February 2013 Northeast Edition by Autobody News

Northeast Edition New York New Jersey Pennsylvania Delaware

YEARS

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Troy, NY, Rejects Repeated Request for Use Permit for Former Body Shop Location In Troy, NY, the city’s Zoning Board of Appeals has for the fourth time unanimously rejected a local tow op-

Exterior view of the Cox family business on 5th Avenue in Troy, N.Y. (Skip Dickstein/Times Union archive)

erator’s proposal to open an auto repair and towing business on Fifth Avenue at the location of a former body shop called Ward’s Auto Body. The Cox family had hoped to obtain approval for a nonconforming use variance in a B-2 commercial zone to open a towing business and garage for light automotive repair, such as tuneups and brake and muffler work. Jack Cox Jr. represented his father, Jack Cox Sr., at the hearing and said his father was informed when the property was purchased that it was grandfathered in as a B-2 Commercial See Rejected Request, Page 12

Automakers Report Strong U.S. Sales for 2012, Up 13% Overall, Japanese Brands Surge

See Strong Sales for 2012, Page 42

P.O. BOX 1516, CARLSBAD, CA 92018

Strong U.S. sales in December capped a remarkable year for the auto industry—especially Japanese brands—and 2013 should be even better. Sales of new cars and trucks totaled around 14.5 million after all carmakers announced final figures in early January. That is 13% better than 2011 and the best performance in five years. In 2012, Americans had plenty of incentive to buy new cars and trucks. The economy improved. Unemploy-

ment eased. Home sales and prices rose. And the average age of a car topped 11 years in the U.S., a record that spurred people to trade in. Banks made that easier by offering low interest rates and greater access to loans, even for those with lousy credit. Year-end deals on pickup trucks and the usual round of sparkling holiday ads helped December sales jump 9% to more than 1.3 million, auto pricing site TrueCar.com predicted. That would translate to an annual rate of more than 15.6 million, making December the strongest month of 2012.

Change Service Requested

Chrysler Sales Jumped 20% and Subaru Has Record December, but Volkswagen Led Sales with 30% Increase

VOL. 2 ISSUE 11 FEBRUARY 2013

Greg Coccaro Settles with Progressive Insurance

After eight years of battling each other in court, Progressive Insurance and Greg Coccaro, owner of North State Custom in Bedford Hills, NY, have reached a settlement ahead of a Jan. 28 trial date. Coccaro said he could not discuss the specifics of the settlement agreement, but he did express relief that he could finally put this behind him now. “After eight years, it’s pretty weird not having to think about this anymore,” said Coccaro. “I basically can now have my life back and spend a little more time working on my business. You would have to go through the stress that I did to understand it. Once it was over, I still couldn’t stop thinking about it. It took me two to three weeks to get out of ‘legal mode.’ It never left me night or day for those eight years. It was very difficult for everyone involved, but we did what we did, stood up and didn’t cave. “I think a lot of good came out of the whole thing for the industry in a lot of ways. Anyone who has followed this can understand why. I’m very glad it’s over, and so is my family. It was a

little difficult to live through some of the more stressful times, but I’m back and trying to get back to myself and how I was before.” Asked what advice he has to other shops considering legal action against insurers, Coccaro said it depends on the circumstances. “One has to think long and hard before taking on a billion-dollar corporation,” he said. “In my case, I felt I had no choice. The problem is that it has to be something that’s pretty egregious for you to do it. I felt if I didn’t do it, I had a chance of losing my business, so that’s why I did it. I don’t think it’s Greg Coccaro something that a single shop wants to take on. Anything similar to what I did would have to be done on a class-action where there are multiple shops rather than laying it on the shoulders of one individual shop. Don’t take anything on alone unless you absolutely have to.”

California Department of Insurance Approves New Aftermarket Part Regulations, Onus on Insurers California Insurance Commissioner Dave Jones announced that the Office of Administrative Law (OAL) approved amended regulations submitted by the California Department of Insurance (CDI) regarding the use of non-original equipment manufacturer (OEM) replacement crash parts, generally known as aftermarket parts. These regulations were sought by Commissioner Jones to further protect California consumers from physical and financial harm caused by defective or inferior aftermarket parts and to enhance insurer accountability in the claims process, said CDI. The new regulations, originally released by CDI in June 2012, are to go into effect on January 30. Insurers will be required to comply on and after March 30, 2013. “The amendments build on existing protections by requiring insurers

to settle automobile insurance claims using repair standards described by the Bureau of Automotive Repair, and not the insurer’s own standards of repair,” said Commissioner Jones. “This also places greater accountability on the insurer when they require use of an aftermarket replacement part so that damaged automobiles are repaired properly and safely.” After investigating complaints from consumers and automobile repair shops and evaluating the law, CDI drew the conclusion that defective or otherwise non-compliant aftermarket parts continued to infiltrate the repair process due to insurers’ failure to perform the necessary steps to ensure public safety. CDI had been made aware of defective aftermarket bumper reinforcements, hood latches, and other safety See Calif. Aftermarket, Page 6

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

2 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

Contents AASP Elects New Leaders . . . . . . . . . . . . . . 13 Apartments Planned for Former Auto

NATIONAL

3M Assists 19 Collision School Programs

with $160,000 in Production Donations . . 32

Painting Shop. . . . . . . . . . . . . . . . . . . . . . . 6

Alcoa Awards $40,000 Aluminum Training Grant

Hosts Election . . . . . . . . . . . . . . . . . . . . . . 6

Automaker, OEM and Recall News . . . . . . . . 26

Believe and Achieve Foundation in

Downingtown, PA, Aids Nutrition

in At-Risk Families . . . . . . . . . . . . . . . . . . . 3

Car Catches Fire at Douglassville Auto Body . . 8

to Collision Repair Education Foundation. . 32

Automakers Report Strong U.S. Sales for 2012,

Up 13% Overall, Japanese Brands Surge. . . 1

California Department of Insurance Approves

New Aftermarket Part Regulations . . . . . . . 1

Finishmaster Closes Two Acquisitions, CA

Collision Repair Education Foundation Offers

Firefighters Battled Big Blaze at NJ Shop . . . . . 4

Custom Painter JoAnn Bortles Named

and NJ . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Great Bear Receives 2012 Best of

Queens Award . . . . . . . . . . . . . . . . . . . . . . 4

Greg Coccaro Settles with Progressive Insurance . 1

LIABRA Meets on Labor Law . . . . . . . . . . . . . 4 Long Island Official Wants Sandy-Damaged

$300,000 in Scholarships and Tool Grants . 32

Automotive Spokesperson for Hypertherm . 37

DuPont Launches GM-Sponsored Parts

Rebate Program . . . . . . . . . . . . . . . . . . . . 10

Global Electric Vehicle Sales Could Reach

3.8 Million by 2020, Research Firm Says . 40

Cars Junked to Avoid Re-Selling . . . . . . . . . 4

I-CAR: Necessary Culture Changes for

Retiree in NJ. . . . . . . . . . . . . . . . . . . . . . . . 4

Judge to Rule Soon on Batmobile

Memorial Services Held for Auto Body

New Insurance Laws Take Effect in 2013 . . . 34

Blueprinting Process. . . . . . . . . . . . . . . . . 22

Newly Expanded $2.8 Million Body Shop

NABC Gives Update on ‘Operation Comfort’

NY Troopers Issue 33,000 Tickets

NABC Launches Newly Revised

O’Reilly Announces Asset Agreement

NHTSA Wants Loud Electric, Hybrid Cars

Pennsylvania Insurance Department Reports

Original Batmobile Sold for $4.6 Million

Opens in PA . . . . . . . . . . . . . . . . . . . . . . . . 4 through the Holidays . . . . . . . . . . . . . . . . . 4

with VIP Auto . . . . . . . . . . . . . . . . . . . . . . . 4

Record Year for Fines and Restitution:

$31 Million. . . . . . . . . . . . . . . . . . . . . . . . . 6

Police Investigate Homicide of PA Shop Ower . 8

Mission . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Corporate Website . . . . . . . . . . . . . . . . . . 28

for Safety . . . . . . . . . . . . . . . . . . . . . . . . . 38

at Auction . . . . . . . . . . . . . . . . . . . . . . . . 34

PartsTrader Releases Supplier

Feedback Results . . . . . . . . . . . . . . . . . . . 45

Sandy Victims in NY and NJ Blast Delays in

Private Equity Firm Buys CCC Information

Troy, NY, Rejects Repeated Request for Use

Service King Acquires AutoBody America . . . 23

Flood Insurance Aid—Too Little, Too Late . . 8

Permit for Former Body Shop Location . . . . 1

COLUMNISTS

Attanasio: Why Should Body Shops Have

a Website? . . . . . . . . . . . . . . . . . . . . . . . . 20

Franklin: Aligning with Agents . . . . . . . . . . . . 36

Insider: Changes at I-CAR a Good

Systems. . . . . . . . . . . . . . . . . . . . . . . . . . 46

Think Outside the Truck Box: Spray Lining,

A Coating Profit Engine. . . . . . . . . . . . . . . 14

Top Safety Picks for 2013. . . . . . . . . . . . . . . 40

Toyota Working on Safety Technology to Reduce Traffic Deaths, Create

Self-Driving Car . . . . . . . . . . . . . . . . . . . . 38

Two Jobbers Expand with Acquisitions . . . . . 38

Foundation to Build Upon . . . . . . . . . . . . . 16

U.S. Fines Toyota $17 Million for Not Quickly

Nation’ Clauses May be on the Horizon. . . 30

Vote: 2013 ASA Board Elections . . . . . . . . . . 13

Yoswick: Action on Insurer ‘Most-Favored

The donation check was presented by Fred Gunther, President & Founder of the Believe & Achieve Foundation, and was handed to Larry Welsch, Executive Director of the Chester County Food Bank. The presentation took place on Wednesday, January 16th at the Chester County Food Bank located in Downingtown, PA

The Believe and Achieve Foundation (www.believeandachievefoundation.or g) presented a donation check for $15,000 to the Chester County Food Bank for the Backpack Buddy Program. The Backpack Buddy program currently feeds 1,000 local elementary children in need each month by providing a backpack of food each weekend. Realizing the vital role that food and nutrition play in a child’s physical

Reporting Problems, Delaying Recall . . . . 40

and mental development, the Backpack Buddy program ensures that these children have access to food on weekends, throughout the entire school year. Typical food items the program provides are peanut butter, pouches of tuna and chicken, fruit cups, fruit juice boxes, healthy cereal, macaroni and cheese, pasta, dried fruit and shelf-stable milk. The backpacks are delivered

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, David Brown, John Yoswick, Rich Evans, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia Serving New York, New Jersey, Pennsylvania, Delaware

Indexof Advertisers

Automotive Recyclers Assoc. of NJ

Amato Agency. . . . . . . . . . . . . . . . 27 Audi Wholesale Parts Dealers. . . . 44 Auto Land Hyundai-Suzuki . . . . . . 16 BMW Wholesale Parts Dealers . . . 42 Car-Part Pro. . . . . . . . . . . . . . . . . . 23 CCC Information Services. . . . . . . . 9 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . 13 Classifieds . . . . . . . . . . . . . . . . . . . 46 CSS USA, Inc . . . . . . . . . . . . . . . . 12 DCH Family of BMW Stores . . . . . 39 DuPont. . . . . . . . . . . . . . . . . . . . . . . 5 Equalizer Industries. . . . . . . . . . . . . 8 Ford Wholesale Parts Dealers. . . . 30 Fred Beans Parts. . . . . . . . . . . . . . 48 Garmat. . . . . . . . . . . . . . . . . . . . . . 27 Glanzmann Subaru . . . . . . . . . . . . 22 Hackettstown Honda. . . . . . . . . . . 10 Haydell . . . . . . . . . . . . . . . . . . . . . 31 Healey Hyundai. . . . . . . . . . . . . . . 20 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers. 37 Jaguar Wholesale Parts Dealers. . 46 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 36 Koeppel VW-Mazda. . . . . . . . . . . . 43

See Believe & Achieve, Page 44

and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2013 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL

Believe and Achieve Foundation in Downingtown, PA, Aids Nutrition in At-Risk Families

Lexus Wholesale Parts Dealers. . . 46 Malco. . . . . . . . . . . . . . . . . . . . . . . 11 Maxon Hyundai . . . . . . . . . . . . . . . 41 Maxon Mazda . . . . . . . . . . . . . . . . 33 Mazda Wholesale Parts Dealers . . 28 MINI Wholesale Parts Dealers. . . . 38 MOPAR Wholesale Parts Dealers . 35 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 46 Nucar Mazda . . . . . . . . . . . . . . . . . 47 Plaza Auto Mall . . . . . . . . . . . . . . . 29 Porsche Wholesale Parts Dealers. 28 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Scion Wholesale Parts Dealers. . . 45 Security Dodge-Chrysler-Jeep . . . . 7 Spray-Lining and Coatings . . . 15, 21 Stadel Volvo . . . . . . . . . . . . . . . . . . 6 Subaru Wholesale Parts Dealers DE, South NJ, PA . . . . . . . . . 18-19 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . 40 Thompson Organization . . . . . . . . 17 Toyota Wholesale Parts Dealers . . 45 Tsunami Compressed Air Solutions . . 4 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 32 Volvo Wholesale Parts Dealers . . . 34

www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 3

O’Reilly Announces Asset Agreement with VIP Auto

Long Island Official Wants Sandy-Damaged Cars Junked to Avoid Re-Selling

Firefighters Battled Big Blaze at New Jersey Shop

Great Bear Receives 2012 Best of Queens Award

O’Reilly Automotive, Inc., a leading retailer in the automotive aftermarket industry, announced Dec. 17 that it had entered into a definitive agreement to purchase the auto parts related assets of VIP Parts, Tires & Service. The asset purchase was expected to be completed on or about December 31, 2012. VIP is a large, privately-held automotive parts, tires and service chain in New England, and has provided outstanding service to New Englanders for over 30 years. Based in Lewiston, ME, VIP currently operates 56 stores located throughout Maine, New Hampshire and Massachusetts, as well as a distribution center located in Maine. After the completion of the asset purchase agreement, VIP will continue to own and operate the tire and service components of the business and O’Reilly will own and operate the automotive parts sales and distribution operations of the business.

A seven-alarm fire burned through a large auto body shop in Elizabeth, NJ, Dec. 18. The building, at 7th and Court streets, houses Portuguese Auto Repair and Express Trailer Repair. The fire broke out inside Portuguese Auto Repair just before 4:30 a.m., said Elizabeth Fire Chief Thomas McNamara. The flames burned through numerous vehicles in the auto body shop. Several loud explosions inside the business were believed caused by gas or propane tanks. Crews initially had to force their way into the business to gain access. Companies from throughout Union County and Newark, as well as two New York City Fire Department ladder companies from Staten Island, were at the scene.

Memorial Services Held for Auto Body Retiree in NJ

Franklin Delano Barker, 79, of Elmer, NJ, died Friday, Jan. 4, 2013, at Underwood Memorial Hospital, in Woodbury, NJ. Franklin served in the U.S. Army from 1956-61. He was employed by Depford Auto Body in Depford, NJ, and Vicks Auto Body in Pine Hill, NJ. He was an avid bowhunter, fisherman and boater. He is survived by his sister, Mary Barker Smialek of Milton; a daughter, Phylis Reif of Pitman, NJ.; four grandchildren; and two great-grandchildren.

A Long Island, NY, town official is calling for vehicles damaged in Superstorm Sandy to be scrapped for salvage so they can’t be resold, the Claims Journal recently reported. Smithtown Councilman Thomas McCarthy told Newsday he fears the vehicles, many corroded by saltwater, may wind up on out-of-state used car lots. McCarthy, a former auto dealer, says many states don’t require vehicle titles to indicate a car may have had flood damage. He says destroying vehicles is the only way to ensure they’re not resold. He called on state lawmakers to draft legislation requiring storm-damaged cars to be scrapped for salvage. Assemblyman Michael Fitzpatrick says he’d consider drafting legislation if it appears current statutes are inadequate. According to insurance industry estimates, approximately 230,000 vehicles in the region were damaged or destroyed by Sandy.

Great Bear Auto Repair and Auto Body Shop has been selected for the 2012 Best of Queens Award in the Automobile Repair category by the Queens Award Program. Each year, the Queens Award Program identifies companies that are believed to have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community. These exceptional companies help make the Queens area a great place to live, work and play. Various sources of information were gathered and analyzed to choose the winners in each category. The 2012 Queens Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the Queens Award Program and data provided by third parties.

NY Troopers Issue 33,000 Tickets through the Holidays

New York State police say they issued more than 33,000 traffic tickets and arrested 538 people for driving while intoxicated statewide in a campaign that began Dec. 14 and continued through the holidays until Jan. 1, the Insurance Journal recently reported.

4 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

Newly Expanded $2.8 Million Body Shop Opens in PA The newly-expanded Bennett Collision Center in Allentown, PA, opened in early January. Located on the Bennett Toyota property, the shop is equipped to handle all makes and models of vehicles. The collision center expanded from 8,000 square feet to 14,500 square feet. Manager Robert Shade said the former shop could repair an average of 20-25 vehicles per week. The new collision center should be able to handle up to 50 vehicles per week, depending on the size and scope of the work. Shade said the new facility couldn’t have come at a better time. In the wake of Hurricane Sandy, the shop has remained extremely busy as motorists seek to have major and minor repairs from storm damage. The new collision center features a state-of-the-art, $150,000 frame-straightening system. There are also multiple paint chambers. New equipment includes tool boxes, parts racks, and vacuum and venting systems. Construction on the roughly $2.8 million collision center began in June. The work was done by North Star Construction of Allentown.

LIABRA Meets on Labor Law

New York labor law attorney Greg Lisi addressed state labor laws with the Long Island Autobody Repairmen’s Association at its meeting held on January 15. Lisi spoke on how shops can be in better compliEd Kitzenberger ance with New York labor laws and how shops can develop an employee handbook. The meeting also included a presentation on small business development by Bridge Capital Solutions regarding operating capital and grants that could be available to Sandy storm victims. LIABRA Executive Director Ed Kizenberger updated members on current events and legislative efforts. In addition, Mercedes Benz and BMW gave presentations on new vehicle technologies. The meeting was held at Competition BMW, 599 East Jericho Turnpike St. James in New York.

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Continued from Cover

Calif. Aftermarket

related parts being required by insurers that otherwise were not compliant with current repair standards. CDI had also been made aware of substantial costs borne by automobile repair shops and their customers associated with installing defective or poorly fitting parts required by insurers. Performing repairs that do not comply with current repair standards or placing an inferior aftermarket part in a vehicle may cause the vehicle’s value to depreciate. Defective parts may cause injury or even death if they malfunction. Prior to beginning the formal rulemaking, CDI listened to stakeholders representing consumers, insurers, automobile repair shops, distributors, and automobile manufacturers. CDI also held a pre-rulemaking workshop in November 2011, which included strong representation of many stakeholders involved in the process. Specifically, this rulemaking will strengthen and enhance current law by: • Requiring an insurer to pay for the costs associated with returning a defective part and the cost to remove and replace the defective part with a compliant non-OEM part or an OEM part; • Requiring the current insurer’s warranty be expressly stated in the estimate of repair generated by the insurer; • Requiring an insurer to cease use of a part known to be non-compliant, and to notify the part distributer within thirty (30) days; • Requiring an insurer to pay for an amount to repair the damaged vehicle to its pre-loss condition in a good and workmanlike manner, based upon the repair standards required by auto body repair shops licensed by the Bureau of Automotive Repair.

See www.autobodynews.com for more reaction from insurers and aftermarket parts suppliers.

To advertise call Advertising Sales at:

800-699-8251 e-mail:

advertising@autobodynews.com

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Pennsylvania Insurance Department Reports Record Year for Fines and Restitution: $31 Million

The Pennsylvania Insurance Department collected a record of nearly $18 million in fines and $13.4 million in restitution in 2012, the Claims Journal recently reported. The collections were from enforcement and market conduct actions, as well as 10 multi-state examinations where Pennsylvania was a lead state along with other state insurance departments. “Governor Tom Corbett is committed to ensuring Pennsylvania is a place where companies want to do business and bring jobs. That commitment comes with a promise to see that consumers are served on a fair and level playing field,” Insurance Commissioner Mike Consedine said. “When department licensees violate our laws, we will take action and hold them accountable.” Highlights from 2012 enforcement and market conduct actions include: • American International Group, Inc. (AIG) – A multi-state examination of AIG and its workers’ compensation affiliates resulted in the largest-ever single amount in fines and assessments in the department’s history. The penalty, $16.8 million, included $8.6

Apartments Planned for Former Auto Painting Shop

A former auto body painting shop in Morton, PA, will be re-designed into six one and two bedroom apartments at 205-217 Yale Avenue. The auto body painting building has been used for a variety of purposes over the past decades, including an auto dealership. Architect Robert Linn represented the owner, Barikoe Enterprises, at a recent city council meeting. He said the existing brick building will feature a storm water management rain garden in the rear of the building. Linn said no development is planned at this time for the additional lots that are part of the property. The planning commission has given its approval to a reverse subdivision and land development for the property. Borough solicitor Jay Wills said a resolution is needed to approve the reverse sub-division and land development application. Several years ago the zoning hearing board denied Barikoe’s application to allow construction of the apartments. The zoning board based its decision denying zoning relief on inadequate parking, set back requirements, and negative opinions.

6 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

million in fines, $3.6 million to the Workers’ Compensation Security Fund and $4.6 million in premium taxes. • Life Insurance Industry – Five of the multi-state examinations focused on life insurance companies and their claims business practices. As a result, these companies have agreed to adopt additional pro-consumer claims practices that include using the Social Security Administration’s Death Master File on a uniform basis when processing and paying life insurance claims. • Consumer Protection – The department’s Office of Market Regulation concluded the year with responding to more than 13,000 written consumer complaints and revoking or suspending the insurance licenses of nearly 70 individual licensees. To review the multi-state settlement agreements, and to view the comprehensive list of enforcement and market conduct actions taken by the department, go to www.insurance.pa.gov and choose the “consumer protection” tab.

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Automotive Recyclers Assoc. of NJ Hosts Election

The Automotive Recyclers Association of New Jersey held its annual election and dinner meeting on January 17 in East Windsor, NJ. The meeting included the association’s legal firm Tyler and Carmeli presenting several legal issues and updates. One recent act of legislation made significant changes to the Limited Liability Company Statute. Members operating under that form of business organization need to evaluate the effect on their company and whether changes should be made to their operating agreement. The new permit was adopted for storm water by DEP. New nominations were accepted and ballots were distributed at the meeting for the election. ARA-NJ is a group of auto recyclers committed to serving people in New Jersey and throughout the world with quality recycled auto parts. The association is committed to improving its communities and the environment. The members of ARA-NJ strive to offer the consumer the best quality auto parts, service and guarantees in the industry.

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Car Catches Fire at Douglassville Auto Body

A Chevy Cavalier involved in a crash caught fire around 11 p.m. Jan. 9 while parked in the lot of Douglassville Auto Body in Douglassville, PA. Sgt. John Dzurek said the crash happened around 4 p.m. on Fancy Hill Road. The car hit an electric fence pole. The driver was a juvenile.

Flames burst from a car in the parking lot of Douglassville Auto Body (Photo by Tom Kelly III)

Police and auto body workers believe the car caught fire because of an electrical short. Jarred Yanof, an employee at the Douglassville Auto Body shop, said the car was totalled before the fire started but that the burn damage was moderate. Firefighters from the West End and Amity fire companies responded to the scene of the fire and extinguished the flames in about 15 minutes.

Sandy Victims in NY and NJ Blast Delays in Flood Insurance Aid—Too Little, Too Late As Congress passed the first part of an aid package for the victims of Superstorm Sandy, many victims were left wondering what took so long. The $9.7 billion measure approved on Jan. 4 allows the National Flood Insurance Program to continue to pay claims. It was due to run out of money during the week of Jan. 7. Rep. Frank Pallone, Jr., a New Jersey Democrat, said the Jan. 4 action was “too little, too late,” and only delays rebuilding. Pallone noted that the flood insurance package doesn’t cover most of the money needed to rebuild. He said the votes should not be “piecemeal” and Congress should have acted on all parts on Jan. 4. “You’re taking a small piece of this, and you’re doing it late,” Pallone said to The Associated Press. “Why is it we have to continue to delay to deal with the major package?” “I think it’s horrible it took this long,” said Susan VanVeen, of Randolph, NJ, who was part of a volunteer group that helped clean up strangers’ homes. “This area is completely devastated. It’s still probably going to be weeks before people get this money. This should have happened a long time ago.” John Condit, of Seaside Heights, NJ, home to the lost boardwalk upon

Police Investigate Homicide of PA Shop Ower State police are investigating a homicide of Robert Charles Gaurrich, 45, whose body was found by an acquaintance at Bob’s Trucks & Auto Repair around 11 p.m. Jan. 11 at 1657 Evans City Road in Forward Township, north of Pittsburgh, PA. An autopsy determined Gaurrich died of a gunshot wound to the chest. The coroner’s office has ruled the death to be a homicide. The victim lived on Brownsdale Road in Evans City, troopers said. He was the owner of the auto body repair shop. State police spokesman Trooper Dan Kesten said the friend who stopped by the auto repair shop was worried about Gaurrich after he was unable to get in contact with him Friday. When he got to the shop, he found Gaurrich’s body and immediately called police, Kesten said. “People were expecting him to return home,” Kesten said of Gaurrich. “He was wonderful,” said Jes-

sica Hoover, Gaurrich’s girlfriend of two years. “He took the shirt off his back for anyone. He’d do anything for you.” Hoover became worried when he did not return to the couple’s Forward home on Friday night, Kesten said, and asked a friend to check on him. The friend found Gaurrich dead about 11:20 p.m. Friday, Kesten said, and called state police. It was not clear how long Gaurrich had been dead in the shop before his body was found, Kesten said. State police remained at the auto body shop for more than 14 hours, searching for evidence and to determine whether anything was stolen. It did not appear that anyone had forced their way into the business, Kesten said. Police were trying to determine a motive and identify any suspects on Saturday afternoon. Kesten added that he was not aware of previous problems at the shop.

Free Twice Monthly Newsletter at www.autobodynews.com 8 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

which much of the “Jersey Shore” reality series was filmed, also said the delay in approving aid after the storm was disgraceful. “It’s just criminal,” he said. “We do all this work for other countries, but when it comes to us, it takes like 60 days. You pay taxes, and your government is supposed to be there for you. That’s part of the deal.” Clean-up volunteer Mike Furrey said he was angry about the delay in approving aid. “They turned their backs on New Jersey and New York, but when Katrina happened, or things in other parts of the country, they act right away. I’m not going to vote for anyone who is in Congress right now, no matter what party, no matter if it’s the House or the Senate.” Barbara Kirchoff, of Keansburg, NJ, said that her parents’ home was devastated by the storm, and that politicians in Washington don’t seem to care. “My parents have nothing,” she said. “They need this money. A good portion of my town is a ghost town. They need help, now.” The Jan. 4 vote was the first of two anticipated votes, with a much larger appropriation of $51 billion expected to be considered Jan. 15.

New Jersey Gov. Chris Christie, a Republican who blasted the leaders of his own party in the House when they failed to vote on an aid bill in a timely manner, and New York Gov. Andrew Cuomo, a Democrat, issued a joint plea for Congress to pass both parts of the aid package. “While we are pleased with this progress, today was just a down payment and it is now time to go even further and pass the final and more complete, clean disaster aid bill,” the governors said in their statement on Jan. 4. “We are trusting Congress to act accordingly on January 15th and pass the final $51 billion instrumental for long-term rebuilding in order for New Jersey, New York and our people to recover after the severe devastation of Hurricane Sandy.” Christie showed he was willing to aim barbs at the highest reaches of his party, saying the overall $60 billion bill could “could not overcome the toxic internal politics of the House majority.” Rep. Chris Smith, a New Jersey Republican whose district was affected by the storm, said the Dec. 4 measure was “critically important” to help the state recover and rebuild.

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DuPont Launches GM-Sponsored Parts Rebate Program by Chasidy Rae Sisk

On Jan. 1, DuPont Performance Coatings (DPC) launched their newest program, a parts rebate program sponsored by General Motors. This program, available to DPC’s network of collision repair shops, rewards registered shops with a rebate whenever they choose 100% Genuine GM Parts for selected repairs through CollisionLink. DPC’s new GM Sponsored Parts Rebate program offers Independent Repair facilities the opportunity to receive a 5% cash rebate from GM when the program’s criteria is met. “There has been a tremendous response from the market since the program was formally announced at the beginning of this month. We are constantly striving to bring added value to our customers in the autoGary S. Scott, motive collision OEM Accounts repair industry and Manager, are confident this Collision Services program will be popular,” said Gary S. Scott, OEM Accounts Manager, Collision Services at DPC. DPC’s new rebate program is already popular with its current participants. Kim MacManus, owner of Glidden Auto Body in Bangor, ME, notes that registration was extremely easy since she was already registered with CollisionLink. Furthermore, the rebate “lowers our cost, allowing us to put that money back towards the cost of the part…it’s free money you’re getting back!” Scott Gudmunson, shop manager of Lehman Garage in MN, does not feel that there are any drawbacks to the program, but he finds getting money back to be a great benefit of participation. Don Murphy, owner of The Wreck Room in Villa Park, IL, points out “we’re buying the parts anyway; this is just a direct rebate so it’s like getting free money, plus it is all done automatically so there is no need for additional bookkeeping.” The 5% rebate, minus a 1.25% administrative fee which results in a 3.75% net rebate, will be electronically transferred to the shop’s designated account on a quarterly schedule. Unlike other programs, shops do not have to

apply for their automated rebate after registering for DPC’s rebate program. No additional forms or steps are required in order to obtain the rebate. In order to participate in this program, shops can sign up at www.performancegateway.com/partsrebate using their existing login for either the DuPont Performance Alliance or Per-

formance Claims websites. Following onscreen instructions, shops will complete their general and GM Parts Rebate Program profiles, and they will also complete an ACH form and W9 which will be faxed to 608-210-8040, authorizing their rebates to be electronically deposited in the indicated account. Shops may enroll at any time throughout 2013; however, shops may only participate in one GM sponsored rebate program annually, so shops already participating in another, similar program may only change their program administration during the month of January 2013. Beginning February 1, 2013, DPC’s rebate program is only available to shops who aren’t currently participating in a similar program through another vendor. Upon registration, it will be validated that shops are not actively engaged in another program, and shops will be notified if they are ineligible. Similarly, they will be informed when they become an active member of the GM Parts Rebate Program. After a shop has completed program registration, their estimate must meet GM requirements for GM replacement parts, and the shop will receive verification that their estimate meets the necessary criteria after transmitting the estimate through CollisionLink. Shops must transmit their parts order to their selected dealer through CollisionLink in order to receive the rebate. Estimates that qualify will be tracked, and shops will receive a monthly report. Qualified parts consist of parts ordered for vehicles with model years of two or more years, and rebates do not apply to part orders on current model year vehicles; parts must be new, genuine GM OE parts supplied by a licensed dealer in order to qualify for the rebate. A list of the parts eligible

10 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

for the program are defined by GM. Beyond the obvious monetary incentive, DPC’s rebate program offers additional benefits to participants. The automated rebate deposit allows shop to receive the rebate without increasing their workload. Also, the shop’s customers can receive a Certificate of Authenticity for their Genuine GM OEM replacement parts which aids shops’ credibility and increases the integrity of repairs. The program can also assist in reducing cycle time which will lead to higher customer satisfaction ratings. Since rebates are processed through Gates Business Solutions and paid directly from GM, there is no need for a shop to change their existing ordering dealership. Shops will begin receiving rebates automatically on a quarterly basis after registration. Shops are unable to add additional parts to a transaction order after the CollisionLink software has extracted the order for processing. If a transaction contains non-OE parts designated as exceptions by GM, the transaction can still be submitted and may qualify for a rebate if all other requirements are met. If a shop

feels that specific parts should be classified as an exception, they should identify the line item containing the part believed to be an exception and submit it through CollisionLink for review. The transaction will be held pending review of the possible exception; if approved, the transaction may proceed, but if it is rejected, the corresponding transaction will also be rejected. Approved exceptions are added to the database for automatic processing of future transactions containing the approved exceptions. For shops that also participate in GM-sponsored price-matching programs, the price-matched parts must be identified. These may or may not disqualify the transaction, depending on the manufacturer. Discounted parts do not qualify for rebates, but including parts that are eligible for price-matching will not disqualify a transaction if parts are purchased at the shop’s normal discount level. To register for DPC’s rebate program or to obtain more information about the program, please visit: www.performancegateway.com/partsrebate.

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 11

Continued from Cover

Rejected Request

Zone with a special-use permit. The zoning board on Jan. 8 shot down the request for the fourth time since 2006, claiming the property does not comply with the commercial zoning where it is located. This was the fifth time the Cox family had pursued an application for a special-use permit to operate an auto service and towing business out of the former Ward’s Auto Body building at 520 Fifth Ave. In one instance, the request had been withdrawn. According to Jack Cox Sr., 70, he purchased the property for his son in 2006 from a friend who owned Ward’s. Wards Auto Body and Used Cars had operated at the site since 1967. Cox said he bought the former Ward’s property because the city had forced him out of a junk yard business and he wasn’t ready to retire. Cox. Sr. has also owned and operated Jack’s Auto Sales in Troy since 1965. But Cox Sr. said a long-standing relationship of animosity with his city botched his plans. He feels he’s been harassed by the city over the years.

“The politicians in Troy don’t like me,” he said. “I fight for the little people because little people don’t have the money to fight people who have walked all over them and abused them. Any time I try to do something, they block me because they don’t like me.” He said shortly after buying the property, he and his son began the process of trying to get the special use permit for automotive repair. In the meantime, he used the property to store vehicles. The city responded by setting up concrete block barricades in front of the business, claiming the owner was storing junk vehicles without the appropriate paperwork. The city eventually settled a lawsuit brought by Cox, who claimed he was illegally barricaded and his constitutional rights were violated, for $20,000. Cox Sr. said the city barricades remained in place for nearly two years and in that time, the special use permit for towing expired. Cox contends that the city’s argument that the business was left vacant is false and that actually the business never got off the ground because the city refused to issue a special use permit for automo-

tive repair and also barricaded the entrance for so long. Seven years and $200,000 later, the Cox family is still working to open a business on the property that is about 1/4 acre in size. During that time, Cox Sr. said his son decided against wanting the business due to all the stress and the property is now under his name. His son, however, acted as his spokesman at the recent hearing. Cox Jr. is a former mayoral candidate and has plans of running for a spot on the City Council in District 2. He works in the roofing and painting trades. At the Jan. 8 zoning hearing, Jack Cox Jr. said plans are to run the autorelated business within the guidelines established under the city code. He said in the past, the city administration under former Mayor Harry Tutunjian had targeted family operations there and at its former Jack’s Junkyard at Douw Street. Operations at both sites were criticized by residents, according to current and former officials. Board Chairman Jay Vandenburgh said the previously grandfathered use of the property at 520 Fifth Ave. in Lansingburgh as an auto repair

business had lapsed. Vandenburgh cited the law that said the exemption was no longer valid if the property had not been put to that use for more than a year. As a non-conforming use, the use variance and a special use permit were required for the business to open. “That is the most viable use of the property today,” Cox Jr. said. “Right now, that piece of property supports one industry and one industry only.” Cox Sr. said the building is set up for automotive work with a 7-8 car working garage and three open bay doors. Several members of the zoning board took issue, saying Cox should have gotten the proper paperwork in order instead of purchasing the property and coming to the city after the fact to ask for it to rectify the problem. “At the time you purchased the property, it is incumbent on your attorney not to take word of mouth but to actually verify legally on a zoning map the property could be used as you wanted it,” said board member Jeffrey Nesich. “You don’t have that.” Cox Jr. repeated to the board it was a lesson learned but contended there could be no other use for the property other than an automotive

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business. He said the main goal is to do towing for the Police Department and use the lot across the street as an impounding yard. Councilman Kevin McGrath, D-District 1, where the auto repair shop would be located, said there have been concerns brought to him by district residents about the shop opening up on Fifth Avenue because of the cars found strewn across the property near 112th street.

“(The Zoning Board of Appeals) needs to look at what properties you have owned and how you have maintained them,” McGrath said. “But their rights should not be violated because their last name is Cox. And I know they have been.” With the new property, Cox Jr. said they would be putting in a parking lot, a fence and hedgerow.

“We have the most refined tow trucks in the industry,” Cox Jr. said, adding the tow trucks are more environmentally sound than the business nearby, The Snowman Ice Cream, the owner of which the Cox’s publicly have had disputes with. When it came time for public comment at the latest hearing, there was some support for the business. Six people spoke in favor of the Cox application. No one spoke against it. One in support was resident Peggy Kownack, who said she grew up in the area where Jack Cox had his junkyard, even admitting to have snuck in there and being disciplined by him. She didn’t understand why a variance was needed to operate an auto body shop there as Ward’s operated as one for several years. “I don’t even understand why they need a variance,” Kownack said. “It’s the same business going on the property.” After the meeting concluded, Cox Jr. said they would file an article 78 to appeal the decision of the board. He said he didn’t expect much from the board and felt he argued his father’s case fine without a lawyer. If the appeal fails in court, he said they

will be bringing their proposal back to the Zoning Board of Appeals. “If you don’t have high expectations, it’s kind of hard to be disappointed,” Cox Jr. said, and then joked the board has been very consistent in their decisions. “Been here four times and it is always 0-5.” Cox Jr. said to expect a new application to submitted in a year, the earliest it can happen. “Bottom line is, my father and I, we want to move forward,” Cox said. “We want to be an asset to the City of Troy.”

Vote: 2013 ASA Board Elections

Voting is open through the end of February to elect the 2013 Automotive Service Association (ASA) national board of directors. All regular members in good standing with ASA are eligible to vote for one position of general director. Casting a vote is done by calling a toll-free telephone number or visiting a secure voting site, which may be accessed from ASA’s website at www.ASAshop.org. The voting line is open 24 hours a day, seven days a week, until voting closes at 5 p.m. Central Time on Feb. 28, 2013.

AASP Elects New Leaders

The Alliance of Automotive Service Providers (AASP) has elected its Executive Committee for 2013-2014. The election was held at AASP’s board of directors meeting on October 31, 2012, in Las Vegas, NV. Pennsylvania shop owner, Jeff Walter, Zimmerman’s Auto Service, Mechanicsburg, PA, will serve as President. The following AASP board members will join Walter on the Executive Committee: A.C. Guarino, A.C. Automotive, WinstonSalem, NC; Bruce Tschida, Lake Marion Collision, Lakeville, MN; Ron Reiling, AASP-Missouri, St. Charles, MO; Mike Moehlenkamp, Gary’s Auto Service, Florissant, MO; Rick Starbard, Rick’s Auto Collision, Revere, MA. Walter recently completed two terms as president of AASP-PA. He stated, “It’s an honor to have been chosen as President of AASP National. My goal is to positively impact the ever-increasing challenges to both the collision and service repair industry on a national level.” The Alliance of Automotive Service Providers is a coalition of 12 state/regional associations representing over 9,000 automotive aftermarket businesses in 24 states.

www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 13

Think Outside the Truck Box: Spray Lining, A Coating Profit Engine by Ed Attanasio

By guiding body shops, distributors and dealers in the right direction, Spray-Lining and Coatings can advise companies such as collision repairers, automotive restoration companies and car detailers to get into the industrial coatings field and succeed at a high level. Billy Simmons, owner of Bottom Line Coatings in Houston and Texas City, TX, an automotive detailing business added Spray-Lining to its capabilities several years ago. “At first, we were coating truck beds, which we still do. But, now we’re doing big jobs, mostly marine applications for boat builders and marine structures such as piles and piers,” Simmons said. “It’s been a great source of revenue for us, because the profit margins are high and the product is well-supported. You can apply high-spec coatings to pretty much anything.” Spray-Lining’s Dealership Support Director Jeff Powell is a seasoned veteran of the industrial coatings game, so he knows how to make it or break it in this business, he explained. Powell works closely with each of his distributors nationwide to show them where there’s money to be made by tapping into all of the applications that require industrial coatings.

Before: This truck bed looks hopeless!

“We provide the training for body shops that want to look for different sources of revenue. Collision repairers, detailers and customizers have gravitated toward this business model, because it all starts in the automotive niche, doing truck beds primarily. But then if they want to go for larger jobs, such as doing things like larger com-

mercial trucks, warehouses, garage Lining and Coatings on a daily basis. “We don’t just push inventory and floors, waterscapes, koi ponds and pools—it’s like a blood transfusion. then watch you sink or swim, like some of the other companies out There are more and more applications out there that need these products, and there,” he said. “The true value of with our body shop’s technical ex- working with us is our expertise. It’s pertise, coupled with decades of really that simple. Anyone can get the Spray-Lining experience, we’re able to guide body shops to new business they could not get otherwise.” By marketing their dealers via the Internet and through direct mail, trade shows, custom signage, broadcast and print advertising in protected regions, Spray-Lining and The applications for Spray-Lining and Coatings are countless Coatings sets up its right equipment and learn how to automotive partners for success, Powapply the coatings themselves. But, ell said. can they land big ticket jobs and keep “We’ve done the same thing for the ball rolling, while avoiding comhundreds of companies all over North mon mistakes the competition might America, so it’s proven. It’s even proven in British Columbia, where the make?” Michael Knab, owner of Shammy government controls the collision Shine in Antigo, WI, sells car wash claims process. We know how to chemicals and installs car wash equipmake money in the linings business ment. He is a Spray-Lining and Coatand can turn a small investment into ings dealer and has developed the serious income with equity rather quickly using promos, training, equip- endeavor into a lucrative side business, he explained. ment and technical savvy. We’re in“Your imagination is the limit terested in selling products, of course, with how you can use these coatings, because there are so many applications out there. Truck beds are definitely a good portion of the work we get, but we also do a lot of agricultural applications, trailers, boats, swimming pools, waterscapes, and bumpers on commercial vehicles, for example. I’ve even used them on steel-toed boots for a customer, believe or not. It’s a great product, because it is easy to apply once you get used to it. You can match colors or shoot it clear and it’s extremely versatile and adaptable.” As a new Spray-Lining and Coatings distributor or by using a DIY kit, As a new Spray-Lining and Coatings distributor or by using a DIY kit, body shops can get body shops can get involved in an ininvolved in an industry that’s exploding dustry that is currently flourishing and but we focus more on promoting our growing, Powell said. dealers locally versus the national “We will loan you the equipment brands, so that they can make a solid for free for the first year and steer you markup and build their businesses.” in the right direction for more jobs and Support is the key, because withnon-automotive applications. We asout it, body shops can’t easily create sist you with the big job pricing, bidan ancillary business like the one ding processes and by working with Powell does for companies via Spray- our support department, you’ll have

14 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

answers available to you 24/7. Truck beds will bring you some additional revenue to your collision customers and you’ll also get phone calls and emails asking for bids on a wide range of different projects. By providing a better alternative to Rhino or Line-X at a lower cost, income streams can propagate rapidly. For that reason, we’re looking for body shops that want to look outside the truck bed and consider other new sources of income relevant to their experience.” By leveraging its understanding of the industry, Spray-Lining and Coatings can take on the competition and prevail against any of the “national” names in the business, Powell said. “We started in agriculture doing slip-proofing on large trailers and livestock barns and anti-stick coatings on chutes, bins, hoppers and dump trucks, well before the term “bed liner” was coined.” “We’re an alternative for companies such as Rhino, Line-X, Scorpion Coatings and DuPont Paint Protection films because our products provide a lower-cost solution to bed liners. By providing a wide range of variable textures and high-tensile clear, we’re able to offer an affordable and proven system that can supersede the usual solutions,” Powell said.

Money making applications include jobs such as the surfacing of playgrounds

Collision repairers are often careful about exploring anything not within a comfort zone, but Powell has found forward thinkers from Massachusetts to Arizona and everywhere in between, he said, that have chosen to work with Spray-Lining and Coatings. “Most shops can see the synergy between the collision business and what we’re doing,” Powell said. “Many of our body shop dealers are using this system and doing very well performing automotive-related jobs. But, others have embraced other uses for these products. 2013 may be the right time to look around for newest methods to profit, depending less on collision, insurance or low profit DRPs: Raising profit in the end.”

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Take on the Big Boys! www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 15

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

Changes at I-CAR a Good Foundation to Build Upon with The Insurance Insider

Training…What is it good for? Absolutely nothing. Say it again. Hopefully, you were able to sing along to the modified lyrics to the song “War,” a hit performed by Edwin Starr. If you aren’t familiar with it, it is a famous song protesting war. And that probably also means that you were born in a different generation where war and protests are things you’ve only read about. Speaking of protests, there was an informal one staged by collision repairers a few years ago. Leaders in the industry were dissatisfied with ICAR’s direction and the level of service I-CAR provided. The training I-CAR offered was deemed outdated and to some degree was becoming more irrelevant by the day. I-CAR listened and took action, making significant change to its training curriculum, structure and delivery methods. This led to additional, much needed changes in the requirements to attain I-CAR Gold and Platinum status. In my humble but wise opinion, I-CAR finally did something right. They listened to their customers. They asked the entire industry for input – and then delivered. There are pundits out there who question I-CAR’s motives. “They did it for the money,” stated one uninformed repairer. “They did it because insurance companies made them do it,” cited another uninvolved repairer. If improving the level of training and competency of technicians is an ulterior motive, then I-CAR guilty is as charged. While you may not like the new requirements or costs, the decisions were not made in a vacuum. Many of the brightest minds in the industry participated this cataclysmic shift within I-CAR. And yes, if you were wondering, the brightest minds in the industry aren’t solely insurance company representatives. Has I-CAR’s implementation of Pro Level training requirements been beneficial? From an insurer’s perspective, it was a significant win for the entire industry. The days of a painter taking a class on steering to attain I-CAR Platinum are now as outdated as the misconception that

anyone with a toolbox on wheels is a professional body technician. I-CAR still has a lot of other changes to make, but this is a solid foundation to build upon. I wish they would have made these changes sooner but it is indicative of the entire

industry. Repairers and insurers are notoriously slow to adopt and implement change. Why should a supplier to the industry like I-CAR be any different? I realize that there are some challenges with the new I-CAR Gold Class system and cost is at the top of the list. Small independent shops to large consolidators have publicly expressed their concerns with the cost of the training. But aside from the cost, there is no denying the need for ongoing education specific to your job and responsibilities, especially when you consider the alarming rate of change in the way vehicles are being manufactured. You will not be equipped to properly repair many vehicles without training. I realize that there is still a lot to be desired relative to I-CAR training, but at the present time there isn’t a better alternative. I believe that the cost to train technicians would be a moot point if there was a financial incentive. Most shops don’t believe that there is a return on investment. In some ways, I agree with the premise that there is no direct return, even though there are least a few insurance companies that require Gold Class status. Insurance companies should pay a higher labor rate to those shops that have made significant investments in training as well as tooling and equipment. “If you truly believed that, you would change it,” you might be thinking. My answer is that it isn’t that simple. The complexities of labor rates and the impact it can have on the pricing of our insurance products could make a carrier non-competitive and

16 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

lose market share almost overnight. That is one example of the differences between repairers and insurers. Repairers can make a decision for their business, take accountability and understand the short- and long-term impact. Insurers do not have that luxury or the latitude to take immediate action. A decision made in one department could adversely impact several others, unknowingly to those taking the action. Policyholder retention and growth are the primary drivers of most decisions made by carriers in today’s extremely competitive marketplace. That is why there is such a focus on cost and customer service. For now, a shop’s return on investment in training can be found in a safe and proper repair, professional technicians and reduced cycle time. Although I would never say that I-CAR Platinum or Gold Class designations guarantee a proper repair, I believe that they increase the probability

of one. Ongoing training through the Pro Levels 2 and 3 ensure that a technician’s knowledge improves and that he or she grows professionally. I-CAR still has a lot of work to do but the longest journey starts with the first step. Hopefully, 2013 will bring about the next level of change that is needed, including more testing. This has always been a sore subject amongst those who have ever paid for or taken an I-CAR class. The reality is that unless more insurers require I-CAR Gold Class or Gold Class shops are compensated at a higher rate, the altered lyrics in Starr’s song will continue to resonate with many in the industry.

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“The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects solely the opinion of The Insider as it offers an unvarnished look at various issues impacting the collision industry.

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 17

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 19

Social Media for Shops

Why Should Body Shops Have a Website? with Ed Attanasio

I was at a collision-related event recently when a body shop owner asked me, “Why should I have a website? The only reason I have one now is because my main competitor next door has one,” he explained. My first response was “That’s a very good reason right there.” I am surprised when I find so many successful body shops that don’t have websites. So, I decided to poll some industry and Internet experts to assemble a list of convincing reasons. Ten years ago, having a website was something to consider and weigh the advantages, but in today’s world, it’s a no-brainer for many reasons. I recently received a direct mail piece by a company that has a new DIY site that can help body shops to create websites easily and affordably. It’s called Collision Websites and the owner is David Moore, a collision veteran who has helped countless shops to develop award-winning websites over the years. Now, he’s made the process of creating a site so easy that even shops that are dragging their feet can step up and have a website within hours, rather than weeks or even months. His letter started out with some tough love questions, but very timely ones for body shops that don’t currently have websites and/or don’t see any value in them. His opening line immediately got my attention. • Are you on the cutting-edge or about to get cut? • As this industry gets younger and smarter, are you falling behind? Working hard used to be the formula for success, but now technology has changed the game. Did you know that nearly 9 out of 10 people requiring collision work will search the Internet to find someone to repair their vehicle? Statistics show that 95% of all people in the United States expect a reputable business to have a website. Unless your customer base is made up of that non-tech 5%, you’re not impressing or even reaching most of your market. If you currently don’t have a website, you’re losing revenue while reading this. And even a lousy website could cost you even more. So, for those who are still doubters,

here are my main reasons for having a website:

1) Affordable Websites are less expensive and can produce quality leads when compared to other forms of media. The Internet is a proven leader when it comes to cost per response. If you’re using a content management system such as Word Press, you can keep your website fresh and up-to-date by adding new content all the time. Because you’re big on the Internet doesn’t mean you should abandon other forms of advertising altogether. Print, radio, TV and direct mail advertising are still very strong when integrated into a media mix, and can be used to entice people to access your site and find out more about your shop. Think of a big hand with each finger representing one form of media, working in conjunction to reach customers and get cars in your shop.

2) Accessible The Internet enables body shops to break through geographical barriers and become accessible to anyone with an Internet connection. With sites like Google Maps and MapQuest, the days of getting lost while attempting to find your shop is greatly diminished, even for the directionally challenged. We always suggest that you should have a map showing your shop displayed prominently on your home page containing directions and landmarks. Since body shops are brick and mortar businesses obviously, finding you is essential and making it as easy to your potential advertisers is key. The evolution of websites has made the yellow pages and other phone directories fairly obsolete. In the old days, shops that had moved or added new locations were forced to wait until the phone books came out to tell the world where they are. Because a website is flexible, you can change the content as often as you like, which is ideal for shops that are moving or adding locations.

3) Convenient It is far more convenient for a person to research a product on the Internet than it is to get in a car, drive somewhere and look for or ask someone for information on a product. They don’t

20 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

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

have to call around or go to a library— it’s all there on their desk top, lap top or smart phone. The potential customer can visit your website whenever they want in their own privacy and comfort, without the stress and disruptions that exist in the real world. Your website is a self-service entity that can bring you customers while you sleep.

4) Valuable Your website can deliver real value by offering a ton of valuable information, such as useful tips, sage advice and general interest content that can entertain and inform your customers. This will also help them to remember your name when they get in an accident. You can use features on your website such as visitor polls, online surveys and other things and then access your website statistics to find out what your customers like and don’t like. Website statistics show you how much traffic your website receives, how the visitor

got to your website and where, geographically, the visitor is from.

5) Credible A website offers you a forum to tell prospective new customers why you’re a solid company and thereby warrant their respect and adulation. One of the best things about the Internet is that a little mom and pop shop can get as much exposure as a big chain with multiple locations. Solid shops doing exemplary work will always succeed—but by telling the world how good you are as often as you can, it surely does not hurt. If you’re not selling your brand 24/7, who will? By having a website that is full of content, simple to navigate through and easy to find, you’re instantly in the game and will be recognized as a player almost overnight. By having a presence online, you can take full advantage of all the advantages the Internet offers—and a good website is definitely the very first step.

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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.

I-CAR Tech

I-CAR: Necessary Culture Changes for Blueprinting Process Blueprinting is a term often heard in the collision repair industry. Blueprinting means different things to different people, but blueprinting really is establish-

Figure 1 The estimator is working with a disassembly technician at the vehicle, as it is being disassembled

ing a standard operating procedure (SOP) that allows for the discovery of all the damages before repairs begin. As part of the blueprinting process, all the parts should be identified right down to the blend panels and the clips that are needed. The correct repair information should be found along with any color matching that needs to be done. Following these steps and others, before re-

pairs begin, will eliminate the problems that arise from finding additional damage during the repair process, which can interrupt and delay the repairs on that vehicle. Worse yet, is when the vehicle is repaired incorrectly because vehicle maker repair procedures were not followed. One of the biggest challenges to implementing the blueprinting process may be the staff’s perception of what will be involved. To be successful, those perceptions must be changed.

Changing Staff Perceptions The blueprinting process requires a culture change throughout the repair facility. It also requires input from the entire team, not just management, to be successful. To change the culture, it may take some time for everyone to get onboard with the changes. They may feel that the new system will affect their efficiency and the work they produce. That is one of the reasons to

implement small changes at first, so that the people who are resistant to making the changes can see positive results immediately.

Figure 2 An estimator is taking preliminary measurements using the Matrix Wand measuring system

It is also important to change the staff’s thought process from being an individual to a team concept (see Figure 1). This is where everyone involved in the repair process is responsible for all the repairs of all the vehicles, not just the person who did a particular task. This does not mean that everyone does the same tasks or needs to work on all the vehicles that come through

the repair facility. What this does mean is that the words “that’s not my job” should be eliminated from everyone’s vocabulary. By changing to a team approach, when one person is struggling with something, there is always someone to offer assistance or guidance. The people involved in the blueprinting process also need to understand that one of the main concepts of blueprinting is rearranging the order of the steps necessary to repair a vehicle. For example, the “extra work” at the beginning of the repair process may be incorrectly perceived as additional work. However, in reality it is work that was traditionally done throughout the repair. By doing this work in the beginning, all of the repairs can be completed in a complete, efficient, and timely manner. An example of this would be disassembling a blend panel before the vehicle enters the repair technician’s stall, and finding that a door molding is a one-time use molding. By identifying

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this one-time use molding in the beginning of repairs, it allows the part to be ordered and prevent the vehicle from being delayed due to a missing part. Some staff members may not be willing to make the necessary changes to the new blueprinting process. In this case, the person in charge may have to make some hard decisions. If this person can be convinced to try the changes, they’ll most likely get onboard with the changes. If the person refuses to change what they’ve always done, the blueprinting process will be difficult, if not impossible to implement. Unfortunately, it may end in the manager and technician deciding to part ways; this is never an easy decision. A disassembly blueprint estimator is an example of one of the many options for implementing the blueprinting process. With this option, the person that does the disassembly is also the one submitting the completed damage report. Another option is a dedicated technician and estimator working together in a dedicated stall. This system allows for the two people to develop an SOP so that they can be consistent in the blueprinting process. How blueprinting is implemented will be influenced by the size and con-

figuration of the repair facility (see Figure 2). Whatever system will work in the repair facility is what should be implemented. While all vehicles and collisions are different, the blueprinting process for each repair can remain consistent. It is important that once the process starts, the same blueprinting process must be followed on each vehicle. However, this does not mean that the blueprinting process cannot evolve and change. Once the blueprinting process is in place, there will be steps in the process that may require modification and improvement. For more information on implementing the blueprinting process, take the I-CAR Live Demo “Blueprinting Process and Damage Discovery (BLU01)” course. This interactive course defines the blueprinting process and helps improve repair quality while streamlining efficiencies through a standardized approach to collision repair planning. During this course, the instructor uses an actual vehicle to demonstrate technique to help students uncover hidden damage that impacts the repair process. To find a class near you and to register, visit www.i-car.com and use the Live Class Search Feature.

Service King Acquires AutoBody America AutoBody America, a 20-shop collision repair operation with locations in Tennessee, Mississippi and Arkansas, was acquired by Service King Collision Repair Centers on Dec. 30. The transactions include markets in Nashville, Memphis, Little Rock, Knoxville, Chattanooga, Clarksville, Jackson, TN, Jackson, MS, and Fayettville. Service King said it will retain AutoBody America’s 250 employees throughout the 20 locations, which will have the capacity to repair more than 40,000 vehicles annually. “We are very excited to partner with a great company in AutoBody America,” said Mike Abbott, market vice president for Service King. “Our two companies have similar histories, which makes this merger a natural fit. AutoBody America and their great team will provide a strong platform for Service King in the southeastern United States,” Abbott added. Jeff McFadden, president of Service King, said, “It’s comforting to partner with an organization that delivers the level of customer service that Service King customers have grown accustomed, and we are very excited to welcome the professionals

at AutoBody America to the Service King family.” Pat James, president of AutoBody America, and Will Johnston, vice president of AutoBody America, will continue serving in leadership roles with the company. “I am so thrilled at this opportunity to join forces with such a solid company that will help my team reach their potential for professional growth,” James said. Texas-based Service King now operates a total of 83 repair locations with 16 in Tennessee, 55 in Texas, one in Mississippi, three in Arkansas and eight in Arizona. “Pat, Will and their team have done a wonderful job of serving their customers and insurance partners. We are so excited to build on that level of customer service and become a part of each community,” said Chris Abraham, CEO of Service King. “Our new team members at AutoBody America will enhance our already talented and tenured leadership team and we are excited about this partnership continuing to spur future growth for the company,” Abraham said. Service King currently employs more than 1,800 individuals in Texas and Arizona.

www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 23

24 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 25

AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News

GM Recalls Nearly 119,000 Pickups for Missing Latches

General Motors Co. is recalling 145,000 pickups that may not have a secondary latch to prevent the hood from unexpectedly opening. The recall covers the 2010-2012 Chevrolet Colorado and GMC Canyon trucks that may not have a back-up hood latch, including 118,800 in the United States, along with 15,264 in Canada, 7,492 in Mexico and 4,069 around the world. If the primary latch isn’t engaged while the vehicle is in motion, the hood could strike the windshield potentially causing a crash, GM said in a report filed with the National Highway Traffic Safety Administration. An analysis of one hood showed the latch assembly had no evidence of welds for the secondary latch, suggesting the latch assembly missed the weld station at the latch plate supplier. GM said the production process did not have any error-proofing to prevent material from bypassing the end of line weld station. Dealers are to inspect for the presence of the secondary hood latch. If the latch is missing, dealers will replace the hood.

Audi Plans 2016 Start in Mexico

Audi is firming up plans for its plant in San Jose Chiapa, Mexico. Mattias Rust, project manager for staff in Mexico, said construction will begin in 2014 and production will start in May 2016 with about 3,800 employees. Audi plans annual output of about 150,000 units of its Q5 crossover. Training of Mexican employees is scheduled to start this year at Audi’s Ingolstadt and Neckarsulm plants in Germany. Some Audi employees from Germany will help with the launch in Mexico. The automaker is recruiting German workers for deployments ranging between four and 15 months, as well as for stays of up to five years.

NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE

BMW Sales Surge in China

BMW Group said sales of its cars and SUVs in China rose 73% in December to 30,470 vehicles. Sales of BMW brand vehicles increased 72% to 28,184, while deliveries of Mini brand vehicles surged 96% to 2,286. In November, BMW Group reported a sales leap of 62.3% to 31,090, which the automaker said was due to strong demand for its X1 small SUV and series 3 long wheelbase models. Full-year group sales in China rose 40% to 326,444 vehicles, BMW said.

Dealer Lawsuit Against Tesla Dismissed by Judge

Dealers trying to block Tesla Motors Inc.’s retail stores in Massachusetts lost another round when a judge dismissed their lawsuit against the electric vehicle maker. In a recent ruling, Norfolk County Superior Court Judge Kenneth Fishman said the Massachusetts State Automobile Dealers Association and other plaintiffs lacked standing to sue. It was the same reasoning the judge used in a November ruling denying a preliminary injunction against Tesla’s suburban Boston store. “We disagree with his decision,” Robert O’Koniewski, the association’s executive vice president, said. He contends the association has standing under changes made to the state’s franchise law in 2002. “If you read the statute, it’s pretty clear: a factory cannot own a store, and a dealer can sue for injunctive relief if they feel the public is being harmed.” Tesla, in a statement, said the ruling validated its retail strategy in Massachusetts and other states. “We are confident that other states will also come to this same conclusion and look forward to following through on our commitment to introduce consumers to electric vehicle technology in an open, friendly, no-pressure environment,” Elon Musk, Tesla co-founder and CEO, said. Tesla’s first Massachusetts showroom opened in September.

26 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

GM Could Face $918 Million Hit from Bankruptcy Lawuit

A U.S. bankruptcy judge could soon rule on whether the 2009 government-led restructuring of General Motors improperly favored hedge funds, and an adverse ruling could cost the automaker nearly $1 billion. Judge Robert Gerber must decide whether a ‘lock-up agreement’ in the restructuring sent $367 million to a group of hedge fund noteholders at the expense of other creditors. A trust representing unsecured creditors has sued to undo the lockup agreement, arguing that it was a last-minute deal secretly folded into GM’s bankruptcy to ensure the hedge funds’ support. After the automaker, or ‘Old GM,’ filed for bankruptcy in 2009, its best assets were sold to the new General Motors Co. The remainder of the company once known as General Motors Corp. then was liquidated for the benefit of creditors. While the hedge funds, which hold notes with about $1 billion in face value, received the $367 million under the lock-up agreement, unsecured creditors received just pennies on the dollar. The hedge funds and other investors in the notes also received a claim against ‘Old GM’ for $2.67 billion. In its lawsuit, which was filed in U.S. Bankruptcy Court in Manhattan, the creditors’ trust alleged that the lock-up agreement was unfair to ‘Old GM’ creditors. The trust said the deal took place after the bankruptcy filing.

GM Recalls Trucks, SUVs

General Motors is recalling almost 54,700 of its 2013 trucks and sport utility vehicles because of a roll-away danger, according to a report the automaker filed with the National Highway Traffic Safety Administration. The action covers the Cadillac Escalade, Escalade ESV and Escalade EXT; Chevrolet Avalanche, Express, Silverado (1500 and heavy duty), Suburban and Tahoe; GMC Savana, Sierra (1500 and heavy duty) and the Yukon and Yukon XL. All are 2013 models.

www.autobodynews.com

February 2013

Subaru Recalls 634,000 Cars

Subaru is recalling as many as 634,000 vehicles in the United States for potential lighting problems that could lead to smoke or fire, according to U.S. safety regulators. The recall potentially affects some Forester vehicles 2009-2012, all Legacy and Outback vehicles 2010-2012, and some Tribeca vehicles 2006-2012. The 633,842 vehicles potentially affected by the recall may be equipped with accessory puddle lights that when lit brighten the areas under the doors, according to NHTSA documents. A short circuit can develop when the light or connector are exposed to an electrolytic moisture source such as road spray that has road salt in it, the NHTSA said. That can cause heat that could melt the plastic, resulting in smoke or fire.

Nissan Reprices Leaf

Nissan announced that U.S. pricing for the new 2013 Nissan LEAF will start at an MSRP of $28,800 for the newly-added S grade, making it the lowest priced five-passenger electric vehicle sold in the United States. Depending on location, some consumers may purchase the vehicle for as low as $18,800 with qualifying federal and state tax credits, putting the LEAF on par with gas-powered vehicles of its size. Nissan’s objective for the LEAF has always been to produce an affordable zero-emission vehicle for the mass market, and the 2013 LEAF is a prime example of that commitment with increased value at every trim level, making it more accessible for more people. “With nearly 50,000 LEAFs on the road globally, we are the leaders in zero emissions vehicles and our class-leading product just got better,” said Billy Hayes, Global vice president of LEAF sales for Nissan. ‘From the very outset, Nissan has continuously advanced and refined the affordable zero emissions vehicle ownership experience. Now customers won’t have to pay a premium for owning a green car that’s really fun to drive, and that’s exciting.”

Toyota Top in U.S. Recalls

Toyota Motor Corp. recalled more vehicles—5.3 million—than any other automaker in the U.S. in 2012. It was the third time in the last four years that Toyota led in U.S. recalls. A Detroit News review of recall data found that 16.2 million cars, trucks, motorcycles and RVs were recalled in 2012, a 4.5% increase over the 15.5 million vehicles recalled in 2011. Combined, the seven biggestselling automakers in the U.S. market recalled about 13.5 million vehicles last year, up from 12.5 million in 2011. The number of recall campaigns fell slightly in 2012 to 593, from 587 campaigns in 2011. Several big recall trends emerged: Fire issues, air bag problems, rust and rollaway vehicles accounted for most of the major recalls in 2012. And U.S. regulators fined three major automakers—Toyota, BMW AG and Volvo Cars—for failing to issue timely recalls. Toyota had the most difficult year on the safety front. Honda Motor Co., which led 2011 with 3.9 million recalls, called back 3.4 million vehicles in 2012, second among automakers. Third among automakers was General Motors Co.

Hyundai Recalls Velosters

Hyundai is recalling Veloster cars for sunroof and parking brake flaws for certain Veloster 2012 coupes. The first recall includes 13,500 cars built Nov. 1, 2011–April 17, 2012 and equipped with panoramic sunroofs. The sunroof assemblies in these cars may break while the car is being driven. In a separate action the car maker is recalling 4,490 Velosters built from July 2, 2011–Feb. 27, 2012 and equipped with manual transmissions. The cars’ parking brake mechanisms might bind after exposure to moisture and road grime.

GM Volt Sales Tripled in 2012

General Motors Co. said its 2012 sales of the plug-in hybrid Chevrolet Volt tripled from 2011. U.S. sales of the Volt for 2012 topped 23,000 for the year, said Michelle Malcho, a spokeswoman for GM. GM had sold 20,828 extended-range electric Volt cars through November. In 2011, it sold 7,671 Volt cars, below its forecast of 10,000 for its first full year of sales. Volt sales got a boost when California granted solo drivers access to carpool lanes. GM spokesman Jim Cain says 1-in-3 Volts are now sold in the Golden State.

NHTSA Clears Jeep Grand Cherokee, Ford Freestar

The National Highway Traffic Safety Administration is ending its investigations into the 2012 Jeep Grand Cherokee and 2004-05 Ford Freestar and Mercury Monterey without seeking recalls, saying the issues don’t pose a serious safety concern. The U.S. auto safety agency recently closed both investigations and posted a report disclosing the decisions. In July, NHTSA opened an investigation into 107,000 Chrysler SUVs of power steering hose blowoffs that could result in fires. Chrysler said the condition would typically occur early, with less than 8,000 miles. Chrysler modified the cooler assembly process to address factors that may contribute to hose blow-offs. Separately, NHTSA said it was closing an investigation into 205,000 2004-05 Ford Freestar and Mercury Monterey minivans over complaints of faulty jacks to change tires. NHTSA said about half the consumers in complaints were using the jack for something other than tire changing. About half had also not properly chocked a wheel or set the parking brake.

Toyota to Fix Faulty Trunk Release Lever in Lexus

Toyota is expected to alert about 700,000 vehicle owners of 20072013 Lexus ES, 2006-2012 Lexus IS, and 2013 Lexus GS models due to a problem with the emergency trunk release found by Consumer Reports. Consumer Reports found that the emergency interior trunk escape lever on the 2013 Lexus ES and GS can easily snap off during use, potentially leaving a trapped occupant without any way to escape. When the lever is pulled straight or toward the passenger side of the vehicle, it worked fine, Consumer Reports said. However, when pulled toward the driver’s side, the plastic surround acts as a fulcrum and snaps the emergency release handle off easily, preventing the trunk from opening. Consumer Reports immediately notified both Toyota and the National Highway Traffic Safety Administration (NHTSA) about its findings. Toyota was able to reproduce the problem, and it identified another model, the IS, that also was prone to the release breaking. Toyota is replacing the ABS plastic release with a more robust polypropylene unit, strengthened with supporting ridges.

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NABC Launches Newly Revised Corporate Website The National Auto Body Council (NABC) recently launched an updated version of its corporate website—www.autobodycouncil.org— that includes a timely and comprehensive approach to presenting information on the organization and the programs and services it provides. In addition, the website contains details—some of it being published for the first time—regarding the NABC’s most recent events and initiatives, including Distracted Driving, InLanguage and Operation Comfort. New material is also being made available on long-standing, established projects like Recycled Rides and First Responders Emergency Extraction (FREE). An expanded history on the National Auto Body Council and why it came into being is another noteworthy addition. The website’s layout and organization has been re-designed to be more inviting to visitors, making it easier to find and access the desired information. Online forms make it vastly simpler to submit registration information to the National Auto Body Council, including that for NABC membership and sign-ups and sponsorships for the annual golf fundraiser. Descriptive overviews of the recently introduced

Award of Distinction and Bodyshop Image Award are also available, complete with printable PDF forms for those wishing to nominate individuals for the awards. “Though the website has always contained useful information for our members and those interested in the work of the National Auto Body Council, we thought we could do a better job of delivering it,” said Liz Stein, NABC marketing co-chair. “And since we were going to streamline the website, what better time to bring the information it contains up-to-date to reflect the variety of new programs and services we have begun to deliver. We think visitors will be pleasantly surprised by the changes they’ll see when they land on our site.” Please note that the transition to the redesigned website is in process and that some sections may still under construction. Completion is slated for the upcoming weeks. The National Auto Body Council extends an open invitation to its members and the industry to let us know what they think. Please contact Liz Stein at (888667-7433) or e-mail chuck@autobodycouncil.org if you would like to provide feedback.

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NABC Gives Update on ‘Operation Comfort’ Mission

The National Auto Body Council (NABC) recently announced an update to its formal plan to raise $1.5 million to provide I-CAR curriculum and training to wounded veterans in a partnership with Operation Comfort. Along with NABC website updates, a weekly update of the committees progress, activities and plans will be communicated to the industry atlarge via press releases or “Mission Status” updates. Chuck Sulkala, executive director of the NABC, said “This project has been given highest priority by the NABC board and we will give ongoing updates and total transparency to the entire industry of our efforts.” The plan includes raising $1.5 million to purchase, completely renovate, and equip a 30,000-square-foot training facility in San Antonio, TX, on behalf of Operation Comfort’s Automotivation program. The NABC has raised over $200,000 to date towards this goal. “There is no other program in our industry that connects wounded veterans with entry-level job opportunities in auto body repair. Participants will receive training in collision re-

pair, estimating, vehicle refinishing and other related topics toward the goal of preparing them for full-time employment in our industry. We have an obligation to help those who have given so much for the freedoms we treasure,” said Sulkala. Founded in 2004, Operation Comfort is a 501 C-3 nonprofit organization that complements the rehabilitation efforts carried out by the U.S. Army at the Brooke Army Medical Center (BAMC). As a form of occupational therapy, the organization runs the AutoMotivation program through which disabled veterans who have served in Iraq and Afghanistan—in many cases those that have lost one or more limbs—are helped with rehabilitation through automotive-related repair activities. Visit www.operationcomfort.org/ automotivation/ for more information. All collision repair-related associations, businesses, body shops and individual collision repairers are strongly encouraged to make donations for this project. For any further information, contact Chuck Sulkala at chuck@autobodycouncil.org or call (888) 667-7433.

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

Industry Insight with John Yoswick

Action on Insurer ‘Most-Favored Nation’ Clauses May be on the Horizon A key element of some direct repair collision repair industry in 2006 when program (DRP) contracts is indirectly State Farm announced some significoming under increasing scrutiny by cant changes to its Select Service with Ed Attanasio federal regulators—leading some to agreements. One of the changes was predict insurer pricing demands on an MFN requirement. George Avery, a claims consultshops soon may be forced to change. The contract clause in question is ant with State Farm, defended the new often referred to as the “most-favored requirement at the time by saying that nation” clause in that it requires a sup- because State Farm writes more than plier—such as a body shop—to pro- twice as many estimates as its nearest vide the buyer with with which it has a competitor, it felt it should be getting Ed Attanasio contract such as an insurer—with the any discounts that shops offer to other same pricing it offers its “best” or insurers or customers. “If you choose to give no discounts “most-favored” customer. Most-favored nation (MFN) whatsoever, that’s perfectly fine with clauses have been the subject of law- us,” Avery said in a 2006 interview. “I suits and regulatory scrutiny in the don’t have a problem with that. But if health care industry in recent years, your business model includes some disand the Automotive Service Associa- counts, then we want to be part of it.” He said he recognizes that shops tion (ASA) is among the groups hoping to turn that attention to similar may offer one insurer a discount on parts but not labor, and another insurer clauses in DRP contracts. a discount on labor but not parts. Under the new agreement, Avery said, State Farm initiates MFNs first gained prominence in the the shop must provide State Farm with

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all the best discounts it offers in any category. “If anyone or everyone gets a 10% discount except State Farm, for example, if you’re interested in our program and I select you, I would like that 10%,” Avery said. “That’s when repair facilities need to make a decision. Please understand I’m saying this with the most respect I can muster: If your business practice is that you give discounts but you can’t afford to give me the discount, then perhaps this program is not for you.” State Farm said it could check on how a shop bills other insurers when subrogating claims paid by the other carrier for which State Farm is ultimately responsible. “Am I going to scour that stuff? I’m not going to look at your business. I’m going to trust you,” Avery said. “But if it comes to my attention, I’m going to take appropriate action and I’m going to take it now.”

Shops, regulators, courts respond Collision repair shops took a variety of paths in dealing with the new MFN policy, which has since been emulated by a number of other insurers. Those that had previously offered other insurers little in the way of discounts were not widely impacted. Some that had offered discounts didn’t see it as a good business option to extend those discounts to the largest auto insurer—and raised their charges to the other insurers or dropped those programs. Still others just began giving State Farm the MFN status the insurer was seeking. Some, too, parted ways with the State Farm program—of their own choice or that of the insurer. State Farm reduced the number of shops participating in “Select Service” by about 40% in 2006 and 2007 as it rolled out the new agreement. But by 2010, MFNs that insurers had implemented in the health care in-

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dustry were beginning to creep in the news: • In March 2010, Connecticut Attorney General Richard Blumenthal challenged the MFN clause of a health insurer-provider contract. Blumenthal notified the U.S. Health and Human Services Secretary of his ongoing investigation into what he termed the “anti-competitive clause” that Anthem Blue Cross & Blue Shield of Connecticut has in its contracts with hospitals and doctors. Blumenthal said such clauses “may drive up health care costs and drown out competition.” • In late 2010, Blue Cross Blue Shield of Michigan filed a motion in U.S. District Court in Detroit seeking dismissal of a federal antitrust lawsuit that alleges that the “most favored nation” clauses of the insurer’s contract with hospitals is anti-competitive. The U.S. Department of Justice and Michigan’s Attorney General had brought the lawsuit against the health insurer, saying MFN clauses raise hospital prices, discourage discounting and prevent other insurers from entering the marketplace. It said that some Blue Cross clauses required Michigan hospitals to charge the insurer’s competitors up to 40% more for services. Blue

Cross was unsuccessful in arguing the suit should be dismissed because as a state-created entity, the company is protected from federal antitrust lawsuits, and because the government failed to show specific economic harm caused by its behavior. “This cannot be allowed in Michigan, and let me be clear: We will challenge similar anti-competitive behavior anywhere else in the United States,” Christine Varney, the U.S. Assistant Attorney General’s Office antitrust chief at the time, said. • Most recently, the Department of Justice (DOJ) and Federal Trade Commission (FTC) held a joint workshop this past fall that many saw an indication that anti-trust regulators have “a reinvigorated focus on mostfavored-nation (MFN) clauses.” “Although at times employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns,” the two agencies noted prior to the workshop. “This is because they may, especially when used by a dominant buyer, raise other buyers’ costs or (prevent) would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated

pricing among sellers.” ASA’s Bob Redding participated in the workshop and said, “What was evident from the workshop is that public policy regarding MFN clauses is still evolving. There are a number of outstanding questions such as whether these clauses - a common practice in many business sectors have a net benefit for consumers. The FTC and the DOJ have a difficult task in determining how to regulate MFN clauses in order to protect consumers and small businesses.” Following the workshop, ASA wrote a letter to the Department of Justice asking for a full review of the clauses as used in direct repair agreements. “The anti-competitive nature of these clauses ensures both our members and consumers are at a disadvantage,” Redding said in the letter. Redding seems hopeful the issue will remain within the focus of regulators. “This is an area that has not worked in our favor as collision repairers in the past,” Redding said. “But we’re going to see more interest in this area by the FTC and the Department of Justice.”

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FinishMaster, Inc. announced two new acquisitions in two states. On December 28, 2012 the company acquired the Ewing, NJ, location of Mid-State Automotive Paint and Body Shop Supply, Inc. Mid-State has been servicing the local collision repair industry for more than 32 years. FinishMaster also completed on January 7, 2013 the acquisition of the assets of Central Paint and Car Specialty in Ukiah, CA. Central Paint was founded more than 20 years ago. FinishMaster currently operates five other locations in New Jersey and 29 in California. “These acquisitions expand our footprint in the New Jersey and California markets, giving us the ability to better serve our customers,” stated Steve Arndt, President and Chief Operating Officer. FinishMaster is headquartered in Indianapolis, IN, and operates three major distribution centers with 165 branches in 25 of the largest metropolitan areas in the country.

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3M Assists 19 Collision School Programs with $160,000 in Production Donations via Foundation 3M has come to the aid of 19 secondary and post-secondary collision programs across the country by donating their Hookit II sets through the Collision Repair Education Foundation. This product donation, valued at $160,000, will ease collision department budgets by providing students with the opportunity to work with upto-date supplies. 3M Marketing Manager Dale Ross said, “3M is honored and pleased to continue our support of the Collision Repair Education Foundation and the many career and technical schools around the country. We are keenly aware that providing stateof-the-art products to these students during their education is vital to ensuring their future and the future of our industry.” Collision Repair Education Foundation Director of Development Brandon Eckenrode said, “According to the surveys and information we receive back from instructors, secondary and post-secondary collision school programs on average have a budget of $6,000 to run their program each year. Through our industry supporters, such as 3M, we are able to as-

sist instructors with this minimal budgetary amount to instruct proper collision repair training to the future professionals of the industry. 3M has lead the way in providing product donations to collision school programs the past several years and their commitment to the industry.” Inter-industry organizations and individuals who are interested in supporting the Education Foundation and increasing the amount of assistance provided to collision schools and students should contact Education Foundation Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org or 847463-5244. The Collision Repair Education Foundation, founded in 1991, is a not-for-profit organization dedicated to securing donations that support philanthropic and collision repair education activities that promote and enhance career opportunities in the industry. For information on how to donate to programs supported by the Education Foundation, visit us on the Internet at: www.CollisionEducationFoundation.org

Alcoa Awards $40,000 Aluminum Training Grant to Collision Repair Education Foundation Alcoa Foundation, the philanthropic arm of Alcoa, the world’s leading aluminum company, recently awarded the Collision Repair Education Foundation a $40,000 grant that will provide educational and aluminum repair training to post-secondary collision instructors and students. Collision instructors and students will have the opportunity to apply for the aluminum repair training grant as part of the Collision Repair Education Foundation’s spring 2013 student scholarship/tool grant opportunities. Seventeen collision instructor/student pairs will be selected to attend aluminum repair technical training at the I-CAR Tech Centre in Appleton, WI, during the summer of 2013. “The work of the Collision Repair Education Foundation is spot on with our desire to educate and train people for important STEM-related trades including automotive repair,” said Randall Scheps, Director of Marketing for Alcoa Automotive. “As the mix of materials in this market continues to change as consumers seek more fuel-efficient vehicles, this work is even more important. Though it will also make it evident

Collision Repair Education Foundation Offers $300,000 in Scholarships and Tool Grants This Spring

The Collision Repair Education Foundation is offering more than $300,000 in scholarships and tool grants to collision students this spring. Secondary and post-secondary collision students attending career and technical schools and colleges have the opportunity to apply for $300,000+ in available scholarships and tool grants available through the Collision Repair Education Foundation and the organization’s industry supporters. The spring 2013 opportunities include: • 3M Hire Our Heroes Veteran Scholarships & Tool Grants • Alliance of Automotive Service Providers Massachusetts (AASP-MA) Tool Grants • ABRA Auto Body & Glass Tool Grants • Alcoa Foundation Aluminum Training Grants • CCC Michael Salvatore Memorial Student Repair Technician Scholarships • Chicago Pneumatic Student Tool Grants • Collision Repair Education Foundation Board of Trustees Scholarships • Collision Repair Education Foundation Scholarships

• GEICO Scholarship and Tool Grants • I-CAR Northwest Region Scholarships • The Lon Baudoux Legacy Scholarships • PPG Automotive Refinish Scholarships • Service King Tool Chest Grants • Sherwin-Williams Primer Pack Grants • Sterling Autobody Centers Scholarship & Tool Grants Students may apply for scholarships online at CollisionEductionFoundation.org by February 15. All students who apply will receive a free safety kit which includes a complimentary technician shirt/uniform, safety glasses, mechanic gloves and a disposable dust respirator.

Students who apply will receive this free kit

32 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

that working with and repairing aluminum is actually no more difficult that any other material—it’s just different,” Scheps said. Collision Repair Education Foundation Executive Director Clark Plucinski noted, “As more and more of today’s and future vehicles are being constructed with aluminum, it is crucial that repair professionals complete aluminum repair technical training in order to repair consumer’s collision damage properly. Through this Alcoa grant, not only will instructors gain technical training that they can bring back to their classroom for additional students, but the students will have completed industry recognized, I-CAR aluminum repair training making them more employable to the industry. I thank Alcoa for their support and we look forward to working together with them and ICAR on training the future repair professionals of the collision industry.” Collision Repair Education Foundation spring 2013 scholarship and tool grant applications are available online at www.CollisionEducationFoundation.org. Questions? Call 847.463.5244 or email Brandon.Eckenrode@ed-foundation.org.

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Original Batmobile Sold for $4.6 Million at Auction

Judge to Rule Soon on Batmobile Copyright Suit

at Barrett-Jackson, the Scottsdale, AZ, rare and classic auto auction house. There was a reserve price for the car, built and owned by famed car customizer George Barris. The one-of-a-kind 1955 Lincoln Futura concept car was originally created by a design team at Ford Motor Co.’s Lincoln styling department. The 19-foot-long, two-seat, bubble-topped grand touring car prototype was entirely hand-built in 1954 by Ghia Body Works in Turin, Italy, and unveiled in 1955 at the Chicago Auto

A Gotham Garage replica of the “1966 car,” the television Batmobile

The iconic Batmobile from the 1960s television show sold for $4.6 million at the Barrett-Jackson classic car auction held in Arizona the weekend of Jan. 19–20. The midnight-black and fluorescent-red-pinstriped car that Adam West’s Batman used to battle villains in Gotham was up for grabs Jan. 19

Show. In late 1965, 20th Century Fox Television and William Dozier’s Greenway Productions tapped Barris to come up with a car to foil Batman’s enemies. Barris said he bought the 1955 Lincoln Futura concept car from Ford for $1, then transformed the Lincoln in just 15 days for $15,000. The car features bulletproof plexiglass bubble windshields and the Bat Ray (dual 450-watt laser beams that blasted obstacles to bits). It also has a Bat-O-Meter, which identified the location of the bad guys, as well as oil squirters (fashioned from lawn sprinkler heads) to foil evil-doers. “I saw the script and it said, ‘Bang,’ ‘Pow,’ ‘Boom,’” Barris, now 87, said. “That’s exactly what I wanted the car to do. I wanted it to be as big a character as the actors.” Since the television show ended in 1968, the Batmobile has been on display at Barris Kustom Industries in North Hollywood, CA, in a gallery. “It’s difficult to part with,” Barris said. “Whoever the lucky buyer is, I hope they have as much fun with it as I did.” The buyer of the car is Phoenixarea logistics company executive Rick Champagne.

New Insurance Laws Take Effect in 2013 New insurance-related laws will take effect in 2013 in a number of states.

California The California workers’ comp benefit delivery system will undergo changes in 2013 as part of SB 863, the Workers’ Compensation Reform Package, which passed in the 2012 legislative session. SB 863 is intended to reduce system costs as a set-off for increased worker indemnity benefits. SB 863 is designed to contain costs in several ways, while increasing permanent disability (PD) benefits for workers. Two goals of the bill were to change the way in which the system deals with PD, and how medical liens and billing disputes are handled.

Florida The Sunshine State’s HB 119 Motor Vehicle Personal Injury Protection (PIP) Insurance was signed into law by Gov. Rick Scott last May. The bill, which has been described as the most significant auto insurance law in years, seeks to clamp down on alleged abuse and fraud, and improve the state’s no-fault PIP system. The medical benefits provisions of the law took effect on Jan. 1, 2013. They include the requirement that accident victims report an auto-related injury and seek

treatment within 14 days. Policyholders could receive up to $10,000 in benefits for emergency medical care, and $2,500 for less serious injuries.

New Jersey The Garden State planned to implement new rules regarding motor vehicle PIP insurance on Jan. 4, 2013. Proposed changes included adding more procedures to the physicians’ fee schedule to slow rising auto insurance costs. Critics say the new fee schedule limits the types of procedures that could be reimbursed at ambulatory surgery centers (ASCs), and sets hospital outpatient surgical facility fees higher than ASC fees for certain services. The N.J. Association of Ambulatory Surgery Centers is seeking a stay from the court on the implementation of the new rules.

Illinois Beginning in January, SB 0275 will allow state agencies that issue occupational or professional licenses to provide expedited temporary licenses to service members and their spouses who meet certain requirements. This could make it easier for military veterans to enter the insurance profession. Visit InsuranceJournal.com for more information.

34 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

A copyright case involving DC Comics, custom-car builders and the Batmobile from the 1960s Batman television series could reach a conclusion later this month, the Wall Street Journal’s Driver Seat recently reported. In 2011, DC, a unit of Warner Bros. Entertainment Inc., sued car builder Mark Towle, who runs Gotham Garage, a Santa Ana, CA, shop whose business

includes selling hand-built Batmobile replicas. Both sides filed recently for summary judgment and a hearing with a judge is scheduled for Jan. 30. The judge could find in favor of either party or decide the case has to go to trial. The company said the replicas violate copyrights associated with vehicles Batman has used dating to the character’s early comic-book days. Towle and his Los Angeles lawyer, Larry Zerner, counter that

cars are not subject to copyright protection and the Batmobile from the television show—known to fans as “the 1966 car”—has virtually no design connection with earlier comicbook versions. The television car that people of a certain age recall fondly began life in the mid-1950s as a Lincoln Futura concept vehicle for display in auto shows. Legendary car customizer George Barris built the car and, Zerner said, many car builders including his client have made and sold replicas since then. Indeed, another custom car shop called Fiberglass Freaks could play a part in deciding the case. The Logansport, IN, company has been building Batmobile replicas for about nine years and has done so under a license from DC Comics since 2010. Shop owner Mark Racop said the problem started when Gotham Garage began offering its cars through online auctions. Descriptions of the cars included statements suggesting the Batmobile design isn’t protected under copyright and licensing laws, Racop said. The case happens to be unfolding as the original 1966 Batmobile was recently purchased for $4.6 million at auction. See adjacent story.

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 35

On Creative Marketing Aligning with Agents

with Thomas Franklin

As insurance companies set up 800 of some that invite them for hunting number claims lines or move away parties, fishing trips, barbecues, golf from agents altogether with direct tournaments, and trips to exotic sales and service on-line, agents have places. A while back, one shop had a become less of a marketing target for three-month promotion where anymany shops. Nevertheless, there are one bringing his or her car in for restill numerous agents almost every- pair would have a chance to win a where, and many of their customers paid vacation to Hawaii. But the still call them when they have an ac- shop went further than that: They nowith Dick Strom cident. Agents are still a good referral tified the agents that whichever source for collision repair business, agent referred the winner would also but today an agent might be more parwin a trip to Hawaii! Another shop ticular about who he or she refers initiated the practice of filling every business to. Getting and keeping an customer’s tank with gas, and noting insurance customer has become more that the fill-up was “Courtesy of the difficult for agents today. Competition Agent.” from no-agent, direct online compaSome insurance companies fornies is very intense these days. There bid their agents from accepting any are continual advertisements on TV, gift. But what an agent would value radio and the Internet, and low-ball above all else is not a gift, but rather a rates to hook customers are common. new customer. But how can a shop Lee Jr.local agents in their search for It’s not easy forwith an agent to Amaradio get new help customers. new customers? Many shops now ask Some shops go to great lengths customers to fill out a “Customer Satto get an agent’s referrals. I’ve heard isfaction Survey” when a job is com-

Opinions Count

Action Counts

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

pleted, or have a CSI company call them. Those with a view to building a stronger relationship with the agents can include a question on the survey regarding the customer’s satisfaction with his or her agent. These are then passed along to the agent as a free service. Many agents seek to sell their expertise as a way to get new customers. Not everyone is happy with the impersonal nature of online insurance services. These days, insurance companies try to bundle home, health, life and auto insurance as a package. Covering all of these aspects of a customer’s life and family can raise many questions. Clever agents try to get speaking opportunities at networking groups, professional association meetings and chambers of commerce where they can demonstrate their wide range of knowledge and their value as an agent. These are groups that a good shop marketing person will also be

trying to address, so there may be an opportunity for a cooperative presentation. Most insurance agents probably assume that people who have been insured with a competing company for a long time will be harder to convert than someone who hasn’t yet purchased much insurance. This suggests reaching the kind of audience that is a natural for a collision repair facility: young and beginning drivers. Smart shop marketing people like to speak at high schools and colleges and driving schools. When one of these is scheduled, it would be an ideal time to invite a key agent to also speak. The more a shop can align itself with an agent’s purposes, the more likely it will be to become an exclusive referral point for that agent. One shop I work with frequently also hosts agent manager meetings regularly. This brings agents into the shop where they can see the modern

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equipment and highly-trained technicians at work. An agent will be reluctant to refer a customer to a shop that will reflect badly on the agent. Hosting meetings allows the shop to showcase its best features and to plan a shop tour for the visiting agents and managers. Several shops have also done well with what I would call a “goodwill ambassador.” To make this work, it’s necessary to have a person who can make the rounds of the agents every month without fail, with pens, notepads or other promotional specialties, and who will be in it for the long haul. When the same person stops by every month for several years running, the agent’s people get to know this person well and trust becomes established. An older, semi-retired person is ideal for this job. Agents are still a good referral source for collision repair shops. Many of their customers still call them when they have an accident, and an agent will gladly refer the business to a shop that he or she knows is competent, trustworthy and attractive so it will reflect positively on the agent.

Custom Painter JoAnn Bortles Named Automotive Spokesperson for Hypertherm JoAnn Bortles, a custom hot rod/mo- plasma cutting in the hot rod and auto torcycle fabricator, certified welder, restoration segment.” and renowned custom painter, was reBortles brings more than 30 years cently named 2013 national automo- of automotive, technical experience tive spokesperson for Hypertherm, a and expertise to her new role and Hymanufacturer of advanced cutting sys- pertherm welcomes the opportunity to tems. reach a new Powermax market segAutobody News featured Bor- ment through this partnership. tles in its March, 2012 issue, “Air“As the owner of a small shop, brush Artist JoAnn Bortles is Writing the number one rule I have learned is her Seventh Painting Book.” See www.autobodynews.com and search ‘JoAnn Bortles.’ In her new role, Bortles will help educate and teach people about the benefits of using Powermax plasma systems and make public appearances on behalf of Hypertherm at a variety of automotive conferences and shows, including SEMA and the Hot Rod & Restoration Show. She is scheduled to participate in a va- JoAnn Bortles with best paint of the year 2006 riety of speaking opportunities across that time is money. Wasted time is the country. very expensive and by using the right “We are pleased to welcome products, it makes all the difference in JoAnn Bortles to the Hypertherm team how much profit a shop will make and look forward to reaching an ex- each week,” said Bortles. “I look forpanded automotive audience with ward to showing shop owners and JoAnn’s extensive background and hobbyists the benefits of plasma cutknowledge,” said Reese Madden, di- ting, and breaking the old stereotypes rector of North American Marketing. of plasma from decades ago.” “She brings to our team a multitude of Bortles was the first female to skills and understands the need for break into the motorcycle painting in-

dustry. Her other “firsts” include the following: • First female whose personal bike was featured on the cover of Easyriders Magazine in 2004 • First custom painter/fabricator featured in Southern Living Magazine • First female biker featured on NBC’s TODAY Show • First female painter featured on the cover of Motorcycle & Powersports News • One of the team leaders for the first all-women custom car build for the Specialty Equipment Market Association (SEMA) Mustang Powered By Women Project • First woman to paint and flame a hot rod on MuscleCar TV In addition to her books, painting, and plasma expertise, she is also a journalist with articles published in prestigious industry publications including: American Iron, Easyriders, VTwin, Cycle Source, Ironworks and Thunder Press. She has more than 14 years of experience writing stories featuring how-to articles, bike features, event articles and travel features. Bortles is a certified welder and fabricator, bringing decades of experience in custom fabrication on motorcycles, specialty cars, hot rods, automotive parts and aircraft engine components.

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 37

Toyota Working on Safety Technology to Reduce Traffic Deaths, Create Self-Driving Car Toyota Motor Corp. said it is working to develop new vehicle safety technologies that could help reduce traffic deaths and lead to a fully self-driving car, the Detroit News recently reported. At the 2013 International CES— the annual consumer electronics show —Toyota and its Lexus unit said while research “could lead to a fully autonomous car in the future, the vision is not necessarily a car that drives itself.” “In our pursuit of developing more advanced automated technologies, we believe the driver must be fully engaged,” said Mark Templin, Toyota group vice president and general manger of the Lexus Division. Toyota was showing off a futuristic vehicle, based on a Lexus LS, that shows some of the new features that could help drivers avoid crashes. Toyota says the research vehicle can scan movement of objects around it, identifying a green light versus a red light, while measuring its trajectory. A 360-degree LIDAR laser on the roof detects objects around the car up to about 75 yards, while three highdefinition color cameras detect objects about 165 yards away, including traffic lights and approaching vehicles.

The vehicle has radars on the front and sides of the vehicle that measure the location and speed of objects to create a comprehensive field of vision at intersections. Automakers, including Toyota, are already using some vehicle monitoring systems including cameras and radar to help drivers avoid crashes. They include lane-departure warning and lane-keeping assist systems, blind-spot warning systems, forward-collision warning and prevention systems, and adaptive cruise control. All are aimed at stepping in when inattentive drivers are about to crash. Google Inc., which has been testing driverless vehicles on public roads with a person sitting in the driver’s seat, has lobbied states to allow the vehicles. It has logged more than 300,000 miles using a retrofitted fleet of autonomous vehicles on U.S. roads and has won permission to conduct the tests in Nevada and California. Toyota and other automakers are also working on connected vehicles for an Intelligent Transportation System that could allow cars to warn each other about impending crashes through ‘vehicle to vehicle’ or ‘vehicle to infrastructure’ communication.

Two Jobbers Expand with Acquisitions

National Coatings & Supplies (NCS), a national paint and body equipment distributor headquartered in North Carolina with over 75 locations in 28 states, has acquired the Grinstead Group, a Louisville, KY-based operation that includes distributor locations in 11 cities in Kentucky, Indiana, Ohio and West Virginia in addition to its corporate office and a customer service center. Grinstead was founded in 1968 and distributes AkzoNobel and BASF automotive refinish products as well as industrial coatings from a variety of manufacturers. NCS distributes DuPont, BASF, PPG & AkzoNobel.

Wesco buys Automotive Paint Specialties Wesco Auto Body Supply, Inc., a paint, body and equipment supplier based in Mountlake Terrace, WA, acquired Automotive Paint Specialties, a jobber with eight locations based in Bend, OR. The acquisition will give Wesco a total of 33 locations throughout Idaho, Oregon and Washington State. Wesco plans to keep the APS locations operating under the Automotive Paint Specialties name and Ben

Tuma, founder of Automotive Paint Specialties, has agreed to stay on with the Wesco Group to assure a smooth transition. Terms of the deal were not disclosed. “We are very excited about this latest acquisition in the Oregon market,” says Wesco VP Roger Howe, who handles acquisitions and corporate affairs for the company. Wesco was started as a single location in Everett, WA, more than 40 years ago by its founder and President Lloyd J. White. “The combined strength of the two companies is very exciting, we will be better positioned to service our customers in all the markets we serve,” said White. “The real success and strength of both companies continues to be the incredible employees. We look forward to continued growth and success as the market continues to consolidate.” This deal, which closed on December 31, is the third acquisition for Wesco in the past 12 months. The company also acquired LDI Automotive Paints, Inc. in Tacoma, WA, and Evergreen Paint, Inc. in Longview, WA, during 2012.

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38 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

A ‘smart stop sign’ could warn a car that an oncoming driver was about to ignore the sign. Toyota began full-scale operations in November at new 8.6-acre ITS proving grounds, located within the Higashi-Fuji Technical Center in Toyota City, Japan. The proving grounds replicates urban roads and traffic signals and simulates real-life traffic situations using other vehicles, pedestrians and traffic lights. Last August, Transportation Secretary Ray LaHood kicked off a yearlong test of nearly 3,000 smart cars in Ann Arbor that’s also looking at the same issue. The study will show whether drivers averted crashes because of the vehicles communicating with one another. The Transportation Department is funding 80% of the $25 million project, partnering with eight major automakers, including General Motors Co., Ford Motor Co., Toyota, Honda Motor Co., Volkswagen AG, Daimler AG, Hyundai Motor Co. and Nissan Motor Co. In addition, the University of Michigan Transportation Research Institute is conducting the test of about 2,800 cars, trucks and buses.

NHTSA Wants Loud Electric, Hybrid Cars for Safety

The National Highway Traffic Safety Administration (NHTSA) has proposed a minimum sound standard for electric and hybrid vehicles to help reduce pedestrian fatalities. Electric and hybrid vehicles are very different than their gas-only counterparts in that they are virtually silent at low speeds, but such quiet operation makes it difficult for pedestrians (and those who are hearing impaired) to detect an approaching vehicle. The proposal would require these ‘quiet’ vehicles meet a minimum sound requirement when they travel under 18 miles per hour. Above that speed, there is sufficient noise. Automakers can determine the sounds they want, but the characteristics would need to meet the new regulation. Also, vehicles of the same make and model must emit the same sound. NHTSA estimates this proposal could prevent thousands of injuries per year. Currently, a number of models already have these artificial sounds, including the Fisker Karma with a Jetson’s-like whir and the Nissan Leaf has a high-pitched whine.

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bdowney@dchusa.com www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 39

U.S. Fines Toyota $17 Million for Not Quickly Reporting Problems, Delaying Recall The U.S. government hit Toyota Motor Corp. with a record $17.4 million fine for failing once again to report problems in a timely manner to federal regulators and for delaying a safety recall, the Claims Journal reported in December. The fine against the world’s biggest automaker from the National Highway Traffic Safety Administration, the agency that monitors vehicle safety, is the maximum allowed by law. It’s the fourth fine levied against Toyota in the past two years for similar infractions, and it’s the largest single fine ever assessed against a car company over safety defects. In 2010, Toyota paid a total of $48.8 million in fines for three violations. The latest infraction raises questions about whether the fines are big enough to deter automakers that withhold information from NHTSA, and whether the government agency can do enough to stop repeat offenses. The fine is a tiny fraction of Toyota’s earnings. The company posted a $3.2 billion profit in the third quarter alone. Toyota said it agreed to pay the penalty without admitting any violation of the law. It also pledged to strengthen data collection and evaluation to make sure it takes action more quickly.

“We agreed to this settlement in order to avoid a time-consuming dispute and to focus fully on our shared commitment with NHTSA to keep drivers safe,” Ray Tanguay, the company’s chief quality officer, said in a statement. The latest fine stems from a June recall of SUVs from Toyota’s Lexus luxury brand. About 154,000 of the 2010 Lexus Rx 350s and RX 450h models were recalled because the driver’s-side floor mats can trap the gas pedal and cause the vehicles to speed up without warning. The problem was similar to troubles from 2010 that prompted a series of embarrassing safety recalls by the company. Toyota has recalled more than 14 million vehicles globally to fix sticky gas pedals and floor mats. The recalls tarnished the company’s sterling reputation for reliability and cut into sales. Recently its sales have rebounded as it appeared to put the safety problems in the rear-view mirror. But NHTSA said that Toyota failed to report acceleration problems in the Lexus SUVs within five business days of discovering them, as required by U.S. law. The agency said it began investigating the SUVs early this year after receiving complaints

Global Electric Vehicle Sales Could Reach 3.8 Million by 2020, Research Firm Says

Sales of plug-in electric vehicles and of hybrid electric vehicles are expected to grow exponentially throughout the decade as the number of affordable vehicles increases and the charging infrastructure to support them continues to improve, says a new report that claims that the market for electric vehicles is still in its early stages. According to the report from Pike Research, this will lead to sales of more than 3.8 million a year by 2020. “Sales of electric vehicles have not lived up to automakers’ expectations and politicians’ proclamations, but the market is expanding steadily as fuel prices remain high and consumers increasingly seek alternatives to internal combustion engines,” says senior research analyst Dave Hurst. “Indeed, sales of plug-in electric vehicles will grow at a compound annual growth rate of nearly 40% over the remainder of the decade, while the overall auto market will expand by only 2% a year.” Hybrid electric vehicles, such as the Toyota Prius, which use a traditional petrol or diesel engine alongside an electric motor, have been on general sale throughout the world for over a decade, and as cheaper mass-produced plug-in electric vehicles such as

from consumers. In May, the agency contacted Toyota about the problem, and it took the company a month to report 63 incidents of floor mats trapping gas pedals, NHTSA said. “I expect Toyota to rigorously reinforce its commitment to adhering to United States safety regulations,” U.S. Transportation Secretary Ray LaHood said. Next year, the maximum fine NHTSA can assess will double to $35 million. Toyota, NHTSA said, agreed in a settlement to make internal changes to comply with U.S. laws. In an August interview, Jim Lentz, Toyota’s highest-ranking U.S. executive, told The Associated Press that the company was obeying the law in giving information to NHTSA. In 2010, Toyota paid two $16.4 million fines and one $16 million fine, all for reporting violations. NHTSA said at the time that the company didn’t report problems with sticking gas pedals in a timely manner, nor did it report problems with floor mats trapping gas pedals. Toyota also told NHTSA that a recall of commercial trucks in Japan for a steering problem did not affect U.S. vehicles. But a year later, the company recalled similar vehicles in the U.S.

the Nissan Leaf, plus plug-in hybrids electric like the Chevrolet Volt (that use a petrol or diesel engine to charge the electric battery) have started to come to the global market since 2010.

40 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

The Insurance Institute for Highway Safety (IIHS) recently awarded 13 vehicle models with its Top Safety Pick+ award for 2013. The vehicle models named as IIHS’ Top Safety Pick+ for 2013 include the Acura TL, Dodge Avenger, Chrysler 200, Ford Fusion, Honda Accord two-door, Honda Accord four-door, Kia Optima, Nissan Altima, Subaru Legacy, Subaru Outback, Suzuki Kizashi, Volkswagen Passat and Volvo S60. To earn the Top Safety Pick+ accolade, all 13 vehicles received “good” or “acceptable” ratings in the IIHS’ new small overlap test, an evaluation that simulates safety performance when the front section of a vehicle hits another vehicle or permanent object, such as a tree or utility pole. The IIHS said small overlap crashes account for roughly 25% of frontal crashes that result in serious injuries or fatalities to occupants. The IIHS said midsize, luxury cars were the first group of vehicles evaluated through its small overlap test. Midsize, moderately priced cars will be evaluated next, and the organization will announce additional Top Safety Pick+ winners after tests are conducted. Safety results for small SUVs will be announced this spring.

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In the US, the latest figures from the Electric Drive Transportation Association (EDTA) projected that sales of plug-in electric and plug-in hybrid vehicle sales more than doubled in 2012, hitting 44,888 compared with 17,735 in 2011 (this includes business fleet as well as individual consumer sales). However, the figure represents less than 0.5% of all types of cars sold in the country over the same period, estimated by EDTA in December to total 13.08 million, and this week projected to reach 14.5 million, according to Ward’s Auto and Autodata.

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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 41

Continued from Cover

Strong Sales for 2012

The top sellers, once again, were the Ford F series as the top truck, and the Toyota Camry on the car side. Both enjoyed healthy gains: Sales of the F series jumped 10% to 645,316; and the Camry soared 31% to 404,888. Industry experts predict that the United States market would continue to grow to at least 15.5 million vehicles sold this year, and possibly higher, if housing and other economic factors continue to improve, the New York Times reported. Ford predicts that industry sales could reach as high as 16 million vehicles in 2013 as more consumers trade in older cars and buy new, more efficient models. See more information on 2013 forecasting on page 45. “For the industry, 2012 was mission accomplished,” said Jesse Toprak, an analyst with the auto research site TrueCar.com. “Companies are hitting their sales goals, and they are doing it with fewer incentives.” “The U.S. light vehicle sales market continues to be a bright spot in the

tremulous global environment,” said Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry forecasting firm.

Volkswagen Volkswagen led all major automakers with sales up a staggering 30.6% for

the year, and 29.9% in December, led by the redesigned Passat midsize sedan. VW sold more than five times as many Passats last year as it did in 2011. Toprak, vice president of industry trends for TrueCar, said VW has the right mix of value and attractive

Top-selling cars and trucks in the US in 2012

Automakers reported U.S. new car and truck sales for December and all of 2012. These were the top sellers in 2012, and the percentage sales rose or fell from 2011.

Vehicle

Ford F-Series Chevrolet Silverado Toyota Camry Honda Accord Honda Civic Nissan Altima Ram pickup Toyota Corolla Honda CR-V Ford Escape

Total 2012 sales

Source: Autodata Corp.

645,316 418,312 404,886 331,872 317,909 302,934 293,363 290,947 281,652 261,008

Percent change from 2011 10.3% 0.8% 31.2% 40.8% 43.7% 12.6% 19.9% 21.1% 29.0% 2.6%

vehicles and called the company “the force to watch in the next several years in the U.S. market.”

Toyota Toyota, which has recovered from an earthquake and tsunami that crimped its Japan factories two years ago, said that sales jumped 26.6% for 2012. Its December sales were up 9%. Unlike 2011, the company had plenty of new models stocked in showrooms for most of last year. Toyota’s top sellers were the Corolla, Camry and Prius.

Subaru Subaru reported a record sales month in December, saying its December sales of 36,653 vehicles is the best sales month in its history. Subaru also announced record-breaking annual sales of 336,441, which represents a 26% increase over 2011. This is the fourth consecutive year of sales records for Subaru of America and fifth consecutive year of sales increases. Annual sales for the Impreza increased nearly 150% over 2011. Yearto-date sales for the newly-refreshed Outback and Legacy models increased 13% and 11% respectively. The newly introduced BRZ and XV Crosstrek

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models also added 3,906 incremental sales for the month of December and 11,540 units for the year. “We met our goals for the year and we crossed a new milestone by exceeding 300,000 annual sales,” said Thomas J. Doll, executive vice president and COO, Subaru of America, Inc. “It was a great year for Subaru of America. The popular XV Crosstrek, all-new 2014 Forester and an upcoming hybrid will fuel our growth in this new year.”

Honda Honda sales rose 24% for the year and ended 2012 on a high note with a 26.2% jump in sales in December. Its bestsellers were the Accord and Civic.

Chrysler Chrysler, the smallest of the Detroit carmakers, had the best year among U.S. companies. Its sales jumped 20.6%. December sales rose 10.4%, the strongest December sales in five years. Chrysler reported U.S. market share rose to 11.2% in 2012, up from 10.5% share in 2011. The all-new Dodge Dart, which recently earned a Top Safety Pick from the Insurance Institute for

Highway Safety, played a big role in Chrysler Group’s big sales increase in December. Dart sales were up 36% month-over-month in December, the compact car’s best monthly sales performance since it went on sale in June, with a sales total of 6,100 in December. Also contributing to Chrysler Group’s 10% increase were the Fiat 500, Jeep Wrangler, Dodge Challenger, Dodge Journey, and Ram Cargo Van, each setting a sales record for the month of December. The Jeep Grand Cherokee, the most awarded SUV ever, recorded its best sales performance of the year in December. The Jeep brand’s 13% sales increase in the U.S. helped push its global sales to an all-time record in 2012. Seven Chrysler Group models set annual sales records in 2012. The Chrysler, Dodge, Ram Truck and FIAT brands each posted year-overyear sales gains in December compared with the same month last year. The FIAT brand’s 59% was the largest sales gain of any Chrysler Group brand for the month, and set a sales record for the month of December. “Looking back on 2012, we were again one of the fastest-growing au-

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Hyundai For the Hyundai brand, U.S. sales rose 17% in December, capping off a 9% sales increase for the full year to a

GM and Ford But full-year sales at Ford and General Motors lagged. GM’s rose only 3.7% for the year, while Ford edged up 4.7%. For December, GM sales rose 4.9%, while Ford was up only 1.6%. GM’s December increase was primarily because of new products like the Cadillac ATS sedan and higher incentives on its Chevrolet Silverado and GMC Sierra pickups. The Detroit News reported that GM sales of the plug-in hybrid Chevrolet Volt tripled in 2012. U.S. sales of the Volt for 2012 will top 23,000 for the year, said Michelle Malcho, a spokeswoman for GM. Volt sales got a boost when California granted solo drivers access to carpool lanes. GM spokesman Jim Cain says 1-in-3 Volts are now sold in the Golden State. The company abandoned its 2012 U.S. sales forecast of 45,000, saying it would instead match supply to meet demand. GM executives said the company has the oldest model lineup in the industry, yet it still posted a sales in-

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Nissan and Infiniti Nissan and Infiniti sales were up nearly 10% as the Nissan brand topped 1 million in annual sales for the first time. But Nissan said its December sales dropped by 1.6%.

record 703,007 vehicles, the Korean automaker’s best year in the U.S.

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tomakers in the country with total sales up 21%. We also recorded 33 consecutive months of year-over-year sales growth and our strongest annual sales in five years. Finally, seven of our vehicles recorded their best ever annual sales in 2012, demonstrating how the quality, design and fuel efficiency of our product line up continues to resonate with consumers,” said Reid Bigland, President and CEO, Dodge Brand and Head of U.S. Sales. Editors of Motor Trend named the new 2013 Ram 1500 the magazine’s 2013 Truck of the Year, and five Chrysler models received the 2013 Consumer Guide® Automotive ‘Best Buy’ Award: Dodge Grand Caravan, Journey and Durango; Chrysler Town & Country, and Ram 1500.

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crease and commanded high prices for cars and trucks. The company plans to refurbish 70% of its North American models in the next 18 months and expects to boost sales this year. Ford reported only a slight sales increase in December due to safety recalls for its new Escape SUV and Fusion sedan which saw a big drop in sales. However, the sales drop for those cars was mitigated by strong

sales for Ford’s two smallest cars, the Focus and the Fiesta, both of which increased in sales by more than 50%. Ken Czubay, head of Ford’s United States sles and marketing, said the company’s small-car sales were its best in more than a decade. While Ford didn’t match Toyota with the best-selling-car title, Ford did top two million U.S. sales in 2012 and can boast having a top-selling brand.

Kia In December, Kia sales fell by nearly 10%, its first monthly decline in more than two years. Kia spokesman Scott McKee declined to comment on the reasons for the December sales decline. But, despite the December hiccup, Kia sold a record 557,599 vehicles in the U.S. market last year, up 15% compared with the overall U.S.

Volvo 2012 Sales Drop, Sees Challenging Year Ahead Volvo, owned by Chinese group Geely, said its sales fell 6% last year, including double-digit drops in China and Sweden and a small rise in the United States, and warned of a tough 2013. Volvo is the biggest Chinese overseas investment in the auto industry and the Swedish company is pinning its growth hopes on China. Overall sales fell last year to 421,951 cars from 2011’s 449,255, the group said in a statement. “Competition in the car industry will most likely continue to be as fierce as in 2012 as manufacturers will seek to capture volumes and market

Continued from Page 3

Believe & Achieve

to local elementary schools every Friday during the school year by volunteers and teachers. This gift is the result of donations raised from the Believe and Achieve Foundation’s Charity Golf Outing held last September, private individual contributions and 100% of the proceeds from the sale of “Hatimals,” winter hats that resemble different animals and are sold through the Believe and Achieve website. In addition to these efforts, donations were also driven by several marketing campaigns led by Grand Sport Auto Body & Glass Centers, a local collision repair company and founder of the Believe and Achieve Foundation. “It is the Foundation’s goal to provide necessary enrichment and education programs to less fortunate children throughout Chester & Montgomery counties. Believe & Achieve is a tremendous Foundation and this $15,000 will assist just 10% of our local kids in need. I urge every local business and household in the community to help out as every dollar goes to this tremendous cause. Please visit be-

shares in a market where the economic situation will remain unstable,” the company said, expecting a challenging year in terms of margins and growth. It said several markets last year reported improvements, particularly emerging and overseas markets, but that the economic situation in mature markets and regions hit demand. Volvo, acquired from Ford Motor Co. by Zhejiang Geely Holding Group for $1.8 billion in 2010, aims to spend about $11 billion to double total annual sales to 800,000 cars by 2020 and boost sales in China to 200,000, from only

lieveandachievefoundation.org to contribute,” said Fred Gunther, Founder of the Believe & Achieve Foundation. In addition to the current 1,000 children receiving food assistance with the program, there are 11,000 more children in Chester County elementary schools eligible for the Backpack Buddy Program. Although food donations are always appreciated, monetary contributions help increase the buying power to purchase bulk quantities of food supplies at a discounted price. For more information and to make donations, please visit www.believeandachievefoundation.or g or send tax deductible donations to Believe & Achieve Foundation 124 S. Ship Rd., Exton, PA 19341. “The Chester County Food Bank would like to thank the Believe and Achieve Foundation for its continued commitment and support of the Food Backpack Program. Many more children and their families continue to struggle with adequate food. Through its support of this program, the Believe and Achieve Foundation is making it possible for those families to be helped,” said Larry Welsch, Executive Director of the Chester County Food Bank.

44 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com

auto industry’s 13% gain. After a relatively quiet year in 2012, Kia is poised for a big year on the new product front in 2013. In a statement, Kia Motors America CEO Byung Mo Ahn said the brand plans to launch seven new or reworked vehicles in the next 12 months. BMW BMW tops the U.S. luxury auto sales

41,000 last year, which was a drop of 11%. The U.S. market remained the single biggest for Volvo at 67,273 last year, up 1%. Volvo said it expected a new plant in Chengdu in China, aimed at being a key part of the expansion plan in the country, to be up and running in the second half of 2013. Volvo last year fired its German chief executive, Stefan Jacoby, and replaced him with Swedish truck industry veteran Hakan Samuelsson as it seeks to get its China growth plans back on track.

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in 2012, with a reported sales increase of 34.7% in December. BMW can lay claim to the 2012 U.S. luxury auto sales crown for the second year in a row with an increase of 13.5% in sales over last year.

Mercedes-Benz Also saw its best year ever for U.S. sales and came in second place for luxury sales with a 15.4% sales increase over 2011.

Pickup Deals December featured year-end deals on big pickup trucks. GM offered discounts of up to $9,000 to help clear growing inventory. The move worked. GM cut its full-size pickup supply from almost 246,000 at the end of November to just under 222,000 as the year came to a close. Overall, though, analysts said the industry eased up on promotions such as rebates and low-interest financing. Car and truck buyers paid an average of $31,228 per vehicle last month, up 1.8% from December 2011.

2013 Forecasting Auto sales in 2013 will be even stronger, predicts an auto industry re-

search firm. The firm says a healthier economy and more new model introductions should push U.S. auto sales above the 15 million mark this year. The Polk research firm joins many other analysts in predicting 2013 sales at or above 15 million. The consulting firm LMC Automotive, for instance, expects 2013 sales of around 15 million, up from 14.5 million in 2012. Polk says auto sales should continue to lead the country’s economic recovery, rising nearly 7% over 2012 to 15.3 million new vehicle registrations. Polk, based in Southfield, MI, expects 43 new models to be introduced, up 50% from last year. New models usually boost sales. All eight of the top manufacturers are strong and introducing new vehicles, and that should bring competition and lower prices in those segments, according to Tom Libby, lead North American analyst for Polk. Polk predicted a handful of other trends for 2013. Sales will grow for big pickups, which are very profitable for automakers. Demand has been depressed for five years due to the weak economy, but should get a lift in 2013

thanks to redesigned trucks from GM, Toyota and Ford. Polk also said the midsize sedan segment will continue to lead the industry. It’s now at 18.5% of the market, 2 percentage points larger than any other type of segment. “Recent redesigns of nearly every vehicle in the midsize segment are forcing more competition and continued growth,” said Libby. Polk does not expect pre-recession sales levels of 17 million for several more years, said Anthony Pratt, Polk’s forecasting director for the Americas. Auto sales peaked at about 17 million in 2005, but dropped to 10.4 million in 2009, the lowest level in more than three decades. But Polk’s optimistic forecast firm hinges on Washington reaching an agreement on spending cuts, which could happen later in the year. On New Year’s Day, congress approved a compromise to avoid the so-called “fiscal cliff.” The deal raises taxes for incomes exceeding $400,000 for individuals and $450,000 for couples. But it delayed action on dramatic federal spending cuts and debt, setting up another showdown in a divided Congress.

PartsTrader Releases Supplier Feedback Results

PartsTrader contracted with CSi Complete, an independent research organization, to survey participating parts suppliers within its first four pilot markets. PartsTrader says 67% of parts suppliers gave high marks to the functionality of the PartsTrader product. Over half (53%) of the suppliers indicated a score of 7 or above regarding their overall satisfaction with PartsTrader—on a scale of 0 (Poor) and 10 (Excellent). When asked specifically about their overall opinion of PartsTrader as a procurement tool, 67% responded with a score of 7 or higher. PartsTrader said a 93% satisfaction score was given to the efforts of PartsTrader employees. During early internal surveys of repairers and suppliers, the performance of PartsTrader staff had been identified as an area needing improvement. The survey also identified some areas where improvements should be addressed. PartsTrader will continue to work with industry stakeholders both within and outside of their Advisory Council to make service and product improvements as needed.

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Private Equity Firm Buys CCC Information Systems

Investcorp confirmed that it has successfully completed the sale of CCC Information Services to the Los Angeles based private equity firm Leonard Green & Partners, L.P. Terms of the transaction were not disclosed however Investcorp noted that the sale of CCC unlocks over $550 million in proceeds for Investcorp and its investors. CCC was a publicly held company prior to the Investcorp acquisition. Investcorp acquired CCC in 2006 for $26.50 per share. At the time, the value of the transaction was reported to be approximately $495 million. Investcorp said that during the period of their ownership of CCC, since February 2006, CCCâ&#x20AC;&#x2122;s EBITDA (earnings before interest, taxes, depreciation, and amortization) grew organically by over 50%. Investcorp said that transaction volumes in the industry have been relatively stable and growth has needed to come from market share gains by winning new auto body and insurance customers, or from new product introductions. Investcorp reported that the CCC client base includes more than 350 insurance companies and more than 21,000 repair facilities.

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