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Northeast Shops Still Recovering from Sandy by Chasidy Rae Sisk
When Hurricane Sandy charged into the East Coast in late October, she devastated many homes and businesses. Her most vicious attack was perpetrated in NY and NJ, leaving millions with flooded properties and no power. Sandy’s effects on the auto body industry were no different. Many collision repair facilities in the area were destroyed, and equipment and tools were demolished. Some still had not reopened as of the middle of December. Three shop owners took the time to share their stories.
Bobby Zigman, owner of Collision Depot in Oceanside, NY, suffered personal and business losses as a result of Sandy since his home is near his shop and both were flooded. Zigman notes that the storm left five or six feet of water in his shop and parking lot, completely wiping out all of his shop and office equipment. Though Collision Depot technically remained open after the storm, the flooding ruined equipment and lack of both phone connections and electricity prevented them from performing any actual repair work for about two weeks. Zigman’s dedicated See Still Recovering, Page 36
Brindle’s Auto Body Rebuild After Sandy Comes to a Halt Due to State Permit Problem
See Brindle’s Rebuild, Page 40
P.O. BOX 1516, CARLSBAD, CA 92018
In last month’s issue of Autobody News, we featured the story “Brindle’s Auto Body in St. Thomas, PA, Gets Home and Shop Double-Hit by Sandy.” In an follow up with the owner, we’ve learned that the process to rebuild the shop has ground to a halt. “It was going good, but now it’s come to a standstill. The state wouldn’t give us a permit,” said Dave Brindle, owner of Brindle’s Auto Body located in St. Thomas in southcentral Pennsylvania. Superstorm Sandy struck a path right through the small town and the
damage to Brindle’s shop was catastrophic. “Even though we are only rebuilding what was there and we made the walls at least twice as strong as they were before, the state said that because we are repairing walls and that is the structure, we have to get an engineer in and design something to bring the walls up to code,” Brindle reported. “Then, after they inspect and approve it, then they will give us a permit. We were hoping to have a roof on and be on our way to being finished by now. But now, I have no clue when
Change Service Requested
by Melanie Anderson
VOL. 2 ISSUE 10 JANUARY 2013
Industry Year in Review—A Month-by-Month Look at the Most Interesting Collision News of 2012 by John Yoswick
A lot happens in the collision repair industry, so trying to compile it all into a single year-end review is a challenge. But here’s our look at what we saw as among the most important or just plain interesting and memorable news item, event or quote from each of the last 12 months.
January State Farm’s George Avery announced that his company is testing the electronic parts ordering system “PartsTrader” with two collision repair businesses. He declined to identify the shops, saying that it is too early in the testing “to put those folks under the microscope and ask, ‘What do you think of the new system?’”
Lots of shops have since voiced what they think of the system. By the end of the year, the program was being rolled out to a fifth market (Chicago) George Avery for a total of about 600 Select Service shops.
February John Borek of Autocraft Bodywerks in Austin, TX, wasn’t accepting the explanation from American National Property and Casualty Company (ANPAC) that an appraiser working on its behalf was just using “an outdated document” when denying the shop’s supplement for color sand and buff. See Year in Review, Page 40
2012 Adding Up to a Record Year for MSO’s Shop Consolidation, All Major MSO’s Add Shops The pace of acquisition of both smaller MSOs by larger ones and independent shops has substantially increased during 2012. The rate of acquisitions has been running at more than two shops per week for 2012.
CARSTAR CARSTAR Auto Body Repair Experts is North America’s largest Multi-Shop Operator (MSO) Network of independently owned collision repair facilities with more than 400 locations in 31 states and 10 Canadian provinces. CARSTAR recently expanded its business development team to accelerate the expansion of the MSO network into two of the fastest growing regions—the Western U.S. and the Southeast. Shops that join CARSTAR pay a one-time joining fee ranging from $5,000 to $15,000, and then pay a percentage of sales each month, according to former CARSTAR CEO Dan Bailey. Typical monthly royalty
fees are .75 percent to 2 percent of sales.
FIX Auto USA Fix Auto USA added a franchise model to network membership in January 2011, and currently has 50 franchise locations operating in four states: California, Colorado, Oregon and Washington. Fix Auto’s increased its presence in the Seattle market to six locations, while doubling locations in the Pacific Northwest from six to 12 stores in the last year. Fix Auto USA CEO Erick Bickett said, “Extinction [in the collision business] has already begun with the shift of market share at a time when there is a declining demand for the repair services that we provide. If you aren’t considering or making changes, you are being left behind. The big get bigger and the smaller will disappear, unless they are in a niche market. InSee Record Year, Page 27
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Contents AASP/MA Reviews a Successful Year . . . . . . . 9
Accused Burglars Needed Money to Pay Fines . 6 Bailey’s Crossroads Auto Body Wins
NATIONAL
2012 Adding Up to a Record Year for
MSO’s Shop Consolidation, All Major
MSO’s Add Shops . . . . . . . . . . . . . . . . . . . 1
‘Best of Best’ Award . . . . . . . . . . . . . . . . . 4
26 Insurers Now Paying Gunder’s
Comes to a Halt Due to State Permit
44 Techs Honored at ASE . . . . . . . . . . . . . . . 38
Brindle’s Auto Body Rebuild After Sandy
Rate Increases . . . . . . . . . . . . . . . . . . . . . . 3
Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
American Honda Launches Two New
CARSTAR Expands into Upstate New York . . . 4
ASA Collision Division Recaps 2012,
in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Auto Insurance Consumers Shop for
Thought an Accident While Fixing His Truck . 6
Automaker, OEM and Recall News . . . . . . . . 26
with Surprise Party. . . . . . . . . . . . . . . . . . . 4
Summer Golf Fundraiser in Boston . . . . . . 45
CCRE Reviews Activities Accomplished
Dad Charged in Death of Son Previously Glidden Auto Body Founder Turns 90
H&V Collision Participates in Recycled Rides
to Gift Car . . . . . . . . . . . . . . . . . . . . . . . . . 4
Hurricane Sandy Fuels Auto Sales Not
Consumer Websites . . . . . . . . . . . . . . . . . 28
Moves Forward into 2013. . . . . . . . . . . . . 42
Price ... Sometimes . . . . . . . . . . . . . . . . . 44
Education Foundation Plans for 2013
Education Foundation Wants Facebook Likes . 45 Former GM Engineer Convicted of Stealing GM
Trade Secrets for Possible Use in China . . 44
Seen in Four Years . . . . . . . . . . . . . . . . . . 22
Idaho, Utah, and Nebraska Collision
Disabled American Veterans . . . . . . . . . . . 12
Industry Year in Review—A Month-by-Month
LIABRA Helps Gift Vehicles to Local and
LIABRA Looks Back on a Busy 2012 That Included Introducing Favorable
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . 8
New Glass Shop Opens in Plattsburgh, NY . . . 6
NJ Shop Owner Shares His Generator Power
with Locals . . . . . . . . . . . . . . . . . . . . . . . . 4
Northeast Shops Still Recovering from Sandy . 1
Sterling Autobody Donates Van. . . . . . . . . . . . 4 COLUMNISTS
Attanasio: How Body Shops Can Use
LinkedIn . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Franklin: Integrity Sells!. . . . . . . . . . . . . . . . . 10
Groups Join SCRS . . . . . . . . . . . . . . . . . . 40
Look at the Most Interesting Collision
News of 2012 . . . . . . . . . . . . . . . . . . . . . . 1
NC Repairer Sues Insurer on Behalf
of Customer . . . . . . . . . . . . . . . . . . . . . . . 12
NC Shop Sues Six Insurers. . . . . . . . . . . . . . . 4
New SEMA Scholarship in Dick Dixon’s
Name Planned . . . . . . . . . . . . . . . . . . . . . 38
Rhode Island Shop Owner Arrested Again. . . 44
SCRS Welcomes Utah as 40th Affiliate Assoc. . 37
Sherwin-Williams Hosts A-Plus Network
Vision Conference . . . . . . . . . . . . . . . . . . 20
Society of Collision Repair Specialists
Takes a Look Back at 2012. . . . . . . . . . . . 18
Insider: Not All Insurance Executives
Sussex Tech Students’ in DE Do Dealership
Yoswick: Advocate of Collision Industry
WIN Seeks 2013 Sponsors. . . . . . . . . . . . . . 10
Are Created Equal. . . . . . . . . . . . . . . . . . . 32
Standards in the U.K. Sees Need for
Them Here . . . . . . . . . . . . . . . . . . . . . . . . 34
Career Check . . . . . . . . . . . . . . . . . . . . . . . 8
Women’s Industry Network Reports
Winning Growth in 2012. . . . . . . . . . . . . . 30
merce Insurance. Some insurers are taking Gunder to court, arguing that Gunder, with the Power of Attorney, has no standing to file lawsuits on behalf of his customers. It’s anticipated that the court will hear arguments from all defendants and render a joint verdict for all 25 cases. The hearing occurred on Dec. 13. See adjacent story. Defendants include: State Farm, Allstate, USAA, Travelers, Infinity, and Geico. “This hearing and the judge’s ruling will be significant and may set a strong precedent regarding similar efforts of quality-minded independent repairers across the country,” Gunder said. “We are very confident that the decision will be in the favor of our customers and support the right for repairers to stand in the shoes of their customers if and when such issues regarding the full payment of any and all “Reasonable and Necessary” charges should arise. I’m excited to bring this matter to closure as it will only embolden us to move forward in serving our customers in an unencumbered fashion. This will also hopefully open a door to better communications and cooperation with insurers to better serve our mutual customers.”
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, David Brown, John Yoswick, Rich Evans, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia Serving New York, New Jersey, Pennsylvania, Delaware
Indexof Advertisers
Car Catches Fire at Body Shop . . . . . . . . . . . . 4
As of late November, 26 insurers have elected to provide full compensation for Gunder’s Auto Center’s labor rates and material invoicing. This past August, Ray Gunder placed a notice in his reception area and provided handouts to all auto appraisers and insurer claim representatives who visited his shop that new labor rates and allowances were in effect. As reported Sept. 12, (“15 and Counting”), with the exception of a handful, most insurers have conceded to paying without argument (excluding Infinity who later acquiesced after a Gunder filed a lawsuit against them). The increases include labor, refinishing labor, frame labor, mechanical labor rates and the invoicing of PMC Logic for all body and refinishing related materials. Currently, those insurers include: MetLife; Kemper Services’; Westfield Comp.; Auto Owners; Acceptance Casualty; Liberty Mutual; Amica Mutual; Horace Mann; The Hartford; Direct General; Zurich American; Mercury; Esurance; Security National; *Infinity; Occidental; First Acceptance; GMAC; Esis; Specialty Products Claims (a division of Nationwide); Sentry; Michelin Tire Company; Grange Mutual; CNA; Global Indemnity; and Com-
Amato Agency. . . . . . . . . . . . . . . . 36 Audi Wholesale Parts Dealers. . . . 46 Auto Data Labels. . . . . . . . . . . . . . 19 Auto Land Hyundai-Suzuki . . . . . . 18 BMW Wholesale Parts Dealers . . . 30 Car-Part Pro. . . . . . . . . . . . . . . . . . 27 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . 12 Classifieds . . . . . . . . . . . . . . . . . . . 47 CSS USA, Inc . . . . . . . . . . . . . . . . . 9 DCH Family of BMW Stores . . . . . 29 DuPont. . . . . . . . . . . . . . . . . . . . . . . 5 Empire Auto Parts . . . . . . . . . . . . . 10 Equalizer Industries. . . . . . . . . . . . 20 Ford Wholesale Parts Dealers. . . . 41 Fred Beans Parts. . . . . . . . . . . . . . 48 Garmat. . . . . . . . . . . . . . . . . . . . . . . 6 Glanzmann Subaru . . . . . . . . . . . . . 8 Hackettstown Honda. . . . . . . . . . . 28 Haydell . . . . . . . . . . . . . . . . . . . . . 34 Healey Hyundai. . . . . . . . . . . . . . . 22 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers. 38 Intertape Polymer . . . . . . . . . . . . . 13 Jaguar Wholesale Parts Dealers. . 44 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 37 Koeppel VW-Mazda. . . . . . . . . . . . 35
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. ©2013 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Northeast
REGIONAL
26 Insurers Now Paying Gunder’s Rate Increases
Lexus Wholesale Parts Dealers. . . 44 Malco. . . . . . . . . . . . . . . . . . . . . . . 11 Maxon Hyundai . . . . . . . . . . . . . . . 31 Maxon Mazda . . . . . . . . . . . . . . . . 21 Mazda Wholesale Parts Dealers . . 40 MINI Wholesale Parts Dealers. . . . 42 MOPAR Wholesale Parts Dealers . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 43 Nucar Mazda . . . . . . . . . . . . . . . . . 17 Plaza Auto Mall . . . . . . . . . . . . . . . 33 Porsche Wholesale Parts Dealers. 43 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Safety Regulations . . . . . . . . . . . . . 4 SCA Appraisal Company . . . . . . . 32 Scion Wholesale Parts Dealers. . . 47 Security Dodge-Chrysler-Jeep . . . . 7 Subaru Wholesale Parts Dealers DE, South NJ, PA . . . . . . . . . 14-15 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . 42 Thompson Organization . . . . . . . . 23 Toyota Wholesale Parts Dealers . . 46 Tsunami Compressed Air Solutions . 16 VIM Tools . . . . . . . . . . . . . . . . . . . . 45 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 45 Volvo Wholesale Parts Dealers . . . 36
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 3
NJ Shop Owner Shares His Generator Power with Locals
H&V Collision Participates in Recycled Rides to Gift Car
Shop owner Ted Rainer’s delay in selling an unused diesel generator he had at his shop paid off when Superstorm Sandy resulted in 10 days of power blackout in the area around his shop, Ocean Bay Auto Body in Point Pleasant, NJ. Rainer powered up the generator and put out plywood signs welcoming residents to come in to charge battery-operated items or use the shop’s Internet connection. The shop also ran power cords out to four nearby homes for the families there. He said he didn’t realize what a difference he was making in people’s lives following the storm. “It didn’t hit me until a week or so later,” he said. “My wife and I went out to dinner the other day, and people came up to thank us.” Elsewhere, generators have become controversial as lawmakers in NY and NJ have vowed to introduce legislation aimed at preventing gas shortages in future disasters. They are seeking to mandate that gas stations maintain on-site generators so they can pump fuel even during power outages. The gas station industry is fighting back, complaining that such mandates are expensive and it should not be singled out.
H&V Collision Centers in Saratoga Springs, NY, has partnered with Catholic Charities of the Diocese of Albany (CCDA) and State Farm to donate a vehicle to a needy community member as part of the National Auto Body Council’s (NABC) 2012 Recycled Rides program, a nationwide awareness project where members of the NABC—a not-for-profit organization—repair and donate recycled vehicles to families in need. State Farm works with the NABC to donate vehicles in communities across the country. Recycled Rides made simultaneous donations throughout the country during Thanksgiving week. The 2012 donation marks the third time that H&V Collision Centers has contributed a vehicle to a family in need or one that is facing special challenges. “H&V Collision Center’s goal is to help people in our local community, especially during these challenging times,” said Vartan Jerian Jr. of H&V Collision Centers. “This important program allows H&V to make a positive impact for a family in need right here in our community and across the country.”
CARSTAR Expands into Upstate New York
NC Shop Sues Six Insurers
CARSTAR Auto Body Repair Experts expanded in the Northeast with the addition of a new collision repair facility in upstate New York. The opening of Automax CARSTAR in West Seneca brings the total number of CARSTAR locations in the Buffalo region to five. Owned by Scott Eggleston, Automax CARSTAR specializes in green car repair, including spraying waterborne paint. By joining the CARSTAR network, Automax now has access to the company’s proprietary management system, 19 corporately managed insurance direct repair programs, and 45 corporately managed purchasing programs. Automax CARSTAR will offer a variety of services and products for collision repair, including the latest in repair technology, rental vehicles, national warranties on repairs and turnkey service for customers. “We are excited to welcome Scott Eggleston and Automax CARSTAR to the CARSTAR network,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “We are thrilled to expand our presence in upstate New York with this new top-notch collision repair center.
A Belmont, NC, auto body shop recently filed 16 lawsuits on behalf of their customers. Pack Brothers Collision Center filed lawsuits against Nationwide, State Farm, Allstate, GEICO, Penn National and Amica. The suits allege that the insurers refused to pay for “reasonable and necessary” parts, procedures and materials to return customers’ vehicles back to “pre-accident condition.” The total amount sought in the lawsuits is in excess of $23,000, plus legal fees and court cost.
Bailey’s Crossroads Auto Body Wins ‘Best of Best’ Award
Bailey’s Crossroads Auto Body in Falls Church, VA, was awarded the “Best of the Best” designation for excellence by Follow Media Consulting, Inc. in the category of Auto Body and Auto Repair. This award signifies the continued commitment and dedication of the area’s best in auto body repairs and maintenance. Bailey’s Crossroads Auto Body is a full-service collision repair facility and has served customers throughout the Washington D.C. area for over thirty years.
4 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Glidden Auto Body Founder Turns 90 with Surprise Party
Friends, family and former co-workers celebrated Glidden Auto Body founder Bob Glidden’s 90th birthday with a surprise party. Glidden founded Glidden Auto Body in Bangor, ME, in 1964. A lot has changed since he first started the shop, but one thing that still remains is Glidden’s dedication to the industry. He doesn’t own the business anymore but still stops by to share a good story or two, and of course still does commercials that locals recognize him from. In early December, several of Glidden’s closest friends, family members and former co-workers came together to throw him a surprise birthday and show their appreciation for a man still going strong at 90. “Bob was fantastic. He was one of the best employers I ever had,” says Bud Disesry who worked at Gliddens for 24 years. The crowd that came out to celebrate the milestone came as quite a surprise to Glidden. “There’s been so many people here I just can’t believe the crowd they’ve brought in here for me,” said Glidden about his surprise party.
Car Catches Fire at Body Shop
Firefighters are unsure what sparked the blaze when a car caught fire inside a Kensington, NY, auto body shop on Nov. 26. Fire officials responded to calls of a fire at Eden Collision & Repair, located at 1060 McDonald Ave., at 12:08 p.m. The blaze required 12 units and 65 firefighters to knock down, which they did at 12:47 p.m. No injuries were reported. The source of the fire is under investigation.
Sterling Autobody Donates Van A non-profit organization in Rochester, NY, received an early Thanksgiving gift from Sterling Autobody Center. Heritage Christian Services received a refurbished van. The 2005 Dodge Grand Caravan was previously vandalized, but was given to Sterling Autobody by Allstate Insurance company to be restored. The company then donated the van to Heritage Christian Services through the Recycled Rides program. The van will be used by staff to help transport people with disabilities to church, community services and daily functions.
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 5
New Glass Shop Opens in Plattsburgh, NY
Trevor Gillespie and Kevin Bushey are the new owners of North Country Auto Glass and Trim. The former employees worked at Johnson’s Auto Glass for 25 years (Gillespie) and 33 years (Bushey).
“Our main thing is anything to do with automotive glass and convertibles for now. We do everything but house glass so far,” Bushey said, adding they hope to eventually offer that service as well. There are three employees at the moment, the two owners and an office manager. They hope to bring two other former Johnson’s employees on board in the near future, Bushey said. They decided to start their own company because the auto-glass business is what they have done their whole lives. Both said they didn’t want to start working for another auto-glass company.
“We have a certain way we want things done,” Bushey said. Gillespie said they have arrangements with a number of service garages so their mobile units can do repairs and replacements in a controlled environment. While the urethane sealants used in the industry are rated for installations in temperatures as low as zero degrees, they prefer the quality that can be achieved in a controlled environment. That can be critical when you realize the passenger-side airbag relies on the windshield’s structural integrity to ensure proper deployment. “A safe installation is our utmost concern,” Gillespie said. He said one of the recent changes in the industry is in the glass contained in retractable hard-top roofs. When that glass is replaced, it has to be recalibrated to ensure the roof retracts at the proper speed for the weight involved. After looking at possible locations in the area, they decided to lease the building at 64-B Hammond Lane, behind M&M Auto Body and Collision Center, owned by Michael Macey. He was using the 45-foot by 55-foot building for mechanical work and storage.
Dad Charged in Death of Son Previously Thought an Accident While Fixing His Truck
Four years ago, Levi Karlsen of New York was crushed to death while fixing up a pickup truck in rural Romulus, NY. At the time, authorities in the quiet community thought it was a sad mishap. But now they say his death was no accident: his father has been charged with murdering him for insurance money, the Claims Journal recently reported. Karl Karlsen, who initially told police he’d found his son’s motionless body trapped under the truck, was being held without bail in the Seneca County jail in New York’s Finger Lakes region. The 52year-old father was arrested Nov. 23 after an eight-month reinvestigation. Levi Karlsen died at age 23 in November, 2008 while working on a truck in a barn on the family’s property in Romulus, about 55 miles southwest of Syracuse. A distraught Karl Karlsen told sheriff’s deputies he had returned from a family event and found the truck had toppled off a jack and trapped his son underneath. “There were no indications of foul play, and from all signs, this ap-
peared to be a very tragic accident,” Seneca County Sheriff Jack Stenberg said in a press statement. In March, the sheriff’s office learned about a life insurance policy on Levi Karlsen, taken out just days before his death, with his father as sole beneficiary. Investigators took another look at the circumstances surrounding the alleged accident and concluded that Karl Karlsen made the truck fall on his son, went to the family gathering and returned to make a show of supposedly discovering his son’s body, Stenberg said. “To think that a father could cause a vehicle to fall off a jack, crushing his son, and then leave for four hours—knowing all the time that his son was pinned under the truck, apparently dead—is unconscionable,” the sheriff said. The case also is prompting a new look at a 1991 California fire that killed Karlsen’s first wife. Stenberg said his office and other authorities are now looking into the 1991 blaze that took the life of Christena Karlsen, the defendant’s first wife.
6 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Accused Burglars Needed Money to Pay Fines Two people accused in a spree of burglaries in October recently waived their rights to preliminary hearings in Clearfield, PA. Michael Brooks Whitmore, 30, of Dubois and Rebecca Marie Carfley, 25, of Curwensville have been charged with five burglaries that occurred in mid October at various businesses including Tibbens Auto Body and Towing on Oct. 17 or Oct. 18. Whitmore was apprehended Oct. 19 by state police for a separate burglary. He was transported to the Clearfield-based state police barracks. In an interview, Whitmore said they were “going around [and] doing the burglaries to get money,” so that Carfley could pay off her fines. When state police interviewed Carfley Oct. 21, she said it was Whitmore’s idea to commit the burglaries because they needed money for fines. On Oct. 16 or Oct. 17, the suspects entered Tibbens Auto Body and Towing by prying open and damaging a door. Once inside they allegedly damaged a file cabinet; there wasn’t anything removed from the building. When asked specifically about the Tibbens Auto Body and Towing
burglary, Whitmore admitted to helping Carfley pry open the door. He said that he stayed outside, while she entered the building. He said they didn’t get anything from Tibbens Auto Body and Towing. However, Carfley said that if it occurred, Whitmore committed the burglary without her. She said her father had previously been employed there, and she wouldn’t steal from them. On Oct. 17 or Oct. 18, a suspect(s) allegedly forced entry into Dimmick’s Garage by prying open the door. Once inside they allegedly pried a lock box and then fled the scene. When asked specifically about the Dimmick’s Garage burglary, Whitmore couldn’t remember being there and having any role. According to Carfley, Whitmore drove up to Dimmick’s Garage and removed a crowbar from his vehicle. She said Whitmore entered the building but returned a few minutes later. She didn’t believe he removed anything from the garage. The two are also accused of breaking and entering and stealing from several other businesses.
www.autobodynews.com
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 7
LIABRA Looks Back on a Busy 2012 That Included Introducing Favorable Legislation
The Long Island Autobody Repairmen’s Association (LIABRA), one of the largest autobody associations in the USA with over 500 active members, maintains a rigorous training and education agenda for its members as well as lobbying to introduce favorable legislation and block unfavorable legislation. The Board of Director meetings are held monthly at the association’s headquarters in Lindenhurst, NY. The first general meeting of Jan. 2012 was held at Atlantic Chevrolet in Bayshore where members received training in the new GM Hybrid technology. In March, LIABRA participated in the Northeast Leaders conference where LIABRA Executive Director Ed Kizenberger was the master of ceremonies. At the conference, association representatives from the Northeast area gathered to discuss and exchange information about what is happening in their state. At this time LIABRA also participated in the Northeast Trade Exposition. In April, LIABRA held its annual Lobby day. LIABRA members gathered in the New York State capitol of Albany to visit with their local legislators to discuss proposed legislation and
introduce new legislation. LIABRA is assisted by a lobbying team headed up by Pamela A. Madeirous of Greenberg Taurig LLP. In May, LIABRA held a Chrysler OEM Procedures and Repair Standards seminar at Security Dodge in Amityville. In June, LIABRA held its annual 250 club drawing at LIABRA headquarters in Lindenhurst. Proceeds of the drawing are earmarked for the Legislative Program. In August, LIABRA participated in the Competition Automotive Group Annual Barbecue and Car Show. Proceeds of the show are used to support local charities. In September, LIABRA held its annual Golf Tournament at the Port Jefferson Country Club. Over 200 members and industry participants gathered together for a great day of golf, comradeship and fun. In October, LIABRA held its annual Recycled Rides presentation. In 2011, LIABRA members rebuilt and restored 10 cars that were given to Disabled Veterans in a ceremony at the VFW Hall in Centereach. In 2012, LIABRA Recycled Rides Program again gave 10 cars rebuilt by LIABRA members to disabled veterans. How-
ever, the 2012 presentation was delayed by Hurricane Sandy until Dec. 15. Also, in October, LIABRA held its general meeting at Levittown Ford. A seminar on New York state labor laws was presented by the Arnold Standard Co., a management consulting firm. Parts bidding issues and energy savings program were also presented. In November, LIABRA held its annual BMW Repair Seminar at Competition BMW in Smithtown. Members learned the latest in BMW technology and repair procedures. Legislative initiatives included sponsoring bills that require fair claims settlement, price capping, anti- steering, parts choices, and automotive material restriction purchases. Looking at 2013, LIABRA plans, along with its continued legislative and regulatory initiatives, to develop an educational curriculum that involves shop certifications and to develop a larger consumer awareness program through more member shop involvement, such as the recycled rides program.
Sussex Tech Students’ in DE Do Dealership Career Check
The sophomore Collision Repair class at Sussex Tech High School in Georgetown, DE, recently visited IG Burton and Hertrich auto dealerships in Milford for tours of the facilities as part of their career exploration. Stu-
Collision Repair students recently visited auto dealerships in Milford. They were greeted at IG Burton and escorted by Eli Schrock, service manager
dents attending were Mary Bennett, Anthony Crew, Jeremy Dulis, Russell Frederick, Aubrey Jernigan, Kani Kane, Colton Platzke, Treavor Sample, Zachary Windsor, and juniors Mark Cox and Kathryn Bickford.
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AASP/MA Reviews a Successful Year by AASP/MA staff
AASP/MA successfully fought the insurers’ DRP and fraud bills last year in the legislature and we are planning to work very hard through the 20132014 session to advocate that the legislature and Division of Insurance consider the negative consequences to consumers if these bills are passed.
The Massachusetts Right To Repair Act—a bill AASP wrote and sponsored—was also passed into law. Our co-development of the I-CAR “FastTrak” program offered all participating shops the opportunity to gain “GoldShop” status in five weeks, at one central location, and at a cost of approximately $2,500. Normally, this would have taken several months and cost over $5,000, in addition to having to travel all over the region to attend courses. AASP/MA also offered a presentation of available training grants through the Massachusetts Workforce Development Fund so shops could save 50% of their training costs for
these courses. This resulted in the savings of more than $50,000 for shops that enrolled in the program. Our “Education Matters” program, in its second year, hosted nearly 1,000 attendees in 2012 at events such as: • a three-part CCRE seminar on operating a more profitable shop with less insurer intrusion • a “world-class” seminar on collision parts bidding programs, featuring SCRS, CCRE and AASP and a national parts director from Toyota • several presentations, including: the United States Postal Service, “Every Door Direct Mail” marketing, OSHA and EPA experts on shop safety and environmental programs, a representative from the Commonwealth of Massachusetts “Rapid Response” program, which deals with an often unpublicized problem—employee layoffs, AASP’s own website designer, Bill Enross addressed the subject of online marketing on websites, mobile devices, smart phones, and social media and job costing from 3M. These and other portions of our “Education Matters” program helped our members run better, more efficient and more profitable businesses in 2012. For fun, AASP/MA also hosted a golf outing, BBQ, clambake and our famous Casino Night for members.
CCRE Reviews Activities Accomplished in 2012 The Coalition for Collision Repair Excellence (CCRE) held several events and activities during 2012. March events included the AASP/NJ Northeast Leadership Conference and Trade Show to review industry trends and insurer involvement in the collision repair industry; the Autobody Association of Connecticut quarterly meeting where dialogue included business management philosophies and insurer involvement in our industry; and a three-day legal seminar held in late March in Philadelphia, PA, with noted attorneys and speakers to discuss legal documents, assignments and contracts for collision repairers. In May, CCRE activity centered around a seminar and a general meeting with repair shop owners in Birmingham, AL, to discuss business management, industry problems and PartsTrader Issues. In June, the CCRE met in Hartford, CT, to present a condensed version of the CCRE Level I and Level II seminars and to discuss the changing industry, legal issues faced by collision repairers and types of liabilities we are exposed to. Several events happened in September: On Sept. 11, CCRE spoke on
industry issues and PartsTrader issues at the ABAC Connecticut meeting; on Sept. 12, CCRE participated in a panel discussion during AASP/MA Annual Meeting regarding PartsTrader and other industry issues; Sept. 15, the CCRE and AASP/MA hosted a condensed version of Level I business philosophy; Sept. 20, CCRE held an advanced three-day legal seminar in Philadelphia, PA, to discuss issues involving repair contracts, assignment of proceeds and contracts of adhesion. In October, CCRE and AASP hosted a condensed version of a Level II management seminar. Finally, in December, CCRE and AASP/MA hosted a legal seminar involving Massachusetts law and assignments.
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On Creative Marketing Integrity Sells!
with Thomas Franklin
We recently ended an election campaign season during which exaggerations, misrepresentations and outright lies were rampant. It made me think of John, a small shop owner who surprised me when I asked where his customers came from. He had been in business for nearly 30 years, but he told me he didn’t rely on any corporate referrals, dealership business or any of the other usual sources that many shop owners tell me are vital to keeping them in business. “So,” I said, “where does your business come from?” He replied, “My customers just keep coming back. After 30 years, you accumulate a lot of customers.” Right away I thought about many other owners who complain to me that they have lost a lot of their old customers. They tell me their customers are swayed by steering, websites, ads, and news stories designed to scare them away from small shops. I asked John if that happened to him. “Sometimes,” he replied, “but mostly when they try to sway my customers, they fail. My customers are my friends. Good friends never desert you.” John isn’t the only small shop owner in business for more than 20 years. What does he do different that binds his customers to him with such loyalty? I overheard a couple of conversations with his customers. I noticed that John was scrupulously honest. He went to great pains to get the truth of the situation across to each customer. It
appeared to me that no prospective customer would ever doubt John’s integrity. There was no phony “trust me” kind of selling on his part. He simply came across as 100% sincere and 100% determined to give or get for his customer the best deal possible. That kind of integrity speaks for itself. I’m sure some would say to me, “Of course he comes across with integrity after 25 or 30 years! Who wouldn’t? But how can you communicate integrity instantly when you are meeting a prospective customer for the first time? Or when you’ve only been in business for less than a year? I recently had some work done on my house. The handyman that did the work sent me a thank-you note (not something I’ve ever received from a handyman before) and also he sent me something else I had never received from a handyman before: something he called “The Code of a Handyman.” It was a statement of his personal commitment to do a good job, to be on time, to perform as promised, to provide top service for a fair price, and a few other commitments to reassure me and his other customers that neither he nor anyone working with him would ever steal anything or knowingly damage any property or falsely represent what had been done. In short, it was a code of handyman honor, a pledge of integrity far more effective than verbally boasting of his integrity. Ralph Waldo Emerson once commented on a
WIN Seeks 2013 Sponsors
The Women’s Industry Network (WIN) is seeking corporate sponsorships to help expand its 2013 educational and mentorship programs offered to women in the automotive industry. WIN offers several levels of corporate sponsorship opportunities, including bronze, silver, gold, platinum and diamond, as well as sponsorship of its annual Educational Conference. Each sponsorship enables the organization to provide women in the collision repair industry with educational opportunities that position them for future success. All sponsors of WIN are recognized on the organization’s website,
promotional items, signage, and membership functions and activities. Visit WIN’s website to view the monetary donation amounts associated with each level of sponsorship. “WIN is dedicated to providing women in the automotive industry with a platform for growth,” said Victoria Jankowski, chair of WIN’s board of directors. For more information about sponsorship opportunities, contact WIN board member Susanna Gotsch at sgotsch@cccis.com.
10 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
boastful political speaker. He noted, “The louder he talked of his honor, the faster we counted our valuables.” The dictionary defines ‘integrity’ as follows: 1. Rigid adherence to a CODE of behavior. 2. The state of being sound; unimpaired. 3. Completeness; unity. Codes of ethics are often provided by various industry associations and also franchise operations. Such a ‘code,’ posted in a conspicuous place, can serve to reassure the prospective customer that this place of business is committed to following a definite criterion of ethical behavior. Of course the prospect can only hope the business owner and employees will actually adhere to the code they have posted, but at least the promise is there for all to see. Recall that the third definition of ‘integrity’ was “completeness; unity.” It comes from the same root word as ‘integrated.’ That word has come to have a racial connotation, but actually
means “to make into a whole by bringing all parts together.” The business owner who has ‘integrated’ into his or her community and become an ‘integral’ part of that community, is generally viewed as concerned and thus trustworthy. It is no longer necessary to ‘sell’ the public on one’s integrity. During the worst of the recession in the early 1990s, John Baraona, owner of ‘Fussy Cleaners’ in Akron, OH, offered free dry-cleaning services to temporarily unemployed customers. When they finally landed new jobs in the cleaned and pressed clothes John had provided for them, they became his most loyal customers. Was there any further need for John to publicize his integrity? Integrity sells! In the short run, it may always be possible to lie and deceive, to gain a temporary victory. But in the long run one’s reputation for integrity, trustworthiness and honesty is the best sales and marketing asset of all.
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 11
LIABRA Helps Gift Vehicles to Local and Disabled American Veterans The Long Island Auto Body Repairmen’s Association (LIABRA) partnered with several businesses to gift 10 vehicles to local and disabled veterans this holiday season. The fifth annual Recycled Rides Giveaway was held at the local VFW Hall 31 on Dec. 15 in Centereach. Insurance companies that donated the vehicles were GEICO, State Farm and Progressive. Several Long Island auto body shops refurbished the vehicles: 112 Automotive Center, Mike G’s Perfection Auto Body, Bi-County Auto Body, Matt’s One Stop Collision, Crestwood Auto Body, International Auto Painting & Collision, The Collision Centers of Babylon, Misner Auto Body, Motorcar Collision, Canon Collision, Padock
Auto Body, and BOCES of Nassau County. The Veterans of Foreign Wars (VFW) of Suffolk County, NY, Council helped locate the veterans who
need reliable transportation. The Recycled Rides program is a nationwide awareness project whereby members of the National Auto Body Council (NABC) refurbish and donate recycled vehicles to families in need in their communities. It is a community relations program intended to build good will at the local level, while improving and promoting the image of the collision industry on a national level. Insurance companies and paint and parts vendors donate their resources to assist collision repair facilities in making this project possible.
12 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
NC Repairer Sues Insurer on Behalf of Customer Michael Bradshaw of K&M Collision in Hickory, NC, recently filed a lawsuit against Nationwide Mutual Insurance Company on behalf of his customer and the insurer’s policyholder. Only after unsuccessful attempts to have his customer’s insurer provide ample consideration for reasonable and necessary parts, procedures and materials was it necessary to inform his customer of the short pay by their insurer. The customer authorized K&M to proceed with the repairer’s recommended repair activities and signed documentation authorizing Bradshaw to act in his behalf in filing a lawsuit against their insurer seeking full compensation for the repairer’s recommended and performed activities. The claim includes denial of procedures including test-drive, removal of molding adhesive from painted panels, tint color, finish sand and buff and underpayments of numerous other reasonable and necessary processes including body, refinishing and mechanical and frame labor rates, material allowances and storage charges for the insurer’s delays. The total amount sought in the lawsuit is $2,956.98 plus legal fees and costs. To avoid the necessity of holding
the vehicle until receipt of full payment, K&M Collision allowed their customer to take possession of the properly repaired vehicle with the understanding that all billings remained their full responsibility in the event the insurer failed to provide full payment. Michael Bradshaw states, “We value our customers and work hard to ensure their repairs are done properly, thoroughly and in a timely manner. It’s unfortunate that such legal activities have become necessary. Consumers rely upon insurers to be there in their time of need and when they need them most, and when they fail to keep their promise, who can blame the consumer for becoming upset. Our efforts will be to illustrate to the court the insurer’s intentional Breach of Contract, Unfair and Deceptive Trade Practices and their acting in Bad faith.” “When an insurer fails to fully ascertain the full extent of all loss related damages and /or fails to provide proper consideration for each necessary process, part and/or material, the failure can be defined as either ignorance, gross incompetence or intentional misrepresentation… or a combination thereof,” said Barrett Smith of Auto Damage Experts.
www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 13
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www.autobodynews.com | JANUARY 2013 AUTOBODY NEWS 15
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
How Body Shops Can Use LinkedIn with Ed Attanasio
A LinkedIn expert and a Forbes Top 30 Social Media Power Influencer, as well as the creator of the AdAge Top 100 Global Marketing blog and the owner of Windmill Networking, Neal Schaffer is a global social media conference speaker who is also known for his two award-winning and critically acclaimed social media books: Maximizing LinkedIn for Sales and Social Media Marketing, and Windmill Networking: Maximizing LinkedIn. He currently speaks on social media at approximately 50 events each year. I sat down with Schaffer recently and asked him the question many collision repairers nationwide are asking--how can I use LinkedIn to help my business?
Q: With all of the social media sites out there, does LinkedIn have a role in the entire mix when it comes to body shops and the collision industry in general? NS: It’s ideal for what I call outwardfacing employees. These are your estimators, front office people and even the techs that deal with the public on a regular basis. And, of course, the shop owner needs to have his own LinkedIn profile, with a picture and a bio. LinkedIn is designed for business people who want to interact with other professionals in their respective fields. People are using it to constantly look for new products and services and vice-versa. Are you looking for a new piece of equipment or a better management system? Finding the top decision makers in each business segment can be done quickly and easily using LinkedIn.
Q: What should we know about creating a profile? NS: Make it complete, with your employment history and keywords that will make it easy to find by other collision professionals. Use LinkedIn for yourself and then also create a page for your company. Users will want to link to you and others will link solely to your company page. You can do so much once you learn the bells and whistles of LinkedIn. We instruct companies how to recommend sales and build a marketing program via
LinkedIn and if they follow the plan, it works without fail.
Q: Now I have created my profile and a company page on LinkedIn and a lot of people want to connect with me— hundreds of them. Should I accept all of them or carefully handpick each one? NS: Some folks haven’t completely grasped the whole purpose of LinkedIn and want to limit their connections for one reason or another. But, think about it—how many people do you meet in the course of running your company or doing your job--maybe 500 or even 1,000? You never know how someone can help you in your business in the future. An old college buddy may want to invest in your business and help you to open up a new location? A former employer may now have a job with a vendor you want to purchase products from? How many people do you meet at shows like SEMA, AAPEX, etc.? I give my clients this easy formula: Take your age and multiple it by 10 times and that’s how many LinkedIn connections you should have. Don’t just connect with people you know— go broader and connect with their friends and their vendors. The wider your audience the more likely you’ll find beneficial deals and relationships through LinkedIn. Reach out as much as you can and never take social media personally. Let as many into your net that want to be there and then devise techniques for keeping them on your boat.
Q: Okay, I have 500 connections now. What’s next? NS: Engagement is the key. Too many newbies create their profile and invite a bunch of people, but then they drop the ball completely and say, hey LinkedIn didn’t work for me. Create some interesting things for people to look at, such as niche applications or slideshows showing your shop and stressing your strengths. And always be looking out to meet new people, by joining special groups or entering discussion forums. Spend some time every week (maybe less than an hour) on LinkedIn and comment, discuss,
16 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
offer your expertise and provide useful information whenever you can. Any form of social media is only as valuable as what you are willing to do with it.
Q: Can I start my own group to discuss things that are important to me, such as green practices, the ins and outs of DRPS and how to use my management system the best way? NS: Definitely—groups are a great vehicle for becoming a magnet for more connections today and down the road. Groups can position you as an expert on any subject and will bring you a ton of secondary connections. You can also join as many as 50 other groups to further connect you to your industry. Many of the paint companies have groups and all of the professional trade organizations also have one, in most cases. Staying in touch with your existing friends, colleagues and associates is important,
but finding new ones is even just as valuable. Once they establish a group, we tell our clients to create a very targeted ad campaign around the group. It’s inexpensive and you can use it to pinpoint people ten miles from your shop if that’s what you want to do. They might be future vendors or even customers. Being involved with top professionals in any area can be valuable to the further success of any company. Q: If my shop hasn’t done any social media up to this point, does that mean I’m too late to the party? NS: I tell people, it’s never too late to be a part of the social media game. All it takes is a few hours weekly and pretty quickly; you’ll be a pro at it and have a significant following. Let it build gradually and create new content; join groups and start your own and within six months--you’ll see the value of LinkedIn!
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Society of Collision Repair Specialists Takes a Look Back at 2012 by Aaron Schulenburg Executive Director, SCRS
2012 was an interesting year in the industry; a year that was filled with both new and pre-existing challenges for collision repair business owners. Business activity fluctuated from week to week causing market uncertainty, daily reports of consolidation filled the headlines of the trade press, insurance companies continued to develop ways to interject themselves into collision repair business management, and reports of technology development cast a long term question mark over the future of collision repair businesses. When concern and uncertainty occupy the marketplace, businesses often look to the collective power of community to find information, lean on support from their peers, and collaboratively innovate solutions. As a trade association that has spent more than three decades solely dedicated to educate, inform and represent the collision repair professional in all aspects of the industry, 2012 was a remarkably busy year for the Society of Collision Repair Specialists (SCRS). In taking stock of the past year, I am confident that the entire staff and volunteer board of directors of SCRS are proud of the work that we embarked upon in each of the three areas of our mission. While the ultimate results of those efforts may not be fully realized, the momentum from that work will serve the organization and its membership well, leading into 2013. As a member driven organization, the success of our efforts is often best gauged by the response of our membership. For SCRS, our actions in 2012 have been met by significant levels of growth in every individual and corporate membership category. In addition to welcoming individual businesses, SCRS has proudly added new state and regional Affiliate Associations to our network with the Northern Michigan Body Shop Association, the Texas Independent Automotive Association, Idaho Autobody Craftsmen Association, Alabama Automotive Repair Industry Society of Excellence and the Utah Auto Body Association. These state groups extend the reach of SCRS’ informative network, bringing our Affiliate Association relationships to more than 40 affiliated groups across North America, and strengthening the breadth of
our voice as we represent the industry. It is through this growth that our organization is able to further our resolve, knowing the message points, the areas of focus, and the activities we have undertaken have spoken to those we aim to represent, spurring unsolicited growth in support and participation. But a thriving trade association requires more than simply the ability to boast one of the broadest networks of collision repairers such as SCRS’; it requires action and activity that speak to the heart of the memberships issues. Our members give us the tone and tenor behind our voice, but it is our responsibility to make sure it that collective voice is raised at the right time, for the right reasons, and that our chorus echoes through the industry’s halls. In fact, vocalizing repairer’s perspectives at a national level was not just a continued responsibility for the Society in 2012, but a centerpiece of the association’s efforts. From entering into the year with a written response to an article in USA Today that claimed that auto body shops say they, not insurers, should set costs, to an end-of the year announcement that SCRS would be working with other repairer groups to facilitate ongoing repairer-only forums in conjunction with other industry events; 2012 has marked a year where repairers understood the need to embrace the power of community, and to stand up for their business independence. No issue became a bigger focus for SCRS, or the industry, than that of insurer mandated parts procurement programs, which first received focus due to the launch of State Farm’s pilot program with PartsTrader in several markets across the U.S. in the spring. As part of our responsibility to both inform and represent our membership and our industrial community, SCRS issued a series of informative releases on this program throughout the year; the first being issued as early as April, and marking one of the industry’s first glimpses into the new program at the time. This release was followed with an interview SCRS conducted with representatives from New Zealand highlighting the impact that similar insurer-mandated parts procurement models have had in that geographic market. The purpose of this information was simple; the more informed and educated collision re-
18 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
pairers in the U.S. are about the potential impact and ramification of such programs, the more equipped they are to form a proactive individual business strategy on how to address such a mandate if their business is faced with it in the future. There was perhaps no greater industry advocate on this issue in 2012, because our membership made it clear that this issue was paramount to virtually all others. Additional releases, presentations, debates and efforts centered on this issue throughout the year, mirroring the concern and pushback expressed by the both the industry and by individual businesses alike. The end result of such communication and industry activism is yet to be seen, but the repairer’s voice was certainly heard. People are paying attention, and more repair facility owners today understand what has happened in countries like New Zealand and Canada, because of information that only became available through an organized international network such as the one provided by SCRS. Representing an industry takes the confidence and understanding to know
when collaboration will generate the most substantial and beneficial results for the industry, and SCRS has been proud to continue our history of work with other associations and entities in 2012. In November of 2011, SCRS and other collision repair organizations released a monumental joint position statement officially recognizing OEM vehicle manufacturer published repair procedures as the industry’s standard of repair. As continuation of that effort in 2012, SCRS hosted a face-to-face meeting in April of national repair associations, I-CAR, the OEM Roundtable and top automakers in Oklahoma City, OK. The meeting was a continuation of the step taken by SCRS and more than two dozen additional state, regional, national and international collision repair organizations. The initial positioning, along with the leadership provided by SCRS and others in ongoing meetings and communications have led to major OEM vehicle manufacturers responding with amazingly innovative solutions that have the potential to change the face of our industry. One such tool with potential
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Sherwin-Williams Hosts A-Plus Network Vision Conference Sherwin-Williams Automotive Finishes hosted its invitation-only APlus Network Vision Conference in Palm Springs at the beautiful La Quinta Resort Dec. 5–7. The theme of the conference was “Focus on Your Business.” More than 100 leading A-Plus network collision repair owners and managers from the U.S. and Canada attended. The event kicked-off with a round of golf at the TPC Stadium Course “PGA West” and was followed by an outdoor welcome reception at La Quinta’s “Hotel Waterfall.”
and 3. Private equity funds are now fully engaged in the pursuit of MSO’s which will bid up the price of acquisitions. His presentation concluded with his prediction that: ● Large MSO operators will expand into all regions of the country over the next 10 years ● Independent collision repairers and small MSO’s will work harder for less revenue as insurance carriers ‘guide’ their customers to larger MSO operators ● The larger MSOs will start having
“The Four Horsemen of Consolidation” presented by Rex Green, Director of BB&T Capital Markets
Thursday’s keynote presentation was given by Rex Green, Managing Director of BB&T Capital Markets. The presentation comprised an investment banker’s view of the collision industry. Rex started his presentation by stating “Don’t shoot the messenger.” His three key takeaways were: ● DRPs will continue to increase their influence in the market ● Shops with high DRP volume are attractive to MSO’s (the ‘Four Horsemen’ of the Current Consolidation),
strong brand recognition among car owners, influencing the flow of claims away from independents ● Independents and small MSOs should be considering one of three options: ► Sell “sooner” or at an otherwise advantageous time ► Grow now and sell later ► Change their business model to offset the decline of insurance-pay customers Green’s presentation was fol-
Sherwin-Williams’ Team (l to r): Bill Mays, Director of Sales NE Region; Rob Lynch, Senior VP of Sales; Craig Williams, Director of Global Vehicle Refinish, OEM and Services; Kurt Hammond, Director of Sales West Region; Brandon Devis, Director of Sales Force Effectiveness; and Troy Neuerburg, Marketing Manager of Business Services 20 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
lowed by Matt Ohrnstein’s presentation, “The Collision Repair Industry Competitive Landscape” and “The KPI’s of Integrity Leadership” by Marcy Tieger, both from Symphony Advisers. Gary Ledoux from American Honda Motor Co. presented Honda’s “ProFirst” new body shop recognition program and explained the benefits to shops Gary Ledoux (increased opportunities to reach more customers),
Joe and Jessica McKenna, owners of Golden West Collision Repair in Sunnyvale, CA
what’s required to qualify and the benefits of participation. For more information on the ProFirst program, go to profirst.honda.com or profirst.acura.com. The afternoon concluded with a “Current State of the Industry” presentation by Raymond Chew of CCC Information Services and a roundtable discussion by Sherwin-Williams Business Consulting Services titled “Keys to Keys.” Thursday’s dinner was well attended (l to r): Dave Dewalt, Steve Feltovich, Lee Rush, and featured a silent auction to Managers of Business Consulting for Sherwin-Williams Automotive benefit Operation Comfort.
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Hurricane Sandy Fuels Auto Sales Not Seen in Four Years In the aftermath of Superstorm Sandy, same month a year ago, according to automakers reported the highest level the research firm Autodata. Because of new vehicle sales —1.1 million— of Hurricane Sandy, it is expected that the best month since January, 2008. the industry will exceed 2012 sales Sales for new cars rose 15% in No- forecasts and that recovery will convember. The increase in sales is at- tinue into 2013. tributed to totals due to the hurricane, Kelley Blue Book sees the storm which slammed into the East Coast in demand continuing through Decemlate October. It is estimated that ber which could possibly end up being 200,000 vehicles will be replaced in the strongest month in vehicle sales in the Northeast. November, 2012, 2012. marks the industry’s best monthly sales rate in four years nationwide. Compared to last November, sales rose 11.9% from a year earlier, topping analyst forecasts. That put sales at an annual pace of 15.5 million vehicles, according to Autodata. So, how good were November sales? Honda and Cars totaled by Hurricane Sandy Nissan had the best November and BMW its best U.S. month The storm damaged more than ever. Automakers sold more units in 230,000 vehicles, including 190,000 November than in October, only the in New York and New Jersey, accordsecond time that has happened in 24 ing to estimates from the National Inyears of records. surance Crime Bureau. But analysts Analysts say that between 20,000- say only about 25% of those cars will 30,000 of the sales during November be replaced with new ones because the were by consumers replacing Sandy replacement value in most cases flooded, damaged or destroyed vehiwould only be enough to replace a cles. Some analysts say that those conused car with another used car. sumers who meant to buy in October In addition to Hurricane Sandy were delayed by the hurricane and helping to lift auto sales to a four-year waited to purchase in November when high, healthy sales in November are things calmed down. also attributed to the need to replace In West Babylon, NY, the Honda aging cars and a steady supply of fresh, dealership there move its entire new new models with superior fuel econand used car inventory inland as the omy, the New York Times reported. storm approached because their regu- Typically, the end of the year is a good lar lot was swamped. season for the auto industry anyway, especially for those offering good rebates. Analysts said the strong sales across the industry proved that the gain was the result of more than just sales delayed by Sandy. Most believe that sales would have been above the 15 million pace even without the storm’s effect. “I’ve been in business since 1964, Besides the surge in new car sales and I’ve never had a month like this bedue to the storm, reports say U.S. car fore,” said Gary Schimmerling, presbuyers are returning to showrooms in ident of the Honda dealership, about 45 recent months due to pent up demand minutes east of Manhattan on Long Isand because Americans are feeling land. He sold more than 250 new vehimore confident in the economy, becles in November, versus 100 in a cause there has been some improvetypical November, Schimmerling said. ment in the job market, and consumers The New York Times reported have easier access to credit and fithat preliminary figures showed that nancing. 1.14 million vehicles were sold in NoJesse Toprak, an analyst at Truevember, in contrast to 994,000 in the Car, said that larger economic worries
22 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
such as the fiscal cliff have had little impact on car buyers, at least so far. “Right now, consumers are feeling better about making big ticket item decisions,” said Toprak. But, he added, that could change depending on the political climate and the stock market. However, automakers fear that talks of the ‘fiscal cliff’ could put a damper on the party, if Congress and the White House can’t reach an agreement. The ‘fiscal cliff’ term refers to the tax increases and government spending cuts set to roll into effect starting Jan. 1 if the government can’t come to an agreement to cut the deficit. Toprak and other analysts believe that car sales will get an additional lift from Sandy in the coming months, as consumers move to replace damaged cars after they’ve received checks from their insurers. “It typically takes 90 days to sort out the impact of a storm like this,” said Michelle Krebs, a senior analyst for Edmunds.com. AutoGuide.com reported one analyst who said he doesn’t read too
much into the November increase of auto sales. “Automakers do not sell cars to customers, they sell to dealers,” said Jim Hall, Managing Director of 2953 Analytics. “And retailers replenish their inventory faster than consumers purchase vehicles, so that could explain a lot of the sales bump. There is nothing worse for a dealer than to be low on stock.” Toyota and Honda reported large increases in sales that were partially due to replacing storm-battered vehicles. Toyota said its November sales jumped 17.2%, and Honda reported at 38.9% increase. One analyst said Honda is the most popular brand in New York, New Jersey and Connecticut. Nissan said its sales increased 12.9% in November. General Motors reported a low sales of increase of just 3.4%, mostly because of a drop in truck sales. Ford Motor Company reported its sales were up 6.4% in November because of the popularity of the Focus sedan and C-Max hybrid models. Chrysler fared well with a 14.4% increase in November.
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AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News
Ford Fusion Wins ‘Green Car of Year’ Title
Ford Motor Co.’s all-new Fusion won Green Car Journal’s “Green Car of the Year” title at the recent Los Angeles Auto Show. The Fusion beat out the Dodge Dart Aero, Ford C-Max, Mazda CX-5 SKYACTIV and the Toyota Prius c. It is the eighth consecutive year that Green Car Journal has recognized a “Green Car” of the year. Previous winners include the compressed natural gas-powered Honda Civic in 2011 and the range extended plug-in hybrid Chevrolet Volt in 2010. The Fusion comes with multiple internal combustion engine options, and as a hybrid and plug-in hybrid model. Ford’s Fusion has a base price of $21,700; the hybrid model, which gets a combined 47 miles per gallon, starts at $27,200. The C-Max hybrid, which also gets a combined 47 miles per gallon, starts at $25,200. The winner was selected by a jury of environmental leaders, including Sierra Club Executive Director Michael Brune, Ocean Futures Society President JeanMichel Cousteau, Global Green USA President Matt Petersen, “Tonight Show” host and auto enthusiast Jay Leno, and Green Car Journal staff.
GM Recalls 2012 Buick Verano, Chevy Cruze, Sonic
GM is recalling 2,949 model-year 2012 Buick Verano, Chevrolet Cruze and Chevrolet Sonic vehicles because the airbags could fail, according to the National Highway Traffic Safety Administration. The recall involves the driverside front airbag, which contains a shorting bar that could intermittently contact the airbag terminals, NHTSA reported. If the bar and terminals are contacting each other at the time of a crash, the airbag may not deploy. This increases the risk of injury.
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Volkswagen Beetle Recall
Volkswagen is recalling certain model year 2012-2013 Beetle vehicles, manufactured from Feb. 2012 through Aug. 2012, and equipped with leather sport seats. If the right front passenger seat gets wet, the occupant control module may not properly detect the presence of a child restraint installed in the seat. If the control module does not detect a child seat installed, the airbag will not turn off. If the airbag does not turn off, in the event of a crash necessitating front airbag deployment, a child secured in the child seat may be at an increased risk for serious injury. Volkswagen will notify owners, and replace the control modules, free of charge.
Ford Recalls Escapes, Fusions for Engine Fires
Ford Motor Co. issued its fourth recall Nov. 30 for its 2013 Ford Escape SUV, citing a fire risk. The recall affects 73,320 Escapes, as well as 15,833 midsized 2013 Ford Fusions. Some 80,000 of the recalled vehicles were in the U.S. It’s the latest setback for the Escape, introduced in June and a key vehicle in Ford’s lineup. The Dearborn automaker urged owners of the vehicles with 1.6-liter engines to contact dealers immediately, to arrange loaners. But unlike an earlier Escape recall, this one didn’t caution drivers to stop driving them. The recall is for Escape and Fusion SE and SEL models with a 1.6-liter engine. The company said it has not yet established repair procedures, and can’t say when owners will be able to get their cars fixed. A Ford spokesman said engine overheating can lead to fluid leaks, which may come in contact with a hot exhaust system and trigger a fire. Ford said it received 13 reports of engine fires that followed overheating. No injuries have been reported. Ford told the National Highway Traffic Safety Administration that the first report of an Escape fire was Sept. 7 in Florida.
26 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
150,000 Toyota Tacoma Trucks Recalled Due to Rust
Toyota is recalling its popular Tacoma pickup truck, sold in certain parts of the country. At issue is the carriers that hold the emergency spare tire underneath the truck may not be adequately protected from the chemical road deicers used in several states. If the tire carrier rusts, the spare tire may fall off the truck and present a road hazard, increasing the risk of collisions. According to the National Highway Traffic Safety Administration, the rust problem affects 150,000 2001 to 2004 model year Toyota Tacoma fullsize pickup trucks sold in so-call “rust belt” areas of the U.S., including: Connecticut, Delaware, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin and Washington, DC. Toyota has not yet developed a remedy to this situation, but they will notify owners when a fix is in place.
Hyundai, Kia Faces $775 M Lawsuit Over Fuel Economy Lies
A lawsuit was filed against Hyundai Motor Corp. and Kia Motors Corp for over $775 million in damages due to the auto companies admitting they overstated the fuel economy in close to 1 million vehicles in the U.S. and Canada. Reuters reported the lawsuit was filed in the U.S. District Court for Central California on behalf of 23 Hyundai and Kia vehicle owners. The lawsuit is expected to challenge Hyundai and Kia’s compensation plan that they have set to satisfy disappointed customers. The South Korean automakers admitted they had overstated the fuel economy on 13 Kia and Hyundai models after the U.S. Environmental Protection Agency released a report about the mistakes. The agency looked into the matter after over a dozen customers filed complaints.
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January 2013
GM to Hasten Development of Electric Vehicles in China
General Motors Co. said it is increasing the speed of its development of electric vehicles in China, where it will build and sell an all-electric Chevrolet Sail Springo in addition to selling the Chevrolet Volt extendedrange plug-in electric. GM recently announced plans to build 500,000 vehicles a year by 2017 that would be powered in some way by electricity. That would include plug-in electrics, pure electrics, mild hybrids that use the company’s eAssist technology and full hybrids, according to the automaker. GM China opened an advanced materials lab in Shanghai in Sept. 2011 where employees work on battery technology and lightweight material research. Workers there can build cells for lithium-ion batteries.
Volt Sales Plummet Due to Inventory Issue
Chevrolet sold 1,519 Volts in November, a 33% rise over the same month a year ago. But that was only about half the record 2,961 vehicles sold in October and 2,851 in September. Don Johnson, U.S. vice president of Chevrolet sales and service, attributed the fall in Volt sales from its record-setting tally in October as an inventory issue, felt particularly hard in California. “Dealers are just clamoring for more,” he said of the California market, where GM sells about 34% of Volts and where it recently had just an eight-day supply of the vehicle. Inventory is now up to 23 days for California and about 60 days for U.S. supply, which Johnson described as ‘ideal.’ Volt sales through 11 months this year totaled 20,828. It’s difficult to tell whether expiration of favorable sales incentives also led to the fall in Volt sales. Without special incentives, the Volt costs $39,145 before a $7,500 federal tax credit. That’s more expensive than the base prices for Toyota’s Prius plug-in ($32,000), Ford Motor Co.’s C-Max Energi plug-in ($32,950) and Nissan Motor Co.’s allelectric Nissan Leaf ($35,200).
Continued from Cover
Record Year
dependent repair operators can survive if they evolve their business and participate in a collision repair solution that is less expensive to do business with.”
Boyd Group Last week Boyd Group has announced the opening of their 180th location. The 15,000 square foot facility in Orlando, Florida, previously Colonial Auto Body, will now operate under the Gerber Collision & Glass trade name, the Boyd Group’s largest U.S. brand. The Boyd Group now owns and operates 37 repair centers in Florida, a state in which the company didn’t even do business in until a year ago. President and COO of the Boyd Group’s U.S. operations Tim O’Day said, “We strongly believe that Florida is an attractive market for the Boyd Group. In June this year Boyd Group announced that it would acquire the assets of Pearl Auto Body, which owns
six collision repair centers in the Denver area. At the end of last year, the Boyd Group owned 136 locations in the United States. In the past 12 months, the company has added 44 stores including the two recent acquisitions of Autocrafters and The Recovery Room which accounted for 23 of this year’s new locations. And Boyd is not the only consolidator growing rapidly this year.
Caliber Collision Caliber is a multi-shop operation with 112 locations—including 49 in California, 48 in Texas, eight in Arizona, and two in Nevada. The company also completed its third acquisition in the greater Oklahoma City market. 2011 revenues were $365 million, a 15.5percent growth over 2010, said Steven Grimshaw, president and CEO. Caliber Collision began 2012 with 94 locations and ended the year with 112. Most of their purchases were one and two-shop operations with their biggest purchase being the five locations of 101 Collision in California, in February.
Mark Sanders, Chief Operating Officer for Caliber, recently said, “We will continue to increase our market penetration in this and other southwestern U.S. markets in the months to come.”
ABRA Auto Body & Glass ABRA Auto Body & Glass has also been on an acquisitions streak. ABRA announced the acquisition of all five Collision Solutions locations in Indianapolis, IN. ABRA’s five newly acquired repair centers are located in Kensington Commons, Robbins Park, Beech Grove, Shelton Heights, and Westfield. The deal increases the number of ABRA repair centers nationwide to 132 in 14 states. ABRA now operates 128 stores in 14 states. At the end of last year, ABRA had just 112 locations in 12 states. Service King Richardson, TX-based Service King was itself acquired by a management team backed by the investment firm, Carlyle group. Service King grew by 16 shops this year to a total of 63 locations. With 49 stores all within the state of Texas, Service King expanded
to the state of Arizona with its acquisition of Auto Body World and also became the latest industry consolidator to attract Wall Street’s attention when the Carlyle Group stepped in to acquire a majority ownership in the chain.
Adding in a few additional acquisitions this year by the smaller consolidators like Cooks Collision (which added 8) and Collision Revision (2), the year 2012 has seen 104 repair facilities acquired by these six companies alone. That is more shops than the total number of locations Caliber Collision owned just 12 months ago.
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American Honda Launches Two New Consumer Websites by Ed Attanasio
American Honda recently launched two consumer-related websites to provide pertinent and timely information to owners of Hondas and Acuras. See next story for new collision center focused Honda website. Earlier this year, the manufacturer launched its collision consumer site, Collision.Honda.com, after years of
not know that aftermarket parts could be installed when their cars are being repaired at a body shop or collision center. They understand that aftermarket parts are used in the mechanical world, because they drive by the parts stores every day, but they’re not aware that aftermarket parts exist in the collision industry. In the past, they assumed that OE parts were being used in their cars. They didn’t realize there
Collision.Honda.com tells owners of Hondas and Acuras what to do when they get in an accident in its Accident Assistant section, while they get a glimpse into what happens when their cars get fixed by accessing the site’s Collision 101 section
development and the early reviews are very positive, according to Gary Ledoux, Honda’s Assistant National Manager of Wholesale Parts Marketing. Last month, the carmaker also launched AirbagAware.Honda.com, a site the company created in response to the burgeoning problem associated with the proliferation of counterfeit airbags on the market. After polling its customers and getting their feedback through several focus groups, Honda saw a need for both new websites, Ledoux said. “We conducted several focus groups in 2009, and we learned some very interesting things. The average consumer knows that their car gets wrinkled up, they take it to the body shop and a few days later they get it back and it’s straight and shiny again, but they have absolutely no idea what goes on in the background. So, one of the main things that we cover on Collision.Honda.com is an in-depth look into the collision industry from the consumer’s perspective,” Ledoux said. Another need for education about parts became apparent through their focus groups, Ledoux said. “We learned that most people do
was an alternative. When we explained this fact to the people in our focus groups, some of them were visibly upset, because they all thought they were getting OE parts.” In the past, Honda created collateral pieces to convey important messages to its owners, but now they’re embracing the Internet to achieve the same thing, Ledoux said. “Years ago, we created a brochure called “What to Do When You Get in an Accident”, designed for new owners of Hondas or Acuras. We put them in every car we manufactured, and did it for several years. It cost a lot of money to produce them and when we conducted a survey, we found out that most of these brochures died a slow death in the bottom of peoples’ glove boxes. So, we decided to put the information online, so that people could access it quickly and easily.” The Accident Assistant section of the site deals with what to do after an accident, and the section titled Collision 101 focuses on factors and issues drivers can and should deal with before an accident takes place, Ledoux explained. “Collision 101 is a primer on how to deal with body shops, by providing a glimpse into the industry from a consumer’s perspective. It’s a
28 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
very thorough approach with a ton of value-added features.” The website includes pages that deal with repairs, parts, insurance relationships (DRPs), safety tips, a shop locator, a collision glossary (that goes from Accident Forgiveness all the way to Waterborne Paint), news, views and a special section that features Honda’s position statements can be found in the Collision 101 section. Honda has included a series of position papers on Collision.Honda.com as well. “We didn’t know what the response would be to the position papers, but it’s been exceptional,” Ledoux said. “They deal with all of the topics that people are concerned about and they want to know our stance on all of them. They deal with subjects like aftermarket vs. OE parts, wheel repairs, safety recalls, structural parts replacement, salvaged and used airbag components and unibody repairs and salvaged/recycled parts. It covers the entire gamut and evidently it’s going to be a very popular part of the site.” In the News, Views and More section, users can access the latest and greatest stories about the collision industry,
with a focus on relevance to the consumer, Ledoux said. “This is an ever-changing section of the site, because we’ll be posting new articles on there all the time. In addition, we have a Hall of Fame page in that section, which consists of stories about people or companies within the collision industry that do good things for other people on a regional basis. That means that only the people in those areas know about it. Our Hall of Fame will bring national attention to these efforts and we want them to get out there, because they deserve the accolades. Also, our Rear View section is going to be a lot of fun, providing historical capsules that relate to the automotive history, as well as the world of collision repair.” In addition to creating Collision.Honda.com, Honda also recently launched a second consumer-related site, AirbagAware.Honda.com, an effort that became necessary when the carmaker encountered a growing problem associated with counterfeit airbags. “A few years ago, we began seeing more and more of these counterfeit See American Honda, Page 43
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Women’s Industry Network Reports Winning Growth in 2012 by Kelly McNalis
In retrospect, it’s apparent that 2012 was another “winning” year for WIN, the Women’s Industry Network®. WIN is a not-for-profit organization dedicated to providing women in the collision repair industry with educational opportunities that create a platform for success, as well as recognition for excellence and leadership within the industry. WIN has reported growth in several areas of the organization in 2012, from enhanced membership services and additional sponsorship opportunities, to improved internal operations and a refined governance structure. The organization reported a 50% increase in member engagement since 2010 and a nearly 13% average increase in conference attendance since 2007. The organization published its first annual Report to the Industry, which gave visibility and transparency to the organization’s activities, financial data, and sponsors. Victoria Jankowski, WIN Chair stated, “While this committee-run organization has come a long way, focus
on the core mission remains the same; a strong sense of community, scholarship support, and ongoing educational efforts for our members.” WIN has increased its visibility within the industry in a variety of ways. Its members have made an impact on membership through networking, personal connections, and corporate awareness.
Enhanced publicity efforts around the 2012 Annual Conference in Atlanta, GA, generated buzz beginning three months prior to the event and featured an expanded scope of speakers covering a variety of topics. As an example, Robyn Benincasa, adventure racer, firefighter and motivational speaker, addressed the conference’s theme of, “Be the Change.” “Her message of strength, perseverance, and accomplishment both resonated and inspired everyone in the
room,” said Ruth Weniger, WIN Communications Chair and CEO of Airbag Solutions. A variety of sponsorship levels and conference sponsorship opportunities have helped spread organizational awareness of WIN within sponsoring companies, as well as the industry at large. The greatest expenditures in the WIN budget are related to the Annual Educational Conference, which provides attendees with an opportunity to interact with their collision industry peers and receive educational opportunities. Once sponsorship is secured, WIN subsidizes 35% of each attendee’s cost to attend the conference. To continue strengthening its program and providing measurable improvements in 2013, the WIN Board Strategic Planning Session identified three primary objectives at the start of 2012: ● Enhance the value of WIN membership and sponsorship ● Increase industry visibility of WIN, our activities and our members ● Establish a more robust operational and governance structure for the Board of Directors
Jankowski stated, “Like any growing organization, WIN will continue to be challenged with building stronger operational processes, creating consistency in communication that supports the WIN mission, and tracking progress so we can support continued success.” The Board and committee members are engaged and confident that these objectives will align WIN for another successful year in 2013 and enable the organization to continue its momentum. “WIN will continue to explore new ways to connect with women in the industry, keep our sponsors engaged, and support the positive energy our network brings to the overall industry community. As the organization grows, expect to see more ways WIN can contribute,” Jankowski said. “We are ever grateful for the continued generosity of our sponsors who support our efforts to engage women in the Collision Repair Industry and we welcome new members and sponsors who are similarly committed to advancing our mission,” she said. To learn more about WIN, visit www.womensindustrynetwork.com.
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Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Not All Insurance Executives Are Created Equal with The Insurance Insider
Being an insurance executive has its pros and cons. I guess it’s not really different from any other job – with one exception. We are the ones with the gold, and the evil body shops are the ones that are trying to get it. That makes my job unique because not everyone gets to play the role of the leprechaun. Although I am joking, there are a lot of similarities between insurance company employees and the leprechaun at the end of the rainbow protecting the pot of gold. We are unique, misunderstood, deceptively sneaky at times – and continuously worried about someone taking our money. With the holiday season here, perhaps I should be making comparisons between Santa Claus and insurance executives, but that would be ridiculous. We are nothing like Santa because we don’t give anything away. I guess we more closely resemble Ebenezer Scrooge, if trying to stay within the holiday theme. Why am I telling you something you already know? After all, we all know that grass is green, there is no such thing as paint caps or Santa Claus, and insurance executives are all misers (present company excluded). Actually, I’m telling you all of this because not all insurance company executives are created equal. Even though it is fun to throw jabs at defenseless suits, the reality is that there are a few good ones among us (present company included). But please meet Bob. Bob is an insurance executive who works with me. Although Bob doesn’t wear green, isn’t short and doesn’t have red hair, he is very much a leprechaun. I don’t know when or why he became so bitter and perpetually worried about the evil body shops stealing money. But he has more conspiracy theories than the George Bush administration. It’s extremely difficult to work with guys like Bob because he lives in
a different world. It’s people like Bob that cause lower-level insurance company employees that you have to work with to think and act like empowered dictators towards shops.
It isn’t a healthy situation but it’s one that is tolerated at various levels because Bob is a company man, and he watches our money and is helping to eliminate fraud. When Bob identifies a shop that he thinks is over-writing estimates or not properly repairing vehicles, his view is considered justified. Sadly, Bob’s word is taken as if it were written by Matthew, Mark, Luke or John. An even sadder reality is that Bob never worked on a car in his life. He couldn’t tell you a weld nugget from a chicken McNugget, yet he is judge and jury on a proper repair and repair hours. How is this possible? Because most insurance company executives are born on a different side of town and have years and years of drinking from the same water fountain. I’m not sure how I escaped because I was drinking the same stuff. But for most of us, all of our experience is insurance-related, so we don’t know what’s really on the other side of the wall. Depending upon your mentors within an insurance company, your vision of body shops can end up being tainted. I am grateful that I’ve had many level-headed bosses over the years. I do recall one in the early 1980s that looked just like the nutty professor. I’ve never asked Bob, but I am willing to bet that he spent a lot of time
32 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
working for that mad scientist. He despised body shops, and Bob is exactly the same. I think he wakes up every morning with sole purpose of penalizing shops. While Bob actually does find some shops that are thieves and couldn’t repair a Radio Flyer wagon correctly, the vast majority of his hysteria should be viewed as nothing short of a witch hunt. This story doesn’t have a happy ending. Bob isn’t a mythical character. He is someone who is still very active in our business. I believe he will retire in a few years but the damage has already been done. I think every insurance company has a Bob. Insurance companies have made positive changes over the past 30 years, but they’ve been unable to fully rid themselves of the cancers like Bob. They are the old-timers who are carry-overs from a time when shops and insurance companies were sepa-
rated by the Berlin Wall. I’m grateful to have been there when both that wall was erected and when it was torn down. I found out that the people on the other side of the wall are just like me. You can’t fight with the Bobs of the world because you won’t win. There is no answer or fix. The best you can do is to know your enemy. Debating, arguing and offering personal opinion will surely raise the ire of the cunning and deceptive leprechaun. Only facts and documentation are worth their weight in gold. Just don’t tell Bob that. He might try taking both of them for his overflowing pot. “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects solely the opinion of The Insider as it offers an unvarnished look at various issues impacting the collision industry.
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John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Industry Insight with John Yoswick
Advocate of Collision Industry Standards in the U.K. Sees Need for Them Here Include Mike Monaghan as among the proponents of the benefits of collision repair industry standards. What effect did he see such standards having in the United Kingdom? “The bad repairers went away. The incompetent and inefficient and illegal repairers went away,” Monaghan said. “The insurance carriers got more integrity, better safety, better customer service. They got better value from their supply chain.” Monaghan spoke at the Collision Industry Conference (CIC) in Las Vegas in November. As a three-shop operator in the United Kingdom in 1988, he said was discouraged with having to compete with other repairers that he didn’t feel had made the investment he had in equipment and training. He wrote a white paper outlining what he felt a “good shop looked like,” and over the course of three years helped craft one of the first set of collision repair standards in the U.K.
Though some others have pointed to some downsides to the standards program in the U.K., Monaghan was unequivocal about the positive impact of the standards. He began his argument for standards in the U.S. by noting that change is inevitable, and that too often collision repairers allow themselves to remain only on the receiving end of that change. “The tragedy for our industry is we react too late. We react to everything and then we seek to blame,” Monaghan said. “Can the collision industry take control of its market and its destiny? Yes, it absolutely can, but what it can’t do is constantly wait and react. It has to take control.”
Are minimum requirements enough? He challenged whether repairers or insurers clearly have defined what “good” looks like. He pointed out one example in a draft revision of CIC’s
definition of the minimum requirements for a shop, which calls for shops to have a minimum of one technician certified in welding. Monaghan asked about a shop that has six or eight technicians, only one of which who is certified and who is gone for a day when welding is done on vehicles. “Is that safe? Is it right? I seriously don’t think so,” Monaghan said. “If you’re welding a car, you should be tested before you get to weld.” He said that part of the problem with not having standards is that repairs are too often designed based more on negotiated cost. “You need to understand there is an independent correct repair, and that has to come first, and only… then do you figure out, and if necessary negotiate, the cost,” he said. Monaghan said over the course of three years, he took his white paper to shops, insurers and automakers for
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input, and by 1991 it was ready to be implemented as a standard. “The good shops that wanted to differentiate themselves stepped up and said, ‘If that means I have to be audited four times a year, front door to back door, looking in every dark corner, then that’s the standard I want to be identified with,’” Monaghan said. The standard was eventually adopted by 13 insurers (who required it be met by shops on their programs) and 11 auto manufacturers, Monaghan said. Though Monahan didn’t mention that another set of standards was also vying for adoption by shops and insurers, he did say that in 2007 he stepped aside and the current single standards program in the U.K., implemented by the insurer-funded research firm Thatcham, moved forward.
The issue of costs Monaghan returned several times at
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CIC to the topic of the impact of standards on costs. He acknowledged that in some instances in the U.K., repair costs (and the percentage of vehicles declared total losses) have risen. But he said the reduction in costs associated with variability and other issues declined. “If you get the right people, the right repairers with the right materials and the right skills and training—if you get all those things more frequently—then you reduce the variables,” he said. “There is less rancor, less rework, less supplementaries. All those factors were contained and scaled back considerably.” Monaghan, who recently moved to the United States, clearly has an interest in playing a role in the development of standards here. “I’m living here now, and I’m willing to help CIC or anybody else in this industry with my knowledge and background,” Monaghan said. “I think the U.S. can achieve something quite spectacular (and) does not need to go through the pain we went through… “If the repair industry does not embrace this and take charge of its own destiny, then it will be a victim of change.”
Other perspectives on standards in the U.K.
As an advocate for implementation of a set of collision repair standards here, Mike Monaghan, at the most recent CIC, spoke mostly of the upside of the standards he helped develop in the United Kingdom. But others there, even those who support the standards, acknowledge some challenges they pose. In the U.K., more than 840 shops (out of an estimated 1,400 that participate in insurer direct repair programs) have earned certification under the 5year-old set of repair standards. Although the standards were developed by an inter-industry effort, the implementation of those standards and certification of the shops is overseen by Thatcham, an insurer-funded research organization. “It’s basically a get-of-jail-free card for insurers,” said Chris Mann, publisher of Bodyshop Magazine in the U.K., has said of the standards program. “If something goes wrong and
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said that while he believes in the value of standards for the industry, he’s observed some of the challenges with the program in the U.K., where a similar Fix Auto organization has more than 60 franchises. Gange noted that at one point in the U.K., there were multiple competing sets of industry standards, and shops found themselves being required by different insurers to implement multiple standards “This was, at the very basis, a bit of a mess,” Gange said. Gange also said that while single standards program now in the U.K., is “at its essence positive, it’s riddled with bureaucracy, and along with bureaucracy comes costs.” Gange said that shops in the U.K. feel they bear the burden of these costs, which include $30,000 to $80,000 in terms of an initial implementation fee, along with the equivalent of just under $8,000 a year in annual training.
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Continued from Cover
Still Recovering
employees still went to work, and he paid them to help restore the shop and clean their tools and equipment. Since then, Collision Depot has installed some generators. Even though they are now fully operational, they are still restoring their building and replacing the $750,000 loss in equipment as they go, due to a lack of insurance. More than 250,000 cars in the NY and NJ area have been totaled due to severe flooding, and Zigman notes a decrease in business because of the vast number of destroyed cars and the influx of rental vehicles in the area. He shares that though he is receiving occasional repair requests caused by the storm, his only hope for now is for the general public to get back on their feet. Zigman says he has noticed increased difficulties with insurance companies as they are investigating claims in greater depth and just generally giving consumers a harder time obtaining repairs. They’ve opted to total many of the damaged vehicles. The insurers have also given Collision Depot some problems regarding partially and fully
repaired vehicles that had not yet been picked up; the insurers are objecting to paying for the repairs on vehicles that were totaled by Sandy’s flooding. Despite the challenges that he faces daily, Zigman maintains a positive outlook and puts his efforts and focus into rebuilding. He states, “What gets me through living with this tragedy is remembering 9/11 and knowing this is nothing but lifestyle changes compared to what others went through then. We will get through this.” Burnside Collision of Inwood, NY, was similarly struck by Sandy’s devastating impact. With several feet of water in their office, all computers and desks were destroyed and had to be replaced. Over two feet of water in their work area demolished their equipment, submerging and ruining their spray booth motor and their Car-O-Liner’s mechanisms. Additionally, the flooding destroyed a number of partially and fully repaired vehicles stored on the property, including police cars and Burnside’s tow truck. All of this destruction forced owner Ronnie Marciano to shut down for two and a half weeks. Though Marciano has noticed an influx in repair business since the storm, he initially had to turn away a
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great deal of business due to the damage done to his shop, thus losing potential business in addition to the loss of work-in-progress. Several completed cars were also destroyed, and one completed repair which was being stored was completely flooded out, forcing Marciano to fight with the insurance company in order to get paid for the work he had already completed. In addition to the general frustration of declining customers’ repair requests, Marciano faced the difficulty of expenses without the ability to capture business and revenue. Burnside Collision’s current focus is on repairing and replacing the equipment damaged by the storm. Marciano’s house was also flooded, as was his estimator’s and office manager’s homes. Employees who were not affected came to the shop to start working on repairs and get the business back up and running, said Marciano—a credit to his employees’ dedication and his relationship with them. Because of this extra effort, Burnside Collision was able to meet payroll obligations instead of utilizing FEMA’s layoff program. Noting that insurance companies are currently focused on picking up
submerged cars, Marciano expects to see more storm-damaged vehicles in the future. He suggests that many consumers may not yet realize that their cars were damaged by salt water, and he also suspects that some people have avoided submitting claims for fear their insurer will total their vehicle. Though insurers are totaling many cars, Marciano notes that they’ve returned to standard procedure with handling claims. Initially, the volume of claims was overwhelming, causing delays, but by using independent appraisers to manage their volume, insurers have been able to return to normal processing times. Burnside Collision has seen very few flooded cars come in for repairs due to the challenge that owners face when trying to retain their vehicles. Marciano believes that insurance companies should be making decisions on a case-by-case basis instead of making a blanket decision to total so many vehicles. In spite of their own problems, Marciano and his staff helped unload a truck filled with supplies sent from Florida to provide relief for victims of Hurricane Sandy. Marciano sees this tragedy as a learning experience, stating “We will pick up the pieces and
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work diligently to move forward and develop better plans for the future to become a better, more prosperous business than before.” Of the three shops described here, Tony D’s Auto Body of Atlantic Highlands, NJ, seems to have suffered the most severe losses. Owner Tony Dellapietro notes, “We lost everything. And I mean everything!” With five feet of water in the shop, all of his tools and equipment were destroyed. With the help of his parents and dedicated employees, Dellapietro has begun cleaning and oiling his equipment, but not his personal toolbox, which he began accumulating when he was 11 years old. He laments, “I started this business in 2003. What I built in ten years was wiped out in ten hours.” Because of difficulties with his insurance, Dellapietro has been forced to explore loan options to avoid having to close. He has purchased new office desks and computers, and an electrician has replaced outlets in the shop. For now, everything is still up in the air as the funds for shop repairs just aren’t there. Dellapietro has been forced to utilize his savings and other assets, and being forced to turn busi-
ness away has been devastating. “You just don’t get rich in this business,” says Tony. He has been unable to turn a profit since Sandy, and the bills just keep accruing. Employees of Tony D’s are currently relying on unemployment insurance since the shop is still closed. Dellapietro is busy dealing with disaster unemployment issues. On the day that Sandy hit, police had to force Dellapietro out of the building, but he could not extract the cars he was working on as there was already three feet of water in the yard. All seven cars in his shop were totaled, whether partially or fully repaired. Dellapietro admits that he was very emotional when he saw how badly his shop was damaged, and he has been seeking spiritual comfort. He has no clue when he will be able to reopen, and he notes “It feels like I’m starting over again.” These three shops are just a small sampling of the businesses that were damaged by Sandy. There are many options to contribute aid for Sandy’s victims. One such option is Hurricane Sandy New Jersey Relief Fund, P. O. Box 95, Mendham, NJ 07945-0095.
SCRS Welcomes Utah as 40th Affiliate Assoc. The Society of Collision Repair Specialists (SCRS) recently announced the Utah Auto Body Association as the 40th state or regional organization to join the Society as an Affiliate Association. The Utah Auto Body Association is the first statewide collision repair association in Utah’s history. “There’s been a growing interest in forming an association in our state for some time, given the rapid changes our industry is experiencing,” explained Chairman Bob Torrey, who was part of the organizing group forming the association. “Our belief is we will be better equipped to handle the challenges facing us if we are united in our efforts and communicate well with each other. With the help of Janet Chaney of the CARS Cooperative, who was instrumental in helping us see the advantages of coming together and how to do it effectively, we’ve began making rapid progress toward this goal.” The Utah Auto Body Association has made it a priority to vigorously recruit new members. “Our initial emphasis is seeking out quality training and education for our members,” said Torrey. “We are also committed to working effec-
tively with the state legislature to ensure the interests of our industry are well-represented.” The association’s November membership meeting was a direct reflection of its focus, with subject matter surrounding the potential impact upon collision repairers of recently enacted laws pertaining to air quality standards, including a Utah legislator as a guest speaker. The association’s interest in aligning with SCRS comes from the same place. “Getting exposure to a group of outstanding collision repair professionals like those found in SCRS, and their network of existing Affiliate Associations, will be very helpful to our members,” stated Torrey. “They possess a lot of accumulated knowledge and experience, and can help us be responsive and effective in dealing with the issues that we will be facing in the coming years. With SCRS, we’ll benefit from having a national profile, as well. Partnering with them will help give the Utah Auto Body Association credibility and information right out of the gate. They’ve already served as a model for us in many different ways.” The association’s inaugural meeting is scheduled for January.
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New SEMA Scholarship in Dick Dixon’s Name Planned Plans are in motion to institute a SEMA Memorial scholarship in the name of Dick Dixon, long time SEMA member and educator from La Verne, CA, who lectured at Cal State University San Bernardino, and who championed higher education for young people who wanted a future in the automotive and related industries. Dixon passed away on Nov. 15 after waging a tough battle with cancer. Even as the disease had him in great pain, he spent some of the last days of his life among colleagues, friends, and students at the annual SEMA Show meetings in Las Vegas. “He was there to see his friends, and to pass the baton on in his way,” said Pat McInturff, Professor Emeritus in the Department of Management at San Bernardino. “He was weak, but every student, every friend that he spoke to about his ideas for new projects buoyed him up. He never allowed the conversation to become about himself and his problems; it was all about the future, the students.” “Dick was more than a colleague,” said McInturff, “He was an inspiration for all of us, he truly enjoyed teaching and he particularly loved helping students to understand the value that a solid business educa-
tion would have in their future in the automotive industry.” Dixon came to formal teaching somewhat later in life. A lifelong motorsports junkie, an open-wheel racing driver in his youth, a magazine publisher, writer, and skillful organizer, he was involved in countless facets of the automotive business throughout his life. He touched hundreds of lives in hundreds of different ways, but it always his boundless enthusiasm that
Dick Dixon Obituary
his friends will remember and miss most of all. At Dick’s request, there was no funeral, and his wife Judi has asked that friends and associates remember Dick by contributing to this scholarship. Contributions should be made directly to SEMA. Checks should be made out to: SEMA Memorial Fund earmarked: “Dick Dixon” and sent to: 1575 S. Valley Vista Drive, Diamond Bar, CA 91785-0910.
The SEMA website published the following obituary: Writer, educator and industry speaker Dick Dixon passed away in his sleep November 15 after battling cancer. He lived by the philosophy that life was a sandbox from which to learn, work and play. He thought of himself as an unconventional get-it-done-right guy, who “worked like a 270 Offy.” Dixon grew up in Hawthorne, CA, and earned his masters degree in management and marketing at California State University Dominguez Hills. Most recently, he was the director of the International Motorsports Alliance at California State University, San Bernardino and chairman of the Automotive Trades Institute. Dixon was a lifelong auto-
motive and motorsports enthusiast and 30year member of the aftermarket and motorsports industry. A three-time SEMA Ambassador of the Year and Motorsports Legends Hall of Fame inductee, Dixon received numerous industry awards and spoke at industry events nationally. He authored the Cal State/SEMA-endorsed aftermarket management and marketing education certificate program and served on the SEMA Scholarship Committee for 13 years. Dixon was a former professor and motorsports administrator at Indiana and Purdue Universities. He was also managing editor and publisher of the Hot Rod Parts Guide and chairman and CEO of the Automotive Education Alliance. Dixon actively participated in SEMA’s ARMO, HRIA, YEN, and SBN councils.
44 Techs Honored at ASE
The National Institute for Automotive Service Excellence (ASE) recognized 44 automotive professionals at its Fall Board of Governors meeting held Nov. 14 at the Hilton Palacio del Rio in San Antonio, TX. The annual awards banquet spotlights top scorers on the ASE Certification Tests. Thirty-seven companies from both OEM and Aftermarket segments sponsored the individual technician recognition awards in the Auto, Truck, Collision and Parts categories, along with three instructor awards, and one recognizing a U.S. Air Force technician. In addition to looking for top scores on ASE tests, award sponsors may also consider such factors as on-the-job excellence, community service and more when selecting honorees. “ASE has been honoring the best of the best in our industry for more than 30 years, and we are proud to once again recognize 44 outstanding individuals from all across the nation,” said Tim Zilke, ASE President & CEO. “This is all made possible by the support of our many award sponsors, whose ranks include some of the best-known names in the industry.”
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Continued from Cover
Year in Review
In a follow-up letter to the Texas Department of Insurance, Borek pointed out that the document looked like a page from the Audatex guide to estimating, but shows that color sand and buff is included in refinish times; Borek says an Audatex manager who searched the Audatex/ADP “Database Reference Manuals” back to 1993, concluded that the page is “most certainly not a document from ADP/Audatex.” “This manufactured document can only achieve one goal, which is to convince uneducated consumers and shops that this operation is included so they can ‘short pay’ the claim,” Borek wrote in his follow-up letter to the Department of Insurance.
March Chrysler became the latest automaker to announce a certification program for both independent and dealership collision repair shops. Certification requires meeting more than 40 standards including maintaining I-CAR Gold Class status and using squeeze-type Continued from Cover
Brindle’s Rebuild
things will be done.” Brindle’s, in business for more than 20 years, was able to save all the cars at the shop at the time because they noticed the roof coming down in time to move the vehicles. The storm blew the roof off and falling rafters damaged and pulled down walls. The building was without power for 10 days and during that time when it had no security, someone broke in and stole several thousand dollars worth of tools. Brindle recently got the bad news that insurance will only cover $1,000 each for employees who lost their tools in the storm. “We haven’t heard anything from
resistance spot welding equipment. Under the program, if all OEM parts are used on a job, that will be noted on the vehicle’s CARFAX report, along with the fact that the vehicle was repaired a Chrysler-certified shop.
April LKQ Corporation worked to counter ongoing liability concerns for shops about use of alternative parts by announcing that in addition to a lifetime warranty on its non-OEM parts, it would indemnify shops against injury or damage caused by a defecEileen Sottile tive vehicle part distributed by LKQ. The “Promise of Protection” says it covers a “licensed automotive repair shop” that purchases the part from LKQ, excluding claims arising from shop negligence or malfeasance. LKQ’s move followed Diamond Standard’s announcement in January that it was offering ASA member shops coverage under a $40 million liability insurance policy for any liability issues related to the performance the police about the tools that were stolen and I don’t know if we ever will,” Brindle said. “And then we just found out that the employees’ tools had a $1,000 cap so they only got $1,000 each. That is not near enough. We were told at first ‘don’t worry, they are covered.’ We are not happy about that all. Overall, I think, with the rest, insurance has taken care of everything else.” Meanwhile, Brindle’s Auto Body continues to work on some cars parttime at the home garage of a former employee. “Most of our customers are still waiting for us to reopen. Only a few that I know of have taken their vehicles somewhere else. But if we don’t get back soon, I’m not sure how long they will wait,” he added.
Idaho, Utah, and Nebraska Collision Groups Join SCRS
The Idaho Autobody Craftsman Association and the newly-formed Utah Auto Body Association have become state affiliate associations of the Society of Collision Repair Specialists; the Idaho group, dormant for nearly a decade, had more than 50 attendees
at a recent meeting, and the Utah group is the first statewide collision repair association there. Also looking to revitalize itself is the Nebraska Auto Body Association, which will hold a meeting January 19 in Ashland, Nebraska.
40 JANUARY 2013 AUTOBODY NEWS | www.autobodynews.com
of Diamond Standard non-OEM structural parts.
May Eileen Sottile of the Quality Parts Coalition (GPC) urged attendees at the Auto Body Parts Association (ABPA) conference to contact Congress to support the coalition’s legislation (HR 3889) that would reduce the time automakers can use design patents to prevent other companies from producing replacement crash parts. Sottile said the bill would reduce the patent protection from 14 years to just 2.5 years. Despite a public relations and lobbying effort funded by LKQ Corporation ($3.7 million), Nationwide and State Farm ($115,000 each), Allstate ($92,000) and others, the bill never got beyond a hearing in the U.S. House.
June Insurer groups’ radio ads and other efforts were successful in convincing Rhode Island Gov. Lincoln Chafee to veto legislation that would have given shops in that state the right to sue insurers directly in small claims court over disputed repair costs. Chafee said he believed the bill
would have given shops rights that exist in “no other state in the nation,” and would have “hurt Rhode Island consumers” by raising the cost of auto insurance. The legislation, supported by the Auto Body Association of Rhode Island and passed by lawmakers, also would have strengthened the state’s anti-steering law, and would have required that damages exceed 75% of a vehicle’s value before that vehicle can be declared a total loss. The association issued a statement expressing its disappointment with Rob Knott Chafee’s action. “Though his veto message states that he is concerned about the consumer, he clearly put the consumer and small business’ interests aside and bowed to the pressure of the real ‘special interest group’ —the billion-dollar insurance companies,” the association’s statement read. July Some good news for shops worried about the growing amount of acci-
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dent-avoidance technology in vehicles: It’s not all working. The July issue of “Status Report” from the Highway Loss Data Institute examined insurance claims data to see what impact crash-prevention technology is having. “Forward collision avoidance systems, particularly those that can brake autonomously, along with adaptive headlights, which shift direction as the driver steers, show the biggest crash reductions in the studies,” the publication stated. “But one feature, lane departure warning, appears to hurt rather than help, though it’s not clear why, and other systems aren’t showing clear effects on crash patterns yet.”
August DuPont announced it was selling its 11,000-employee automotive paint business to private equity firm The Carlyle Group for $4.9 billion in cash. “Through targeted investments we will support DPC’s product development and growth objectives as it transitions to a stand-alone company,” Greg Ledford of The Carlyle Group said. The Carlyle Group earlier in the summer had announced it was acquir-
ing majority ownership in the Texasbased Service King Collision Repair Center chain.
September The Department of Justice (DOJ) and Federal Trade Commission (FTC) jointly held a workshop on the topic of most-favored-nation (MFN) clauses, such as the basis for State Farm’s pricing requirements for its Select Service shops. “Although at times employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns,” the two agencies noted. “This is because they may, especially when used by a dominant buyer, raise other buyers’ costs or (prevent) would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated pricing among sellers.” October Speaking at NACE in New Orleans, representatives of State Farm, Allstate and Nationwide said that any MSOs on their DRPs are measured as individual shops and must compete to perform as-such.
George Avery of State Farm said his company’s experience with M2, the 27-shop consolidator in California that closed suddenly back in 2005, led his company to focus on finding topperforming individual shops, whether stand-alone or part of an MSO. Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have is over-saturation in certain marketplaces, so you’re not going to put (all their shops in a market) on (the direct repair program). And then Rick Leos there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.”
November Toyota previewed a new “predictive estimating” system it is creating that incorporates all necessary parts and Toyota-recommended procedures along with links to all related Toyota bulletins and published documenta-
tion. Toyota’s Jerry Raskind called the system a “game-changer,” in that rather than having an estimator start from a blank page and add line items based on what they know or can locate about OEM procedures, the system begins with a complete estimate and allows the user to omit items as appropriate. “Everything you need to fix our cars correctly and to our standards is there,” Toyota’s Rick Leos said.
December The National Insurance Crime Bureau (NICB) released revised estimates indicating that 230,000 vehicles in Eastern states had been damaged by super-storm Sandy. New York had the most vehicles affected by the storm with 130,000 while New Jersey generated 60,000 claims.
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
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ASA Collision Division Recaps 2012, Moves Forward into 2013 The ASA Collision team, composed of ASA staffer Denise Caspersen and ASA collision members participating on the ASA Collision Division Operations Committee, led by team director Dan Stander, owner of Fix Auto Highlands Ranch, with input from the ASA Board of Directors, had a productive 2012 representing the ASA membership and engaging with the various segments of the industry that affect the ASA collision repair membership. ASA is fortunate to have willing volunteers with diverse backgrounds actively donating their time, mindshare and leadership in addressing actions and issues of the association. “ASA’s collision division functions extremely well as a team and approaches things just that way, as a team,” said Caspersen. Just as the collision repair industry faced multiple challenges and changes in 2012, so did the volunteers and staff of ASA’s collision division. Following the release of a revised ASA crash parts policy, supporting the original part as the standard of measure, and a joint statement with AASP and SCRS recommending that original manufacturer
repair procedures be considered as the standard, the ASA’s collision team began 2012 with the announcement of a strategic alliance with alternative parts manufacturer, Diamond Standard, that afforded ASA members with product liability protection against the unlikely scenario of damage or personal injury directly related to use of Diamond Standard parts in the repair. In early 2012, ASA Arizona played a vital role in bringing about the removal of language from House bill 2394 which would have forced shops, in many situations, to absorb the costs associated with vehicle storage or bill it to the vehicle owner. This was accompanied by ASA Texas bringing forth opposition to proposed licensing ordinances in early 2012 followed by ASA Texas challenging the state’s franchise tax law in mid 2012. At the federal level, ASA began the year monitoring an auto parts bill, H.R. 3889, Promoting Automotive Repair, Trade and Sales Act (PARTS). The bill would amend the U.S. design patent law to change the period of design patent protection for automakers from 14 years to 30 months. ASA
joined with 10 other automotive groups in opposition to the bill while monitoring actions in the U.S. House Judiciary subcommittee. Continuing a long-standing tradition of ASA calling for the repeal of McCarran-Ferguson, ASA showed support for federal bill, H.R. 5 asking for the restoration of the Application of Antitrust Laws to Health Sector Insurers, which passed on the House floor in the first quarter. Also related to insurance, ASA attended a workshop in the Federal Trade Commission and the U.S. Department of Justice review of Most Favored Nation (MFN) clauses within the insurance industry. Prior to the workshop the FTC noted: “The most commonly used MFN provisions guarantee a customer that it will receive prices that are at least as favorable as those provided to other buyers of the same seller, for the same products or services. Although at times employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns. This is because they may, especially when used by a dominant buyer of intermediate goods, raise other buyers’ costs or fore-
close would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated pricing among sellers.” ASA will continue interest in Most Favored Nation discussion in 2013. The 2012 ASA legislative objects and can also be located on the ASA legislative website at www.takingthehill.com – sidebar – Legislative Objectives - http://www.takingthehill.com/objectives.htm. 2013 ASA legislative objects will be appearing there in the very near future. In addition to working with SCRS and AASP on seeing vehicle manufacturers repair procedures recognized as the standard for repair procedures, ASA continued in the three’s mutual support of the Database Enhancement Gateway (DEG) program, which continues to provide free industry support for addressing questions of information provided the industry leading information providers. Throughout 2012, ASA’s collision division also provided the ASA membership with representation by taking part on the on the I-CAR Board of Directors, the CIECA Board of Direc-
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tors, the WIN Board of Directors, CIC meetings and the CIC Data Privacy committee. ASA looks forward to continued interactions with these bodies in 2013. These items were in addition to the lengthy and extensive engagement of ASA’s collision team centered on the electronic parts procurement application currently piloted by State Farm. During many conversations, ASA’s collision division has been met with both support and disappointment of ASA’s approach of professionalism, factual understanding and industry engagement in addressing this pilot. During the early stages of the pilot, information was presented to the industry which brought both concern and confusion to the ASA membership. In early April, the ASA collision team took on the challenge of providing ASA’s membership and the collision industry with as much verifiable information as possible through the engagement with as many segments as possible, in addition to speaking directly with State Farm and the application’s designer, PartsTrader. Over the past months, this approach also called for the ASA collision volunteers to express the concerns
of the ASA membership (initially centered around the repairer/supplier relationship, and then expanding to specifics of the application, and now on ‘what happens to the collision repair shop’s profit on parts?’) and follow up on requests for data on what are the affects of the pilot are on those participating. The December 2012 expansion of the pilot to the 475 Select Service shops in the Chicago, IL, area will broaden the test market to approximately 600 collision repair facilities currently on the Select Service program. To date, ASA has provided the industry with 13 statements focused on the State Farm Select Service pilot, including: initial details of the pilot; public request for result data of the pilot; overviews of industry meetings; changes to the pilot and detailed coverage of ASA’s ongoing conversations with State Farm. ASA will continue to be a part of conversations, advocacy and communications about the State Farm electronic parts procurement application in 2013. ASA’s communication pieces specific to the State Farm pilot can be located on the ASA website at www.ASAshop.org. Click on “Tools
& Resources,” then “State Farm Pilot Program.” And lastly, the ASA collision team spent many hours designing and leading in the educational elements of Automotive Service and Repair Week (ASRW), which took place in New Orleans, LA, in October. During the week, ASRW conducted more than 80 educational sessions, along with NACE forums and the Assembly, a town hall type discussion for repairers only. For those attending ASRW in 2012 and taking part in the invaluable educational activities, it’s likely you heard from ASA’s collision team in various sessions, panels and forums. ASA’s communications pieces specific to all the other above mentioned actives of the ASA collision division for 2012 are found at www.asashop.org. Click on “News & Events,” then Latest News – 2012 Press Releases. The key driver in ASA collision team actions continues to be centered on the engagement of the ASA collision leadership and the ASA membership at large. To be a part of the conversation, continue to contact ASA’s collision division manger, Denise Caspersen by email; denisec@asashop.org or phone at (817)-514-2906.
Continued from Page 28
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airbags,” Ledoux explained. “Consumers need to know the facts so they can insist that only OE airbags are used. It’s a life and death situation, so we’re very concerned and want to be proactive in providing valuable information to the public about this controversy.” AirbagAware.Honda.com launched in mid-December and is full of useful data, including safety advisories provided by the National Highway Traffic Safety Association (NHTSA), useful news about airbags, videos, and documentation that explains the difference between a Honda and a non-Honda airbag. One of the featured videos appearing on both websites is called “Use Your Melon,” a 30-second commercial that shows exactly what happens to a watermelon when an airbag opens too late. “It’s quite a visual and people have been talking about it since we produced it,” Ledoux said. “It illustrates how crucial airbags are and how things can go wrong if they’re not genuine.”
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Auto Insurance Consumers Shop for Price ... Sometimes
An overwhelming majority of auto insurance buyers who switch carriers make the change based on price, but not many are actively shopping around, according to a survey from InsuranceQuotes.com. In a national telephone survey of 1,000 adults conducted in early November by Princeton Data Source for InsuranceQuotes.com, within the past 12 months only 21% of those surveyed say they shopped for car insurance. Of those shoppers, 43% switched carriers. The vast majority who switched, 81%, made the change because of price. “This suggests that many people who shopped around liked what they found,” says John Egan, managing editor of InsuranceQuotes.com in a statement. “Consumers don’t care as much about customer service or reputation—they want to know who’s going to save them the most money. Everyone should take an hour or two to compare a few different carriers. It can’t hurt, and you might be amazed by how much money you can save,” Egan said.
Rhode Island Shop Owner Arrested Again
The owner of a Pawtucket car shop accused of scamming customers was arrested again by Rhode Island State Police. Dino Coccia was taken into custody in North Providence by the Violent Fugitive Task Force Nov. 29 on four Superior Court Bench Warrants: Failure to Appear/Unlawful Appropriation; Failure to Appear/Unlawful Appropriation; Failure to Appear/Obtaining Money under False Pretenses; Failure to Appear/Obtaining Money under False Pretenses. Coccia is the owner of America Sales and Collision Center. He was arrested in May after he was accused of selling two customers the same car and renting out cars he was supposed to be repairing. More than two dozen people have come forward, claiming to be victims of his scheme. In July, the Attorney General filed 50 new charges against him, including obtaining money under false pretense, unlawful appropriation, uttering bad checks and one count of attempted larceny.
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A former General Motors engineer Defense lawyers acknowledged with access to the automaker’s hybrid that GM information was in the coutechnology was convicted Nov. 30 ple’s possession, but they downplayed along with her husband of stealing the commercial significance. trade secrets for possible use in China. In her closing argument, AssisShanshan Du won a transfer tant U.S. Attorney Cathleen Corken within GM in 2003 to be closer to the said Du, 54, was the “linchpin” in the technology and then copied docu- scheme because of her job at the auments until she accepted a severance tomaker. “It can't happen without offer and left the company in 2005, her,” the prosecutor said. prosecutors said. Corken noted that the agents kept Du and Yu Qin were found guilty an eye on the couple after searching by a federal jury in Detroit after a trial their home in 2006 and watched Qin that lasted weeks. Qin also was con- dump shredded documents in a grovicted of wire fraud and attempting to cery store trash bin. obstruct justice by shredding docu“Is that the conduct of innocent ments. They shook each other’s hand people?” she asked. after the verdict but declined to comCorken said the technology was ment, as did their attorneys. worth at least $40 million, the price The couple face up to 20 years in that other automakers paid GM to get prison. No sentencing date has been it. set. Du and Qin, both U.S. citizens, Prosecutors told jurors that GM had been under scrutiny for years after trade secrets were found on at least GM accused them of theft. They were seven computers owned by the Oak- charged in 2006 with destroying docland County couple. The government uments sought by investigators, but doesn’t believe the information ever that case was dropped while investimade it to China, although Qin had set gators pursued a broader probe that up his own company, Millennium led to an indictment in 2010. matters affecting the industry. Want Barbara to Contribute Technology International, and U.S. Attorney McQuade claimed have made contact with has referred to tradethe secrets as the Givetous your opinion on matters affecting industry. GM competitors overseas. “crown jewels of private industry.”
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Education Foundation Plans for 2013 Summer Golf Fundraiser in Boston Registration and event sponsorship is will take place as part of the event, now available for the Collision Re- presented by LORD Corporation. Inpair Education Foundation’s 12th an- dividuals can sponsor golf balls ($25 nual golf fundraiser event taking each ball/ 5 for $100) that will be place Thursday, July 25, 2013 in Boston, MA. Golfers will enjoy a round of golf at the South Shore Country Club, a championship par 72 golf course designed in 1922 by Wayne Stiles and features rolling topography, elevated approaches, and pristine conditions. As the Education Foundation’s 2012 golf fundraiser soldout six months in advance, industry professionals are encouraged to register for this year’s golf If your golf shot is not so reliable, a helicopter golf fundraiser early as it is anticipated ball drop might be your best shot at a $1000 to be sold-out by early 2013. This closest-to-the-pin win fundraiser takes place in conjunction with the Collision Industry Con- dropped from a helicopter over a hole ference (CIC) and I-CAR industry on the South Shore Country Club golf meetings being held that week in course the day of the event. Whoever Boston, and funds raised through this sponsors the numbered golf ball that event assist the Education Foundation goes in the hole (or the closest to the in providing support to collision repair pin) will win a $1000 American Exstudents and their school’s collision press gift card. Participants do not programs. need to be present to win and only Even if you can’t attend in per- 1,500 golf balls will be sold. son, industry professionals can still Early-bird individual player regscore a hole-in-one through the heli- istration is $225 p/person ($900 fourcopter golf ball drop fundraiser that some team) before April 1, 2013 and
$275 p/person ($1,100 foursome team) after April 1, 2013. Registration includes 18 holes of golf, cart rental, complimentary beverages/snacks on the course, BBQ lunch, dinner, attendee promotional items, and the opportunity to participate in several contests on the course. For those attendees who will be traveling into Boston to attend industry meetings that week, complimentary transportation will be provided to and from the industry events to the golf course. This fundraiser event is open to all industry professionals and registration spaces are availableon a firstcome, first-serve basis. Those interested in registering, sponsoring, and/or participating with the golf ball drop fundraiser should contact Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org, 847-463-5244, or visit www.CollisionEducationFoundation.org for more information.
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Education Foundation Wants Facebook Likes
The Collision Repair Education Foundation and LORD Corporation, the maker of Fusor products, are partnering to provide safety glasses to collision students. Until Dec. 31, for every individual who “Likes” both organization’s Facebook pages, LORD will donate a pair of safety glasses (up to 10,000) to collision school programs through the Collision Repair Education Foundation. “Like” the organization’s Facebook pages by visiting: ● www.facebook.com/CollisionRepairEducationFoundation ● w w w. f a c e b o o k . c o m / p a g e s / LORD-Fusor-Automotive-RepairAdhesives/531537473524134 Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “Due to school budget reductions, there are many collision school instructors who don’t have the ability to purchase safety glasses for their students. Through LORD’s generosity, we can help keep up to 10,000 collision students safe. Please “Like” both of our Facebook pages before the New Year so that we can provide the full amount of safety glasses to collision students this upcoming spring semester.”
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Continued from Page 18
SCRS Look Back at 2012
is TOYOTA’s recently announced predictive estimating technology that is under development, and a direct work product of these ongoing repairer driven discussions. Perhaps one of the most notable areas in which we have actively embraced other groups to address critical industry wide topics include a joint letter to the Information Providers in January of 2012, regarding the collection and reporting of repairer business data. The statement served as a public request from the collision repair industry to Audatex, CCC and Mitchell, seeking removal of contractual clauses within end user license agreements which require permissive access to aggregate and collect end-user data as a point-of-sale requirement to purchase those estimating programs. This communication generated responses from CCC, Mitchell and Audatex as the year progressed, and served as an ongoing source of discussion for the Collision Industry Conference Data Privacy Committee. SCRS continued to collaborate with
our colleagues at AASP and ASA in the management and oversight of the Database Enhancement Gateway; a free industry resource that was developed and funded by industry trade associations to address user-identified errors, inaccuracies or omissions in electronic estimating system data. In 2012 we proudly watched as this trade association-funded industry tool saw both its 4000th and 5000th inquiries. The DEG also made headway launching a major website overhaul to enhance the end-user experience, and adding a functionality to address the top ten user requested enhancements to estimating platforms. Addressing estimating data has long been a part of SCRS’ history, and in addition to the collaborative work with other trade associations, SCRS has provided other resources that aim to provide collision repairers with the most effective tools in their toolbox. In 2011 SCRS provided the industry with the SCRS Guide to Complete Repair Planning; an exhaustive list of legitimate operations and services our technicians provide that often go unrecognized in the estimate development and final billing processes. It had been initially developed by the late
March Taylor, who was a former board member of SCRS and owner of Auto Body Hawaii, who worked tirelessly to find ways to standardize the blueprinting process within his own repair facility. The purpose of the Guide was to aid repair facility personnel in formulating the most accurate repair plan in the estimate preparation process, to minimize the need or expense of a supplement. Taylor worked with other SCRS board members looking at commonly overlooked or forgotten non-included operations, building a list that would help benefit a more comprehensive blueprint. After his passing, SCRS sought to compile his work into a resource that would benefit all in the industry by releasing the guide. In 2012 SCRS saw tremendous growth in the use of the free resource, being featured in estimating education programs offered by every major refinish company, incorporated into 3M training programs I addition to many others. Early in the year, SCRS announced that the data from the association-crafted estimating tool would be featured in the free online estimate review tool www.estimatescrubber.com.
The year also brought about a renewed focus in the development of SCRS member benefit programs, featuring discounted services from companies such as Alldata, AutoWatch, AdminConcepts, Summit Software & Mobile Solution, Siriani & Associates, Total Merchant Services and as of 2012, GRC-Pirk. The GreenSweep program with GRC-Pirk launched an energy and pollution performance program, online tracking tools and free sustainability education programs to educate the industry on the benefits to environmental responsibility. But SCRS’ education agenda wasn’t only focused on the environmental issues; the Education Committee continued its efforts throughout the year, bringing eye opening topics to SCRS open board meetings around the country. As part of the association’s emphasis to inform and educate repair businesses, the Society started working with CollisionHub to record and produce free copies of those presentations during 2012, making discussions such as safety considerations in glass replacement, squeeze-type resistance spot welders, and blueprinting tools for collision estimating available for all collision repairers on the SCRS website.
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But when it comes to education, no other industry venue provides more opportunity, possibility and inspiration than SCRS’ involvement at the SEMA Show, which prominently features SCRS’ Repairer Driven Education series. In looking back on the week at SEMA, and the events that took place during it, you can’t help but feel reminded about how important a strong sense of community is to professional betterment and personal enrichment. A sense of community provides grounding, balance and camaraderie when faced with challenges. This is exactly what organizations such as SCRS are here to do; provide our members with a community network that offers them the opportunity to strengthen their relationships and their connection to the industry. At the SEMA Show, that sense of community was noticeably heightened this year. SCRS has been very proud to work with the wonderful show organizers, and to lead the development of the collision repair industry footprint within the show over the past several years. It was hard not to notice that this section of the Las Vegas Convention Center - a complex housing an astonishing one million square feet of
booth space, and hosting over 135,000 attendees – had a noticeable spark of positive energy flowing through the halls inspiring those seeking new business ideas. The traffic in the aisles was dense with individuals searching for collision repair business solutions, and the classrooms were alive with impassioned subject matter experts leading idea exchanges with over a thousand repair professionals from around the globe looking to soak in information offered by SCRS. These classes are directly designed to help attendees bring tangible results home to their businesses. This year’s lineup delivered tremendous information that supported interests in all areas of business development, while bolstering that sense of community. We saw personal, inspiring and occasionally humorous discussions between U.S. entrepreneurs, well known for their innovative approach to business development; riveting elaboration of how forthcoming technical development in other areas of the automotive industry is going to have cross-over effects on our work capacity over the next 40plus years; and information exchanges from global representatives from Canada, Australia and New Zealand,
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and technologies; making friendships that span a globe and last a lifetime; these are the things that make SCRS proud to be a part of the SEMA Show, and the things that really define the work of a trade association. The end of the year provides the opportunity to reflect, to look back at accomplishments and shortcomings from the past year, in an effort to better yourself in the coming one. As we look back over the past 12 months, the actions, activities, and the engagement from our members highlights an exemplary period where our organization can proudly say, we have been the voice our membership expects from us. We have advocated on the issues that resonate with those who support us; and we have been an organization that provides our members with leadership, but allows our ideals to be led by our membership. As an organization, we are proud to be Repairer Driven, and we believe the work speaks for itself. 2012 was a difficult year, but it was a year where collision repairers came together, and learned the value of community. We look forward to the opportunity that creates going into 2013, and we are proud to be the Society which collision repairers can call home.
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demonstrating the impact of insurerdriven parts procurement initiatives in international markets. This is what community is about. It is about sharing our best attributes, whether it is a product, a service or an idea, and showing our peers how to use it to their advantage. It is the recognition that while collision repairers have clearly and definitively decided that the SEMA Show is THE national venue for collision repair business solutions in the United States, that it has become a melting pot of collision repair attendees from dozens of countries. It is a place to run into old friends, and to meet new ones. It was a place that the attendees and exhibitors have both grown to realize the importance of the show and its content directly offering solutions specific to our niche industry, but understanding (and benefiting from the fact) that we are really an integral part of the broader automotive industry. It is that sense of community that will support the success of collision repair businesses around the globe. Connecting with our peers, through our associations; learning the basic foundations of successful business management, to the cutting edge of products
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