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US Vehicle Sales Forecast to Top 17 Million for 2019 by Dave Leggett, Just Auto
Analysts at Cox Automotive predict that the US light vehicle market for 2019 will have exceeded 17 million units for a record fifth straight year. December sales volume is expected to fall to 1.58 million, down 3.2% or about 50,000 units from December 2018. The annual vehicle sales pace in December is expected finish near 17.2 million, up from November’s 17.1 million level, but down from last December’s 17.4 million. Sales volume for December is likely to be just enough to lift the
market above 17 million units. However, total sales in 2019 are forecast to be down more than 1% from 2018, and this negative trend is expected to continue this month, and into 2020. Strong December sales are critical for the industry, particularly for clearing previous model year inventory from dealerships. Consumer interest peaks during the holiday shopping season and buyers take advantage of significant OEM discounts and incentives. This year may be slightly different, according to Charlie ChesSee US Vehicle Sales, Page 10
Prevalence of Vehicle Scanning – and Insurers’ Willingness to Pay for it – Have Risen The industry’s adoption of vehicle scanning as an indispensable part of the repair process can be seen in the results of the “Who Pays for What” surveys conducted for several years by Collision Advice and CRASH Network. In the survey conducted this past fall, 11% of shops said they might skip a post-repair scan because no dash lights are lit – not a legitimate reason – but in the same survey in 2016, nearly half of all shops (44%) said that was a reason they might skip the scan. Likewise, three years ago, about 1 in 5 shops said they did-
n’t perform scans because they don’t have the tools necessary to perform the scans. In the latest survey, 2% used that as an excuse. Payment practices have evolved as well. Back in 2016, a “Who Pays” survey found more than 30% of all shops said that one of the reasons they didn’t perform a post-repair vehicle scan was that insurers didn’t pay them for the procedure. Three years later, just 12% of shops say a lack of insurer payment is one of the reasons they might not perform a vehicle scan. More than 97% of shops See Vehicle Scanning, Page 30
AUTOBODYNEWS.COM
Vol. 10 / Issue 11 / February 2020
NJ Superior Court Denies NJM Insurance’s Motion to Dismiss Class-Action Steering Lawsuit by Chasidy Rae Sisk
The Superior Court in Union County, NJ, denied a Motion to Dismiss filed by New Jersey Manufacturers Insurance (NJM) in relation to a class-action lawsuit filed in June 2019 alleging steering-related violations against non-DRP collision repair facilities. The lawsuit is being led by Sam Mikhail on behalf of Quality Auto Painting Center d/b/a Prestige Auto Body (now dissolved) and BMR Automotive Service, Inc. d/b/a Robbie’s Automotive & Collision Specialists. The decision means the lawsuit will proceed with NJM facing accusations on a number of offenses, including injurious falsehood and tortious interference with prospective business advantage, as well as violations of the
NJ Antitrust Act, NJ’s Consumer Fraud Act, and the state’s Civil RICO Act. Plaintiffs are seeking class-action status that would include all shops not on NJM’s DRP who fixed, or attempted to fix, a vehicle insured by NJM in the past six years and who witnessed the insurer’s refusal to negotiate in good faith, attempts to steer an insured, or misrepresentations of the shop’s price or quality. Working on behalf of themselves and the class-action members, the plaintiffs are in pursuit of actual/punitive/treble damages as well as interest, lawsuit costs, attorney fees, and “such other and further relief the Court deems just and proper.” They are also requesting injunctive relief to prevent the insurer from committing these alleged “unSee NJ Superior Court, Page 12
What We Know About US Jobs and Other Details of Fiat Chrysler, PSA Merger by Breana Noble, The Detroit News
Fiat Chrysler Automobiles NV and French automaker Groupe PSA said their boards unanimously supported a binding agreement to merge and create the world’s fourth-largest automaker. The deal is one step further than Fiat Chrysler got earlier this year with Renault SA, another French carmaker. The combination of PSA and FCA is expected to provide cost savings, create a hedge against cyclical downturns and have the scale to invest and compete in an electric and self-driving future. Although the companies are calling the deal a 50-50 merger, PSA would hold a board majority and appoint six of the 11 board members. That includes PSA CEO Carlos Tavares, who is expected to lead the
combined company. Here is what else to know about the deal: What comes next? With the binding agreement signed, the automakers can pursue obtaining antitrust and regulatory approval from the companies in which it operates. They also must receive approval from their shareholders. The process is expected to take 12 to 15 months. “We don’t feel we have any concerns with antitrust” laws, Tavares said. “We’ve reviewed this topic and are very comfortable we have no problem on antitrust” regulations. What is the name of the new company? The name of the new company has not yet been announced. Information See US Jobs, Page 30
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