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Columnist Mike Causey Announces Candidacy for Commissioner of Insurance Position in North Carolina Mike Causey, a sometime Autobody News columnist, announced his candidacy for North Carolina’s Commissioner of Insurance position in Greensboro in early January. Causey chose Dare County to launch his campaign he said, “…to bring focus on the problem of insurance in the coastal counties. Premiums for Mike Causey household insurance, especially windstorm insurance, have skyrocketed in recent years in
eastern North Carolina, worse yet in the coastal counties.” Causey said he was urged by North Carolina Republican leaders to seek the office this year because of widespread and bipartisan criticism of how the State Office of Insurance has been administered. Causey is also known as a consumer advocate and lobbyist for the Independent Auto Body Association (IABA) as well as healthcare groups and Organic farming and Healthy Eating advocacy. This will be Causey’s fourth atSee Candidate Causey, Page 42
California’s DOI Calls Meeting, Drafts Reforms to Labor Rate Surveys, DRPs, and Steering In a letter to ‘Certain Interested and Affected Parties’ the California DOI has taken a second step to address concerns of collision industry stakeholders. In November the DOI’s legal division hosted a meeting to discuss proposed revised aftermarket part regulations. The results of that discussion are under review by the department (see http://tiny.cc/ydvp6). Now the DOI, under Commissioner Dave Jones, is taking on the issue of Labor Rate Surveys, DRPs, and Steering. Departmental attorney, Teresa R. Campbell has organized a January 25th meeting (10–12:00 noon at the DOI in Sacra-
mento, after this issue goes to press) and has drafted contemplated revisions to the California Code of Regulations, impacting Direct Repair Programs and Labor Rate Surveys. Steering is also addressed in language concerning insurer recommendations of automobile repair dealers. Although welcoming input and discusssion, the ‘rulemaking file’ will not be opened until formal notice is given by DOI and that comments must be submitted during the formal public comment period. The language (complete text at autobodynews.com) proposes that in-
VOL. 1 ISSUE 11 FEBRUARY 2012
‘Standards’ Replace Non-OEM Parts as Focus of Debate at Latest CIC by John Yoswick
A report at the Collision Industry Conference (CIC) on the findings of a study into what consensus exists within the industry about the development and implementation of formalized repair standards led to as much discussion about the value and validity of the study as it did to discussion of standards themselves. “I do believe this has set us backward instead of forward,” Dusty Womble of Roger Beasley Collision Center in Austin, Texas, said of the study. “I’m sorry, but honestly, I don’t see any value in the research that has been done.” But Massachusetts shop owner Chuck Sulkala—who has not participated on the committee that organ-
ized the study but was one of those interviewed by the consultant conducting the research—said some at CIC were incorrectly presuming that the committee was trying to make more of the report than it was. “Some of the conversations here are getting us down into the weeds right now when I don’t think we’ve even gotten in the boat yet,” Sulkala said. “We’re still looking to see where the boat and lake is, to see what’s going on rather than trying to catch fish. I think we’re still in the very beginning stages.” The Study and Findings Russ Thrall of the Repair Standards Advisory Committee (an off-shoot of CIC) was clear in presenting a portion See CIC Palm Springs, Page 47
Rich Evans’ Charity Build for PatriotOutreach (see p. 58) and also Baby Cancer Foundation Autobody News custom columnist Rich Evans had a busy fall and holiday season at his shop in Huntington Beach, CA. As they have for the past four years, Rich and Patricia Evans held their Christmas party at Huntington Beach Body Works on Saturday, December 17. The party benefitted America’s
Baby Cancer Foundation. The party also included a special appearance from Santa with gifts,
See CA DOI Page 49
Rich Evans with party attendees showing off some of the gifts they received
Benefit attendees lined up for a chance to visit with Santa
food, drinks, and special motor sports themed entertainment. For more information please visit www.babycancer.org or www.huntingtonbchbodyworks.com. See Rich’s column this issue.
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2 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Evans - Doing a Charity Build for Patriot Outreach on a Donated Mustang. . . . . . . . 58 Franklin - Creating A Readable Advertising Piece . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 I-CAR - Accessing and Repairing Body Mount Cage Nuts for the Ford F-150 . . . . . . . . . . 30 Insurance Insider - Legislating the “Bible” Not the Answer for Shops Tired of Being Told “No” . . . . . . . . . . . . . . . . . . . . . . . . . 40 Schroeder - The Elite Group Collision Centers Acquires Firestone Auto Body in Downey, CA, Increasing Their Locations to Eight. . . 56 Sisk - A1 Grand Auto Body in NY—A Family Commitment to Quality Repair . . . . . . . . . 18 Sisk - Customers Expect Quality in All Respects from The Body Shop of Athens . 62 Weaver - Check Engine Light Paranoia . . . . . 35 Williams - South Motors Automotive Group— Anything But Apathetic . . . . . . . . . . . . . . . 22 NATIONAL ‘Standards’ Replace Non-OEM Parts as Focus of Debate at Latest CIC. . . . . . . . . . . . . . . . 1 2012 NABC Annual Fundraiser Held in Conjunction with CIC in Palm Springs, CA. 43 40 Technicians Honored at ASE 2011 Annual Meeting in Charlotte, NC . . . . . . . . . . . . . . . 8 Airbags Changing Vehicle Scrappage Age Mix . 18 ANPAC Responds to Texas DOI. . . . . . . . . . . 12 ASE Announces New Officers, Governors for 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ASRW Calling For Presenters at NACE/CARS 2012 . . . . . . . . . . . . . . . . . . 48 Automakers Forecasted to Add Thousands of Plant Manufacturing Jobs Over the Next 3 Years. . . . . . . . . . . . . . . . . . . . . . . . 6 BMW Announces Nearly $900 Million Investment, Adding 300 Jobs at its South Carolina Plant . . . . . . . . . . . . . . . . . 54 CA/NV/AZ Automotive Wholesalers Association (CAWA) Delivers Rebuttal to Letter of Opposition to “Imitation” Aftermarket Crash Parts Legislation. . . . . . . . . . . . . . . 50 California’s DOI Calls Meeting, Drafts Reforms to Labor Rate Surveys, DRPs, and Steering. . . . . . . . . . . . . . . . . . . . . . . . 1 CIECA Announces New Board of Trustees for 2012. . . . . . . . . . . . . . . . . . . . . . . . . . 14 Collision Hub Launches The Hub™ Your Social Media Toolbox . . . . . . . . . . . . . . . . 12
Columnist Mike Causey Announces Candidacy for Commissioner of Insurance Position in North Carolina . . . . . . 1 Diamond Standard Announces “Security Shield” Extends Product Liability Protection to Shops . . . . . . . . . . . . . . . . . 34 Erie Insurance Earns I-CAR Gold Class Professionals Badge. . . . . . . . . . . . . . . . . 36 Florida’s Auto Angels Host Second Annual Vehicle Giveaway, Planning for 2013 . . . . 53 Heavy Duty Aftermarket Associations Join Forces . . . . . . . . . . . . . . . . . . . . . . . 54 Hitting the Streets with California’s G & C Auto Body Meter Beaters . . . . . . . . . . . . . 60 Meguiar’s Endows 676 Schools with $600K Product Donation Through Collision Repair Education Foundation . . . . . . . . . . . . . . . . 42 Mitchell Announces Wicklunds CARSTAR as Winner of Get-a-Life Dream Vacation . . . . 52 Mitchell Parts Index Sheds Light on Parts Trends Post Japan’s Tsunami . . . . . . . . . . 24 National Highway Traffic Safety Adminstration (NHTSA) Concludes Chevy Volt Investigation . 52 Nissan and Daimler to Produce Engines Together at Nissan’s Tennessee Plant . . . . 55 NRC Releases Automotive Electronics Safety Report . . . . . . . . . . . . . . . . . . . . . . 57 Oregon Shop’s Parts Manager Performs Heroic Deed to Save a Life . . . . . . . . . . . . 28 Parts Distributor and Insurer Elected to CAPA’s Board of Directors . . . . . . . . . . . . 46 PCI Says Auto Body Legislation will be Priority for 2012 . . . . . . . . . . . . . . . . . . . . 36 Polk Says Average Age of Vehicles is at Record High . . . . . . . . . . . . . . . . . . . . . . . 12 Rich Evans’ Charity Build for PatriotOutreach (see p. 58) and also Baby Cancer Foundation. 1 Rotary Lift, Chief and Elektron Coming to National Automobile Dealers Association Expo . . . . . . . . . . . . . . . . . . . 44 Sales Rebound and Mix Change For New Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 51 SCRS Responds to Article on Insurer Involvement in Setting Rates . . . . . . . . . . 24 SCRS, ASA, AASP Release Joint Statement Regarding the Collection and Reporting of Repairer Business Data . . . . . . . . . . . . 45 Solera Announces Global Cooperation With Allianz . . . . . . . . . . . . . . . . . . . . . . . 48 State Farm Concedes Another Lawsuit Brought by Gunder’s Auto Center of Lakeland, Fl . . 14 Three Developments Shaping ‘11 Aftermarket . 48 Update: Delray Beach, FL, Shop Owner’s Opposition to GEICO’s 10% Charge on Domestic OEM Parts Pays Off . . . . . . . . . 29 UPDATE: Houston City Council Delays Vote on Auto Repair Ordinance, Draft Not Favorable to Shops . . . . . . . . . . . . . . . . . . . . . . . . . 38 Used Car Drought Ignites Dealer Bay Competition . . . . . . . . . . . . . . . . . . . . . . . 61 Van Tuyl Group to Hold Charity Super Bowl Event in the Dallas-Fort Worth Area Super Bowl Weekend, Autobody News to Participate . . . . . . . . . . . . . . . . . . . . . . . . 20 West Virginia v. Liberty Mutual Salvage Parts Lawsuit Moved to Federal Court . . . . . . . . 34 Women’s Industry Network Accepting 2012 Board Applications . . . . . . . . . . . . . . . . . . 14
Approximately 900,000 Units Expected for Month, 13.2 Million Seasonally Adjusted Annualized Rate
January Sales to Improve Nearly 10 Percent Year-Over-Year Sales Volume
Market Share
Jan 2012
Jan 2011
Manufacturer
Jan 2012
Jan 2011
YOY%
Ford Motor Company Toyota Motor Corp.
144,900
126,981
14.1% 16.1% 15.5%
0.6%
70,993
31.8% 10.4%
8.7%
1.7%
65,002
23.2%
7.9%
819,394
9.8%
General Motors
Chrysler Group
American Honda Motor Co. Hyundai-Kia
Nissan North America Total:
169,200 121,500 93,600 81,000 80,100 79,200
900,000*
178,887 115,856 76,268 71,847
5.4%
18.8% 21.8% -3.0%
4.9%
13.5% 14.1% -0.6%
6.2%
9.0%
10.2%
8.8%
8.9% —
*Includes projections for brands not shown
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Amato Agency . . . . . . . . . . . . . . . . 36 Auto Exchange . . . . . . . . . . . . . . . . 22 Autoland Scientech. . . . . . . . . . . . . 35 Audi Wholesale Parts Dealers . . . . 61 BMW Audi of Turnersville . . . . . . . . 46 BMW Wholesale Parts Dealers . . . . 28 Cadillac of Mahwah . . . . . . . . . . . . 10 CCC Information Services . . . . . . . . 7 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 15 Classifieds. . . . . . . . . . . . . . . . . . . . 63 CSS USA, Inc.. . . . . . . . . . . . . . . . . 29 DCH Family of BMW Stores . . . . . . 11 DuPont . . . . . . . . . . . . . . . . . . . . . . . 5 Equalizer Industries . . . . . . . . . . . . 42 Ford Wholesale Parts Dealers . . . . 51 Fred Beans Parts . . . . . . . . . . . . . . 64 Fuccillo Auto Group. . . . . . . . . . 26-27 Garmat . . . . . . . . . . . . . . . . . . . . . . . 6 GM Wholesale Parts Dealers . . . . . 55 Healey Chevrolet. . . . . . . . . . . . . . . 20 Hoffman Services Inc.. . . . . . . . . . . . 9 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers . 57 Jaguar Wholesale Parts Dealers. . . 54 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 44 Koeppel VW-Mazda . . . . . . . . . . . . 43 Lazare Kia . . . . . . . . . . . . . . . . . . . . 23 Lexus Wholesale Parts Dealers . . . 48 Matrix. . . . . . . . . . . . . . . . . . . . . . . . 14 Maxon Hyundai. . . . . . . . . . . . . . . . 13
YOY%
9.3%
-0.3%
8.8%
0.0%
—
1.0% —
Serving New York, New Jersey, Pennsylvania, Delaware 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. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Northeast
REGIONAL AASP/NJ Gears Up for NORTHEAST Show, Announces Exhibitors. . . . . . . . . . . . . . . . . 4 High School Automotive Repair Program in Wayne, NJ, Wins $10,000 in Equipment and Cash With Video . . . . . . . . . . . . . . . . 60 New 10,000-sq-ft Hovis Tech Training Center Opens in Mercer, PA . . . . . . . . . . . . . . . . . 15 NY Dealers Add $25B to Economy, Report Says . . . . . . . . . . . . . . . . . . . . . . . . 4 PA Congressman Proposes Repeal of $7,500 EV Rebate . . . . . . . . . . . . . . . . . . . . . . . . . 6 PA Dealership Founder Ronald Ertley Passes Away at 79, Leaving Legacy of Dealership Consolidation and Community Involvement. 4 Superior Court of NJ Rules in Favor of Allstate in Franchise Lawsuit. . . . . . . . . . . . . . . . . . 4
Kelley Blue Book Forecasts 10 Percent Year-Over-Year Increase In January New-Car Sales
Indexof Advertisers
Contents
Maxon Mazda . . . . . . . . . . . . . . . . . 25 Mazda Wholesale Parts Dealers . . . 53 Mercedes-Benz Wholesale Parts Center . . . . . . . . . . . . . . . . . . . . . 38 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 56 Metric Subaru . . . . . . . . . . . . . . . . . 30 MOPAR Wholesale Parts Dealers . . 31 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 50 Nissan Genuine Parts . . . . . . . . . . . 21 Nucar Mazda. . . . . . . . . . . . . . . . . . 19 Plaza Auto Mall . . . . . . . . . . . . . . . . 37 Porsche Wholesale Parts Dealers . 59 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 RealParts.com. . . . . . . . . . . . . . . . . . 4 Safety Regulations Strategies. . . . . 12 SCA Appraisal Company . . . . . . . . 20 Scion Wholesale Parts Dealers. . . . 52 Security Dodge-Chrysler-Jeep . . . . . 8 Solution Finish . . . . . . . . . . . . . . . . 58 Stadel Motors . . . . . . . . . . . . . . . . . 45 Star-A-Liner . . . . . . . . . . . . . . . . . . . 39 Subaru Wholesale Parts Dealers DE, NJ, PA . . . . . . . . . . . . . . . 16-17 Subaru Wholesale Parts Dealers . . 49 Thompson Organization . . . . . . . . . 41 Toyota Wholesale Parts Dealers . . . 60 VeriFacts . . . . . . . . . . . . . . . . . . . . . 45 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 62 Volvo Wholesale Parts Dealers . . . . 62
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 3
AASP/NJ Gears Up for NORTHEAST Show, Announces Exhibitors
Superior Court of NJ Rules in Favor of Allstate in Franchise Lawsuit
As the AASp/NJ NORTHEAST™ 2012 Automotive Services Show rapidly approaches, the AASP/NJ will be highlighting the 35th annual show’s exhibitors on Facebook (http://www.facebook.com/aaspnjnortheast) and Twitter (@AASPNJNORTHEAST) on a daily basis. The tradeshow takes place March 9, 10 and 11, 2012 at the Meadowlands Exposition Center of Secaucus, NJ. The NORTHEAST™ Show has expanded its web presence significantly over the last four years. “The Internet is an integral part of everyday business,” AASP/NJ President Jeff McDowell says. “For something like the NORTHEAST™ show, a major web presence is not only necessary, but a necessity.” McDowell mentioned that online registration has risen over 75 percent since the NORTHEAST™ show moved to the Meadowlands. “Each year, we have looked to branch out more and more with regard to getting the word out about the show. Our continued growth in attendance can definitely be attributed in large part to Internet marketing as well as traditional avenues.” For more information please visit www.aaspnj.org.
The Allstate Corporation announced January 6 that the Superior Court of New Jersey has entered judgment in favor of Allstate New Jersey Insurance Company, a wholly owned subsidiary of Allstate Insurance Company, and dismissed all claims in the franchise lawsuits filed against Allstate New Jersey. Last year, three exclusive agents filed lawsuits seeking to prevent the termination of their agency agreements for failing to meet certain business objectives. They alleged they had franchise relationships with Allstate New Jersey and were protected under the New Jersey Franchise Practices Act. The plaintiffs’ application to stop their termination was denied. The court determined that the agents were not franchisees and have no protections under the New Jersey Franchise Practices Act. The court noted in its decision that the “insurance industry has never been found by any court in New Jersey, or elsewhere, to be home to an insurance company franchisor, or agent franchisee.” Allstate has maintained that exclusive agents are independent contractor agents and not franchisees.
Ron Ertley, founder of Ertley MotorWorld in Wilkes-Barre, PA, and operater of Ertley Dealership in Moosic, PA, passed away January 7 from cancer at 79, according to the Scranton Times-Tribune. Ertley, founder, owner and CEO of Ertley MotorWorld was remembered as an innovator in the automobile sales business by co-workers and friends at a service held January 12 at St. Stephen’s Episcopal Church in Wilkes-Barre. After graduating from Duke University in North Carolina and receiving an honorable discharge from the Air Force, Ertley returned to eastern Pennsylvania to manage an Oldsmobile dealership with his father. Ertley grew to own the dealership after his father’s retirement. In 1991 Ertley became the first in the area to combine dealerships— founding Ertley MotorWorld in 1991 with the help of his friend and colleague, J. David Power of JD Power and Associates. Ertley MotorWorld was a powerhouse in the eastern Pennsylvania area and was considered the area’s first auto mall with 12 deal-
erships in one location. “The main thing I remember is his innovation and willingness to try whatever the latest and greatest technology and techniques were to move forward in the automotive industry,” Rick Osick, who worked with Mr. Ertley at MotorWorld, told the Scranton Times-Tribune. “He was known as an innovator as far as technology and methods to move a retail business along.” Ertley eventually sold Ertley MotorWorld to investors, and it still exists today, as MotorWorld. Ertley remained in the auto dealership industry, opening a Chrylser-JeepDodge-Kia dealership in Moosic. As a member of the board of the JD Power Superdealer Rountable, a director of the Pennsylvania Automobile Association, a commissioner on the state Board of Transportation and the president of several other automobile dealer boards, Ertley was very active in the Pennsylvania automotive industry. He also strived to be a key member in his community, as he was involved in several local charity groups.
PA Dealership Founder Ronald Ertley Passes Away at 79, Leaving Legacy of Dealership Consolidation and Community Involvement
4 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
NY Dealers Add $25B to Economy, Report Says
Dealers’ success this year seems to be spurring economic recovery along, at least in the Empire State. According to the Greater New York Automobile Dealers Association, franchised dealers in the New York metro area sold 403,000 new and used cars. And as a result, their businesses injected $24.9 billion into the economy, while also providing nearly 56,000 Americans with jobs. Not a surprising number, when the study also showed that the average dealership employs 79 people. These very same dealers also generated $1.71 billion in tax revenue to state and local governments last year Commenting on these numbers, Mark Schienberg, president of GNYADA, said, “Our area’s auto dealers are an enormously important part of the local and state economy because of the revenue they generate and the jobs they produce. “Directly and indirectly, greater New York’s franchised auto dealers provide nearly 56,000 jobs to area residents and are a key part of the region’s economic growth and development,” he added. Moreover, the average dealership paid more than $4.1 million in
payroll expenses. Besides providing jobs and selling cars, dealerships also pump money into the economy through advertising. “An average dealer employs 79 people of which more than a third are in high paying jobs in the service department. Dealers also purchase more advertising than any other sector, providing a lifeline to many local broadcast, print and online media companies. Last year, area dealership advertising totaled $385 million,” said Schienberg. The local economy also received another $253.6 million during the New York International Automobile Show. And nearly $24 million of this pot was formed by city-wide special events and public relations activities by OEMs, the organization noted. “It {the report} includes a review of direct and indirect employment, personal income, tax collections generated by area automobile dealers and a review of dealership financial statistics and operations,” they continued. Headquartered in Whitestone, N.Y., the GNYADA represents nearly 600 franchised automobile dealerships in the metro area of New York.
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 5
ASE Announces New Officers, Governors for 2012 The National Institute for Automotive Service Excellence (ASE) announced in December the officers for its Board of Directors for 2012. Mike Phillips, V.P, Organizational Development, NAPA Auto Parts/Genuine Parts Company, Atlanta, Ga., is Chairman; Rob Barto, Manager, Technical Training Design, Nissan North America, Franklin, Tenn., is Vice-Chairman; Glenn Dahl, Senior Coordinator, Technical Education, Bridgestone Retail Operations, LLC, Bloomingdale, Ill., is Treasurer, and Greg Gaulin, Owner, Gaulin’s of Williamsville, N.Y., is Secretary. John Pfennig, Manager, Service Education for Navistar, Inc. in Warrenville, Ill., serves as Past Chairman. “2011 was a milestone year for the ASE certification program as we completed the move to our new computer-based testing (CBT) format,” said Tim Zilke, ASE President. “The leadership and guidance of the ASE board is vital to ensuring the ASE program keeps pace with our changing industry. Through the outstanding commitment of ASE’s all-volunteer board and the support by the companies that encourage such talented people to serve, ASE will continue to offer our automotive professionals the high-quality credentialing program they have come to expect.” Also announced were newly elected members to ASE’s Board of Governors, representing various segments of the industry. The new Governors are: Bobby Bassett, Manager of Training North America Automo-
tive Market, Gates Corporation, Ridgeland, Miss., and John Prosser, Manager Technical Training Operations, American Honda, Torrance, Calif. “I’d also like to take this opportunity to thank our outgoing board members for their service over the years,” Zilke continued. Stepping down as their terms expire are Al Duebber, President, Duebber’s Automotive Service, Inc., Cincinnati, Ohio; Joe Torchiana, President, One Stop Tire and Auto Service, Inc., West Chester, Pa., and Lori Blaker, President, Technical Training Incorporated (TTi), Rochester, Mich. “Each of these individuals volunteered their time to serve on the ASE board to the benefit of our industry and the thousands of automotive service professionals who proudly wear the ASE Blue Seal. We thank them for their service and wish them continued success,” said Zilke. The National Institute for Automotive Service Excellence was established in 1972 as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians and parts specialists. Today, there are more than 360,000 ASE-certified professionals at work in dealerships, independent shops, collision repair shops, auto parts stores, fleets, schools and colleges throughout the country. For more information about ASE, visit the ASE web site at www.ase.com.
Due to continually increasing auto sales since the government auto bailouts in 2009 have spurred growth and optimism with US automakers. According to the Los Angeles Times, the U.S. auto industry plans to add thousands of jobs this year. Foreign automakers are also suspected to build more U.S. factories due to unstable economies overseas. “The yen, the euro, all the currencies that affect the manufacturers’ balance sheets, except for the dollar, are in flux. So the only way to hedge is to build where you sell,” Rebecca Lindland, an analyst with IHS Automotive, said to the Los Angeles Times. Mercedes-Benz announced the
company would add about 1,500 jobs at plants in the Carolinas this year in early January. Ford Motor Co. and Chrysler Group also announced plans to add hundreds of workers to their Michigan, Kentucky and Illinois plants. Audi executives have also talked about building a factory in the U.S., possibly at the Volkswagen complex in Chattanooga, Tenn. Audi is also rumored to be mulling sites for its own North American manufacturing plant beyond parent Volkswagen’s factory in Chattanooga, Tennessee, Audi CEO Rupert Stadler told a German newspaper.
Automakers Forecasted to Add Thousands of Plant Manufacturing Jobs Over the Next 3 Years
See Automaker Hiring, Page 10
6 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
PA Congressman Proposes Repeal of $7,500 EV Rebate Congressman Mike Kelly (R-PA) introduced into the House of Representatives on December 30 a bill aiming to do away with the $7,500 tax credit for electric vehicle car buyers, titled HR3768. Kelly, who owns a Chevy Car Dealership in Butler, PA, has served in the House representing the 3rd District of Pennsylvania since 2010. The bill, formally titled: “To amend the Internal Revenue Code of 1986 to repeal the credit for plug-in electric drive vehicles”, would amend the IRS code section related to the electric car purchase tax credit, to terminate the tax credit. The $7,500 tax credit came into being in the Emergency Economic Stabilization Act of 2008 (EESA), whose main purpose was the bailout of the financial industry following the meltdown of Sept 2008. The credit was put in place by former President George W. Bush, and continued by current President Barack Obama. Kelly’s personal experience as a dealership owner is suspected to have fueled his introduction of this bill. Kelly’s dealership, which was founded by his father, was almost axed during the GM bankruptcy.
When the Obama Administration Auto Task Force announced plans to shut down more than 1,900 dealerships, including Kelly’s own dealership, his response was to fight the decision to close his dealership, in which he was successful. Reports are that after avoiding shut-down Kelly’s own car dealership took extra steps to shun the Chevy Volt, even going as far as to fire an employee who consented to GM’s request that they bring in a Volt. “I can stock a Chevy Cruze, which is about a $17,500 car and turns every 30 to 40 days out of inventory or I can have a Volt, which never turns and creates nothing for me on the lot except interest costs,” said Kelly in October. “There is no market for this car.” Kelly echoes the main argument espoused by many anti-EV advocates—that electric cars are simply toys for rich people. Kelly says that subsidizing the purchases of upper-income individuals is not the correct course of action to take during these difficult financial times. According to Kelly, the $7,500 credit goes to the “few who can actually afford to buy an electric car.”
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 7
40 Technicians Honored at ASE 2011 Annual Meeting in Charlotte, NC Forty automotive professionals were recognized on November 16, 2011, at the Fall board meeting of the National Institute for Automotive Service Excellence (ASE) held at the Marriott City Center in Charlotte, NC. The annual awards banquet spotlights top scorers on the ASE Certification Tests. Thirty different companies from both OEM and Aftermarket segments sponsored the individual technician recognition awards in the Auto, Truck, Collision and Parts categories, along with three instructor awards. In addition to looking for top scores on ASE tests, award sponsors examine on-the-job excellence, community service and other factors when selecting honorees. This year’s celebration in Charlotte was enhanced by a visit from five former Team ASE drivers, who volunteered their time to sign autographs and meet the award winners in person. NASCAR drivers Kasey Kahne, Jason Leffler and Mike Bliss were joined by Ted Musgrave and Jimmy Spencer to help make the reception a memorable affair. In addition, there
Zilke, ASE President & CEO. “We couldn’t do this without the support of our many award sponsors, whose ranks include some of the best-known names in the industry. Their commitment to excellence is reflected in the talented individuals we recognize each year.” The National Institute for Automotive Service Excellence was established in 1972 as a non-profit organization to help improve PHOTO CREDIT: ASE, ASE 2011 Technician Award the quality of automotive Winners: Top row: Steven Sass, Brad Dressen, Ken Passmore, Adam Russell, Mike Hunkler, John Roderich. 4th service and repair through row: Warren Butrim, Pat Nicoll, Kevin Treichel, Anthony the voluntary testing and Bausano, Scott Rosencrantz, Noel Barnhart, Andreas Miller. certification of automotive 3rd row: Steven Ray, Collin Harris, John Gillies, Dan Walsh, technicians and parts speRob Bender, Neal Nuce, John Kasper. 2nd row: David White, cialists. Today, there are Sandro Giordano, Alan Davis, Shawn Lehman, Jesse Berryman, Rob McNees, Jack Harlan, Joseph DeLap, John, more than 360,000 ASEWood, Glenn Ferrer. 1st row (seated): Joseph Londo, Dan certified professionals at Pratt, Joseph Young, Mike Baker, MSgt. Andrew Slater, work in dealerships, indeMike Byer, Leo Dufault, Andy Olson, Jeff Heinz, Mark Regan pendent shops, collision re“ASE has been honoring the best pair shops, auto parts stores, fleets, of the best in our industry for more schools and colleges throughout the than 30 years, and this year we recog- country. For more information about nized forty outstanding individuals ASE, visit the Web site at from all across the nation,” said Tim www.ase.com. were two new award sponsors this year, one being the first ever from the military, representing the US Air Force.
8 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
ASE 2011 Award Winners ASCCA/ASE Master Automobile Technician of the Year: Patrick Nicoll, Pat’s Automotive, Santa Maria, Calif. AYES/ASE Instructor of the Year: David White, Parkside High School, Willards, Md. BodyShop Business/ASE Master Coll. Repair & Refinish Tech of the Year: Michael Baker, Pro-Tech Collision, Pacific, Mo. Bridgestone Retail Operations/ASE Master Automobile Tech of the Year: Noel Barnhart, Firestone Complete Auto Care, Delmar, Iowa. Chrysler/ASE Master Automobile Technician of the Year: Scott Rosencrantz, Garber Chrysler Dodge Jeep Ram, Flushing, Mich. Chrysler/ASE Master Collision Repair & Refinish Technician of the Year: Mike Hunkler, Larry Hillis Chrysler Dodge Jeep Ram, Poplar Bluff, Mo. Delco Remy/ASE M/H Truck Electrical/Electronic Sys Tech of the Year: Joseph DeLap, Ryder, Dakota, Ill. Delmar Cengage Learning/ASE Auto-
mobile Technician of the Year: William Davis, JD Byrider, N. Baltimore, Ohio. Freightliner/ASE Master M/H Truck Technician of the Year: Robert McNees, Jr., Truck Centers, Inc., Middle Brook, Mo. Sterling/Western Star/ASE Master M/H Truck Technician of the Year: Kevin Treichel, Don’s Truck Sales, Greene, Iowa. Gates/ASE Master Automobile & L1 Technician of the Year: Andreas Miller, Stonum Automotive, Longmont, Colo. GM/ASE Master Automobile Technician of the Year: Jeffrey Heinz, Hendrick Auto Mall, Apex, N.C. Honda/ASE Master Automobile Technician of the Year: Joseph Londo, Bianchi Honda, Erie, Penna. Acura/ASE Master Automobile Technician of the Year: Sandro Giordano, Acura of Turnersville, Blackwood, N.J. Identifix/ASE Aftermarket Drivability Technician of the Year: Andy Olson, Courtesy Car Care, Holmen, Wisc. Midas International/ASE Automobile Technician of the Year: John Gillies III, Midas Auto Service Experts, Lud-
ington, Mich. Mitchell 1/ASE Technician of the Future: Steven Ray, The Automaster BMW, Essex Junction, Vt. Motor Age Training/ASE Master Automobile & L1 Tech of the Year: Joseph Young, San Diego Miramar College, San Diego, Calif. NATEF/ASE Instructor of the Year: Bradley Dressen, Butte College, Orland, Calif. Navistar/ASE Master M/H Truck Technician of the Year: Shawn Lehman, Tri County Motor Sales, Stoystown, Penna. Navistar/ASE Master School Bus Technician of the Year: Kenneth Passmore, Midwest Transit Equipment, Indianapolis, Ind. Navistar/ASE Parts Specialist of the Year: Adam Russell, Sr., Goodman Truck & Tractor, Amelia, Va. Navistar/ASE Truck Paint & Refinish Technician of the Year: Collin Harris, Int'l Truck Sales of Richmond, Manquin, Va. Nissan/ASE Master Automobile Technician of the Year: Glenn Ferrer, Nissan of St. Augustine, Palm Coast, Fla. Infiniti/ASE Master Automobile Technician of the Year: John Roderich,
Fields Infiniti of Glencoe, Phillips, Wisc. Pep Boys/ASE Master Automobile Technician of the Year: Mark Regan, Pep Boys, Walpole, Mass. Peterbilt/ASE Master M/H Truck Technician of the Year: John Wood, Interstate Truck Center, Oakdale, Calif. PPG/ASE Master Refinish Technician of the Year: Robert Bender, Bender Auto Repair, Saltsburg, Penna. Snap-on/ASE Master Automobile Technician of the Year: Jack Harlan III, Harlan’s Auto Care, Canfield, Ohio Snap-on/ASE Master Coll. Repair & Refinish Technician of the Year: Neal Nuce, Precision Collision Repair Center, Wake Forest, NC Snap-on/ASE Master M/H Truck Technician of the Year: Steven Sass, Sr., A.N.D. Service, Inc., Carlstadt, NJ Standox/ASE Refinish Technician of the Year: Daniel Walsh, Boch Collision Center, West Bridgewater, Mass. Subaru/ASE Master Automobile Technician of the Year: Daniel Pratt, Flatirons Subaru, Firestone, Colo. TECH-NET Professional/ASE Master Automobile Tech of the Year: Michael
Byer, Mike Byer Auto & Truck Repair, Asheville, NC. Toyota/ASE Master Automobile Technician of the Year: Warren Butrim, Koons Toyota of Annapolis, Arnold, Md. Toyota/ASE Master Coll. Repair & Refinish Technician of the Year: Leonel Dufault, Toyota of North Dartmouth, Westport, Mass. Lexus/ASE Master Automobile Technician of the Year: Anthony Bausano, Lexus of Smithtown, Huntington, N.Y. USAF/ASE Technician of the Year: Msgt. Andrew Slater, Ramstein Air Base, Germany, US Air Force. Valvoline Career Tech/ASE Instructor of the Year: John Kasper, Millington High School, Memphis, Tenn. Volvo/ASE Master Automobile Technician of the Year: Jesse Berryman III,Koons Volvo, Westminster, Md.
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On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Creating A Readable Advertising Piece with Thomas Franklin
I recently received an advertising booklet in the mail. Most of the ads in the booklet were for local cleaners and various personal and home services. There was also one ad for a collision repair shop, but the shop was located many miles from my mail service where I received the booklet. The shop owner had obviously been pressured into buying an ad that was being delivered far out of his effective neighborhood. And even worse than that, it was buried in a booklet that is mostly read by housewives looking for household deals at local businesses. The shop’s ad didn’t even have a coupon that might have gotten at least a couple of people to notice it. The odds of the shop getting a single job out of this ad were probably as remote as the chance of winning the Publisher’s Sweepstakes. Unfortunately, even if this ad had appeared in a newspaper or other widely read publication, it was still unlikely to get many people reading it. There were several reasons for this. First of all, most of the print was too tiny for mature readers to read without a magnifying glass. In a space three and a half inches wide by oneinch deep, fifty-two words were crammed closely together. The shop owner had probably provided the advertiser with a list of services he wanted included in the ad. Ad sales people just want to sell the ad. They’re practically never professional ad design people, so they’ll cram anything into the ad the buyer says he wants.
There could have been more space for showing the shop’s many services if half the ad hadn’t consisted of a huge photo of a late model new car. A quick glance at the ad (which is all most people would give it) would suggest the ad was selling a late model vehicle. There was not even a slight indication that this car needed or had ever had collision repair. In the space allocated to this vehicle, there could have been two photos of the same vehicle showing it before and after repairs. Given the brief attention span of most people today, any photo has to tell the desired story very quickly. A good choice of photos might actually have compensated for the poor quality of the print message. The next problem with the ad was the choice of colors. The lettering spelling out the shop’s services was red on a blue-black background. Reverse type can be very effective, but unless the type is huge, only white or yellow or some tint in-between will stand out enough to be easy to read. Blue type would have been almost invisible and the red wasn’t much better. Ad composition has to take into account the wide variety of people who will read it. Older people will generally have a problem with small print. Men are often slightly colorblind. The colored type would be doubly difficult to read for an older man who might be a likely prospect with an expensive vehicle to repair. One
Continued from Page 6
12.8 million vehicles in 2011, a 10.3 percent increase from 2010 and the highest numbers since 2008. Automakers expect sales to reach about 13.8 million in 2012. As recently as a decade ago, the industry employed about 1 million workers. It then fell into a steady decline that included layoffs of 200,000 workers during the 2008 and 2009 recession. At the industry’s lowest it emplyed about 550,000 manufacturing workers. Hiring has started to climb back slowly in the past two years, and now the research center forecasts employment will top 750,000 by 2015.
Automaker Hiring
Audi plans to grow substantially in North America and building its own production facility is part of that strategy, Stadler told the paper. “It is not a question of if, but only of when,” he said. Nissan is in the process of adding about 1,000 workers in Tennessee as it gears up for production of the Leaf electric vehicle and its batteries, as well as new Pathfinder and Infiniti SUVs. Automakers sold an estimated
10 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
modification could make red, blue or green stand out on a dark background: That would be a slightly larger outline type in white or yellow behind the darker lettering putting a bright outline around each letter. But this is a fairly complex type process, probably not even known to this advertiser. Publications always send a copy of an ad before printing it for the buyer to proofread. But shop owners are often rushed and would probably not take much more than a quick look at it. It’s unlikely this shop owner gave this ad much thought or looked it over at all. Print advertising, whether on paper or displayed in a website, must be instantly readable and provide a compelling reason for the reader to respond to the ad and come in for a service. A restaurant can send out a menu listing all of the selections they offer, but a list of a shop’s services isn’t an ad—it’s a menu and belongs in a
brochure, not an ad. Ad readers are motivated by price, speed of service or quality. For a body shop, price is only relevant for self-pay services, but speed of service can be very important. The quality of a collision repair is assumed to be good if one’s insurance company is paying for it. When quality is mentioned, the reader’s question will be, “Compared to what?” To establish quality, an ad could refer to on-line reviews, prior customer comments or even just the length of the shop’s warranty, but these would require a much larger ad than one-by-three inches. When it comes to print ads, less is more. If someone can be enticed to read an ad with fifty words or less (and that is already doubtful), those words had better convince the reader that this is a unique shop, so significantly better than the competition that he or she would be a fool to go anyplace else.
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Polk Says Average Age of Vehicles is at Record High The average age of cars and light trucks currently in operation in the United State has increased to 10.8 years, according to Polk, an automotive market intelligence firm. Passenger cars showed a modest increase in age since 2010, from 11 years to 11.1 years at the end of June 2011. Light trucks (including pickups and SUVs) show a more sizeable gain in the same time frame, from 10.1 years to 10.4 years. Overall, average vehicle age has been increasing quickly over the past five years. Polk reports average age based on an analysis of national vehicle registration data. The slowdown of the aging of passenger cars directly correlates to the low sales volumes and the mix of car and truck sales in the U.S. market in 2008 and 2009, a time in which more trucks than cars were registered. While more trucks were sold over the same timeframe, they showed a faster aging rate. Polk expects this trend may change in the coming years as CUV and small SUV populations in the U.S. market have risen in 2010 and 2011 due to their continued success in the market.
Additionally, the rebound in new vehicle sales in 2011 and for the next couple of years will most likely slow down the aging rate seen in the market over the past three years, according to Polk. “The increasing age of the vehicle fleet, together with the increasing length of ownership, offers significant business growth opportunity for the automotive aftermarket,” said Mark Seng, global aftermarket practice leader at Polk. “Dealer service departments and independent repair facilities, as well as aftermarket parts suppliers, will see increased business opportunity with customers in need of vehicle service.” Year-over-year Light Vehicle Population Declines Come to an End 2011 marked the end of the U.S. vehicle population decline that has occurred annually since 2008. According to Polk, the total vehicles in operation (VIO) in July 2011 was just over 240.5 million, an increase of 500,000 units over July in the previous year, and nearly equal to 2009 VIO. The highest VIO on record was achieved in July 2008, when more than 242 million passenger cars and light trucks were on America’s roads.
ANPAC Responds to Texas DOI Last month we reported that John Borek, General Manager of Autocraft Bodywerks in Austin, Texas, has filed a complaint with the Texas Department of Insurance against American National Property and Casualty Company (ANPAC) and a claims services company, American Claims Services, alleging that they “knowingly used a fraudulent document to justify their short-pay” of a claim. In filing his complaint with the Texas DOI Property and Casualty Complaint Department, Borek wrote: “We believe that based on this document, ANPAC/ American Claim Service is knowingly using a fraudulent document to justify their short pay to limit the price paid for repairs to [the] automobile. By not performing these necessary operations, it will result in an incomplete repair. I have spoken today with the field appraiser assigned to this file and he confirmed that he put the needed repair operations on the original estimate although a document generated from ANPAC/American Claim Service shows a zero by all these operations. In a letter of response to the Texas Department of Insurance,
ANPAC said an appraiser working on its behalf used “an outdated document” when denying a supplement for color sand and buff from Autocraft Bodywerks in Austin, Texas, and that the supplement has now been paid. John Borek of Autocraft filed a complaint with the regulator last month after receiving a document that the American Claims Services appraiser indicated was from Audatex showing that color sand and buff is included in refinish times. In his complaint, Borek called the document “fraudulent” given that Audatex, after searching its “Database Reference Manuals” back to 1993, concluded that the document is “most certainly not from ADP/Audatex.” After a call asking for an update or comment on the complaint, the Department of Insurance sent Borek a copy of ANPAC’s December 27 initial response letter, saying it will notify him “once we receive additional information that was requested.”
12 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
Collision Hub Launches The Hub™ Your Social Media Toolbox Collision Hub announced the launch of The Hub™, a monthly Social Media consulting tool delivered to customers each month as a graphic and video rich eMagazine. The Hub will be content-rich with industry-relevant material that encourages localized and internally managed social media strategies. The Hub will include columns and video blogs from Kristen Felder, Founder and CEO of Collision Hub, as well as Liz Blackman, Collision Hub’s Social Media expert and Operations Director. The Hub will also provide subscribers with direct access to Collision Hub’s social media consultation team as well as ongoing support and guidance at every level of their social media journey. Each month the CH team will give shops step-by-step action plans to implement, suggested social media postings based on a calendar of events, creative marketing ideas to employ and pre-packaged video content for shops to download and share in their social media outlets. These tools will allow shops to
increase page engagement, followers and improve their SEO rankings. According to The Hub Editor and Collision Hub social media expert Liz Blackman, “during our three years of traveling and speaking on Social Media we were asked over and over to become the marketing consultant of Collision Repairers across the country. However, at Collision Hub we believe the best person for any social media campaign is the business staff themselves. By tackling the ‘hows’ of Social Media and by helping shops to keep their social media in house, it is our belief that The Hub will rocket launch Collision Repairers to the fore front of their communities.” By subscribing to The Hub, each shop can now “hire” Collision Hub as their personal Social Media Consultant, Marketing and Public Relations firm. To learn more and subscribe visit: www.collisionhub.com/thehub.
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CIECA Announces New Board of Trustees for 2012
The Collision Industry Electronic Commerce Association (CIECA) Board of Trustees has elected the following officers for the year 2012: ● Chair – Denise Caspersen, Automotive Service Association ● Vice Chair – Troy Weaver, DuPont Performance Coatings ● Treasurer – Paul Barry, Performance Claims ● Secretary – Kathy Goddard, Safelite Corporation Each of these officers will serve on the Executive Committee, which oversees CIECA business matters between board meetings and maintains the Board’s agenda. Michael Lloyd, California Casualty Management Company, will assume the title of Past Chair on the CIECA Executive Committee. More information about CIECA can be viewed on the CIECA web site: www.cieca.com.
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Women’s Industry Network Accepting 2012 Board Applications
In keeping true to their motto, “Driving the Future for Women in Collision Repair,” the WIN Nominating Committee is now accepting applications for seats on the WIN Board. The Board consists of various industry segments including but not limited to: shop owners, jobbers, suppliers, consultants, paint companies and insurance companies. Aside from the WIN annual Conference in May volunteer WIN Board members work together to foster an environment that encourages the education, recruitment, retention and networking of women in the collision repair industry. “Within a short time, the Women’s Industry Network has grown in size, produced informative and motivational events, and become a recognized industry association through volunteer efforts, industry sponsorships and the enthusiasm of the WIN membership. WIN is all volunteer. Volunteering for the WIN Board is an outstanding opportunity to have a present and future influence on our industry. If you are motivated to “drive the future for women in collision repair, apply for the WIN Board.” said Denise Caspersen, of
14 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
ASA, chair of the WIN Nominating Committee. The deadline for applications is February 24, 2012. For application requirements and further details go to womensindustrynetwork.com. Completed applications should be mailed or PDF copy emailed to WIN Nominating Committee; c/o ASA – Denise Caspersen; 8190 Precinct Line, Suite 100, Colleyville, Texas 76034. For further information please contact Denise Caspersen, phone: (817) 5142906; email: denisec@asashop.org To find out how you can become involved and support WIN or for information on becoming a member or sponsor of WIN, please contact Victoria Jankowski at victoria.jankowski.gsfg@statefarm.com or Jeanne Silver at Jeanne@carstarmundelein.com. WIN is also offering scholarships to female collision industry students, instructors and shop employees to attend its 2012 conference May 68 in Atlanta. Scholarship applications must be submitted through mail by March 9. Visit womensindustrynetwork.com for additional details on scholarship requirements and the application mailing process.
State Farm Concedes Another Lawsuit Brought by Gunder’s Auto Center of Lakeland, Fl
Upon State Farm’s October 10th, 2011 written denial to provide consideration for a plethora of recommended and necessary repair procedures and materials, Ray Gunder owner of the 44 year old Gunder’s Auto Center instructed his legal counsel, Attorney Brent Geohagan, to prepare the necessary steps to file a lawsuit against the nationwide inRay Gunder surer at the request of and authorization by his customer. The lawsuit was prepared and filed on October 25th along with a Civil Remedy Notice (CRN) which was accepted by the courts on December 16th, 2011. State Farm’s legal counsel responded in a letter to Gunder’s Attorney dated January 19th, 2012 stating, in part, “at all times State Farm acted in good faith and fairly and honestly toward its insured, See Gunder, Page 47
New 10,000-sq-ft Hovis Tech Training Center Opens in Mercer, PA Federated member Hovis Auto & Truck Supply has opened its new Hovis Technical Training Center located at 1000 Champion Drive, Mercer, PA. The 10,000 square-foot hands-on training facility is equipped with the most advanced tools and equipment and
Center is committed to educating automotive, paint and heavy duty truck technicians in a state-of-the-art facility, close to home, reducing shop downtime and travel expenses,” says Curt Hovis, vice president of Hovis Auto & Truck Supply. “We recognize the critical need to provide technicians with comprehensive instruction, technical materials and educational programs, and we understand they don’t want to travel across the country to get it. That is why we are bringing leaders in the indusThe new training center offers a fully equipped body try to western Pennsylvania.” shop with mixing rooms, prep deck as well as 4-post The Hovis Technical Trainand 2-post lifts, alignment machines, and diagnostic ing Center has developed an edlabs. For more information see www.hovistrainingcenter.com/ourfacility.html ucational curriculum that will is dedicated to instructing professional bring together leaders in the automoservice technicians about time-saving tive, heavy duty and paint and body inand problem-solving techniques. The dustries to train technicians on the center offers a fully equipped body shop latest technology, techniques and apwith mixing rooms, prep deck and overplications in their specific fields. These sized paint booth, a 14-foot overhead certified trainers from such companies door for heavy duty truck access as well as DuPont, Akzo Nobel/Sikkens, 3M, as four-post and two-post lifts, a wireDelphi, Federal Mogul, Abex and lessalignment machine, tire changer, Meritor will bring their expertise and balancer and diagnostic labs. industry knowledge to the center in a “The Hovis Technical Training streamlined curriculum that allows
technicians to choose the courses that best suit their needs. In addition to offering technical training, the Hovis Technical Training Center will also offer technicians, managers and owners the opportunity to participate in best business practice The Ameri-Cure Oversized Paint Booth is designed for education to maximize traffic to Waterborne Technology with dual mixing rooms for DuPont Coatings and AkzoNobel Sikkens their shops, improve return visit tinual commitment to helping their rates and increase their bottom lines. “We want to congratulate Cliff customers grow their businesses.” Located in western Pennsylvania, and Curt Hovis and their staff on putting together one of the finest training Hovis Auto and Truck Supply has been a family-owned business since 1952. Since that time, the company has grown to 14 locations including a new warehouse facility. Hovis executives are industry leaders with Cliff Hovis currently serving on the executive committee and board of governors for Federated Auto Parts, while Vice President Curt Hovis serves on a The Hovis Technical Training Center also variety of paint, body and equipment includes a multi-media classroom for best business practice training manufacturer boards. In addition, Cliff facilities in the country,” says Rusty has also served as a member of the board of governors of AWDA. Bishop, CEO of Federated Auto Parts. For more information, visit “Their dedication and investment in www.federatedautoparts.com. training is a testament to Hovis’ con-
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 15
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 17
Shop Showcase
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.
A1 Grand Auto Body in NY—A Family Commitment to Quality Repair with Chasidy Rae Sisk
A1 Grand Auto Body of Garden City Park, NY focuses on family oriented business onquality repairs. This emphasis on quality dates back to owner, Brian Hogan’s early interest in auto
lass Supreme, for $50. He spent a lot of time on that car, ultimately changing the color three times. Hogan recalls, “I made it my perfect first car. That was my project car.” Since then, Hogan has owned hundreds of cars. One of his best memories is helping his son restore a 1999 Ford Mustang with front-end damage to the point that it won Best in Show at a competition in Commack, NY. He also rebuilt a Chevy Corvette and an early-model Mustang for the Fraternal Order of Police as touring vehicles for their antidrug and anti-DWI campaigns, complete with custom paint jobs. From the beginning, Hogan’s pastime was destined to be his career. His grandfather, William Benson, had opened an auto body shop in Queens in 1939 where Brian’s father, Joseph Hogan, worked in the 1940s until he opened his own shop, Grand Body Auto, in 1953 on Jamaica Avenue. Hogan continued to work for his father after high school, finally opening his own shop in 1997 in Garden
fix the car right, there should be no problem in guaranteeing it. If you prep and prepare each part you put on properly, it’s going to last.”
body repair. When customers hand their keys over to Hogan, he wants them to know and be confident that they are putting their vehicle in the hands of a man who has been working on cars for most of his life and whose passion for automobile restoration guarantees their car will leave the shop looking much better than when they drop it off. When his staff is short-handed, Hogan is always eager and willing to pick up the tools to help restore his customers’ vehicles. His children are following in his footsteps as he did in his father’s. Hogan’s daughter, Ariel, works in the front office, and his son, Joseph, will begin working for his father later this year as part of a workstudy BOCES program. In fifth grade, Brian Hogan would take a bus to his father’s shop after school in order to sweep the floors and park cars. The ten-year-old found the job very exciting. A year later, he learned to sand body surfaces, and this was followed by his first real project. At the age of thirteen, Brian Hogan purchased his first car, a Cut-
City Park. He still gets a thrill from restoring a damaged vehicle, and he tries to uphold his father’s stated goal of restoring the vehicle to look like it is brand new. Like his grandfather, Hogan guarantees his work for the lifetime of the vehicle, stating “if you
In addition to his Garden City Park facility, Hogan also owns a 4000 square foot shop in Hempstead, but due to his customer database which includes around 60,000 customers, he is currently in the process of opening a third shop of 1600 square feet on Denton Avenue in New Hyde Park. Each location employs six auto body technicians. Hogan’s businesses utilize a Shark measuring system from Italy and all of the latest frame equipment. The shops are ASE and I-CAR certified. They do not participate in any direct repair programs currently, but Hogan has been approached by GEICO and is considering joining their DRP in his new shop. The technicians paint with RM Diamont. They report no difficulty with color matching as most of the vehicles they repair are newer models, specifically 2011 and 2012 vehicles. Hogan notes that the restoration business has taken a nosedive, but his shops specialize in heavy collision repairs, even receiving referral work from other shops. Due to the damage from August’s hailstorm, each of Hogan’s shops are currently averaging
Jim Lang, of Aftermarket Insight, says that “Car and light truck scrappage (vehicles removed from operation) declined as a percent of vehicles on U.S. roads during 2009 and 2010. These low scrappage rates helped boost car and light truck average age.
“Not reflected in overall scrappage rates is the ongoing shift in the age of vehicles scrapped in the U.S. As a result of airbag deployment, many vehicles which on the basis of collision damage alone would not be scrapped are heading to the junkyard. Deployment of a single airbag will
cause most vehicles at least seven years old to be scrapped.” Last year in the U.S., airbags deployed in over 1.2 million vehicles. Vehicle damage resulting from airbag deployment ranges from $1,200 to over $6,000 per bag depending on the location of the bag (dashboard, door,
Brian Hogan and his daughter, Ariel
A1 Grand’s tow trucks promote their services
Airbags Changing Vehicle Scrappage Age Mix
18 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
repairs on 15–20 cars each week. One thing that A1 Grand boasts that no other shop can is Hogan’s Raising the Bar Code software which he created to help integrate several shop management systems. Using this system, Hogan is able to scan the vehicle registration, allowing pertinent information to populate within a few seconds, updating the database to provide an estimate for the customer. This allows A1 Grand Auto Body to provide an estimate to customers within five minutes of entering the shop. Hogan’s software is just one way in which he strives to keep in touch with customers and provide quality service. Though several companies have offered to buy the the software, Hogan refuses to sell his competitive advantage. Hogan shows his dedication by closely monitoring customer satisfaction with the paintless dent repairs many shops used to repair cars dented by the uncharacteristically severe hail storm in August 2011. Using this method, many dents reappear, but Hogan is busy contacting the customers in his database to inform them that their insurance companies will cover further costs to permanently repair this damage. This second round of dent repairs has kept his shops busy for the past several months. A1 Grand Auto Body is a shop that can guarantee quality because Brian Hogan stands behind it. Quality auto repairs are definitely a family commitment from the Hogans and A1 Grand Auto Body. A1 Grand Auto Body 105 Herricks Road New Hyde Park, NY 11040 (516) 294-4200
etc.) and the type of vehicle. Government reports indicate that virtually all vehicles at least seven years old in which a single bag deploys are scrapped. Increasing damage from multiple airbags (as newer vehicles have more See Airbags, Page 20
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Mazda Wholesale Parts Distributors “Professionals Servicing Professionals” www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 19
Van Tuyl Group to Hold Charity Super Bowl Event in the Dallas-Fort Worth Area Super Bowl Weekend, Autobody News to Participate The Van Tuyl Group, an Irving, Texasbased company with more than 70 automotive dealerships across the country, has announced the first annual Charity Super Bowl flag football tournament to be held in the DallasFort Worth area. The event will be held Saturday, February 4, 2012 Ed Attanasio at the Stampede Sports Complex in Southlake, Texas— the day before Super Bowl XLVI takes place in Indianapolis. The Charity Super Bowl will be co-sponsored by the Van Tuyl Group, PPG, and Enterprise Rent-A-Car®. All proceeds are to benefit Trinity River Mission, a volunteer-based, community learning center dedicated to supporting the development of educational success in the children, youth, and families of West Dallas. The day-long Charity Super Bowl will feature 30 4-on-4 teams
competing in a double-elimination tournament. There is an entry fee of $350 per team, with each team allowed to carry a roster of up to eight players. An awards presentation will be held at the end of the day. In addition to enjoying the games, fans attending the Charity Super Bowl can win raffle prizes and participate in a silent auction. “This is one of the most exciting weekends of the year for football lovers,” said Darren Huggins, national collision director, Van Tuyl Group. “We wanted to take that football frenzy and give something back to the community, especially to a charity that does so much good and needs our support. We’ll play 59 games in about 10 hours. We’ve even invited our competitors to take part, and they’ve accepted the challenge. Fans can come out and have a great time cheering on the teams, all while knowing they’re helping a worthy organization. This is going to be a great—and very competitive—day.”
TRADE IN YOUR BODYSHOP HEADACHES FOR A NEW CARRER AS AN
The Van Tuyl Group has long been associated with PPG. Today, PPG Automotive Refinish supplies the company with a wide variety of innovative coating products for its dealerships. Kristen Felder of collisionhub.comwill co-host the bowl’s broadcast with Autobody News’ Ed AtKristen Felder tanasio. For details about the first annual Charity Super Bowl, call 972-670-2948. To learn more about Trinity River Mission, visit www.trinityrivermission.org. For more information about PPG, call (800) 647-6050 or visit www.ppgrefinish.com.
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Airbags
airbags) is scrapping many vehicles which would otherwise be repaired and returned to operation. If multiple bags deploy (some new vehicles have up to eight), airbags can cause additional damage (beyond the crash itself) sufficient to scrap even new and expensive vehicles. As newer vehicles are scrapped because of airbag deployment, increasing scrappage rates will not necessarily reduce the average age of vehicles. As long as new vehicle volume remains relatively low versus the nearly 17 million average-annual sales from 1999 to 2006 and scrappage remains relatively moderate, a growing share of scrappage will occur among vehicles below the 10.6 year average-vehicle age. This will boost the age level of vehicles in the U.S.
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 21
Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html
South Motors Automotive Group—Anything But Apathetic with Larry Williams
This month’s distinctive dealer is South Motors Automotive Group in Miami, Florida. This dealer services Honda, BMW, VW, Suzuki, Mazda, Mini, and Infiniti. Parts manager Mike Franceschi contacted me after reading my article on “Apathy, the Real Opponent in the Wholesale Business.” For a link to the article see the last paragraph or just go to autobodynews.com and search ‘apathy’ What I wrote in that article was: “Now is the time to be positive. Shake off that dull, negative attitude. Aggressive solicitation of new customers will pay off for those dealers that move now. Take some time and visit your best customers. Congratulate them for their tenacity and tell them you will be with them for the good times ahead. Partners who survive hard times always find their bonds stronger. Keep an eye out for customer opportunities that you may have overlooked. Be ready to serve the new customers that will be calling you. “There is another major negative assumption to overcome. Several parts managers have told me of their loss of interest in the wholesale market. The main reason for this is the lack of profit. It seems that there is constant pressure to reduce costs, starting at the corporate level. I am talking about the insurance companies that cover most of today’s repair costs. In a never-ending search for investor earnings, quality, care, workmanship, and pride are considered to be unnecessary. The only thing that matters to these corporations is their bottom line. They constantly push the repair shop to reduce the cost of the repairs. The shops cannot reduce their labor cost any lower; employees are already at the poverty level. The only place to cut is the cost of materials. The solution for some shops is the use of cheaper parts. These shops adopt the practices of the corporations, and consider only the cost of materials. Save a dollar, no matter what method you use. “We need to fight back! Quality in both parts and service needs to be worth more than a 5% discount. For example, sheet metal has been a cen-
ter of concern for several years. Cheap replacement imported metal has found customers, at the cost of quality. Numerous organizations have come out to support the use of original parts only. We all agree on the value of quality in this area. How about the rest of the operation? How about quality of service? “I have never advocated sacrificing service and quality for cost. I believe if you pay less, you get less. There is a minimum everyone must pay for quality service. The competition should be for better service, not cheaper prices. I believe that servicing the wholesale market is still a rewarding job. Our final goal, happy customers, is a worthy goal and customer satisfaction brings us our own happiness.” Mike shared the article with his countermen, and was pleased to be able to say to them: “I’m not the only one who talks about this every day!” This comment, in my opinion, is the key to understanding Mike’s success in these troubled times. He talks to his men every day, encouraging them and keeping their spirits high. There are four full time wholesale countermen, Ozzie, Rudy, Alex, and Danny. Professional, knowledgeable men, with more than a hundred years of experience available to their customers! This team keeps five drivers constantly on the road. Belinda, Carlos, Jose, Luis and Noel make three runs daily, and will go as far as sixty miles to service their customers. An inventory of over half a million dollars ensures “on hand” status of fast moving parts. A daily ordering system means needed parts are almost always available the next morning. Body shops in this area have had a hard time the last few years, but sales at this dealership have held steady, and even increased slightly despite the recession. Collision Link is used by this dealer, of course. This program allows Mike to be competitive on pricing, ensuring repairs are always made with quality, original parts. Every dealer I have talked to mentions Collision Link as one of their most valuable tools in the wholesale market.
22 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
Mike has been at South Motors for twenty years, fifteen of them as parts manager. He says his “secret to success” is his focus on sales. His office is near the front counter, and he talks to his customers as often as possible. He watches his daily sales, staying on top of his business with his friends. He calls one or two each day, checking to make sure he has filled their orders properly, and that they are satisfied with his service. Mike takes his job very personally, and talked to me about the value of long term relationships, and the feeling of “family”, not just customers. He spoke about trust, sincerity, and respect. He spoke of service over price, wanting happy customers, and close partnerships with valued customers. These philosophies, of service, and partnership are common to all the successful managers I have talked
with in the last year. They all consider their customers as friends, and make price a minor condition to the business of auto repair. I believe that success is not determined by a building, a location, advertising, or price. Success is a reward to those people who want it, work for it, and are never stopped. Mike Franceschi is successful because his desire to be the best knows no boundaries. I recommend this distinctive dealer to any auto body shop in the Miami area that wants the best service available. You can do no better than the South Motors Automotive Group. You can read Larry’s apathy article online in its entirety at: http://www.autobodynews.com/columnists/williams-larry/item/5198apathy-the-real-opponent-in-the-whol esale-parts-business.html.
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Mitchell Parts Index Sheds Light on Parts Trends Post Japan’s Tsunami
measures a “basket” of goods and services and compares the prices month to month. This basket contains hundreds of different types of goods and services ranging from the inexpensive to very expensive. In creating the Mitchell Collision Parts Price index, we used a similar approach of taking a collision ‘market basket. We selected the top 20 most replaced collision parts for the following categories: Hood, fenders, headlamps, turn signals and side marker lamps. We pulled data from
2003 through the third quarter of 2011. We then created weighted average prices for these parts in aggregate, setting the base year at 2003 and equal to 100. This allows us to compare inflationary trends by part type. All part types are retail prices, in the case of LKQ/used parts, are calculated with the mark up included in the pricing.” In the most recent edition of the Industry Trends Report, this useful tool also allowed us to evaluate the impact of the Japanese Tsunami on collision parts prices. What we found was that despite some industry experts predicting parts shortages, repair delays and hoarding of used parts, there was virtually no impact on collision parts prices. What always intrigues me as I evaluate the data from this index, is that there are several other factors in play. When I looked at the overall index over time, what is interesting is the rapid increase in recycled parts prices for all vehicle types, and that salvage parts and aftermarket parts, drove the inflation index for 2011. OEM parts pricing, by contrast; decreased in the aggregate. How did the OEM parts index decrease? It was in large part a result of the expansion by auto makers ‘match the competition’ programs, wherein they will match or adjust their pricing to compete with top selling aftermarket parts. The primary aim of the OEM’s to match the competition is to maintain parts sales and stem the tide of aftermarket parts use in collision repairs. Have they been effective? As evidenced by chart 3, showing the number of collision parts used by part type, the increase in matching programs has not stemmed the decline in OEM parts use, but interestingly; af-
2009 and accelerating rapidly in 2010, but still below the base year of 2003. What is behind this phenomenon? If we look back, the recycled parts distribution channel experienced the most advances of any parts channel. Large internet vendors began online and ‘near real time’ inventory displays in the estimating platforms as
tion of supply for recycled parts, as the impact of slumping new car sales and high used car prices that began in 2008 (and continues today) begins to ripple through the salvage parts supply world. Aftermarket parts producers hold an advantage here, as they can custom tailor output to demand, a luxury that recyclers do not have.
In a letter released December 20th, 2011, the Society of Collision Repair Specialists (SCRS) provided commentary on an article written by USA Today contributing editor, Adam Belz, and entitled, Auto body shops say they, not insurers, should set costs. The letter from SCRS counters
points raised in the initial article, and provides information supporting the assertion that the property & casualty insurance industry’s direct influence over collision repair market pricing, has impacted both the consumer and the small businesses that make up the collision repair industry. Several key
components of the letter identify that: ● Property and casualty insurance carriers have become increasingly involved in activities that extend beyond the business of insurance, while interjecting themselves into collision repair business activities. ● The responsibility to compensate for
fair and reasonable costs of the loss is significantly different than defining what is fair and reasonable. ● Average gross collision appraisal values have remained stagnant comparing the first and third quarters of 2009, 2010 and 2011, and older data
by Greg Horn, Vice President Industry Relations Mitchell International
When we created the Mitchell Collision Parts Price Index (or MCPPI) a few years back, it was to serve as a barometer to measure parts inGreg Horn flation both in aggregate and split out by part type and vehicle country of origin. The MCPPI was created with the Consumer Price Index as its model as the Consumer Price Index (CPI) is best known to most Americans as the general rate of inflation. The CPI is one of the most closely watched economic indicators because it tracks the rate of inflation for a wide sampling of goods we routinely buy. Just in the way the CPI
The Mitchell Collision Parts Price Index for 2011
termarket parts use also declined during the same period. By looking at the repair labor hours for the same period, we see an increase in the number of average repair hours, indicating a shift to repairing panels rather than replac-
well as standalone applications. Large acquisitions happened in this arena as well, all allowing for more rapid market feedback of demand and pricing. I believe this lead to a market correction of pricing in the years leading up
Mitchell Collision Parts Price Index by Part Type – All Vehicles
ing them. An increase of repair hours is good news for collision repairers, and it remains to be seen if this increase is sustainable. Let’s examine recycled parts as well. The MCPPI shows an increase in pricing of recycled parts, starting in
Part Use by Number of Parts
to 2009, and what we are now experiencing is an acceleration of prices because of the increase in overseas and rebuilder sales, and decreasing the population of parts harvested vehicles. What will the future hold? I believe we will continue to see a restric-
SCRS Responds to Article on Insurer Involvement in Setting Rates
24 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
See SCRS, Page 40
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Oregon Shop’s Parts Manager Performs Heroic Deed to Save a Life by Ed Attanasio
Would you step up and be a hero if you were in an emergency situation with little time to think? Many of us have asked ourselves this same question, but few ever get the opportunity to find out. James Bray, a parts manager at Fix Auto Portland East in Oregon was tested in a big way when he was called upon to pull a man out of a burning car and save his life. If Bray ever had any doubts about his courage or his ability to act heroically, they were James Bray is the parts manager at Fix all answered at 2 a.m. on December Auto East in Portland, Oregon. By 3. In a highly stressmoving quickly and ful situation requirbeing prepared, he ing quick thinking saved a man from a and quicker action, burning BMW that Bray was able to crashed into a utility pole think fast and take
lifesaving action. That early morning a BMW hit a utility pole right in front of Bray’s house in Vancouver, Washington. Normally, Bray would have been asleep, but luckily for the driver, he was still awake, playing computer games. Sounds in the night are mostly weather or animal-related in Vancouver, but this one caught Bray’s attention immediately. “It was a very deep pop sound and I had no idea what it might be. So, I went to the window in the living room and that’s when I saw the car wrapped around the light pole.” With an orange glow coming from under the hood, Bray instantly knew it was more than just a fender bender. “So many things went through my mind. Is someone in there and will the car explode? So, I said to my wife call 911. I got dressed as fast as I could and ran out to the vehicle.” Bray assessed the scene quickly and it didn’t look promising at the outset. He explained, “one guy got out through the back seat, and another guy jumped out through the front passenger-side door. The BMW’s windows
were tinted and the car was quickly filling up with smoke. I asked the two guys if anyone was still left in the car,
and this time it shattered. I could see there was a driver stuck in there and he was yelling, because his legs were
It’s a family affair at Fix Auto Portland East in Oregon, including (from left) Parts Manager James Bray; Operations Manager William Bray; Retired former Owner Jim Eber; Owner Camille Eber (James’s aunt) and Office Manager Iala Bray
but they weren’t making any sense. They were basically incoherent.” Rather than wait for a response that wasn’t forthcoming, Bray acted. “I hit the driver’s window with a flashlight that I always carry with me, but it wouldn’t break. So, I smacked it again
on fire. I told my wife Mindy to bring the fire extinguisher.” Bray could see that the door was unlocked, but it wouldn’t open. “I tried to open it a few times, but it was jammed, so I asked the two other guys to help me, but we still couldn’t get it open.”
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Bray handed his folding knife to one of the passengers and told him to cut the driver’s seat belt while he tried to put out the flames in the car with the fire extinguisher. But every time the flames subsided, they instantly returned. “I figured it must be the fuel line, because the flames wouldn’t stop,” Bray said. “At that point, I realized we had to get this guy out of the car right now or he would burn up. So we cut the seat belt, but he still couldn’t get him out. He was stuck in there.” Bray’s quick thinking and common sense kicked in at that point. “We cut the shoulder belt, not thinking about the lap belt and that’s what was holding him in. I gave my knife to one of the two passengers earlier, but he lost it. But I always carry a Leatherman multi-tool on my key chain and it has a knife. I just reached in there and cut the strap pretty easily.” After several attempts, the three men pulled the driver from the car through the window, burned but still alive, Bray said. “His shoes were melted to where I couldn’t recognize them and his pants were on fire. Within seconds, there was
an explosion in the vehicle and pretty soon it was completely engulfed in flames. The whole thing took around three minutes, that’s all it was.” The next day, the Vancouver Police reported that the driver was Brian J. Hall, 22. He was transported to the Legacy Health System’s burn unit in Portland with third degree burns and in serious condition. He and his friends were returning from a University Oregon football game that evening when the accident occurred. Whether alcohol or drugs were involved is still under investigation, according to the Vancouver Police. Bray’s Aunt Camille Eber is his boss at Fix Auto East Portland and she’s extremely proud of what her nephew did on December 3. “He did an amazing thing,” she said. “I am very proud of James for his selfless and level-headed reaction. He always carries a keychain Leatherman Tool, a pocket knife and a flashlight. He had all of them that morning and that is why the driver is now alive. We never expect to be in a situation like that, but James did not hesitate and was prepared. He will always be a hero in my eyes.”
Update: Delray Beach, FL, Shop Owner’s Opposition to GEICO’s 10% Charge on Domestic OEM Parts Pays Off Eddie Quintela, the shop owner from Delray Beach, FL, who wanted to know why GEICO was charging his
Eddie Quintela sent multiple email letters to GEICO’s local claims supervisor seeking refunds (or at least an explanation) for his customers who are being charged an additional 10% on all domestic OEM parts appearing on estimates. Quintela was vindicated when GEICO removed the 10% deductible on their client’s estimate.
customers a 10% deductible on their domestic OEM parts and other labor operations, regardless of fault, and in addition to regular deductible and/or applicable betterments, has been vindicated. Quintela was finally able to get GEICO to remove the deductible off one of his customer’s estimates.
A Smart Solution
Quintela, who owns Collision Concepts Inc., asked why GEICO was apparently assessing this fee in Palm Beach county but not in nearby Polk county; and why an insured driving a foreign made vehicle was not deducted 10% for OEM parts, but one driving a vehicle made in the United States was made to pay 10% extra for their parts. Other labor operations were defined as wet sand and buff and all clips and bolts. GEICO claimed it was customary in his market, while Quintela disagreed with proof from surveying other shops in the area. Collision Concepts is not a DRP for the insurer. “Just want to say thank you to Geico for paying what is fair and reasonable to repair our mutual customer’s vehicle,” said Quintela, “It is a good start to what I hope is a new and improved relationship between Geico and all collision repair facilities.” To view the full text of the email exchanges between Quintela and GEICO please see Autobody News January 2012 Edition or www.autobodynews.com, search ‘Quintela’.
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I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
Accessing and Repairing Body Mount Cage Nuts for the Ford F-150 Beginning with the 2009 model year Ford F-150, the cab body mount bolts are secured with a cage nut. The cage nut is held in position inside a cage nut retainer that is attached to the inside of a floor crossmember.
pan at the cage nut location. Be careful not to drill into the cage nut retainer. Ford service information specifies using a 50 mm (2") hole saw for this procedure (see Video at www.i-car.com). Accessing the drilling locations on the floor pan will require removing certain parts, and pulling back the carpeting. Depending on the cab style, parts that may require removal include the scuff plate trim panel, console, and seats. The locations of the body Figure 1 - The body mount bolt cage nut is secured in mount cage nuts vary deposition inside a cage nut retainer by tabs that are folded pending on the F-150 cab against the cage nut style. Locations for the ReguThe crossmember is attached to lar Cab model will differ from those the underside of the floor pan, which of the SuperCab and SuperCrew modcreates an enclosure for the cage nut. els. The retainer has two nut retaining Locations for the SuperCab and Sutabs, one on each opposing side of the perCrew are the same (see Figure 2). nut that are folded against the nut to Refer to the appropriate service inforhold it in place (see Figure 1). mation for the specific location and In some instances, the cage nut procedure for drilling the hole. may spin when attempting to remove or install a body mount bolt. If the nut Repair Considerations spins, it will have to be accessed and Through the drilled hole, locate the cage nut retainer tabs and bend them upward to allow access to the cage nut (see Figure 3). Use a suitable tool to hold the cage nut and remove the body mount bolt. The cage nut may be reused if the threads are not damaged. If damaged, it must be replaced with the correct part number (#78101C38). Ford service information warns Figure 2 - Shown are two of the body mount/cage nut against using a standard locations on the floor pan of this F-150 SuperCrew nut as a replacement, as secured in order to complete the bolt this may result in damage to the vehiremoval and the installation process. cle. Accessing the Cage Nut The body mount bolts are oneAccessing the cage nut will require time use, and must be replaced once drilling a hole from the top of the floor removed. Be sure to replace these
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30 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
bolts with the correct part number. The bolt part numbers vary depending
Conclusion When attempting to remove the body mount bolts on some Ford F150 models, be aware that there may be situations when the cage nut may spin preventing removal of the bolt. Removing the body mount bolt will require using a hole saw to provide access to the cage nut in order to secure it to prevent it from spinning when turning the bolt. Locations of the cage nuts vary depending on the F-150 cab Figure 3 - Shown is a cage nut retainer with the tabs bent upward allowing access to the cage nut style. Ford service information includes proceon the cab style. Torque the new bolts dures for locating and drilling the holes. to 115 N•m (85 lb-ft). For comments or suggestions on A service plug (part #W651023S300) is available to cover the hole the Advantage Online, please contact I-CAR at following installation of the body advantage@i-car.com. mount bolt.
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800-272-6741 518-482-2598 Dept. Hours: M,T,W,F 7:30-5:30; Thur 7:30-8; Sat 8-5 tmorris@liacars.com
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Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
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Diamond Standard Announces “Security Shield” Extends Product Liability Protection to Shops
Diamond Standard Brand Parts has announced a program of extending product liability protection to approved collision centers free of charge to address major concerns about liability on parts. Diamond Standard says its “Security Shield” provides the collision center leverage and protection against structural parts usage demands into repair, the various levels of parts quality which continues to exist, substitution of parts and the growing reality of aftermarket structural parts produced by manufacturers with no U.S. assets or product liability coverage putting the shop in the position of being the “manufacturer” in a potential lawsuit seeking damages due to a part defect or failure leading to serious injury. Program reaction has been highly positive among the major associations with the Automotive Service Association (ASA) and its collision members being the first association to participate in the program. ASA and Diamond Standard announced in January a strategic alliance based on ASA member product liability protection from Diamond Standard. This unique program underscores ASA’s focus on exacting standards for a complete and safe repair, and provides clear and
meaningful evidence of Diamond Standard’s confidence in standing behind the highest quality parts and parts policies. A unique website supporting the strategic partnership and coverage benefit will debut Feb. 1, 2012 providing ASA members access to the full program content including background, coverage, a limited lifetime warranty statement and a convenient “Certificate of Coverage” download feature. The Diamond Standard Security Shield site will also debut Feb. 1, 2012 (www.diamondstandardsecurityshield.com). The issue of shop liability and timeliness of the Diamond Standard Security Shield program cannot be understated and takes on greater importance as evidenced by a feature story earlier this week regarding shop liability. In the January 9, 2012 – Vol. 19 addition of Crash Network (www.CrashNetwork.com) the feature story “Liability Questioned” was published based on New Jersey shop owner Joe Lubrano’s expressed concern related to non-OEM parts. Specifically Mr. Lubrano posed the question of a shop being held responsible for diminished value or liability claim if a non-OEM absorber, reinforcement or hood does not function
properly in a subsequent accident, possibly causing body injury in a litigious society and called on the Collision Industry Conference meeting this week to take this matter as seriously as he does. Diamond Standard Security Shield product liability protection firmly addresses Mr. Lubrano’s concerns. Diamond Standard Security Shield product liability protection in total, represents $40 million in product liability coverage as added security to the collision center owner against the unlikely scenario of personal vehicle-owner injury directly related to the failure of new Diamond Standard parts in the repair manufactured by Reflexxion Automotive Products or Production Bumper Stampings Inc. $15 million in product liability coverage is extended by the specific manufacturing group member for its Diamond Standard Brand Parts. The incremental $25 million is premiere coverage extended to approved collision centers as co-insured totaling $40 million in total coverage directed to quality, industry best practice shop associations, DRPs, MSOs, facilitators and consolidators recognized by the industry as ordering and installing only the highest level quality structural components.
“Giving back to the industry front line is a central premise of Diamond Standard throughout the year and pivotal piece in our development of a unique branding program addressing the major issues in our industry. To receive the honor and distinction of ASA’s strategic partnership and support of Diamond Standard Security Shield validates the singleminded purpose of Diamond Standard—not only manufacturing and marketing the safest and highest quality parts available, but also precision parts using correct material, tool building, stamping and process controls here in America,” said Mike O’Neal, President of Diamond Standard Parts, LLC. “It is Diamond Standard’s ‘Culture of Quality’ that permeates its very fabric with a commitment to the industry of ‘One Quality of Manufacturing’ consistency that separates Diamond Standard from other Manufacturers. It is the “One Quality” part manufacturing commitment with USA assets in place that uniquely enables Diamond Standard to provide the collision shop owner with the solution and avoid risk due to the use of structural parts from foreign manufacturers offering no product liability protection.”
West Virginia v. Liberty Mutual Salvage Parts Lawsuit Moved to Federal Court
A lawsuit alleging that insurance company Liberty Mutual implemented policies that called for body shop owners to repair new vehicles using “junkyard” parts has been moved to federal court. State Attorney General Darrell McGraw filed the lawsuit against Liberty Mutual and St. Albans body shop owner Greg Chandler last month, alleging that the body shop followed an illegal insurance policy to install used or aftermarket crash parts on vehicles manufactured within three years of the date of the crash. The West Virginia Attorney General’s office calls it an effort to “buy time” in the lawsuit brought by the state’s Attorney General against it and one of its DRPs—Greg Chandler’s Frame & Body LLC (Greg’s Body
Shop)—over the use of salvage parts moved to federal court. The change forced the cancellation of a hearing in which a circuit court judge could have ordered Liberty Mutual to temporarily discontinue the practice of calling for the use of salvage parts on vehicles three years old or newer, a violation of state law (which similarly prohibits the use of non-OEM parts on such vehicles without the owner’s consent). Attorneys for Liberty Mutual argued the case belongs in federal court because they say it involves issues related to the federal Magnuson-Moss Warranty Act. West Virginia Attorney General McGraw sued Liberty Mutual Insurance Company and Greg’s Body Shop, for repairing vehicles with salvage parts in violation of state law.
34 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
Attorney General McGraw’s suit, filed in the Circuit Court of Kanawha County, details repeated violations of the West Virginia Consumer Credit and Protection Act by Liberty Mutual and Greg’s Body Shop. McGraw’s office alleges that Liberty Mutual required body shops to repair vehicles with reconditioned, remanufactured, and used parts in violation of West Virginia law. In addition, Liberty Mutual failed to provide the proper notices and written statements to consumers. In West Virginia, it is unlawful for an insurance company to require the use of salvaged, used, or reconditioned OEM crash parts when negotiating repairs of motor vehicles within three years of manufacture, without acquiring the motor vehicle owner’s
consent. McGraw’s office began investigating Liberty Mutual and Greg’s Body Shop after receiving evidence that new vehicles were being repaired with “junkyard parts.” The investigation by McGraw’s Consumer Protection Division confirmed that Liberty Mutual employed a policy that violated state law. McGraw’s lawsuit asks the court to enjoin the defendants from engaging in this unlawful activity in the future, seeks restitution for consumers whose cars were illegally repaired with “junkyard” crash parts, and asks for civil penalties. Consumers who think they have been a victim of Liberty Mutual should contact Attorney General Darrell McGraw’s consumer protection hotline at 1-800-368-8808.
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
Check Engine Light Paranoia with Gonzo Weaver
Charlie comes in every now and then. I guess you could say he’s a regular but I think I would call him more of an opportunist when it comes to his car repairs. He’ll go to an oil change place for oil changes, a tire shop for tires, a transmission shop for transmission, so on and so on. If there is an opportunity to get his car into a shop he’ll make an appointment and get it in. But, the one thing he seems to always use me for is the check engine light. Normally, most people don’t pay that much attention to the check engine light unless it’s staying on. Not Charlie, he’s absolutely paranoid it will come on and stay on. Somehow, some way somebody has told him that the check engine light is not a warning of a problem with the exhaust emissions or related engine/transmission problems but the precursor to a ticking bomb that will
bring an end to his ride of rides. It’s as if the check engine light is the trigger to the doom and gloom of his car. At times, Charlie thinks the check engine light has stayed on a longer than it should when he starts it up in the morning. This prompts an immediate phone call and a trip to the repair shop. With all these trips he’s seen me use several different code readers, scanners, O-scopes, and laptops that I have at my disposal to check codes and related engine systems. There’s times I think he just wants to see what new gadget I’ve got that I can hook up to his car. The more bells and whistles I throw out there the more he seems to show up with another reason for me to recheck his car. He can probably name a bunch of the scanners that I’ve used, seriously, he’s been to the shop that many times. Sometimes I wish he would take
up antique car collecting; go buy something old enough that it doesn’t have a check engine light in it and see if he gets the idea that the entire universe doesn’t revolve around a service light. It’s not like he doesn’t remember cars without check engine lights he just doesn’t seem to understand that a car can operate without one anymore. Why he’s even told me about an old car he drove while he was in college that leaked oil so bad that he had to keep a can or two with him at all times. Talk about something that sounds like it was on the verge of doom and gloom, also sounds like the typical college kids car. So you would think he would have some understanding of the inner workings of the automobile, but apparently once the service light came into the everyday vocabulary his understanding has wasted away just like the oil in that old car from college.
I’ve tried to explain to him about the meaning of the service light and about the various reasons for it to come on but it just doesn’t seem to sink in. I’m hoping the day never comes that his old car actually does turn on the check engine light, because if it did he’d probably worry himself all the way to a coronary and he would have to have the car towed in while I’d have to make a call to 911 and have him towed to the emergency room. Of course I hope that never happens, but with him I could see something along those lines. I generally let him watch the scanners do their work or have him watch a graph while I check things under the hood. The other day he was concerned about his O2 sensors and wanted to know if they were working correctly because he thought he saw the check engine light pop on and See Check Engine, Page 36
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 35
Erie Insurance Earns I-CAR Gold Class Professionals Badge
I-CAR has announced that Erie Insurance, an I-CAR Gold Class Professionals business, has equipped its staff of auto physical damage appraisers with the latest training available in the industry, providing them with the knowledge and skills needed to help increase CSI scores, improve operational efficiencies and minimize repair mistakes. I-CAR said that Erie Insurance is now one of only five insurance organizations to have achieved the industry-recognized I-CAR Gold Class Professionals designation as a corporation. Insurance businesses can earn the Gold Class designation at a corporate level, as Erie has, or at a business location. I-CAR CEO and President John Van Alstyne said, “By achieving the Gold Class designation, Erie Insurance has shown a dedication to both customers and employees by investing in training that will provide valuable services. Through Erie's commitment to I-CAR training, Erie Auto Physical Damage Appraisers now possess role-based knowledge that can improve estimating accuracy and help reduce cycle time, both of which lead to increased customer satisfaction.” Continued from Page 35
Check Engine
then go right back off. There were no codes stored and I asked him if it happened when he first started it or after driving several miles. It was while he was driving for a bit and not when it first started. “What difference does that make?” he asked. I then explained to him about how the heater circuit operated to warm up the sensor and what the sensor actually did in relation to the fuel mixture. This only made him even more curious to what they did. “Watch this Charlie. I’ll graph the O2 sensors here on this scope and I’ll show you the front sensor and its corresponding rear sensor. You’ll see the voltage changes on the screen as well as the differences between the front and rear sensors at the same time on the screen,” I told him. “Fascinating, simply fascinating,” he said, “But I don’t see how that translates to fuel?” The more I explained the more he seemed to be lost. He still seemed to be more concerned about what was
Van Alstyne added, “With the rapid rate of change in vehicle technology, continuous role-relevant training is essential. It is another key driver to customer satisfaction, and, ultimately business success.” Jim Brown, Erie VP and manager, material damage, said, “Erie Insurance is committed to delivering top notch service to our customers and is focused on providing our staff with the training and resources needed in today's collision repair industry. By providing our customers with accurate estimates, we can improve claims accuracy, which will allow us to continue providing our policy holders that have been in automobile accidents with the best repair plan possible.” Businesses that have earned the I-CAR Gold Class Professionals business designation are required to achieve high levels of training as well as maintain ongoing annual training, according to I-CAR. “I-CAR is pleased to designate Erie Insurance as a Gold Class business and provide the staff at Erie with a training path that will improve their overall operational efficiencies,” said Joyce Kasmer, I-CAR director of business development.
going to happen with that check engine light. I kept up with the explanation until I got to the point where he was just staring off into space and lost interest in me, the check engine light and the little graph moving up and down on the screen. I don’t know if he ever understood a thing I said, or for that matter has reconsidered the importance of the check engine light. All I know is that at some point in time somebody is going to tell him something stupid regarding the check engine light and he’ll make another trip to the shop and watch the fascinating little lines bounce around on my scope screen. No matter what I say, no matter what I do, old “Check Engine Charlie” will still listen to some B.S. from somebody out there and then head over to my shop for another diagnostics that will amount to nothing. Maybe I need to come up with my own B.S. to counteract what everyone else keeps telling him. I guess it comes down to the old saying: If ya can’t dazzle them with brilliance, buffalo them with a little bull.
36 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
PCI Says Auto Body Legislation will be Priority for 2012
The Property Casualty Insurers Association of America’s (PCI) said auto body legislation would be one of its key priorities for 2012. PCI said it anticipates the major auto body repair and glass issues for 2012 will involve aftermarket parts, labor rates, steering and estimating systems. To help control costs and promote customer service, PCI said it will oppose legislative efforts that would restrict insurers’ ability to make recommendations or suggestions to consumers on individual repair facilities or that would impede insurers’ ability to manage the claim repair process and control costs on behalf of consumers. “PCI is committed to advancing a pro- consumer agenda that supports healthy, competitive insurance markets across the nation,” said Paul Blume, senior vice president of state government relations for PCI. “In these tough economic times consumers are best served by measures that address the cost drivers of insurance and provide individuals with choices. Our agenda will also help modernize state regulatory environments and improve insurance marketplaces.”
In addition to auto body legislation, other priorities include protecting and promoting the viability of a competitive private insurance market, curbing fraud and abuse in several no- fault auto insurance systems, addressing auto body repair and coastal property insurance issues, as well as advancing cost containment measures in state workers compensation systems. In addition, PCI anticipates credit-based insurance scoring and tort reform to once again be legislative issues during 2012. PCI said it made significant progress at the state, federal, and international levels last year on many issues, despite facing an anemic economy, increasing political and regulatory pressures, and historic natural disasters. Looking forward to 2012, PCI said it anticipates facing many of these issues again, with the additional challenge of advancing its advocacy agenda during a watershed presidential election year.
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 37
UPDATE: Houston City Council Delays Vote on Auto Repair Ordinance, Draft Not Favorable to Shops The city of Houston delayed voting on an ordinance to regulate the automotive repair and service industry affecting every type of business that touches a car, whether it’s a body shop, an independent auto repair shop, a dealership or a big store like Wal-Mart. The council rescheduled the vote for February 15, 2012, after more issues were raised at a hearing held on December 20, 2011, when the council was originally supposed to vote on this ordinance. This delay presents some new problems to both sides lobbying over the bill—they now have an entirely new council, sworn in January 3, 2012, to update on the issues and convince to vote one way or another. A new list of council members by district can be seen at www.autobodynews.com, find out which district you reside in by visiting http://www.houstontx.gov/planning/2011/index.html. The Houston Auto Body Association (HABA) would like its members to reach out to the new council and make sure their opinions on this matter are
heard. Kathryn van der Pol, Past President of ASA, Houston Chapter, and co-owner of Adolf Hoepfl & Son Garage, is working with the HABA on writing their own version of the ordinance, incorporating what’s good about the City’s version to present to the new council since Houston Mayor Mayor Annise Parker, wants to pass an ordinance on this issue. Mayor Parker also made some changes to the ordinance, and the version that will be voted on February 15, 2012, can be viewed in its entirety at www.autobodynews.com. “While this ordinance has good intentions, it paints the entire industry with one stroke. The proposed ordinance stems from an effort to eliminate a problem that comes from a small percentage of unscrupulous collision-repair shops, which is one segment of the automotive repair trade. This attempt at a solution will wrap an already difficult business in more red tape,” says van der Pol. Writing in the Houston Chronicle, Van der Pol says there are some
good features for the consumer in this ordinance: “The ordinance will require all auto-repair facilities to post their license number on their advertising and invoices so that the consumer will know which companies are city-licensed repair facilities. “It will also require auto-repair facilities to carry a minimum amount of liability insurance. Currently, there is no local or state law that requires a repair shop to have insurance. In an uninsured shop, car owners are liable for anything the garage owner does with their car. Good shops already purchase insurance, but virtually all shops that lack integrity will also lack insurance. “Giving approval over the phone for any collision work will be illegal and limits will be placed on certain fees charged by collision shops. There is a good reason for this. Repairs resulting from accidents usually cost thousands of dollars. While we are hesitant to say that the city should set pricing for any private business transaction, we agree every approval for
collision repair should be in writing. The ordinance includes pages and pages that regulate how records will be kept, how repair shops may gain approvals from customers and establishes fines for sometimes honest mistakes that must be paid to the city. If this new law takes effect, phone approvals for mechanical work will be allowed only if the customer provides a third signature permitting an estimate either to be given orally, in person, or over the phone. Records of that approval have to be maintained for two years. Automotive professionals are concerned about this for a few reasons. “Our main concern,” continues van der Pol, “is that if your car is towed in to a mechanical shop, the facility can’t even look at the car until the owner comes in or faxes or emails a signature. If you are a business owner with a fleet account, you will have to email, fax or come to the shop to give approval of authorization or to sign a waiver. This will slow down the repair process and be an inconvenience for everyone involved.
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“Mechanical work is entirely different from collision. It differs in that it’s quick, less costly and customers depend on our efficiency so they can get their autos back. The city’s proposal will slow down this repair process. If it sounds complicated, it will be even worse when customers are confronted with the legalese. If they refuse to sign the waiver authorizing estimates by phone, the customer will have to return to the shop, find a fax machine or send an email. “While the Automotive Service Association (ASA) fully supports efforts to root out bad players in our industry, we believe this ordinance overregulates and will be a burden to our customers who don’t own fax machines, have access to email or have a second car to come back to the shop for a signature. This is going to affect senior citizens, the disabled, those with lower incomes, and those who depend on one vehicle the most. “Another provision is that no authorizations are required for repairs under $100. As long as your bill is $99.99, the repair shop does not need your permission to make repairs or
perform maintenance on your vehicle. Our concern is that if you are dropping off your car for an oil change and the technician calls because he determines your coolant needs to be flushed, the work will exceed $100. Then you will have a delay in repair if you did not sign the waiver - even though we still have the two signatures required by the state. This provision seems unnecessary and could lead to confusion and abuse. “If a shop neglects to put the license plate number, vehicle identification number, or mileage on a work order, or records it inaccurately, it could result in a criminal misdemeanor charge with a $200 to $500 fine. “Why do the mayor and some members of City Council feel this ordinance is needed? “The ASA was told it was necessary because there were some bad body shops taking advantage of insurance companies, resulting in a rise of insurance premiums. “ASA requested information through an open records request about the complaints so that as an industry,
we could better understand what problems the city is trying to address. The complaints did indeed support that there are some bad players in the collision repair industry who are charging excessive disassembly fees, administrative fees and are holding cars hostage. We were given 257 complaints filed over a three-year period with the Houston Auto Dealers, a division of the Houston Police Department that enforces automotive repair facility licenses. Of those, 61 complaints concerned excessive fees from collision shops—none from mechanical. It is a problem, but, “it’s like killing flies with a cannon instead of a flyswatter,” as Councilmember Jolanda Jones said. “Last, there is the concern about increased costs of implementation that will be passed on to consumers. All our paperwork will have to change to comply. Not to mention all our fees and permits were increased this year. For example, in 2011 a Houston automotive repair facility license increased 147 percent, from $200 to $495. “What do we recommend? Ideally, the city should create two separate automotive licenses, one issued to regulate the collision industry and another,
simpler one, for the mechanical industry. Many at City Hall acknowledge that this would be a real fix, but there is a rush right now to pass the ordinance before the end of the year. What’s the rush? ASA has known about this proposal for less than a year, and we have been working diligently with the city to help. The Automotive Service Association wants City Hall to slow down, listen to both industry and consumers and do it right the first time. Houston City council also approved changes to the city’s ordinance on Nov. 30 covering towing companies and auto shops geared toward “trying to make sure that an unhealthy relationship between the tow truck drivers and collision repair shops is monitored more closely,” Mayor Parker said. “There are lots of reports that after accidents, tow trucks may be being paid bounties to take cars to particular collision repair shops.” Other key industry representatives, including the Houston Auto Body Association (HABA), applaud some of the proposed mandates but are quick to say others may end up See Houston Ordinance, Page 42
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 39
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Legislating the “Bible” Not the Answer for Shops Tired of Being Told “No” with The Insurance Insider
When the repair industry (later than most) finally moved into the 21st century and started writing estimates by computer, shops and insurance companies alike likened computerized estimating to the advent of the washing machine. Why a washing machine? Some of you might be old enough to remember the days of washing your clothes by hand. Although I never had the pleasure, I recall my parents talking about the painstaking process of washing clothes in a bucket when they were kids. It was an arduous process that consumed a lot of your time if you did it right. I did write estimates by hand and I can assure you that it too was a long painful process. What made handwritten estimates worse was having to go back and try to translate what you scribbled while clutching a clipboard. If you are a member of Generation X or Y (or any other letter of the alphabet), you probably can’t relate to these old-man war stories. That said, I will try to offer a correlation you can appreciate. That’s what we’re supposed to do with the younger generation, right? Entertain them and cater to them and give them a ribbon just for participating even if they finished in last place. So for them: Handwritten estimates is like having to get up and change the channel on the TV because you can’t find the remote control. If you read the title you probably are wondering what legislation and the Bible have to do with this article? Well, the Bible is exactly the term repairers often use to affectionately refer to the estimating guides. Ooops, I mean estimating systems. If you didn’t understand my attempt at sarcasm, then reread the last sentence. Repairers affectionately referring to the “estimating systems” as Continued from Page 24
SCRS
indicates that the average appraisal value has remained flat for at least the last 7 to 8 years; meanwhile, consumer auto insurance premium costs continue to rise and the Insurance Information
the Bible is my best impression of a disheveled body shop owner who isn’t getting paid enough to repair a vehicle. Let’s be honest: Have you ever complained about an adjuster holding the line on a labor time because that’s what the estimating system says it is? If I had a nickel for every time a shop complained to me about one of my staff upholding the estimating systems’ labor time, I would already be
everyone knows it’s just a guide. Even the estimating system providers will tell you that they produce merely a guide and not the word of God. Insurers should be working with the shops to discuss and negotiate discrepancies instead of hiding behind scripture. But for every shop who insists it’s a guide and not the Bible (and complaining when it’s used against them), others are saying the same
retired. (Don’t worry: I won’t be able to retire for a few more years, which translates into more Insider articles for your reading pleasure.) When there is a conflict about the labor time on an estimate, the Bible becomes the deciding factor. The Holy Estimating System tells shops and insurers an approximate time to complete a specific repair operation. If the shop wants more time, the adjuster says no. Why? Because the estimating system says so. Do you question the almighty written word? Shops hate insurance companies for holding the line on the time for a specific labor operation because
thing but talking out of both sides of their mouths. How? Through legislation. That’s right. Over the past several years, shops in some states have worked fervently to legislate the guide as the Bible. The thing that repairers curse and despise is actually being put into law in a few states. Is this the work of a evil genius, a mad scientist or just short-sighted repairers? If we were on American Idol, I would be asking you to text 3 to vote for shortsighted repairers. Under some state legislation, the estimating system will serve as the final answer to all questions and dis-
Institute recently reported that private auto insurance is the most profitable line of insurance coverage in the United States. ● The insurance industry’s approach to establishing a singular prevailing labor rate charge for all businesses within a market fails to recognize the existence of reasonable variance between com-
40 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
petitive businesses. ● When the repair shop has entered into both the DRP contract with the carrier, and an authorization to repair contract with the vehicle owner, it is not necessarily as simple as insurers “promoting poor quality work,” but it becomes a question of who has more influence over the repair facility’s de-
crepancies. The legislation states that one can’t deviate from the information provided in the estimating system. Why would anyone want to mandate legislatively something that is only a guide, especially considering the information about inaccurate labor times in the guides that has been brought to light in the past few years? There are examples of labor times that eventually have been increased by as much as 100 percent from the original times in the guide. Why would repairers do this to themselves? If you were on Family Feud, Richard Dawson would shout, “The survey says: The P-Pages.” Repairers are fighting back. They have grown tired of being told by insurers that they don’t pay to mask the door jambs or any other non-included labor operation. You can almost hear one repairer saying, “Dammit, we want our 0.2 to mask the jambs,” or another one stating, “You can’t pick and choose what you want to pay for!” Their answer to all of this madness: We’ll legislate the use of the estimating systems. Now insurers will have to pay us exactly what’s in the estimating system. I could swear I’m watching, “Shop Owners Gone Wild.” I offer these words of advice after decades of committed service to the insurance industry: Be careful what you ask for, because you just might get it. You can legislate adding pennies to your estimates and lose dollars in the process. Instead, advocate for getting paid for what you do. Don’t advocate legislating something that is as accurate as the last estimate you wrote only to have to add a $3,000 supplement. Got a comment or question you’d like to see the Insider address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
cision making in the repair process, and whose interest drives those decisions. In summary, the association states that, “the question is not IF insurance carriers directly impact collision repair market pricing, but rather IF their approach and purpose is appropriate. Are See SCRS, Page 46
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Continued from Front Page
Candidate Causey
tempt at the position, after losing in the general election in 1992, 1996 and 2000 to Democratic incumbent Jim Long. Causey, a Greensboro native, will run under the Republican ticket. He currently serves as commissioner on the North Carolina Public Officers and Employees Liability Insurance Commission and is a member of the Guilford County Agricultural Advisory Board. Current Democratic Commissioner Wayne Goodwin is also seeking re-election. In an interview in the Beaufort Observer, the interviewer expressed a “high level of frustration of residents of Beaufort County with the insurance business in our county. Many residents in Beaufort County experienced severe problems with insurance companies following Hurricane Irene and even more have experienced difficulty in obtaining satisfactory coverage at a reasonable price. We asked him what he proposed to do about those problems if elected.”
“One of the main reasons I’m running is that I want to help people who are having problems with insurance companies,” said Causey. “That would be one of my top priorities in building a “customer-oriented” Insurance Department. As for the problem of difficulty in getting reasonable coverage, particularly comprehensive homeowners’ and mobile homeowners’ policies, I would work with the Legislature to address that problem. One of the specific things I would want to look at is the idea of making every policy equally available across the state. That would broaden the risk pool and I think that is something we need to take a hard look at.” He added: “we need a more competitive insurance industry in North Carolina and that is another thing I would want to work on.” Mike Causey is not to be confused with another Mike Causey, who is a senior correspondent for Federal News Radio. He covers federal employee pay and benefits issues and writes a daily column about these topics. You can read our Mike Causey’s columns at autobodynews.com/columnists/causey-mike.html.
Meguiar’s Endows 676 Schools with $600K Product Donation Through Collision Repair Education Foundation
Meguiar’s Inc., a 3M Company, has come to the aid of 676 secondary and post-secondary collision programs across the country by donating sets of their Unigrit Fine Grade Blending and Finishing Discs through the Collision Repair Education Foundation. The donation, in total equaling a retail value of $600,000, will ease collision department budgets by providing students the opportunity to work with up-to-date supplies. The gift from Meguiar’s helped the largest amount of schools in one donation in the Collision Repair Education Foundation’s history. “Since 2008, 3M has provided over $2 million in product donations to the Collision Repair Education Foundation and these have greatly impacted instructor’s ability to properly instruct collision students,” stated Collision Repair Education Foundation Executive Director, Scott Kruger. “On behalf of collision students and instructors nationwide, we thank Meguiar’s and 3M for their continued support and invite additional collision industry businesses to follow 3M’s lead in providing product donations to secondary and post-secondary collision school programs.” Northern Virginia Community College (Alexandria, VA) Collision
Repair Instructor Geoffrey Brown said, “Thank you so much for Meguiar’s very generous donation. These sorts of donations really help our program by being able to expose our students to products and techniques that we could not afford to provide out of our limited budget. The students are already excited about being able to get to use them and are now looking forward to next semester where I am sure we will put them to good use. Thank you Meguiar’s!” “Being able to assist in the development of our nations young professionals is an extremely gratifying feeling and one that our company is proud to be able to take part in” explains John Dillon, Global Vice President of Meguiar’s Professional and Marine Division. “We are excited at the ability of collision repair students that are supported by this foundation to have the opportunity to have first hand experience with our product and to learn the proper techniques to use them. It is a complete win-win opportunity for everyone involved.” Industry members and companies interested in supporting collision programs should contact Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or 847463-5244.
42 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
Continued from Page 39
Houston Ordinance
bogging down reputable businesses, slowing their ability to serve customers. James Brown, President of the Houston Auto Body Association (HABA), testified before the Mayor and City Council on behalf of HABA on November 29, voicing the HABA’s concerns with the current language in the ordinance. Brown was pulled into a private meeting with the Mayor’s Assistant, the City Attorney, and members of HPD Auto Dealers Division (Capt Baimbridge & Sgt Provost) following his testimony. The meeting lasted around an hour and a half and the group informed Brown that none of the latest revisions HABA requested would be honored for one reason or another. “We do think there’s a lot of good things in there, said Brown to KHOU 11 News Houston. “But there are a lot of things that still need some work. There are a lot of things in there that give the insurance companies the same authority as the consumer—the
owner of the vehicle—which we would like to see taken out.” “HABA has been working with HPD Auto Dealers Division for over a year and that has resulted in a lot of positive changes,” said Brown, “HABA has also worked closely with ASA on the revisions and we have made a lot of progress but still have a ways to go.” Councilwoman Sue Lovell, who spent a year meeting with auto repair industry representatives to craft the changes, said that once a car arrives, some unscrupulous collision repair shops charge more than $1,000 just to generate an estimate. She brandished a binder full of complaints to back her assertion that while most merchants are honest, there have been enough cases of abuse to warrant the city’s intervention. “It’s really about consumer protection,” she said. Jeanette Rash, owner of Fast Tow and leader of a consortium of wrecker companies that clears freeway breakdowns for the city, supported the revisions in part because it will allow storage yards to increase daily rates for the first time in a decade, from $15 to $20.
2012 NABC Annual Fundraiser Held in Conjunction with CIC in Palm Springs, CA The National Auto Body Council (NABC) held their annual golf event fundraiser on January 11, 2012, at the Tahquitz Creek Golf Resort in Palm Springs, California. A total of 133
of funding for the group. Not only does it help NABC implement the programs and activities that define it and give shape to this purpose, it helps reduce the cost of NABC’s programs
stated David Merrell, NABC golf committee chair. “I would like to thank all our sponsors, including presenting sponsor Hertz Rent-A-Car, for giving the
golfers registered for the scramble format. The event was able to raise $55,000 this year and was held in conjunction with the NABC’s open board meeting, which took place the previous day, January 10, as well as the Collision Industry Conference (CIC), which took place January 11, 12, 13. The annual fundraising event plays an integral part in providing the resources that support the organization in its mission of improving the image of all dedicated collision industry professionals because it is a major source
Golfers had the option of playing individually or in teams during the fundraising event
National Auto Body Council much needed support,” said National Auto Body Council Executive Director Chuck Sulkala. “We are extremely grateful they find our mission to magnify the good works of the industry in the view of the general public worthwhile enough to give so much of themselves. It fuels our inspiration to keep doing what we do in new and innovative ways.” The fundraising golf event was open to both individuals and teams, and was played using a four-person
for participants, making them more affordable. The fundraising committee comprised of current NABC board members worked together throughout last year in setting higher goals and expectations for this year’s golf fundraiser, success that translated into additional revenue. “Every sponsorship opportunity available was taken advantage of and every golf slot was filled equating to the higher revenue,”
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scramble format. The event concluded with a buffet reception, awards ceremony, and prize package drawings. An earlier tee off time and a complimentary breakfast, together with a more relaxed atmosphere, seemed to resonate with attendees and build additional enthusiasm for the golf fundraiser. Making the event that much more special was a Recycled Rides gifting ceremony in which a 1999 Ford Free Star mini-van was presented to a single mother of two, Maria Mendez, a home health care worker from Indio, whose son is disabled. His wheelchair was difficult for Maria to load into her old station wagon. The Free Star is better suited to accommodate it and is more reliable, relieving Maria of some of the daily stress that is part of her life. Pacific Collision Centers of Cathedral City, California, was the collision repair facility responsible for refurbishing the vehicle, which Hertz Rent-A-Car provided. Javier Lopez, manager of Pacific Collision Centers, oversaw the project in his shop. Visit www.autobodycouncil.org to learn more.
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Rotary Lift, Chief and Elektron Coming to National Automobile Dealers Association Expo Rotary Lift, Chief Automotive Technologies and Elektron will introduce equipment designed to help dealers increase their fixed operations productivity and profitability at the 2012 NADA Expo at the Las Vegas Convention Center, February 3 through 6, 2012. The Rotary Lift Shockwave™equipped SmartLift® environmentally friendly inground lift and Elektron® Multispot MI-100control T squeezetype resistance welders from Chief will make their industry debut at the show. Shockwave-equipped SmartLift inground lifts and two-post surface lifts are the world’s fastest lifts. Their 25-second rise and 19-second descent times are twice as fast as traditional lifts’. These DC-powered lifts also cost less to install and operate, for even speedier return on investment. Time and motion studies have found that Shockwave-equipped lifts can drive an additional $3,259 of profit per bay annually. Rotary Lift will run side-by-side speed demonstrations of standard vs. Shockwave-equipped
lifts in NADA Booth 718 throughout Expo show hours so dealers and fixed operations managers can see the power of Shockwave for themselves. The Elektron Multispot MI100control T resistance welder is the “smartest” welder on the market today. Designed specifically for spot welding vehicle structural body damage to areas manufactured with highstrength and advanced high-strength steels, the MI-100control T constantly monitors the materials being welded and automatically adjusts the welding parameters during the repair process to ensure uniformity. The welder detects and compensates for interference factors such as dirt, adhesives or protective coatings, as well as a change in materials. The welder will even adjust electrode pressure as needed. “Fixed operations remain an important factor in dealer profitability,” says John Rylee, marketing director for Rotary and Chief parent company Vehicle Service Group (VSG). “As dealers increasingly heed OEM sug-
gestions to add express service lanes, improve service times and bring collision repair back ‘in house,’ we’re providing equipment that enables them to maximize these investments for greater customer satisfaction and overall profitability.” For more information about Shockwave, visit www.rotarylift.com/shockwave. To learn more about the full line of collision repair equipment from Chief, including Elektron welders, visit www.chiefautomotivetechnologies.com. You can also find the brands on Facebook, Twitter and YouTube. The Rotary Lift booth number is 718. Rotary Lift is a brand of vehicle lifts and equipment designed to increase technician productivity. Founded in 1925 by the inventor of the first automotive hydraulic lift, Rotary Lift offers the broadest line of lifts for use in professional automotive service, commercial truck and transit, and enthusiast/residential customer segments. There are more Rotary Lift products used in vehicle repair shops around the world than any other brand. Chief Automotive
Technologies is one of the world’s largest manufacturers of collision repair products and services, including frame-pulling equipment, vehicle anchoring systems, computerized measuring systems, and vehicle frame specifications. Chief is also a provider of comprehensive training on structural analysis, computerized measuring, collision theory and design based repair. Additionally, Chief is the exclusive supplier of Elektron welders, battery chargers and plasma cutters in North, Central and South America. Rotary and Chief are Vehicle Service Group (VSG) brands. VSG comprises eight major vehicle lifting and collision repair brands: Rotary Lift, Chief Automotive Technologies, Forward® Lift, Direct-Lift®, Hanmecson®, Revolution® Lift, Blitz® and nogra®. Based in Madison, Ind., VSG has operations worldwide. VSG is part of the Engineered Systems segment of Dover Corporation (NYSE: DOV), a multi-billion dollar, global producer of innovative equipment, specialty systems and value-added services.
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SCRS, ASA, AASP Release Joint Statement Regarding the Collection and Reporting of Repairer Business Data by SCRS, ASA, AASP
The issue of data ownership is of everincreasing importance to both consumers and businesses as technology expands the landscape of digital trade, and the collision repair industry is not immune to concerns relative to ulterior use of business generated data. During the past several decades, the estimating and management system companies have increased their product offerings beyond core estimating and management functions for repair facilities. Their scope of services presently includes the collection, generalized aggregation, analysis, and sale or provision of repairer data to third parties. Collision repairers contend that: ● The collection of data is unilaterally demanded as a point of sale requirement for every estimating system option offered in the market, barring repairers that wish to provide electronically generated estimates from having the option of keeping their business data from being utilized for unauthorized purposes.
● The information that is harvested from the collision repairer’s system is being used for purposes other than those that the subscriber had intended when contracting to use the estimating system software. ● The information is used by secondary customers in ways that may ultimately be detrimental to the subscribing enduser who generated the data. When this issue was first broached several years ago, one primary response on the part of the estimating system providers was that the only data being captured was that obtained via the upload of Direct Repair (DRP) estimates, and those end-users had implicitly waived any data ownership rights by agreeing to upload estimates as a condition of their participation in the (DRP) program. They also claim that no privacy rights have been violated since the information is all collected in a depersonalized manner, and presented as an overall aggregation of data collected. While we continue to contest the validity of both positions, the advent of cloud based platforms has expanded the data collection potential
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to include any businesses utilizing the server-based programs. It has also expanded the potential of data mining from only estimating programs to the possible inclusion of information generated from business management programs or other technology based service platforms. The Information Providers may seek to reassure the collision industry that they have taken all necessary steps to safeguard repairer/consumer information from data privacy breaches. While the data may remain safeguarded from threats in the traditional sense of electronic security, the members of the collision industry remain concerned that the information is not necessarily safeguarded from the technology firms themselves who have built in contractual permissions to force the industry to permit utilization of the data in ways that were not intended or expressly approved by their customer base. We believe it is long overdue for our industry to have the express option to either “Opt In” or “Opt out” of
allowing technology firms to have access to ancillary uses of our data as a point of sale requirement to utilize the necessary tools once intended to aid the industry in running our businesses. This statement serves as a public request from the collision repair industry to Audatex, CCC, Mitchell and other technology firms who collect data. The industry seeks removal of contractual clauses within End User License Agreements which require permissive access to aggregate and collect end-user data as a point-of-sale requirement to purchase those programs. Further, we believe that if a business is to permit their data to be mined, they should be entitled access to an annual report specifically indicating where that data was used, and a list of parties that received reports utilizing data from the user’s system. We believe the ability for businesses to choose participation in the data collection process is a reasonable solution, and we look forward to your response.
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Parts Distributor and Insurer Elected to CAPA’s Board of Directors The Certified Automotive Parts Association is pleased to announce the election of John Palumbo of PartsChannel, Inc. and Bill Brower of Liberty Mutual Insurance to CAPA’s Board of Directors. John Palumbo is a widely recognized leader in the collision repair industry. Palumbo’s 15 years of experience began in 1996 as chief financial officer at Keystone. His responsibilities included strategic planning, mergers, acquisitions, banking, insurance, benefits, finance, accounting, tax planning, compliance, and investor relations. John is currently the chief executive officer for PartsChannel, Inc., a privately held distributor of aftermarket collision replacement parts. He re-
ceived his BS degree from Canisius College in Buffalo, New York and graduated with an executive master of business administration from Peter F. Drucker Claremont Graduate University in Claremont, California. He is also a certified public accountant. Bill Brower is a highly respected property and casualty claims management professional with extensive claims experience and a long established background in auto physical damage claims. Since 2004 Brower has been the Assistant Vice President & Manager Auto Physical Damage for Liberty Mutual Insurance. Bill graduated Magna Cum Laude from Franklin University in Columbus, Ohio in 2005. He is in the process of
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about increasing insurance company profits at the expense of their policyholders and the small businesses who serve them?” For more information please visit www.scrs.com or email info@scrs.com.
SCRS
we really talking about saving consumer’s money, or are we talking
studying for his MBA which he expects to complete in 2013. Bill began his career as a repair technician at his father’s body shop in Liberty, North Carolina in the 1970s. He served on CAPA’s Technical Committee for six years, holds positions on the PCI Physical Damage Committee, and is Vice Chairman of the I-CAR Board of Directors. “CAPA is fortunate to have both of these gentlemen on the CAPA’s board. Their expertise and guidance will be invaluable in our effort to ensure market has continued access to high quality alternative certified parts,” said Jack Gillis, Executive Director of CAPA. “Our Board provides CAPA with a unique insight into issues facing the
aftermarket parts industry and has contributed enormously to the nation’s foremost part quality certification program,” he continued. CAPA’s Board now includes: Bob Anderson, Anderson’s Automotive Services; Bill Brower, Liberty Mutual Insurance Company; Bill Daly, Allstate Insurance; Warren Farrar, State Farm Mutual Insurance; Jackie Gillan, Advocates for Highway and Auto Safety; Jack Gillis, CAPA; John Palumbo, PartsChannel, Inc.; Clark Plucinski, True2Form/Boyd’s Group; Ed Salamy, K.S.I. Trading Corp.; Ben Steinman, Ben's Auto Body; Mike West, Southtowne Auto Rebuild. For more information please visit www.capacertified.org.
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Continued from Front Page
CIC Palm Springs
of the study’s findings that it was never intended to be a statistically valid survey of the industry. “You can’t project the findings to the industry as a whole,” he said. Rather, he said, the committee hired a consultant to do more of a type of focus group: Hourlong conversational interviews with more than 40 indusRuss Thrall try representatives to develop some sense of the industry’s opinions regarding repair standards. Though a more in-depth report on the study’s findings is expected to be released in the coming months, the committee released a 21-page summary (posted online at http://tinyurl.com/7tysey4) of some of the more quantitative findings, the responses to the questions asking participants for yes-or-no or ranking responses. In 42 interviews with shops, insurers, associations, automakers and suppliers, the consultant found that all 18 shop representatives interviewed said they would support the standards effort; generally less than 65 percent of those in the other segments (which included six shop associations or networks) concurred. While not quoting interviewees directly, the report offers a sense of some of the comments made. Shop association representatives, for example, questioned what such a program is going to do for shops, and said insurers should not be in a position to influence how vehicles are repaired. Two of the six insurers interviewed also said that insurers shouldn’t be involved and that shops should drive the effort. The last question in the draft report issued by the committee asked survey participants what they see as the likelihood that the repair standards initiative would be implemented within the next five years. Thrall said using a scale of 1 (no chance) to 4 Continued from Page 14
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with due regard for its insured’s in-
(definitely), most respondents were somewhere in the middle. “It’s leans toward ‘likely’ (a 3 on the survey’s scale), but it’s more ‘perhaps (a 2 on the scale),’” Thrall said. “So people definitely aren’t sure it will be possible to implement this within the next five years.”
CIC Participants Speak Out Though the discussion that followed the committee’s report at CIC, held in January in Palm Springs, Calif., included some discussion of the issue of standards, much of it focused on criticism or defense of the research study itself. Some of the CIC participants who spoke included: ● Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), who said he felt the survey questions seemed less focused on “determining the appetite of the industry” for a formalized standard program and more on “carving out the menu.” He said the consultant, in addition to the 42 interviews, participated in a conference call with more than a dozen of SCRS state affiliate groups. “I think it was very clear from our folks on that call that (standards) are something that is valuable to be done by collision repairers for collision repairers, but that there was skepticism of having involvement among entities such as insurance carriers involving the establishment of repair standards.” ● Paul Massey of Ford Motor Company said that although OEM repair procedures are the logical basis for repair standards, it’s really up to shops, insurers and consumers to decide if there’s value in developPaul Massey ing a formalized standards program. The study, he said, didn’t answer the questions he thinks the industry needs to ask itself. “At the end of the day, if you put in standards would a lot more customers choose you over the next guy,” Massey said. “If you put in standards, do you run a better, more competitive terest.” Furthermore the correspondence states, in part, “State Farm has decided to exercise its rights under Florida law to avoid unnecessary liti-
and profitable business? And if you put in standards will the insurance companies use you versus the other guy?” ● Steve Nantau of Ford said he thinks many shops misunderstand “repair standards” as just dealing with the process of the actual repair, when he and the committee envision a more inclusive program that includes standards for training and equipment, and a third-party certification or auditing entity like one in the United Kingdom. “If you don’t have a third-party doing this, I can guarantee you that the OEMs are going to have certification programs for independent shops,” Nantau said. “We’re seeing that already. And it’s not going to be open to just anyone who’s qualifies. They’re going to be chosen. If you qualify and you weren’t a chosen one, you’re not going to be able put a (certified) sign above your door like you could if the industry created a thirdparty that certifies all who qualify.” ● Consultant Matt Ohrnstein of Symphony Advisors urged proponents of standards development not to “allow intermediaries to profit by taxing collision repair shops around the country for training, certification, OE-specific equipment and Matt Ohrnstein third-party verification.” ● Committee member and current CIC chairman Mike Quinn emphasized that the committee sees the study as information-gathering, not a license to push something forward. “This conversation is the beginning of many conversations,” he said. “There’s no plans Mike Quinn of any kind to move this forward any further from this study. It’s up to the industry to decide what happens next.”
Springs, I-CAR CEO John Van Alstyne said his organization hopes to respond by April to a joint request from multiple repairer associations that I-CAR play a role in standards formation. Last fall, a number of industry associations issued a statement calling published automaker repair procedures the “official industryrecognized repair standards for collision repair.” In the statement, the John Van Alstyne groups acknowledged that OEM repair procedures are “incomplete in comparison to the full scope of vehicles and repair operations that exist in the marketplace,” but they should serve as a baseline from which further development of procedures occur. The associations called on I-CAR to create an industry council “to identify gaps in existing OEM procedures” and to develop processes to close those gaps, vetting any industry-proposed alternatives, modifications or additions to OEM procedures. At CIC in Palm Springs, Van Alstyne reiterated what he said last fall, that he sees merit in the proposal given I-CAR’s current involvement with the automakers. But he also has said I-CAR’s board must decide what role it’s appropriate for the organization to play, and that he has personally been in touch with I-CAR stakeholders to gather feedback. He said the I-CAR board’s “strategic planning committee” will review that compiled feedback and make a recommendation to the board—with a decision, he said, likely by CIC’s April 25-26 meeting in Oklahoma City, Okla.
gation. Accordingly, enclosed is a check made payable to you and Raymond Gunder in the amount of $1090.70—which is the amount demanded in the CRN, plus statutory in-
terest. This amount is paid to ensure that any alleged violations are cured in accordance with the statute of Florida law and to preclude unneces-
I-CAR promises response Also at the CIC meeting in Palm
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at: jyoswick@SpiritOne.com.
See Gunder, Page 50
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 47
Three Developments Shaping 2011 Aftermarket Three major forces emerged which drove 2011 aftermarket growth and will continue to shape the car and light truck aftermarket for many years.
More Product Use Per Vehicle During 2011, aftermarket product volume for the average car and light truck in the U.S. increased approximately 3%. This drove-up total aftermarket light vehicle product sales at a time when total miles declined and car and light truck population was stagnant. This is the second consecutive year of increased product use per vehicle and reverses a trend of diminishing product consumption by the typical car and light truck in the U.S. between 2000 and 2009.
Foreign Nameplate Juggernaut Lang Marketing, in its preliminary analysis, estimates foreign nameplates generated nearly two-thirds of car and light truck product expansion in the U.S. during 2011 at user-price. With foreign nameplates accounting for over 50% of new vehicle sales since 2008, conditions are set for continued foreign nameplate aftermarket growth. Soaring gas prices during first half of 2008 sent foreign
nameplate share soaring from 50% to more than 56% of new vehicle volume in just a few months. Cash For Clunkers ignited a second-stage of foreign nameplate sales growth during the third quarter of 2009, when foreign cars and light trucks posted a record-high 58% new vehicle share. However, the 2011 tsunami caused production problems for many Japanese carmakers and also created parts shortages. To compound matters, Toyota experienced safety and quality problems in 2011 which drove-down their U.S. sales. The likelihood of higher 2012 gas prices and returning to normal supplies of Japanese cars and light trucks in Dealer lots and a fading of Toyota’s negative consumer perceptions will combine to boost foreign nameplate 2012 sales share.
Independent Service Outlet Strength All light vehicle service market (DIFM) product growth during 2011 was generated by Independent (nonDealer) car and light truck Service outlets. This marks the third consecutive year in which non-Dealer outlets expanded their light vehicle aftermarket product share.
ASRW Calling For Presenters at NACE/CARS 2012 ASRW | NACE | CARS is committed to meeting the needs of collision repair and automotive service professionals. The ASRW Conference Program has a long and rich history of bringing industry experts and professional speakers to the ASRW attendees with important, relevant and leading edge information. ASRW attendees depend on the seminars to keep them motivated, current with technology and industry trends, expand their horizons and explore new opportunities. If you are an industry speaker, subject matter expert or professional speaker interested in helping collision repair and automotive service professionals grow and prosper, you are invited to submit your presentation(s) for consideration to be included in the 2012 ASRW Conference Program. The expos will take place October 10 through 13, 2012 at the Morial Convention Center in New Orleans, LA. Sessions are selected to fit one of the following tracks: Management, Technical or Women’s Professional Development. Time slots available for the sessions are 90 minutes or 3 hours. All 3 hour sessions are scheduled for
Wednesday, Oct. 10. The 90 minute sessions will be scheduled for Wednesday, Oct. 10 through Saturday, Oct. 13. Presenters should be available to speak on any day of the conference. All presentations selected for the Management and Women’s Professional Development tracks will be submitted to the Automotive Management Institute (AMI) for approval and attendees will receive AMI credits for their participation. The deadline for submitting presentations is Friday, February 10th. Show Management and the ASRW conference planning committee will review all proposals and base evaluations on originality of proposal, past speaker performance or references, timeliness of topic, practical application of concepts or information, and/or relevance of content to the collision repair and automotive service industries. Final selections will be made by Show Management. Speakers must agree to meet deadline requirements with a signed speaker agreement. Please go to www.naceexpo.com to submit presentations for consideration.
48 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
Solera Announces Global Cooperation With Allianz Solera Holdings, Inc. a leading global provider of software and services to the automobile insurance claims processing industry, announced a new agreement making Solera the exclusive preferred global provider of automobile insurance claims processing software and services for Allianz SE, a leading global financial services provider. Solera’s mission with this agreement is to provide Allianz with essential software solutions, data services and support in 28 markets in which Allianz and Solera work together and to continue to focus on innovative products and services that help motor insurance policy holders receive a world class claims handling experience. “It is a real privilege to be awarded this exclusive agreement by Allianz. We are very excited about Allianz’s commitment to innovation and the importance it places on technology. As its exclusive preferred global provider of automotive claims software and services, we will work tirelessly to enhance its global value proposition. The Allianz commitment
to global growth and approach to standardize processes while giving its operating entities the freedom to build local businesses is one we admire and follow at Solera. This agreement is the single largest global agreement Solera has ever signed and will create substantial value for Allianz and Solera,” said Tony Aquila, founder, Chairman and CEO of Solera. “The agreement will continue to strengthen relationships among our respective local companies, resulting in an acceleration of benefits for all stakeholders.” Pursuant to the agreement, Solera will provide Allianz with essential software solutions, data services and support. At the same time, Solera will be able to work closely with Allianz at a global and local level both on product development and delivery at the local country level. There will also be enhanced cooperation agreements between the local Allianz companies and local Solera companies, including establishing a framework for new agreements in countries where the two local companies did not have an agreement previously.
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CA DOI
surers shall report the results of any labor rate survey within 30 days to the department which will in turn make the results available. The survey information will include names and addresses of the auto body shops and the total number of shops surveyed. The 16 current unfair claims settlement practices detailed in Section 790.03(h) of the California Insurance Code will be prohibited, including ‘failing to the attempt in good faith to effectuate prompt, fair, and equitable settlements of claims’. Following are selected quotes from the proposed language: “A survey, conducted pursuant to Insurance Code section 758, shall not be used to cap or reduce the labor rate charged on an estimate or repair order prepared by the claimant’s chosen auto body repair shop or to support the presumption of reasonableness of an insurers’ adjustment of a written estimate provided by a claimant. “Nothing in these regulations shall preclude an insurer from voluntarily negotiating and/or contracting with an au-
tomobile repair facility for a specific labor rate. “Nothing in these regulations shall require an insurer to conduct an auto body labor rate survey. “Nothing in these regulations shall require the insurer to use the posted labor rate of a shop surveyed. “the Department may consider this survey in determining whether an insurer has offered a fair and reasonable claims settlement and/or whether the insurer has supported the reasonableness of its adjustment of a written estimate provided by a claimant. “the Department will not consider any survey submitted to the Department more than one calendar year prior to the date of the written estimate provided by the claimant. “the insurer must survey all known auto body repair shops licensed to perform collision repairs by the Bureau of Automotive Repair in a specific geographic area. All [qualifying] shops that respond to the survey shall be used to determine the prevailing auto body rate in that geographic area. “The survey shall only use labor rates of auto body repair shops licensed by the Bureau of Automotive Repair
“An insurer may only use labor rates in a survey reported by shops that meet specific standards. (see full text for standards). “the following non-public information shall be separately included in any submission to the Department: (1) the labor rate reported by each shop that responded to the survey; (2) the name and address of each shop sent a survey, but did not respond tothe survey, reported for each geographic area surveyed; (3) a copy of the survey questionnaire used to survey the auto body repair shops. (g) For purposes of a survey compliant with this section, “prevailing auto body rate” means the greater of: (1) the mean average labor rate charged by auto body repair facilities in the specific geographic area or, (2) the rate, at or below which, the majority of surveyed shops charge in a specific geographic area. Other statistical methods may be used by an insurer if they are approved by the Department.” “If an insurer submits a survey pursuant to this section, the Department may require the insurer to submit a public version
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“Insurers shall not use any discounted rate negotiated or contracted with members of its Direct Repair Program, or any other Direct Repair Program... as part of a labor rate survey” “a geographic area used by an insurer in a survey shall be no smaller than a United States Postal Service Zip Code and shall not be larger than a thirty (30) mile radius from the center of the geographic area being surveyed.”
Steering With regard to Steering, supplemental language is added to the Insurance Code Section 758.5, expanding the definitions a claimant has chosen an automotive repair dealer when the claimant has specified to the insurer a specific automotive repair dealer... which he or she wishes to repair the vehicle. “Suggest or recommend” means that the insurer has communicated the name or names of one or more automotive repair dealers, has requested that the claimant choose a shop that is different than the shop chosen by the claimant. or communicates any information to the claimant which is relevant only to the choice of the automotive reSee CA DOI, Page 51
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CA/NV/AZ Automotive Wholesalers Association (CAWA) Delivers Rebuttal to Letter of Opposition to “Imitation” Aftermarket Crash Parts Legislation The CA/NV/AZ Automotive Wholesalers Association (CAWA) announced their response to a letter of opposition to “imitation” or aftermarket crash parts legislation written by the Alliance of Automotive Manufacturers, CA New Car Dealers Association, California Autobody Association and Consumer Attorneys of CA to CA senators and assembly members on December 5. The letter sent by these organizations to their senators and assembly members states; “The above-identified organizations and signatories write to inform you of their collective opposition to legislation that promotes non-OEM (original equipment manufacturer) crash parts as the functional equivalent of OEM parts. [Nonoriginal Equipment Manufacturer (NonOEM) crash parts are parts made by a party other than the original car manufacturer without the dimensions, design specifications, tolerances or other information known to the original equipment manufacturer.] “Existing law requires insurers that compel consumers to accept nonOEM parts when vehicles are repaired to inform consumers that “imitation” parts will be used and to warrant the “imitation” parts are “oflike kind, quality, safety, fit and performance” as OEM parts. For years, the insurance industry and off-shore, aftermarket parts industry have tried to weaken the law so they may compel unsuspecting consumers to accept inferior nonEOM parts. Continued from Page 47
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sary litigation. Again, State Farm’s payment should not be construed as an admission of any wrongdoing or liability on the part of State Farm who denies any liability, as well as the standing of Mr. Gunder to pursue any claims, but exercise of its right under Florida law to avoid protracted, vexatious litigation.” On receiving the news from his attorney, Ray Gunder said, “I am elated that State Farm has chosen to step up and pay what was due our customer and that State Farm elected to settle rather than proceed with a long drawn-out and costly litigation.
“We support existing law and oppose efforts to weaken it for the following reasons: ● Existing law promotes disclosure and fair repair practices. ● Too many non-OEM parts are
clearly inferior to OEM parts. For example, see the Bureau of Automotive Repair study on this issue. Also, Consumer Reports has debunked the argument that aftermarket “tin” parts are comparable to OEM parts. ● Use of non-OEM parts may impair warranties and reduce the value of used vehicles. ● Vehicles are increasingly complex, designed to dissipate crash energy by collapsing as engineered, and rely on multiple sensors to immediately deploy airbags upon contact. The use of “imitation” parts may impair these highly-integrated functions and endanger passengers. “If approached to author legislation to
The word “vexation” means harassing; and/or annoying as if the settlement was settled merely as a nuisance claim. I’ve never once found where an insurer has ever overpaid a claim and they didn’t in this matter either. They knew what they owed and why and that they would lose if it went in front of jury. They also knew, they would surely incur additional and significant legal costs and interest just as they have in the past. I don’t care what they say their motivation was as long as they pay us so we can pay our team-members for every drop of sweat they drop in the repair of our customer’s vehicles.” “It will be interesting to see how the other three active lawsuits we See Gunder, Page 51
50 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
unfairly promote the use of “imitation” crash parts, please contact us. We request the opportunity to discuss this important consumer protection issue with you before introduction.” The CAWA responded by releasing a statement that reads, in part, “For the first time, in our memories history, the car manufacturers and their new car dealers have joined with the trial lawyers and a sister aftermarket organization, the California Autobody Association, to collectively suggest to legislators that aftermarket replacement parts are inferior, imitation and their use could negatively impact warranties and compromise motorist safety. “In reviewing the enclosed letter, notice the disparaging remarks about replacement parts, and recall that a legislator does not distinguish, in their minds, between crash or hard parts as manufactured and distributed by the aftermarket. Please
know that CAWA will continue to defend the aftermarket’s reputation as a necessary option that is in the public good when it comes to replacement parts and service. We will continue to drive home our quality, availability and competitive advantage with legislators and their staffs through meetings, in district visits to parts stores and warehouses, in our everyday processes of lobbying on behalf of our industry and in our political action funding. “This new and bolder attack by the car companies and their new car dealers will not go unnoticed and will be challenged with the resources available to us. Rest assured CAWA will continue to promote and protect the interests of the aftermarket industry and your ability to do business in the states we represent. Please contact admin@cawa.org or 800.332.2292, ext. 1 should you have any immediate questions or comments regarding this recent miss-representation of aftermarket parts and service.” Please see www.cawa.org for more information.
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Sales Rebound and Mix Change For New Vehicles Car and light truck 2011 sales in the U.S. continued to rebound, up nearly 1.2 million units in annual sales over the previous year. Nevertheless, the new light vehicle market in the U.S. has a long way to go to match the nearly 17 million annual sales averaged between 1999 and 2007.
Domestic Nameplates Gain Share General Motors, Ford and Chrysler increased their combined sales 15.1%, besting by half the overall 10.3% gain in new vehicle 2011 volume. Chrysler finished the year strong, up more than 26%; while General Motors recorded 13% sales growth during 2011, with Ford climbing 11%.
Korean Nameplates Pass Germans Hyundia and Kia combined for a 26.5% increase in 2011 volume, nearly nine times stronger growth than all other foreign nameplates. The strength of Hyundia and Kia is underscored by their passing German nameplates in total U.S. unit volume. Just four years ago (2007), German light vehicle U.S. sales topped Korean volume by more than 35%. Toyota and Honda Volume Down 2011 was a down year for Toyota and
Honda which together shed more than 200,000 vehicles in 2011 volume from their combined 2010 sales. During November and December, however, Toyota posted a 3% increase; while Honda continued to struggle. Nissan, on the other hand, had a strong 2011, up 15%.
Rebounding Foreign Share With Toyota and Honda likely to rebound in 2012 and continued strong growth from Korean and German nameplates, Lang Marketing expects foreign nameplate 2012 share will turn upward, returning to approximately 55% of light vehicle 2012 volume.
Historic Mileage Downturn in 2011 Mileage by all types of vehicles on U.S. roads will suffer at least a 1.3% decline, with car and light truck mileage down even more. This will be the second largest U.S. mileage plunge in more than 55 years (since WW II).
Traditional Growth Drivers Absent Aftermarket car and light truck growth in the U.S. traditionally has been propelled by two factors: an increasing number of light vehicles on U.S. roads, and more miles driven by cars and light trucks. In 2011, neither of these two growth factors were in play.
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pair dealer. The insurer shall not communicate false, deceptive, or misleading information to the claimant. including, but not limited to: A. Advising the claimant that the claim payment will be reduced by a lower labor rate, when the insurer has not· conducted an Auto Body Repair Rate Survey. B. Advising the claimant that an inspection of the vehicle will occur at a date that is later than the reasonable time necessary to inspect the damaged vehicle. C. Advising the claimant that the automobile repair dealer chosen by the claimant has a record of poor service or poor repair quality, or of other similar allegations against the dealer, without clear documentation in the claim file supporting these statements. D. Requesting or requiring that the claimant have the vehicle inspected at or by an automobile repair dealer where the insurer has a DRP or by any other automobile repair dealer identified by the insurer, after the claimant has chosen an automobile repair dealer.
have filed against State Farm on behalf of our customers turn out,” continued Gunder. “There are an additional 25 more in line behind those which are ripe to be filed for similar issues. We’ll just keep pounding that rock!”
CA DOI
Gunder
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Mitchell Announces Wicklunds CARSTAR as Winner of Get-a-Life Dream Vacation Mitchell, a San-Diego-based provider of technology, connectivity and information solutions to the Property & Casualty claims and Collision Repair industries, announced the winner of Mitchell’s Get-a-Life Dream Vacation contest held in 2011. Mitchell’s RepairCenter™ team presented Gabrielle Kephart of Wicklunds CARSTAR and Glass in Liberty, MO with a check totaling $5,000 in late December 2011, for an all expenses paid trip to Maui, Hawaii. RepairCenter is the industry’s first Shop Workspace™ solution that manages the repair, the customer, and the business, all from a single personalized workspace, helping body shops manage their businesses so well that they have time to “get a life.” “Congratulations to Wicklunds CARSTAR for winning Mitchell’s Get-a-Life Dream Vacation,” said Jim O’Leary, Mitchell’s Vice President of Repair Solutions. “We are pleased to empower shop employees to ‘get a life’ by simplifying every aspect of complex auto collision repair
business environments. Mitchell’s RepairCenter auto shop management software streamlines key repair
Receiving Mitchell’s Get-a-Life Dream Vacation contest prize from Stephan Brisard, Director of Product Marketing, Mitchell Repair Solutions, right, are (from left): Rochelle Wicklund, Collision Repair Consultant, Gerald Wicklund, Owner/General Manager, Gabrielle Kephart, Collision Repair Consultant at Wicklund CARSTAR and Glass, the winner of the trip to Maui, Hawaii
processes to help body shops be more efficient.” O’Leary added, “We believe that a trusted partnership―founded on listening, responsiveness and collaboration―is the cornerstone of Mitchell’s and our clients’ success,
National Highway Traffic Safety Adminstration (NHTSA) Concludes Chevy Volt Investigation The National Highway Traffic Safety Administration (NHTSA) released a statement January 20 regarding the conclusion of its safety defect investigation into the post-crash fire risk of Chevy Volts (PE11037). The National Highway Traffic Safety Administration closed its safety defect investigation into the potential risk of fire in Chevy Volts that have been involved in a serious crash. Opened on November 25, the agency’s investigation has concluded that no discernible defect trend exists and that the vehicle modifications recently developed by General Motors reduce the potential for battery intrusion resulting from side impacts. NHTSA remains unaware of any real-world crashes that have resulted in a battery-related fire involving the Chevy Volt or any other electric vehicle. NHTSA continues to believe that electric vehicles show great promise as a safe and fuel-efficient option for American drivers. However, as the reports released in conjunction with the closure of the investigation today indicate, fires following NHTSA crash
tests of the vehicle and its battery components—and the innovative nature of this emerging technology—led the agency to take the unusual step of opening a safety defect investigation in the absence of data from real-world incidents. Based on the available data, NHTSA does not believe that Chevy Volts or other electric vehicles pose a greater risk of fire than gasoline-powered vehicles. Generally all vehicles have some risk of fire in the event of a serious crash. However, electric vehicles have specific attributes that should be made clear to consumers, the emergency response community, and tow truck operators and storage facilities. Recognizing these considerations, NHTSA has developed interim guidance—with the assistance of the National Fire Protection Association, the Department of Energy, and others—to increase awareness and identify appropriate safety measures for these groups. For additional information on the Volt investigation and others, visit www.SaferCar.gov.
52 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
and we will continue building on the value we deliver to the collision repair industry.” “I’m thrilled that I won Mitchell’s Get-a-Life dream vacation – I couldn’t believe that I won,” said Kephart, Collision Repair Consultant for Wicklunds CARSTAR. “Mitchell RepairCenter is a great program that helps me daily in my job, from managing and navigating through files to get info on a certain file. I’m looking forward to having an amazing time in Maui with my mother.” RepairCenter is the industry’s first Shop Workspace, building on the strength of Mitchell’s market-leading business management systems, repair information content, and customer satisfaction services functionality. RepairCenter’s flexible design allows auto body shops to select the tools they need to create a customized Workspace that meets their exact needs, and then add modules as their businesses evolve. To learn more about RepairCenter and Mitchell’s other solutions for collision repair facilities please
fill out the contact us form on Mitchell.com or contact your Mitchell representative. Wicklunds CARSTAR & Glass of Liberty, MO was the First CARSTAR Franchisee. Founded on the principle of raising the standards of the collision repair industry, Wicklunds CARSTAR Collision Repair Center must meet strict requirements concerning quality of work, training and customer satisfaction. Wicklunds CARSTAR & Glass has earned The CARSTAR President’s Platinum Award for Excellence in Customer Satisfaction. Customers have given Wicklunds a Customer Satisfaction Index Rating of 97% or greater since the program’s inception in 2002. Quality repairs combined with an exceptional warranty and excellent customer service. For more information, visit www.wicklundscarstar.com. For more information about Mitchell, visit www.mitchell.com.
tC 2011
ALL THE AUTHENTIC WHOLESALE SCION PARTS YOU NEED FOR YOUR NEXT REPAIR, AND FINISH! These Dealers Below Are Authentic Wholesale Scion Parts Specialists:
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Florida’s Auto Angels Host Second Annual Vehicle Giveaway, Planning for 2013 On Tuesday, December 20th, the Auto Angels group, in association with The Mid Florida chapter of the Florida Auto Body Collision Alliance (FACA), presented 12 reconditioned vehicles to a dozen
notified men, women and children were led to their newly reconditioned vehicle by an Auto Angel. David Stewart, this year’s Auto Angels Chairman stated: “Getting twelve vehicles ready turned out to be a massive undertaking and couldn’t have been accomplished without the hard work and resources of many dedicated professionals. But the sacrifices paled in comparison to the feeling of accomplishment each of us felt in seeing the faces of the recipients. It was amazing and the true spirit of Christmas giving was felt by all. A special thank you to the Auto Angels’ committee, whom 12 reconditioned vehicles lined the entrance to Victory without their hard work and Church in Lakeland, FL, awaiting their new, very appreciative owners dedication, this very worthwhile program couldn’t have local families to make for very spe- been possible.” cial Christmas for all involved. The Auto Angel’s committee Cheers and tears erupted members include: throughout the ceremony as keys to newly reconditioned vehicles were ● David Stewart, Chairman, Stewpresented and the pre-selected and art’s Auto Repair Mazda 3 ‘11
Excited families tried out their new rides
● Ray Gunder, Past Chairman, Gunder’s Auto Center ● Barrett Smith, Auto Damage Experts, Inc. ● Cherri Surrency, Stewart’s Auto
The families chosen to receive these vehicles waited as each car was matched up to the family it would go home with
Excited families tried out their new rides
Repair ● Nick McLeisch, Maurice’s Body Shop/Towing ● Doc Jenkins, Jenkins Lincoln Mercury Collision Center ● Michael Meisner, Meisner’s Paint and Body ● Paul Hawk, Bernie’s Body Shop ● Mike Maskolunas, Bartow Ford
For more information or on how to participate in next year’s Auto Angels program, contact David Stewart at: david@stewartautorepair.com or call (863) 965-2030. To contact FACA, go to www.facafl.org.
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BMW Announces Nearly $900 Million Investment, Adding 300 Jobs at its South Carolina Plant On January 12, BMW announced that the company will invest nearly $900 Million and add 300 new jobs in 2012 in its South Carolina plant. This announcement was made during a ceremony to commemorate a major production milestone—2,000,000 vehicles have rolled off the assembly line since the company began U.S. production in 1994. Frank-Peter Arndt, BMW Group Board Member responsible for Production, revealed the company’s intention to expand its X-model family. He revealed that production of the new BMW X4 will occur at the Spartanburg plant, spurring significant investment and job creation necessary to prepare the facility for the new model. “I am delighted to announce today, over the next three years, we plan to invest nearly $900 Million U.S. dollars. With this investment, we will be able to produce 350,000 units here in the mid-term,” said Arndt. “This is one reaction to the rising global demand for our BMW X Models.” Governor Nikki Haley spoke at the ceremony saying, “BMW has once
again provided tremendous evidence that South Carolina is a blueprint for significant economic development success. The partnership between this company and our State is an enduring example of how to attract, retain and grow business to stimulate perpetual job creation.” “Two million vehicles have prepared our team well to meet the new opportunities that lie ahead for our plant. We look forward to a new model with great anticipation. For nearly 20 years, this team has always proven their steadfast commitment to producing quality vehicles for our customers around the world,” remarked Josef Kerscher, President of BMW Manufacturing. “I am thrilled to celebrate the two millionth BMW today,” said Bobby Hitt, Secretary of Commerce for South Carolina. “BMW’s impact on South Carolina’s economy and overall competitiveness is always worth celebrating. This new economic investment and commitment of jobs is a testament to South Carolina’s strong automotive manufacturing industry.”
Heavy Duty Aftermarket Associations Join Forces The Commercial Vehicle Solutions Network (CVSN) and the Heavy Duty Distribution Association (HDDA) announced a collaborative agreement designed to strengthen the independent heavy duty distributor aftermarket. The announcement was made at a press conference at the opening of Heavy Duty Aftermarket Week at The Mirage Hotel in Las Vegas, NV. Organization leaders explained that while both groups will remain separate and distinct entities, they will share a number of benefits and programs by virtue of HDDA’s segment affiliation with the Automotive Aftermarket Industry Association (AAIA). These include market research, public relations, communications, education, governance, publications and legislative and regulatory affairs. The collaboration will be a major step in expanding AAIA’s involvement in the commercial vehicle aftermarket through a closer and stronger partnership with CVSN, according to AAIA. “AAIA is extremely pleased to work more closely with CVSN, which will help expand our association’s footprint in the overall motor vehicle aftermarket,” said Kathleen Schmatz, AAIA
president and CEO. “We have seen the recent benefits of collaborating on legislative issues so this greater ‘coming together’ will be a real win-win.” “CVSN shares common goals with HDDA and AAIA for the success of our industry segment through education, growing strategic relationships with our supplier partners, and a strong activism to counter unfair competition and regulations that threaten us,” said Marc Karon, of CVSN and Total Truck Parts. “For the first time in 45 years, the independent heavy duty aftermarket will speak with one strong voice.” “CVSN has found that partnering with HDDA and AAIA has delivered positive results,” said Karon. “We have found true synergy in working together on projects like Heavy Duty Aftermarket Week and the CVSN Legislative Summit that have benefited our members and the industry.” “The greater collaboration between CVSN and HDDA will leverage the economies of scale from greater access to the valuable resources at AAIA,” said Dave Scheer, HDDA chair and president and CEO, Inland Truck Parts. “This new ‘coming together’ will strengthen all three associations.”
54 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
With the addition of 300 new jobs this year the plant will raise production capacities up to 300,000 units. By the end of the year, the plant will employ nearly 7,500 people at its more than 4.0 million square foot facility. Since the original 1992 decision to build BMW’s only U.S. plant in South Carolina, this announcement brings BMW Group’s total investment in the state to nearly $6 Billion U.S. dollars and represents its largest, single investment to date in its South Carolina plant. In 2011, the plant produced 276,065 vehicles for over 130 markets around the world representing a 73% increase versus 2010. Seventy percent of the vehicles produced (192,813) were exported making BMW the largest automotive exporter to the non-NAFTA countries. Sales of the vehicles produced at the plant have met with continued high demand. According to Arndt, throughout the world, more that 117,000 X3’s were sold in 2011 representing a 156% growth of this vehicle versus its predecessor.
The 2 millionth vehicle to roll off the line in Spartanburg was a Vermillion Red Metallic X3 xDrive35i driven by BMW Associate Terry Gardner, a 16-year BMW veteran. Accompanying the driver, were associates: Renita Williams, Trung Phan and Olga Yurchenko. These associates represent teams from each of the plant’s manufacturing technologies: Body, Paint and Assembly. While all vehicles are custom ordered prior to production, this symbolic vehicle will remain on display at the Spartanburg Plant to commemorate the milestone. Also making remarks at the milestone event were German Ambassador to the United States Peter Ammon, United States Congressman Trey Gowdy and Spartanburg County Council Chairman Jeffrey Horton. Since 1994, the plant has undergone four major expansions and produced 6 different BMW models. Employment has grown from 500 in 1994 to more than 7,000 today. Visit www.bmwusfactory.com for more information.
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Nissan and Daimler to Produce Engines Together at Nissan’s Tennessee Plant In the latest step forward in the collaboration of the Renault-Nissan Alliance and Daimler, Nissan’s Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014. Nissan and Daimler will produce Mercedes-Benz 4-cylinder gasoline engines together at Nissan’s powertrain assembly plant in Decherd, Tenn. Production will begin in 2014, with installed capacity of 250,000 units per year once full ramp–up is achieved. The Decherd facility will produce engines for Mercedes-Benz and Infiniti models. “This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far,” said Renault-Nissan CEO Carlos Ghosn. “Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America—a win-win for the Alliance and Daimler.” The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade re-
gion. The Tennessee plant’s strategic location and logistics links ensure a direct supply of engines starting in 2014 for the Mercedes-Benz C-Class, built at Daimler’s vehicle plant in Tuscaloosa, Ala. “In the context of our MercedesBenz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation,” Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, said. “Thus we are systematically broadening our manufacturing footprint in this important growth market.” Nissan began powertrain assembly in Decherd in 1997. Today it manufactures 4-, 6- and 8-cylinder engines for the complete lineup of U.S.-produced Nissan and Infiniti vehicles. The plant also houses crankshaft forg-
ing and cylinder block casting operations. In 2011, Decherd produced more than 580,000 engines on a covered area of more than 1.2 million square feet (111,000 square meters).
Project portfolio expands Daimler and the Renault-Nissan Alliance launched their strategic collaboration in April 2010, including an equity exchange that gives the RenaultNissan Alliance a 3.1 percent stake in Daimler and Daimler a combined 3.1 percent interest in Renault and Nissan. The collaboration began with three project pillars: 1. Joint smart/Twingo architecture: The project is on track for launch in the early first quarter of 2014. Twoseater smart vehicles will be produced at Daimler’s plant in Hambach, France, and four-seater smart and Renault production are slated for Renault’s plant in Novo Mesto, Slovenia. 2. All-new entry-level city van project for Mercedes-Benz: The project is on schedule with expected launch in late 2012. Manufacturing at Renault’s plant in Maubeuge, France.
3. Powertrain cross-supply: The Alliance is supplying Daimler with compact three-cylinder gasoline engines to be used in smart and Twingo vehicles and four-cylinder diesel engines to be used in the jointly developed light commercial vehicle and in MercedesBenz’s next generation of premium compact cars. Daimler will supply Nissan and Infiniti with four- and sixcylinder gasoline and diesel engines from the current and future engine portfolio as well as with automatic transmissions. Since its founding in April 2010, the collaboration has been gradually expanded. In addition to the announcement this week about North American engine production, the companies also decided to partner on: Platform sharing: Infiniti plans to base a premium compact vehicle on the Mercedes compact-car architecture, starting in 2014; Zero-emission vehicles: Daimler will provide batteries from its production facility in Kamenz, Germany, and Renault-Nissan will provide electric motors for the use in electric vehicles.
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 55
Shop Showcase
Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251
The Elite Group Collision Centers Acquires Firestone Auto Body in Downey, CA, Increasing Their Locations to Eight Industry 5 months ago the group also went Angeles. The dealership is a few Elite Group will keep Firestone The Elite Group Collision CentersInsight is with Erica Schroeder
a group of eightwith collision centers in into partnership with Steve Vettel of John Yoswick the Los Angeles, Orange County and Pacific Collision Centers on a locaPalm Springs area owned by Mike tion in Cathedral City. The group also Salyards and Tim Mullahey. has owned Central Coast Collision in Arroyo Grande for several years but only recently brought it under the Elite Group brand due to its diswith Ed Attanasio tance from the rest of the locations. Central Coast is located near San Luis Obispo, CA. “We take a lot of pride in the names of our collision centers,” said Mike. The locaEdCA, Attanasio Cone Collision Centerwith in Fullerton, was the first location tions Elite Group has in the Elite Group of Collision Centers, it still remains the acquired had great reputabusiness’ headquarters today tions in their communities Mike managed Cone Collision before being bought by Elite Group, so they maintained their original Center in Fullerton, CA, for 15 years when Tim bought the dealership Cone names and thus their prestigious repuwas connected to, Cone Chevrolet— tations, merely adding the Group later changed to Mullahey Chevrolet. brand name as support. Tim and Mike decided to go into partThe group is able to see about nership together starting with Cone 1000 cars per month and grosses in exCollision Center; and as they grew cess of 25 million per year. They have they branded their group of collision about 165 employees across all locacenters under the Elite Group Brand, tions that work on vehicles for several but kept the collision centers’ original insurance companies through DRPs. names due to their great reputations “There are very few Insurance acquired over time. Carriers we aren’t aligned with,” said Mike, referring to Direct Repair Relationships. Following in the footsteps of the original Cone Collision location, all of the locations acquired are large locations. Cone Collision has remained the hub of the group’s locations, where they have a full Korean and Hispanic marketing team in Cone Collision Center has a state of the art reception area order to reach out to those Since going into partnership, communities near their locations. Mike and Tim have bought seven repMike’s daughter, Megan, runs the utable collision centers. Over the past marketing department for the group. Being a family-oriented business, 10 years they bought Crenshaw ColMike’s two sons also work at the lision Center in Los Angeles, Prestige Fullerton location; Travis has been the Too Autobody in Torrance, America’s General Manager there for about 5 Collision Center in Orange, Harbor Collision and Signal Hill Auto Body years and Michael “Cole” is a Service Advisor who handles the GEICO inwere combined into Prestige Too Colsurance account. lision Center of Long Beach, and Tim also owns two Ford dealermost recently, Firestone Auto Body in Downey. ships, one being Central Ford of Los
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56 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
under the same name that it has always operated in order to keep their existing, faithful clientele. The location is quite large, like all of the other locations Elite Group has acquired, and is able to do about $400,000 in work each month with 22 employees. The Elite Group acquired Firestone Auto Body in Downey, CA, at the “We really take a beginning of 2012, in order to service their nearby dealership lot of interest in Firestone in January of 2012 to serv- our employees,” said Mike. When Elite acquires a locations, they usually ice this dealership. “We wanted a location to service keep most everything about the busithat dealership and because of Fire- ness the same, due to their acquisition stone’s reputation we decided to ac- of well-established locations. This includes most of the staff. According to quire it,” said Mike. blocks away from Firestone Auto Body, so the group decided to buy
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Mike, a lot of the employees at Cone Collision have been there since he began there 17 years ago. “We take a lot of pride in having some of the best techs in the industry,” said Mike. Elite Group also sends a lot of their employees to training, mostly through Cerritos College, a local junior college. According to Mike, Elite Group’s employees have been very successful in those classes and they have been able to create some really good, new employees. The Elite Group’s employees also maintain their I-CAR Gold and Platinum statuses. The Elite Group of Collision Centers’ mission is to satisfy 100 percent of their customers, 100 percent of the time. According to Mike, they achieve this goal by having the best employees working together with a common purpose.
Cone Collision Center 600 W. Commonwealth Ave. Fullerton, CA. 92832 (714) 871-2545 www.elitegroupcc.com
NRC Releases Automotive Electronics Safety Report The Automotive Service Association (ASA) has noted the National Research Council’s (NRC) Transportation Research Board recently released a study reviewing automotive electronics safety, which will likely result in electronics safety policy changes. The committee that produced the report found that the increasingly capable and complex electronics systems being added to automobiles present many opportunities for making driving safer but also present new demands for ensuring their safe performance. These safety assurance demands pertain both to the automotive industry’s development and deployment of electronics systems and to NHTSA’s safety oversight role. With regard to the latter, the committee recommends that NHTSA give explicit consideration to the oversight challenges arising from automotive electronics and that the agency develop and articulate a long-term strategy for meeting these challenges. ASA said the study—which was requested by the National Highway Traffic Safety Administration
(NHTSA) after the 2009–2010 reports of sudden acceleration problems in Toyota vehicles—was meant to identify how the NHTSA’s regulatory, research and defect investigation programs can be strengthened to meet the safety assurance and oversight challenges created from the use of automotive electronics. The ASA said key findings from the study include the following: • Electronic systems have become critical to the functioning of modern automobiles. • Electronic systems are being interconnected with one another, and with devices and networks to provide their desired functions. • Proliferating and increasingly interconnected electronics systems are creating opportunities to improve vehicle safety and reliability, as well as demands for addressing new system safety and cyber security risks. • By enabling the introduction of many new vehicle capabilities and changes to familiar driver interfaces, electronics systems are presenting new challenges for system design and
vehicle-level integration. • Automotive manufacturers implement many processes during product design, engineering and manufacturing intended to ensure that electronics systems perform as expected, and to detect failures when they occur. The ASA said the 16-member committee that conducted the study made the following recommendations to the NHTSA: • NHTSA should become more engaged in standard-setting and other efforts aimed at strengthening the way auto manufacturers ensure the safe performance of their automotive electronic systems. • NHTSA should convene a technical advisory panel comprised of individuals with backgrounds in the design, development and safety assurance of automotive electronic systems. The panel should be consulted on relevant technical matters that arise with respect to all of the agency’s vehicle safety programs, including regulatory reviews, defect investigation processes and research See NRC Report, Page 63
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 57
Custom Corner with Rich Evans
Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com
Doing a Charity Build for Patriot Outreach on a Donated Mustang
Alan Taylor from Motor Trend Radio called me last fall to say he had partnered up with eBay Motors to ‘personalize’ a 2012 5.0L Mustang donated by Galpin Ford. Then auction it during SEMA 2011. He wanted to put a team together to take the car from “stock towith extreme,” but still Thomas Franklin street legal. I was in. They also wanted to do a videofor-the-web program about personalizing the car from start to finish. The program is called modJOBS, and you can go to eBay Motors and watch our 6–8 minute episodes at cc.ebay.com/ The 2012 Ford Mustang, seen here at SEMA 2011, was built by the modJOBS team to benefit Patriot Outreach. The car was donated by Galpin Ford in LA and auctioned off on eBay Motors. It mod-jobs. It’s narrated by Alan and yielded $50,100, all of which will go to Patriot Outreach to support treatment for PTSD Dennis Pittsenbarger from Hot Rod watching the modJOBS videos. Magazine Live. (I come in on episode putting some more personality behind With the interior we’re just going #3, Sweet and Low.) So modJOBS it to represent the men and women that serve our country and provide to do it real subtle but real cool. So makes it fun. Everybody gets to team Dickalong Strom some benefits when they get back with my design concept I came up up and you getwith to follow by with, I want to make the car look like watching the episodes of how to build from serving. Basically we’re going to take this it’s going 100mph and then I want to a vehicle and how to add accessories represent Patriot Outreach and design and what’s available out there for car and partner with a lot of people to modify the performance, the wheels, these new vehicles. the braking, paint, parts, look-and feel concept, and exhaust. So we’ve got the 2012 Mustang and we’re taking it over to get the performance improved by Edelbrock. So they put a supercharger in this thing, which gives you another 100–150 horsepower to bring with Lee Amaradioit up Jr.to 550-hp at the flywheel. I don’t want to give you all the inside scoop on it because I really want you guys to watch our modJOBS episodes and With Dennis Pittsenbarger (l) checking out the follow us along the build that way. caliper covers by MGP Caliper Covers I reached out to a team of guys to Alan said the car would be auc- help me so I didn’t have to carry the whole weight of this build. We got tioned on Ebay and the proceeds would go to a charity called Patriot Ryno Templeton from Blast of Air. A Outreach (www.patriotoutreach.org) lot of readers will know him from my Allstar team on Car Warriors. I also to contribute to treating PTSD. The reached out to Revo Reeves who ultimate team would include Vick Edelbrock, Jr.with (supercharged enSheila Loftusowns Stitch Craft Interiors. Revo did gine); Revo Reeves (interior), Ryan the interior and the audio and Ryno ‘Ryno’ Templeton (paint/airbrush), did the airbrush art on the headliner and the paint. The paint was selected and me (modified design/fabrication). after voting by eBay members (more I love building cars and was happy to put time and effort to benefit on that later.) We did a logo for Patriot the people that have served our coun- Outreach on a fiberglass headliner that try and are the real heroes. They go I made. We don’t really want to get over and risk or sacrifice their lives to real loud with this car but we want to make better lives for us. Here was a make it kind of subtle and cool. Everybody knows I’m always real chance to give something back. So we started off with Galpin’s loud, so I’ve got to tune it down and 2012 5.0L Mustang with the goal of back a little bit, which you’ll see by
On Creative Marketing
a really cool rim. I came up with a rim and for you guys to see it you’re going to have to go visit modJOBS and see the episode. I basically took a wheel with the Chevron stripes incorporated in it and it’s also got Army, Air Force, Coast Guard, Marine and Navy representation on it to represent what these guys do in a nutshell. What a better way to give back and show our thanks than to really put some heart to it and
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58 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
Ryno Templeton airbrushed the tribute to the armed forces on the headliner
and then Ryno’s going to do his thing with some stars and stripes. The process is really cool. It’s about people getting together. We called on Hurst Shifters. My buddy Nate over there sent over a shifter for the project and also reached out to Magna Flow. They also sent out some The set of modJOBS’ production in my shop, Huntingdon Beach product for Bolt on Body Works and we were actuthat’s what I did in that wheel design. ally able to take it over to them and I’ve got Brian with Onward Coating have them install it. There were a cutting my wheels and I want to thank whole lot of other sponsors that came him for being able to get these wheels together on this, I’d really like you out on time. It came down to a pinch guys to tune into modJOBS, that’s the where we had to put these wheels on whole purpose behind this story. I can a plane and get them out here in time tell the story but being able to circle to make it for the big unveiling at back and watch it, just go to Ebay Mo2011 SEMA. I wanted to incorporate tors and click modJOBS and follow its own stand alone grille, so I created along. Another cool thing was that we a grille kit for it, and also a scoop. got to interact with eBay customers From there we’re incorporating a rac- and let them choose. I created three ing stripe down the side, a graphic, concepts with the help of Ryno and let
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them choose which concept and paint job to go with. If we do more of these we will probably incorporate wheels, body kits, and stuff like that and make it a build your own car. It makes it unique when you’re interacting with the viewers and the customers in finding what they want. After creating all
Setting up for the video
this and building this car, the journey was cool. Benchmark Productions are the people that produced everything. We did most of the build here at Huntington Beach Body Works, where we have Rich Evans Designs, my shop. MGP Caliper Covers provided some Rich Evans One Off Caliper Covers. To see them go to mpgcalipercovers.com and get your own covers that you can install within 20 minutes max. That’s an easy way to personalize your car. It’s very inexpensive and it looks really cool.
A daylight view
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I need to thank my sponsors for everything they do: BF Goodrich always comes to play with a set of tires. G Force is what we used on this build. They have a new tire coming out as well so look for that it’s going to be really cool. I don’t want to spill the beans before I’m able to but BFG is really working hard and keeping you safe on the road. The guys that participated in this, Gil did a lot of work on the finishing part of it, the buffing and then we had to come in where we got some white compound on the plastic so I can’t forget to mention Solution Finish. All body shop guys out there have problems getting that white spit off when you’re buffing the cars. and it’s getting in the black and you’re using laquer thinner to clean it out and it turns it white. SolutionFinish.com— check it out. It will resolve your oxidation problem. Wipe it on, wipe it
off, you’re good to go. No mistakes and you don’t have to buy new parts to replace those that are only oxidized. You can go to my website, Huntingtonbeachbodywork.com, and/or richevansdesigns.com, or go to Ebay Motors, huge site for used and new parts and, of course, sale of cars. So check out my new parts, check out the new car, check out my new wheels. You don’t have to do a lot to change and personalize a car, and that’s proven by what we’ve got going on here with this project. The biggest thing is I want everyone to check out is PatriotOutreach.org and if there’s anything you can do to bring awareness
Another daylight view
to that organization, do it. For every set of wheels I did for this project that are sold, a portion is going to that charity. I like to tie myself to projects where we’re not just thinking of ourselves. That’s what makes projects like this fun and it makes getting up in the morning feel worthwhile. I’ve got some really cool stuff coming up for you guys next month. 2012 is going to be a good year and I’ve got a lot of good things going on. I’m fortunate enough to have projects that I can pick and choose from. When you can bring the cool into building projects it makes life that much better, especially when you love what you do. I eat, breathe, live, sleep, what I do and I was fortunate enough to find it early in life. Let’s remember to keep www.autobodynews.com it positive, keep consistent and always CHECK IT OUT! try to better ourselves at what we do. Peace out!
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 59
Hitting the Streets with California’s G & C Auto Body Meter Beaters seven locations in the Northern California Bay Area, and an eighth opening in June. It all began 20 years ago as a knee-jerk During the 10 days right before reaction to a bad experience with a Christmas, the G & C Meter Beaters parking meter maid, but today it has save drivers from getting parking penalbeen lauded as a successful social experiment while evolving into a highly ties by replenishing their meters before the City of Santa Rosa’s parking eneffective viral marketing endeavor. forcement officers are able to nail them They’re called the G & C Meter Beaters, a creation of Gene Crozat, the with a $33 parking ticket. It’s a program owner of G & C Auto Body, with that Crozat began when he was upset over what he felt was an unfair parking ticket issued two decades ago. “I was rushing back to my car after shopping and the meter maid was sitting there waiting for the meter to expire,” Crozat said. “She saw me coming, but she gave me the ticket anyway. I was really mad, so I went to the bank and got a bunch of quarters. I told my The Meter Beaters (from left) include Brendan Harris, MB Chief kids—get out there and Johnny Reguera, Monique Grayson, her son Jerome Grayson put money in all these and Dawn Marie Vance, as they hit the streets of Santa Rosa, meters before they exCalif. every holiday season for 10 days to pay for people’s parkpire. That’ll show ‘em.” ing and avoid parking tickets by Ed Attanasio
But brilliant ideas don’t always take traction overnight and the Meter Beaters were a prime example. To say that the powers-that-be in Santa Rosa weren’t enamored with Crozat’s idea was a major understatement. “They threatened my kids and told them
Steve P. from San Francisco happily displays his parking voucher, purchased on his behalf by the Meter Beaters, sponsored by G & C Auto Body in Santa Rosa
‘your daddy is going to jail,’” Crozat explained. “They didn’t like the fact that we were helping people from getting parking tickets and said we were interfering with their operation. The
media flocked to the story and pretty soon the city backed off.” Over the years, Crozat and his Meter Beaters have touched many lives positively, he said. “Once people get our flyers on their windshields telling them they’ve just saved them from a parking ticket, they’re so thrilled they send us money, which we donate to charity. I have some incredible letters here from people, including one gentleman who thought he was getting a ticket when he returned to his car after being at the hospital. His doctor had just informed him that he was dying, so when he saw the ticket it really hit him hard. But, then when he realized there was no ticket, it made his day. Here was a guy with tragic news, probably still in shock, but avoiding that parking ticket was a big deal for him.” When people return to their vehicles and see something on their windshield resembling a parking ticket they’re obviously upset, but instead they get this little holiday greeting from the Meter Beaters of G & C Auto Body:
High School Automotive Repair Program in Wayne, NJ, Wins $10,000 in Equipment and Cash With Video
The inter-high school automotive repair course for Wayne Hills and Wayne Valley High Schools in Wayne, NJ, won $10,000 in cash and supplies in the Why My High School Auto Shop Needs a Make-Over national contest at the end of January. Students in the course created, edited and entered a video for the contest. Students from both high schools are enrolled in the course, the only one of its kind in the district where students from one school travel to another to attend class. The video received 2,483 votes on Facebook, good for second place and only 118 votes more than the third-place winner. The first-place school received 3,320 votes. More than 100 videos from schools across the country were submitted. Eight were named finalists. The Universal Technical Institute Foundation (UTI), a non-profit organization dedicated to raising funds to support technical education in the transportation industry, sponsored the contest.
The schools’ program will receive $5,000 worth of products from SnapOn, a manufactured of automotive repair tools and equipment, vouches for tires from Bridgestone and Firestone, and cash as their second-place winnings.
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60 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com
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While you shopped The Meter Maid stopped To give you a Christmas Treat The price of this gift Could cause you a fit As well as a present so neat The G & C Elves Thought your rage could be shelved If the system could just be beat So we put in a dime To add to your time And keep that maid in her jeep. Your expired meter was paid for by: G & C Auto Body “Meter Beaters” Happy Holidays
To see the Meter Beaters in action for ourselves, we walked around downtown Santa Rosa with them one sunny, warm December afternoon. The crew consisted of eight high school students earning extra money during the holidays. By skillfully feeding electronic parking machines and distributing the vouchers on cars whose time was about to expire, The Meter Beaters take their jobs seriously. Just ask the leader of the pack, Johnny Reguera, who runs G & C’s towing division and oversees the Meter Beaters efforts every holiday season.
“We get better at this every year,” Reguera explained. “It’s an art form actually. With the old parking meters, it was all about feeding coins into them and now we have to pay for the vouchers and continually check the times. But, it works well and we know that we’re saving shoppers and residents from getting parking tickets. Some people know when we’re coming, so they don’t pay for their parking during that time. They
One of the proud Meter Beaters is Dawn Marie Vance, whose father works at one of the G & C Auto Body locations
know we’re going to beat the meter, so they rely on us. I wouldn’t recommend it, but it seems to work for some.” As we observed the Meter Beaters in action, we encountered several
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people right after avoiding a parking ticket, courtesy of G & C. A shopper named Odessa J. was upset and holding what she thought was a parking ticket in her hand when she approached us. When Reguera told her to look again, she screamed out in joy. Would you now take your car to G & C if you get in an accident, we asked her? “Definitely,” she exclaimed. “What a nice thing for them for do, especially during the holidays!” And that was pretty much the same thing we heard from every one we ran into. Toni Guanella is the Manager of Parking for the City of Santa Rosa. She explained that at one time the city wasn’t happy with Crozat’s Meter Beaters, but now they embrace them for obvious reasons. “We love them, because in the end it brings more money to the city. With a staff of just five, we can’t catch everyone. I know there may have been some issues with the Meter Beaters in the past, but now we appreciate it and never interfere. By filling these meters before they expire, we’re getting a boost in revenue for Santa Rosa. I know they spend a lot of time and money on this project,
but in the end the goodwill pays off, I’m sure. I tell my people to stay out of the Meter Beaters’ way and let them do their jobs. I know that people in town anticipate it every holiday season and we do too, honestly.”
Meter Beater Brendan Harris purchases parking vouchers to distribute them on car windshields throughout downtown Santa Rosa, Calif.
Do the G & C Meter Beaters make a difference in Santa Rosa every year, we asked Chief Johnny Reguera? “No doubt about it,” he said. “I can tell by the smiles and the warmth we get from people right after we’ve saved them a ticket. It’s not cheap doing this—we’re going to spend around $10,000 this year—but for us, it’s worth every quarter…or dime!”
Used Car Drought Ignites Dealer Bay Competition With new car and light car sales plunging from an average of nearly 17 million units per-year (1999 to 2007) to less than a 12 million new vehicle annual average between 2008 and 2014, there will be a rapid drop in used vehicles seven years and newer through 2017, with used-vehicles shortages in key model years continuing to 2020.
Major Dealer Profit Streams Virtually all Dealer profits come from two sources: used-vehicle sales along with parts and labor volume. For most Dealers, new car and light truck sales do not contribute to the bottom line. With the coming plunge in used vehicles available for Dealers to sell, Dealer profits from used-vehicle operations will crater. To compensate for this income loss, Dealers need to drive other sectors of their business. The only major opportunity for Dealers to expand profits (to compensate for the loss of income from lower used-vehicle sales) with be to promote parts and labor sales, primarily through their bays.
Renewed DIFM Competition From Dealer Bays This means Independent (non-Dealer) service outlets will face renewed competition from Dealers who are being squeezed by a lack of used vehicles
and dwindling warranty dollars (resulting from improved vehicle quality and reduced new vehicle sales).
Repair Specialists While many Repair Specialists are expanding their menu of repair jobs, their business still remains more concentrated among a core group of repair operations than general repair shops such as Service Stations and Garages. Ten-Year DIFM Growth Run Between 2000 and 2010, Repair Specialists expanded their DIFM product volume at an annual rate more than twice the pace of overall Service market growth. Their share of Service market product volume increased nearly one-quarter between 2000 and 2010 as their combined DIFM product volume soared over 50% at user-price.
Foreign Specialists Outlets focusing on the repair and maintenance of foreign nameplates operate a smaller number of outlets and service bays than Repair Specialists. Foreign Specialists achieved nearly 5.0% Service annual market product expansion during these 10 years, higher than the growth pace of Repair Specialists which account for a much larger share of total Service market product volume than Foreign Specialists.
www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 61
Shop Showcase
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.
Customers Expect Quality in All Respects from The Body Shop of Athens with Chasidy Rae Sisk
From the moment I came across the Body Shop of Athens’ online, I could tell there was something special about this shop. Their offer of insider tips, latest news updates and the detailed
The Body Shop of Athens Owners Carl and Carla Colquett
description of the repair process hinted at a shop dedicated to educating the customer and keeping current in the industry, but I had no idea how dedicated owners Carl and Carla Colquett also were to their Georgia
community and the environment. In November 2008, the Body Shop of Athens in Athens, GA, was the first in their market to convert to a waterborne paint system. They also recycle all paper, plastic, cardboard and metal materials, providing recycle containers for each employee, and they have three separate dumpsters to accommodate their efforts, including one that is made of recycled materials itself. The Body Shop of Athens volunteered to be the first shop inspected in their area for 6H compliance, and Carla sat on the EPA/EPD Stakeholders Federal 6H Rule Committee for the state of Georgia, representing the collision industry segment. Carl and Carla also support local green energy expos by hosting a booth to explain waterborne paint and recycling. The shop shows its community efforts in many ways. In addition to sponsoring and donating to many or-
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ganizations, such as Junior League of Athens, Athens Area Cancer Auxiliary and Business Network International, they also sponsor their local Boy Scouts and Food 2 Kids organizations.
The Body Shop of Athens occupies a 4,000 square-foot building on Atlanta Highway
They participate in Toys for Tots as well and are in collaboration with the State Police for free child seat safety checks at their shop. They offer free meeting space in their conference rooms to the community, and they
subsidize space for the International Office of Women to the World, where Carla also serves as a board member. Even though they are busy with the day-to-day business of running a successful body shop, Carl and Carla also take time out of their hectic schedules every Saturday morning to record a radio show on 1340 Newstalk AM and Bulldog 103.7 FM called “CarChat with Carl and Carla” where they discuss details consumers should know about their vehicles as well as current events in the community. Carl Colquett founded the Body Shop of Athens in 1995 after graduating Athens Technical College and spending fifteen years at the local GMC/Cadillac dealership. Carla became active in the business about four years ago, using her background in sales, marketing and upper management to improve the business. Since the shop was dated and located on a
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side street, when they decided they wanted to grow in the last quarter of 2010, they moved 1.5 miles down the road to their current location on a main highway between downtown Athens and the mall. According to Carla, “we relocated because of the customer experience and to meet and exceed the environment required by insurance providers.” Their dedication to customer service can be seen in each repair that leaves their shop. Expectations are high as evidenced by a sign in their estimator’s office reading “Always Expect Excellence.” They even have a climate-controlled drive-through estimating and delivery area. They have also opened a sizable Jittery Joe’s Coffee Shop in their lobby for customers. It’s more than a caffeine fix, it’s a socializing hub for the whole community. As a final “chocolates-on-thepillow” gesture, each repair is delivered with a care package consisting of a car-shaped cookie, a logo bag, logo bottle of water and a rose with a handwritten thank you card, along with the customer’s final paperwork and warranty information. The CSI scores, not
surprisingly, are near 100%. The Body Shop of Athens offers on-site rental vehicles as well as a smartphone application called “Help I Crashed My Car,” an car accident emergency assistant where drivers can store all of the information they need in case of an accident. The shop is also in the process of obtaining their Female Friendly Certification through askpatty.com, and they embrace modern social media by frequently updating their Facebook page. Since opening, the shop has nearly doubled their revenue by building relationships, experimenting with new ideas and expanding their view of what it means to be a quality auto body shop. Carl and Carla attended the NACE expo in Las Vegas in 2010, and they found the amount of educational and networking opportunities to be amazing. It was enjoyable for Carla because “we were able to spend time working on our business, not in our business.” In regards to the modern business practices, the shop has been embracing the current trends of meticulous disassembly and lean processes which
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lead to more efficient repairs. They note that the trend towards waterborne paint products is good all around, from the environmental benefits to the exceptional color matching. Additional sources of revenue include glasswork, paintless dent repair, storage and mechanical work. They are also currently working on an express bumper repair lane. When asked about challenges the shop has experienced lately, Carla noted that many consumers do not understand their rights of repair choice and that the shop provides a warranty of the workmanship, not the insurance company. Also, with the influx of new technology, many customers are requesting estimates by emailing or texting photographs of their damaged vehicles. Carla noted the tendency of consumers to delay repairs and use funds for other obligations due to the current economy as well as challenges concerning aftermarket parts. The Body Shop of Athens is ASE and I-CAR certified. Carl and Carla Colquett are both AMI graduates (Accredited Automotive Managers), and both sit on the Athens Tech Advisory Board for the Collision Division. Additionally, Carla is a state certified continuing education instructor for insurers, the vice president of Collision ASA NE Georgia and a member of WIN, Womens’ Industry Network. The Body Shop of Athens is a
14,000 square foot shop of which 4000 sq. ft. is dedicated to the lobby. There are nine employees working in the shop. The shop uses a Saico Downdraft Paint Booth, Chief Frame Machine, Rotary Lifts and Spot Welders. Their CCC One estimating and management system has been especially useful in enhancing productivity, and Carla also credits the waterborne paint system as a major benefit to their business. In the last quarter of 2011, the Body Shop of Athens averaged seventy vehicle repairs monthly. They utilize PPG Aquabase paints, and though they get a mix of older and newer model vehicles, they do not have any difficulty matching the paint on older vehicles. Carl and Carla strive to educate customers on all aspects of the refinish process. The Body Shop of Athens currently does not participate in any direct repair programs. Although they are in favor of obtaining such relationships, they are doing their research before securing any agreements for fear that mandates on parts and procedures can jeopardize the quality of their repairs. As always, Carl and Carla think about the customer first.
Continued from Page 57
changes relative to automotive electronics review and safety. The recent security breaches or hacking activities in some vehicles increases the need for automotive repairs to be done by professionals,” said Bob Redding, ASA’s Washington, D.C., representative. “The automotive industry’s effort with the National Automotive Service Task Force’s (NASTF) Secure Data Release Model is an example of independent repairers working with automobile manufacturers to ensure vehicle security. We are hopeful that NHTSA will include independent repairers in the strategic planning process for automotive electronics safety.”
NRC Report
needs assessments. • NHTSA should undertake a comprehensive review of the capabilities that the Office of Defects Investigation (ODI) will need to monitor and investigate safety deficiencies in electronics-intensive vehicles. A regular channel of communication should be established between NHTSA’s research program and ODI to ensure that recurrent vehicle safety problems are the subjects of research. • Event data recorders (EDRs) should be commonplace in new vehicles. • NHTSA should initiate a strategic planning effort that gives explicit consideration to the safety challenges resulting from vehicle electronics. “This report likely assures that NHTSA will proceed with policy
The Body Shop of Athens 2950 Atlanta Highway Athens, GA 30606 (706) 546-1158 thebodyshopofathens.com
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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 63