Northeastern February 2015 Issue

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Northeastern Edition New York Delaware New Jersey Pennsylvania

Maryland Connecticut Rhode Island Massachusetts

33

YEARS

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Recent Transfer of Auto Body Lawsuits to Florida Causes Concern in Industry by Stacey Phillips, Assistant Editor

(MDL) filed by auto body shops against insurers in 2014.

There is a growing concern in the colSee Concern in Industry, Page 26 lision repair industry about two key lawsuits States Part of MDL or About to File recently transferred to the Middle District of Florida. Some reports have indicated that the lawsuits have been consolidated, but that’s not the case. Courts have ruled they will be included in the pretrial hearings of the antitrust Blue States: Already Filed Red States: About to File multidistrict litigation

Top 2015 Body Shop Resolutions Suggested by 3M™

ance and the ability to repair the advanced materials found on today’s new vehicles. Here are the top five resolutions you might want to consider as you plan for 2015, courtesy of 3M Automotive Aftermarket, which work with thousands of body shops across the country to help improve performance and profitability.

Resolution #1 – Make more money in the paint booth! The paint booth is frequently the leading culprit when it comes to waste in the body shop. From solvent waste, paint waste and wasted time for cleanSee Top 2015 Resolutions, Page 14

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Improve Profitability, Increase Productivity, Reduce Rework and Get Ready for Advanced Materials. New Year is the Ideal Time to Implement New Solutions and Systems to Drive Your Shop Success Many New Year’s resolutions involve your health, like getting in shape, eating healthier or reducing the stress in your life. But are you making New Year’s resolutions that improve the health of your body SHOP? Changes in the tools, solutions and systems that you are using in your body shop can have a significant impact on your shop’s performance in the year ahead – from productivity to margin improvement, KPI perform-

VOL. 4 ISSUE 11 FEBRUARY 2015

Blauvelt, NY, Body Shop Destroyed by Fire More than 60 volunteer firefighters battled a stubborn, gas-fueled fire on NY’s Route 303 that destroyed an auto body shop and severely damaged several cars inside. Blauvelt Fire Chief Dave Schnitzer said no one was injured after the blaze broke out at George’s Auto Body about 8 a.m. on Jan. 17. “I wasn’t even on the scene and I was able to see the flames so I knew the fire was moving quickly,” Schnitzer said. Fire officials said the auto body shop was home to gasoline cans, tires and other materials that added danger to the situation. Blauvelt, Central Nyack and Orangeburg firefighters immediately went into action, working against the bitter cold and occasional, small explosion to attack the flames. They soon were aided by volunteers from the Pearl River, Tappan, West Nyack and Valley Cottage fire departments. Schnitzer said the older, two-story building was large, requiring firefighters to tap hydrants at two locations. Conditions were made more difficult because a gas line inside was feeding the flames.

“The gas was fueling the fire to the second floor and that made things more complicated,” the chief said. “This was a big commercial fire and you can only have your guys cold and wet for so long so we had to rehab and rotate them through.” It took about an hour to control the flames, during which time firefighters routinely had their blood and oxygen levels checked for any signs of chemical exposure. Mike Bettmann, Orangetown fire inspector, said an owner of the shop was working on one of the cars when he accidentally ignited the fire. “Because the car was so close to gas meter inside the building, the gas meter got compromised and that’s what helped the fire get so large so quickly,” Bettmann said. Schnitzer said damage to the shop at 579 Route 303 was extensive and that several cars inside were exposed to extreme heat and flames. The South Orangetown Ambulance Corps and Orangetown police also responded to the scene, which was completely cleared by about noon.

Collision Repair Industry Associations Make Their 2015 New Year’s Resolutions by Chasidy Rae Sisk

For most people, New Year’s Eve is a time to reflect on the past year and make resolutions for the incoming year. Collision repair industry associations have also started preparing for next years by setting their sights on what they can do to improve the industry for their members. Several association leaders shared their New Year’s Resolutions for 2015 with Autobody News. In 2015, Howard Batchelor, Executive Director of the Georgia Collision Industry Association (GCIA), hopes to “have a better working relationship with insurance companies. Insurers are in the business to sell policies and settle claims. They should

allow the collision center that has the training and OE recommended repairer processes to repair these vehicles in a proper manner since the repairer has their name on the repair and should not be interfered with in making repair decisions.” For the Independent Damage Appraisers Association (IADA), “our New Year’s resolution is to try and increase membership, making sure we recruit and approve only the most experienced firms with advanced technical skills. We also plan to hold repair seminars to make sure our members are properly trained to identify and appraise damages to the everincreasing high tech vehicles. We have selected Charlotte, NC as the site See New Year’s Resolutions, Page 20

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


2 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com


Contents

Mercury Insurance Ordered by California’s Insurance Commissioner to Pay $27.5 Million Fine NATIONAL

Boyertown Museum of Historic Vehicles in

A Father’s Dying Wish Coming True: Manteno

Blauvelt, NY, Body Shop Destroyed by Fire . . . . . 1 PA Celebrates its 50-Year Anniversary . . . . . 10

2015 Vehicle Lifting Points Guide Now Available . 62 Auto Body Man Steps up to Save a ‘Cuda’ . . 61

Car Dealership in CT Taken Over by Mitchell

A Lean Process Helps Shops Become

Female Shaler, PA, Tow Truck Driver Excels

AudaExplore Technology Driving Performance

James Bryant and Guy Citro Remembered

Axalta Launches ‘Color Block’ Blog . . . . . . . . . 56

in Male-Dominated Profession . . . . . . . . . . . . 6 by AASP/NJ . . . . . . . . . . . . . . . . . . . . . . . . 16

Mercedes to Move U.S. Headquarters

More Efficient and Profitable . . . . . . . . . . . . 36 in Collision Repair Shops . . . . . . . . . . . . . . 58

Cesar Lopez Responds to Criticism

and Charges . . . . . . . . . . . . . . . . . . . . . . . . 46

From New Jersey to Georgia . . . . . . . . . . . . 62

Collision Repair Industry Associations Make

for Role in Fraud . . . . . . . . . . . . . . . . . . . . . 15

Collision Repair Shops Brace for Challenges

& Assault . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Detroit News Reports New F-150 Insurance

New Jersey Insurance Adjuster Gets Prison NJ Shop Employee Indicted for Kidnapping NJ Small Business Development Centers

Network Honors Paterson Body Shop . . . . . . 4

Norwalker Man Arrested for Body Shop Trespass . 6

NY Attorney General Announces Arrests in

Staged Auto Accident Ring . . . . . . . . . . . . . . 4

Their 2015 New Year’s Resolutions . . . . . . . . 1 of Aluminum Bodywork . . . . . . . . . . . . . . . . 28 Costs are Unclear but Likely Marginally

Higher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

El Paso Body Shops Respond to Charges

Against Neighboring Shop for Deceptive

Trade Practices . . . . . . . . . . . . . . . . . . . . . . 22

NY Industry Associations Introduce Crash Parts

Fake Drivers’ License ‘Ringleader’ Sentenced

Penske Opens PA Truck Collision Repair Center . 8

Fix Auto to Hold Annual Conference

Disclosure and Consent Bill . . . . . . . . . . . . . 18

Preston Ford in Maryland Places 72nd in

to 6 Years . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Sept. 20–23 . . . . . . . . . . . . . . . . . . . . . . . . 52

the Nation by Sales as Ford Dealer. . . . . . . . 10

Fix Auto USA Mourns Passing of Industry

Reports it Stolen . . . . . . . . . . . . . . . . . . . . . 30

Forward Lift Redesigns Website to Help Users

in “Black Box” Data . . . . . . . . . . . . . . . . . . . . 9

From Grandma’s Vacuum to Serious Spray

Auto Body in PA . . . . . . . . . . . . . . . . . . . . . 10

GCIA Met on DEG; Plans Golf Tournament

Star-Studded Event . . . . . . . . . . . . . . . . . . . 27

Maaco President Goes “Under the Hood”

Princeton Man Forgets Car at Repair Shop, Proposed NJ Legislation to Protect Privacy Service King Acquires Grand Sport

Shamrock Auto Collision in PA Hosts Shults Auto Dealership in PA in Final

Stage of Reconstruction . . . . . . . . . . . . . . . 21

Veteran Tim Clark at 62 . . . . . . . . . . . . . . . . 30

Find Vehicle Lifts and Accessories. . . . . . . . 49

Finishing Technology: Turbospray HVLP. . . . 42

October 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 60 to Inspect His Business on Award-Winning

Reality Series . . . . . . . . . . . . . . . . . . . . . . . 54

Single Disabled Suffolk County Mom Receives Life

Mercury Insurance Ordered by CA Insurance

Sisk - Final Appeal in CT Hartford Case:

OSHA Tops 3000 Whistleblower Cases

Changing Gift: Wheelchair Accessible Van . . 18 the Hartford Seeks to Overthrow

Commissioner to Pay $27.5 Million Fine . . . . 3 for First Time. . . . . . . . . . . . . . . . . . . . . . . . 52

$35Million Verdict . . . . . . . . . . . . . . . . . . . . 46

Recent Transfer of Auto Body Lawsuits to

Homes for Homeless: “Building Lives, Not

RUPES Brings Collision Repair Tools to U.S.

Sisk - NY Auto Body Shop Owner Develops Tiny

Just Houses” . . . . . . . . . . . . . . . . . . . . . . . 34

Florida Causes Concern in Industry . . . . . . . . 1

Through Acquisition of Cyclo Toolmakers . . 57

Vehicular Pipeline Distributing Heroin from Mexico

SCRS Open Meeting January 14 in

Website Finds NJ Drivers Better than PA, NY & DE . 9

Top 2015 Body Shop Resolutions

COLUMNISTS

Top Honors from IIHS Have Nearly Doubled

to Long Island Taken Down by NY Officials . . 8

Attanasio - Accident App is Pushing All the

Palm Springs, CA . . . . . . . . . . . . . . . . . . . . 53

Suggested by 3M™. . . . . . . . . . . . . . . . . . . . 1

Since 2013 . . . . . . . . . . . . . . . . . . . . . . . . . 52

Right Buttons for Ohio Shop Owner . . . . . . . 50

Two New Aston Martin Dealerships

Improve the Bottom Line? . . . . . . . . . . . . . . 44

VeriFacts Celebrates 3 Million Coaching

Attanasio - Does Being a Green Shop

Franklin - Re-Structuring For Renewal . . . . . . . 38

Yoswick - Retro News: CA’s BAR Talks About

Fraud, ‘Internet Body Shopping’ in OH, DiLisio

on Getting Involved, Edelen on Skills Erosion . 40

Open in US . . . . . . . . . . . . . . . . . . . . . . . . . 53

Observation Milestone . . . . . . . . . . . . . . . . . 49

Volkswagen to Add 100 Dealerships by 2018, 650 Current Dealerships are

Fewest of Major Brands . . . . . . . . . . . . . . . . 16

commensurate with the amount of money that was unlawfully collected from Mercury policyholders.” The commissioner’s decision comes after an exhaustive process that included a full evidentiary hearing conducted by an administrative law judge. The hearing included 15 days of testimony, extensive exhibits and legal briefs. The administrative law judge found that there were at least 180,000 transactions in which Mercury auto policyholders were charged fees that had not been approved. After all of the evidence and legal arguments were considered, the independent administrative law judge recommended the commissioner impose the $27.5 million fine on Mercury. Brokers are allowed to charge fees. But in this case, those who were identified as brokers were actually functioning as agents, and therefore, their fees had to be filed as part of Mercury’s rate filing and approved by the commissioner, which Mercury failed to do.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Indexof Advertisers

Auto Group . . . . . . . . . . . . . . . . . . . . . . . . . 52

California Insurance Commissioner Dave Jones ordered Mercury Insurance to pay a fine of $27,593,562 million because the company’s auto insurance consumers were charged unapproved “broker fees.” Mercury did not obtain the commissioner’s approval for the “broker fees” and so consumers paid more than the approved rates. Proposition 103, passed by the voters in 1988, prevents auto insurers from charging excessive rates and requires that rates be approved by the commissioner. Despite being advised against doing so by the Department of Insurance, from 1999 through 2004, Mercury’s insurance agents charged and collected these unapproved fees on more than 180,000 transactions, improperly collecting $27,593,562 million from consumers. “Mercury auto insurance consumers paid $27.5 million in unapproved fees,” said Commissioner Jones. “While the $27.5 million fine against Mercury is significant, it is

Acura of Westchester . . . . . . . . . . 46 Amato Agency. . . . . . . . . . . . . . . . 38 Assured Performance . . . . . . . . . . 22 Atlantic Hyundai . . . . . . . . . . . . . . 41 Audi Wholesale Parts Dealers. . . . 51 Axalta Coating Systems . . . . . . . . . 2 B & R Associates. . . . . . . . . . . . . . 14 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 30 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 24 BMW Wholesale Parts Dealers . . . 43 Car-Part.com . . . . . . . . . . . . . . . . . 26 CarcoonAmerica Airflow Systems . 48 CCC Information Services. . . . . . . 13 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . 15 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 31 Classifieds . . . . . . . . . . . . . . . . . . . 62 Clay Auto Group . . . . . . . . . . . . . . 63 Colours, Inc . . . . . . . . . . . . . . . . . . 12 Ditschman/Flemington Auto Group. 19 Eco Repair Systems of North America, LLC. . . . . . . . . . . 9 Empire Auto Parts . . . . . . . . . . . . . 16 Equalizer Industries, Inc . . . . . . . . 26 Fairfield Chrysler-Jeep-Dodge-Ram . 21 First Auto Group . . . . . . . . . . . . . . 49 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 45 Ford Wholesale Parts Dealers. . . . 56 Fred Beans Parts. . . . . . . . . . . . . . 64 Gary Rome Hyundai-Kia . . . . . . . . 36 Glanzmann Subaru . . . . . . . . . . . . 35 GM Wholesale Parts Dealers . . . . 57 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers . 53

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts 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. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL

Imperial Ford-Chrysler . . . . . . . . . 18 Infiniti of Norwood . . . . . . . . . . . . . 34 Jaguar Wholesale Parts Dealers. . 60 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 47 Koeppel VW-Mazda. . . . . . . . . . . . 44 Lexus Wholesale Parts Dealers. . . 58 Martech Services Company . . . . . 10 Maxon Hyundai . . . . . . . . . . . . . . . 20 Maxon Mazda . . . . . . . . . . . . . . . . 40 Mazda Wholesale Parts Dealers . . 61 Mercedes-Benz . . . . . . . . . . . . . . . . 5 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . 8 Mercedes-Benz of West Chester . . 8 MINI Wholesale Parts Dealers. . . . 42 MOPAR Wholesale Parts Dealers . 37 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 56 Paul Miller Audi . . . . . . . . . . . . . . . 29 Porsche Wholesale Parts Dealers . 52 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . 6 Replica Plastics . . . . . . . . . . . . . . . . 4 SATA Spray Equipment . . . . . . . . 11 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers . 55 Tasca Automotive Group. . . . . . . . 25 Thompson Organization . . . . . . . . 39 Toyota Wholesale Parts Dealers . . 60 Valspar Automotive . . . . . . . . . . . . 17 VIP Honda . . . . . . . . . . . . . . . . . . . 27 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 59 Volvo Wholesale Parts Dealers . . . 54 Wagner Auto Group . . . . . . . . . . . 23 Wheel Collision Center . . . . . . . . . 28 Yonkers Kia . . . . . . . . . . . . . . . . . . 50

www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 3


NY Attorney General Announces Arrests in Staged Auto Accident Ring New York Attorney General Eric T. Schneiderman announced the arrests of five individuals for their alleged roles staging automobile accidents in Nassau and Suffolk counties to fraudulently receive insurance payouts totaling more than $100,000. The defendants, including alleged ringleader Jean Guilberto, allegedly rented U-Haul trucks and intentionally crashed into cars loaded with participants, who were then directed to be treated for fictitious injuries at a medical clinic in Freeport. As a result of the three fake accidents and falsely reported injuries, the defendants are also charged with submitting fraudulent insurance claims, totaling more than $100,000. The defendants are charged with Insurance Fraud in the Third Degree (a class D felony), Grand Larceny in the Third Degree (a class D felony), and Falsifying Business Records in the First Degree (a class E felony). If convicted, Guilberto faces up to 21 years in prison. The defendants conspired to create three staged accidents between October 2010 and June 2011. The accidents were allegedly organized by Guilberto, who allegedly recruited the U-Haul drivers and the occupants of the second vehicle with promises of cash payments or lu-

crative personal injury settlements. After they staged the accidents, the defendants allegedly lied to the responding police officers and pretended that the accident had been real. Once directed to Freeport Medical following the accidents, these defendants allegedly filled out insurance forms that included false information about the accident and the defendants’ purported soft tissue injuries. Based on the fraudulent claims of injury, Freeport Medical billed insurance carriers over $25,000 for each accident. In New York State, a person injured in a motor vehicle accident is automatically covered by the Comprehensive Motor Vehicle Insurance Reparations Act, commonly referred to as the NoFault law. No-Fault insurance carriers are required to provide reimbursement for a wide range of medical and health services for injuries related to car accidents, up to $50,000 per person. In addition to medical coverage, a victim in a motor vehicle accident may be eligible to recover money from an insurance carrier for a bodily injury lawsuit stemming from injuries resulting from the accident. The three accidents were arraigned before Justice William C. Donnino in Nassau County Court were as follows:

NJ Small Business Development Centers Network Honors Paterson Body Shop

The New Jersey Small Business Development Centers network honored its small business clients who have achieved strong growth and are passionate about what they do at The Annual Small Business Growth Success Awards luncheon on Dec. 5 at the Forsgate Country Club, Monroe Township. Mario’s Classic Auto Body in Paterson was one of 13 recipients throughout the state of NJ. “[Mario’s] is a successful auto body repair company in business for more than 20 years that stresses being eco-friendly,” according to the New Jersey Small Business Development Centers Network. During the luncheon, Mario spoke passionately about his career. “I’m an Italian immigrant with a high school diploma. I am living the American dream,” he said. The other 12 Success Awards were earned by:

● Tap Factory, LLC (Taseen Peterson, Mark Petersen, Cameron Smith) ● Optimal Solutions, Inc. (Vijay

Hanagandi, Ph.D., CEO)

● Glazer Promos, LLC (Trish Glazer, President/Owner)

● Shore Cake Supply, LLC (Jennifer K. Welter) ● Technical Integration Services, LLC (Shawn and Brian McDonough) ● Healthy Balance (Jane Bowers)

● Advanced Built Structures, Inc. (Deidre McCarthy)

● Pilani’s Woman’s Boutique Stores (Bharat and Pallavi Aggarwal)

● Shade Environmental, LLC (Diana and William Lynch)

● The Mavins Group, LLC. (Susan Devaney, CEO)

● A. Harrington Limousine Service, Inc. (Jonathan Wilner, President/CEO) ● AJ Cleanness Corporation (Alvaro Lopez)

4 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

● An accident dated October 30, 2010, at the intersection of Brook Avenue and Mildred Avenue in Bay Shore, in which a U-Haul truck rear-ended a Mitsubishi; ● An accident dated December 19, 2010, at the intersection of Patton Avenue and East Little Neck Road in Babylon, in which a U-Haul truck sideswiped a Chevrolet; and; ● An accident dated June 29, 2011, at the intersection of Milburne Avenue and Harold Avenue in Hempstead, in which a U-Haul truck rear-ended a Toyota.

The following defendants are charged in the indictments: ● Jean Guilberto, 35, of Wyandanch, the alleged organizer of the three staged accidents, is charged with three counts of Insurance Fraud in the Third Degree and three counts of Grand Larceny in the Third Degree; ● Jahmari Monroe, 27, of Bronx, driver of the U-Haul in the October 30, 2010 accident, is charged with one count of Insurance Fraud in the Third Degree and one count of Grand Larceny in the Third Degree; ● Troy Russell, 32, of Amityville, driver of the U-Haul in the December 19, 2010 accident, is charged with one count of Insurance Fraud in the Third Degree and one count of Grand Lar-

ceny in the Third Degree; ● Alecia Holland, 38, of Wyandanch, a passenger in the car struck by the UHaul in the December 19, 2010 accident, is charged with one count of Insurance Fraud in the Third Degree, one count of Grand Larceny in the Third Degree, and one count of Falsifying Business Records in the First Degree; and ● Larry Henley, 46, of Uniondale, driver of the U-Haul in the June 29, 2011 accident, is charged with one count of Insurance Fraud in the Third Degree and one count of Grand Larceny in the Third Degree.

If convicted, defendant Guilberto faces up to 21 years in prison, and the remaining defendants face up to seven years in prison. The charges against the defendants are merely accusations, and the defendants are presumed innocent until and unless proven guilty. Guilberto is currently in custody on $5,000 cash over a $2,500 bond on each indictment; Russell is in custody on a $5,000 bond over $2,500 cash bail; and Henley is in custody on a $2,500 bond over $1,500 cash. Monroe and Holland were released on their own recognizance. Judge Donnino ordered that all defendants surrender their passports.


www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 5


Female Shaler, PA, Tow Truck Driver Excels in Male-Dominated Profession by Deborah Deasy, triblive.com

Petite Lauren Kish routinely surprises stranded motorists. “As soon as I get out of my truck, I usually hear, ‘I wasn’t expecting to see a woman,’ “ said Kish, 31, the only female tow truck driver employed by Jeff Critchlow Auto Body Inc. in Shaler, PA. “I expected some burly guy,” drivers often tell the 5-foot-4-inch, 125pound Kish. Formerly Lauren Ganster, a 2001 graduate of Shaler Area High School, Kish first towed cars for former Rick’s Towing on Route 8 in Shaler. Kish now answers AAA members’ calls for roadside assistance in several townships and boroughs, including Cranberry, Mars, Richland, Hampton, Shaler, Etna, Millvale, Fox Chapel, Indiana Township, Marshall and Bradford Woods. “We get a lot of compliments with Lauren,” said her boss, Robert “Woody” Woodrick, manager of towing operations for Jeff Critchlow Auto Body. “People call here, and people call AAA,” he said. Kish is the only child of Ellen and Tom Ganster of Shaler. “She’s a good tow truck driver,” said Rich Leo, owner of the Rich Leo Garage on Route 8. As a high school student, Kish

initially worked in the office at former Rick’s Towing in Shaler and thought, “I don’t want to be in here. I want to be outside,” she said.

Lauren Kish, 31, handles calls in Cranberry, Mars, Richland, Hampton, Shaler, Etna, Millvale, Fox Chapel, Indiana Township, Marshall Township and Bradford Woods. In 12 years as a female in a male-dominated profession, she has towed a Pittsburgh Steeler's BMW, driven a stranded motorist home to Ohio, and has even politely turned down marriage proposals. Photo courtesy Deborah Deasy, triblive.com

Kish then got her wish and “big break” from Rick Genser, who operated Rick’s Towing, where Kish’s father once worked, too. “We did police calls,” Kish said about Genser’s towing operation. “He

Norwalker Man Arrested for Body Shop Trespass

A 20-year-old man was arrested for the third time in a week on New Year’s Day for allegedly throwing his brother’s laptop out of a secondstory window during a fight, according to Steve Kobak at thehour.com. Charged with criminal mischief and disorderly conduct, Alexander Louis was held on $5,000 bond and arraigned Jan. 2 at Norwalk Superior Court in Connecticut. Louis’s latest arrest came after police responded to a domestic dispute at his residence on Jan. 1. Louis got into an argument with his brother over the usage of his mother’s car and tried to drag his brother outside of the home, police said. When he failed, Louis wound up throwing a laptop out of a second floor window, police said. He then exited the house and began to kick and spit on one of the doors outside of the house, according to police. Louis was arrested on Christmas Day for interfering with an officer. He was arrested for trespassing at Coating’s Auto Body after opening doors to numerous cars parked at the mechanic’s shop, police said. Employees of the auto body shop initially thought he was a burglar. Louis told officers he was simply making

sure all the vehicles were locked and when he found an unlocked door, he locked it, police said. After reviewing the security footage, police said Louis did not enter any of the cars or go through any of the belongings in the car. The footage showed that once he opened the door of an unlocked car, he would lock it and move to the next car, according to police. Louis also triggered a police response on Oct. 9, 2014 after entering a Derby Road home and fleeing upon spotting the occupants of the home at 2:22 p.m. on Thursday. While police were responding to the incident, a Scribner Avenue resident flagged down an officer and said a male tried to enter her home and was still near the scene, police said. The officer caught up with Louis and tried to handcuff him, but he slipped out of the officer’s grip and ran, police said. Police set up a perimeter in the area of Gillies Lane and Scribner Avenue and found Louis in a wooded area off of Ledgebrook Drive.

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6 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

actually gave me the opportunity to be on call. … The first time I was in a tow truck to do a call, I was by myself. … It was a wreck at Route 8 and Burchfield Road. … I actually learned more, hands on, than anything.” Kish became Critchlow Auto Body’s only female tow truck driver in April 2013 after a former co-worker from Rick’s Towing went to work for Jeff Critchlow and then called Kish to ask if she wanted to drive again. “I remember the hell that came with it,” she said. “But I said, ‘Sure, why not?’” Kish previously worked at the former Plum site of Recovery America, where her duties included hauling repossessed cars to the Manheim auto auction in Butler County. Kish also used to work at the WalMart Tire & Lube Express in Richland, where she met her husband, Matt, who works for Autopart International in Ross. After years of rescuing cars that won’t start, Kish often can diagnose the problem. “When you get that one, telltale click, that’s usually a starter that’s going bad,” she said. “If you turn the key and you get that rapid click, it’s a battery.” Kish said she hates working in rain but doesn’t mind being outside in cold weather.

What she likes about her job is being on the road and talking with the people she meets on calls. “I love driving,” she said. “It’s a good feeling, knowing that you’re there to help them.” Kish drives a gleaming copper-colored Dodge Charger to work and packs coveralls, a variety of gloves, an extra sweatshirt and snacks for unexpected long days. Last summer, the extra food came in handy. “A guy broke down on I-79, and I had to drive him home to Ohio,” she said. The scariest part of her job is “loading cars on the side of a highway,” Kish said, “because there’s only so much room between the white line and the guard rail.” Has she towed any well-known Pittsburghers? “I had to tow one of the Steelers up in Cranberry. I don’t remember his name,” she said. “I had to tow his BMW.” We thank triblive.com for permission to reprint their article.

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Vehicular Pipeline Distributing Heroin from Mexico to Long Island Taken Down by NY Officials

Nassau County District Attorney Kathleen Rice was joined by Nassau County Executive Edward Mangano and city and federal officials to announce the dismantling of a multi-million dollar illegal drug pipeline which ran directly from Mexico to Long Island as part of an investigation involving local, state and federal law enforcement. The pipeline trafficked in several million dollars’ worth of heroin in the New York area, as well as cocaine, MDMA (a/k/a ecstasy or molly) and anabolic steroids sold via Craigslist. Nine defendants from Mexico, California, Brooklyn, the Bronx and Queens have been indicted and arrested as part an ongoing investigation. Investigators tracked the source of heroin being sold by two defendants in Nassau back to a drug pipeline centered around Bronx resident Cesar RomeroAstudillo, also known as “Menor.” Romero-Astudillo led a drug trafficking network that funneled narcotics by vehicles driven from Mexico and inside “mules” flying from California—all destined for New York City and Long Island to fuel a deepening epidemic of heroin. “This case proves that the battle lines in our fight to save lives in the

midst of a devastating heroin epidemic don’t end at any border. We tracked the supply of narcotics entering our region from the source, and in the process, dismantled a drug trafficking network that stretched from Mexico to New York,” DA Rice said. “This case sends a strong message that those who profit from a drug trade causing misery and death for so many will be held accountable at every level of our criminal justice system. I want to thank the Office of the Special Narcotics Prosecutor, the Drug Enforcement Task Force, and the Nassau County Police Department for their diligent efforts to help bring these defendants to justice.” New York City’s Special Narcotics Prosecutor Bridget G. Brennan said, “Staunching the deluge of heroin flowing to the New York area from Mexico will require an all hands on effort by local, state and federal law enforcement. This case is an example of successful collaboration. The leadership of Nassau District Attorney Kathleen Rice is greatly appreciated.” DEA Special Agent in Charge James J. Hunt said, “The nation is being besieged by heroin—over a twoyear period U.S. heroin overdose deaths have more than doubled. Like rubbing salt in the wound, Cesar Romero As-

tudillo’s drug crew pushed heroin throughout the streets of NYC and Nassau County feeding heroin abuse in our communities. Today’s announcement exemplifies drug law enforcement’s efforts to identify and arrest those responsible at all levels of the distribution chain.” Jose Zambrano, 38, of Astoria, and Miguel Tormo, 42, of Astoria, face Nassau County grand jury charges of Criminal Sale of a Controlled Substance in the 1st Degree (an A-I felony) and Criminal Sale of a Controlled Substance in the 3rd Degree (a B felony). Carter was also charged with additional counts of Criminal Sale of a Controlled Substance in the 1st Degree and Criminal Sale of a Controlled Substance in the 3rd Degree. Nassau County Court Judge Teresa Corrigan set bail for Carter and Tormo at $5 million bond or $2.5 million cash. If convicted of the top charges, Carter faces a maximum sentence of 40 years in prison and Tormo faces a maximum sentence of 20 years in prison. They were due back in court on Jan. 8, 2015. The following were also arrested and indicted: Cesar Romero-Astudillo, Luis Alberto Mendoza Rosas, Carlos Reyes, Santiago Juela, Vincent Belmontes and two other defendants.

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Penske Opens PA Truck Collision Repair Center

Penske Truck Leasing added the company’s 18th North America truck collision repair center in the Philadelphia suburb of Fairless Hills, PA. Located at 225 Newbold Road, it is Pens’s second repair center in the Keystone State. “The facility serves the needs of Penske’s truck fleet and contract customers, as well as commercial truck fleets,” said James Svaasand, Penske’s Vice President of Collision Repair. The center does collision, box and trailer repairs, complete vehicle refinishing, and frame and alignment work for commercial trucks and vehicles. The 14,000-square-foot building is placed on four acres and utilizes light fixtures that reduce energy use by 50 percent. Hours are Monday through Friday, from 8 am to 5 pm. For more information, call 215-9712020. The structure contains a high-efficiency paint spray booth that greatly filters emissions. This booth employs smart technology that minimizes energy and fuel consumption, housing a high-tech air filtration system. Penske is expected to hire nine new associates—six technicians and three administrative positions.

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Proposed NJ Legislation to Protect Privacy in “Black Box” Data With the advent of airbag safety systems in the 1970s, auto manufacturers seeking to improve their effectiveness began to analyze data from embedded computer systems within the car. These computers capture vital information about automobile functioning and driver activity related to airbag deployment. “Flight data recorders” or “black boxes” in the airline and automobile industry monitor and record data points related to the operation and function of the vehicle before and after the crash. This data, including speed, acceleration, braking, lights, turn signals, and seat belts, has now become a critical—and sometimes definitive—tool in accident investigations. With the National Highway Traffic Safety Administration (NHTSA) now requiring this technology in almost all newly-manufactured vehicles, New Jersey recently introduced legislation to protect the car owner’s privacy. That is, unless the data collected by these devices was needed in a criminal investigation. This legislation would also make it illegal for anyone, including a driver or owner, to destroy or alter the data in the aftermath of an accident. Although NJ’s appellate courts have not yet ruled on the scientific reliability of these devices, data from EDRs

is increasingly used in litigation and prosecutions arising out of automobile collisions. Therefore, this proposed bill takes steps to begin to control when and how the information can be obtained. An EDR records in a continuous loop of up to 20-second intervals (depending on the manufacturer), recording over itself until it encounters a “deployment event” or “near deployment event” significant enough to “awaken” the air bag device. When such an event occurs, the EDR freezes and stores the information leading up to any collision significant enough to trigger the airbag or alert the recorder to store the data. The data stored by the EDR is retrieved through use of a computer software program or crash data retrieval system (CDR), which downloads the information. Prior to 2000, the CDR software programs were proprietary to the manufacturer, but many of the retrieval programs are now publicly available, allowing anyone, including police and private experts, to extract the information. The EDR data is then analyzed and compared to the physical evidence related to the triggering event for accuracy. The growing desire to utilize EDR information in accidents has prompted questions regarding who owns the data stored in an EDR and, in turn, how the

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data may be obtained and for what purpose. The prevailing view, however, including that of the NHTSA, places propriety rights in the hands of the vehicle’s owner. The next question then becomes whether the owner has a reasonable expectation of privacy in the data and, if so, how that privacy interest can be protected from those seeking to obtain that information. The only reported NJ decision on the subject of event data recorders, State v. Shabazz, 400 N.J. Super. 203 (Law. Div. 2005), recognized a privacy interest in EDR data. The Shabazz court upheld the extraction of that information by law enforcement pursuant to a search warrant and permitted its use against a defendant automobile owner/driver in a vehicular homicide trial. Given that NJ’s Constitution demands exigent circumstances to conduct warrantless automobile searches, law enforcement in this state must seek warrants to extract the data. The pending legislation would leave no room for doubt that the data belongs to the vehicle’s owner and the police may not access this information without a legitimate warrant. The new bill would only allow this information to be pursued through court order, giving the vehicle owner notice and the opportunity to challenge the request.

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Website Finds NJ Drivers Better than PA, NY & DE

Despite the negative stereotypes thatNew Jersey drivers have been pegged with, recent rankings by carinsurancecomparison.com show that Pennsylvania, New York, and Delaware drivers are even worse. Drivers in the 50 states were listed from worst to best based on an accumulation of points in five categories: the fatalities rate per 100 million miles traveled, failure to obey traffic signals and laws, drunk driving, speeding and careless driving, according to Sarah Peters, lehighvalleylive.com. States with the lowest scores have the worst drivers. Pennsylvania held the lowest score out of the bunch, with 110 total points, ranking 15th. New Jersey maintained 160 points, ranking surprisingly high at number 40. New Jersey’s problem area was careless driving, which is based on pedestrian and bicyclist fatalities per 100,000 people, Peters reported. Tied for 31st place, New York drivers scored low for alcohol-related crashes resulting in fatality. To view your state’s ranking, visit http://www.carinsurancecomparison.com/which-states-have-theworst-drivers/

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Preston Ford in Maryland Places 72nd in the Nation by Sales as Ford Dealer

During 2014, Preston Ford in Maryland became the 72nd Ford Dealer in the Nation by sales. Out of roughly 3,300 Ford dealerships in the U.S., this marks the 4th time in five years that Preston Ford was able to rank in the Top 100. Previously, Preston Ford was able to finish 93rd in 2010, 89th in 2011, and 90th in 2013 in Ford sales. Sitting outside of a town with about 803 people, Preston Ford owes their success to their local buyers and to Ford buyers from over 18 states in December alone. The Top 100 Sales drive has been running for the past five years and has brought much success for Preston Ford. David Wilson Jr. began the Mission Possible sales event where they set goals and objectives for the month of December for their store to achieve. These goals were to be #1 in the region and a Top 10 Ford Dealer for the month of December. Each year the dealer has been able to achieve these goals and this year Preston Ford ended up as #1 in the Washington D.C. Region and 5th Ford Dealer in the U.S. for December 2014. “The final month of the year is always the busiest time of year for us,” says Dave Wilson Sr., President

of Preston Automotive Group, “The showroom fills up and everyone is busy with two or three deals at once. You can feel the excitement and energy; I love this time of year.” This past December, Preston Ford was able to sell 444 new Fords. Their marketing strategy included deep price discounts and a huge build-up of new Ford inventory. However, it was the local community’s support that helped them skyrocket December sales. Top sellers during 2014 and December were the 2014 Ford F-150, 2014/2015 Ford Explorer, 2014/2015 Ford Fusion, and 2014/2015 Ford Escape. So what’s next for Preston Ford? “2014 was our best finish yet and I think what is next is to continue with the largest Ford inventory on the East Coast, keeping our prices the lowest, and providing our customers with the best buying experience of any dealership,” says David Wilson Jr, Vice President of Preston Automotive Group. The dealership plans to be just as successful in 2015. Ford Motor Company recently introduced new 2015 models that are expected to raise sales over the next year. The all-new 2015 Ford F-150 is currently at Preston Ford with more inventory on the way.

Service King Acquires Grand Sport Auto Body in PA

Service King Collision Repair Centers announced on January 5 it has acquired Grand Sport Auto Body, a multi-location collision repair operator in Philadelphia, PA. Grand Sport Auto Body operates eight facilities, which will greatly increase Servive King’s prominence in the northeast. Service King now offers its services and written lifetime warranty to 12 locations in the Philadelphia market. “We are extremely proud to welcome Grand Sport’s teammates into the Service King family,” said Jerod Guerin, Service King Regional Vice President of Northeast Operations. “Founder and current owner, Fred Gunther has built a great business centered around his very talented team and we plan to use this foundation as a platform for our continued expansion throughout the Northeast.” Gunther founded Grand Sport Auto Body in 1982 before spreading to the Chester and Montgomery counties in Philadelphia. Today, Grand Sport Auto Body serves customers in West Chester, Malvern, Chester Springs, Downingtown, Parkesburg, Collegeville and Exton.

“In our 32 years of business we have strived to take care of and develop three core relationships: one with our customers, one with our industry partners, and most importantly, our teammates,” said Gunther. “As our teammates are the lifeblood of any successful business, it was paramount that this value was consistent. I feel confident in Service King’s core values, their ethical presence in the industry and their commitment to their teammates and customers, which made this a perfect fit.” Service King’s acquisition of Grand Sport Auto Body officially closed on Jan. 2. For more information and to view a full list of Service King locations and services, visit www.ServiceKing.com.

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Boyertown Museum of Historic Vehicles in PA Celebrates its 50-Year Anniversary The Boyertown Museum of Historic Vehicles in PA will celebrate its 50th anniversary with a year-long series of events highlighting the region’s transportation history, according to Ron Devlin, readingeagle.com. The museum kicked off its celebration with a Golden Anniversary Gala on Jan. 17. Paul and Erminie Hafer founded the museum in 1965 with a vision of displaying vehicles that had Berks County origins, according to Devlin. Soon after it opened on Dec. 12, 1965, the museum’s geographic scope grew to include all of southeastern PA. The Hafers collected a wide variety of vehicles, including horsedrawn sleighs and carriages, bicycles, trucks and cars. In all, more than 80 vintage vehicles are included in the collection. Originally housed in a former Boyertown Auto Body Works building on Warwick Street, the museum relocated to another section of the complex on Walnut Street in 2001. At the outset, the museum displayed vehicles in the Hafers’ personal collection. Later, other collectors contributed historic vehicles, according to Devlin.

Devlin said the collection has expanded to include icons of roadside America: a cottage-style 1921 Sunoco gas station that once operated in Strausstown and a 1938 Jerry O’Mahony diner that once formed the hub of Fegely’s Family Restaurant in Exeter Township. An 1827 Conestoga wagon built in Bernville, a 1923 Ace motorcycle and a 1918 Biddle roadster from Philadelphia have been recently acquired. The most recent addition, a 1940 Bantam convertible, Devlin said was built in Butler, near Pittsburgh. It is the first piece in the collection that originates from the western half of the state. As part of its golden anniversary celebration, the museum is planning special events for the third Saturday of each month. Included are a food truck fair and a 1960s cruise. Official dates will be announced. Museum hours are Tuesdays through Sundays from 9:30 a.m. to 4 p.m., except major holidays. Admission is $6 for adults, $5 for seniors and AAA members and $4 for students. Children under 5 are admitted free.

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Detroit News Reports New F-150 Insurance Costs are Unclear but Likely Marginally Higher

About 8,000 aluminum-bodied F-150s are on their way to dealer lots, but it still may be too early to tell if the lightweight material will mean higher insurance costs for buyers of Ford Motor Co.’s latest pickup, says Michael Martinez, writing in the Detroit News When news broke that the 2015 truck would have an aluminum body, there was speculation that the cost of collision insurance would go up because repairs would be more costly and require special body tools. But the Dearborn automaker has subsidized repair training and new tools for dealers with body shops to help ensure competitive rates. “It’s too soon to tell whether the new F-150 is going to have higher insurance losses than the previous generation model,” Russ Rader, spokesman for the Highway Loss Data Institute affiliate of the Insurance Institute for Highway Safety, said in an interview. “We’ll need to have enough of them on the road getting into enough crashes to gather data on repair costs.” Some early indications are that costs could be marginally higher. Online insurance quotes from two Metro Detroit agencies priced the 2015 F-150 XLT anywhere from $27-$54 higher than a comparable 2014 model over a 6-month period. Insurance infor-

mation was given for both a 58-year-old male from Grosse Pointe Woods and a 37-year-old female living in Royal Oak. Insurance rates vary greatly, and depend on a number of factors including age, location, driving history and past driving record. Rader’s office recently conducted studies comparing aluminum-bodied luxury vehicles like the Audi A8 against their steel-bodied counterparts like a BMW 7 Series and found costs for aluminum vehicles were anywhere from 9 to 20 percent greater. But that doesn’t necessarily mean F-150 insurance costs will rise. “Since the F-150 is a mass-market, high-selling vehicle, it’s collision claim experience could be different,” Rader said. “As more repair shops become equipped and receive training to handle aluminum, the increased volume could drive costs down. In addition, Ford has stated that they have incorporated modular designs to facility replacement to damaged parts which may save on labor costs.” Ford maintains insurance costs for the new truck will remain competitive. “Insurance rates represent only about 11 percent of the average cost of ownership for F-150 customers, while fuel and depreciation costs represent

about 68 percent of ownership costs,” Ford said in a statement. “With improved gas mileage and a higher residual value expected from the use of advanced powertrains and high-strength materials, we expect cost of ownership for the all-new F-150 will remain similar to or less than today’s levels. Reduced repair times for certain major collision repairs are expected to help keep insurance rates competitive as well.” The new truck weighs about 700 pounds less than prior models, and can get up to 26 mpg on the highway—tops among all gas-powered full-size pickups. Because the F-150 is such a highvolume seller—F-Series has been America’s best-selling vehicle for 33 straight years—Ford offered dealers with service shops a voluntary Collision Repair Program that trains workers how to repair the new vehicle. Ford said Tuesday more than 1,500 dealers have already participated in the program, which includes tooling upgrades that will cost between $30,000 and $50,000. Ford will chip in up to $10,000 in rebates to purchase equipment for aluminum repairs to any interested dealer with a service shop. “It is important to note that less than 50% of our dealers have body

shops, although we expected that only 20-30 percent of our dealers needed equipment and training due to the larger volume of collision work those dealers do,” spokeswoman Elizabeth Weigandt said in an email. “The majority of collision work (80 percent) is done by independent shops.” Avis Ford in Southfield is one of the 1,500 dealerships that went through the repair training. Ingrid Henderson, a sales associate at Avis, said the truck was so new that replacement part prices weren’t even logged in their system. She said the dealership has sold a couple trucks already, and one sits in their showroom. “The F-150 has always been a huge demand,” she said. “So far for the ’15, it’s the same demand or greater than before. We’ve never have a problem selling them.”

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Continued from Cover

Top 2015 Resolutions

ing and maintenance, it adds up quickly. But one simple change in the paint booth can contribute nearly $25,000 to the bottom line annually. The family of 3M™ Accuspray™ System HVLP spray guns with replaceable atomizing heads and 3M™ PPS™ technology delivers premium performance at a fraction of the cost and effort, with improved productivity, reduced solvent use and minimized clean-up time. The system can provide excellent atomization, resulting in high transfer efficiency and a large, usable spray pattern with low overspray. The 3M PPS technology with disposable lids, cups and liners deliver solvent reductions of up to 70 percent, which at $400 per 55 gallon barrel per week, translates to $14,560 in savings annually. And, by using the system to mix and filter internally, it reduces paint waste by one ounce per mix, adding thousands more to the bottom line. The system offers full diameter filters for improved fluid flow and, with five sizes to

choose from, the right size cup for every application. The 3M Accuspray spray guns, including HG18 for primer and HG14 for sealer and paint applications, provides painters premium performance on demand and reduces cleaning and maintenance needs.

Resolution #2 – Finally….A Solution for Texture Matching For automotive professionals, matching textures on rocker panels has always been a challenge. And the current technology for applying these textured coatings and undercoatings means painters not only struggle with coating thickness and overspray, but also product waste and cleanup. The 3M Body Protection System is reinventing how repair technicians spray textured finishes found on today’s vehicles for rock protection and sound deadening. It leverages the 3M Accuspray spray gun to give painters the accuracy and control to match OEM textured finishes with fine, medium, coarse or splattered patterns. The 3M Body Protection System gives automotive professionals a powerful tool for productivity, including:

● Ability to adjust pressures and spray pattern, allowing for a better match to OEM textures. ● Ability to cut in half the application time of textured finishes to rocker panels, wheel wells and undercarriages in many cases. ● The pressurized version of the 3M Accuspray spray gun allows the product to be sprayed at any angle, making it easier to reach lower rocker sections and inside wheel wheels. ● The painter can easily adjust the spray pattern to reduce overspray and masking. ● Painters can easily achieve a perfect texture match, enabling improved repair quality and higher CSI scores.

Resolution #3 – Make tough jobs more efficient with the right tools The right tools from 3M can make tough jobs faster and more efficient. Designed for ergonomic comfort, durability and performance, 3M has the right tool for the job from start to finish, including the: ► 3M™ File Belt tool is designed for heavy metalworking in tight areas and is ideal for aluminum repair. ► 3M™ Random Orbital Sander with self-generated vacuum is de-

signed for cleaner workspaces at a lower investment. ► 3M™ Cut-Off Wheel tool for panel cutting and sectioning. ► 3M™ Disc Sander for weld grinding and paint removal.

The right tool needs the right abrasive, and for the best performance that means the 3M™ Cubitron™ II line of abrasive products for heavy metalworking. These cutting and grinding products deliver outstanding performance, speed, consistency and disc life for automotive body technicians. Compared to traditional abrasives, the 3M Cubitron II products cut through paint, welds and metals twice as fast, with double the life span. The offering includes: ● 3M™ Cubitron™ II Fibre Roloc™ Discs designed for weld grinding and paint removal ● 3M™ Cubitron™ II Abrasive Fibre Discs for door skin removal, paint stripping and weld grinding ● 3M™ Cubitron™ II Cut-Off Wheel for panel cutting and sectioning jobs ● 3M™ Cubitron™ II File Belt for spot weld removal and MIG weld fin-

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ishing ● 3M™ Cubitron™ II Clean Sanding Hookit™ Discs designed for faster cutting for paint removal, the early sanding stage in small or large area body repairs, body filler rough shaping and feather edging

Resolution #4 – Cut the leading reason for comebacks – swirl marks in paint finishes When it comes to paint refinishing, compounding is the most debated step in the process. For paint professionals, 3M Automotive Aftermarket Division offers two excellent systems – one with a compounding step and one without. Are you using the right process for your paint finishing jobs to deliver the best finish and eliminate swirl marks? It all depends on the size of the job. For small to medium-sized areas like a door panel or fender, 3M recommends using the 3M™ Trizact™ 5000 and 3M™ Perfect-It™ 1 solution. This allows the paint professional to spend more time sanding with a DA and less time buffing with a heavy buffer. This system doesn’t have a compounding step, so it eliminates the time and cleanup for compounding and allows

the painter to complete the job more quickly. But for large areas or dark-colored vehicles, 3M recommends its 3M Perfect-It Large Area Paint Finishing System and a traditional refinishing method. Technicians can achieve a perfect finish with the 3M Perfect-It large area paint finishing system featuring the 3M Perfect-It EX rubbing compound, which provides faster cutting, longer working time with less sling, ease of handling and easy cleanup. 3M offers standard operating procedures for both processes online at http://3mcollision.com/library/sops.

Resolution #5 – Get Ready to Repair Advanced Materials Preparing for aluminum and advanced materials is a big challenge. 3M has been working with OEMs for several years to validate the tools, products and processes for aluminum repair. Now, shops can implement 3M’s proven portfolio of products, tools, SOPS and materials to expertly repair aluminumbody vehicles. Key to aluminum repair is a dedicated clean room with separate tools for welding, bonding, riveting, sand-

ing, grinding and structural procedures on aluminum components. Separate safety equipment is also important, as technicians will need dedicated respirators, eye protection and gloves for aluminum repairs. 3M makes many products that can be used on both aluminum and steel. Premium 3M AAD body fillers and glazes contain high-quality adhesion promoters and are approved for use on aluminum. For sanding, 3M AAD recommends its line of 3M Cubitron II abrasives that cut faster, run cooler and minimize substrate damage. In addition, 3M Panel Bonding Adhesive is compatible, OEM-approved for aluminum and is specifically recommended by Ford for the repairs to the 2015 Aluminum F-150. 3M Automotive Aftermarket Division now offers Standard Operating Procedures for aluminum repair. Visit 3MCollision.com/aluminum for more information. To make these innovative solutions part of your shop’s process in 2015, contact your local 3M representative or distributor. For more information on these solutions, visit: www.3MCollision.com and follow us at www.Facebook.com/3MCollision.

New Jersey Insurance Adjuster Gets Prison for Role in Fraud

The owner of an insurance adjusting company is headed to federal prison for his role in a scheme to defraud the New Jersey Turnpike Authority and several insurers out of at least $900,000. Federal prosecutors say 55-year-old Robert Napolitano, of Clifton, recently received a 32-month prison term. He also will have to serve three years of supervised release once he’s freed. Prosecutors say Napolitano instructed insurers whose motorists had damaged turnpike property to send checks made out to his firm, Dawn to Dusk. But instead of forwarding the money to the state authority, he kept some or all of it and gave a share to Gerardo Blasi, a former turnpike authority claims manager. Blasi also pleaded guilty in the case and received a 45month prison term last November.

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James Bryant and Guy Citro Remembered by AASP/NJ James Bryant of Bryant Associates The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is deeply saddened to announce that James Bryant, an unforgettable industry figure with a personality as big as his heart, passed away last week after a long illness. A veteran of the New Jersey association scene, Jimmy was perhaps best known for his work with Bryant Associates, a collision industry consulting firm he operated with his brother (and current AASP/NJ Executive Director) Charles. After a long and colorful career in the Garden State, he spent the last several years of his life in Las Vegas. “Jimmy Bryant was a lifelong advocate for the collision repair industry,” AASP/NJ President Jeff McDowell said from his shop in Fords, NJ. “As half of Bryant Associates, he went head to head with the Joint Underwriting Association (JUA) on our behalf many times. He was a real character who worked very hard to make our industry better, and we’re going to really miss him.” Known for his take-no-prisoners approach to tackling industry issues, Bryant earned a reputation as someone who got things done for the industry he served. Like many who knew Bryant well, veteran association leader and AASP/NJ Hall of Famer Joe Lubrano (J&E Auto Body) got to see—and hear—just how committed he was to speaking his mind. If insurers were doing something unpopular among shops, Bryant made sure the carriers knew what they were doing was wrong. “The Labor Rate was always a big thing for him,” remembers Lubrano. “When there was something that insurers were trying to cut out, Jimmy made sure he got his voice in so everyone was aware of what was happening.” One of Bryant’s oldest industry friends, AASP/NJ Board member Sam Mikhail (Prestige Auto Body, Garwood) was in touch with the industry advocate on a weekly basis in the old association days. Their last phone conversation just a few short months ago found Bryant in high spirits. Mikhail will never forget the energy and passion Bryant put into solving consumers’ problems. “Jimmy was a go-getter; he was like a machine gun,” he says. “He went after insurers, he was tough and he got the job done. Insurance companies used to hate to deal with him because he didn’t take no for an answer. He kept beating and beating until he got what the customer was entitled to. He was great.” “Jimmy was a really special

guy,” adds fellow AASP/NJ member Lee Vetland (Lee’s Auto Body, Avenel). “He was different than all of us, but he had the same things in his heart. He wanted the industry to be much, much better. Without Jimmy and his brother, our industry wouldn’t be half as good as it is right now.” Despite Bryant’s passing, his impact on the New Jersey auto body community will always be felt by anyone willing to stand up on behalf of shops and consumers. As Mikhail says, “His knowledge and information benefited all of us, and that will go on for many, many years. He may be gone, but he’s not forgotten.”

Guy Citro, Former AASP/NJ President Guy Citro, Former AASP/NJ President. It is with great sadness that the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has learned that former President, NORTHEAST Trade Show Chairman and Hall of Fame member Guy Citro of Citro’s Auto Body in Pompton Lakes passed away in his sleep late in December. Guy had been hospitalized since October 2013 after suffering a series of several debilitating strokes. He was 68. “Guy was such a huge part of AASP/NJ’s legacy that it’s hard to put into words everything he meant to the association and the industry,” AASP/NJ President Jeff McDowell says. “Not only was he the moving force behind the NORTHEAST® trade show’s rise in the ‘90s but he was also a central figure in the merging of the four state associations that came together as AASP/NJ in the early 2000s. Guy Citro was a monumental figure in our association’s history. With the loss of Jimmy Bryant and now Guy, this has been a truly tragic month for AASP/NJ.” Born in Paterson, Guy was the son of Samuel and Mildred Citro. Raised in Pompton Lakes, he graduated from high school in 1964. Following graduation, he served in the U.S. Army, and was stationed in Germany during the Vietnam War. Returning home, he joined his father in business, helping him run Citro’s Auto Body in Pompton Lakes. He ran the business until becoming ill in 2013. Guy is lovingly survived by his sons, Marc and his wife Alicia, Brian and his fiancé April Babcock, and Michael and his wife Lisa; his mother, Mildred Citro; his ex-wife, Susan Citro; his sister, Mary Ann Profeta and her husband Randy, and their family; and his grandchildren, Roman, Carson, Campbell, and Finley.

16 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Volkswagen to Add 100 Dealerships by 2018, 650 Current Dealerships are Fewest of Major Brands

After two years of sputtering sales in the U.S., Volkswagen is planning an aggressive expansion. The company has plans for major new products and its goal is to add 100 dealerships across the nation by 2018. The dealerships, to be opened in areas where there is a low VW presence, will complement new Volkswagen products arriving in the next few years. A brand new crossover, made in Chattanooga, will debut in the first quarter of 2017, followed shortly by a long-wheelbase Tiguan. Big ticket items like the redesigned Jetta and Passat arrive in dealerships by late 2017 and 2018 respectively. Volkswagen currently only has 650 dealerships in the U.S., a small footprint compared to other automakers, but those franchises are the most the brand has had in the U.S. since 1993. According to a report from Automotive News, many VW dealers are struggling from slow sales after investing millions of dollars in their stores, all in preparation for helping VW achieve its 800,000 sales target by 2018. “The U.S. market now is a key focus of the Volkswagen Group,” Volkswagen of America CEO Michael Horn told Automotive News. “It’s the

most important market for us to get our further growth.” Along with new dealerships, the new CEO has taken other steps to revive the VW brand in the U.S. Starting with the new Passat, the automaker has committed to redesigning its products every five years, instead of every seven years like it has in the past. VW has also authorized a board committee to make key decisions locally, further strengthening VW’s reliance on the American market. Volkswagen will build each of its four core models—the Jetta, Passat, Tiguan and the still-unnamed midsize crossover — in North America once the next generation Tiguan and new midsize crossover start production. “There’s probably 25 to 30 percent, depending on which month you’re looking at, of our dealer body that is struggling to be profitable,” Alan Brown, chairman of Volkswagen’s national dealer council, told Automotive News in a Dec. interview. Brown also is general manager and partner in Hendrick Volkswagen Lewisville, a highvolume dealership in suburban Dallas. Despite the challenges, Brown said dealers are encouraged by the steps VW has taken, since Horn became CEO, to turn its U.S. fortunes around.


www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 17


NJ Shop Employee Indicted for Kidnapping & Assault A man who held a woman against her will at a body shop last summer was indicted on 15 counts by a Union County grand jury on January 2. Ricky Suepoi, 52, of Livingston Street in Westfield, NJ allegedly beat, stabbed, and attempted to sexually assault the 23-year-old victim, reported Mike Deak of mycentraljersey.com. He was indicted on two counts apiece of second-degree attempted aggravated sexual assault and fourth-degree unlawful possession of a weapon, plus single counts of first-degree kidnapping, second-degree attempted sexual assault, second-degree possession of a weapon for an unlawful purpose, third-degree aggravated assault, third-degree making terroristic threats, a third-degree weapons offense, four different third-degree drug offenses, and a fourth-degree drug offense, Deak reported. According to Union County Assistant Prosecutor David Hummel of the Office’s Special Victims Unit, Roselle police rushed to Shelbourne Motorsports on East 1st Avenue on reports of a woman screaming inside the building shortly before 2:45 a.m. on July 23.

Investigators reported that the woman had gone to the repair shop around 8 p.m. that night to ask about getting her vehicle fixed, when she engaged in a conversation with Suepoi, a former acquaintance, reported Deak. Hummel said that around 11 p.m., Suepoi hit her several times and wielded a gun, while ordering her to perform a sexual act on him. The gun was later found to be a fake. The woman managed to call police from the body shop’s bathroom after Suepoi had been assaulting her for several hours, while trying to force her to engage in sexual activity. Suepoi eventually broke into the bathroom and began stabbing the woman with a screw driver while she was on the phone with a dispatcher. Deak reported that police arrived moments later, after which she was transported to Trinitas Regional Medical Center in Elizabeth for treatment of numerous injuries. Hummel said that the Union County Sheriff’s Office conducted a search of Shelbourne Motorsports, which revealed large amounts of the designer drug known as “Molly,” ecstasy, and marijuana.

Single Disabled Suffolk County Mom Receives Life Changing Gift: Wheelchair Accessible Van

A single, disabled mom living in Suffolk County, NY received a life-changing holiday miracle gift on Dec. 30, according to Ryan Bonner, patch.com. Theresa Thomas was given a refurbished Chrysler Town & Country wheelchair accessible van at Bussani Mobility Team in Smithtown, where she became the second annual recipient of the company’s Peter Zarba Memorial Van Donation Program. New Beginnings (a community center for brain injury rehabilitation) arranged the introduction between the two parties that has made this wish come true. A former nurse, Theresa became severely disabled seven years ago at the age of 39 by a genetic condition triggered during pregnancy that left her confined to bed, according to Bonner. She has two sons, aged 15 and 7. Her mother, aged 70, uses a wheelchair as a result of a brain injury and two strokes. As Theresa’s condition worsened and she was no longer able to leave the house the family became homeless and lived in shelters for several years. The children moved from school to school. Bonner said she never gave up fighting…to get well, to find a place for her family to live, to give back.

Now with the wheelchair accessible van, Theresa will be mobile again. Theresa is working to finish her Bachelor’s Degree in Psychology so she can become a social worker and live a life of service to others, said Bonner. She eventually wants to open a not-for-profit in Suffolk County connecting the disabled, mentally ill, homeless and veterans to the many resources Long Island has to offer. “There’s no end to what this remarkable woman will do to help her family and the disabled community here on Long Island now that she has her own wheelchair accessible vehicle to get around,” said Daniel Bussani, Vice President at Bussani Mobility Team. “She has big dreams. With her perseverance, strength and compassion, we have no doubt that she’ll reach every one of them and she’ll touch many lives for the good.” The van was donated by a Bussani Mobility Team customer and refurbished by the company. Two other local automotive companies contributed to the effort: Third Generation Auto Body (donated the body work) and Don’s Hand Car Wash (donated the detail work).

18 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

NY Industry Associations Introduce Crash Parts Disclosure and Consent Bill by Chasidy Rae Sisk

New Yorkers are known for always being on the go, and 2015 is starting off with a bang as the New York State Auto Collision Technician Association (NYSACT) has introduced a bill on behalf of all the state’s industry associations which, if passed, will require disclosure and consent before nonOEM parts can be used in a repair. Ed Kizenberger, Executive Director of the Long Island Auto Body Repairmen’s Association (LIABRA), briefly discusses what is going on in New York. “Currently, there is no requirement for disclosure or consent when aftermarket parts are utilized in the repair process,” Kizenberger explains. NY Reg 64 speaks to the use of nonOEM crash parts only as it pertains to the insurer and the collision repair facility, but the proposed bill would include the consumer, expanding upon this regulation to require that consumers be aware when non-OEM parts are used in the repair and also that they provide consent before these parts are installed on their vehicle.

Kizenberger states, “it’s a consumer protection bill with three important components. First, it prevents insurance carriers from requiring the use of aftermarket or non-OEM parts for the first three years of a vehicle’s life; only OEM parts can be utilized for repairs during that time period. Once a vehicle is more than three years old, the repair facility must disclose the use of non-OEM parts to the consumer in a way they understand in order to provide informed consent and authorization. Finally, because it is so important to restore the vehicle to preloss condition, the insurance company will be financially responsible for any issues that may arise from the use of those non-OEM parts.” Kizenberger also explains that this is the beginning of the new legislative session, and this is only the first of several bills that NYSACT has asked their sponsors to introduce into legislation. As the legislative session progresses, NYSACT plans to introduce several more bills, and next up is their parts procurement bill which will be introduced in the near future.

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Continued from Cover

New Year’s Resolutions

for our 2016 National Conference (June 2016), and it is our goal to make this our most successful and memorable conference,” Executive Vice President John Williams states. The Auto Body Association of Connecticut (ABAC) intends to continue doing exactly what they did in 2014; President Tony Ferraiolo elaborates, “we will continue to educate members and consumers. We want anyone that needs education from our association to be helped. We will strive to bring the best speakers and content from around the country to our membership meetings.” “Our resolution will be to continue our focus on member benefits and membership growth by aligning the goals of our organization with the true needs of the membership at large. Special attention will be needed with regards to our new Collision members,” predicts Jason Brennan, Vice President and Chairman-Elect of ASA-IL. John Petrarca, President of the Auto Body Association of Rhode Island (ABARI), states that the associa-

tion’s 2015 New Year’s resolution is “to successfully continue ABARI’s stated mission to protect consumers, preserve competition and professionalize our industry by promoting the highest standards for safety, quality and customer service. In doing so, ABARI will continue to work on many fronts. First, we will continue our decadeslong fight to educate the Legislature and the public of the unfair practices that remain in the industry and to find fair, equitable solutions. Second, we are close to implementing a written ABARI Code of Ethics. The Code will require all ABARI shops to conform to the highest standards for safety, quality and environmental protection. We fully expect it to be in full force and effective in 2015. It is another step in the direction of our ultimate goal of a professionalized industry that is compensated fairly for its important role in protecting the motoring public.” For many, if not all, associations, increasing membership is also a major priority for 2015. The Long Island Auto Body Repairmen’s Association (LIABRA) plans to “continue to expand our membership base and offer new and exciting training seminars for our shop owners and their employees.

On the legislative and regulatory fronts, we expect to continue to address our members’ concerns and ensure the auto collision industry and the New York motorists have a voice on collision repair issues.” Luz Rubio, Executive Director of ASA-AZ, also hopes to see an increase in membership next year; “I think this is an issue that is on top of every association’s list. I am very excited to include many more shop owners in our Automotive Roundtables. The few that were held in 2014 have been interactive and great. These are opportunities to discuss topics, challenges and share successes with other shop owners that will help elevate the professionalism of the industry here in Arizona.” ASA-Colorado’s Chairman, Steve Horvath of Jeno’s Automotive in Littleton CO, says, “ASA-Colorado’s New Year’s resolution for 2015 is to get the local auto body shops more involved with ASA.” Executive Director Kari Foster elaborates, “in 2014, the ASA Colorado Board members met the new ASA National President with this idea in mind. Dan Risley, ASA President says, ‘ASA Colorado’s board of directors’ commitment to grow their membership base in 2015 parallels the

movement within ASA National to recruit and retain members. The strength and leadership on their board has clearly positioned them for success. We have high expectations for them and believe they will have a significant positive impact in the market.’” ASA-Colorado also hopes to put together some collision educational meetings in 2015 on consolidation, estimating and the importance of networking, according to Collision President Dan Stander of Jerry Stander Collision Works in Littleton CO. “Our resolutions for 2015 are, first, to increase the visibility of the collision/repair professionals in Texas and help our members increase their business base/profitability,” says Chuck Space, Executive Director of the Texas Independent Automotive Association (TIAA). “We also want to make the 2015 Texas Tire & Automotive EXPO larger and even more responsive to those who attend. As an association, we need to be relevant to our members and successfully achieving these resolutions will help our members and make TIAA stronger.” “ASA-Northwest’s wish list for 2015 is to get more qualified automotive technicians into the automotive in-

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dustry,” the association’s Executive Director Jeff Lovell explains. “We are currently working on apprenticeship programs with our ASA members and the automotive technical colleges throughout the state of Washington. We are also working with Joint Base Lewis McChord (JBLM) to transition troops from military to civilian jobs in the automotive industry. We have a shortage of qualified technician in our industry and the average age of a technician is 45-47 years old.” Nick Notte, President of the National Auto Body Council (NABC), believes their resolution for 2015 “would be to become more inclusive. That means finding ways to bring even more prospective members into the NABC to, unitedly, bring the good news about the Collision Repair Industry and our National Auto Body Council members to every community in this country.” ASA-National “would resolve to add several new member benefits to our portfolio that provide significant value to the shop owner.” Executive Director Dan Risley continues by asking “why? Most shops that belong to ASA support the association because of its leadership position in the industry and our efforts to drive positive

change collaboratively. I believe it’s our responsibility to find ways to make it financially profitable to be a part of ASA through our member benefits. Our Sponsored benefit programs with companies such as AutoZone (parts purchasing rebates), Chryslers Tech Authority ($120 annual subscription), Federated Insurance (property & casualty), Keystone Insurance (vision & dental), Meadowbrook Insurance (workman’s compensation), and Cintas are great examples of the additional value our members receive.” Aaron Schulenburg, Executive Director of the Society of Collision Rep Specialists (SCRS), told us “to be honest, it is more of an ongoing resolution than one specifically designated for the new year, but we are internally committed that next year will bring renewed commitment to strengthening how we deliver upon our mission. SCRS’ purpose is to educate, inform and represent the collision repair professional in all aspects of the industry. We’ve spent a number of years working on really strengthening our role representing our membership, creating resources that strengthen their positions and operations, and delivering a resolute voice of the collision repair

industry in rooms and at microphones where the industry needed to be. We’ve spent years growing our Repairer Driven Education series at the SEMA Show, holding local events in conjunction with our 44+ Affiliate Associations, and collaborating with organizations like the Collision Repair Education Foundation and SkillsUSA to embolden our efforts to educate. In 2015, our resolution is to find more frequent and more thorough ways to deliver on our promise to inform our membership. It is a priority for us, and we believe the industry is best served through accessibility to not just the most information, but the right information. I know that our board is all very committed and excited to deliver on our resolution.” If these industry experts have anything to do with it, 2015 will be an even better year than 2014 for the collision repair industry. And my resolution for 2015? I hope to be able to attend more industry events, learn more and get to meet more of you amazing ladies and gentlemen who make it such a pleasure to write for this industry. I also encourage your feedback and suggestions so that we can make 2015 the best year ever! Happy New Year’s everyone!

Shults Auto Dealership in PA in Final Stage of Reconstruction

aShults auto dealership on East Main Street in Foster Township is in its final stages of reconstruction and redesign. A new body shop has been open for months, a new Chevy showroom is nearly complete, and work on a new Toyota showroom began in November, General Manager Steve Hopkins told Alex Davis, bradfordera.com. The 9,500-square-foot body shop has been up and running for more than four months. It was relocated to the former EZ TV and Appliance Building site at 911 East Main St., behind Worth W. Smith, Davis reported. The shop relocation took up $600,000 of the project costs. These projects were sparked by General Motors’ push for dealers to upgrade. The project, with Kessel Construction as a contractor, is costing $3 million. Shults will have ample parking, and two new showrooms with several service bays located across the street from the body shop. Work is currently being conducted on the approximately 9,000square-foot Toyota showroom, with steel being hung, reported Davis. Hopkins said the project is expected to take at least six months. The Chevy showroom is now open to the public.

www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 21


El Paso Body Shops Respond to Charges Against Neighboring Shop for Deceptive Trade Practices by KFOX14 TV News

KFOX14 Investigates has reported in several stories run since last August that charges are pending against Cesar Lopez, the owner of Formula One Collision Center in East El Paso. Lopez now faces three trials on charges of deceptive trade practices. Customers told KFOX14 in some cases they waited up to a year before they got their cars back. “It does hurt the image of the independent shops. It shouldn’t be that way. Independent shops are independent shops, we are family owned businesses,” said Sergio Lewis, owner of Sergio Lewis Body Shop in East El Paso. Those in the business of repair vehicles say the negative attention from one shop casts a shadow on the rest. “In this industry we are mechanical doctors, exterior body doctors and it should be held that way. And it’s sad when you get a negative spin and it doesn’t help perception of the collision repair industry,” said Lewis. John Morales, general manager of Body Masters Collision, said when one local shop runs into trouble with the law it impacts other shops because a big part of the industry is bringing in new business. “We do rely on new customers and building the trust with the new customers,” said Morales. Morales said to protect themselves from being ripped off customers need to be involved. He suggests customers should ask what type of warranty they’ll receive from the shop. “You want to ask what kind of warranty you’re getting once you take your vehicle. If it’s just a mechanical warranty, body warranty and your paint warranty—there’s different kind of warranties and you’re always going to want to ask about them,” said Morales. Lewis and Morales both said they guarantee their work and said customers should be wary of body shops that won’t guarantee their work. Morales said at his shop they try to give customers a daily progress update. “You need to go out there. You are getting your vehicle repaired, you need to go and inspect it, even daily if you can, and check the progress on how it’s going,” said Morales. Morales said customers shouldn’t pay for work in advance; a reputable

shop will have enough capital to get the work done. Also, be observant. “It would definitely raise a red flag if there are a lot of vehicles out in their parking lot that have been disassembled and haven’t really been worked on,” said Morales. Lewis advises consumers to do research beforehand, make sure you get a signed contract with an estimate of how long the work will take and be wary of telemarketers that call after you’ve been in an accident. Telemarketers for different shops will purchase police reports, and then call car crash victims and persuade them to take their vehicle to a certain body ship. “The telemarketer will promise you the moon... that doesn’t necessarily mean once the car is in the shop that’s going to happen,” said Lewis. Oftentimes it’s other independent shops that end up fixing the work botched by another shop. “We have some great independent shops and we work really hard for the consumers,” said Lewis.

Previously reported by KFOX14 After a KFOX14 Investigates story, the doors to one of the two Formula One Collision Center locations closed in December. One of the company’s two locations has now closed. A sign on the front door of the shop on Gateway East says the space is available for lease (as of Jan. 2.) There was a lock-out notice addressed to owner Cesar Lopez. [In December] KFOX14 Investigates chief investigative reporter Genevieve Curtis spoke to Lopez at that location. “I think our work speaks for itself, and that’s why I am still here,” said Lopez at the time. KFOX14 Investigates was there following concerns from a customer named James. James told KFOX14 he’s waited almost five months to get his truck back after taking it in for a scratch. He accused Lopez of further damaging his truck to get more money from the insurance company and for forging James’ name on the two-party insurance check. When KFOX14 Investigates went to the shop almost three weeks [previous], the owner’s wife said James’ Ford F-250 was ready to be painted. KFOX14 spoke to other local body shop owners who said a good

22 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

paint job should take an average of two weeks. Yet, James is still waiting for his truck. “I don’t know what else has been done to it,” said James. With one location now closed, James is concerned about getting his truck returned to him. “It’s pretty aggravating, because it seems like nobody wants to help,” said James. Lopez is set to go to trial on Jan. 12 to face charges of deceptive trade practices. A separate trial is scheduled for February. Another trial is in the pre-trial stages. Those charges stem from 2010 when KFOX14 reported car owners accused Lopez of holding their vehicles hostage and driving them around town. KFOX14 went to look for James’ truck and get answers at the location on Pellicano, but the owners were not there. KFOX14 did try to contact the attorney representing Lopez but were not able to get in touch with him. KFOX14 asked the body shop if they could see James’ truck and were

told their lawyer said ‘no.’

Additional Reporting by KFOX14 It started with a scratch and a small dent when James, the owner of a Ford F-250 pickup, accidentally hit a fence. He took it to Formula One Auto collision in East El Paso. James said Lopez told him it would be an easy fix. The quote was $2,300, and Lopez said he would take care of the dent and also get James a new paint job and a color change. That was in August. It was also the last time James said he saw his truck. “It was a major purchase for me, and now I don’t even have that,” James said. But that’s not all. When James got the paperwork from his insurance company, GEICO, that initial $2,300 suddenly jumped to nearly $8,000 in damages that weren’t there before. “Originally it just had one scratch and a dent behind the rear door on the driver’s side. Now it has damage all over the body the glass, the windshield. It’s calling for the replacement of all of these parts,” James said. See El Paso Body Shop, Page 24


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Continued from Page 22

El Paso Body Shops

James believes that Lopez damaged the truck to increase the payout from the insurance company. “Absolutely not,” Lopez said when we asked whether he damaged the truck for a bigger check from the insurance company. “I mean, when the vehicle came in, the insurance looks at it, that’s pretty much (it). It came here and the insurance looked at it.” James also claims that Lopez forged his name on the two party-party check from the insurance company. “He also signed the power of attorney,” onLopez said. “On our contract, it states we can do work on the vehicle and on the bottom of it, it also gives us power of attorney,” said Lopez.” KFOX14 Chief Investigative Reporter Genevieve Curtis asked Lopez if he signed James’ name on the check. “Yes, of course,” Lopez said. “You don’t think it’s check forgery to sign his name on the check?” Curtis asked. “I wouldn’t say so. I mean, that’s

what power of attorney is,” Lopez said. Except it’s not. A financial expert told KFOX14 Investigates, power of attorney allows for someone to sign his or her own name, not the name of someone else. And James said he never signed such a contract. “I thought it was bad enough they damaged my truck to increase the claim on it, two that they signed my name on the check,” James said. KFOX14 Investigates reported that Lopez pleaded guilty to forgery of a financial instrument in 2004. He was also arrested on five charges of deceptive trade practices in 2010. KFOX14 was there when Lopez was arrested in 2010 and interviewed customers who showed up outside his body shop, formally known as CRL, demanding their vehicles back. Some had waited for more than seven months. Since 2010, some of those cases have been settled and then dismissed. “You’ve been accused of holding on to people’s vehicles,” Curtis said. “That’s not possible, we don’t do that,” Lopez said. “Why do you think it is that you’ve had so many issues with customers filing these complaints against you?” Curtis asked.

24 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

“I don’t think it is, I don’t want to say it’s issues. I mean, a lot of people do take advantage. They see that I have been, you know... I guess, taken to court and sued in the past,” Lopez said. But he hasn’t just been sued, he’s been charged with a crime. Still, Lopez chalks up his legal troubles to unhappy customers. “It’s not the first. It probably won’t be the last, there are always people who aren’t satisfied,” Lopez said. KFOX14 Investigates also spoke to the Texas Department of Insurance. Officials there notified James that GEICO has launched a special investigation and turned it over to the National Insurance Crime Bureau because of what they called “questionable and unauthorized repair activities.” Lopez defended his work. “I think our work speaks for itself, and that’s why I am still here,” Lopez said. As to why James hasn’t gotten his truck back, Lopez has an explanation for that too. “Well, basically, with that vehicle, that type of vehicle, because it’s such a large vehicle, it does take longer than a regular vehicle,” Lopez said. Four months without his truck has taken its toll on James. “I don’t have the truck. I’m paying for the truck, I’m

paying the insurance on the truck, and I don’t have [the use of] my truck. I don’t have anything to show for it and the shop already collected all of the money,” James said. He’s not even sure if the truck runs. “I don’t know what else has been done to it,” James said. Lopez said that Formula One contracts stipulate that they can only estimate when a job will be complete and cannot guarantee it. KFOX14 went back to Formula One and asked if they could see the truck. Lopez’s wife called an attorney, who would not allow KFOX14 to see the truck. “You feel cheated constantly; you feel that nobody is there to help you,” James said.

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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 25


Continued from Cover

Concern in Industry

After several reports published over the past year, Autobody News has found that shops across the country are paying close attention to the court’s developments to determine whether the decision will help or hinder the MDL case. More than 500 auto body shops in 33 states are now part of the MDL against the nation’s top insurers. When Autobody News went to press last month, lead attorney John Eaves Jr. of Eaves Law Firm in Mississippi reported that lawsuits have already been filed by auto body shops in 17 states and 16 more were in the process of being filed. (See map on cover.) These shops claim that more than 35 auto insurers have suppressed reimbursement rates to collision repair shops and direct repair programs violate antitrust laws. The first five antitrust actions were filed by shops in Florida, Mississippi, Indiana, Utah and Tennessee the beginning of 2014. In April of 2014, a RICO class action lawsuit was filed in Illinois by Crawford’s Auto Center on behalf of

collision repair facilities nationwide with similar issues. It involves major auto insurance companies and the industry’s three data providers: CCC, Mitchell and Audatex. At the time, Crawford’s did not support the case being consolidated with the MDL. However in December, the Judicial Panel on Multidistrict Litigation decided to transfer the case. According to court documents, “…transfer is warranted for the reasons set out in our order directing centralization. In that order, we held that the Middle District of Florida was an appropriate… forum for actions stemming from an alleged industry-wide conspiracy to suppress the reimbursement rates applicable to automobile collision repair shops, including complex issues concerning the role of ‘direct repair programs’ in furtherance of the alleged scheme.” Eaves said when the class action lawsuit was first transferred to Florida there was some concern that it might prolong the multidistrict litigation. “We’ve been assured that the court will put down a different time track so our concerns are greatly relieved about the class action,” he said. Although the same court will be handling the case,

26 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Eaves predicts it will take longer than the MDL. “We think this is different. It includes not only insurance companies but also includes the data base providers and the MDL does not,” he said. The other notable case transferred to the Middle District of Florida in December was State of Louisiana v. State Farm Fire and Casualty Insurance. Filed by Louisiana Attorney General James D. “Buddy” Caldwell against State Farm in August 2014, it alleges monopolization and deceptive trade practices by the insurance company. Dick Luedke, spokesperson for State Farm, said, “State Farm requested that the lawsuit filed by the attorney-general (AG) in Louisiana be transferred to the multi-district litigation in Florida and so we are pleased the MDL panel has done that in spite of objections from the AG’s office in Louisiana. The Louisiana AG’s allegations do not describe the way State Farm does business as we fulfill our mission to serve the needs of our customers in keeping with our long, proud history of achievements in advancing vehicle safety.” James Burns, co-leader of the antitrust practice at Dickinson Wright

PLLC, said the LA case is somewhat different than the previously transferred cases. “First, unlike the other previously transferred cases, the Louisiana case was originally filed in state court, and subsequently transferred to federal court,” said Burns, whose practice focuses on the application of the antitrust laws to the insurance industry, but is currently not involved in the MDL proceeding. “In addition, Louisiana contended that its case, which it characterized as an ‘enforcement action,’ was materially different in character than the private party actions currently before the transferee court, and thus the Louisiana case should not be transferred for this reason.” That contention, however, was rejected by the Panel, Burns noted, which stated that it “often has transferred state enforcement actions to MDLs that involved cases brought by private litigants.” “The issue of transfer to the MDL is really a secondary issue for our case,” said Stacie deBlieux, Louisiana’s Assistant Attorney General. “The primary issue is whether federal jurisdiction can be exercised over our case at all, which was filed in state court in Louisiana. We have filed a motion detailing the lack of federal jurisdiction over our claims.


Once that motion is heard by the MDL court, our case should be remanded back to state court in Louisiana.” Eaves said the attorney general’s action has a good chance of being returned to Louisiana. “It’s a fundamentally different case,” he said. “That case is representing the people of Louisiana and representing the consumers where our interest is the body shops who serve the consumers. As far as the perspective and the evidence, the attorney general of Louisiana will be focused on the consumer protection laws of Louisiana.” He explained that the case is focused on antitrust issues and basic contract law in the United States. “The end result to the consumer is the same but it’s a different set of laws,” he said. “It will be interesting to see if the court actually keeps the case. I think there is a high probability that the court will return it to Louisiana.” Presiding Judge Gregory Presnell will ultimately decide if the cases should be remanded to state court. The MDL has a standing court date the first Friday of every month. “I think the most exciting thing that we’re working on right now is we’re asking the court for an injunction to

stop them from the retaliatory practices against body shops, which is all forms of steering,” said Eaves. “We’re articulating about 24 tactics that the insurance companies use on a regular basis to get customers to go to shops that are willing to cut corners.” This includes representing evidence to the court gathered by the body shops. Their hope is to have a certain amount of penalties occurring even before the litigation gets underway. “We have hundreds of thousands of documents that will show how consumers are being shorted on their policy reimbursements that are owed to have correct repairs done on their vehicles,” said Ron Perretta, Owner of Professional Auto Body in PA. “We have documented the steering, improper repairs, substandard parts being used without regard to testing and safety, dialog that’s misleading and how the insurance companies have put their appraisers and other staff at risk of personal lawsuits.” Perretta, who has been instrumental in spreading the word about the MDL case, said they expect injunction relief to be in effect soon. “This will virtually stop the steering and manipulation by insurers,” he said. “If they

don’t follow the judge’s orders there could be serious consequences; we expect they will test the judge.” “The mission that we have been given is to stop the insurance company’s race to the bottom,” said Eaves. He said the case has focused on “all insurance companies that reward those body shops that are willing to cut corners and punish the shops that are willing to stand up for the consumer.” He said the practices used by some larger insurance carriers are uniform throughout the country. “They use the same types of policies from Maine to California,” said Eaves. “Ultimately it’s the consumers who are really the victims in all of this.” When contacted by Autobody News, Allstate Insurance, Liberty Mutual Insurance, Nationwide and Progressive replied that they do not comment on pending litigation. For information about the multidistrict lawsuit, contact John Eaves Jr. at johnjr@eaveslaw.com. Information about “The Movement” by auto body shops can be found online: www.TakingBackOur Industry.com. Autobody shops in Pennsylvania can contact Ron Perretta at ronperretta@aol.com or 814-931-7669.

Shamrock Auto Collision in PA Hosts Star-Studded Event

Shamrock Auto Collision hosted an event the weekend of Oct 3-5 in Scranton, PA that featured two celebrities, Kristen Renton from Sons of Anarchy and Santiago Cirilo from The Walking Dead, reported thecarbondalenews.com. The duo was in town for Fantom Fest, a horror, science fiction and pop culture convention. Alliance Autographing organized the event.

Shamrock Cycles welcomed Kristen Renton from Sons of Anarchy and Santiago Cirilo from The Walking Dead to their business to raise money for various charities. Photo credit: Reana Wasoski

Shamrock’s Collision Center is recognized by all major insurance companies, and offers towing and recovery service. It is located at 50 North Scott Street in Carbondale, PA. For more information, call 570282-1666, 570-282-6959, or visit: www.shamrockcycles.com.

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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 27


Collision Repair Shops Brace for Challenges of Aluminum Bodywork by Del Williams

With Ford’s 2015 F-150 pickups’ high-strength, military grade, aluminum alloy body and bed saving up to 700 lbs. over the previous model while increasing mileage and towinghauling capacity, body shops are preparing for new challenges that aluminum body repair work will entail. At the top of the list: the proper handling of messy and potentially explosive airborne dust caused by grinding or sanding. The aluminum body revolution is an industry game changer, and its impact will only increase in the years ahead. General Motors has already signaled that updates of its Chevrolet Silverado and GMC Sierra pickups will feature weight-saving aluminum bodies in the fall of 2018. By 2025, “Seven out of 10 new pickup trucks produced in North America will be aluminum-bodied” and “every leading automaker will have several aluminum body and closure panel programs,” according to a 2015 North American Light Vehicle Aluminum Content Study by Ducker Worldwide, a premier consulting and research firm. To meet the coming demand, body shops will need to adapt to the challenges of working with aluminum with dedicated tools, equipment, and training. Failing to do so may mean missing out on one of the fastest growing markets in the next decade. “All aluminum bodies from Ford’s F-series to Chevy and GMC are going to have a major impact on the collision auto body industry in the next few years, and it’s going to grow from there,” said Gary Gardella Jr., coowner and production manager at County Line Auto Body in Howell, N.J., a high-production, Ford certified, collision repair shop, that repairs about 50-70 vehicles per week, generating about $5 million in annual revenue. “We’re preparing now because we want to be ready for the opportunity.” Ford, for its part, is at the forefront of setting the guidelines and requirements for working with aluminum bodied vehicles for both Ford dealership and independent body shops. Through Ford’s National Body Shop Program and its 2015 F-150 Collision Repair program, the company addresses the full range of aluminum issues: from isolating aluminum vehi-

cles from traditional steel repairs with a separate room or curtain system to dealing with aluminum dust to dedicated aluminum welding, riveting and dent extraction systems. Ford’s National Body Shop Program enables dealerships and sponsored independent body shops to become officially certified or

tomer come-backs. Isolating aluminum repairs with curtains or dividers can help prevent cross contamination, but it does nothing to prevent the risk of fire or explosion. In shops doing aluminum body work, aluminum dust can settle on overhead pipes, rafters, walls and

“Techs and the public don’t want to breathe a plume of dust, aluminum or otherwise, in auto body shops,” said Gary Gardella, Jr. “They want a cleaner environment, and that requires better equipment.” recognized by Ford and Lincoln. Among the 2014 requirements for Ford’s National Body Shop Program, administered by Assured Performance, for instance, is a “dedicated aluminum dust extraction system with wet mix technology.” Ford’s 2015 F-150 Collision Repair program, created by Ford to assist dealers and independents, further stipulates a dedicated aluminum wet mix air filtration system, which can be portable or a central installed system. While collision repair body shops have always performed sanding, grinding, welding and cutting to produce dust, fumes, spatter and sparks, this was often considered a nuisance when the industry revolved around steel vehicles. But the recent introduction of mass-produced aluminum bodied vehicles like the Ford F-150 has brought this dust into the spotlight. The dust has created problems and hazards ranging from cross-contamination of metals to combustible dust fires and even explosions. “Aluminum dust must be safely captured at its source to prevent quality issues like peeling paint or adhesion problems,” says Gardella, who has several auto body technicians participating in Ford’s F-150 Collision Repair program. Cross-contamination occurs when aluminum dust in the air settles on steel panels or iron oxide dust settles on aluminum panels, prior to primer or paint. This contamination will result in poor adhesion and quality problems months and years after painting a panel. This can pose a business risk to a collision repair shop dealing with warranty issues and cus-

28 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

shop equipment, creating an environment ripe for disaster. Aluminum dust poses a combustion hazard in high concentrations, and is particularly combustible, even explosive when airborne and finely separated. If a typical vacuum containing dry aluminum dust were to draw in a grinding spark or even experience the spark from static electricity, it could ignite and cause a fire

or explosion. “When dealing with aluminum dust, a high, safe capture rate is important to prevent potential fires or even explosions,” says Gardella. The collision repair industry has long been viewed as a dirty business, bringing to mind the image of a technician hunched over a vehicle, with a plume of sanding dust being launched into the air as he finesses a body panel back into shape. In recent years, however, shop owners have sought to reach out to customers with a cleaner, dust-free environment. “Techs and the public don’t want to breathe a plume of dust, aluminum or otherwise, in auto body shops,” says Gardella. “They want a cleaner environment, and that requires better equipment.” To eliminate the concern of aluminum cross-contamination, dust combustibility, and to present a clean, “dealership feel” to their body shops, more owners are looking to vacuum extraction. They are finding inspiration in other industries that have successfully used the technology. See Brace for Challenges, Page 48


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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 29


Fix Auto USA Mourns Passing of Industry Veteran Tim Clark at 62

Long-time industry executive Tim Clark succumbed to brain cancer last night in his Columbus, OH home with his wife Mary and daughter Krista at his side. He was 62 years old. Tim began his career as a field claims adjuster for Safeco Insurance where he spent over 20 years working his way through various roles culminating as a Vice President in the claims organization in the Seattle headquarters office where he led, among other things, the integration of the Safeco and American States claims organizations. Following his distinguished tenure at Safeco, Tim went on to assume executive roles with Safelite Auto Glass, Performance Claims, and most recently Fix Auto USA, where he served as Vice President of Insurance Services. Tim was active in the industry serving on numerous boards including the ICAR Executive board during its formative years. “We are saddened beyond words by Tim’s passing,” said Paul Gange, President and COO of Fix Auto USA. “We certainly understood the terminal nature of Tim’s disease, but he inspired us daily with his upbeat nature and the strength in his faith despite doctors’ prognosis. His passing, while

not at all surprising, is no less shocking for all of us who knew and loved him. He has left a profound impact on our industry, Fix Auto USA, and on me personally. Tim will be dearly missed,” added Gange. Clark was diagnosed with inoperable brain cancer in early September 2013. At the time, doctors were unable to give him a clear prediction of his time left, but estimates in the range of 60–180 days were generally discussed. Tim outlived the doctors’ most generous predictions by nearly three times. And, during that time, Tim was widely regarded for his grace and generosity. He spent hours on the phone visiting with old friends and was noted p by all who spoke with him for his generous reflection of how much the caller meant to him. Tim will be remembered by more friends than can be counted for his wit, wry smile, intelligence, and giving spirit. Longtime friend and associate Ron Kuehn, founder of Collision Business Solutions, commented “Tim was an incredible and treasured friend. He positively impacted many of us with exemplary class and leadership in all facets of his life. During his illness, Tim personified everything

30 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

that made him such a successful man, husband, father, and friend. He will be missed by many, however his positive impact on the collision industry will continue to benefit many who did not have the pleasure of personally knowing him.” Tim is survived by his wife of 41 years Mary, daughters Shauna (and husband Ryan) and Krista (and husband Victor), son Noah (and wife Hilary), and 10 grandchildren whom he adored. Funeral arrangements are not yet finalized. When they are made available by the family, they, along with information to send cards, flowers or donations will be posted on the Fix Auto USA home page at www.fixautousa.com.

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Princeton Man Forgets Car at Repair Shop, Reports it Stolen

Police received a complaint about a stolen car back in November, only to discover two months later that the Trenton, NJ man’s vehicle had been at a collision repair shop the whole time. According to Sgt. Mark Lee, the 55-year old reported that he parked his Toyota Sequoia at a lot at 502 Carnigie Center in West Windsor sometime between October 29 and November 3, stated Keith Brown of nj.com. While the investigation was underway, the man called police on January 6 to say he found his car. Lee told Brown that the man dropped his Toyota Sequia off at a repair shop in Kingston before picking up his primary car and heading to Miama, FL for a weekend getaway. He had forgotten it was there.

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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 31


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H OND A C ONN ECT I CUT

Lia Honda of Enfield E nf ield

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Schaller Honda New Britain

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O’Donnell Honda E llicot t City

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Ourisman Honda of Laurel Lau rel

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Northeast News with Chasidy Rae Sisk

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

NY Auto Body Shop Owner Develops Tiny Homes for Homeless: “Building Lives, Not Just Houses” Despite our recent recession, America is generally considered an affluent nation, so it may come as somewhat of a surprise that, according to 2013 reports, there are over 600,000 homeless people in America. Even more disturbing is how these individuals are treated and looked down on by society. Carmen Guidi, owner of Guidi’s Collision Shop in Newfield, NY, decided that it’s past time to do something about the problem of the homeless in his community because “I couldn’t just see how hard some people were living and not do something. There, but for the grace of God, could be any of us. People need some space and a chance to get back on their feet.” That chance has come in the development of Second Wind Cottages, a series of 320 square feet bungalows designed to house homeless men. After returning from a mission to Haiti in 2010, Guidi began working with the homeless in his area, many of

whom resided in “the Jungle,” an informal homeless community filled with men and entire families who’d run out of other options. The “tents” sheltering these individuals are frequently constructed of tarps, duct tape and milk crates, hardly sufficient to provide protection from the harsh winter elements. As Guidi spent more time befriending the Jungle’s residents, he realized “the experience of trying to get assistance is so frustrating and difficult that many people feel trapped. Anybody, with a few bad breaks, could find themselves in this situation. It’s overwhelming for people with addiction or mental health issues. I felt so strongly that there needed to be a way to provide a safe sanctuary for a person to be able to break out of the cycle and take some time to piece their life back together.” Noticing that most of the men didn’t do well in low-income apart-

ments and shelters, Guidi began helping these guys temporarily escape homelessness with camping trailers, but then, “I asked myself how I would like to live in that situation. Housing services didn’t work because the men were drawn back into the same lifestyle, and they’d end up back on the streets. After watching people fail for a few years, I began to think that small, affordable homes made the most sense; they’d still be part of a community, but it would provide these men with more independence than other options.” Fortunately, Guidi owned seven acres of vacant, level land behind his collision repair facility which he decided to use to make his dream into reality. Although Guidi personally contributed substantial funds as well, he quickly realized that he could not afford to finance the project completely on his own, so he reached out to Community Faith Partners to ex-

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plain his objective. Guidi recalls, “the right people showed up, rallied and began fundraising. After that, we didn’t face too many difficulties. We went through the necessary steps, such as acquiring permits, but we didn’t really encounter any barriers. Some of the engineers involved with the project were amazed at how smoothly everything went. It’s really been a big faith walk for myself.” At first, members of the community were hesitant, fearing trouble from a housing development for the homeless, but Guidi held monthly meetings to address their questions and concerns, and after a few months, “most of the attendees got onboard and helped us. Once they understood what it was all about, they really turned around. We have about 99% of the community’s support now.” Community Faith Partners’ fundraising efforts generated over $160,000 toward construction costs,

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and from there, the community began chipping in. “It became a grassroots efforts,” Guidi states proudly. “The Ithaca community really got involved. Businesses donated supplies, and individuals donated their time and labor. It was just a matter of connecting all the dots. Hundreds came out to construct the cottages; our volunteer labor force was absolutely incredible!” The name, “Second Wind,” came to resident Tom Persun in a dream while the project was still being planned, and Guidi approved of how the name reinforces his goal of giving these men an opportunity to start over, a second chance or “second wind.” Providing people with another chance is important because Guidi realizes, “life isn’t easy. People deal with life in different ways. Some people turn to alcohol, some people turn to drugs, some people turn to eating, some people turn to other things. We have to deal with it the best we can.” Since the objective of Second Wind Cottages is to provide homeless men with transitional housing and support, away from stresses and temptations, rules have been established for living in the development. Guidi feels that the rules set forth are fair and rea-

sonable; “the men living at Second Wind must be clean and sober, or at least working toward it. While grace is given for slips, we expect our occupants to do their best to remain clean and sober so that they can really start over.” The first seven cottages were completed in January 2014 and are all currently inhabited. Each identical cottage consists of a single room, containing a living area, space for a bed, and a fully-equipped kitchen, as well as a separate bathroom. Each unit has a separate septic system and is serviced by Newfield’s town water system. There is a waiting list for the cottages that remain to be built. When completed, Second Wind Cottages will contain a total of 18 cottages as well as a large community building. Guidi anticipates that it will take two more years to complete the project, but homeless men interested in being added to the waiting list can fill out an application on Second Wind Cottages’ website. As far as costs for these men, Guidi says, “our friends are expected to pay a program fee as they are able, which includes utilities; however, it’s not based on the amount of time they

live there but rather on their ability to create an income.” The project has yielded many positive feelings from its residents who are grateful to receive a second chance to rebuild their lives. Guidi shares the stories of two residents: “One man had a criminal background and was labeled by society, so he couldn’t find a job, forcing him to live in a virtual cave which he called his tomb. It took a couple years, but now, he’s working two jobs and told me ‘I feel like a dead man that’s come back to life.’ Another man who was homeless for ten years is doing well now; he works at our local emergency shelter and has even been reconnecting with his family from whom he was estranged.” Guidi has also begun ministering to single moms with children who are in situations that have left them homeless, and a separate property has been purchased several miles away from Second Wind Cottages where Guidi plans to build another development of small homes for women and children. Because there was an immediate need, they’ve already built one home to house a young mother and her children, but Guidi is planning to develop

the land into a project similar to Second Wind, pending funding, once his first project is complete. In the meantime, Guidi continues doing outreach and spending time with the homeless to build relationships. “We need to build trust,” he emphasizes. “We want to build a community that includes the homeless in it. When I was first confronted with the issue of homelessness, I couldn’t believe it happened in this country, and I don’t think our Creator wanted it to be this way. Building houses is secondary; building relationships is the key to our success. We’re not just building houses; we’re really building lives.” For more information on Second Wind Cottages or to get involved, visit www.secondwindcottages.org.

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A Lean Process Helps Shops Become More Efficient and Profitable by Stacey Phillips, Assistant Editor

Any collision repair shop can become more efficient and increase its profits by incorporating “Lean Processes” into their business, according to Steven Feltovich, Manager of Business Consulting Services for Sherwin-Williams Automotive Finishes. Feltovich shared his knowledge about the benefits of lean processes during a recent SCRS seminar at SEMA: Leaning on Process for Profit Improvement. As a consultant for the past 15 years to top industry executives at collision centers across the U.S., Canada, Central America and the UK, Feltovich often observed a difference of perspective between what a shop owner “thinks their business is” versus “what it actually is.” He encourages shop owners to ask themselves how to improve their business and then create a strategy to move forward. “The ideal state is what we should be pursuing for the business,” he said. Most shops have repaired cars the same way for years and when confronted with a problem, Feltovich said owners typically address it by adding people, space, equipment, inventory or data analysis. Instead, he said they should be addressing their process. “Process is just eliminating the traditional models because the leaner the shops get, the better it is for customer value.” He noted that Greg Horn, VP of Industry Relations for Mitchell International, recently discussed the growing trend toward lean process improvements. Horn observed, “There is continual market place pressure on collision repair centers for increased efficiency and enhanced customer service. As a result, many top shops have begun implementing what is referred to as ‘lean processes or lean management.’” Feltovich couldn’t agree more and cited the UK as an example. The average cycle time in the UK is three days versus 10.4 days in the U.S. In addition, 10 cars are painted per day per single booth in the UK and they have a six-hour average touch time per car each day. In comparison, three to four cars are painted per day per single booth in the U.S. and the average touch time per car is two and a half hours. Shop owners who do not embrace change, even the ones who consider themselves successful, are putting

themselves at risk in the future, said Feltovich. “Rely on that old success and tomorrow you will be obsolete, whether you want to be or not – you will be,” he said. “Businesses become obsolete every single day because they don’t progress forward, they don’t see the big picture.”

Steven Feltovich, Manager of Business Consulting Services for Sherwin-Williams Automotive Finishes

At the center of lean process is efficiency, which Feltovich defined as “achieving maximum productivity with the least amount of effort or expense.” He recommended mapping out how the business operates and asking the fundamental question: how well does the process actually accomplish its intended purpose? Some of the wasteful activities he mentioned that often take place at shops include: ● waiting for information, ● checking inventory levels, ● setup time, ● locating missing parts, ● repairing broken equipment, ● re-evaluating situations due to lack of communication, ● waiting for job assignments, ● unnecessary movement, and ● unused employee creativity. Feltovich used the example of “dead” vehicles just sitting in the production area not being worked on, and encouraged shops to cut back on the amount of time any vehicle sits idle. One suggestion is to detect all of the damage and repair requirements prior to loading the vehicle into the workshop, so there is only one parts order, saving both time and money. Other strategies he pointed out include bagging all vehicle parts for protection and staging parts for body repairs. “Parts carts” can also help by following the car throughout the repair process.

36 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

“Lean processes tie two critical components together – efficiency with effectiveness,” he said. “Now we’re not only doing things right, we’re doing the right thing.” Throughout his 35-year career, Feltovich has worked with dealerships, independents, insurance companies, OEMs and automotive refinish companies. “Our industry is changing in a very dynamic way,” said Feltovich. “If you’re not getting better everyday, you’re falling behind.” In order for shops to move forward, he stressed the importance of establishing a culture where all employees are actively engaged in improving the company. “Ninety percent is about culture and 10 percent is implementation,” said Feltovich. Over the years he has found that middle managers often get in the way of lean process improvement. “The idea of giving up control to employees doing it better than you is a frightening position to be in.” However, in order to create change in a shop, he said it is important to get all employees on board. “Everyone from the detailer to the front office person to the

owner should have one common goal – create customer value.” The lean process was pioneered by Toyota. Feltovich recommends that shops read “The Toyota Way,” written by Jeffrey K. Liker, for tips on management principles in order to get lean. “Tables and numbers only show us the result,” said Feltovich. “What we want to do is get ahead of the results and create a process that drives the financial results that we need in order to grow and stay in business.” He said customers want it “fast, free and perfect.” By delivering value from the customer’s perspective, continuously improving your process and eliminating waste, Feltovich said there are numerous benefits. These include reduced cycle times, higher quality at lower overall costs, better use of machine time and facility space, less internal stress and less inventory on hand. “Lean process absolutely works. It works in any business. Get it right, it’s incredibly sound. Get it wrong, it’s very disruptive.” For more information about lean processes, contact Steve Feltovich at steven.j.feltovich@sherwin.com.

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On Creative Marketing

Re-Structuring For Renewal with Thomas Franklin

Nature provides us with many wondrous examples of renewal. The snake sheds his skin and appears with a new one. The caterpillar metamorphasizes into a colorful butterfly. As we once again move into a New Year, perhaps it’s time to renew and re-create a powerful forward thrust to gain new, better, or more profitable business. I see the most successful shops in my area looking to a future of change. Technicians are being re-trained to repair new vehicles. Many shops are taking marketing into cyberspace and creating a presence on many social media sites. They also now ask customers and prospects foe their e-mail address. This task of actually doing it is often left to office personnel, customer service representatives and estimators. In the rush to get a customer’s information so an estimate can be written and hopefully the job and the keys to the car obtained, asking for an e-mail address and other vital statistics is often omitted. A book that’s been around a while called “The Path of Least Resistance,” by Robert Fritz, tells us why this new task (and many others) are not carried out and put into practice by employees. Fritz says, “Structure determines behavior.” If behavior isn’t changing, the problem is often with the structure. To illustrate this fact, he describes someone driving a car with a structural problem, out of alignment. If the car is pulling to the left, the driver steers

slightly to the right to keep the car moving straight ahead. Steering straight ahead will not improve the situation. Similarly, giving an employee a new or additional task to perform, without changing the structure to facilitate the task, will seldom result in the employee consistently carrying out the task. From his or her own point of view, the employee may feel the task is “out of alignment” with the structure of his or her job or workflow. A vehicle’s structure must be corrected and aligned to fix the steering. Fritz says to make a change that will be accepted, the change must be structural. In our industry, we are keenly aware of the importance of structural integrity. We’re all familiar with the structure of a vehicle, but what are the structural elements of an employee’s job? Time is an obvious element. If an employee’s day is fully scheduled and you add more time-consuming work without reducing something already being done, he or she will either reject the new task, or drop out some other task arbitrarily. Time must be restructured to accommodate the new task. Another main structural element, from the point of the view of the employee, is compensation. A typical attitude is, “If I’m not being paid more to do this, why should I do it?” Adding a bonus or commission is a structural change that may motivate many employees to take on an added task (if it’s profitable enough for them). And, of course, if

Fake Drivers’ License ‘Ringleader’ Sentenced to 6 Years

A former northern NJ resident who authorities say ran a multi-state scheme that provided fake driver’s licenses and other documents to people in the country illegally has been sentenced to prison, according to Claims Journal. A federal judge in Newark sentenced Young-Kyu Park to six years in prison. The 58-yearold former resident of Fort Lee was one of nearly two dozen people charged in June 2012. Park was living in Los Angeles at the time of his arrest. Suspects were arrested in New Jersey, New York, California, Nevada, Virginia and Georgia. The U.S. attorney’s office alleges Park obtained blank immigration forms

that were then filled out with customers’ personal information and used to procure driver’s licenses and other forms of identification. The ring also produced counterfeit documents including passports. Among those arrested was a contract employee of the U.S. Citizenship and Immigration Services who was convicted of stealing the forms used in the scheme.At the time of the arrests, the U.S. attorney’s office said as many as 700 transactions involving fraudulent documents had been identified, most by South Koreans who were in the United States illegally and who each paid between $3,000 and $4,500 for the service.

38 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

it’s profitable for you! Some re-structuring is similar to the “replacement principle” used to help smokers quit the habit of smoking. Cigarettes are replaced with gum, a patch or perhaps eCigarettes to bridge over the change. Some habits are so ingrained, we’re hardly aware they’re habits. For example a couple of shops have been trying to upgrade their images. Both shops have spray booths that are seriously out of date. The problem is, both shops have been turning out good quality work for a long time with their existing spray booths. It’s hard to change a habitual activity when it seems to work well. But insurance companies are becoming more demanding every day, pushing for faster and shorter cycle times. If these shops are serious about growing and acquiring new insurance business, they will break the “old spray booth habit” and replace it sooner rather than later.

When we think of renewal, it’s natural to think of adding new equipment, new facilities, and new procedures, but first it may be necessary to engage in some subtraction. Even the snake that sheds his old skin to display a new one has to first get rid of the old skin. As noted earlier, old marketing habits have to change too. Many new marketing methods require costly personnel familiar with all of the social media strategies. What can a shop owner with a limited budget do to get marketing results? Perhaps the answer can be found in the concept of “structure.” The structure of a vehicle is a fixed base. It doesn’t change from day to day. Effective marketing must go on day after day. Contacting referral business monthly is a must. Communicating with prior customers on an on-going basis is a structural necessity. But a better structure may exist and finding it may be the key to profitable renewal.

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Historical Snapshot

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

Retro News: CA’s BAR Talks About Fraud, ‘Internet Body Shopping’ in OH, DiLisio on Getting Involved, Edelen on Skills Erosion with John Yoswick

20 years ago in the collision repair industry (February 1995) In the videotaped interview with an official of the California Bureau of Automotive Repair (BAR), BAR’s Allen Wood explained his agency’s concern with the fraud and lack of training it has found in the collision repair industry in California. “It’s to the point where it’s so bad we have to do something about it,” Wood said. “We’re going to get more aggressive in the area of autobody in the next 12 months. You’re going to see it.” Wood said the BAR’s field staff of about 200 people works closely with insurance and law enforcement agencies and uses a fleet of about 300 vehicles to conduct undercover investigations of suspected shop fraud. “I would like to think that any autobody shop owner in the state of California, when any car drives to his

front door, should think maybe that’s a number of shops in that state for fraud, Bureau of Automotive Repair car be- including several Caliber Collision cause it can happen to anybody, any shops. After retiring from the BAR, time, any day,” Wood said. “We have Wood later served as the executive didone everything from suspending licenses to revoking licenses.” Wood said one of the most common problems found are repair invoices that do not accurately reflect what was done to the vehicle. “If an autobody repairer prepares an accurate estimate and an accurate invoice, and does what he says he’s done, he’s not going to have any In 2005, industry consultant Lou DiLisio was in his secproblem at all with the Bu- ond year as chairman of the Society of Collision Repair reau of Automotive Repair,” Specialists (SCRS), urging shops to get involved with one or more of the industry’s associations Wood said. rector of another California autobody – As reported in Autobody News. Indeed, in the decade that followed, the association. California lawmakers last California BAR cited or shut down a year passed a law requiring the BAR to

demonstrate to a legislative committee “a compelling public need for the continued existence of the bureau and its regulatory program.”

15 years ago in the collision repair industry (February 2000) Bob Juniper is bent on enticing car owners to enter the illusion created by the Internet. They never have to see one of Juniper’s 12 Three-C Body Shops in central Ohio. With a few clicks of a computer mouse and a phone call, they can arrange to have their vehicle fixed. In the near future, the phone call will be unnecessary. Customers will know Juniper and his shops without ever talking to him or setting foot insider one of his repair bays. Three-C could be in central Ohio or central California. It could have clean, wellfurnished waiting rooms, or no waiting rooms at all. Customers won’t know or care. They will know Three-C only by

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what they see on their computer screens. “We have a digital camera in our spray booth,” Juniper says. “When a car comes in, we call the owner and tell him to go to our website and take a look. They really get a kick out of that.” – From a column by Tom Slear published in Collision Expert on the role the Internet is likely in the collision repair industry. Three-C now has one primary repair facility with three satellite claims centers (and offers mobile and online estimating). But it also offers “The Pink Button,” a mobile phone app that it says allows customers with one click of a button at an accident site to arrange for a loaner car and a tow of their vehicle to Three-C.

10 years ago in the collision repair industry (February 2005) Lou DiLisio, in his second year as chairman of the Society of Collision Repair Specialists (SCRS), doesn’t always disagree with those who question how much associations accomplish, but he defends their importance and value. “I will be the first to admit that associations do not provide all the answers, but there is no question some of the finest people in the industry get involved to make things better for all the

rest – albeit not as quickly or as completely as anyone would like,” DiLisio said. “But [getting involved] is better than staying in the shop complaining, with little if any chance of changing things. I can honestly say that I was like that years ago as well. It wasn’t until I became involved that I realized just how hard these organizations work on our behalf.” But, he said, too often people view industry issues too simplistically. “The reality is that there are extenuating circumstances to every situation and it often requires patience and compromise—which is mistaken more often than not as passive behavior,” he said. “I feel it is important for those who stand on the sidelines to become involved. I completely understand that is difficult to do, but the most important thing to remember is that no matter how little appears to be accomplished, at least something is being done. With the participation, guidance, support and commitment from others, we would be able to accomplish so much more.” DiLisio hopes that shop owners will see the fact that there are multiple associations as an opportunity and not a discouragement to participation.

“We are collectively working together on a number of issues to promote a united front and remove redundancy from specific tasks,” he said of the three associations. “There are only so many dedicated and involved individuals in the industry who have stepped up to serve at these levels, and we’ve all finally realized that with limited resources and even more limited time, we need to work together in order to be most efficient in achieving our goals.” – From an article in Automotive Report on the three largest associations representing the collision repair industry. DiLisio, a former shop owner, has worked as a consultant in the industry since 1999.

5 years ago in the collision repair industry (February 2010) During a panel discussion at the recent Collision Industry Conference (CIC), I-CAR CEO John Edelen shared his opinions on the nation’s economy and some of the industry’s challenges. About a year after he delivered a fairly bleak short-term assessment of the economy, Edelen said he continues to believe unemployment could remain high for as much as the next five years, with Americans slow to return

to “pre-melt-down spending habits.” He said what keeps him up at night is the growing challenge Americans will face in finding skilled craftsman to repair their refrigerator, HVAC or car—or what he called the “erosion of careers for young people who want to work in a skill-based environment.” Pressures on margins for shops and insurers, Edelen said, “suggests to me that there will continue to be an under-investment by our industry in technical development. That combined with the workforce that we have access to, at the education level and the salary level that employment segment is willing to work at—it all doesn’t create a very pretty picture.” He said insurers and repairers have yet to identify and develop a win-win solution. “Do I believe it’s there? I absolutely do,” Edelen said. “But in an industry that has always been a zero-sum game, where for me to win you have to lose, I just don’t see us making the progress that really can be made. It’s a mentality that needs to change.” – As reported in CRASH Network (www.CrashNetwork.com), February 22, 2010. Edelen, previously an executive with Allstate, retired from ICAR later in 2010 after leading the organization for about three years.

www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 41


From Grandma’s Vacuum to Serious Spray Finishing Technology: Turbospray HVLP by Bill Boxer

If you saw an ad in your trade magazine that said “SPRAY WITH LESS MESS AND OVERSPRAY,” How would you react and respond? 1. No way! Just another advertising “come-on.” 2. I saw it years ago and it had limitations. 3. Interesting! 4. Tell me more. 5. Show me. Almost 35 years ago I saw a fullpage advertisement in a Piano Technicians Journal that headlined “SPRAY WITH LESS MESS AND OVERSPRAY.” My responses were numbers 3, 4 and 5: Interesting, Tell me more and Show me. At the time I was re-

building and refinishing pianos and had a significant need for a better way to spray-finish the pianos we were producing. I purchased the system, used it extensively and became passionate about the technology as it produced all the results promised from an excellent finish to dramatically reduced overspray along with many other benefits.

The Story If we turn the clock back 50+ years it was discovered that exhaust air produced by a vacuum cleaner had the ability to atomize fluid. Taking it to the next level, it became apparent that the fluid did not cloud the environment in which it was being used and also that the fluid being projected seemed to last much longer. For many years no one took this concept seriously since environmental concerns were not yet upon us. The coatings and finishes we used were fairly inexpensive and industry was less concerned with the lost product and related costs. The Real Beginning Jump to the early 1980s when turbospray technology found its way to the USA from its European roots; enter

environmental concerns and you have the true beginnings of what today is known as HVLP. Through the 1980s turbospray technology started to take root, having early exposure through many market segments. At this point it is important to separate HVLP turbospray technology from HVLP spray guns that work with a standard air compressor. HVLP Turbospray Technology is the original product that achieved notoriety and where the HVLP name was established. HVLP spray guns that were developed to use with a standard air compressor were an offshoot of the original technology. HVLP turbospray systems do not use compressed air. Air is generated from a high power impeller/blowertype motor that travels through the supplied air hose to a spray gun that is designed to effectively convert the high volume of air produced by the blower motor to efficient low pressure atomizing air to achieve the benefits that HVLP turbospray technology offers. Those benefits are a continuous delivery of clean, warm, dry air, dramatically less overspray that interprets to a documented 38%–40% savings on coatings use and the ability to be either an easily portable system or set up for a fixed-base use. Sound too good to be true? Well, it is true, and every day is being discovered by more and more finishers in the auto finishing and refinishing business: mobile or fixed-base. Now, what more do you need to know to understand HVLP turbospray technology and if it’s so good why isn’t it being used universally instead of compressed air?

Early Hvlp Turbospray Systems OK, let’s backtrack again. Early HVLP turbospray systems offered technology that was limited to low to medium viscosity products. Most turbospray systems only provided one fixed atomizing pressure. Nozzle, needle and air cap technology was limited as well. A few HVLP manufacturers prematurely approached the automotive market back in the 1990s with technology that wasn’t yet ready for the market. While a few finishers experienced positive results if they were spraying very low viscosity single stage paints or very thinned automotive lacquers, most found the application slow and short of expectations.

42 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Today’s modern automotive coatings as well as the new waterborne products require far more pressure than these early systems offered.

Hvlp Turbospray Systems Today Jump back to today and now you have available the superb benefits of HVLP turbospray technology with equipment

designed to provide higher atomizing pressure to give you the desired results with base coats, metallics, clear coats, fleet coats, solvent or waterborne with

sophisticated HVLP turbospray gun design and specialized nozzles, needles and air caps along with variable pressure control and additional professional features. So, what’s in it for the finisher? A cleaner work environment, less booth maintenance, the ability to add work stations and most of all the added money in your pocket from using less paints and I don’t need to tell you the cost of those products. Maybe I forgot to mention the great benefit of the clean, warm dry air not only for applying solvent finishes but the absolute need for clean dry air when applying waterborne finishes. Yes, no expensive driers needed. Dare I say that you owe it to yourself to look at HVLP Turbospray? Thirty-five years ago it worked for me. The TURBOPRO HVLP Series for automotive finishing is manufactured by Apollo Sprayers International, Inc. in Vista, California and made in the USA. For more information, contact 760-727-8300 or visit www.TurboProHVLP.com. For additional information contact: Bill Boxer, bill@hvlp.com 760 201-4157

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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 43


Shop Showcase

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

Does Being a Green Shop Improve the Bottom Line? with Ed Attanasio

Known as the Greenest Shop in the USA, Selecta Body Shop in San Francisco’s Mission District has received major praise, top reviews and now a prestigious award for running an environmentally responsible business. But, the burning question that probably every body shop owner anywhere

Owners J.R Hubbard and his wife Jackie have watched as their business has grown without compromising their beliefs about running a business that is better for the environment

wants to know is does being green increase profits or in the end, or does it just help the owner to sleep better at night? Do customers care and maybe more importantly—do the insurance companies care? Being in it to win it when it comes to being 100% green from the first day he opened his doors, Jeremy “JR” Hubbard, the owner of Selecta Auto Body has now been in operation at his current location for almost two years. Since opening, he’s refined his processes and further embraced the green way of doing things, while trying to be a fair employer in every aspect of his business. To this end, Selecta Auto Body is the only collision repairer in the country today that has achieved B-Corp certification, by meeting rigorous standards of social and environmental performance, accountability and transparency. Sure, Hubbard wants to make money and fix cars right, but more than anything else

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ployees.” It took two years of hard work to turn an old building into Selecta’s new 10,000-square-foot facility and it ate up just about all of Hubbard’s funds to make it a reality, he said. But since starting business in April 2013, the numbers have slowly edged up, to the point where he can say that November 2014 was his first profitable month after fixing 65 cars. “We still want to do 100 cars monthly, because we can Selecta Body Shop has started turning a profit after opening handle the volume and that’s in 2013 and being green has definitely played a pivotal role been our goal,” Hubbard explained. “The numbers are improving sible member of the business community. Part of being a green operator in a every month and the future looks solid. We picked up two great DRPs very environmentally-conscious city like San Francisco and maintaining the during the last four months of 2014 and now we have a total of three. We B-Corp certification means that I can hopefully make money, but also we easily absorbed the increased workload during the fourth quarter and now want everyone to win—my customers, we’re excited about 2015.” my family, my neighbors and my em-

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Last November, Selecta Body in every room of the shop so the lights Shop won a significant award at the turn off when the room is not in use and 2014 SEMA Show in Las Vegas, when uncovering the building’s skylights and AkzoNobel Automotive & Aerospace front windows to use natural light Coatings Americas (A&AC) anwhenever possible. He also mounted nounced that three North American more than 350 pothos plants on the companies were selected as winners of wall to bring fresh air to the shop. He the fifth annual FIT Sustainability purchased an oversized Global FinishAward, an industry recognition proing Solutions downdraft heated spray gram honoring businesses and organizations that are actively engaged in practices that advance the concepts of sustainability. Selecta took one of the three coveted spots, which was a big deal for a lot of reasons. “Being green is definitely a plus, especially when it comes to marketing,” Hubbard said. “It all works hand in In operation since April 2013, Selecta Body Shop in San hand and awards like the FIT Francisco is called an “ultimate green shop”, featuring the newest, cutting-edge techniques for saving materials and Sustainability Award from energy, among other things AkzoNobel are a huge deal. To be honored at a show like SEMA booth so that he can paint more cars and having other shops interested in and parts simultaneously, thereby savwhat we’re doing, that’s beneficial for ing time and materials. The shop features two curtained-off areas, one us and the industry as a whole.” Hubbard truly walks the walk dedicated for prep and the other for dewhen it comes to being green. Some of tailing work. Hubbard is also gearing up for the the more notable things he’s done to his shop include installing motion sensors collision industry’s rush to aluminum.

“We know that aluminum is coming, but to what degree nobody really knows.” Hubbard said. “So, right now we have an area dedicated for aluminum work when we get it. We don’t have a ton of extra space here and we’re taking full advantage of what we currently have, but when aluminum becomes a significant amount of our volume, we’re ready.” There was definitely an added cost to building what Hubbard describes as “the ultimate green shop,” but once it was up an and running, it was all worth it, he said. “Some shop owners may think it costs a lot more to be green, but it’s really not that more expensive overall, because we’ve cut our waste and it is definitely showing up in our bottom line now. We don’t waste anything and we’re coming from that mindset, so once you get into being green, the benefits start to become apparent.” By using more natural light whenever possible and painting all of his floors with reflective paint, insulating his ceilings to retain heat and installing motion sensors on all his lights. Selecta’s utility bills are lower. And of course, by saving paint, clear coat and sealers with every car painted, it adds

up to offset his original investment. “It starts to make more and more sense after you’ve done it for a while,” Hubbard said. “We’re using fewer products to fix our customers’ cars without sacrificing quality and that’s the important thing.” Do customers in San Francisco really care about the fact that Selecta Body Shop is a green shop and did it help him to land his most recent DRPs? “I would say yes to both questions,” Hubbard said. “I believe 100% that our customers care. If they don’t know it initially, we let them know and most of them say very positive things. If we do a good job on their car and on top of that we’re a green shop, yes—I believe they will come back. And do the insurance companies see any value in the fact that we’re doing things with the environment in mind? I definitely do—if they can align themselves with a forward-thinking, responsible company—why not?”

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Parts Hours: Mon-Fri: 7:30-6:00; Sat: 8-4 email: Ifsparts@fitzmall.com 905 North Frederick Ave., Gaithersburg, MD 20879 www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 45


Northeast News with Chasidy Rae Sisk

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

Final Appeal in CT Hartford Case: the Hartford Seeks to Overthrow $35Million Verdict On Tuesday, January 13, 2015, the Connecticut Supreme Court heard the final appeal in the class-action lawsuit brought against The Hartford Fire Insurance Company by more than 1000 collision repair facilities in CT over a decade ago. Previously, a jury found that the insurer violated Connecticut Unfair Trade Practices Act (CUTPA) by attempting to fix collision repair labor rates in the state. Now, The Hartford has appealed the ruling in order to ask the CT Supreme Court to overrule the lower court’s verdict that would award $34.7 million to the plaintiffs. Although the CT Supreme Court will not issue their decision for up to four months, Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), was present at the appeal and shares his thoughts: “Both sides presented their arguments with our side focusing on the merits of the case and the fact that a CT jury found The Hartford guilty of unfair trade practices. By contrast, The Hartford tried to argue that it should get a free pass by changing the law of CUTPA that has been applied in CT for over forty years, even though the

evidence showed at trial that The Hartford intentionally ignored the law and then tried to cover it up. I believe that the merits of our case are strong and we had the better arguments, and I remain hopeful that the Supreme Court will agree.” This long process with The Hartford began in 2003 when over 1000 independent auto body shops in CT filed a class-action lawsuit against the insurer, claiming The Hartford had lowered pricing in their state by suppressing the labor rate through their appraisers and by unfairly steering consumers to preferred shops on their direct repair program. When the trial was brought before a jury in November 2009, a $14.7 million verdict was delivered against The Hartford, though legal counsel for the insurer says the jury rejected the claim of unfair steering practices. During the 2009 trial, the judge explained the “Cigarette Rule” which was developed during cases that challenged tobacco products’ television advertisements. The Cigarette Rule requires certain criteria be met before a jury can determine that a defendant engaged in unfair trade practices, and

My name is Cesar R. Lopez and I used to own a body shop under the name of CRL in El Paso, TX. I started my business over nine years ago with only $3,000 in a small warehouse and soon I found myself outgrowing the space. A couple of years later God blessed me with a bigger and nicer location. My business was booming. I was never a preferred shop to any insurance agency nor did I want to be. All of my customers came from word of mouth and recommendations. I had become very successful at 31 years old (I am 36 now). Unfortunately, I made the biggest mistake any business owner in my opinion can make. I had decided to leave my business under the mercy of “managers.” Thinking that these managers would have my best interests and also take care of my customers. No one can ever take care of my business the same way I would. Now I know that.

I will and I have taken responsibility for everything that happened at CRL and no one is to blame but me for not being there. In 2009, there was a severe hail storm in El Paso which brought me a tremendous amount of customers. I had to park vehicles across the street because there was no space in the shop. That’s when everything went wrong… Overwhelmed with work + bad management = unsatisfied and angry customers. Even though much has been said and alleged, my only mistake was to take too long with those customer’s vehicles. I understand that taking long with a vehicle could be frustrating and aggravating to anyone. I have taken responsibility for many of the mistakes that I have made as a business owner. I am far from perfect and I will make mistakes, but I have and will keep learning. That’s

the jury determined that The Hartford had violated the rule by offending public policy as a statute within the Regulations of CT State Agencies requires that each insurance appraiser deliver fair, impartial appraisals. Although The Hartford filed a post-trial motion arguing that jurors should have focused on whether the alleged CUTPA violation caused substantial injury to consumers, competitors or other businesspeople, and that the evidence was insufficient, even under the Cigarette Rule, to support a CUTPA violation, the trial court denied the posttrial motions and awarded a judgment in the amount of $14.7 million to the plaintiffs. In June 2013, Stamford Superior Court Judge Alfred Jennings added an additional $20 million in punitive damages to the ruling, claiming that no specific statute must be violated for there to be a CUTPA violation if plaintiffs can prove a blend of various unfair acts.

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Cesar Lopez Responds to Criticism and Charges

See Cesar Lopez, Page 46

46 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Despite these rulings, The Hartford appealed the ruling, arguing that, as labor rates were negotiated with and agreed upon by the collision repair facilities that brought the lawsuit against the insurer, their actions were not illegal or in violation of CUTPA. The Hartford’s lawyers also regard the Cigarette Rule as overly broad and insufficient in providing a clear definition of “unfairness” to businesses trying to act in accordance with the law. Now, a decade-long battle between The Hartford and over 1000 auto body shops is finally drawing to its conclusion. The final appeal has been heard, and everyone involved anxiously awaits a decision. Will The Hartford be forced to pay $34.7 million, or will the ruling be overturned to the chagrin of the state’s collision repair professionals (and possibly to the detriment of the state’s collision repair industry as a whole)? Stay tuned to Autobody News for the final decision!

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Continued from Page 46

Continued from Page 28

what life is about, right? Live and learn. The lawsuits were filed under deceptive practice, which is a crime and therefore got me arrested. I am legally fighting the filing. These cases were civil matters, but were taken to the extreme. Even though a lot of damage has been done to my person and to my business, I still want to clear my name for a crime that I am being unfairly accused of. Many of those lawsuits were dismissed, settled and three of them after five years are still pending. Can this happen to anyone? I believe so. Has this been hard for me? Most definitely. Have I learned anything? Yes, to take care of what cost me so much to achieve, emotionally, financially, and personally. I will strive to be the best in what I do, to never look back and never give up. One thing I am sure of… if owning a business was easy, everyone would do it. This is my passion I love what I do and I will keep on. Thank you for this opportunity. [signed] Cesar R. Lopez

Vacuum extraction of aluminum dust, in fact, has been standard in aerospace for decades, as lightweight aluminum has long been used as a primary manufacturing material. Now similar technology is being used in the automotive industry to control aluminum dust. A dedicated aluminum wet mix air filtration system, such as that stipulated by the Ford F-150 Collision Repair program, for instance, safely captures aluminum dust within the body shop at its source while using water to ensure potentially explosive aluminum dust particles do not become airborne within the unit. A wet mix air filtration system, also known as an immersion separator, essentially brings in the aluminum dust-laden air stream through water contained in the vacuum. One such system, for instance, by Clayton Associates, a Lakewood, N.J.based leader in source capture tools and vacuum sanding equipment, directs the air stream and aluminum dust through a series of air filtration baffles that bursts the air bubbles and thoroughly wets the

Cesar Lopez

Brace for Challenges

dust before the air exits the vacuum. The company also manufactures vacuums for aluminum dust ranging from air-powered portable dry units, up to single and multi-user immersion separators that use water to “wet” the dust out of the air stream. While Ford’s specific requirements call for an immersion separator, dry collection vacuum systems have been used in aerospace to capture aluminum dust at its source for over a decade. “The transfer of safe, high efficiency, aluminum dust capture technology like Clayton’s from aerospace to auto body collision repair is going to make our industry safer, cleaner and more efficient,” says Gardella, who is testing several of the vacuum and airpowered units around his shop. In wet mix technology, one challenge is that a wet aluminum sludge remains at the bottom of the vacuum. This needs to be emptied on a daily basis as part of proper maintenance to ensure safe operation. While some units require the user to drain the fluid, then extract the remaining sludge with a squeegee, this method fails to fully remove the sludge caked on the sides of the unit. This allows a potentially dangerous build up of aluminum to ac-

cumulate. Other units like Clayton’s immersion separator involve a gravity feed drain with a funnel-shaped bottom and water spray-down system inside. This enables a safer, full-system, flush out of aluminum sludge and facilitates daily maintenance. The aluminum sludge, in turn, must be properly filtered to satisfy regulation before the discharge can be emptied into the public sewer system. Aluminum dust vacuum units like Clayton’s immersion separator are designed to filter out such aluminum residue as it exits the unit, so it can be safely discharged into public sewers. As collision repair shops prepare for the lucrative new business that aluminum bodywork such as Ford’s F150 will bring, outfitting their shops with the necessary equipment will position them for a profitable ride. For more info, call 732-363-2100; 800-248-8650 toll free; Fax 732-3646084; email sales@JClayton.com; visit www.jclayton.com; or write to Clayton Associates, Inc., 1650 Oak St., Lakewood, NJ 08701, USA. Del Williams is a technical writer based in Torrance, California.

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VeriFacts Celebrates 3 Million Coaching Observation Milestone

VeriFacts Automotive is celebrating the milestone of having surpassed three million collision repair facility coaching observations since the company began tracking the data in 2006. A coaching observation is a physical inspection and onsite training by one of VeriFacts’ collision repair experts at the individual technician level of the repair process. The coaching observations were conducted as part of the VeriFacts Verified Quality (VQ) Program designed to instill consumer confidence that vehicle repairs have been completed safely, efficiently and transparently. Along with the milestone for coaching observations, VeriFacts has inspected over 118,000 vehicles and coached more than 14,000 technicians. “Our goal is to help collision repair facility owners, managers, technicians and consumers sleep better at night with the peace of mind that vehicles have been repaired according to the manufacturer’s recommendations and safety standards,” explained Farzam Afshar, CEO of VeriFacts. “We want to thank our team of coaches for their significant contribution in achieving this important milestone.”

Forward Lift Redesigns Website to Help Users Find Vehicle Lifts and Accessories Forward Lift has redesigned its website with new features that benefit potential vehicle lift buyers and current owners alike. The forwardlift.com updates include modern graphics, new product pages and additional information, all of which are better organized for easy navigation.

“In addition to improving the visuals of forwardlift.com, we’ve added multiple channels of navigation to help guide users through the site” said David Fischmer, Marketing Director for Forward Lift parent company Vehicle Service Group (VSG). “All products are accessible from the homepage or the new category pages, so users can go directly to a specific vehicle lift or browse among a group. This helps make the site more intuitive for a variety of people.” Forward Lift products are categorized on the redesigned site as car

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lifts, heavy-duty lifts, motorcycle lifts and accessories. Each category has a home page with links to individual lift models. On the product pages, users can zoom in on photos, find detailed specifications and see which accessories work with which lifts. An archive of Forward Lift manuals has been added to the site. The archive includes literature for current and discontinued lift models, so facility managers, technicians and lift service providers can find information for any Forward lifts that are installed in the shop. Current and potential Forward Lift users can also find guidance on hydraulic fluid needs, bay sizes, concrete requirements and other lift specifics on the new FAQ page. Links across the bottom of each page direct users to Forward Lift’s social media pages, www.facebook.com /ForwardLift and twitter.com/ForwardLift, videos on vimeo.com/ groups /forwardlift and recent press releases. Established in 1968, Forward Lift is a manufacturer of vehicle lifts for a wide range of customers, including independent repair shops, car dealers, body shops, national accounts, vehicle enthusiasts, hobbyists

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292 William S. Canning Blvd. Fall River, MA 02721 www.firstfordma.com www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 49


Social Media for Shops

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

Accident App is Pushing All the Right Buttons for Ohio Shop Owner with Ed Attanasio

By designing and developing a mobile app that can help people after getting into an accident, a body shop owner in Columbus, OH is pushing all the right buttons with his Pink Button app, available to his customers at no charge

The Pink Button is an accident-help app that was created by Bob Juniper, the owner of Three-C Body Shop in Columbus, OH with Leo Daugherty III, the owner of Rampart Hosting, Inc, also located in the Columbus, OH

In addition to all of its multiple functions, the Pink Button app provides common sense tips about what to do once you’ve been in an accident. A local law firm has also seen real value in this app and that’s why they’re paying to advertise on it

via Google Play or the App Store. Bob Juniper, the owner of Three-C Body Shop, Inc. in Columbus, OH has been thinking outside of the box for decades and now he’s happy to see that this innovative application is starting to gain momentum. After 2.5 years of development, Juniper is beginning to see some traction with the Pink Button accident app and the numbers are promising, to say the least. “We know have roughly 5,000 downloads since rolling it out back in February, 2013,” Juniper explained. “In December, we got almost 20 new customers from the app. These people got in an accident and then used it to inform us. They were amazed by how well it worked and each repair was completed seamlessly.” Since every repair at Three-C averages $3,000, which means the Pink Button brought almost $60,000 into his shop—all from the power of the Pink Button app. By working with Leo Daughtery III, the owner and CEO at Rampart Hosting LLC, a Columbus-based IT company to develop the app, Juniper believes that the Pink Button is achieving his main objective, which is con-

necting his customers with his shop. “Auto accidents are no longer stressful and disruptive in the Columbus, OH area with the Pink Button,” he said. If you’re in an accident, Three-C Body Shops offers full accident-scene service at no charge, simply by pushing the button. We’ve eliminated the drama associated with standing on the side of the road searching for towing services, looking frantically for a garage to take the damaged vehicle to or waiting for a friend or relative to pick you up so you can carry on with your day. The Pink Button is a safe alternative, because by using it, you don’t have to even leave your vehicle, which makes it even safer for women. If it’s dark or raining, women can have that peace of mind, because they know we’re on the way.” In short, this app allows drivers to do the following, all by simply pushing the button: ■ Their GPS location is immediately sent to Three-C, so they can call within seconds and confirm that they’ve been in an accident and need help. ■ The app then launches a tow truck and provides for a loaner car (if needed) to their location. ■ By using Glimpse, the driver is able to see exactly where the tow truck is precisely how long it will be before it gets there to help them. ■ Once the tow truck arrives, the car is promptly delivered to Three-C while the customer can go about their day. ■ The repair process begins right away and the people at Three-C handle everything, by contacting their insurance company, fixing the vehicle and detailing it. Daugherty and Juniper started talking about the Pink Button after the former got into an accident and took his car to Three-C. “A 30-lb. raccoon got in my way and is guess he won,” Daugherty said. “The service ay Three-C was great, but I noticed that the communication between me and the shop during the repair wasn’t exceptional. So, Bob and I started talking about how an app could play a role and that got the ball (or the button) rolling at that point.” Juniper agreed to embark on the design and development of the app, even though it wasn’t cheap. “It cost

50 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

me about $16,000 to build the app, debugging it and doing all of the testing, but now it’s obviously going to eventually pay for itself. We do a lot of radio advertising here in the Columbus market and in our ads, we constantly plug the app, so that has provided outstanding support for the app.” To further support the Pink Button app, Juniper has his staff 100% on-board and ready to respond fast when the app calls, he said. “We’re four-deep when it comes to our responders. Our two truck driver gets the message first, but three others also get it, so that someone will respond it anyone else is busy. We’re getting back to these people within 90 seconds on average, because we want to placate their fears and concerns quickly. The app is all about expediency and if the drivers don’t hear from us asap, we could lose that customer, so we make sure that a staff member is always there.” As a shop that is DRP-free, Juniper knows that time is money when it

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comes to acquiring direct customers, he said. “When I look at my competition, I’m not thinking about other body shops, I’m looking at the insurance companies. With this app, I’m able to get the customer long before the insurance company gets to them. I’ve already towed the car and gotten them a rental, so I’m controlling the relationship before they can steer me away to one of their ‘preferred’ shops. We have always been what we call a ‘Direct Repair Alternative,’ so the Pink Button nicely complements our business model.” Now that Three-C has seen how well the app works, Juniper and Daugherty are going to offer the Pink Button to other body shops nationwide. “We now know that the app’s effectiveness is not a theory, it’s a fact,” Juniper said. “We’ve identified approximately 250 independent shops that we think would be an ideal match for the app. These are forward-thinking shops that think outside of the box, just like us.”

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Fix Auto to Hold Annual Conference Sept. 20–23.

Fix Auto announced that its 13th Annual National Conference will take place September 20–23, 2015 at the Ojai Valley Inn and Spa, a luxury resort with a rich history located in timeless Ojai, California. The invitation-only conference remains a signature event for Fix Auto, bringing together Fix Auto members, insurers, suppliers, OEMs, and an impressive line-up of industry leaders. Fix Auto is committed to making 2015’s conference the most memorable one yet. It will feature the distinctive mix of speakers, breakout sessions, and activities for which the Fix Auto National Conference has become known, in a setting that fosters relaxation and inspires networking. “The conference is about collision repair professionals coming together for the free and open exchange of information, which is a core benefit of being part of our network,” stated Fix Auto President and COO Paul Gange. “Because of the unique content we produce, last year’s event sold out and we anticipate doing the same this year,” added Gange. To request an invitation, please contact Jonathan Herrera at 858.764.0756, www.fix auto.com.

Top Honors from IIHS Have Nearly Doubled Since 2013

The Insurance Institute for Highway Safety (IIHS) recently announced that 71 vehicles earned Top Safety Pick awards compared to 39 last year. The number of winners in the top tier— Top Safety Pick+—has increased by 11 for 2015, despite a tougher standard for front crash prevention. “This is the third year in a row that we are giving automakers a tougher challenge to meet,” says IIHS President Adrian Lund. “The quest for Top Safety Pick and Top Safety Pick+ awards is driving improvement in the small overlap front crash test and getting manufacturers to offer automatic braking technology on more and more vehicles.” While the bar has been raised for Top Safety Pick+, the criteria for Top Safety Pick are unchanged: a good or acceptable rating in the small overlap front test and a good rating in each of the Institute's four other crashworthiness evaluations— moderate overlap front, side, roof strength and head restraints (see “A higher standard: 39 vehicles meet new criteria for Top Safety Pick, Top Safety Pick+,” Dec. 19, 2013). The 2015 Top Safety Pick+ designation is awarded to vehicles that meet those criteria.

OSHA Tops 3000 Whistleblower Cases for First Time

A milestone has been reached in federal whistleblower cases, according to law firm Jackson Lewis PC. OSHA has investigated more than 3,000 cases in a fiscal year for the first time ever. It took on 3,060 cases during FY 2014, 91 (3%) more cases than during FY 2013. OSHA administers the whistleblower provisions of 22 federal statutes. OSHA did not disclose the number of whistleblower complaints it received in 2014 that were rejected after the initial screening and not investigated. However, a study showed that in cases filed from 2011 through 2013 under the whistleblower provision of the Occupational Safety and Health (OSH) Act, only 41% passed the initial screening. While the reasons for the increase are not clear, one explanation could be the elevated media attention given to large monetary awards and settlements. A Washington-based attorney who represents whistleblowers told Bloomberg BNA that punitive damage awards of $100,000 and more in Surface Transportation Assistance Act (STAA) cases and new Federal Motor Carrier Safety Administration (FMCSA) rules have encouraged drivers to bring claims if they are told to exceed legal driving hour limits.

Car Dealership in CT Taken Over by Mitchell Auto Group

The Dodge, Chrysler, Ram, and Jeep dealership on Damon Road in Northampton, CT is about to go through its second ownership change in the last two years. Robert Artioli and Anthony F. Troiana are handing their business over to The Mitchell Auto Group, which owns and operates seven car dealerships in Connecticut, according to Dan Crowley, gazettenet.com. Artiolo and Troiana own two Dodge, Chrysler, Ram and Jeep dealerships in Enfield and Colchester, CT. Steven Mitchell owns the company with his brother Mark Mitchell and directors Joe Baril and David Tefft, Crowley reports. The terms of sale have not been disclosed by either party. On January 5, the auto group asked for a car dealer license from the Northampton License Commission. Mitchel Auto Group has owned and operated a Chrysler, Dodge, Jeep and Ram dealership in Simsbury, CT since 1922. The Mitchell brothers hired nine employees to work at the dealership as of December 10, and are looking to gain 10-15 more over the next year.

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SCRS Open Meeting January 14 in Palm Springs, CA On January 14th, the Society of Collision Repair Specialists (SCRS) held an open board meeting in Palm Springs, CA. The meeting was open to anyone wishing to learn more about the current state of the association’s activities and pressing industry topics. Attendees were not required to be a member of SCRS to participate. The meeting included updates and presentations from SCRS staff and committees outlining current and future work initiatives each group has undertaken on behalf of the membership. The SCRS Education Committee presented two special presentations for audience members. The first, presented by Committee Chair Kye Yeung and Toby Chess, focused on new and innovative tools that can positively impact collision repair businesses. This was a follow-up to the January 2014 presentation on “Cool Tools for Today’s Vehicles.” In addition, the second presentation was led by Gerry Cecil, VP Sales and Marketing—Arrowhead Specialty Markets, Arrowhead General Insurance Agency. Cecil provided a brief overview of pertinent considerations for management of risk and the annual task of insurance renewals.

The following information serves as an introduction to the topic: Business Insurance: What are the significant issues for a collision repair business and what do I need to make a more informed decision? Most collision repair businesses are routinely involved with insurance companies. And in some cases, when a DRP is involved, the involvement is more than routine. Body shop owners should know what their options are and what is required in order to get a contract or agreement to generate revenue for their business. Considerations It is best to work with agents, agencies and companies that know and understand the industry. Ask fellow collision repair business owners for references.

Unique Exposures Shops have unique exposures and the insurance companies use unique coverage forms such as Garagekeepers and Garage Liability to provide that coverage. Shop owners need to be sure they are properly protected. All Coverage Is Not The Same Consideration should be given for

Two New Aston Martin Dealerships Open in US

coverage under mechanics errors or omissions so that the shop is covered for damage to the vehicle while it’s in their care. Additionally, every operation should be seeking protection or coverage for alleged acts of discrimination by not only an employee, but also customers or other businesses. Given the increased importance of group health insurance and employee benefits—errors or omissions in the administration of an employee benefits program should also be considered. When negotiating agreements with insurance carriers to become a member of their DRP network-collision repair business owners should work with their attorney and their insurance agent to be sure they are protecting themselves while complying with the requirements of the agreement.

Financial problems of Aston Martin have not prevented this British auto manufacturer from opening its new retail stores in the USA. After these openings, the total number of the Aston Martin dealerships in North America will be 46. They plan to increase the presence of the brand in North America by 21 percent. One of the new stores will be located in Minneapolis, MN and Morries Automotive Group was chosen by Aston Martin to run the store as the manufacturer’s partner. Initially, this dealership will be opened in Hopkins, Minnesota, but just temporarily. During the upcoming summer the location in Golden Valley, Minnesota, will be finished, so the store will relocate there on a permanent basis. The second dealership, Aston Martin–Nashville, has its temporary showroom in Franklin, Tennessee. The permanent dealership will be finished by the end of the year in Brentwood. As the automaker reports, both temporary showrooms are currently working.

Guidance For help with addressing the usual and not so usual insurance and risk management challenges of a collision repair facility, an insurance specifications** document is available to SCRS members.That document along with a Business Insurance Checklist can provide tools to make an informed decision.

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Maaco President Goes “Under the Hood” to Inspect His Business on Award-Winning Reality Series by Stacey Phillips, Assistant Editor

When Maaco’s President Jose Costa recently went “under the hood” to inspect his company on the CBS television show Undercover Boss, he said nothing could have prepared him for the unexpected meaningful experience he gained. “I went on this journey with an open mind, to learn as much as I could,” said Costa. Relatively new to the company, Costa had only been hired a year earlier. “I felt that it was a good opportunity to go undercover and truly see the operation from a blank, unbiased perspective,” said Costa. “I wanted to see it uncensored—what truly goes on behind the scenes. In January, Costa was featured on the Emmy Award-winning reality series that features corporate executives going undercover in their own businesses. In the episode, he experienced a day in the life of four MAACO employees, during which he sanded, prepped and painted vehicles. He said that he wasn’t expecting the work to be so physical and labor intensive. “I think part of the premise of the show is to make the boss look like he doesn’t necessarily know or understand how hard it is,” said Costa. “The truth is that it is very hard to do the type of work that we do in our body shops day in and day out.” He said the experience was very eye-opening to hear from the franchise owners and gave him a great impression of what a typical day is like at a franchise. After going through this unique experience, Costa said he is more motivated than ever. “I got tremendous satisfaction from helping employees and franchisees realize their professional and personal dreams. While on the show, I came to realize that I could make a difference to employees on all levels of the Maaco Corporation.” He said his favorite part of the show was giving the rewards away to the employees. Originally from Venezuela, Costa said a large part of his career has been in franchising, working with KFC, Yum Brands and Burger King. “My drive comes from my family’s values and upbringing,” said Costa. “My grandparents and parents were immigrants who came from Europe to Latin America with a dream to succeed by working hard.”

When Costa joined Maaco in 2013, his goals were clear. “The board gave us the challenge of doubling the size of the brand to close to 1,000 lo-

pany plans to change this perception through their marketing and advertising campaign. Costa said there are three main components.

Maaco President Jose Costa before receiving his makeover for Undercover Boss

Costa dressed for his undercover job as a Maaco technician

cations by 2020 and doubling sales from $500 million to $1 billion in five years,” said Costa. He said there’s a roadmap to follow in order to reach these goals and it involves innovative thinking across the company. “Part of the challenge was transforming a 43-year-old brand,” said Costa. “It was a market leader in many ways but it was also caught in the 1970s.” Over the last two years Costa said the company’s advertising has changed dramatically. Approximately 20 percent of their budget is being invested in revamping their social, mobile and digital operations. One of the company’s major goals is to bring more technology into the operation. Maaco began working with the company AudaExplore in 2013 to develop a production management system and customize an application they named One Maaco. (see accompanying article: AudaExplore Technology Driving Performance in Collision Repair Shops, p. 58) Some of the features include mobile estimating, online appointments, electronic tracking of inventory and parts management and payroll. Costa said these additions have already improved efficiencies and franchise owners have noticed a huge increase in profitability. “Historically, the brand was positioned more around paint and the truth is we do more than $100 million in collision work and not a lot of people know about it,” said Costa. The com-

54 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

First, the company introduced #MAACOver in 2013 to encourage social conversations through Facebook, Twitter, LinkedIn and YouTube. Next, the wording “North America’s Bodyshop” will be incorporated on almost all of their buildings, signs and materials used in 2015.

Maaco also recently announced it is bringing back its “Uh-Oh, Better Get Maaco” slogan first used in 1981. From unhappy neighbors to angry deer, Maaco commercials will follow a modern family and the “uh-ohs” that bring them to Maaco. Another change at the company is in regard to education. Maaco University was shortened from four weeks to three weeks and fieldwork has been incorporated in the training process. With more than 350 franchise owners operating nearly 500 locations, Costa said part of the challenge was how to get them I-CAR certified. A quarterly boot camp was implemented with the assistance of I-CAR. Now 20 to 30 owners are brought in for an accelerated course where they complete the hands-on training portion and then continue with online classes. Close to 65 centers have been certified through this program. Costa said by certifying the owners and then having them train their own employees, it has benefited the franchises. “It improves retention and it improves the moral of the shop,” said Costa.

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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 55


One of the projects Costa said he is most excited about is the idea of a retail concierge service where the sales office is separated from the production facility. Over the last 18 months, Maaco has been testing this concept at 13 locations, including Chino Hills, CA and Marietta, GA. The idea is to set up a 1,000 square foot small Maaco

Costa and Maaco employee Christian Soto, who works at the Orlando, FL franchise on Orange Trail Blossom. Photo credit: CBS

office next door to a large retail chain like Target or Wal-Mart. “We wanted to be more relevant to women,” said Costa. After conducting extensive research, Costa said they found “Women were skeptical to do business with us because we used to advertise $299 and $399 and the average repair order was around $1,000. It was that bait and switch mentality that

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we wanted to very clearly and in a transparent way show the consumer why the price point goes up.” To help accomplish this, Maaco incorporated 30-second videos that explain the repair process. Costa said these changes have improved efficiencies but there have also been challenges. They found too many things were incorporated the first year and it was difficult to measure the impact. He said some of the programs worked and others did not. One example is when the company decided to move away from using price advertising in April 2013. “By early June we had to put it back on because it hurt us tremendously. We’re really sensitive to price even if we like it or not, consumers react to our price point,” he said. Although there were many challenges that year, the company still had positive sales of three to four percent growth. In 2014, Maaco ended the year with more than six percent growth. “For the first time in the history of the brand we crossed $20,000 average weekly sales,” said Costa. The average center reaches $1 million a year and he said the goal is to con-

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tinue having the franchise’s bottom line grow. “The more profitable the franchises are the more they will invest back into the business,” said Costa. “If you bring innovation and other options for the franchise owners to grow and at the same time they’re making more money, it’s a win win for both the franchise owner and the franchisee.” Maaco is part of Driven Brands, the Charlotte, NC-based corporate parent of automotive companies including Meineke Car Centers, Econo Lube & Tune and other automotive-related businesses. The episode of Undercover Boss can be viewed online http://www.cbs. com/shows/undercover_boss/video/4 05E9026-1D3C-E5EC-B12B93BB9B4DFE03/undercover-bossmaaco/

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Axalta Launches ‘Color Block’ Blog

Axalta Coating Systems recently launched a new blog titled “Color Block” focusing on color. The manufacturer of liquid and powder coatings introduced the blog to highlight its Automotive Color of the Year campaign. Axalta executives, fourtime NASCAR® Cup Series champion Jeff Gordon and Ray Evernham, three-time NASCAR champion crew chief and host of Velocity’s television show, Americarna revealed Axalta’s 2015 color of the year, Radiant Red, at SEMA 2014 in Las Vegas, Nevada. Radiant Red debuted on the No. 24 Axalta Chevrolet SS driven by Gordon. The blog will feature posts from experts in a variety of industries including fashion, interior design, architecture and cosmetology. Axalta’s own color experts Nancy Lockhart and Dan Benton will post blog articles as well. “This is a great opportunity for Axalta to continue to share our automotive color expertise and invite experts from an array of fields to discuss the relevance of red in their industries,” said Nancy Lockhart, Axalta’s Color Marketing Manager. To read it visit www.axaltacs.com/us/color.

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RUPES Brings Collision Repair Tools to U.S. Through Acquisition of Cyclo Toolmakers by Stacey Phillips, Assistant Editor

Auto body shops will soon have easier access to purchase collision repair tools from Italian-based business RUPES. The company recently purchased Cyclo Toolmakers in Longmont, Colorado, and the U.S. facility will become the center of RUPES’s operations in North America. “RUPES is absolutely committed to growing its presence in the North American market,” said Jonathan Kissov, the VP of Sales and Marketing for RUPES USA. “We see tremendous synergies between Cyclo and RUPES and are excited to have Cyclo’s engineering, manufacturing, distribution and support capabilities available to use.” Cyclo Toolmakers first introduced the Cyclo in 1952. Cody and Carolyn Sutherland purchased the company in 2003 and re-located to Longmont, CO. They moved to Mead a year ago, where they manufacture the Cyclo onsite. Originally designed as a metal polishing tool, the Cyclo is used as a final step buffer in a body shop environment. It is also used for auto detailing and airplane polishing, including caring for the Air Force One fleet, as well as for industrial uses. “It is an incredibly durable product,” said Sutherland. “It’s made the

way power tools used to be made, constructed of metal and built to last.” Very few changes have been made to the Cyclo machine design over the years. The business owner still receives products from the 1950s on a weekly basis that come in for repair. “If you look at a 1954 version and you look at today’s version, you would have to look pretty close to find the differences,” he said. In January, the company announced an updated version of the Model 5 called the Mark II. Sutherland said it has an improved power switch and the shape of the tool has been modified for easier control. Sutherland was approached by RUPES in 2014 about the possibility of acquiring Cyclo Toolmakers. “As I learned more I was impressed,” said the business owner. “I thought they would be a benefit to Cyclo’s customers and our efforts to continue modernizing our products.” Sutherland traveled to Italy to meet with the owners and executives of RUPES. Located in Vermezzo, Italy, a suburb of Milan, RUPES was established in 1947. RUPES is an acronym for Realizzazione Utensili Pneumatici Elettrici Speciali, which means Manufacturer of Special Pneumatic & Electric Tools in English. The company entered the North

American market nearly three years ago with their Bigfoot polishing system, which encompasses a line of electric and pneumatic car polishers along with foam pads and polishing compounds. Sutherland said the products allow a swirl-free finish on vehicles and other surfaces and are becoming popular in the industry. Guido Valentini, President of RUPES, said the company also offers a wide range of products that cater to the auto body repair industry. “During 2015 we will enforce the ‘gearing’ within the Italian and American companies improving logistics, customer service and repairs,” said Valentini. “Beginning in 2016 we will implement local R&D, and we will start the manufacturing activity of all new products. Definitely, we want to manufacture and assemble in the U.S. all of what we sell in North America.” He said they will also manage distribution in Canada and Mexico from the Longmont, CO location. “RUPES has plans to serve all of its customers in North America better,” said Sutherland. “That was really the reason for the acquisition—to get an organic existing operation here with customer service, warehousing, manufacturing and engineering.” As the new VP of Operations, Sutherland is the general manager for the North

American operation of RUPES. “Part of our future role in the global operation is to manufacture products now made in Europe, here in the states.” These include polishers, grinders, sanders and dust extraction vacuums. Sutherland said the dust collection systems offered by RUPES will benefit shops repairing the new aluminum-bodied Ford F-150. “With the introduction of more aluminum body parts, and the F-150 being a flagship of aluminum body parts, dust collection has become a far more important safety issue,” he said. “Aluminum dust can be explosive, so safe collection becomes an incumbent responsibility on body shops working with those materials.” “We recognize the high-quality reputation that the Cyclo brand enjoys across several market segments and promise to work diligently to both honor and improve the status of the brand while leveraging Cyclo’s capabilities to improve RUPES’s service, support and technical levels in North America,” said Kissov. “We are also looking forward to embracing the international distribution network that Cyclo has developed and working with them to further promote the Cyclo brand internationally.” The companies’ websites are: cyclotoolmakers.com and rupes.com.

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AudaExplore Technology Driving Performance in Collision Repair Shops by Stacey Phillips, Assistant Editor

With more collision repair shops adopting technology and becoming digitized, the result has been increased efficiency, higher productivity and greater customer satisfaction. Brian Greenley, a Maaco franchise owner in Littleton, CO has found his business has become more streamlined since implementing software and a customized application called One Maaco from the company AudaExplore. He said this has increased his shop’s cycle time and improved the way they measure performance. “Managers now have more control over day-to-day operations, allowing our technicians to work on more repairs per day, which increases the overall profitability of our shop,” said Greenley, who runs the most successful Maaco franchise in the chain. Growing from $400,000 in revenue in 1991 to over $5 million in 2014, he projects his franchise will break the $6 million mark this year. For more than 40 years, AudaExplore, a U.S. business unit of Solera Holdings, has offered a variety of technology options to auto repair facilities for the various stages of the repair process. The company offers five different technology platforms for the collision repair industry: Estimating, Parts Management, Repair Management, Driver Experience and Decision Sciences. “Our goal in developing these platforms is to provide the tools that help repair shops and insurers run profitable and productive businesses as they move toward a more digitized environment, while providing top-notch customer service every step of the way,” said Gordon Henderson, Vice President of Collision Repair Solutions at AudaExplore.

Estimating & Parts Management Henderson said most collision repair shops are probably familiar with Audatex Estimating. This estimating solution provides repairers and insurers the ability to quickly access and visualize data in order to write a more accurate repair plan for a damaged vehicle. “We collect information on thousands of parts that go into a car along with the associated labor time that it takes to remove, repair and re-install those parts and put it in one place, allowing for a quick calculation of what the cost of repair to be for that vehicle,” said Henderson. Used since the

1980s, he said that a recent enhancement to their estimating solution is the integration of APU, which allows shops to check for inventory on alternative parts. (Read more about APU and other parts ordering platforms in the next issue of Autobody News.) In September 2014, the company launched a new version of estimate

check, which includes an advanced analytics model to provide enhanced decision support. Henderson said this allows shops to conduct a more robust check of the estimate to ensure compliance with insurance guidelines and identify any missed operations. With more sophisticated data and analytics, the technology provides analysis for guidance regarding repair or replacement of parts such as bumper covers, door panels, trunk lids and hoods. “We’ve also done things a little different in terms of how our estimating software works,” said Henderson. “We approach it not just as a computerized estimating tool but as a truly automated, intelligent tool that understands how a vehicle needs to be repaired and helps to ensure that the estimator and repairer make the best decisions possible while minimizing the need for manual intervention.” When a part is selected for replacement, Henderson said the shop is able to view a 3D model that is linked to the database itself. “We understand that in order to replace any given part, there are other parts that may have to be removed or replaced and that additional labor operations may be required to ensure a proper repair,” he said. “AudaExplore automatically includes required operations so the estimator doesn’t waste time digging through PPages in order to find out what they have to manually add to the estimate. This eliminates errors and increases speed, accuracy and consistency.” Henderson said this unique approach allows shops to spend less time researching the related operations and improves cycle time. “Fewer supplements means that you are more efficient and saves time,” he said.

Repair Management The company’s repair management platform includes the Autofocus manage-

58 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com

ment software installed at body shops. In the case of Maaco, AudaExplore undertook some fairly extensive customization. Maaco had been using its own software program Polaris, which became outdated. Greenley said they sat down with AudaExplore to develop a management system that would help measure profitability through their performance. “A successful business owner should measure every component of his business,” said Greenley, who was one of the first franchises to implement the software in January 2014. “This tool gives us the capability to measure performance within the business.” Approximately 100 Maaco franchises are now using the software and the plan is for the entire chain to adopt it over the next two years. The Autofocus management software is also integrated with AudaExplore’s estimating so customers are able to receive an immediate quote for all of the work they want completed. “A customer’s attention span is short,” said Henderson. “You basically want to get the information to them quickly, help them make a decision and ulti-

mately try to get the keys to the vehicle on the spot.” He said by streamlining the process and making it more consistent across the franchise, it allows Maaco to increase its ability to capture the keys to the vehicle. “Obviously the more jobs captured means more revenue and more profit at the end of the day.” Because Maaco has a very unique workflow, Henderson said, “…as a franchise model you want to have things work homogenously across the entire network. We’ve customized our solution to help support that goal.” Greenley said this has lead to gains in efficiency and more consistency from location to location. Driver Experience In regards to AudaExplore’s driver experience technology platform, the company offers collision repair shops the Go Time Driver application. Go Time Driver allows a vehicle owner to download an app capable of giving them a 3D representation of their vehicle and the ability to communicate with their auto body shop. “They can request a specific day and

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time, select the shop and request an appointment,” said Henderson. “We’ve had tremendous success with this.” Maaco adopted the Go Time Driver application and customized it for their franchises to better communicate with customers and make it easier for them to understand an estimate. “That’s not done easily through a standard estimate in the industry,” said Greenley. Known as One Maaco, there have been nearly 12,000 downloads of the app since it was first launched during the summer of 2014. Another component of Go Time Driver is the AutoWatch solution that allows a vehicle owner to view the progress of their vehicle and receive updated repair status information through an interactive website. “What we’ve found is that it creates a level of transparency that consumers don’t always associate with repair shops,” said Henderson. “The key to that part of the platform is that by keeping consumers informed, they’re directly tied to a higher overall satisfaction on a claim.”

Decision Sciences The company’s Decision Sciences platform aims to improve a com-

pany’s performance by using visualization tools that make it easier to spot trends. Henderson said the company’s Visual Insight brings analytics to the claims process and allows insurers and repairers to visually represent the data collected to make more informed decisions. “Our decision sciences is really all about creating a set of decision tools that allow the estimator or shop owner, and the insurance client, to make better business decisions moving forward,” said Henderson.

A Consultant Approach Henderson said that AudaExplore approaches each body shop in terms of their unique needs to determine the technology that will be most beneficial to their business. In December 2014, AudaExplore announced it signed an agreement to extend its services to all ABRA Auto Body & Glass locations in the U.S. for two more years. Working with the company since 2010, AudaExplore provides its Estimating, Central Review and Consolidator Dispatch solutions. “Our mission is to repair damaged vehicles right the first time, on time,”

said Tim Adelmann, ABRA’s Executive Vice President of Business Development. “As we grow, AudaExplore’s state-of-the-art technology will continue to help us provide superior service seamlessly to each of our clients through our extensive network of auto body repair shops across the nation.” “Our goal is to make the complicated process of handling a claim much simpler for all parties involved,” said Henderson. “By providing a system that’s highly accurate and connected, we can greatly reduce waste in claims processing activities and help increase overall profitability for our customers such as ABRA.” Henderson said big and small shops, MSOs, insurance companies and independent appraisers are currently utilizing AudaExplore’s various technology solutions. “I think this industry is realizing that consumers are having higher and higher expectations,” said Henderson. “Study after study shows that better communication is directly tied to overall consumer satisfaction, which is directly tied to whether or not an insurance company retains a policy holder or a shop gets repeat referral business.”

GCIA Met on DEG; Plans Golf Tournament October 2

National Coatings & Supplies (NCS) donated over $500,000 in product to high school and post-secondary collision school programs across the country through the Collision Repair Education Foundation (CREF). The products donated by NCS will allow students the opportunity to practice collision repair and refinishing skills. “We are excited to invest into the industry and into our future. Supporting the CREF and the students will help to ensure future talent in the automotive aftermarket,” noted Wayne Lavrack, President, NCS. CREF Director of Development Brandon Eckenrode noted, “This is a first-time donation from NCS to the Collision Repair Education Foundation and what an incredible donation it has been. These school instructors are being overwhelmed with the generosity of these donations and instead of worrying about not having enough material to provide a quality technical education for their students, instructors are faced with the issue of not having enough room to store all of the donations. I cannot thank NCS enough for their support and we look forward to a continued partnership in helping to support the future professionals of the industry.”

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A Father’s Dying Wish Coming True: Manteno Auto Body Man Steps up to Save a ‘Cuda’

means more than transportation to a man he never met before a friend called Manteno, IL, auto body specialist Mike to ask a favor last year. Dumas knows what he’s doing around Dumas, 55, couldn’t ignore the yesterday’s muscle cars. He lovingly story. Darren Evans, 51, of downstate restores them, with incredible attention El Paso, was the chief sheriff’s deputy of Woodford County. And he was just given a death sentence by his doctors. A persistent cough was diagnosed as lung cancer. He was given a year to live. Of course he wanted to make the most of his time with his family, but there was this one other matter. “I was a gun collector and I lost all interest in that. I could sell those,” he said. “But I had this Barracuda out Darren Evans (center), his 19-year old son, Adam (left) and in a shed. I bought that car Michael Dumas of Platinum Auto in rural Manteno look at when I was 15. And I held on the 1971 Barracuda being restored for him as a gift from his to it, hoping that I could work family. Photo courtesy of The Daily Journal/Mike Voss on it some day with my son to every detail. He has done that for 12 [Adam, 18]. My dad [Jim] helped me years at Platinum Custom Cars. buy it back then. And I thought it was He also knows something about something I could leave for my son.” what cars can mean to people. And But there was never time or money that’s why he has devoted so much time for this sort of indulgence. And, with the to a project he’s doing off the books. clock ticking, the car looked like a He knows that the green 1971 Ply- dream that couldn’t come true. That is, mouth Barracuda convertible, which he until Darren’s friends stepped up. One has toiled over for the past nine months, friend rebuilt the engine. Another speby Dennis Yohnk, Daily-Journal.com

cialized in finding the best spare parts. And another made that call to Dumas. “I told them we weren’t going to cut corners: We were going to do it right. But if Darren could hold on, he could drive his car again. He could give his son a memory he’d never forget,” Dumas said, noting that the car is now being pieced back together after being completely stripped down for a full restoration. “The plan is to get it done in time for the World of Wheels [car show ] at the Rosemont in March,” he said.

“Thousands of people will see it there, and then Darren can drive it off the floor and back to El Paso.” That would be his first time behind the wheel since he parked the car in 1992. At that point it was only on the road briefly. He purchased it at 15,

and drove it from 1978 to 82. At that point it needed work, but he wasn’t willing to part with it. “I bought it for $3,200, and I think I was offered something like $8,000, as it sat, but I always thought I could bring it back, and Adam could have some fun in it like I did.” In fact, Darren admits he had a little too much fun, and has the speeding tickets to prove it. He matured, though, and found a place on the other side of the law—even though his love for this car never let up. His commitment made sense, financially. This type of restored car can sell for more than $100,000. But Darren isn’t interested in that reward. He wants to see Adam behind the wheel, maybe tearing down some of the same roads he traveled. First, though, Dumas has more work to do. The painting isn't complete. All of the parts have to come back together— perfectly, to suit his Detroit native. “I still keep busy with my clients’ cars, but I put all of my personal projects on hold until this is done,” he said. “I have a couple of trucks in pieces in storage while I put in all my nights and weekends getting this done.” We thank Daily-Journal.com for permission to reprint their article.

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Mercedes to Move U.S. Headquarters From New Jersey to Georgia Mercedes-Benz USA confirmed the rumors on January 6 by officially announcing that the company’s headquarters will be moving from Montvale, NJ to Atlanta, GA. The German automaker is one of the largest employers in Bergen County and second largest in Montvale. The company told Patrick McGeehan, nytimes.com, that the move in July 2015 would affect about 1,000 jobs. According to Assemblywoman Holly Schedpisi state officials attempted to deter executives of the automaker by offering considerable financial incentives to keep its headquarters in New Jersey. After turning

down that undisclosed offer, Mercedes will join other large companies closing operations in the Northeast and moving to Southern state with lower costs, reported McGeehan. A billboard in Berger County on Route 80 begged Mercedes-Benz to change their minds. According to legislative staff in Trenton, Chris Christie has promised other large companies a total of nearly $1 billion a year as incentive to stay and continue employing New Jersey residents. Corporate-relocation experts say that the incentive package Georgia offered Mercedes was worth as much as $50 million, McGeehan reported.

2015 Vehicle Lifting Points Guide Now Available

The Automotive Lift Institute, Inc. announced the availability of the 2015 edition of ALI’s “VEHICLE LIFTING POINTS for FRAME ENGAGING LIFTS.” This updated guide is a quickreference single-source manual for lifting point information as recommended by vehicle manufacturers. The 70-page Lifting Point Guide (LP-Gide) for domestic and imported cars and light trucks uses more than 200 undercarriage images to cover the most recent 25 model years. For this new edition, the 2015 model year vehicles were added, some older images were revised, and additional cautionary notes were provided in an effort to clarify pick-up point locations for shop owners, technicians and other LP-Guide users. The

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nissanparts@claycars.com om www.claynissan.com www. ww w.cl clay ayni niss ssan an.c .com om

ü Genuine Subaru parts. ü Priced right and delivered fast twice daily to Massachusettes and Rhode Island

ü Same day parts delivery ü Dedicated, professional wholesale parts team

THE WORLDS LARGEST, INDEPENDENT SUBARU DISTRIBUTOR serving the six New England states since 1971.

New England’s LARGEST NISSAN WHOLESALE PARTS DEALER!

Parts Dept. Hours Mon-Weds-Fri: 7:30am-6:00pm Tues-Thurs: 7:30am-7:00pm Saturday: 7:30am-1:00pm

Parts Dept. Hours: Monday-Friday 7:30am-5:30pm Saturday: 8:00am-4:00pm

toll tol free

8 800-541-6122 fax 781-762-7013

8 800-559-9210

toll free

8 800-411-9772 fax 781-619-7280

www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 63


64 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com


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