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Attorney John Arthur Eaves and Shop Owner Bill Fowler appear on Memphis Radio to Discuss MDL Suit

by Chasidy Rae Sisk

On Tuesday, August 26, attorney John Arthur Eaves and shop owner Bill Fowler, of Bill Fowler’s Bodyworks in Southaven MS, appeared on the Drake and Zeke Show, a popular early morning radio talk show in the Memphis, TN area. The reason for their guest appearance was to explain the MDL lawsuit to consumers and educate them on their rights during the collision repair process in hopes of raising awareness about this important issue impacting collision repair facilities across the country.

To begin, the radio hosts summarized the lawsuit they planned to discuss. In January 2014, Eaves filed a complaint against insurers on behalf of 21 collision repair shops. Though the lawsuit began in MS, it has spread and continues to gain traction so that it is now a national lawsuit, involving six states, which will be tried by a single judge in FL. Multiple insurers have been implicated in the complaint as the habit of insurer steering is an industry-wide problem.

Fowler pointed out that steering has become so pervasive in the indusSee Memphis Radio, Page 32

Congress Expresses Support of Repair Industry in Response to Owners’ Trip to Washington D.C.

by Stacey Phillips, Assistant Editor

Sixty-five collision repair shop owners recently traveled to Washington D.C. to educate Congress about the struggle body shops face to protect consumers when providing a complete and safe repair. The majority of them were part of a Nationwide AntiTrust Multi-District Litigation filed earlier this year against multiple insurance companies in several states.

(See also other cover story this page.)

After more than 150 meetings with representatives and senators over a three-day period, the result was an outpouring of support for an industry

VOL. 4 ISSUE 2 NOVEMBER 2014

MSO Consolidations in CA Heat Up Industry

by Stacey Phillips, Assistant Editor

Last month we reported on the final closing of the purchase of Holmes Body Shop’s seven locations by Cooks Collision Centers. The Holmes acquisition was initiated in May 2012 and concluded with the seventh Holmes location closing in September of this year, after our last issue went to press.

With 35 locations in CA, Cooks is the largest independently owned and operated collision repair organization in the state.

But Holmes is not even the latest medium-sized MSO to be acquired by larger consolidators in California. In September, Service King Collision Repair Centers acquired Marco’s Collision Centers, also a medium-sized MSO having seven locations in

Southern California. Shortly thereafter Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California.

Is there some kind of ‘rule of sevens’ at play here? More seriously, we wanted to know what forces were driving the acquisition of small to mid-size MSOs and why they seem more attractive than individual shops for acquisition.

Nearly 20 years ago David Roberts, the co-founder and former Chairman of the Board for Caliber Collision Centers, wrote an article predicting the future of consolidations in the collision repair industry. It was entitled Shop Consolidation: Is it Inevitable? Undoubtedly, Roberts anSee MSO Consolidations, Page 30

Pro Spot is Ford’s Rotunda Supplier of the Year Carlsbad’s Pro Spot is very proud to be awarded the supplier of the year award by the Ford Motor Company Rotunda Program. Pro Spot was approved by Ford to supply aluminum repair equipment to the Collision Repair Program for repairs on the new 2015 Ford F-150 all-aluminum body truck. The Ford Rotunda Dealer Equipment Program is a national program endorsed by Ford

Matt Parker with House Speaker John Boehner

faced with the challenge of insurance companies dictating how they run See Congress Support, Page 34

(l to r) Mike Berardi (Ford Director of Service Engineering Operations), Ashley Olsson (Pro Spot Director of Communications), Ron Olsson (Pro Spot Founder & President) and Steve DeAngelis (Ford Manager of Technical Support Operations). Photo Credit: Ashley Olsson

Motor Co. to their dealer base, selling service and body shop repair equipment. The approved equipment included: the SP Pulse MIG welders— the most sold Ford-required MIG

welders in North America, the Aluminum Dent Repair Stations, Fume Extractors, and the SPR Riveter; all of which contributed to the winning of the Supplier of the Year award. “We would like to thank Team Pro Spot for all of their hard work and all of our customers that have supported us in purchasing our aluminum repair products. This means a lot to our team at Pro Spot,” said Ron Olsson, Pro Spot President, “I’m overwhelmed and very honored to win this award from Ford. We have been working very hard and appreciate the trust in our equipment and of course, the overwhelming amount of orders we have received for the aluminum program.”

The 2015 F-150 is revolutionizing the repair industry by mainstreaming aluminum repair. With the hard work by Ford Motor Company in designing a repairability-focused, all-aluminum body F-150, shops across the country are getting prepared to repair the top selling vehicle. Pro Spot is proud to be recognized as a supplier of quality aluminum repair equipment to the Collision Repair Program and the 2015 Ford F-150 truck. Pro Spot looks forward to continuing to design innovative equipment for shops and technicians to repair vehicles back to OE standards.

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2 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Contents ABRA Auto Body & Glass Continues Its Expansion With Openings in

the Persuasive Power of Video . . . . . . . 14

Attanasio - Gas Monkey Garage and Dodge

Recruit Mötley Crüe to Rock Dallas . . . 18

Iowa and Illinois. . . . . . . . . . . . . . . . . . . 4

Franklin - Are You Marketing to Merely

with Disabilities . . . . . . . . . . . . . . . . . . . 6

Luehr - Lean Implementation Strategies . . 20

Anti-Texting Campaign Catches Fire . . . 31

7th Annual Trade Show . . . . . . . . . . . . 17

Attanasio - Chicago Body Shop’s

Survive or Are You Trying to Grow . . . . 27

Sisk - Record Numbers Attend Pro Paint’s

CARSTAR Expands MSO Network in KY . . . 6

Yoswick - DRPs 20 years ago, Early

First Amendment Rights Questioned

Yoswick - Energy Transfer in Today’s

Collision Shop Expands to Middletown, Ohio . 6

in Kentucky . . . . . . . . . . . . . . . . . . . . . . 9

Gerber Collision & Glass Opens

New Center in MI . . . . . . . . . . . . . . . . . 10

IL Body Shop Sells Building . . . . . . . . . . . 10 Illinois Shop Gives VoTech Interns

Real-World Experience . . . . . . . . . . . . . . 6

Iowa Auto Body Shop Owner Suspected

of Homicide. . . . . . . . . . . . . . . . . . . . . . 8

Ken Borth Auto in Iowa Has New Owner. . . 8

CCRE, ADP Revises Labor Times. . . . . 22

Vehicles Makes Measuring, Multi-Point

Pulling More Important . . . . . . . . . . . . 26 NATIONAL

Alcoa Forecasts Record Auto Sheet

Shipments in Q4 . . . . . . . . . . . . . . . . . 39

Attorney John Arthur Eaves and Shop

Owner Bill Fowler appear on Memphis

Radio to Discuss MDL Suit . . . . . . . . . . 1

MI Establishing Test Town for

Axalta Paint Used on NASCAR Qualified

Michigan Governor Signs Drugged

Car-O-Liner Participation Enhanced

New MI Law Allows Drivers Community

Chevrolet Brings Back the Corvette

New MI Law Bars Tow Truck Drivers

Congress Expresses Support of Repair

Driverless Cars . . . . . . . . . . . . . . . . . . 10

Driving Laws . . . . . . . . . . . . . . . . . . . . 10 Service . . . . . . . . . . . . . . . . . . . . . . . . 10 from Harrassing Drivers . . . . . . . . . . . . 10

New Top End Cadillac to be Built in

Detroit in 2015. . . . . . . . . . . . . . . . . . . . 9

Racers. . . . . . . . . . . . . . . . . . . . . . . . . . 9 With Social Media . . . . . . . . . . . . . . . . 39

Stingray in Time for SEMA . . . . . . . . . . 36

Industry in Response to Owners’ Trip

to Washington D.C. . . . . . . . . . . . . . . . . 1

I-CAR Launches Two New Refinish Courses. 39

Ohio University Improves Costs in

Mercedes Will Train 26,000 in the

Recent Classic Car and Motorcycle

Omix-ADA to Give Away 2014 Jeep

Santa House Built by Ohio Shop Owner

Penta Pieces Together Old Ford Pickup. . . 38

Fleet Utilization . . . . . . . . . . . . . . . . . . . 8 Show in Wisconsin . . . . . . . . . . . . . . . 10 Supports Community. . . . . . . . . . . . . . 13

TX Company Sued by MN Attorney General

Brand’s New Culture . . . . . . . . . . . . . . 37

Wrangler at SEMA . . . . . . . . . . . . . . . . 36

PPG Waterborne Shop Conversions

Exceed 10,000 . . . . . . . . . . . . . . . . . . 36

for Selling Extended Auto Warranties . . 16

Pro Spot is Ford’s Rotunda Supplier

Military Cart for Southwest Airlines

Recent MSO Consolidations in CA

WI Auto Repair Shop Creates Special

to Carry Fallen Soldiers . . . . . . . . . . . . 12

Wisconsin Repair Shop Owner Participates

in Wheels to Prosper, Seeks Nominations

for Gift. . . . . . . . . . . . . . . . . . . . . . . . . . 4 COLUMNISTS

Attanasio - Body Shops are Tapping into

of the Year . . . . . . . . . . . . . . . . . . . . . . . 1

Heat Up Industry . . . . . . . . . . . . . . . . . . 1

SEMA: Sales of Auto Parts & Accessories

Reach $33B. . . . . . . . . . . . . . . . . . . . . 37

Takata Airbag Recall May Include

GM Vehicles . . . . . . . . . . . . . . . . . . . . 37

Three Types of Parts Account for

Autobody News is pleased to introduce Norman Morano who joined our team in October as an Advertising Sales Manager. Norm has been a Sales Director for 13 years handling Hammer & Dolly, New Jersey Automotive, New England Automotive, AASP-News/MN and Wisconsin Automotive News. He has also sold exhibitor space for the past four years at the Northeast Automotive Trade Show.

Norm graduated from the University of California at Berkeley in 1982 with a BS degree in Environmental Studies. After college he travelled extensively before attending Law School at Rutgers University School of Law. He was admitted to the bar in New Jersey and Pennsylvania and has kept his NJ bar license active. Born and raised in Nutley, NJ, Norm has also lived in Orono, ME, Berkeley, CA, and Sydney, Australia. Before concentrating on automotive advertising he had his own sign company building his sales contacts throughout NY, NJ, PA, CT and DE. When he isn't working, Norm enjoys biking, yoga, surfing, motorcycling, movies, pizza and the New York Times. He has been a resident of the Jersey Shore for the past 26 years. Contact Norm to discuss your advertising needs at nmorano@autobodynews.com.

Contact Norm at: nmorano@autobodynews.com to discuss your advertising needs.

Three Types of Parts Account for 50% of Sales Online

In terms of dollars spent on automotive replacement parts through online purchasing, or e-tailing, three categories represent half of the dollar volume in 2013, according to E-Tailing in the Automotive Aftermarket from the Auto Care Association.

The top three product categories are braking systems (primarily pads and shoes); ignition and engine (fuel pumps, alternators, ignition coils, etc.);

50% of Sales Online. . . . . . . . . . . . . . . . 3

and glass, mirrors and lamps.

The E-Tailing in the Automotive Aftermarket digital study analyzes the online retail market for sales of aftermarket parts, and serves as the foundation for the Auto Care Association to provide a unified estimate of online sales within the aftermarket.

For pricing and more information, visit www.autocare.org/etailing.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Indexof Advertisers

ABRA Helped Raise $100K for People

Norman Morano is Our Newest Regional Sales Manager

Audi Wholesale Parts Dealers . . . . 35 Automotive International. . . . . . . . . 20 BMW Wholesale Parts Dealers . . . . 31 Car-Part.com . . . . . . . . . . . . . . . . . . 10 CarcoonAmerica Airflow Systems . 16 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 Charles Gabus Ford . . . . . . . . . . . . 21 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Color-Dec North America, Inc. . . . . 12 Dent Magic Tools . . . . . . . . . . . . . . 18 Dent Tools Direct USA . . . . . . . . . . . 4 DJS Fabrications, Inc.. . . . . . . . . . . 40 Equalizer Industries, Inc. . . . . . . . . 26 Erhard BMW of Bloomfield Hills . . . . 8 Erhard BMW of Farmington Hills . . . 8 GlasWeld Systems, Inc . . . . . . . . . . 26 GM Wholesale Parts Dealers . . . . . 33 Graham Auto Mall . . . . . . . . . . . . . . 27 Hall Volkswagen-Mazda . . . . . . . . . 17 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers . 33 Jake Sweeney Chevrolet . . . . . . . . 28 Kia Wholesale Parts Dealers. . . . . . 37 Laurel Auto Group of Westmont . . . 19

Serving Illinois, Iowa, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Wisconsin and adjacent metro areas.

Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

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New Talent Joins the Autobody News Sales Staff

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

Lexus Wholesale Parts Dealers . . . 37 Loaner & Rental Insurance by Northland . . . . . . . . . . . . . . . . . . 30 Luther Hopkins Honda . . . . . . . . . . 23 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Maplewood Toyota-Scion . . . . . . . . . 9 Mazda Wholesale Parts Dealers . . . 36 Mercedes-Benz . . . . . . . . . . . . . . . . . 5 MINI Wholesale Parts Dealers . . . . 31 Mitsubishi Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . 39 MOPAR Wholesale Parts Dealers . . 29 Morrison’s Auto Parts . . . . . . . . . . . 13 Motor Guard Corp. . . . . . . . . . . . . . . 6 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SATA Spray Equipment . . . . . . . . . 11 Subaru Wholesale Parts Dealers . . 32 TG Products, Inc. - The Rail Saver . 14 The Sharpe Collection of Automobiles . . . . . . . . . . . . . . . . 22 Toyota of Des Moines . . . . . . . . . . . 21 Toyota of Grand Rapids . . . . . . . . . 23 Toyota Wholesale Parts Dealers . . . 34 Valspar Automotive . . . . . . . . . . . . . . 7 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 3

Wisconsin Repair Shop Owner Participates in Wheels to Prosper, Seeks Nominations for Gift

by Victoria Antonelli, Online Editor

On December 5, Kubly’s Automotive in Brodhead, WI, will donate a refurbished Chevrolet Malibu to a lucky family in need through a program called Wheels to Prosper.

The giveaway will take place during the annual Fire N Ice festival, which attracts over half of Brodhead’s 3,500 residents, according to Dusty Kubly, owner of Kubly’s Automotive.

“Originally, I didn’t intend to give the car away at the festival,” said Kubly,

Kubly’s Automotive in Brodhead, WI

“but it seemed like the perfect opportunity, especially with Christmas around the corner.”

Kubly’s Automotive is the first shop in Wisconsin to participate in

Wheels to Prosper, a national nonprofit run by shop owners who contribute donated, restored vehicles to deserving people. Kubly initially heard about the program after meeting the co-founder, Jim Anderson, while taking business management training courses in California.

“I’ve been in business for 21 years; it’s time to pay it forward,” said Kubly. “I want to support those who have supported me by giving back to the community.”

On September 26, Kubly sent out the first flyer letting the community know that the shop will be taking nominations for the car giveaway from now until November 21. NBC15 covered the story on the morning of September 29, and by that afternoon, he received 16 nominations.

“The letters and responses we’ve read have been out of this world,” said Kubly. “It has only been a week and I already know I want to do this every year.”

Seven judges have been appointed to choose the winner, including Kubly’s wife, Roxy, local business owners, and members of the Chamber

ABRA Auto Body & Glass Continues Its Expansion With Openings in Iowa and Illinois

ABRA Auto Body & Glass announced the opening of its newest franchise in Fort Madison, IA, along with the acquisition of Corpo Collision Center in Schaumburg, IL. It’s ABRA’s 50th franchise and the company’s second acquisition in Illinois within 14 days.

The additional openings in both states increased ABRA’s total repair center portfolio to 247 in 19 states.

In September, ABRA acquired Consolidated Auto Service Center in Forest Park, Illinois and on October 3 the company announced it had expanded in the Chicago area with the acquisition of AutoWerks of Northbrook, Inc. in Illinois – about an hour northwest of downtown Chicago.

Terms of the transaction were not disclosed.

Duane Rouse, ABRA’s President and CEO, said the company’s successful expansion is simply a reflection of consumer demands and changes in the collision repair industry. “The expectations of vehicle owners and insurance partners continue to grow,” he said. “The favorable outcomes we’ve achieved in Illinois and around the Midwest are a direct result of industry experience,

superior processes and our commitment to quality. We’re a trusted name in these communities.”

“It’s about meeting the demand of our customers and insurance partners in the community,” said Mark Wahlin, ABRA’s Vice President of Franchise Development/Relations.

“Expanding operations in Iowa makes sense. Offering top-quality collision repair and glass service across the country is what ABRA is all about.”

ABRA plans to continue expanding in the months and years ahead as part of its aggressive national growth strategy. It is actively seeking new opportunities to acquire repair centers and integrate them into its industryleading operating system.

Interested parties in major markets should contact Scott Gerling, Vice President of Corporate Development (sgerling@abraauto.com or 763.585.6210).

For franchise opportunities in small and midsize markets contact Mark Wahlin, (mwahlin@abraauto. com or 763 585 6315).

4 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

of Commerce. Kubly said he wants to remain unbiased and not participate in the picking.

“Local business owners and politicians were excited to get involved,” said Kubly. “Everybody wanted to lend a helping hand.”

Dusty and Roxy Kubly and their two children

Kubly bought the Chevrolet Malibu from a private party in a different town. According to Kubly, the car doesn’t run, and the hood, gaskets, fluids and brakes need to be replaced, just to name a few things.

“The car will be 100 percent functional before the giveaway,” he said.

Napa Auto Parts and Murray’s Auto Salvage will be supplying the necessary pieces, Body Crafters

Auto Body will be making the paint look new, and Patti Reavis at State Farm Insurance has offered to help set up car insurance for the future owner.

“Brodhead isn’t a small town, it’s a big family,” said Kubly.

Kubly would also like to thank Speich Oil Company and Piggly Wiggly Grocery for contributing to the runner-up prizes. The two runner-ups will each receive a $150 gas card and a $75 grocery certificate.

As of October 4, Kubly had received 22 nominations for the giveaway.

The outpouring of support has inspired the repair shop owner to put together another event to benefit the community. On October 11, he will hold a free car care clinic, where high school students will be taught how to check their fluids and “listen to their car.”

“The main reason for this is to make people aware,” said Kubly. “A car is the second biggest investment you’ll make in your lifetime, after a house. It’s important to understand how it works.”

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 5

Illinois Shop Gives VoTech Interns Real-World Experience

into a show car.

“The students really enjoy exFor the past two years, Mike’s Auto periencing how an actual body Body of Sandwich, IL, has given ed- shop works, as opposed to learnucational tours to students in body ing about it in a classroom,” said Stacy Skillin, who has co-owned the 30year-old shop for seven years.

Stacy’s segment of the tour covered office functions, such as insurance company dealings and scheduling, while fellow co-owner Shane Skillin showed students commonly used equipment, including the paint booth Students gather around for a demonstration at Indian and frame machine.

Valley Vocational Center “We encourage stushop classes at Indian Valley Voca- dents to apply for internships at our tional Center. At IVVC’s Sandwich shop, so they can get real-life expecampus, first year students get a rience while still in college,” said basic knowledge of collision repair Stacy. “One of our current employand refinishing procedures. Second ees was an intern [at one time].”

Stacy and Shane also gave the year students get advanced training students interviewing tips, stressing on frame and structural repair.

On September 12, two sessions the importance of first impressions of 10–15 students gathered around and projecting professional behavwhile technicians worked on and ex- ior and attitudes. plained the latest project—the transformation of a 1962 Chevy wagon

by Victoria Antonelli, Online Editor

www.autobodynews.com

Collision Shop Expands to Middletown, Ohio

by Ed Richter, Journal-News.com

With business booming at his collision shop on Liberty-Fairfield Road, owner Mark Briscoe decided a little more than a year ago that it would be a good time to open another shop in his hometown of Middletown.

Liberty Collision Center opened its new, 10,500-square-foot facility at 3363 Cincinnati-Dayton Road on Aug. 11 and had its grand opening from 11 a.m. to 2 p.m. Oct. 14.

Briscoe believes the shop is on track to do $500,000 in business by the end of 2014. He said the other shop, which opened in 2003 is having a record year and he expects to reach his goal of $2.5 million for the year.

“We were bulging at the seams and I felt there was a need for a body shop in Middletown,” Briscoe said. “I grew up in Lemon Twp. under AK’s stacks. Middletown has always been my home.”

The new shop features state of the art equipment and two paint booths, a waiting area and an estimation bay. He said the shop can do body work and other auto work including windshields. Ron Cantrell, the company’s sales and marketing director, who worked for 18 years

as claims manager for Nationwide Insurance, said he’s working to get insurance companies to list the new location on its vendor lists.

“There’s not a lot of auto body shops here which means a good growth potential, Cantrell said. “We have great visibility and easy access.”

Briscoe, who has been in the auto body business for about 30 years, also has a family background in the business as his father also owned a body shop in Middletown.

He considered locating the new shop in Monroe and Trenton, but they were not viable. Briscoe ended up working with fellow LemonMonroe High School alumnus Paul Sivak, who developed the property and is currently building a speculation building for another business next door to the shop.

Briscoe said the average turnaround time for a repair is two days for the state of the art facility and that the shop works with local vendors for parts and other materials. At both shops, they can work on 20 vehicles at a time.

“We have room to grow and this shop has the potential to do as much as the other store,” he said.

6 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

CARSTAR Expands MSO Network in Kentucky

CARSTAR Auto Body Repair Experts announced on October 8 that CARSTAR Hall’s Collision Center has joined North America’s largest collision repair MSO network, expanding its presence in Kentucky.

CARSTAR Hall’s Collision Center is located at 3947 Bardstown Rd. in Louisville, KY, and is owned by Harold Hall. Hall, who has been in business since 1967 and at his current location since 1970, joined CARSTAR for the “knowledge, training, and expertise” that the company can offer a shop wanting to grow. The shop is managed

by Hall’s son, David.

“My father met another CARSTAR owner who seemed happy with his business,” said David Hall.

“At that point we made contact with CARSTAR, and went from there. We needed knowledge, and didn’t want to move forward alone.”

CARSTAR Hall’s Collision Center has a 35,000 square foot building, which is equipped with three downdraft paint booths and five frame racks, along with an in-house towing service.

The shop is also up-to-date with photographic and imaging software and computer estimating software.

ABRA Helped Raise $100K for People with Disabilities

Courage Kenny Foundation and ABRA Auto Body and Glass are proud to announce they raised more than $100,000 to support people with disabilities.

Both organizations partner annually to improve the lives of those with disabilities in Minnesota and western Wisconsin through a golf fundraiser supporting Courage Kenny Rehabilitation Institute’s sports and recreation department.

More than 100 golfers played at the renowned Hazeltine National Golf Course in Chaska, MN on September 8. The annual charity event helps supports Courage Kenny sports and recreation programs for people with disabilities.

“We are proud of our longtime support of Courage Kenny Foundation,” said Duane Rouse, president and chief executive officer of ABRA. “It is rewarding to see the results of our contribution and efforts reflected in the smiles and accomplishments of Courage Kenny clients.”

The institute’s sports and recreation department offers leisure and competitive athletic endeavors for people with disabilities.

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 7

Ohio University Improves Costs in Fleet Utilization

Fleet utilization metrics are the cornerstone of a new Ohio Universitybased initiative to increase vehicle sharing and dramatically reduce costs for the university. Nearly every facet of managing the 450-vehicle fleet is expected to be enhanced using the comprehensive Web-based fleet management information system, FleetCommander. The announcement was made on Sept. 17 by FleetCommander creator Agile Access Control, Inc. According to university officials, Ohio University (OU) is required by the Ohio Department of Administrative Services (DAS) to report on its fleet utilization in order to identify opportunities to save money. This initiative will streamline its fleet management operations and provide clear visibility of fleet costs. OU’s short-term goals for managing its fleet with FleetCommander are to: ● Automatically capture accurate fleet utilization data; ● Present real-time utilization data in the form of fleet dashboards and reports to enable fleet managers and business analysts to understand vehicle use; ● Automatically generate vehicle use charges and produce billing

files bound for the university’s accounting systems; and ● Improve efficiency of its maintenance processes and control maintenance costs.

In an effort to achieve their goals, OU will be equipping four university vehicles with Agile’s FleetShare keys-in-the-vehicle dispatch technology as well as collecting odometer values and other trip data with Agile’s Utilization and Diagnostic Chips (UDCs). The technologies reduce the occurrence of human error in the data collection process while providing data for reports instantaneously. No duplicate data entry is required.

Agile FleetShare facilitates car sharing by enabling drivers to access keys via a secure ID card scanned at the windshield. No fleet staff is needed to dispatch the vehicles, and trip statistics are automatically collected. Fleet drivers reserve vehicles online at their convenience via FleetCommander. Vehicles can be parked geographically where they are needed to further improve service to fleet drivers and encourage car sharing.

www.autobodynews.com

Ken Borth Auto in Iowa Has New Owner

Dale Kabrick, who has served as the body shop manager at Ken Borth Auto Plaza in Iowa for the past seven years, has assumed ownership of the body shop and service departments, according to reports by Randy M. Cauthron, spencerdailyreporter.com.

Kabrick took ownership of the collision, repair and service operation in south Spencer on Oct. 1. Previous owner Ken Borth will continue to run the car dealership and rental service.

From collision and auto body work, to general mechanical service, Kabrick said he and his staff can service all cars from the newest models, to foreign and domestic – including European vehicles, according to Cauthron. Tyne, Kabrick’s wife, has a full-time job in the OB unit at Spencer Hospital, but plans to help with business operations.

Kabrick studied auto collision at Northwest Iowa Community College, and worked as a mechanic for three years prior to his position at Ken Borth Auto Plaza. Reports by Cauthron state that the company has a website in the works – kbautobody.com – where customers can go to review a complete list of services and schedule appointments.

Iowa Auto Body Shop Owner Suspected of Homicide

The owner of an auto repair shop in Waterloo, Iowa is a suspect in a recent homicide case. Anthony Tronca, owner of AJT Auto Repair, was arrested on September 16 and is currently being held at Black Hawk County Jail on drug and weapons charges.

Lt. Michael McNamee of the Waterloo Police Department said Tronca is a suspect in the homicide but has not been officially charged.

On Sept. 9, 44-year-old Ronald Dean Randall of Waterloo was reported missing. Waterloo Police searched a wooded area south of Waterloo off highway 218 and located a body believed to be Randall’s. An autopsy report determined that the death was a homicide.

Tronca’s girlfriend, Jessica Ogden, was arrested on Sept. 15 and later released on bond.

Anyone with information concerning this investigation is encouraged to call the Waterloo Police Department at 319-291-4340 or Crime Stoppers at 855-300-8477.

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8 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

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New Top End Cadillac to be Built in Detroit in 2015

Cadillac announced it will elevate its growing portfolio with a new, top-end, high-technology car. The as-yet unnamed Cadillac will go into production in the fourth quarter of 2015 at the Detroit-Hamtramck assembly plant.

The addition of this new Cadillac is part of a previously announced $384 million investment in the facility on Detroit’s east side. Tools and equipment unique to the Cadillac model were installed recently.

“The objective for this upcoming model is to lift the Cadillac range by entering the elite class of top-level luxury cars,” said Cadillac President Johan de Nysschen. “Currently in development, this new rear wheel drive-oriented sedan uses completely new, custom-designed materials on a unique vehicle architecture.

“In addition to new technology in the car itself, we are instituting innovative manufacturing techniques to assemble it with the precision deserving of a luxury make.”

Positioned above today’s CTS and XTS product lines, the new topof-the-line Cadillac adds to rather than replaces any model in the portfolio. The model name will be announced soon. It will make its

public debut in the first half of next year.

Michigan Gov. Rick Snyder said, “Michigan takes great pride in being recognized as the automotive capital of the world, GM’s choice to build its Cadillac flagship sedan at Detroit Hamtramck is a testament to the spirit, resolve and talented workers residing in our communities and state, and demonstrates the high quality of what ‘Made in Michigan’ means. And it’s another sign of the amazing comeback underway that’s building a strong foundation and bright future for all Michiganders.”

Four of seven Cadillac models – the ELR at Detroit-Hamtramck and the CTS sedan and ATS sedan and Coupe are built at Lansing Grand River – are assembled in Michigan.

“This is another testament to the power of collective bargaining and what can be achieved when we all work together,” said UAW Vice President Cindy Estrada, who leads the union’s GM Department.

“Our members work hard and take great pride in creating quality products that drive the industry forward and make these achievements possible.”

First Amendment Rights Questioned in Kentucky

Axalta Paint Used on NASCAR Qualified Racers

Axalta Coating Systems paint was used on six of the 16 motorsports teams’ racecars that qualified for the 2014 Chase for the NASCAR® Sprint Cup in Sept.

Axalta partnered with both Hendrick Motorsports and Stewart-Haas Racing. Each race team sports Axalta’s brilliant paint colors on its racecars. The six cars and drivers include four from Hendrick Motorsports: No. 24 Jeff Gordon; No. 5 Kasey Kahne; No. 48 Jimmie Johnson; No. 88 Dale Earnhardt Jr. and from Stewart-Haas Racing: No. 4 Kevin Harvick and No. 41 Kurt Busch.

“We started the season feeling very confident that our paint could find its way to Victory Lane many times during the season,” said Wade Robinson, Axalta’s Strategic Marketing and Racing Director. “We are honored that these Axalta-sponsored teams have wins in nearly half of all the points races this year (13 of 27).

We could not be more proud. It’s been a magical year for Axalta Racing.”

Axalta Coating Systems is “The Official Finish” of Hendrick Motorsports and “The Official Finish” of Stewart-Haas Racing.

Kentucky auto body shop owner John Russell claimed his First Amendment rights were violated when Sheriff Deputies would not allow him to put up campaign signs in front of his business, Campbell County Autobody. In response, he filed a federal lawsuit in June against Campbell County officials, Kentucky Attorney General Jack Conway and Secretary of State Alison Lundergan Grimes.

In 2012, Russell permitted several candidates running for office to place political signs in front of his body shop in Cold Spring for the primary and general elections.

According to court documents, Campbell County Deputy Sheriffs removed the signs, because they were within 300 feet of a polling place located at First Baptist Church.

The Church is located across a fourlane highway from the auto body shop, which is approximately 150 feet away. Kentucky law prohibits political signs to be placed within 300 feet of a polling place.

The judge ruled in favor of Russell in Oct., and Campbell County agreed not to enforce the 300-foot-rule on private property.

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Gerber Collision & Glass Opens New Center in MI

New MI Law Allows Drivers Community Service

The Boyd Group Inc. (the “Boyd Group”) announced on Sept. 3 the opening of a new Collision & Glass Repair Center in Roseville, Michigan. The center was opened under the Collex brand name and will transition to Gerber Collision & Glass at a later date.

The repair center is approximately 25,000 square feet with 24,000 square feet of production space. This center is located in a facility that previously housed an auto dealership at a busy intersection on a well traveled four-lane street.

“We are pleased to both expand our presence in the Michigan market while also furthering our targeted growth rate of 6 to 10 percent through single store-additions,” said Tim O’Day, President and COO of the Boyd Group’s U.S. operations.

“This center will help us to reach new customers and better assist our insurance partners in the Metro Detroit area.”

The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S.

Michigan Gov. Rick Snyder has signed a law allowing drivers who owe extra “responsibility” fees for certain offenses to do 10 hours of community service instead.

The option would apply for drivers assessed $400 in fines over two years for not having mandatory auto insurance.

Drivers fined $300 over two years for operating without a valid license also could do community service.

Extra fines for the offenses went away in 2012, but some motorists still owe them for old offenses.

Snyder signed the legislation September 23. It’s sponsored by Republican Sen. Bruce Caswell of Hillsdale and supported by Secretary of State Ruth Johnson.

Also on September 23, Snyder signed bills easing county treasurers’ ability to collect delinquent hotel taxes, creating standardized licensing requirements for pharmacy technicians and continuing fees paid by hazardous waste generators.

Recent Classic Car and Motorcycle Show in Wisconsin

New MI Law Bars Tow Truck Drivers from Harrassing Drivers

The Baileys Harbor Community Association of Wisconsin hosted its annual Classic Car and Motorcycle Show from September 26-28, with most events taking place at or near Kendall Park and Town Hall, at Wisconsin 57 and County F. The car and cycle show was held on Sept. 27, along with a craft show, live music, food and drink, and more. The weekly farmer’s market occured on the following day. There was also an “organized ride” of classic cars and motorcycles through Door County, according to greenbaypressgazette.com.

IL Body Shop Sells Building

Sterling Bay Cos. added another building to its growing portfolio in the Randolph-Fulton Market neighborhood.

The Chicago-based developer paid $2.25 million for a 7,500-square-foot industrial building at 1043 W. Fulton Market St. occupied by Aberdeen Auto Body Repair, according to a report in chicagobusiness.com. The one-story building is one block west of a Sterling Bay office development that will be the future home of Google Inc.’s Chicago offices. The developer bought the industrial building from Edward Joseph McDonagh, owner of the shop.

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A new Michigan law prohibits tow truck operators from harassing drivers at the scene of a car accident or disabled vehicle.

Tow truck drivers who use aggressive, badgering or unethical business practices to solicit customers will face a $1,000 fine. Gov. Rick Snyder signed the legislation October 9.

Tow service operators won’t be punished for offering assistance as long as they leave if they’re told their services aren’t needed.

The law also prohibits local governments from requiring towing services to pay a fee for responding to disabled vehicles as a contract term between a towing service and the local government.

The legislation was sponsored

by Republican Rep. Dale Zorn of Ida.

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10 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Michigan Governor Signs Drugged Driving Laws

Michigan Gov. Rick Snyder has signed laws to target drivers under the influence of drugs after two young men were killed in a head-on collision by a repeat drugged driver.

The legislation signed Oct. 14 allows police to conduct a preliminary roadside analysis for controlled and other intoxicating substances. A conditional bond is to be placed on motorists arrested for drugged driving and the information entered into a law enforcement database.

Legislators sponsored the bills after the July 2013 deaths of Russell Ward and Koby Raymo in St. Clair County.

A woman who crossed the center line and struck their vehicle had been pulled over six times in five years for drugged driving, but officers didn’t know she had multiple offenses because they weren’t listed in the Law Enforcement Information Network.

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MI Establishing Test Town for Driverless Cars

Michigan’s Department of Transportation, the University of Michigan, and 13 companies are contributing to the $6.5 million, 30-acre testing ground, according to reports by Devin Connors, escapistmagazine.com. Michigan, home of three American major auto manufacturers, wants the facility to be within their state lines.

On the north edge of Ann Arbor’s University of Michigan flagship campus, a ghost town will be set aside for the driverless. The test town is being built by the Michigan DoT, the aforementioned university’s Mobility Transformation Center, and 13 private-sector companies, including Bosch, Econolite, Ford, General Motors, and Toyota, according to Connors.

The facility will include every day driving occurrences, like traffic lights and stop signs, and obstacles like robotic construction crews and pedestrians popping out from behind parked cars. Car-to-car communication is the main technology being tested, according to Connors.

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WI Auto Repair Shop Creates Special Military Cart for Southwest Airlines to Carry Fallen Soldiers share,” said Williams, who served eight years in the Wisconsin National Guard’s 128th Air Refueling wing for When Richard Kalashian isn’t working as a service writer at S&S Research the Air Force. “We wanted to honor in Genesee, Wisconsin, he spends the ones that fought for our freedom.”

After the cart was stripped and much of his time supporting veterans through the VFW (Veterans of Foreign sanded, Williams and Kalashian worked Wars) organization. His most recent together to come up with a design with project involved creating a special cart the help of Modern Ink. Nearly all of the materials needed for the project were donated by local businesses and the remainder came from the money Kalashian raised for the VFW. Williams said it was a team effort that included John Riley in the body shop, Chuck Gosh from C&M Auto Parts, who supplied miscellaneous parts, Jerry Kachelmeyer from Single Source who supplied paint, John Riley worked on the cart at S&S Research’s body shop Doug Kaempfer from Douto carry fallen soldiers at Milwaukee’s gies’s Pinstripes, and Ron Scheel from General Mitchell International Airport Modern Ink, who supplied the graphwith the support of the employees he ics. Kalashian’s daughter, Laura Houliworks with in the auto repair shop. han, also helped spread the word through About a year and a half ago social media.

“It kind of puts a tear in my eye,” Kalashian was waiting for a friend at said Kalashian. “They know I’m a O’Hare International Airport when he Vietnam veteran and they’ve been supnoticed a casket being unloaded from a military plane and placed on a bag- portive of me over the years and they all volunteered to help on the project.” gage cart. As a veteran himself, he Kalashian began working for said it just didn’t feel right with the grieving family watching across the Williams at S&S Research seven years tarmac. “They treated it more or less ago after retiring from a Saturn dealerlike regular baggage,” said Kalashian. ship as a service manager. Williams, “It kind of bothered me because who has owned S&S Research since when I came back from a Vietnam tour 1977, specializes in auto and collision at O’Hare field some 40 years ago I re- repair. Over the course of owning his member how unwelcome I was when I own business, Williams said he learned arrived at the airport. Kalashian re- the importance of connecting with the called how his parents brought him a community, especially during the chalsuitcase filled with clothes and he went lenging times. to the men’s room at the airport to In 2009, he found out that that change into civilian clothes.

Wisconsin Department of Transporta“That all created a flashback for me,” tion wanted to widen a 17-mile stretch said Kalashian. “I know how I felt and of Highway 83 in front of his business. here we have a fallen soldier who gave Since the highway was the main achis life and is treated like baggage.” cess to his shop, he created alternative Kalashian, who served in Vietnam directions for existing and potential from 1968-69, said he knew that somecustomers and kept them updated thing needed to be done. “I decided to about the construction process through contact Southwest Airlines and aphis website and social media to ensure proached them with the idea of using his business survived. one of their carts and redecorating it to Now five years later, he has 13 emgive honor to our fallen soldiers,” he ployees and was recognized for being said. one of the nation’s top repair facilities In September, the airline com- by Monday Morning Mechanic/Auto pany gave him the approval to go Profit Masters. ahead with the project. Bob Williams, “We’re family-owned and conKalashian’s boss and the owner of cerned about veterans and the comS&S Research, offered to lend a hand. munity,” said Williams. The shop has “I don’t feel veterans get their fare supported local veterans over the

by Stacey Phillips, Assistant Editor

12 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

years by fixing vehicles at no charge and donating money from car shows to those who are in need. Much of this is through the VFW where Kalashian organizes fundraising activities and is a service officer. Over the last year and a half Kalashian raised more than

Kalashian said that other airlines have shown interest in expanding the project but nothing is finalized.

“It means a lot to me,” said Kalashian. “I think Southwest Airlines recognized that there was a need to honor our fallen soldiers in a more re-

Southwest Airlines provided one of their baggage carts for the project

$24,000 and said whether they are on active duty or retired, 100 cent of the money goes to the veterans.

Now decorated in red, white and blue, with a painted gold eagle and red ribbon, the veteran’s cart is ready to be used by Southwest at the airport.

spectful manner. They stepped up to the plate and let me use one of their carts to transform it into a patriotic military casket cart to honor our fallen soldiers on their final homecoming.

I’m hoping other airlines will follow in Southwest’s direction.”

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Santa House Built by Ohio Shop Owner Supports Community

by Stacey Phillips, Assistant Editor

Santa Claus has a new home in Bryan, Ohio, thanks to a local auto body shop owner. Jim Kozumplik of Auto Styles Collision & Repair spent the last few months building a Santa house at his body shop, to show his support of the community and expand his customer base.

The business owner recently completed the Williams County Leadership Program offered by the Bryan Area Chamber of Commerce and the participants needed to decide on a class project.

Kozumplik, who has lived in the Bryan area for 40 years, said the town has always had the same Santa house and he suggested that the group build a new one.

After purchasing the basic shell and the necessary materials with funds donated by the surrounding community, including the Kiwanis and Rotary clubs as well as Spangler Candy, the leadership team began working on the project in June.

Every time he went to visit local community groups, he invited them to stop by and check on his progress. “I’ve had 100 people I never met before walk through my shop to look at the Santa

house,” said Kozumplik, who opened Auto Styles in 2004.

He had been working at a nearby Chrysler dealership running their auto body shop, and was approached to

The Leadership Williams County team worked on the new Santa house that will be ready in Nov. Front row (l to r), Rob Imber, Williams Cnty.

Family YMCA, Kayleigh Horton, Gabrielle Horton and Jim Kozumplik, Auto Styles and Collision Repair. Back row, (l to r), Dan Yahraus, executive director of Bryan Area Chamber of Commerce, Tim Martin, Current Office Solutions, Tyson Horton, Williams County Public Library, Isaiah Horton, Bruce Deardorff, Parkview Physicians Group, Jennie Koch, First Federal Bank and Jeff Mumma, First Federal Bank. (Staff photo

by Abby Welsh)

open his own business. Four years after running it with a partner, Kozumplik realized it wasn’t a good fit and they went their separate ways. “Most technicians don’t realize what it entails until they start. You have to be mentally ready,” he said. “It’s not just working on cars all day. There’s so much more.”

Auto Styles is part of State Farm’s Direct Repair Program (DRP). “I can’t see how shops can run without being a DRP,” he said. “What I do is go to local agents, set up a personal relationship with them and they give me customers on a daily basis. Being that we’re in a small, rural area, it’s essential.” Currently, Kozumplik said 95 percent of his business is through insurance but that can change from month to month.

The business owner said he does not use aftermarket parts for his repairs.

Instead, he purchases parts from Yark Automotive Group and Brown Automotive. Both Toledo-based businesses are part of the Conquest program, which offers collision-related OEM parts to independent auto body shops at aftermarket prices.

When an insurance adjuster suggests that Kozumplik uses aftermarket

parts, let’s say for a new bumper, he said, “I won’t do that. I’ll buy a new bumper at the same price so the customer is getting exactly what the manufacturer put on the vehicle.”

Running a mechanic shop on site as well as his auto body shop has allowed Kozumplik to diversify his business. “I double my customers and can do everything in-house,” he said. “You have to be able to diversity your income stream to make it in a small town like this.”

Working in a county of approximately 30,000 people, Kozumplik said he tried advertising on the radio and in newspapers but he found what works best to drive business is serious public relations and building personal relationships. When his business got hit with the recession, like others across the nation, he found that getting his name out in the community and building their trust, has made a big difference over the years.

This includes his volunteer efforts building a bathroom for the country library, and supporting car shows and festivals in Bryan. “Being in a small town, it’s hard to run a business,” said Kozumplik. “The more you can do within the community you’ll be further ahead.”

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Social Media for Shops

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

Body Shops are Tapping into the Persuasive Power of Video with Ed Attanasio

In a world where we are constantly bombarded by texts, tweets, status updates, and emails, it’s no surprise that many people read fewer books and seem to have some form of ADD. A young person recently told me with pride that he hasn’t read a book since high school.

“I like pictures,” he said.

So, on a planet where almost everyone has a short attention span, how do we communicate effectively with the masses? The answer for some is through video—short, sweet and to the point. Several body shops have experienced great success by working with the same video production/marketing company and the videos they’re producing are creating a buzz throughout the collision industry nationwide.

Absolute Perfection Media (AP Media) in Sykesville, MD, is the company producing these attention-getting videos for body shops. They’re the hottest new video production company serving the collision industry and shops are clamoring to work with them. President Lee Emmons is now working with more and more shops owners who have seen his past productions for Mark’s Body Shop in Baltimore City, MD, and K & M Collision in Hickory, NC. The appeal stems from their direct, no-nonsense approach. Emmons has learned the collision industry along the way, he said, and now he’s known as the “body shop video guy.”

“The power of video and YouTube has become apparent and now collision shops want to tell their stories using this format,” Emmons said. “These shops are willing to take on the insurance companies and this is the way they’re doing it. We’re also producing videos to educate their customers about things like certifications and the use of OE parts.

These shops have learned that these videos are highly effective and very affordable and we can turn them out rather quickly. Once a shop does a few of these videos and sees the response, they want to do more. I’m traveling to K & M next week to produce a series of videos about their manufacturers’ OE certifications.

Some of the videos I’ve produced for body shops have gone viral and gained a lot of national attention, so we’re getting new collision clients all the time.”

The Vice President of Operations at K & M Collision, Michael Bradshaw, has produced a series of videos with AP Media and posts them all on his YouTube Channel.

“We have approximately 10 on there right now and maybe five more in production. We take an educational

some great feedback about them from our customers,” Bradshaw said. “Insurance adjustors also tend to see them too!”

Mark Schaech, Jr., is the secondgeneration owner of Mark’s Body Shop in Baltimore City, MD. He started working with Emmons at AP Media

Lee Emmons of AP Media shooting a video for K & M Collision in Hickory, NC, featuring their receptionist, Caitlin Adams

approach to many of the consumer-related issues in this industry, including titles such as, Has Your Car Been Repaired Safely (Watch this case and stay safe after an accident)?; Do You Qualify for Diminished Value? (The Insurance Company May Owe you Money); An Epidemic of Unsafe Collision Repairs; Post Repair Inspections; What is Steering?; Who Guarantees Repairs?; and An Open Letter to the North Carolina Attorney General.

Short videos with a succinct message have proven to be highly effective, Bradshaw explained, although in some situations longer, in-depth videos also work well.

“We were doing longer videos at first, mostly 4–6 minutes in length, but now we’re trimming them down to two minutes and our most recent ones are coming in at 90 seconds. When we’re dealing with certain subjects, the longer videos work just fine, but we also produce shorter ones to convey the message quickly and present the topic in a way that the viewer can absorb easily.”

If you’re getting your car fixed

by K & M Collision, you’ve probably seen one or more of the shop’s videos.

“We loop all of them together and show them on a monitor in our reception area at the shop and we’ve gotten

14 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

several years ago.

“We have now produced at least five videos with AP Media and they’re being seen by shops all over the country,” Schaech explained. “We let shops use them, as long as they give us an outbound link. These other owners are realizing that these short videos are effective, because they can easily convey the information that we want to communicate, because this is a very complex industry and the average person doesn’t really know what’s going on.”

Schaech, 41, took over the business from his father in 2000 and back then they had six DRPS. But, today they have none and some of their videos document why.

“The first one we did with AP Media was about a post repair inspection video and it had immediate impact,” Schaech said. “A Mazda had been repaired by another shop under an See Power of Video, Page 16

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Texas Company Sued by MN Attorney General for Selling Extended Auto Warranties

by Jennifer Bjorhus

MN Attorney General Lori Swanson is suing a Texas auto warranty company for deceptive tactics, saying it’s violating its promise of a full refund within 30 days.

The lawsuit is part of a broader investigation into extended auto warranty practices, Swanson said.

The state is seeking unspecified civil penalties, and restitution for affected customers of Enterprise Financial Group Inc. of Irving, TX. The company has sold more than 3,700 extended auto warranties to Minnesota customers since 2009, according to the state’s lawsuit filed Sept. 24 in Hennepin County District Court. The warranties, also called Continued from Page 14

Power of Video

insurance company’s DRP and it was completely hacked and butchered. It was a death trap and it eventually got totaled and the driver got paid off. Our video told the story and showed the evidence clearly, and that was why it worked so well. Since coming out, the Maryland Attorney General and the In-

service contracts, typically cost between $1,600 and $2,600.

Auto warranty companies have been a perennial source of trouble for consumers, from annoying robocalls and deceptive warranties to companies collapsing and leaving policyholders on the hook, according to Bjorhus.. In an interview, Swanson said she thinks the improving economy is creating an opening for bad sales practices. “These companies really seem to be on the uptick here,” she said.

A bulletin her office issued Sept.

24 cautions Minnesotans about high pressure sales tactics and urges them to vet companies and contracts before signing up. Scout for prevalent loopholes, it says.

surance Commissioner has seen the video and body shops show it to their customers all the time. We get great feedback about it and it’s also helping us to get higher rankings on Google.”

Currently, AP Media is producing a series of four automotive certification videos for Mark’s Body Shop.

“K & M has done a few OE certification videos and they’re powerful, to say the least, so we’re doing the same,” Schaech said. “They did a

The warranty pitches are familiar to many Minnesotans. They come by official-looking postcards or phone calls: the warranty on your vehicle is running out, buy a new extended warranty from us. People may think they are getting bumper-to-bumper coverage when they are not.

Enterprise Financial Group did not return several messages seeking comment. Its website says it provides consumer and vehicle protection programs for dealers, financial institutions, insurance companies and manufacturers.

According to the lawsuit, Enterprise uses other marketing companies for sales such as Precise Auto Protection Inc. and Auto Processing Center.

The warranties go by a range of

Porsche certification video and now they’re on top of all the search rankings as a result. We use video to inform and educate our customers, but enhanced SEO is also a big part of it.

Years ago, we spent a lot of money on cable advertising and the response was weak, but these videos cost us less and they get us more response.

We’ll be making more all the time, because we can new see they pay for themselves in the end.”

names such as TechChoice New Ultimate Coverage and Dent Zone Auto Body Guard PDR Contract and Vurge Full Throttle Coverage. They are different from the warranties that come with a new car, which are backed by manufacturers such as Toyota or Ford and typically cover a much broader range of problems.

Enterprise informs customers they can cancel the contracts within 30 days of purchase for a full refund if no claims have been paid. However, the company makes it difficult for people to cancel with confusing instructions and runaround, the lawsuit said. The full story is available at: http://www.startribune.com/local/ 276990761.html

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Midwest Events

Record Numbers Attend Pro Paint's 7th Annual Trade Show with Chasidy Rae Sisk

Pro Paint, the largest PPG Platinum Distributor in the Midwest, held their 7th Annual Trade Show on Tuesday, August 12 at the Orchard Banquet Hall and Restaurant in Baldwin, WI. The largest trade show in the region, the event offered a variety of vendors demonstrating their products, six educational seminars, and a special guest appearance by NHRA’s John Force.

Dayna Hennessy, co-owner and event planner for Pro Paint, notes “everything went as planned and exactly as we’d hoped. It was one of those perfect events; we could not ask for anything better.”

Hennessy was excited to see all of Pro Paint’s hard work come to fruition so successfully. This year’s event attracted a record number of industry professionals, class participants and vendors from various segments of the industry, and attendees flew in from all over the country. Hennessy states, “All of the seminars were well-

attended, and people seemed to enjoy the information that was presented and their ability to ask questions specific to their individual situations which is always more beneficial. Attendees were even able to use credits from the seminars to get re-certified.”

The educational portion of the event began at 10AM with PPG’s sixhour presentation on “Envirobase High Performance Waterborne Recertification,” during which attendees were updated on new products and techniques. Participants in this course were able to move up to the next level of PPG Certified Technician status.

From noon until 2PM, attendees were able to choose from “Collision Shop Best Practices” presented by Darrell Amberson, Chairman of the Automotive Service Association (ASA), and a two-part seminar which covered “Proper Gun Set Up and Care” with Michelle Striggow of Graco, and “Pre-Treatment Premier” presented by

Doug Van Duyne, a member of the Board of Directors of CCAI-TC. A third course, “Hands On Introduction to House of Kolor Shimrin2”

by Nick Dahl, also began at noon and ran for four hours, and during this seminar, attendees were encouraged to bring their gun and respirator as they covered products and processes, undercoats, karrier bases, and effect pacs. From 2PM through 4PM, a seminar focused on “Improving Transfer Efficiency and Reducing VOC Emissions Along with the Virtual Paint System” was held by the Minnesota Technical Assistance Program (MnTAP) with Paul Pagel as presenter and Jeremiah Treloar of the Iowa Waste Reduction Center. At 3PM, PPG led a one-hour seminar on “Adjustrite Estimating,” a web-based Class A truck estimating program that is used and regarded by insurance companies.

The trade show, which was open from 4-9PM, featured representatives

from over 100 product lines, and attendees enjoyed a minimum 10% discount on any purchases made at this buying trade show. Participating vendors included 3M, AASP, American Tape, C’Aire, Dynabrade, House of Kolor, Innovative Tools, Inver Grove Honda & Toyota, Kadingers, Luther Auto Group, MADA, Malco, Mirka Auto Refinish Solutions, Norton, Pliogrip, PPG, Presta, Reading Technologies, SATA, SEM, Stericycle Inc., TG Products Inc., Transtar, UPOL, USC, WACTAL, Walcom USA, Wisconsin Parts Advantage, Wizards, Zorn, and others.

The vendors spent a lot of time with customers and future customers, answering questions and demonstrating their products. Hennessy states, “Our main vendors set up extensive displays and had six to twelve representatives manning their booths. It’s flattering that our vendors feel the Pro See Record Numbers, Page 38

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Media and Publicity for Shops

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

Gas Monkey Garage and Dodge Recruit Mötley Crüe to Rock Dallas with Ed Attanasio

Richard Rawlings loves fast cars, pretty women and having a good time all the time, so it was a no-brainer when the Fast N’ Loud star opened his own bar about a year ago, followed by the purchase of a concert venue in October.

The Gas Monkey Garage brand is spreading throughout the country and now, Rawlings has headquarters where he can combine food, music, libations and cars.

In conjunction with Rawlings and Dodge, Charger, Challenger and Viper owners are about to get the show of a lifetime in Dallas on Nov. 1. The dealers will convene at Gas Monkey Live to attend a concert featuring Mötley Crüe, while dining on Gas Monkey Burgers, Bock Battered Chick Fried Steak, 3-Cheese Truffled Mac and Red Chile Grits. It’s a oneof-a-kind highly exclusive event open to Dodge owners looking to have an amazing time while showing off their vehicles to fellow gear-heads.

Head of Dodge Marketing & Communications, Mark Malmstead, is excited about the upcoming concert and the chance to partner with Rawlings and Mötley Crüe for this unprecedented event.

what’s out there and he has an edge.

As we sat down with him and got to know him better, we decided to do more with Richard. So, he appeared for us at the Woodward Dream Cruise in metro Detroit recently and everyone went crazy.”

Mötley Crüe will be performing at a Dodge owner-only event which is part concert and part car show on Gas Monkey Live on Nov. 1 in Dallas

Rawlings and his show couldn’t be any hotter. Discovery Channel currently airs Fast N’ Loud in 80 countries worldwide. The reality TV star has also opened another Gas Monkey Bar N’ Grill in the international terminal of Dallas/ Fort Worth Airport. If the Gas Monkey restaurants continue to do well, Rawlings says he wants to open “15 or 20 more.” He and his team are currently scouting for location No. 3, which will likely be out of

The Gas Garage Bar & Grill will be THE place to be for Dodge Challenger, Charger and Viper owners who can get themselves and their vehicles to Dallas for the concert and car show, which also celebrates Dodge’s 100th anniversary

“We’re big fans of Fast N’ Loud and we met with Richard Rawlings and The Discovery Channel at the SEMA show last year and started discussing the idea of working together.

We talked about an in-show placement, which has yet to air and Richard has done some dealer commercials for us. The relationship has just continued to evolve from there. We love the way Richard Rawlings operates, because his show is a little different than

the area, but still in Texas.

How did the band, the man and the brand all come together for this one-of-a-kind event?

“Dodge is currently sponsoring Mötley Crüe’s Farewell Tour,” Malmstead said. “Last month, Richard purchased Gas Monkey Live, a music venue that was formerly owned by country star Toby Keith. So, Richard asked us, ‘Can you get Mötley Crüe to play at my new place?’ He was pretty insis-

18 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

tent, so Tim Kuniskis (Dodge and SRT brand CEO) made it happen, basically to get Rawlings to stop asking.”

Dodge was pleasantly surprised when it all came together, Malmstead said. “If we can get Mötley Crüe to play at a bar, which they normally don’t do and celebrate our 100th anniversary with a big owner party at Gas Monkey Live, we thought wow. It started out as a crazy idea and now it’s happening. The band was a little reluctant at first and they had to move a few dates around, but then they finally said yes.”

Cars, cars, cars will be an integral part of the evening and many of them will get as much attention as Mötley Crüe, according to Malmstead. “We’re hoping for 2,000 people and 1,000 cars, both vintage and late model Dodge Challengers, Chargers and Vipers. People can get thrill rides in a Dodge Viper drift car and a Dodge Challenger SRT Hellcat that night as well. We’re going

to provide show parking that night, because the event is foremost a car show.

You must own one of these vehicles to attend and you have to send in a photo of it, but the event is free for owners.”

Mötley Crüe has been rocking the world for 33 years, and is still going strong. Rock stars Vince Neal, Tommy Lee, Micki Sixx and Mick Mars are all car crazy. Earlier this year the video for Mötley Crüe’s classic “Kickstart My Heart” was re-released with new Dodge scenes added.

The video for country music star’s Justin Moore’s version of the ballad “Home Sweet Home” (from the Nashville Outlaws: A Tribute to Mötley Crüe album) also showcases a 2015 Dodge Challenger Scat Pack parked outside the club.

For Dodge Challenger, Charger and Viper owners who want more information about the event, visit: www.dodgerocksgasmonkey.com.

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Lean Operations

Lean Implementation Strategies with David Luehr

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry.

David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

One of the biggest complaints I hear from shops is that it is so hard to get people to change their habits and conform to a new way of doing things.

Unfortunately, failing to implement a permanent change initiative has become the norm at most collision repair shops these days. Some of this resist-

it becomes to the staff. Sad, but so true!

There are many reasons that people are resistant to change, but I am surprised at how often it is the owner or manager himself that is the real problem! The art of communicating and understanding what make your

ance we bring on ourselves by what I like to call the “Flavor of the Month.”

I am sure most of you can relate to this scenario when the boss returns from NACE or some great seminar and all of a sudden he wants to fix everything overnight! These changes rarely take permanent hold in the organization and the more changes management tries to implement, the bigger the joke

people tick are of utmost importance these days. The old “iron-fisted” management style of yester-year rarely works these days.

How are you going to get your staff to buy-into change initiatives and consistently perform the vital steps required with new processes such as Blueprinting, and other lean concepts?

Many great books have been written

“One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform”

20 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

on the subject of change, and I recommend you read them and learn as much as you can to better understand the behaviors and intrinsic values of you and your team. In addition to you doing some studies of your own, I hope you will find these 3 tips helpful to your change efforts.

Convenience One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform. Call them lazy, call them whatever you want, but the reality of it is that if you give someone a task that is critical to success and the task is too difficult, it is human nature that it likely won’t get done consistently if at all. Let me give you an example. Let’s say that at your body shop, you have discovered that checking the re-

placement parts for correctness (mirror matching) is CRITICAL to your success. So if you remove the old parts from the car and throw them into a big messy pile in the corner, do you really think the parts guy is going to dig through that heap to find the parts he needs to mirror match vs. the new replacements? Probably not going to happen, right? You must make critical

Would you expect your parts person to dig through this mess to perform a mirror match?

to success tasks as easy as you possibly can if you want them to get done.

Convenience also means keeping

tools, information, and anything else that would be needed to perform a critical task close and easily accessible. Things not getting done are often not a work ethic problem as much as it is a spatial or procedural problem.

Space If you were trying to shed a few

pounds and decided that you need to quit eating donuts, do you think it would be better to have the box of

donuts that your rental car provider just gifted sitting on your desk, or would it be better to place the delicious box of devilish delight as far away as possible? My point is to set up your shop space to help drive the vital behaviors to succeed. A classic example of this is when it comes to Blueprinting. One of the vital behav-

iors of Blueprinting, in my opinion, is to have your estimating computer out with you at the damaged car. Can this happen at your shop, or are your estimators still writing everything down on a piece of paper and then walking this back to their office to enter a questionably accurate supplement into the estimating system? If this isn’t bad enough, I still see many shops that let the technician write the supplement on a piece of paper and then put it on the estimator’s desk to key in. What kind of behavior does this spatial arrangement encourage? Think about it!

Make it Unavoidable Make it difficult for people to do the wrong thing. Can you think of any tasks critical or otherwise that are being successfully performed at your shop consistently? What is different about those tasks that you can learn from and apply to your new initiatives and critical tasks? The act of moving a vehicle into the technician’s stall makes it pretty unavoidable that it will get seen and worked on by the technician. Making a task unavoidable is quite often a visual thing, and something that has to get done before it can go to the next step. Consider the use

of visual quality control in between departments to eliminate defects, and make it hard to screw up!

Outcomes • Recommended reading o Leading Change – Kotter o Influencer – Patterson, Grenny, Maxfield, McMillan, Switzer • Make critical tasks convenient o Tasks that specifically lead to your company’s success like Blueprint steps, parts mirror matching, customer communication, etc. must be made to be EASY! • Setup office and shop spaces to influence vital behaviors o Is communication a problem?

Consider how your office is set up. o How far do people have to walk to get parts, information, etc?

• Make critical tasks unavoidable o Think visual o Make it hard for people to screw up!

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Historical Snapshot

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988.

He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

DRPs 20 years ago, Early CCRE, ADP Revises Labor Times with John Yoswick

29 years ago in the collision repair industry (November 1994) Recently I read an article that was critical of industry leaders who had not taken a stand against DRPs. It brought to mind a discussion I once had with (a member) who said there are things associations can do that make some members happy, but that don’t mean anything. He called it “feel good stuff.”

For association leaders to denounce all DRPs when half or more of their membership participate in direct repair programs would be nothing more than “feel good stuff.” It feels good to those who are not DRP shops, but what about those member shops who chose to go DRP? It’s very easy to criticize associations that have a neutral position on DRPs, but what would happen if they came out against them? The best any association can do is to rally against the abuses where they exist; to support legislation that protects a consumer’s right

to choose the repair facility; and to do what it can to advise its members on how to determine if DRPs are a wise business decision for them.

There are a number of individuals, some of them leaders, who continue to yell about DRPs without offering any real solutions. But regardless of what they have said, it’s the collision repair professionals who have voted by making the business decision whether to participate in these programs.

All the yelling in the world won’t eliminate DRPs. Those of you who can’t accept that reality can keep yelling, or your can roll up your sleeves and go to work on the 65 percent of business that will never be DRP. Learn how to better market your business and sell collision repairs.

Bury the DRP bogeyman and get to John Loftus

work. It’s in your best interest.

—From an editorial by John Loftus, then the executive director of the Society of Collision Repair Specialists (SCRS), published in Collision Expert.

Loftus retired from SCRS in 2000.

15 years ago in the collision repair industry (November 1999) Mike Melfi said the Coalition for Collision Repair Equality (CCRE) was founded about three years ago as an organization to help like-minded shops owners around the country “take back control” of their businesses and reduce insurer influence over the industry. It was incorporated as a for-profit company so that it would never have to divulge a list of its members (which the organization refers to as “sponsors” or “clients”). About 80 people – including about a dozen attorneys – attended the group’s recent meeting in Phoenix.

“These attorneys are just now realizing that there’s money to be made in

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property damage litigation,” said Ann Spink, a Louisiana shop owner and vice president of CCRE. “We believe that legislation and education is part of the answer but litigation is the bottom line.

The reason CCRE exists is to try to put together the documentation and the expert witnesses to help these attorneys understand how to litigate for us. And because they’re class action attorneys, we don’t have to pay them, just help educate them.”

Shop owner Melfi told CCRE participants he had predicted the first nonOEM parts lawsuit “victory” would take two years. “It took three years,” he admitted. “But now I have another prediction. If steering continues, one day on the 6 o’clock news, you’re going to see an executive of an insurance company in handcuffs being put in a federal marshal’s car being charged with federal racketeering.”

– As reported in Parts & People.

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Melfi referred to was the $1.1 billion judgment against State Farm in 1999, which the Illinois Supreme Court overturned in 2005. A class action lawsuit filed in Illinois earlier this year alleges that seven of the Top 10 insurers violate federal racketeering laws by illegally conspiring to use their direct repair programs and other means to enforce “an artificial market value for collision repairs.”

cent or more. Refinish times for 20002004 Ford Taurus hood, for example, dropped from 3.9 on the September ADP CD to 3.4 on the October CD. Times for a 1999-2004 Pontiac Grand Am fender dropped from 2.4 to 1.9, and the front door time for a 1999-2004 Chevy Cavalier dropped from 3.1 to 2.8.

Although some have looked for some sort of intent behind the widespread reductions, ADP, while avoiding using the term “mistake,” maintains that the problem was an “operational issue,” not an attempt to shave labor times.

“Some of our clients have experienced an operational issue regarding refinish labor on hoods, doors, fenders, roofs, decklid/tailgates and back doors,” Peggy Adams, operations manager for client services for ADP, wrote in an email response to questions about the October CD. “All new estimates created with the November CD reflect the updated refinish labor. We apologize to our clients for any inconvenience we may have caused.”

The issue has resulted in a flurry of email activity between shops and industry organizations since it came to light in early November. Part of the concern was fueled by the fact that various ADP personnel were giving conflicting - or,

10 years ago in the collision repair industry (November 2004) A widespread and significant drop in ADP refinish labor times discovered in recent weeks will be corrected in ADP’s November CD update release, which the company says has been sent to ADP customers.

“The operational issues with the refinish times in the October CD are revised in the November CD,” Scott Jenkins, senior director of “Estimating Solutions” for ADP said. “The November CD is consistent with the September CD. If the user did not load the October CD, they were not impacted. We are instructing our customers to load the November CD immediately upon receipt.”

The October CD included many decreased refinish labor times of 10 per-

at a minimum, ambiguous - responses to questions about the labor time changes. An ADP tech support employee, for example, told one ADP shop customer in the Pacific Northwest that the revised times were based on “new time studies” ADP had done.

– As reported in Autobody News.

Prior to shops accessing the estimating database information over the Internet, the system providers sent monthly updates to the data to shops on compact discs. ADP’s Claims Services Group (including its estimating system) was acquired by Audatex (now AudaExplore) in 2006.

5 years ago in the collision repair industry (November 2009) In the transcript of a small claims appeal trial involving two of customers of G & C Auto Body of Santa Rosa, Calif., California Superior Court Judge James Bertoli took State Farm to task for its rate survey process and arguments regarding reasonable repair costs.

Shop owner Gene Crozat’s customers had won after filing small claims court cases against State Farm insureds when the insurer refused to pay all of G & C’s charges. The insurer appealed both cases, and the court heard the two

appeals together over two days.

Bertoli said State Farm could use whatever method it specified in the insurance contract to determine a reasonable price in first-party claims, even if they determined that price, “by reading chicken entrails, and consulting with the three witches from MacBeth (which is) just about as accurate as the survey itself is. I think that survey from a statistical standpoint would get a first-year college student a flunking grade.”

But in a third-party case, the judge said, a reasonable charge “implies a range of charges” and “no particular charge can be said to be the only reasonable charge.” He said State Farm did not try to establish that G & C’s rate was unreasonable, and it appears to fall within a reasonable range of prices.

“Quite frankly with regard to the third-party claims, this Court does not believe they should have been litigated,” Bertoli said in finding for Crozat’s customers. “I think the answer is clear, and I quite frankly see it as an effort on behalf of the insurer to try and suppress the price charged by someone outside of their range.”

– As reported in CRASH Network (www.CrashNetwork.com), November 16, 2009.

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Industry Insight with John Yoswick

John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the collision industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Energy Transfer in Today’s Vehicles Makes Measuring, Multi-Point Pulling More Important Some industry observers estimate that only about 20 percent of vehicles in collision repair shops are actually being measured as part of the repair Richard Perry process. Richard Perry, who oversees training for Chief Automotive, believes that changes in vehicle materials and structure mean

that at least four times that percentage should be measured.

“If that vehicle is impacted, it should be measured,” Perry said. “We usually know what’s going to happen with the damage; we just don’t know the extent of it, where all it’s gone, how far did it travel through the vehicle. You’ve got to be able to find it to fix it. So before the repair we need to analyze what’s wrong to develop a repair plan. During repair, we need to

Richard Perry of Chief Automotive discusses the value of multiple-point pulling during a recent demonstration in the shop at Chief’s headquarters in Madison, Ind.

provide, almost half of our business is there,” Cranfill said.

Vehicle Services Group (VSG) is itself a segment of Dover Corporation, a global producer of equipment, systems and services in a variety of businesses. In addition to Chief, VSG brands include Rotary Lift and Elektron welders. It has about 1,200 employees in the U.S., Germany and China.

Its measuring, pulling and welding equipment sales each account for about

21 percent of its overall revenue, but its single biggest revenue source is the vehicle measuring data it sells directly to collision repairers and also to the estimating system providers.

Does Chief collect data on the vehicles that shops are measuring with its equipment?

“We do not collect it,” Bob Holland, VSG collision director for North America, said. “With our licensing agreement, we

Chief Automotive Sees Itself as Source of Information As Much As Equipment

If you still think of Chief Automotive as primarily a pulling equipment company, think again. Mike Cranfill, vice president of global collision and new business development for the Vehicle Services Group (which includes Chief Automotive) said changes in the company’s revenue sources reflect changes in the industry itself.

“I like to think we’re an information company, because if you take the training, the measuring equipment and the data we

26 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

measure multiple points, and monitor those during repair because as you start to make repairs, more than one point is going to move at a time. We need to monitor all those points.”

Perry said in the past, technicians might gauge the extent of the damage by checking to see if the vehicle’s doors open and close; if they did, they felt it was safe to presume the damage had not extended beyond the passenSee Energy transfer, Page 28

have the right to collect it, but we do not.”

Cranfill some companies, such as those that offer vehicle history information, may seek that information, but Chief doesn’t share it because the information tells only part of the story.

“The risk is: What does it mean?”

Cranfill said. “Even if the data shows the car measurers to factory specs, can you guarantee the repair was proper? Maybe you used heat when you’re not supposed to.”

On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Are You Marketing to Merely Survive or Are You Trying to Grow? with Thomas Franklin

By now most shop owners and managers have realized that when it comes to marketing, one size does not fit all.

Franchises and multiple shop operations that account for about 15 percent of the shops in the U.S. are in a position to approach marketing from an entirely different perspective from the independent shop owner. But 72 percent of the shops are still independent, single-location shops and many of these shops market just to keep surviving. The question then becomes, what do you mean by “grow?” Growth by cloning or opening other locations is more of an operational strategy than a marketing proposition. Real growth for an independent shop is simply about getting more vehicles in the door and enjoying more profit on every job.

Franchises and MSOs can afford to advertise just to build name recognition to try to drive business to any shop in the group. But few independents can afford to spend marketing

dollars solely on building name recognition. A marketing plan has to differentiate a shop from the competition and provide a strong reason to select that shop over all the others. A recent article in Inc. Magazine might suggest one way to do that. A software company originally called “37 Signals” changed it’s operating philosophy and changed its name to “Basecamp,” the name of a project management product that represented 87 percent of their sales and 90% of their recent growth.

This reminded me of a strategic move made by Colonel Harlan Sanders when he was operating a small chain of fast food operations with about 100 items on the menu. He was having serious trouble trying to grow so he hired a consultant named David Thomas.

The first thing Thomas did was cut the menu down to a handful of items and renamed the franchise operation, “Kentucky Fried Chicken.” From there on, the growth was phenomenal. Now ob-

viously most shops can’t eliminate any of the steps needed to restore a vehicle back to pre-accident condition, but they can always choose what they want to emphasize in their marketing. And this may be the key to convincing the buying public that this shop is the right one for them.

If you decide to try this approach to marketing, the next question is “what to emphasize?” Paint specialty shops like Maaco have already begun to capture some of the body work that independent shops rely on, but they keep paint as their central focal point.

While any shop is free to make refinishing quality their main marketing emphasis, there may be reasons to choose a different emphasis. One big advantage an independent shop has over franchises and MSOs is the very fact of their uniqueness. While these other shops may have a cookie-cutter sameness look, the independent shop owner can individuate any way he or

she chooses. I’ve seen a number of shops that emphasize the family aspect of their business. Photos of several generations of owners adorn the walls, the website and any ads. The emphasis, of course, is “we care more because for us it’s personal.”

Another key factor in marketing emphasis choice is shop location. A shop in Silicon Valley or other hightech region may thrive best with an emphasis on the technical aspects of collision repair. A contemporary focus on hybrids and exotic metal repair specialties could communicate well in an area like this. In an entirely different direction, I ran across a shop in horse country that emphasized a specialty in working on horse trailers and larger transport vehicles. In an age like ours where big box stores have become the norm, a lot of people choose to look for vendors who understand their particular niche in life.

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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 27

Continued from Page 26

Energy transfer

ger compartment. But vehicle manufacturers have strengthened both the lower and upper structures of vehicles, further reducing the impact of visible damage to the passenger compartment.

“I’ve seen some vehicles that had straight-on impacts at 50 mph, yet you can open and close the doors like factory,” Perry said. “The passenger compartment does not react they way it used to. But that energy is still going

Lee Daugherty, global data product manager for Chief Automotive, points out the type of measuring data available through the company’s LaserLock system

somewhere; something further back in the vehicle has to give to absorb that energy. So that old way of thinking, of not measuring everything, results in overlooking something. That’s why we need to measure the entire vehicle each time.”

Perry believes eight measuring points is the minimum that should be used to ensure all the damage is located, though the total number will depend on the severity of the impact.

Continued from Page 27

Trying to Grow

Choosing which of these to focus on brings us back to the question, do you want to market to just survive, or do you want to really grow?

Whatever you decide to emphasize in your marketing, to make it a growth proposition calls for an all out effort. For example, a shop located in an area where campers and large SUVs are commonplace might choose to emphasize oversize frame machines and larger spray booths able to accommodate them. To make this a growth move, the shop would have to display these capabilities more prominently with colorful photos and stories of exceptional jobs on the website and literature. But they would have to go

Start with four on the center structure of the vehicle, he suggests, then one on each of the front and rear corners of the vehicle.

When it comes to pulling, multi-

Jerry Ralston explains the final assembly processes that Chief frame equipment undergoes at the company’s Madison, Ind., headquarters

ple towers allow more precise movement, he said, given that damage can be in three directions: lateral, vertical and length-wise.

“The more hook-ups you can put on at your initial pull, the more that damage is going to come out the way it went in,” Perry said. “But you need to be monitoring it as you pull so you know you’re going in the right direction.”

Multiple pulling also reduces the amount of force used at any single point.

“If you put more combined force on a vehicle but less at each location by doing multiple simultaneous pulling with equalized pressure, you can repair a lot of things that you couldn’t before because you’re not going to rip and tear it,” he said.

“You’re not going to damage and distort it because you’re not putting as much pressure at each location.” beyond this to go out and be involved in trade shows, vehicle shows, club presentations and more. Choosing an emphasis that encompasses a lot of people opens up an entire horizon of opportunities to get out and connect with prospective customers. Not every shop owner is comfortable with this kind of glad-handing, but if the real growth is out there to be gotten, it’s worth while hiring someone with the skill to go out and get it.

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Perry shared his measuring and pulling concepts while working on an actual damaged vehicle during a recent demonstration in the shop at Chief’s headquarters in Madison, IN. Among the features of the company’s “LaserLock” measuring system he pointed out was the dual monitors that allow a technician to have both measuring information and OEM repair information readily accessible.

“The OEMs used to sit on the sidelines because who knew better about repairs than anybody else? The technician,” Perry said. “After all, he’d been doing it for 20 years, and things hadn’t changed that much. But with the many changes to vehicles today, who knows most about a vehicle now? The OEMs. They designed it. They engineered it.”

That said, Perry believes another advantage of using Chief measuring data is that the company doesn’t just use OEM build data but actually measures vehicles off the tires and in clamps just as is done in shops. That ensures the system offers more accurate, real-world measuring data, he said, because such a set-up takes into account the slight sagging the front and rear of a vehicle does when it is

up in clamps.

Perry said another key message to technicians in his training is that measuring is almost always the solution to challenging repairs.

Bryan Brown demonstrated the newest Elektron welder during a recent media tour of Chief Automotive’s headquarters. Elektron and Chief are among the brands owned by Vehicle Services Group, based in Madison, Ind.

“If you can’t figure out what the problem is, take more measurements,” Perry suggests. “You’ll find it eventually. You’re just not measuring far enough. You’re not taking enough points to identify all the damage.”

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Continued from Cover

MSO Consolidations

swered, “the answer is ‘yes.’ ” Fast forward to the present time Roberts told Autobody News, “In the last 24 months nearly $3 billion of sales volume in the collision repair industry has changed ownership, which is 10 percent of the entire industry.”

Roberts is currently the Managing Director and Automotive Services Group team leader for FOCUS Investment Banking. He said there are several reasons for this sudden acceleration, including the availability of acquisition capital and the number of MSOs looking to sell. “There are more than 44 MSOs with $20 million or more in revenues with another 110 between $10 and $20 million.”

“Consolidators are looking to get bigger and achieve more scale, which has rewards for the acquirers as well as for insurers and consumers,” said Roberts, whose company has offices in Atlanta, Los Angeles, and Washington D.C. “Large insurers have increasingly rewarded the best performing consolidators and large MSOs with more volume. Cars are repaired faster, with less hassle, and more predictable costs and quality.”

We asked Lillian Maimone, former CEO and co-founder of Marco’s Collision Centers, for her perspective on the industry. She was excited about her upcoming retirement, saying, “Marco and I have nothing to do and all day to do it, and we like it that way. It’s a wonderful sense of freedom and piece of mind.”

“Seeing the trends in the new cars and the new equipment that was Lillian Maimone necessary to repair these cars, I saw ourselves having a very difficult time competing against the consolidators. We knew it would cost my company hundreds of thousands of dollars in new equipment and training,” While running Marco’s, which was established in 1972, Maimone said her primary function was ensuring the company was ready and geared for the future. “My focus was on dealing with possible threats and opportunities,” she said.

In order to stay informed about

Vincent Romans of MSO Specialists The Romans Group on Consolidation Autobody News asked Vincent Romans, the founding partner of The Romans Group LLC, to comment on the recent MSO consolidations. Romans has over 30 years of consulting and operating experience with domestic and global enterprises. The Romans Group LLC, established in 1996, provides business, market, financial, and strategic development advisory services to the property and casualty auto physical damage insurance, automotive services, property restoration, and related supply chain segments.

Why are we seeing an increase in the number of consolidators acquiring MSOs and do you think this trend will continue? We are at the early stage of consolidation, contraction, convergence and constructive transformation in the collision repair industry. Within this industry construct, private equity has stepped up its interest in acquiring MSO consolidators. This interest is backed by unprecedented private equity and strategic buyer cash seeking investment opportunities in the MSO model which today provides strong cash flow, growth through both organic and acquisition growth and shorter term investment cycles that ultimately drive higher valuations.

How will it affect the collision repair industry? We will continue to see large multiple location operators (MLOs) be acquired by the four MSO consolidators. The still

trends in the industry, Maimone regularly attended conferences, talked to industry leaders and listened closely to what others were saying in forums such as the Mitchell webinars, for example.

“I went to Pepperdine’s business school [and used those skills in analyzing the industry.] I spent a lot of my time looking at what is happening in the industry and how it was affecting my company,” she said. Eventually she and husband Marco decided they “didn’t want to be in the game anymore.”

When employees asked why they sold, she explained, “We were the powerhouse in our area. We were the big fish in the little pond.” With the changes in the industry and larger MSOs coming in, she said they realized how increasingly difficult it would be to compete.

For example, the benefits they gained as a midsize DRP over the years were no comparison to the gains made by the national DRP programs.

She invited her employees to consider the buying opportunities with the national DRP accounts, rather than local ones. “I figured whatever percentage See MSO Consolidations, Page 33

30 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

fragmented industry will continue to contract to a more normalized number of required collision repairers throughout the United States over the next decade. Today, three collision repair segments, ≥$20M, ≥$10-20M and the franchise multiple location, MLO, operators represent 24% of the US collision repair market. I expect this market share for these three segments to grow over the next three years. Additionally, we should shortly see the first MSO with annual revenue of $1.0B. Through September YTD 2014 we have seen $650.0M in annual revenue transferred through multiple location transaction acquisitions among the four MSO consolidators.

What are the relevant issues facing the collision industry today? There are numerous trends and prevailing conditions that offer both risk and opportunity for repairers today. No one trend or prevailing condition has the impact that the confluence of these prevailing trends and conditions have. It is when one understands that these individual prevailing conditions are part of a confluence of many individual dynamic prevailing trends and conditions, that you start to realize the order of magnitude and the exponential impact they have and will continue to have on the new world order of collision repair within the broader auto physical damage ecosystem. We will continue to see how one company's transformation is an-

other's disruption, while one company's innovation is another's disintermediation.

Some of the short and long term conditions include, but are not limited to changing macro-economic influences, globalization, consolidation causing industry structural changes, telematics and the movement to an integrated electronic claims process model, accident avoidance technology associated with semi-autonomous and eventually autonomous vehicles (VEHBOTS), private equity and strategic buyers, predictive analytics, down turn in accident frequency, MSO performance contracts, hybrid claims management models, insurers embracing the MSO model, trained technician shortage, parts procurement, repair segmentation, urbanization and others too numerous to mention here.

How does an independent shop fit in the picture? Independent high performance, brand recognized shops will continue to provide solid alternatives to the large MSO consolidator model especially with insurance companies that embrace their own customized repair models and prefer to have non-MSO providers in the market or a mix of MSO consolidators and local market independents. Additionally, specialty repairers who perform any number of niche market or high value repair alternatives will have a place in the future collision repair industry.

See Vincent Romans, Page 33

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Social Media for Shops Chicago Body Shop’s Anti-Texting Campaign Catches Fire with Ed Attanasio

Admittedly, the owner of a wellknown 80-year-old body shop in Chicago was guilty of texting in his own vehicle for several years until he saw more than a few damaged cars in his shop caused by his customers’ lapses in attention while texting.

Rather than ignore what is now an national epidemic that causes 1.6 million accidents annually, Bob Gottfred, the owner of Erie-LaSalle Body Shop, decided to start his own anti-texting campaign.

Erie-LaSalle Body Shop was founded in 1934 and over the years it has become a neighborhood institution in downtown Chicago. “We’re the longest continuously owned auto body of its kind in Chicago and Illinois,” Gottfred explained. “We now have a handful of third-generation customers coming in here and it’s great to hear their stories about when their grandfather or even great grandfather brought his car here decades before. Addition-

ally, we have expanded our service area by acquiring a 30-year body shop on the southwest side of Chicago.”

Erie-LaSalle started getting involved in an antitexting campaign after creating this fire hydrant to raise money for 51 Club, an organization that raises money for families of firemen killed in the line of duty

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

Gottfred, 64, had what he described as a “marginal interest” in cars as a kid, so his path to owning a body shop wasn’t part of his life plan, he said. “I grew up working here in the shop as a teenager and to be honest, I wasn’t crazy about it. I had no intention of taking over the shop, but when I came home around Christmas time in 1975, my stepfather told me he couldn’t do it anymore. His health wasn’t very good so he said, ‘If you’re interested -- hop in” or he was going to sell it. So, in January 1976 I started running the business full-time and then eventually bought out my stepfather in 1995.”

Today, both of Gottfred’s sons work with him at the shop and eventually the business will belong to them – but not tomorrow, Gottfred said. “Jim (36) and Jay (34) could take over right now and do a great job, because they’ve learned the business and they’re ready.

They’re right at the hand-off point now and I know it would be a seamless tran-

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sition, but I’m not quite ready to retire.

I currently work on customer acquisition and foster the great relationships we have with the insurance companies and agents, so it works well right now.

Opening the new shop in a very different market has also been a challenge. I like to be the rainmaker around here and take a lot of the administrative stuff off my sons’ radar, so that they can concentrate on the most important things, such as quality and customer service.”

New proposed anti-texting laws have gained more momentum in this country, most recently led by a documentary called “From One Second to the Next,” a cautionary tale about the dangers of texting while driving. The film was funded by mobile providers AT&T, T-Mobile, Sprint and Verizon and has received major awards and accolades.

The genesis of Gottfred’s anti-texting campaign began when he decided

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Continued from Cover

Memphis Radio

try that insurance companies often attempt to take control at the accident scene, moving the damaged vehicle against the consumer’s wishes and trying to coerce the vehicle owner to agree to having the repair completed at one of their DRP shops. Although the consumer has the right to choose where their vehicle is repaired and it could easily be argued that the insurers are taking advantage of their customers, it is easier and cheaper for insurance companies when they get their way, as they often do in these situations.

When questioned about why insurers are so adamant about steering despite the possibility of being sued, Eaves noted that insurers profit greatly by this practice as the benefits to them outweigh the risk; this is the reason his pending lawsuit and other lawsuits are necessary. Fowler reminded listeners that this is a battle the collision repair industry has been fighting for 25 years, but it has come to a point where quality repair shops will go out of business if nothing is done to “rectify this travesty.”

Moving on to the topic of aftermarket and OEM parts, Fowler said that his opinion has changed. Previously, he believed it should be the customer’s choice whether or not to use aftermarket parts, but because most consumers don’t understand the differences and implications of using these parts, he now feels that it is the collision repair professional’s responsibility to educate the consumer. He reiterated that “testing proves that aftermarket parts do not always perform the same as genuine OEM parts.”

In response to the radio hosts’ question about whether “imitation parts” have been implicated as the cause of any accidents, Eaves unambiguously stated that the use of poor quality aftermarket parts has caused a multitude of accidents across the country. Unfortunately, few people are aware of this concern because these settled cases included confidentiality agreements to prevent them from becoming public knowledge.

Furthermore, as many parts, including windshields, tires and airbags, directly affect the safety of the vehicle, investment in parts is more crucial than ever. According to Eaves, YouTube features many videos on

how aftermarket parts affect vehicle safety, and documentaries are currently being filmed on this issue as well.

Eaves is not optimistic that the lawsuit will go to trial quickly, but he is prepared to fight this battle for quite some time if necessary, noting “this is bigger than just a lawsuit; it’s a campaign!” Part of this campaign includes asking Congress to support legislation to restore the proper balance of power between the insurance industry and the collision repair industry. As precedent for his request, Eaves cited the Consent Decree, a similar situation in the 1960s when insurance companies tried to dictate which parts could be used and how much they would pay for repairs. The U.S. Department of Justice sued the insurance industry, and the resulting ruling was that insurers cannot force collision repair facilities to compromise the quality of their repairs. Thus, the balance of power between these two industries was restored if not enforced. Eaves said he hopes that his current efforts will yield the same results for the modern collision repair industry.

Directing his attention to what consumers can do to aid in this battle, Fowler reminded consumers that they have the right to choose the facility that repairs their vehicle, and he encouraged them to act on this right by taking their car to whichever shop they prefer. He cautioned that it is a red flag if the insurer insists on dictating where the vehicle is repaired, and this could indicate that the insurer is engaging in other unsavory practices, such as mandating which parts are used in the repair.

Though vehicle manufacturers provide specific repair information to maintain a vehicle’s safety, Fowler said he has experienced firsthand that some insurers will demand used parts be installed, even though both he and the manufacturer warned that such a practice could compromise the vehicle’s safety. Despite insurers’ tendency to use intimidating in their interactions with both consumers and repair facilities, Fowler states, “there are shops that try to do what’s right, but they are vilified, disparaged and essentially squeezed out of business.”

Eaves agrees that it is imperative for consumers to trust the facility repairing their vehicle as their lives are being placed in the hands of these professionals, and a poor quality repair jeopardizes the safety of the con-

32 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

sumer, their family and anyone else on the highway. The importance of finding a trustworthy repairer is so great that Fowler founded www.safecars.us, a website that promises to place the consumer’s safety above all else and plans to feature member shops who have committed to this goal.

Although Fowler believes that some insurance agents would like to do the right thing for their customers, the rules are passed down from the insurance companies’ corporate offices, leaving the agents powerless to make changes. Unfortunately, the insurers are the only ones to benefit, and these practices are actually performed to the detriment of the collision repair facilities, the consumers and even lending institutions as an improperly repaired vehicle is apt to create a situation of diminished value.

When radio hosts questioned why some insurance companies have departments that deal in diminished values, Fowler notes, “they pay when they’re forced to pay, but they are never going to voluntarily do the right thing because it’s not profitable, and everything they do is profit-driven.” In fact, he warns that diminished value can occur to such an extent that the vehicle

should have been declared a total loss because it is no longer safe to be driven on the road! Luckily, diminished value is an issue that consumers are becoming increasingly aware of, and Fowler encourages anyone with doubts about the safety or integrity of a repair to get a post-repair inspection. His shop will gladly inspect repairs and provide objective assessments, as will many shops across the nation. As the show ended, Fowler encouraged consumers to stand up for their rights. Though he would like to believe that the insurers look out for their customers’ best interests, his observations indicate that they are only concerned with profits. “This war has been going on for a long time, mostly behind the consumers’ backs, but it affects everyone because if a car is unsafely repaired and out of control, it is dangerous to everyone on the highway.

The U.S. public needs to be concerned with this issue… You never know what battles you can win until you fight them. Doing nothing only ensures you will lose.”

To access to the radio broadcast, go to http://www.iaba.info/Documents/ Newsletters/Issues/2014/10%20 October/Full%20Stories/Article%207. html (link is at the bottom of the page).

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Continued from Page 30

MSO Consolidations

of claims would drop as a result of that is enough to make me know that we will be in trouble,” she said.

“My employees are better off this way,” said Maimone. “Several have been given a promotion and better opportunities. I couldn’t give them that.”

Shortly after acquiring Marco’s, Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California. With these additions as well as the 62 Sterling Collision Centers the company acquired earlier this year in April, Service King now has 191 shops in 20 states, including 18 in CA. Service King, based in Dallas and founded nearly 40 years ago, told Autobody News that, due to company policy, they weren’t able to comment further until their acquisition of Carwest was finalized.

However, Service King released the following statement: “Our recent Sterling Autobody acquisition and Marco’s Collision Centers acquisition serve as a platform for our growth in

the California market,” Chris Abraham, the CEO of Service King, said in the press release. “The addition of Car West and their 360 teammates will give us an even greater footprint in the heart of Silicon Valley. We are excited to have the team on board and look forward to delivering the ServFarzam Afshar ice King standard file photo of exceptional customer service and high quality repairs in these communities.”

“People are selling because of many different reasons,” said Farzam Afshar, CEO of VeriFacts Automotive, a well-respected training company that describes itself as the industry’s only “independent onsite quality verification service and in-shop technician assessment provider.”

One reason, Afshar said, “is that they able to get a very high rate of return on their investment. In addition, business owners increasingly need to compete with consolidators in their backyard while vehicles are becoming more complex.

See MSO Consolidations, Page 39

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

Continued from Page 30

Vincent Romans

Some of these models might include various types of repair segmentation; e.g. aluminum or other new material/technology, fleet, small hit expedited repair, paintless dent repair, cosmollision, ethnic market, and car auction repair. As MSO consolidators gain in the breadth and depth of their reach and coverage in markets around the country, insurers will look to balance their local market networks with strong performing and recognized branded independent operators. The balance of power will be normalized as long as the independent’s metrics and service offering are comparable to the MSO consolidator. Insurers also want to have local market independents and MSOs competing with the MSO consolidator so that the best peer performance is always being established in a market among all current and prospective repairers.

What is the benefit/challenge of being an MSO vs. a single-location shop when forming a relationship with insurance companies? MSO consolidators and many non-consolidator MSOs have the personnel, sales/marketing structure and budget to frequently call on insurance company corporate decision makers as well as multi-level contacts regionally. They participate on insurance company advisory or re-

view boards which brings them to the table for input, old business and new concept discussions, and collaboration on current and future business process and performance models. They develop multi-level personal relationships that help when issues need to be resolved quickly. However, if service deteriorates somewhere in the country for a larger MSO it could have negative ramifications across their national footprint or some other regional market of theirs. The MSO consolidator offer insurers broader multiple market coverage than smaller MSOs and independents. However, local market MSOs and independents can and do market that they provide that laser focus local market performance that insurers want. Many independents and local market MSOs position and market themselves as high performers relative to the MSO consolidator in their geographic niche. A strong recognized brand with top performance metrics relative to a MSO consolidator can give the independent and local market MSO a competitive edge when vying for insurer DRP business. MSO consolidators are also offering self-managed and co-managed capabilities for customized and new DRP models, quality assurance and self-audit process and procedures, call centers, and single point of contact, all of which helps reduce costs for the insurer while positioning the MSO consolidator for business that the independent operator may find more difficult to secure.

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surance companies manipulated labor go to their DRP body shops or select rates and other charges and weren’t service shops. “That’s a big part of our compensated for their work. lawsuit and one of the things we think is The Mississippi lawyer said the pure violation of the proper balance betheir body shops. lawsuit is largely based on antitrust is- tween the two industries,” said Eaves.

“We wanted to make the legislasues that surface when insurance com- “By having the same practices exposed tors aware of what the insurance companies get involved with body shops by all body shops in one litigation, the panies are doing to the consumer,” by telling them what labor rate they judge can more clearly see that this is a said Matt Parker, owner of Parker can charge, what percentages they’re pattern of practice,” said Eaves.

Auto Body in Louisiana who is part of not going to pay for, and Eaves said that in addition to the lawsuit. “The insurance industry what parts they have to put these challenges faced by shop ownshould not tell us how to repair cars. ers, the industry also has to adapt to on a car. In the 1970’s, the We’re the professionals here, not new technology. “Only the shops that labor rate was $16 and the them. We have all the liability, they mechanical rate was $15. actually get paid for what they do will don’t,” he said.

Currently, Eaves said the have the resources necessary to invest Tony Passwater, Executive Dibody shop rate across the in all of this technology,” said Eaves. rector of the Indiana Autobody Assocination is usually half of the “That’s basically what the lawsuit ation and President of AEII Consulting mechanical rate with no component is all about… making sure Services, said that what started as justification. He said this is that people who do the work and do it multi-district litigation in April with due to insurance companies right get paid for it so they can conjust five states, including Mississippi, that have artificially suptinue to provide that service to the (l to r) Joe and Karen Enneking of Enneking Body Shop in Indiana, Congressman Luke Messer and Tony Passwater, Florida, Tennessee, Indiana and Utah, pressed the rate and is a American customer.”

Executive Director of the Indiana Autobody Association in and later by Louisiana, is now part of a clear violation of the ConThe next court date is set for NoWashington D.C. much bigger action to regain control sent Decree. vember in Orlando, FL. “The allegathat he termed “The Movement.”

Another main component of the tions that are part of the multi-district three major trade associations that repHe said, as part of “The Movelawsuit is against steering. “Most states litigation being heard in Florida are not resented insurers, were in violation of ment,” shop owners representing a the Sherman Antitrust Act. An An- in the country say it is illegal for insurin line with State Farm’s mission to dozen states went to Capital Hill “…to titrust Consent Order was signed by ance companies to purposely interfere serve the needs of its customers, and discuss the growing concerns for con- these companies on October 23, 1963, in the business relationship of the cusour long, proud history of achievesumer safety, the mandating by insurrequiring that insurers must refrain tomer and the body shop,” said Eaves. ments in advancing vehicle safety,” ers to require repair shops to use from “fixing, establishing, maintainHowever, insurance companies do it said Dick Luedke, spokesperson for untested and unsafe parts on vehicles, ing or otherwise controlling the prices See Congress Support, Page 39 regularly, telling customers they have to and the intimidation tactics the insurto be paid for the appraisal of damage, ers use when a repairer refuses to do or to be charged by independent or so.” dealer franchised automotive repair “Most [members of Congress] shops for the repair of damage to auhave had their car repaired and were tomotive vehicles or for replacement very empathetic and were already con- parts or labor in connection therewith, cerned about the issue, so we were whether by coercion, boycott or invery encouraged by the response,” said timidation or by the use of flat rate or the lead attorney John Arthur Eaves, parts manuals or otherwise.”

Jr. of Eaves Law Firm in Jackson, MS. “If you look at the Consent Decree Eaves said many were still not and read it, it would look like someaware of the Robert Kennedy-era 1963 body from today wrote it because all Consent Decree and now is an excel- the things they’ve been doing since the THESE DEALERS are GENUINE lent opportunity to ask them to help 40s they are continuing to do,” said WHOLESALE PARTS SPECIALISTS. Parker. “To be honest with you, everything they’re doing is against the law.”

Parker, who has been in the MICHIGAN business for 30 years, said the Consent Decree mandates that Sunshine Toyota Toyota insurance companies are supBATTLE CREEK Grand Rapids posed to be in the business of GRAND RAPIDS 269-965-1000 insurance, “not telling us how 269-441-1262 Fax 800-354-7037 to repair cars, not writing es(l to r) Tony Passwater, Executive Director of the Indiana AuMon. - Fri. 7:30am - 6pm; timates, not telling people tobody Association; John Arthur Eaves, the lead attorney for 616-942-4658 Fax the case; and Karen and Joe Enneking from Enneking Body jody@sunshinetoyota.com where to get glass put in their Mon., Wed. 7:30am - 8pm; Shop in Indiana, during their trip to Washington D.C. www.sunshinetoyota.com car. We’re the only business in Tue., Thur., Fri. 7:30am - 6pm; enforce what is the official public pol- the world that has to try to figure out Sat. 8am - 12pm icy of the United States government. how to make a profit when we can’t www.toyotaofgrandrapids.com He said the body shops plan to visit even set our own rates.”

Washington D.C. again in November Eaves originally filed the lawsuit when congress comes back into ses- in April on behalf of more than two sion and the hope is that a bill will be dozen body shops that claimed 16 inContinued from Cover

Congress Support

introduced at that time. “The law will really be a codification of the policy of the United States that was set in 1963.”

It was that year that the U.S. Department of Justice, under the direction of Attorney General Robert Kennedy, investigated the concerns of the collision repair industry and found 265 insurance companies, and the

34 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

in the Windy City.

As part of his company’s ongoing Anti-Texting Campaign philanthropy, Gottfred decided to participate in the project. “We purchased to participate in the Great Chicago Fire a five-foot fire hydrant made out of Hydrants Project, a public art exhibition fiberglass for the project to decorate,” that celebrates the heroism of Chicago’s Gottfred explained. “We painted the firefighters. This citywide public art inwords ‘Texting & Driving, It Can Wait’ stallation features oversized replicas of on the fire hydrant and then decided to Chicago’s iconic standard fire hydrants, take the whole thing one step further. designed, painted, decorated and/or We had purchased a little Smart Car a dressed by local artists, architects, and while back and we have our logo on the even fashion and interior designers. side of it. We use it to shuttle customers These colorful sculptures are placed around or pick up parts and we love it. throughout the city in tribute to the We thought maybe we can use the work and heroism of Chicago’s beloved Smart Car and the hydrant together to firefighters. At the conclusion of each get our anti-texting message out there. year’s exhibition, the hydrants are gathWe disassembled the front end of the ered for a final exhibition before being Smart Car and parked it out front of our shop and made it appear as though the Smart Car had just bashed into the fire hydrant.

We get 40,000 people driving by our shop every day and so pretty quickly everyone was talking about it.”

Then last October, Gottfred Erie-LaSalle Body Shop was founded in 1934 and over the decided to use Halloween as years its iconic neon sign has become a Chicago landmark an opportunity to take his antiauctioned, with net proceeds benefiting texting message to another level, he charities that support the families of fire said. “We put a dummy in the front victims and other fire safety programs seat of the Smart Car and deployed an Continued from Page 31

Audi Genuine Parts

old airbag we had sitting around and strapped it to the steering wheel. Later, I went out there and the local police and fire department were out in front of the shop. Someone had reported a

Bob Gottfred (center) has been running ErieLaSalle Body Shop since 1975 and soon his sons Jim (left) and Jay (right) will be taking over the reins

car accident with serious injuries, and after we explained what was going on, we all laughed about it and they took a few photos. We left it there until the end of November and then the hydrant got auctioned off, raising $500 for the 51 Club. We bought it originally for

$1,500 and that money went to Club 51 too, so we donated $2,000 total, which was nice.”

Once Gottfred got involved in his anti-texting campaign, he stopped texting altogether. “When people use their cell phones while driving, the bottom line is that they’re distracted,” he said.

“I was doing it too, because you get a text message and your first reaction is to respond to it. But in the end it can really wait. We get damaged cars in here all the time and the customers will never admit that they were texting when it occurred, but I know many of these accidents are the result of texting.”

Gottfred teaches CE (Continuing Education) classes to insurance agents and now he has created a class dealing with the topic of texting. “We discuss how to insure teenage drivers and what can happen when they text,” he said. “I show some gruesome videos to get their attention and to raise their consciousness about texting.”

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Omix-ADA to Give Away 2014 Jeep Wrangler at SEMA

graded rear tire carrier, making it not only look good but also ready to tackle any off-road excursion, according to reports by Scott Rousseau of off-road.com.

Off Road Success Center OmixADA will also host several civilian Jeeps, including pre-WWII prototypes to the modern day JK Wrangler.

The Off Road Success Center will also exhibit a custom 2015 four-door Jeep Wrangler built for SEMA Cares; a committee dedicated to supporting the education of students pursuing careers in the automotive aftermarket. The SEMA Cares Jeep is designed to raise awareness about the committee’s Anvil Blue 2014 Jeep Wrangler Unlimited Rubicharitable efforts as it tours the con. Photo Credit: www.offroad.com United States. It will be outfitForty semifinalists will be se- ted with one of Omix-ADA’s exclulected over the course of November sive Rugged Ridge restyling 4-6, and the winner will drive away packages and later auctioned as part in a brand-new, fully-equipped Anvil of SEMA Cares’ fundraising efforts Blue 2014 Jeep Wrangler Unlimited in 2015, according to Rousseau.

Rubicon on the last day.

The winning Jeep will be outfitted with Rugged Ridge’s new Summit restyling package, which includes the company’s XHD Modular Bumper, grille inserts, and an upOmix-ADA, a manufacturer of Jeep, truck and off-road accessories, announced on October 7 that it will use its Off Road Success Center (Booth #34000) at SEMA to give away a fully-loaded Jeep.

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PPG Waterborne Shop Conversions Exceed 10,000

PPG Industries’ (NYSE:PPG) automotive refinish business has now converted more than 10,000 collision centers in the United States and Canada to its waterborne systems, with the majority of these conversions taking place in National Rule areas rather than in low-VOC (volatile organic compound) compliant regions.

According to Tim Jones, PPG waterborne segment manager, more than 10,000 collision centers in North America are now using PPG waterborne products, with more than 50 percent of these shops in National Rule markets. This means most PPG customers choose to use waterborne products and systems even though they are not required to do so to meet low-VOC regulations. They do so voluntarily because they want to improve their productivity, he said.

“Waterborne is not just a compliance solution anymore,” Jones said. “More than 10,000 PPG customers in the U.S. and Canada see the value in superior color matching, excellent throughput and performance, consistent color mixes and other key qualities that our waterborne products provide. PPG has a long-standing commitment to the collision repair industry to deliver high-quality and time-saving products. ENVIROBASE® High Performance and AQUABASE® Plus products are easier to blend and apply; our customers ap-

preciate this and see a real difference in their shops’ productivity.”

Jones attributed the success of PPG’s waterborne products to factors such as a highly-effective and easy CONVERT WITH CONFIDENCE® transition process and the service and support customers receive from PPG and its bestin-class distributor partners. “Collision centers are converting to PPG’s waterborne with great results,” he said. “Shops are finding the actual conversion to waterborne is simple. They’re also finding that we support them and view their productivity as a measure of our mutual success.”

Envirobase High Performance and Aquabase Plus products are now in their third generation. PPG introduced its waterborne technology to the international OEM (original equipment manufacturer) market in 1986 and brought the world's first commercialized refinish waterborne basecoat to market in 1992.

Since then, PPG has added new primers and clearcoats to the two brands and will, according to Jones, continue to expand the product lines’ offerings.

For more information about PPG and Envirobase High Performance and Aquabase Plus waterborne products, call 800-647-6050 or visit www.ppgrefinish.com.

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Chevrolet Brings Back the Corvette Stingray in Time for SEMA The SEMA Auto Show isn’t just an event for established aftermarket companies to showcase their latest

The 2015 Stingray

creations. It’s also a chance for new players in the business to introduce themselves to the industry. This year, Revorix falls under the latter category, and it’s prepared a special program for the Chevrolet Corvette Stingray. The new aftermarket company has just set up its business in Anaheim, California with the sole purpose of creating aftermarket

products that highlights a car’s “functional beauty." Seeing as it’s still a relative neophyte in the industry, you can’t fault Roverix from enlisting the help of Rowen Japan, considered as one of the best aftermarket car body specialists in Japan.

Together, the two companies created the Revorix Corvette Package, which features a comprehensive list of new aerodynamic components designed to give the Corvette Stingray a sportier look and improved dynamics.

There are no performance upgrades but that’s not overly important when you’re a new entry to the market looking to make a name.

The important thing is to establish yourself first, and one way to do so is to build a body kit that will catch peoples’ attention, which is exactly what it has with the Revorix Corvette Package. It’s a tough task catching some eyes at the SEMA Auto Show, but Revorix, with the help of Rowen Japan, might have the kit to pull it off.

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SEMA: Sales of Auto Parts & Accessories Reach $33B Sales of automotive specialty-equipment products continue to climb, reaching $33 billion in 2013. The number represents a 6.7 percent increase over the previous year and marks the fourth consecutive year of growth, according to the SEMA Annual Market Study that is available at www.sema.org/2014samr.

“The Specialty Equipment Market produced the highest growth since the recent recession,” said Chris Kersting, SEMA president and CEO. “There are a number of factors that figure into this upward trend.”

The special-equipment market includes products that enhance a vehicle’s performance, styling, comfort, convenience and safety. Among the factors driving the industry’s growth are: ● Street performance products accounted for 26% of sales. The renewed focus on performance models by the OEMs has helped drive interest in this segment. New models such as the Scion FR-S, redesigns like the 2015 Mustang, and high-performance packages such as the Hellcat Challenger have inspired the industry and consumer alike to aim for increased performance. ● There was a healthy upward tick for the truck market. Sales of specialty equipment for light trucks grew 8% in 2013 to post the market’s best sales year

since 2007. New truck sales continue to climb amid anticipation for major redesigns to several flagship pickups. As the SUV/CUV sector continues to grow nine of the top 30 sellers in the US), crossover products present an opportunity to diversify and expand light-truck product offerings. ● The 2014 SEMA Show is shaping up to be the biggest yet as industry optimism continues to build. New this year is SEMA Ignited, a special consumer and media attraction on Friday night after the Show. SEMA Ignited meshes with other consumer-facing association projects, all part of a long-term plan to enhance awareness of specialty products. ● The US economy continues to show positive signs for industry growth, with gross domestic product rising and unemployment rates dropping. Forecasters are generally predicting sustained moderate growth for the US economy over the next few years. Meanwhile, car buyers have shown renewed enthusiasm, pushing new-vehicle sales upward toward pre-recession levels.

The SEMA Annual Market Report is conducted yearly to help SEMAmember companies understand the industry and make informed business decisions.

Mercedes Will Train 26,000 in the Brand’s New Culture

Mercedes-Benz USA and its dealers are spending about $30 million over the next four years to train 26,000 employees and immerse them in the brand’s culture.

Later this year, the first wave of employees will go through a two-day program called the Brand Immersion Experience at the Mercedes-Benz factory in Vance, Alabama, near Tuscaloosa.

The investment includes a $6 million revamp of the visitor center at the factory for classroom training, including digital interactive displays.

“We have been driving hard for the last few years on the customer experience,” said Gareth Joyce, vice president of customer services at Mercedes-Benz USA. “It is not just about the product; it is all about the package and how you look after the customers as well.

“This is just one of the building blocks in our portfolio to drive that program forward through our dealer network.”

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Takata Airbag Recall May Include GM Vehicles

The regional recall of millions of U.S. vehicles with potentially defective airbags made by Japan’s Takata Corp. may expand to include General Motors models, according to documents filed in Sept. with U.S. regulators.

More than 4.3 million cars produced by automakers, including Honda Motor Co., Fiat’s Chrysler Group and Toyota Motor Corp., are affected by the regional recalls. They began in June in certain high-humidity areas of the United States after the National Highway Traffic Safety Administration started investigating reports of airbag explosions in Florida and Puerto Rico.

The regional recalls initially affected nine automakers, but documents filed by Takata for a Sept. meeting with NHTSA and the affected companies listed GM for the first time as being potentially affected. The Takata documents, posted online by NHTSA, said the number of vehicles produced by the largest U.S. automaker was undetermined.

GM declined to comment.

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Continued from Page 17

Record Numbers

Paint trade show is worth the time and effort and they have stated that our event is the best attended and most successful show for sales.”

She adds, “Everyone enjoyed the trade show and had a great time, especially getting to interact with 16time NHRA Funny Car Champion John Force. He’s a wonderful person to have at this type of event as he’s not the ‘behind-the-velvet-ropes’ type of celebrity; he took pictures, signed autographs and spent time visiting with attendees. We were so pleased to have him at our event and cannot say enough about him!”

Dinner and refreshments, which received rave reviews, were provided during the event by Pro Paint. In addition, pre-registered shop personnel each received a $10 BP gas card to offset travel expenses, and attendees had a chance to win a variety of door prizes, including the grand prize of a 50” flat LED 3D TV. Pro Paint’s Annual Trade Show is a strong regional show and Hennessy believes people are becoming more

apt to attend regional shows since “the closer location requires less time away from work, plus attendees have the opportunity to discuss the products directly with the regional representatives of the vendors, not someone who takes a name and number and has someone contact them at a later date. Our attendees have stated how much they appreciate the live demonstrations and being able to see the actual products. It also gives the attendees a chance to build relationships with all members of the Pro Paint team. We feel this is what makes our event such a success and are thrilled with how well this year’s event went.”

The Pro Paint 8th Annual Trade Show has been scheduled for Tuesday, August 11, 2015.

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by Marie Thomas Baird, Sentinel Education Editor, Sentinel-Tribune

The F-100 pickup truck refurbished

by Penta Career Center students looks just like new.

Like it did when it was built in 1965.

The Ford truck, which was sold to the district for $5,000, came “on pallets, in boxes, with nuts and bolts in a five-gallon bucket,” said Bob Anderson, auto tech instructor.

After more than three years of work, the truck was finished this fall by students in the auto tech and auto collision classes.

Students have changed the truck from standard to automatic shift, added power steering, power disc brakes, air conditioning and a stereo.

It still has the TWIN I BEAM logo on the front fender.

Anderson said 99.95 percent of the work was done by students.

The truck was finished in time for Penta’s car show last month, and drew the attention of several graduates.

Anderson said he wants people to see the truck, painted silver and red, and not say “So Penta built it, what did you expect?”; rather “We

want them to see it and say, ‘Wow.’” He estimated over the past three years, 95 students have worked on the project.

“We thought it was worth it,” Anderson stated.

Auto collision students Michael Seibert from North Baltimore, and Quinn Hendren from Elmwood, were just two of the students who started on the project last year as juniors.

Hendren said it was different work, not done today.

Seibert recalled the truck bed was still in storage when he entered the class.

Superintendent Ron Matter said Mathews Ford Oregon has expressed interest in putting the truck in its showroom.

It also may make its way into the Detroit Auto Show next year.

Anderson said he hopes to bring back as many graduates as possible and sign their names on the inside hood.

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Continued from Page 33

MSO Consolidations

“Fixing cars is become more and more challenging than ever before,” said Afshar. “The vehicles are so different now and they may look the same outside but what’s inside is not the same.” With the standards set by the Insurance Institute for Highway Safety (IIHS) and the Corporate Average Fuel Economy, cars need to be lighter but still pass safety requirements.

Afshar said another challenge for those in collision repair is employing proper technicians with the right mind set. Afshar, who sold his MSO Sterling Automotive Group in 1998, said technology is moving so rapidly that detailed knowledge, training and equipment is becoming even more necessary for shops to be successful and he encourages technicians to be open-minded and learn new techniques that they’ve never used before.

Car-O-Liner Participation Enhanced With Social Media

Car-O-Liner has entered the social media realm, and is now offering a variety of news ways for consumers to connect with the company. These channels include Facebook, LinkedIn, Google+, Twitter, Instagram, YouTube and Pinterest. Car-O-Liner President Jeff Kern, said he is excited about the new social media communications and anticipates these activities will benefit business relations through technical knowledge sharing.

“Our social media connection allows us to not only share our activities, but also join the conversation through communication with both our customers and the industry,” he said. “It is important to listen and be heard as we extend our reach through these interactive tools.”

Follow Car-O-Liner at: Facebook: facebook.com/caroline rcompany LinkedIn: https://www.linkedin.com/ company/car-o-liner?trk=top_ nav_home Google+: https://plus.google.com/ 102972787963006534481/posts Twitter: @car_o_liner Instagram: @car_o_liner Youtube: https://www.youtube .com/channel/UCFZEhZcZS4Xo4C wannUGcEQ Pintrest: http://www.pintrest.com/ Give us your opinion on carolinerauto/

I-CAR Launches Two New Refinish Courses

I-CAR announced that two new courses are now available to Refinish Technicians: Refinish Materials and Application Blending (REF08e) and Color Theory, Mixing Toners, and Tinting (REF09). These courses have replaced Color Theory, Application, Tinting, and Blending (REF03).

Josh McFarlin, I-CAR Director of Curriculum & Product Development stated, “Nearly all repairs require some level of refinishing and typically, refinish work gets noticed first by the customer. Refinish Technicians who take these courses will learn how to correctly prepare and refinish a vehicle to ensure proper overall appearance, which can help improve customer satisfaction and increase productivity through better cycle times and reduced rework.”

Refinish Materials and Application Blending (REF08e) is an interactive online course, worth 2 credit hours. It is complete with demonstrations on conventional blending and reverse blending, as well as discussions on using a blending additive and a blending bed.

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Alcoa Inc, the largest US aluminum producer, forecast profit from auto and aerospace components will increase in the Q4 as it sells a record amount of the metal to carmakers.

Alcoa, which is shifting its focus to manufacturing components and alloys, said it would deliver a record amount of aluminum sheet to automakers this quarter as car and truck manufacturers use more of the lightweight metal. Earnings in the company’s rolled products segment, a supplier of aluminum sheets to car, airplane and packaging manufacturers, will more than double from a year earlier.

Alcoa is benefiting from higher commercial-jet orders and a shift to aluminum components instead of steel among automakers such as Ford Motor Company, which plans to make its F-150 pickup truck with aluminum body panels.

Mr Lloyd O’Carroll, a Richmond, Virginia based Analyst at Northcoast Research Holdings LLC said that “Auto body sheet has a much higher margin than anything except aircraft. I Give your opinion think 2015 us is going to get a pretty on big ma lift of usage on the F-150 and of course Want to Contribute to t all of the margin benefit of that.”

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“These shops need to stand up for what’s right and quit letting the insurance industry run their business for Promote business them,” said Parker.

“Theyyour are just terState Farm Insurance. rified that the insurance companies an exclusive article feat To advertise The source timely “A vibrant, profitable auto colliare going to steer theproducts workfor away.” your or servi Advertising Sales at: of advertise sioncall repair industryTo is in the interest Parker acknowledges their coninformation that every 800-699-8251 call Momber at: cerns but said, State Farm,” saidJoe Luedke.

“At the “We’re just as busy now body shop needs! same time, wee-mail: are advocates on behalf as we were because we’re educating 800-699-8251 ofadvertising@autobodynews.com our customers for reasonable repair consumers.”

He has found it beneficial CALL 800-699-8251 e-mail: costs. Wejmomber@autobodynews.com believe repairer profitability to explain to consumers what the insurCALL: Joe Momber for de www.autobodynews.com Start Your“They FREE and quality auto repairs that are rea- ance companies are doing. need www.autobodynews.com 800-699-8251 sonably priced can both be achieved. to take their businesses back and they Mail Subscription.

“Our customers choose where need to run their own businesses.” their vehicles are going to be reWhen Autobody News went to paired. We provide information about press See the NEW this month, an additional 25 our Select Service program while at states were in the process of filing lawRegister Your formeet Our the same time making it clear they can Email suits to an Oct. 31 deadline beselect which shop will do the work,” fore returning to court in November. he said.

“What we want to achieve is number www.autobodynews.com Parker Auto Body was part of one, that the safety and the quality of at www.autobodynews.com State Farm’s Select Service DRP until repairs for the American public is reearlier this year. Since the business stored,” said Eaves. “The industry will owner left the program in April, he said never be the same after this.” they have steered a substantial amount When contacted by Autobody of business away from him. “Just in News, Allstate Insurance Company short pays alone I have over $150,000 and Progressive both said that due to To advertise worthcall of claims they won’t at: pay,” he company policy, they do not comment Sean Hartman said. “Operations that we actually do on pending litigation. Stay tuned to 800-699-8251 the vehicles to make the vehicles safe Autobody News for more developthat they won’te-mail: pay us to do. ments.

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Alcoa Forecasts Record Auto Sheet Shipments in Q4

Continued from Page 34

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