October 2020 Midwest Edition by Autobody News

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AUTOBODYNEWS.COM Vol. 10 / Issue 1 / October 2020

Toby Chess: 40-Plus Years of Service to the Industry He Loves

Toby Chess Says SOPs, Industry Training & Networking are Key to Body Shops’ Future Success

by Ed Attanasio

by Stacey Phillips

If you’ve been in the world of body shops for more than a few years, you likely know the name Toby Chess. He’s the smiling bearded guy who brings gifts to people—and no, he’s not Santa Claus. His story all began in a salvage yard and has turned into a fantastic career of teaching, mentoring and helping the collision repair industry and other people on many levels. Chess, 75, has given his life to others through several channels and

Several weeks ago, a local body shop owner asked Toby Chess to help set up a welder to repair an aluminum deck lid on a Mercedes-Benz. When Chess arrived at the facility, he quickly realized the technician didn’t have an understanding of the process to repair the vehicle. As a result, Chess created a Standard Operating Procedure (SOP) for the shop, laying out the steps to get the job done. Since then, Chess has created more than 30 SOPs for the collision repair industry and has been

See Toby Chess, Page 12

Toby has been involved in First Responders’ auto body extraction for many years.

‣ See Nonprofit Finds, Matches Living Organ Donors , Page 47

Toby’s SCRS presentations are often hands -on and use attendees to push concepts.

sharing them with shops across the country. See Training & Networking, Page 14

• Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement, Page 54 • Toby Chess: Best Practice for Pre and Post Scans, Page 54

Expert Predicts Auto Industry Could Take 2 Years to Rebound to Pre-Pandemic Sales Levels

Luxury Vehicle Sales Expected to Rebound from Covid-Driven Depression

by Dave Boucher, Detroit Free Press

by Kimberly Hurley, CBT News

It’s going to take at least two years for auto manufacturers to restore the sales and production numbers seen before the start of the coronavirus pandemic, an industry expert told Michigan lawmakers in Lansing on Sept. 2. Despite successful efforts from suppliers and manufacturers to keep their doors open and employees safe, staffing shortages and some overall drop in demand means the industry

The coronavirus pandemic has not been beneficial to most industries, and this definitely includes the auto industry. According to Cox Automotive, the Kelley Blue Book Brand Watch™ reported that for Q2 2020, luxury vehicle sales dropped 35% and hit their lowest level in the past two years. The past couple of years had already seen a decline in luxury sales, with just 34% of consumers considering one, down from 39% in Q3 2018. There are various reasons for this, but for starters, lower-priced non-luxury vehicles are starting to be manufactured with technology previously only featured in luxury vehicles. But the news isn’t grim. Luxury vehicle sales are expected to recover as the circumstances that caused the drop dissipate. One reason luxury brands were highly affected by the pandemic, according to Cox Automotive, is that

The automotive industry did not take as big of a hit as many predicted due to the coronavirus pandemic. But experts and analysts told Michigan lawmakers on Sept. 2 their future is still a bit tenuous. Credit: Eric Seals, Detroit Free Press See Pre-Pandemic Sales, Page 23

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New York City and Los Angeles are the two highest luxury markets in the country. Seeing as those cities have been plagued by coronavirus for months, it is no surprise demand sharply decreased and sales dropped. The good news is as these areas recover in terms of economy and health, sales should too. Dealerships will be open for business, and healthy consumers who are open to shopping again will begin to do so. Inventory levels have also been a struggle for luxury manufacturers due to the massive halt in supply chains that shut down factories for weeks or even months. As you might expect, the best-selling luxury vehicles are currently at the lowest inventory counts. Japanese and German automakers have lagged behind the most, including Mercedes Benz and BMW. This is expected to get a lot better now that factories are back up and running, albeit with a lot more social See CAA More Essential, Page 24

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CONTENTS REGIONAL

CCC AutoClaims Snapshot—August 2020.........59

Chicago’s Kennedy-King College Collision

CREF Supporting COVID Impacted Schools ........10

TopGolf Fundraiser ........................................10 Clean Car Advocates Push for Emissions Rules ...29 Crash Champions Enters Milwaukee Market .....28 Crash Champions Enters Missouri .....................11 Detroit Native Offers Keys to Finishing First on the Track or at the Shop ...........................17 GM to Make 100 Temps Permanent at Truck Plant in COVID Hotspot.........................20 GM, Ford Shutting Down the ‘Arsenal of Health’ ..8 No Accident Licari Auto Body Supply is Surviving ..8 North Ridgeville, OH, Auto Body Focuses on Quality Repairs and Personable Service ........26 Ohio Legislature Sends COVID-19 Liability Protection Bill to Gov. DeWine .......................16 Ohio Teens Go on Car Theft Spree, Leave Trail of Chaos ................................................28 WI Gov. Condemned Kenosha Violence After Two Nights of Rioting in August .....................11

Daimler AG to Pay $1.5B for Emissions

Anderson - Five Years of Data Shows ‘Who Pays’ Surveys Making a Difference ...............48 Attanasio - Are You Defending Your Good Name Online? ......................................40 Phillips - Preparing & Training the Agents of Change in Future Technology ....................38 Sisk - AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID ........34 Yoswick - Committee Demonstrates How Same Part Can Be Described Differently .......44 Yoswick - Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler .......................32

A Look at Kidney Disease and Ways to Help Toby Chess .............................................6 Allstate, GEICO Among Large Auto Insurers Facing COVID-19 Rebate Backlash ................22 As Hurricane Season Arrives, CARFAX Provides a Flood of Information .....................59 ASE Survey Finds Adaptions..............................59

www.autobodynews.com

Expert Predicts Auto Industry Could Take 2 Years to Rebound to Pre-Pandemic Sales Levels ......1 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, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

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. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes ................. 12

Malco ............................................................. 22

Audi Wholesale Parts Dealers .......................... 53

McGrath City Hyundai ..................................... 42

AutoNation Collision Parts ................................. 7

Midwest Parts Group..................................18-19

BMW Wholesale Parts Dealers ........................ 51

MINI Wholesale Parts Dealers.......................... 50

Car-O-Liner..................................................... 25

Mirka USA, Inc ................................................ 16

Certified Automotive Parts Association ............ 20

Mitsubishi Wholesale Parts Dealers ................. 54

Classic Chevrolet ............................................ 33

MOPAR Wholesale Parts Dealers ................36-37

Classifieds ...................................................... 58

Morrison’s Auto Parts ...................................... 32

Protection—Keys to a Safe and Proper

Courtesy Subaru ............................................. 39

Network 1 Solutions Collision Equipment ........ 23

Collision Repair .............................................46

Eagle Abrasives, Inc ........................................ 15

Nissan/Infiniti Wholesale Parts Dealers............ 56

Eckler’s Automotive ........................................ 11

Patrick BMW MINI ........................................... 47

Equalizer Industries, Inc .................................. 17

Patrick Hyundai............................................... 46

FAST Shelter ................................................... 10

SATA Dan-Am Company .............................. 2, 13

& Networking are Key to Body Shops’

FI. TIM SRL ....................................................... 8

Sears Imported Autos, Inc ............................... 38

Future Success ...............................................1

Ford Wholesale Parts Dealers .......................... 56

Shaheen Chevrolet Parts Warehouse ............... 28

Gandrud Parts Center...................................... 21

Sherwin-Williams Automotive Finishes ...........4-5

GM Wholesale Parts Dealers ........................... 49

Southern Polyurethanes, Inc.............................. 9

Hawkinson Kia ................................................ 40

Steck Manufacturing Company ....................... 24

Honda-Acura Wholesale Parts Dealers .......30-31

Subaru Wholesale Parts Dealers...................... 52

Hyundai Wholesale Parts Dealers .................... 57

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

Innovative Tools & Technologies, Inc ................ 27

The Porsche Exchange .................................... 14

Kelly BMW ...................................................... 34

The Sharpe Collection of Automobiles ............. 45

Kia Wholesale Parts Dealers ............................ 55

VanDevere Chevrolet....................................... 43

Laurel Auto Group of Westmont ....................... 41

VanDevere Kia ................................................ 43

Luther Bloomington Acura-Subaru .................. 35

Wedge Clamp Systems ................................... 29

Luther Kia of Bloomington ............................... 14

Zimmer Chrysler-Dodge-Jeep-Ram ................ 60

Filterworks USA Becomes Autotality to Reflect Expansion Within Automotive Equipment Industry .......................................51 GM Helping Uber Switch to Electric ...................22 GM Tells Most Salaried Workers to Stay Home Till Next Summer ................................58 Honda Agrees to $84M Multistate Settlement for Defective Airbags.....................................57 Is Your Shop and Insurance Coverage Prepared for A Riot? ......................................50 Luxury Vehicle Sales Expected to Rebound from Depression .............................................1 Nonprofit Finds, Matches Living Organ Donors ..47 PPI: August Shows Upswing in Auto Glass Material Pricing ..............................................6

Restore Crashworthiness with Corrosion

SEMA Data Co-op Acquires PartsHub ................56 Speaker Highlights Common Challenges Involved in ADAS Calibration .........................56 Toby Chess Says SOPs, Industry Training

Toby Chess: 40-Plus Years of Service to the Industry He Loves .....................................1 Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement ........................54 Toby Chess: Best Practice for Pre and

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ProColor Collision to Enter U.S. Market ..............58 COLUMNISTS

800-699-8251

Post Scans....................................................54 Turn Eight Common Shop Owner Mistakes into Positive Life Lessons with Mike Anderson .....52 Uber Plans to Have an All-Electric Fleet by 2030 and a Zero-Emissions One by 2040 .....53 Will Burgeoning E-Commerce Hurt the Collision Repair Industry?..............................42

INDEX OF ADVERTISERS

Program to Benefit from CREF’s November

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

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A Look at Kidney Disease and Ways to Help Toby Chess by John Huetter, Repairer Driven News

Collision industry trainer, mentor and Hall of Eagles member Toby Chess is among the many Americans suffering severe kidney disease, undergoing dialysis and in need of an organ from a living or deceased donor. Colleagues have started a GoFundMe fundraiser to help Chess. “Toby Chess is known throughout our industry, not only as an amazing instructor with a plethora of technical knowledge, but for his willingness to give of himself, impart his knowledge to others and to ALWAYS do the right thing,” the GoFundMe campaign states. “Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule. “He has spent his life in service of others within our industry, and now has the opportunity to feel the reciprocal support from an industry that appreciates what he has done. Currently, Toby is undergoing dialysis three times a week, for four hours per treatment. This fund represents a way for an industry that is grateful, to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.” Contributions can be made here. Chess’ high-profile example might leave collision repairers and other colleagues curious about kid-

ney disease and organ donation as well. The Centers for Disease Control estimates about 15% of U.S. adults have some form of chronic kidney disease, with nearly all unaware they have it. Simple blood and urine tests will tip off doctors to the presence of

Toby Chess, right, hugs his wife, Sheila, after winning one of many Society of Collision Repair Specialists honors. Credit: Provided by Aaron Schulenburg/SCRS

the condition. The National Institute of Diabetes and Digestive and Kidney Disease said people with high blood pressure, diabetes, heart disease or a family history of kidney failure are demographics that particularly should get tested. The illness leaves excess waste and water within the body—the damaged kidneys aren’t able to filter out the substances to the degree a healthy kidney would. Heart disease and stroke risks increase, and more specific illnesses like anemia or a weakened immune system can arise if the condition worsens. Some forms of kidney disease are manageable. However, Chess has Stage 5 chronic kidney disease, which is considered complete kidney failure. Ongoing dialysis is necessary to live. The dialysis process serves as

a replacement for failed kidneys by artificially removing waste and water from the body, according to the National Kidney Foundation. Reaching a state of chronic or endstage kidney failure stage leaves a patient on dialysis permanently unless he or she can get a new kidney. According to the American Kidney Fund nonprofit, most patients have to wait three to five years before a kidney is available from someone who has died. Chess’s transplant facility, the University of California, Los Angeles, says the Los Angeles-area wait time is five to 10 years. However, living Americans are permitted to donate a single kidney or a piece of a liver to whomever they choose. “Kidney is much more common,” said Anne Paschke, spokesperson for the United Network for Organ Sharing, the organization that manages the national transplant list. Last year saw “nearly 7,000” kidney transplants related to living donors, she said. Prospective donors should contact the prospective recipient’s transplant center, which will evaluate whether the donor’s blood type and antibodies are an appropriate match. Though it’s possible some of the preliminary testing can be done in the donor’s home area, prospective donors should still start the process by contacting the recipient’s local transplant center, Paschke said. For Chess, donors would visit www.uclakidneydonor.org and provide his name, Toby Chess, and date of birth, Aug. 6, 1945. About one in five donors are

healthy enough to provide a kidney, according to UCLA. Assuming that threshold is met, blood type and antibody compatibility are the two main variables tested to determine a match, according to Paschke. A person with Type O blood can only receive a Type O person’s kidney. Someone with Type A blood needs either a Type A or Type O person’s kidney, and someone with Type B blood must have a Type B or Type O donor. However, Type AB blood means a recipient can use a kidney from any of the four blood types. Rh factor (the + or – associated with a blood type) only matters “in some very rare cases,” Paschke said. It’s still possible for a donor to help their intended recipient even if both parties aren’t a match, Paschke said. A donor who isn’t a match for their intended recipient can be set up with a paired exchange. Here’s how it works. Let’s say Person A wants to donate to Person B and Person C wants to donate to Person D, but neither is a match for their recipient. But if A and D are compatible and B and C are compatible, then A donates to D and C donates to B. The two donors have still given a kidney, and the two intended patients received one, so it all works out. The transplant center would set up such a pair donation. The transplant center can sort all the willing donors and their desired recipients and see if a paired match would work. Paschke said some trades even involve more than two pairs of donors to obtain the required results.

PPI: August Shows Upswing in Auto Glass Material Pricing by Emmariah Holcomb, glassBYTEs.com

Prices for materials used in the auto glass industry showed mostly increases in August, according to recently released Producer Price Index (PPI) data from the Bureau of Labor Statistics (BLS). The monthly PPI, which includes auto glass*, increased by 1.4% on a year-over-year basis. The PPI went down by 0.1% from July. According to the BLS, the

commodity classification “organizes products and services by similarity or material composition, regardless of the industry classification of the producing establishment.” Prices for motor vehicle parts went down by 0.1% from August 2019, and in that index, in the commodity grouping, month-overmonth prices remained the same. The PPI for molded rubber mechanical goods (automotive) remained the same when compared to

its reading last month, and also saw a decrease of 1.4% when compared to last year. Adhesives and sealants saw an increase of 0.2% when compared to last month and saw an increase of 1% from last year. Motor vehicle repair and maintenance, in the services grouping, went up by 0.1% on a month-over-month basis, as well as going up by 2.1% for the year. The cost of private passenger

auto insurance services went down by 0.3% when compared to last month, which resulted in a 0.7% increase on a year-over-year basis. Commercial auto insurance went up by 0.4% on a month-over-month basis and was up 3.5% year over year. *This number is for the specialty glass category in August under the commodity category. We thank glassBYTEs.com for reprint permission.

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GM, Ford Shutting Down the ‘Arsenal of Health’ by Paul A. Eisenstein, The Detroit Bureau

General Motors and Ford Motor Co. are wrapping up production of ventilators, face masks and other life-saving personal-protection equipment, a response to the COVID-19 pandemic that has become known as the “Arsenal of Health.” Working with its partner, Ventec Life Systems under a $489 million federal contract, GM delivered the last of 30,000 ventilators Aug. 31. Ford topped 50,000 of the ventilators it was contracted to build Aug. 28 but formally wrapped up production the following week. “Our drive to put critical care ventilators into production was fueled by thousands of people at GM, Ventec and our suppliers who all wanted to do their part to help save lives during the pandemic,” Mary Barra, GM chairman and CEO, in a statement announcing the end of the production program. “It was inspiring to see so many people achieve so much so quickly.” The two automakers were among the many U.S. companies that stepped in to assist as the coronavirus pandemic struck and it became obvious there was a severe shortage of sup-

plies, especially the PPE required by medical personnel, as well as equipment like ventilators needed to treat the most severely ill patients. Ford and GM announced they would team up with existing suppliers, GM with Washington-based Ventec Life Systems, Ford with GE Healthcare. Even as they shut down their parts and assembly plants due to the pandemic, they each carefully converted several facilities to handle production of the medical gear. Ford has been producing ventilators at a suburban Detroit factory, with several others handling face shields and masks. GM tooled up ventilator production at an electronics plant in Kokomo, IN, with other plants handling masks. Over the course of a 154-day run, GM rolled out one ventilator, on average, every seven minutes, 30,000 in all. Ford ran at an even faster pace, ventually completing 50,000 Model A-E ventilators under a $336 million federal contract. The move by the two manufacturers reminded some of how the domestic auto industry stepped in during World War II to produce guns, Jeeps, bombers and other supplies,

earning the nickname, “the Arsenal of Democracy.” While they have ended producing ventilators, which are meant to assist the most severely ill patients breathe, Ford and GM say they aren’t completely stepping away from the needs created by the pandemic.

Ford produced the last of its contracted 50,000 face masks Aug. 28 and wrapped up all pandemic-related production the following week.

The bigger of the two on Sept. 1 announced it would donate 2 million face masks to Michigan public schools to help students return to classrooms. Production will wrap up at the end of this month. For its part, Ford spokesperson Rachel McCleery said the automaker “will continue to look for ways to address the needs of our communities and workforce as the COVID-19 pandemic continues.”

When the pandemic first hit there were reports of severe shortages of supplies such as masks and ventilators, especially in hard-hit communities like New York City and Detroit. That led to unnecessary deaths of not only patients but medical practitioners who, in many cases, had to make do with bandanas and scarves rather than medical-grade masks and other gear. The equipment GM supplied proved to be “valuable tools enabling our medical team to save lives. I’m proud to say we have had many patients beat COVID-19, wean off the ventilator and safely return home,” said Dr. Suzanne Pham, of Weiss Memorial Hospital in Chicago. For now, those in charge of the federal stockpile say there are more than enough ventilators and other PPE to handle the current rate of infections. But the coronavirus has proven incredibly difficult to stamp out and the number of reported cases has begun to surge again, leading some experts to fear that things could get worse as cold weather settles in over the coming weeks and months. We thank The Detroit Bureau for reprint permission.

No Accident Licari Auto Body Supply is Surviving by Steve Taylor, Jefferson County Leader Publications

Licari Auto Body Supply in High Ridge, MO, like almost all businesses, was affected by the COVID-19 pandemic, but in an unexpected way. “We absolutely felt it,” said Sales Manager Greg Schlereth. “When the shelter-at-home orders were in place, people were staying at home more, and there was less vehicular traffic, so there were fewer accidents.” Licari, which was founded by Schlereth’s father-in-law, Marshall Aulbach, in 1978, sells automotive refinishing materials, like paint and painting supplies, to body shops. Schlereth said fewer accidents translates into less demand for its products. There’s also another aspect to the business, he said. “We also have some walk-in trade for do-it-yourselfers,” Schlereth said. For those folks, the store has been following all the regular guidelines. “Like restaurants, we’ve also been offering curbside pickups,” he said, from its location at 2800 High Ridge Blvd. The bulk of the business, how-

ever, is delivering products to clients. “From the early going of all this, we’ve communicated with our customers on how they want us to proceed,” Schlereth said. “Do they want us to just drop off their orders, or do they want us to come in and speak with them? We worked with everyone to make sure they were comfortable with doing business with them.” He said the business, which applied for a Paycheck Protection Program (PPP) loan through the Small Business Administration, shared its experience with its customer base.“We gave information about the PPP loan process to everybody we could,” Schlereth said. “If they got a loan that helped them stay in business, that helped us stay in business.” Licari has 12 employees, both in High Ridge and at a satellite office in Rolla. “We’re a family-owned and family-operated business, and we try to go beyond to offer services our competitors can’t,” Schlereth said. We thank Jeﬀerson County Leader Publications.

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Chicago’s Kennedy-King College Collision Program to Benefit from CREF’s November TopGolf Fundraiser Kennedy-King College’s collision program, the only post-secondary collision program within the City Colleges of Chicago, will receive half of the funds raised during the Collision Repair Education Foundation’s (CREF) event, from 6 to 9 p.m. Nov. 20 at TopGolf Schaumburg. Funds raised during the networking event will help Kennedy-King’s collision program purchase needed tools, equipment and supplies to best prepare students for entry-level industry employment. College staff, Kennedy-King College collision students and other guests are anticipated to attend, in addition to participating industry members and businesses. “Kennedy-King College and the City Colleges of Chicago value the support and commitment from CREF to serve our students,” said Eddie Phillips, Kennedy-King College vice president of academic student affairs. “Kennedy-King College’s Collision Technology program can play a vital role in meeting growing demand in the

auto body repair industry. It is industry partners like these that enable us to prepare students for high-skill, high-wage careers both

an aging workforce and desperate need for entry-level staff. This focused effort to support Kennedy-King College’s collision pro-

“Across the country, this industry is facing an issue of an aging workforce and desperate need for entry-level staff. This focused effort to support Kennedy-King College’s collision program will not only help current but also future students within their collision program.”

— Brandon Eckenrode

locally and nationally. We are excited about the opportunity to support the industry and highlight our Collision Technology program.” “We look forward to bringing together industry members from the greater Chicagoland area for an evening of fun but more importantly, to help raise additional support for Kennedy-King College’s collision program,” said Brandon Eckenrode, CREF director of development. “Across the country, this industry is facing an issue of

gram will not only help current but also future students within their collision program.” There are both corporate sponsorship and registration opportunities to participate. CREF is also looking for raffle table item donations to help raise additional funds at the event. Those looking to participate in the event are encouraged to contact Eckenrode at Brandon. Eckenrode@ed-foundation.org. Source: CREF

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CREF Supporting COVID Impacted Schools The Collision Repair Education Foundation (CREF) wants to publicly thank the insurance industry for rallying behind it during a time when raising funds is extremely difficult. Six extremely generous insurance organizations have stepped in to offer their support, donating funds that can help CREF make good on its mission of connecting the next generation of collision repairers with education and resources to help further advance the industry at large. Donations to CREF are down nearly 50% due to COVID-19, putting critical programs, including school grants and support, in jeopardy for 2020 and beyond. CREF would like to thank the following insurers for their generous 2020 donations: Allstate, Erie Insurance, Farmers Insurance, GEICO, Liberty Mutual Insurance, Nationwide, State Farm and USAA. Source: CREF

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WI Gov. Condemns Kenosha Violence After Two Nights of Rioting by Benjamin Yount, The Center Square

After two nights of rioting, Wisconsin’s governor is drawing a line between protesters and the people who are looting and burning buildings in Kenosha. Gov. Tony Evers on Aug. 25 said the First Amendment protects freedom of speech and the right to assemble. He said that is different than setting fires and stealing whatever you can. “There remains a line between peaceful assembly and what we saw [Aug. 24] night that put individuals, families and businesses in danger,” Evers said in a statement. The governor’s words come after two nights of violence in the streets in Kenosha following the shooting Aug. 23 of 29-year-old Jacob Blake by Kenosha police officers. Blake, who had an active warrant at the time, was seen on video fighting off officers and moving to get into his car when the officer shot him. Evers once again said protests in Kenosha and other cities are alright.

“We cannot forget the reason why these protests began, and what we have seen play out over the last two nights and many nights this year is the pain, anguish and exhaustion of being Black in our state and country,” the governor’s statement read. “But as I said [Aug. 24], and as I’ll reiterate [Aug. 25], everyone should be able to exercise their fundamental right—whether a protester or member of the press—peacefully and safely. We cannot allow the cycle of systemic racism and injustice to continue. We also cannot continue going down this path of damage and destruction.” The governor’s statement follows a number of Republicans who criticized the governor for his initial comments that seemed to blame police for Aug. 23’s shooting. Sen. Chris Kapenga, R-Delafield, on Aug. 25 said the governor is a day late to the calls for peace and calm. “Following the shooting of Jacob Blake, Governor Evers issued a statement designed to fan the flames of outrage without having any of the details necessary to make such a

judgment,” Kapenga said in his own statement. “In these situations, we should be getting facts through the investigatory process before rushing to judgment for political gain. If police officers break the law, then they should be held accountable to the full extent of the law, and vice versa.” Kapenga said his statehouse office was trashed by an angry mob the night of Aug. 24 or early Aug. 25. Madison saw its own protests and riots after Blake’s death. A mob there looted stores on State Street, set fires and took their anger back to the State Capitol on Aug. 24 and overnight Aug. 25. Wisconsin Republican U.S. Sen. Ron Johnson said the violence in the streets must not be allowed to continue. Johnson said Evers needs to call up more Wisconsin National Guard troops to protect both cities. “Peaceful protesting is a constitutionally protected form of free speech. Rioting is not. It must not be allowed to continue,” Johnson said. We thank The Center Square for reprint permission.

Crash Champions Enters Missouri Crash Champions announced Sept. 21 its entry into Missouri with the acquisition of Dodson Williams Automotive in Springfield, MO. Dodson Williams’ two locations, at 502 W. Walnut and 2916 W. Republic, have been leaders in collision repair throughout the Springfield area for four decades. “Crash Champions has beenlooking to enter the Springfield, MO, market, and we could not have found a better partner than Dodson-Williams Automotive to continue our quest to be the collision company of choice for our mutual teammates and customers,” said Alan Saviano, COO of Crash Champions. With this acquisition, the Crash Champions organization grows to 42 locations in five states: California, Illinois, Missouri, Ohio and Wisconsin. For more information about Crash Champions or to find a facility near you, please visit www. crashchampions.com. You can also visit follow them on Facebook, Twitter or Instagram. Source: Crash Champions

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Continued from Cover

Toby Chess has never slowed down. Heâ&#x20AC;&#x2122;s taught thousands of body technicians skills that are used every day to fix cars the right wayâ&#x20AC;&#x201D;Tobyâ&#x20AC;&#x2122;s way. Heâ&#x20AC;&#x2122;s been to almost every state in the union, teaching and imparting more useful information than most in this industry will ever know. Chess is well-known as an I-CAR program instructor, training specialist and renowned industry writer, but also for his work with first responders and advocacy for body shops and consumers as well. Now he has encountered another challenge with his battle against end-stage kidney disease. He has been undergoing dialysis for the past 30 months, but hasnâ&#x20AC;&#x2122;t slowed down for even a minute, and is still doing everything he can to continue on his path. Tobyâ&#x20AC;&#x2122;s passion for cars started back in the late 1960s, when he began working on old Porsches. His first project was a 1955 Speedster, and over the years, he became a Porsche expert, restoring several. In 1972, Toby and his father opened a salvage yard in Culver City, CA, specializing in Volkswagens. It had a good run until the Chess family stepped away from the business 21 years later. No longer working for his father, Toby took all her had learned about the collision repair industry and was eager to get out there and take on the world. During the next few decades, Toby worked in several capacities for independent shops and MSOs in the Los Angeles/Orange County area. He built a shop for a Honda dealership, was a regional manager for a chain of nine stores, and even worked for three years as a fraud investigator for an insurance company. In 2004, Toby started working toward becoing an instructor for I-CAR. One year later, he made a life-changing decision to take his classes on the road, when he bought a trailer and a truck and started traveling nationwide to conduct I-CAR welding instruction and testing. In his very first I-CAR welding class, Toby had 26 students, and half of them failed. So, he showed them

how to do it correctly, and realized he really enjoyed it. â&#x20AC;&#x153;I thought, I can take this on the road,â&#x20AC;? Chess said.â&#x20AC;? I could see that there was a real need for MIG and aluminum welding instruction, so I set up the road show, and it grew from there. â&#x20AC;&#x153;I hit Illinois, Indiana, Washington, Georgia, Colorado and all of California during those first years. I went where I was needed and stayed there until everyone knew how to weld. I stayed at a hotel in New Mexico for almost a month because they really needed me there. It started I-CARâ&#x20AC;&#x2122;s mobile programs, which were successful and got great reviews.â&#x20AC;? During the first 40 days of his road trip, Chess tested more than 100 technicians, a number that blew up to approximately 800 during that first year. To date, Chess estimates there are more than 20,000 collision professionals out there whoâ&#x20AC;&#x2122;ve taken his classes. Itâ&#x20AC;&#x2122;s been a busy schedule to say the least, because during much of the time, he has worked a regular job at Kent Automotive, as well as serving on the Society of Collision Repair Specialists board and acting as a featured speaker at Collision Industry Conference and SCRS events. Other impressive things on Tobyâ&#x20AC;&#x2122;s resume include his roles as co-chairman of the Write it Right Committee and an induction into the Hall of Eagles in 2003. Toby loves being able to teach someone and then watch him or her excel, he said. â&#x20AC;&#x153;It all comes down to how to make a good weld each and every time. I am still doing it today, and I never tire of it. I have a lot of good friends who passed one of my tests 10 years ago.â&#x20AC;? His teaching style has never changed, he said. â&#x20AC;&#x153;I learned how to simplify things so that people can absorb the information more easily, and I also try to make it fun. Early on, I could see that I was connecting with them because they could see that I really cared. After a while, I figured that I can teach someone how to weld in 20 minutes. I have a knack for this, plus I love it!â&#x20AC;? After visiting more than 5,000 shops and teaching more than 100,000 students, Toby now has former I-CAR students all over the country. â&#x20AC;&#x153;People come up to me all the

time and tell me that I taught them how to weld. Two weeks ago, a guy walked up to me at a Home Depot and said I trained him to weld many years ago. Yes, it is satisfying.â&#x20AC;? In addition to his teaching and mentoring, Toby is known for stepping up and helping others when in need. He helped an organization called Camp Make a Dream get a new bus, played a big role in three or four different toy drives at Camp Pendleton, and worked to establish a collision repair tech department at Belmont High School in Los Angeles. Known as a leading industry writer/columnist for more than two decades, Chess began writing for Autobody News in 2008, with his â&#x20AC;&#x153;Hey Toby!â&#x20AC;? series, and has written close to 100 articles for the publication since. He covers every aspect of the industry, with a focus on things like paint, parts and procedures. He has also written for Body Shop Business, ABRN and Tire Review, to name a few others. â&#x20AC;&#x153;I started writing in the late 1990s and I like it,â&#x20AC;? Chess said. â&#x20AC;&#x153;I write the way I talk and I try to find topics that

will provide information and tips that can be used in shops.â&#x20AC;? During every step of the way, Tobyâ&#x20AC;&#x2122;s employers have liked his managerial and organizational skills and his â&#x20AC;&#x153;can doâ&#x20AC;? attitude, and itâ&#x20AC;&#x2122;s conveyed succinctly in the text accompanying a recently established GoFundMe account. â&#x20AC;&#x153;Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule,â&#x20AC;? according to the GoFundMe page established to help him. â&#x20AC;&#x153;Toby is undergoing dialysis three times a week, for four hours per treatment. â&#x20AC;&#x153;This fund represents a way for an industry that is grateful to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.â&#x20AC;? As a lifelong giver, Toby was a See Toby Chess, Page 16

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Training & Networking “SOPs help walk you through each step of the repair process,” said Chess. “Body shops are going to need more of this in the future.” I recently talked to Chess about his predictions for the industry as a result of COVID-19 and what shops will need to be successful in the future. What changes have you seen at shops since COVID-19 and how do you think this will affect their businesses? Although volume is down in many shops, the good news is that most shop owners I have talked to say their bottom line is better today than it was before. This is because they were forced to make adjustments in the current environment and look at incorporating “lean” practices at their companies. Shops are rethinking how they operated previously and changing their business practices to become more efficient. Afterward, they often say they’ll never go back to doing things the way they did before. The key is to set up a good foundation by creating SOPs throughout your shop, such as picture taking, blueprinting and parts handling. If you don’t have good processes to follow, it doesn’t do your business any good. How can SOPs help shops repair vehicles more effectively and efficiently? When I ask body shops what they do, they usually tell me, “We repair vehicles.” Think about the following: Does a body shop not give a guarantee that the car will behave in the same way as before the repair? Do they not guarantee the car is back to its original length, width and height dimensions? Do they not guarantee the paint for the life of the repairs? Do they not guarantee that it will have the same corrosion protection as the OEM provides? My contention is that’s not repairing a vehicle; it is remanufacturing one. There’s a difference. If you agree that it’s a remanufacturing process, you can look at what OEMs do during that process and put it to use at your shop. OEMs have an SOP for everything; body shops should have them too. When cars come to a facility, technicians ideally fix them the same

way every time. Obviously, each dent on a car is going to be different, yet the process used should be the same. If I were a shop owner, I would have an SOP for every process in the shop to ensure a quality and proper repair. Once those are in place, training becomes key. What will collision repair training look like in the future? It’s going to be a mixture of hands-on and in-person. Like many other training organizations, I-CAR has transitioned the majority of its classes online right now. Typically, shop owners haven’t learned techniques online and many of us aren’t big fans of learning this way, relying on hands-on instruction for most of our careers. We need to recognize that many companies will be offering virtual training in the future and shops will need to adapt. However, when it’s available, I find that hands-on training is extremely beneficial. With the tremendous need for good-quality training, new opportunities are being offered through organizations such as I-CAR, the Automotive Management Institute (AMi), VeriFacts Automotive and VECO Experts. I also think more and more OEM training will be required in the future. Auto manufacturers are starting to take an active role in saying how they want their cars repaired. Just look at the John Eagle case. The insurance company didn’t pay the difference to have the vehicle repaired the proper way and the shop acquiesced and didn’t follow the OEM procedure. Who should the shop have been working for? It’s critical to remember that shops always work for the customer. OEM certification programs continue to grow and are offered by most manufacturers, including Porsche, Audi, Mercedes-Benz and BMW, just to name a few. There is also the University of Toyota, which is called Toyoland. Although certification programs are being offered across the country, I find many shops aren’t taking advantage of these opportunities. If technicians don’t have proper training, they will not be able to repair vehicles based on the OEMs’ specifications. Shops usually find that once they receive training on a procedure, it makes all the difference in the world.

How can shops learn more about the issues affecting the collision repair industry? They have to read! There is so much information offered by industry publications and other information available on the internet but often, people don’t take the time to look at it. Not only do they need to read about the industry, they also need to become part of the industry. I recommend that shop owners and managers get out and network. Industry events, such as the Collision Industry Conference (CIC), offer attendees the opportunity to interact with others and find someone who has a similar way of looking at things. It also allows you to learn new ideas. Many of today’s successful operators have realized the importance of getting out of their environments to see what is going on across the country. I highly encourage shops to join an industry association, such as the Society of Collision Repair Specialists (SCRS.) They offer so many helpful resources and are dedicated to supporting the industry. There is a lot of free information on their website and the membership fee is money well spent.

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As a result of your involvement with the March Taylor Foundation and other initiatives to train technicians, what advice can you offer to find qualified workers? In the past, a technician could just open the hood and figure out how to repair the car. That’s no longer the case. As new technology is developed, shops will not only need the proper tools and sophisticated equipment, but they will also need to know how to use it properly to ensure the vehicle is brought back to the car manufacturer’s specifications. One of the biggest challenges shops are starting to have and will continue to have in the future is finding someone who can address the electronics on a car as well as Advanced Driver Assistance Systems (ADAS.) The need for calibration is going to be paramount in the industry and many dealers don’t have the ability to do it. I think mentoring is really important, but we don’t do it enough. Everyone talks about the need to find good talent and train people, but shop owners and managers need to step out of their comfort zone and take the initiative to make a change.

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Toby Chess

Ohio Legislature Sends COVID-19 Liability Protection Bill to Gov. DeWine by Todd DeFeo, The Center Square

little uncomfortable about the GoFundMe page at first, but now he has decided to accept it graciously. “My wife laid it out to me. Why not let someone do something for you and not complain about it? I am so grateful for everyone who has donated, but to be honest—I hope I won’t need the money.” GoFundMe account link: https:// www.gofundme.com/f/payitforward -to-toby-chess

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The Ohio House on Sept. 2 signed off on legislation giving businesses, schools and workers liability protections from COVID-19 lawsuits. House Bill 606, the Good Samaritan Expansion Bill, now goes to Gov. Mike DeWine for his signature. The bill grants civil immunity to individuals, schools, businesses and health care providers from lawsuits stemming from the pandemic. For example, health care providers would be immune unless their actions constitute “reckless disregard” for a patient’s life or health. “Months ago when I introduced this legislation, I stated how important this was for our front line workers that they should not have to worry about lawsuits while helping Ohioans amid the pandemic,” state Rep. Diane Grendell, R-Chesterland, said in a news release. “Now this bill is even more vital as the start of the academic year is here and we must ensure teachers and school faculty have the peace of mind they will not be sued as they work hard to safely teach our kids this year as schools reopen.

“House Bill 606 has been described as the single most effective bill in the Ohio House regarding COVID-19,” Grendell added. “Every industry in our state will benefit from this legislation. Giving businesses, schools and individuals a chance to return to normal while granting them peace of mind is necessary for our continued success.” However, on the House floor, state Rep. Jeﬀrey Crossman, D-Parma, said, “even a first-year law student would know that this is bad tort law,” and it sends a signal that Ohio lawmakers do not care about the safety of residents across the Buckeye State.“This bill ... (will) only prolong the pain that Ohioans are going to suffer,” Crossman said. “It does not encourage best practices; it actually lowers the bar and encourages worse practices. Negligence law exists for a reason. It encourages bad actors to get out of the marketplace, and it encourages good actors to stay in the marketplace. “…This bill remains anti-worker, anti-employee, makes our students less safe, makes our teachers less safe, makes our elderly less safe

because it exposes them to [the] possibility of worst practices,” Crossman added. Under the bill, the immunity provision would cover from March 9, 2020, to Sept. 30, 2021. A spokesman for DeWine did not immediately respond to a request for comment about whether the governor might sign the bill. However, The Buckeye Institute praised lawmakers for passing the measure. “For months, Ohio businesses, schools, community groups and medical providers have feared that, despite their best efforts to contain the spread of COVID-19, they could be sued by anyone who visited their establishments and subsequently tested positive for the virus,” Robert Alt, president and CEO of The Buckeye Institute, said in a statement. “Ohio’s General Assembly took a critical step toward speeding up the state’s economic recovery and protecting responsible businesses and other organizations that are working to keep their students, customers, employees and patients safe.” We thank The Center Square for reprint permission.

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Detroit Native Offers Keys to Finishing First on the Track or at the Shop Prepare well. Go fast. Keep it in a straight line. Focus on the finish. And have the will to win. Those words of wisdom have guided Chris Homrich throughout his career in racing in the O.S.D.R.A. (Outlaw, Snowmobile, Drag Racing Association) to podium finishes and big wins. That guidance has also steered him from a high school student who took auto shop classes to get his car painted to working in several Detroit-area collision repair facilities, to owning his own successful location, and ultimately joining the CARSTAR network as CARSTAR of Hamlin in 2018. “Winning, whether on the track or in business, is all about determination and reliability,” said Homrich. “You have to have a will to win, and abide by the mantra that ‘I will never fail’. Then you have to back that with quality repair work and great customer service.” After high school, Homrich worked in a number of high-end collision repair shops as a painter, then at an OEM painting parts, and then returned to the collision shop as a body tech. He founded his own collision

repair facility in 2012. “We were growing and doing good work, but I knew I needed the front office support if we were going to continue to succeed,” he said. “We joined CARSTAR in 2018, and have seen great benefits in terms of

ing support with vendors, getting us the PPE we needed and helping us navigate the federal loan program. We are coming back, and our sales are up 15 to 20%. I’m optimistic for the future, but we need to get people driving again.”

“Winning, whether on the track or in business, is all about determination and reliability,” — Chris Homrich streamlining and improving our operating practices, increasing quality control and adding direct repair programs with insurance carriers, which we never had.” Dealing with a Detroit Double-Whammy While his business was growing as part of the CARSTAR family, the Detroit area delivered a one-two punch, first with the GM strike in August 2019, which kept thousands of workers at home and not on the roads, followed by the city being hard-hit by the COVID-19 pandemic. “We were just seeing the positive impact of the CARSTAR partnership when this hit,” Homrich said. “But they were great in provid-

During the downtime, Homrich revamped his parts operation, adding parts carts and bins, new inventory and invoicing procedures, mirror matching and a parts return process, all of which helps ensure there are no delays in cycle time. Advice for Students Seeking a Career Homrich, who is looking to hire new technicians, recommended any high school student considering career opportunities give thought to a vocational education. “It’s a great avenue for an 18-year-old,” he noted. “You graduate ready to go to work. You have a positive income. If you aren’t suited

for college, you can spend a lot of money and have to dig out afterward, particularly if you don’t pursue a career in the field you studied.” Homrich said young adults should be willing to look themselves in the mirror and be honest with themselves about whether four-year college is for them, or if they are just trying to please their parents. He puts his money where his advice is, supporting the Oakland Schools Technical Campuses with funding, product donations and internships. He also has hired a number of technicians from the school. As he looks to the future, Homrich is exploring adding aluminum and structural steel capabilities as business improves, then pursuing OEM certifications. “You have to create your customer base and protect that, then balance all of the new items and offerings you need for success. It’s all about your will to win. Just like in racing, you have to think big and manage your big projects yourself. This hands-on approach is what makes you successful.” Source: CARSTAR

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GM to Make 100 Temps Permanent at Truck Plant in COVID Hotspot by Jamie L. LaReau, Detroit Free Press

General Motors is converting 100 temporary workers at its midsize truck plant in Missouri to permanent jobs as the automaker ramps up production at the facility. The conversion comes a week after the Detroit Free Press first reported GM was using volunteer salaried employees on the line at Wentzville Assembly because of high absenteeism amid the coronavirus pandemic in that region. The UAW strongly objected to the use of salaried workers in union jobs. It said it is a violation of a contract provision and the local union filed grievances with GM over it, the union said. On Aug. 31, the UAW confirmed 100 temporary workers at the plant, located about 40 miles west of St. Louis, will become permanent workers in a process outlined in the 2019 union contract. Neither GM nor the UAW would say whether the move is tied to the recent grievance; however, the conversion is in process and is expected to be done by end of September. Bridging gaps “The conversion at Wentzville is a direct result of our UAW members’ sacrifice during last year’s 40-day strike,” said UAW spokesman Brian Rothenberg. “Through the path UAW members ratified in our contract, UAW member have achieved a defined path to seniority status.” Defining a pathway to permanent employment for temporary workers was a key issue among the 48,000 UAW members that went on strike against GM last fall. The starting wage at a GM plant for a temporary worker is $15.67 an hour, but that can rise to $32.32 if they become permanent. A GM spokesman said, beyond the conversion of temporary workers to permanent jobs, GM also is bringing in permanent workers from other plants to relocate to Wentzville. But he declined to offer specific details. “We are on-boarding transfers per the contract,” said GM spokesman Jim Cain. “And we continue to rely on salaried volunteers to help bridge gaps due to absenteeism.”

Despite the UAW “strenuously” objecting to GM using salaried volunteers in union jobs, GM said it has no choice if it is to rebuild inventory of the Chevy Colorado and GMC Canyon midsize pickups made at Wentzville. GM also makes the Chevy Express and GMC Savana full-size vans at Wentzville, big fleet sellers that deliver fat profits. “We have had salaried employees working the line,” Cain told the Free Press last week. “The team on the ground in Wentzville is trying to navigate a very difficult situation to keep the plant operating, while accommodating employees who are not showing up to work due to concern of COVID.” Paragraph 215 Wentzville runs three shifts with about 1,250 workers on each shift. GM said it has struggled to staff all three shifts since restarting the plant in late May as workers’ fears mounted as the pandemic surges in the region. The Detroit Three shut down all of their plants in North America in mid-March for about eight weeks due to the pandemic. The plant is located in St. Charles County, a hotbed of COVID-19 cases. As of early Aug. 31, there were 5,691 cases of COVID-19 there and 108 deaths, according to the county’s public health website. That’s up from 5,284 confirmed cases and 106 deaths on Aug. 24. In early July, GM told the Free Press that it would reduce its plant to two shifts starting July 20, killing the third overnight shift. But it reversed course and kept the third shift, seeking to hire some 200 temporary workers to cover the absenteeism. Until it makes those hires, GM has been using a dozen or more salaried workers each week from different parts of the company to help out, Cain said. The UAW isn’t buying it. “The UAW believes it’s in violation to the recent contract,” Rothenberg said. “Paragraph 215 of the contract forbids this.” Paragraph 215 in the contract reads in part: “Supervisory employees shall not be permitted to perform

work on any hourly-rated job except in the following types of situations: (1) in emergencies arising out of unforeseen circumstances which call for immediate action to avoid interruption of operations; (2) in the instruction or training of employees, including demonstrating the proper method to accomplish the task assigned.” ‘Unprecedented times’ While it’s unclear whether the union’s grievance against GM had any influence over accelerating GM’s move to convert temporary workers to permanent, GM has said it has been pushing to make hires, convert workers and transfer workers to the plant, but the process takes time. GM isn’t the first automaker to put white-collar workers on the assembly line. In early August, a Honda plant in Marysville, OH, started using salaried workers on the line because COVID-19 caused high absenteeism. But that plant is not unionized. For an automaker with a union

contract to do it is unprecedented, said Kristin Dziczek, vice president of industry, labor & economics at the Center for Automotive Research in Ann Arbor, MI. “But these are unprecedented times,” Dziczek said. “So GM is using the first provision in 215 as a stop-gap until they can get transferred workers in from Spring Hill.” GM laid off 525 production and skilled trades workers and 155 temporary employees at its Spring Hill Assembly plant in Tennessee at the end of July citing slow auto sales in the sagging economy. GM makes the Cadillac XT5, Cadillac XT6 and GMC Acadia SUVs in Spring Hill. In the meantime, GM’s only alternative to using salaried workers on the line at Wentzville, Dziczek said, is to “pull back a shift and produce less and they have supply constraints. It’s a temporary thing until GM can get enough people to move to Wentzville. They’re in a little bit of jam.” We thank the Detroit Free Press for reprint permission.

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 21 10/31/18 10:18 AM

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Allstate, GEICO Among Large Auto Insurers Facing COVID-19 Rebate Backlash by Autumn Heisler, Risk & Insurance

At the onset of the COVID-19 pandemic, many large car insurers realized that their policyholders were not driving to work, school, practices, shops and more as social distancing and shelter-in-place became the norm. In order to reflect this drop in cars on the road, large insurers began to offer rebates to customers. Liberty Mutual, State Farm, Geico, Allstate and more offered some level of premium relief for drivers. However, in some cases, it did not appear to be enough. Several lawsuits have been brought to light in recent weeks alleging certain insurers failed to provide “fair and appropriate” rebates and, instead, unfairly profited from high rates. In Illinois specifically, policyholders have come for Allstate and Geico, as well as Progressive, Travelers and a few others, with six separate lawsuits filed in the last week of July alone. The policyholders are alleging the insurance relief offered

during the pandemic did not go far enough when accounting for the drop in claims these auto insurers were seeing during the same interval. Statistics show miles driven by Illinois motorists dropped by nearly two-thirds during March and April. To the policyholders, the 15% credit offered by Allstate specifically “falls short of the relief that any fair and reasonable actuarial analysis would require.” Many of the complaints have also compared the auto insurers to their competitor State Farm, which, in April, offered most policyholders a 25% credit. The Illinois-based news source Herald & Review reports, “The suits allege the insurers violated the Illinois Consumer Fraud and Deceptive Business Practices Act. In addition to Allstate, American Family Insurance, Progressive, Geico, Erie Insurance and The Travelers Company are named as defendants.” At this time, attorneys representing the Illinois consumers are

seeking class-action status for the suits. Some predict thousands of policyholders represented by the named defendants could join each suit before the end of the year. Scorecard: Several large car insurers will have to prepare for incoming suits regarding their rebate response to the novel coronavirus pandemic. Takeaway: Across the country, businesses and individuals alike are seeking restitution for lost income during the pandemic. Business interruption and auto lines are just the start. We thank Risk & Insurance for reprint permission.

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GM Helping Uber Switch to Electric General Motors is teaming up with Uber to help accelerate the rideshare industry’s transition to an all-electric, zero-emissions future by offering drivers on Uber’s platform special pricing on the purchase of a new electric vehicle and charging accessories. For current eligible drivers on the Uber platform in the U.S. and Canada, GM will extend the same discount it offers its employees on the purchase of a new 2020 Chevrolet Bolt EV. U.S. drivers will also have access to 20% below MSRP on Bolt EV accessories, including athome charging equipment. Starting in Los Angeles and Denver, well-qualified drivers with Uber Diamond-tier status will also be eligible for special financing through a pilot program with GM Financial. GM data suggests rideshare drivers can experience significantly lower maintenance costs when using a Bolt EV compared to traditional gas-powered vehicles. Drivers also cite in-vehicle technology and the spacious interior as benefits. Source: GM

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Continued from Cover

Pre-Pandemic Sales needs to keep adapting and working collaboratively, said Carla Bailo, president and CEO of the Ann Arbor-based Center for Automotive Research. “Everyone is predicting this year about 13 million [vehicles sold], pre-COVID we were about 17 million. We expect it’s going to take another two years, but that’s predicated on a good recovery and continued recovery throughout this year,” Bailo said during a legislative hearing. “Should we have another hit in the fall, we’ll have to adjust those ﬁgures. So about two years to come back to where we were.” Bailo joined Michigan manufacturers and industry authorities in brieﬁng lawmakers on the pandemic’s impact on the automotive world. Every speaker agreed the auto industry’s ability to produce personal protective equipment helped save lives and jobs, but there are real and practical problems that operating

during a pandemic will present for the foreseeable future. The discussion comes as every industry tries to maintain a tenuous grasp on operating during a pandemic. Gov. Gretchen Whitmer is expected to soon allow movie theaters, gyms and similar businesses to start operating again on a limited basis. But she’s repeatedly warned she may need to institute another shutdown if coronavirus case rates spike again. Automotive manufacturing shut down like most industry in March, even as suppliers and large manufacturers looked for ways to produce vital health and safety equipment to fight COVID-19, the disease caused by the coronavirus. Any new halt in production, even a short one, would be crippling, said Brian O’Connell, General Motors regional director of state government relations. “The shutdown had a huge impact on our industry and our company. And we cannot afford a shutdown. We cannot afford a week shutdown,” O’Connell said. Demand for new and used vehi-

cles is down, but Bailo said the drop was not as much as some expected. Although overall vehicle sales were down 25%, sales of pickups are down only 10%. At the same time, there are 20,000 fewer jobs in the automotive industry compared to the second quarter of last year. Michigan’s jobs in the industry are down 18%. Bailo said that’s the lowest level since 2009, during the Great Recession. “There was a lot of doomsday forecasts early on, but the automotive industry has stayed resilient and most of the plants have been able to stay open,” Bailo said. Now GM, Ford Motor Co. and Fiat Chrysler Automobiles say they continue to follow strict testing and quarantine protocols for employees who may be sick or who came in contact with someone who has COVID-19. The UAW, which represents roughly 150,000 workers from the Detroit Three, repeatedly advocated for strict safety practices and heralded the manufacturer’s recent decision to continue testing employees even if they showed no symptoms of

the virus. Workers must be healthy and feel safe to keep production moving, noted John Walsh, president and CEO of the Michigan Manufacturers Association. Manufacturing in the state has rebounded since the start of the pandemic, but as of July there are roughly 69,000 fewer Michiganders employed in manufacturing than the 628,000 who had a job in the industry in July. While working from home or virtually may not substantially disrupt other industries, it’s essentially not an option for most manufacturers, Walsh said. Bailo and others agreed that ﬁnding and keeping an employee who can work on site while handling the daily rigors of life during a pandemic is diﬃcult. “This is going to continue to be an issue. It’s a strain on the manufacturing sustainability and keeping the production line running,” Bailo said. “You don’t have the option to work remotely when you’re on the line. And if you’re a single parent trying to educate children, that’s a

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significant problem.” Although Rep. Vanessa Guerra, D-Saginaw, agreed GM and other companies may have strong safety plans, she questioned whether they’re always followed. Without providing specifics, she said she’s heard from constituents saying some employees are not informed when colleagues are sick and companies are not doing enough to adequately clean sites where infected people may have worked. GM relies on the safety practices every day, requiring masks at all times while on site, O’Connell said. Echoing comments from other speakers, he said the company prioritizes employee health in a way that ensures operations can continue. “We cannot have an outbreak at our plants. It shuts us down. It shuts our suppliers down. The impact is tremendous on us,” O’Connell said. “We have not had a transmission at our plant where people are following safety protocols. Now, have we had employees who had it? Yes, but it was when they were home over the weekend and not working.” Shape Corp. President and

CEO Mark White said his company employees about 3,500 people worldwide, including approximately 1,000 on any given day in Grand Haven. The supplier, which designs and builds components that manage the forces that occur when a vehicle is in a crash, instituted temperature checks and socially distanced work sites for its facilities, White said. The company had 168 poten tial cases of the coronavirus among employees and 16 confirmed cases in Grand Haven, White said. Many were either prevented from entering a facility due to a potential fever or reported symptoms, or left work after reporting symptoms during a shift. White said his company is working with its employees to provide flexibility for those who do have child care and other needs. He also said they provided across the board raises. But he said concerns about child care, catching the coronavirus and “the financial security of the enhanced unemployment benefits” is causing unprecedented absenteeism and turnover. “Our government needs to de-

Continued from Cover

more expensive vehicles as opposed to basic, cost-effective, non-luxury ones. Cox Automotive made sure to include that BMW continues to take the gold medal as the top luxury brand, continuing the trend since Q3 2018, with Audi and Lexus closely behind. Luxury SUVs are still at the forefront of shoppers’ minds, with 62% of people looking for an SUV as opposed to a sedan. As the market recovers and consumers have more money for spending, the hope is that demand will increase for luxury vehicles of all makes and models, which will make sales bounce back to pre-COVID levels and beyond.

Luxury Vehicle Sales distancing and sanitary measures implemented since they reopened. It’s been quite understandable consumers have been putting off car buying due to other needs during the pandemic. Consumers are facing an unfortunately high unemployment rate, as well as increased financial anxiety and budgetary restrictions, which is impacting car sales all across the board. However, while concerns will remain for quite some time, it doesn’t all look terrible. Congress is working out another stimulus package, and Americans may see some additional cash in their accounts soon that undoubtedly could push some consumers who are on the luxury/non-luxury fence to splurge for a luxury vehicle. The job market is expected to bounce back as the pandemic tapers off, meaning people will get back to having a regular, reliable paycheck and extra cash in their pockets. Consumers may then start reconsidering

velop incentives to work, not incentives to stay on unemployment,” White said. “With respect, the incentives created to stay home go beyond physical well-being. They create a false sense of financial well-being, and keep people from coming to work at Shape and other good employers.” Hundreds of thousands of Michigan residents have filed for unemployment since March. Federal legislation provided an additional $600 per week for unemployment benefits in the first months of the pandemic, but those benefits are no longer available. The state recently received federal approval to provide $300 in extra unemployment benefits, but this funding is not expected to last very long. Lawmakers and industry leaders highlighted efforts by many companies to produce personal protective equipment. GM and Ford recently announced they provided the federal government with tens of thousands of ventilators, fulfilling the terms of their contracts to built the live-saving machines that

were in short supply. Ford delivered 50,000 ventilators in conjunction with a $336 million contract. The company also donated 1.5 million masks as part of a free mask initiative led by the governor. GM plans to donate 2 million masks to Michigan public schools. That’s in addition to the 30,000 ventilators it built as part of a $489 million federal contract. Moving forward, companies want to see lawmakers take action to provide some protection from lawsuits. This week, legislators took up bills that would make it harder to sue an employer or producer of protective equipment due to coronavirus concerns. The bills still require several votes before they could make it to the governor. We thank the Detroit Free Press for reprint permission.

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North Ridgeville, OH, Auto Body Focuses on Quality Repairs and Personable Service by Zachary Srnis, The Morning Journal

A North Ridgeville, OH, car repair shop looks to set itself apart with a combination of quality repairs and a people-first mentality. Thomas Kelly, who owns North Ridgeville CARSTAR, has decades of experience repairing cars and has kept the business at the same location. “When I first started here (33290 Center Ridge Road) in 1979, I had a small shop that could only service three cars,” Kelly said. “I started in the business when I was still at North Olmsted High School in 1972.

Jeff Zeitz, a repair technician at North Ridgeville CARSTAR, sands a car. Credit: Zachary Srnis, The Morning Journal

“I was sitting in class when I learned about a program where General Motors was sponsoring three students from North Olmsted to go to their training center for auto body training.” Kelly said he was selected for the program, and it all happened from there. “Luckily, they picked me, and it was a nine-week course of going to GM, to high school and back to GM,” he said. “Everything about it, I loved. I then went to Lorain-Dover Auto Body in North Olmsted and got a job there. “I walked in there, and I said this is for me.” Kelly said he then moved around a bit before ultimately buying what is now North Ridgeville CARSTAR. “When I was working at Lorain-Dover, I got laid off,” he said. “I got a job in Brook Park, and I later went back to Lorain-Dover. “I then started something on state Route 83. It was out of a guy’s

garage. I was driving a mini bike in 1978 up the road here and I saw this place was empty. It was an auto repair shop that used to be called Al’s Auto Body. “I asked around at the bar next door and they said a guy named Nelson owned it. I looked through the phone book for awhile, but I finally got in touch with the owner who was living in Florida at the time. I bought it for $30,000.” Kelly said it took many steps and years to get the business where it is today. “It was pretty empty, and it was January, so the first thing I did was put a heater in,” he said. “I was able to build the business up through the 80s. That’s when I met my wife, Dianne Kelly, and started a family. “I then put my first addition on in 1993. That is when I added new equipment. I needed a paint booth and some other things, so I took a wall down at the original building and expanded it from there. I was then EPA compliant. It was really in a good place.” The business then expanded as Kelly bought the house next door. “I bought the house and the property which gave me all the land around the shop,” he said. “Things were going well and then my wife got cancer in 2002. She died five years later. “I was kind of down and out for a while after that. Around 2010, is when I picked it back up again. I took all my plans and built the shop that folks see today. It’s about 12,000 or so square feet. I used to be only able to do three cars a week when I started, and now we can do about 35 a week.” Kelly said the focus of the business is collision repair. “The goal is to get the car back to the way it was before the accident,” he said. “In 2000, I joined the CARSTAR franchise. I wanted the training involved and the professionalism. “I liked their ethics and the knowledge they brought me. It was scary at first because they are big. I took my lumps when I first joined because there was a lot I didn’t know, but they really helped out with learning how to take estimates and being

very professional about repairs.” Kelly said there is a sense of security folks have when choosing CARSTAR for repairs. “I’m conveniently located,” he said. “I’m fully licensed, and we are linked to several insurance companies online which makes it easier for folks regardless of the insurance they have. “It’s also part of a network. So, if we couldn’t fix the car, for whatever reason, you can get it done at other CARSTAR locations. There are a lot of advantages to having a car done at a network shop because we have the resources to get it done.” Kelly said another advantage is CARSTAR does focus on the old-fashioned field of estimates. “You really need to take a car apart to see what you need to do to fully do the job,” he said. “We then contact the insurance company from there. “It saves the customers a lot of time. Estimates really can’t tell you the whole story about what you need.” Kelly said the most important

thing for him are the people. “I’m also very personable,” he said. “I’ll call you and tell you about where we are with your car repair. It’s not something I need to do, but I like keeping folks informed. “People are everything. I just love the community here in North Ridgeville. I also bought the bar next door and I want to fix it and make the whole corner over here looking like a masterpiece. I take pride in the community, and I want to help out however I can.” We thank The Morning Journal for reprint permission.

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Ohio Teens Go on Car Theft Spree, Leave Trail of Chaos by Steven Symes, Motorious

Just like when your mom kept telling you to close the refrigerator door or not track mud in the house, we keep telling readers car thefts have spiked since the coronavirus lockdowns and they’re only going to get worse. And while muscle cars and other performance models are often the targets, that’s not always the case. Police in Dayton, OH, say they believe seven teenagers have been responsible for a rash of car thefts, including one vehicle which was taken with a baby inside. Thankfully, the baby was dropped off safely, but that didn’t slow down the teenage criminals one bit. The following week, two car dealerships in the area were the victims of theft. Police say a RAM and Cadillac were stolen from a used car lot in Miamisburg and were driven to the White Allen VW in Miami, where they were both ditched. From there, the teens stole three other cars. According to a local news report, keys were taken out of drawers and left in a pile outside the dealership office.

Later, a police detective spotted one of the stolen cars, a black Volkswagen Passat, and a marked cruiser tried to pull it over, but the teen driver fled, sideswiping the police cruiser, then hitting three other cars before coming to a stop. All three teens in the car ran, but police caught two immediately and tracked down the third one later. Not only were police able to recover the now-crashed Passat, they tracked down a white Volkswagen Tiguan and three more of the teenage car thieves. One teen and a 2012 GM Acadia are still at large. As my seventh grade language arts teacher said: if you’re going to steal a car, at least go for a Ferrari, not a Datsun. Apparently these kids don’t get that Volkswagens are anything but “hot” cars. This story should serve as a reminder you should take precautions and secure your vehicle, especially during the nighttime hours. Car thefts are becoming way too common these days and there are plenty of indications they’re going to get even worse. We thank Motorious for reprint permission.

Crash Champions Enters Milwaukee Market The Crash Champions organization announced Sept. 1 its expansion into the Milwaukee, WI, market with the acquisition of Silver Spring Collision Center in West Bend, WI. The Lamberty family has owned Silver Spring Collision at 3000 W. Washington Street, West Bend, since 1983 and it has been a family-owned and operated facility for more than 40 years. With the ad-

sition is another big step in our expansion as it marks our entry into the state of Wisconsin.” The Lamberty family created a company that fit perfectly into the Crash Champions business model. For more than four decades, they have been hyper-focused on customer service, high quality repairs and employee retention. The business name will change to Crash Champions-West

dition of this facility, Crash Champions continues its rapid growth strategy and expansion throughout the U.S. with 40 locations in Illinois, Wisconsin, Ohio and California. “I’m excited about this location because it is a very nice wellequipped facility. They also share our operational standards for high quality repairs and great customer service,” said Matt Ebert, CEO. “This acqui-

Bend, but Joey Lamberty Jr. will remain the general manager of this location. Crash Champions looks forward to continuing the tradition and begin servicing their loyal customer base. For more information about Crash Champions or to find a facility near you, visit www.crashchampions. com. Follow us on Facebook, Twitter or Instagram. Source: Crash Champions

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Clean Car Advocates Push for Emissions Rules by Troy Mewes, Mankato Free Press

A coalition of advocates promoting more energy efficient vehicles in Minnesota is gearing up for a statewide campaign to support motor vehicle emission regulations. Minnesotans for Clean Cars hosted a Mankato-centric virtual panel Aug. 18 to discuss why the Minnesota Pollution Control Agency’s proposed Clean Car Minnesota rules would benefit the state, even as the proposal faces stiff resistance from Senate Republicans and automotive dealers. Gov. Tim Walz announced the proposed emissions rules for low- and zero-emission vehicles last September based on similar rules in California. If the state adopts those rules, Minnesota would become the 15th state along with Washington, D.C., to require auto manufacturers to build and offer a certain amount of low-emission vehicles, such as hybrid or electric cars. Yet the proposal faces challenges from Republican lawmakers who argue Walz should have left the decision to pursue new emissions guidelines to the Legislature rather than a

state agency. The Minnesota Automotive Dealers Association also opposes the rules, arguing the proposal would drive up the cost of new cars and hinder out-of-state sales. Yet supporters say cutting vehicle emissions is one of the most significant and cost-effective means to address ongoing climate change. “It’s not hard to show people why it’s in the interest of the planet, but it’s tough to get people to do something that’s a long-term interest for a shortterm cost,” Sen. Nick Frentz, DFLNorth Mankato, said. Frentz chairs the Senate DFL’s Clean Energy & Climate Change Caucus and has sponsored legislation related to the the govenor’s clean car standards proposal in the past. He said Minnesota could take an important role in promoting more environmentally sustainable practices as the world faces more issues due to our warming climate. “The main message we’re sending to Minnesotans is it’s time to establish once and for all how much of a hurry we’re in,” Frentz said. “Clean cars is one of the things we have to do immediately.” Advocates argue the standards

would bear immediate savings for Minnesotans who decide to buy low emissions cars. Jon Olseth, an English teacher at Riverland Community College and the director of the Olseth Family Foundation, said he saves more than $1,000 a year in gas costs driving his Chevy Bolt around Mankato—which he notes was designed by a Minnesota State University graduate. He said residents who buy electric cars could end up spending far more money in their communities as a result of maintenance-related savings, which could realistically take place if auto dealers offered more electric cars. “Clean Cars Minnesota helps get these cars in our community,” Olseth said. “It doesn’t force anybody to buy these cars, but it forces us to offer them.” Advocates say more electric cars on the road means more in-state energy production and less reliance on foreign oil distribution. They also point out lower emissions would benefit public health, as a Minnesota Department of Health report last year found ground-level pollution was a factor in up to 4,000 deaths in Minnesota in 2013. And the rules would

only affect new car sales, and only for smaller vehicles. That means larger equipment, such as semis or rigs, wouldn’t be regulated by the standards. Neither would used car sales. Critics of the Clean Cars Minnesota rules say offering more electric vehicles doesn’t guarantee people will buy them, which means more costs and supply for automotive businesses. And while some GOP lawmakers such as Sen. Dave Senjem of Rochester support more stringent emissions, Republicans are wary of passing the emissions rules set in California. Federal guidelines have in essence set California’s emissions rules as the standard bearer, which means Minnesota and other states have to pass the same rules California sets concerning car emissions. The MPCA plans to move forward with the Clean Cars Minnesota standards this fall, first by publishing an official notice of its intent to adopt the rules and then hosting public meetings on the standards before an administrative law judge. We thank the Mancato Free Press for reprint permission.

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Midwest_Issue_1020.indd 29

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with Erica Schroeder

Industry Insight with John Yoswick

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

Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler

Shop Showcase

There was activity recently in three its third version of the lawsuit, after legal battles involving body shops, the first two were dismissed. insurance companies, an auto recy- Presnell granted GEICO’s mowith Ed Attanasio tion, noting Eaves’ firm failed to file cler and consumers. A U.S. District Court judge in an opposition to GEICO’s fee request. Florida this summer agreed that a law- But Presnell reduced the amount owed suit in which two Mississippi shops are suing Progressive Insurance for tortious interference should be returned to a federal courtEd in the shops’ with Attanasio state. The two shops were part of a larger federal antitrust lawsuit, originally brought against multiple insurers in 2014, consolidated to the Florida court with about two dozen similar suits involving shops in othwith Ed Attanasio er states. Mississippi attorney John Eaves Jr. began The Mississippi shops’ suit signing body shops on to antitrust lawsuits against insurers back in 2013 was largely dismissed earlier this year, but because AutoWorks Collision Specialists in Jackson, MI, and to $30,298—GEICO had sought just Center in Pica- over $40,000—and said only the atWalker Collision with Ed Attanasio yune, MI, each pointed to a specific torneys, who he said pursued the matcustomer they said they lost because ter “unreasonably and vexatiously,” of steering tactics they say Progres- must pay those fees, not the shops. sive used, dismissal of their portion Another insurer, Nationwide, of the lawsuit was overturned on ap- also got a court victory in August. peal. The Pennsylvania Supreme Court Progressivewith arguedStacey the Florida announced it was deadlocked in its Phillips court should continue to oversee the review of a lower court’s decision lawsuit, but Judge Gregory Presnell that overturned a $21 million bad said it should return to the Mississip- faith verdict against Nationwide repi federal court where it was origi- lated to repairs made by one of the nally filed. In remanding the case to insurer’s “Blue Ribbon” direct reMississippi, however, pair shops. with Presnell StaceyindiPhillips cated that court might choose not to Because the six justices—a sevallow it to proceed because the fed- enth justice didn’t participate in the eral antitrust claims in the original case—were “divided in a fashion lawsuit have been dismissed. That which prevents a majority disposileaves Progressive facing only accu- tion,” the lower court’s decision to sations of violating Mississippi state throw out the 2014 verdict against Nawith Stacey Phillips anti-steering laws. tionwide stands. “Since no federal claims remain, The lawsuit arose after Daniel that court may decide that it is pru- and Sharon Berg took their coldent to decline to exercise jurisdic- lision-damaged 1996 Jeep Grand tion over the state law claims,” Pres- Cherokee to a Nationwide Blue Ribnell said. bon shop. An appraiser there rec He also ruled this summer on ommended the vehicle be declared with Stacey Phillips GEICO’s request that the other a total loss, but the Bergs alleged Mississippi shops—and their at- that Nationwide, without informtorneys—involved in the portion of ing them, had the vehicle moved to the lawsuit that was dismissed cover another Blue Ribbon shop where it GEICO’s legal fees fighting the case was repaired. The Bergs sued over since 2015. That’s when Mississippi the condition of the repaired vehicle, attorney John Eaves Jr.’s firm filed claiming Nationwide knowingly re-

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turned an unsafe vehicle to them as part of an effort to avoid totaling the vehicle. The couple won an $18 million verdict, plus $3 million in attorney fees, but a three-judge Superior Court panel in 2018 overturned that decision. The Bergs appealed to the state’s Supreme Court. Two of those justices issued an opinion in August saying they were in favor of reversing the lower court’s dismissal and reinstating the verdict, while two others said they believe the dismissal should be upheld; the views of the remaining two Pennsylvania Supreme Court justices is not known, but it would seem they were likely split in their views, giving neither side a majority. The justices arguing to reverse the Superior Court’s decision said such verdicts should be overturned only “in the most egregious of cases

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when the trial court has committed reversible error.” The justice’s arguing to uphold the reversal of the verdict said there was some question about the trial judge’s impartiality, pointing to that judge’s “protracted we-the-consumer discourse spanning six pages of the opinion,” in which he appeared to step beyond his “judicial role and align himself personally with the interests of insurance consumers.” In yet another legal matter that could provide a lesson for all employers, an auto recycler is being sued by the U.S. Equal Employment Opportunity Commission (EEOC), which says the company violated federal law by denying an employee’s requests for reasonable accommodations—and then fired her—while she was undergoing chemotherapy for cancer. See Latest in Lawsuits, Page 38

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Historical Snapshot with John Yoswick

Associations Assembling 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@gmail.com.

AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID

Southeast News

Although in-person meetings are on sona (your brand) and be authentic. hiatus due to the threat of COVID-19, “With a wealth of experience the Automotivewith Women’s Alliance gained working for numerous ForChasidy Rae Sisk Foundation (AWAF) has not al- tune 500 companies—including her lowed the chaos of 2020 to prevent current role as a senior-level global them from inspiring and enlightening executive for a $4 billion corporamembers. tion, Linda shared some of the wis From increasing the number of dom she’s gained throughout her own virtual professional development of- career journey—including some very with Chasidyand Rae Sisk ferings to awarding scholarships personal early traumas that helped more, AWAF refuses to let any glob- shape the trajectory of her career,” al pandemic stop these motivated la- shared AWAF Professional Developdies from carrying out their mission. ment Committee Co-Chair Sherry Educational content has been Muir Irwin. coordinated with the current situa- Christina McKenna, founder tion in mind. with Chasidy Rae Sisk and president of Bluestone Execu “Faced with an invisible enemy tive Communications, shared advice and a temporarily diminished automo- related to “Power Presenting for the tive marketplace, working remotely or Virtual Presenter” on July 23. being furloughed can play havoc with According to Muir Irwin, “Chrisour daily lives, and eachChasidy programmed tina brought her knowledge, wisdom with Rae Sisk session has been specially selected to and wit to our members, emphasizing address stressors and ease transition that communication is more importto the ‘new normal’ brought on by ant now than ever—and with the inCOVID-19,” said AWAF Profession- creased emphasis on virtual platforms al Development Committee Co-Chair for communication, we must be intenCorinne Smereka. tional in projecting our professionalwith Chasidy Rae Sisk “Tapping into our talented mem- ism and purpose.” bership expertise and experience, McKenna shared “Seven SeAWAF has provided and will contin- crets to a Commanding Virtual Preue to provide a series of free, virtual, sentation”: one-hour sessions via Zoom technology. These sessions designed Rae to Sisk • Use the video option whenever poswithare Chasidy explore new perspectives, gain new sible. skills and promote networking op- • Know that while style matters, conportunities during these challenging tent is king (or queen). • Assume your audience is distracted times,” Smereka continued. The first session in AWAF’s and adjust. withwas Chasidy series, held in May, “Clarity Rae in Sisk • Frame the flattering shot. the Midst of a Crisis: How to Find • Leverage good lighting. Your New Normal” with Dr. Priscil- • Pay attention to audio. la Archangel, president of Archan- • If your event is recorded, scrap the gel and Associates, LLC, followed laptop. by “Difficult Conversations: Open with Chasidy Rae Sisk Heart, Open Mind,” presented June During “Diversity, Equity & In4 by Diane Morrison and Marian clusion 101” on Aug. 13, Cheryl Morlock, co-creators of Expanding Thompson, CEO and founder, and Leadership Capabilities. Margaret Baxter, executive direc On June 25, Linda Taliaferro, tor, of the Center for Automotive founder and CEO of The TEE—The Diversity, Inclusion & Advancement Extra Effort, LLC, discussed “Turn- (CADIA) shared important insights with Ed Attanasio ing Career Trauma into Career Tri- to “help attendees gain an underumph,” sharing six tips: find your standing of the diversity, inclusion voice and use it, know your worth, and equity (DEI) fundamentals rerelationships are everything, focus quired to value differences and be on being, establish your unique per- more inclusive in order to enhance

Western Associations

Southwest Associations Southeast Associations Northeast Associations

personal and organizational contribution,” Muir Irwin said. AWAF is coordinating additional seminars for the remainder of the year and has scheduled a Virtual Annual Holiday Party for Dec. 2, when the association will be joined by Lisa Drake, Ford COO of North America and vice president of global purchasing, as they celebrate the second annual AWAF Awards. During the pandemic, AWAF also awarded seven scholarships. Danielle Didia, a junior at Kettering University in Flint, MI, received a $2,500 scholarship, provided by Warner Norcross + Judd LLP, while Kettering senior Kathryn Cesiel received $2,500 provided by Magna International. Christian Brothers Automotive provided two $2,500 scholarships, received by Eva Muller of Michigan Technological University and Kathryn Mueller from Wayne State Uni-

versity. AWAF awarded a $2,500 scholarship, in honor of the Automotive Heritage Foundation, to Twanda Dixon, a freshman at Rochester Institute of Technology in New York. The association also sponsored a $2,500 scholarship to Jacqui van Zyl, a freshman at Georgia Institute of Technology in Atlanta, as well as a $2,500 scholarship to Jennifer Mazzola from Vanderbilt University. Additionally, AWAF has gotten creative with ideas to virtually advance and empower young women in STEM by introducing a contest for high school and college students to submit ideas for a STEM Kit to be offered to young women in middle school. For more information about AWAF, visit awafoundation.org.

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with Ed Attanasio

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with Stacey Phillips

Techs of the Future

Stacey Phillips is an award-winning 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.

with Stacey Phillips

Preparing & Training the Agents of Change in Future Technology A few years ago, when people talk- mechanical systems.” ed about connected vehicles and She recalls attending the SEMA self-driving, Elaina Farnsworth said Show in 2016 and listening to John it was perceived as a computer-based Waraniak, vice president of vehicle industry. technology at SEMA. The CEO of The NEXT Educa- “He said that many years ago, tion said every person interested in we would be standing up on this stage intelligent transportation and saying, ‘I have the fastest, coolest and loudest car,’” mobility systems was expectsaid Farnsworth. “In the next ed to have computer science 10 years, we are going to be and engineering skills. Very quickly, organisaying, ‘I have the most conzations realized the need nected car.’” for technicians to repair the Anticipating the changes infrastructure and technolo- Elaina Farnsworth ahead, Farnsworth set out gy in these vehicles after a to create a learning path for collision. the next generation of workers inter “It is no longer your dad’s auto- ested in being part of the automotive mobile,” said Farnsworth. “Cars are industry. evolving where most of all vehicles “We need technicians to underare built with sensor technology and stand the coolness around these vemove data. As a technician, you will hicles and we need the repairers to need to know a little about sensors, understand this is a very interesting technology, electrical systems and field that pays a lot of money,” she

Continued from Page 32

Latest in Lawsuits According to the EEOC’s lawsuit, the employee immediately notified the owner of K&L Auto Crushers in Tyler, TX, when she was diagnosed, and told the company the estimated length of her chemotherapy treatment. Shortly after starting chemotherapy, the owner told the employee, who was K&L’s comptroller, the company had secured temporary help and that she should stay home until she was finished with her chemotherapy. The comptroller asked the owner if she could work from home, and later requested a modified work schedule, while she was undergoing chemotherapy, but K&L denied both

requests. K&L fired her, but did not tell her she had been terminated until she finished chemotherapy. Such alleged conduct violates the Americans with Disabilities Act (ADA.) The EEOC, which filed suit after first attempting to reach a settlement with K&L, seeks back pay and compensatory and punitive damages, as well as an order barring K&L from engaging in discriminatory treatment in the future. “This comptroller was a hardworking, loyal employee who sought multiple avenues to continue working during her illness and chemotherapy treatment,” said Meaghan Kuelbs, senior trial attorney with the EEOC. “Employers should fairly consider an employee’s accommodation request and deny an accommodation only if it would create an undue hardship.”

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said. “It doesn’t take a four-year degree.” Instead, she said technicians can learn the necessary skills through targeted education. Farnsworth has focused on certification, training and upskilling programs in intelligent transportation, connected and autonomous vehicles and new mobility systems for more than 20 years. In 2018, she established The NEXT Education, offering certification and credentialing programs related to connected transportation systems, autonomous vehicles and cybersecurity. This year, Farnsworth partnered with Regina Hopper, who has a background in transportation, communications, energy public policy, media and law, and serves as the chief strategy officer. “Our mission is simple: we want to create agents of change who will lead critical new mobility systems

development and deployment,” explained Farnsworth. The program is based on what she refers to as “MicroTraX,” a hybrid education model that combines self-paced learning with instructor interaction. The online live training is presented by subject-matter experts who are leaders in their respective fields. Each seven- to 10-minute module is built to be a consumable piece of competency-based education to prepare organizations and individuals for the future. Since COVID-19, The NEXT Education has been focusing on online live instruction, but plans to return to in-person seminars in 2021. The learning is geared to a cross-section of the industry and is targeted to both new technicians entering the industry as well as those seeking professional development.

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learn nolo beca “one tinua info vant ting we h as w ture,

Fixed Operations Director Recognizes Need for Training in Future Technology About a year ago, Jamie Powers, the fixed operations director at Lujack Auto Group, learned about The NEXT Education’s certification program in autonomous vehicles. He explored what the organization offered and whether it would be a good fit for his technicians at 20 stores in Michigan, Indiana and Iowa. With autonomous features becoming more prevalent in cars today, Powers recognizes the need to have all sensors on a vehicle correctly set when a customer leaves the shop. “We are under a new liability,” he said. “That started waking me up to learn the new processes

Farnsworth said students can learn the latest in 5G or satellite technology without being overwhelmed, because the information is presented “one bite at a time.” Content is continually added every quarter, so the information remains current and relevant. “My real passion has been getting the word out about the dire need we have today for technicians as well as what we are going to see in the future,” she said.

that are coming our way.” Four of his body technicians enrolled in two online courses from The NEXT Education, focused on the electronic components included in autonomous vehicles. They have been impressed with the instruction, and the ultimate goal is to earn a certification in this area. Eventually, Powers plans to have all of his technicians participate in the educational learning. “There’s always an evolution in the car industry and I think autonomy is the next evolution,” he said. Powers said OEMs are slowly taking control

Since COVID-19, The NEXT Education has experienced an increase in usage, especially due to the short training sessions offered. The team of 20 has found organizations are reaching out to have technicians learn additional skills during the current downtime in their businesses. “Many have worked in the industry for years and are moving into a new position due to the unforeseen circumstances worldwide as a result of the pandemic,” said Farnsworth.

over what collision shops will be required to do to repair vehicles properly. A decade ago, customers could take their cars anywhere. Now, they need to be certified by a certain manufacturer. Autonomous vehicles are going to be part of that, according to Powers, and technicians will need to be certified. “If technicians aren’t certified on autonomous vehicles, insurance companies will not ok a customer to bring in an autonomous vehicle to any shop,” he said. “If we’re not on the leading edge of being certified on autonomous vehicles, that is going to be a big part of the business we’ll miss out on.”

With the collision repair industry evolving, new businesses have been established over the past few years related to predictive analysis and connectivity. Farnsworth said having highly skilled technicians in this new environment encourages workers to remain in the industry and allows shops to stand out from their competitors. “It would be a huge competitive advantage for a small shop to be able to understand the technology changes

that are coming both in sensor technology and data transmission,” she added. In addition to the core competencies every technician will still need to repair a vehicle, Farnsworth encourages shop owners and managers to determine where the majority of their business is coming from. “Instead of seeing this as so vast that you want to start over, take into consideration the skillsets you have See Preparing & Training, Page 53

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SEMA Show Goes On with Ed Attanasio

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

Are You Defending Your Good Name Online? Your reputation online is always im- spective websites. portant, but during the pandemic it’s You can have amazing empmore vital than ever. loyees, great DRPs and a lot of rewith Everyone can agreeStacey there willPhillips be peat customers, but in the end all fewer cars on the road moving for- you have is your reputation. Compeward, as more and more people will tition is healthy, but sometimes peocontinue to work virtually. ple’s passions make them do things With more competition fighting they wouldn’t normally even consifor less work, a shop’s reputation on- der. with Stacey Phillips line will carry more weight, and that’s In 2008, I began writing for when some shady operators might re- a growing company that provided sort to doing sketchy things, such as “digital privacy solutions.” Their posting fake reviews to disparage the approach was to create a deluge of shop down the street. positive content about an individual In one case, a disgruntled for- or company so any bad things online mer employee with wreaked havoc Phillips on- about them would be bumped down Stacey line for a shop. A body shop owner the ratings. The goal was to get the negative articles, reviews or blogs off Google’s first page, because 75% of all browsers never look past page one, according to Junto Research. During that same period of time, with Stacey Phillips I was also contacted by a company that wanted to pay me well to write fake negative reviews. They had established a ton of bogus emails and online profiles and were targeting companies identified by its clients. When I asked them if it was illegal, they said no, although they admitted it was at with Victoria Antonelli least immoral, so I opted out. Luke Middendorf at WSI Connect in Concord, Luke Middendorf at WSI ConCA, said the best way for a shop to manage its online reputation is to proactively request nect in Concord, CA, protects his positive reviews from its customers clients’ online reputations, including body shops. fired a tech, who had a couple sons “We’ve been implementing rewho were computer whiz kids, and putation-building campaigns for alwith Ed Attanasio they destroyed the owner’s online most all of our clients,” he said. “The reputation within months. It went best way for a business to manage from being just business to being its online reputation is to proactively personal, and the shop in question request positive reviews from its cuslost a significant amount of business tomers. Google and Facebook allow businesses to proactively solicit as a result. In another scenario, a body shop reviews and there are a lot of autowith Gary Ledoux that was producing subpar work hi- mated tools that make the process red a company to defend its reputa- easier to manage. It is against Yelp’s tion by creating a ton of fake reviews policies for businesses to request and posting positive things about the Yelp reviews of their business so it’s shop to push its bad reviews down much more difficult to work with.” the line. Middendorf said you can’t rely In yet another case that occur- on websites like Yelp to monitor rewith Stacey Phillips red recently, two shops in a small views or check for their authenticity. town started manufacturing false “All of the review sites do a negative reviews against each other, very poor job of combating fake but in the end Google black-hatted reviews. Most of the time they avoboth of them and took down their re- id getting involved in any disputes,”

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he said. “They will remove reviews that violate their policies which include personal attacks and explicit language. However, those need to be reported/flagged by someone so that they can be reviewed and considered for removal.” How can you continually monitor your online presence? It’s actually not that difficult. First, perform a search on your shop name in Google, Bing, Angie’s List, Yahoo and other search engines. Delete what you can, including all of your own social networking pages, where you can easily delete your own posts, photos, comments and videos. Ask people who have posted negative things about you to delete their comments, videos and photos. If they refuse to delete a photo, for example, you can usually untag yourself, so that the photo will not appear in any search including your name.

If there are news articles, blog posts, videos, photos or other mentions about your shop that are unflattering, you can always request the page’s publisher to remove them. Not everyone will cooperate, but try anyway. If that doesn’t work, or if you can’t get a hold of the people who posted it, push them down in search results by creating positive content. In many cases, the personal approach may be the best way to go. Quietly unfriend people who are apt to post negative things about you, as well as those who have their own damaged reputations to deal with. You don’t want to be linked to anyone with a questionable reputation, because one rotten blueberry can ruin the whole bunch. On a regular basis, check for any email jokes or other items people send to you or share with you onSee Defending Your Name, Page 53

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Will Burgeoning E-Commerce Hurt the Collision Repair Industry? by Gary Ledoux

For many months prior to March, the collision repair industry had been preoccupied with ADAS systems and autonomous cars and trucks and their effect on the collision repair business. The systems are purported to greatly reduce accidents and mitigate the severity of accidents that do occur. Many in the industry were afraid this would have an ill effect on the collision industry—fewer accidents and less severity means less work for body shops. According to Frank Terlep, industry veteran and author of the recently released book, “Auto Industry Disruption,” only about 21% of the U.S. fleet currently has ADAS capability. If past history is any indication, it could be years before ADAS-equipped cars reach a crucial mass where accident prevention and severity mitigation have a profound impact on the number of cars requiring collision repair. For instance, hydraulic brakes for cars were patented in 1917. Ford would be the last auto manufacturer in the U.S. to adopt the hydraulic system in 1939. What might have a more immediate and long-lasting effect is the burgeoning concept of e-commerce, most lately exacerbated by the COVID-19 pandemic. COVID 19 Hits With the onslaught of the COVID-19 pandemic, people started working from home if their occupation allowed it, or many were furloughed if they couldn’t. Travel came almost to a standstill. Highways were empty, airplanes were empty, restaurants and hotels closed and American business was brought to its knees for weeks. With so many people no longer commuting and/or minimizing their trips, even locally, collision shops reported a decrease in business by 40% to 50% or more. Fortunately, American business is not only resilient but also innovative and resourceful. Despite many consumers staying home, American business is continuing to find new and innovative ways to reach and engage them through online

services and products. Granted, online purchasing is nothing new. It has been growing for years. But the past few months has seen some dramatic changes and increases. Online Shopping Goes Wild QuantuMetric, a digital consulting and intelligence company, estimates an increase of 146% in online retail orders from March through June. Neilsen, an independent consulting company in the UK, notes that in March, more than 600,000 people who had never used e-commerce before ordered some product online. Similar consulting companies listed similar results. One of the commodities most affected is weekly groceries and related products. According to Joshua Schall of J. Schall Consulting, an Austin, TX-based consultant for the consumer packaged goods industry, in 2015, only 15% of those consumers surveyed had bought groceries online. In March, that number had climbed to 55%. A survey conducted by Rakutan Super Logistics, a national leader in e-commerce order fulfillment and freight brokerage, shows a 250% increase in groceries sale volume for the month of March. Other products seeing a sizeable uptick were baby products, medical and cleaning products. Not surprisingly, there was a rise in online orders of alcoholic beverages. Again, this equates to fewer trips to the supermarket and related stores, fewer miles traveled and fewer traffic accidents. Lifting Stay-At-Home Orders May Do Little To Change Customer Behavior According to Rakutan, once stay-at-home orders are lifted, most consumers are more likely to stick to their newly-developed traits of buying products and services online. Those that stopped mall shopping, due to social distancing concerns, and used online shopping instead may opt to stay away from the malls completely. And speaking of malls, they have been dying for years. According to a study done by Credit Suisse and reported in Business Insider Magazine in November 2019, between 20% and

25% of America’s 116,000 shopping malls will be closed by 2022. Note this was announced prior to the pandemic. Experts note not the least of the reasons for the mall’s death-spiral is online purchasing exasperated by stores’ slow adaptation to changing consumer demographics and subsequent buying habits. Fewer malls, less reason to drive to them, fewer traffic accidents. Rakutan also notes “some consumers have invested in fitness equipment to use at home and may never return to a gym. Others have learned how to cut their kids’ hair and may never pay for a professional cut, for as long as their kids will allow it. Many organizations will have also noticed how cost-effective allowing employees to work from home can be. It won’t come as a surprise when the remote working population increases from the current 4.7 million to even double the figure. “The point is, once consumer behaviors change, it’s hard to get back to the old way of doing things. When

these changes in behavior become permanent, shoppers will stick to the e-commerce brands they discovered over the brick and mortar spots they once frequented.” PaySafe, a UK-based company similar to PayPal in the U.S., conducted a survey of more than 8,000 consumers in seven countries. When asked how their spending habits would be impacted in the future, 38% of all surveyed consumers said they plan to do more online shopping next year regardless of the end of social distancing. In the U.S., that number was 49%. Two-thirds (65%) of consumers that plan to shop online more following the conclusion of the pandemic are doing so because they find online more convenient, and 42% of consumers who plan to shop online more say it is more enjoyable. Of those people who said they would not increase or maintain a higher level of online shopping, it was because they already conduct the majority of their shopping online. See Burgeoning E-Commerce, Page 47

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with Erica Schroeder

Industry Insight with John Yoswick

Committee Demonstrates How Same Part Can Be Described Differently by John Yoswick

Shop Showcase flowcharts that demonstrate how all

The committee showed several

who manufacture parts for automakers. But that’s a parts category none of the parts platforms or estimating systems currently use. So that part might be identified as “OE discount” in one parts platform and estimating system, but as “aftermarket” in another parts platform and estimating system, resulting in the same part being labeled differently on estimates.

highest possible scenario they can,” Weiss said. “This is where specific terms with specific definitions benefit the industry, rather than leaving things open to supplier interpretation or decision,” Schulenburg said. “We need to be doing our best to be as transparent as possible. There’s a big difference in someone looking at something called an ‘OE surplus’ part and assuming that’s an OEM part, versus the impression of what a ‘recycled’ part is. I think we need to do everything in our power to make sure we are distinguishing parts appropriately.” The committee, however, has had difficulty reaching a consensus on what definitions and names for the parts types should be. The committee had been so polarized on the issue that Weiss and Schulenburg decided to break it into two “more like-minded” work groups to each form a proposal on how to most clearly describe parts available in the

The Collision Industry Conference these variations in parts categories Ed Attanasio (CIC) Parts andwith Materials Commit- can result in the exact same part betee is continuing to push for more ing described two different ways on consistency in how parts are defined estimates. and described within the industry. In the first (Figure 1), a vendor During the virtual CIC this sum- selling OEM parts outside of the aumer, the committee showed how the thorized OEM channel enters those list of parts categories varies among parts into a platform that uses the with Ed Attanasio parts platforms and estimating systems. CCC ONE has six parts type categories, for example, while Audatex and Mitchell have seven. Audatex has an “OE surplus” category, while CCC has “optional OEM” and Mitchell has with Ed Attanasio “OE discount.” The parts platforms that feed into the estimating solutions have their own categories. APU Solutions, for example, segments out “surplus OEM” from with Ed Attanasio “recovered OEM,” two categories not even found—by those names—in the estimating systems. APU’s Eric Mar- Figure 1. A CIC committee used a flowchart to show how a part the suppliers describes as “OEM rello said “surplus OEM” parts are surplus” can end up with one of three different labels on estimates. new OEM parts in OEM packaging, whereas “recovered OEM” are take- “OEM surplus” category for such parts. That platform feeds into an with Stacey Phillips estimating system that uses the “optional OEM” label for those parts. California regulators, however, prohibit the use of the “opt-OEM” label. “So while that part can go into with Stacey Phillips the estimating platform as ‘opt-OEM,’ the end-user is required to choose what they are going to call it on the Ken Weiss said some parts suppliers are estimate,” said Aaron Schulenburg, genuinely unclear as to how to identify their who co-chairs the CIC committee. parts in electronic parts platforms or estimat“You then have a situation where a ing systems, while others mayStacey be trying to Phillips with shop repair plan, and an insurance Figure 2. If a parts supplier describes its part using a term – like “Tier 1 replacement”—not used by “game” the system either the electronic parts platforms or estimating systems, how it appears on an estimate may vary company estimate, may each potenoff parts, OEM parts that may have tially choose different nomenclature In a third example, the commit- marketplace for those making parts been temporarily installed or painted for the exact same part. One may iden- tee showed where an “OEM take-off” decisions. and then removed. tify that as an aftermarket part, and part can end up categorized on an es- Weiss said his work group came “We hope longer term that the one may identify it as an OEM part, timate as “recycled” or “OE surplus.” up with six different categories of industry will move in Stacey the direction and you have an estimating platform Ken Weiss, who co-chairs the new parts, whereas Schulenburg’s with Phillips to break those two part types out,” that allows for that choice.” CIC committee, said parts suppliers work group simply defined four attriMarrello said. “Certainly we need In another example the commit- may be genuinely unclear as to how butes of an OEM part, and said any to agree upon those definitions. But tee showed (Figure 2), a parts sup- to identify parts they are putting into new part not having all four of those we saw five or seven years ago that plier may choose to refer to a part as the parts platforms, or directly into attribute were “non-OEM.” those really aren’t the same part cat- a “Tier 1 replacement” part because the estimating systems. “That’s the struggle we got hung “But there are others who delib- up on last year,” Weiss said at CIC egory. They need to have a different it is manufactured and sold by Tier 1 suppliers, such as Denso and Bosch, erately will elevate their part to the this summer. segmentation.”

Social Media for Shops

SEMA Show Goes On

Media and Publicity for Shops Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

Shop Strategies with Victoria Antonelli

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Restore Crashworthiness with Corrosion Protection—Keys to a Safe and Proper Collision Repair by Chasidy Rae Sisk

“Today’s vehicles are highly engineered and not forgiving of imprecise repair processes. When it comes to crashworthiness after the repair, millimeters and milliseconds matter!” according to Scott Peirce, strategic account manager at 3M, during ASA’s Aug. 19 “Webinar Wednesday.”

simple repair, but the OEM procedures tell us the left rail has to be replaced and there are a lot of other major components that could be impacted by this collision. You have to take the rail apart, and it’s going to involve a lot of parts. It becomes a very intrusive repair, but that’s what it takes to correctly restore this vehicle to its pre-accident condition.”

“The responsibility to restore crashworthiness lies with you, your business and your technicians,” — Scott Peirce “The responsibility to restore crashworthiness lies with you, your business and your technicians,” Peirce said. “Many products and processes combine together to restore the initial condition of the vehicle so it’s capable of handling a subsequent collision.” Peirce explained corrosion protection is vital to restoring a vehicle’s crashworthiness. Corrosion can impact airbag timing, and fatalities are more likely due to rust. “If you can effectively access the area with a traditional paint spray gun, corrosion protection is best achieved by applying a direct to metal primer, followed by the vehicle’s color and clearcoat to achieve recommended dry film thicknesses, if and as required, per the specific paint company and vehicle manufacturer’s guidelines,” he said. “If you cannot effectively access the area with a traditional spray gun, that is when materials like weldthrough primer and cavity wax may be the most appropriate solution to help restore corrosion protection,” he continued. “A vehicle’s ability to resist corrosion could be significantly compromised if the vehicle manufacturer’s corrosion protection is not restored. This could also lead to future issues with safety and/or resale value.” 3M Business Development Manager Mark Algie joined in to look at a case study of a damaged bumper and examine the requirements related to 1500 MPA high strength steel frame rails. “OEM repair procedures need to be reviewed to determine repairability,” Algie said. “It looks like a

Moving on to welding, Peirce said six different weld conditions are required just for the front stiffener, and this part cannot be removed and reinstalled because of the spot welding conditions. “There are a number of manual weld settings that need to be adjusted to properly perform this repair,” Peirce said. “You can’t just move forward with replacement using automatic settings on welders. You need to stop, identify the different weld settings and adjust to get the proper welds.” After Peirce finished discussing weld-through primer recommendations, Algie shared information on several OEMs’ requirements related to bonding adhesive selection. “You always need to refer to the OEM repair procedures because they’re constantly being changed and updated,” he stressed. Bare metal seam sealers can help with corrosion protection and are designed for rapid production, but 3M recommends priming before seam sealing. “The market demands it because it’s good for production and speed,” Peirce said. “Bare metal seam sealers can be acceptable, but you have to ensure that all bare metal is covered. Any seam sealer is only effective if it is coated properly, but bare metal sealers are especially vulnerable if the coatings are too thin or do not achieve full coverage.” “Refinish technicians must be especially thorough while refinishing and be sure to paint from both directions to ensure full coverage of the ‘shadow side’ of the bead profile,” he added.

Identifying the most difficult areas to achieve full paint coverage as the door hem flanges, wheel openings, lower rockers flanges and any flange sealed near a tight corner, Peirce cautioned, “These also happen to be the most corrosion vulnerable areas of the car, so caution should be exercised.” Epoxy seam sealers provides better coverage then aerosol seam sealers, and it’s imperative to research OEM position statements and repair procedures in order to duplicate the original appearance and function of the seams. Next, Algie discussed cavity wax OEM requirements, emphasizing, “Cavity wax must be applied to all interior cavities, weld flanges, hem flanges as well as any area affected by the repair, especially where any type of welding was performed.” According to Peirce, a lack of corrosion protection inside cavities and on the back side of the welds is the most common problem found by post-repair inspection companies. He also discussed some of the qual-

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ity control tools that shops should invest in, such as a borescope and a mil gauge, in order to perform their own post-repair inspections. “Post-repair inspections are more common than many of us want to admit due to a more educated public— the educated consumer is much more aware,” Algie said. “We ALL have a responsibility to restore crashworthiness, and that can only be achieved by researching and documented that you’ve followed the OEM repair instructions,” Peirce said in conclusion. “You need documentation to prove that you followed the instructions, and you have to follow those recommendations; don’t choose equivalents because it’s definitely not worth a little bit of savings. Conduct your own post-repair inspection, and protect your shop.” The webinar ended with a Q&A session. For more information on ASA and future educational webinars, visit www.asashop.org/asa-webinars/. www.autobodynews.com

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Continued from Page 42

Burgeoning E-Commerce Again, all this online buying could mean fewer cars on the road, fewer miles traveled, fewer accidents and less collision repair work. Change In Shopper Preferences Eventually COVID-19 will be beaten but, according to Rakutan, but what will remain is a “permanent change in shopper preference.” Many people will become more germ conscious. Many shoppers will prefer no-touch deliveries, while social businesses and outlets like communal buffets may suffer a loss in popularity. Consumers may also be less attracted to using public keypads, something which will force retailers to switch to no-touch technology with more focus on general hygiene. Body shops may need to be “sanitizing” customer cars for some time to come. Fighting Fire With Fire It’s more important now than ever, especially since so many people are online, for businesses, including body

shops, to have a prominent e-commerce presence so customers can find them. Business owners should look at their website and Facebook or other social media presence, or better yet, have a disinterested friend look at it. How does it compare, not necessarily against other shops, but the presence of other businesses? I will expand on this in a subsequent article. Looking To The Future Rakutan suggests “consumer views on shopping in a new ‘socially distant era’ will likely remain beyond the pandemic.” Consumers must now deal with what is becoming a “longterm side effect” of the pandemic and a “new normal.” The pandemic acted as a catalyst for consumers’ swift transition to digital commerce and it will likely remain. Rakutan says the post-pandemic situation is similar to the effect of the 2003 SARS epidemic in China. Like the COVID-19 pandemic in the U.S., SARS caused the closure of shops, schools and factories, but opened the gates for e-commerce merchants. Alibaba, the Chinese

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equivalent of Amazon, received a huge boost. According to GlobalData, a UK-based data analytics and consulting company, “COVID-19 will have a long-term positive effect on the e-commerce sector, with even the most skeptical consumers forced to abandon physical stores in response to restrictions on movement.” According to PaySafe, “winning in this new e-commerce environment means an even greater focus on consumer experience. To win and keep these new customers that want to shop online more frequently, merchants must offer a seamless product via both browser and smartphone app.” For body shops, this means they must make it easy for customers to reach them via the e-commerce experience.

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 47

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with Stacey Phillips

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.

Five Years of Data Shows ‘Who Pays’ Surveys Making a Difference It’s been five years since I launched the first of our quarterly “Who Pays for What?” surveys, and I’ve been excited to see some of the changes in the industry I believe can be traced back to the industry’s participation. In the very first “Who Pays” survey back in 2015, for example, less than half of shops reported being reimbursed on behalf of the consumer on a regular basis by the eight largest insurers for tinting color. That has crept up gradually ever since, with 58% of shops this year saying they are reimbursed on behalf of the consumer from insurers for that procedure all or most of the time. Five years ago, about four out of five shops said they would bill for the labor to denib a vehicle if that procedure was necessary for the job—which it is on half or more of refinished vehicles, according to more than 75% of shops. But also five years ago, fewer than one-third of shops said they were regularly reimbursed from insurers on behalf of the consumer for the denib operation by the eight largest insurers. In fact, 44% of the shops that billed for it said those insurers “never” reimbursed them for it.

Now five years later, shops are still not getting regularly reimbursed on behalf of the consumer by the largest insurers for the “not-included” denib procedure, but the situation has certainly improved. In a “Who Pays” survey this year, just 22% of shops said the eight largest insurers never reimburse them on behalf of the consumer when denib was necessary, exactly half of the percentage in 2015. And just 12% of the more than 750 shops that participated in the survey said they never bill for the procedure when required, a 40% re-

duction over five years in the number of shops that had been doing the procedure “for free.” This is a measurable change on a very common repair procedure. I’m not the only one who thinks the surveys are having an impact. Among the shops that took our most recent survey, 88% said participating in the surveys has helped them improve their business. About twothirds said participating in the sur-

to charge for it, and the other half (16%) believe—presumably based on experience—the insurers never pay for it. The situation also has at least improved over time; in 2015, only 32% of shops reported being paid regularly for this procedure, and more than 40% of shops—twice the percentage as of today—believed the insurers “never” paid for it on behalf of the consumer.

A “Who Pays for What?” survey earlier this year found more shops were being paid regularly for the “denib” procedure

veys offer a good reminder about “not-included” procedures they are doing but for which they may not be itemizing and billing. And more than three-quarters said they use the survey to train and remind their staff about such procedures. September is your next opportunity to participate in a survey. It can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. We do not share information or individual responses with anyone. Visit this website to start: https:// www.crashnetwork.com/collision advice Here’s a bit more of what the surveys have shown us this year. About 57% of shops that bill for the time it takes to mask internal areas for refinish or cut-in are reimbursed by the eight largest insurers on behalf of the consumer “always” or “most of the time,” yet nearly one in three shops (32%) never get paid for it. That’s because half of them (16%) acknowledge having never thought

The surveys have also shown that some insurers are much more likely than the eight largest to reimburse shops on behalf of the consumers for “not-included” procedures when they need to be done. When asked how often they are paid to spend the extra time it takes to match the OEM paint texture on a repaired area, for example, shops said they are almost twice as likely to be reimbursed for that procedure by insurers like PURE or Chubb than they are by some larger insurers. Of the shops that negotiate to be paid for matching OEM texture, 74% said they are reimbursed on behalf of consumers “always” or “most of the time” by Chubb, compared to just 41% who said that one large insurer did. Even more mainstream insurers like Erie Insurance (No. 12 in terms of market share) pay shops for these same “not-included” procedures much more frequently than the eight largest insurers. Shops taking the survey reported the payment frequency for five additional insurers (Acuity, Amica,

Chubb, Erie and PURE) on four different repair procedures (denib; feather, prime and block; mask for prime; and match OEM texture.) Across all four procedures, Chubb had the highest payment frequency, with, on average, 76% of shops that negotiate for the procedures reporting they are paid “always” or “most of the time” by Chubb on behalf of the consumer. PURE, which like Chubb, targets more affluent customers, had the second-best payment frequency, with 74% of shops, on average, saying they are paid “always” or “most of the time” for the four procedures. The three other insurers—Acuity, Erie and Amica (No. 22 in terms of market share)—were not far behind, with averages of 70%, 72% and 68%, respectively. These averages are all far above the percentage of shops reporting the eight largest insurers reimburse them for these procedures on behalf of the consumer. For each survey you complete, you receive a free 65-page report with all the findings, and resources and ideas to help you put them to use in your business. You can also use the link for the survey above to download previous survey reports for free. So if you’ve taken the surveys in the past but it’s been a while, make this the month you get back to it. It takes just a few minutes of your time, four times a year. If you’ve not participated, consider this my personal invitation to check it out. I truly believe it can help your business, which helps the industry as a whole. As I like to say, “Don’t delay. Do it today!”

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Is Your Shop and Insurance Coverage Prepared for A Riot? by Gary Ledoux

We have all heard about the rioting going on across the country. For months, at least a dozen cities experienced businesses being burned, looted and extensively damaged. Government instituted curfews closed off whole sections of cities and shortened business hours causing businesses to lose income. It’s unnerving for everyone. Fortunately, it would appear collision shops have dodged the bullet, so far. Industry leader Brandon Eckenrode, of the Collision Industry Foundation, indicated no shops have requested financial help from the organization due to riot damage.

Any business owner can’t help but wonder if the mayhem will stop, or if it will expand into their area of the city. This must be especially perplexing for body shop owners who, besides worrying about their own property and equipment, are entrusted with customers’ vehicles, which must not only be repaired, but kept safe in the meantime. To find out how collision shop owners can help protect themselves if faced with civil unrest, we contacted several insurance company representatives to ask their advice. Generally speaking, they were very helpful and we are grateful for their contribution, but they preferred not to have their name or company mentioned publicly. Here are some of their major points: Coverage for Civil Commotion The riot (civil commotion) insurance coverage you may have, or may not have, is predicated on the state in which you operate your business, the

insurance carrier and how your policy is written. Check with your own insurance agent and see exactly what is covered, and, equally important, what is excluded. One representative noted, “In general terms, basic property insurance won’t be enough, but the shop owner can purchase a business operations policy and a garage keepers policy, which would usually extend coverage for damage done by rioting, fire and civil commotion.” Having Enough Coverage When talking with your insurance agent, consider not only what is covered (building, contents, equipment, company vehicles, customer cars) but also the amount of coverage in terms of dollar amount. One insurance representative noted it is not uncommon for small business owners to request the barest minimum of insurance coverage; for example, just enough to meet a standard set by the local municipality so they can get their business license or meet some other prerequisite. Business Interruption Business interruption coverage can be rather complex and beyond the scope of this article. This coverage can include loss of business hours due to official curfews and complete closure of the business due to riot damage. Policies may require a waiting period of 72 hours before claims can be made, and may be limited to a certain number of weeks of closure. Documentation of all facets of the loss are critical. Damage Mitigation Shop owners should take reasonable steps to minimize damages. This may mean boarding up windows or moving customers’ cars to another safer location. The cost of such actions, such as hiring people to board up shop windows or move cars to another location, may be reimbursable under the insurance policy, or not. Shop owners need to check with their agents.

Vehicle Accesories If you are working on accessorized vehicles, especially those with expensive items like high-end stereo equipment, custom tires and wheels, or light bars and lift kits, check with the vehicle owner to see if their insurance will cover those items if they are lost due to civil commotion. Chances are, the shop’s insurance will only cover standard accessories that came with the vehicle from the vehicle manufacturer and not something that was added after the fact. The vehicle owner’s insurance may only do the same unless they purchased some sort of rider policy. Building and Rubble Removal If your building becomes a total loss, you may be required under a city ordinance to remove the rubble of your building. It may sound morbid, but, before this becomes necessary, check to see how much it would ordinarily cost to remove and dispose of a building of your size. If your building is wrecked, chances are many

others are as well. Building removal experts may see this as an opportunity to charge premium rates. Make sure you have enough coverage. Terrorists and Vandals So far, those committing the many acts of civil commotion have been largely deemed “protesters.” However, insurers may assert they are not protesters, but terrorists, and thereby the damage is not covered. Also, if your building is left unattended for a certain amount of time, your insurer may invoke a vacancy exclusion deeming damage inflicted by vandals rather than rioters, which may not be covered. Again, and this cannot be stressed enough, check with your own agent to see if you have the correct coverage, in large enough amounts.

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Filterworks USA Becomes Autotality to Reﬂect Expansion Within Automotive Equipment Industry Filterworks USA, a leading equipment distributor within the automotive repair industry and part of Inc. Magazine’s list of Fastest-Growing Companies in the United States four years in a row, on Oct. 1 announced a rebrand to its title and visual identity. The new company name is Autotality, reflecting recent accelerated growth within the automotive repair equipment space stemming from Filterworks USA’s acquisitions of Carolina Collision, Moore Equipment, Trans-Star and Seifert Equipment Company. The new title demonstrates the company’s full spectrum of automotive equipment services to provide quality support for premier manufacturers across the automotive industry, and captures the company’s 360-degree roster of services for automotive service departments and collision repair centers. The new tagline, “Design. Equipment. Service.” clearly conveys the centralized mission of the brand to provide customers with unparalleled facility design, industry-leading equipment and unrivaled service.

Autotality’s growing fleet of vehicles to serve customers throughout the southeast U.S. will incorporate the new logo and tagline.

departments and collision centers, and our new, modern identity will drive continued advancement and growth within the space.”

“Our new brand, Autotality, brings together five of the leading automotive collision equipment distributors in the country with decades of combined experience,” said Gregg Strandberg, founder and CEO of Filterworks USA and president of Autotality. “Autotality is rooted in a passion for top-tier automotive facilities and a commitment to providing customers with industry-leading equipment. “Our new brand name better reflects our growing scope and capabilities as a world-class provider of equipment for automotive service

Autotality’s current market area includes the entire southeast: Florida, Georgia, Tennessee, South Carolina, Alabama, Virginia and North Carolina. Autotality is a licensed general contractor in Florida, Georgia and North Carolina, with additional states likely to be added soon. Autotality’s concrete and general contractor capabilities, collision expertise, new dealer experience and network of equipment manufacturers and dealer relationships will complement continued growth across the automotive space for years to come.

Acquisition Details Filterworks USA is an authorized distributor for leading equipment manufacturers in the collision and automotive repair industry, inducing Garmat USA, Car-O-Liner, Hunter Engineering, Rotary Lifts and more. Founded by Strandberg in 1988, Filterworks USA offers complete design, permitting, installation, training and services solutions for automotive collision centers and service departments, all in-house. In 2019, Filterworks acquired Trans-Star Automotive, Seifert Equipment and Carolina Collision Equipment. In 2020, Filterworks initiated its partnership with Moore Equipment Sales. Jim Seifert will continue to run and grow the Seifert division of Autotality. Larry and Lori Brolsma, the previous owners of Carolina Collision Equipment, remain in key leadership positions within Filterworks, continuing to run the CCE business. Mickey Moore, the previous owner of Moore Equipment Sales, continues to run the MES business for Filterworks. Source: Autotality

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Turn Eight Common Shop Owner Mistakes into Positive Life Lessons with Mike Anderson by Chasidy Rae Sisk

Mike Anderson of Collision Advice recently explained how to turn eight common collision shop owner mistakes into life lessons to benefit their businesses. “When you look at mistakes you’ve made, you have to realize that they aren’t mistakes if you’ve learned from them, and when you learn from them, they become life lessons. I’ve got a lot of life lessons I’d like to share today,” Anderson began. While presenting “Life Lessons of Collision Shop Owners” on Sherwin-Williams’ Ecolean University, Anderson was joined by Mike Lanza, manager of business consulting services at Sherwin-Williams Automotive Finishes, as they discussed why shops struggle and how to fix it. Anderson’s first life lesson focused on the importance of cycle time. He explained, “Cycle time should be important for DRP and independent shops alike because the basic goal in business is to get to breakeven as soon as you can every month. Fixing cars in a reasonable and timely manner will improve your customer satisfaction rate, and if you fix vehicles faster, that allows you to bring more cars in sooner and make more money.” Consumers aren’t the only ones who care about cycle time. This is a vital factor for insurers, particularly those with which the shop has a DRP relationship, because it leads to improved loss adjustment expenses, reduced rental expense and higher CSI scores. OEMs also care about cycle time because it impacts their brand; customers inconvenienced by shop delays are more likely to have a poor opinion of the vehicle manufacturer. Shops should strive to repair vehicles two to four days faster than their market average. “Cycle time is important to all stakeholders in the repair process, but it should be most important to you as a business owner because it’s the key to your breakeven point, which is how you put more money in your bottom line,” Anderson emphasized. Cycle time can be broken into three micro-cycles: pre-repair, repair and post-repair.

Pre-repair cycle time can be positively impacted through scheduling innovations, streamlining the administrative process, 100% disassembling, obtaining the right part the first time as fast as possible, dispatching in a timely manner and avoiding the pitfall of having too much work-in-progress onsite.

Mike Anderson

According to Anderson, “Pre-repair is the biggest opportunity for most shops.” Post-repair delays occur when there are issues with paperwork, last minute supplemental approval delays, notifying the customer the repair is complete too late in the day and struggles with payment verification. “These are self-inflicted,” Anderson stated. “Most of this is caused by doing things incorrectly during pre-repair.” The second mistake shops make, which can be turned into a life lesson, is inappropriate staffing. Build the team’s bench by cross-training technicians to fill each other’s shoes, and improve gross sales per collision tech by alleviating admin work from their shoulders. Anderson urged shop owners to consider the value of a parts person as well: “Shops often tell me they can’t afford a parts person, but I’ve found that the average tech makes a shop between $100 to $135 per hour in gross profit—you can hire a parts person for less than that, allowing techs to focus on fixing the vehicle, so the vehicle moves through the process quicker, making room for more cars and allowing the shop to ultimately make more profit.” Undervaluing culture and trust was the next life lesson discussed. Obtaining the trust of the OEMs, insurers and employees is vital for a shop to dominate in the future. “Broken promises lead to a loss

of trust. Sometimes, we have to go the extra mile to earn someone’s trust,” Anderson said. Lanza added information about weekly Personal Responsibility in Delivering Excellence (PRIDE) meetings held at Sherwin-Williams, where everyone shares their needs, successes and failures. “Everyone in the business is responsible for providing excellence, plus this allows management to hear everyone. Just being heard is so important,” Lanza said. Regarding the fourth life lesson—having a lack of financial knowledge—Anderson explained the purpose of a profit and loss statement is to determine where you’re making money, losing money and not maximizing profits. “When a shop is making a lot of sales, we don’t focus on what made us profitable,” he pointed out. “Lots of sales cover lots of sins.” Relying on position statements to get paid is another common mistake amongst collision repairers, according to Anderson. The 14 manu-

facturers that represent 98% of U.S. vehicles sales have position statements, but when asked what to do about the OEMs that don’t, Anderson insisted, “Quit relying on position statements. We need to dig deeper into OEM repair procedures. Often, repair procedures indicate that a scan is needed to complete a process.” Anderson’s sixth life lesson focused on the importance of hiring an in-house mechanic as it pertains to labor hours per estimate, the growth of mechanical labor operations and the impact this can have on both cycle time and gross profit. The penultimate mistake shop owners make is not mentoring others. “In the old days, people learned by working alongside a master, and everything they did was observed by the master,” Anderson shared. “Today, things move so fast that managers often aren’t around when their people first use their new knowledge. Many managers also have a ‘let me just do it’ mentality, but great leaders tell, show, watch, correct See Shop Owner Mistakes, Page 54

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52 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Uber Plans to Have an All-Electric Fleet by 2030 and a Zero-Emissions One by 2040 by Loukia Papadopoulos, Interesting Engineering

COVID-19 was hard on all of us but it did have some positive sides. As the world slowed down nearly to a stop, pollution also faded. This trend caused some changes in people everywhere who became ever more eco-conscious. This has caused a desire for more and more companies to go green. One such company is Uber. Let’s face it, the pandemic could not have been good for the ride-sharing firm. As people sought to avoid others at all costs, they opted to choose locations they could either walk or bike to or took their own cars. Can you think of any time recently where you used an Uber? This could be why Sept. 8, Uber CEO Dara Khosrowshahi released a blog where he spoke of his company going green during the pandemic recovery. “The pandemic has caused many cities to rethink their infrastructure, transforming parking into parks and creating more space for

walkers and cyclists. We’ve had a glimpse of what life could be like with less traffic and cleaner air—in cities built for people, not for cars,” wrote the executive. Khosrowshahi revealed his firm would not be going back to business as usual. Instead, it will seek to reduce its environmental impact. “It’s our responsibility as the largest mobility platform in the world to more aggressively tackle the challenge of climate change. We want to do our part to build back better and drive a green recovery in our cities,” he added. This will be no easy task as Uber has very ambitious plans. The company is committed to developing a fully zero-emission platform by 2040. Uber plans to have 100% of rides taking place in zero-emission vehicles by 2040 and 100% of rides take place in electric vehicles (EVs) in the U.S., Canada and Europe by 2030. Can this lofty goal be achieved? Only time will tell. We thank Interesting Engineering for reprint permission.

ge 54

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Defending Your Name line. We all have that one buddy or associate who sends silly videos all the time, but think twice before you share them with anyone else. You don’t want to share anything that is sexist, ageist, racist or political because you never know who might see it and be offended. Just delete them if you’re not sure, and avoid sharing inappropriate content. If the situation gets really bad for any reason, it might be time to lock down your pages. Change all of your privacy settings on all your websites so that only certain people can see what you post and respond. Another smart move is to limit what others can post about you. For example, in Facebook’s privacy settings, you can easily block other people from tagging you in photos without your permission. They can still tag you, but it won’t be public until you approve it. When none of these techniques work, start drowning out the bad content with new positive content. One of

the best methods out there is to advertise the fact that you help the community, mentor local auto tech students, give cars to deserving people, etc. You worked hard to earn fivestar Yelp reviews or positive comments on Facebook, so why not take the time to protect them? As more and more people go online to search for a body shop, your reputation is more vital, because just one negative review can affect you in many ways and none of them are good. Continued from Page 39

Preparing & Training and then look at where you want to specialize,” she said. She encourages those in the industry, especially collision repairers, to realize how great the new world will be with these technologies and try to become part of it. “Talking about all of this technology sounds awesome and it is, but when you boil it down to what really makes it work is the people,” said Farnsworth.

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 53

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Best Practice for Air Conditioning Repair, R&I and Replacement Before starting the A/C process, make sure all technicians are EPA approved with 609 certification https://www.epa.gov/mvac/ section-609-technician-training -and-certification-programs • Determine if vehicle is R12, R134A or R1234YF (possible sublet) • Get proper equipment ready for evacuation • Check for Refrigerant or Evacuate the system at teardown • Print out OEM data on A/C • Note amount of refrigerant removed* on estimate/repair order • Remove receiver drier and seal • Remove A/C condenser and seal if necessary • Seal off all A/C lines • Assemble A/C system using all new “O” rings with correct lubricant • Replace refrigerant • Any additional refrigerant needs to be added to the estimate/repair order • Add PAG oil to system if necessary and charge as necessary (Check

OE for specific oil and warranty) • Hybrids and EV vehicles may need a different oil (check OE data) • Check for leaks • Note temperature at center vent on dash and note on repair order (best practice would be to take a picture • Check A/C equipment for scheduled filtration service * Note—If there is no refrigerant in the system due to the accident, the descant in the receiver drier is compromised and the part should be replaced. Always refer to OEM procedures when an A/C has been opened. Lines Highlighted in red are non-included items

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Shop Owner Mistakes and repeat; you have to adopt this philosophy for building future leaders. Take a chance, mentor others.” Teaching allows you to learn twice. Make sure you’ve set clear expectations, provided the proper training and equipment, and allowed time to acclimate to the new information. Quoting Bob Goshen, Anderson added, “Leaders… should influence others… in such a way that it builds people up, encourages and edifies them so they can duplicate this attitude in others.” The eighth and final mistake to turn into a life lesson Anderson shared was playing not to lose, instead of playing to win. “Most of us start out playing to win! We move to playing to not lose. If I do this, my employees might quit, I might lose a DRP—we are focused on what we might lose, not what we might gain. Get off the sidelines and into the game! Don’t focus on what you might lose; focus on what you could gain!”

Best Practice for Pre and Post Scans • Discuss diagnostics, scanning and ADAS functions and calibrations with vehicle owner if possible • Make sure that an authorization for repairs has been singed • Move Vehicle to scanning stall • Note vehicle VIN, Miles, RO# and MIL illuminations • Inspect vehicle for ADA components and controls such as cameras, radar sensors, lane departure/blind spot indicators and steering wheel/ dash controls • Print out documented OE procedures for vehicle being scanned • Hook up battery charger to maintain voltage • Hook up scan tool and put vehicle in proper state for scanning • Perform all system DTC scan • Review individual system data values with scan tool related to codes retrieved and/or required data revised such as air bag deployment history steering angle, seat weight, camera or radar angle values • Note 3 case scenarios 1. No accident related codes 2. accident codes 3. Accident related and non accident codes • Research codes and data values

to determine repair options (OE procedures OEM pertinent data • Determine ADAS options (See Airpro Data Retrieval) that will require calibrations with or without DTC”s or Data faults • Blue print vehicle and pay particular attention to the ADAS components • Repair Vehicle back to its preloss condition. On reassembly, check OE data to determine if an assembly needs to be removed for calibration. • Document Initialization, Programing and module set up using procedures from OEM documentation • Perform Post Scan after vehicle assembly and determine New as well as Old DTCs • Clear all possible DTC and correct faults codes that shop equipment will handle and document. Even with all codes that have been cleared, it still may be necessary to send the vehicle for calibration as per OEM ADAS service information • Scenario 1—All codes have cleared and no calibration is necessary, all OEM procedures have

followed and documented, vehicle goes to the next step in the repair process. Scenario 2 vehicle codes have cleared, all OEM procedures have followed and documented, vehicle needs certain system calibrated, vehicle goes to in house calibration center, an outside vendor or OEM dealership. It is highly recommended that another post scan be performed and documented. Scenario 3, vehicle accident codes have not be cleared, an outside vendor is requested and/or vehicle is sent to OEM dealership to clear the codes and perform any calibrations that are required by OEM procedures. Also documentation is essential. Scenario 4, all accident codes have cleared, calibrations performed if necessary, but non accident codes have not been cleared. Customer needs to be notified and a release signed before vehicle is released. • Final step is to determine by the OEM procedures if a road test needs to be performed. Test drive procedures will be outline in the OEM data. A final test drive documentation needs to be filled out and added to the repair order jacket

Anderson closed with an anecdote about his 23-year-old self being discouraged by the constant complaints he heard from collision repairers. His father told him he had a decision to make: “Once you’re gone, will folks look back and say the collision repair industry sure changed Mike Anderson? Or will they look back and say Mike really changed that industry? What’s your legacy?” For more information about Collision Advice, visit collisionadvice .com Throughout the presentation, Lanza shared insights into how Sherwin-Williams can assist shops with each life lesson. More training videos are available at www.ecolean university.com.

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Daimler AG to Pay $1.5B for Emissions Cheating The U.S. Department of Justice, Environmental Protection Agency (EPA) and California Air Resources Board (CARB) announced Sept. 14 a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC, resolving alleged violations of the Clean Air Act and California law associated with emissions cheating. Under the proposed settlement, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the U.S. between 2009 and 2016 and pay $875 million in civil penalties and roughly $70.3 million in other penalties. The recall program and federal mitigation project are expected to cost the company about $4.36 million. The company will pay another $1.1 million to fund mitigation projects in California. Taken together, the settlement is valued at about $1.5 billion. Source: U.S. Dept. of Justice

Speaker Highlights Common Challenges Involved in ADAS Calibration “If you’re a shop and you have a brand new tire on the right rear, but Speaking at August’s Collision In- the other three are at the 70% or 80% dustry Conference (CIC), Bob Pat- worn level, what’s the decision? Is tengale, technical systems manager the insurance company going to pay for Opus Intelligent Vehicle Support, for all four new tires? Or just the discussed some of the challenges one? That’s something the industry collision repairers face in calibrating needs to answer. Technically you various advanced driver assistance should have a matching set of tires.” Using the Honda procedures systems. to calibrate the blind spot monitoring system on a late-model Accord as another example, Pattengale noted proper calibration requires a full tank of gas. Sandbags could be used to simulate the weight of the gas—about 5 lbs. per gallon—in a vehicle withIf sandbags are used to simulate the weight of a full tank out a full tank, he said, but of gas while calibrating a vehicle’s ADAS, they may need they need to be placed in to placed in particular parts of the vehicle, based on the portion of the vehicle where the tank is located just above the fuel tank. On Pattengale cited as an example the Accord, that means some weight a vehicle that had one or two tires on both the left and right sides of the vehicle, because it has a saddle fuel damaged in an accident. “Typically we’re looking to tank. “We need to try to be as accumake sure the vehicle has the same wear patterns on the tires all the way rate as we possibly can to mirroring around the vehicle,” Pattengale said. a full tank of fuel,” he said. by John Yoswick

Pattengale, who prior to last year spent more than a dozen years with Bosch, said he realized early on in his current position he needed to think differently about calibrations in a body shop versus a mechanical facility. On one of the first vehicles he calibrated in a body shop, he found the Allen screw used to adjust a radar unit was seized up, a common problem depending on vehicle age and geographical area, he said. “The area in that shop being used for calibrations happened to be in the paint prep area,” Pattengale said. “I’m thinking that since this thing is locked up, I’ll spray a little WD-40 on it. I had to take my mechanical hat off and think about that that spray could definitely create an issue with paint.” In some cases, he said, such ADAS units may need to be replaced because they cannot physically be adjusted. “The physical radar itself is not bad, but the bracket that holds it, or the device that adjusts it, is not functioning or in the proper position,” he said. “That can be an unexpected item [during repairs.]”

SEMA Data Co-op Acquires PartsHub

The SEMA Data Co-op (SDC) has acquired PartsHub, a comprehensive catalog management solution that will enhance a participating manufacturer’s ability to create and update industry standardized product information, regardless of their product data knowledge or expertise. The SDC is the leading product data service in the specialty equipment aftermarket. Using PartsHub’s expanded product information management (PIM) software, SDC manufacturers will be able to easily organize their data, reach more resellers and sell more products. Integrating PartsHub’s interface with the SDC product information management system makes it easy for manufacturers to organize and update their data for industry resellers. The updated interface also allows possible datasets that can easily be exported in formats that meet reseller needs.

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Honda Agrees to $84M Multistate Settlement for Defective Airbags Kentucky Attorney General Daniel Cameron announced Aug. 25 a more than $84 million multistate settlement with American Honda Motor Co., Inc. and Honda of America Mfg., Inc. (collectively “Honda”), over allegations Honda concealed safety issues related to defects in the frontal airbag systems installed in certain Honda and Acura vehicles sold in the U.S. The systems were designed and manufactured by Takata Corporation, a longtime Honda supplier, and were first installed in Honda vehicles in the 2001 model year. The settlement, reached between the attorneys general of 48 states, territories and the District of Columbia and Honda, concludes a multistate investigation into Honda’s alleged failure to inform regulators and consumers that the frontal airbags posed a significant risk of rupture, which could cause metal fragments to fly into the passenger compartments of many Honda and Acura vehicles. The ruptures have resulted in at least 14 deaths and over 200 injuries in the U.S. alone. “Our Consumer Protection Division represents the interest of Kentuckians and fights on their behalf when there is a widespread product

safety concern, like we’ve seen with the defective airbags in these vehicles,” said Cameron. “This multistate settlement ensures that product safety standards are strengthened going forward.” Anyone who owns a Honda or Acura vehicle is urged to visit the airbag recall website at https://hondaairbaginfo.com to learn more. The states have alleged Honda engineers suspected the airbags’ propellant, ammonium nitrate, could burn aggressively and cause the inflator to burst. Despite these concerns, Honda delayed warning consumers or automobile safety officials, even as it began partial recalls of affected vehicles in 2008 and 2009. Further, Honda continued to represent to consumers that its vehicles, including its airbags, were safe. Since 2008, Honda has recalled approximately 12.9 million Honda and Acura vehicles equipped with the suspect inflators. The states have alleged Honda’s actions, or perhaps more accurately its failures to act, as well as its misrepresentations about the safety of its vehicles, were unfair and deceptive, and that Honda’s conduct violated state consumer protection laws. Under the terms of the consent judgment, which will be filed in Frank-

lin Circuit Court, Honda has agreed to strong injunctive relief, which, among other things, require it: To take steps to ensure that future airbag designs include “fail-safe” features to protect passengers in the event the inflator ruptures. To adopt changes to its procurement process for new frontal airbags, to ensure that its suppliers have the appropriate industry certifications and satisfy key industry performance standards, as well as improve record-keeping and parts tracking. To implement recurrence prevention procedures such as requiring that Honda approve all new frontal airbag designs before the company will consider them for use in new Honda vehicles. To abide by prohibitions on misleading advertisements and point of sale representations regarding the safety of Honda’s vehicles, including the airbags. To make improvements in critical areas such as risk management, quality control, supplier oversight, training and certifications, and implementing mandatory whistleblower protections. Honda also agreed to pay the participating attorneys general a total of $84,151,210.15. Consumers who own a Honda or

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Hyundai Parts Dealers: autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 57

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GM Tells Most Salaried Workers to Stay Home Till Next Summer by Mark Phelan and Jamie L. LaReau, Detroit Free Press

General Motors salaried workers in the U.S. have been told to plan on continuing to work from home until at least June 30, 2021, according to an internal document provided to the Free Press. “In coming weeks, you will receive instructions from your site leader regarding the process to retrieve personal belongings and any equipment necessary to work remotely,” according to an email signed by GM Global Human Resources Chief Kim Brycz and GM Chief Sustainability Officer Dane Parker. Hundreds of GM salaried employees are already working at factories, tech centers and other facilities, but the vast majority have been working remotely since the gravity of the COVID-19 pandemic became clear in March. “Our current outlook is to continue operating as we are today until June 30, 2021,” the memo said, adding GM is working to create “a more flexible work culture” after the

pandemic. The memo concluded with a reminder for all employees to practice good safety protocols: “Wear a mask, wash your hands frequently, physically distance whenever possible and get a flu shot when they become available this fall.” GM had been considering bringing some employees back later this year. The revised schedule is the latest sign U.S. business leaders think we’re a long way from having the pandemic under control with treatments or a widely available vaccine. “Every company is struggling with when and how to bring employees back into corporate offices, particularly since mass availability of a vaccine remains months away,” Cox Automotive Senior Analyst Michelle Krebs said. “Configuration of workplaces and common areas, like the cafeteria and restrooms, have to be contemplated. Ventilation is a consideration. “Getting people to and from

their offices using elevators is a conundrum. Sure, you can try to limit the number of people in an elevator, but then how do you manage people gathering to wait for the elevator.” Separately, employees at Wards Communications cleared out their offices in Southfield, MI, this week at the company that has covered the auto industry for nearly a century. Ward’s employees will work remotely, using a portion of their previous workspace for supplies, occasional meetings and a video studio. “Employers have discovered that their workforce has been surprisingly productive working from home, albeit not ideal especially for parents with children being schooled at home,” Krebs said. “And no company—like schools and colleges— wants to get people back into the office only to suffer a virus outbreak and send everyone home.” We thank the Detroit Free Press for reprint permission.

ProColor Collision to Enter U.S. Market Mondofix (Fix Network World) has announced plans to launch the ProColor Collision brand in the U.S. “There is tremendous potential for the continued growth of the automotive aftermarket space in the United States, in particular the collision business,” said Steve Leal, president and CEO of Fix Network World. “We look forward to growing the ProColor Collision brand by directly pursuing aggressive new strategies that leverage our global track record and benefit industry partners and customers in the U.S.” Fix Network World acquired ProColor Collision in September 2019 with a vision to expand the valuable brand outside Quebec. The first ProColor Collision location in Ontario, Canada, opened in July of this year, with another 14 locations expected to launch across Canada by December. In the U.S., ProColor Collision will initially focus on building its network in California, Florida, Georgia and the Carolinas. Source: ProColor Collision

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for e!

As Hurricane Season Arrives, CARFAX Provides a Flood of Information by Auto Remarketing staff

A musty odor in the interior. Damp carpets. Rust around doors. With the arrival of hurricane season and more waterlogged vehicles showing up around the country, CARFAX is releasing information on various aspects of the situation, such as telltale signs of vehicle flooding.

CARFAX is also highlighting statistics such as the fact that 446,836 flood-damaged cars are on the roads in 2020. That is according to annual CARFAX data, and the company says that number could rise in the wake of Hurricane Laura. CARFAX says Laura damaged as many as 5,000 vehicles.

“This nationwide surge can put unsuspecting buyers at risk,” CARFAX wrote in a news release. The company also released a list of the top 10 states with the most vehicles reported as flood damaged by entities such as departments of motor vehicles and insurance companies. Although Texas leads the nation in flood-damaged cars, vehicles with flood damage show up in states where flooding might not be at the top of car-shoppers’ minds, according to CARFAX research. CARFAX general manager of data Faisal Hasan said car shoppers should do their homework, and Hasan reiterated that “flood-damaged cars surface in every corner of the country.” “Con men can quickly clean up these cars up, move them and then resell them,” Hasan said. “Once a car has been waterlogged, it will never be the same. These cars literally rot from the inside out, and the mechanical, electrical or safety systems can fail at any time.”

California motorist Carole Ross can relate. She was driving her vehicle home from the dealership and owned it for less than two hours before it broke down. “We ran a CARFAX Report while we were on the side of the road waiting for a tow truck, and that’s when we saw the car had been in a flood in Louisiana a few years ago.” To help consumers avoid such situations, CARFAX has released its list of the seven telltale signs of flooding. Those include: • A musty odor in the interior, which sellers sometimes try to cover with a strong air-freshener • Upholstery or carpeting that may be loose, new, stained or doesn’t seem to match the rest of the interior • Damp carpets • Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches • Mud or silt in the glove compartment or under the seats • Brittle wires under the dashboard • Fog or moisture beads in the interior lights, exterior lights or instrument panel

CCC AutoClaims Snapshot—August 2020 Overall repairable appraisal counts for the industry were down 14.9% in August 2020 versus August 2019. Severe weather in the Northeast from Hurricane Isaias, significant hail in South Dakota and Minnesota and dangerous derecho event in Iowa and Illinois led to an increase in comprehensive losses in the first half of the month. For example, comprehensive losses in Iowa accounted for 70% of all total loss valuations and 66% of all repairable appraisals. This underscores both the severity of the storms and the fact that non-comprehensive losses overall remain down. Losses from the wildfires in California and Hurricane Laura in Louisiana and Texas also continue to come in. Increases in comprehensive losses overall will help offset the decline in non-comprehensive losses and if September weather is as volatile, could result in claim counts for the year down only about 5%. Excluding comprehensive losses, counts also remained down over 25% year-to-date, although August 2020 non-comprehensive counts were down only 20.5% versus down

24.7% in July 2020. Areas hit hardest by the wave of COVID-19 infections in California and Texas have slowed claim

count recovery in late July and early August, with areas such as San Francisco, Los Angeles, Dallas, Houston and El Paso still seeing non-compre-

hensive appraisals down between 27% and 30%, while volume in other areas such as NYC, Chicago, Atlanta, Denver and others is down between 15% and 20%. Government data from early August reveals interstate miles are still down most among all road types, and this is consistent with data from other sources showing rush hour traffic is still below average in many cities. The primary factor most highly correlated to accident frequency is vehicles per road mile—i.e. how many vehicles on a given road at any given point. This is also typically referred to as “congestion,” which right now in most areas still seems to be below normal. With the number of COVID-19 cases rising again as many return to school, and the approach of normal flu season, many companies plan to keep at least part of their staff remote through the remainder of the year. This will likely mean non-comprehensive may remain down 10% to 15% for full year 2020. Source: CCC

CARFAX offers a free Flood Check tool at carfax.com/flood to help protect consumers. The tool includes a national map showing where flood cars have washed up, and a flood damage checklist consumers can perform. The following states have the most flood-damaged vehicles, and all of them have seen an increase since 2019: Texas: 98,400, +13% Florida: 31,300, +8% Kentucky: 26,400, +6% Pennsylvania: 23,400, +18% North Carolina: 19,300, +3% Illinois: 17,800, +14% New Jersey: 14,500, +15% Louisiana: 14,000, +22% California: 12,400, +10% South Carolina: 12,000, +10% The CARFAX information also included a list of the top 10 cities with flooded cars. Houston, New York, Philadelphia and Miami-Fort Lauderdale lead the way. We thank Auto Remarketing for reprint permission.

ASE Survey Finds Adaptions ASE conducted a comprehensive survey to understand the impact of the COVID-19 pandemic on the automotive service industry. While 19% of those surveyed have seen an increase in business since the start of the pandemic, 56% reported a decrease. The survey found that 34% of service facilities have reduced business hours, and the effect on technicians has come in the form of reduction of hours (34%), temporary furloughs (14%) and terminations (8%). Results show nearly 70% of those surveyed are using protective equipment, while 63% have implemented social distancing measures and 62% have added supplemental sanitizing measures. More than 65% said they have done some type of selfstudy or enhanced training, while 46% participated in a webinar or online training course.More than 42% of respondents said they have increased their usage of social media somewhat or significantly, with Facebook and YouTube named as the top platforms used. Source: ASE

autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 59

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October 2020 Midwest Edition

Articles inside

Classifi eds

Mitsubishi Wholesale Parts Dealers

MINI Wholesale Parts Dealers

McGrath City Hyundai

Patrick BMW MINI

Subaru Wholesale Parts Dealers

Hawkinson Kia

BMW Wholesale Parts Dealers

Patrick Hyundai

Courtesy Subaru

Sears Imported Autos, Inc

MOPAR Wholesale Parts Dealers

Wedge Clamp Systems

Steck Manufacturing Company

Kelly BMW

Shaheen Chevrolet Parts Warehouse

Morrison’s Auto Parts

Honda-Acura Wholesale Parts Dealers

Network 1 Solutions Collision Equipment

FAST Shelter

Certifi ed Automotive Parts Association

American Icon Automotive Finishes

Equalizer Industries, Inc

Malco

Eckler’s Automotive

Mirka USA, Inc

Sherwin-Williams Automotive Finishes