he said. Notte brought it all together by explaining that a shop wanting to reach Gold Class status begins by recognizing any training that has already been taken (I-CAR, OEM, supplier through alliance). An in-shop knowledge assessment is performed through ProLevel 1, and then training is applied to close the gaps in knowledge. I-CAR will also be doing hands-on skills classes, mostly in the shops, but these can be taken through I-CAR or through a qualified training alliance supplier. Next, an I-CAR assessor will visit the shop annually to conduct an in-shop assessment. The first year, all of the shop’s technicians will be assessed, and in subsequent years, new hires will receive assessments. This annual assessment allows a shop to maintain its Gold Class status. In 2019, I-CAR will launch skills verification, knowledge and

skills protocol and recognition requirements, as well as offer classes in Spanish. Notte shared, “We are raising the bar on training. Platinum Class goes from ProLevel 1 to ProLevel 3, while Gold Class will go from ProLevel 1 to ProLevel 2. To achieve ProLevel 2, 100 percent of structural technicians must be ProLevel 2 as well as 50 percent of the remaining roles, and one person can only hold up to two roles. The renewal dates will kick off with in-shop assessments, and there will be a new shop level requirement for electrical/diagnostics and mechanical courses. The turnover rules will be eliminated, and annual training will be required.” For I-CAR welding training and certification, renewal will be required every three years and can be assessed at the shop to count towards the renewal certification. An aluminum (structural) recognition option will be available for Gold Class. The Road to Gold will end when 2018 concludes. According to Notte, “It wasn’t a destination—t was a means to get to I-CAR Gold Class, and although it

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was designed as a 12-month journey, some shops were taking years. That’s unfair to the shops that are committed to training. Those on the Road to Gold only have until the end of this year to finish and achieve Gold Class status.” Notte’s presentation continued with an exploration of how Gold Class status looks now compared to how it will look in 2019 and a discussion of the amount of training needed. “A lot more classes will need to be taken to get to Gold Class in the future, but they will be shorter in duration,” he said. Explaining how I-CAR’s subscription will work, Notte noted that the subscription includes the annual in-shop assessment and unlimited training, as well as turnover protection. However, the turnover protection could be voided if all of the shop’s technicians turned over in one year. The subscription is available for a monthly shop fee of $229 plus $35 per month per technician. Aluminum designation is also available for a small annual fee. Fees are based on each location, meaning multiple shop operators would pay per shop.

According to Notte, “Gold Class shops will be grandfathered in, but you need to keep training and close gaps to meet the new protocol. Gold Class shops will have 12 months after their in-shop assessment to get to ProLevel 2 in shop. If you aren’t already Gold Class, you need to get to ProLevel 1 to get the Gold Class designation, effective January 2019. Shops in progress should keep training; if you reach Gold Class by the end of 2018, you won’t lose the designation. Notte also shared that I-CAR has more in the works to make things easier for shops, including a new LMS that promises user ease and a better training experience and a sustaining partner program to encourage better engagement of OEMs, insurers and suppliers in recognition of the value they derive from I-CAR’s work. He thanked the many industry supporters that have provided positive feedback on I-CAR’s initiatives, and he encouraged shops interested in becoming Gold Class to call the customer care line to set up an in-shop assessment. Notte’s presentation concluded with a question-and-answer session.

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Honda Collision Parts Program Sets New Standard by Gary Ledoux

In the earliest days of the collision repair industry, when shop employees needed a replacement part they picked up the phone and called a supplier, quite often an OE dealer. Simple? Yes. Quick? Maybe. Efficient? Not necessarily if the shop needed multiple parts, some possibly hard to find, and had to keep calling until they were found. Starting in the early 1980s and still true today, the fax machine saved time and effort for both shops and parts suppliers. By around 2006, OEConnection was able to do something no one had done before—electronically connect OE dealers with body shops, allowing the two to communicate, the shop to order parts and the OE manufacturers to run a conquest or price-matching programs utilizing the OEC software. This was a win for everyone, including the shop, the dealer, the customer, the OE and the insurance company. Utilizing OEConnection’s CollisionLink® software, American Honda launched its Collision Select con-

quest program on July 1, 2009. The program ran very well for several years. The program reached its peak around 2016 when the number of transacting body shops reached a plateau and growth had ceased. So, in true Honda fashion, the Collision Marketing Group went “to the spot” to interview dealers and body shops all over the country to see what was going on. Here is what they heard:

• Shops and dealers said, “It is taking way too much time to conquest parts.” In other words, after the estimate had been written using either aftermarket or salvage parts, it then became incumbent upon the OE dealer, using the OEC software, to contact the shop to negotiate the price of certain key OE parts to see if the dealer could change the shop’s mind about what parts to use. Ultimately, this resulted in more parts sales for American Honda and those OEs who followed this model, but it was more work on the part of the dealer and the shop. Plus, dealers were not always consistent using the

program, and the number of shops using CollisionLink® was somewhat limited compared to the size of the body shop network.

• Shop owners said, “Give me your best price up front and let me make the decision. If I am in the middle of writing an estimate, I will use the OE part if I can. If you have a conquest price, why should I have to wait for a dealer to get back to me when I am ultimately making the decision anyway?” Now, 10 years later, technology has brought parts procurement to the next level. American Honda is again on the cutting edge as the first OE to use CCC One to promote parts ordering at the time the estimate is written, rather than after the fact, and offers an MSRP or promotional price that is consistent across all participating Honda or Acura dealers. They have also made the program’s execution easier, quicker and seamless. It is already changing the culture of many shops that use it.

Here’s how it works: Shops using CCC One with the proper software engaged will be provided a list of parts suppliers for each part needed on an estimate. Depending on which parts suppliers have enrolled in the program and are using the software, the shop may see, for example, an aftermarket bumper cover, salvage bumper cover or an OE bumper cover from multiple OE dealers. In each case, the parts will have a price and availability listed. In the case of the OE part from Honda/Acura, each part number will show the MSRP price and a “Promotional Price” that will be the same no matter what Honda or Acura dealer is listed. Assuming the shop wants the OE part, it is then up to the shop to decide from which dealer to buy the part, depending on availability, the shop’s relationship with the dealer and the final price the shop will pay the dealer for that particular part. The program does not pit one Honda or Acura dealer against the other. The “Promotional Price” is what was referred to in past American

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Honda programs as the “conquest price,” or the price the shop would charge the insurance company to compete with aftermarket or salvage parts. For example, assume a bumper cover is $400 MSRP and carries a “Promotional Price” of $325. Under Honda’s former conquest program, the dealer would negotiate the price with the shop, which could have been between $400 and $325. This led to inconsistencies, even within a single dealership, depending on the parts sales person dealing with the shop. With American Honda’s new “Collision Parts Promote” program, pricing will be consistent and require less work for all involved. Plus, “Promotional” parts, in most cases, are seen as an alt-OEM part. This helps shops trying to meet a parts-type objective as a DRP. And this business model eliminates the negotiation process, thereby saving both the shop and the dealer time and work. Once the shop has selected the parts they want from their vendor of choice, the order can be placed using a “shopping basket” similar to Amazon .com or other online services. For Honda and Acura dealers, a connection exists between CCC One and the dealer’s Dealer Management System (DMS), so the order is placed with the dealer electronically. There is no rekeying. The dealer only needs to bill the parts, pull them and ship them— a real time-saver for all. On the backside, each dealer knows what they will pay American Honda for the parts and what their rebate amount will be from Honda for all parts sold in this manner.

American Honda’s new “Collision Parts Promote” program was officially launched at the last SEMA show in November 2017. In a July 2018 phone interview, Kirk Adams, assistant national manager for American Honda’s Collision Group, noted, “We ran a pilot program for almost a year before we launched nationally last November, so we proved the concept and knew it would work well. In the intervening nine months, we have enrolled 900 Honda and Acura dealers for this program. That’s about 70 percent of our dealers. About 800 have ‘gone live’ and are currently active with the program. On the shop side, CCC One is in about 24,000 shops, and most of those shops are connected to at least one Honda or Acura dealer. About 12,000 shops are currently transacting using this program. If a shop does not have CCC One, we have a manual process to help that particular shop participate.” When asked how this will work with Honda’s ProFirst program, Adams noted, “We currently have 1,350 ProFirst shops around the country. Only 41 of them do not use CCC One. That’s a 96 percent penetration rate. It doesn’t get much better than that.” The Tonkin Parts Center, part of the Ron Tonkin dealer group in Portland, OR, handles wholesale parts operations for the 15+ lines of cars sold by the Tonkin group, including Honda and Acura. The center consists of 125,000 square feet carrying $13 million to $15 million in inventory. American Honda chose the Tonkin Parts Center as one of three

Gerber Collision & Glass Donates Car Through Recycled Rides

Gerber Collision & Glass, a member of the National Auto Body Council (NABC), has restored a vehicle as part of Recycled Rides. Recycled Rides is a community awareness project in which members of NABC repair and donate recycled vehicles for people in need. Gerber Collision & Glass partnered with Allstate Insurance to donate a refurbished 2011 Honda Civic. “We are proud to contribute to this initiative and will continue to refurbish and donate cars to 60

families in need and charitable organizations,” said Joe Hoffman, regional vice president of Gerber Collision & Glass. Gerber worked with Erin’s House for Grieving Children, a charity operating out of Fort Wayne, IN, whose mission is to provide support for children, teens and their families who have suffered the death of a loved one.

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

pilot dealers for the program. Keith Burtram, senior manager for the center, said, “Honda is one of our fastest-growing lines, and we always take advantage of American Honda’s programs. The Collision Select program from 2009 was alright but not very efficient, so we used it very little. Plus, to make the program work, we had to ask our shops to check the competitors first, then come back to us. The entire transaction was done after the estimate was written and many decisions had been made. Using CCC One and Honda’s new “Collision Parts Promote” program, everything is more efficient for us and the shop. There is no re-keying on our side or the shop side. That saves a shop hours and money. The best part is the shops are using a tool (CCC One) that they are already familiar with, so the learning curve is real short. We have already seen an increase in Honda and Acura parts sales with this program and CCC One.” Jim Kinsherf, vice president of OEM Business Development for CCC, said, “This parts acquisition model started as ‘True Parts’ around 2014 and has morphed into the CCC

Parts Network. We are happy to help enable Honda’s Collision Parts Promote and other OEM programs on our platform.” When asked about the future of the CCC Parts Network and programs such as Honda’s, Kinsherf said, “This technology is very robust and presents many possibilities. A program using a promotional price like Honda’s could be applied geographically, by state for example. Or it could be applied by model year, based on a vehicle’s VIN number. For example, let’s say the same part number bumper cover fits four model years. Ordering that bumper cover for the latest model car may receive a promotional price that is different than a four-year-old vehicle. There are a wide range of possibilities.” Leigh Guarnieri, manager for American Honda’s Collision Group, said, “Due to the complexity of running two programs, we will be sunsetting the Collision Select program, started in July 2009, at the end of 2018. This will leave only the ‘Collision Parts Promote’ program … which is a win-win for everyone. It sets a new standard for the industry.”

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61


Sherwin-Williams Study Reveals Primary Reason Body Shops Prefer Waterborne Coatings by Stacey Phillips

With the usage of waterborne coatings on the rise, a recent study conducted by Sherwin-Williams Automotive Finishes found that quality was the primary reason collision repairers favor waterborne refinish coatings over traditional solvent systems. The study was conducted in July, prior to the company launching its new Ultra 9K Waterborne Basecoat System the following month. “As we prepared to launch our new product, we were interested in finding out general user opinions about waterborne coatings and what is driving the change to use them,” said Brian Shenk, marketing director for Sherwin-Williams Automotive Finishes. “The extensive market survey revealed a number of trends and information regarding the use and increased acceptance of waterborne systems.” Out of the 250 survey respondents across the United States, the majority classified themselves as body shop owners or managers. Sev-

[VOC] legislation and wanting to be ahead of the curve in regard to compliance,” said Shenk. What we’re finding is that the technology behind waterborne paint is so superior today that shops are changing for a completely different set of reasons other than because they are required to do so.” As a result of the study, Shenk said they learned the five key considerations from collision repairers when choosing a new waterborne system for their facility. Color match was at the top of the list followed closely by productivity and ease of system use. Price and OEM approvals were also factors in their decision-making process. The number one reason Courtesy of Sherwin-Williams Automotive Finishes shops aren’t using water“When we first started manu- borne coatings, according to the facturing waterborne coatings for study, is the cost of new equipment. the refinish market, we expected However, more than half of those that most people were going to want who currently don’t utilize them said to use them because of changing that they plan to do so or at least look

enty-seven percent work for or own an independent body shop, and 60 percent have annual revenue of $1.5 million or less. According to the survey, 64 percent of collision repair shops have used waterborne paint within the last year.

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into it over the next year. “There’s a reasonably big contingent of underinformed shop owners who have misconceptions about waterborne systems,” said Shenk. Typically, he said those not using waterborne basecoats believe they are significantly slower than solvents and not going to provide the same color match or durability. They might have tried it years ago or heard mixed reviews. “It surprises me that people make up their mind one way or another about waterborne coatings and then don’t consider them again,” said Shenk. “Today’s products are vastly different.” Some of the recent innovations introduced to the market include increased production, quality of paint matching, better application equipment and supplier training. “By today’s standards, all shops should be switching to water,” said Greg Weaver, co-owner of Acworth Collision in Acworth, GA. “Shops need to forget the water-based horror stories. Today’s systems provide bet-

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ter color match, better speed and are equal to, or even less, in overall expense compared to solvent.” “We wanted to ensure our new product could perform in really busy collision shops,” said Shenk. “This research tells us that we’re on the right track. We’ve received an unwavering positive response from our customers, and it gives us confidence that the product is what our customers want.” Sold exclusively through the Sherwin-Williams branch stores in North America, the Ultra 9K system is compact, requiring less than 70 toners and a single reducer. Shenk said the new line was created to provide precise and quick color match to help shops improve cycle time and maximize throughput. It utilizes intuitive Color Retrieval Software and spectrophotometer as well as a wet-on-wet application. It is compliant in national rule and VOCregulated areas and can be used in various climates in high or low humidity. Steve Raines, manager for Acworth Collision, in Acworth, GA, said the shop’s painters love to spray Ultra

9K.

“It goes on wet-on-wet so it’s faster than other systems, the color match is outstanding, and it’s really more production-friendly,” he said. “It even reacts well to humidity, which is something we struggled with using other systems.” “The new Ultra 9K system addresses what is most important to every collision center—productivity and efficiency,” said Rob Mowson, vice president of marketing for Sherwin-Williams Automotive Finishes. “It utilizes the finest speed primers, color basecoat and fast glamour-producing clearcoats. We wanted this system to be a true change for the industry. We re-thought everything to make sure that the entire shop experience is best-in-class.” Shenk said the bottom line is that there are two main considerations for a shop when considering a refinish system: color match and turnaround time, both of which Ultra 9K offers collision repairers. “We’ve been very pleased with our customers’ reaction to the new product,” said Shenk. “It’s fun to connect with customers and introduce a

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product that is welcomed by those in the industry who need it. It’s really satisfying to have something so meaningful in the work lives of painters and people who run body shops.” Sherwin-Williams Automotive Finishes manufactures and distributes a complete line of advanced technology paint and coating systems for automotive and fleet refinishing industries. The Automotive Finishes division is part of The Sherwin-Williams Performance Coatings Group, which supplies a broad range of highly engineered solutions in more than 120 countries around the world. Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution and sale of paints, coatings and related products to professional, industrial, commercial and retail customers.

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Audatex 5-Year Donations of $25,000 to CREF

In addition to its $3,370,740 software donation last year through a partnership with the Collision Repair Education Foundation (CREF), Audatex, a Solera Company, has committed to donating $25,000 to the Foundation annually for the next five years. “We see a long-term commitment to CREF as a commitment to the health and growth of the automotive repair industry,” said Don Mikrut, vice president, Solera Global SMR Service Sales. Audatex also collaborates with CREF on the Audatex Educational Institutions Program, which provides eligible collision schools in North America with access to Audatex Estimating software, online courses and training, a custom curriculum that includes CEUs and ICAR points, and technical support. For more information, contact Collision Repair Education Foundation Director of Development Brandon Eckenrode at Brandon .Eckenrode@ed-foundation.org or 847-463-5244.

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63


Vision, Foresight Help Launch This PBE Jobber by Gary Ledoux

It was the mid-1940s. GIs were home from the war, the U.S. economy was booming and shiny new cars were filling America’s highways—cars that needed gasoline and service work. Only a few blocks from the downtown area in a primarily residential part of Nashua, NH, Vic Chaput opened Vic’s Garage, a Gulf station that also performed service, repairs and provided machine shop service. In typical fashion, the one work stall featured a drive-on pit to facilitate oil changes and other chassis work. Business was good. But in 1951, Vic had a vision that the parts business was the future, and so, being located on Pine Street, Pine Motor Parts was born. For his new business, Vic needed more enclosed business space and less open lot. That meant erecting a new addition to his building. But a customer and friend had a better idea. A local manufacturing company was diversifying and didn’t need all of their building space, which was located only a few blocks away. Parts of that company’s building were physically moved down Pine Street— bricks, mortar, large wooden beams and all—and became the new Pine Motor Parts building. At the time there were only three, and a few years later, four other auto parts jobbers in the entire city—all of them fairly small, family-run operations. All had their customer base, and all co-existed in relative harmony. It was also in 1951 that Vic’s son, Roger Chaput, joined the business and began working the front counter and helping out in the very busy machine shop. Through the 1950s and 1960s, the parts business was good … as was the machine shop business. But by the end of the ‘60s, Roger could sense change in the air. Inevitably, cars would be built better and not consume so many parts at the blistering rate seen in the earlier ‘60s. There was talk in the industry of large, vertically integrated auto parts jobber chains taking over. Large companies were remanufacturing carburetors, starters and alternators faster and cheaper than could be done in their machine shop. Engines were 64

better-built, so engine rebuilding and valve jobs would soon be a thing of the past. Roger looked around the industry, saw how well a local competitor was doing with paint and body supplies, saw a steady increase in the number of body shops in and around town and decided that was the direc-

tion his company should take. There was just one problem. Roger’s father, Vic Chaput, saw no reason to get into the PBE business. He had made his money in the mechanical field, parts business and machine shop business, and he was determined that his son would carry on that tradition. In time, Vic retired, Roger bought his share of the business, and in 1976 Pine Motor Parts got into the PBE business with the Acme line of paint. Traditionally, auto parts jobbers had been selling paint and related products since the 1930s. By the 1970s, PBE jobbers would start to emerge. In fact, for the first time, in 1972 the Automotive Service Industry Association (ASIA) recognized PBE jobbers as a valid entity for the industry. Roger knew he was headed in the right direction. Also in 1976, Roger’s son, Dan Chaput, was fresh out of high school and had taken an interest in the paint side of the business. In fact, he had been hanging around a local body shop where the shop owner was also involved in auto racing. Young Dan was in his element there, fast cars and the smell of paint thinner. The shop owner showed Dan how to lay on a fresh, shiny coat of paint. There was a certain satisfaction that came with a well-painted car, and Dan wanted to learn all he could about body work. Soon, Roger and Dan had “the talk” that many dads and sons have when the dad owns a business. Roger asked Dan if he would get more involved in the business if they went deeper into the PBE business. It seemed like a match made in heaven. In the winter of 1977, Dan (better

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

known as “Mud” because of his propensity to race motorcycles through unpaved fields) took a larger role in his father’s business. They took on the RM paint line, found sources for other related products, abrasives, hand tools and the like, and Pine Motor Parts began a 30-year metamorphosis into a PBE jobber. In a telephone interview, Dan remembered those early days. “At first we were small—not able to buy products direct,” he said. “So, several times a week, I would leave my house early in the morning and drive to the AMREP warehouse in the Boston area, about a 120-mile round trip. I would get back just in time to open the store at 8 a.m. It made for some very long days.” When asked about the difference between the parts business and PBE business, Dan replied, “In many ways, the PBE business has way more potential because we can stretch our business area much wider. In the parts business, shops are calling for parts that need to be installed in a customer’s car within hours. Most repair

customers want to pick up their car at the end of the day. So the geographic space you can cover is limited. However, many PBE products will be purchased today, delivered tomorrow or the next day and consumed maybe days after that. In the parts business, we had to stay in maybe a 10-mile radius of our store. Now we can go south into Massachusetts, east as far as the Atlantic coast of New Hampshire and Massachusetts, north into New Hampshire’s Lakes region and west into New Hampshire’s Monadnock region. We have gone from about a 10-mile radius to about 100 miles. That’s a lot more customers and a lot more business.” As Roger had predicted in the mid-1970s, the auto parts business landscape changed dramatically. Many of Pine’s long-time customers eventually went out of business due to retirements, family issues, etc. The sources for a small mom-and-pop parts store to acquire parts inventory was drying up, and the “big boys” of the industry—Auto Zone, Pep Boys See PBE Jobber, Page 68

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65


Top Automakers Committed to Advanced Technology by Elana Ashanti Jefferson, Property Casualty 360

In insurance, as well as the many industries, investments and individuals who rely on it, three “mega-trends” continue to force customer service and product innovations: • Artificial intelligence (AI) • Mobility • The Internet of Things

These three themes punctuated a recent webinar hosted by CCC Information Services titled “Driving Change: How artificial intelligence and smart technologies are revolutionizing our industry.” Led by CCC’s Industry Analyst and Director Susanna Gotsch, who’s also a regular contributor to PropertyCasualty360.com, and CCC’s Senior Vice President of Product Management Jason Verlen, the presentation looked at how advanced technologies are changing the insurance business, most notably the auto insurance business. “Advances in digitalization, artificial intelligence, machine learning, the Internet of Things (IoT),

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sensor and camera technology are driving dramatic change and improvements in automotive technology. And these advances are creating a ripple effect throughout the entire

automotive ecosystem,” Gotsch wrote in the CCC report “Crash Course 2018,” which she referenced during the webinar. Consider that: • In 2017, over 90 million vehicles were sold globally • The United States continues to be among the largest markets for vehicle sales in the world • A strong economy and low unemployment in the U.S. continues to drive consumer interest in vehicles

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In 2017, the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) tackled that question by monitoring automakers that have committed to installing automatic emergency braking (AEB) as a standard feature. Twenty automakers have pledged to voluntarily equip virtually all new passenger vehicles with a low-speed AEB system by 2022. Together, these companies represent the vast majority of the U.S. auto market. These automakers are: • Porsche • Jaguar/Land Rover • Ford • Mitsubishi • Kia • Fiat Chrysler • Hyundai • Nissan • General Motors • Mazda • Maserati/Alfa Romero • Honda • Volkswagen • Subaru

with such high-tech bells and whistles as WiFi and advanced driver assistance systems (ADAS) ADAS-equipped vehicles in particular—meaning those that automate, adapt and enhance vehicle systems—are reshaping the way auto insurance is sold and auto accident claims are handled. Among the many reasons why: “ADASequipped vehicles have a lower percentage of frontend accidents,” Gotsch said during the CCC webinar. “Accident frequency will reduce over time, and the industry will see fewer accidents.” In the event of an accident involving an ADAS-equipped vehicle, however, these intelligent technologies may lend themselves to tricky liability questions. Seeking Out Safety How can consumers and insurers decipher which new vehicles feature the latest ADAS technologies?

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M, W, F 7am-8pm; Tu, Th 7am-6pm Sat 7:30am-4pm fuszkiaparts@fusz.com www.kia.fusz.com

Napleton’s Mid Rivers Kia St. Peters

Hawkinson Kia Matteson

(708) 720-8972 (708) 720-0657 Fax

M, W, F 6am-5pm Tu, Th 6am-7pm; Sat 8am-2pm jmihas@hawkinsonnissankia.com www.hawkinsonnissan.com/ez-parts

Raymond Kia Antioch

(847) 395-3600 (847) 838-7997 Fax

M-F 7am-6pm; Sat 7am-2pm kweber@raymondchevrolet.com

IOWA

Kia of Des Moines Des Moines

(515) 727-1815 (515) 309-1412 Fax

M-F 7am-6pm; Sat 7:30am-4:30pm parts@kiadm.com www.kiadm.com

KANSAS Midwest Kia Wichita

(316) 652-2960 (316) 652-2992 Fax

M-F 8am-6pm; Sat 8am-2pm wsturm@midwestkia.com

(440) 934-5247 Fax

M-F 7:30am-6pm bgordon@gomontrose.com www.montrosekia.com

(877) 221-4151

*Genuine Kia replacement parts (except battery) sold by Authorized Kia Dealer under warranty are covered for the greater of (1) the duration of the New Vehicle Limited Warranty or (2) the first 12 months from the date of installation or 12,000 miles, whichever comes first. Labor charges not included when not installed by an Authorized Kia Dealer. Warranty is limited. See Kia’s Replacement Parts and Accessories Limited Warranty for further details.

Sheffield

(440) 934-6699

M-F 7:30am-6pm mattr@lansingisyoung.com www.kiaoflansing.com

MISSOURI

From headlights to tail lights, bumpers to fenders and hoods, there is no substitute for genuine. The only way to assure that you are getting Genuine Kia parts, backed by the Kia Warranty, is to order them from your local Authorized Kia Dealer. Contact your local Kia dealer for assistance and delivery of the parts you need.

OHIO

Montrose Kia

(888) 816-9729 (636) 926-0683 Fax

M-F 7am-6pm; Sat 7am-3pm bprinster@napleton.com pschnare@napleton.com www.midriverskia.com

Suntrup Kia St. Louis

(800) 727-8496 (314) 815-3060 Fax

M-F 7am-5pm www.suntrupkiasouth.com

NO. DAKOTA Kia of Fargo Fargo

(800) 728-7601 (701) 282-5924 Fax

M-F 7am-5:30pm; Sat 8am-5pm

VanDevere Kia

(330) 836-4064 (330) 836-4074 Fax

M-F 7:30am-5:30pm chevyparts@vandevere.com www.vandevere.com

Waikem Kia Massillon

(800) 225-0281 x1447 (330) 478-0900 (330) 478-9957 Fax M 7:30am - 8pm Tu-F 7:30am - 5:30pm Sat 8am - 4pm mmiller@waikem.com www.waikem.com

WISCONSIN Bergstrom Kia of Appleton Appleton

(920) 993-3000 (920) 749-1588 Fax

M, Tu, Th, F 7am-6pm; W 7am-8pm; Sat 8am-5pm anoldner@bergstromauto.com www.bergstromkiaappleton.com

Russ Darrow Kia of Waukesha Waukesha

(262) 896-1151 (262) 896-1188 Fax

Jeff.krueger@russdarrow.com www.kiaofwaukesha.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

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• • • • • •

Toyota BMW Volvo Audi Mercedes-Benz Tesla

“IIHS is pleased to see that automakers are steadily moving toward the shared goal of putting standard AEB into every new car they sell,” David Zuby, executive vice president and chief research officer of IIHS, said in a December 2017 press release. “This is a big win for safety on our nation’s roads, which will see fewer crashes and injuries because of this commitment.” The chart to the left prepared by the NHTSA and the IIHS indicates which automakers are currently ahead of the game when it comes to installing AEB in every vehicle and those that still have some catching up to do. This article was originally published on PropertyCasualty360.com. Copyright (c) ALM Media Properties. All Rights Reserved. Republished here with permission.

Continued from Page 64

PBE Jobber

and O’ Reilly’s—were taking over. In July 2017, Pine Motor Parts sent out a letter to all its existing wholesale parts accounts announcing that, after 61 years, Pine Motor Parts would cease the auto parts business and be a full-blown PBE jobber. “It was a no-brainer,” said Dan’s brother, Dave Chaput. “Our accountant showed us how much money we were making on parts and how much on paint products, and there was no question in my mind where to go.” Dan and Dave exacted something their grandfather never wanted to do—turn his Gulf station into a paint store. One of the auto parts products that consumed a lot of space and had a rapidly dwindling sales volume was exhaust pipes and mufflers. Once the exhaust inventory was gone, there was enough space to reconfigure the store, add another line of paint products and create a showroom. Dave assumed the task of managing the store on a day-to-day basis while Dan made the rounds calling on

body shops. Pine still maintains a fleet of five delivery trucks running routes on a weekly basis. When asked about his present competition now that they have made the commitment to the PBE business, Dan said, “There is really nobody else in Nashua that goes after the business like we do. There are some jobber salesmen that come into NH from MA, but since our major local competitor sold their store a couple of years ago, we have been doing pretty well.” When asked if Finish Master, one of the largest PBE chains in the country, was a competitor, Dan replied, “They don’t have a brick and mortar store in NH …yet … but we can feel their presence.” Given the current state of the collision industry with so much consolidation and with smaller shops going out of business, Dan was asked how he saw the future for his business. He replied, “We don’t see the large MSOs coming to New England and gobbling up smaller shops. We don’t see smaller shops going out of business around here. We don’t see small shops trying to act like big

shops using new business practices or repair methods. In fact, we really don’t see a lot of change at all. I think for that [the] next five years or so, things will remain pretty much the same. My only worry is where new technicians will come from to carry the industry. One of our local voctech schools had to cancel their collision repair curriculum last semester for lack of students. That’s sad.” Today, more than 70 years after Vic’s Garage first hung out its shingle on Nashua’s Pine Street, thanks to the vision and foresight of the Chaputs, the family business has morphed several times—each time bringing success with a new business model. Today, it is known as Pine Motor Parts / PBE Specialists. The drive-on pit that once ran down the center of Vic’s work bay is still there, filled in with dirt and covered with a concrete floor holding displays of primer, paint guns and sandpaper. Hopefully, Vic Chaput is looking down on the success of his grandsons with a smile.

www.autobodynews.com

Audi dealers strive to make you an Audi Genuine Parts fan.

Illinois

South Dakota

Audi Exchange

Audi Sioux Falls

Highland Park 847.432.5880 847.432.5708 Fax

Sioux Falls 888.540.6399 605.221.0550 Fax

gorejel@audiexchange.com

parts@grahamauto.com

Missouri

Ohio

Kansas City Audi

Audi Middleburg Heights

Kansas City 866.949.9500 Toll Free 816.941.4969 Direct 816.942.3156 Fax M-F 7am-6pm Sat 8am-5pm

Middleburg Heights 888.278.2400 216.898.5630 440.243.2795 Fax M-F 7:30am-6pm wholesaleparts@sunnysideauto.com

cfowles@molleaudi.com

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Choose Original MINI Parts. ILLINOIS THESE DEALERS are GENUINE WHOLESALE PARTS SPECIALISTS.

Michigan

Sunshine Toyota

Patrick MINI Schaumburg 847-605-4055 (847) 619-4511 Fax Hours: M-Sat 8am-5pm

269-965-1000 BATTLE CREEK

269-441-1262 Fax M-F 7:30am-6pm jody@sunshinetoyota.com www.sunshinetoyota.com

The Dealers Above Are Original MINI Parts Distributors


Oldest Body Shops in America: Keene Auto Body

Eleanor, visited Keene, NH, about 20 miles away. They obviously liked If there has ever been a quintessen- it, and moved to Keene shortly theretial New England town, it’s Keene, after. In 1928, Ensio founded Keene NH. Auto Body & Welding Co. at 543 Main St., where the business has remained ever since. The building has undergone several changes and expansions, but after almost 100 years, the business remains in the same spot. Paul Piispanen, the son of Ensio, took over the business in the 1950s and ran it with his wife, Katherine PiKeene Auto Body founder Ensio Piispanen, date unknown ispanen. In the 1990s, Nestled in the southwestern third-generation owner Steven Pipart of the state, it is an idyllic area ispanen, Paul and Katherine’s son, for viewing the famous New Hamp- took over the reins. Keene Auto Body specializes shire fall foliage. It is the Cheshire County seat and the home of Keene in auto body repair and offers 24State College and Keene Auto Body. hour towing, serving the entire MonKeene Auto Body was founded adnock region. in 1928 by Ensio Piispanen, an immigrant from Finland. When he moved to the United States, he AUTOBODY worked for a car factory in Winchendon, MA. Later, he and his wife, www.autobodynews.com by Gary Ledoux

Continued from Page 54

Peer Groups

most likely do by yourself. These types of groups often provide training and coaching and help develop standard operating procedures (SOPs) for your shop. Many performance groups will track data on each shop, whether it’s financial, performance or both. Sometimes they even track marketing as well. You can then learn from analyzing the numbers in the group. Data can be really powerful for business growth, especially when you are sharing the information. Performance groups also offer 20 group-type meetings, purchasing programs and assist with insurance questions, I-CAR training and OEM certifications.

Q: A:

Are there other groups you recommend taking part in?

There are also non-industry networking groups/organizations such as your local church, the Chamber of Commerce, Rotary, Ki-

Original Thought #78

YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. ILLINOIS

Laurel BMW of Westmont

Westmont 630-230-2890 Direct Wholesale M-F 7am-6pm Sat 8am-3pm www.laurelbmw.com

Patrick BMW

Schaumburg 847-605-4055 847-619-4511 Fax M-Sat 8am-5pm

INDIANA

Basney BMW

South Bend 800-274-8504 574-273-5075 M-F 7:30am-6pm parts@basneyimports.com www.basneybmw.com

KENTUCKY

BMW of Louisville

Louisville 502-499-4552 502-499-4476 Fax M-Sat 8am-5pm bmwparts@louisvillebmw.com

MICHIGAN

For more information about 1Collision Network, email info@1collision .net or visit http://1collision.com/ body-shop-partners/.

For more information about Dave Luehr’s Elite Body Shop Academy, email info@elitebodyshopsolutions .com or visit: elitebodyshopsolutions .com/academy.

Your leading source for MIDWESTERN Collision Repair News! midwestern.autobodynews.com

• Original BMW Parts & Accessories

Erhard BMW of Bloomfield

Bloomfield Hills 800-626-9787 248-642-0443 www.erhardbmw.com

Erhard BMW of Farmington Hills Farmington Hills 888-834-8635 248-699-3003

wanis and Business Network International (BNI). Even the school PTA and athletic booster clubs can be good for networking. Overall, I’ve found that the business community can help grow your business after you get integrated in these types of organizations. They are very valuable resources.

www.erhardbmwoffarmingtonhills.com

BMW of Okemos

Okemos 517-853-2600 517-853-2661 Fax M-F 7:30am-6pm mbedard@lovewhatyoudrive.com www.okemosautocollection.com

MISSOURI

Autohaus BMW

St. Louis 314-880-8426 314-880-8428 M-F 7am-6pm brian.fischer@bmwautohaus.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

69


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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com


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