November 2021 Midwest Edition by Autobody News

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Vol. 11 / Issue 2 / November 2021

Michigan Governor Signs Bill to Provide Flexibility for Car Dealerships

Allstate Selling Headquarters After 54 Years in Northbrook, IL

Gov. Gretchen Whitmer on Oct. 14 signed Senate Bill 128, which will amend the Michigan Vehicle Code to allow car dealerships greater flexibility in their operating hours. “I am happy to sign legislation that supports our small businesses and puts Michigan first,” said Whitmer. “Senate Bill 128 lifts restrictions for Michigan car dealerships without compromising opportunities for consumers. This bill is a great example of the positive difference we can make for Michiganders.” Currently, Michigan car deal-

by Eric DeGrechie, Patch

erships must be open for a least 30 hours a week for 52 weeks each year. The current requirement poses a challenge for car dealerships to accommodate emergencies, vacations and other necessary closures. This bill would allow greater flexibility for a car dealership to be open for less than the 30 hour-minimum for up to four weeks each year. “We applaud Gov. Whitmer for signing this common sense legislation that will provide many small independent automobile dealerships with much needed regulatory relief See Governor Signs Bill, Page 20

Mitchell, Genex, Coventry Unite to Form Enlyte Mitchell, Genex and Coventry formally announced Oct. 13 the creation of their new parent brand, Enlyte. The three businesses have been moving toward this unification since the merger of Mitchell and Genex in 2018, followed by the acquisition of Coventry in 2020. This combination under the new Enlyte brand creates a one-of-a-kind organization in the Property & Casualty industry with technology innovation, clinical services and network solutions, all backed by an unrivaled collection of expertise across the entire claims continuum.

The Mitchell, Genex and Coventry brands will continue to operate as solution providers, making the entire collection of the companies’ trusted products and services available to all Enlyte customers. This new alignment allows the family of businesses to better serve the industry with a holistic point of view and expanded reach, while remaining focused on the individual needs of clients in the Auto Physical Damage, Auto Casualty, Workers’ Compensation and Disability spaces. “We are so pleased to share the exciting work our people have been See Unite to Form Enlyte, Page 28

The pandemic has altered the trajectory and long-term plans for many companies across the U.S. Allstate has been headquartered in Northbrook (Northfield Township), IL, since 1967. That is all about to change as the insurance company is selling the campus on Sanders Road. “Allstate’s employees have more choice about where they work and many are choosing to work from home,” Allstate spokesperson Mallory Vasquez told Patch. “As

a result, we will sell our office in Northbrook but plan to maintain our significant presence in the Chicago area.” According to Vasquez, 95% of Allstate’s workforce is currently working remotely. The company has invested $14 million in equipment for employees to work from home. Allstate employs nearly 8,000 employees in Illinois, according to its website. Allstate is not releasing the sale cost of the property or any of its future plans in terms of finding new See Selling Headquarters, Page 22

‘Who Pays for What?’ Survey: Many Auto Body Shops Don’t Bill for Labor to Drain, Refill Fuel Tanks, but Most That Do Get Paid Industry trainer Mike Anderson of Collision Advice often suggests an auto body shop wishing to use the results of the “Who Pays for What?” surveys to train estimators or repair planners start by looking at the “not-included” operations listed in the survey reports for which a large percentage of other shops report being paid regularly. One such procedure from this past summer’s survey, for example, is the labor to drain and refill a vehicle’s fuel tank. About 70% of those repairers who charge for this work when it is necessary and performed report being paid “always” or “most” of the time by the eight largest insurers. But almost three in 10 shops (29%) overall acknowledge they have never sought to be paid for this operation. “Repairers should understand that the reason this isn’t included in any of the three estimating systems is because it’s so variable,” said Anderson, who conducts the quarterly “Who Pays” surveys in conjunction

with CRASH Network. “You have a book time to remove and reinstall a fuel tank. But draining, storing and refilling the fuel tank is not included in that time because the estimating system can’t know if a vehicle has five gallons of gas in it or 25 gallons of gas. Obviously, it takes longer to drain and refill 25 gallons of gas than five gallons of gas.” The final “Who Pays for What?” survey of 2021 is now open through the month of October. It focuses on labor operations related to scanning, system calibrations and aluminum repair. Shops can take the survey at https://www.surveymonkey.com/r/XC67NPT Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billSee Who Pays for What? Page 28

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2 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

R a c i n g

P e r f o r m a n c e

M a n u f a c t u r i n g

REGIONAL

Northbrook, IL ��1

ABRA Mankato in Minnesota Celebrates 30th Anniversary of I-CAR Certification ��6 Cars Worth $329K+ Stolen from Michigan Car Dealership ��11 CARSTAR Ideal Auto Body of Illinois Blown Away by Golf Outing Success ��16 Crash Champions Adds 4 Locations in Wisconsin and Idaho ��24 Dealerships Celebrate Grand Openings in MN ��6 Freer Auto Body in Godfrey, IL, Marks 30th Anniversary with Legacy of Community Service ��12 GM Building Pre-Production Hummer EVs at Factory ZERO, Hiring to Follow ��22 Menard Classic Car Collection to Be Auctioned Oct. 2 ��24 NABC Recycled Rides Donates Refurbished ®

Vehicles to 4 St. Louis Veterans ��8 Painters Supply & Equipment Expands in Michigan ��11 Rivian to Establish Service Support Operations at Plymouth, MI, Facility, Creating 100 High-Wage Jobs ��29 Service King to Open New Location in Deer Park, IL ��16 Stellantis to Invest $229 Million in Indiana Plants to Accelerate Electrification Plans ��10

ASA Announces New Membership Model ��57 ASA Charts Next Steps on its Reorganizational Path ��34 AsTech® to Provide OEM Scan Report ��53 Auto Insurers Confront Rapidly Rising Claims Costs ��56

Laurel Auto Group of Westmont �� 47

American Icon Automotive Finishes �� 24

Luther Bloomington Acura-Subaru �� 45

Cars as Investments on the Rise ��50

Audi Wholesale Parts Dealers �� 57

Luther Kia of Bloomington �� 42

CCC Forecasts Future of EVs and How It Will

Axalta Coating Systems �� 6

Malco �� 29

asTech �� 8

Markingpendepot.com �� 28

BMW Wholesale Parts Dealers �� 53

McGrath City Hyundai �� 42

Byers Imports Volkswagen �� 19

Mercedes-Benz of Louisville �� 44

Byers Wholesale Parts Group �� 18

Mercedes-Benz Wholesale Parts Dealers �� 59

Carworx �� 27

MINI Wholesale Parts Dealers �� 52

CCC Intelligent Solutions �� 25

MOPAR Wholesale Parts Dealers ��38-39

Certified Automotive Parts Association �� 22

Nissan/Infiniti Wholesale Parts Dealers �� 52

Classic BMW MINI �� 43

Patrick Hyundai �� 46

Classic Chevrolet �� 49

Pro Spot International �� 2

Classifieds �� 58

PPG �� 9

Columbia Hyundai �� 40

SATA Dan-Am Company �� 13

DeVilbiss Automotive Refinishing �� 11

Sears Imported Autos, Inc �� 40

Dynabrade, Inc �� 60

Shaheen Chevrolet Parts Warehouse �� 36

Equalizer Industries, Inc. �� 10

Sorbothane Soft-Blow Mallet �� 20

Ford Wholesale Parts Dealers �� 50

Spanesi Americas �� 21

Gandrud Parts Center �� 35

Steck Manufacturing Company �� 26

Ganley Westside Subaru �� 37

Subaru Wholesale Parts Dealers �� 54

GM Wholesale Parts Dealers �� 55

Sunmight USA ��14-15

Hawkinson Kia �� 48

Sweeney Chevrolet-Buick-GMC �� 43

Honda-Acura Wholesale Parts Dealers ��30-31

The Sharpe Collection of Automobiles �� 41

Hyundai Wholesale Parts Dealers �� 56

Valspar Refinish �� 7

Island Clean Air �� 33

Varsity Ford �� 22

JEN6 Equipment �� 28

Volkswagen Wholesale Parts Dealers �� 59

Kelly BMW �� 34

Wedge Clamp Systems �� 12

Kia of Lansing �� 32

Willis Volvo �� 42

Kia Wholesale Parts Dealers �� 51

Wrenchers �� 17

and Logistics Constraints ��57

Impact Body Shops ��48 Cox Automotive Forecast: New-Vehicle Sales Stall in September ��58 Ford Begins Pre-Production of All-Electric F-150 Lightning ��54 GEICO to Significantly Hike Auto Insurance Rates in Illinois ��20 Gerber Collision & Glass Acquires Center in IL ��28 J.D. Power: New Car Tech Goes Unused, People Don’t Intend to Use It ��4 Jay Leno Joins SEMA Show New Products Breakfast ��46 LG to Pay for Bolt Recall ��56 Michigan Governor Signs Bill to Provide Flexibility for Car Dealerships ��1 Michigan to Have Nation’s First Electrified Road

Anderson - Auto Body Shops Can Take Control

NICB Releases Annual ‘Hot Wheels’ Report:

Yoswick - Changes Ahead for Collision Repair Shops Based on AI, New Automotive Finishes �40 Yoswick - Lawmakers in 3 States Tackle Topics Impacting Collision Repairers ��52

America’s Top 10 Most Stolen Vehicles ��59 Ohio Has Multi-Million-Dollar Car Theft Problem ��20 Retail Spending on Cars and Parts Surpasses All Other Sales ��59 Sedgwick to Use CCC Intelligent Solutions’ AI to Digitize Auto Appraisals ��54 Tesla Asks New U.S. Buyers to Wait Until April

NATIONAL ‘Who Pays for What?’ Survey: Many Auto Body Shops Don’t Bill for Labor to Drain, Refill Fuel Tanks, but Most That Do Get Paid ��1 Allstate Selling Headquarters After 54 Years in

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

ABRA Auto Body Repair of America �� 23

Due to Supply Chain Shortages, Raw Material

Mitchell, Genex, Coventry Unite to Form Enlyte ��1

Pays Off ��32

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.

Kwik Bench �� 16

COLUMNISTS

Phillips - Marketing Effort at Tony’s Body Shop

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips, Eric Murphy, Ron Liesch Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

3M Automotive Aftermarket Division �� 5

Axalta Expects $40M Less in Net Sales for Q3

to Wirelessly Charge EVs, Governor Says ��26

of Credit Card Processing Fees ��36

INDEX OF ADVERTISERS

CONTENTS

2022 for Model Y Long Range ��4 Tesla Shares Rare Look Into its Crash Lab ��43 To Scan or Not to Scan? CAA Says It’s No Longer an Option ��44 Toby Chess Has Successful Kidney Transplant ��43

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 3

J.D. Power: New Car Tech Goes Unused, People Don’t Intend to Use It While new-vehicle technology is a leading reason why buyers choose one vehicle over another, many new vehicles are equipped with some features that they want no part of, according to the J.D. Power 2021 U.S. Tech Experience Index (TXI) Study, released Oct. 8. This ends up being costly to automakers and buyers alike. “New-vehicle prices are at an all-time high, partly as a result of an increased level of content,” said Kristin Kolodge, executive director of human machine interface at J.D. Power. “This is fine if owners are getting value for their money, but some features seem like a waste to many owners.” The study finds, for more than one in three advanced technologies, fewer than half of owners have used the technology in the first 90 days of ownership. Non-users most often say they don’t need these technologies. For example, 61% of owners say they have never used the in-vehicle digital market technology, and 51% of those saying they have no need for it. Owners feel similarly about the driver/passenger communication technology, with 52% saying they have never used the technology and 40% of those saying they have no need for it. When technology is effectively executed in a vehicle, it positively influences an owner’s decision to purchase another vehicle equipped with that technology. The highest execution scores in the study are for camera rear-view mirror and ground view camera, both of which are ranked among the top three by owners wanting them on their next vehicle. “J.D. Power has a wealth of transactional data showing that automakers suffer a hit to profits and sales velocity if they build the wrong mix of features on their vehicles,” Kolodge said. “The TXI research quantifies the benefits when there is alignment between what owners truly want and what the automakers produce.” Following are key findings of the 2021 study: Dealers can influence how owners feel about value of technology: Dealer demonstrations at delivery are

instrumental in keeping owners engaged with emerging technologies. For example, for safe exit assist technology, owners can get a very strong understanding of the system when they learn it from a dealer. Without dealer education, however, owners often do not fully understand the technology and its value, presenting a challenge for its overall acceptance. Similarly, when a dealer demonstrates trailer assistance technology, satisfaction improves to 8.69 (on a 10-point scale) compared with 7.83 for learning from an outside source. However, owners are more than twice as likely to learn about this technology from an outside source (71%) than from a dealer (30%). Some technologies make driving experience better, while others do not: Many owners indicate poor performance with interior gesture controls technology, which responds to hand motions instead of touch. Owners of this feature indicate an extremely high 41 problems per 100 vehicles (PP100). This technology also has the lowest overall satisfaction score in the study for a second consecutive year. In contrast, one-pedal driving technology offered in some electric vehicles receives very high satisfaction levels and owners cite relatively few problems (8 PP100). Tech desires not always transferable across global markets: J.D. Power TXI studies for the U.S. and China include 21 of the same advanced and emerging technologies, but scores for owner satisfaction vary by country. While camera rear-view mirror technology receives high scores in the U.S., owners in China have the most problems (18 PP100) with this technology. For ground view camera technology, 62% of U.S. owners say they “definitely will” want the technology again, while only 24% of owners in China say the same. Tesla’s unofficial score is highest in study: Tesla receives an Innovation Index score of 668 (on a 1,000-point scale). The automaker is not officially ranked among other brands in the study as it doesn’t meet ranking criteria. Unlike other manufacturers, Tesla doesn’t grant J.D. Power permission to survey its owners in 15 states where it is sells vehicles. Based

4 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

on that limitation, Tesla’s score is calculated based on a sample of surveys from owners in the other 35 states. Highest-Ranking Brands Genesis ranks highest overall and in the premium segment with an Innovation Index score of 634, offering a high level of advanced technologies across its product lineup. In the premium segment, Cadillac (551) ranks second, followed by Volvo (550), BMW (545) and Mercedes-Benz (523). Hyundai ranks highest in the mass market segment with a score of 519. Kia (510) ranks second, followed by Nissan (502), Subaru (499) and GMC (498). Advanced Technology Award Recipients The TXI Study analyzes 36 technologies, which are divided into four categories: convenience, emerging automation, energy and sustainability, and infotainment and connectivity. Only technologies classified as advanced are award eligible. Cadillac Escalade is the premium model receiving the convenience award, for camera rear-view mirror technology. Ram 1500 is the mass market model receiving the convenience award, also for camera rearview mirror technology. Lexus IS receives the premium model emerging automation award, for reverse automatic emergency braking technology. Hyundai

Elantra is the mass market model receiving the emerging automation award, for front cross traffic warning technology. Lexus IS receives the award for infotainment and connectivity in the premium segment, for virtual assistant connectivity to vehicle technology. Kia K5 receives the infotainment and connectivity award in the mass market segment, also for virtual assistant connectivity to vehicle technology. The 2021 U.S. Tech Experience Index (TXI) Study is based on responses from 110,827 owners of new 2021 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through July. The TXI Study complements the J.D. Power Initial Quality Study (IQS) and the J.D. Power Automotive Performance, Execution and Layout (APEAL) Study by measuring how effectively each automotive brand brings new technologies to market. The TXI Study combines the level of adoption of new technologies for each brand with the excellence in execution. The execution measurement examines how much owners like the technologies and how many problems they experience while using them. For more information about the U.S. Tech Experience Index (TXI) Study, visit https://www.jdpower. com/business/automotive/us-techexperience-index-txi-study

Tesla Asks New U.S. Buyers to Wait Until April 2022 for Model Y Long Range by Mark Kane, Inside EVs

The disproportion between the demand and supply of the Tesla Model Y Long Range AWD appears to have expanded in the U.S.

According to the online configurator, as of Sept. 27, the expected delivery time for new orders of the entry-level Model Y is now April 2022. It was March a week earlier, and February a week before that. Now we understand why Tesla will start production in Texas with the Model Y, as it’s the most wanted car in the lineup. Those who would like to get the Model Y must spend $7,000 more for the Performance version, which can be delivered in November. The good news is at least the prices stopped increasing over the last weeks. There are also no changes in the case of other models.

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For additional information, including important safety and warranty information regarding 3M Automotive Aftermarket products, visit www.3Mcollision.com/info. Copyright 2021 by 3M. All rights reserved. 3M and Cubitron are trademarks of 3M Company.

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 5

Dealerships Celebrate Grand Openings in MN Buick GMC of Rochester and Nissan of Rochester, in Rochester, MN, hosted their grand opening under the Penz Automotive Group on Sept. 25. The event was open to the public and saw 600 community members attend. Guests enjoyed live music from the Ken Valdez Trio and the Steely Dan Tribute Band, yard games from SCHEELS, food from Taco Lab and Smoak BBQ and cookies from the newly opened Crumbl Cookies. Prize giveaways included a GMC duffle bag, Nissan counter stool, travel blanket, backpack, oil changes and more. The Penz Automotive Group’s mission is to help people love what they drive by demonstrating honesty, integrity and teamwork, and by positively impacting the communities they live and work in. Source: Group

Penz

Automotive

ABRA Mankato in Minnesota Celebrates 30th Anniversary of I-CAR Certification ABRA Auto Body Repair of America, a leading premier collision repairer, is celebrating the team at ABRA Mankato in Minnesota for attaining 30 consecutive years in I-CAR’s Gold Class program. Achieving and maintaining I-CAR’s Gold Class designation means a business has met the industry’s standard for training that contributes to complete, safe and quality repairs. More than 8,600 shops throughout the country are currently recognized as Gold Class, with ABRA Mankato’s being the 10th in the country to hold that ranking for 30 consecutive years. “The unibody design had been gaining in popularity and there was lots of discussion in the industry on how to repair,” said Geralynn Kottschade, co-owner, ABRA Mankato. “When we earned our I-CAR certification, it not only helped get our team up to speed, but it also helped get us on the right path within the industry.” Owned by husband and wife duo Geralynn and Jerry Kottschade, ABRA Mankato was one of the earliest adopters of I-CAR training. “At the time, it was a massive

undertaking to equip your facility and your team with the time and tools needed to earn an I-CAR Gold Class designation,” said Geralynn. “We weren’t accustomed to training, there was no manufacturer or vendor training back then, we went to school and that was about the extent of it.” The team continued to maintain its I-CAR Gold Class status for each consecutive year, seeing the value it brought to not only the repair quality but the team. “We have several employees who have been with us for over 25 years and even the new ones that join, we put them with our senior technicians, and they stay with us meeting the five-, 10-, 15-year anniversaries,” said Geralynn. “People underestimate the value of continuous training. It can make your job more dynamic, expand your skills and keep you engaged in your work. We’re grateful our team is just as invested as we are in the quality of work.” A family business for the Kottschade’s, the team has expanded to include their daughter Laura, who hopes to take over the business

one day. “I was a founding member of the Women’s Industry Network, on the Minnesota I-CAR committee, a part of NACE and always involved in these organizations,” continued Geralynn. “It’s easy to see how fast the industry is changing and that’s why we’re so grateful that Laura has taken an interest in the business because there is limitless opportunity and such a high demand for talent.” Both Geralynn and Jerry Kottschade are proud of reaching this milestone and excited to continue providing the highest level of collision repair excellence to their community. “We are grateful to have reached this milestone with I-CAR, but we know it’s not possible without the support of our community,” said Geralynn. “We look forward to continuing giving back to the people who helped get us here as well as supporting causes close to Mankato.” Visit ABRAauto.com to learn more. Source: ABRA Auto Body Repair of America

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 7

NABC Recycled Rides® Donates Refurbished Vehicles to 4 St. Louis Veterans On Sept. 13, four deserving St. Louis veterans experienced a life-changing event—the presentation of four vehicles that will provide them independence and the ability to work and take care of their families—thanks to the National Auto Body Council Recycled Rides® program along with car donors Allstate, Farmers Insurance®, GEICO and Travelers Insurance and repair partners Schaefer Autobody, Caliber Collision and Tech-Cor.

The presentation was held as part of the second annual NABC Pars for Cars Golf Fundraiser presented by Enterprise at Boone Valley Golf Club in Augusta, MO. More than 100 NABC members, guests and collision repair industry leaders were on hand for the emotional presentation. “We are so honored to present four NABC Recycled Rides to these four deserving heroes,” said Clint Marlow, chairman of the NABC Board of Directors and claims director for Allstate. “We owe them a tremendous debt of gratitude for their service and sacrifice. Working with our insurance members and collision repair partners, we’re proud to be able provide them and their families the gift of reliable transportation and independence.” The veterans were selected by the Joshua Chamberlain Society, a grass roots, nonprofit charity formed with the mission of providing long term support to veterans from local areas who have sustained permanent combat injuries fighting the long war on terrorism for our nation. It also provides long-term support to the children of local veterans who made the ultimate sacrifice in our service. Founded in St. Louis, it has

now expanded into additional chapters serving the Nashville and Houston areas.

The veterans receiving vehicles included: Todd Nicely, a U.S. Marine Corps veteran, served in Iraq and Afghanistan, receiving the Purple Heart and Navy Achievement Medal. He was severely injured in an explosive blast, and lost all four limbs. He returned to the U.S. for treatment, surgeries and new prosthetic limbs. Today, he lives in Imperial, MO, just outside of St. Louis with his wife, Michelle, and three kids. Having reliable transportation would allow his family to be able to get to work, school and daily activities. They receive a 2016 Kia Forte donated by Travelers Insurance and repaired by Schaefer Autobody. Tyler Huffman, who served in the U.S. Marine Corps, was deployed to Afghanistan. He suffered a spinal injury which left him a paraplegic, and now is retired with a medical discharge. He lives with his wife and two young children in Jefferson City, MO. His wife works extra shifts as a nurse to help make ends meet, but drives an older, high-mileage vehicle 45 minutes each way to work. A reliable vehicle will provide her security on the road and help ensure their mobility and security as a family. Huffman and his family received a 2015 Chevy Cruze LT donated by Farmers Insurance and repaired by Caliber Collision of Festus, MO. Chris Van Etten, a U.S. Marine Corps veteran, served in Afghanistan, stationed as a rifleman working with a bomb-sniffing dog, Harley. He was injured by an IED and lost both legs, receiving a Purple Heart and Good Conduct Medal for his

8 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

bravery. After taking medical retirement, his Marine Corps buddies worked to reunite him with Harley, who was also retired, to become his service dog. He and his wife have two young children, and the gift of reliable transportation would allow him the independence to work and help take care of his family. They received a 2015 Toyota Corolla donated by donated by Allstate and repaired by Tech-Cor. Legrand Strickland, who retired from the U.S. Army as a sergeant, served in Afghanistan and received two U.S. Army commendation medals and a Purple Heart, as well as the Combat Infantryman, Parachutist and Air Assault badges. He enlisted in the military after high school, and then went on to college, where he earned his degree in graphic design. He returned to the U.S. Army and was deployed to Afghanistan as part of the 82nd Airborne. Strickland was injured in an IED explosion, losing his legs and

suffering a traumatic brain injury. Today, his wife works full-time and his sons help support the family. The gift of reliable transportation would make it possible for the family to continue to work and care for each other. He was presented a 2013 VW Jetta donated by GEICO and repaired by Schaefer Autobody of Columbia, MO. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38.5 million. Additional partners in the NABC Recycled Rides presentation include 1-800 Charity Cars. Source: NABC

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 9

Stellantis to Invest $229 Million in Indiana Plants to Accelerate Electrification Plans Stellantis on Oct. 7 announced it would invest a total of $229 million in three of its Kokomo, IN, plants to help the company reach its goal of achieving 40% low-emission vehicle sales in the U.S. by 2030. This announcement, which will retain 662 jobs, comes three months after the company laid out its longterm electrification strategy, where it committed to investing $35 billion through 2025 in electrification and software. Stellantis Head of Powertrain Operations Brad Clark made the announcement during an event at the Kokomo Transmission Plant attended by Indiana Gov. Eric J. Holcomb, Kokomo Mayor Tyler Moore and UAW Region 2B Director Wayne Blanchard, along with other elected officials and community leaders. The investment will support retooling of the Kokomo Transmission (KTP), Kokomo Casting and Indiana Transmission plants to produce the fourth-generation eight-speed transmission. This new transmission will have the flexibility to be paired with inter-

nal combustion engines, as well as mild hybrid and plug-in hybrid propulsion systems, for vehicles across the Jeep, Ram, Chrysler and Dodge brands. It will deliver improved fuel economy, provide pure-electric range and help vehicles meet future emission regulations. “This investment and this transmission represent an important stepping stone in getting us to 2030 and further expanding our battery electric offerings,” said Clark. “This new eight-speed is the ‘multi-tool’ of transmissions. It is a versatile transmission that can be adapted for a variety of applications, allowing us the flexibility to adjust our production as consumer demand for electrified vehicles grows over the next decade. It also offers consumers the opportunity to get familiar with this technology and explore all of the benefits that can come from electrification.” The new, fourth-generation, eight-speed transmission will capitalize on a number of common parts within the different versions—transmission gear train/clutch, mechatronics, mechanical pump and E-pump motor. It also will have the flexibility

for unique parts to adapt to the various electrification options. These parts include the eMotor, torque converter and power electronics.

“As our industry continues to change, our focus must continue to be on our most valuable asset—our people,” said Clark. “This transmission

“This investment and this transmission represent an important stepping stone in getting us to 2030 and further expanding our battery electric offerings,” — Brad Clark Adding electrified transmission assembly also diversifies the product portfolio of the Kokomo operations. In March 2020, Stellantis announced it would invest $400 million to convert Indiana Transmission Plant II to the Kokomo Engine Plant to produce the GMET4 engine, the company’s 2.0-liter Global Medium Engine inline four-cylinder turbo. Production is expected to launch later this year. This investment also leverages the core manufacturing competencies of the Kokomo operations and the local workforce in the areas of casting, machining and assembly, all of which will be needed as the market transitions to an electrified future.

program will bring new opportunities for our current workforce, as well as the manufacturing workforce of the future.” The second-generation eightspeed transmission has been a workhorse of the company’s powertrains since production began in 2012. KTP celebrated the 5 millionth eight-speed transmission built on Sept. 30. It is the current transmission option on the Jeep Wrangler, Gladiator and Grand Cherokee; Wagoneer/Grand Wagoneer; Ram 1500; Dodge Charger, Challenger, Durango; and Chrysler 300 models. Source: Stellantis

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Painters Supply & Equipment Expands in Michigan

Cars Worth $329K+ Stolen from Michigan Car Dealership

Painters Supply & Equipment Co. announced the acquisition of Westside Paint & Supply. Westside is a PPG platinum distributor headquartered in Bay City, MI, founded by owner David Royal in 1983.

quartered in Taylor, MI, PSE has grown to 51 branch locations and three distribution centers across Michigan, Georgia, Illinois, Indiana, Maryland, Missouri, North Carolina, Ohio, Pennsylvania and Virginia. PSE serves more than

by Steven Symes, Motorious

“We’re very pleased to welcome the Westside team to Painters Supply,” said Patrick Mayette, CEO of PSE. We’re looking forward to providing additional tools and resources to ensure the team’s future success.” “We are extremely proud to join the PSE team and excited about our future,” said Royal. “PSE’s high service model and strong regional presence made this a natural fit.” Founded in 1952 and head-

8,000 customers, including collision repair shops, auto dealerships, fleet operators and various other commercial, industrial, architectural and aerospace businesses. For more information about Painters Supply & Equipment Co., visit www.painterssupply.com. Source: Painters Supply & Equipment

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Four people have been arrested in Michigan after they were accused of stealing four Dodges from a dealership in Highland Township. The total value of those Dodges is more than $329,000 so it’s a big deal in the community. What’s more, one of the accused thieves is only 15 years old. The four vehicles stolen were a 2021 Dodge Durango Hellcat, 2021 Dodge Durango GT, 2017 Dodge Charger Hellcat and 2021 Ram TRX. Ok, so the Ram isn’t a Dodge, but most people still count them as Dodges and they’re in the same dealership, plus the TRX uses the Hellcat engine. After breaking into the dealership and gaining access to the keys, the four suspects reportedly drove all of the vehicles out the showroom by crashing through the glass wall. That’s not the least bit elegant, but we’re sure they thought it was cool at the time. Oakland County Sheriff’s Auto Theft Unit responded to the call from the dealership and launched an investigation. They were able to track down the Duran-

go Hellcat to a location in Birmingham, we assume using the factory GPS unit. Police found three men driving in the high-powered crossover, who then tried to outrun the cops, but the driver ended up crashing into a brick wall instead. Reportedly, the three men in the Durango Hellcat weren’t the original thieves. Instead, they paid the thieves $5,000 cash for it. Officers found $5,800 in cash, a handgun and a key fob reprogramming device in the crossover. The other three cars have also been recovered. Authorities say they’re working to identify the original thieves and bring them to justice. They believe the same people have been doing smash-and-grab thefts at gas stations in Waterford and White Lake. Car thieves love targeting dealerships these days, particularly Dodge dealers. Why dealers haven’t invested in more secure storage solutions for keys is beyond us, but for some reason their cost-benefit analysis must tell them paying more for insurance is worth not taking on the expense.

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Freer Auto Body in Godfrey, IL, Marks 30th Anniversary with Legacy of Community Service by Dan Brannan, RiverBender.com

It has officially been 30 years since Freer Auto Body began operation in Godfrey, IL. The shop had humble beginnings with David Freer and his grandpa, Arnold. David was a prime builder of the business at the start but died in a tragic car crash 13 years ago. David’s brother, Tim, and his wife, Carrie, mom, Margaret, and dad, Michael, have carried the business on to what it is today. The business started in 1991 fulfilling the dream of David Freer, then an 18-year-old Ranken Technical College graduate. The meager beginning included a 30-by-50-foot building. It has always been a family business with David, Tim, Margaret and Mike working boundless amounts of hours to ensure its success. Tim assumed the role as Freer Auto Body president in 2008, when David died. Carrie joined the office staff and Taylor and Lily Freer, Tim and Carrie’s daughters, often assist. The two girls are heavily involved in volunteer efforts throughout the year, especially

Community Christmas with Christmas In July. The business today has 17,000 square feet, a huge difference from the original 1,500 square feet start. They possess the most modern equipment and now have 20 employees.

“We have received the Captains of the Riverbend Award in 2004 and 2013 from the Riverbend Growth Association, Small Business of the Month in 1995, 2003 and 2011,” Margaret Freer said. “In 2011, we received the Golden Leaf Award from the Godfrey Women’s Club. Taylor and Lily have been recognized as United Ways outstanding community volunteers.” In 1999, Margaret received the Women of Distinction Award, and in 2011, Tim was a recipient of the first 20 Under Forty Awards.

“We have never forgotten our meager beginnings and attribute our success not only to hard work but to a community which has embraced and supported us,” Tim and Margaret said. Taylor is a senior in high school and Lily is a freshman. Margaret said both have always done their very best to carry on David’s legacy of giving and promote Freer Auto Body. Tim said “the industry has changed greatly over the last 30 years.” “Cars are more complex and training as essential,” he said. “We spend a great deal of money staying abreast of the new technologies. I was 15 when the business opened. I know David would be proud of our accomplishments. We are so blessed to have had the support of the community for so many years. We will continue to provide our customers with quality repairs and the very best customer service. Our customers are our greatest asset. “We have survived the last 30 years from hard work and providing quality repairs. We have a crew of 19 and they are the best in the industry. We are an I-CAR Gold Class facility,

GM, Ford, Infiniti, Nissan, Kia, Ford, Chrysler, Jeep, Fiat, RAM, Hyundai, Honda and Acura-certified facility.” “We have been good community servants,” Margaret said. “We give freely of our time and monies. We have painted fire trucks, Salvation Army bells, rescue boats, water buggies, plaques and other items free of charge used in our community on a daily basis. We serve on various community boards, host Cookies and Cocoa, and Taylor and Lily host Christmas in July, which raises thousands for Community Christmas. “We have held blood drives and hosted countless fundraisers for our local charities. We are a highly respected and ‘wreck-o-mended I-CAR Gold Class facility. We practice the Golden Rule in our business, treating people the way we would like to be treated. “While our contributions are many, we are most grateful for the ability to give. We are a close family and are closely connected to our community. The community has made us what we are today and we feel it is our civic duty to give back and help make our community a great place to live and work.”

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Service King to Open New Location in Deer Park, IL Service King Collision is preparing to introduce its streamlined, digital-first automotive collision repair services to the quaint village of Palatine, IL, when it opens a new facility at 20168 N. Rand Road in November.

Service King recently began construction on Deer Park’s 11,200-square foot auto body repair shop, located at the intersection of Rand Road and Lake Cook Road. Once completed, the new facility will feature modern finishes that highlight its state-of-the-art auto industry environment. “With 45 years of experience

leading the automotive repair industry, Service King is proud to extend its services to Deer Park and its surrounding communities,” said Service King Director of Construction and Development John Gageby. “We look forward to putting Deer Park locals and visitors alike at the center of an efficient, technologically advanced vehicle repair experience with our best-in-class services.” In the weeks ahead, the new facility will seek up to 12 individuals to join its team in delivering exceptional customer service. Interested candidates are encouraged to apply by visiting careers. serviceking.com/jobs. When Deer Park’s first Service King opens, it will mark the 34th facility in Illinois with more than 300 locations systemwide. To learn more about Service King, visit serviceking.com. Source: Service King

CARSTAR Ideal Auto Body of Illinois Blown Away by Golf Outing Success For CARSTAR Ideal Auto Body of Mount Prospect, IL, a windy day on the golf course left them blown away by the support from and engagement with the community at the Mount Prospect Chamber of Commerce Golf Outing. On Sept. 23, nearly 100 members of the Mount Prospect Chamber of Commerce attended the Chamber Golf Outing, where CARSTAR Ideal sponsored a hole for the eighth consecutive year. In addition to the tent and signage at the first hole, CARSTAR Ideal hosted the CARSTAR “Slam Dunk” putting contest, in which 16 of the contestants succeeded in sinking the 10-foot putt. Rob Irmen, manager of CARSTAR Ideal, was there to shake hands with the chamber dignitaries and distribute tees, snacks, soda and bottled water. “This event is always a great way to connect with our community,” said Irmen. “Even the 40 mph wind gusts could not deter the enthusiastic duffers. We love to hear stories from the Chamber

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Ohio Has Multi-Million-Dollar Car Theft Problem by Steven Symes, Motorious

A recent investigative report conducted by 19 News out of Cleveland uncovered a shocking fact: over the past five years, cars stolen and recovered in Ohio have totaled $72.6 million in costs. That’s an average of more than $14 million per year. Just as revealing is the fact the average cost per stolen vehicle which is recovered is $10,000 in Ohio. Keep in mind those figures don’t take into account all the cars which are stolen and never recovered. Thanks to the work of law enforcement, recovered vehicles over the last five years have totaled 7,169 in the state. More concerning in the report is something Sgt. of the Ohio State Highway Patrol said: while some of the stolen cars are the work of criminals just seeing an opportunity, some are stolen by “a bigger criminal enterprise.” We’ve noticed in covering stolen vehicles all over the nation many of the car thieves seem to be unusually organized and

trained. Recently, we highlighted a surveillance video out of Chicago where a whole crew in three different vehicles showed up to steal a Dodge Hellcat. Many times, these thieves are reprogramming the ignition to accept a new key they’re carrying, so these aren’t smash-and-grab operations.

Credit: 19 News Cleveland

Unfortunately, the investigative reporter didn’t dig further into this aspect of the stolen car crime wave sweeping not only Ohio, but pretty much everywhere. Just who is behind this? What are they using the money generated by

GEICO to Significantly Hike Auto Insurance Rates in Illinois by Lyle Adriano, Insurance Business

GEICO is set to raise auto insurance rates in Illinois by more than 6% on average—one of its highest rate increases in the state in the last six years.

It was noted GEICO had also attempted to raise rates in Connecticut, but the plan fell through. Speaking to local news station WTTW News, Crain’s Chicago Business reporter Danny Ecker explained other states have insurance regulatory bodies that can reject insurers’ rate increases.

“We don’t have that here in Illinois,” said Ecker, adding those other state regulators who rejected GEICO’s hikes said the company had a “huge windfall” in 2020—a time when people were driving less and making fewer claims. “And yet GEICO didn’t discount their rates, while others like State Farm, Allstate and Progressive did,” the reporter added. GEICO’s auto insurance policyholders in Illinois will be looking at rather steep premium increases later this year. “GEICO auto insurance customers [in Illinois] should expect, on average, an increase of $100 per year, per car. Which obviously doesn’t look great when you have a company that markets itself as a money-saving alternative to the other big insurers,” Ecker said. The rate increases come into effect this December.

selling or parting out stolen cars to do? Why hasn’t federal law enforcement been able to crush these operations decisively? Speaking of federal law enforcement, we’ve also covered car theft rings getting taken down both in the U.S. and Canada recently. However, it seems any relief provided by taking those criminals off the street is only temporary. While we’d love to have more answers, the big takeaway is that if you have a desirable car, whether it’s a cool classic or something more modern, you need to take extra steps to secure your ride. That could involve parking it inside day and night, installing a kill switch, using extra tracking devices, cameras and alarms installed in your garage, etc. The thieves seem to be organized and quite determined, so what worked five years ago might not deter them today.

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GM Building Pre-Production Hummer EVs at Factory ZERO, Hiring to Follow by Jamie L. LaReau, Detroit Free Press

The assembly line at General Motors’ Factory ZERO has started rolling even as the automaker continues plant construction, which it says will be “ongoing” for a period of time to prepare for more vehicles to be built there. The initial vehicles coming down the line now are 2022 GMC Hummer all-electric pickups. They are pre-production models, not for public sale yet. But GM will start building sellable models at Factory ZERO soon, union and GM officials said. The plant, located in both Detroit and Hamtramck, MI, has been undergoing $2.2 billion in retooling for 18 months so that GM can build all-electric vehicles there by year end. “We’re doing a lot of building of the Hummer now,” UAW Local 22 President Wiley Turnage told the Free Press on Oct. 11. “We’ve still got construction going on. But they have a few of them on the streets now.” Local 22 represents the plant’s hourly workforce. About 435 work-

Continued from Cover

Selling Headquarters headquarters at this time. Bloomberg reported Oct. 15 a buyer is already in place. Vasquez said an internal announcement was made Oct. 15, but didn’t provide Patch with any specific details. Earlier in October, Allstate sold Allstate Life Insurance Company of New York to Wilton Re for $400 million. The sale closed Oct. 1. This transaction, along with the previously announced agreement to sell Allstate Life Insurance Company and certain affiliates to entities managed by Blackstone, will complete Allstate’s exit from the life and annuity businesses.

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ers at the plant are making the pre-production models, confirmed GM spokesman David Barnas. “We are on track to deliver the first GMC Hummer EVs to customers by the end of the year,” Barnas said.

Detroit-Hamtramck Assembly is now Factory ZERO, serving as the “launchpad” for GM’s multi-brand EV strategy, GM announced Oct. 16, 2020, at an unveiling at the plant in Detroit. Credit: Kimberly P. Mitchell, Detroit Free Press

GMC has about 10,000 pre-orders for the Hummer EV pickup, which starts at $112,595 for Edition 1. GM has said it will eventually employ 2,200 people at Factory ZERO, but it is unclear when it will start hiring.

“Moving forward, we will ramp up employment through 2022 as we increase production,” Barnas said. First, the union wants to bring back those workers who had staffed the assembly line previously. “Right now, we have 140 people that are laid off that have recall rights,” Turnage said. Recall rights means when GM idled the factory last year, those 140 people chose to either not transfer to another GM plant permanently or did not retire. Therefore, they were laid off and will be recalled to work at Factory ZERO when it restarts. About 130 workers retired and 684 workers transferred to other GM plants such as Flint Assembly or Fort Wayne Assembly in Indiana, union leaders have said. Those workers with recall rights will likely return in the first quarter, Turnage said. “After that we’ll have to see how many people we’ll need,” Turnage said. “We’re not doing any hiring now because we have people on layoff. We’re going to need people, but it’s hard to say how fast and how often we’ll be bringing people in.”

Barnas said after GM launches the Hummer EVs, it will be retooling Factory ZERO in preparation for the production of more vehicles. In 2018, GM said it would permanently close the facility. But during the 2019 UAW contract talks, amid a 40-day nationwide strike, GM agreed to refit it to build EVs. On Feb. 27, 2020, the last Chevrolet Impala sedan rolled off the assembly line. GM has since designed a plant that it says will be one of the most advanced in the world, full of firsts. For instance, it will run on 5G wireless technology, which allows robots, machines and computers to talk more smoothly with each other. Besides the Hummer pickup, GM will build the self-driving Cruise Origin, the 2023 Hummer SUV, which will start at $105,595 for Edition 1, and the Silverado E electric pickup at Factory ZERO. GM is not providing a launch date for the Silverado E, but last week GM President Mark Reuss said the vehicle will start production after the Hummer SUV starts production in the first quarter of 2023.

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Menard Classic Car Collection to Be Auctioned Oct. 2 The Larry and Dawn Menard collection of rare and classic cars, gas station signs and other petroliana, fine pickup trucks, vintage motorcycles, antique tractors, more than 300 pieces of memorabilia and more will be auctioned Oct. 2 in the Expo Building of the Northern Wisconsin State Fairgrounds, at 225 Edwards St. in Chippewa Falls, WI. The auction has a start time of 9 a.m. CT. Gates will open at 7 a.m. “We hope everyone can come and bid on a chance to own one of these fabulous collector cars and more,” said Yvette VanDerBrink of VanDerBrink Auctions, the Minnesota auction house conducting the sale. “But even if you can’t attend in person, you can bid online.” Folks in the Midwest will instantly recognize the Menard name. Menard’s is famous throughout the region as a hardware store chain that sells everything from birdseed to lumber. For years, Larry Menard was the face of the company and could be seen at stores, giving sales and product seminars. His recent death led his wife Dawn to made the tough decision to sell their collection.

Larry grew up on the family farm in Eau Claire, WI, and learned hard work at an early age. He enjoyed cars, speed and their styling, and was just 12 years old when he sold his 4-H calf with the idea of buying his first car, with help from his Uncle Ed. Larry had heard a neighbor had a 1935 Ford slant black sedan for sale. He promptly bicycled over and bought it. So, at age 12, he proudly drove that car home, his bike in the trunk, and when he got there his father asked him, “Did you get the title?” Larry had been so excited about getting the car, he’d completely forgotten about the title. But the experience convinced him he was a dealmaker who was destined for a life in sales, and he vowed then to start collecting rare old automobiles. Larry’s father didn’t want his sons, Larry and John, to spend their lives farming, and he began a family business, building pre-fab buildings. He gave the boys the first building, which they used to sell lumber out of a boxcar. That modest beginning, of selling lumber and pre-fab buildings, eventually became Menard’s—everything under one roof for all one’s

building and home needs. When Larry was still in high school, he hung out with a friend and kindred spirit who also loved cars and had a sister, Dawn. The two never dated back then, but years later they were reintroduced at the Menard’s

This 1963 Chevy Corsair ramp-side pickup is among the lots to be auctioned off.

store in Eau Claire by Dawn’s daughter. A strong connection was quickly established and the two became soulmates. It turned out Dawn loved old cars too. Larry and Dawn embarked on a life together centered around their rapidly growing car collection—and work of course. They loved to go to cruises with car buddies. They nev-

er missed Back to the 50s and Good Guys car shows. They had a list of cars they looked for and actively sought out. One was a 1935 Ford, since that was Larry’s first car. They loved “the hunt.” Eventually, the collection expanded to include not just classic cars but other American classics: gas pumps, porcelain signs and many items of petroliana and memorabilia. A collection became a museum. Larry and Dawn’s adventure continued for many years along the road of life, through all the twists and turns they encountered, leading up to Larry’s death and Dawn’s decision to sell. An open-house preview will be held the day before the auction, 10 a.m.-6 p.m. Oct. 1, at the Northern Wisconsin State Fairgrounds. Masks are recommended but not required for the open-house preview. For more information about the sale of the Larry and Dawn Menard collection, including a list of lots, visit https://www.vanderbrinkauctions.com/auction/the-larry-dawn-menard-collection-collector-cars-memorabilia-more/ Source: VanDerBrink Auctions

Crash Champions Adds 4 Locations in Wisconsin and Idaho Crash Champions, LLC, one of the nation’s fastest growing independent collision repair companies, announced Oct. 4 it has acquired Wisconsin’s Pulera Collision Center, located at 7110 70th Court in Kenosha, and Idaho’s First Choice Collision Repair, consisting of three locations across the Boise metropolitan area. The addition of Pulera Collision follows the company’s other 2021 acquisitions in the region, including D&M Auto Body, Milwaukee Collision and two Quality Auto Body repair shops. The addition of First Choice represents the company’s first expansion in Idaho after initially entering the market earlier this year with the acquisition of Coachman Auto Body. “These two transactions will be terrific additions to Crash’s growing footprints in Wisconsin and Idaho,” said Matt Ebert, founder and CEO of Crash Champions. “Pulera Collision is a standout in the Chicago-Milwaukee corridor, having been selected multiple times as a Best of Kenosha

County winner, and First Choice has grown to three locations thanks to its talented professionals and an unwavering dedication to its customers. “Like Crash, both organizations share our commitment to delivering high-quality repairs and first-class service, and I am confident that we can deliver even greater value to these customers and communities as part of the Crash Champions family.” For more information about Crash Champions, visit www.crashchampions.com. Source: Crash Champions

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Michigan to Have Nation’s First Electrified Road to Wirelessly Charge EVs, Governor Says by Eric D. Lawrence, Detroit Free Press

Imagine being able to charge an electric vehicle without stopping to plug in. It’s the kind of technology that could help ease worries like range anxiety and could really boost the transition to electric vehicles. Michigan could have the first wireless charging infrastructure on a public road anywhere in the country, although the state is likely to be challenged to meet that goal because Indiana is already preparing to test such technology. It’s the idea behind a new initiative that Gov. Gretchen Whitmer announced Sept. 21 as she helped open Motor Bella, this year’s alternative for the North American International Auto Show being held this week at the M1 Concourse in Pontiac. A one-mile stretch of road somewhere in Wayne, Oakland or Macomb counties will be picked to host the Inductive Vehicle Charging Pilot. The Michigan Department of Transportation is planning to issue a request for proposal on Sept. 28. It’s not clear how the technology would work, how soon the pilot project would be operational or how much it might cost, although this type of advance has been discussed by experts as one possible future for EV charging and testing has been tried in Europe. The Indiana project would use magnetizable concrete to enable wireless charging of electric vehicles, according to an Indiana Department of Transportation news release. Scott Manning, an INDOT spokesman, said the in-pavement wireless charging project in that state was launched in July, and is currently being installed at a research facility in West Lafayette, IN. “We expect to reach the second phase of the project, testing on a public roadway within one to two years,” Manning said, noting offi-

electric vehicle deployment, according to Trevor Pawl, chief mobility officer with the state’s Office of Future Mobility and Electrification. “This electrified roadway has the potential to accelerate autonomous vehicles at scale and turn our streets into safe, sustainable, accessible and shared transportation platforms,” Pawl said in a news release. Whitmer’s announcement came during remarks as Motor Bella was opening. The event, although connected to Detroit’s auto Michigan Gov. Gretchen Whitmer learns about the features shows of the past, is a sigin the F-150 Lightning from Ford’s Dapo Adewusi at Motor nificant departure from the Bella in Pontiac, MI, on Sept. 21.Credit: Eric D. Lawrence/ Detroit Free Press show that used to be held downtown every January. relations official helping with the There are vehicles on display, but Whitmer announcement, said Mich- the highlights are more experiential igan’s request for proposal would with various ride events. effectively jump ahead of Indiana’s Press and industry events were plans, directly to the public road being held the next two days, and phase. then the show opened to the public Following her announcement Sept. 23-26. Sept. 21, Whitmer noted the significance for this type of project. “We’re rebuilding infrastructure in Michigan. Orange barrels are everywhere. It’s important that we’re rebuilding, but we’re doing it in a resilient way that supports advanced technology,” Whitmer told reporters, noting the wireless charging project is crucial to meeting the needs of fleets. In a statement later, Whitmer pointed to Michigan’s past as well as its future. “Michigan was home to the first mile of paved road, and now we’re paving the way for the roads of tomorrow with innovative infrastructure [that] will support the economy and the environment, helping us achieve our goal of carbon neutrality by 2050,” Whitmer said. The potential to charge electric buses, shuttles and other vehicles on the road without having to stop could do more than just help with cials there were not aware of any other similar projects under way in the U.S. when they were researching it. When asked about Indiana’s project, Shelby Austin, a public

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After the opening, Whitmer, along with Oakland County Executive Dave Coulter, toured display areas set up by General Motors, Stellantis, Toyota and Ford, checking out various rides and learning about some cool features. Whitmer sounded disappointed when an aide told her liability concerns would keep her off the dramatic Ford Bronco ride that features a Bronco rolling up a track that appeared to be lifted by hydraulics to simulate a large hill, part of the effort to show off the vehicle’s offroad chops. At the Stellantis area, she also got a look at the new 2022 Jeep Grand Wagoneer, being built at the company’s Warren Truck Assembly. Hearing the front seats in a model featuring the Blue Agave interior include a massage function, she said she “might just take a nap.” She also let it be known she’d wrecked her parents’ Wagoneer when she was 17, and unlike this bright white, modern version, it was, in fact, a woody.

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Continued from Cover

Unite to Form Enlyte doing to bring our family of businesses even closer together,” said CEO Alex Sun. “Uniting our teams under Enlyte will make it easier for us to help customers manage costs while delivering quality service with an expansive collection of Mitchell, Genex and Coventry solutions from first-notice-of-loss to recovery.” The launch of Enlyte includes the creation of a Customer and Market Operations team, which will bring together the casualty sales, client services and marketing teams from all three organizations. The new team will be led by Nina Smith, who currently serves as executive vice president and general manager of Mitchell’s Casualty Solutions Group (CSG). “I am excited about the opportunity to work with my colleagues to create unprecedented value for our clients and the P&C market,” Smith said. As the casualty Customer and Market Operations team from all three businesses is organizing under a

single group, the Mitchell Auto Physical Damage group will continue to develop and offer the Mitchell-branded suite of solutions as they do today, dedicated to superior service and expertise in collision repair and claims. “We are proud of our legacy brands and the teams behind them,” said Sun. “Each of the three companies will continue to develop and grow the branded solutions that our customers know, with the same collaboration and quality they trust.” The changes were shared Oct. 12 with an invite-only audience of Mitchell, Genex and Coventry customers at the 2021 Virtual mPower Conference. Attendees were given a first-look at the new brand, and heard directly from Sun and other leaders about the new organization and the promise of a future united. “Aligning under a single, unified brand, while keeping the greatness of our legacy companies, reminds us that we must continue to deliver on our strategic vision of bringing an ever-expanding set of capabilities that positively impact claims outcomes,” Sun said. Source: Enlyte

Gerber Collision & Glass Acquires Center in IL The Boyd Group Inc. announced the acquisition of a collision repair center in Burbank, IL. This repair center operated as Millennium Auto Sales & Repair and has provided service in this market since 2005. Burbank is approximately 15 minutes south of Midway Airport with a northern border near Chicago. “We welcome this experienced team that is focused on high-quality repairs and outstanding service,” said Kevin Burnett, COO of Gerber Collision & Glass. “This acquisition expands our footprint in Illinois and will strengthen our ability to further assist our insurance partners and customers in this region.” The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Jason Hope, vice president of business development and strategic projects, at (530) 774-3887 or jason. hope@boydgroup.com. Source: The Boyd Group Inc.

Continued from Cover

Who Pays for What? ing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online (https:// www.crashnetwork.com/collisionadvice). Source: CRASH Network

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Rivian to Establish Service Support Operations at Plymouth, MI, Facility, Creating 100 High-Wage Jobs Gov. Gretchen Whitmer joined the Michigan Economic Development Corporation (MEDC) on Sept. 23 to announce Rivian, a manufacturer of all-electric adventure vehicles, is establishing its new Rivian Service Support Operations facility in Plymouth, MI, creating 100 new high-wage jobs and investing $4.6 million into the Plymouth facilities with support from the Michigan Strategic Fund. This announcement comes on the heels of Whitmer launching the MI New Economy plan the same week, as well as various electrification announcements that demonstrate Michigan continues to be the epicenter of future mobility and electrification solutions. “This investment by Rivian will create 100 high-skill jobs as we work to grow Michigan’s economy, create good-paying jobs and build the industries of the future,” said Whitmer. “This state-of-theart facility reinforces our reputation as a leader in both customer service and the future of mobility and electrification. We’re excited to welcome Rivian’s new ser-

vice support operations to Michigan and look forward to working together to grow and add jobs for Michigan residents in the future.” Rivian is experiencing significant growth and plans to support all Rivian owners out of the new Service Support Operations Center at its offices in Plymouth Charter

American Rivian owners with vehicle questions, roadside requests and service scheduling needs. As a result of the total capital investment and job creation, the company has been awarded a $750,000 Michigan Business Development Program performance-based grant. Michigan was

“This investment by Rivian will create 100 high-skill jobs as we work to grow Michigan’s economy, create good-paying jobs and build the industries of the future,” — Gretchen Whitmer Township. The state-of-the-art, highly technical service support operations center includes a $4.6 million investment into the Plymouth facilities, and the center will create 100 new high-wage jobs for both business-to-business and business-to-consumer service. The facility will provide around-the-clock assistance by the Rivian Roadside and Service Support team to North

chosen for the project over competing sites in other states. The project will further boost Michigan as the global leader in the future of mobility and vehicle electrification and will bring immediate, good jobs to area residents. Rivian provides advancement opportunities to its employees after six months of employment, as well as training programs and tuition reimbursement, child-care as-

sistance and other benefits. The project also supports Michigan’s rich and diverse mobility ecosystem, which, along with key jobs in engineering, R&D and professional services, also features the largest deployment of vehicle-to-infrastructure technology in the nation and more than one-sixth of the entire U.S. auto production. Rivian owners will be able to interact with the center digitally or by phone. To apply for a job at Rivian, visit Rivian Careers. Plymouth Charter Township has offered to assist the company with finding candidates for the newly-created positions. In 2015, Rivian announced plans to establish a research and development center in the city of Dearborn, a project that generated a total capital investment of $29.5 million and created approximately 170 jobs. The project was supported by a $1.77 million Michigan Business Development Program performance-based grant. Source: The Office of Gov. Gretchen Whitmer

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Shop Strategies with Stacey Phillips

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

Marketing Effort at Tony’s Body Shop Pays Off

Body Shops Giving Back

a long time ago. When I moved to Tony and Isabel Flores opened To- learned a lot. I encourage people to leave this building 15 years ago, it was ny’s Body Shop in Oxnard, CA, in their cubby or shop and go some- twice the size of my prior location 1965. Considered to be hard-workwith Stacey Phillips ing business people by their friends where to sit in a classroom and and I wanted to ensure all of my past and family, the couple taught their learn. By talking to industry partici- customers knew we moved. I didn’t children good work ethics from an pants and touring shops, it helps you want to lose my customer base. I’m build a better business. Business is no different than an insurance comearly age. pany that wants customers Their son, Jay, found they were to renew and re-sign their struggling financially and began with Stacey Phillips policy. I’m looking for cusworking at the small mom-and-pop tomers to come back and shop after graduating from college. tell their family and friends He now operates the family business about us. with his wife, Evelyn, their children, I’ve been successful with Jayson, Jaycob and Jasmine, Jay’s it so I’ve kept it going. My older sister, Maria, and his cousin, father was once told by a Adrian. with Stacey Phillips man in Argentina that if The family business is located you do the best job you can about two miles from where it origi- Tony’s Body Shop is located in Oxnard, CA, about two miles for the car you are working nally opened more than 50 years ago, from where it originally opened more than 50 years ago on today, don’t worry about and the Floreses pride themselves on providing a quality repair to custom- business; it doesn’t matter if you sell where the next car is going to come pizza, work in a janitorial company from. In essence, he meant that if ers by following OEM procedures. Autobody News talked to Jay or in collision repair, you need to un- you do a good quality job, you’ll alwithsmall Victoria Antonelli derstand basic accounting. ways be busy. It’s a very basic conabout the challenges businesses face and how Tony’s Body Shop Why is it important to create has been successful through its mara business or marketing plan? keting efforts.

Tips for Busy Body Shops My SEMA

Shop Strategies

Q: A:

cept but so true.

In addition to television, what other types of marketing have you found helpful?

There’s no silver bullet. There are many facets. As the writer Tom Franklin said, “The spider that weaves the largest web catches the most flies.” In marketing terms, it simply means that the shop that “weaves the largest web” will capture the most business. One area where the majority of shops get an “F” is having a really good website. It seems everyone you know can build a website but people who truly understand SEO are hard to find. A professional website should include a blog or content about your business, make it easy to find the address and phone number and look good on a phone, tablet and

Q: Product Innovation A: with Ed Attanasio

Many businesses struggle because they have no business plan or marketing plan. They haven’t One of the biggest issues sat down and thought things through I see in the industry is that and don’t have accurate knowledge business owners truly don’t under- about what it takes to operate a sucstand financials and know if the boat cessful business. In order to survive in business, is sinking or floating. They don’t understand their true costs to operate you need a marketing plan. How with the Gary so they may be giving farmLedoux away else are you going to bring people to your front door? There is no such and not even know it. About 20 years ago, I joined the thing as luck. It’s hard work and AkzoNobel Acoat Selected program planning. You’ve either written a to learn about financials. I was ed- marketing plan and are successful, ucated about profit and loss state- or you failed the plan and are strugments, balance sheets and writing gling. Staceyplan. Phillips I recommend writing a twoa business plan with and marketing The program really helped me and page marketing plan outlining how I’m still part of it today. It allows me you are going to get customers to the to meet with other shop owners and front door. Marketing is like a diatalk about what’s happening with the mond that has many facets. industry so I know what I need to do What types of marketing to stay current. I also participated in the 3M ARMS with Mike Anderson have you implemented at Tocourse, which is an older class that ny’s Body Shop? talked about capturing jobs when they I started using television as come to your door and basic busipart of my marketing plan ness practices. It was awesome and I What challenges are small businesses facing right now?

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32 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

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Overall, it’s important to make customers happy so they tell others about the great service they received and write a good review about it. The majority of time customers are good people and if you do a good job and make sure the car is repaired correctly, that customer will tells his or her family, friends and coworkers about their experience. I have built a tremendous following in Ventura County where I am located. In one of my commercials, we say, “Ask around. Ask your friends and neighbors The family business is run by Jay Flores, his wife, Evelyn, where the best place is to their children, Jayson, Jaycob and Jasmine, Jay’s older repair your car.” I can pretsister, Maria, and his cousin, Adrian ty much guarantee if not all writing thank-you notes to custom- three, two out of the three will point ers, spending time doing follow-up you in my direction. That doesn’t phone calls to ensure they had a happen overnight. It takes years of good experience and giving them a effort and includes everything from treat when you deliver the car. We how you answer calls, to how you give customers a bag of peanuts with repair and deliver the car. a tag that says, “Courtesy of Tony’s Body Shop.” We take a proactive What advice do you have approach because we want our cusfor shops as future vehicles tomers happy and coming back. evolve? Having good reviews is very important. People looking for a As time passes and a totaled body shop are going to Google you car is replaced with an ADAS and my business philosophy is that vehicle, I believe the claim count is customers are always right even if going to be less. As a result, shops they are wrong. You want customers owners need to focus on their capcoming back to your business and ture rate and ensure they are spendtelling others about it. Of course, ing time with customers up-front to there are exceptions when a custom- make sure all their questions and er is too hard to deal with but that needs are handled. doesn’t mean you have to fix that car A lot of people fail to write a the next time. marketing plan because they are on computer. I found it really helpful to have access to my website so I can fix an error and add content without being held hostage by a company. Marketing your business can even include simple things like

ASA Charts Next Steps on its Reorganizational Path At the end of September, the Automotive Service Association (ASA) announced it is transitioning to a new and innovative association model leveraging its expansive history to create a single, unified industry voice. Under the new model, a 50-state regional structure will take place to represent every member with one voice. As the next phase in that announcement, ASA unveiled its new organizational map of the U.S. To see the new regional map, visit https://www.asashop.org/asa-re-

gions/ In addition, ASA accepted resumes for the various regional director positions through Oct. 8. “We’re extremely excited about the new direction, the future of ASA and the opportunities it will provide for our members,” said Ray Fisher, AMAM, president and executive director. “We are seeking successful leaders who will provide excellent servant-leadership to our members.” Source: Automotive Service Association

34 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

DRPs that refer work to the shop. The challenge is that DRPs have evolved. In my experience, DRPs used to allow shops to provide a safe and proper repair. However, with cars like Tesla and all of the ADAS features in new vehicles, the cost of repairs has skyrocketed. I’ve found that the goal of most insurance programs is to minimize repair cost. That can be challenging

Shop has removed itself from most insurance programs that do not commit to OEM guidelines. The John Eagle Collision Center lawsuit in 2017 changed how auto body shops do business. We are held liable for all the repairs we perform, even after the car is sold and ownership transfers. In today’s world of complex cars geared to crash avoidance and occupant safety, a safe and proper repair following OEM repair procedures is the only way to continue to stay in business. Returning a car to its pre-accident crash worthiness for the safety of the customer and their family is our only option. This is why Tony’s Body Shop has chosen to be certified by many differThe team understands the importance of assisting ent vehicle manufacturers. customers with the claims process I often ask people if they with you have a car with ADAS fea- would repair an airplane or rebuild tures. Inherently, it can be viewed its engine without following the as two competing goals: lowest cost manufacturer’s repair procedures. possible versus highest safety pos- Of course not; people’s lives are at sible when OEM guidelines are fol- risk. Then why is a car any differlowed. For this reason, Tony’s Body ent?

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parts@gandrud.com autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 35

From the Desk of Mike Anderson with Mike Anderson

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

Auto Body Shops Can Take Control of Credit Card Processing Fees It came as no surprise to me our “Who Pays for What?” surveys have found the vast majority (95%) of collision repair businesses accept payment from customers by credit card. All of us as consumers have become accustomed to the convenience of using credit cards, and enjoying the rewards—cash back, travel points, etc.—we can receive by paying our bills with them. But have you stopped to look recently at what it’s costing your business to offer that convenience to your customers? Have you looked into what your options are for reducing or eliminating those costs? Now you might think I’m talking about shopping around among the hundreds of merchant processing options out there, most of which are all too eager to assure you they will meet or beat your current processing fees.

That is one option. But let’s look at some ways you might be able to trim your card processing costs without switching vendors. It’s a project one of my Collision Advice teammates, Mark Head, spearheaded this year. He’s a true financial specialist, working with our Collision Advice clients to dig into their profit-and-loss statements and really make sure they understand how to maximize their profitability and where they need to focus their attention. Mark first contacted our clients who are members of our “20 groups” to find out what the true cost was of their card processing, meaning the fees they were incurring monthly. As you’re probably aware, card processing fees can vary significantly. Some are based on a flat percentage. Some include a percent-

age plus a per-transaction fee. Some vary based on the type of card (Visa, MasterCard, Amex, etc.). Some differ based on whether the card was present at the time of the transaction versus a remote transaction. Did you know that? I sure didn’t! So Mark had our clients tell us which processing service they use—there were almost two dozen different vendors—and had them all use the same basis to determine their processing costs: divide the total fees paid in a given month, by the total sales dollars paid via credit card for that month. The bottom line on processing fees? “It ranged from a low of just above 1.5%—1.64%, to be exact--to more than 4%—4.2%, in fact,” Mark told me. “This is often an ‘unknown cost’ for a lot of shops. They know they pay something, but have

never really taken a close look at what it’s costing them to offer their customers that convenience. That’s what I wanted to point out to them: is it worth giving up 3 or 4% of the bill to allow customers to pay with a credit card versus cash or a check.” Remember this percentage erodes your bottom line! So what can auto body shops do about this cost? First, they may want to place a limit on the dollar amount a customer can pay using a credit card. Say a customer’s vehicle is in for a $3,500 repair, including their $1,000 deductible. Do you allow the customer to put the insurance payment into their own account and pay the whole $3,500 on their credit card? If so, you just paid $105 (if you pay a 3% processing fee) for that transaction. But what if you placed a cap of $1,000 on the amount the customer

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can pay by credit card? They still get the convenience of paying their deductible by credit card, but you paid only $30 in credit card processing fees because the insurance portion of the bill wasn’t included in the credit card transaction. In this example, the shop saved $75; multiply that by the number of credit card transactions you have per month, and it adds up to real money. There’s some indication a growing number of collision repair shops are placing such limits. One of our “Who Pays for What?” surveys in 2020 found 76% of shops had no such limit. This year, the survey found that had fallen to 61%. Limits of either $1,000 or $2,500 were the most common. But you might also consider under what circumstances you accept payment by credit card. Some insurance companies have pressed their direct repair shops to accept payment from the insurer by credit card. Shops that recognized what that 2% or 4% off the bottom line could mean for their business often found they were successful in requesting other forms of payment from the in-

surer. Some of those shops also said the insurance company allowed them to add the credit card fees to the amount they were being paid. I’ll discuss this later in this column, but I want to note here that is not something we confirmed ourselves, and neither Mark nor I are offering any legal advice here. But here’s another scenario Mark and I have been hearing about: tow companies who want to pay the bill at the shop by credit card when picking up a total loss vehicle. I just have to scratch my head thinking about any shop agreeing to that, particularly when our “Who Pays for What?” surveys consistently show more than half of shops are not marking up tow bills—that’s a topic for another column. When that tow truck driver pays that bill with a credit card and you’re not marking up the sublet tow charge, you’re not only not making any money on that tow, you’re actually losing money—the 2% or 3% or 4% you’re paying in credit card processing for that transaction. That just makes no sense.

So those are some ways—aside from shopping for lower processing fees—to limit or reduce how much accepting some payments by credit card is costing your business. But Mark also did some more digging into some other cost-saving possibilities for shops. “We found some processors allow a shop to offer what’s called a cash-discount program,” Mark said. “It implements a service fee on all customers, while giving a discount to the customer who pays in cash or check.” There’s an important caveat, Mark said: such a surcharge is not legal in 10 states, including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma, Texas and New York, though we heard recently that may change in New York. But here’s how it can work in the other 40 states. “First, you have to post signage in your office or lobby or customer area explaining that all final bills include a 4% surcharge, for example, on top of the total bill,” Mark said. “The surcharge should be whatever percentage you actually pay in fees.

And you need to tell the customer up front. That’s very important.” It’s easy for a customer to avoid paying that surcharge: they just need to pay their bill with cash or a check. Basically, the credit card fee shows up on the customer’s end, not the shop’s; therefore the shop isn’t paying a fee. Mark’s presentation on this was a real eye-opener for a lot of our auto body shop clients who really hadn’t realized, first, how much credit card fees were eroding their bottom line, and second, that they had options. I’m so grateful to him for doing this research and being able to point our clients to some of the processors offering the cash-discount program if they are eligible to use it in their state. “As shop owners, you always want to grow sales, but you need to keep an eye on costs as well,” Mark told them. He’s the kind of “numbers guy” I’m thankful to have on my team.

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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 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.

Changes Ahead for Collision Repair Shops Based on AI, New Automotive Finishes

Shop Showcase

The impact for collision repairers tated as to what an appraiser needs of artificial intelligence (AI) and to review—while the balance will changes in automotive finishes were require being handled “old school: with Ed Attanasio among the topics discussed by pre- have it towed, take the car apart and senters at the Collision Industry go classic blueprinting.” Electronic Commerce Association (CIECA) conference held in September in Nashville. Jimmy Spears, head of automotive for Tractable, said the with Edcompany’s Attanasio AI (machine-learning) system has become adept at quickly determining from photos if a vehicle is a total loss. “One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of callPaint company representatives say auto body shops will increasingly need to take potential ing balls and strikes: Is this car rewith Ed Attanasio refinish issues into account early in the repair pairable or is this car not repairable.” planning process For insurers, he said, the system can produce 40% of initial estimates About a year ago, Tractable “without any further line items” announced it was working with an needing to be added. An equal per- insurer in Spain to offer “straightcentage require review of one or two through processing” of some claims, with Ed Attanasio line items---with the estimate anno- such as single-car accidents with no

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injuries; the customer uploads images, the Tractable system prepares an appraisal and “between eight and 15 minutes later,” the claim is paid and “as far as the consumer knows, is closed.” Spears compared it to ordering and paying for a drink at Starbucks via an app and just picking it up, versus going in to order and pay and then waiting for the coffee drink to be made. “I’d really like to see the U.S. start to do more of that” type of auto claims processing, Spears said. He acknowledged while AI may be reducing upfront time for insurers to produce initial estimates, it isn’t resulting in more accurate estimates. “Supplement rates are still the same. That doesn’t change,” Spears said when asked about even those single-car accident claims. “That’s probably one of the things to think

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about: just because you have AI, it doesn’t mean that you’ve managed to make a supplement go away. If there’s something behind that [bumper] cover that’s damaged, it’s going to be damaged. But it’s better not to write [for that] and assume it. But no, supplement percentages aren’t any lower.” During another panel discussion at the CIECA conference, paint company representatives laughed when asked if the industry is close to AI helping with refinish color matching. “It’s a fair question,” said Dan Benton, global product director of color marketing at Axalta Coating Systems. “We’re chuckling because no, we’re not. There’s just so many variables.” Jeff Wildman, the North American manager of OEM and industry relations for BASF Automotive Re-

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finish Coatings, agreed, noting even just spray technique, let alone paint formula, can influence color match. “I can give three people the same exact paint, and the same exact gun, and they’ll spray and we’ll get three different colors, because of that human variable,” Wildman said. Colors are not going to get easier for shops to match, Wildman predicted. Some new vehicle manufacturers, for example, seem less concerned about addressing refinish issues upfront. “I can tell you they are looking at colors…that are not easy to spray at the OEM level or at the refinish level,” Wildman said. “But their designers want these colors. As they’re now starting to paint some of these at the factory, they’re learning: ‘You aren’t kidding, these are difficult to paint.’ So they’re struggling at the factory, and we’re going to struggle in refinish with them. But they want these colors because color sells cars.” Even some “legacy” auto manufacturers, “trying to differentiate themselves using color,” sometimes haven’t shared enough information

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ahead of a vehicle’s launch to allow all the refinish systems to be prepared. “Mazda beat us all up pretty badly a couple years ago with some really tough colors, a red and a gray,” based on innovations in pigments and application, Benton said. “With U.S. and Western European auto manufacturers, there’s typically dialogue going on as colors are being developed so that everyone can formulate refinish match. In this case, it was Nippon working with Mazda, and the rest of us weren’t aware of it right away. That caught us by surprise. That doesn’t happen very often. “But Mazda was able to move the needle. They actually had great success with those colors, and it really drove some market share growth. So good for them. That’s how it should be. That’s what we should be doing as manufacturers: innovating in areas of color and that type of thing.” It’s another indication, however, Benton said, color match issues for shops won’t be ending any time soon. He said auto body shops also

should be aware of the increasingly functional role automotive finishes are playing, such as coatings that dissipate heat, or those that include anti-fouling properties to make them easier to clean and more mar resistant. “We’re all still trying to get more volatile organic compounds out of our systems, and we’re trying to do more to create low-energy cure technologies,” Benton said. Wildman said ADAS is impacting refinishing as well. “Today we talk a lot about repainting bumpers with sensors behind them, and how much paint can go on those, but it’s not just about the amount of paint,” Wildman said. “It’s what’s in that paint. What are the pigments? What are the metallics?” He joked Henry Ford today would tell customers they can have any color they want as long as it’s white, because lidar can’t see black. “You’re already starting to see more transparent colors, and you’re going to see reflective pigments and primers, with transparent pigment so we can see that primer with lidar,”

Wildman said. “So it’s going to become a more and more important part of how you repair that vehicle.” His advice to the industry will sound familiar: “The biggest thing is you’ve got to follow the OEM repair procedures,” Wildman said. “Typically when do you think about painting the car? When it’s in the booth. You can’t do that anymore. You’ve got to think about it upfront.” The repair planner needs to know if the bumper can be refinished, he cited as one example. None of the estimating systems have a line item for a quad coat, so you need to know upfront how to document and explain that. If the right color primer isn’t used, that could impact color matching. If a specialized toner is needed, one that might only be needed once a year, it’s not something you’re likely to have on hand—and your distributor may not either, which means it could be days away. “You’ve got to think of paint not just as an afterthought once the car is in the booth,” Wildman said. “That’s where a lot of shops run into issues.”

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Toby Chess Has Successful Kidney Transplant

Tesla Shares Rare Look Into its Crash Lab by Simon Alvarez, Teslarati

Thanks to their all-electric design, Teslas have garnered a reputation for protecting their occupants even in serious accidents. As indicated by the company in a recent video, its vehicles are only going to get even safer with time, in no small part due to the efforts of the company’s engineers working in the Tesla crash lab. A rare look at Tesla’s crash lab was recently posted on the company’s official YouTube channel. In the video, several engineers working at the state-of-the-art facility explained how Tesla goes above and beyond in its efforts to release the safest vehicles possible to customers. To accomplish this, Tesla uses its key strengths, from its ever-expanding fleet and its mastery of software, to simulate, develop and improve its vehicles’ safety systems. As noted by one of the company’s safety engineers, automakers typically build vehicles for industry crash testing. However, the scenarios represented by industry tests typically correspond to but a fraction of real

crashes that happen on the road. Through the data it has gathered from its fleet, Tesla has learned real-world crashes are a lot more complex than those typically simulated by industry tests. It is these more complex, varied and difficult crashes Tesla is addressing in its lab.

“Previously, the best way to design a safe car was for industry-standard crash testing, and those crash tests are like a few grains of sand that are meant to represent the beach,” said Dan, a Tesla safety engineer. “But in reality, the beach is infinitely more complex. Every crash is different. With emerging technologies, there are new opportunities now. We can look at the real world and design for that.” Thanks to a fleet of vehicles fully instrumented from a sensing perspective, Tesla is able to determine the exact circumstances that happen

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Our well-known collision consultant Toby Chess underwent a successful kidney transplant on Oct 12 at UCLA

in the event of a real-world collision. Using the data gathered from these events, the company can then tune its vehicles’ safety systems, from the reaction of seatbelts to the optimal timing for the deployment of airbags. Tesla tunes its vehicles’ safety systems extensively, and once improvements are refined enough, the improvements are queued to be released in one of the company’s over-the-air updates. These updates are then distributed to the company’s fleet of vehicles, effectively making the Tesla fleet safer overnight, free of charge. As highlighted by Anders, one of the video’s featured safety engineers, Tesla is hoping over time, its safety efforts could actually become the industry standard. Such a change could make the roads significantly safer. “We think over time, this will change how you design for vehicle safety. It’s all based on knowledge. I think this is just the beginning of a journey for us. The reason we’re doing this is simple. It’s because A, we can, we have the ability. And B, it’s because it’s the right thing to do,” the safety engineer said.

Ronald Regan medical center, courtesy of his brave daughter Stacy Nicole Torres, 40, who donated an organ to her father based on their compatible genetic profile. The operation required 2.5 hours of surgery for her, and 4 hours for Toby. Both are doing well and Toby no longer has to endure weekly dialysis. For more information contact https://www.kidneyfund.org/.

Pictured: Hayley Torres, granddaughter (l); Hunter Torres, grandson, (c) ; and Stacy Torres daughter and donator (r)

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To Scan or Not to Scan? CAA Says It’s No Longer an Option by Ed Attanasio

A car equipped with Advanced Driver Assistance Systems (ADAS) comes into your auto body shop. You keep hearing about the importance of pre- and post-repair scanning and re-calibrations, but you avoid them like COVID. You have had to take a few vehicles to the dealership to clear codes and in most cases, it simply delays the process and impacts your cycle time. You didn’t perform a prescan and then get stuck at the end of the repair because you can’t clear a code, and you don’t even know if it was from the accident. Auto diagnostics wasn’t something to worry about a decade ago, but now it’s the hottest topic on every shop floor in the country. So many questions. Do we have to scan every car and why? Will the insurance company pay us for them? If we opt out, can we get in trouble with the California Bureau of Automotive Repair (BAR)? Should we do the diagnostics in-house or job them out? And finally—what are the OEs saying about these scans? A recent video produced as part of I-CAR’s Repairers Real series focused on these questions and searched for answers. In short, some insurance companies have agreed to pay for pre- and post-scans and programming while a small handful are still refusing to join the party. People often describe today’s cars as “computers on wheels” and every year the cost of these systems—the software, cameras and sensors—comprise more of the vehicles’ total cost. Electronics are responsible for 40% of a new car’s total cost, according to a Deloitte analysis, up from 18% in 2000. Computing technology has impacted every aspect of automotive design, engineering and manufacturing. Car designers have a wide range of digital tools and processes that enable the OEs turn out cars much faster and with more precision than ever. CAA Executive Director Rick Johnson recently browsed through position statements by 15 major carmakers and although the language differed the message was universal.

“They all state that if you want to repair a car properly, shops have to perform all of the diagnostics required—pre and post scans and re-calibrations at the conclusion of the repair,” he said. “The fact that we’re having this conversation now is a little ridiculous because this stuff should be part of the process with every car without question.” Johnson describes a wrestling match over diagnostics that will likely end up in the customer’s lap.

County, and chairman of CAA’s Legislative Committee, said, “An auto insurer denying payment for a pre- or post-scan that doesn’t contain Diagnostic Trouble Codes (DTCs) is like your health insurer denying payment for an X-ray because it didn’t show any fractures.” Etherton was denied payment from an insurance company in June, so he filled out a Request for Assistance (RFA) with the California Department of Insurance (CDI).

“During repairs, a DTC may be set in one of the vehicle’s computer modules by common operations such as removing a headlamp, a door handle or any component that is connected to the car electrically.” — Monte Etherton “Our position at CAA is if an insurer denies payment for any diagnostic procedure, the shop needs to explain the situation to the customer and then it’s up to them to pursue it,” he said. “You need to pass the cost onto the customer rather than eating it yourself or not doing it altogether. If the insurance company isn’t willing to pay, the shop still has to do the work because in the end they’re liable.” Without a pre-scan, shops are operating in the dark, Johnson said. “If the shop doesn’t do a prescan, how will they know what was wrong with the car’s electronics before the accident, or from it? Even if there aren’t any codes in the car, the shop is going create a bunch when they fix it, unplugging headlights and airbags, etc. So, if they don’t do a post-scan at the other end, they can’t clear the codes before it leaves the building.” Some insurers say if the car does not contain—or was not impacted near—ADAS, scans are not required, but Johnson said that’s not the case. “Cars have had computers on board since the late 1990s, so they need to be scanned whether they have ADAS or not. Some insurance companies are trying to say that cars made prior to 2010 don’t need to be scanned, which is obviously false.” Monte Etherton, owner of Fender Mender Collision Repair Specialists in North San Diego

44 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

He believes his explanation letter and included documentation allowed the CDI to fully investigate the problem. In this case the CDI was able to resolve it—during the investigation, Fender Mender received full payment from the insurer for the denied scanning operations.

In his explanation letter, Etherton first described the entire issue succinctly. “‘Scanning’ (testing for Diagnostic Trouble Codes, or DTCs) is the process of using an electronic scanner (scan tool) to access and interpret computer module information within a vehicle,” Etherton wrote. “The diagnostic software in the scan tool checks the vehicle systems for fault codes or DTCs, and can even monitor systems while the vehicle is running to check performance. “(Unnamed insurer) has recently taken the position that they do not owe for ‘scanning’ unless damage has affected ADAS components. Examples of ADAS components are blind spot monitors, or collision avoidance sensors. This position contradicts industry standards. “Scanning with any repair is both an accepted trade standard for good and workmanlike repairs, and a recognized OEM service specification. All major vehicle manufacturers state that any vehicle being repaired by a body shop must be pre-scanned

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and post-scanned at minimum. “Why? Pre-scans are required so the shop knows what DTCs exist before they work on the car. DTCs that show in a pre-scan may or may not be related to the repairs at hand. In some cases, there may not be any DTCs on a pre-scan, but it still must be completed to create a baseline. “During repairs, a DTC may be set in one of the vehicle’s computer modules by common operations such as removing a headlamp, a door handle or any component that is connected to the car electrically. “After reassembly, a post-scan is required. This will show if any DTCs are still stored in the vehicle’s computers. Codes that were set from the damage (or the repair) are then cleared with the scan tool. A final-scan is needed to prove the DTCs are cleared, thus restoring the vehicle to pre-loss condition. “The laws are clear. The shop and insurer must follow OEM service specifications, and the OEM service specifications require scanning: “1. § 2695.8(f) Insurance Fair Claims Regulations: The estimate

prepared by or for the insurer shall be of an amount that will allow for repairs to be made in accordance with accepted trade standards for good and workmanlike automotive repairs by an ‘auto body repair shop’ as defined in section 9889.51 of the Business and Professions Code, and in accordance with the standards of automotive repair required of auto body repair shops as described in the Business and Professions Code and associated regulations, including, but not limited to, Section 3365 of Title 16 of the California Code of Regulations. “2. § 3365. BAR Regulations regarding Auto Body and Frame Repairs: The accepted trade standards for good and workmanlike auto body and frame repairs shall include, but not be limited to, the following: Repair procedures including but not limited to the sectioning of component parts, shall be performed in accordance with OEM service specifications or nationally distributed and periodically updated service specifications that are generally accepted by the autobody repair industry.

“3. Excerpt from GM Position Statement on Scanning: General Motors takes the position that all vehicles being assessed for collision damage repairs must be tested for Diagnostic Trouble Codes (DTCs) during the repair estimation in order to identify the required repairs. Additionally, the vehicle must be retested after all repairs are complete in order to verify that the faults have been repaired and new faults have not been introduced during the course of repairs. “In their denial (unnamed insurer) attempts to put the burden on the shop by stating, ‘Shop Did Not Provide Documentation of Loss Related DTCs.’ (Unnamed insurer) is not only in violation of the law, it is doing a disservice to its customers by not paying for this legitimate and necessary process which allows the repair shop to make sure the customer’s vehicle is restored to its pre-loss condition to the highest degree possible.” Etherton is hopeful but cautious about getting compensated for scans in the future, he said.

“Everyone is on the same page with this—including I-CAR, the BAR, the CDI and all of the OEs,” he said. “Now if we can convince all of the insurance companies to come onboard, this can hopefully become a non-issue.” CAA Lobbyist Jack Molodanof has been working with the BAR and monitoring the issue carefully. “The BAR is definitely moving into the direction of citing and fining auto body shops that don’t perform work according to OEM service specifications including pre- and post-repair scans and calibrations,” he said. “They’re considering up to a $5,000 fine per citation, if they believe it’s something that is safety-related.”

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

Jay Leno Joins SEMA Show New Products Breakfast Jay Leno will kick off the 2021 SEMA Show as the featured guest of the New Products Breakfast on Nov. 2. Taking place before the SEMA Show floor officially opens that same day, the New Products Awards Breakfast is akin to an opening ceremony for the four-day event, where automotive innovation, technology and advancement take center stage. As the featured guest of the New Products Breakfast, Leno will inspire and motivate show attendees as the best new product award winners are announced. “Leno is an automotive expert whose high energy and passion represents that of the industry’s,” said Tom Gattuso, SEMA vice president of events. “Like the exhibitors at the SEMA Show, Leno pushes the boundaries and continually raises the bar. We’re thrilled to have him join us for the opening breakfast of what is likely to be one of the most iconic SEMA Shows ever.” Tickets to the New Products Breakfast are available to all SEMA Showgoers at no cost by visiting www.semashow.com/banquet. Tickets are free to all credentialed attendees, but must be reserved in advance

as seating is limited. In addition to a sit-down breakfast served beginning at 7:30 a.m. at the Westgate Las Vegas Resort & Casino, the event includes announcements and introductions of the best new product winners. Awards are presented in 16 categories and will be showcased in the New Products Showcase throughout the week of the SEMA Show. The New Products Showcase, voted on by buyers and media as the No. 1 SEMA Show destination, includes exhibitors’ new and featured products displayed in a single location. All exhibitors may enter an unlimited number of products into the Showcase, with the first entry offered at no cost. The SEMA Show takes place Nov. 2-5 in Las Vegas, NV, with the Show floor opening at 9 a.m. More than 1,300 exhibiting companies are set to participate throughout the Las Vegas Convention Center. To date, more than 40,000 buyers have signed up to attend. To learn more, visit www.semashow.com/banquet. Source: SEMA

46 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

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CCC Forecasts Future of EVs and How It Will Impact Body Shops by Ed Attanasio

When it comes to repairing EVs, there are auto body shop owners out there who look at them differently. Some view EVs as something to invest in with little chance of making a profit. Others believe they represent a golden opportunity for shops to differentiate themselves from the pack. With any new technology, there will be those shops that will embrace it, but many will drag their feet or reject it altogether. The time to decide whether or not to jump into the EV game is now. Despite a recent ramp up in sales in the U.S., there are still only a small number of EV auto claims and repairs out there, with the majority being in California and other Western states. The latest CCC Intelligent Solutions Trends Report, “Electric Vehicles Go Mainstream, Implications for the P&C Insurance Economy,” analyzes emerging trends in electric vehicles. Senior Director/Industry Analyst Susanna Gotsch from CCC is the keeper of invaluable data and this report is surely no exception. This year, the U.S. has joined numerous countries using the pandemic as an impetus to shift their vehicles in operation from internal combustion engine vehicles to electric vehicles (EVs). Driven by new federal requirements from the Biden Administration, as well as competition with China’s aggressive goals to move to an electric vehicle fleet, automakers and many of their suppliers have announced they will be making significant investments in electric vehicles and battery technologies. Consumer acceptance of EVs is expected to grow, and sales in the U.S. have already begun to ramp up, according to CCC’s Trends Report. EVs are only a small part of our national fleet, but those numbers are climbing. Over the four quarters ending Q2 2021, EVs accounted for only 0.54% of CCC’s national industry repairable appraisal volume. However, as sales ramp further, claim and repair volumes will grow, so understanding how EVs will

change things like frequency, costs, cycle time and repair requirements is important. The simple fact is EVs are here to stay, despite all of the misinformation out there. The No. 1 complaint is EVs do not have sufficient range. Americans drive an average of 40 miles a day,

Senior Director/Industry Analyst Susanna Gotsch from CCC Intelligent Solutions Inc. recently published a report, “Electric Vehicles Go Mainstream, Implications for the P&C Insurance Economy

according to the U.S. Department of Transportation, so range is not going to be an issue, according to experts. Even the shortest-range electric vehicles can travel more than twice that distance before needing to be tethered to the power grid. The Nissan Leaf can run for an average 150 miles on a charge, while the Chevrolet Bolt EV can cover 238 miles, Hyundai Kona 258 miles, Tesla Model 3 310 miles and the Tesla Roadster 620 miles. With battery prices reportedly falling 73% since 2010, electric cars are expected to cost the same or even less than fuel-powered cars in the foreseeable future. The International Energy Agency reported by 2020, there were up to 20 million electric vehicles on the road, a number expected to go up to 70 million by 2025. People believe EVs are slower than gas-powered vehicles, but in fact, they’re generally quicker than their gasoline-powered counterparts. Others claim EVs are too expensive, but if you live in a state that’s offering an income state credit or other incentives, they’re definitely price competitive. Some folks say EVs are unsafe, but those that have been tested by the National Highway Traffic Safety Administration (NHTSA) generally

48 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

get good marks. Many assume EVs are greener than gas-powered autos, but some people say no. In fact, EV motors convert 75% of the chemical energy from the batteries to power the wheels, while internal combustion engines (ICEs) only convert 20% of the energy stored in gasoline. Other doubters claim EVs are expensive to fix and maintain, but that’s another misnomer. It costs less because EVs don’t require regular oil changes or tune-ups, and there are far fewer moving parts to eventually fail and need replacing. They also use a simple one-speed transmission and eschew items like spark plugs, valves, a fuel tank, muffler/tailpipe, distributor, starter, clutch, drive belts, hoses and catalytic converter. Will EV batteries end up in the landfill, people ask? The answer is a definitive no. Once depleted, EV batteries, like 99% of the batteries found in conventional cars, can be recycled. For example, used EV power cells can be used to store solar and wind energy, or they can be

broken down with their more-valuable elements reused. And finally, will EVs suck up all of the available electricity once they start dominating the market? That’s another urban tale because the U.S. can add millions of electric cars to the current power system without having to build any new power plants. Much of this has to do with the fact most electric vehicles tend to be charged at night during off-peak hours when power demand tends to be the lowest. Up until now, most of the data about EVs has been derived from one OE—Tesla—but that is changing at a rapid rate, Gotsch said. “Many OEs are going to introduce EVs to the public within the next few months and others are going to step up their production, such as the Chevrolet Volt and Bolt EV, as well as Nissan’s Leaf. There are 40-plus different companies currently in production of EVs, including Ford, Volkswagen and Kia. “In states [like California], where there is a large number of

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EVs being sold, driven and crashed, body shops working on EVs will experience a return on their investment obviously quicker than in those states where EV sales will be slower,” she said. “It’s going to be very much like the advent of aluminum vehicles that happened back in 2015 when Ford released the F-150. Body shops at that time had to decide whether or not to pursue aluminum repairs. The challenge is how will this pay off over time and will it justify the investment?” As repairers consider when they should make the investments in tooling and training to be able to repair EVs, it will be important to consider both the ramp in sales in their markets and how long it will take to ramp up capabilities to repair EVs. These are tough decisions for any auto body shop, especially when you consider all of the other rapid evolution happening in our cars today, Gotsch said. “We’re at a juncture where the technology is moving faster than ever before, with ADAS, autonomous vehicles, aluminum vehicles—EVs are just another challenge for the repair-

ers,” Gotsch said. “You’ve got to think about automotive diagnostics and re-calibrations now more than ever. Do you do it all in-house or contract with a company to outsource them? Keeping up with the technology is going to accelerate, and involves new tools, equipment and training. Also, with new technology comes the potential for increased liability.”

California Gov. Gavin Newsom issued an executive order requiring sales of all new passenger vehicles to be zero-emission by 2035 and additional measures to eliminate harmful emissions from the transportation sector. The transportation sector is responsible for more than half of all of California’s carbon pollution, 80% of smog-forming pollution and 95% of toxic diesel emis-

“We’re at a juncture where the technology is moving faster than ever before, with ADAS, autonomous vehicles, aluminum vehicles—EVs are just another challenge for the repairers,” — Susanna Gotsch Nearly 40% of the total number of EV auto claims nationally for the four quarters ending Q2 2021 were in California, where EVs accounted for only 1.5% of its overall repairable volume. Only one other state saw a larger share of its repairable volume from EVs: Hawaii at 1.6%. California will be the country’s poster child or its guinea pig—depending on how you look at it— when it comes to the future of EVs.

sions—all while communities in the Los Angeles Basin and Central Valley see some of the dirtiest and most toxic air in the country. “California has more EVs than any other state and a large concentration of non-domestic vehicles,” Gotsch said. “When we look at things like registrations and insurance claims, we can clearly see that more and more consumers in California are buying EVs.

“For body shops in California, gearing up to work on EVs is more immediate than with other states. But the payoff is better with a faster return on investment. The shops that are looking to expand their businesses have likely already made the investment in aluminum repairs and EVs, so they will obviously have a distinct advantage.” For auto body shops that don’t have the tools, equipment and training to repair EVs, potential challenges will await them. “We found out that there is definitely going to be a learning curve with EVs,” Gotsch said. “Some shops report that it’s taking longer to fix these cars, when you include diagnostics, for example. Getting paid for the added procedures will also be more universally accepted over time. Once shops become more comfortable repairing EVs, their cycle time will go down and make these repairs more profitable.” So, if you’re an auto body shop owner and sitting on the fence when it comes to repairing EVs, maybe this report from CCC will inspire you to plug in.

Cars as Investments on the Rise by Steven Symes, Motorious

Wealthy people don’t just stick all their piles of cash in bank accounts and in a house. They often invest in tangible objects, be it real estate, a business or collectable cars. A new Knight Frank Luxury Investment Index (KFLII) sheds light on why we’re seeing the value of certain collectable vehicles shoot through the roof. In the KFLII, wine and watches do come before cars, thanks to the two top items boasting a 13% and 5% 12-month increase in value, respectively, versus 4% for cars. However, when looking at the 10-year figures, cars boast an enviable 180% increase versus 119% for wine and 87% for watches. This doesn’t mean the good times will roll on indefinitely. After all, some items which used to be hot have fallen out of

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fashion. According to Andrew Shirley, editor of the KFLII, there are two items which were at the top but have fallen from those spots: rare bottles of scotch and Hermes handbags. Still, it’s important to note handbags enjoy a 91% 10-year growth rate and rare whiskey sits better than anything else in the top 10 with 483% increase in the past decade. Those two items have seen a negative 3% and negative 4% growth in the past 12 months, showing the market can be volatile. We understand that for enthusiasts who don’t have piles of cash, seeing the value of a dream car skyrocket well beyond anything they can ever afford is maddening. Many hold ill feelings for those who, through prospecting, have caused what used to be within reach to become unattainable. In other words, while some are celebrating this trend there is a downside.

UPDATED DAILY

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Industry Insight with John Yoswick

Lawmakers in 3 States Tackle Topics Impacting Collision Repairers

Shop Showcase

Lawmakers in multiple states have violations, similar to traffic school,” taken action in recent weeks on leg- as a means to avoid having such ciislation impacting auto body shops, tations made public. with Ed Attanasio including new regulations related to The new law also calls for addilabor rates, non-OEM parts and pub- tional safety inspections in order for lic disclosure of regulatory citations a salvage vehicle to be registered. against shops. California Gov. Gavin Newsom, for example, has signed into law a bill callingwith on that BuEdstate’s Attanasio reau of Automotive Repair (BAR) to create a system to give businesses receiving minor BAR citations not involving fraud a way to avoid having those made public. The California Autobody AssoLegislatures in three states in recent weeks ciation and the Automotive Service with Ed Attanasio have taken action on proposed laws related Association were among 11 trade to auto body shop labor rates, dealerships’ groups supporting the bill, which sale of non-OEM parts and public disclosure of regulatory citations against shops creates an independent panel to review BAR citations, and would allow “shops to attend compliance and The industry associations say that remedial training for minor record will help “protect consumers from with Ed Attanasio keeping and documentation citation unsafe, revived total loss salvage

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vehicles” that currently only require “a brake and lamp inspection, smog check and CHP inspection to make sure there are no stolen parts—nothing else.” At the other end of the country, Massachusetts legislator comments during a committee hearing in Septmeber could indicate repairers there are finally getting their message across about the need to address collision repair labor rates in the state. The state legislature’s Joint Committee on Financial Services held the hearing to collect testimony on a number of auto repair-related bills that propose setting a minimum reimbursement rate for labor by insurers to claimants. “Massachusetts has the lowest labor rate reimbursement in the nation,” Evangelos “Lucky” Papageorg, executive director of the Alliance of Automotive Service

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Professionals (AASP) of Massachusetts, told the committee members. “The number of shops has dwindled by 1,000. But there’s also been an increasingly fewer number of individuals getting into the collision repair industry as [technicians] because they can make more money working as an unskilled laborer than they can [as a] skilled repairer in a collision repair facility. Working at labor rates that are 30 years old is absolutely ludicrous.” Also testifying in favor of the bill was Brian Mountain, body shop director at Collision 24 in Brockton, MA. “The hourly rate of reimbursement in 1988 was an average of $30,” Mountain said. “Today it is an average of $40. The rate has gone up approximately 33% in 33 years while my other business costs have skyrocketed. I’ve seen insurance

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premiums go up 261%, the minimum wage increased 270% and the consumer price index increased 124% during the same period of time.” “You cannot repair today’s vehicles based on the rates that were being paid 30 years ago,” Papageorg told the committee. Frank O’Brien, vice president of state government relations for the American Property Casualty Insurers Association of America (APCIA) represented the insurance industry at the hearing. He followed up Papageorg’s testimony by telling the committee, “There is no free lunch…If you add cost to a system, it puts price pressure on the product…It’s common sense. If you add cost to the system it’s going to have an impact on price, and that impact is not going to be to lower prices.” Before moving forward with passing new legislation, the joint committee is in the process of establishing a commission to study the issue, “whether that means more hearings or visits around the commonwealth,” said Rep. James M.

Murphy, the House chairman on the committee. “Evidently there is an issue because the body shops are all saying the same thing.” At the conclusion of the testimony, Murphy sounded skeptical about insurance industry arguments against the legislation. “I’ve heard today, and I’ve heard in the past, that any increase to the cost of the labor rate is going to automatically increase premium costs,” Murphy said. “I don’t necessarily accept that. You’re going to have to show me why increasing a labor rate is going to increase premiums, because there are other ways that money can come out of the system to not increase premiums. “The goal is not to raise premiums for consumers in the commonwealth,” Murphy concluded. “The goal is to make sure these body shops are still there to support all of the insurance companies that need these cars fixed…I think now is the time to really roll up our sleeves and get to the bottom of this issue before the industry itself, in regard to the repair facilities, actually collapses. Then you’ll have no one to fix the

cars.” In Illinois, Gov. J.B. Pritzker has signed House Bill 2435 into law, prohibiting an auto manufacturer from either requiring or prohibiting a dealer to sell any “secondary product,” defined to include non-OEM parts. The bill initially also prohibited an automaker from requiring dealers “to provide a customer with a disclosure not otherwise required by law,” but a later amendment removed that clause. “It is important that consumers are properly informed about the parts to be used on their vehicle,” said Wade Newton of the Alliance for Automotive Innovation, which represents automakers. “This legislation with our amendment will continue to allow an automaker the ability to require such disclosure to help ensure transparency.” Pritzker just three weeks earlier signed into law another measure, House Bill 3940, requiring automakers to pay a dealer for warranty repairs an amount no less than the amount a retail customer pays the dealer for the same services.

AsTech® to Provide OEM Scan Report Repairify, Inc. d/b/a asTech®, a portfolio company of Kinderhook Industries, LLC, announced starting in October, asTech’s remote scanning and diagnostic service will provide comprehensive diagnostic scan reports along with official OEM tool reports, a first for the industry. asTech is a global leader in the provision of remote diagnostic solutions with a library of more than 1,000 OEM scan tools and growing. Now, following an asTech remote OEM scan, customers will have access to a copy of the official OEM tool report. asTech provides further value with a customized scan report that includes additional information and insights such as diagnostic trouble codes, repair recommendations, recall check information and professional input from the company’s team of more than 400 ASE and I-CAR certified master technicians. Source: asTech

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Ford Begins Pre-Production of All-Electric F-150 Lightning As the first pre-production F-150 Lightning trucks roll out of Ford’s new Rouge Electric Vehicle Center and demand soars for the all-electric truck, Ford on Sept. 16 said it will increase investment and add jobs to boost production. Ford is investing an additional $250 million and adding 450 more direct jobs across the Rouge Electric Vehicle Center, Van Dyke Electric Powertrain Center and Rawsonville Components Plant. The investment and added jobs will help increase production capacity to 80,000 trucks a year. “We knew the F-150 Lightning was special, but the interest from the public has surpassed our highest expectations and changed the conversation around electric vehicles. So we are doubling down, adding jobs and investment to increase production,” said Bill Ford, executive chair, Ford Motor Company. “This truck and the Ford-UAW workers who are assembling it in Michigan have a chance to make history and lead the electric vehicle movement in America.” F-150 Lightning, with a start-

ing MSRP of $40,000 and targeted EPA-estimated driving range of 300 miles with the extended range battery, is aimed at the heart of the U.S. auto market. Ford has taken more than 150,000 reservations for the trucks to date. “Electrifying the F-Series— America’s best-selling truck for 44 years—and assembling it at this high-tech facility in Michigan represents a significant step toward mass adoption of electric vehicles in America,” said Kumar Galhotra, Ford’s president of The Americas and International Markets Group. “F-150 Lightning is intended to be more than a no-compromise zero tailpipe-emissions truck. It’s packed with ingenious features and technology that will improve over time, it’s exhilarating to drive and it can power your home and worksite.” Ford confirmed construction of the Rouge Electric Vehicle Center a year ago as part of an initial $700 million investment in the historic Ford Rouge Center, creating a manufacturing home for the F-150 Lightning. Now Ford’s pre-production F-150 Lightning trucks are

leaving the factory for real-world testing, with the truck available to customers next spring. Ford’s $250 million additional investment will create 450 additional hourly direct jobs, with most of those workers assembling the F-150 Lightning at the Rouge Electric Vehicle Center. Workers at Rawsonville Components Plant will assemble the batteries and Van Dyke Electric Powertrain Center will increase its capacity to supply electric motors and electric transaxles for the F-150 Lightning. Ford hosted government officials including Michigan Gov. Gretchen Whitmer and U.S. Rep. Debbie Dingell to celebrate Ford’s commitment to Michigan and assembling electric vehicles in Michigan as the first pre-production F-150 Lightning trucks start to leave the factory. “We’re standing on the edge of an era of electrification that will be built in factories like this one by hardworking UAW members and the innovative minds at Ford,” said Whitmer. “I am proud of Ford for committing to invest $30 billion

in electrification through 2025, including this additional $250 million today to create 450 jobs in Dearborn, Ypsilanti and Sterling Heights supporting the production of the new F-150 Lightning. I will stay laser-focused at the state level on making investments in the future of mobility and electrification too, and together, we can create good-paying, high-skill union jobs and lead the world in electric vehicle development and manufacturing.” The Rouge Electric Vehicle Center is in the Ford Rouge Center, which sets the benchmark for sustainable automotive assembly. This new center supports Ford’s vision of sustainable production as a zero waste-to-landfill site. The center uses natural lighting, as well as LED lighting and the primary forklift fleet will use hydrogen fuel cells with a zero-emission profile. The Rouge Electric Vehicle Center is built on the site of the old Dearborn Assembly Plant, using its recycled foundation and construction materials. Source: Ford Motor Company

Sedgwick to Use CCC Intelligent Solutions’ AI to Digitize Auto Appraisals Sedgwick, a global provider of technology-enabled risk, benefits and integrated business solutions, and CCC Intelligent Solutions Inc. (CCC), a SaaS platform for the property and casualty insurance economy, announced a multiyear agreement whereby CCC’s mobile and artificial intelligence (AI) claims capabilities will power Sedgwick’s auto appraisal offering and related workflows. The agreement will help redefine Sedgwick’s auto appraisal capabilities, enabling the auto claims services provider to offer clients the next steps towards a digital end-toend automobile physical damage evaluation experience, streamlining and improving their policyholder experiences. “Working with CCC to bring proven AI and mobile innovation into our process marks the next milestone in the strategic growth and advancement of our auto physical damage management solutions,” said Chris Bakes, Sedgwick managing director for auto appraisals. “On the heels of several key acquisitions, the CCC cloud will help

scale our auto business by extending our reach and our technology capabilities, allowing us to elevate the appraisal process in this industry to a new standard of excellence.” Sedgwick will leverage CCC’s suite of cloud-based AI solutions, helping its clients deliver an enhanced digital experience from first notice of loss to resolution. “Digital and AI-first experiences are being activated across the industry and CCC is proud to be powering this transformation, improving the lives of millions of drivers,” said Shivani Govil, chief product officer, CCC. “The CCC advantage combines leading AI and vast network connections to help our customers scale their business, deliver differentiated value, and achieve better business outcomes. We’re excited to provide Sedgwick with the technology and tools to support its next phase of growth in the auto appraisal space.” More about Sedgwick’s auto solutions can be found at sedgwick. com/autoappraisals. Source: Sedgwick, CCC

54 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

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LG to Pay for Bolt Recall General Motors Co. announced Oct. 12 it has reached an agreement under which LG Electronics Inc. will reimburse GM for costs and expenses associated with the recall of Chevrolet Bolt EVs and EUVs due to manufacturing defects in battery modules supplied by LG. As a result of the agreement, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2.0 billion in charges associated with the recalls. “LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain. “Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month.” Source: GM

Auto Insurers Confront Rapidly Rising Claims Costs Sharply higher costs to repair and replace vehicles will cause insurance companies’ underwriting profit margins to narrow significantly, projects S&P Global Market Intelligence’s annual US Auto Insurance Market Report. Published by S&P Global Market Intelligence’s Financial Institutions Group (FIG) Research team, the report spotlights the unprecedented effects of COVID-19 on the personal and commercial auto insurance business. The analysis finds the benefits fromlower levels of motor vehicle travel may be as fleeting as they were significant. The number of automobile crashes is rebounding toward pre-pandemic levels, and the average cost to settle claims is rising as costs for motor vehicle body work and used vehicles increase rapidly. “Auto insurers provided estimated premium relief of as much as $16.4 billion to their customers in 2020 as COVID-19 curtailed commuting and leisure travel,” said Tim Zawacki, principal analyst for FIG at S&P Global Mar-

ket Intelligence. “In 2022, some of those customers may face higher auto insurance rates as carriers respond to a return to normal driving patterns and claims costs continue to climb.”

industry underwriting profitability, will normalize in the personal and commercial auto insurance businesses in 2021 due to inflationary pressures and the year-over-year increase in the number of vehicles

Key highlights from the report include: Greater use of technology favors more stable and predictable auto insurance results over the long term. The various ways technology will benefit the industry include increased consumer and trucker acceptance of telematics and the continued deployment of advanced safety equipment across the domestic vehicle fleet. But the industry must first navigate near-term volatility related to the pandemic. Combined ratios, the key measure of property and casualty

on the road. Over time, the outlook assumes resolution of the underlying supply chain disruptions that are driving the rapid inflation. Some auto insurers will continue to pursue sizeable rate increases in response to the adverse claims trends. The report projects growth in personal auto direct premiums written of 3.1% in 2021 and 5.4% in 2022. Commercial auto premiums are projected to rise 14.2% in 2021 before slowing to 8.4% in 2022. Source: S&P Global Market Intelligence

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Axalta Expects $40M Less in Net Sales for Q3 Due to Supply Chain Shortages, Raw Material and Logistics Constraints Axalta Coating Systems Ltd., a leading global coatings company, provided an update to third quarter and full-year 2021 financial guidance given the ongoing supply chain issues its Mobility customers are experiencing, as well as continued raw material inflation and supply chain and logistics constraints. Axalta expects net sales for the third quarter to decrease by approximately $40 million relative to volume levels assumed in previously communicated guidance, and for adjusted EBIT to be reported between $130 million and $140 million, benefiting from positive business mix, ongoing price increases and continued cost actions. The prior guidance for Q3 adjusted EBIT (noted as ~20% of the full year target) was $138 million at the midpoint of the range. For full-year 2021, Axalta is withdrawing its previously communicated guidance due to the uncertainty related to these factors and expected financial impacts during the fourth quarter. Since Axalta provided its third

quarter and full-year 2021 guidance on July 26, net sales volumes have continued to be impacted by customer supply chain disruptions, most notably in the light vehicle end-market, where semiconductor chip and other supply shortages have continued largely unabated. Industry forecasts for light vehicle production now call for these disruptions to continue into 2022, and Axalta now anticipates global production impacts to total approximately 11 million units for the full year 2021, compared with the previous assumption of 7 million units. In addition, recent weather events in the Southeast U.S. and ongoing global raw material supply and logistics constraints have resulted in continued cost inflation and supply constraints in excess of that anticipated in previously provided guidance.

Despite the impact of Mobility customer component shortages and supply chain challenges, underlying demand in Performance Coatings end-markets remains strong. Inventory on hand in customer channels remains below normal levels, which Axalta expects will support a net sales recovery as COVID-19-related impacts and supply chain dynamics ease over time. Axalta expects net sales volumes in both Refinish and Industrial end-markets to remain consistent with previously communicated guidance. On a consolidated basis, Axalta believes strong global demand, supported by active growth initiatives, and a focus on addressing inflationary pressures with price increases, will support a continued recovery in both net sales and profit during 2022 and beyond. Source: Axalta

ASA Announces New Membership Model The Automotive Service Association (ASA), the oldest and largest association representing the independent automotive repair industry, announced Sept. 27 it is transitioning to a new and innovative association model leveraging its expansive history to create a single, unified industry voice. Insights from industry innovation, technology transformations and public policy continue to impact the businesses of ASA members, making it imperative for the association to refine its membership offering to better meet members’ needs. Implementing a new model not only simplifies and expands member benefits around advocacy, education and communication, but will also help drive the association’s impact and influence. Under the new model, existing state affiliate agreements will be dissolved, and a 50-state regional structure will take their place. Source: Automotive Service Association

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Cox Automotive Forecast: New-Vehicle Sales Stall in September September U.S. auto sales are forecast to be significantly hampered by an ongoing lack of new-vehicle inventory. According to a forecast released Sept. 27 by Cox Automotive, the pace of auto sales, or seasonally adjusted annual rate (SAAR), is expected to finish near 12.1 million, the slowest pace since May 2020, when much of the country was closed during the first wave of the COVID-19 pandemic. The September sales pace will be down from August’s 13.1 million pace and down from the September 2020 pace of 16.3 million. Sales volume is forecast by Cox Automotive to come in near a notably low 1 million units. The low volume expectations for September put the month on course to be among the worst in the past decade. Sales volume is expected to be down nearly 26% from last September and down 8.5% from last month. The sales pace in the U.S. market has fallen every month since reaching a peak of 18.3 million in April. “After a strong spring selling season, the supply situation has wors-

ened precipitously and is dragging sales down with it,” said Cox Automotive Senior Economist Charlie Chesbrough. “The monthly declines have been large—the sales pace has declined by more than a million units in each of the past five months. Available supply on dealer lots is now 58% lower than last September, down nearly 1.4 million units.” The new-vehicle supply shortage is impacting the market in many ways. Manufacturers have cut back significantly on incentives, and transaction prices have risen as a result. In addition, the lack of new-vehicle inventory is steering many dealers and consumers into the used-vehicle market, resulting in higher prices for both wholesale and retail used vehicles. Q3 2021: The Auto Industry Finds the Bottom With lower sales forecast for September, the third quarter of 2021 is forecast to finish with auto sales down 14% versus Q3 2020 and down 22% compared to the same period in 2019. Cox Automotive will officially revise its full-year forecast, with new projections scheduled to be released

Sept. 30. The underlying economic conditions in the U.S. are currently healthy enough to support higher new-vehicle sales levels. The demand is there. Inventory levels, however, are the unique problem facing the automotive market right now, with disruptions to the global supply chain challenging all automakers, severely impacting available inventory, and pushing many would-be buyers out of the market. In recent research by Cox Automotive’s Kelley Blue Book team, nearly half of would-be buyers indicated in August they will likely step back from the market, many for three months or more. Inventory conditions, however, are anticipated to improve in the coming months. “The expectation is that OEM supply issues will improve such that Q4 should have better selling SAARs than the September rate, but that doesn’t mean good selling rates,” said Chesbrough. “Vehicles are getting produced, and some OEMs have improved their supply situation. In recent months, OEMs seem to be

managing the situation better now that they’ve had time to adjust. For example, automakers are improving their ability to redirect existing chips to the most important vehicles in their portfolios. This strategy should support better sales in the fourth quarter compared to the third quarter.” September 2021 Sales Forecast Highlights New light-vehicle sales are forecast to fall to 1 million units, or down 357,000 units, nearly 26% from last year. Compared to last month, sales are expected to fall 92,000 or nearly 8%. The SAAR in September is estimated to be 12.1 million, down from last September’s early COVID recovery pace of 16.3 million and down from August’s 13.1 million supply-constrained level. No segment saw a sales increase in September with the Mid-Size Cars and Compact SUV/Crossover segments seeing the largest year-overyear decreases at -41.0% and -33.7%, respectively. Source: Cox Automotive

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NICB Releases Annual ‘Hot Wheels’ Report: America’s Top 10 Most Stolen Vehicles The National Insurance Crime Bureau (NICB) on Oct. 12 released its annual Hot Wheels report identifying the top 10 most stolen vehicles in the U.S. in 2020. For the second year in a row, the Ford full size pick-up was the model most targeted by thieves, followed by the Chevrolet full size pick-up, which supplanted the formerly second-place Honda Civic. “Auto thefts saw a dramatic increase in 2020 versus 2019 in part due to the pandemic, an economic downturn, law enforcement realignment, depleted social and schooling programs and, in still too many cases, owner complacency,” said David Glawe, president and CEO of the NICB. “For many people, a car is the second largest investment they will ever make behind a home. No matter what kind of vehicle you have, take steps to protect your investment—lock your car and take your keys.” Thefts for all models in the top 10 were up in 2020 compared to 2019, but only Ford, Chevrolet and GMC full size pick-ups and the Honda CR-V saw double digit theft

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increase percentages. In this year’s list, six of the top 10 most stolen vehicles were Japanese models. Top 10 Stolen Vehicles in 2020 (number of thefts, most common model year stolen) 1. Ford full size pick-up: 44,014; 2006 2. Chevrolet full size pick-up: 40,968; 2004 3. Honda Civic: 34,144; 2000 4. Honda Accord: 30,814; 1997 5. Toyota Camry: 16,915; 2019 6. Nissan Altima: 14,668; 2020 7. GMC full size pick-up: 13,016; 2005 8. Toyota Corolla: 12,515; 2020 9. Honda CR-V: 12,309; 2000 10. Dodge full size pickup:11,991; 2001 The annual Hot Wheels report examines vehicle theft data submitted by law enforcement to the National Crime Information Center (NCIC) and determines the vehicle make, model and model year most reported stolen in 2020. To guard against thefts of vehicles, NICB recommends drivers

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follow these four layers of protection to guard against vehicle theft: Common sense—the common-sense approach to protection is the easiest and most cost-effective way to thwart would-be thieves. You should always remove your keys from the ignition, lock your doors/close your windows and park in a well-lit area. Warning device—the second layer of protection is a visible or audible device which alerts thieves that your vehicle is protected. Popular devices include audible alarms, steering column collars, steering wheel/brake pedal lock, brake locks, wheel locks, theft deterrent decals, identification markers in or on vehicle, VIN etching and micro dot marking. Immobilizing device—the third layer of protection is a device which prevents thieves from bypassing your ignition and hot-wiring the vehicle. Some electronic devices have computer chips in ignition keys. Other devices inhibit the flow of electricity or fuel to the engine until a hidden switch or button is activated. Some examples

are smart keys; fuse cut-offs; kill switches; starter, ignition and fuel pump disablers; and wireless ignition authentication. Tracking device—the final layer of protection is a tracking device which emits a signal to police or a monitoring station when the vehicle is stolen. Tracking devices are very effective in helping authorities recover stolen vehicles. Some systems employ “telematics” which combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved, the system will alert the owner and the vehicle can be tracked via computer. Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422) or submitting a form at www.nicb.org/how-wehelp/report-fraud Source: NICB

www.autobodynews.com

Retail Spending on Cars and Parts Surpasses All Other Sales Automotive is the single biggest retail segment in the U.S., accounting for 20%—more than $1.2 trillion— of retail spending in 2020, according to the new Retail Trends Report from SEMA Market Research. The report highlights U.S. retail spending and includes new findings on the retail side of the specialty-equipment market, including specialty-automotive shopping behavior and trends. Retail is a huge part of the U.S. economy, representing more than $6.2 trillion in 2020. While online sales are growing, it is a small slice of the total, growing to roughly 14% of total retail sales, up from 11% in 2019. To help businesses understand automotive aftermarket retail trends by product and retail channel, as well as consumer and shopping behavior, the SEMA report contains additional findings, including: The specialty-automotive aftermarket is ahead of the curve on online sales, with just over half of the $47.89 billion spent on specialty parts in 2020 going through online retail channels. SEMA expects the share of online retail sales will level off, then return to its historical trend

of gradual growth over the next couple years. In the longer term, retailers should keep an eye on how the vehicle population evolves. Light trucks like pickups, SUVs and CUVs are expected to represent 80% of new vehicles sold through 2028. Alternative-fuel vehicles (e.g., hybrid and electric) are a small but growing share of new vehicles sold, expected to account for 25% of new vehicle sales by 2028 and 45% by 2035. In recent years, specialty-automotive consumers have most-commonly bought parts in a “mixedmode” fashion—i.e., buying both in-person and online, with smaller portions favoring exclusively in-person or exclusively online. For many consumers, high-performance chemicals along with specialty wheels and tires represent the “gateway drugs” that can lead to more ambitious modifications to the vehicle’s appearance, performance and handling. For more data on the state of U.S retail and retail in the automotive specialty-equipment market, download the 2021 SEMA Retail Trends Report for free today at www.sema.org/research. Source: SEMA

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 59

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40321 VERSATILITY KIT

40611 VERSATILITY KIT

Includes: – NF1 NitroFile, (2) 11203 Contact Arms, (1) 11204 Contact Arm, Abrasive Belt Sample Pack, Carrying Case

Includes: – 40320 Dynafile® II, (3) Contact Arms (11203, 11204, 11206), Abrasive Belt Sample Pack, assortment of Platen Pads, 1/4" Collet for Die Grinder use, Wrenches, Carrying Case

Includes: – 40610 Electric Dynafile® II, (3) Contact Arms (11202, 11203, 11204), Abrasive Belt Sample Pack, assortment of Platen Pads, Carrying Case

ABRASIVE POWER TOOLS AND PROCESS SOLUTIONS SINCE 1969 60 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

Dynabrade, Inc. | 1.800.828.7333 | dynabrade.com/aftermarket |