January 2020 Northeast Edition

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38 YEARS

NORTHEAST EDITIO N

AUTOBODY

AUTOBODYNEWS.COM

Vol. 10 / Issue 10 / January 2020

CT / DE / ME / MD / MA / NH / NJ / NY / PA / RI / VT

CIC Committees Offer Ideas for Better Welding Practices, Documentation of Test Drives

Mosaic ADT Created to Achieve Repeatable, Error-Free Calibrations

by John Yoswick

by Stacey Phillips

Collision Industry Conference (CIC) committees in Las Vegas in Novem-

Toby Chess and Kye Yueng offered tips and best practices related to improving shop welding. Credit: John Yoswick

ber tackled topics ranging from better welding practices to OEM procedures and new ways of documenting increasingly detailed vehicle test drives. Toby Chess, an industry trainer who leads CIC’s “Technical Presentations” committee and who has conducted more than 6,000 I-CAR welding tests over 15 years, said at least five automakers – Ford, Toyota, Nissan, Honda and Audi/VW /Porsche – have OEM procedures with detailed instructions for performing destructive testing on plug welds and spot welds prior to weldSee CIC Committees, Page 12

VT Second State to Sound Alarm About Photo Estimates for Claims by Jim Sams, Claims Journal

Another state insurance commissioner is warning auto insurers about the overuse of photo estimates when making settlement offers. Vermont Insurance Commissioner Michael Pieciak issued a bulletin to “clarify the division’s position regarding the use of visual adjusting.” “While virtual claims adjustment systems may, in some situations, help settle claims more quickly and reduce costs for the insurer, there is compelling evidence that photographs and videos do not always reveal the true

extent of the damage a vehicle has sustained,” the bulletin says. Oregon Insurance Commissioner Andrew Stolfi issued a similar draft bulletin in October. Just as reported by Oregon, Pieciak said Vermont has seen an increase in consumer complaints alleging that virtual adjustments unreasonably delay the settlement of claims or result in inadequate settlement offers. The Vermont bulletin reminds insurers that they are required to “conduct a reasonable investigation based upon all available evidence.” See Photo Estimates, Page 20

There are an increasing number of vehicles on the road today with Advanced Driver-Assistance Systems (ADAS). As the percentage continues to rise, the greater the demand will be for calibration to ensure a proper repair, said Lee Daugherty, vice president of global collision sales for Chief Collision Technology. To help meet this growing industry need, Chief Collision Technology teamed up with Burke Porter Group to create ADAS calibration equipment. After two years in development, Mosaic Advanced Diagnostics Technology (ADT) was launched in November at the SEMA show in Las Vegas. “When a vehicle is in a collision, its attributes change,” said Daugherty,

who has worked with Vehicle Service Group, Chief’s parent company, for the past 24 years. “The goal of an ADAS calibration is to reorient the

Lee Daugherty, vice president of global collision sales for Chief Collision Technology. Credit: Chief Collision Technology

sensors to where the physical body of the vehicle is in relation to the drivetrain and how it goes down the road.” See Retain Employees, Page 18

Happy

Holidays From AUTOBODY

Needed Update of MA Right to Repair Law Headed to Ballot The Massachusetts Right to Repair Coalition announced that it has turned in 102,000 signatures to ensure an initiative petition to enact a much-needed update to the Commonwealth’s Right to Repair law reaches the 2020 ballot. The Coalition–a group of Massachusetts independent repair shops, auto parts stores, trade associations, consumers, and drivers—said that a lack of progress on an update to the law in the Legislature led them to

pursue an initiative petition so that Massachusetts car owners will continue to have access to the repair and diagnostic mechanical information produced by the vehicle they own. By 2020, advancements in vehicle technology and increasing restrictions by automakers will result in more than 90% of new cars being equipped to transmit real-time diagnostic and repair information wireSee Repair Law, Page 16

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JANUARY 2020 AUTOBODY NEWS / autobodynews.com


CONTENTS AASP/NJ Sponsors CREF’s NJ Career Fair . . . . 14 ARA-NJ’s 2019 Membership Meeting Focuses on Networking. . . . . . . . . . . . . . . . . 6 Axalta Innovates From a R&D Center in PA . . . . 8 CCCTC Students Earn ASE Certification . . . . . . 11 Central Massachusetts I-CAR Committee Hoists an Axe for CREF . . . . . . . . . . . . . . . . . 8 Firefighters Battle Blaze at Body Shop in Warwick, NY . . . . . . . . . . . . . . . . . . . . . . 19 Harr Motor Group Fined $17K for Worcester, MA, Pollution . . . . . . . . . . . . . . . 22 Hertrich Adds Its 21st Location With

Autoliv Introduces Airbag That Prevents Passengers From Colliding . . . . . . . . . . . . . 55

AUTOBODY

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Automotive Industry Faces Disruption Driven by Societal Changes. . . . . . . . . . . . . 44 Car-Part.com Receives Company of the Year Award . . . . . . . . . . . . . . . . . . . . . . 60 Chrysler Lawsuit Involving Leaky Sunroofs Seeks Settlement . . . . . . . . . . . . . . . . . . . . 63 CIC Committees Offer Ideas for Better Welding Practices, Documentation of Test Drives . . . . 1 Driven Brands Acquires Clairus Group . . . . . . . 20 Ford ‘Death Wobble’ Lawsuit Says F-250 and F-350 Trucks Affected . . . . . . . . . . . . . 55

INDEX OF ADVERTISERS

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano, Kelly Hall (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Alexis Wilson Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

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. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.comx

Accudraft Paint Booths. . . . . . . . . . . . . . . . . 64

Matrix Automotive Finishes . . . . . . . . . . . . . . 7

Acura of Westchester . . . . . . . . . . . . . . . . . . 16

Mazda Wholesale Parts Dealers . . . . . . . . . . 52

American Innovative Manufacturing-AIM . . . 22

McGovern Chrysler-Jeep-Dodge-Ram . . . . . . 6

Audi Wholesale Parts Dealers. . . . . . . . . . . . 49

Mercedes-Benz of Atlantic City. . . . . . . . . . . 25

is Changing. . . . . . . . . . . . . . . . . . . . . . . . . 56

AutoNation Collision Parts . . . . . . . . . . . . . . . 5

Mercedes-Benz of Fort Washington . . . . . . . 25

Headed to Ballot . . . . . . . . . . . . . . . . . . . . . . 1

GM CCA Grows My GM Partner Perks . . . . . . . 59

Axalta Coating Systems . . . . . . . . . . . . . . . . . 2

Mercedes-Benz of Paramus . . . . . . . . . . . . . 41

NH House Rep Pre-Files Glass Calibration Bill . . 11

GM, Isuzu to Create 100 Jobs at Ohio Plant. . . 28

Bical Auto Mall . . . . . . . . . . . . . . . . . . . . . . . 27

Mercedes-Benz of West Chester . . . . . . . . . 25

NORTHEAST 2020 Pre-Registration Opens . . . 16

Industry Veteran Shares Insight About Future

BMW Wholesale Parts Dealers . . . . . . . . 42-43

Mercedes-Benz of Wilmington . . . . . . . . . . . 51

Cadillac of Mahwah . . . . . . . . . . . . . . . . . . . 46

Mercedes-Benz Wholesale Parts Dealers . . . 57

Car-Part.com . . . . . . . . . . . . . . . . . . . . . . . . 29

MINI Wholesale Parts Dealers. . . . . . . . . . . . 44

Central Avenue Chrysler-Jeep-Dodge-Ram . 13

Mirka USA, Inc . . . . . . . . . . . . . . . . . . . . . . . 11

Certified Automotive Parts Association . . . . . 12

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

Cherry Hill Dodge-Chrysler-Jeep-Ram . . . . . 26

New Holland Ford. . . . . . . . . . . . . . . . . . . . . 55

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . 62

New Holland Toyota . . . . . . . . . . . . . . . . . . . 28

Colonial Automotive Group . . . . . . . . . . . . . . 39

Nielsen Ford. . . . . . . . . . . . . . . . . . . . . . . . . 47

Courtesy Mitsubishi . . . . . . . . . . . . . . . . . . . 48

Nissan/Infiniti Wholesale Parts Dealer . . . . . 60

Criswell Chrysler-Jeep-Dodge-Ram . . . . . . . 10

Northstar Kia . . . . . . . . . . . . . . . . . . . . . . . . 20

Dent Fix Equipment . . . . . . . . . . . . . . . . . . . . 9

Nucar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

ECS Automotive Concepts . . . . . . . . . . . . . . 34

Porsche Wholesale Parts Dealers . . . . . . . . . 59

Empire Auto Parts . . . . . . . . . . . . . . . . . . . . 24

SATA Dan-Am Company. . . . . . . . . . . . . . . . 21

Equalizer Industries, Inc . . . . . . . . . . . . . . . . . 8

Schultz Ford. . . . . . . . . . . . . . . . . . . . . . . . . 30

Ford Wholesale Parts Dealers . . . . . . . . . . . . 58

Security Dodge-Chrysler-Jeep-Ram . . . . . . . 18

GM Wholesale Parts Dealers. . . . . . . . . . . . . 45

Spanesi Americas . . . . . . . . . . . . . . . . . . . . 14

Honda-Acura Wholesale Parts Dealers . . 32-33

Subaru Wholesale Parts Dealers. . . . . . . . . . 54

Hyundai Wholesale Parts Dealers . . . . . . . . . 56

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Infiniti of Norwood . . . . . . . . . . . . . . . . . . . . 50

Tasca Automotive Group. . . . . . . . . . . . . . . . 31

Innovative Tools & Technologies, Inc. . . . . . . 15

Toyota Wholesale Parts Dealers . . . . . . . . . . 52

Jaguar Land Rover Cherry Hill . . . . . . . . . . . 19

VIP Honda . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Kia Motors Wholesale Parts Dealers . . . . . . . 53

Volkswagen Wholesale Parts Dealers . . . . . . 61

Kia of Attleboro . . . . . . . . . . . . . . . . . . . . . . 48

Westbury Jeep-Chrysler-Dodge-Ram-SRT . . 23

2020 Models, Cut Back Hours . . . . . . . . . . . 63

Kundert Volvo. . . . . . . . . . . . . . . . . . . . . . . . 38

White Plains Volkswagen . . . . . . . . . . . . . . . 28

US Senator Wants Tesla Autopilot Disabled . . . 54

Long Automotive Group . . . . . . . . . . . . . . . . 35

Yonkers Kia . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Chevy Dealership in Dover, DE. . . . . . . . . . . 10 Local BOCES Student & Teacher Receive National Recognition . . . . . . . . . . . . . . . . . . 22 Needed Update of MA Right to Repair Law

NY Cop, Nurses, 911 Operators Charged in $18 Million Insurance Swindle. . . . . . . . . 20 Ray’s CARSTAR Celebrates 30th Anniversary Milestone . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Stamford, CT, Resident Accused of Breaking Into Car at Norwalk Body Shop . . . . . . . . . . 28 VT Second State to Sound Alarm About Photo Estimates for Claims . . . . . . . . . . . . . . 1

Ford Mustang Mach-E Unveiled as Electric Muscle-SUV . . . . . . . . . . . . . . . . . . 24 Glass Installation and ADAS – The Game

of Collision Repair Industry . . . . . . . . . . . . . 26 Jan. 21 CIECAst Webinar Announced. . . . . . . . 14 Mazda Recalls Vehicles Over Takata Airbags . . 54 Mirka AROS-B Named Global Media Award Winner . . . . . . . . . . . . . . . . . . . . . . . 52 Mosaic ADT Created to Achieve Repeatable, Error-Free Calibrations . . . . . . . . . . . . . . . . . 1 Shops Report More Success in Getting Paid for Frame, Mechanical Procedures . . . . . . . 50

COLUMNISTS Anderson - Reflecting on My Journey in the Collision Repair Industry . . . . . . . . . . . . 41 Ledoux - The 1980s – The Advent of the Unibody . . . . . . . . . . . . . . . . . . . . . . . . 29 Sisk - Collision Repair Industry Associations Make 2020 New Year’s Resolutions. . . . . . . 47

Should Tesla Carry the Burden of Teaching the Public About Artificial Intelligence? . . . . 28 Solving the Tech Shortage: How Conditions, Culture & Compensation Can Help Body Shops Attract & Retain Employees . . . . . . . 34 Subaru Forester Passenger Airbag Sensor Lawsuit Filed . . . . . . . . . . . . . . . . . . . . . . . 60 Tesla Cybertruck Pickup Makes Its

NATIONAL AAPEX 2020 to Expand With Repair Shop HQ . . 63 Another 1.4M Vehicles Added to Takata Airbag Recall. . . . . . . . . . . . . . . . . . . . . . . . 59 ASA Wage & Hour Attorney Discusses Overtime Exemptions . . . . . . . . . . . . . . . . . 38

Public Debut . . . . . . . . . . . . . . . . . . . . . . . . . 4 Tesla Model 3 Driver Ignores Road, Crashes Into Police Cruiser . . . . . . . . . . . . . . . . . . . . . 4 Three Weeks After GM Strike, Dealers Await

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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Tesla Cybertruck Pickup Makes Its Public Debut by Simon Alvarez, Teslarati.com

Tesla has revealed its highly-anticipated pickup truck to the public, and it is every bit the monster that CEO Elon Musk has made it out to be. With its aggressive stance, high ground clearance, and massive frame, the Tesla’s Cybertruck is quite a sight to behold. DESIGN The Tesla Cybertruck does not look like a traditional pickup. True to Musk’s words, the vehicle does look like a futuristic armored personnel carrier that stepped out of the set of Blade Runner. Its straight sloping roof give the pickup a streamlined yet unique look. As the Tesla CEO

Credit: Tesla

has stated in the past, the Cybertruck won’t look like any other pickup on the road today. That being said, there are several key design aspects that are notable about the Cybertruck. These include its extremely angular body, its large bed, and its high ground clearance. The Cybertruck

also has a thick stainless-steel body, which Tesla demonstrated by having a sledgehammer hit the pickup’s door panel. The vehicle is also fitted with Tesla’s Armor Glass, which un-

Credit: Tesla

fortunately cracked after a large steel ball was thrown at it onstage. The metal ball didn’t go through the glass though, which is a plus. SPECS Tesla has pretty much mastered the art of keeping the specs of its upcoming vehicles’ secret. As it turns out, the Cybertruck’s performance figures are worth the secrecy, as they are flat-out insane. The vehicle is equipped with a standard single motor and can be upgraded to dual and tri-motors. Just as Musk said, the Cybertruck, despite its size, is quite nimble, thanks to its instant torque and four-wheel steering. These ultimately allow the Cybertruck to hit 60 mph in just 2.9 seconds, with handling comparable to a Porsche. Here are other notable specs of the Tesla Cybertruck:

• 250+, 300+, and 500+ miles of range; • 3500 lbs payload; • Towing rating between 7.5k to 14k lbs; • 250 kW charging; • Off-road performance with 35 degrees approach angle, up to 16″ clearance, and 28 degrees departure angle; and • 100 cubic feet of exterior storage.

SPECIAL FEATURES Pickups are utility vehicles by nature, and as such, they are used primarily for work on locations such as farms or construction sites. Luxury pickups exist that prioritize comfort over utility, but Tesla’s monster pickup has chosen to do both. The interior of the Cybertruck is classic Tesla in the way that it’s minimalist and airy, with plush seats and a massive touchscreen that’s op-

Credit: Tesla

timized for work and even entertainment. This, however, is only the tip of the iceberg when it comes to the pickup truck’s notable features.

Tesla Model 3 Driver Ignores Road, Crashes Into Police Cruiser by David A. Wood, CarCompaints.com

A Tesla Model 3 driver who crashed into a parked police vehicle and then hit a disabled car says he was checking on his dog in the rear seat when the crash occurred. As in multiple Tesla crashes, instead of paying attention to the road and surroundings, the Model 3 driver said he had Autopilot engaged and didn’t notice the flashing lights on two police cruisers. According to the Connecticut State Police, the crash occurred in the early hours of Dec. 7 when officers with Troop GBridgeport responded to a disabled vehicle on Interstate 95 in Norwalk. The stationary vehicle was sitting in the left center lane with the troopers parked behind the disabled vehicle, lights flashing, and a pattern of flares placed behind the patrol cruisers. 4

While the officers were waiting for a tow truck, the 2018 Tesla Model 3 slammed into the rear of one cruiser and then hit the disabled vehicle. The Tesla continued to travel slowly before being stopped several hundred feet ahead by the second trooper at the scene. The driver said he had Autopilot engaged and was checking on his dog in the back seat when the crash occurred. State police cited the Tesla driver for misdemeanor reckless driving and reckless endangerment, and Tesla hasn’t released information concerning logs that would indicate if Autopilot was indeed engaged. Even though the license plate said, "MODEL3," the driver must not have paid attention to the owner’s manual which says to keep your hands on the steering wheel and your eyes on the road when Autopilot is activated.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

But the Connecticut driver joins other Tesla owners who believed driver-assist technology equals a fully driverless car. Based on the Connecticut crash and other crashes allegedly involving Autopilot, drivers who should have common sense chose to deactivate it when Autopilot was activated. Multiple examples abound, including the unfortunate death of Joshua Brown who was killed when his Tesla traveled straight into a tractor-trailer. There is also the Model X driver who didn’t prevent the vehicle from traveling across highway lane markers and crashing into a construction barricade. Or the Model S driver who let the car crash into a firetruck while she looked at her cell phone, or a different driver who was behind the wheel when the vehicle slammed into a firetruck. Then there is the Chinese driver of a

Others include: • 110v/220v onboard outlets; • Full Self-Driving features; and • Autopilot as standard. PRICE Earlier this year, Musk has mentioned that the Tesla Cybertruck would start at $49,000 at the highest. Tesla has stayed true to its CEO’s words, pricing the futuristic pickup truck very

Credit: Tesla

aggressively compared to other EV trucks and ICE-powered luxury pickups. Tesla’s Cybertruck does have a number of higher-priced trims, and these cost substantially more, while offering significantly more. Here’s the complete pricing of Tesla’s Cybertruck depending on its trim. • Single Motor RWD – $39,900 before options; • Dual Motor AWD – $49,900 before options; and or • Tri-Motor AWD – $69,900 before options. We thank Teslarati.com for reprint permission. Model S who believed Autopilot would allow him to take his eyes off the road as his car crashed into another vehicle. In addition, a separate crash in China killed the driver who allegedly had Autopilot engaged when the car slammed into a street sweeper. His family said he put his faith in technology he believed would do all the driving. Another Tesla driver was killed when his Model X with Autopilot engaged slammed head-on into a concrete highway divider that could have easily been avoided if the driver would have been watching his surroundings. And in a crash of a Model S, the car plowed into a disabled car at 80 mph because the driver was looking at his cell phone, believing Autopilot would prevent the crash. We thank CarCompaints.com for reprint permission.


autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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ARA-NJ’s 2019 Membership Meeting Focuses on Networking by Chasidy Rae Sisk

On Saturday, Nov. 9, ARA-NJ hosted its 2019 membership meeting, beginning with a yard tour at Ace Auto Wreckers before moving the meeting to the VFW in East Brunswick, NJ. ARA-NJ President Rodney Krawczyk shared, “The meeting went very well. With around 60 attendees, our turnout was almost double what we had last year. This year, we decided to change the format a bit and make the meeting into more of a networking event, and I believe we had a lot of success with that.” “The meeting was well attended by industry professionals outside our state as well,” Krawczyk continued. “The president of ARA-NY came down, and so did the Rhode Island executive director. We were fortunate to have the director of member services from ARA National attend too. I’ve been heavily involved with the national association since I became president two years ago, and this industry is all about making relationships because that’s where the support comes from. Most automotive recyclers compete against each other, but they are willing to help

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each other at the drop of a hat – that’s what makes our industry so great.” The meeting’s agenda addressed a wide range of topics and issues impacting the local automotive recycling industry and included a legal

ARA-NJ’s 2019 membership meeting was well attended and provided an opportunity for industry professionals to network and learn about the issues impacting the local automotive recycling industry. Credit: ARA-NJ

update, a demonstration of EZ Suite, an environmental update, information on ARA’s member benefits, a discussion about air bag recalls, an insurance update, information about ARA-NJ’s new parts trading network, a roundtable discussion, plenty of networking opportunities, and a yard tour. “Yard tours allow members to see how other recyclers do things and possibly bring a few good

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

ideas back to their own facility about what they can change or add to enhance their process,” Krawczyk explained. Attendees responded favorably to the event. Krawczyk shared, “We received the most positive feedback from attendees. Everyone said it was the best meeting they’d been to. The meeting was very interactive and included videos from presenters that couldn’t attend as well as a couple people speaking, and then we had a two-hour networking event after the meeting. That’s where the biggest benefit of these things can be found – the true value is in meeting people that you sell or trade parts with which can enhance your relationship. The face-to-face opportunity is really awesome.” “Everyone was energized and reengaged in the state association as we explained the value of being a member and demonstrated what the association does for our members,” Krawczyk continued. “When I became president of ARA-NJ, I made the decision to engage recyclers one on one by reaching out to them via phone and email to try to get them more involved. It can be hard to get people engaged

because people get stuck in their box all day and miss out on the world around them, but I can’t stress enough how valuable these types of networking opportunities are.” The meeting also provided a lot of training and educational information, and ARA-NJ talked a lot about their goal of creating a centralized hub where automotive recyclers in the state can meet up to exchange parts. “It makes sense to band together to streamline the process since we have common interests, and our hub could benefit every single automotive recycler in our market and especially every member,” Krawczyk said. His goal is to fully launch the program on Jan. 1, 2020. ARA-NJ also plans to coordinate a grassroots lobbying effort and has begun educating local assemblymen about the automotive recycling industry. Krawczyk is pleased with ARANJ’s 2019 membership meeting and intends to hold two large member meetings next year to provide even more networking and educational opportunities for association members. For more information on ARA-NJ, visit aranj.org.


autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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Central Massachusetts I-CAR Committee Hoists an Axe for CREF by Chasidy Rae Sisk

On Nov. 14, the Central Massachusetts I-CAR Committee hosted its Inaugural Axe Tournament at Half Axe in Marlborough, MA, raising funds to support collision education programs through the Collision Repair Education Foundation (CREF). According to Joshua Fuller, committee chair, “We had over 30 industry participants attend, including paint companies, jobbers, parts vendors, equipment vendors, collision center owners and managers. We raised over $3,500 for the local schools. It was an all-around great event.”

Joshua Fuller prepares to launch an axe at the target. Credit: Greco Publishing

At the committee’s September meeting, the group was discussing possible event ideas, and I-CAR’s Paul Hill suggested axe throwing

since he had recently helped facilitate similar events for other groups. Fuller stated, “We started with an hour of networking and then proceeded to the axe throwing portion of the evening. We added in a little friendly competition with mini tournaments throughout. Everyone enjoyed the benefit of getting to know one another on a personal level, while also enjoying a spirit of collaboration for the future of our industry.” Although axe throwing provided an entertaining evening, the primary function of the event was to promote and support CREF because “the future of our industry is in the hands of these vocational school collision repair curriculums,” Fuller stressed. “As industry professionals, we’re struggling to keep up with changing technology, but that is multiplied when you consider the numerous challenges these high school programs face with limited budgets and resources.” The Central Massachusetts ICAR Committee is currently working with Worchester Vocational to help them obtain additional funding and an updated curriculum through ICAR and CREF. “They are often working with antiquated equipment

Axalta Innovates From a R&D Center in PA

and outdated guidelines on collision repair,” Fuller said. “Due to the number of revolutionary changes in the last three years, it can be challenging for schools to keep up.”

Axalta, a leading global supplier of liquid and powder coatings, celebrated the one-year anniversary of delivering new technologies to its customers around the world from its Global Innovation Center, the world’s largest research and development (R&D) center dedicated to coatings and color located in Philadelphia’s historic Navy Yard. “What we’re doing at the Global Innovation Center is really special– we’re innovating in Philadelphia and delivering new products that provide solutions for our customers all around the world,” said Robert Roop, vice president and chief technology officer, Axalta. The 175,000-square foot Global Innovation Center employs more than 200 engineers, scientists and technicians, and features unparalleled synthesis, color, process technology and specialty coatings labs. “Innovation is at the core of our business,” said Roop. “The innovations from this past year have been nothing short of impressive, and we look forward to continuing to introduce new, award-winning solutions that grow our customers’ businesses.”

Over 30 collision repair industry professionals attended the Axe Throwing Fundraiser hosted by the Central Massachusetts I-CAR Committee on Nov. 14. Credit: Greco Publishing

Fuller continued, “Collision repair is more technical and computerized — far different than it was years ago. Therefore, we need to provide as much guidance and assistance as possible to the facilities and instructors who are shaping our next generation of technicians.” The Central Massachusetts ICAR Committee plans to host their axe tournament annually and build upon it each year. The group also intends to explore future events, including a golf tournament in the spring.

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Hertrich Adds Its 21st Location With Chevy Dealership in Dover, DE by Mike Finney, Delaware State News

There has been a Chevrolet dealership sitting off U.S. 13 at the southern end of Dover, DE, since 1962, when Townsend Brothers Chevrolet was the only automobile dealer to occupy a spot off the highway, which is now crowded with lots and lots full of cars for sale. That location, at 1450 S. Dupont Highway, recently switched hands as the Hertrich Family of Automobile Dealerships purchased the business from Matt Kersey, who had previously purchased sole ownership of the dealership in October 2018. Townsend Brothers — a family business that began in 1930 — sold the Chevy dealership in May 2016 to AutoTeam Delaware. The Hertrich name is wellknown throughout Delaware and the Dover Chevy business, now operating under the name Hertrich Chevrolet of Dover, marks the 21st dealership in the Hertrich family. Fred Hertrich IV is excited to continue selling cars at a familiar spot in Dover. He added they also added their fifth collision center with the acquisition, which will be

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known as Hertrich Collision Center of Dover. “We are proud to welcome Hertrich Chevrolet of Dover and Hertrich Collision Center of Dover to our family,” Hertrich said. “This dealership has a long history as part of the Dover community, and we look forward to the opportunity to continue the dealership’s legacy. “We welcome aboard our new team members and thank the Chevrolet of Dover and collision center customers for the opportunity to service all of their vehicle needs.” Townsend Brothers Chevrolet opened in 1930 and underwent several moves over the years before landing at the location on U.S. 13 in 1962. Hertrich said the Dover community can expect the same great service that has been a staple of the store for the past 89 years. “We look forward to working with the dealership team to provide the best customer service possible to our customers,” he said. “World class customer service is what we expect of ourselves and it is what we want our customers to expect of us.” Hertrich is no stranger to the

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

Dover community as it has two other locations in Dover, Hertrich’s Capitol Lincoln Mazda and Hertrich Nissan. In addition, Hertrich brings with them years of experience in the automotive industry and a vast knowledge of the Chevrolet brand. Hertrich opened its first dealership in 1963 and Hertrich Chevrolet of Dover marks the fifth Chevrolet dealership in the Hertrich family, something Hertrich says is a great benefit for customers. “Having five Chevrolet dealerships allows us to have a wide range of inventory available to our customers, giving them more choices when they are searching for their new car,” he said. “We are excited to bring our experience with the Chevrolet brand to Delaware. Chevrolet has been a great partner to us for many years and look forward to continuing that relationship with this addition.” Hertrich also offers a popular certified pre-owned program, which provides a seven-year, 100,000-mile warranty on select used vehicles. The addition of Hertrich Chevrolet of Dover will also provide a greater selection of used vehicles in the Dover area, with Hertrich currently offer-

ing more than 1,200 used vehicles in total. In addition, Hertrich’s experience working with Chevrolet means customers can expect top quality service in the service department, with highly qualified technicians and ample parts to repair vehicles quickly. Hertrich Collision Center of Dover is also joining an already accomplished team of collision centers for the Hertrich Family with their Milford, Seaford, Bear and Denton (Maryland) collision centers all being rated as I-CAR Gold Class collision centers. The Hertrich Collision Center of Dover will work with all insurance companies and is outfitted with the most comprehensive equipment and tools to help get damaged cars back to new condition. “We are just excited for this new opportunity to grow and expand our presence in the Dover community” Hertrich said, “But most of all, we are excited to welcome our new team members and customers to the Hertrich Family.” We thank Delaware State News for reprint permission.


NH House Rep Pre-Files Glass Calibration Bill by Staff, glassBYTEs.com

A bill that aims to “[make] it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant’s vehicle is repaired in conformance with applicable manufacturer’s procedures” has been pre-filed in the New Hampshire House of Representatives. The bill would add the following text to the state’s law regarding automotive repairs: “ (a) If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting glass repair or replacement shall:

(1) Prior to approving or performing glass repair or replacement, inform the consumer if a calibration of that system is required and if such calibration will be performed; (2) If performing such calibration, meet or exceed the manufacturer’s procedures or specifications; and

(3) If a calibration was not performed or not completed successfully, inform the consumer that the vehicle should be taken to a vehicle manufacturer’s certified dealership, a qualified automobile glass company, repair facility, or other qualified repairer capable of performing the calibration of an advanced driver

assistance system that meets or exceeds the manufacturer’s procedures or specifications.

(b) If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting a scan or

calibration for motor vehicle repairs or replacement: (1) Shall not be limited to tooling or equipment dictated or recommended by the manufacturer’s procedures or specifications. (2) Shall calibrate an advanced driver assistance system meeting or exceeding the manufacturer’s procedures or specifications.

(c) If a repairer does not accept a paint and materials estimate proposed by an insurer, the insurer shall reimburse the repairer based on any thirdparty guidelines generally accepted by automobile repair shops and insurers, and used by the repairer.”

The bill was pre-filed in the New Hampshire House on Dec. 3 and is expected to be introduced officially on Jan. 8, 2020. Once it is introduced officially, it will be referred to the Commerce and Consumer Affairs Committee. We thank glassBYTEs.com for reprint permission.

CCCTC Students Earn ASE Certification by Staff, Gant Daily News

Students in the Collision Repair program at the Clearfield County Career & Technology Center (CCCTC) in PA recently earned their Automotive Service Excellence (ASE) certification. Students are required to pass the test with training, practice and indepth understanding of exam material.

(l to r) Benjamin Banghart, Jadelea Zahniser, Brycen Guthrie and Camron Brown. Credit: CCCTC

There are four certifications available for collision repair: painting and refinishing, non-structural analysis and damage repair, structural analysis and damage repair and mechanical and electrical components. We thank Gant Daily News for reprint permission.

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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Continued from Cover

CIC Committees

ing on a vehicle. Ford’s procedure, for example, is three pages long, with specifications for the size and shape the weld nugget should be based on the thickness of the metal being welded. Some automakers call for spot welding with the E-coat in place, Chess said, while others say it has to be stripped off. Also during the committee’s presentation in Las Vegas, Kye Yeung, owner of a Southern California shop, certified and specializing in high-end vehicles, said weld testing can be done using coupons, but that it’s important that the tests be done on comparable materials to what will be welded; he suggests using some of the damaged material removed from the vehicle or, if sectioning, using some of the excess material from the new part being installed. Yeung said electrical output can vary throughout the shop, so he suggests moving the vehicle – and doing the destructive test welds – in the area of the shop where you know there’s adequate power. He also said it’s a good idea for shops to have standardized operating procedures related to welding. “At our shop, we take the wire out of the welder after the repair,” he said. “So when a tech pulls up the procedure, he has to start from square one and not make the assumption that the welding wire that’s in the machine is for that job. It’s a process you should instill in your shop, even though it might take a little extra time. They could be getting a poor weld because they’re using the wrong material.” Yeung said his shop also holds “weld-off competitions,” with the winner receiving a free lunch. “It takes your A-techs who weld well, and your lower-skilled guys who are aspiring to do well, and allows them to do that comparison,” Yeung said. “It makes them practice during the week. It brings everybody up.” New Type of Vehicle Test Drive CIC’s “Emerging Technologies” committee has adopted a new definition of a “dynamic systems verification (DSV) road test,” in an effort to distinguish test drives done to check advanced driver assistance systems 12

(ADAS) with those more traditionally done just to verify standard vehicle performance, such as checking for wind noise, pulling conditions or vibrations. The DSV road test, according to the new definition, checks for those items but also requires “qualified shop personnel to identify and confirm performance of … advanced ve-

Scott Kaboos of American Honda discussed how OEM repair procedures are developed and tested. Credit: John Yoswick

hicle features and systems including driver assistance and safety systems, such as advanced cruise control and safety restraint systems.” The committee hopes to have the definition adopted and used by the automakers and estimating system providers. During the committee’s presentation at CIC in Las Vegas, Jake Rodenroth of asTech suggested that shops provide more documentation of what’s involved in such road tests. “How about you document the ‘in’ and ‘out’ mileage of the vehicle,” Rodenroth said. “How about you include a Google map of where you drove,” he added. “Uber gives us a little map of our trip on every receipt, yet we don’t do that when we do a road test. If you’re in L.A., maybe you had to get to the suburbs to meet the requirements for that road test. Explain that. What systems did you check? Tire-pressure monitoring, blind-spot monitoring, traction control? Explain what you did.” Failure to Follow OEM Procedures Can Be Costly Automaker repair procedures were the focus of another committee discussion at CIC in Las Vegas, including discussing how the procedures are developed and tested. Scott Kaboos, chief collision repair instructor for American Honda, said he was in Japan earlier this year and had an opportunity to see how the company’s body repair manual is written. Com-

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

puter simulations are used as the vehicle is being designed to consider, for example, how to address an area of a vehicle that will be inaccessible to a repairer needing to replace a spot weld. “If it can’t be spot-welded, we know that flange has to be wider so we can MIG braze it, or it has to be made of different materials so we can actually MAG weld it,” Kaboos said. “That kind of blew my mind when I saw it. I’ve been a technician all my life. I never thought that some manufacturer would be thinking about fixing this wrecked car two or three years before it’s built.” If the vehicle includes new materials or structure, or a sectioning procedure that hasn’t been tested and proven on other Honda vehicles, Kaboos said, more physical testing is done. “We actually do crush tests on those actual parts, and ultimately we end up with crash tests on vehicles.” Based on the discussion at CIC, collision shops – even dealership shops – that realize mid-repair that they failed to follow OEM repair procedures shouldn’t expect too much help from the automakers. John Eck

of General Motors (GM) said a dealership shop called GM because a technician had cut too far forward into a T1 truck, not realizing the automaker has a sectioning joint for the rear-end. “They said, ‘Now what,’ and I asked, ‘How much did you just buy that truck back for because it’s done,’” Eck said. “The technician had been chopping up trucks so long that he didn’t [research and learn] we actually made an easier repair process by putting a sectioning joint in the back so you could repair it in a more efficient, cost-effective manner, saving more vehicles by lowering the cost of repair. The technician made a big mistake that day. It would have been a simple one if he’d just looked at the procedures.” Mark Allen of Audi of America offered a similar experience about a shop – that had claimed it was I-CAR Gold Class and factory-trained by several European automakers, when it wasn’t – that made pulls to the all-aluminum rear structure of an Audi Q7. “That was about $86,000, because they cracked the cast-aluminum frame rails,” Allen said. “So, first, don’t misrepresent yourself. And second, follow the repair procedures.”


autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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AASP/NJ Sponsors CREF’s NJ Career Fair by Chasidy Rae Sisk

On Nov. 21, the Collision Repair Education Foundation (CREF) organized the New Jersey Area High School/College Transportation Career Fair at the Mercedes Benz Learning and Performance Center in Robbinsville, NJ.

AASP/NJ was one of the sponsors who supported CREF’s NJ Career Fair on Nov. 21, where association leaders urged students to join the association’s labor pool. (Pictured Left to Right: AASP/NJ President Jerry McNee, Executive Director Charles Bryant & Treasurer Tom Elder). Credit: Greco Publishing

AASP/NJ sponsored the event, alongside many other industry vendors and supporters.AASP/NJ Executive Director Charles Bryant stated, “We’re excited to help bring fresh blood into the industry.”

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“It’s important to have young people come in because [the industry] is changing,” he continued. “There are some who have been in this industry a long time who are not familiar with new procedures and don’t want to start over and learn again, so it’s great to see new faces coming in to learn the trade and pick up where older people are leaving off.” AASP/NJ’s Jerry McNee and Treasurer Tom Elder joined Bryant to talk to students who are interested in or considering a career in the collision repair industry. They talked to students who will be graduating soon about the association’s labor pool program, which matches potential employees with AASP/NJ member shops in need of skilled help, and they urged the upcoming graduates to join labor pool. Association leaders also had the opportunity to talk to students individually about the benefits of an automotive industry career during multiple breakout sessions. McNee stressed the need for qualified help in shops, explaining that opportunities will exist for students whether they pursue a collision or mechanical career since all collision shops

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

and dealerships need mechanics as well as collision technicians. McNee told students, “Every one of you will find a home. There is no question about it. AASP/NJ is

AASP/NJ President Jerry McNee addresses automotive students at the NJ CREF Career Fair. Credit: Greco Publishing

here to help you. We want to support you. There isn’t a shop in the state or country that is not looking for qualified technicians.” “You need to work hard at getting as much training and as many certifications as you can,” Elder added. “There is so much work out there, guys and girls. There’s plenty to do and there are good opportunities.” For more information on AASP/NJ and its activities, visit aaspnj.org.

Jan. 21 CIECAst Webinar Announced

CIECA announced its next CIECAst webinar: “It’s 2020: Where Are Claims & the Collision Repair Market Heading?” The webinar will be held on Tuesday, Jan. 21, 2020 at 11 a.m. CST and feature Sean Carey, president of SCG Management Consultants. During the one-hour live broadcast, Carey will talk about where claims and the collision repair market are heading over the next 12 months and beyond. In addition to sharing insight about what to expect, Carey will also discuss how to best prepare based on industry segment: independent shop, MSO, insurer, OEM or supply chain provider. Carey has more than 30 years of experience in the automotive industry. A mechanical engineer by trade, he worked at one of the largest parts distribution companies in the United Kingdom. He then joined Nissan where he created and managed its certified collision repair program.


autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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NORTHEAST 2020 Pre-Registration Opens On Dec. 2, AASP/NJ announced that pre-registration for NORTHEAST 2020 is now available online. AASP/NJ President Jerry McNee said, “Register now. It is the largest show of its kind and it is right in your own backyard. NORTHEAST is jam-packed with all the relevant products, training and information

evant and timely education available to the NORTHEAST show for all participants coming from near and far,” according to WMABA Executive Director Jordan Hendler. “We want to cover a variety of subjects that pertain to each key employee type in the repair shop - from front office to technician to owner. Not only is NORTHEAST the premier education event for the entire east

you can’t get anywhere else. It’s the best bang for your buck.” The 43rd installment of NORTHEAST is scheduled for March 20-22, 2020 at the Meadowlands Exposition Center in Secaucus, NJ. AASP/NJ has partnered again with the Washington Metropolitan Auto Body Association (WMABA) to provide the Collision Professional Repairer Education Program (Collision P.R.E.P.) during the nation’s largest regional automotive service trade show. “Every year, WMABA aims to bring the most rel-

coast as far as learning a lot in a short time, but it is also a great place to make new industry acquaintances who can strengthen your peer group. It’s important to revitalize your mind with the latest in technologies, processes and how to maintain that culture throughout the year,” Hendler continued. For more information about AASP-NJ, visit aaspnj.org. For more information about NORTHEAST or to pre-register, visit aaspnjnortheast.com

by Chasidy Rae Sisk

Continued from Page Cover

Repair Law

lessly to vehicle manufacturers, threatening the rights that Massachusetts car consumers enjoy today to choose to get their cars fixed at trusted independent repair shops or do the work themselves. “We need to update the Right to Repair law before wireless technologies remove the car owner’s right to get their vehicle repaired at our local, independent shop because the automaker would rather steer them towards one of their more expensive dealers,” said Alan Saks of Dorchester Tire Service. “This is a common-sense reform and we’d love to see the Legislature move forward and fix it so that we don’t have to go to the ballot to protect consumers’ rights to shop around for car repairs.” Massachusetts Right to Repair Coalition Director Tommy Hickey said, “Our independent shops are increasingly facing the prospect of having limited or no access to diagnostic and repair information now

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that automakers are restricting access through rapidly expanding wireless technologies in vehicles not covered under current law.” The ballot initiative would give car owners access only to the diagnostic and repair data generated by their car, and they could opt to provide access to any dealer, repair shop, or automaker that they choose during the lifetime of their car. The Coalition delivered its signatures to Secretary of State William Galvin’s office. The initiative petition filed is entitled An Initiative Law to Enhance, Update and Protect the 2013 Motor Vehicle Right to Repair Law. Further information may be found at massrighttorepair.org Obtained via PR Newswire.

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JANUARY 2020 AUTOBODY NEWS / autobodynews.com

Ray’s CARSTAR Celebrates 30th Anniversary Milestone Ray’s CARSTAR Auto Body, located at 137 Terryville Road, Bristol, CT, is proud to celebrate 30th year of business. Owner of this longstanding facility, Steve Merchant, has always enjoyed anything having to

Credit: Ray’s CARSTAR Auto Body

do with cars. With his dad owning the repair facility, Steve was able to start his career in the industry at the age of 15, sweeping floors and cleaning cars. “I was always determined to make this my career, because there really is nothing like taking a vehicle that has been damaged in a col-

lision and repairing it to become a road worthy,” said Merchant. At the age of 34, Merchant’s family-owned collision repair business joined the newly created CARSTAR network. Through all of these struggles, having the support of the CARSTAR community behind him is something Merchant has always valued. Growth in times of adversity, learning from past challenges and facing new opportunities with clear goals are some of Merchant’s most recognized attributes, helping him reach this 30th anniversary milestone. “We have some exciting times ahead of us here at Ray’s CARSTAR Auto Body, and I know we could not have made it to 30 years without the support of our community – so thank you, Bristol, Connecticut, for your continued trust and support,” said Merchant. For more information on CARSTAR, visit CARSTAR.com.

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Continued from Cover

Retain Employees

Currently, when repairing cars with ADAS technology, repairers either conduct a dynamic calibration that requires test driving a vehicle while it is connected to a scan tool, or a static calibration in a facility using specialized targets and equipment. Taking this into consideration, Daugherty said Chief Collision Tech-

nology and Burke Porter Group set out to offer repairers technologically advanced equipment to accurately and

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efficiently calibrate vehicles while following OEM requirements. Burke Porter Group provides assembly automation design, manufacturing and testing, as well as specialty equipment for both laboratory research and development, and production end-of-line (EOL) testing to OEMs. “The company has been a designer and supplier of end-of-line OEM factory calibration systems since the early 2000s,” said Daugherty. “They have footprints in all of the OE factories across the world. They are very knowledgeable and able to understand what’s coming before it hits the streets in the aftermarket.” “Together, we are addressing a significantly unmet need for safe and reliable calibrations as ADAS systems continue to quickly penetrate the market,” said David DeBoer, CEO of Burke Porter Group. “Mosaic ADT offers a cost-effective aftermarket solution using factory developed calibration technology to place vehicles on the

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

road safely.” Mosaic ADT can perform calibrations on both radar and vision systems. Prior to using the equipment, an operator is required to go through an online Chief training course to be

walk the operator through every step of what the OEM procedure says to do,” said Daugherty. Repairers then plug the tablet into the vehicle. Mosaic ADT gives a complete picture of the ADAS technologies that are part of that car, shows all of the OEM repair procedures associated with it and is automatically updated. This might include questions such as: Is the gas tank full? Did you check the tire pressure? Is the windshield clean? What is the ride height? Mosaic ADT gives a complete picture of the ADAS technologies that are part of the car and all of the All of the information is OEM repair procedures associated with it. Credit: stored in the cloud so there Chief Collision Technology is a vehicle repair history for instructed in not only how the equip- future reference. Daugherty said that ment works, but also educated on is a huge benefit for shops helping ADAS technology and why the cali- them maintain control of the repair bration process must be followed ex- and limiting their liability. “Not only can they document actly; only then is an access code that they repaired the car properly, provided to unlock the system. “Once the course is complete but they can also attach the informaand the technician provides attesta- tion to their estimating system,” he tion that he has followed the OEM said. Daugherty explained that the repair procedures to prepare the vehicle for calibration, the tablet will calibration process involves struc-


position, the system automatically places the target at the correct height, width and distance. All of the verification, alignment of the target and calibration of the sensors can be done in about 20 minutes, which Daugherty said allows for repeatable, error-free calibrations. “What we’ve tried to do is take out as much human error as possible,” he said. Each time a calibration is conducted, a virtual, live diagnosis is performed remotely by an ASE-certified technician using an OEM scan tool. Chief Collision Technology showcased Mosaic Advanced “We’re very excited to Diagnostics Technology (ADT) during SEMA 2019 in Las be able to bring to the inVegas. Credit: Chief Collision Technology dustry a system that we beWith most systems, repairers lieve helps shops properly calibrate must manually adjust the target. vehicles,” said Daugherty. “With the Daugherty said this can be a very la- ADAS technology in these vehicles, borious process and can often take being able to have properly trained one to three hours, which slows down technicians understanding a complex process is a challenge and the more a shop’s cycle time. With Mosaic ADT, the system you can simplify that for the techniautomatically finds the centerline of cian, the better results are you are the vehicle and adjusts the sensors. going to have.” For more information, visit https: Once an operator positions a car within 100 mm of the target’s proper //chieftechnology.com/mosaic/. turally aligning the car and drivetrain as well as orientating the sensors. “No matter whose system you use, the position of the vehicle in relationship to the target is absolutely critical,” he said.

Firefighters Battle Blaze at Body Shop in Warwick, NY by Staff, Warwick Valley Dispatch

Warwick firefighters battled a blaze on Sun., Nov. 17 around 7 p.m. at the Warwick Valley Auto Body, located at 73 Main St. in Warwick, NY. Warwick Fire Department Chief Phil Cialella said a neighbor in the house behind the auto body shop noticed smoke coming from the building.

ported. There were several vehicles inside the shop. Cialella said the business sustained damage from smoke as well as from the water

Firefighters battle a fire at Warwick Auto Body, located at 73 Main St. in Warwick, NY. Credit: Warwick Valley Dispatch

Firefighters work diligently to put out a fire at the Warwick Auto Body. Credit: Warwick Valley Dispatch, Lourice Angie

According to Chief Cialella, the fire started in a heating unit attached to the ceiling of the repair shop. No one was in the building at the time and no injuries were re-

used to put out the flames. Approximately 40 firefighters were on scene. Mutual aid was provided by Warwick EMS and fire companies from Florida, Pine Island, Greenwood Lake, Chester, and Monroe, NY. We thank Warwick Valley Dispatch for reprint permission.

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Continued from Cover

Photo Estimates

“Insurers may not deny a claimant’s request for an in-person inspection by a licensed adjuster,” the bulletin says. “Unreasonable delays may be a violation of Section 4724(9)(F), which requires prompt settlement of claims when liability is reasonably clear.” The bulletin provides another reason for carriers to avoid over reliance on virtual adjusting: In total loss claims, carriers may not make deductions for costs such as vehicle reconditioning and tune-up “unless those deductions are justified and detailed as a result of an actual inspection by a licensed adjuster or appraiser.” “It’s the department’s position that the words ‘actual inspection’ require an in-person inspection by an adjuster or appraiser rather than the use of virtual evidence such as photographs or videos,” the bulletin says. Complaints about photo estimates led the state of Rhode Island to ban their use for large claims in a bill passed earlier this year. Senate Bill 849, signed into law by Gov.

Gina Raimondo on July 2, requires insurers to use licensed appraisers to physically inspect damages and prohibits estimates based on pictures for claims where losses exceed $2,500. Photo estimates are derided by autobody repair shop owners. A quick internet search leads to numerous blogs warning consumers not to accept any settlement offers based on photographs because photographs don’t reveal hidden damage. Nonetheless, the use of photo estimates has grown rapidly, according to research by Mitchell International, a San Diego-based firm that provides claims administration services. Mitchell said in a September 2018 report that photo estimates were used in 14.6% of the auto claims in Mitchell’s assignment database in 2017, up from 0.2% in 2013. The share of photo inspections jumped by ten times in 2016, Mitchell said. Mitchell said the technology has an obvious drawback. When photo estimates are used, supplemental reports reveal much more work needs to be done, compared to estimates prepared by an in-person field inspection. From 2013 to 2017, sup-

plemental reports from a photo estimates resulted in supplements that were 67.4% higher, on average, than the original estimate, according to Mitchell. That compares to 36.9% more than the original inspection for estimates done by field inspections. Still, Mitchell said photo-based estimating is a cost-effective tool for carriers. “While the supplement rate is higher than other channels, PBE does provide for a productive means of determining damages,” the report says. “Estimator productivity is typically increased substantially, from three to four field appraisals per day to more than 15 to 20, as well as reducing expenses associated with staff appraisers’ travel.” We thank Claims Journal for reprint permission. Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today! AUTOBODY

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More than two dozen people – including a New York City police officer and five 911 operators – have been charged in connection with an $18 million insurance scam. Authorities said that the fraud compromised the personal data of 60,000 auto-accident victims and exploited people from low-income neighborhoods, according to a report by local news affiliate WABC. The NYPD officer, Yaniris “Jen” Deleon, has been accused of providing confidential information about accident victims to people who committed insurance fraud in exchange for payment, WABC reported. The five 911 operators face similar accusations, as do several nurses. Prosecutors said that the alleged scammers exploited no-fault insurance laws by using confidential information to contact accident victims under false pretenses. The defendants then allegedly steered the victims to specific medical clinics and lawyers who paid kickbacks 20

for referrals, WABC reported. Authorities said that the defendants received about $3,000 per referral. The scammers allegedly made about 6,000 referrals over the course of the scam, which began in 2014 – totaling about $18 million.

“The nature of this fraud and bribery results in higher insurance premiums and unnecessary medical costs, which impacts us all,” Westchester County, N.Y., District Attorney Anthony Scarpino said in a statement. “Hopefully, this prosecution will act as a deterrent to those who seek to profit illegally by gaming the system.” We thank Insurance Business Magazine for reprint permission.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

Driven Brands, North America’s leading group of automotive aftermarket brands, announced its acquisition of the Quebec-based Clairus Group (Clairus), a fast-growing, vertically-integrated leader in automotive glass distribution, replacement, and claims management. The move adds 240 physical service locations, over 330 mobile locations, 22 distribution centers, and a claims management platform to the Driven Brands portfolio. “We are thrilled to welcome the Clairus Group into the Driven Brands family. It’s a terrific platform offering great sought-after expertise,” said Jonathan Fitzpatrick, CEO of Driven Brands. In 2018, a U.S. based private equity firm became majority partner with Uniban Canada and PH Vitres d’Autos, to establish the Clairus Group, the second largest vertically integrated automotive glass and claims management provider in North America. Since affiliates of Roark Capital acquired Driven Brands in 2015, it has executed more than 30 acquisitions, including Clairus.

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Local BOCES Student & Teacher Receive National Recognition by George Stockburger, mytwintiers.com

Samantha Welch, a Bradford, NY, Central School District senior in the auto body repair program at the Schuyler-Steuben-Chemung-TiogaAllegany Board of Cooperative Educational Services (GST BOCES), was selected as this year’s “Collision Student of the Year” by the Collision Repair Education Foundation (CREF).

Credit: Bradford Central School District

Her instructor, Brian McDonnell, was selected as the “Collision School Instructor of the Year.” Both received a trip to SEMA 2019 in Las Vegas, where the pair were honored at the Education Foundation’s Nov. 5 reception. The SEMA Show is the world’s premier automotive trade show that features more than 2,400 exhibiting companies and attendees

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from all over the world. Welch was nominated for the honor by McDonnell. “Sam has all the admirable qualities one would want as a student or employee” he said in his nomination letter to the Foundation. “She is incredibly hard working and never hesitates to help her fellow classmates or myself.” McDonnell was nominated by fellow teachers and his campus principal. “Brian is, in my opinion, a truly gifted educator,” said GST BOCES Culinary Arts Instructor Burt Beebe. “He quickly develops good rapport with his students, establishes solid routines and employs consistent and fair practices in his classroom. Brian is an example of a teacher who focuses on the future of his students. He teaches the most current technologies in his industry.” The CREF, founded in 1991, is a not-for-profit organization dedicated to supporting collision repair educational programs, schools and students to create qualified, entrylevel employees and connect them with an array of career opportunities. We thank mytwintiers.com for reprint permission.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

Harr Motor Group Fined $17K for Worcester, MA, Pollution by Thomas Grillo, Worcester Business Journal

The Massachusetts Department of Environmental Protection has fined Harr Motor Co. for violating the air pollution and hazardous waste regulations at two Worcester, MA, facilities. Following a complaint of smoke and odor at its auto body shop on Glennie Street, MassDEP inspectors reported one of the company’s waste oil space heaters was malfunctioning and causing air pollution in the neighborhood. Additionally, the company failed to have state and local fire department approvals for the space heaters at the repair shop and at its dealership on Gold Star Boulevard. The company was illegally transporting waste oil without a license between two of their facilities,

DEP said. Under a consent order, Harr agreed to pay a $17,021 penalty and corrected the violations. Mark Saraceno, the company’s fixed operations director, did not return a call seeking comment. Mary Jude Pigsley, director of MassDEP’s Central Regional Office in Worcester, said waste oil is considered hazardous waste and must be managed in accordance with regulations to prevent impacts to the environment and human health. MassDEP is responsible for ensuring clean air and water, safe management and recycling of solid and hazardous wastes, cleanup of hazardous waste sites and spills, and the preservation of wetlands and coastal resources. We thank Worcester Business Journal for reprint permission.

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Ford Mustang Mach-E Unveiled as Electric Muscle-SUV by Aaron Turpen, New Atlas

Two vehicle monikers at Ford have heavy cache: Mustang and Mach. Often put together throughout the past half-century, the names always denoted fast ponies. Ford has again put the names together, this time on an all-electric offering called the 2020 Mustang Mach-E.

The new Ford Mustang Mach-E will be officially launched next year. Credit: Ford

Teased last month, the vehicle will add something new to the Mustang lineup: a four-door SUV that rides purely on electrons. The MachE is slated as a 2020 model and will enter showrooms late that year. The new electric vehicle has muscle to match its iconic names, and enough range to make it useful. It’s also rearwheel drive by default, an unusual trait for an EV. Upon its unveil, it was clear that the new Mach-E was designed with two ideals: living up to the Mustang name and matching visual cues with the performance promised therein. The Mach-E has a clear sport activity vehicle (SAV) design as its motif, akin to that found in the MercedesBenz GLE Coupe models and the BMW X4. Ford plans to offer the Mustang Mach-E in several variants, including a standard (75.7 kWh) and extended-range (98.8 kWh) option, and with rear-wheel or all-wheel drive. The standard AWD model will have 332 horsepower (247.5 kW) and will be quicker, Ford claims, than the Porsche Macan series.

Featured in the Mach-E are options such as the all-new Brembo Flexira aluminum brake calipers and Ford’s MagneRide suspension damping system. Drive modes include Whisper, Engage, and Unbridled (similar to “Comfort, Sport, and Track” in the Mustang coupe). Ford has utilized its interior sound damping and enhancement expertise in the Mach-E, adding “sounds tuned for an authentic all-electric experience.” Inside the new Mustang EV is a large tablet-sized infotainment interface that showcases Ford’s newgeneration SYNC system. SYNC’s 15.5-inch screen utilizes machinelearning technology for improved user experience over time, over-theair updates, and tablet-like control with gestures. If any of that sounds familiar, it’s because something much like it has been featured in one of Ford’s competitors located not all that far from the Los Angeles-area unveiling site for the Mach-E.

In extended-range all-wheel-drive configurations, the Mustang Mach-E is targeting 332 horsepower and 417 ft-lb of torque. Credit: Ford

The Mustang Mach-E features both a coupe-style hatchback cargo space and a frunk under its hood. The former has 29 cubic feet of space (rear seats up) and 59.6 cubic feet with the rear seats folded (821 and 1,688 liters). The frunk has 4.8 cubic feet (136 liters) of space in a drainable tub that can house more than just luggage. Ford says it can be used as

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an ice box for ice and drinks when headed to the game or the beach. Charging times for the new Mustang EV will range from 22 to 32 miles (35 to 51 km) per charging hour (240-volts) with the on-board charging unit or Ford-recommended

The Mach-E’s drainable front trunk storage unit has 4.8 cubic feet of storage space. Credit: Ford

home charging unit. The home unit is a team-up with Amazon Home in order to make installation easier. Ford states that the total range per charge is an EPA-estimated 210 miles (338 km) for the standard model with AWD, 230 (370 km) for the RWD, and 210 to 300 (482 km) for the Pre-

mium model with standard vs extended range, respectively. The Mustang-E also accesses the FordPass Charging Network with more than 12,500 stations (over 35,000 plugs) in the US, including DC fast chargers. With a 150-kW charging rate available, the Mach-E can receive up to 47 miles (76 km) of range in ten minutes or go from 10-percent to 80-percent charge in 38 minutes. Should the need arise, the automaker has trained 2,100 Ford dealerships and 3,500 technicians nationally to support EVs like the Mustang Mach-E. The Mustang Mach-E is open for reservation online. Deposits sit at $500 and can be made on a special limited First Edition model featuring extended range and AWD and special badging and trim cues. The GT models will be available in early 2021. Ford has not announced pricing, but promises that will come closer to the vehicle’s launch date in 2020. We thank New Atlas for reprint permission.


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Industry Veteran Shares Insight About Future of Collision Repair Industry by Stacey Phillips

During a recent VeriFacts Guild 21 webinar, industry veteran James Spears talked about the future of the collision repair industry. Spears, an insurance and automotive consultant and founder of Spears Consultant Group, talked about the largest autonomous and connected car testing facility in the country, the impact of artificial intelligence (AI) and the OEMs’ involvement in First Notice of Loss (FNOL) reporting. Throughout his 30-year career, Spears has assisted the top ten property and casualty providers across the country. His experience includes leading the USAA Auto Experience and the USAA Global Auto Physical Damage operations and strategy. Prior to that, he headed the Strategic Initiatives team at Farmers Insurance and worked for Nationwide Insurance. Currently, he assists the American Center for Mobility as well as a number of other clients and is a member of the Board of Trustees for the Collision Repair Education Founda-

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tion (CREF). The following is a summary of Spears’ comments during the webinar, which was facilitated by professional speaker and consultant George Avery.

Avery: As an advisor and consultant for the American Center for Mobility, can you tell us about the organization? Spears: The American Center for Mobility (ACM) was established about 18 months ago. It is the largest and most sophisticated autonomous and connected car testing facility in the country. Located near the Detroit airport, the center is built on more than 500 acres at the Willow Run site in Southeast Michigan. This is where bombers were built for WWII. Hundreds of millions of dollars have been put into building the tremendous facility. Supporters include the State of Michigan, the University of Michigan, Michigan Department of Transportation, Subaru, Hyundai, Ford, Toyota, Intertek and Microsoft.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

The mission of the organization is to enable the rapid, safe development and deployment of future transportation systems by offering leading programs in testing, standards, and education as a national technology innovation center.

the Insurance Institute for Highway Safety (IIHS) provide star safety ratings; however, there are no such ratings when it comes to ADAS platforms. The two organizations have different focuses. The American Center

The American Center for Mobility (ACM) is the largest autonomous and connected car testing facility in the country. Credit: Guild 21

The facility focuses on testing vehicles with Advanced Driver-Assistance Systems (ADAS). You might be surprised to hear that these technologies perform differently on models. They do not all stop the same or act the same. A lot of consumers believe ADAS technologies are all equal, but some far outshine others. We’re very fortunate to have

for Mobility is where manufacturers and tier one, two and three parts suppliers test their equipment during the development stage. In contrast, IIHS conducts testing once the equipment is already in vehicles. I think our industry needs to align with the American Center for Mobility. We currently don’t have any collision repairers or insurance


companies that are represented, and they can really have an impact on the vehicles before they go to market. I encourage collision repairers to reach out for more information: https://www.acmwillowrun.org/.

Avery: How is the use of Artificial Intelligence (AI) impacting the collision repair industry?

Spears: We’re now seeing AI being used in a number of ways, such as the appraisal process. I hope we’ll continue to see a shift using AI technology in the blueprinting of appraisals. However, I’m concerned about how claims are adjusted and protecting the consumer. When breaking the vehicle down, we need to make sure we cover all the components that are important after an accident and ensure the customer’s car is repaired properly. We might also start using AI with the parts ordering process so shops can order major components quickly. I’m fortunate to work with a company that uses AI to generate prospects over social media. I rec-

ommend that shops take a closer look at using AI in their businesses and reach out to companies that specialize in this area to help find customers in an unconventional fashion. I don’t believe we’ll be 100 percent reliant on AI software in the future; however, AI can expedite the industry.

Avery: What are some of your predictions in terms of OEM involvement in First Notice of Loss (FNOL) reporting?

Spears: There is an absolute battle in positioning going on right now in regard to the way that the models of vehicle ownership will change over time, particularly as the middle class abort their own cars or a 7-8-year loan becomes the norm. In cases such as these, people will never own their vehicles, because they are not paying them off but rolling them into the next loan. This lays the groundwork for manufacturers to keep connectivity to the automobile. When I first came into the industry, the average age of a car was 5-6 years old. Today, vehicles are an

average of 9-11 years old. It’s not uncommon for a loan to be stretched out that long. When you take a look at the new Car-Net mobile app Volkswagen recently debuted, the information needs to stay active as long as the person is paying for a subscription. If there is a collision and the airbags deploy, the Car-Net service will report if there is an accident. Certified shops that focus on having the right tooling, facility and training, are going to do much better than facilities that don’t. I believe we’ll see OEMs own FNOL in the future. They will be able to call a carrier to report an accident, let them know which store it was towed to and find out if the carrier wants to have someone look at the vehicle or if the OEM should do the appraisal. That’s going to give them time to break the car down and not just do a rudimentary digital evaluation. They will be able to have a much more processed, highly detailed blueprint-type of appraisal… and customers won’t know the difference. Companies such as Enterprise, with its Entegral program, are starting to get into post-accident process-

ing. Consumers could very well be a fan of that program, being able to have a replacement car readily available. By offering alternative transportation and being able to meet that immediate need, it will have higher payoffs for carriers.

Avery: Will it become more common for vehicle owners to allocate a repairer of choice?

Spears: An OEM could open up the possibility for customer choice and we may very well see owners being able to assign themselves to a repair shop, particularly through a manufacturers network, like Volkswagen’s Car-Net mobile app or GM’s OnStar system. However, customer choice might lie beyond the customer’s geography in some cases. For example, if a consumer has an Audi or a complicated Volkswagen to be repaired and there isn’t a certified shop nearby, the car will have to be towed to a certified shop outside of the area the carrier offers. For more information, email Spears at James.spears@gmail.com.

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GM, Isuzu to Create 100 Jobs at Ohio Plant

Due to the growing strength of GM’s all-new 2020 Chevrolet Silverado and GMC Sierra heavyduty pickups, General Motors and Isuzu announced an $175 million investment to build a diesel engine components plant in Brookville, Ohio. The new investment will create more than 100 new manufacturing jobs at the Brookville site. When the new Brookville site is up and running in 2020, it will operate concurrently with the current DMAX operations in Moraine. “Strong demand for GM’s all-new family of Chevrolet and GMC heavy-duty pickups is driving us to find ways to build more Duramax diesel engines,” said Gerald Johnson, GM’s executive vice president of Global Manufacturing. “The Brookville investment will enable us to machine more engine blocks and heads and ultimately enable our DMAX engine plant in Moraine to build more 6.6-liter diesel engines for our Flint truck assembly plant.”

Should Tesla Carry the Burden of Teaching the Public About Artificial Intelligence?

In a recent podcast discussion Elon Musk had with AI expert Lex Fridman about artificial intelligence, consciousness, and Musk’s brain-computer interface company Neuralink, an interesting question arose about Tesla’s role as an educator in that realm. Referring specifically to the Smart Summon feature that’s part of the company’s Version ten firmware, Fridman asked Musk whether he felt the burden of being an AI communicator by exposing people for the first time (on a large scale) to driverless cars To be honest, Musk’s response wasn’t really, well, responsive. He deferred to the more commercial-oriented goals of the company: “We’re just trying to make people’s lives easier with autonomy.” The long-term goals of Neuralink are pretty scary for mainstream humans, so to me, this question really deserves a long sitand-think. After all, we’re talking computer self-awareness and capabilities well beyond what we’d consider superhuman and beyond the ability of humans to control after a certain point. Neuralink wants the type of AI connection implanted in our brains. On one hand, the evolution of Autopilot with each iteration and the

Stamford, CT, Resident Accused of Breaking Into Car at Norwalk Body Shop

allow one of the doors to be closed, police said. When the worker apA Stamford, CT, man stole a bottle proached Andrade, the man fled toof pills and loose change from a ward Wall Street. Officers working an car parked at a city auto extra-duty job nearby body shop, police said. were able to stop AnPolice said Eric drad a short time later. Andrade, 46, of Main Andrade was charged Street, Stamford, stole with third-degree burthe items from a crashed glary and sixth-degree car that was parked at larceny. He was held on Knight Street Auto that $5,000 bond and given was awaiting repairs. Eric Andrade, 46, a court date of Dec. 6. A worker saw Anof Stamford, CT. drade rifling through the Credit: Contributed We thank The Hour for car, which was damaged Photo, Norwalk in a way that wouldn’t Police Department reprint permission.

evolution of Smart Summon with each new release exposes people to the process of how humans teach computers and how computers teach themselves. In other words, it shows people that AI is somewhat similar to how people learn. However, I don’t know that it gives everyday people a full picture of what Musk is really talking about all the time regarding the pace of AI learning and how that leads to doom scenarios.

Credit: Unplugged Performance

If anything, is Tesla lowering expectations for AI’s future? If a Tesla is the first “robot” people see, and then they see years of functionality that’s sub-par to an attentive human at the wheel before seeing the full promise of the Tesla Network, what picture is being painted? Then, what about the wake of uncertainty it will leave behind? In the interview, Musk described

our minds as essentially a monkey brain with a computer trying to make the monkey brain’s primitive urges happy all the time. Once we start letting computers take over what little functions the monkey brain enjoyed or needed to keep in check (driving, painting, laboring, etc.), how is the AI eventually going to decide to deal with what it will just see as … the monkeys? Okay, I know I’m getting a touch ridiculous here, but it just brings me back to Fridman’s original question about whether Tesla carries the burden of educating the public on these matters with their push for self-driving. Perhaps if they were just focused on moving the world to sustainable energy and production, their driver-assist features would be just as Musk describes them – a convenience or value-added feature. But that’s not the future Musk is working towards. He’s both warning us about the future of AI while actively developing our defense against it. Should his car company then play a big role in acclimating and teaching people about what AI will really be able to do beyond getting them to work and back? We thank Teslarati.com for reprint permission.

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In Reverse with Gary Ledoux

The 1980s – The Advent of the Unibody The 1970s were quickly fading into the rear-view mirror and the 1980s were approaching with alarming speed. In August 1981, IBM introduced the personal computer. It sold for $1,565 – that’s $4,333 in 2019 dollars. In November 1985, the first version of Microsoft’s Windows operating system was released. On March 11, 1989, we were introduced to the web. Technology was poised to explode in ways not yet imagined. Some industries would embrace, leverage, and profit from the new technologies. The collision repair industry would drag their feet.

The Industry Enters “Puberty” It was also a time when the collision industry would “come of age.” Since 1945, the industry had been a mass of small, family-run, mostly singlepoint body shops that were not tied together in any way for any purpose.

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

In fact, many fought with each other. The 1980s would see shops joining together through local and regional associations, and working for a common good. In 1980, depending on the source, there were an estimated 80,000 to 85,000 body shops in the U.S. In the spring of 1984, a more authoritative number was ascertained. Compiled from the yellow pages of 4,800 telephone directories, American Business Directories, Inc. said the official number of body shops was 59,768. In the spring of 1987, according to an ad for Sharpe Spray Guns, there were 55,000 paint shops in America. Whichever number you believe, it had been growing since the end of WWII; yet, vehicle building technology had remained virtually unchanged since the 1940s. Before the days of intrusive government regulations, and with few tools and

few pieces of relatively inexpensive pieces of equipment to buy, it was easy to get into the collision repair business. That was all about to change. If the time prior to 1979 could be considered the industry’s childhood, it was about to go into a fast-paced puberty. The Unibody Is Introduced The earliest part of the decade would also mark one of the most significant changes in the automotive business and certainly in the collision repair world – the change from body-onframe auto construction to a unibody model. Collision repair would never be the same. Long-time industry veteran Bruce Cooley spent years with paint companies Sherwin Williams and Axalta (then DuPont), retiring in 2013. Of the collision industry, Cooley noted in a March 2015 interview,

“The biggest single change to the collision industry did not happen overnight, but over time starting at around the early 1980s. That was the birth of the unibody, and a time when auto manufacturers started building cars better so they would last longer. That changed everything. In the 1960s and 1970s many shops were called ‘body and paint’ shops, because they performed body work but did a fair amount of repaints and cosmetic work because OE finishes didn’t last. A lot of what shops did back then was repainting cars and fixing rust. Cars only lasted three to four years because they just rusted through. At 4-yearsold, the engine had 50,000 miles on it and was tired and the body was rusted through – it was time for a new car. Shops were fixing cars that were relatively lightly damaged. It didn’t take much to total a car back then. That all changed with higher-grade steel and

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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new design. It revolutionized how we repaired cars.” Most people who were around then agree that prior to the early ‘80s, the industry had evolved very slowly. Technicians “worked the metal.” Parts were welded on, and lead was still widely used even though plastic filler had been around since 1956. The advent of the unibody changed everything. Equipment Buying Frenzy Dean Fergus, then product manager for Applied Power said in an April 1983 trade magazine article, “The collision repair equipment market changed from a mature market to a growth market almost overnight with the introduction of the domestic unibody cars. Prior to the early 1980s, changes in the collision repair industry were gradual and evolutionary – rather than revolutionary. Prior to the early 1980s, technicians could easily keep up with body construction and repair technology because the technology moved at a rather slow pace. Our industry learned as we went along.” However, with the introduction

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of unibody construction, the rate of change increased dramatically. In 1977, 98% of domestic cars were built on a frame and 2% were of unibody construction. In 1981, 52% were frame-based vehicles and 48% were of unibody construction. A trade magazine article of the time predicts that by 1985, 4% of domestic vehicles would be frame-based and 96% would be unibody. The need for new and different equipment would spawn the National Autobody Congress and Exposition (NACE) show, the first show being held in November 1983 in Nashville, TN. Other regionally based associations agreed to put off their own local shows in favor of a “national” show. Here, shop owners could meet and talk with representatives from the various equipment manufacturers about their shop’s needs and even purchase the equipment there. The show was open to all shops and featured equipment displays, members of the insurance community, and the educational community. The show would grow exponentially until 1998 when, for a variety of reasons, attendance started to decline.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

“Fragile” Cars The problems (or perceived problems) created by the new unibody technology were myriad. Without a traditional frame, cars were considered by some to be “fragile” and unable to take a substantial “hit.” The insurance industry claimed repair costs were skyrocketing. Many shops were unsure how to repair them – and insisted on “sending them down the road” so they didn’t have to deal with them. Some shops considered unibody construction to be a fad that would soon pass, and continued business as usual. The same mindset permeated the collision repair industry in the mid-1920s as the automakers transitioned from wood bodies to steel. In both cases, some shops refused to change with the times and learn the new technology. So, in the 1920s when they ran out of wooden cars to fix, or in the 1980s when they ran out of bodyon-frame cars to fix, the shop either went out of business, or became a “specialty” shop. Skill Has a Price Tag Smart shops were embracing the new

construction technology, investing in the equipment and training to fix those vehicles, and promoting that fact to consumers and insurance companies. In fact, the ‘80s marked a time when consumers were being recognized in something more than just a passive role. A trade-magazine article appearing in early 1985 notes, “The collision repair industry needs to start educating the consumer to the importance of and necessity of accurate collision repair – educating the consumer that accurate repairs require skill, training and proper equipment. And finally, that this skill, training and equipment has a price tag – a price tag that is not necessarily ‘the lowest estimate.’”

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Solving the Tech Shortage: How Conditions, Culture & Compensation Can Help Body Shops Attract & Retain Employees by Stacey Phillips

It wasn’t long ago when businesses looking for new employees put an ad in the newspaper hoping for a response. About a dozen or more candidates applied, and someone would be hired. Today, the scenario is much different. Rick White, president of 180biz, said if that same type of ad is circulated now—printed or online— shop owners and managers shouldn’t be surprised if there are no responses. During a recent webinar coordinated by the Alliance of Automotive Service Providers (AASP), White shared advice on how to best attract and retain talent in the collision repair industry. White said “chasing people” to come to work isn’t an effective strategy. “The reality is that you want the best people working in your shop,” he said. “Instead of chasing people, you have to start to attract them.” This requires a significant change

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in mindset. Typically, White said busi- by Apple, Google and Microsoft. nesses search for help when an em- Rather than putting out ads looking ployee leaves the company. Instead, for candidates, companies such as he recommends that owners and man- these regularly receive resumes. He agers stop hiring and begin recruiting. attributes this to their working conThe best time to do this, accord- ditions, culture and compensation. ing to White, is ALL the time. “You want to be constantly re- Conditions cruiting so when somebody gives you When a business owner first opens notice, you’ll have somebody or a new body shop, White said he or ‘somebodies’ to call,” he said. she usually sees the potential for When an employee first gives success. Over time, this often notice, White discourages shops from changes, and the focus becomes the accepting it. problems or challenges oc“Let them go unless curring at the company. As they are a superstar player,” a result, White stressed the he said. “If it is a technician, importance of continuously you are going to have six working on a business to months of comebacks becreate better conditions. cause they are no longer “No matter how bad you emotionally or mentally in think your current condiCredit: Rick White the game. I guarantee that tions are, there is another no matter how bad it seems, it’s person who would kill to be in your going to be better than what you have position,” he said. “See the potential to deal with on the other end.” in your business and then grow and In his one-hour presentation, make problems better by taking baby White shared a hiring strategy used steps—make things a little better

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

every month.” Over the years working with clients, White has found that constant improvement can make a big difference with a team. “All you have to do is make improvements and people are going to think it’s amazing,” he said. “They are going to value you and see you care about them.” Some of the examples he offered that can help improve a facility include good lighting, a system for parts, investing in equipment and training, and an organized parking lot. Good working conditions, according to White, can make the difference between a job candidate working at your shop or finding employment somewhere else. White also recommended getting the whole team involved so there is buy-in and they feel part of the success. Culture White said that culture, which he defined as how a team feels working at


your company, has to start with intention. “Don’t accidentally create a culture,” he advised. “If you are not intentionally setting the culture—the values and everything you want your company run by—somebody else is.” It all starts with hiring a new employee. White recommends having two interviews as part of the process. First, is a face-to-face interview at the shop going through a series of questions to better understand the person in a non-judgmental way. “You are not there to determine whether or not they are a good fit; you are there to get to know them,” he explained. The next step is to talk to his or her references. In addition to reaching out to prior employers and personal references, it can also be helpful to talk to peers. Many times, a shop owner is not going to share many details about a previous employee so there is one question White always recommends asking: Is this person eligible for rehire? “It’s a great question to ask and you are going to get a really solid answer,” he said. “You are either going

to hear, “Yes, I wish they were here today,” or “No, I don’t want to see them again.” White said shops owners and managers should keep in mind they are hiring human beings, not machines. “They have goals, fears, desires and nightmares,” said White. “You have to get to understand your employees and know them as well as you can.” He pointed out that when you hire an employee, you are hiring their entire family as well. “We have to recognize they have a life outside of the business… and they are concerned about their future,” he said. “When you get the family involved, it’s like having advocates at home that want them to stay working there.” White provided several suggestions on how to best connect with employees and their families, such as giving birthday gifts to their children or sponsoring their soccer team. He said it can be helpful to learn what employees enjoy doing in their spare time, so if they go above and beyond at work, you can tie in different rewards and give them something meaningful.

He advised always being upfront with employees, creating a safe place for them to work, letting them know what’s going on in the business so they don’t worry, and always showing appreciation for their efforts. “They need a mentor and a friend—someone who cares about them and wants to see them achieve the highest they possibly can,” he said. Once a business culture is created, the next step is to communicate it to employees and explain what is expected. “The goal of communication is to convey a thought or process or act to another person,” he explained. “You want them walking away with the same picture in their head as you have.” In order to best communicate the message, he recommended talking slowly, really listening, and using what he referred to as the seven “Cs.” These include being clear, correct, concise, complete, concrete, considerate and courteous. Compensation It should come as no surprise that ex-

cellent compensation is going to help attract and retain quality people, according to White. When deciding whether or not to offer a raise, he advised not to give an incremental cost of living raises. He referred to this as “replacement raises”—the cost of replacing an employee. “When thinking of compensation, recognize it’s wages as well as bonuses. Money is not going to be the key driver,” he explained. “Instead, you have to tap into why they are in this industry, what brought them here, and what they want to do.” White encouraged shop owners to think differently about what is offered to employees. That might include providing health insurance, a flexible schedule, paying for tools, tuition assistance or retirement. “The reality is the status quo doesn’t work anymore,” said White. “It’s going to be new thinking and new actions that are going to make a difference and it all starts with you.” For more information, email White at rick@180biz.com or call 540-8332014 ext. 11.

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ASA Wage & Hour Attorney Discusses Overtime Exemptions Stressing the need to be very precise about the definition of overOn Oct. 16, ASA’s Webinar Wednes- time, Farrington explained, “Overday focused on “Countering the Deal- time is often viewed as a reward for ership Overtime Exemption,” which an employee who works a long week. was presented by ASA’s Wage and Actually, it is a penalty on the emHour Attorney Brian Farrington of ployer for working an employee over Cowles & Thompson in Dallas. He 40 hours.” covered the basic elements of the “The primary purpose of overFLSA Section 7(i) overtime exemp- time is to spread employment. Overtion, which practices can lead to in- time is time and one-half of an eligibility for the exemption, and employee’s regular rate of pay for how to recognize when applicable hours worked over 40 in a workweek. state law can prevent shops from The intent is to make you go hire using the exemption. Tony Molla, more people instead of working peovice president of industry relations ple over 40 hours,” Farrington confor ASA, introduced Fartinued. “Given its actual rington, reminding associapurpose, it’s easier to undertion members that they have stand the reason for limited the ability to contact Farexemptions and why exrington for advice. emptions from overtime are Farrington began his very specific and limited webinar by explaining that only to those who clearly the Fair Labor Standards Act meet the terms of the exASA’s Wage and of 1938 (FLSA) is the basic emption.” Hour Attorney wage and hour law in the Brian Farrington of Pointing out that collision U.S. and establishes stan- Cowles & Thompson repair shops and mechanical in Dallas. Credit: dards in four areas: minishops also compete with Brian Farrington mum wage, overtime, child auto dealerships, Farrington labor, and recordkeeping. Noting noted that they start with a significant that these standards were “deter- disadvantage since overtime is not remined by legislation that’s well over quired for dealership salesmen, parts80 years old,” Farrington warned men and mechanics, according to that FLSA does not preempt state FLSA 13(b)(10)(a), with dealership laws. “The FLSA allows states to im- being defined as “an establishment pose standards which are more pro- which derives over 50% of its gross tective of employees than the federal revenue from the sales of automostandards. For instance, many states biles, trucks or farm implements.” and even cities have higher miniStill, shops have an opportunity mum wages than the federal standard to offset this disadvantage with anof $7.25.” other exemption, FLSA Section 7(i) This means that some states which exempts employees from have much stricter overtime stan- overtime if they meet three tests: 1) dards than the FLSA, compared to they work for a retail establishment other states which have no overtime (defined as a distinct physical localaw and defers to FLSA solely. Em- tion that has 75% of its income deployers in states with overtime laws rived from retail sales); 2) their must determine whether their state’s regular rate is more than 1.5 times the laws mirror the federal exemptions. federal minimum wage; and 3) they The example provided was Califor- are paid primarily by commission. nia which has a similar exemption In regards to the first test, it’s to FLSA 7(i), but it doesn’t apply to important to note that the analysis repair shop techs, so shops in Cali- must be completed separately for fornia must pay overtime to their each distinct physical location. Retechnicians. According to Farring- tail sales are “sales made to the genton, “Bottom line – employers must eral public … In a collision shop, know the state OT laws in every state this means the repair of vehicles for in which they operate, plus they must individual customers, even when an have a working familiarity with fed- insurance company pays for some or eral law, or talk to an attorney who all of the repair on behalf of the retail does.” customer,” Farrington said. by Chasidy Rae Sisk

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JANUARY 2020 AUTOBODY NEWS / autobodynews.com

Non-retail income generally falls into one of three categories in a typical shop: income from work on heavy trucks or specialized equipment, income from fleet work where work is done for a fleet customer pursuant to a contract or agreement and where the customer receives a fleet discount, or

income from sales for re-sale, such as a dealer engages a shop to refurbish a used car that the dealership sells, or a dealership farms out its body work to a collision repair shop. “In each case, the income to the shop is non-retail,” Farrington stated. “These count against your retail income and will disqualify you if it exceeds 25% of your establishment’s income. If 25% or less of your establishment’s income is from a non-income source, your facility qualifies

for the first test of the exemption from paying overtime to techs.” A couple important things that Farrington emphasized were “Transmission rebuilders are not considered retails, but manufacturers, and so cannot use 7(i). Income from private party tows, even if reimbursed by insurance, is retail. Income from police tows, such as where an employer has a contract with a city to tow cars to an impound lot, is not retail. Although there is no official position, in its enforcement, USDOL/ WH has taken the position that when a business pays a towing company to tow illegally parked cars from business parking lots, such income is not retail.” The second test requires the employee’s regular rate to be more than 1.5 times the minimum wage, which is $10.88 based on the federal wage, but in states with higher minimum wages, the employee’s regular rate must be 1.5 times the higher state minimum wage. Base rate and commissions, if applicable, are included, and the employee’s total compensa-

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tion for the workweek must be divided by the number of hours worked in order to determine if this number is met. The third test is that the employee must receive over half of total earnings in commissions, measured over a “representative period” which must be at least a month but no more than a year. “If the commission earn-

any amounts by which draws exceed commissions, and charge them against future extra commissions.” “Flat hours or book hours are interpreted as commission so this becomes entirely relevant to you,” Farrington added. “A commission is a situation where what the employee receives in earnings is a function of what the customer pays. One of the

“The FLSA allows states to impose standards which are more protective of employees than the federal standards.” — Brian Farrington ings are greater than the other income, the employee is exempt for the following representative period, when the analysis is done again, and so on,” Farrington explained. Farrington explored examples of draws against commission and explained, “The rate should always be 1.5 times the rate for the longest week they might work. Employers should ensure that their regular payments to the employees are not considered ‘salary’ payments. The best way to do this is to carry forward

most common forms of payment to mechanics is payment of ‘flat-rate hours.’ Under this system, a fixed number of hours is attributed to a particular job, regardless of how long it actually takes to do the job. The customer pays this number of hours to the shop at the shop’s labor rate, and the technician who does the job gets paid this number of hours times his/her flat rate or book rate or shop rate.” Investigators use the Field Operations Handbook (FOH) to deter-

mine how to enforce the law, and FOH 21h04(d) specifically addresses flat rate hours: “Some auto service garages and car dealers compensate mechanics and painters on the following basis: The painter or mechanic gets so much a ‘flat rate’ hour for the work he or she performs. A ‘flat rate’ hour is not an actual clock hour. The employee is given a certain proportion of that charge expressed in terms of so many dollars and cents per ‘flat rate’ hour rather than in terms of a percentage of the charge to the customer.” “The dealer does not change the employee’s share per flat rate hour if the charge to the customer is changed,” FOH 21h04(d) continues. “In such situations, Wage-Hour will not deny that such payments represent ‘commissions on goods or services’ for purposes of Sec. 7(i). Such employment will qualify for exemption under Sec. 7(i) provided all the other tests of the exemption are met.” Farrington stated, “This is critical! This interpretation by USDOL/ WH, that flat rate hours are commissions for purposes of 7(i), has been accepted by both the 11th and 7th

Circuits – see Klinedinst v. Swift Investments, Inc., 260 F.3d 1251 (11th Cir. 2001) and Yi v. Sterling Collision Centers, Inc., 480 F.3d 505 (7th Cir. 2007). If you are consulting with an attorney about possibly bringing a 7(i) case, be sure to bring these cases to the attorney’s attention.” If all three tests are passed, 7(i) can help offset the dealers’ advantage and blanket exemption, but employers should see competent legal advice before implementing a 7(i) compensation plan due to the complexity of the exemption. Farrington also reminded attendees, “Employers in states that have state overtime laws should consult local counsel to be sure that their state overtime law has an exemption analogous to 7(i).” Farrington concluded his webinar with a question-and-answer session. ASA’s next Webinar Wednesday will be held on Nov. 20 with “The New Smartphone Consumer,” presented by Jason Soto of MobileSoft Technology. To register for ASA’s webinars, visit asashop.org/webinars.

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From the Desk of Mike Anderson with Mike Anderson

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

Reflecting on My Journey in the Collision Repair Industry I often talk about the need to look ahead, but in recent weeks, I found myself reflecting. My desire to reflect started forming during SEMA in Las Vegas. SEMA is a great opportunity to catch up with those in the industry who we may not have seen in some time. I turned 57 that week, and certainly most of us get reflective as we get older. There is a book that summarizes my journey well called, “The Canterbury Tales” by Geoffrey Chaucer. The narrator of the story is on a pilgrimage, and as he walks, he is joined by dozens of others – a knight, a squire, a weaver, a monk, a cook, a merchant – all of whom enrich and influence his journey. “The Canterbury Tales” resembles how I’ve been feeling as I reflect on how appreciative I am for those whom I have encountered on my journey in this industry. There’s

been those who have led the way ahead of me, folks like Jeff Hendler, Hank Nunn, Sheila Loftus, Mark Claypool, Elainna Sachire and so many others. These leaders have encouraged me along the way, and sometimes called me out when I wasn’t doing the smartest thing or when I let my mouth override my brain. There are amazing young leaders in the industry who keep me motivated, such as: Will Latuff, Tiffany Driggers, Tracy Dombrowski, Danny Panduro, Josh Kuehn, Jake Rodenroth and Cody Rinaudo. I’m grateful for the people who have gone ahead of me, the people with me on my journey, and those who are traveling with me and who will be the future leaders of this great industry. As I’ve been reflecting, I was thinking about one of my mentors, Jerry Dalton. Dalton died 20 years

ago, but he was one of the founders of Craftsman Auto Body in northern Virginia. I remember one time when I was young, I walked into a Washington Metropolitan Auto Body Association meeting feeling frustrated.

Credit: Mike Anderson

I had a bad day, and I was griping to Jerry about one of my employees. He started laughing, and I told him I didn’t really think it was funny. “I’m not laughing at you,” he assured me. “You’re just kind of where I used to be.” I asked him what he meant. He

said, “Mike, you need to realize if other people had the same passion and energy as you do, they wouldn’t be working for you. They’d own their own business.” That was an eye-opener for me. I realized we have a right to expect that people will show up for work on time and do a good job; but, not everyone has the same level of passion. There are many people I’ve been blessed to meet on that journey who are every bit as passionate about this industry as I am. They’ve enriched my life, and I’m so grateful. Is there someone who has stood by you in this industry, past or present, who you should reach out to and thank? Don’t delay. Do it today. I am thankful for you – for reading my articles, for showing up to my seminars, and most importantly, for doing the right thing every day to ensure safe and proper repairs.

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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Automotive Industry Faces Disruption Driven by Societal Changes by Gary Ledoux

“It is my belief that every aspect of the automotive industry value-chain will be disrupted in some way, shape or form. I also believe there will be a small percentage of existing businesses that will figure out how to be a disruptor, a large percentage of existing business that will be disrupted, and last but not least, there will be new companies that enter the automotive market as disruptors,” wrote industry leader Frank Terlep near the opening of his new book, Auto Industry Disruption – Who and What is Being Disrupted, and What To Do About it. Since the earliest days of the collision industry trade magazines in the mid-1960s, columnists, editors, industry leaders and pundits have consistently exercised two themes to talk about the state of the industry. The first one is, “We have seen more change in the last five years than we saw in the previous 20.” The other is, “We are roaring into the future and evolutionary or revolutionary changes will be taking place. Get ready now for the future.” Terlep’s book follows a similar theme, but the “intensity switch” is turned all the way up to its highest setting. It is not just the collision industry side of the business that is being affected. The entire automotive industry is changing, changing right now – changing before our eyes, in ways that are more profound than ever before. The changes are not evolutionary, not even revolutionary – but are best described as “a disruption” driven by technology, socioeconomic and demographic change and the emergence of new business models. Automotive technology is changing quickly. Cars are no longer cars but computers on wheels and technicians will need to learn how to properly repair, reset and recalibrate a damaged vehicle to make it roadworthy and safe again. Hardware technology is increasing computing power, miniaturizing it, and making components easier to install. Software technology is changing, allowing a vehicle to receive software updates on the fly without ever visiting a dealership. Broadband con44

nectivity will disrupt car ownership models allowing ridesharing and provide the foundation for intelligent transportation systems. Cameras are proliferating. Soon, six to ten cameras on a car will be the norm. So, while collision technicians debate the virtues of repairing sheet metal as opposed to panel replacement, the question becomes, “Will all ADAS systems components work as they should upon completion of repairs, and can the car still maintain internet connection?” A Brave New World Terlep’s vision of a “brave new world” of a disrupted collision repair industry includes:

• ADAS systems and related technology will make cars safer to drive. This, combined with autonomous cars and concepts like ride-sharing and improved ride-hailing technology, and the socio-economic acceptance of using different means of short-hop transportation in an increasingly urbanized world means fewer cars on the road and fewer accidents.

of which haven’t even been invented yet, will require shops to invest heavily in training and new tools and equipment – all of which will quickly become obsolete as technology moves forward at mind-numbing speed.

Sunrise – Sunset As the disruptive climate grows and expands, some companies will be greatly consolidating or “sun-setting” altogether, while others will experience birth and meteoric growth. Just as innovative companies found a way to make vast improvements in internal combustion cars, emerging companies, through technology and innovation, will find a way to improve electric car performance, the experience of driving an internal combustion car, and enhance the customer experience in the transportation field overall. “Sunrise” initiatives include: • A company is already working on a headrest that can “sense” a driver’s physical condition including fatigue, drowsiness, stress, etc., and

adjust the car’s ADAS systems accordingly … cutting down on vehicle accidents.

• A system will be developed to electronically handle all aspects of a collision repair from the moment the accident occurs. Sensors will determine the physical condition of the driver and occupants, the extent of damage, order the appropriate parts, send them to the closest OE certified body shop, and notify the insurance carrier – all in a matter of seconds – not hours or days. • A person’s daily commute will change into an end-to-end mobility experience with an interconnected ecosystem of multiple players and providers including one or more modes of transportation.

• Connected cars and their attendant systems will generate vast amounts of data. Terlep calls this data “the world’s new oil.” Those that learn how to capture, control, manipulate and leverage all this data

• The era of the “two-car” family is quickly dying. Given the expense, there is less and less reason for having a second car when so many other alternatives are emerging. Hence, less cars, less accidents. • Fewer accidents means a consolidation of all areas of the collision industry including the number of shops needed, along with the infrastructure to support those shops. This includes parts suppliers (including OE’s), as well as paint and equipment suppliers.

• The proliferation of electric cars means less mechanical maintenance – good for vehicle owners as far as downtime and cost is concerned, a disruption for car dealers who depend on parts and service sales for a good portion of their gross profit and a disruption for independent mechanical shops and collision shops who will have to deal with technologies they are not familiar with.

• The proliferation of electric cars and their attendant technology, some

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will be the big winners in a disrupted world. Of course, this data must be stored and used responsibly.

• OE’s will use connected-car data to reverse its business model for designing and developing cars. Rather than build a car that executives think customers want and hope it sells, they will be able to capture how consumers use existing products and enhance that experience by providing products they know the customer will appreciate.

• Autonomous cars that sustain minor collision damage will be able to drive themselves to a pre-assigned repair facility. Meanwhile, an alternative car will be dispatched to provide service in the interim. Once the first car is repaired, it will be placed back into service, the insurance claim will be processed automatically within minutes … and life will go on. Some company, yet to be founded, will be controlling this whole operation. Auto Insurance Re-Invented Not unlike the collision repair industry, the auto insurance industry is

loath to change. However, as is the nature of “disruption,” time, technology, and consumer preference will eventually force their hand.

• New players will emerge in the auto insurance space and provide products and services never before seen. Imagine paying a flat fee per month for basic fire and theft insurance, and then pay only for the miles you actually drive by logging into an app on your smartphone. • New insurance products may include cyber-security insurance to ensure against hacking and malware.

• Consumers may be able to set their own prices ... In other words, come up with a monthly premium that fits their budget, and then see what that will provide.

• Consumers may be able to use “peer pricing” whereby they will apply for an insurance policy providing various characteristics such as year, make and model of car, ADAS characteristics, age, gender, family status, job, etc., and get a quote most

commonly selected by their peers.

• Insurance company adjusters will all but disappear being replaced with vehicle sensors, digital photos and artificial intelligence. Exciting Times “This is an exciting time to be part of the automotive industry. Innovation and creativity can be found almost everywhere, while new entrepreneurs, investors and incumbents are all jumping into the ACES (Autonomous, Connected, Electric, Shared) pool!” wrote Terlep. “The way to be successful in a disruptive climate,” he says, “is to keep innovating. Remember, innovation is NOT technology. Innovation equates to any way you or your business find a way to do more for a client than anybody else does.” In his book, Terlep offers several ideas for collision repair shops, OE’s, car dealers and others to become the disruptor, rather than the disrupted. It’s not rocket science, but it does require a business owner to pay attention to what is going on around them, he said. In a telephone interview, Terlep noted, “If busi-

nesses don’t recognize these changes now and begin to adapt, they’ll be gone in five years.” As an example, Terlep noted the rather speedy demise of the Blockbuster video rental chain because they failed to realize the emerging streaming video business model of Netflix. By the time Blockbuster realized what was happening, technology and social change had occurred … and it was too late for them. Terlep has been a key player, innovator and disruptor in several collision repair-related companies over the past 40 years including AkzoNobel and Mitchell International as well as companies he founded including Automotive Solutions, CarStation.com, Summit Software and Summit E-marketing. Terlep’s book can soon be found on Amazon and all e-book platforms. For a FREE copy of Chapter One of this informative new book “Auto Industry Disruption, what and who is being disrupted and what to do about it,” please visit www.auto-disruption .com/pl/109601.

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National Associations with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Collision Repair Industry Associations Make 2020 New Year’s Resolutions For many, making a New Year’s resolution is an important part of celebrating the calendar changeover, and the most common resolutions are intended to improve an individual’s life – losing weight, learning something new, or saving more money. Studies show that 46% of those who make a New Year’s resolution are likely to succeed. Associations supporting the collision repair industry have also begun to evaluate what improvements they can make as the old year draws to a close, and several industry leaders were willing to share their 2020 New Year’s resolutions with Autobody News. A common resolution amongst association leadership is focused on growing their organization’s membership and meeting their members’ needs. Judell Anderson, executive director of AASP-MN, began, “We will continue to work on increasing

member engagement. Members are the lifeblood of the association, and without their participation and input, the Alliance cannot be as impactful as we otherwise could be. Whether volunteering for committee service, communicating with legislators, utilizing member benefit programs or simply being aware of and supporting our various initiatives, the Alliance will ultimately be stronger and more effective in our work on behalf of the industry if members are fully engaged. To that end, the association will work to create a more robust social media presence and overall communications strategy to more effectively engage members in all aspects of our work in the coming year.” Ray Fisher, executive director of ASA National, stated, “Wow, it’s hard to choose just one with all we have planned for 2020. Our focus in

2020 is our members. To that point, we want to help our affiliates even more with their event promotion while leveraging new programs, like our podcasts, to achieve success. We’ll also see the return of C.A.R.S. at the ASA Annual Business Meeting in the Dallas-Fort Worth area next year.” ABAT Executive Director Jill Tuggle hopes that the group will continue expanding their membership base, and she said, “We have joined forces with HABA and will be looking to grow our membership especially in the western part of the state.” Burl Richards, president of ABAT, added, “Stay the Course … don’t take your foot off the gas pedal. We’ve made great strides, and we are educating and making the industry better and stronger by sticking together and taking the time to continually push the boundaries to move

the needle.” ASA Northwest’s 2020 Chairman Elect Bryan Kelley plans to enhance the association’s focus on members’ needs. “I often feel like we believe we know what our members want, and we then try to fill that belief. Instead, we should be constantly surveying and asking the big questions: what do our members really want from us? Once we have that information, we need to focus on the application and delivery. If you ask, they know you care, and if they know you care, they will continue to support you while you begin to navigate through change,” he pointed out. AASP/MA Executive Director Lucky Papageorg plans “to continue the momentum and growth of AASP/MA based on that platform of attaining a fair and reasonable labor rate while continuing to protect the consumers and collision repair in-

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dustry. We’ll also be putting together a two-year business plan for the association and setting obtainable goals with greater participation at all levels.” IABA has some exciting things coming up in 2020, including the transition to a new and improved website and members’ portal. IABA President Doug Martin shared, “This will help us push out info to the membership and keep them up to date with the event’s happening across the state. We will still have our quarterly chapter meetings, and several sponsors have committed to bring in key people to help us facilitate.” Legislative efforts continue to be a large priority for associations in the collision repair industry as 2020 approaches. Martin added, “A huge thing for the IABA is that we have hired Jack Molodanof, a California Auto Body Association lobbyist, as a government relations advisor to the IABA. Jack has tremendous knowledge of the collision industry and will help us build relationships in the state house along with the department of insurance. We are very excited for the new year.” CAWA plans to “complete a due diligence process to examine the establishment of a vehicle safety inspection program in the state of California,” Executive Director Rodney Pierini shared, and Fisher stated, “Expect more focus on our advocacy efforts in Washington, D.C., particularly as it relates to PMVI program legislation, data access, cyber security and our ongoing efforts to represent the independent repair shop community on telematics and cybersecurity developments in 2020.” Bob Amendola, ABAC president, intends for the association to “continue to strive for increased consumer awareness and empowerment regarding OEM parts, safe and proper repairs and their legal rights after an accident/as the vehicle owner. We plan to do so through social media and a series of informative videos that we are in the midst of producing. They will be released through an upcoming social media campaign in the beginning of the coming year.” “Technology – including advanced safety and crash avoidance systems and new manufacturing materials – has resulted in the need for collision repair shops to make signif48

icant investments in tooling, equipment and training in order to conduct safe and proper repairs in accordance with manufacturer specifications,” Anderson shared. “Our OEM procedure legislative proposal aims to ensure appropriate insurer indemnification to insureds and third parties for the safe and proper repair of damaged vehicles, thereby improving the safety of the motoring public.” As technology continues to change constantly, the need for training becomes increasingly prevalent, and recognizing this imperative, many associations put a lot of emphasis on delivering valuable educational content to their member base. MSCRA Executive Director Ricki Garrett’s goal “is to host an even bigger and better conference and to provide our membership with excellent training opportunities. We also want to grow our membership through enhanced benefits.”

ASA Northwest President and Executive Director Jeff Lovell looks forward to growing the association’s new ATE East program, and NATA plans to host its second roundtable on April 25; Executive Director Cathi Webb said, “We hope to expand this meeting to reach even more influencers in our students’ career paths.” According to ARA Executive Director Sandy Blalock, the association plans to “continue to grow the educational content of the ARA University, incorporating training from industry suppliers and vendors as well as content submitted by ARA members themselves. The goal is to make the ARA University a living, breathing resource that is adding relevant content in real-time as the educational needs of the professional automotive recycling industry adapt to the dynamic automotive repair sector.” KABA Vice President Tony Adams noted the importance of getting “more information in the hands of our members to perform safe and proper repairs, so we can fulfill our

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

mission of protecting Kansas current and future drivers.” ASA North Texas President John Firm stated, “Our goal is to help our membership with reduced cost of training and bring purpose to our meeting to help manage our members manage and operate their business more profitable.” AASP/NJ plans to continue providing education to members and encouraging members to share their successes with one another. President Jerry McNee stressed, “We are all in this together!” The industry also recognizes the need to pull together to ensure the future of the collision repair industry, and to that end, many associations have implemented various programs to ensure that future technicians are being properly trained. In addition to “continuing to perfect our training event, the ASTE,” IGONC intends to “add to our apprentice program,” stated Tricia Sauls, associate executive director. “We are hoping to have 50 kids enrolled by graduation 2020.” NABA Vice President James Rodis said, “Our New Year’s resolu-

tion would have to be to get our youth opportunity council off the ground better. This is a program to help get more kids into our state’s auto body classes and try to break that mold of auto body technicians being a last resort job. We also want to just continue to grow the association so, as a group, our voices are louder.” WAC’s biggest goal in 2020 is “to stick with our path of working with the industry and schools to get industry related curriculum into all middle and high school classrooms as part of STEM learning,” President Shelly Jones stated. “We have started something big and intend to see it through. In addition, we intend to bring more speakers from various organizations into our meetings. These non-industry orgs have proven to be very valuable to our mission and great connections for our members and their companies.” Some associations believe that the future generation isn’t the only way to attract more talent, and these groups would like to incorporate a little more diversity into the industry. Jody Devere, founding board memSee New Year’s Resolutions, Page 52

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Shops Report More Success in Getting Paid for Frame, Mechanical Procedures by John Yoswick

Something seemingly as simple as disconnecting and reconnecting a vehicle’s battery during the repair process may not sound like something that should require researching OEM procedures, and that might be why only 3 in 10 shops say they always do so, according to data from a recent “Who Pays for What?” survey. However, as Mike Anderson of Collision Advice, who conducts the “Who Pays” surveys in conjunction with CRASH Network, explained in a column in Autobody News last summer, increasingly complex or time-consuming procedures for battery disconnect-and-reconnects are becoming more common. “The procedure for the 2018 Chevy Cruze is seven pages long,” Anderson said. “It includes that you need to inform the customer that the ‘start/stop’ feature on the vehicle will not be available until the vehicle is allowed to sit for at least three hours. I was analyzing the procedures called for by one Asian automaker recently,

and found the OEM had 11 procedures required after reconnecting the battery. And most automakers say disconnecting the battery will set diagnostic trouble codes (DTCs) that may be impossible to detect without completing a post-repair vehicle scan.”

battery. Less than 1 in 10 shops said they are “never” paid when they bill for this “not-included” procedure. Even among the subset of respondents that the survey found is least likely to be paid for it – namely, Geico DRP shops – almost 3 in 4 (73

Among shops billing for post-repair test drives of vehicles, 31 percent reported being paid “always” or “most of the time” by the eight largest auto insurers in 2019, up from about 25 percent in 2018

The good news is that 80 percent of the more than 650 shops responding to the “Who Pays” survey also said they are paid by the eight largest auto insurers “most” or “all of the time” for the procedures related to disconnecting and reconnecting a

percent) of those shops said Geico does pay for this “always” or “most” of the time. (By comparison, more than 90 percent of DRP shops for State Farm and Farmers Insurance reported being paid “always” or “most” of the time when they itemized the

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procedures on invoices). There are four “Who Pays for What?” surveys a year, each focusing on different aspects of the collision repair process. The latest survey, which asks shops about their billing practices – and insurer payment practices – related to “not-included” refinish labor procedures, is open throughout January. Shops can click here to take the current survey before Feb.1. The battery disconnect/reconnect data was from a 2019 “Who Pays” survey related to “not-included” mechanical and frame labor procedures. It was the fifth year the survey was conducted, and it found some realworld improvement among the shops that participate in the surveys. For the two dozen procedures asked about in the survey, 7 percent more shops are negotiating to be paid for the procedures, and an average of 8.5 percent more shops are reporting being paid “always” or “most of the time” for them compared to five years ago. Some operations, like draining fuel tanks, have changed little over the five years of survey results,

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JANUARY 2020 AUTOBODY NEWS / autobodynews.com


with one-third of shops still not negotiating for that procedure; about two-thirds of those who do, report regularly being paid for it. But the surveys also have found slow but steady improvement in billing and payment practices for

or “most” of the time for such test drives, up from just 13 percent five years ago. Although roughly the same percentage of shops as five years ago are seeking to be paid for “pre-diagnostic alignment,” shops’ success in

Anderson has argued for some time that many shops lump far too many procedures into a flat fee charge for “set-up and measure.” The 2019 survey found some indication that his calls for more itemization of the procedures involved are taking hold. Back in 2016, for example, a “Who Pays” survey found that more than 81 percent of shops with a flat charge for frame set-up and measure said that fee included pulling the vehicle into the shop and lifting it up. In the same survey in 2019, fewer shops – about 75 percent – said that was included.

to move away from the flat two hours, and start line iteming every single thing we need to do for each vehicle, because it’s very vehicle-specific,” Anderson said. Among shops that are researching OEM repair procedures, the surveys have found a steadily rising percentage are going directly to the automakers’ websites for that information. Five years ago, just 32 percent of repairers said they used the automaker websites to obtain repair information, while a majority (67 percent) said they researched repair

A rising percentage of shops are using the automaker information websites to research OEM procedures

several of the operations. In 2015, 81 percent of shops said they were not negotiating to be paid for performing destructive test welds – that has dropped dramatically to just 52 percent in 2019. Perhaps because performing post-repair test drives is becoming increasingly necessary (and complex) because of advanced drivers assistance systems (ADAS), that is also being added to estimates at a higher rate than five years ago; nearly 1 in 3 shops now report being paid “always”

getting paid for it has increased steadily over the past five years. “Every shop is different and negotiates differently, but the “Who Pays” surveys have shown over and over again that shops won’t be paid for something they have done if they don’t at least know that it is ‘not-included,’ if they don’t determine a fair charge for it, and if they don’t put it on their estimates or invoices,” Anderson said. The surveys ask about shop practices beyond the labor procedures.

Even something as seemingly simple as disconnecting and reconnecting a battery can involve multiple pages of important OEM procedures that should be reviewed, according to Mike Anderson

In an even larger shift, only about 1 in 4 shops charging the flat fee for “set-up and measure” said it includes removal of wheels; in 2016, nearly 38 percent of shops included the time to remove wheels in their set-up and measure fee. “I think as an industry we need

procedures through ALLDATA. Although a slightly smaller majority (63 percent) of shops still use ALLDATA in 2019, the percentage of shops using the OEM sites has nearly doubled to 59 percent in the 2019 survey. (The percentages add up to more than 100 because shops

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51


could indicate if they use multiple sources). About 54 percent of survey respondents said they are OEM researching procedures all or most of the time compared to about 42 percent five years ago.

surveys, conducted one per quarter, each take about 15-25 minutes, and Anderson said they can be completed by any shop owner, manager or estimator who is familiar with the shop’s billing practices and the payment practices of the largest national

Among shops charging a flat fee for “set-up and measure,” a recent “Who Pays” survey found shops tend to be including fewer specific procedures in that fee

“That’s an improvement, but this should still be done 100 percent of the time,” Anderson said. “You need to research that information every time, and save it on file, so if you ever get audited for whatever reason, you can say, ‘The reason we did this procedure was because this is how the OEM said to do it at that time.’” Shops can take the current “Who Pays for What?” survey (or sign up to be notified about future surveys) at www.crashnetwork.com/ collisionadvice. The four different

insurers. Individual responses are not released in any way; only cumulative data is released. At the website, shops can also download the results of previous surveys, reports that break the findings down by region, by insurer and by DRP vs. non-DRP. The reports also include analysis and resources to help shops better understand and use the information presented.

www.autobodynews.com

Continued from Page 48

New Year’s Resolutions

ber of WIA, pointed out, “Only 26% of all employees are women in the automotive industry in all roles; in 2020, we would like to hit 30% or more. Gender parity is not just the right thing to do - it is the profitable thing for our industry to do. Equality for women could lead to a massive boost to the economy. Research from McKinsey found gender equality could lead to a global economic boost of between $12 trillion and $28 trillion by 2025.” AWAF would also like “to increase the number of younger women, both within our membership and on the board. AWAF offers mentoring, coaching, professional development, and access to senior executives, which are crucial to professionals beginning their careers,” according to President Susan Rokosz. WIN Chair Cheryl Boswell added, “One of the goals for WIN in 2020 is to resource the industry with new information regarding how to attract and retain more women (and

Mirka AROS-B Named Global Media Award Winner

The cordless sander, Mirka AROSB, was named 2019 Global Media Award Winner at the SEMA show in Las Vegas. it was picked among thousands of products by a panel of international judges. About 30 judges from 22 countries carefully reviewed and evaluated nearly 3,000 product entries at the SEMA Show before selecting the products that they felt would appeal most to consumers in their home countries. The Mirka AROS-B was selected for the award by Speed and Sound Magazine from South Africa. Mats Bystedt, portfolio manager for power tools at Mirka, is delighted to find out about the award. “We are extremely honored; it shows that the countless hours we’ve spent trying to understand the needs of the operators in the automotive industry have paid off. To meet the high expectations of professional users is not an easy task.”

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men) in this amazing industry!” For SCRS Executive Director Aaron Schulenburg, it’s important to evaluate industry needs and make changes every day, not just for the New Year. “The cultural aspects that guide SCRS into 2020 remain unchanged. It’s doing the right things, in the right way, for the right people, for the right reasons. The work we do for our members is for the right people. These small business owners, and the people they employ, work in a very challenging environment going into 2020,” he said. “I firmly believe that the programs and resources we’ve worked to build, driven by the culture described above, will help make their businesses more successful, and the conditions less challenging going forward. It’s not a new year resolution, but an ongoing commitment by the many volunteers and staff members around our table to help make this industry better than it was when we entered it.” With these association leaders leading the charge for 2020, the collision repair industry is in for another year of improvements, progress and inspiration. Happy New Year!

The Right PARTS A PERFECT Fit.

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US Senator Wants Tesla Autopilot Disabled Tesla’s Autopilot and Full Self-Driving (FSD) features received criticism from U.S. Senator Ed Markey during a Senate Commerce Committee hearing on Nov. 20. The Democratic senator from the State of Massachusetts stated the electric car maker should disable its “Autopilot” feature until the company implements safeguards that would decrease the possibility of drivers using the system to sleep while operating their vehicle. “Tesla should disable Autopilot until it fixes the problem,” Markey said during the meeting. The Senator cited YouTube videos and news reports of drivers falling asleep while Autopilot controlled the vehicle while it was in operation. “That’s not safe. Somebody is going to die because they can go to YouTube as a driver – find a way to (get around safety requirements). We can’t entrust the lives of our drivers and everyone else on the road to a water bottle,” he added. Chief of the National Highway Transportation Safety Administration (NHTSA) James Owens stated the organization would be in touch with Tesla to try and resolve the

issue that Markey was obviously worried about. The company has stated in the past that drivers must keep their hands on the wheel at all times, even if they are utilizing the Autopilot or FSD features such as Navigate on Autopilot with automatic lane changes. In fact, Tesla does not, and has never, condoned drivers to take their attention off the task of driving the vehicle, even if the person operating the car is utilizing Autopilot or FSD. “Before using Autopilot, please read your Owner’s Manual for instructions and more safety information. While using Autopilot, it is your responsibility to stay alert, keep your hands on the steering wheel at all times and maintain control of your car,” the company’s website states on its “Autopilot and Full Self-Driving Capability” page. “Before enabling Autopilot, the driver first needs to agree to “keep your hands on the steering wheel at all times” and to always “maintain control and responsibility for your vehicle.” Subsequently, every time the driver engages Autopilot, they are shown a visual reminder to “keep your hands

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on the wheel.” Tesla has added features to ensure drivers maintain their focus on the road while the car navigates on its own. Some owners have tested a feature known within the Tesla community as “Autopilot Jail,” where the vehicle will prompt the driver to grab the wheel if it does not sense it is being controlled. The vehicle will send a warning message on its dash screen, telling the driver to “Hold Steering Wheel.” If the driver fails to grab the wheel and take control of the vehicle, the car will disable the features, stating, “Autosteer unavailable for the rest of this drive.” If the driver still does not take control of the vehicle, the Tesla will automatically come to a stop in a controlled fashion, activating the hazard lights as a precaution. While some drivers have used Autopilot and FSD as a way to get some extra shut-eye while driving, Tesla has never condoned these actions and has added safety features to prevent these events from occurring. Tesla vehicles are known for being involved in very few accidents. We thank Teslarati.com for reprint permission.

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54

2004-2011 Mazda RX-8 2007-2012 Mazda CX-7 2007-2012 Mazda CX-9 2003-2012 Mazda Mazda6 2004-2005 Mazda MPV 2006-2007 Mazda Mazdaspeed6 The Takata airbag inflators may explode due to degradation of the deployment propellant, ammonium nitrate, which is affected by high humidity and high temperatures. The Mazda Takata airbag inflator recall is expected to begin Dec. 18, 2019. Dealerships will replace the front passenger airbag inflators. Owners may contact Mazda customer service at 800222-5500 and refer to recall number 1317F. We thank CarComplaints .com for reprint permission.

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Ford ‘Death Wobble’ Lawsuit Says F-250 and F-350 Trucks Affected by David A. Wood, CarCompaints.com

A Ford “death wobble” lawsuit alleges the automaker concealed and omitted information about suspension problems in 2005-2019 Ford F-250 and F-350 trucks. According to the class action, Ford routinely tells truck owners any potential repairs won’t be covered under warranties, and dealerships sometimes completely deny there are wobble problems. Wear and tear of the steering damper brackets may cause them to loosen, along with other components such as the shocks, struts, ball joints and control arms. F-250 and F-350 owners claim the so-called death wobble occurs due to defects in the pitman arms, placing a driver in a shocked condition when the wobble occurs while driving. Customers also allege hitting a bump in the road while traveling at least 50 mph can easily cause the death wobble to the point of losing steering control. In addition, truck owners say they must suddenly slow the trucks down to control the shaking and vibrations.

According to the death wobble class action, the trucks don’t need to be old because customers sometimes complain their trucks wobble even when the vehicles are still under the original warranties. It’s common Ford F-250 and F350 owners complain about being scared of being killed if the trucks start wobbling while driving. Also, allegedly common is how dealerships blame the death wobble on faulty maintenance of the trucks. In addition to alleged dealer denials and unnecessary repairs that don’t help the problem, dozens of truck owners allege they quickly lost control of the trucks, with certain situations causing crashes and injuries. The Ford death wobble lawsuit was filed in the U.S. District Court for the Southern District of California - Smalley, et al., v. Ford Motor Company. The plaintiffs are represented by Dreyer Babich Buccola Wood Campora, LLP. CarComplaints.com has F-250 and F-350 customer complaints. We thank CarCompaints.com for reprint permission.

Autoliv Introduces Airbag That Prevents Passengers From Colliding Autoliv Inc., the worldwide leader in vehicle safety systems, announced the development of a new front center airbag that is designed to save lives in side-impact crash situations. The head is one of the most frequently injured body regions in any road collision potentially resulting in devastating long-term

consequences for the victim. For side collisions from the opposite side, the passenger may hit the vehicle interior or the other front seat passenger, sustaining injuries to the head and chest. To improve protection for these injuries, Euro NCAP has introduced the far-side load

case in the rating program from Jan. 1, 2020. The new Autoliv Front Center Airbag helps avoid driver-to-interior and driver-to-passenger impact. The inboard seat mounted airbag deploys in the space between the driver and the front-seat passenger, providing protection for them from colliding during a side impact and reduces risk of trauma to head, shoulder and chest. “Research indicates that the new Front Center Airbag can reduce injuries caused by passengers colliding with each other by up to 80%. If there is no one in the front passenger seat, the airbag will offer enhanced driver protection from a far-side collision. It is a technology innovation that underlines Autoliv’s commitment to saving lives and preventing injuries on the roads across the world,” says Scott Dershem, Autoliv vice president of development. The Autoliv Front Center Airbag will be introduced in 19 car models in 2020. Obtained via PR Newswire.

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autobodynews.com / JANUARY 2020 AUTOBODY NEWS

55


Glass Installation and ADAS – The Game is Changing by Gary Ledoux

From the dawn of the automotive age up until around the early 1970s, a windshield’s job was simple - keep rain and snow away from the car’s occupants. In the mid-1970s, windshields took on a more active role adding structural integrity to the car’s body thereby increasing occupant safety. In the mid-1980s, the windshield served as an integral part of an airbag system, ensuring that the airbag was able to stay in front of the vehicle’s front-seat occupants mitigating injury. Today, the windshield not only protects occupants, but serves as a protective cover for frontfacing cameras as part of the car’s Advanced Driver Assistance Systems (ADAS). It becomes, in effect, a “second lens” that the camera must “look” through. So, it is imperative that the glass acuity be clear, precise and unobstructed – and that the camera is recalibrated upon the windshield’s replacement. “In the past,” said glass industry consultant Bob Beranek, “glass and labor was cheap. A $300 windshield replacement was just a nuisance claim for an insurance company. Today, the replacement of a hightech windshield with recalibration can be upwards of $1,000 or more. No wonder insurance companies are taking notice.” Debra Levy, president of the Auto Glass Safety Council (AGSC) located in Stafford, VA, has a positive outlook on the fast-changing world of auto glass replacement despite challenges created by the need to recalibrate ADAS systems after a windshield is replaced. The AGSC was founded in the late 1990s when professionals from windshield manufacturers, car makers, adhesive companies, and auto glass retailers came together with the goal of defining auto glass safety. This group began the process of establishing a safety standard for the auto glass industry. By 1999, AGSC had developed the Auto Glass Replacement Safety Standard (AGRSS) in partnership with the American National Standards Institute (ANSI). Since that time, many safety-conscious auto glass retailers have voluntarily 56

agreed to follow the AGRSS Standard and have become AGSC members. The AGSC has provided the necessary standard for auto glass retailers to follow to make sure all precautions are taken to ensure driver and passenger safety. Unlike OE certification programs in the collision repair world, AGSC glass shops must agree to maintain certain standards and protocols for repair and are periodically

Some uneducated glass installers may not even mention it or completely dismiss the idea of recalibration. Levy noted, “I cringe when someone tells me they had a windshield replaced at a non-AGSC shop, and the shop manager told the customer that recalibration is not necessary on an ADAS-equipped car.” At the last Auto Glass Week trade show held in September in Indianapolis, a two-hour, standing-

“I cringe when someone tells me they had a windshield replaced at a non-AGSC shop, and the shop manager told the customer that recalibration is not necessary on an ADAS-equipped car.” — Debra Levy audited by a third party. And unlike I-CAR or ASE in the collision repair world, AGSC administers installer certification. In addition, AGSC provides education for the insurance industry and consumers. Levy noted, “The regular standards have been around for 20 years now. These deal with proper procedures, installation safety, and using the correct adhesive and sealant systems. We are developing and will soon launch standards and protocols for dealing with cars with ADAS systems. This will include identifying the different systems and how to properly calibrate front-facing cameras. This is a positive step for the glass repair and replacement industry and something that is sorely needed.” Of the estimated 8,000 to 12,000 auto glass installation companies operating in the U.S., about 1,000 are AGSC members and considered top performers. At present, glass installers are taking several different approaches to deal with ADAS equipped cars. Levy notes that AGSC members follow one of four options. Some have stepped up, purchased the necessary equipment and are recalibrating cars themselves. Some use an independent company that specializes in recalibrating ADAS cars. (A cottage industry has grown up around this operation). Some send the car to the local OE dealer. And some simply notify the customer that the car has to be recalibrated, and that they should contact their local car dealer for their make.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

room-only panel discussion on recalibration was held. Co-sponsored by the AGSC for the third year running, this was one of the most popular events of the show. Installers were hungry for information. The panel fielded questions such as: • Are there any red flags that

will tell me if a job will require more research before starting? • How do I know if a car will be a major hassle before I even start on it? • Some car dealers are telling us they can’t see our customer’s car (for recalibration) for a week. How do we deal with that? • The dealers are not informed (about how to work on an ADASequipped car.) They don’t read their own literature. How do we deal with that?

One of the questions that arose about recalibrating is: should a glass installer start a separate company just for doing recalibration operations? One installer gave an emphatic “yes” and said that was one of the first things he did. Levy explains, “Having a separate company more easily allows them to do work for others including glass installers, body shops, and mechanical shops. It avoids a conflict of interest and insurance companies have an easier time reimbursing for the operation if it is sublet to a third party.” Beranek added, “They can even do calibrations

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autobodynews.com / JANUARY 2020 AUTOBODY NEWS

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for car dealers.” Recently, Safelite, famous for replacing windshields at a customer’s “home or office” launched a new television ad that shows a customer bringing her car to a Safelite shop where the windshield is replaced and front camera recalibrated, a nuanced difference to be sure which retail consumers may not notice, but is not lost on those in the industry. Levy noted, “Depending on the car, the work may need to be done in a controlled environment or it may be done on-site. Obviously, if a vehicle needs to be on a perfectly flat surface a street or parking lot may not be the best place.” Bob Beranek is the principal for Automotive Glass Consultants in Sun Prairie, WI, providing training, information and consulting services to the glass repair and replacement industry. Beranek noted, “The business model of changing a windshield at a person’s home or place of business is quickly coming to a close. Most cars can’t be effectively calibrated in the field after a windshield replacement.” Beranek notes that most domes-

tic cars require a dynamic calibration, meaning the car has to be driven a certain number of miles or time under certain conditions to recalibrate the forward-facing camera. Most foreign cars can be recalibrated in static mode, meaning the car sits still during the process. Other cars, like Honda, require both. And some OE’s do not release recalibration information publicly – they make it available to only their dealers. This really limits the number of places and the conditions under which this brand of car can safely be recalibrated. Asked about the liability that a glass installer may face if they don’t properly address a car with an ADAS system after a windshield replacement Beranek said, “If the installer does not do the calibration themselves, or subcontract someone else to do it, or at least tell the customer that it has to be done and have the customer sign off on it, the installer could be liable in the case of a subsequent accident. That said, a car may be perfectly recalibrated. Five minutes later, the settings can be knocked off by hitting a pothole or driving through a construction site thereby

mitigating the installer’s liability.” Beranek agrees with Levy’s assertion that a cottage industry continues to grow around postglass-replacement front-camera recalibration. He says, “Companies like Snap-On, Opti-Aim, Autel, and asTech and soon AirPro all have equipment that will cover 90% of the cars on the road. The equipment is expensive, but the process is not difficult. The process may require a certain amount of unobstructed flat space, where ambient light can be controlled. But if an enterprising person wants to invest in it, they have a ready-made and growing business.” OE dealers are perhaps the most qualified to do post-glass-replacement ADAS recalibrations and should have the corner on the market. Instead, most have shunned the work and the profit it might have generated, creating a void within the industry filled by small one and twoperson operations. When asked what the future may hold, Beranek noted, “It wouldn’t be hard to make these cars self-calibrating, especially for the forward-facing camera which drives a lot of the sys-

tem. This could be the case in as little as five to ten years. Today, the OE’s may be afraid that a self-calibrating system may open themselves up to lawsuits if the system doesn’t perform properly, but that is true of any system in the car.” On the question of current liability for glass installers, and since he has served as an industry expert on several glass-related lawsuits (not ADAS related because it is too soon) Beranek said, “Right now, everyone is trying to figure this out. ADAS is new to the industry. It snuck up on us and is not yet on lawyer’s radar. Eventually, a system will fail, someone will get hurt, it will go back to the glass installer, and the lawyers will be all over this.”

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Another 1.4M Vehicles Added to Takata Airbag Recall by Staff, Auto Remarketing

A development that an expert on the topic discussed during Used Car Week 2019 arrived on Wednesday, Dec. 4, involving older models that might be in your inventory or run sheet. The National Highway Traffic Safety Administration said another 1.4 million vehicles are being added to the massive Takata airbag recall. A letter written by Joshua Neff, who is chief of the recall management division with NHTSA’s Office of Defects Investigations Enforcement indicated this batch of vehicles is from the 1995 through 2000 model years. “Tens of millions of vehicles with Takata airbags are under recall. Longterm exposure to high heat and humidity can cause these airbags to explode when deployed. Such explosions have caused injuries and deaths,” NHSTA posted on its website. “On Dec. 4, 2019, a separate group of 1.4 million vehicles was recalled because of defective Takata airbags. Unlike the airbag inflators in the larger Takata recalls, these vehicles contain Non-Azide Driver Inflators. The defect in the NADI inflators can result in the inflator ei-

ther exploding or underinflating during deployment,” the regulator continued on its website. “NHTSA urges vehicle owners to take a few simple steps to protect themselves and others from this very serious threat to safety,” NHTSA went on to say. Jerry Cox, who is chairman and chief executive officer with Potomac Strategy Associates, appeared at Used Car Week and shared insights that could help auctions and dealerships that might be handling vehicles still impacted by these Takata recalls. Cox also was a guest on the Auto Remarketing Podcast. In an email message to Auto Remarketing sent late on Wednesday, Cox elaborated on points made during his Used Car Week workshop and on the podcast. “Today’s recall is for Takata inflators that were made with a strontium nitrate oxidizer — before 2000, when they adopted the super-cheap option of ammonium nitrate as the propellant. It has taken more than 20 years, but the chemical in the affected vehicles has crumbled. This creates more surface area for ignition, and that results in a powerful

explosion that turns the inflator into a hand grenade,” Cox said. “The ammonium nitrate propellant in the more recently designed inflators will crumble even faster,” he continued. “NHTSA pretended that a desiccant called Zeolite might slow that process when they recalled the first 42 million cars. The agency invited Takata (before it went bankrupt) to show that these desiccated inflators were safe for long-term use, but NHTSA said it would force the recall of another 30 million cars if it didn’t receive such proof before Dec. 31, 2019. “To the best of my knowledge, nobody can argue with a straight face that Zeolite is a magic bullet,” Cox went on to say. “If NHTSA is doing its job, it will bring the total number of vehicles under recall up to 70 million cars early next year. That will include millions of MY 2017 & 2018 cars and make life vastly more difficult and risky for dealers.” We thank Auto Remarketing for reprint permission.

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GM CCA Grows My GM Partner Perks

General Motors Customer Care and Aftersales announced milestone growth, as well as a new enhancement to my GM Partner Perks. Launched earlier this year, my GM Partner Perks provides enrolled repair facilities and collision shops with a comprehensive parts loyalty program. “my GM Partner Perks makes it easier for dealers, direct accounts and our independent aftermarket partners to conduct business with us,” said Kris Mayer, general director of retail and wholesale dealer channels, GM CCA. Starting Jan. 1, 2020, my GM Partner Perks members will be able to participate in a streamlined process for quarterly trade rebates through the my GM Partner Perks portal with just a few clicks. “GM CCA has been on a journey to strengthen our overall parts offerings and we are continuing to deliver for our business partners and customers as industry trends evolve,” said Mark Drennan, general director of ACDelco channel, GM CCA.

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Subaru Forester Passenger Airbag Sensor Lawsuit Filed by David A. Wood, CarComplaints.com

Subaru Forester passenger airbag sensor lawsuit alleges the occupant detection systems have errors that cause the airbags to deactivate when adults are in the passenger seats. According to the plaintiff, 2015-2018 Subaru Foresters are affected by the problems, and her 2018 Forester is a good example. The lawsuit alleges the plaintiff took the vehicle to a dealership which found problems with the detection system. Technicians allegedly didn’t make any repairs but told the plaintiff not to place electronic items in the passenger seat. The plaintiff says the airbags work part of the time and fail other times whether a passenger is in the seat or not. This is a danger that can cause an occupant their life, and Subaru allegedly knows there are problems but has failed to warn consumers. The National Highway Traffic Safety Administration (NHTSA) opened an investigation in August into passenger airbag sensor problems after receiving 51 complaints about 2016-2018 Subaru Foresters.

According to NHTSA, Subaru owners said the passenger airbag warning lights indicated the airbags were turned off when adults were in the seats. Customers reported the airbag sensors deactivated the airbags and also caused the seat belt alarms to continually give audible warnings.

Forester owners also reported paying as much as $1,000 to repair the passenger airbag systems, and many times the waits were long because replacement parts were backordered. Subaru recalled more than 366,000 model year 2015-2018 Foresters in October after finding the passenger occupant detection system sensor mat harnesses could experi-

ence problems because of contact pressure between the terminals. According to the automaker, the passenger airbags could deactivate and then reactivate without warning because of the terminal problems. Subaru also admitted what customers were reporting, namely that the airbag warning lights indicated the airbags were off when they should have been on. In documents submitted to NHTSA, Subaru said turning off the ignition then turning it back on would reset the system and correct the faults. But the automaker also said this could be a temporary condition until the problem reoccurred while driving. When the recall was announced, Subaru also confirmed what customers had been saying about long waits for replacement parts that were on backorder. Subaru also told NHTSA that in addition to the government receiving about 50 complaints, customers had filed more than 220 passenger airbag complaints direct with the automaker. We thank CarComplaints.com for reprint permission.

Car-Part.com Receives Company of the Year Award

On Nov. 6, Car-Part.com received CIECA’s Company of the Year award during the Collision Industry Red Carpet Awards Breakfast, honoring the company for its ongoing commitment to the collision repair sector. Held in conjunction with the SEMA Show in Las Vegas, the third annual Collision Industry Red Carpet Awards Breakfast honored the industry’s most charitable and professional achievements. Among the winners was Car-Part.com, which received CIECA’s Company of the Year award. The company was selected based on its commitments to more than a dozen committees and organizations. Jeff Shroder, CIECA’s treasurer and the owner of Car-Part.com, accepted the prize on the company’s behalf, with Ed Weidmann, CIECA’s executive director, and Clint Marlow, CIECA’s past-chair and director of AllState posing by his side. CIECA said it is “tremendously grateful” for the company, which understands the importance of being innovative and the creation of new products.

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Three Weeks After GM Strike, Dealers Await 2020 Models, Cut Back Hours by Kalea Hall, The Detroit News

General Motors Co. (GM) dealers are still dealing with the aftereffects of a six-week strike by the United Auto Workers. Three weeks after the walkout ended, dealers have begun getting some of the parts needed for service departments and body shops. And though the inventory of new cars and trucks remained fairly robust during the shutdown, some dealers are concerned about a lag in new deliveries as production gets back up to speed and car-haulers make their way to showrooms. The UAW’s national strike against GM shut down 55 facilities across the U.S., stopping production of parts and an estimated 300,000 new vehicles, costing GM nearly $3 billion. GM dealers say they took hits to their bottom lines on both the sales and service sides. At Motor City Buick GMC in Bakersfield, CA, new-vehicle sales were down 8% in October and are expected to be off 8% this month. “We are hopeful we can make up some of that due to pent-up demand in December, but December is

AAPEX 2020 to Expand With Repair Shop HQ

For the first time in many years, AAPEX will expand and add Repair Shop HQ to meet the needs of today’s service professionals. AAPEX represents the more than $1 trillion global automotive aftermarket industry and will take place Tuesday, Nov. 3 through Thursday, Nov. 5, 2020, in Las Vegas. The AAPEX 2020 expansion also includes a new robotics and warehouse equipment and logistics section. “The ultimate goal of this expansion is to enable AAPEX and the entire supply chain to be more efficient, while proactively addressing changes in the industry by presenting solutions,” said Bill Hanvey, president and CEO of the Auto Care Association. “We will deliver solutions to the shop in order for them to be ahead of the curve. And we will champion opportunities for parts manufacturers to utilize data more efficiently to enhance their relationship with their customers,” added Paul McCarthy, president and COO of the Automotive Aftermarket Suppliers Association (AASA).

always a big month, so it’s kind of hard to set a new benchmark on top of an old benchmark,” said John Pitre, chief operating officer at the dealership. But three weeks after the strike ended, Motor City Buick GMC is feeling the pinch even more than it did during much of the walkout. “We didn’t feel it for the first three weeks of the strike because our pipeline is about two to three weeks long,” Pitre said. “We are feeling it much more now than we did in October.” At Matthew-Hargreaves Chevrolet in Royal Oak, MI, general manager Walt Tutak expects to see the sales side of the business feel a delayed strike impact as they await new models that normally would already be on the lot. Ideally, Tutak likes to have 500 vehicles — a two-month supply — on the ground, with another 250 coming in for delivery during the month to make up for the 250 that will be sold. When this process gets interrupted, he said, “You’re going to have a shortage.” GM still had an ample 81-day supply of cars, trucks and SUVs two

weeks into the strike, above the industry’s average of 66 days, according to. That cushioned the impact. “GM loaded up their dealers with inventory prior to the strike and so they had surplus inventory,” said Brad Korner, general manager of Cox Automotive Rates and Incentives. “They didn’t take their foot off the gas at all.” But analysts do think the inventory is under pressure somewhat now. Tutak hasn’t had a shortage of vehicles yet, but if he does, he predicts it will be Chevrolet Silverados, even though he tries to keep a four-month supply of the pickup on the Royal Oak lot. “We may have fewer sales in the Silverados, but we will make it up in the other areas where we have other inventory,” he said. “So, what we will do is push what we have.” The dealership’s sales did not suffer during the actual strike, which surprised Tutak because MatthewHargreaves Chevrolet is in a GM town, and out-of-work strikers weren’t expected to buy new vehicles. The work stoppage still hurt profitability at the Royal Oak dealership because of the hit to body

and service shops. Business in those departments is off roughly 25%, Tutak said. “It affects the bottom line because we are used to having customers come in and we repair their vehicles and they pay for them,” he said. “Now these vehicles are just sitting.” The parts most needed are engines, transmissions, fenders and bumpers. When the UAW ratified a new contract with GM on Oct. 25 and ended the strike, GM sent a note to dealers stating that a top priority was to restore the parts distribution network. GM spokesman Jim Cain said of the parts distribution: “We are still working to recover and make progress every day.” Pitre said he was still waiting on about $250,000 worth of parts for about 80 vehicles waiting to be repaired. There have been a lot of rentals for customers waiting for repairs, he said. “I’ve seen more $1,000 rental car bills in the last six weeks than I have probably seen in the last five years.” We thank The Detroit News for reprint permission.

Chrysler Lawsuit Involving Leaky Sunroofs Seeks Settlement The ongoing lawsuit between David Cox and Chrysler could be settled soon. According to court documents, the 2014 class-action lawsuit could reach a settlement agreement of $350,000 for attorneys’ fees and $4,000 that would be awarded to Cox, the plaintiff in this case, as an incentive award. The lawsuit against Chrysler, which was first filed in 2014 by Cox, alleged the manufacturer was negligent in disclosing to owners that regular maintenance is needed on affected vehicles’ sunroof drain tubes. The Jeep Patriot, Jeep Liberty, Jeep Compass, Jeep Commander, Jeep Cherokee, Jeep Grand Cherokee, Chrysler Town and Country and Chrysler 300, from model years 2009 to present were named in the lawsuit. “FCA [Fiat Chrysler automobiles] US does not agree with all of the characterizations of the facts set forth by plaintiff in these motions. However, it does agree that the proposed class settlement is fundamentally fair, adequate, and reasonable, and that it should be approved by the Court. Furthermore, FCA US has no

objection to entry of an order awarding attorneys’ fees, costs, and an incentive award, provided that the amounts do not exceed the following: $350,000 for attorneys’ fees; $128,873.79 for costs; and $4,000.00 for an incentive award for plaintiff,” a portion of court documents read. In his original complaint, Cox stated he owned a 2010 Jeep Patriot for less than a year before the sunroof began leaking, which damaged the interior. “Cox brought his vehicle in to the Chrysler dealer’s service department to service the sunroof leak immediately. The Chrysler dealer replaced the radio and cleaned out the sunroof drain tubes. However, the sunroof has leaked several times since the first attempted repair, once again damaging the radio display and causing electrical malfunctions in the sunroof. Thus, on June 26, 2013, Cox brought the vehicle in to the Chrysler service department again to service the sunroof leak. However, Chrysler refused to repair the sunroof leak under the warranty stating that clogged drain tubes is a maintenance problem. As a result, Cox continues to observe water

leaking into and through the sunroof and interior dome light that has resulted in electrical problems, a noticeable musty or moldy smell and water damage to the interior of his vehicle,” a portion of the complaint reads. Throughout his complaint, Cox claims he was never told by Chrysler that the vehicle’s sunroof drain tubes would need routine maintenance. Chrysler responded to the complaint by denying most of the allegations that were made against the company. The auto manufacturer also stood by its warranty in its response. “FCA US admits that it provides a written limited warranty for the vehicles it sells which covers the cost of repairs for certain items for three years or 36,000 miles from the date the vehicle is first put into service, whichever occurs first. Further FCA US states that the warranty document speaks for itself,” a portion of Chrysler’s response reads. Currently, both Cox and Chrysler are waiting for the judge’s response to the settlement motion. We thank www.glassBYTEs.com for reprint permission.

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