January 2017 Northeastern Edition

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Northeastern Norrtheastern Edition E d i t i on Connecticut Delaware Maine Maryland Massachusetts New Hampshire

New Jersey New York Pennsylvania Rhode Island Vermont

35

YEARS

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Gauging What Lies Ahead for the Collision Industry in 2017 Based on the Events of 2016 by John Yoswick

As another new year begins, the collision industry can expect more big changes in terms of vehicle technology, repair requirements, judicial and regulatory actions, state and federal legislation, and insurer involvement in the claims process. Here’s a look at some of what’s in store for the coming 12 months. Changes in insurance industry regulation. Look for insurers to see a Trump presidency and Republicancontrolled Congress as an opportunity to scale back federal regulation of the insurance industry.

The National Association of Professional Insurance Agents (PIA), for example, has already urged that the Federal Insurance Office (FIO), established following the Great Reces-

Happy a NEW Year

See Car Vandalized, Page 33

P.O. BOX 1516, CARLSBAD, CA 92018

‘Go Home’ was found keyed into the side of the family car. The hood was also defaced. Credit: Western Mass News.

hate crime. Now, a local auto body shop is getting involved. That family lives in West Springfield on a normally quiet street, and they said that they’ve never had any issues since they moved to town five years ago. After going through this devastating event, they’re getting to know the kindness of some of their neighbors. The Santiago family woke up on the morning of November 17 and saw the words ‘Trump’ and ‘Go home’ keyed into their car.

Change Service Requested

A Massachusetts family turned to Western Mass News for help after they said that they were victims of a

they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.” But Matthew Josefowicz, president of a Boston-based insurance technology consulting firm, cautioned that such reductions in federal oversight of insurers could embolden some state attorneys general and insurance commissioners, resulting in insurers “dealing with aggressive state regulators.” That could be good news for colSee Ahead to 2017, Page 12

Springfield, MA, Maaco Shop Helps Veteran’s Family Whose Car Was Vandalized by Samara Abramson, WesternMassNews.com

sion, be scrapped. “With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that

VOL. 7 ISSUE 10 JANUARY 2017

NJ, NY & PA Collision Repair Shops Face Labor Rate Reductions Due to State Farm’s Rezoning

NY State to now utilizing a flat rate of $28 that further reduces the policyIn July 2015, State Farm announced holder/claimant’s recovery. We are reits intention to make “market refine- ceiving complaints that with these ments” by refining market boundaries changes often come the refusal by used to determine prevailing compet- State Farm adjusters to negotiate the itive prices to serve our customers and claims in good faith with shops of to better align with government-defined varying capabilities and expertise.” State Farm’s redefinition market areas,” State Farm of parts of NJ, NY and PA Spokesman Justin Tomczak was based on Census Bureau stated at the time. Core-Based Statistical Areas State Farm’s changed (CBSA), and Tomczak conapproach in determining prefirmed that State Farm had vailing competitive prices in ceased using labor rate surcertain metropolitan areas veys to deduce the market has resulted in decreased Ed Kizenberger rate in these areas with callabor rates in certain parts of file photo culations now being based NJ and NY with some collision repair facilities receiving $15–16 on analysis of the cost of vehicle reless per hour. pairs for insurance work, excluding Ed Kizenberger, Executive Di- DRP repairs. These four divisions inrector of the Auto Body Craftsman’s clude the Dutchess/Putnam Division, Guild (ABCG) and the Long Island Nassau/ Suffolk Division, Newark NJ Auto Body Repairmen’s Association and PA Division, and NYC, Jersey (LIABRA), noted, “In our current City and White Plains Division. Areas of Long Island and NYC market area, State Farm estimates show a labor rate reduction from $65 have reported decreases of $15–16 in to $49 per hour. These estimates also hourly labor rates; this loss must be show the change from using a paint passed on to the customer, considered cost estimating system approved by See NE Labor Rates, Page 28 by Chasidy Rae Sisk

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244


2 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com


REGIONAL

A.G. Schneiderman Announces Conviction in

Automobile Accident Ring on Long Island. . 24

ASA-CT Learns Scanning Diagnostics Tools . . 6

Celebrities and Amazing Vehicles . . . . . . . 36

Attanasio - Vintage Color Studio Features

Award-Winning Roadster at 2016 SEMA

at PPG’s Booth. . . . . . . . . . . . . . . . . . . . . 62

Carubba Collision Presents $10,000 Check

Phillips - Hawaii Collision Center Works Hard

Criswell Collision, Allstate Donate

Phillips - How to Compete with Consolidation

to the Food Bank of Western New York . . . 21

Vehicle in MD . . . . . . . . . . . . . . . . . . . . . . 10

H&V Collision Center Joins with Marines for

for Customers While Living in Paradise . . . 60

and Outmaneuver Your Competitors

in 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Toys for Tots 2016 Holiday Collection . . . . 18

Phillips - The Power of Peer Groups: Surviving

Labor Rate Decreases Citing Consumer

Yoswick - Retro News: CIC Ends Parts Test-Fit

Contracts . . . . . . . . . . . . . . . . . . . . . . . . . 30

MA Used Car Dealership to Cease Operations, Pay Restitution to Consumers for Selling

Unsafe Vehicles . . . . . . . . . . . . . . . . . . . . 15

Morris County Auto Body Students Repair

Washington Township OEM Trailer . . . . . . 10

in a Consolidated Market . . . . . . . . . . . . . 44

Demonstrations, Feds Launch New

Insurance Oversight Agency . . . . . . . . . . . 50

NATIONAL

A 2015 Profile of the Evolving North American

Collision Repair Marketplace. . . . . . . . . . . 64

NJ Auto Parts Company to Pay $75,000

ASA Midwest Presents 2016 VISION South

NJ, NY & PA Collision Repair Shops Face

Attanasio - California’s College of Alameda

to Settle Discrimination Allegations . . . . . . 26

Labor Rate Reductions Due to

State Farm’s Rezoning . . . . . . . . . . . . . . . . 1

NY Attorney General Announces $1.6 Million Settlements With Auto Dealerships That

Illegally Charged Thousands Of Customers

For Hidden Purchases . . . . . . . . . . . . . . . 22

of the Border . . . . . . . . . . . . . . . . . . . . . . 15

Dominates EB-CAA’s Model Truck

Competition Again . . . . . . . . . . . . . . . . . . 46

Attanasio - Service King Celebrates Grand

Opening of Milpitas Repair Center . . . . . . . 54

Attanasio - Veterans Day is Always Benevolence

Day at California's Mike’s Auto Body. . . . . 52

Phillips - Indiana Family-Owned MSO Grows to

Axalta Employees Give Back During National

Phillips - Industry Veteran in Pennsylvania

DOT Says All Electric Vehicles Need to

Six Locations with Hard Work and Passion . 70 Shares Secret to Running a Successful

Hunger and Homelessness Awareness Week . . 6

Make Noise . . . . . . . . . . . . . . . . . . . . . . . 10

Body Shop . . . . . . . . . . . . . . . . . . . . . . . . 20

Gerber Collision & Glass Opens Repair

Multiple Guest Speakers . . . . . . . . . . . . . . 16

GM Looks to Build Ranks of Cadillac

Sisk - LIABRA’s November Meeting Featured

Springfield, MA, Maaco Shop Helps Veteran’s

Family Whose Car Was Vandalized . . . . . . . 1

Submarine Surfaces at BOCES School . . . . . 14

Technical College High School Brandywine Campus Car Show in PA Gives Back

to Soldier . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Locations in FL. . . . . . . . . . . . . . . . . . . . . 30 Aluminum Repair Network . . . . . . . . . . . . 34

Hyundai Selects OEC for Collision Parts Ordering

and Fulfillment . . . . . . . . . . . . . . . . . . . . . . . 45

IGONC Learns CPR. . . . . . . . . . . . . . . . . . . . . 8

Last-Minute Court Ruling Delays New

Overtime Rules. . . . . . . . . . . . . . . . . . . . . 18

Three Stamford, CT, Residents Scammed

MI OKs Operation of Autonomous Vehicles

COLUMNISTS

Spotlight on: Premier Auto Body in CA . . . . . 58

in Auto Body Con . . . . . . . . . . . . . . . . . . . . 8

on Public Roads, Previously Only Testing

Allowed . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Attanasio - Former Metal Technician Lands

U.S. DOT Advances Rule on Connected

Attanasio - My Marketing Rap for 2017. . . . . 48

Yoswick - Gauging What Lies Ahead for the

Dream Job with his Animal Art . . . . . . . . . 40

Attanasio - New California Laws That Can

Impact Nationwide Business. . . . . . . . . . . 56

Attanasio - Valspar’s SEMA Highlights Include

Vehicle Tech . . . . . . . . . . . . . . . . . . . . . . . 14

Collision Industry In 2017 Based on the

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor and Copywriter: Deana Cacus Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Content/Social Media Specialist: Cass Heckel Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas

Indexof Advertisers

Larry Montanez Plays Devil’s Advocate for

Events Of 2016 . . . . . . . . . . . . . . . . . . . . . 1

Acura of Westchester . . . . . . . . . . . 28 Amato Agency . . . . . . . . . . . . . . . . 46 AMH Canada, Ltd. . . . . . . . . . . . . . . 8 Atlantic Hyundai . . . . . . . . . . . . . . . 45 Audi Wholesale Parts Dealers . . . . 62 Automotive Technology & Service Expo . . . . . . . . . . . . . . . . . . . . . . . 5 Axalta Coating Systems . . . . . . . . . . 2 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 24 Bergey’s Wholesale Parts . . . . . . . . 29 BMW Wholesale Parts Dealers . 66-67 Cadillac of Mahwah . . . . . . . . . . . . 16 CarcoonAmerica Airflow Systems. . 50 Central Avenue Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . 20 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 37 ChemSpec USA, LLC . . . . . . . . . . . . 6 Classifieds. . . . . . . . . . . . . . . . . . . . 74 Clay Auto Group . . . . . . . . . . . . . . . 49 Clinton Acura . . . . . . . . . . . . . . . . . . 9 Colonial Automotive Group . . . . . . 65 Diamond Standard Parts . . . . . . . . 35 Ditschman/Flemington Auto Group . 19 DJS Fabrications. . . . . . . . . . . . . . . . 6 Eco Repair Systems of North America, LLC . . . . . . . . . . 13 ECS Automotive Concepts . . . . . . . 30 Empire Auto Parts . . . . . . . . . . . . . . 26 Equalizer Industries, Inc . . . . . . . . . 21 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . . 22 Ford Wholesale Parts Dealers . . . . 58 Fred Beans Parts . . . . . . . . . . . . . . 76 Fuccillo Kia of Schenectady . . . . . . 53 Gary Rome Hyundai-Kia . . . . . . . . . 34 GM Wholesale Parts Dealers . . . . . 69 Heritage Chrysler-Jeep-DodgeRAM Owings Mills . . . . . . . . . . . . 10 Herkules Equipment Corporation. . 12 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 38-39 Hyundai Wholesale Parts Dealers . . 63 Infiniti of Norwood. . . . . . . . . . . . . . 57 Innovation Toyota-Scion . . . . . . . . . 40 Jerry’s Ford . . . . . . . . . . . . . . . . . . . 61

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont 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. ©2016 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

Contents

Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 73 Killer Tools & Equipment. . . . . . . . . 25 Koeppel Mazda . . . . . . . . . . . . . . . . 42 Long Automotive Group . . . . . . . . . 56 Lusid Technologies . . . . . . . . . . . . . 11 Lynnes Auto Group. . . . . . . . . . . . . 47 Mazda Wholesale Parts Dealers . . . 54 McGovern Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 14 Mercedes-Benz of Atlantic City. . . . 43 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . 43 Mercedes-Benz of West Chester . . 43 Mercedes-Benz of Wilmington . . . . 51 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 60 MINI Wholesale Parts Dealers . . . . 64 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 70 MOPAR Wholesale Parts Dealers . . 41 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 68 Nucar. . . . . . . . . . . . . . . . . . . . . . . . 31 Polyvance . . . . . . . . . . . . . . . . . . . . 32 Porsche Wholesale Parts Dealers . . 48 ProLine Tool & Supply . . . . . . . . . . 15 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . 18 Safety Regulation Strategies . . . . . 36 SATA Dan-Am Company . . . . . . . . 23 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . 7 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 26, 27 Subaru of Morristown . . . . . . . . . . . 59 Subaru Wholesale Parts Dealers . . 71 Tasca Automotive Group . . . . . . . . 55 Toyota of Morristown . . . . . . . . . . . 59 Toyota Wholesale Parts Dealers . . . 52 U-POL US . . . . . . . . . . . . . . . . . . . . 44 VIP Honda . . . . . . . . . . . . . . . . . . . . 33 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 75 Volvo Wholesale Parts Dealers . . . . 72 Westbury Jeep-Chrysler-DodgeRam-SRT. . . . . . . . . . . . . . . . . . . 17

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 3


Ford Patents Self-Driving Car with a Drone

by Greg Gardner and Chris Woodyard, Detroit Free Press and USA TODAY

Ford has registered 1,442 patents this year, most among the largest automakers, including one for a self-driving car that has its own drone. Based on data compiled by the U.S. Patent and Trademark Office, Toyota was granted 1,368 so far this year, followed by General Motors at 1,131 and Honda at 1,011. Ford had 25% more patents than in the previous year. Raj Nair, executive vice president for product development and chief technology officer, attributed the increase to the push to develop more semi- and fully autonomous technologies as Ford and its competitors position themselves for shared-vehicle mobility. “We are living the innovation mindset in all parts of our business across the globe,” Nair said in a news release. “Our employees are delivering exciting new technologies for our customers at record levels. The Dearborn automaker was granted 1,700 more patents in other countries, bringing the total to more than 3,100 patents granted worldwide this year. Among some of the brighter ideas: ● Self-driving cars with drones. Tony Lockwood and Joe Stanek for an invention that equips autonomous vehicles with drones.

The system deploys a drone from an autonomous vehicle to map the surrounding area beyond what vehicle sensors can see. Passengers can control the drone using the car’s infotainment or navigation system. Mercedes-Benz showed off a similar idea in September, using the drone for parcel delivery from a van. ● Electric wheelchair for a car. Ford’s eChair could make life easier for wheelchair users. Developed by engineers at Ford’s Lommel proving grounds in Belgium, Gunther Cuypers, Robin Celis, and David Longin, the lightweight electric-powered eChair can load itself into a car. ● Water fountain in car. There’s also the idea called On-the-Go H2O, which puts a water fountain next to the cupholders in the car. It was developed by Ford engineers Doug Martin and John Rollinger, using water from condensation that is then filtered and pumped into a faucet located inside the car to provide drinking water. Earlier this year, Ford also introduced the Carr-E, a multipurpose, electric personal transportation device developed by Germany-based engineer Killian Vas. The Carr-E can carry humans, packages and heavy objects. Through this week about 5,500 Ford employees submitted invention disclosures, of which more than 2,200 were from first-time inventors.

New Michigan Law Raises Stakes for Others

Michigan’s new autonomous vehicle law (see story this issue) has received endorsement from automakers who are gives Michigan the broadest set of regulations in the country. GM, which voiced strong support for the legislation, would not confirm if it now plans to test autonomous vehicles in Michigan. But Pam Fletcher, GM’s executive chief engineer of global electric and autonomous vehicles, said the law “positions Michigan very, very well.” Ford has said it plans to deploy a fully autonomous vehicle without a steering wheel or pedals in 2021 for ride-sharing or ride-hailing purposes. Ford intends to sell 100,000 or more a year of the vehicles. “Without this, we wouldn’t be able to enable it here in Michigan,” said Wayne Bahr, global director of Ford Motor Co.’s automotive safety office. “Our headquarters is here, research is here, autonomous vehicle team is here and having the ability to do our testing in a four season environment and to do it right next to where our engineers are is absolutely phenomenal.” GM also is working with partner Lyft Inc. to develop a fleet of self-driving Chevrolet Bolt EVs that it would use for ride-hailing. While it is testing

autonomous Bolts in California and Arizona now, it hopes to test with Lyft’s service within a couple of years on public roadways. Uber is already operating driverless vehicles (see cover story this issue.) “We believe an orderly and safe introduction of autonomous vehicles is a key to success for public acceptance and really maximizing the benefit of these vehicles,” Fletcher said, adding part of the legislation for deploying selfdriving ride-hailing services without a driver is “the way we think this kind of technology needs to roll out.” Michigan is one of eight states along with Washington, D.C., that have laws allowing testing of autonomous cars, according to the National Conference of State Legislatures. California, Florida and Nevada have laws that allow for the “operation” beyond testing. Arizona and Massachusetts’ governors have signed executive orders related to selfdriving vehicles. The bills were amended to allow tech companies such as Google Inc. to test and ultimately operate self-driving vehicles without drivers on state roadways.

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4 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Celphy Flies His Drone to Michigan

Consumer Watchdog Calls on San Francisco Police to Impound Uber’s Robot Cars

Consumer Watchdog has called on San Francisco police to impound Uber’s robot cars operating without a permit on city streets and asked City Attorney Dennis Herrera to file criminal charges against Uber CEO Travis Kalanick. California Motor Vehicle Code requires a permit for testing autonomous vehicles in the state. Violating the Motor Vehicle Code can be a misdemeanor criminal offense, punishable by up to six months in jail. “Uber is essentially driving without a license and its CEO Kalanick should be treated like anyone else who does that,” said John M. Simpson, Consumer Watchdog’s Privacy Project Director. “Kalanick’s willful violation of the law requires prompt response to protect the public’s safety There have already been reports of Uber’s robot cars running red lights in San Francisco. Prosecutors must hold Uber’s executives responsible for their company’s outrageous actions.” Testing autonomous vehicles in California requires a permit from the Department of Motor Vehicles. Currently 20 companies have permits to test autonomous vehicles in the state, demonstrating that following the rules is no

barrier to innovation, Consumer Watchdog said. Among the DMV requirements are that the test driver behind a steering wheel be licensed and trained to operate the vehicle and a company must show insurance coverage of $5 million. Reports of any crashes must be filed, as well as an annual “disengagement” report spelling out circumstances when the selfdriving technology failed and the human driver took control. For instance, Google’s driverless car unit, now renamed Waymo, said its self-driving technology failed 341 times in 425,000 miles—272 times because the software couldn’t cope, turning over control to the test driver and 69 times when the driver decided to intervene for safety reasons. The next disengagement reports are due to be filed with the DMV Jan. 1, 2017. “Uber is threating public safety and trying to avoid providing important information about its activities,” said Simpson. “Using public roads as your laboratory carries responsibilities. Uber is ignoring them and shamefully flouting important safety requirements. It must be stopped immediately.


www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 5


Axalta Employees Give Back During National Hunger and Homelessness Awareness Week To recognize and help raise awareness for National Hunger and Homelessness Awareness Week, observed November 12-20, 2016, employees from Axalta Coating Systems swapped their laptops for ladles and fulfilled the

tious meals a day, in restaurant fashion, at no cost and with no questions asked, 365 days a year. “We at Emmanuel Dining Room are passionate about helping those in need in our community,” said Dorine Menchhofer, Emmanuel Dining Room Associate Program Director. “We are thankful for the support of donors and volunteers that make an impact every single day.” Employees at Axalta’s North American Headquarters also hosted a non-perishable food drive to collect canned goods for Emmanuel Dining Axalta employees volunteered to serve lunch at the Room’s busy holiday seaMinistry of Caring to recognize National Hunger and son. And employees at its Homelessness week Photo Credit: Axalta Mount Clemens, MichiMinistry of Caring’s lunch service gan plant also held a food benefit for needs at its Emmanuel Dining Room the Panther Pantry at Neil Reid High in Wilmington, Delaware. School in Macomb County, MichiThe Ministry of Caring is a gan. The pantry provides food to stunonprofit organization dedicated to dents and families of the high school supporting those living in poverty in who have an emergency food need. the greater Wilmington area. Its EmTo learn more about the Minmanuel Dining Room helps combat istry of Caring or to donate, visit hunger and serves hundreds of nutri- www.ministryofcaring.org.

ASA-CT Learns Scanning Diagnostics Tools

by Chasidy Rae Sisk

On November 17, ASA-CT held its November meeting with a presentation from Dan Young, Vice President of Sales and Marketing at Scanning Diagnostics, on the company’s tool, entitled “See What You Can’t See.” Lisa Siembab, Executive Director of ASA-CT, notes, “It was standing room only as Dan presented the latest in vehicle technologies that call for pre- and post-repair scans. He also cited the OEM recommendations for using the technology. Members were full of questions on the Scanning Diagnostic tool that was demonstrated on a vehicle in the shop.” ASA-CT was pleased with the attendance of several insurance partners and their interest in the new technology. Attendees asked a lot of questions about how to document their findings to justify the scans to their insurance partners. According to Siembab, “Both mechanical and collision shops were present, but it was noted that the mechanical shops are much more involved with the scanning tool than the collision shops.”

Siembab feels “very fortunate that we can bring industry professionals to our state to bring this high-level information to our local markets. It’s difficult for our shops to travel as they are involved in dayto-day operations – so, as a valueadded benefit to our members, we can bring the training to them!” During the meeting, ASA-CT announced that they have contributed hundreds of packages of socks, toiletries and other goods to Enfield Hooyah which will be sent to military members serving in Iraq and Afghanistan. Funds for the donations were raised from ASA-CT’s golf outing in June. Enterprise sponsored ASA-CT’s November meeting. ASA-CT also announced that the association will be hosting a CT Legislative Day during the first quarter of 2017. ASA Lobbyist Robert Redding will assist shops in meeting with legislators to address reinstatement of safety inspections on the mechanical side and double taxation on paint and materials on the collision side.

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6 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com


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IGONC Learns CPR by Chasidy Rae Sisk

On November 17, the Triangle Chapter of the Independent Garage Owners of North Carolina (IGONC) came together for a CPR class organized by Dean Bailey, chapter president, at a local community center. Bob Pulverenti, Executive Director of IGONC, states, “Our members felt it would be a great asset to have staff members who were certified in CPR at their garages in case an emergency ever arises.” Attendees earned their American Heart Association CPR certification while enjoying pizza and sweets with their peers. IGONC hosted this training session as part of their ongoing efforts to help association members stay current and competitive. According to Pulverenti, “I think everyone left feeling really good about themselves for having learned something that could benefit them both professionally and personally.”

Three Stamford, CT, Residents Scammed In Auto Body Con They allowed him to pay his respects for his mother for a few minutes beLike father, like son. Stamford Police fore they took him away. said they arrested a New Haven man DeRiu said father and son used who ripped off people on auto repairs the same scam to target and rip off their two years after arresting his father in victims by cruising commercial parkthe same scam. ing lots to spot someone vulnerable. Bobby Megel, 28, was They would offer a charged Thursday, Novemridiculously low estimate to ber 10, with multiple counts fix some body damage while of larceny, operating a repair the person shopped, DeRiu shop without a license and said only to tell their victims illegal sales without a tax rewhen they returned that it ceipt after he scammed three was more expensive to reStamford residents — inpair than the estimate and cluding an 88-year-old man ask for more money. Often and a woman with Parkinthe “repairs” were simply Bobby Megel son’s Disease — of about putting some wax on a vehiCredit: Stamford $3,700, police said. cle, DeRiu said. Investigator Paul De- Police Department In the son’s case, he was Riu said said Megel’s father, Jimmy pulling his scam on the High Ridge J. Megel, 44, was arrested by Stam- Road area and in March scammed a ford Police two years ago after he woman with Parkinson’s disease, was accused of ripping off a then 88- DeRiu said. He told her the repair year-old man of $138,000 in repairs was more expensive than he thought on his 1997 Chevrolet Caprice over a and said he needed more money. period of several months. He was He followed the woman to an sentenced to 10 years in prison after ATM, where the nervous woman pleading guilty. dropped her ATM card and drove In that case, Megel was arrested away after giving him $200, police by police outside his mother’s wake said. He was able to retrieve the card in New Haven by plainclothes police and withdraw another $500 from her before he knew what was happening. account, police said. by Frank MacEachern, Stamford Daily Voice

His next victim was also in March, when he persuaded a 44-yearold woman to pay him $200 to make repairs, police said. When she returned home, her husband found that the repair was so bad it cost the woman about $1,200 for a legitimate repair shop to fix it, DeRiu said. Despite being scammed, the woman was alert enough to have taken photos of Megel’s license and license plate number and report it to police, DeRiu said. In April, Megel hit pay dirt when he targeted an 88-year-old man and persuaded him to pay him $120 to repair his 2001 Chevrolet Prism, police said. The elderly man also allowed Megel to go to his home and work on his vehicle, police said. Megel was able to swindle him out of $2,700 for those phony repairs and charging him for parts that were never delivered, police said. Megel is also facing similar charges in Westport, DeRiu said. DeRiu warned consumers that if a deal seems too good to be true, it probably is. We thank Stamford Daily Voice for reprint permission.

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8 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com


Technical College High School Brandywine Campus Car Show in PA Gives Back to Soldier by Daily Local News Staff

The fourth annual Car Show and Community Day became a time of giving back and a time of thanks to a soldier. The show was recently held at the Technical College High School (TCHS) Brandywine Campus, which partnered with the Recycled Rides program, and presented Sgt. Tiffany Rowan with a refurbished 2012 Nissan Sentra by 3D Auto Body and Collision Centers. Rowan, of Bethlehem, is a 12-year member of the United States Army Reserves. She has been deployed to Iraq, Kuwait and Qatar in support of Operation Iraqi Freedom and Enduring Freedom. Her fiancé, Vernon McLucas, is a veteran of the New York Army National Guard, after serving his six-year contract. For both, the transition from active duty to civilian life has been challenging. Because of that, she expressed gratitude for the car. “We’ve had some hard times since we came back getting acclimated to being civilians,” Rowan said. “It’s been very difficult. I am really excited about the car.” The winners from the car show were a 1931 Ford AA Mail Truck/James

T. Horn of Coatesville, first; 1940 Buick Super Coupe/Jeff Rice of Downingtown, second; and 1964 Ford 500 XL Convertible/Gordon Fry of Glen Mills in third.

nary arts students. The event was coordinated by Kate Viggiano, administrative assistant to TCHS Principal Frank McKnight, and Mark Serfass, TCHS Pickering instructor. “There was a great turnout,” Viggiano said. “The show is a scholarship fundraiser as well as a community day and open house to highlight the entire school and all of the programs we have to offer them.” “It was another opportunity to see all the great things students are doing in career and technical education,” TCHS Brandywine Assistant PrinciTiffany Rowan, of Bethlehem, a 12-year member of the pal Dave Purdy said. “It was U.S. Army Reserves, sits in the driver’s seat of the 2012 a great day for our local busiNissan Sentra she was presented with by 3D Auto Body nesses, our sponsors, commuand Collision Centers during the fourth annual Car Show nity members, our staff and and Community Day at the Technical College High students to come together and School (TCHS) Brandywine Campus in Downingtown. have a good time, plus allow Credit: Daily Local News us to promote the building.” According to TCHS Brandywine The car show is sponsored and representatives, about 1,000 people at- supported by 3D Auto Collision Centended the Recycled Rides ceremony. ters, ABRA Auto Body and Glass, Black Activities included building and class- Horse Auto Body Supply, Valspar, room tours, and services provided by Coatesville Youth Initiative, Fast Signs, area businesses and TCHS program Franklin Mint Federal Credit Union, the instructors, face painting and food pre- Chester County Intermediate Unit Pracpared by the TCHS Brandywine culi- tical Nursing Program and Universal

Technical Institute. According to event organizers, participating organizations included Geico Insurance and the time and materials for Rowan’s car were donated by Fred Beans Parts of Doylestown, Wensel’s Repair of Spring City, Lehigh Valley Bumper of Allentown, LKQ Corp. of Philadelphia, Keystone Automotive of Philadelphia and Chuck’s Auto Salvage of Douglassville. These groups worked in conjunction with 3D’s Spring City facility to restore the 24,000-mile Nissan to factory condition. “I feel privileged to be allowed to do this,” said 3D owner Dave Niestroy. The Recycled Rides program was developed by the National Auto Body Council in 2007. The program brings together insurers, collision repair experts, paint suppliers, parts vendors and other collaborators to repair and donate vehicles to deserving individuals and service organizations. We thank Daily Local News Staff for reprint permission.

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Criswell Collision, Allstate Donate Vehicle in MD Criswell Collision Center, one of the largest shops in Annapolis, MD, in conjunction with the National Auto Body Council’s Recycled Rides Program, presented a 2010 Honda Odyssey van to Melissa Crockett and her family on Dec. 17. Charity Cars and Allstate Insurance company also aided the charitable effort. Allstate donated the vehicle, while Criswell Collision Center refurbished it. Charity Cars and Recycled Rides were instrumental in choosing the Crockett family from hundreds of applicants in the region.

DOT Says All Electric Vehicles Need to Make Noise The US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced recently that electric and hybrid cars will need to emit a sound at up to 19 mph in order to protect pedestrians. The soundemitting device will need to be in all new electric and hybrid cars manufactured starting in September 2019.

Morris County Auto Body Students Repair Washington Township OEM Trailer by Anthony Locicero, The Patch, Long Valley

Students from Morris County School of Technology’s auto body shop classes restored a trailer for the Washington Township Office of Emergency Management.

students from across the Morris County who attend it.” The purchase of a new trailer was not in the municipal budget, Communications and Digital Media Manager Larry Ragonese said in a news release. Washington Township police donated an unused trailer that had been for student DARE program training, Ragonese said.

auto body classes, which included roughly 20 students, sanded the trailer, stripped the old paint, and removed rust, Rosso said. A two-part epoxy paint was applied to make the trailer weather-resistant and durable, according to Rosso. “It was a classic ‘win-win’ situation,” said Rosso. “Our students would get a technical challenge that could further their training and a community

Credit: County of Morris

“The Washington Township OEM contacted the school and asked if we could help,” said auto body curriculum instructor Louis Rosso. “They brought the trailer down to our school and the students went to work.” The trailer allows the OEM to haul supplies to emergency shelters. “The teachers and students at the Morris County School of Technology should be applauded for their efforts,” said Freeholder Hank Lyon, the county governing board’s liaison to MCTS. “It’s another example of the great value of our county school for

10 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Credit: County of Morris

However, the exterior of the trailer “was in bad shape” and couldn’t “accomodate the identifying township isignia,” Ragonese added. MCST’s morning and evening

in need would get a workable solution to its problem.”

We thank The Patch, Long Valley for reprint permission.


www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 11


Continued from Cover

Ahead to 2017

lision repairers. Perhaps in 2017 more state insurance commissioners will follow the lead of their counterpart in Illinois, who this past year conducted a market conduct survey that lead USAA to end the use of caps on paint materials in that state. Montana’s Insurance Commissioner this past year issued a reminder to insurers that a lower estimate from a shop in the same market does not define market price. In California, Insurance Commissioner Dave Jones also just finalized new rules for how insurers conduct collision repair labor rate surveys in that state, which could well impact what shops there get paid in 2017. But he also said shops don’t have to wait for those new regulations to go into effect if they have a concern about what they are being paid by an insurer. “If you believe that you’re being presented with a reimbursement based on a labor rate survey that you suspect is not accurately capturing what the labor rate is in your market, you can complain to us now,” Jones said. “We have pursued those complaints. We ask the insurer [for] their labor rate survey. We take a look to see whether in fact it’s designed in a way to provide a fair result. In some cases, we have concluded that it hasn’t been, and have gotten corrections.” More automaker involvement in collision repair. Certainly the six automakers (General Motors, Nissan, Honda, Toyota, Fiat Chrysler) that issued position statements this past year on pre- and post-repair scanning of collision-damaged vehicles are not the last to do so. The industry likely will see more such statements in 2017, along with continued debate and friction between shops and insurers in terms of what those procedures mean for claims. While scanning is perhaps the most talked-about subject involving automakers and collision repairers, there was also plenty in 2016 to indicate more OEM involvement in the industry in others ways is coming in 2017. Vehicle telematics, for example, could increasingly be used by either automakers or insurers to get immediate notice of an accident and potential early influence on where that wrecked vehicle is taken for repairs.

“Our experience in Europe has shown that our partners have…been able to reduce cycle time and actually drive down the costs of claims, seeing a noticeable difference in their loss ratios, attributable to the use of telematics,” John Kramer, a former Nationwide Insurance executive now with Octo Telematics, said last year

CA Insurance Commisioner Dave Jones

on automakers’ use of data from the vehicle as part of the claims process. “When there is a crash, there is a ‘first notice of loss’ that is provided to the insurance company within minutes of the observance of the [vehicle] behavior.” Other automakers may begin certifying collision repair shops in 2017 as well. “We are now moving into the research stage and development of a certification program for all General Motors vehicles,” GM’s John Eck said last summer. Legal battles over parts, steering will continue. Several lawsuits in the industry reached conclusions this past year, but there are plenty of courtroom battles ahead in the coming year. Four lawsuits pitting Ford Motor Company against the non-OEM parts industry, for example, continue to inch along in federal courts. All of the suits involve Ford’s design patents on crash parts, which limit the production and sale of non-OEM versions of those patented parts. The Automotive Body Parts Association (ABPA), which represents non-OEM parts manufacturers and distributors, is asking a U.S. District Court to invalidate those patents. The ABPA argues that the parts are functional rather than ornamental, and that other courts have invalidated design patents (on items such as toner cartridges) when the design is found to be primarily functional. The other patent-related lawsuits involve Ford and a Texas-based aftermarket parts distributor New World

12 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

International and two affiliated companies; Ford alleges those companies sold non-OEM crash parts that infringe on the automaker’s design patents, while New World has also sued to have Ford’s design patents invalidated. Also still pending in various degrees of appeals are some of the two dozen lawsuits brought by shops around the country suing insurers for allegedly conspiring to manipulate shop labor rates and compensation. There’s been little in the court decisions in this past year that indicate much hope for the suits still surviving a year from now. Virtually all have been dismissed, though some of those dismissals are under appeal; some such appeals, however, were dismissed this past year because of failure by the shops’ attorneys to meet appeals court deadlines. Perhaps most troubling about the lawsuits is if additional court rulings in 2017 will echo those issued last year by U.S. District Court Judge Gregory Presnell in the suit brought by shops in Tennessee. In dismissing the suit, Judge Presnell ruled that he saw nothing wrong in one of the instances of steering cited in the lawsuit, one in

which State Farm “required the vehicle be taken to its DRP shop.” Presnell ruled, in fact, that “Tennessee law allows an insurer to require that an insured take his or her vehicle to a particular shop for repair.” He reached this conclusion by pointing to Tennessee’s Unfair Trade Practices and Unfair Claims Act, which states in part that if an insurer “requires a repairer to be used,” the insurer must establish standards to “assure the repairs are performed in a workmanlike manner.” “The necessary implication of this language is that insurers can legally require that their insured patronize a preferred repair shop,” Judge Presnell wrote. Similar rulings like that in any of the other lawsuits could change the face of “steering” by insurers in 2017 and moving forward.

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 bulletin (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.


www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 13


U.S. DOT Advances Rule For Connected Vehicle Tech

Citing an enormous potential to reduce crashes on U.S. roadways, the U.S. Department of Transportation issued a proposed rule that would advance the deployment of connected vehicle technologies throughout the U.S. light vehicle fleet. The Notice of Proposed Rulemaking would enable vehicle-to-vehicle (V2V) communication technology on all new light-duty vehicles, enabling a multitude of new crashavoidance applications that, once fully deployed, could prevent hundreds of thousands of crashes every year by helping vehicles “talk” to each other. Said U.S. Transportation Secretary Anthony Foxx. “This long promised V2V rule is the next step in that progression. Once deployed, V2V will provide 360-degree situational awareness on the road and will help us enhance vehicle safety.” The proposed rule would require automakers to include V2V technologies in all new light-duty vehicles. The rule proposes requiring V2V devices to “speak the same language” through standardized messaging developed with industry.

Submarine Surfaces at BOCES School by Terry Brown, Duty Calls

Capital Region BOCES (Boards of Cooperative Educational Services) Career and Technical School students are restoring a replica of a World War II Balao class submarine. The Albany-Saratoga Chapter of U.S. Submarine Veterans uses the replica on floats in parades and for educational purposes. The sub surfaced at Capital Region BOCES Career and Technical School in Colonie, bringing a repair challenge and a mission that students promise to complete. Students from the automotive, welding, auto body, carpentry services and other programs joined forces for the project. “Rather than being made solely of metal — as real submarines are — the sub is a combination of materials, providing multiple CTE programs the opportunity to work on and restore the piece,” BOCES spokesman Mike McCagg said. Chapter members used wood as they built the sub float more than eight years ago. “It’s starting to rot and come apart in some areas,” said Bill Preece, a member of submarine veterans organ-

14 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

ization. “We were looking for someone to restore it for us and someone recommended BOCES. Now we are very happy to be getting the work done.” The project provides hands-on

“Students from several programs will be involved as it teaches the kids not just about the technical skills they are learning, but about the value of good citizenship.”

BOCES Career and Technical School student Nijuan West of Schenectady looks on as submarine veteran Al Singelman points out the artwork on the replica submarine. Credit: Mike McCagg / BOCES

learning opportunities for students while also teaching the value of giving back to the community and honoring those who served our country, James Haas, work-based learning coordinator for BOCES, said. “It’s a fantastic project,” he said.

Students will use metal as they restore the sub, chapter member Al Singleman said. The restoration will give the sub a much longer life. We thank Times Union for reprint permission.


MA Used Car Dealership to Cease Operations, Pay Restitution to Consumers for Selling Unsafe Vehicles A South Shore used car business will cease operations and its owner will pay restitution after they were sued for selling unsafe and unreliable used cars, failing to make repairs which were promised or required under warranties, and operating in unlicensed locations, Attorney General Maura Healey announced on December 7. The consent judgment, entered in Suffolk Superior Court, resolves allegations that Auto Number One, Inc. and its owner Mark Hanna, of Abington, routinely made false representations to consumers that cars were in good working order or would be repaired. Pursuant to the settlement, Auto Number One will cease all operations in Massachusetts. The company and Hanna will also pay nearly $25,000 in consumer restitution. An additional $85,000 in civil penalties and attorneys’ fees will be suspended pending the defendants’ compliance with the terms of the consent judgment. According to the AG’s complaint, which was filed in January 2015, Auto Number One frequently sold vehicles that failed to pass inspection and refused to provide refunds or make re-

pairs or promised to make repairs but then did not do so. Additionally, the complaint alleged that Auto Number One retained vehicles during consumers’ seven-day inspection period, so that consumers would be unable to exercise their rights under the Lemon Aid Law. Consumers reported a variety of issues with their vehicles from Auto Number One, including lack of heat, oil and other fluid leaks, a broken catalytic converter, and transmission issues. Many consumers spent weeks or months trying to get their vehicles repaired, often making multiple unsuccessful repair attempts. Several consumers took their vehicles off the road altogether because they could not get them in safe working order. Auto Number One has operated out of locations in Weymouth, Quincy, and Abington. The AG’s complaint alleged that Auto Number One advertised and sold vehicles from locations where it was not licensed to do so, including a location on Washington Street in Weymouth and on Adams Street in Quincy. In order to operate as

a used vehicle dealership, or to display used motor vehicles for sale, a person must obtain a license from the city or town. The AG’s Office continues to look into deceptive practices in the auto industry. In September, the AG’s Office sued a Westport used auto dealership for selling unsafe and unreliable vehicles to consumers. For questions about this case or about the auto industry in general, consumers may call the Attorney General’s consumer hotline at 617727-8400 or file a complaint with the office.

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ASA Midwest Presents 2016 VISION South of the Border by Chasidy Rae Sisk

On November 10-14, automotive service industry professionals traveled to Riviera Maya, Mexico for the 2016 VISION South of the Border educational and networking event. Attendees received vital industry training while enjoying networking opportunities and plenty of time for exploration and relaxation. Guests began their adventure on Thursday evening with a welcome party. Friday and Saturday mornings were filled with management and technical training sessions, while afternoons were left free for excursions. Management training was presented by Jeremy O’Neal, and Scot Manna headed up the technical training sessions. VISION South of the Border 2016 concluded with a farewell party on Sunday evening, November 13. More information can be found at www.visionsouthoftheborder.com.

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LIABRA’s November Meeting Featured Multiple Guest Speakers industry, are subjected to. The department is staffed with all new people, and On Tuesday, November 15, the Long Is- they were interested to learn about land Auto Body Repairmen’s Associa- many of our industry issues. This was a tion (LIABRA) held its monthly preliminary meeting, and a future meetmeeting at Eagle Automall in Riverhead, ing with the Commissioner of Insurance NY. Eagle Automall provided a buffet is scheduled. Because of the technical dinner for members before the tsunami that has engulfed our meeting which was hosted by industry LIABRA is now all Eagle Chevrolet Parts Manabout education, our future ager Mike Migliore. meetings will be similar to At 8PM, LIABRA Execthis one: dedicated to OEM utive Director Ed Kizenrepair training and educaberger began the meeting by tion.” introducing Migliore who disKizenberger Jr. then took tributed GM brochures and rethe floor to talk about the Ed Kizenberger minded attendees that GM is poor conduct of some insuroffering reduced prices on OEM radia- ance companies when handling tors and AC condensers to compete with claims, asking members to report any aftermarket parts. unfair claims practice to liabracomProceeding with a discussion of plaint@gmail.com. LIABRA will be industry news and current events, compiling patterns of these unfair Kizenberger reported on a meeting he practices to report to the NY Insurance and Ed Kizenberger Jr. attended at Department. Kizenberger Jr. also dithe New York Financial Services De- rected attendees to OEMeducation partment. According to Kizenberger, .com for technical information regard“The New York State Insurance De- ing the repair of any vehicle. partment and Banking Department Next, Bradley Sperber of I. Behave been combined into the NYS Fi- lenson Lien Company provided a brief nancial Services Department. At the synopsis of the lien process, advising meeting with various department heads, that a mechanics lien can be filed after we outlined many of the unfair claim 30 days for unpaid repair costs or storpractices that consumers, and we as an age. He emphasized, “It is very imporby Chasidy Sisk

tant to have a properly signed repair order or storage doc.” After Sperber’s presentation, LIABRA Director John Quinonez introduced Brilliant, a new biodegradable and echo-friendly cleaning product that can be used on wheels and tires to remove brake dust as well as on interiors and exteriors to remove heavy dirt, grease and grime. Quinonez demonstrated the product’s effectiveness on an aluminum wheel covered with brake dust.

Christopher Peace, technical training instructor for GM, followed by distributing student handbooks on body electrical system service and repair after collision for his seminar on the necessary procedures for safe repair and operation of vehicles after an accident. Topics covered included wire harness repairs, high intensity discharge and dynamic headlight set up.

According to Peace, “The objective of the course was to train the student to identify vehicle post-accident inspection and repair procedures, learn the GM approved wiring repair strategy, identify electrical ground point repair procedures and communicate how to read and analyze electrical schematics, and how to discuss dynamic headlight diagnostic and service processes. This seminar was very well-received by the members; during the seminar, members asked numerous questions and interacted with Christopher.” After the seminar concluded at 10PM, LIABRA’s meeting adjourned with the 50/50 club drawing; Cliff of Corwith’s Auto Body won. Next, Al Andrews of Kemperly Auto Body Supply won a drawing for a $500 gift card, courtesy of Eagle Automall who also supplied Dunkin Donuts coffee and doughnuts after the meeting. LIABRA’s next meeting, a technical seminar on vehicle scanning by Astech and a BMW technology repair training seminar will be held at Competition Imports in Smithtown on January 17. Kizenberger states, “LIABRA would like to wish all our members friends and supporters all the very best for the holiday season!”

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Last-Minute Court Ruling Delays New Overtime Rules by Shira Schoenberg, The Republican

A federal judge’s ruling in Texas could affect the way Massachusetts businesses calculate overtime pay. U.S. District Court Judge Amos Mazzant last week issued an injunction blocking new Department of Labor regulations from going into effect as scheduled on Dec. 1. The regulations would have increased the number of workers who are eligible for overtime pay by an estimated 4 million workers nationwide. “We saw this as a necessary change in the spirit of what the overtime law has always been, so we’re definitely disappointed with the impact of this ruling,” said John Drinkwater, legislative director for the Massachusetts AFL-CIO. Business groups generally opposed the new rules. “The stay is a bit of good news for employers,” said Steve Clark, director of government affairs for the Massachusetts Restaurant Association. By law, a worker who works over 40 hours a week deserves overtime pay—but not if they are working in an executive, administrative or professional capacity. Under current regulations, a worker must be paid at least $23,660 a year to qualify for that exemption. The rule proposed by Democratic President Barack Obama’s administration would lift the salary threshold to $47,476 annually, or $913 a week. The goal is to make low-paid managers,

such as shift managers in fast-food restaurants, eligible for overtime pay when they work more than 40 hours a week. Advocates for the rule change say it will help these low-income workers earn more money or not have to work excessive hours. Critics say it will hurt businesses, and business owners will simply change the way they pay workers. For example, instead of paying a salary, they might pay an employee an hourly wage that takes into account overtime pay. The White House estimates that approximately 83,000 Massachusetts workers would benefit from the rule change. Twenty states, led by Nevada, along with 50 business groups, sued to overturn the rule. They argued that the federal government was infringing on states’ rights, and the regulation is not what Congress intended when it wrote the underlying law. Mazzant, on Nov. 22, ruled in favor of the plaintiffs and granted an injunction blocking the new rules from going into effect. The ruling throws the future of the law into doubt. Although the U.S. Department of Labor is likely to appeal, an appeal would probably not be decided before Republican president-elect Donald Trump takes office. If the Trump administration agrees with the businesses, it can drop the appeal and let the Texas ruling stand. Trump could also more easily repeal the regulations, since they will not be in effect yet.

Massachusetts business groups opposed the change, although they say the last-minute ruling creates some confusion. Chris Geehern, a spokesman for Associated Industries of Massachusetts, said his organization had argued that the extent of the change was too radical. “We thought the doubling of the minimum was a little excessive,” Geehern said. But Geehern said if companies already made changes—for example, giving pay raises or making employees hourly rather than salaried—it might be difficult to go back. “We’re not telling employers you should go forward with changes you made or don’t go forward, it is really up to the best judgment of the employer to determine what kind of effect going back and putting all this stuff on hold is going have on employee morale,” Geehern said. Restaurants are among the businesses most likely to be affected, since many restaurants have low-level managers. Clark said he believes most restaurant workers would be paid the same amount of money but would be reclassified—for example, by being

moved from salaried to hourly with overtime pay factored in. Some companies may instead choose to give pay raises or limit worker hours. Like Geehern, Clark said the restaurant association felt the doubling of the wage standard was “very aggressive.” But he said the late change is likely to cause confusion. “A lot of employers already began having conversations with employees, so it’s hard to put the genie back in the bottle,” Clark said. Drinkwater, of the AFL-CIO, said he does not know what most employers will do. But he is disappointed that the salary threshold is now unlikely to change. Drinkwater said the rules were one way to address growing inequality, in which workers’ wages are not keeping pace with the cost of living. “Part of that has to do with hourly wages remaining fairly stagnant in a lot of areas of the economy,” Drinkwater said. “Another big piece of the puzzle is fewer workers are eligible for overtime pay and are essentially working a lot of uncompensated hours.” We thank the Republican for reprint permission.

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H&V Collision Center Joins with Marines for Toys for Tots 2016 Holiday Collection

H&V Collision Center, the largest independent and family-owned collision repair company in the Capital Region, joined with the Marine Corps to collect for Toys for Tots at all H&V locations in upstate New York. H&V stationed Toys for Toys collections boxes at all seven H&V locations. The H&V locations included Troy, Queensbury, Colonie, Saratoga, Kingston, Schenectady and Clifton Park. H&V has undertaken Toys for Tots collections in recent years. Customers and visitors were invited to make donations during the holidays at one of the seven H&V locations. “Holidays and Christmas are a time for sharing and giving. H&V Collision Center is proud to join with the Marines to help make Christmas

brighter for kids in the H&V service area,” said H&V’s Vartan Jerian Jr. The Toys for Tots 2016 collection was the latest in a long series of community donations by H&V. This past summer, H&V donated three cars to three veterans at a Tri-City ValleyCats minor league baseball game in Troy. The donations marked the 14th, 15th and 16th vehicles donated by H&V to veterans and families facing special challenges. H&V has been recognized for donations and support of veterans by veteran organizations in the region in recent years. “We are proud to serve so many great customers in upstate New York, and H&V is equally proud to be able to give back and help deserving charities,” said Jerian.

18 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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Shop Strategies

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

Industry Veteran in Pennsylvania Shares Secret to Running a Successful Body Shop with Stacey Phillips

—When Ron Perretta started Professionals Auto Body at the age of 19, he set out to do business with the traits that he said were instilled in him from a very young age—values, ethics and

service. In addition to running two body shop locations in Altoona and Duncanville, Perretta operates a full mechanical facility, a towing company and a consulting and coaching business. Autobody News spoke to this industry veteran about the recent awards he received and the secret to running a successful operation.

Congratulations on receiving the ‘Excellence in Small Business’ Q: award from the Blair County Chamber

of Commerce. What was your reaction when you found out that Professionals Auto Body was recognized?

Ron Perretta and his wife Paula after receiving the ‘Excellence in Small Business’ award

morals. Over the years, he has run his Pennsylvnia-based business based on these core attributes while focusing on quality repairs and excellent customer

A:

I was humbled. First, in February 2106 my peers in the community along with the chamber honored me with the Small Business Person of the Year award. Then in October my business, Professionals Auto Body, received the Excellence in Small Business award from the chamber. This

20 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

month we received the Hometown body shop award, which we have won repeatedly year after year. All I could think was out of the thousands of businesses we received these awards. It was amazing.

Professionals Auto Body has received multiple awards over the years

Present at the awards was my wife Paula, management, technical staff and people who have helped us from the very first day—“1979.” (link to video of Ron Perretta’s speech: http://bit.ly/ronperretta

shops that you think contributed to receiving the award?

I often say, if you had a repair A: done by me 30 years ago, and again today, some of the same people

would be here to help you. Some of the practices or ingredients are being loyal to my staff, community and customers and receiving their loyalty in return; eliminating drama and distractions; product consistency; keeping ahead of vehicle changes, equipment and training; and not wavering from our beliefs. Most importantly, I respect everyone who works at the business regardless of their position. Lastly, I never wanted to be like others in the industry, copying what they’ve done. I’ve run things not as a body shop but as a business, which has differentiated me in my market and industry.

Can you share some of the pracWhat is your advice to other Q: tices at your Pennsylvania body Q: shop owners who are starting


out in the industry?

A:

The only way to succeed in this business or any other is to be passionate at whatever you do. Don’t

five new positions within the last year and am now working on taking over another shop. I have a production/consulting company that has been expanding. We not only manage social media for body shops, but other businesses along with creating radio, TV, print commercials and coaching. I see 2017 as being a very busy year.

What is the secret to Q: running a successful business in this industry?

Ron Perretta and the Professionals Auto Body management team

expect things to be handed to you. You will appreciate your accomplishments more and so will others, as demonstrated by my awards. Create your niche, be consistent, do the right things and don’t listen to people who only share poor advice.

What are some of the upcoming for your shop in 2017? Q: goals We are growing and I’m not on A: any DRP programs. I’ve added

Literally without any A: money, from the very first day I opened I kept the

shop clean and organized. Today, all three of my stores are beautiful, well maintained and equipped. This is the kind of environment people should enjoy working in. This environment is important to people and shows I care about them. This and additional philosophies create an awardwinning business. For more information, visit http:// www.professionalsautobody.com or contact Ron Perretta at Professionals Auto Body: ronperretta@aol.com or 814-931-7669.

Carubba Collision Presents $10,000 Check to the Food Bank of Western New York

Joe Carubba, president of Carubba Collision Corp., presented a $10,000 check to the Food Bank of Western New York at Operation: “Rock Out Hunger” on November 18 at the Food Bank Trailer located in front of the Eastern Hills Mall in Amherst, NY. “Rock Out Hunger is a tremendous event to bring public awareness in an effort to help those less fortunate than us,” stated Carubba. “We are thrilled to present this check to provide 476 turkeys to families in our community [during] Thanksgiving.” Accepting the check from the Food Bank of WNY was Marylou Borowiak, president and CEO of the Food Bank of WNY, along with representatives from New Beginnings Food Pantry and Evangel Food Pantry, who were on hand to load the turkeys. “We are incredibly grateful to Joe Carubba and Carubba Collision Corp. for this wonderful donation!” said Marylou Borowiak. “Through the years, their generosity has touched the lives of thousands of local families in need. The Food Bank of WNY is thankful to have such amazing part-

ners in the fight against hunger.” Carubba Collision has served the greater Buffalo area since 1955. According to the company, giving back to the community is something that Carubba Collision has a long and proud history of. Several nonprofits have benefited from the generosity of Carubba Collision over the years, including Make A Wish, Young Life, Mercy Flight, ECMC Trauma Unit, YMCA, the Food Bank of WNY, the Niagara County Sheriffs K-9 Unit, the City Mission, the NYS Golden Gloves, SPCA and the University at Buffalo.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 21


NY Attorney General Announces $1.6 Million Settlements With Auto Dealerships That Illegally Charged Thousands Of Customers For Hidden Purchases

Attorney General Eric T. Schneiderman on December 8 announced the settlement of a lawsuit against SG Hylan Motors Corp., a Staten Island dealership doing business as Staten Island Honda and Staten Island Nissan and a separate settlement with Best Auto Outlet, Inc. located in Floral Park. The SG Hylan settlement resolves a lawsuit filed by the Attorney General in July 2016, which alleged that these auto dealerships unlawfully sold “after-sale” products and services, including credit repair and identity theft protection services, to over 2,300 consumers, sometimes exceeding a cost of $2,000 per consumer. The settlement requires SG Hylan to pay $1.5 million in restitution to these consumers. The agreement with Best Auto, which returns $115,000 in restitution to consumers, concludes an investigation into this dealership for similar misconduct – alleged unlawful sale of credit repair and identity theft prevention services, and other “after-sale” items to over 200 consumers. Each agreement requires payment into a restitution fund to be distributed

to consumers with CFI contracts. SG Hylan must also pay $100,000 in penalties, and Best Auto must pay $10,000 in penalties. Under the settlements, the dealerships are prohibited from:

• Selling, offering to sell or marketing credit repair and identity theft services in connection with the sale or lease of a vehicle

• Selling, offering for sale, or providing to consumers any after-sale product or service unless, prior to such sale, certain material terms, including price, are disclosed verbally and in writing;

• Misrepresenting the price of the vehicle in final lease or sale contracts

• Failing to provide consumers with sales or lease agreements that clearly and conspicuously itemize each aftersale product or service and its price These settlements are part of the Attorney General’s initiative to end the practice that automobile dealers call “jamming,” or charging consumers for hidden purchases. In 2015, Attorney

General Schneiderman announced a settlement with Credit Forget, Inc., the company that purported to provide the credit repair and identity theft protection services. Since 2015, the Attorney General has settled with 11 dealerships for amounts totaling over $17 million in restitution and penalties. Over 22,000 consumers have been eligible for restitution under these settlements. The settlements include the following dealerships: Paragon Auto Dealership: a group of automobile dealers in Queens and Westchester counties, including Paragon Honda, Paragon Acura, and White Plains Honda Plaza Auto Dealership: a group of dealers located on Nostrand Avenue, Brooklyn, including, Plaza Toyota-Plaza Scion, Plaza Hyundai, Plaza Honda and Acura of Brooklyn Manfredi Auto Dealership: a group of dealers located on Hylan Blvd, Staten Island, including Manfredi Fiat and Fiat of SI, Manfredi Mitsubishi, Manfredi Kia, Manfredi Hyundai, Manfredi Cadillac, Manfredi Chrysler Jeep & Dodge, Manfredi Fiat Inc., S.I. Toyota, Manfredi Toyota and Manfredi Scion, Manfredi

Subaru, Manfredi Mazda and Staten Island Subaru Koeppel Auto Dealership: a group of dealers located in Jackson Heights, Long Island City and Woodside, Queens, including Koeppel Nissan, Inc.; LK Automotive Enterprises, LLC. d/b/a Koeppel Subaru, KL Auto Enterprises LLC. d/b/a Koeppel Mazda and Koeppel Volkswagen, Inc., I. Autoworld, Inc. d/b/a Generation Kia: located in Bohemia, Long Island Nissan 112: located in Patchogue, Long Island Huntington Honda, Honda of New Rochelle and New Rochelle Toyota: located on Long Island and in Westchester counties Westbury Jeep Dodge and Fiat of Westbury: located in Westbury, Long Island Security Auto Sales, Inc. d/b/a Security Dodge: located in Amityville, Long Island The office is continuing to investigate a number of other New York auto dealers that sold or sell after-sale services without the knowledge and consent of consumers.

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A.G. Schneiderman Announces Conviction in Automobile Accident Ring on Long Island by Long Island News & PR

Attorney General Eric T. Schneiderman has announced the convictions of nine individuals for their roles in staging four automobile accidents in Nassau and Suffolk counties to fraudulently receive insurance payouts. The defendants, including ringleader Guilberto Jean, pleaded guilty to participating in a series of staged accidents in which rented U-Haul or Penske trucks were intentionally crashed into cars loaded with participants, who were then directed to be treated for fictitious injuries at medical clinics in Freeport and Valley Stream. As a result of the fake accidents and falsely reported injuries, the defendants submitted fraudulent insurance claims totaling more than $150,000. “Insurance fraud costs all New Yorkers by distorting the marketplace and increasing premiums,” Attorney General Schneiderman said. “Anyone who thinks they will be able to get away with these types of fraudulent practices should think twice. As today’s convictions demonstrate, if you attempt to exploit the insurance system for personal gain, you will be punished.” In 2015, nine defendants were charged by the Attorney General’s Auto Insurance Fraud Unit (“AIFU”) in relation to four staged accidents: An “accident” dated October 30, 2010, at the intersection of Brook Avenue and Mildred Avenue in Bay Shore, in which a U-Haul truck rearended a Mitsubishi; An “accident” dated December 19, 2010, at the intersection of Patton Avenue and East Little Neck Road in Babylon, in which a U-Haul truck sideswiped a Chevrolet; and An “accident” dated June 16, 2011, at Straight Path Road in Suffolk County, in which a Penske truck rearended a Honda; and An “accident” dated June 29, 2011, at the intersection of Milburne Avenue and Harold Avenue in Hempstead, in which a U-Haul truck rearended a Toyota. The four accidents were staged in order to fraudulently bill insurance carriers and collect illegal payouts. In New York State, a person injured in a motor vehicle accident is automatically covered by the Comprehensive Motor Vehicle Insurance Reparations Act, commonly referred to as the NoFault law.

No-Fault insurance carriers are required to provide reimbursement for a wide range of medical and health services for injuries related to car accidents, up to $50,000 per person. In addition to medical coverage, a victim in a motor vehicle accident may be eligible to recover money from an insurance carrier for a bodily injury lawsuit stemming from injuries resulting from the accident. According to court filings and admissions made by defendants at the time of plea, the defendants rented UHaul or Penske trucks and then intentionally drove them into cars operated by other participants. The accidents were organized by ringleader Guilberto Jean, who recruited the U-Haul and Penske drivers and the occupants of the second vehicle with promises of cash payments or lucrative personal injury settlements. After they staged the accidents, the defendants lied to the responding police officers and pretended that the accident had been real. After the “accidents,” the occupants of the cars struck by the U-Haul and Penske trucks were directed by Jean to seek treatment at Freeport Medical, P.C., located at 50 South Main Street in Freeport, NY or ZSA Medical Care, P.C., located at 71 South Central Avenue in Valley Stream, NY. At the clinics, the defendants filled out insurance forms that included false information about the accident and the defendants’ purported soft tissue injuries. Based on the fraudulent claims of injury, Freeport, ZSA and their associated providers billed insurance carriers over $30,000 for each accident, and over $150,000 in total. The Attorney General’s prosecution of this staged accident ring successfully concluded with the conviction of defendant Troy Russell, the driver of rental trucks in the December 19, 2010 and June 16, 2011 accidents. Russell pleaded guilty to one count of Grand Larceny in the Fourth Degree and two counts of Insurance Fraud in the Fourth Degree, Class “E” felonies, and was sentenced today by Justice William C. Donnino in Nassau County Court to 1 ¾ to 3 ½ years in prison and $7,500 restitution. In May 2016, ringleader Guilberto Jean, the organizer of the staged accidents, was convicted of three counts of Insurance Fraud in the Third Degree, a Class “D” felony and three counts of

24 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Grand Larceny in the Third Degree. Jean was sentenced to 6 months in jail, 5 years’ probation, $28,000 in restitution, and 300 hours of community service. In addition to Jean and Russell, seven other participants in the staged accident ring pleaded guilty to criminal charges. Larry Henley, driver of the U-Haul truck in the June 29, 2011 accident and a passenger in the June 16, 2011 accident, was convicted of Grand Larceny in the Third Degree Insurance Fraud in the Fourth Degree, and was sentenced to a 3-year conditional discharge and $10,000 restitution. Armand Lamorissiere, a participant in the October 30, 2010, December 19, 2010 and June 29, 2011 accidents, was convicted of three counts of Insurance Fraud in the Fourth Degree and sentenced to 3 years’ probation. Jahmari Monroe, the driver of the U-Haul truck in the October 30, 2010 accident, was convicted of Insurance Fraud in the Fifth Degree, a Class “A” misdemeanor, and sentenced to 2 years’ probation and 300 hours of community service.

Deja Mose, a passenger in the June 29, 2011 accident, was convicted of Insurance Fraud in the Fifth Degree and sentenced to a conditional discharge, 120 hours of community service and $3,500 restitution. Tashauna Frye, a passenger in the December 19, 2010 accident, was convicted of Insurance Fraud in the Fifth Degree, Falsifying Business Records in the Second Degree and Petit Larceny, Class “A” misdemeanors, and sentenced to a conditional discharge and 300 hours of community service. Alicia Holland, a passenger in the December 19, 2010 accident, was convicted of Insurance Fraud in the Fifth Degree, Petit Larceny, and Falsifying Business Records in the Second Degree and sentenced to a conditional discharge and $1,000 restitution. Christopher Hunter, who allowed his identity be to used in the June 29, 2011 accident, was convicted of Insurance Fraud in the Fifth Degree and sentenced to 150 hours of community service. The Attorney General thanked the National Insurance Crime Bureau, New See Accident Ring, Page 33


www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 25


NJ Auto Parts Company to Pay $75,000 to Settle Discrimination Allegations New Jersey Attorney General Christopher S. Porrino and the Division on Civil Rights announced that a New Jersey-based auto parts company has agreed to pay a Camden County man $55,000 to resolve allegations that it failed to hire him, despite his being qualified and experienced, because of his race and age. In addition to the money it will pay former delivery driver applicant Anthony Sturgis, who is AfricanAmerican and in his 50s, Continental Auto Parts will pay a total of another $20,000 to four other driver applicants who also were not hired by the company. The four men, each of whom was allegedly passed over because of their age, will receive $5,000 each. Under a settlement with the Division, Newark-based Continental also will be subject to State monitoring of its hiring practices for the next two years. The auto parts company operates multiple facilities in New Jersey, Ohio, Pennsylvania and New York. “This is a fair and just outcome, one that should serve to remind employers throughout New Jersey of something vitally important – that en-

suring equal opportunity in hiring is not only the right thing to do, it is the law,” said Acting Attorney General Porrino. “We are committed to upholding New Jersey’s Law Against Discrimination in all respects, and will hold accountable any employer who fails to comply with it.” The Division filed a three-count Superior Court Complaint against Continental in October 2015, charging that the company had committed multiple violations of the New Jersey Law Against Discrimination (LAD), including race-based discrimination, age-based discrimination and making unlawful pre-employment inquiries. Lindenwold resident Sturgis told Division investigators that a branch manager at Continental’s Mount Laurel location seemed enthusiastic when he spoke with Sturgis by telephone in November 2012 after Sturgis responded to an online employment ad posted by Continental. However, Sturgis told the Division, the same branch manager was markedly cooler when Sturgis arrived at the Mount Laurel site for his in-person interview the next day. In addition,

Sturgis told Division investigators, the branch manager asked him questions about his age and state of health during the in-person interview. Both questions are prohibited in such a context by the LAD. According to the Division’s Complaint, Sturgis responded to a “driver wanted” ad placed on Craigslist by Continental Auto Parts on Nov. 28, 2012. The Craigslist ad encouraged applicants to respond to Continental’s Mount Laurel facility, and Sturgis did so immediately, submitting his resume online. The resume indicated that he had obtained his Associate’s Degree in Criminal Justice, and had worked for many years as a delivery driver and in the security industry. Within an hour, Sturgis received a telephone call from Continental’s Mount Laurel branch manager. Sturgis alleged that, although the branch manager sounded interested in hiring him when they spoke by phone, his demeanor was markedly different the following day when Sturgis presented himself in person. Although Sturgis reported being told he would receive a follow-up call

to arrange a second interview after meeting with the Mount Laurel branch manager, no such interview materialized. Sturgis made several subsequent telephone calls to Continental, but was never again contacted by the company. (Continental has since closed the Mount Laurel facility and relocated its operations to a site in Pennsauken, Camden County.) During its investigation, the Division asked that Continental provide copies of all advertisements it had placed for delivery drivers. The company responded that it had never placed any such ads – including during the time Sturgis submitted his resume in November 2012. The Division subsequently subpoenaed Craigslist’s records, and documented that Continental had placed a help wanted ad for delivery drivers in November 2012. That ad was the one to which Sturgis responded. When confronted with documentation that Continental had in fact placed an ad for route drivers in November 2012, a company representative blamed the discrepancy on a “disconnect” between the Mount Lau-

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rel branch and human resources personnel at Continental’s headquarters. The Division investigation determined that, after interviewing and not hiring Sturgis at the end of 2012 – and not hiring at least four other qualified applicants with significant experience as professional drivers, who ranged in age from 43 to 61 – Continental continued to solicit driver applications for its Mount Laurel location. In early 2013, the company placed the same driver wanted ad that Sturgis had answered in 2012. Shortly after placing the ad, Continental hired two new delivery drivers – the first in March 2013, and the second in April 2013. Both new hires were considerably younger and less experienced than Sturgis and the four other applicants re-

ceiving settlement payouts under the agreement announced on November 22. “Our adult population is growing and projected to increase substantially,” said Division on Civil Rights Director Craig Sashihara. “For example, New Jersey ranks tenth in the nation in terms of the number of residents age 60 and older. Practical work experience should be valued, not held against an applicant. The promise of success through experience and hard work rings hollow if employers are making personnel decisions based on unfounded stereotypes about older workers.” In addition to its monetary terms, the settlement requires Continental to submit to monitoring by the Division

on Civil Rights for a period of two years. Specifically, Continental must report to the Division on a quarterly basis on non-managerial hiring practices at its Pennsauken facility, as well as at any additional facilities the company opens in New Jersey during the two-year period. (For purposes of the settlement, “non-managerial” hiring includes delivery drivers, sales staff, warehouse staff and other clerical and office positions.) The quarterly monitoring reports must include copies of any advertisement placed by Continental for employees or contractors, the number of applications received in response to each advertisement, the total number of applications received for each position,

and the total number of individuals hired for each position – including race, age and gender of the persons hired. Other non-monetary terms of the settlement include requirements that Continental: ● Review and revise its policies and procedures addressing discrimination and harassment in the workplace to ensure they comply with state and federal law. ● Provide training on state and federal anti-discrimination requirements – including avoidance of any unlawful inquiries during the hiring process – to all human resources personnel, managers, supervisors and other employees involved in hiring decisions in New Jersey. ● Refrain from inquiring as to the age or date of birth of any job applicant, and refrain from requiring a job applicant to supply any document that may contain the applicant’s age or date of birth as part of the employment screening process. (The company can, however, inquire as to an applicant’s date of birth or require documents that may contain the applicant’s age or date of birth only after a bona fide offer of employment has been made to the applicant.) ● Review and revise its policies concerning record retention. As part of its review, Continental must ensure that all business records are maintained in accordance with the time frame and other criteria required by law. The company also must train all employees involved in hiring decisions on its revised record retention policies. During the two-year monitoring period, the company must make available – upon request by the Division – any job applications and other materials retained during the hiring process. Continental Auto Parts was represented in the matter by attorney Elizabeth Daly of the firm Daly, Lamastra, Cunningham, Kirmser & Skinner. Deputy Attorney General James Michael, assigned to the Division of Law’s Civil Rights Section, and Division on Civil Rights Supervising Investigator John Beauchamp handled the Continental matter on behalf of the State.

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Continued from Cover

NE Labor Rates

a loss by the shop, or tested in court battles as a reasonable cost. Other impacted divisions have yet to report any significant changes in labor rates. According to Kizenberger, “We realize that labor rates are not governed or set by the state; however, State Farm has conducted their own survey for many years which resulted in a rate still far below an acceptable rate, but manageable, on average vehicles. The prior rates they were paying their policyholders was at least a starting point. With the new rate structure instituted by State Farm, they admit to ignoring their own survey results and moreover, to my knowledge, have not notified their policyholders of the rate changes. Consumers in NYS do not have to get their vehicles repaired to receive payment from their insurance companies, so a policyholder filing a claim after the changes is getting a smaller recovery because State Farm has chosen to ignore their own survey findings.” Angelo Palakis of Dale-Way Auto Body Center, in the Riverdale area of the Bronx, said, “As of Dec. 5th, State Farm dropped the body labor rates in our area from $65.00 to $51.00, the frame labor rates from $75.00 to $52.00 and the paint materials from accepting Mitchell paint material calculator to paying $29.00 per paint hour. We were not aware of this till they appraised a car later that week. “About two years ago State Farm brought up the body labor rate from $55.00 to $60.00 and approximately two months after that they brought it up to $65.00 and frame $75.00, before these increases there labor rate since probably 2005 was body $55.00 and frame $60.00. State Farm has been paying paint materials using Mitchell calculator well before 2005. We haven’t seen labor rates and materials allowances this low from State Farm in more than 10 years which is unacceptable. “We are currently talking with the Auto Body Associations in our area to see what form of action we can take against these reductions from State Farm. One of their appraisers told me that they are no longer conducting their annual labor rate survey but instead are averaging out the labor rates that other insurers pay.”

Collision repair industry advocates fear State Farm’s decision could result in changes from other carriers trying to stay competitive, and they also fear that State Farm and other insurers may implement similar attempts to lower labor rates in other parts of the country as well. While State Farm has been “somewhat close in basic field estimates” in past estimating, Kizenberger worries that the insurer seems to be “looking at some alternative reality. Now, we’re going to have inaccurate dollars, and collision repairers are not about to go backward, for crying out loud!” Ironically, these changes come after a long-awaited labor rate increase from State Farm just a year ago. In a statement, Tomczak declined to address whether policyholders will see lowered premiums due to the reduced cost of repairs, yet he said, “A vibrant, profitable auto collision repair industry is in the interest of State Farm. At the same time, we are advocates on behalf of our customers for reasonable repair costs. We believe repairer profitability and quality auto repairs that are reasonably priced can both be achieved. This change in our labor rates brings us more closely into alignment with the actual cost of vehicle repairs and is in the best interest of our customers.” Those who are unwilling to accept State Farm’s rate decision may be able to pursue a “reasonable” charge in court, but State Farm does not have to battle over reasonableness at all in NJ based on a state law which allows the insurance company to have a customer’s vehicle repaired at any nearby facility they choose at the price they want, though it makes the insurer responsible for the quality of the shop’s repair. Many impacted shop owners have reacted negatively to the labor rate changes, suggesting a variety of approaches to the problem, including billing the customer and engaging in legal battles for fair rates. Mike Orso, President of the New York State Auto Collision Technicians Association (NYSACTA), sees this as a more widespread concern, stating “We are very disappointed that State Farm has taken this illogical action to reduce labor rate allowances and limit paint materials, refusing to use a recognized paint calculator guide in parts of NY and NJ. Our concern is that other insurers are watching and will follow State Farm’s lead, if only to

28 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

avoid subrogation conflicts. Auto body labor rate allowances are, without a doubt, controlled and suppressed. NY in particular has additional costs, such as higher taxes, higher utility costs, rent and environmental controls that other areas just don’t have. Auto body labor allowances are already suppressed by the monopsony (the ability to control the market by sheer size and financial size) power insurers wield, industrywide. The controlled/suppressed rates, which they call the “prevailing rates,” are well below mechanical rates. Mechanical shops and dealers I speak to admit that a body shop’s operational costs are three times that of any mechanical shop. Some are discouraged and quitting auto body operations. They are hard-pressed to find techs when faced with, as they put it, ‘irrecoverable soft and hard costs in an unsustainable marketplace.’ They are unwilling to obtain Certification or retool without a sustainable return on the investment, and we all are struggling to find techs that want do the work.” Expressing concern that shops will disregard OEM recommended procedures to reduce costs which could result in unsafe vehicles being returned to the road, Orso said “Some

Insurance Companies, such as State Farm are spewing or spinning ‘control’ as an added service to their consumers for the ‘greater good of consumers.’ The goal: keep shops in line while keeping repair costs low. Translation: Control those nasty-greedy body shops so insurer profits are stable. As I look at the list of misdeeds by State Farm, it’s the insurance company who appears to need oversight and control. State Farm’s latest action is an insult to every body shop. That insult grows to a fever pitch for those who have invested in the latest round of training, technology and equipment. It does a disservice to State Farm insured’s by limiting repair options to the lowest cost provider that may or may not be qualified to repair today’s vehicles. Refusal to allow use of the paint guide violates part of the NYS Insurance Regulation 64. In my opinion, body shops are being made to be the scapegoat, drawing attention away from the 300 pound Gorilla in the room. We are not fooled that the easiest entity to short change in order to recover the losses they face are the body shops.” State Farm’s decision should also raise concerns amongst consumers. See NE Labor Rates, Page 30

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Larry Montanez Plays Devil’s Advocate on NE Labor Rates, Citing Consumer Contract and Lack of Complaints Regarding Other Insurers

by Chasidy Rae Sisk

Many collision repair industry professionals have taken up arms in reaction to State Farm’s decision to lower labor rates in parts of NJ and NY, but amidst the outrage, a very recognizable voice is strangely absent. Industry advocate Larry Montanez of P & L Consultants has taken a contrarian stance on this situation as he appeals to the industry to consider what he thinks is a more logical approach. Montanez says, “State Farm is lowering labor rates to what they consider to be a reasonable amount based on what they say is their market research. Conversely, they did originally claim that their extensive market rate survey is what placed their labor rate at $65, and now a bunch of shops are crying foul as State Farm decreased their labor rate from $65 per hour to $50 per hour, because that’s what other insurance companies pay shops for the same work, but the shop’s contract is with the consumer, not the insurer. State Farm is a third party that has no control over what the body shop charges as a rate.” “It’s a nothing story,” Montanez insists, reminding shops, “You are supposed to charge your posted rate, and if you’re doing that, you are probably already suing all the other insurance companies for their suppressed labor rates and unwillingness to pay anyway so there’s no difference in what State Farm is doing.” One big question Montanez asks is “How can you (any shop) complain about State Farm reducing their labor rate if you aren’t upset enough to sue other insurers for the same thing? It makes no sense, and a jury is not going to find in your favor—unless you’ve been suing for suppressed labor rates, you’ve got no leg to stand on!” Many of the shops that Montanez consults with charge their customers their posted rates which can

range from $75 to $175 per hour for labor, depending on the type of operation, so this has no impact on how they do business. “State Farm has decided they belong at the same rate as everyone else is accepting. Basically, they gave many shops a gift by paying $65 an hour, but according to some financial experts for repair professionals, it was still short, and now almost everyone is whining that they took the gift away. We as an industry need to condemn them all for doing the same things, not just complain about one, or it is smarter to keep our mouths shut so we don’t sound foolish!” Although Montanez may be the most forceful voice behind this logic, he is not the only industry professional who noticed that State Farm’s decision can be at least partially blamed on the shops themselves. When one industry publication printed this story online, there were a handful of people who pointed out the invalidity of their peers’ outrage. Names referenced are screen names. Ernie wrote, “I don’t pay attention to the pigeonholes insurance companies try to force us into. I’ll use estimating platforms to estimate but not to invoice. My bill is an accurate invoice for what is owed. I don’t care how the insurance company has to reinterpret my invoice—I just focus on the bottom line... More often than not, State Farm will pay as long as you are doing what you are invoicing for.” Matertech noted, “I see the problem as the shops themselves unfortunately. I don’t think they should complain about a decrease when they had already been accepting less ($16 per hour less) from other insurers. You have to know that State Farm would figure that out through subjugation and data mining the shop’s own estimating data.” Pete Suszczynski agreed, “Not

Gerber Collision & Glass Opens Repair Locations in FL

Gerber Collision & Glass has announced the December 6, 2016 opening of three collision repair centers in Florida. The centers are located in

Crestview, Fort Walton Beach, and Panama City Beach and previously operated as Factory Spec Collision Centers.

“These centers are great additions to our portfolio, as they strengthen our presence in the northwest region of Florida and complement our locations in Tallahassee and the New Orleans area,” said Tim O’Day, president and COO of Gerber Collision & Glass. “We have established a leadership position in collision repair in Florida and intend to build on this to best serve our insurance partners and ensure the Gerber brand of professional and friendly service is available throughout Florida.”

30 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

playing devil’s advocate, but the same shops are repairing vehicles happily at GEICO and other insurance companies’ labor rates which is what State Farm dropped to. Maybe it’s the repairers’ fault as well.” Montanez believes, “They’re arguing the wrong thing! Why weren’t these shops suing other insurance companies for paying less than State Farm? Now, they’re crying because they lost a more reasonable rate from one company that they didn’t hold others to. Now, they have to work hard to obtain what is needed to operate their businesses instead of working smart by holding everyone accountable. They need to handle this the right way, but they don’t actually want to make a difference. If you will accept what the other insurance companies will give you, how can you complain about State Farm paying the same? This industry needs to step up and fight against all insurance companies who aren’t paying fair labor rates, or just suck it up and do what the insurance companies want! The problem is that most shops do not know what their hourly operating costs are or what a technician costs them per hour to work at their shop.”

Continued from Page 28

NE Labor Rates

“The average consumer has no chance at an insurer playing fair with them. The average consumer has no chance at a fair result.” Orso continued, “State Farm customers should be paying attention and talking to an independent agent because this company’s philosophy should be a big concern to every policyholder. Widespread cancellations need to happen. Maybe that’s what they want: to lessen exposure.” This battle is just beginning, but industry advocates are still determining the best course of action. Charles Bryant, Executive Director of AASP/ NJ, promised association members, “The AASP/NJ will not sit back and allow this type of beaten abuse to be inflicted on our members. We are working diligently to determine the best avenue to address this issue.”

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32 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com


Continued from Cover

Car Vandalized

“I served 14 years. We’re U.S. citizens and we didn’t expect this to happen in our backyard,” said Jorge Santiago of West Springfield, who is an Army veteran. Santiago said that they’re the only minority family on their quiet street. He said that his wife didn’t post about the vandalism on Facebook for attention. “She posted it just so people could be aware of it,” Santiago explained. However, the family got a little more than that. “We’re gonna make his world a little different here,” said Joe Houghton, owner of Maaco, an auto body shop in West Springfield. Houghton saw the story on Western Mass News and decided he had to help. Maaco is taking care of Santiago’s car for him and gave him a tour of the shop on Monday, November 21. Then things sped up. “We’re gonna get you into a rental car from Enterprise right now.

You’re good with that, right? We’re not moving too fast?” Houghton explained. Manny Guzman from Maaco added, “It’s very near and dear to our hearts. Veterans are very important to us, especially when they’re a part of our community, so I contacted Western Mass News.” Guzman asked to get in contact with Santiago to set the whole thing up. “So I reached out and set up this meeting, just so we can let them know they’re welcome here. We love having them as a part of our community,” Guzman explained. Santiago added, “When you guys called my wife on Saturday, she started crying; I got teary-eyed, even here, and that’s just what it is. We’re thankful to them for helping us.” Santiago noted that since this happened last week, he has set up lights and cameras around his house and driveway, comparing it to a football stadium. The family has also contacted police, who are investigating, while Santiago and his wife work to comfort their worried children. We thank Western Mass News

Continued from Page 24

Accident Ring

York State Department of Financial Services, New York State Department of Financial Services, the Nassau County Police Department, the Suffolk County Police Department, U-Haul International, Inc., Penske Truck Leasing Company, RepWest Insurance Company, Gallagher Bassett Services, Inc., Allstate Insurance Company, GMAC Insurance Company, 21st Century Insurance Company and Gary Armstrong of GDA Investigations Inc. for their valuable assistance in this investigation. This case was prosecuted by Assistant Attorneys General Irwin Weiss and Timothy McNutt of the Auto In-

surance Fraud Unit of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau, with the assistance of Supervising Legal Analyst Paul Strocko and Legal Analyst Brandon Shapiro. The Auto Insurance Fraud Unit is led by Joseph G. D’Arrigo. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton. The Attorney General’s investigation was conducted by Investigator Adrian Klapper, under the direction of Supervising Investigators Edward Keegan and Natalie Shifrin and Deputy Chief Leonard D’Alessandro. The Investigations Bureau is led by Chief Dominick Zarrella. We thank LongIsland.com for reprint permission.

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GM Looks to Build Ranks of Cadillac Aluminum Repair Network by Tomas Andersson, GM Repair Insights

Memberships in OEM repair networks are hot commodities in today’s collision market. Joining one for many high-end vehicles can prove daunting since spaces typically are limited. Many networks set limits to ensure market share for its select group of members. If that’s cutting into your growth plans, it’s time to look into the Cadillac Aluminum Repair Network. Joining doesn’t require a dealer sponsor. Interested shops need only go to www.genuinegmparts.com, click the For Professionals tab and select Cadillac Aluminum Repair Network. The site contains the Body Shop Participation Agreement, along with a number of other resources describing requirements for the program, including the Network Program Manual, a tools and equipment list, and training and marketing materials. It’s easy to compare to other OEM’s requirements “It also provides a tools and equipment matrix to help shops compare requirements to other

OEMs aluminum repair programs. This makes it easier for shops to determine what, if any, additional investments it will take to join the Cadillac repair network,” says Rachel Rodriguez, GM Wholesale Channel Associate. Like most others, Cadillac’s network requires a dedicated repair area and training. Shops must be either ICAR Gold or VeriFacts VQ and complete the following courses:

● Two Cadillac specific classes— 20W1 GM Body Structural Fastening Systems and 20W2 GM Body Structural Fastening Systems 2.

● Three I-CAR classes—WCA 03 Aluminum Welding, ALI 01 Aluminum – Intensive Vehicle Repairs and APR 01 Aluminum Exterior Panel Repair and Replacement.

Rodriguez says, “depending on the existing resources a shop brings to the table, qualifying for the network can require little more than an audit or a more significant investment in time and equipment/tools, with full certifi-

MI OKs Operation of Autonomous Vehicles on Public Roads, Previously Only Testing Allowed Gov. Rick Snyder has signed legislation that aims to put Michigan at the forefront for autonomous technology, testing and deployment for self-driving cars. Proponents say the laws are important for the state’s economic development and talent retention, according to news releases and reports in the Detroit News.

MI Gov. Rick Snyder signs package of legislation. Credit: Governor’s office

The new law clears the way for the public to use self-driving cars when they are available, and allows self-driving vehicles without steering wheels or pedals to be tested on public roads. Previously, only testing of the vehicles by manufacturers was permitted. The bill also allows automated vehicle platoons and on-demand autonomous vehicle

networks to operate on roads throughout the state. Previously, only testing of vehicles was permitted. The result should include more autonomous vehicles taking to Michigan roadways and quickening development of the technology State leaders say will make roads safer and cut down on accidents. “Michigan put the world on wheels and now we are leading the way in transforming the auto industry,” Snyder said. “We are becoming the mobility industry, shaped around technology that makes us more aware and safer as we’re driving. By recognizing that and aligning our state’s policies as new technology is developed, we will continue as the leader the rest of the world sees as its biggest competition.” Snyder signed the package of bills that will allow the public to buy and use fully self-driving cars when they are available at the Automotive Hall of Fame in Dearborn. The laws would allow ride-sharing services without drivers to be operated by auto manufacturers or by ride-hailing services such as Lyft or Uber.

34 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

cation usually taking 1-3 months.” She notes too that, “the Cadillac Network differs from similar programs since the auditor actually walks the shop’s aluminum repair technician through the network’s repair steps and processes.” Rodriguez continues, “Cadillac eventually hopes to have 100-150 shops in the network, which currently services a single vehicle, the CT6.” Investing in an OEM certification aimed at a single specialty model might seem like a waste of resources, but repairers like Jerry McNee, owner of Ultimate Collision Repair in Edison, New Jersey, are quick to counter that shops need to look at a larger picture.

A Believer in certification McNee’s business already possessed 12 other OEM certifications when he joined the Cadillac program. Following the shop’s business philosophy, adding one more just made sense. “If we’re going to be the best, we have to do the best work, and that means repairing everything,” says McNee. “Certifications are the way to go

in this business,” he adds. McNee’s shop has been GM certified for two years and added the Cadillac Aluminum Repair Network earlier this year. He believes the rest of the industry will benefit from following a similar path. The collision market increasingly demands shops repair across the automotive spectrum and under a full range of OEM certifications. “You used to see mom and pop hardware stores, but they’ve been replaced by big box stores like Home Depot that sell everything,” McNee explains. “We’re seeing something similar in our industry. It’s simple evolution.” “I’ve been in the industry for 40 years, and if I want to be around another 10-15 years, I have to evolve as well,” he says. In an ever-changing, highly competitive environment, shops need every advantage they can get. The Cadillac Aluminum Repair Network is there to help repairers win the race for survival.

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SEMA Show Goes On

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

Valspar’s SEMA Highlights Include Celebrities and Amazing Vehicles with Ed Attanasio

Every November when SEMA rolls around, all of the paint companies step up in a big way to shine for four days and Valspar Automotive surely did exactly that at this year’s Show in Las Vegas. Among all of the fanfare and frenetic activity, Valspar Automotive was in to win it this year as they represented all of their other brands, including Matrix Automotive Finishes, Prospray Finishes and DeBeer Refinish. It was all about amazing vehicles, new product announcements and celebrity appearances at 2016 SEMA for Valspar Automotive. The company hosted the stars of two reality TV

now for about two years and the product is exceptional. We get dead-on color matches and the cars come out looking great. Just look at some of the vehicles right here in the Valspar Automotive booth and you can see what I am talking about.’ Featured vehicles in Valspar Automotive’s booth and in other locations at SEMA showcased the global leader’s coatings, including an original True Blue Pearl on a 1967 Mustang Fastback from the Matrix Automotive Finishes line; A 1966 Ford Fairlane GTA by Tony Lanesky of Anton’s Hot Rod Shop of Cleveland, OH from the DeBeer Refinish line; a 1978 Pontiac Trans Am in Prospray Finishes by John Wargo of The Custom Shop in Flanagan, IL as well as a custom trike in Matrix colors from Las Vegas’ notorious Count’s Kustoms and History’s Counting Cars. Owned by John Wargo and his wife Kim, The Custom Shop has featured many vehiTony Lanesky of Anton’s Hot Rod Shop of Cleveland, OH cles at SEMA in the past. Start(left) and Valspar Automotive Regional Sales Manager ing in the 1990s, the Wargo Ken Papich pose in front of this 1966 Ford Fairlane GTA family began showing their that Lanesky built spectacular custom builds and shows—Counting Cars on History and quickly became a huge name in the inThe Discovery Channel’s Gas Monkey dustry. In 2001, SEMA awarded The Garage—and also displayed a series of Custom Shop the Meguiar’s Shine breathtaking vehicles that attracted Award, and in 2008 they captured the crowds to their booth during the entire Best Truck award. Both of those show. award-winning vehicles were painted Show attendees who visited Valspar in Prospray Finishes, a Valspar AutoAutomotive’s booth on November 3 got motive brand. to meet Richard Rawlings of Gas Wargo has been using Prospray for Monkey Garage and the entire paint many years, he said, and that’s why he crew that works for Danny ‘the Count’ was so happy to have a car at Valspar Koker in his Count’s Kustoms refinishAutomotive’s booth this year. ‘Prospray ing shop, including Lonny Speer, Ryan is a perfect paint for what we try to Evans and ‘Horny’ Mike Henry. achieve with every build for customers Rawlings and the Count’s crew autoall over the country,’ he said. ‘We rely graphed limited-edition posters, signed on it for great finishes and the product cards and took pictures with fans. has never failed us.’ Wargo’s 1977 After meeting Rawlings and get- Trans Am used only Prospray colors, ting an autograph, Mark Watson a including Ruby Red (M7-27700), Myspainter for a collision center in Ohio tical Pearl (FX-708), Wilderness Candy was gushing about the reality star and (UC-03) and Spectra Flair (SF-1-18). how much he loves spraying Valspar’s Three additional vehicles repreproducts. sented Valspar Automotive and its ‘This is quite a thrill to finally brands, including a 1958 Plymouth meet Richard Rawlings, because I Belvedere in Prospray Finishes by have been watching his show forever,’ Wargo; a 1967 Ford Mustang in MaWatson said.’I have been using Valspar trix Automotive Finishes by Brandon

36 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Knowles of Brand-X-Customs in Everett, WA; and a 1947 Ford Pickup in Valspar Automotive Refinish by Bo Vescio of Vescio Customizing and Restoration in Minneapolis, MN.

vada and Oregon. As a SEMA veteran, Papich discussed the show and all of the brands Valspar Automotive carries. ‘SEMA allows us to wave our flag and showcase all of our brands,’ Papich said. ‘All of our products have their own niches and each scenario is different. One shop may prefer one of our low VOC products, depending on their location, for instance. We offer something for everyone and focus on things like versatility and, of course, quality.’ Valspar Automotive succeeds because they help their customers to be better operaThis stunning 1977 Pontiac Trans Am was painted using tors while saving money via Prospray Finishes by John Wargo of The Custom Shop in less product usage. ‘We proFlanagan, IL vide training and support that is world-class and we pride ourselves Valspar Automotive Regional Sales Manager Ken Papich knows a lot about on that. We have more people out on the collision repair industry in the West, the street visiting shops and helping especially in the three states where he them to save money by using less product.’ manages a sales force–California, Ne-


www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 37


H ONDA C ONN ECT I CUT

Lia Honda of Enfield E n fie l d

800-221-3131 860-741-3401 Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com

Schaller Honda N ew Br i tai n

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Prime Honda Saco

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Please contact these dealers for your Honda or Acura Genuine parts needs. MA R Y LAND

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 39


Day Job/Night Job Former Metal Technician Lands Dream Job with his Animal Art with Ed Attanasio

Body technicians often collect items while on the job, but most of them end up in their home garages where they languish forever. But what if one of them took these objects and used them to create amazing art that received accolades by art lovers and critics nationwide?

Known for his fish metal sculptures, Miller has also created other animals, like this ram’s head

then, I could hustle and make a lot of money, well before DRPs existed, because it was 100% flat rate. But over the years, the body shops in the Bay Area started paying salaries while costs kept rising in northern California.” Several years ago, Miller moved to Southwest Missouri, where he could purchase a large house on three acres while still working in the collision industry. During this entire time, he was doing his art, a passion he discovered while attending high school in Sunnyvale, CA. “I was throwing pottery and doing a ton of artwork while in school,” he said. “Then, as a senior, I started working at a local body shop and the art kind of faded into the background. Fixing cars is artistic in many ways, so I always have been looking at different shapes and forms that techs run into every day on the job. Eventually, I decided to make some sculptures from items I found while repairing vehicles.” One of his first pieces was for his mother, where Miller took an old can and cut it until it looked like a rose. He then painted it red, and people who saw it were immediately impressed. “I took some old metal and made it into something that looked like it was alive and the feedback was great,” he said. “That planted the seed, and then several years later, I started doing my fish sculptures, but I was always thinking about it and planning the pieces in my mind.”

A former metal technician, Gary Miller, 54, has done exactly that. By using things he finds during the course of any normal day at a body shop— small car parts, broken or tired tools, gears, housings, armatures, motors, windshield wiper motors, copper, chrome, aluminum, steel, etc. Miller has been able to create some amazing sculptures. Where most people think trash, Miller thinks art. Creating a menagerie of animals that Dr. Doolittle would be proud of, Miller has created a wide range of fish, insects, rams and other creatures that wow people and make them The fish that Miller is now creating for Bass Pro Shops are more realistic, but still just as impressive happy. A body tech for 37 years, Miller Why fish for his sculptures, we started in the industry at age 17, when asked Miller? “I have always been a he began learning the business from the wilderness guy, backpacking in ground floor. “I started out like other Yosemite and spending weeks at a teenagers, sweeping floors and absorbtime out there,” he said. “I have also ing as much as I possibly could,” been an avid fisherman for decades, Miller explained. “After 5-6 years, I fly fishing for river trout all the way to was doing a ton of combo work that deep sea fishing too. So, it was just a was all strictly collision repair. Back natural progression for me to use ani-

40 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

mals as subjects for my sculptures, because they are beautiful creatures and my goal is to capture that beauty in my work.”

for many years, I know how to cut the metal, weld, paint and shape these creations. At first, I was just doing them for friends, mostly for Christmas gifts.

A salmon made of parts found in a body shop has received amazing reviews for Gary Miller, a former metal technician who has found a second career with his art

For the past 37 years, Miller has been plucking things from the body shops he has worked for and accumulating a lot of objects that no one else could even remotely consider them artful. “I knew that I had all of the skills to turn these parts into sculptures,” Miller said. “By doing my combination work

A few years ago, I made a salmon for my brother mostly out of nuts and bolts. Most of the parts that I used were from things I found, but I also had to fabricate a few to bring it all together.” Miller’s fish sculptures require a See Animal Art, Page 42

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 41


Shop Strategies The Power of Peer Groups: Surviving in a Consolidated Market with Stacey Phillips

When it comes to the power of peer groups, Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, is certainly a great resource on the subject. The president of ASA Colorado’s collision division said that joining an association and/or advisory council offers many benefits for shop owners. Dan literally grew up in the auto body business. As a young boy, he recalls sweeping floors in his grandfather’s body shop in Englewood, Colorado. His two uncles also owned body shops and his father was repairing cars out of his home garage. Sometimes, 20 BMWs would be lined up in front of the house waiting to be repaired. After working with another shop owner for a brief time, his father Jerry opened his own shop in February 1983—Jerry Stander’s Auto Body—with the help of his mother Bernie. Except for a few side jobs, Dan has always worked at his parent’s body Continued from Page 40

Animal Art

lot of time to make, and he eventually wants to take his art to another level. “My goal is to set up a studio and produce more of them,” Miller said. “Each piece is like a huge puzzle and

Miller also creates insects, including this praying mantis made primarily out of old tools

I never want to force it. I lay out the parts, but I always carefully look at them before I start welding. They take an average of 30 to 40 hours each to complete, so to take it from a hobby to a profession would be a big step.”

shop. In 2006, the independent facility became part of the Fix Auto network and now draws on the support of 437 collision repair franchises. Dan is currently the operations manager at the

Dan Stander, operations manager of Fix Auto Highlands Ranch and president of ASA Colorado’s collision division

family-run business, which includes 15 employees, including Bernie who focuses on the accounting, bookkeeping, training and administrative duties. His father comes in every day working on car restoration, soap box derby, mainMonetizing his artwork got a huge boost when Miller was recently hired by Bass Pro Shops at their headquarters in Springfield, MO, as a metal technician to build retail displays and other metal items for the company’s 90 North American locations. It’s a dream job, and soon his fish sculptures will likely play a role in his new job, he said. “I fabricate things like retail racks, special railings and I am also doing a series of more realistic-looking fish for Bass Pro Shops. They hired me in September, so I am still learning and growing in this position.” With his new career as an artist and a metal technician for Bass Pro Shops, does that mean collision repair is now in Miller’s rear view mirror? “Absolutely,” he said. “I never have to do collision repair ever again, unless I want to. Yes, I still have deadlines in this job, but they’re not as crazy as the ones I encountered in the body shops I have worked for. I want to use my creativity now in different ways. In collision repair, you return cars back to their previous condition, but in this role, I am creating things from scratch, and that is why I love it!”

42 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

tenance on the building and even some gunsmithing.

Can you tell us about the enQ: couragement and support your parents have provided?

My parents were really involved A: in the industry, ASA, education and training. They encouraged us to

surround ourselves with people who would assist us, give us ideas, train us and help us do a better job faster, versus reinventing the wheel. Many times, people have a hard time asking for help. The philosophy that my parents shared with me is that it’s ok to ask for help. My father and I get along really well and we have a very similar vision about running the company. However, we often look at things from different angles because of our generational differences. It’s old school versus new school—training from the past versus

today’s training. He has instilled in me the right way. My father has completed a lot of industry training, including being I-CAR Platinum. At times, with my industry involvement I have learned about new OEM repair requirements that are ahead of other training we have all taken in the past. As we know, times change, cars are changing and repair procedures are changing dramatically. We cannot always repair cars the same way we did even five years ago.

Can you tell us how you beQ: came involved in ASA and the importance of joining an association?

I joined ASA Colorado in 2004. A: I had created a flyer to explain an industry refinish problem. Zone re-

finish, base coat reduction and partial panel refinish have been hot industry topics for many years. It is a double See Power of Peer Groups, Page 44

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Continued from Page 42

Power of Peer Groups

win for insurance companies and a double loss for auto body shops. Paint

Fix Auto Highlands Ranch in Littleton, CO

labor and paint material reductions done with a simple one line adjustment are more prevalent in some markets than others. I wanted an easy way for shops to explain to insurance adjusters and even their internal shop staff all of the additional labor and materials involved in a repaired panel versus a new panel versus a blend panel. Everyone told me that the flyers wouldn’t make a difference, but I handed them out anyway. Soon, they spread across the country. I was hoping that it would help

the industry. The flyer was well received and I decided to join ASA’s collision operations committee in 2005 to help get the word out even more. When I became more involved in ASA on the national level, I began learning from the great ASA staff, industry partners, vendors and veterans such as Darrel Amberson, Mike Anderson, Dan Bailey, Scott Benavidez, Jerry Burns, April Hernandez, Ron Nagy and Roy Schnepper. They are great people and have now become friends. I have learned how to deal with many different situations after hearing about their experiences. I have also been part of the operations committee and government affairs committee with ASA national. Again, the power of learning from others. What is your involvement at the Q: local level with ASA Colorado? Currently, I am the president of A: ASA Colorado’s collision division. ASA Colorado is very strong on

the mechanical side. I’m usually one of

44 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

the only collision guys who shows up at the meetings. There are a lot of collision-related mechanical issues we have to deal with at the shop. Granted, we don’t do maintenance, but there are a lot of different repair matters to learn from the mechanical folks at ASA Colorado that I apply to our business. The issues ASA Colorado is currently focusing on include promoting hands-on training and finding ways to help the industry to hopefully do a better job on the vehicles and for the consumers.

solidators are coming into the markets and taking a huge market share, buying up shops and building new shops. Some shops think that they can’t stay in business with those darn consolidators coming in. That is totally wrong. There are a ton of opportunities created by consolidation. Part of the opportunity is really knowing what is going on in the market with consolidation.

place?

for us and we struggled with it. I talked to people who said it wasn’t the right decision and others who said it was. I think it depends on a shop’s own situation, what their issues are, the market trends and do they have a lot of consolidation in their area. For us, we realized that we have a lot of consolidation around us. The Denver Metro area was the first to have the Big Four in our market—ABRA, Caliber, Gerber and Service King. I think in order for our shop to survive, we have to play the game a lot differently be-

As an independent shop, how Q: has your business been able to survive with the consolidation taking

I remember when ABRA moved into town (approximately 20 A: years ago). In Colorado, the market

was very pro-independent and nobody gave them much thought. But as we know now, they were and still are a game-changer. I don’t think there’s anything spectacular or different about what ABRA and the other consolidators are doing inside their shops. It’s what they are doing outside their shops. These con-

What prompted the decision to Q: become part of Fix Auto? During this time, Fix Auto A: reached out to us to become a member. It was a really hard decision


cause of the competition. Times change and they are continuously changing us. We became part of Fix Auto about a decade ago and have found that it was the right decision for us. The company offers great information about what is going on in the industry. It’s not always positive and I think that it is tough for a lot of people to hear. However, I think it helps us stay a little ahead of the curve to help make decisions that are part of the future versus being several years behind and then having to catch up. As an independent owner with the corporate structure of Fix Auto, I think we can love our employees and love our consumers more, while running a successful business.

Q:

What is the benefit of getting involved in the industry and how can it help your business?

I always encourage shops to get A: involved with associations, advisory councils and networking oppor-

tunities. Whether it’s getting involved with ASA, CIC or SCRS, I think industry associations are key and help you learn what’s going on. I also rec-

ommend joining an advisory council. I’ve worked with various advisory councils over the years such as NACE and Fix Auto, and I found that it gives you the opportunity to learn from others in the industry. Twenty Groups offered through paint companies and other vendors also help you stay educated and up-to-date about new developments. All of these offer the best networking opportunities money cannot buy. Read more about Dan Stander’s story and how independent shops can survive in an environment of consolidation in The Secrets of America’s Greatest Body Shops, written by Dave Luehr with Stacey Phillips, scheduled to be released in early 2017.

For more information, visit www .bodyshopsecrets.com or email dluehr @bodyshopsecrets.com/sphillips@ bodyshopsecrets.com.

www.autobodynews.com CHECK IT OUT!

Hyundai Selects OEC for Collision Parts Ordering and Fulfillment

OEConnection LLC (OEC), the parts ecommerce technology leader for original equipment manufacturers’ (OEM) distribution networks, announced today that Hyundai Motor America has added CollisionLink to its Hyundai Go Genuine Collision Conquest program.

crease their OE part sales while also improving order processing efficiency and customer satisfaction.” Hyundai represents the twentysecond automotive dealer network in North America to use CollisionLink to facilitate their parts marketing program. With the addition of

The CollisionLink parts ordering and fulfillment solution will allow Hyundai’s network of dealers to access competitive pricing on eligible OE parts and expand their market penetration in the U.S. By the end of the first quarter, 2017, Hyundai dealers will have access to the Hyundai Go Genuine Collision Conquest program via CollisionLink. “We are excited to bring Hyundai on board and to assist with the Hyundai Go Genuine Collision Conquest program,” said Bill Lopez, OEC vice president & general manager, Collision. “With our CollisionLink solution, Hyundai dealers can compete more effectively and in-

Hyundai, 99% of all consumer vehicles on the road in the U.S. are now supported by CollisionLink, and OEM parts marketing programs managed through CollisionLink now cover 3 out of every 4 U.S. consumer vehicles on the road. “CollisionLink is the missing puzzle piece. It will give us more complete coverage in the market,” said Frank Ferrara, executive vice president, Customer Satisfaction, Hyundai Motor America. “It will allow our dealers to offer their customers more competitive pricing and sell more Hyundai OE parts.” For more information, visit www .oeconnection.com.

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 45


California’s College of Alameda Dominates EB-CAA’s Model Truck Competition Again by Ed Attanasio

It is very hard for a team to win anything three years in a row. Just ask the 2002 LA Lakers, the last pro franchise to achieve it. To be at the highest level for three straight years is not easy, but the College of Alameda’s automotive tech department did exactly that by capturing first place for the third time in succession. This feat is even more impressive when you discover that the school also took the #1 runners-up award in this competition for the second straight year as well. It all took place at the California Autobody Associations’ East Bay Chapter’s (EB-CAA) 18th Annual and Final Toys for Tots/Model Truck Competition, where 130 people came out to support auto tech students from five Bay Area schools.

The College of Alameda wowed the crowd was this show-stealing extra long hauler, with a dune buggy-style car onboard

ing trucks,” Silva said. “These students are so imaginative and their work on these trucks has been amazing every

Another big part of the evening cited about these projects and winning was when the EB-CAA presented the makes it even better,” he said. “We alfive competing educational institutions ways bring eight students and two inmoney for their auto repair structors to the Toys for Tots/Model programs, derived from the Truck Competition every year and it’s sales of each customized truck always a fun evening. Watching as the and other fundraising events students work as a team to create someheld all year long. This year, thing impressive is a big deal for us and The College of Alameda, for the school.” Contra Costa College, TriValley ROP, Mission Valley ROP and Eden Area ROP all received $1,000 checks. The highlight of the evening The College of Alameda swept both first and second place awards at the 18th Annual and Final Toys for Tots/Model is always seeing the students Truck Competition where 130 people came out to support and networking with them, acContra Costa College took third place with auto tech students from five Bay Area schools this fish tank truck, with working lights cording to Silva. “We love foand a live fish year, so we are confident that we can cusing on the students, because they are find something new for them to use our technicians of tomorrow. It is always Peter Ha, the evening paint and retheir skills and creativity on whatever exhilarating to see the auto tech students finish instructor at College of Alameda we find.” competing against the other schools. and his classes work year-round to The room was filled with excite- They don’t get class credit for these build winning toy trucks, he explained. ment and enthusiasm as the student’s trucks, so they have to work on them ei“We go to Salvation Army stores, hobby truck creations were displayed. The ther before or after class, so it means a stores and even flea markets to find attendees all brought toys and two lot to them and for us as well.” things like wheels and other items for Marines were in attendance to collect Bill Andrews, the head instructor these trucks. The truck my class did this the toys as the chapter went over-the- at College of Alameda sees great value year was almost completely fabricated top to create a holiday atmosphere in in competitions like these and looks forfrom scratch, but we did retain some of the room. ward to its new reincarnation hopefully the original truck and it really came out well.” Mike Govette from FinishMaster next year. “The students really get exin Concord, CA was one of the initial organizers of this event and was pleased to be there as a judge this year. “A • We are the authorized insurance somewhat poignant realization by one vendors for the AASP/Alliance of of my fellow judges was Gigi Walker Automotive Service Providers of NJ. when she mentioned that the very first • Call us for competitive quotes. award-winning fish tank with live fish • Member only dividend & discount programs. was done by Jeff Picolla of Walker’s Auto Body 18 years ago,” Govette said.

This year, the College of Alameda captured first in this competition again, with a truck they called “Heavy Hauler”– a white long hauler truck. In addition, the college also won second place with their wine truck. Contra Costa College took third place and the coveted People’s Choice award for their fish tank truck. Trucks submitted by Tri-Valley ROP, Mission Valley and Eden Area ROP didn’t finish in the top three, eliciting the chant of “Wait until next year!” Marking its 18th year, this will likely be the last competition of its type, primarily be- All of the five auto tech schools in the competition received cause the EB-CAA can no $1,000 checks from the EB-CAA, including The College of longer find Nylint model Alameda, Contra Costa College, Tri-Valley ROP, Mission trucks for its event. But, Chap- Valley ROP and Eden Area ROP ter President Tiffany Silva isn’t easily “It seems the event was bookended by discouraged, so she is looking for an alfish tanks!” The other judges for the ternative to the trucks. “Currently, the evening included Ron Arth, of George board is developing ideas to create a V. Arth and Son and Kirk Kapfenstein fundraising event similar to customizof Regal Collision in Vallejo, CA.

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Media and Publicity for Shops My Marketing Rap for 2017

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

with Ed Attanasio

In marketing, it’s always a good idea to mix it up and change your approach every once in a while. Maybe take your efforts out of social media and use direct mail or billboard advertising, for example. Some shops will do print ads only during their slow times and then drop out when they get busy. Other shops, however, have been sticking with the same old marketing techniques for decades because they still work, but how will they continue to perform in today’s ever-changing world of marketing? If you’re still advertising in the yellow pages or putting flyers on cars in parking lots, it’s time to make some changes and now is the ideal time to do it. So, in the spirit of change, I have decided to alter my writing style a little for 2017 to keep everyone on their toes—so I am writing this column at least partially with rap lyrics. I am surely not 50 Cent, but if my information about marketing is worth at least 15 cents, I’ll be good with it, although I don’t know how my editor is going to respond to my new approach.

1) S-E-O, Baby! Leverage your online presence or start paying your own severance before your shop starts to stumble and eventually crumble, because people are jammed for time and need to find you quickly online every time. That may sound dire and I don’t want to start a fire, but with consolidation gaining momentum, smaller independent shops should heed this proclamation. Search Engine Optimization (SEO) is a necessary evil in today’s world and many shop owners hate it, because they can’t understand it, to be honest. If you’re not one of Google’s top five shops when people search for your business in your town, that means you’re likely buried deep in the bushes and most consumers will not spend the time to chase you down. You don’t necessarily have to know what SEO is, but if you are on Google’s page three or four, you definitely need to do something pronto. Hire a reputable SEO expert and let them do their magic and most importantly, give them at least eight months to one year for it to go into effect. To move up the ranks via any search engine organically, you need to

give any SEO expert enough time for it to happen. Too many shops pull the rug out after only three months, thereby setting it up for failure.

2) Short Clips and Less Text With too many data downloads hitting our brains like driving rain, people are getting away from the written word and watching more videos to a point where it’s absurd. So, jump in the video game and don’t feel shame— you won’t need a Speilberg or Scorsese to make production easy. YouTube used to consist of mostly cute cat videos and recipes about how to make the world’s best Lobster Mac ‘N Cheese, but now there is a plethora of ones that were created by body shops all over the country. Some show shops fixing cars and educating consumers about the repair process, vehicle certifications, customer testimonials and other valuable and even entertaining information that can be easily and quickly disseminated to the public. If you think they don’t work, check out how many people have viewed some of the them on YouTube and then start producing a few of them yourself. With today’s technology, you can actually do videos with your smartphones and editing software is easier to use than ever.

3) Direct Mail is Back It used to end up in the trash pail, but now direct mail is back like kale, so it won’t fail for shops that can prevail by using this re-energized form that was once considered stale. If your design is spiffy and the message is profound, your customers will be happy and the piece renowned. In the old days before the Internet, smartphones and email, everyone did direct mail and caused major congestion in many of our mailboxes. But now, with so many shops competing for a strong identity online, direct mail is more less common. More and more large companies are gravitating away from direct mail and that’s why you’re getting less and less of it. This form of advertising has suffered from being called “junk mail” for decades, but now it’s back, because if done right, it works. First off, you can buy a list that tells you how many people in your region drive a

48 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

specific car for which you might just have a certification for. Sending a nice succinct mailer to these people on a semi-regular basis without stalking them will keep your name in their brains for when their next accident occurs.

4) Pay it Forward People have trouble saying philanthropy so in simple terms- it’s just charity. You don’t have to look too hard, because deserving people are in your own backyard. Do it for the right reasons and not just during the holiday season, and you will see results that are both satisfyin’ and pleasin’! If you are looking at the most successful shops in any area, I would bet they do more than a few charity-related events and programs every year. Giving away cars or raising funds for non-profits by sponsoring car washes, truck pulls, crab feeds, pancake breakfasts—you name it and they do it and more. Helping other people gets your

name out there and shows that you care about the community.

5) Show Some Love An occasional illustration of customer appreciation will ease their pain and retain them for the next time they get into a collision for whatever reason. Acquiring new clients is never an easy way to go, so why not stay in touch with the ones you already know? Many shops are great at customer acquisition but don’t do anything to retain them, which is a huge mistake. We know that people get into accidents every 7 to 10 years depending on who you’re asking, but they can also refer folks to your shop, etc. A satisfied customer can be a great advertising vehicle for your business, so why not put your name in front of them as often as you possibly can? Follow-up letters, email newsletters and even an annual customer appreciation day is how top shops show love to their existing customer base year-round.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 49


Historical Snapshot

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

CIC Ends Parts Test-Fit Demonstrations, Feds Launch New Insurance Oversight Agency with John Yoswick

20 years ago in the collision repair industry (January 1997) Also during the Collision Industry Conference (CIC) in January, Georgia shop owner Gene Hamilton proposed that the paint manufacturers and other companies that host large parties in conjunction with NACE (the International Autobody Congress and Exposition) be asked to redirect some of the money to address fundamental industry problems. “NACE parties are a lot of good drinking, a lot of good eating, and a few hours later it’s gone, but so are sizable amounts of money,” Hamilton said. “My proposal would be that we find a way to reallocate some of the money spent on us. I’d like to see the industry say, ‘I’m willing to forego a party, I’d rather try to solve a 365-day problem, and I’d like that money to be spent on the industry for training, or for attracting people to this industry.’” A number of NACE participants,

including representatives of some companies that host NACE parties, said the proposal would be something they would strongly consider once some specific ways the money could be spent were developed. – As reported in The Auto Rebuilder.

In 1997, Georgia shop owner Gene Hamilton suggested that the money industry vendors were spending on large parties at the annual NACE convention could be used to address larger industry issues

For a number of years, some companies adopted Hamilton’s suggestion, announcing donations to industry efforts in place of large parties during NACE. In recent years, large vendorsponsored events have returned both during NACE and during SEMA.

15 years ago in the collision repair industry (January 2002) After much debate at the Phoenix meeting, Collision Industry Conference (CIC) participants narrowly voted to suspend the vehicle test fits of OEM and non-OEM parts that have been held at most CIC meetings over the past three years. The test fits, coordinated by CIC’s Parts and Airbag Committee, have allowed CIC participants to rate the fit, finish and overall acceptability of OEM and non-OEM replacement parts – not knowing which were which – that were installed during the meeting on a vehicle.

DiLisio, who led the Parts and Airbags Committee prior to becoming chairman of CIC last year, was among those calling for a halt to the test fits primarily because what he called the “misuse of the information gathered by the parts test fits.” As an example, DiLisio cited a press released issued by the Alliance of American Insurers last fall that stated, “Generic certified parts more often than not have received higher ratings than car company parts in blind parts demonstrations at CIC meetings. The attendees of the meetings are primarily owners of automobile body repair shops.” “There’s a couple of things in that statement that are obviously disturbing,” DiLisio said. “Number one, we’ve never had scientific tests; therefore data shouldn’t be used as if it were scientific results. Number two, more often than not, the aftermarket parts have not performed better than the OEM. And number three, the attendees

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at this meeting are not primarily collision repair shop owners.” Insurers and industry vendors are generally represented in equal or even greater numbers that collision repairers at most CIC meetings, DiLisio pointed out. Even more importantly, only six of the 16 certifiable non-OEM parts used in the CIC’s test fits over the past three years were rated higher than the OEM version (and in one case there was a tie). Over all CIC test fits, DiLisio said. OEM parts had an acceptability rate of 78 percent compared with 55 percent for the non-OEM parts. “For them to make a statement that more often than not the [nonOEM] parts perform better, I have a problem with that,” DiLisio said. “We started these test for one reason only: To emulate what a collision repairer goes through every day: Calling up on the phone to order certified parts to see what comes. Number two was to put these parts on a vehicle to see whether they fit, what the finish was like, etc. We’ve done that. We’ve given feedback to the distributors, to the OEs, to the Taiwanese. Many changes have been made. There’s no question in my mind that these test fits have proven to be positive. The question I raise: What

are we going to gain out of them in the next 12 months?” Massachusetts shop owner Chuck Sulkala was among those who supported the continuation of test fits. “We had to be able to show, ‘This is what is wrong with this part,’ and that is what the test fits have done,” Sulkala said. “As a result, we now have CAPA changing the way they are doing thing and are now doing vehicle test fits. We’ve had the Taiwanese come over to see what we’ve done. And we’ve also found that not every OEM part is perfect as I and many other repairers thought they were. As a result, we got the attention of the OEM as well. It’s unfortunate that people decide to take information and twist it and turn it, and they ought to be called on the carpet...but my vote would be that we continue the effort. I’m not sure that our work is completed yet.” Sulkala, however, was one of only three CIC participants who voiced support for continuing the test fits at nearly every meeting; although two dozen others supported limiting the test fits to two a year, a slightly larger majority voted to suspend the test fits altogether. – As reported in Autobody News.

10 years ago in the collision repair industry (January 2007) At the Collision Industry Conference “planning session” held in Phoenix in mid-January, Stacy Bartnik oversaw her first meeting as chair of the conference, leading about 200 attendees through the process of determining which topics CIC committees would tackle in the coming year. “I would like to see some discussion on the use of photographs to establish judgment times,” suggested Darrell Amberson, president of Lehman’s Garage, a six-shop collision repair business in Bloomington, MN. Amberson, who also serves as national director of the Collision Division of the Automotive Service Association (ASA), said such “desk auditing” practices now include using photos to determine, for example, whether a repair time should be two hours rather than three. “I would question the ability to accurately do that based on a 2-dimensional photograph,” he said. – As reported in Autobody News. Despite Amberson’s concerns, “desk audits” of estimates have become increasingly common in the past decade, as have services offering initial esti-

mates based solely on photos. Amberson is now president of operations for LaMettry’s Collision, another Minnesota-based MSO.

5 years ago in the collision repair industry (January 2012) The new Federal Insurance Office (FIO) has been seeking comments on how insurance should be regulated in the future, and two viewpoints are clearly emerging. The National Association of Insurance Commissioners is among those saying the current state regulatory system is working. “Property and casualty insurance proved to be among the best regulated financial-services sectors throughout the financial crisis,” Jimi Grande of the National Association of Mutual Insurance Companies said. But the Risk and Insurance Management Society told the FIO that more federal oversight is needed because state regulation allows insurers to stray from or misinterpret national standards. And the Financial Services Roundtable says the majority of its members “believe that the FIO must be a lead voice, not only in vetting options, but ensuring that a new era of See Retro News, Page 54

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Veterans Day is Always Benevolence Day at California’s Mike’s Auto Body by Ed Attanasio

Mike’s Auto Body presented a 2013 Ford Focus Titanium to Air Force Senior Airman Scott Woolridge from Travis Air Force Base and his family as part of their annual Benevolence presentation on Veterans Day at the company’s Fairfield location.

compelling. “My wife Jamie and I have an 11-month old son named Jase who was born 12 December 2015. I am currently an Aerial Porter in the 821 Contingency Response Support Squadron and serve under Lt. Col Gregory Cyrus. The 821 CRSS is a rapid mobility squadron which is capable of deploying anywhere in the

A 2013 Ford Focus Titanium went to Air Force Senior Airman Scott Woolridge from Travis Air Force Base and his family as part of their annual Benevolence presentation on Veterans Day, November 11 at the company’s Fairfield location

Mike’s has been in business for 44 years and participating in the Benevolence Program for 16 years of presenting cars to deserving families. The company’s third Benevolence presentation of 2016 is scheduled for December 14 at their Antioch ADAC location, where they will give away five more vehicles, bringing the total to 66 cars since 2000. Woolridge is a deserving recipient of this year’s Veterans Day Benevolence vehicle, according to Mike’s Auto Body’s Sal Contreras, who emcees every car giveaway for the company. “Senior Airman Woolridge is truly an inspirational young man,” Contreras said. “He is reenlisting again and is working toward a career in the Air Force. Listening to Lt. Col Gregory Cyrus, Senior Airman Wooldridge is a hero who saved a small village from burning down while deployed in Ethiopia by starting a water bucket chain bringing buckets of water from the river to put out the fires and pulling children out of the burning village.” The application letter the Vintage Valley Blue Star Moms selected and sent to Mike’s Auto Body earlier this year from Senior Airman Scott Wooldridge was both emotional and

world within 12 hours to set up a fully-operational airfield. My family will benefit greatly from the Benevolence program, as we do not currently own a vehicle of our own. “Having our own vehicle will make getting my son to and from his doctor’s appointments much easier as well as being able to pick up groceries and other items for our household. My father-in-law has generously lent us one of his cars, but we will not be able to keep it permanently. I’d like to

ing to worry about public transportation,” the letter read. “Presenting the car to the Woolridge family was such an honor,” Contreras said. “It is an ideal way to thank him for his service and the sacrifices he makes in working towards keeping our country safe. It was also exciting to have two former recipients and their families walk with us and the Vintage Valley Blue Star Moms in the parade and attend the presentation.” The Mike’s Auto Body Benevolence program is a “community giveback program” whose mission is to present cars to deserving individuals or organizations during the holiday season. Everything is donated, including the cars, parts, paint, mechanical inspections, tires and one full year of insurance. The body and paint technicians at Mike’s Auto Body donate their time and skills to turn these cars into pristine “new” used vehicles. This year’s vehicle was donated by GEICO Insurance, and Woolridge received one full year of vehicle insurance donated by Mike’s Auto Body as well. Owner Mike Rose still gets excited when he sees a car going to a

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thank you for considering my family for the Benevolence Program. It has helped out many families and I hope mine will be fortunate enough to be a part of it. My wife and I volunteer at the homeless shelter and soup kitchen. Having a car would give us the opportunity to help out more and to give back to the community while not hav-

52 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

The crew at Mike's Auto Body donated their time to refurbish the Benevolence car

The company’s Marketing and Sales Manager Dane Dearlove explained why Mike’s Auto Body has a Benevolence Program, and the value it brings to the entire community. “The Benevolence Program is about who we are as a company,” Dearlove said. “It is our culture. It is in our DNA. It starts at the top with the Rose family, and is a part of every employees understanding of what our team is about, and what they are a part of.” See Veterans Day, Page 54

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The Rose family has now given away a grand total of 61 vehicles in 16 years

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Service King Celebrates Grand Opening of California’s Milpitas Repair Center by Ed Attanasio

Service King Collision Repair Centers, together with automotive leaders from across Northern California, recently celebrated the grand opening of their new Milpitas location, which is one of the largest and most advanced

Wesley McAlester, Service King Market vice president for Northern California, was happy to unveil this facility officially. The shop opened for business in late August before the company publicly celebrated the grand opening in early November. Today, it boasts the capacity to repair more than

The grand opening at Service King’s new 70,000 square foot shop in Milpitas, CA was attended by more than 200 people

collision repair facilities in the state. The event was attended by local residents and leaders as Service King of Milpitas officially commemorated the completion of its 70,000 square foot “mega shop.”

600 vehicles per month, which would make it the largest producer in the Bay Area, hands down. “The entire Service King family is proud of this repair center, and our grand opening was a special celebra-

Continued from Page 52

Continued from Page 51

Veterans Day

This year, Mike’s Auto Body partnered with the Vintage Valley Blue Star Moms of Solano County, Travis AFB and GEICO Insurance during Veteran’s Day. Special recognition goes to the Travis AFB and Family; Readiness Center; Travis Regional Armed Forces Committee; Vanden High School Jazz Band—Director Nicholas Cagle; Recycled Rides; IAA and Pink Heals of Solano County— Natalie Zell. Special thanks to Mike’s employees: Metal Technician Sheldon Ludlow, Paint Technician Thomas Wilson, Managers Missy Trolinder and Tony Castagnetto and the rest of the crew at the Fairfield location for helping to refurbish the vehicle. Thanks also go to Dean’s Auto Radiators, Pacific Rims, Enterprise, Napa Auto Parts, Enterprise, Lexus of Concord, Ron Dupratt Ford, Good Guys Gen, Fairfield Tire Center, Dan’s Glass, MAB Towing, Big Discount Tire Pros and Hertz for donating parts and time to make the car just like new.

Retro News

insurance regulation does not come with duplicative or layered regulatory requirements.” In letters to the FIO, both Liberty Mutual and the Property Casualty Insurers Association say federal involvement is needed to combat increasingly tough requirements by European governments for financial firms doing business internationally. – As reported in CRASH Network (www.CrashNetwork.com), January 2, 2012. Five years later, within weeks of last November’s election, the National Association of Professional Insurance Agents (PIA) called on the Trump administration and Republicancontrolled Congress to scrap the FIO. “With Congress poised to significantly roll back key provisions of the DoddFrank Wall Street Reform and Consumer Protection Act, we ask that they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.”

54 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

tion as we took our first step in serving the entire Milpitas community with superior collision repair service,” McAlester said. “We look forward to growing alongside our new neighbors now and well into the future.” This mammoth repair center is not only one of the largest of its kind in the state, but the City of Milpitas recently recognized Service King with its annual Beautification Award. Inside, the facility features an array of first-class amenities including an upscale waiting area, water features, and an open concept modern design. Meanwhile, Service King teammates are treated to a best-in-class workplace, including an oversized break room featuring stainless steel appliances, a luxurious locker room and the industry’s cutting-edge repair equipment. With a live band and tours of the new facility, Service King pulled out all the stops to make the grand opening a memorable event, McAlester said. “This was undoubtedly the most elaborate grand opening that we’ve ever done. The Mayor of Milpitas,

Jose Esteves, was here and we received amazing feedback from local leaders and members of the community as well as many of our insurance partners and vendors who attended.” By opening in August, Service King was able to iron out all of the kinks before hosting its grand opening three months later. “Now that we have been open for a short time, things are

With an impressive reception area, Service King customers in Milpitas will relax in comfort and style

going really well and we anticipate that this location will be carrying its own weight within a short time,” McAlester said. “The size of our crew right now in Milpitas is appropriate for the amount of work we’re curSee Milpitas Repair Ctr, Page 58

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Western News

New California Laws That Can Impact Nationwide Business with Ed Attanasio

Every year without fail, hundreds of new laws are enacted that will impact automotive repair shops throughout the state of California. From huge MSOs all the way to little mom and pops in tiny towns, these laws have the potential to influence body shops everywhere if they don’t adapt to them or adhere to them. Below is a list of some of the key measures that will take effect in 2017, unless otherwise noted. Jack Molodanof of Molodanof Government Relations, who has been representing the California Autobody Association (CAA) for 25 years, has offered his take on each new law and how they can affect your business.

Minimum Wage Increase: Effective January 1, 2017, the minimum wage for employers with 26 or more employees will increase to $10.50 per hour. The minimum wage for employers with 25 or fewer employees will increase to $10.50 in January of 2018. (SB 3)

“Since most technicians, estimators and painters customarily make considerably more than minimum wage, this law isn’t going to affect shops in most cases,” Molodanof said. “Maybe for some detailers or porters, this law can impact their incomes to a degree. Additionally, remember that if you don’t provide the proper tools to any employee, you will have to pay them twice the minimum wage.”

Lead Acid Battery Fee: Beginning April 1, 2017, a $1.00 California battery fee is imposed on a person who purchases a replacement lead-acid battery from a retail dealer (includes auto repair dealers). The dealer will be required to separately state (line item) the California Battery Fee on all invoices and collect the $1.00 fee. The Battery fee will be submitted to the Board of Equalization on a quarterly basis, similar to the current California tire fee. The dealer will also be required to ac-

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

cept used lead acid batteries without charging a fee. The retail dealer of batteries is also required to provide written notice regarding the California Battery Fee and refundable deposits; however, the notice requirements do not apply to an auto repair shop that does not sell lead-acid batteries directly to consumers (over the counter) but instead removes nonfunctional/damaged batteries as part of an auto repair dealer service. (AB 2153). “We always had concerns with this bill,” Molodanof said. “This law is a direct response related to the 2013 series of events at the Exide Technologies battery plant that contaminated an estimated 10,000 homes in southern California with hazardous waste derived from batteries. This new law will mandate a $1 fee for each such battery sold for placement into the Lead Acid Battery Cleanup Fund.” Tow Truck Requirements: This new

law makes a series of changes to provide relief to last year’s bandit tow truck law (AB 1222). Current law requires a business taking possession of a vehicle from a tow truck to document the name, address and telephone number of the towing company, the name and driver’s licenses number of the tow truck operator, the make, model and licenses plate or vehicle ID number and the date and time that possession was taken of the vehicle. This new law allows the business to accept the operator driver’s license number or driver’s identification number issued by a motor club or other government authorized unique identifier of the tow operator. If the business is taking possession of the vehicle from tow truck when the business is closed, the business must document reasonable efforts made to obtain the required information. (AB 2167) “This law provides relief by allowing shops to accept a government authorized unique identifier or motor

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club driver’s identification number,” Molodanof said. “This way, they don’t have to present their driver’s licenses as identification, which is an identity theft protection issue for the drivers. This law protects shops, tow companies and consumers alike, because it documents the transaction and provides full accountability.”

Automotive Windshield Replacement: This new law requires that automotive repair dealers (includes sublets) to use windshields that meet or exceed Federal Motor Vehicle Safety Standards and vehicle manufacturer specifications when replacing windshields and to use adhesives that meets or exceeds manufacturer specifications. Auto repair dealers shall provide an estimate notifying the customer that the installation of the windshield will prevent the operation of the vehicle for a period of time (due to cure time) and whether the windshield is an OEM or non-OEM manufacturer part. The invoice shall notify the customer of the cure time, the date and the time upon which the installation was completed and whether the windshield is an OEM or non-OEM manufacturer part. (16CCR 3365.1)

“This law allows shops enough time to let the adhesives cure during the installation process so that customers would not be left in the dark and the windshields will not leave a shop until they are safe and correctly installed,” Molodanof said.

Counterfeit and Nonfunctional Airbags: This new law increases penalties for any person who knowingly manufactures, imports, installs, reinstalls, distributes, sells or offers to sell any device intended to replace a supplemental restraint system with a counterfeit supplemental restraint system component or a nonfunctional airbag as defined. (AB 2387) “The National Highway Traffic Safety Administration (NHTSA) reported in 2015 that more and more counterfeit airbags have been discovered as replacement parts in vehicles that have been involved in crashes, thereby leading to this law,” Molodanof said. “This one is fairly common sense. If you buy an airbag on eBay or Craigslist for $50, you can be fairly certain that it is not the real thing. Counterfeit airbags are obviously a major safety issue and now the penalties for selling them are tougher,

which is good.”

Criminal History in Applications for Employment: This law prohibits employers (in addition to existing laws) from asking applicants to disclose, or from utilizing as a factor in determining any condition of employment, information concerning or related to “an arrest, detention, process, diversion, supervision, adjudication, or court disposition that occurred while the person was subject to the process and jurisdiction of juvenile court law.” (AB 1843) “In the past, employers could go back and look at employees’ or applicants’ juvenile records, but those will now be sealed,” Molodanof said. “This was sponsored by the Juvenile Court Judges of California and the idea behind this law is that people should not have to pay for things for their entire lives that they may have done as juveniles. This does not affect adult criminal records that are still available to employers that want access to them.” Single-User Restrooms: Commencing on March 1, 2017, this new law requires all single-user toilet facilities in any business establishment, place of public accommodations or govern-

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ment agency to be identified as allgender toilet facilities. (AB 1732). “If your facility isn’t open to the public, this law does not apply to you,” Molodanof said. “It’s not like with a restaurant where a restroom is required by law. In this case, you will likely only have to change some signage on your restroom to adhere to this new law.”

Smoking in the Workplace: A new set of laws were passed during the middle of the year (June 9, 2016) which increased the smoking age from 18 to 21; included electronic cigarettes and expanded the prohibition of smoking of tobacco products inside an enclosed place of employment. The law now applies to all employers regardless of size, including where the owner-operator is the only employee (i.e. owner-operated business). (ABX2-7) “This law was designed to some degree to deal with e-cigarettes, because they are new and many business owners don’t know how to deal with them,” Molodanof said. “Now, it is prohibited to vape inside a shop and that also includes customers. It’s a health issue, and even if you’re okay with smoking in your business, the state is not.”

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Spotlight on: Premier Auto Body in CA by David Minsky, Santa Maria Sun

If you take a look around Northern Santa Barbara and Southern San Luis Obispo counties in the coming weeks, you might notice that the Sun’s newspaper boxes are repainted, some with fresh yellow paint and some adorned with murals. The artistry is the work of various art students at Allan Hancock College, who’ll be profiled in a future issue of the Sun. But before the boxes make it to Hancock, they first get a twice-over at Premier Auto Body in Santa Maria, where they get sandeddown and receive a fresh coat of primer paint. When the Sun put in the call, owners Hector Paz Sr. and Jr. were happy to oblige. But as you’ve guessed, Premier isn’t in the business of sanding and priming newspaper boxes. Premier is a collision repair and auto body painting facility that the Paz family has developed into one of the most reputable in Santa Maria. Make no mistake, they’re not mechanics; their business is bodywork, detailing, and making your car look good again. Their motto is: “Where we meet our customers by accident,” which is fitting, because it’s where Continued from Page 54

Milpitas Repair Ctr

rently doing, so we’re going to build our team as the demand grows. But we are finding out that the demand is growing quickly, which of course, is a great thing.”

Designed to repair more than 600 vehicles monthly, this new location has already attracted a wide range of work from Milpitas and the rest of Silicon Valley

With two Service King shops in San Jose and others in Santa Clara, Fremont and Mountain View, the company is blanketing the Bay Area, because it is a growing area and the home of many high-tech companies, for example. “Santa Clara is one of our top producers right now and I predict that Milpitas will be able to surpass their numbers, but it will take some time,”

auto insurance companies send their clients’ damaged automobiles. It’s a saying that the elder Paz’s wife came up with.

“It was probably the craziest thing in the world to start a business at that time,” the elder Paz told the Sun. “It made for a much more difficult startup.” In order to get clients, the Pazes first needed to establish a reputation within the community. How did they do it? Quality work, integrity, and superb customer service, for starters, according to the owners. “We treat customers with white gloves,” Paz Sr. said. “Also, the fact that it’s family-owned helps a lot, and not a corporate name.” From left to right, Hector Paz Jr. and Sr. opened Premier And perhaps their miliAuto Body in August 2009, right in the middle of the recession. Despite facing hard times, the father-son team tary backgrounds helped a little, too. The younger Paz built a reputation for quality work. Credit: David Minsky served 10 years in the U.S. The shop is considered “VIP,” or a Navy as a gas turbine systems technishop recommended by insurance com- cian, deploying five times and receivpanies to their policyholders. It’s also a ing a slew of awards and promotions direct repair facility. Achieving this sta- for his time in service, which his fatus is not easy, the elder Paz said. ther said prepared him well for the job The Paz family began its business of running a business. in August 2009, right in the middle of Paz Sr. himself was a U.S. Army the recession. Starting a business is second lieutenant. He earned a comrisky to begin with, but in the middle mission through the reserve officer of an economic crisis is entirely differ- training corps at Cal Poly. He reloent matter. cated from Denver to the Central

McAlester said. “We do anticipate that our Milpitas location will be the best location we have in this market. It may take a couple of years for the location to mature and reach its numbers, but we’re expecting big things for sure.” Northern California has been very good to Service King and McAlester hopes that it will continue in Milpitas, a city of approximately 67,000 people with a median income of roughly $85,000. After working for a long time to get its Milpitas location in operation, the company is happy to be up and running at last. “We had Milpitas on our radar for quite some time,” McAlester said. “But getting things put together, including permits and all of the other things that have to happen before opening a shop require time. That is why it’s so satisfying to see this great shop and the incredible response we’re getting from everyone.” Service King traces its roots back to Dallas, TX and founder Eddie Lennox, who opened the very first Service King in 1976, and today, Service King operates 305 locations in 23 states across the U.S.

www.autobodynews.com

58 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Coast in 1982, receiving work at Vandenberg Air Force Base. He worked 28 years in the aerospace sector, where he primarily did financing— skills that translated into his current gig as owner of Premier. Now, insurance companies seek out the Paz family and son for their work. Premier Auto Body is a dedicated facility for GEICO, Enterprise, and Ameriprise insurance companies. “We grew from nothing, hoping someone would stop and see us for what we are,” Paz Sr. said. “The experience is a lot sweeter now because we have a lot more business.” Premier Auto Body is located at 211 E. Mill St. in Santa Maria. The shop is open Monday through Friday from 7:30 a.m. to 5:30 p.m. and closed on the weekends. For more information, call the shop at (805) 922-8700. We thank Santa Maria Sun for reprint permission.

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Shop Strategies

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

Hawaii Collision Center Works Hard for Customers While Living in Paradise with Stacey Phillips

On the Hawaiian island of O’ahu, The the ‘90s. We used to be able to fix cars and still make a small profit; now it’s Tony Group dealership and collision center were founded by Tony Masamitsu fixing cars to break even. We have more than 30 years ago. The family-opfound that the insurance company’s with Stacey Phillips erated company is currently owned by DRP has made it difficult to do a corhis son Stan and employs close to 400 rect repair as they question every proat the dealership and 17 at the collision cedure. repair shop. The Tony Group Autoplex We decided to get away from includes four stores: Honda, Nissan, DRP relationships, but are currently part of two because they are very supwith Stacey Phillips portive of corrective repairs and they are fair when it comes to rates. Neither use aftermarket parts and one doesn’t even use recycled parts. First Insurance Hawaii is one of the best ones I like working with; the staff is awesomely fair. with Stacey Phillips Although we live in Paradise, we have the same issues with insurance Located in Waipahu, Hawaii, The Tony Group companies suppressing rates by an inCollision Center was founded more than 30 visible survey they project they have years ago and limiting payments, the strong Hyundai and Volkswagen, as well as a push of non-crash-tested aftermarket full-service car wash. Autobody News parts and steering. We want to change recently spoke to with Sabrina Dela Rama, legislation and hopefully with all the Victoria Antonelli manager of Tony Group Collision Cenmedia and support of the industry, our ter, about the body shop, which is locouncil members will see what the big cated in Waipahu. billion-dollar companies are doing to hurt the consumers. What is your role at the shop and what is it like operating in Are you part of any associaHawaii? tions?

Body Shops Giving Back

ABPAH recently received a certificate from Senator Mike Gabbard in December for being ‘…dedicated to educating their members, providing professional results, and getting their customers back on the road in vehicles we can be proud of.’

How do you stay current with Q: new technology and procedures? It’s a combination of researchA: ing, talking to our peers and other shops, manufacturers, ALLDATA

seminars for collision education. We learn what other dealership body shops are faced with and what challenges

Tips for Busy Body Shops My SEMA

Shop Strategies

Q:

I am the collision center manA: ager and what can I say but that it’s paradise! However, it’s very ex-

pensive to live in Hawaii. Our cost of living is the highest in the nation but our pay is below average in the state. Our rates are determined by the billion-dollar insurance companies that control what and how much they will pay for a repair and the rates. Many times, parts are on back order and they could take five to seven days to arrive. Sometimes, the humidity plays a factor in the curing of the paint. The land and space in Hawaii are also very expensive so we are always fighting for room or space, but mostly we find it challenging to try and survive in this insurance-run business.

Is the body shop part of any Q: DRP programs? Being on a DRP program nowaA: days isn’t what it used to be in

Q: I am the new 2017 president of A: the Automotive Paint and Body Association of Hawaii (ABPAH),

which is the oldest active association in Hawaii. The mission of ABPAH is to provide our members with the tools and education necessary to attain a high level of expertise, allowing the

and I-CAR. Billy Walkowiak and Larry Montanez have really helped educate me about this industry. Tim Ronak from AkzoNobel helps us with our goals and we have an upcoming seminar planned in Florida. Richard Doyle, the fix operations director for the Tony Group Autoplex who built our collision center, the carwash and the Hyundai store in Hawaii, and I fly out two times a year to attend classes and

growth and prosperity of our members. We are looking into legislation and hopefully, we can start to move the industry on the right path.

60 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

they have overcome. There’s so much learning to do and it seems to be an ongoing process.

Congratulations on the recent Q: awards the Tony Group has received for consumer satisfaction. What is the importance of excellent cusSee Hawaii Collision, Page 72

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SEMA Show Goes On

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

Vintage Color Studio Features Award-Winning Roadster at 2016 SEMA at PPG’s Booth with Ed Attanasio

leather and 1969 Cadillac fabric interior Media and Publicity for Shops combo. I’ll guarantee you it’s the nicest

When a major brand like PPG invites CA, has won three America’s Most you to be part of its booth at SEMA, Beautiful Roadster (AMBR) awards it’s definitely a big dealEd andAttanasio an honor and a handful of Pebble Beach Conwith for any automotive painter. And even cours d’Elegance awards with his cars though Darryl Hollenbeck, the owner that are regularly featured on the covof Vintage Color Studio in Concord, ers of magazines such as Street Rodder and Rodder’s Journal, Hollenbeck has never become jaded or complacent due to his success. with Stacey Phillips Along with other top car painters and fabricators, Hollenbeck’s 1932 Ford Highboy Roadster wowed SEMA attendees during all four days of the show. The 2016 AMBR winner differs slightly from your traditional Highboy approach while still retaining much of its original look. with Stacey Phillips “Cory Taulbert at Webb Automotive Art handled the chassis fabrication and then we got it back to install its Edelbrock crate small block, and a T5 Borg Warner trans,” Hollenbeck said. Darryl Hollenbeck and his wife Terri with “Once we were done with the paint, Bill their 1932 Ford High with Boy Roadster, which Phillips Stacey Ganahl coordinated the final assembly, wowed SEMA attendees who visited PPG’s and friend Sid Chavers stitched the booth during all four days of the show

roadster here with 10,000 miles on it.”

Shop Strategies

Body Shops Giving Back Tips for Busy Body Shops

Hollenbeck's ‘32 Highboy won Vintage Color’s third America’s Most Beautiful Roaster award earlier this year

Darryl Hollenbeck, 49, grew up in Concord, CA with a family that was destined to paint or rebuild vehicles as a profession. Darryl’s grandfather,

uncle and father were all highly-regarded car painters, with his father Dale gaining national acclaim for his work before passing in 2003. Hollenbeck has been painting vehicles since he was a teenager. “I was using lacquer back when I started painting cars as a kid,” he explained. “The first car I ever painted was a 1968 Mustang done in black lacquer. When waterborne paint was mandated almost 10 years ago now, I struggled with it for a short time and was a little skeptical about it. I was wondering if the waterborne would last and questioned its longevity, but now I use the PPG Envirobase exclusively and it is outstanding. They are a great company and extremely supportive. Their products are user-friendly and they know what painters go through, which means that their customer support is exceptional across the board.” A veteran painter, Hollenbeck entered the industry on the collision side

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initially. “I worked with my uncle and my father at H&K Auto Body in Oakland, CA, and that is where I started working right out of high school,” he said. “I was there for about four years and then I bounced around working at body shops in the East Bay. I always had an urge to do complete customs, and pretty soon, I was able to do them. I always wanted to be strictly a painter, but at the beginning to break in, I had to do it all.” Hollenbeck’s career really gained momentum when he landed a job at Acme Custom Cars in Antioch, CA, a top customization shop with a great reputation for doing award-winning work. “I was able to really expand my horizons there and refine my painting skills,” he said. “They gave me the responsibility and I thrived on it.” Currently, Vintage Color Studio is booked for at least a full year, and Hollenbeck’s work is always in demand, it seems. If you want a classic car with an award-winning paint job, Hollenbeck’s name is a household word in northern California and many of the country’s top rod builders have his name right at the top of their list. When Hollenbeck gets a classic hot rod in his shop, it’s already down

to the bare metal, and that’s when Vintage Color Studio does its magic. “We fill in the gaps and prepare it for paint and then we paint it,” Hollenbeck said. “The car is then sent back to the restoration shop, which is usually Roy Brizio at Roy Brizio’s Street Rods in South San Francisco, CA. It is a great

Hollenbeck painted this award-winning 1937 Lincoln Zephyr for James Hetfield of Metallica a few years back

relationship that works well, because they have an amazing track record of success between the two and are also related through marriage. Also, I am married to Terri Brizio, Roy’s sister, which surely does not hurt.” Hollenbeck has painted vehicles for car collectors all over the world,

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Hollenbeck is a serious artist and businessman, but he also enjoys the camaraderie that comes along with the job. “One of the great things about this business is that I eventually become friends with many of our customers,” Hollenback said. “It just happens naturally, because they give me a ton of

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responsibility with these vehicles and I value that. These are their children in a way, so I want to do an incredible job for them. That is also why I get a lot of repeat clients, because they know I am totally dedicated to every project I do.” After working on any car, Hollenbeck still gets a rush when he sees the finished vehicle right before the rest of the world gets to. “When we return it to the rebuilder, it’s all in parts, so we can’t really get a good idea what it is going to look like. But when we finally get to see it with all of the upholstery and driving it is always a thrill!” Hollenbeck still loves the business, even though the work schedule is often insane. “It’s tedious work with 10-14 hour days, but it sure beats collision repair, that’s for sure,” he said. “When you fix a car, you just return it back to what it was before. But when you rebuild a car, it’s like creating a whole new vehicle, and that’s why I love it. Getting in shows, winning awards and being featured in magazines is nice, but in the end, I am taking something old and making it look spectacular and that’s why I have not had a vacation in 17 years and don’t have any planned anytime soon.”

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and a few years ago he stumbled upon a niche that consists of rock stars including two guitar legends. He has now done four cars for James Hetfield, the lead singer of Metallica; two for Eric Clapton and one for Jeff Beck, who used to be in the Yardbirds with Clapton many years ago.

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For Your Collision Job Visit these Genuine Hyundai Parts Dealers www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 63


A 2015 Profile of the Evolving North American Collision Repair Marketplace by Vincent Romans

Our 10th anniversary annual research report, A 2015 Profile of the Evolving North American Collision Repair Marketplace, is now available. Following is an executive overview highlighting our data and findings from the report.

It has been quite a ride to watch what has transpired during the past decade, not only within the collision repair industry, but throughout the entire auto physical damage ecosystem. The consolidation, convergence, and the structural changes we are witnessing within businesses, industry segments and markets, as we know them today, are now significant market factors to consider as part of our future planning. The high velocity and breadth and depth of change, coupled with the seemingly relentless introduction of innovative and disruptive products, services and business models, has required us to maintain an intense vigilance, to stay constantly informed, and to learn

And since 2012, the $10-$19 million MLOs Since 2006, the total revenue within these four segments has grown from $3.8 billion to $10.2 billion in market share, an 11.6 percent compounded annual growth rate. The top ten ranking of all ≥$20M segment repairers including independents, dealers and franchisors can be seen in the following chart. Under the All Repairers column, we see there are four independent consolidators, three independent franchise organizations and three dealer groups. Within this category, the four independent consolidators represent a significant 70 percent of the revenue processed in 2015. The four consolidators by themselves represent 11.3 percent of the total industry size for 2015. We estimate that by 2020, they could almost double their market share and represent just over 20 percent of industry market size. When combined, the four segments we track and analyze could represent almost 45 percent of the collision repair industry by 2020. The following chart reflects the ranking of the Top 10 multiple-location operators and networks for 2015.

Although the U.S. has seen an increase in consolidation within the multiple-location operator segments, Canada remains significantly more consolidated in the revenue generated by the combined franchise and banner and ≥$10 million MLOs. In Canada, this combined segment group represents a 71.8 percent market share versus the combined 29.8 percent share for the same U.S. segments. The combined 2015 revenue for the U.S and Canada ≥$20 million MLO

and franchise networks was $11.8 billion versus $10.8 billion in 2014. This represents 32.2 percent of total industry revenue for the U.S. and Canada. Within the U.S. market, the ≥$20 million independent and dealer MLO segment is the largest while the franchise and banner network MLOs remain the dominate business model in Canada. Both countries saw a continued downtrend for the number of collision repair facilities, although this downturn See A 2015 Profile, Page 72

Choose Original MINI Parts. and understand as we consider, adopt, avoid, or leverage these transformative or disintermediating forces in order to remain relevant and competitive. U.S. Collision Repair Industry As the basis for our research, we track and analyze four U.S. segments:

■ ■

Four top independent consolidators ≥$20 million multiple-location independent and dealer operators, MLOs Franchise and banner groups

Canadian Collision Repair Market The Canadian market continues to consolidate with the franchise and banner segment now representing a significant 52.0 percent share of the CAD $2.9 billion private insurance auto market. When including the ≥$10 million MLOs in Canada, the combined larger segment has a significant 71.8 percent of all the private passenger insurer and consumer-paid market. Under the All Repairers column, we see four banner and franchise groups leading the Top 10 ranking followed by five independents and one dealer MLO.

64 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

maryland MINI of Baltimore Towson 855-578-9902 (410) 363-7158 Fax parts@minibaltimore.com MINIBALTIMORE.COM The Dealers Above Are Original MINI Parts Distributors ©2016 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.


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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 67


Tips for Busy Body Shops

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

How to Compete with Consolidation and Outmaneuver Your Competitors in 2017 with Stacey Phillips

During a recent SCRS seminar at enue and margin benefits from conSEMA 2016, Brad Mewes began his solidation, said Mewes. presentation by asking a room full of These trends seem to be here to body shop owners to Stacey think backPhillips a stay. “They aren’t going to change; they with decade ago when there were just a are only going to continue,” he said. handful of consolidators in the indusSo how is it possible to compete in try, such as Caliber. such an environment? Mewes shared “This was a time of much uncerfive ways shops can make more money tainty in the collision repair industry and outdo their competition in 2017: and a time when the power of the independent was very strong,” said Mewes, 1) Organic Growth: With this founder of Supplement, company that model, Mewes said generally speakwith aVictoria Antonelli specializes in strategic advisory serving, there is a potential to grow your ices to the automotive aftermarket. business five to 10 percent annually. “But there were changes that were hapSome of the advantages include diverpening in the industry.” sifying your customer base He recalled attending a and increasing your contribumeeting at that time when tion margin. However, he businesses came together to said there tends to be a maxdiscuss how to compete in an imum amount you can grow. environment that was con“One of the bigger challenges solidating around them. He growing organically is you remembered one of the succan only grow so much before Brad Mewes, cessful business owners sayyou run out of space. Addifounder of ing that if you ever suspect tionally, as you grow organiSupplement, during SEMA auto body to be run like Wall cally, you have to continue to 2016 Street, you are going to be invest in staff and working waiting a long time. capital,” said Mewes. “An ongoing inFast forward 10 years and the vestment is required.” largest four collision repair operators in the United States are all run like 2) Efficiency and Cost ReducWall Street companies and backed by tions: In terms of opportunities, Mewes some of the largest, most prolific pri- said that shops can improve both gross vate equity groups in the world, said margins as well as operating margins. Mewes. The Big Four include ABRA, “Buying right, minimizing waste, and Boyd (Gerber), Caliber and Service increasing throughput are all ways to King and own more than 1,400 loca- increase efficiency and boost profit,” tions combined. said Mewes. “But there is a natural Mewes said that from the end of limit to this growth and margins can’t 2011 to year-end 2015, the Big Four increase indefinitely. In other words, have collectively tripled in size. Serv- you can only sharpen the knife so many ice King, the fastest growing of the times.” four, increased in size six-fold. In the first three months of 2016 alone, the 3) New Development: New detop four consolidators added nearly as velopment is generally a low-cost opmany locations as they added in all of tion for businesses that want to expand. 2012. “They have clearly become exMewes said the new shop can be used perts at identifying, acquiring and inas a training facility to educate emtegrating repair facilities. This is ployees until operations ramp up; ususignificant because how they are doing ally over 18 to 24 months. If shop business is different than the way we owners invest a substantial amount of might be doing business,” Mewes told money into the business, they must fiattendees. nance the development over this time, Meanwhile, private equity firms as well as pay their employees during are investing in the body shop indus- the ramp up phase. This can be a costly try due to its scalable platforms and proposition as the shop gets up to full backable management teams where steam, and it is important to plan acthey believe there is substantial rev- cordingly.

My SEMA

Shop Strategies

68 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

4) Acquisitions: Many in the industry consider this a risky option; however, Mewes said there are advantages to making an acquisition. Not only can it diversify your risk, the business is already in place with employees, a customer base, insurance cash flow, revenue, etc. “Generating cash flow from day one makes it more attractive and manageable to grow,” said Mewes. However, acquisitions can be very complex and often require a substantial financial commitment.

5) Culture: Mewes said that the biggest advantage independent collision repairers have is the ability to drive culture. Although large companies in this industry spend a lot of time and money on developing a culture and education, he said it’s one of the biggest challenges they have because they simply cannot touch every employee in the organization. “The abil-

ity to drive culture is really one of the differentiating factors that a small organization can leverage and has to leverage in order to grow aggressively,” said Mewes. “Because you are a smaller operator, you can be flexible in a way that a larger operator can’t.”

As the industry continues to change and evolve, Mewes said there is still opportunity for independent shops to grow. “There are investors who want to invest in companies that are growing and expanding. It’s a huge opportunity,” he said. “In a consolidated industry, you effectively have one choice: grow fast or be acquired!” This article is based on an SCRS seminar during SEMA 2016. For more information, contact Brad Mewes, founder of Supplement, at 714-658-5518, brad.mewes@supp-co .com or read his weekly insights at http://supp-co.com.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 69


Shop Strategies with Stacey Phillips

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

Indiana Family-Owned MSO Grows to Six Locations with Hard Work and Passion These include a 10,000-squareTom and Ed’s Autobody was established in 1983 in a 2,000-square-foot foot location opened in Crown Point in space in Schererville, Indiana. The 1998 and one in Merrillville added the with business now has six Stacey locations, Phillips in- following year, which was recently cluding a towing division and a boat/RV division. Autobody News spoke to Andy Tylka, general manager of Tom and Ed’s Autobody, about the family-owned and operated company and how itwith has grown over Phillips the Stacey years.

have a huge passion for this business.

What prompted the decision to your new locations? Q: open Two years ago, we deA: cided to take our dealership location out of the Tips for Busy Body Shops dealership in Merrillville. We

Body Shops Giving Back

available, it was too perfect to pass up. We were tired of always regretting opportunities. During that time of rebuilding Merrillville, and completely renovating the dealership location in Cedar Lake, the Burns Harbor and boat/RV business in Valparaiso became available to take over. With the new motto of ‘no regrets’ we jumped on that purchase as well.

secured the bank loan, designed the facility, and broke ground to start construction. Can you tell us about the hisWhat is the benefit/challenge While the location was being tory of Tom & Ed’s Autobody diversifying your business with rebuilt, we were approached Tom & Ed’s Auto Body was established in 1983 and has & Towing? the boat/RV division? with an opportunity to purgrown to include six locations in Indiana chase a building in Cedar The original body shop was The boat/RV business is a comLake. My father always spoke to me moved to a new 16,000-square-foot fawith Stacey Phillips opened in Schereville by Tom cility behind the existing location. In pletely different animal in the about that building, telling me it would Tylka (my dad) and Ed, who left the 2016, Tom & Ed’s Autobody acquired auto body business. We are lucky to make a great auto body shop, which business after a few years. My father Arnell/Bosak Bodyshop in Burns Haremploy someone who had run the exwas an existing Chrysler/Dodge dealhas been sole owner ever since. At the bor and CC Autobody in Valparaiso. isting boat/RV location a very long ership. He told me about opportunities time Ed left the company, by father The company also opened a new locatime and is passionate about this type he had over the years purchasing addiwas afraid to change the name for two tion in Cedar Lake in December. It was of repair. There are different challenges tional locations and prime properties to reasons: we must contend with. grow the business, but regretted never previously “Center Garage/Bobb Auto 1. He didn’t with want toVictoria lose the cusInsurance companies handle boat/ doing so. When Cedar Lake became Group,” prior to being remodeled to a Antonelli tomer base he grew from nothing. collision repair facility. 2. Signage and letterhead was reHow have you handled some of cently printed and it was very expenthe challenges as family-owned sive for a sole owner starting from and operated business? scratch. The name stuck and has remained One of the challenges of being the same ever since. The business a family-owned business is started with my father being the only having responsibilities clearly defined employee with the support of my for each family member. When we all mother Debbie managing the fiknow our roles in the company, then nances. He would go out during the finger-pointing is reduced, which then avoids any family feuds. Communication is also key. We communicate by Genuine Mitsubishi Replacement Crash Parts are close at hand from having monthly meetings, as well as the following quality dealerships. carbon copying the family members on important emails so everyone is on the same page. And of course, someone needs to be in charge. In a family business, there needs to be a single person MASSACHUSETTS that is the main decision maker. This gives the responsibility of the company Courtesy Mitsubishi to a single person who can lead. As the Owner, Tom Tylka and his wife Debbie SOUTH ATTLEBORO saying goes, “you have to avoid too many chiefs, and not enough Indians.” day and market his business, while 508-761-9700 We are not a family that can leave working at night on customers’ vehi(508) 761-0768 Fax work at work. Tom & Ed’s Autobody cles. He was focused on providing the www.courtesy-mitsu.com is part of our lifestyle, where we enjoy community a body shop that was famtalking about it during family funcily-friendly with an honest price. We tions and get-togethers. I feel like by are now growing to include 50+ emus enjoying discussing work and ployees and six locations with the strategizing during afterhours is a resame focus my father had 34 years sult in all of us loving what we do. We ago.

Q: A:

My SEMA

Q: A:

Shop Strategies

Q: A:

70 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Parts You Need. People You Trust.


RV claims completely different and each case is unique. RV repair is more manufacturing as you are more of a general contractor than a collision tech. Where in the car repair business you buy most of your parts through the dealer, the RV business is the opposite. It also takes experienced experts to write estimates and know what to do because repair procedures times and parts are not documented and there is not a major software that has data available to write estimates and manage claims. In addition, you need a large footprint to work on boats/RVs that have a span of 50+ feet in some cases. We have constructed a paint booth specific to handing any size we may come across. When dealing with boat/RVs, large bay doors, tall ceilings, boat rotisserie/skates, and the ability to construct scaffolding when needed are all necessary.

What advice would you give to Q: others in the industry in regards to making an acquisition vs. building

a stand-alone facility?

My advice is: do not grow unA: less you are confident that your

existing locations are self-sustaining. You cannot grow unless you have your house in order. You want to make sure you have policies and procedures that are easily duplicable in new facilities. Our dedicated and loyal staff is definitly to thank for our growth. We are lucky to have staff that lets us grow by being just as passionate as we are about the industry. We hire problem preventers, not problem solvers. If you teach/hire people to prevent problems, you spend less time scrambling, trying to solve situations. It makes your day very predictable. You also need to have supporting staff on the corporate side knowing that individual owners cannot do everything themselves. Delegating to your team is crucial, while trusting that they will carry out that task effectively. I also document EVERYTHING during projects. There are a lot of deadlines, tasks, and projects going on at once. Being very well organized is key. My best tool for organization is a Microsoft program called ‘Onenote.’ It is an application that follows you wherever you go as it stays current on your phone as well as your

desktop. I use it for: “Todo” lists, meetings and insert pictures and video into my notes. After projects are completed, I log them into files on my computer so I can reference them at any time. I never want to have to figure out/learn something twice. If I have experienced doing something new like applying for a town variance, permit, bank loan procedures, etc…, I want to have a reference so when I have to do it again, I do not have to relearn it.

make their indoor drive-ins flow for the best experience for the customer? With these changes, the customer never has to be outside in the elements as all customers are directed to our “indoor drive-through bays” for estimates, for drop offs, pickups, and to pick up their Enterprise rental car. If anyone is prone to build a new facility, I recommend they spend a lot of time in luxury dealership serviced Departments observing how customers and their vehicles are addressed.

What are some of the additions How have you created a culQ: you added to the facilities to Q: ture at your shop where your enhance customer service? employees are like family members?

When designing our facilities, Our Industry continues to get A: customer flow and service is a A: saturated by national consolpriority. We over-analyze every situ- idators. We have embraced that by

ation to make sure the customer experience is flawless. Therefore, we focused on the dealership’s service departments and how they are set up. We tried to copy the flow of dealerships customer “drive in bays” with the service writers on the floor to greet the customer. Why should we reinvent the wheel when billion dollar companies such as BMW have already put the research into how to

MARYLAND

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Mon.-Fri. 7:30-6; Sat. 8-4 www.fitzmall.com MASSACHUSETTS

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creating our own niche. As other shop owners complain about not being able to find technicians and staff, we are creating a culture where we have employees applying every day wanting to be a part of our family. We have made a big decision to focus on the quality of life of our employees and what we can do to improve their employment experience. We want all employees to See Hard Work & Passion, Page 72

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 71


Continued from Page 64

A 2015 Profile

has slowed in recent years. In 2006 there were approximately 45,000 U.S. collision repairers averaging $666,000 in

revenue annually versus about 32,900 locations in 2015 averaging $1,036,474 in annual revenue. Canada’s repair location population has seen a reduction of more than 50 percent since 2012, with 4,900 locations averaging about

$427,959 in 2015. When comparing the market size and share for the property and casualty insurance and auto repair segments for the U.S. and Canada, we continue to see two very different and divergent markets. The U.S. collision repair mar-

Both countries saw a continued downtrend in the number of collision repair facilities, although the decline has slowed somewhat since 2010. Although the U.S. has seen an increase in its consolidation within the MLO segments, Canada remains sig-

$36.4 billion is an increase of 3.9 percent versus 2014. Our annual research report, A 2015 Profile of the Evolving North American Collision Repair Marketplace, is now available. The report is the result of our ongoing propriety research, analysis

ket size is 15 times the size of the Canadian market. Canada’s Top 10 private insurers have a 78.7 percent premium market share, up from their 77.1 percent share in 2014, as compared to the U.S. insurers’ share of 71.1 percent.

nificantly more consolidated in the revenue generated by MLOs at 71.8 percent share versus 29.8 percent for the U.S. market. This represents increases versus 2014 of 1.9 and 3.3 percent for the U.S. and Canada respectively. The combined ≥$10M MLO, franchise and banner revenue of $11.8 billion is now just under onethird of the combined total market revenue. The combined market size of

and collaboration with specific market experts and leadership throughout various auto physical damage segments. It presents the complete results of our work for 2015 in over 40 charts and graphs in 47 pages and includes historical trends and a future view. The report can be purchased by contacting The Romans Group LLC at 847-382-6208 or Mary Jane Kurowski at maryjane@romans-group.com

Continued from Page 60

Continued from Page 71

tomer service?

enjoy coming to work. When you work hard for your employees and care, they work hard for you and your customers as well. I can’t say enough about how grateful I am to have the employees we have. They make me enjoy coming to work every day, and I hope I do the same for them. If it wasn’t for them being a part of the family and caring personally about our product and our customers, our growth would not be possible.

Hawaii Collision

Customer service is very imA: portant as they are who we work for. We work hard to ensure a

safe and corrective repair, to follow manufacturers’ procedures and make sure every customer has a fair dealing with us and their carrier or the insurer.

Tony Group Collison is a Honda ProFirst shop, Nissan, Hyundai, Chrysler certified collision center and I-CAR Gold class. We follow strict manufacturer procedures and we believe that customers’ safety is our NUMBER 1 priority. For more information, visit http:// www.tonygroupautoplex.com/ or email Sabrina Dela Rama, manager of Tony Group Collision Center, sdelarama@ tonygroup.com.

Hard Work & Passion

For more information, visit http://www .tomandedsautobody.com/ or email Andy Tylka, general manager, atylka@ tomandeds.com.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 75


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