February 2020 Northeast Edition by Autobody News

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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

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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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CONTENTS REGIONAL

NATIONAL

AASP/NJ Looks to Partner With UTI to

11th Circuit Court Dismisses Suit Alleging

Employ Collision and Automotive

Conspiracy to Deflate Collision Repair

Claims on Proposed Legislation. . . . . . . . . . 11 Arizona Marijuana Retailer Buys Worcester, MA, Body Shop for $2M . . . . . . . 24 Bruce Benner Sells Wiscasset’s Pro Body Works to Todd Farrin. . . . . . . . . . . 22 Car Dealership Erases $25K Prince George’s County, MD, School Lunch Debt . . . . . . . . . 18 Collision Work Pays the Bills, Racing Fills the Need for Space . . . . . . . . . . . . . . . 16 Facing Vehicle Shortage, Buffalo, NY, Police to Lease Instead of Buy. . . . . . . . . . . . . . . . 32 Local BOCES Student & Teacher Receive National Recognition . . . . . . . . . . . . . . . . . . . 8 MA Independent Car Repair Shops Tell North Shore Chamber We Need Right to Repair. . . . . . . . . . . . . . . . . . . . . . . . . . . 14 NCC Automotive Programs to Debut Paid Co-ops . . . . . . . . . . . . . . . . . . . . . . . . . 6 NJ Law Requires Manufacturers to Notify Car Owners of Warranty Rights . . . . . . . . . . 14 NJ Superior Court Denies NJM Insurance’s Motion to Dismiss Class-Action Steering Lawsuit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 NY Family Receives a Car Through the NABC Recycled Rides Program . . . . . . . . . . 10 Resident Accused of Breaking Into Car . . . . . . . 6 Rosen Law Files Lawsuit Against Towing Company . . . . . . . . . . . . . . . . . . . . 58 Safelite Motion in Discrimination Lawsuit Gets Denied . . . . . . . . . . . . . . . . . . . . . . . . . 8 Tech Schools in Bucks County, PA, Receive State Grants . . . . . . . . . . . . . . . . . . . . . . . . 19

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Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 AirPro Renews Commitment to CIECA . . . . . . . 33 ASE Certification Registration Now Open. . . . . 52 Audi Debuts the Audi AI:ME, a Fully-Automated Car With ‘Empathetic’ AI . . . . . . . . . . . . . . . 32 Automotive Technology Department Head Stresses Life Skills First . . . . . . . . . . . 54 Axalta Sponsors Event at Michigan Science Center . . . . . . . . . . . . . . . . . . . . . . 49 Car-O-Liner Introduces Adapter and Software . . 11 CARSTAR Celebrates Banner Year . . . . . . . . . . 55 CCG Enjoys Success in 2019, Plans Further Growth in 2020 and Beyond . . . . . . . . . . . . 56

INDEX OF ADVERTISERS

Program Graduates. . . . . . . . . . . . . . . . . . . 19 AASP/NJ Warns Collision Shops of Insurers’

AUTOBODY

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

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Accudraft Paint Booths. . . . . . . . . . . . . . . . . 68

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

Acura of Westchester . . . . . . . . . . . . . . . . . . 28

Mercedes-Benz of Atlantic City. . . . . . . . . . . 31

Audi Wholesale Parts Dealers. . . . . . . . . . . . 53

Mercedes-Benz of Fort Washington . . . . . . . 31

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

Mercedes-Benz of Paramus . . . . . . . . . . . . . 52

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

Mercedes-Benz of West Chester . . . . . . . . . 31

GM Customers Rage as Automaker

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

Mercedes-Benz of Wilmington . . . . . . . . . . . 14

Struggles With Strike-Related

BMW Wholesale Parts Dealers . . . . . . . . 46-47

Mercedes-Benz Wholesale Parts Dealers . . . 61

Parts Delay . . . . . . . . . . . . . . . . . . . . . . . . . 63

Cadillac of Mahwah . . . . . . . . . . . . . . . . . . . 33

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

CCC Information Services, Inc. . . . . . . . . . . . 17

MontiPower Americas, Inc.. . . . . . . . . . . . . . 11

Central Avenue Chrysler-Jeep-Dodge-Ram . 23

MOPAR Wholesale Parts Dealers. . . . . . . 38-39

Honda Becomes the First OEM to Integrate

Certified Automotive Parts Association . . . . . 12

New Holland Ford. . . . . . . . . . . . . . . . . . . . . 49

Cloud Diagnostics Into the CCC X Data

Cherry Hill Dodge-Chrysler-Jeep-Ram . . . . . 18

New Holland Toyota . . . . . . . . . . . . . . . . . . . 24

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Nielsen Ford. . . . . . . . . . . . . . . . . . . . . . . . . 41

Colonial Automotive Group . . . . . . . . . . . . . . 37

Nissan/Infiniti Wholesale Parts Dealer . . . . . 62

North Idaho Repair Centre Wins Local Award. . 44

Courtesy Mitsubishi . . . . . . . . . . . . . . . . . . . 20

Northstar Kia . . . . . . . . . . . . . . . . . . . . . . . . 50

Prevalence of Vehicle Scanning – and

Criswell Chrysler-Jeep-Dodge-Ram . . . . . . . 26

Nucar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Insurers’ Willingness to Pay for it –

ECS Automotive Concepts . . . . . . . . . . . . . . 30

Porsche Wholesale Parts Dealers . . . . . . . . . 58

Empire Auto Parts . . . . . . . . . . . . . . . . . . . . 42

SATA Dan-Am Company . . . . . . . . . . . . . . 7, 25

Equalizer Industries, Inc . . . . . . . . . . . . . . . . 36

Schultz Ford. . . . . . . . . . . . . . . . . . . . . . . . . 55

Flemington Auto Group. . . . . . . . . . . . . . . . . 29

Security Dodge-Chrysler-Jeep-Ram . . . . . . . 32

Ford Wholesale Parts Dealers . . . . . . . . . . . . 59

Spanesi Americas . . . . . . . . . . . . . . . . . . . . 10

GM Wholesale Parts Dealers. . . . . . . . . . . . . 51

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

Honda-Acura Wholesale Parts Dealers . . 34-35

Steck Manufacturing Company . . . . . . . . . . 16

in History . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Hyundai Wholesale Parts Dealers . . . . . . . . . 64

Sunmight USA Corporation. . . . . . . . . . . . . . 13

That’s It! He’s Had It, Part 1 . . . . . . . . . . . . . . . 36

Infiniti of Norwood . . . . . . . . . . . . . . . . . . . . 40

Tasca Automotive Group. . . . . . . . . . . . . . . . 45

Top Automotive Industry Stories of

Innovative Tools & Technologies, Inc. . . . . . . 21

Toyota Wholesale Parts Dealers . . . . . . . . . . 63

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

Tsunami Compressed Air Solutions . . . . . . . . 8

Kia Motors Wholesale Parts Dealers . . . . . . . 57

VIP Honda . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Kia of Attleboro . . . . . . . . . . . . . . . . . . . . . . 20

Volkswagen Wholesale Parts Dealers . . . . . . 65

Kundert Volvo. . . . . . . . . . . . . . . . . . . . . . . . 56

Westbury Jeep-Chrysler-Dodge-Ram-SRT . . 15

Long Automotive Group . . . . . . . . . . . . . . . . 48

White Plains Volkswagen . . . . . . . . . . . . . . . 24

Matrix Automotive Finishes . . . . . . . . . . . . . . 9

Yonkers Kia . . . . . . . . . . . . . . . . . . . . . . . . . 60

Chevy Shake Class Action Says Driveshaft is the Problem. . . . . . . . . . . . . . . . . . . . . . . 64 Driver Assistance Systems May Cause Distracted Driving . . . . . . . . . . . . . . . . . . . . . 4 Gerber Collision & Glass Acquires Nine CA Locations. . . . . . . . . . . . . . . . . . . . . . . . 63

GM Sells Over 1 Million Crossovers Again . . . . 41 GM, Tesla Head for New Year Without Electric Vehicle Tax Credits . . . . . . . . . . . . . 28

Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Mitchell Partners With UpdatePromisePay . . . . 24 Mitchell RepairCenter Now Offers Integration. . 18

Have Risen . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Rivian Announces $1.3 Billion Funding

COLUMNISTS Attanasio - A Look at Body Shop Marketing With 2020 Vision . . . . . . . . . . . . . . . . . . . . . 26 Attanasio - First Paint Suits Designed for Ladies Announced at SEMA. . . . . . . . . . . . . 40 Ledoux - The 1980s – The Formation of the SCRS . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Phillips - Industry “Disrupter” Launches Collision Industry Book & Patent-Pending Test-Drive Technology . . . . . . . . . . . . . . . . . 59 Sisk - ASA’s Webinar Wednesday Addresses What’s Happening With Data Access Policy . . 48 Yoswick - CIC Subcommittees Offer Competing Suggestions on How to Deal With “Opt-OE” Parts . . . . . . . . . . . . . . 20 Yoswick - MSOs Hear Positive Outlook for 2020, Discuss Mixed Impact of Photo Estimating. . . . . . . . . . . . . . . . . . . . . 42

Round Backed by Amazon and Ford . . . . . . 64 Subaru Recalls 498,000 Vehicles for Takata Airbag Inflators . . . . . . . . . . . . . . . . 67 Tesla Autopilot Under Fire Once More From US Senator Following Accident . . . . . . . . . . . 4 Tesla Becomes the Biggest U.S. Automaker

the Decade . . . . . . . . . . . . . . . . . . . . . . . . . 62 UNIBODY AutoTech Collision Center Joins CIECA . . . . . . . . . . . . . . . . . . . . . . . . 64 US Vehicle Sales Forecast to Top 17 Million for 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 What We Know About US Jobs and Other Details of Fiat Chrysler, PSA Merger . . . . . . . 1 WIN Scholarship Program Opens Applications. . 67

Mazda Wholesale Parts Dealers . . . . . . . . . . 63

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Tesla Autopilot Under Fire Once More From US Senator Following Accident by Joey Klender, Teslarati.com

A United States Senator who has been vocal about his opposition to Tesla’s Autopilot software is doubling down after a driver utilizing the driver-assist feature in his Model 3

rear-ended a police cruiser in Connecticut on the evening of Dec. 7, 2019. Senator Ed Markey of Massachusetts has been vocal regarding his discontent for the alleged “flawed system” Tesla Autopilot offers to drivers. After The Today Show reported the recent accident on its Twitter account, Sen. Markey responded with his thoughts. “Autopilot clearly can’t be allowed to replace drivers on our roads. This tech will continue causing harm until Tesla takes action to fix its flawed system and make sure drivers

are paying attention. That’s why I sent a letter demanding Tesla take action to protect the public,” Markey wrote on Twitter. According to police, the accident happened because the Model 3 driver was checking on his dog at the backseat. Thus, the Tesla driver was unable to use the driver-assist system in an appropriate manner. In late November, Sen. Markey called for Autopilot to be disabled because some drivers were falling asleep behind the wheel while the software was active. It should be noted that Tesla has never encouraged drivers to take their attention off the road when utilizing Autopilot. The company has taken numerous steps to decrease the possibility of this happening by adding safety features to the software. Tesla’s official website emphasizes this point, reminds owners that “while using Autopilot, it is your responsibility to stay alert, keep your hands on the steering wheel at all times, and maintain control of your car.” Tesla has added features to stop the vehicle from driving if it senses the person controlling the car is not paying attention to the road. If the

Driver Assistance Systems May Cause Distracted Driving by David A. Wood, CarComplaints.com

Advanced driver assistance systems (ADAS) may cause drivers to engage in distracted driving, even when using basic systems such as lane-keeping assist and adaptive cruise control. Researchers at the AAA Foundation for Traffic Safety found drivers with experience using driver assistance systems were nearly twice as likely to drive distracted compared to driving without the technology. Researchers at the AAA Foundation and the Virginia Tech Transportation Institute looked at data from one group of drivers who owned vehicles equipped with advanced assist systems. Those drivers had more experience using the systems, but a second group of drivers were provided vehicles equipped with driver assistance systems. Those drivers normally didn’t have access to the systems, indicating they didn’t have as much real-world experience using the technology. During four weeks of testing, researchers found drivers who owned their vehicles were more familiar 4

with the systems and more likely to drive distracted. Drivers in this group were also more likely to play with the radios or use their phones for texting when the driver assistance systems were activated.

Credit: CarComplaints.com

But the drivers with less experience using the systems were more likely to pay attention to the job of driving. A lack of trust and knowledge of the systems likely cause drivers to not rely so much on the technology. But drivers who are comfortable with the systems rely too much on the technology and put too much trust in the systems.

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

person operating the vehicle does not hold the steering wheel for an extended period of time, Autopilot will disable itself. Autosteer will also be

Credit: Facebook, Connecticut State Police

disabled for the remainder of the trip, forcing the driver to operate the vehicle normally. Autopilot is responsible for Tesla’s reputation for being involved in accidents over six and a half times less often than a traditional vehicle. Teslas that are utilizing Autopilot features were involved in an accident every 2,870,000 miles, according to the company’s Q1 report in 2019. This stands in contrast to the national average of one accident for every

Researchers determined these drivers are more likely to focus their eyes and attention on all kinds of things other than driving. AAA and Virginia Tech say the increase in distracted driving behaviors occurs because of an overreliance on the technology, or what can also be called automation complacency. Examples of this can be seen from multiple crashes involving semi-automated driving systems in Tesla vehicles. Even though Tesla’s owner’s manuals warn drivers to keep their focus and eyes on the roads and their hands on the steering wheels, the vehicles crash because drivers don’t pay attention. In December 2019, a Tesla driver allowed his vehicle to slam into a parked police car that had stopped to help a disabled vehicle. Although the investigation continues, the Tesla driver said the driver assistance technology known as Autopilot was engaged, so the driver felt comfortable enough to reach into the back seat to check on his dog. Other Tesla incidents include a

436,000 miles traveled by traditional vehicles without Tesla’s Autopilot software. Tesla has released updates and improvements to its Autopilot and Full Self-Driving software frequently. The company has been firm in the notion that it does not condone the practice of sleeping behind the wheel. Tesla also instructs drivers to always keep their full attention during driving to significantly reduce the possibility of an accident. Ultimately, Autopilot was not to blame in the case of the recent accident in Connecticut because the driver was admittedly checking on his pet in the back seat of the car. The police, for one, ticketed the Model 3 owner for Reckless Driving and Reckless Endangerment, according to the Connecticut State Police Facebook account. Now if only Sen. Markey could see the incident from this perspective. We thank Teslarati.com for reprint permission.

driver who was looking at her cell phone when the car crashed into a firetruck, and a crash of a Tesla SUV into a construction barrier after the vehicle traveled across the highway. Another Tesla SUV crash killed the driver when the vehicle crashed into a concrete barrier that could have been avoided, and then there is the case of another driver who was traveling 80 mph when the vehicle slammed into a disable car. The driver said he believed technology from Tesla would allow him to look at his cell phone while driving. In addition, a 40-year-old Tesla driver lost his life when his vehicle traveled under a truck trailer on a clear Florida day. We thank CarComplaints.com for reprint permission.

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Resident Accused of Breaking Into Car by Pat Tomlinson, The Hour

A Stamford, CT, man stole a bottle of pills and loose change from a car parked at a city auto body shop, police said. Police said Eric Andrade, 46, of Main Street, Stamford, stole the items from a crashed car that was parked at Knight Street Auto that was awaiting repairs. A worker saw Andrade rifling through the car, which was damaged in a way that wouldn’t allow one of the doors to be closed, police said. When the worker approached Andrade, the man fled toward Wall Street. Officers working an extraduty job nearby were able to stop Andrad a short time later. Andrade was charged with third-degree burglary and sixthdegree larceny. He was held on $5,000 bond and given a court date of Dec. 6. We thank The Hour for reprint permission.

NCC Automotive Programs to Debut Paid Co-ops by Staff, Nashua Community College

Nashua, NH, Community College automotive programs will soon launch a paid summer co-op for students. The campus is just a few miles away from Merrimack High School, offering a convenient next step for MHS automotive students seeking a post-secondary degree or certificate. NCC’s Collision Repair Technology and Automotive Technology faculty have developed the co-op in partnership with the New Hampshire Automobile Dealers Association. “It will be a 200-hour paid co-op, and NHADA will be matching their partners with students in the programs,” said Karl Wunderlich, department chair for industry and transportation programs at NCC, and program coordinator for collision repair technology. The Honda PACT program, a two-year associate degree pathway, training students in the repair and maintenance of Honda vehicles, already has a paid summer internship in place. For collision repair and automotive, adding the summer co-op

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

will help students connect with employers and get the career readiness skills they need for long-term success. Currently, Professor Wunderlich says NCC faculty individually support students in seeking work.

Credit: NCC

“A lot of times, students ask me where to look for a job, and I try to match it to the student,” said Wunderlich. “I want to place them where they will get mentorship. Also, if I have a student with a particular interest, like working on old cars, I try to connect them with a shop within decent driving distance specializing in that work.” One example is second-year collision repair student Silas Magargee, who has been working at AK Rods &

Customs in Londonderry, NH, since last spring. “I’ve always wanted to do restoration work,” said Magergee. He began studying automotive technology while in high school at Pinkerton Academy in Derry, NH, before graduating in 2018 and enrolling at NCC. He chose NCC since it had the only collision repair program in New Hampshire. After graduation in May 2020, Magergee plans to continue working with AK Rods & Customs. Professor Wunderlich connected Magargee with the business, “He’s able to use all of his skills there, it was a perfect fit,” said Wunderlich. The new co-op will be an excellent new support for students preparing for the workforce, but even now, job prospects are strong. “If students want to work in this industry, I’ll find them a job. That’s not a problem,” said Wunderlich. The co-op program will launch in summer 2021. We thank Nashua Community College for reprint permission.

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Safelite Motion in Discrimination Lawsuit Gets Denied by Emmariah Holcomb, glassBYTEs.com

Safelite’s second motion to dismiss a discrimination lawsuit in New Jersey District Court has been denied. The court has yet to announce additional dates for this ongoing suit. Case Background Walters vs. Safelite began in June 2018 when Nicholas Walters filed a complaint against Safelite claiming the company displayed discriminatory actions against some of its employees. According to the original complaint, Walters began working with Safelite in or about 2005 in New Jersey. He was promoted to assistant store manager in May 2011 and in September 2015 he was promoted to store manager. “Walters performed up to and/or exceeded the reasonable expectations of the company throughout his employment. In fact, at no time during Walters’s employment had he ever received a performance evaluation that rated his job performance anything less than meeting or exceeding expecta-

tions,” a portion of the complaint reads. In 2014, Walters became concerned about the Philadelphia territory’s new management team, as he questioned if certain members had Safelite’s best interests in mind. His original complaint alleges he “observed those in the management team who were not abiding by Safelite’s code of conduct policy.” Walters then stated he was offered a promotion, to become the Absecon store manager from members of management. “Walters was informed [by two Safelite employees] the current store manager, Shelby Klein, who was on pregnancy leave at the time, was going to be terminated after returning,” a portion of the original complaint reads. According to court documents, Klein was to “return from her pregnancy leave so it would not seem as if she was being fired for taking maternity leave.” Walters refused to take the promotion under those circumstances and requested to be transferred to a Connecticut store “so that he could get out of the Philadelphia

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

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

Credit: Bradford Central School District

Her instructor, Brian McDonnell, was selected as the “Collision School Instructor of the Year.” Both received a trip to SEMA 2019 in Las Vegas, where the pair were honored at the Education Foundation’s Nov. 5 reception. The SEMA Show is the world’s premier automotive trade show that features more than 2,400 exhibiting companies and at8

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

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

region and its management team.” He was transferred in March 2015 and Klein was terminated from her position, according to court documents. There he alleged continued discrimination violations against other employees and himself by other members of management. This led to “Walters being threatened, being put on a performance improvement plan, and ultimately his termination from the company.” Walters alleges Safelite broke the New Jersey Law Against Discrimination (LAD) and is seeking the following as a result of the harm he claims to have faced: • Back pay and benefits; • Front pay and benefits; • Compensatory damages; • Consequential damages; • Punitive damages; and • Reinstatement. Motion to Dismiss In July 2018, Safelite asked the court to approve its motion to dismiss Walters’ complaint. Following this request the court set new trial dates for

this lawsuit. In February 2019 a letter was submitted to the court on behalf of both Walters and Safelite stating both parties agreed to a settlement on all matters. However, the lawsuit continued due to a newly filed amended complaint from Walters in March 2019. Safelite filed another motion to dismiss, for the amended complaint, and also requested a venue change. The court then issued a new set of dates and the lawsuit continued. Safelite also filed a document that alleges Walters did not face discrimination, because he received several promotions on performance and was given additional advancement opportunities, of which he did not mention in his amended complaint. Order Currently the New Jersey court has issued an order denying Safelite’s second motion to dismiss. There have not been any additional dates set for this lawsuit yet. We thank glassBYTEs.com for reprint permission.

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

NY Family Receives a Car Through the NABC Recycled Rides Program by Fontaine Glenn, mytwintiers.com

Christmas came early for a local family in the Twin Tiers. The family received a newly refurbished 2012 Chrysler 200 donated to the Greater Southern Tier Boces Cooper campus in Painted Post, NY, by Geico. It was part of

Credit: mytwintiers.com

the National Auto Body Council Recycled Rides Program. The Auto Body Repair and Automotive Technology Classes at the GST Boces worked together to repair the car starting in September 2018. Brian McDonnell, auto body instructor at GST Boces spoke on what it was like for his students to

see this project from start to finish. “It’s been an amazing experience for us to do and fixing cars on a day to day basis and to see from start to finish it’s not that much of a shock but this is a whole new level of excitement for our students and program and for the family as well,” McDonnell said. The family has been through health scares. The couple’s oldest child, Noah, had to be flown to Pittsburgh Children’s Hospital at only two weeks old to receive a liver transplant. If he did not receive the transplant, the doctors said he would only have three days to live. Then Noah’s aunt donated 25 percent of her liver for her nephew to live. Today, Noah is a healthy boy but must continue medical treatments to keep up with his transplant and to ensure he stays healthy. Laura Rossman, CEO of Pro Action of Steuben and Yates, Inc. has been working with the family and knows the family personally.

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

“For us, when you see a family working hard, doing all the right things, dad is working full time with two young children and one has a medical condition that takes them out of the area and need reliable transportation,” Rossman said. “And mom having to stay home cause of the medical needs, you know that is the right family to help.” Along with the car, Margeson Insurance gave the family a check for a year’s worth of insurance payments. The Steuben County Sheriff’s Department also donated a car seat for their youngest daughter through their Child Car Seat Program. Several local businesses contributing to this project included T&R Towing and Service Centers, Jaynes Used Auto Parts, Dunning’s NAPA Auto Parts, Liquidz Autobody Supply, LKQ Corporations, Firestone, Margeson Insurance, BFTP Limited, Elmira Auto Paint, Hartman Electric, Castle Cleaning Products, and Smith’s Laser Car Wash, along with individual donors. We thank mytwintiers.com for reprint permission.

Continued from Cover

US Vehicle Sales

brough, senior economist at Cox Automotive: “One key factor for this December’s results is the sales calendar. With 25 selling days, one less than last December, a sales volume decline is expected. In addition, Thanksgiving and Black Friday deals were late last month [November], shortening the holiday shopping period and possibly pulling some December vehicle buyers forward. In fact, last month’s sales volume was the highest November in history, and 30,000-50,000 above recent years.” We thank Just Auto for reprint permission.

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AASP/NJ Warns Collision Shops of Insurers’ Claims on Proposed Legislation The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is speaking out against the claims certain insurers have made about proposed legislation that intends to protect collision shops and consumers in a court of law when battling unfair insurance practices. Currently in New Jersey, there is no private right of action for a violation of the regulations that govern fair claim settlement practices, even when an insurer abuses a claimant or mishandles a claim by straying from the current regulations. The proposed bill S-2144 would change that by creating a private right of action where a claimant may file a civil suit in a court of law to address and resolve claim settlement issues. “Certain insurers are starting to send out letters to their insureds, making false and misleading comments, in my opinion, in an effort to prevent the legislation from becoming law,” states AASP/NJ Executive Director Charles Bryant. “One claim that is being made is that the New Jersey Legislature is fast tracking the legislation that will substantially increase the price of personal

automobile and homeowners’ insurance coverage in the state. This is certainly incorrect and apparently stated to mislead people at best. This legislation is not on the fast track. It was first introduced in March 2018 and then referred to the Assembly Financial Institutions and Insurance Committee that June.” Bryant stressed that this bill would not substantially increase the price of personal and homeowners’ insurance coverage as some insurers are telling their insureds. “An insurer cannot abuse its insured or improperly deny an insured’s claim and then be forced by a court of law to pay what the insured was actually owed or entitled to – along with court cost, attorney fees and treble damages – and then use those additional costs that resulted from their own wrongdoing as a basis to obtain a rate increase.” The letters also suggest insureds call their legislators to tell them the legislation is a bad deal. “Well, insurers are right that consumers should be calling their legislators, but not for the reason the insurers want them to do so. Consumers – especially those who have

been abused by an insurer when they put in a claim to cover a loss and were either shortchanged on their claim or had their claim improperly denied and received no help from the Department of Insurance – should be calling their legislators and telling them to vote ‘yes’ to this bill.” “This bill holds the insurance company responsible. It puts their feet to the fire. Without it, it’s the wild, wild west. Nobody is enforcing the rules and regulations now,” comments AASP/NJ President Jerry McNee. “For them to say that this will increase premiums … that is simply untrue.” “Every shop owner should be educating their customers about these issues and how this legislation can make a change for the better,” Bryant added. “The only way insurers are ever going to follow the regulations that govern fair claim settlement practices is when or if they are held accountable for their own actions. This legislation does exactly that.” Obtained via aaspnj.org.

www.autobodynews.com

Car-O-Liner Introduces Adapter and Software

Car-O-Liner is pleased to introduce the adapter and software that allows the A-Tong to be connected to the CTR9. In order to support the use of the A-Tong partnered with the CTR9, a new adapter is now available for the A-Tong and the welding machine’s software has been updated to include functions for Auto 1, Auto 2 and Manual modes. To perfect the welding process, the new software paired with the new adapter is designed to improve welding through tougher combinations of cured adhesive electrophoretic coating (e-coat) on new vehicle panels and a higher welding duty cycle. Users can now expect less expulsion during repairs when welding through adhesives. The A-Tong allows increased accessibility in hard to reach areas of sheet metal parts on today’s vehicles. Popular areas for the ATong on vehicles include the front radiator support as well as on rear quarter panels. The 1-to-1 electrode pressure allows consistency throughout the welding process to ensure quality repairs.

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Continued from Cover

NJ Superior Court

lawful acts” in the future. In addition to denying allegations, NJM has offered the defense that the case doesn’t merit class-action status. In a statement following the court’s decision, the insurer said, “NJM does not ordinarily comment on pending litigation; however, the plaintiffs’ accusations are baseless, and will be vigorously defended.”

Offering no opinion on either party’s argument on Nov. 22, Union County Superior Court Judge Alan Lesnewich simply rejected NJM’s Motion of Dismiss, writing that the decision was made after “the Court having considered the papers submitted, opposition having been filed, Oral Argument having taken place on Nov. 22, 2019 for the reasons set forth on the record on Nov. 22, 2019, and for good cause shown.” In a news release issued by AASP/NJ after the decision, the plaintiffs’ attorney, Joshua Bauchner of Ansell Grimm & Aaron, PC, said, “At this point, we have rather significant positive action against NJM, including for violations of RICO and antitrust. We believe this is the first action against an insurer of this nature in New Jersey. We have some pretty substantial evidence regarding steering and the disparagement of the plaintiffs.” Mikhail and BMR v. NJM alleges that, due to NJM’s failure to negotiate in good faith, Prestige Auto Body was forced to substantially reduce its labor and paint charges to meet NJM’s “take it or leave it” pricing model. Prestige also claims that NJM refused compensation for extra installation time on aftermarket parts and only paid for OEM parts after the collision repair facility’s failed attempt to install the aftermarket part. The lawsuit states, “It often takes months to secure a refund for the af12

termarket part which could not be installed and to secure agreement for payment from [NJM], without accounting for the delay suffered by the consumer.” NJM also failed to pay the true cost on paint and materials, although “the paint cost varies based on the type and color of paint used.” The lawsuit suggested that delays were also caused by the use of “a proprietary program which apparently only one employee of Defendant is permitted to manipulate, therefore a request to utilize the Computer Logic program can delay payment for months.” Alleging that NJM’s calculations aren’t reflective of the actual job, plaintiffs provided an example: Defendant itself submitted differing estimates for the purported “true cost” of labor and materials, including one on March 20,2017 for $459.55 which purported that Prestige should use exactly 22.59 ounces of base coat, 26.95 ounces of clear coat, 11.095 ounces of pre-paint solvent, 6.28 ounces of adhesion promoter, 14.23 ounces of sealer, 1.45 pieces of coarse sand paper, 4.25 pieces of finesse sand paper, a 0.32 piece of foam polishing pad, 0.22 ounces of hardener, a 0.16 piece of a wool buff pad, and exactly 18.7 feet of (1.5) to 2 inch wide tape. NJM was accused of “inordinately delay[ing] payment for the vehicle because Prestige pointed out the unfair charges, intentionally harming Prestige by requiring multiple supplements just to recoup amounts approaching fair value. Specifically, the repairs were completed in or around April, 2016, yet Defendant waited approximately one year to remit its insufficient payment to Prestige.” Quoting NJ’s Shop Choice Rule, Mikhail and BMR alleged that the insurer “knowingly and intentionally” neglected to notify insureds that they could have their vehicles repaired at their shop of choice and also refused “to recommend upon request a qualified repair facility at a location reasonably convenient to the insured’s motor vehicle which will repair the damaged motor vehicle at the insurer’s estimated cost of repairs.” Robbie Berman, owner of BMR, participated in NJM’s DRP for over 20 years but left the program last year, reportedly due to receiving inadequate reimbursement for his serv-

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

ices, and the lawsuit includes multiple examples of NJM allegedly steering work away from BMR by “intentionally misrepresent[ing] to insureds that Robbie’s and other targeted body shops are not on [the insurer’s] ‘preferred list of shops’ - even though they are not permitted to have such a list and insureds did not request a recommendation from [NJM].” According to Berman, “For the past five years, [NJM was] promising me some kind of increase [in labor rate]. The last time they presented me with a contract, not only did they not give an increase, but they took things away. They told me that washing cars was a part of me doing business, and they cut back on sublets. Cars keep getting more technical, and employees keep getting more expensive. The cost of the cars keeps going up, but somehow the labor rate to repair them keeps going down.” In AASP/NJ’s statement, Executive Director Charles Bryan expressed hope that a favorable conclusion to Mikhail and BMR v. NJM could positively impact the state’s collision repair industry’s issues. “This suit was brought on by

the insurer because of greed and their unwillingness to pay a fair and reasonable amount to repair vehicles damaged as the result of a collision,” he stated. “The insurer is dictating what it will pay rather than making all reasonable efforts to negotiate an agreed price to repair an automobile as required by the regulations governing fair claim settlement practices, while the New Jersey Department of Banking and Insurance looks the other way. When a collision shop fails to surrender and take whatever the insurer wants to pay, the insurer engages in unlawful ‘steering’ activity by claiming that the shop is being unreasonable and overcharging; they then pressure insureds to have their vehicles repaired at specific ‘preferred’ repair shops that can afford to fix the vehicles at lower rates because of the high volume of work being steered to them. This type of suit has to happen because of the unwillingness of greedy insurers to work these issues out and pay fair and reasonable rates for the procedures now required to safely and properly repair vehicles on the roads today.”

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

MA Independent Car Repair Shops Tell North Shore Chamber We Need Right to Repair Unless current law is updated, Massachusetts residents will increasingly lose the ability to take their cars to independent repair shops and be forced to pay more at dealerships, the head of the Massachusetts Right to Repair Coalition told members of the North Shore Chamber of Commerce at its Executive Breakfast Forum.

the choice of where to take their cars for repairs. That right should be protected.” As of this year, more than 90% of new cars are now equipped to transmit diagnostic and repair information wirelessly to vehicle manufacturers. “This threatens the rights of our customers to shop around for

“Car manufacturers are taking advantage of this wireless loophole to keep independent car repairers from accessing diagnostic information they need to fix cars,” said Tommy Hickey, Massachusetts Right to Repair Coalition Director. “In 2012, voters overwhelmingly voted in support of having

the best deal,” said Leo Malo from Advanced Technologies repair shop in Gloucester, MA, who attended the forum. “They won’t be happy if they have to pay more for repairs. We need the legislature to update Right to Repair.” Obtained via PR Newswire.

NJ Law Requires Manufacturers to Notify Car Owners of Warranty Rights On Thursday, Jan. 9, New Jersey Governor Phil Murphy signed into law Senate Bill 1712, which will require vehicle manufacturers to send a notice to consumers within 90 days of a new car lease or purchase of their warranty rights under the federal MagnusonMoss Warranty Act (MMWA). The bill passed both chambers of the New Jersey Legislature with broad bipartisan support. The bill passed the Senate (31-0) and passed the Assembly (74-0), showing the overwhelming support for this consumer notification in the car buying process. “This is another positive step toward educating consumers nationwide on their warranty rights and their ability to get their car serviced at the facility of their choice,” said Tom Tucker, director, state government affairs, Auto Care Association. “We will continue to work in the legislative and regulatory arenas to promote the MMWA and what it means for consumers.” The newly-signed bill does

not change federal law or the MMWA in any way; it requires the vehicle manufacturers to notify new car owners in the state of New Jersey of their existing rights. In addition, the vehicle manufacturers will have to place the same notice online or in the owner’s manual. This is only the second bill requiring consumer notification of MMWA rights to be passed in the country. “Gaining the right to repair your vehicle at the facility of your choosing without voiding the vehicle warranty was only half the battle in protecting consumer choice,” said Bill Hanvey, president and CEO, Auto Care Association. “The Auto Care Association and our allies are dedicated to consumer choice and we are fighting to ensure that the federal rights of consumers are not only acknowledged by the states, but actively protected and defended by them too.” For questions, contact Tucker at tom.tucker@autocare.org.

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Collision Work Pays the Bills, Racing Fills the Need for Space by Donna Kessler, Times Herald-Record

While most of his days are filled with car parts, bondo and paint, Eagle Auto Body owner, Rob Albino’s other days are filled with him taking the turns on a racetrack. Albino started racing in his early ‘20s, renting cars like Grand Am’s and Corolla’s from a rental car companies and competing in SCCA Autocross events across the northeast. It was here he learned how to compete in timed racing events. He did this for about 15 years in his own cars including a BMW 2002, Nissan Sentra SER & Chrysler Conquest Tsi, before finally committing to racing in road

racing over the years, competing at Daytona, Atlanta Motor Speedway, Virginia International Raceway, Sebring International Raceway, and Mont-Tremblant in Canada. He favors road course racing over the typical racing stating that road course racing can be scary sometimes since there are hills and valleys where you can’t see what’s coming up. It requires a lot of concentration.

course events after Sept. 11. “It’s a very good way for young people to learn how to drive properly,” Albino said. In 2002, Albino entered the Bondurant High Performance Driving School in Arizona. He took the four-day course and immediately received his racing license. It didn’t take Albino long to purchase his first race car, a BMW 318i which he sat behind the wheel of for a couple of years before realizing that it wasn’t very competitive. So, he found himself a 1991 Miata and came in third overall in his class. He had found his niche. In 2001, he purchased a BMW 318i to compete in SCCA IT-B class events. Switching to a more competitive Miata and then entered the Historic Sportscar Series Racing with a Porsche 911 and came in second in his first race. Unfortunately, in the second race he ended up blowing the engine. Rebuilding that motor and competing a couple of more times in the 911 he switched to a Sunbeam Tiger in 2015 after blowing the motor in the Porsche a second time. Albino continued to do road course 16

ward to his next race, but in the meantime, Albino continues to be busy at his shop doing collision work, collect-

Rob Albino hops into his Sunbeam Tiger to take on another race. Credit: Photo provided, Times Herald-Record Rob Albino celebrates after winning the Sasco Challenge at the Mitty at Road Atlanta in 2018. Credit: Photo provided, Times HeraldRecord.

Rob Albino in the Winner’s Circle in Daytona after winning the Sasco Challenge in 2018. Credit: Photo provided, Times Herald-Record

Eagle Auto Body owner, Rob Albino’s racing career began by driving rental cars in road course races in parking lots in New Jersey. Credit: Photo provided, Times Herald-Record

Challenge and sixth in points in the Vintage Racing. In 2018, Albino bought a wrecked BMW M coupe, “The Clown Shoe,” with a S52 M motor that he restored

Fast forwarding to 2017, Albino took his Tiger and raced the track of his dreams, Daytona International Speedway in Florida. At Daytona, he raced with a few celebrities and shared the podium with the likes of Brian Johnson of the rock band AC/DC and NASCAR driver Bill Elliot. Albino is currently

Rob Albino sharing the podium with NASCAR driver Bill Elliot. Credit: Photo provided, Times Herald-Record

in second place, so far, in the Historic Sportscar Racing points standing, third in points in the SASCO

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

at his shop. With the S54 M motor under the hood, the car is capable of speeds exceeding 150 mph. Racing comes with its ups and downs and some of those downs can be expensive. He once flipped a car and another time his hood flew up into the windshield and then there’s the maintenance of these cars. Albino is always looking for-

ing cars and running his Eclectic Car website that focuses on classic car consignment, sales and storage opportunities. For more info go to Eagle Autobody of Orange County Facebook page. We thank Times Herald-Record for reprint permission.

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Mitchell RepairCenter Now Offers Integration

Mitchell, a leading provider of technology, connectivity and information solutions to the property & casualty (P&C) claims and collision repair industries, now connects with Intuit QuickBooks Online within the Mitchell RepairCenter solution. This collaboration adds Intuit’s market-leading, cloud-based accounting to repair facilities’ complete facility management capabilities within the RepairCenter solution. “Mitchell’s integration with QuickBooks Online is an embodiment of our foundational vision to partner well, and delivers great value for our repair customers,” said Jack Rozint, SVP repair sales & service, auto physical damage, Mitchell. “Furthering Mitchell’s collaboration with one of the most robust accounting solutions demonstrates our desire to continuously invest in both our core repair product suite and cloud technology to drive innovation in collision repair. We look forward to the positive impact this will have on our customers’ businesses.”

Car Dealership Erases $25K Prince George’s County, MD, School Lunch Debt by Will Vitika, WTOP

Prince George’s County, MD, public schools’ students are getting quite a gift this holiday season. DARCARS Toyota announced that it’s paying off the school lunch debt for every student in the PGCPS system. Chief Operating Officer Jamie Darvish presented a $25,000 check to the nonprofit Excellence in Education Foundation for PGCPS at William Hall Academy in Capitol Heights, MD. “So, I’m extremely excited to be here,” Prince George’s County Public Schools CEO Monica Goldson said at the event. “Not just because we’re a few days away from our winter break, but because we have a community partner who thought it not robbery to provide some holiday cheer to a large number of families in Prince George’s County.” “It became apparent we had an issue with school lunch debt last winter during the [government shutdown],” she said. “And we’re grateful that many of our community partners came together and helped to make sure that parents did not

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

have to worry about feeding their children during that difficult time.” Goldson said they were able to provide meals to 10,000 students. And that DARCARS Automotive Group reached out recently to do

Credit: Prince George’s County Public Schools

something extra special during the holiday season: wipe out student lunch debt across the entire district. “I’m glad we could be here to do our part in the community,” Darvish said. “Prince George’s County is extremely important to me, and my family, and our whole team at DARCARS.” “The community supports us immensely and we’re glad to be able to do something to give back and sup-

port the community,” Darvish added. “I really look and I see it’s not easy to be a kid today,” he continued. “The last thing in the world that a child needs to worry about is eating. And being hungry makes accomplishing tasks of overcoming those challenges and burdens in society that much harder. So, I’m honored and I’m glad that we could step up and do this.” “And stay tuned. We’re not stopping here.” School lunch debt is a problem across the U.S. that can have a negative impact on students and their well-being. More than 75% of school districts reported having unpaid student meal debt at the end of the 2016-2017 school year, according to a 2018 report by the School Nutrition Association, which surveyed 1,550 districts nationwide. We thank WTOP for reprint permission.

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Tech Schools in Bucks County, PA, Receive State Grants

AASP/NJ Looks to Partner With UTI to Employ Collision and Automotive Program Graduates by Chasidy Rae Sisk

AASP/NJ leaders recently received a tour of the Bloomfield, NJ, campus of the Universal Technical Institute (UTI) as the association seeks to partner with the school to help graduates obtain employment with member shops as part of its continued focus on promoting automotive and collision repair industry careers to young people. AASP/NJ Executive Director Charles Bryant stated, “Our tour of the UTI trade school was an unbelievable experience for me and a real eye opener. It was amazing to see the modern technology and equipment the institute has available to train the students.” Bryan was accompanied on the tour by AASP/NJ Mechanical Chairman Keith Krehel to learn more about UTI’s educational and career placement programs. UTI has 11 campuses across the United States, several of which offer automotive and collision repair training. Opened 18 months ago, the Bloomfield campus offers a 51-

by Peg Quann, Bucks County Courier Times

week course for automotive technicians. Krehel shared, “As a former high school auto shop instructor, I was very impressed. The facility was neat, clean and well organized. The students I observed were focused on classroom activities while the teaching aids and handson workstations were state of the art. This school is ‘top shelf.’ We would be proud to play a role in helping place graduates in our various member facilities for automotive mechanical and collision work.” “Each section of the institute was more exciting than the last, and all that we learned while there will help AASP/NJ assist our members including the possibility of creating a partnership of sorts in order to post job openings on their website,” Bryant added. “We are presently considering how all we learned can be turned into a benefit for our members. Stay tuned to hear more shortly.” For more information on AASP/NJ, visit aaspnj.org.

The Pennsylvania Department of Education has awarded $118,892 in grant funding to the three technical schools in Bucks County, PA, to purchase new equipment for training in high-demand occupations. Middle Bucks Institute of Technology in Warwick, PA, and the Bucks County Technical High School in Bristol Township, PA, each received $50,000. The Upper Bucks County Technical School in Bedminster, PA, received a grant of $18,882. The grant awards will be used for the purchase of equipment to provide hands-on training in careers meeting the needs of local employers. “Investments in our career and technical education programs are vital to ensuring a diverse and welltrained workforce,” said Sen. Steve Santarsiero, D-10, of Lower Makefield. “We are fortunate to have three technical schools serving Bucks County residents and I, along with my Senate colleagues from the county, look forward to seeing the impact of these grants on the job opportunities afforded our area students.”

The Middle Bucks Institute of Technology sought the grant for welding equipment. The school serves 800 daytime students from Centennial, Central Bucks, Council Rock, and New Hope-Solebury school districts, as well as 500 adult learners. Registration is now open for adult education, spring semester programs. Bucks County Technical High School sought the grant for milling equipment. The school has 1,500 students from the Pennsbury, Neshaminy, Bensalem, Morrisville, Bristol Borough and Bristol Township school districts as well as adult learners, through both day and evening programs. The grant for the Upper Bucks County Technical School will be used to purchase a Hunter Aligner for the automotive shop to align wheels. The school offers 21 programs for students in grades 9 through 12 from the Pennridge, Quakertown, and Palisades school districts, in addition to its adult education program. We thank Bucks County Courier Times for reprint permission.

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Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

CIC Subcommittees Offer Competing Suggestions on How to Deal With “Opt-OE” Parts Heated exchanges that erupted during the “Parts and Materials Committee” presentation at the Collision Industry Conference (CIC) in Las Vegas in November sounded “exactly what committee meetings feel like,” Aaron Schulenburg, committee co-chairman joked, and demonstrated, according to co-chairman Ken Weiss, “why we ended up with two subcommittees.” The committee about a year ago inherited from another CIC committee the task of trying to resolve the issue of a variety of types of parts being listed as “opt-OE” on parts platforms or estimates. Weiss and Schulenburg said the committee had been so polarized on the issue that they decided to break into two “more like-minded” work groups to each form a proposal on how to most clearly describe parts available in the marketplace for those making parts decisions. Weiss said his work group came up with six different categories of new parts that differentiate, for example, an “OEM dealer” part from the exact same part sold in the same packaging but outside the automaker’s dealer network (described by his sub-committee as an “OEM non-dealer” part). Two other of the six categories would differentiate a certified non-OEM part from one that is not certified. In between were two other categories for parts produced by the same manufacturers that produce the same parts for the vehicle manufacturer; Weiss’ subcommittee dubbed those as “Tier 1 OEM” parts if they bore the same branding as the OEM (i.e., “if the BMW part has a BMW logo on it, then this part will have the BMW logo on it”), or “Tier 1 with Branding Differences,” such as one lacking the automaker logo. Schulenburg’s subcommittee took much of the same approach in terms of determining different part attributes (who makes the part, how it is packaged, who distributes it, who backs it with a warranty), but concluded that only a two-pronged way to classify the parts is needed. An

“OEM part,” the subcommittee said, is one manufactured by or for the automaker, sold in the automaker’s packaging and within the automaker’s authorized supply chain, and warranted by the vehicle manufacturer.

Ken Weiss said six definition labels his subcommittee defined help make clear the nuances among part types. Credit: John Yoswick

Any part not meeting all four of those attributes, Schulenburg said his subcommittee decided, is a “non-OEM part.” “We really tried to approach it like: Here’s ‘OEM.’ Anything that doesn’t meet that definition is ‘nonOEM,’” Schulenburg said. “That’s super clear for a consumer to understand. It doesn’t make [non-OEM] bad or wrong or an unacceptable option. There are thousands and thousands of non-OEM parts that are legitimately chosen every single year. But we first defined ‘OEM,’ and anything that doesn’t meet that definition from our vantage point is a ‘non-OEM part.’” Weiss said he’s not necessarily opposed to the other work group’s proposal, but said he thinks those making parts decisions would need more information about all the different parts designated as “non-OEM,” such as who manufactured a particular part, not just the supplier. Tier 1 suppliers to the automakers, such as Denso and Bosch, he said, produce quality parts that consumers on the mechanical side of the industry regularly choose. “There are companies out there that have a well-respected name, and it can mean more to you to know you’re getting it from that manufacturer as opposed to a company that may not use the same quality and may not have the

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

same reputation,” Weiss said. Weiss also noted that the California Bureau of Automotive Repair (BAR), which has said terms like “opt-OE” and “alt-OE” cannot be used, has said an OEM part not purchased from a dealer can be called “OEM.” “We have one very large state that has decided that warranty has nothing to do with the part [designation],” Weiss said. Schulenburg acknowledged that Weiss is correct about the BAR’s decision but added, “Just because California got that one attribute wrong isn’t reason enough for us not to try to define it correctly for the other 49 states. Then California might rethink their position.” He said that currently a part may get dubbed by the seller as “OEM surplus” when it wasn’t made for the automaker and isn’t in the automaker’s

packaging. When there’s no matching line for “OEM surplus” in the parts platform where the part is listed, it gets described as “opt-OE,” and then if sold in California, it is switched to “OEM.” “What ends up on the estimate to the consumer is not at all reflective of the part that comes in the box or what goes on their vehicle, and that’s what we’re trying to get away from,” Schulenburg said. But given that “opt-OE” has been a “catch-all bucket” for multiple types of parts, wouldn’t lumping in all parts not meeting the subcommittee’s definition of “OEM” result in a variety of types of parts under the “non-OEM” label, Schulenburg was asked. “I think there are ways for us as an industry to figure that business-tobusiness piece, and to differentiate them [within the parts platforms],”

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Bruce Benner Sells Wiscasset’s Pro Body Works to Todd Farrin by Susan Johns, Wiscasset Newspaper

A longtime Augusta, ME, collision center manager who summers on a boat in Boothbay Harbor has bought Pro Body Works in Wiscasset, ME, from the Westport Island man who had it its first 37 years. “He will do great,” Bruce Benner, 60, said of new owner Todd Farrin. Farrin, 56, a lifelong Augusta resident, became manager last summer after the two friends talked about Farrin buying the business and agreed it would be good to have him work there first. “And it worked out great. It was a good fit for both of us,” Farrin said. The sale was final Jan. 2, he said. In separate phone interviews on Monday. Jan. 13, neither man disclosed the price. Farrin said he bought the business and he and wife of 30 years Kathy, a reading intervention specialist at Maranacook Community Middle school in Readfield, expect to own the property in June. The Farrins summer on their 36foot express cruiser power boat High Maintenance, docked at Boothbay Harbor’s Tugboat Inn. “We are ab-

solutely in love with the midcoast,” he explained about why he looked toward Wiscasset in buying a business after a career in collision repair in his hometown. He worked in the service department at Blouin’s from 1986 until 1994, when he became the collision center manager. He said he kept the job when Darling’s bought Blouin’s in 2007 and he stayed until

Pro Body Works owner Todd Farrin, left, and the man who sold him it, Bruce Benner. Credit: Bruce Benner

last July. At Pro Body Works, Farrin has gotten the sign lit again, the office painted and made his assistant manager Rene Brochu manager. Brochu was assistant manager under Farrin at Blouin’s and Darling’s for 13 years

and left to work with Farrin in Wiscasset, Farrin said. Some of their Darling’s customers have been bringing vehicles to Pro Body Works, he added. What’s next for Benner? “You’ll just have to stay tuned for the next adventure,” the 1977 Lincoln Academy graduate said. It won’t be in auto body, he said. Benner owns Lily Brook Apartments in Damariscotta and six rental units at 41 Water St. in Wiscasset. “A big thank you” to all his Pro Body Works customers and staff, Benner said. “It was a great run.” He and John Shorey started the business on Hodge Street in 1982, Benner bought out Shorey and moved it to Route 1 in 1986, and in 19951996 tore it down and “built (it) all new,” he said. He feels the business is in good hands with Farrin. “I feel very confident that they’re going to make it all work. And he’s a great guy.” Bookkeeper Kelly Brewer praised Benner’s ownership and Farrin’s. “When I heard that Bruce was selling Pro Body Works, I was actually excited for him. He has worked very hard the last 30-plus years cre-

ating a business that puts out high end quality work. Pro Body Works wouldn’t be as successful without Bruce’s hard work and dedication,” Brewer commented via email. “We have the top of the line body men and painters, another key part to our success. I’m excited for the future and to be part of the team with Todd as he has innovative and exciting things ahead.” Farrin is eying adding a rustproofing business this year. Pro Body Works is a full-service, all-vehicle collision center, a certified Ford repair shop and an I-car gold class shop, which refers to the staff’s training, Farrin said. “In our industry, training is really a key thing.” What’s Farrin’s favorite vehicle he has ever worked on? A 1972 zamboni that came in years ago in multiple piles. While getting it ready for a Hallowell arena, he and others working on it gave it fun features including T-shirt-firing cannons. The ice-cleaning machine became known as the Icenator, he said. “We did a lot of funky projects, and that one was a blast.” We thank Wiscasset Newspaper for reprint permission.

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Arizona Marijuana Retailer Buys Worcester, MA, Body Shop for $2M by Thomas Grillo, Worcester Business Journal

A proposed cannabis retailer has paid $2 million for DeBois Auto Body, an automotive collision repair and auto body garage operating for more than 60 years in Worcester, MA. The buyer, PJJMA Properties LLC from North Dakota, bought the shuttered two-story, 6,300-squarefoot facility from Francis DeBoise in November. The property at 56 Millbrook St. is the proposed site for Harvest Health & Recreation, a multi-state cannabis operator based in Arizona seeking Massachusetts Cannabis Control Commission approval for a Worcester recreational marijuana store. PJJMA Properties LLC is managed by Patrick Murphy and Joseph Kachuroi, both listed with North Dakota addresses, according to the Massachusetts Secretary of State’s Corporation Division. Murphy did not return a call seeking comment. His LinkedIn page lists him as an investor in the Arizona-based Harvest Health & Recreation and as president of Murphy Motors in Williston, N.D. Continued from Page 20

“Opt-OE” Parts

Schulenburg said. “But I think what is more important is the consumer understanding.” The six labels the other subcommittee proposes for the parts, he said, won’t be clear to consumers. “I think they serve to validate parts that a consumer should understand aren’t OEM,” Schulenburg said. He said the two subcommittee’s proposals remind him a little of the 2017 internet meme in which different people, looking at the same photo of a pair of shoes, see them as either pink and white or mint and gray. “The way we are each wired to perceive it is going to be how our brain determines what color that shoe actually is,” Schulenburg said. The parts debate, he said, is a challenge because everyone approaches it from their own vantage point and their own business objectives. Instead, he suggested, the industry might want to think of it more from the perspective of Marcia and 24

Kachuroi declined to comment on the deal when reached by telephone at his Arizona office. His website lists him as national director of real estate and business development for Harvest, which bills itself as a leader in the cannabis industry, holding more than two dozen marijuana licenses in five states.

The former DeBois Auto Body shop could become the city’s newest pot retailer. Credit: Grant Welker

Last fall, the City of Worcester granted a marijuana license for Suns Mass II, a Harvest affiliate, to operate a retail recreational use marijuana store at 56 Millbrook St. The state’s Cannabis Control Commission has yet to issue the final license for the shop to open. Joshua Lee Smith, the attor-

Matthew Seebachan, the Texas couple who earlier in the CIC meeting in Las Vegas had shared what the impact of a poorly-repaired vehicle had on their lives. “My personal opinion is at the end of the day, we need to look back at that presentation and think about that rather than our own personal vantage points,” Schulenburg said. “What do we do to make all of this clear to [consumers like them], so they never have to sit in that seat and tell that kind of story.” Several CIC participants in Las Vegas voiced heated condemnations of one or both of the subcommittees’ approaches. Schulenburg said those exchanges demonstrated the dilemma the committee faces, “where we each have defined our perspectives but haven’t found a middle ground, or a roadmap to get to it.” He said the committee has “experienced professionals within the industry who just vehemently disagree with one another,” trying to determine where to go next. “I don’t think we have an answer,” Schulenburg said. “I think the point here was to establish where we are today. I think we’ve done that.”

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

ney representing Suns Mass II, did not respond to a request for comment. Worcester’s first marijuana dispensary, Good Chemistry, opened last year for medical pot sales and in May it began selling recreational weed, after getting CCC approval. The Botanist followed with a medical marijuana store on Pullman Street. The city’s Worcester’s third medical marijuana dispensary, Mission Massachusetts, opened in May on Lincoln Street. The city has a limit of 15 potential retail marijuana stores. Earlier this month, Resinate, another marijuana shop in Worcester, held a grand opening even though its hasn’t received the CCC final approval to begin selling marijuana. New Dia, a proposed recreational marijuana store for the Main South neighborhood, is aiming for an opening this spring. Grant Welker contributed to this report. We thank Worcester Business Journal for reprint permission.

Mitchell Partners With UpdatePromisePay

Mitchell International has partnered with UpdatePromisePay powered by UpdatePromise to be their Merchant Services Provider for Mitchell Cloud Glass. “We chose UpdatePromise because our two companies are aligned when it comes to consumer experience and technology. The alignment between our two organizations positions our glass technicians to provide customers with simple, seamless payment processing options,” says Mark Bennett, product manager for Mitchell International. UpdatePromise began providing merchant services to the automotive industry in the year 2016. Chief Operating Officer of UpdatePromise, Rich Pannazzo, comments, “We saw a gap in the automotive space when it came to consumer payments. There was no true point of sale system available for business to provide a smooth, seamless and integrated payment process to their customers, who today, expect to pay everything on their phone or on a smart device capable of texting and emailing their receipts to themselves,” on the background of developing UpdatePromisePay.

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Media and Publicity for Shops with Ed Attanasio

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

A Look at Body Shop Marketing With 2020 Vision Do you remember Aesop’s old fable, “The Ant and the Grasshopper?” In short, the story is about a grasshopper who played all summer long while the ant worked hard to have enough food to make it through the winter. I’ve updated it a little to make my point about body shop marketing, so my apologies to Aesop. In my version, the grasshopper had a few DRPs and his car count was consistently high, so he was happy and not worried about marketing. On the other side of the hill, the ants were out there creating a brand and working hard to build their business through year-round strategic marketing. When the business climate changed and the grasshopper lost his number one DRP, he jumped through the roof while the ants added another location. I don’t recall exactly how this story ends, but I’ve always remem-

bered that the message was to be prepared and plan for the worst. When it comes to body shop owners, there are too many grasshoppers and not enough ants. They jump around all willy dilly to try things they saw their

More and more shop owners like Frank Barnard at Almost Everything Auto Body Repair & Paint in Fremont, CA, have a services board that hangs in the reception area to educate customers. Credit: Almost Everything Auto Body Repair & Paint

competitors do and wonder why they don’t work. As a result, their businesses start to lose momentum and then pretty soon, they hear crickets

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

instead of grasshoppers.

Stay on the online track: The numbers are strong and growing. There are currently 4.1 billion internet users on the planet, as compared to 3.9 billion users in mid-2018 and approximately 3.7 billion in late 2017. As more people search for you online and write reviews about your business, search engine optimization (SEO) is now more important than ever. Many shop owners aren’t scrambling to optimize something they don’t fully understand. To see which shops are committed to longterm SEO, conduct a general Google search (like collision repair in Dayton, Ohio, for example) and see where you sit. If you’re not on the first page, you’re in trouble, but you can turn it around faster than you think by starting an SEO program. Once you get a favorable spot, it’s easier to maintain

your position; but, getting there requires an investment in both time and money and it needs to be treated as a priority.

Consumer education: In an age of full transparency and accountability, body shops are now creating signage to answer their customers’ frequently asked questions. To educate his clients, Frank Barnard the owner of Almost Everything Auto Body Repair & Paint in Fremont, CA, has a services board that hangs from the walls of his reception area and it reportedly works well. It provides information about his paintwork, collision repairs and other details that can eliminate speculation in many cases. When it comes to collision repair services, he has two categories— “The Best Way” and “Budget-Minded Compromises.” “We deal with frequently asked

questions and offer options,” Barnard said. “If people want to ask us about things like OEM vs. aftermarket parts; blending paint; polishing and color matching, it’s all on the wall. It’s a real timesaver and ideal for our techs and estimators who always get a lot of questions.” YouTubing it: YouTube has experienced unprecedented growth since it was founded in a garage 14 years ago. After one year, it was getting more than 65,000 new video uploads and 100 million video views daily. Today, the numbers are 1.9 billion monthly users and 400 hours of video are posted on YouTube every minute. People are more comfortable watching as opposed to reading and they will sit through a short clip without protesting, as long as it’s engaging. Entertaining and informational videos lead the way. Videos such as “Watch a Full Body Shop in 90 Seconds” (100k views); “How to Spot a Scam at an Auto Body Shop” (554k views) and “Everything You Need to Know About Ceramic Coatings” (871k views) will create a buzz. In the end, it’s all about

attracting new customers and strengthening your relationships with your existing client base. Peter Bizaca has worked for MSOs in different marketing capacities over the years and is a former producer for CBS and HBO. He has witnessed the evolution of streaming and respects the power of video for several reasons. “The technology has made it so much easier to create videos that look like they’re professionally produced,” Bizaca said. “You can use an iPhone or a very inexpensive camera and the editing software is easy-touse. You don’t have to be the next Francis Coppola to make something that people will want to watch. But, be different and make certain that your videos inform first and sell second. If they look like ads, people will opt out within the first 15-20 seconds.” Be selective with technology: How many apps does one business really need? You bought that software to help you with your marketing and now no one knows how to use it! Shop owners want to be out there on

the cutting-edge, so they acquire a piece of technology and then expect great results almost instantly. If we build it, they will come, they think and then scratch their heads when the customers don’t flock to use them. A few years ago, there was what I called “the aluminum rush” where shops clamored to become aluminum-ready. They got the right tools and training, and got ready for the avalanche of aluminum vehicles that never came. And that’s why there are a lot of aluminum welders collecting dust in the corners of body shops all over the country right now. The point is, take a close look at any type of technology before you decide to acquire it. Ask yourself questions like “Do we need this or just want it?” or “Will we follow through in order to optimize it or abandon it after a while?” There are a lot of products out there in the marketing space that are neat and perform a specific task, but are they essential to your business? I got a garlic press and an electric cheese grater for Christmas, two things I will never likely use. Why? Because knives and manual graters

work just fine.

Giving back pays off: Some shops have stepped away from marketing and advertising and now put their lion’s share of money in philanthropy. If you’re looking for the top body shops in any region, I will bet that they’re doing more than a few charity-related events and programs every year. Giving away fully refurbished cars and new bicycles or raising funds for nonprofits by sponsoring car washes, truck pulls, food drives, chili feeds and other charitable events is a win-win. Helping other people gets your company’s name out there and shows that you care about the community. Peter Richard has been overseeing all public relations at G & C Auto Body, an MSO in northern California since 2015. “We began gravitating more and more away from conventional advertising and marketing and put that money into philanthropy,” he said. “The late Gene Crozat set a foundation many years ago here at G & C and all of his children have taken it to the next level. We do these things for others, but the positive publicity we receive as a result is a huge plus.”

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GM, Tesla Head for New Year Without Electric Vehicle Tax Credits by Keith Laing, The Detroit News

General Motors Co. and Tesla are about to become the first automakers that will have to sell EVs without the benefit of a $7,500 federal tax credit. Congress failed to include legislation in a spending bill that would have tripled the 200,000 cap on the number of EVs per manufacturer that qualify for tax credits. The legislation would have allowed GM, Tesla and any other automaker hitting that ceiling to offer a slightly lower tax credit of $7,000 for another 400,000 plug-in cars. Now GM and Tesla, which pioneered the development of electric cars while other automakers sat on the sidelines, will enter 2020 at a disadvantage. Competitors such as Ford Motor Co., which has the batterypowered Mustang Mach-E SUV coming in late 2020, will effectively have a $7,500 discount over comparable GM and Tesla vehicles. “Seventy-five-hundred bucks less than your competitors is a good thing,” said Brett Smith, director of propulsion technologies and energy infrastructure for the Center for Automotive Research. “It’s a little bit unfair in that both of these companies went out and really developed and pushed this technology, and now they are not going to have any federal discounts to offer.” GM and Tesla might have to cut prices to make up the difference — but Tesla could be more insulated because of the high demand for its cars. “For GM, I think it’s a bigger deal than it is for Tesla,” Smith said. “The Volt is a very nice electric car, but it’s not really an aspirational car. It can be cross-shopped a little bit more than Tesla vehicles.” GM and Tesla both hit the lifetime ceiling of 200,000 electric vehicles per manufacturer that qualify for the tax break in 2018, triggering a phase-out process that saw the number of tax credits they could offer falling by half every six months until they hit zero on Jan. 1, 2020. Tesla, GM and Nissan accounted for 62% of the 1.18 million electric vehicles that were on the road as of March, according to the Edison Electric Institute, which represents U.S. investor-owned electric companies. 28

Carmakers sold 236,067 electric cars from January to September 2019, down from 361,307 in the same period of 2018, according to the Electric Drive Transportation Association, which lobbies for policies that promote electric-drive technologies.

The White House did not respond to ment 11 years ago. Conservatives a request for comment. Trump has have argued the federal government tried to kill the EV tax credit entirely should not be propping up electric vein the past, and he has expressed hicles at a time when buyers have skepticism about GM’s large bet on demonstrated a clear preference for gasoline-powered SUVs and pickups. plug-in cars. EV supporters say the tax credit “This is a missed opportunity to further advance electrifica- has helped spur the market for plugtion in the United States,” in vehicles. They argue that killing GM said in a statement. it would strip carmakers of a key in“The EV tax credit pro- centive to convince drivers to cut vides a proven pathway to dependence on gas pumps, and it establish the U.S. as a would be harder for car manufacturleader in electrification, ers to hit government fuel-economy helping make electric ve- requirements. “The electric vehicle tax credit hicles more accessible for has helped to put more than a million all customers.” Tesla did not respond to clean cars on the road, creating thouFrom 2010 through June 2019, GM sold 216,702 EVs; a request for comment. In sands of jobs along the way,” Sierra Tesla sold 436,548, according to EVAdoption.com, which its third-quarter filing with Club Legislative Director Melinda tracks electric-car tax-credit use. Credit: AFP Contributor, the Securities and Ex- Pierce said. AFP/Getty Images, File “We must extend these investchange Commission, the Electric vehicles have been el- Silicon Valley automaker said it was ments for flourishing technologies igible for federal tax credits under likely the impending phase-outs like EVs to continue growing our a program that was first estab- caused some buyers to purchase a economy and protecting the health of lished by the George W. Bush ad- Tesla sooner than they otherwise the planet.” ministration. The program was might have. later expanded by the Obama adThe EV tax credit has been a We thank The Detroit News for reprint ministration, raising the amount of point of contention since its establish- permission. the tax credit from $2,500 to $7,500 and instituting the current 200,000 EVs per manufacturer limit. The incentives were intended to encourage EV development by sweetening the deal on vehicles that are typically more expensive. From 2010 through June 2019, GM sold 216,702 EVs; Tesla sold 436,548, according to EVAdoption.com, which tracks electric-car tax-credit use by manufacturer. Nissan is expected to become the next automaker to hit the cap in 2022 or HOURS: 2023, according to the website. Mon. - Fri.: U.S. Sen. Debbie Stabenow, D7:30am - 8pm Lansing, who introduced the bipartisan legislation that would have Sat.: • Large Inventory raised the ceiling on tax credits, 8am - 4pm • Delivering to Westchester, blamed President Donald Trump Sun.: Rockland, Putnam for blocking the measure from being 9am - 4pm • NYC 5 Boroughs & Connecticut included in the government funding • Fast Free Delivery bill. acura.parts@yahoo.com • Great Discounted Prices “President Trump promised to 2155 Palmer Ave. invest in Michigan workers, but just Larchmont, NY 10538 recently, we saw the opposite,” Stabenow said in a statement. “He Call or e-mail 914-833-1812 FAX blocked the next generation of vehius Today! www.acuraofwestchester.com cles and technology by saying no to the electric vehicle consumer tax credit. I want these clean energy jobs www.oeconnection.com here in Michigan, not China.”

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

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Would Fiat Chrysler retain its headquarters in Auburn Hills? The current Italian American automaker is incorporated in the Netherlands, headquartered in London and retains major operations in Auburn Hills and Turin, Italy, the home of the Fiat brand. Likewise, the combination of FCA and PSA would be domiciled in the Netherlands and continue to have operational headquarters in Auburn Hills, Paris and Turin.

combination will benefit its members and it is looking forward to hearing more details. The labor contract that UAW members ratified a week ago with FCA continues to include job security provisions in the instances of a merger, a union spokesman previously said. FCA’s previously announced investments, including the construction of a new assembly plant in Detroit, will not be affected. As for salaried employees, 20% of the expected $4.1 billion in cost savings is expected from the combination will result from redundancies in marketing, information technology, logistics and other areas, the companies said. But Groupe PSA does not have a retail presence in North America. Most of the cuts are expected to occur in Europe where there is overlap.

Are Fiat Chrysler employees’ jobs in jeopardy? Executives repeated statements from October that there would be no plant closures or loss of manufacturing jobs as a result of the transaction. United Auto Workers Vice President Cindy Estrada said the union hopes the

What does this mean for Fiat Chrysler buyers? The combined company is expected to maintain all 13 brands that Fiat Chrysler and PSA currently operate. The companies, however, plan to shrink the number of vehicle platforms they operate. Two platforms

Continued from Cover

US Jobs

provided to investors refers to the entity colloquially as “DutchCo,” but Fiat Chrysler representatives assured that is not the official title.

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

are expected to be the basis twothirds of the combined entity’s run for small and compact/mid-size vehicles. The convergence of these platforms could been seen starting in 20 months following the deal’s closure, the executives said. U.S. consumers could see the implementation of PSA’s technology and electrification platform in Fiat Chrysler vehicles, Manley said. The combination perhaps could speed the introduction of brands like Peugeot, Citroën, Opel and Vauxhall into North America. In 2016, PSA had established a ten-year goal to reenter the U.S. retail market. “We see the strength of FCA in North America,” Tavares said. “We have 12 months ahead of us to think what we would do after closing. So far it is premature. This is something that we will have to consider.” We thank The Detroit News for reprint permission.

www.autobodynews.com

UPDATED DAILY

Continued from Cover

Vehicle Scanning

now say they are at least negotiating to be paid for vehicle scans, and 88% say they are being paid regularly when they do. “There are very few shops not seeking to be paid, particularly for post-repair scanning.” said industry trainer and consultant Mike Anderson of Collision Advice. “This is different from some of the other ‘not-included’ procedures where a significant percentage of shops aren’t getting paid because they’re not seeking to be paid. But the industry also needs to keep in mind that an insurer refusing to pay for a scan does not remove a shop’s liability for not conducting one.” The first of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” refinish operations, is open now through the end of January at: www.surveymonkey .com/r/JHPCT8B. To find the results of previous survey, please visit crashnetwork .com/collisionadvice.

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Audi Debuts the Audi AI:ME, a Fully-Automated Car With ‘Empathetic’ AI by John Loeffler, Interesting Engineering

Audi introduced their latest concept vehicle at CES 2020, the Audi AI:ME, exploring the company’s vision for the autonomous luxury car we can expect to see in the coming years. The AI:ME, accord-

Credit: Audi

ing to the company, will represent the “third living space” alongside the home and the workplace of the consumer. Audi AI:ME Gives Occupants the ‘Audi Intelligence Experience’ The Audi AI:ME, the company’s newest concept car, debuted at CES 2020 to explore Audi’s vision for

the future of luxury vehicles in the coming autonomous future. Pushing beyond a standard AI interface, Audi is hoping to push their in-car AI system to another level of interactivity and sophistication. Hoping to create an “empathetic” AI, the company said that AI:ME “knows its user and their habits and uses intelligent functions combined with artificial intelligence to increase the passengers’ safety, wellbeing, and comfort... In the future, the car will also conduct a precise analysis as to the functions and settings that its user prefers, ranging from the seat position, media, route guidance, and temperature to the fragrance of the interior. After a short time, the empathetic Audi is familiar with the user’s preferences and implements them autonomously.” We thank Interesting Engineering for reprint permission.

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

Honda Becomes the First OEM to Integrate Cloud Diagnostics Into the CCC X Data Exchange CCC Information Services (CCC) and American Honda Motor Co., Inc. (American Honda) announce that the OEM becomes the first to integrate its diagnostics scanning cloud technology into the CCC X data exchange, simplifying scanning and reporting for Honda and Acura vehicles. Honda diagnostics data will be ingested by CCC X and passed seamlessly into CCC ONE; the platform repairers use to write millions of estimates. “First and foremost, we want to ensure quality repairs for Honda and Acura customers,” said Kevin Prettner, assistant vice president of service operations for American Honda. “By making the diagnostic process easier and direct, this new platform has the potential to improve repair accuracy for our cus-

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tomers while reducing workload for repairers.”

“We’re excited to work with Honda to help our shared repair customers gain easy, integrated access to diagnostics data for Honda and Acura vehicles,” added Mark Fincher, vice president, market solutions for CCC. “CCC is committed to advancing technology to solve challenges and improve efficiencies for repair facilities.”

AUTOBODY

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Facing Vehicle Shortage, Buffalo, NY, Police to Lease Instead of Buy by Tom Dinki, WBFO News

Looking to address its vehicle shortage, the Buffalo Police Department plans to lease several new vehicles instead of purchasing them. Police were given funding in last year’s city budget to purchase 14 new vehicles, but officers at the Police Oversight Committee meeting revealed they’ve yet to do it. They said it’s because they’ve decided to lease the vehicles instead. Buffalo Police Capt. Jeff Rinaldo told Common Council members that officers can lease approximately 26 vehicles for the price of buying 14 vehicles. “So, we’re in essence adding 12 additional vehicles by reserving that money to apply toward a lease as opposed to a purchase,” he said, adding police could then purchase the vehicles as a reduced rate of roughly $5,000 once the lease is over. Proposals on a lease deal were due Friday, Jan. 10. Officers now plan to review the proposals and select one. The Common Council would then have to approve the deal. Council members expressed some surprise about the change in plan,

but Council Member Christopher Scanlon said they’ll likely approve the lease deal as long as it truly saves money. “We’ll follow up to make sure that number is accurate and if those are enough to operate,” he added. “We just want to make sure there’s enough vehicles for the men and women of the Buffalo Police Department to get out and provide the public safety that we have to.” Buffalo police have 190 vehicles, but 56 are currently out of service and in need of repair, officers said. The Buffalo police union has criticized the department for the vehicle shortage, saying it sometimes makes it difficult for officers to respond to incidents. Buffalo Police Benevolent Association President John Evans told WBFO in November that the department needs about 60 new vehicles. In addition to leasing 26 new vehicles, Rinaldo said police still plan to purchase another 20 vehicles as part of funding in Mayor Byron Brown’s 2020 capital budget. Police also face a mechanic shortage at their Seneca Street garage. There are currently six mechanics and

three openings, according to Rinaldo. That doesn’t include the garage’s superintendent and couple supervisors, he added. “We fill all of our open positions as quickly as we can,” he said. “There’s a process between civil service examination, there’s a process between interviewing, somebody may take a leave of absence … This is the ebb and flow of personnel issues that the city experiences.” Council members questioned how much the mechanics are paid, but police did not immediately provide a figure. Scanlon suggested the city may have to consider increasing wages to cut down on turnover in the garage. “Obviously if a car goes down, we have to have someone there who can work on it and get it back into circulation so it’s imperative we fill those jobs,” he said. “If we have to look at adjusting the salary of those positions in order to attract qualified people, maybe that’s something we have to look at.” We thank WBFO News for reprint permission.

AirPro Renews Commitment to CIECA

AirPro Diagnostics renewed its commitment to CIECA and the CIECA Standards. AirPro Diagnostics is headquartered in Jacksonville, FL. The company’s primary area of focus is to deliver OEM-level diagnostics, calibrations and systems services to the collision repair community in North America. Chuck Olsen, AirPro’s SVP Operations & Automotive Technology Solutions, said the company joined CIECA to ensure it had access to the CIECA Standards as well as to participate in the important work of standards in the scanning, calibrations and programing arena. “Standards continue to develop in all segments of the collision repair industry including diagnostics, calibrations and vehicle safety systems,” said Olsen. “As the various stakeholders continue to learn and adjust to properly and safely repair motorists’ vehicles, it is imperative we have standards for communication.”

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

HONDA CONNECTICUT

Lia Honda of Enfield Enfield

800-221-3131 860-741-3401 Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com MAINE

Berlin City Honda South Portland

800-640-6685 207-774-6685 Dept. Hours: M-F 7:30-5:30 mmmparts@berlincity.com

Prime Honda Saco

207-391-7910 207-282-0900 Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com MARYLAND

Criswell Honda Ger mantown

866-738-2886 Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com MASSACHUSETTS

LIA Honda Northampton Northampton

800-369-7889 413-586-6043 Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com

ACURA MASSACHUSETTS

Acura of Boston Brighton

800-254-1169 617-254-5400 Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com

Acura of Peabody Peabody

800-878-3600 978-532-9110 Dept. Hours: M-Sat 8-5 dbritt@acurapeabody.com

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. NEW JERSEY

NEW JERSEY

NEW YORK

PEN N S Y LVA N I A

Clinton Honda

Sussex Honda

Lia Honda of Williamsville

Annandale

Newton

Williamsville/Buffalo

Roslyn

877-657-2787

800-842-0557 973-579-3500

877-659-2672 716-632-3800

800-682-2914 215-657-3301

Dept. Hours: M-F 8-5 realhondaparts@sussexhonda.com

Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

Dept. Hours: M-F 8-5 chrish@clintonhonda.com

Honda of Turnersville Tur nersville

VIP Honda

VER M O N T

800-883-0002 856-649-1584

North Plainfield

Ray Laks Honda

908-753-1680

We s t S e n e c a

Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com

Dept. Hours: M-F 7:30-6; Sat 8-3 kevinh@viphonda.com

Hudson Honda West New York

866-483-6917 201-868-9500

716-824-7852 Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com

NEW YORK

Brewster Honda B re w s t e r

845-278-4177

Madison Honda

Dick Ide Honda

Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

R o ch e s t e r

Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com

Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com

Rossi Honda

Lamacchia Honda

Vineland

S y ra c u s e

800-893-3030 856-692-4449

315-471-7278

Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com

Route 22 Honda Hillside

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NEW JERSEY

Baierl Honda Wex f o rd

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Shadyside Honda P i t t s b u rg h

Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com

800-468-2090 412-390-2908

Lia Honda of Albany

Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com

Albany

800-272-6741 518-482-2598 Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 mjerard@liacars.com

NEW JERSEY

Dept. Hours: M-F 7:30-5; Sat 8-Noon hondaparts@802cars.com

Yo r k

800-960-9041 717-848-2600

800-462-0056 (N.Y.) 585-586-4919

Berlin

802-223-9700

Apple Honda

Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com

Madison

802 Honda

PENNSYLVANIA

Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com

800-648-0293 973-822-1710

Sussman Honda

Shenango Honda Hermitage

800-858-0849 724-981-7106 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@shenangoauto.com

NEW YORK

PEN N S Y LVA N I A

Acura Turnersville

Park Ave Acura

Paragon Acura

Tu r ne r s v il l e

M a y wood

Woodside

Langhor ne

888-883-2884 856-516-6060

888-690-7621 201-587-0028

718-507-3990

866-50-ACURA 215-943-7000

Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com

Dept. Hours: M-F 8-6; Sat 8-3 ron@parkaveacura.com

Bill Vinceâ&#x20AC;&#x2122;s Bridgewater Acura B r i d g e wa t e r

NEW YORK

Acura of Westchester We s t chester

908-704-0307

914-834-8887

Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com

Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com

Elite Acura Maple Shade

Curry Acura

856-722-9600

S c a rsdale

Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com

800-725-2877 914-472-7406 Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com

Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com

Smithtown Acura St. James

888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

Davis Acura Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com

Sussman Acura Jenkintown

800-826-4078 215-884-6285 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

PENNSYLVANIA

Baierl Acura Wexford

800-246-7457 724-935-0800 Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

That’s It! He’s Had It, Part 1 by Gary Ledoux

Social media has changed the way we interact with each other, with our peers, and with the world. The originators of Facebook thought it’d be fun to share a good experience you had at your favorite restaurant or share a picture of your little leaguer hitting the winning run, but it’s gone beyond that. Monitoring the various collisionrelated Facebook pages, hardly a week goes by when some shop owner doesn’t create a post, lamenting their seemingly hopeless situation, dealing with insurance companies, dealing with customers that want everything “thrown-in,” including the deductible, and trying to find and keep good help. The post usually ends with “That’s it. I’ve had it!” Then, the conversation usually goes like this: “I could close my shop, but then what would I do … work as a line tech for another shop? I’m still in my 40’s but the challenges of body work have wrecked my back and standing on concrete all day has wrecked my legs. This is the only job I’ve known since I was 16. What do I do now?” The answer is – there’s plenty to do. Being a shop owner, you have experience and knowledge that is transferable to other corners of the collision repair industry. Stop and think of all the companies that produce products and services that support your efforts as a collision repair shop, and all the managers, representatives, and other workers they employ. Your experience as a shop owner (or technician, or painter) is invaluable to them. Here are a few to consider:

HD Truck Repair: Consider the heavy truck and specialty vehicle industry if you enjoy working with your hands and seeing the physical results of your efforts. This includes repairing tractor-trailer rigs or specialty vehicles like fire trucks or ambulances. The work is no less strenuous than working on automobiles, but insurance adjusters rarely question an estimate. The labor rate runs $100 to $150 per hour, and with a guesstimated 2,000 heavy truck shops in the country, there is less competition as 36

opposed to the 35,000 auto collision shops. Insurance Adjuster: Yes, it almost feels blasphemous to work in a corner of the industry you have cursed since day one. How many times have you said, “I wish these guys knew something so I didn’t have to train them!” Now, you can be that rare adjuster that truly knows the business and can relate to the shops.

MSO Field Manager: Depending on the MSO, it might be necessary to manage anywhere from six to eight shop locations to hundreds of locations. This requires coordination, manpower, and an intricate knowledge of the industry. A former shop owner or manager could be invaluable in any number of positions in an organization as such.

Equipment Manufacturer / Distributor: Tim Morgan, a former body shop owner, and former training manager for another equipment maker, and trainer for a technical college, is now the chief operating officer for Spanesi Equipment for North America. Asked about the role a former shop owner could play in his organization, Morgan noted, “We, and our independent distributors, need people to sell, install, demonstrate and train people on the use of Spanesi equipment. We sell everything needed to outfit a shop including pulling and measuring equipment, welding equipment, spray booths and so forth. Former shop owners, managers and techs make excellent candidates for this kind of work. I have hired several since 2012 … and wish I could find a few more.”

Estimating Company: What better person to conduct training or serve as a field rep for an estimating system than someone who has worked, probably with all the different systems, and different generations of systems, than a former shop owner or manager?

Paint Manufacturer: John Bosin, now retired but formerly a representative with AkzoNobel and DuPont paint companies noted, “Initially DuPont wanted people with a bach-

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

elor’s degree in business. Eventually what they, and other paint companies realized was, they needed people who were versed in the business and the products they represented. Today, former shop owners not only make great account representatives, but paint companies also need people to serve in training and consulting roles to manage their body shop programs such as Akzo’s A-Coat program.” PBE Jobber Rep: Gay Bargnes, one of the principals for Painter’s Supply, a paint and body supply jobber with 52 stores in eight states is well known in the industry and is the immediate past chair for the Collision Industry Conference. He said there are many positions on this side of the industry that can be and are filled with former shop owners, techs and painters. Bargnes added, “Being a rep or a trainer for a paint jobber is a quasi-technical position. It requires a combination of technical skill, sales skills, and people skills.” Bargnes “guesstimates” that there are about 1,500 Paint Body and Equipment

(PBE) jobber companies in the country with a total of 4,000 locations. This is not counting the many auto parts jobbers who also carry PBE products. According to Bargnes’ estimation, “This provides former shop owners, painters and technicians with the most opportunity of any shop employment alternative in the industry.”

Consumer Advocate: Consumer advocate is an all-encompassing way of describing a professional who will conduct post-repair inspections and assist in diminished-value claims. Many consultants do this, but some, like Collision Safety Consultants based in North Carolina and Wreck Check Car Scan (owned by a former shop owner) based in Las Vegas specialize in it. With cars becoming more sophisticated and people becoming more litigious, post repair inspection, and looking after the rights of the consumer is a growing business. Given the John Eagle case of two years ago, the stakes could not be higher. See That’s It!, Page 44

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Product Innovation

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

with Ed Attanasio

First Paint Suits Designed for Ladies Announced at SEMA Fear not, ladies—the Behind the Gun paint suit is made just for you and is finally here! If you’re a female refinisher or technician, this is great news and much needed, according to its creator Connie Manjavinos. Several years ago, Manjavinos, a head painter at Kiddy’s Classics in Jensen Beach, FL, and the person behind Girls Behind the Gun began approaching SATA about producing a paint suit designed specifically for women. As more and more ladies move to the forefront of this industry and gain respect for being top-performing technicians, Manjavinos is driven to play a meaningful role. With a mission of connecting to other females in the collision industry, Manjavinos created an outlet on social media: Girls Behind the Gun. It’s a place of appreciation for all women in the refinishing and collision repair industry. Manjavinos is

now connected with thousands of other female refinishers and technicians. The movement started four

At SEMA 2019, Connie Manjavinos unveiled her Behind the Gun paint suit, designed specifically for women. Credit: Ed Attanasio

years ago and has already reached an impressive 20,000 followers on Facebook and Instagram. Hilary Ann (@autobodybarbie) came to me with an idea to start “an exclusive Facebook page called Auto Body Gals and I responded with go for it! We have almost 1,100 women from all over the world who use it and share tips, tricks, and techniques while ultimately networking and celebrating each other. It’s going to take an army to make a difference for women in this industry.” Manjavinos has received national acclaim for her work and has participated in many events including 3M’S PPS World Cup. She also received second place in last year’s SATA Gun Design Competition for SEMA, and also participated in two all-female builds featured at SEMA. It’s still a male-dominated industry, but things are getting better,

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Manjavinos said. “Yes, there are still a few guys out there who have issues with women, but they aren’t going to stop me from what I am doing. In a way, it’s inspiring and most of the men I encounter are so supportive, to be honest. That’s why networking with other female painters and techs is so needed, because there’s power in numbers.” When Tony Lartimer at DanAm Company and CHOKO Designs, a clothing manufacturer, gave her paint suit concept two thumbs up, it was go time, Manjavinos said. “In November 2018, the people at Choko approached me and after a while all three parties came together to do this. It was fate and pretty amazing. I was excited and we began the design process right away. We started with a rough draft and then it changed and evolved during the development stage.”

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Most paint suits are made for men and this one acknowledges women,” she said. “Before this suit existed, we had to use a log of tape to get a good seal around the ankles and wrists—it’s a hassle. We got a lot of valuable feedback from female painters and we determined that it takes 15 minutes to tape up. In

straps replace tape and the Girls Behind the Gun logo is emblazoned on the back of the suit. The goal was to create a suit that will help us to be more efficient without completely sacrificing style.” Over the years, several companies came out with paint suits that were allegedly designed for women,

“The goal was to create a suit that will help us to be more efficient without completely sacrificing style.” — Connie Manjavinos addition, men’s suits are normally way too big for us, and we don’t want all that extra material that can touch the paint when we lean in, for example.” Other modifications make the suit ideal for women, Manjavinos said. “With our suit, we insisted on knee pads that might eventually be removable in future designs. We also got rid of the pocket on the chest, so we could use the princess cut design to achieve that feminine look. We also learned that most ladies don’t use their pocket anyway. Velcro

Manjavinos said. “There was no other women’s paint suit out there on the market. Other brands came out with pink suits as a special edition, but it would still be a men’s suit. When I first began thinking about the Girls Behind the Gun paint suits, I Googled it and when I saw that there was nothing out there, it inspired me even more.” Available in every size from extra small to triple extra large, the Girls Behind the Gun paint suit features a breathable full poly-cotton back; built-in padded knees; hook

and loop cuff closures; ergonomically shaped sleeves, easy to slip on wide paint legs adjustable hook & loop leg closures and underarm twoway zippers. Unveiling the suit at SEMA 2019 was an incredible experience for Manjavinos. “Every woman who saw it at the SATA booth loved it and every single one didn’t hesitate to try it on. This suit represents opportunity and I really believe that this is only the beginning, as more and more doors start opening up for us. The new Girls Behind the Gun is part of this revolution and proud to be part of it.” “I just want to help the women be able to walk in that paint booth with confidence,” she added. “I want to eliminate the stress or anxiety in the back of their heads to make sure that their paint suit isn’t in the way. That way, we can truly focus on our work and achieving a fantastic paint job. This is for all women with all backgrounds behind the gun who needs a protected paint suit!”

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GM Sells Over 1 Million Crossovers Again

General Motors Co. (GM) announced that it delivered 2,887,046 vehicles in 2019 in the United States. The total included more than 1 million crossovers for the second year in a row, an increase of 12.7 percent compared to 2018, and more than 1 million full-size pickup trucks and SUVs. “We’ve focused our resources on what our customers want – crossovers and trucks – and that has paid off,” said Kurt McNeil, vice president, U.S. Sales Operations. “In addition to our industry leading crossover sales, our full-size truck franchise is unmatched.” Fourth quarter North American wholesales declined an estimated 25 percent year over year, due to the 40-day United Auto Workers work stoppage. “Our fourth-quarter stocks were leaner than we wanted, but as we get ready to launch our all-new full-size SUVs, we look forward to another solid year in 2020,” McNeil added.

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Industry Insight with John Yoswick

MSOs Hear Positive Outlook for 2020, Discuss Mixed Impact of Photo Estimating A positive forecast for the collision repair industry in 2020 was among the presentations at the eighth annual “MSO Symposium” held in Las Vegas during SEMA. Susanna Gotsch, director of industry analysis for CCC Information Services, said with new-car sales in 2019 again at $17 million for the fifth year in a row (a first), and scrappage rates at historic lows, a growing vehicle population on the roads should mean “we will see the overall number of vehicles in accidents grow.”

Susanna Gotsch of CCC Information Services sees other factors offsetting some of the downward impact ADAS has on accident frequency in the short term, and collision repair costs rising healthily this year. Credit: John Yoswick

Advanced driver assistance systems (ADAS) will likely continue to have a modest impact on that, she acknowledged. About 56 percent of 2019 model year vehicles include frontal crash warning with emergency braking (up from 29 percent for model year 2017), meaning an estimated 60 million vehicles on U.S. roads have that technology. That’s only about 20 percent of the total vehicle population, but a much higher percentage of vehicles that are 3years-old or newer, which have previously accounted for a third of the estimates CCC processes. Gotsch calculates if emergency braking cuts those vehicles’ likelihood of a front-to-rear collision by 50 percent, that technology is reducing overall frequency between 2 percent and 5 percent. There’s some potential offset; however, vehicles with emergency braking have a 20 42

percent higher frequency of being rear-ended by another vehicle when the emergency braking kicks in. That’s the upside for collision repairers during this period when there are still plenty of vehicles without much in the way of ADAS. In the short run, she said, the industry can expect to see slightly fewer but more complex and expensive repairs. “We expect repair costs to accelerate about 5 percent [in 2020] on average, versus about 3 percent growth two or three years ago,” she said. As more driver assistance systems are introduced and work better in more situations, there should be more of an impact on frequency and severity, she said. “Even if the vehicle doesn’t avoid the accident, [emergency braking] may at least minimally reduce the damage incurred if the speed of the vehicle is mitigated before impact,” she added. But Gotsch also echoed those who have said autonomous vehicles aren’t going to put collision repairers’ livelihoods at stake any time soon. She cited Apple co-founder Steve Wozniak, now age 69, who said last fall that fully self-driving vehicles likely won’t be ready for the real world “in my lifetime.” In the meantime, Gotsch said, automakers are looking for new ways to generate revenue from vehicles such as in-console ads or announcements promoting (while potentially distracting drivers) easily-accessible gas stations or doughnut shops the driver and vehicle are approaching. “So despite all the talk about vehicle autonomy changing our landscape and eliminating the need for personal auto insurance and vehicle repairs in the future, I think most of us, as I look around the room, are probably pretty safe with a career in this industry, at least until we retire,” Gotsch said.

Virtual Claims Handling Will “Normalize” Repair Costs In another presentation during the

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MSO Symposium, Allstate’s Clint Marlow said he believes “virtual inspections” will continue to become more common. “It costs an awful lot of money to have staff that gets in a car in the morning and travels from repair facility to repair facility,” Marlow said. “From the studies we did, they spent half that time driving, sitting in traffic, etc.” He said cutting back on staffing costs is part of what’s driving the push for virtual inspections, but he also said more and more consumers are finding it an easier and faster process, and shops are seeing faster supplement approvals using Allstate’s “Virtual Assist” rather than waiting for in-shop reinspections by an adjuster. However, Marlow did acknowledge that some challenges with virtual inspections still exist. With just

photos, he said, you “can’t get under the car or lift the hood.” “And the consumer may come in [to the shop] thinking this is a minor loss, and all of a sudden at tear-down it’s like, ‘Wait a minute. Why is the repair this much? Who is trying to get one over on me? Is it the insurer or is it the repairer?’ When really, it’s just additional damage,” Marlow said. But increased use of “big data” will help resolve more of those issues, he predicted. “What are the parts that you’re not seeing [in a virtual inspection] that you think may be damaged,” Marlow said. “You can start to [use historical claims data] to put a confidence weight on that. No one likes [parts] returns. But if I said [based on data] there’s a 90 percent chance of you needing this part, how many people would not order that part in their initial parts order? And you might

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even do it at 80 percent. Lower than that, people may start to get squeamish. So, you’ll start to see these types of predictions on the damage you don’t see to augment the virtual estimate.” Marlow predicted that one outcome of the shift toward photo estimating and remote or “virtual” handling of supplements will be that

Allstate’s Clint Marlow predicted “big data” increasingly will help offset current limitations of photo estimating. Credit: John Yoswick

“repair costs are going to normalize across the industry.” He said when companies such as his had local claims offices throughout most markets, “different market practices evolved over time” in each of those markets. “Judgement times,” for exContinued from Page 36

That’s It!

Executive Director of an Auto Body Association: In 1982, John Loftus owned a body shop in Hawthorne, CA, and was already active in his state’s auto body association. He knew something more was needed – something on a national scale. Long story short, he, and a few other shop owners were responsible for founding what is known today as the Society of Collision Repair Specialists (SCRS). Loftus became a paid “employee” of the organization serving as executive director for 19 years. Is there a body shop association or similar organization in your area that needs an executive director?

ample, evolved differently, particularly in areas like California where labor rates vary from market to market. “They all still kind of get paid the same money to fix the car [despite the differences in labor rates] because the judgment times have evolved a little bit differently,” Marlow said. “That probably isn’t going to be a good model going forward when California claims are handled [remotely] by someone in Atlanta or somebody in New York. That’s my hypothesis on why you’re going to see things normalize across the industry, because you’re losing local market knowledge.” Mixed Views of Photo Estimating MSOs themselves offered a little less enthusiasm for photo estimating during a panel discussion at the event. Vince Claudio of the Gerber Collision chain did say his company has run almost 10,000 photo estimates last year, but he sees it mostly as a customer convenience or a way for the company to potentially handle a “catastrophic event where you have resources strained” and could “work Industry-Related Technology Company: Curt Nixon is a former collision shop owner who saw several needs within the customer-experience initiatives for body shops, mechanical shops and dealership service departments, and is working hard to fill those needs. He operates a company called Update Promise, providing a suite of products to help shops build business and profits and enhance the customer experience. Among these are verified third-party shop reviews, integrated payment systems, data analytics, and customer contact. Be sure to check Autobody News next month for part two of this two-part series with a few more ideas on related alternatives to shop management, and the conclusion of this article.

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with a central review team to complete some estimates.” Mark Sanders, president and chief operating officer for the Caliber Collision chain, said his company also offers photo estimates as a customer service, but only “for very small claims, where we can write an estimate, have the customer accept repairs, and we pre-order the parts,” enabling the customer to make only one trip to the shop before repairs begin. “But I do think you’re seeing [photo estimating] getting abused, where it’s being used as a cash-out tool for a lot of customers, some with pretty significant hits,” Sanders said. “To me there’s a risk there of writing an estimate for a customer with what appears to be minor bumper damage, but without notifying that customer that the vehicle could be unsafe to drive because the [sensors or ADAS] systems are knocked out of calibration.” Claudio concurred. “It feels like it makes it easier for them to interact and do business [with you], but by the same token you could be creating significant risk,” he said.

North Idaho Repair Centre Wins Local Award Premier collision repair centre continues to exceed customer expectations leading to Idaho’s Best and recognition from BeLocal magazine. CARSTAR of Hayden, has been in the community for two years, while the owner of the facility, Greg Solesbee, has been in the industry his whole life. Together, with his team, they always keep customer service and safety top of mind. “We know collision repairs can be confusing, so our team works hard to make sure customers always stay informed, understand the work that is being done to their vehicle and are happy with the repair quality when it is done,” says Solesbee. “We are grateful to the community for their vote of confidence for this award and look forward to continuing to provide this best-in-class service to Hayden.” For more information on CARSTAR, visit CARSTAR.com.

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National Associations with Chasidy Rae Sisk

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

ASA’s Webinar Wednesday Addresses What’s Happening With Data Access Policy On Dec. 18, ASA’s monthly Webinar Wednesday featured a discussion on “What’s Happening With Data Access Policy” with Robert L. Redding Jr., ASA Washington, D. C. representative and Greg Scott from the U. S. Vehicle Data Access Coalition. The webinar began with ASA Vice President of Industry Relations Tony Molla welcoming attendees and introducing Redding and Scott. Redding began with a review of service information and vehicle data access which started with the 1990 Clean Air Act Amendments which required independent repairers to have access to the same information as dealers. Subsequent EPA regulations, what Redding called “attempts at getting it right,” proceeded to the ASA and Automaker Service Information Agreement which facilitated the creation of OEM websites and landed the industry where it currently

is today. “The Massachusetts Right to Repair led to a memorandum of understanding with aftermarket and automaker associations. Finally, in the 115th Congress passed Autonomous Vehicle Legislation in the U.S. House of Representatives, but AV legislation containing Vehicle Data Access stakeholder language failed to reach the U.S. Senator floor,” Redding explained. Moving on to data access, Redding asked Scott when the U. S. Vehicle Data Access Coalition was formed, and Scott said, “In 2017, as Congress began looking at autonomous vehicle legislation, European automakers threatened to shut down data access due to autonomous vehicles. The Coalition was founded and is comprised of members of the automotive industry, the aftermarket repair industry, consumer groups, insurance industry groups and others who believe

the owner of the vehicle should control the data generated by that vehicle and be able to grant permission to repairers to access that information.” “At the time, there was a belief that the data belonged to the OEMs who could then grant access to the vehicle owner,” Scott continued. “The Coalition was formed as a necessary political animal because our voices are stronger together and allows us to offset the power of motor vehicle manufacturers.” Explaining that the Coalition is now examining a broader set of data, Scott discussed how data impacts consumers and insurers. “Consumers need to be able to know where their vehicles are, and insurers are involved in this topic as they reconstruct accidents or try to write policies. There is all sorts of data that different parties need access to. Telematics companies pull data that’s important to fleet man-

agement companies but irrelevant to a collision repair shop. ASA members are most interested in only one data set that vehicles pull, and the many other data sets are important to other groups, but we all agree that the owner should control data access.” The Coalition became involved with the subject when the House was moving the autonomous vehicle legislation which talked about cybersecurity being housed with National Highway Safety, and the Coalition managed to secure two legislators willing to sponsor the Coalition-backed amendment in the fall of 2017. The autonomous vehicle legislation did not move to the Senate floor based on issues unrelated to data access. “We need to talk about the issue of data access, including who controls it and what use cases are allowed,” Scott said. “We moved from

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having discussions with OEMs to thinking that’s insufficient and deciding that we’re going to need to do affirmative legislation.” Redding noted that the collision repair industry has relied on thirdparty providers and OEM websites for years, and he pondered what path should be taken to move forward, identifying this as a critical concern for the second session of the 116th Congress. “We need a path for vehicle data access because there’s too much at stake,” Redding stressed. “We want to keep our small businesses viable and allow them to plan for the future. It’s important for their strategic planning that we figure this out.” Referencing the California Privacy Act, Redding questioned why shops in other states should be concerned. Scott explained, “We need to start by dividing access to data with usage of data. How can you use sensitive, personal data? California has adopted this law that goes into effect on Jan. 1, but the use of data is irrelevant to an ASA member, fleet operator or consumer if they don’t have access to that data. We need to begin by regulating data access, and then

it’s appropriate to regulate use of that information.” Scott also hypothesized about which pieces of legislation could include data access issues, besides legislation pertaining to autonomous vehicles. Addressing NHTSA’s role in data access, Scott noted, “The NHTSA’s concern is safety. Data access is related to privacy and competition. If data is restricted, competition disappears, and prices increase for consumers. Congress hasn’t given NHTSA the authority to regulate data access; as of 2019, the Federal Trade Commission regulates data access.” Anticipating that 2020 will see the introduction of data access legislation that the Coalition will be supporting, Scott predicted, “We’re going to shake up the OEMs on this topic. At the end of the day, as ASA members well know, negotiation will always include a bit of a confrontation, but if we can reach an agreement between the OEMs and vehicle owners to ensure data access for everyone who needs it, that would be the preferred outcome. The Coalition wants everyone to know we are out here beating the drum on this.”

“If you’re not at the table, you tend to be on the menu,” Scott continued. “We have to push our way into this debate and line up our champions. Legislators need to hear from their constituents to know they care about this issue. We need to make as much noise as we can so that OEMs and legislators have to pay attention. If we don’t speak up together, we won’t get the attention we need; it’s up to us to affirmatively pass legislation to prevent OEMs from shutting it down … As vehicles advance, there will be more data, and repairers will need more access. We are trying to cover current and future vehicles as we strive to address the data access issues facing the industry.” ASA’s next Webinar Wednesday will occur on Jan. 15 at 1 p.m. EST and will feature Becky Witt, AMAM for George Witt Service, as she presents “Would You Take a Job for $200 an Hour?” Witt will apply accounting principles to demonstrate how pricing should be determined, thereby providing attendees with the tools necessary to increase profits. For more information or to register, visit asashop.org/webinars/.

Axalta Sponsors Event at Michigan Science Center

General admission to the Michigan Science Center (MiSci) will be complimentary on Jan. 11 thanks to a generous sponsorship by Axalta Coatings Systems in support of science, technology, engineering, and math (STEM) education and environmental stewardship. Axalta will also display its 2020 Automotive Color of the Year at the exhibit, which will be announced on Jan. 7. On Saturday, Jan. 11, the Community will have free access to MiSci between 10:00 AM and 5:00 PM to experience “Conserve This Colorful Planet”, which aims to inspire guests to learn about water conservation in a colorful and engaging way. “We’re thankful for the opportunity to partner with Axalta, Ducks Unlimited, and Six Rivers Conservancy,” said Christian Greer, president and CEO of the Michigan Science Center. “Conserve This Colorful Planet will help teach our community about the importance of water conservation and our colorful planet.” Obtained via PR Newswire.

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In Reverse with Gary Ledoux

The 1980s – The Formation of the SCRS At the dawn of the 1980s, the collision repair industry was going through some fundamental changes with the advent of business computers, cars with unibody construction, advances in paint technology, repair technology and the introduction of aftermarket parts. Business processes and repair protocols that had been virtually unchanged since the 1940s was quickly becoming obsolete.

“In the early 1980s, body shops had it rough,” said industry veteran John Loftus in a January 2018 interview. “They needed someone or something to pull them together and represent them on a national scale. They needed some cohesion. Every shop owner was fighting their own individual battles with insurance companies.” At the time, and with few exceptions, auto body associations were mostly run at the state level. What was needed was a national organization to give the collision repair industry a unified voice. On Sept. 25, 1982, the Society of Collision Repair Specialists (SCRS) was formed with goals of providing body shops with technical training and management education, improve the quality standards of collision repair services, raise the professional standing of those engaged in the collision repair industry and secure the financial position of individuals within the industry. SCRS also wanted to work on programs to certify the professional ability of each individual member. John Loftus was appointed executive director and Rosemarie Kitchin was the executive vice president. Loftus had spent 13 years as the owner and operator of Hawthorne Auto Body in Hawthorne, CA, and several years serving in various volunteer roles for the California Autobody As50

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

sociation (CAA). Loftus was a key player in the formation of the CAA for southern California and spent a year as their director. In a recent interview, Rochelle Wickland, wife of one of SCRS’s founding members, Bill Wickland of Wickland CARSTAR Auto Body of Liberty, MO, noted, “John Loftus came to Missouri to meet with us. We all went over to Park’s Auto Body in Riverside and it was there that SCRS was born. The organization itself had to earn its reputation and credibility. But we had some good people to start out with – people who were already well-known and respected in the collision repair community. We jokingly called it the organization of the three Bills – shop owners Bill Bailey, Bill Eveland and my husband, Bill Wickland. At first we were thought of a rogue outfit.” It was very common at that time for the insurance industry to look at the burgeoning auto body associations with disdain. Insurance adjusters thought auto body associations were just “out to get them.” In fact, it got to a point where adjusters would avoid shops and would avoid sending cars to shops who were known to be part of any auto body shop association; but, eventually they realized that everyone had the same goals. The fledgling young association wasted no time getting engaged with the industry. The SCRS announced in June 1983 it would hold its first international convention on Aug. 57 at the Michigan Inn in Southfield, MI. The meeting would feature seminar presentations from representatives of Chrysler and Ford regarding new car technology. These were to be followed by a half-day seminar on repair techniques at the General Motors Service Center in Warren, MI. Loftus noted that the meeting was being held in Michigan to show support for the big three automakers who had “…been a mainstay of our business for many years.” But the convention never materialized. Loftus felt that engaging in a smaller,

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

regional gathering was more effective. In an article appearing in a trade magazine in the summer of 1983, Loftus wrote about the importance of auto body associations. He said in part, “Without some organizations’ contact, shop owners miss threequarters of what goes on in the industry. In the last five years, we’ve seen more changes than we’ve seen in the last 50. By 1985, all we know now will be obsolete.” Then as now, SCRS did a lot of training and consulting. Of her husband Bill, Rochelle Wickland noted, “Often times, Bill would be on the phone with shops until all hours of the night advising them and consulting with them on what to do about this and that. He was dedicated – as we all were.” People from other collision repair associations were singing the

same song. Dick Schoonover, chairman of the body shop council of ASC created a cover letter and a brochure to send to any shop who inquired about ASC services. Part of the brochure says, “Only ten percent of the collision repair business belong to a trade association, think how strong our industry would be if the majority of shops would belong to an association…” In March 1984, the SCRS held their national convention with the theme “Changing Times and Changing Attitudes.” Among the different events were: • A panel discussion about unibody sectioning featuring Don Cameron, Ben Parr, Rex Womble, Harry Melia and Dave Baltz. • A panel discussion about the collision industry press featuring several trade magazine editors.

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SCRS announced its second annual national convention to be held in San Diego on May 30, 31 and June 1, 1985. In 1986, SCRS made available a brochure titled “Insured Motorists Rights.” Also, in 1986, SCRS reported it completed 60 seminars during 1985 attended by about 2,400 industry personnel. In the spring of 1986, a trade magazine article announced the upcoming 3rd Annual SCRS convention to be held in Kansas City, MO, on June 6-8, 1986. The article notes, “On Friday, Chuck Sulkala, a 3M Auto Repair Management Systems instructor and owner of Acme Body and Paint, and Van Takemoto, trade magazine contributor and owner of Island Fender shop will chair a ‘Show and Tell’ session.” By the fall of 1986, the New Hampshire Collision Repair Association, the California Autobody Association and the Rocky Mountain Collision Repair Association had recently affiliated with the SCRS. SCRS Executive Director John Loftus said they were now associated with 14 state auto body associations

and a membership of about 3,000. Industry veteran and SCRS chairman Brett Bailey recalls, “My dad Dan, and uncle, Bill were deeply involved in the SCRS startup. It was about the time I came into the business, so I have never known the industry without SCRS. The ironic thing is, over 30 years later, we still face some of the same issues: parts identification, how to get properly compensated for our work, and keeping up with technology. Many of the initiatives taken by SCRS over the years has helped, but it’s tough to get the message to everyone.” SCRS has made some tremendous strides since those early days. Current Executive Director Aaron Schulenburg elaborates, “All those early foundations and accomplishments really paved the way for some of our modern success stories; building internationally recognized free resources like the Database Enhancement Gateway (DEG), forming and publishing a highly respected news source like Repairer Driven News, and pulling the industry together under one roof at the SEMA

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

Show with our Repairer Driven Education series and associated events. I think for everyone sitting around that board table today, we really appreciate that it wasn’t just the establishment of a professional society, but rather the establishment of a culture within this industry that revered those willing to roll up their sleeves for others, in an effort to bring the industry together and leave it better than when we entered it.” Schulenburg continues, “The objectives and projects have grown in scope, but who we are focused on has never wavered. We are here for the collision repairer who seeks information and who needs a voice in rooms where they wouldn’t otherwise have one. SCRS has such a rich history of grass roots volunteer activism and support for the small businesses it was formed to represent. It’s really such an honor for everyone involved in carrying that torch forward today. The roots of SCRS are so strong, and the current energy is high, but none of it compares to what comes next. Nearly 40 years in, and there is so much more to come.”

ASE Certification Registration Now Open

ASE winter registration is now open through March 31. Those registering will have 90 days to schedule an appointment to take the selected ASE tests. ASE tests are conducted days, nights and weekends at nearly 500 secured, proctored test centers. Each test costs $45, except L1, L2 and L3 tests which are $90 each. For recertification, a one-time $36 registration fee is paid during the registration period, and tests are $45 each, except L1R and L2R tests which are $90 each. “From entry-level certification to master status, ASE offers a broad range of test series covering automotive, collision, medium/heavy duty, school bus, transit bus and truck equipment repair,” said Tim Zilke, president & CEO of the National Institute for Automotive Service Excellence (ASE). “The prestigious ASE blue seal patch identifies service technicians as knowledgeable, proficient and committed to excellence.”

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Automotive Technology Department Head Stresses Life Skills First by Ed Attanasio

Collision repair facilities today demand that technicians are well-trained and know how to repair sophisticated automobiles using modern techniques. Dayne Hosier, assistant professor at Vincennes University in Vincennes, IN, aims to do just that,

Student Derek White (left) and Dayne Hosier, assistant auto tech professor at Vincennes University, working at the basics. Credit: Ed Attanasio

but maybe even more importantly, he also strives to instill foundational life skills in his students as they progress through their technical training. He stresses soft skills like communication, punctuality, accountability, thoroughness, and an eye for detail in

every class he teaches. As a 2011 Vincennes University collision repair graduate himself, Hosier prides himself in providing education and instruction to the next generation of auto body technicians. He knows that imparting the basics is essential, but it’s only the beginning. “As an educator, I feel that I have an obligation to make my students as employable as possible,” he said. “We can show students how to apply fillers, paint, weld sheet metal, estimate cost, and blueprint vehicle repair, but can we also condition our students’ attitudes? How about their vision of a project when it’s in pieces or maybe their perseverance when struggling to resolve a problem that has a complicated solution?” Being a collision repair professor offers up many challenges, Hosier said. “Students can be distracted by all the communication opportunities offered by the cell phones they carry. Although the phones can be a distraction at times, they can also be a handy tool in the collision repair industry. They are great for

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documenting damage via pictures and linking the students to service information needed. I also teach students how they need to understand flat rate hours and what it means to be organized and efficient in order to turn more hours. This is very important later in the students’ careers when they are supporting their families and not just themselves.” Hosier is always looking down the road and works continuously to set up his students for long and rewarding careers. “I want my graduates to enjoy what they do, make a comfortable living, and enjoy time with their families. Other challenges can be direction and motivation. Not every student wants to be a do-it-all technician. Some students are dead set on being only a painter; some are interested in management, and others gravitate toward estimating. I can’t decide for them what their career path will be, but I can provide the instruction and open pathways to help students make an informed decision about their opportunities. It’s a great time to enter the col-

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Hosier, at age 19, studying collision repair at Vincennes University. Credit: Ed Attanasio

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graduate, who completed Vincennes University (VU) dual credit through the career center and entered its program as a second-year student. His willingness to learn and persevere earned him the Indiana Vocational and Technical Education Award for Excellence, an internship at Gerber Collision in Evansville, IN, and graduated VU with his Associate Degree while maintaining a 4.0 GPA. Three other students, Zac Lewis, Landon Vannatta, and Jose Enriquez continued their education in the BMW STEP Body and Paint program, which only accepts 20 students per year nationwide. Lewis and Vannatta also went into a secondyear leadership role for BMW. These students are some of the top performers out of Hosier’s program, but others find success in many other aspects of the collision repair industry or other careers, he said. “I would say 40%-50% of my students like these gentlemen are allin and passionate about making a career out of their training with me. They will get hired at shops, and many of them will have fantastic careers. 50% of them are interested,

but not 100% dedicated to making a career out of it, and they may or may not enter the collision repair industry directly. A small percentage of my students find that the collision repair industry is not what they had envisioned and decided to pursue other career paths, and that is okay.”

Hosier’s classes focus on employability and stress life skills at Vincennes. Credit: Ed Attanasio

In every class he teaches, Hosier emphasizes the bigger picture and the responsibility that’s associated with collision repair. “Hands-on training that is put into practice will make students money,” he said. “Facebook, Twitter, Snapchat, and texting are all distractions in our industry. Those are the types of distrac-

tions that can lead to poor repair quality, employee turnover, and substandard customer service. We teach our students to be responsible and technically proficient and what it means to be accountable for their repairs. Lives are on the line in many cases when vehicles are put back into service. Just because a technician thinks a repair is good enough doesn’t mean it meets the manufacturer’s specifications.” Hosier wants the next generation of collision repair technicians to know that the things he is teaching them today may not be applicable in five-ten years, he said. “The collision repair industry is changing nearly every day, and graduates must be willing to adapt and embrace change to maintain their earning potential. This industry can be very rewarding and profitable for those that have the drive to succeed, manage time effectively, are well organized, and have the willingness to put hands-on skills and broad-based technical knowledge together. Technicians that are compassionate about the needs of the customer and take pride in what they do will always be in great demand.”

CARSTAR Celebrates Banner Year

CARSTAR owners experienced an average of 20 percent sales growth across North America, which translates into over $1 billion in profitability. “Consistently putting customer experience and repair quality first, while giving back to the communities we serve are the founding values from 1989, that got us to this position we are in today,” says Dean Fisher, president, CARSTAR. The brand celebrated its 30th anniversary by doing something unique each month to thank its customers, franchise family and colleagues for their continued support throughout its history. “We are grateful for our customers and franchise family, so it was such a joy to take a moment each month to celebrate our valued relationships,” continues Fisher. “We are excited to close out the year on such a high note and motivated to raise the bar for excellence even higher 2020.”

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

CCG Enjoys Success in 2019, Plans Further Growth in 2020 and Beyond by Chasidy Rae Sisk

The Certified Collision Group (CCG) experienced a substantial amount of growth and success in 2019, adding 164 affiliate shops and five new vendor partners in addition to increasing its internal team significantly. On Dec. 17, CCG hosted a teleconference to review the year’s successes and discuss plans to sustain and enhance their growth in 2020 and beyond.

The teleconference featured CCG’s CEO Tom Matlack and COO Marty Evans, as well as Vice President of Affiliate Services Bob Cornelius, Vice President of Vendor Procurement Ernie Laky, Vice President of Insurance Services Chris Sestito, and Vice President of Marketing Jeff Ingalls who served as moderator for the discussion. Prior to the call, Ingalls had informed attendees via email that “CCG more than doubled its internal team in 2019, including bringing on a new CEO as well as four VPs across both insurance services and marketing.” “In the last month, four CCG affiliates have earned national awards/ recognition,” Ingalls’ email continued. “Dalton Collision was honored at SEMA with the I-CAR Russ Verona Memorial Award for Gold Class Shop of the Year, and when the annual Verifacts Automotive ACE and March Taylor Awards were handed out, CCG affiliates took three of six awards. Eurotech Refinishing and Collision in Bellflower, CA, received the 2018-2019 ACE Award for Outstanding Shop of the Year, Outstanding Craftsmanship as an Advanced Materials Technician Award went to Chris Sandoval of Car Crafters Auto Body Shop, and Outstanding Craftsmanship as a Paint & Refinish Technician was awarded to Dave Hoehler from Mahnke Auto Body. We also just announced our inaugural CCG National Conference for September, 2020.” Ingalls, who joined CCG in Au56

gust 2019, kicked things off by welcoming attendees: “This is an exciting time for CCG. Our growth and news were both big in 2019. CCG has a lot of great reasons to share our story within the industry.” Ingalls then introduced COO Evans who has been with CCG since 2017. Evans said, “Because CCG is owned and operated by collision repair shop owners, we see the market through the eyes of repairers. In 2014, our founders saw a need for industry shops to stay relevant and thrive due to the threat of consolidation in many markets, so they began aligning a network of shops, offering a low-cost option that brings value that is otherwise unattainable by independent repairers. We are largely driven by two key components: insurance relations and a robust procurement program that’s become a very viable option for independents to get to scale without having own multiple locations.” When asked how CCG’s business model differs from that of consolidators, Evans explained, “Shops that participate in our program are independently owned and operated. They don’t brand as CCG because they maintain their own identity and complete control of their operations. The shops are brought together by performance, and CCG gets involved in the performance management side so we can jump in to help with issues that arise. Our network is comprised of the top 10 to 15% of independents in the business, including some dealerships.” Ingalls next introduced Sestito, vice president of Insurance Services who joined CCG in early 2019. Sestito stated, “CCG is strongly positioned in this industry. From our leadership to our roster of affiliates, we set ourselves apart from the competition. In Insurance Services, CCG leaders are taking their experience and working with affiliates so we can live up to the commitments we make when partnering with insurance companies and becoming their repairer of choice. We want to grow mutually and provide the best customer experience and the best repair in the industry. We work with insurers to find out what they need and where they have a need, and then we

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

demonstrate that we have affiliates to live up to those commitments. CCG partners the right affiliates with the right insurers to return our mutual customers back to their normal lives.” Expressing pride in CCG’s vendor partners, Ingalls introduced Laky, vice president of Vendor Procurement since 2016, who explained how CCG is able to leverage vendor partner relationships to bring value to af-

basis and try to meet their needs and provide extra value by partnering with those vendors. We’re always looking for additional vendors and ways to add value,” Laky stated. Cornelius, vice president of Affiliate Services since 2016, described his role of vetting affiliates next. “Prospects are shops that are referred to us, and we only take prospects by referrals, which come from our affil-

“We added over 150 affiliates in 2019, and we’re working to maintain that growth” — Marty Evans filiate shops. “When an affiliate can’t get a service issue resolved locally, we can escalate the concern to the vendor’s corporate office for resolution. This is typically something an independent repairer can’t do on their own.” CCG partners with well-known industry providers, such as AkzoNobel, PPG and 3M, to provide valueadded benefits on a variety of products and services. “We look at the types of products our affiliates use on a regular

iates as well as our vendor and insurer partners, because they know what we’re looking for and only send the top ten to 15% to us. If the prospect successfully passes our vetting process, they become an affiliate. This is what we call a win-win-win; it’s a win for CCG, a win for our vendors and insurers, and a win for the new affiliate because we help them grow their business,” he explained. After CCG receives a prospect’s application, the business develop-

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ment group explains the process to the prospect, and once a non-disclosure agreement is signed, CCG vets the prospect by examining the shop’s KPIs, CSIs, I-CAR status, current DRPs, community involvement, business practices, certification status, equipment and more to acquire a “pretty good idea of who that prospect is so we can make a recommendation about whether to offer them a contract,” Cornelius shared. “If they’re not a fit, we share information on where they need to improve and ask them to contact us in the future if they’re still interested,” he continued. “If they are a fit, we move forward with making them an affiliate. Once the contracting process is complete, we have an onboarding call to set up their accounts and profile. Then, my team becomes the single point of contact going forward to make it easy for them to settle in while still having consistent discussion going back and forth.” Again, referencing CCG’s significant internal growth in 2019, Ingalls introduced Matlack who came out of retirement in July 2019 to accept the position of CEO at CCG.

Matlack noted, “This is our coming out party. We’re doing something pretty cool, and we’ve been doing it quietly for a while, but now we want to put it out there and explain how it’s unique. We have a different business model which has particular power. In our network, we have affiliates, vendor partners, insurance partners and ourselves, and by participating in this network, all four parties are better off. That fact is visible in the rapid growth of this business.” Since it was founded, CCG grew relatively slowly at first but has exploded over the past couple years, a fact that Matlack believes “speaks to the absolute desire of the top independent shops to remain independents but compete with consolidators. They see a threat in the marketplace and feel the need to do something. We get them access to discounts and help them navigate the top end of KPIs, but they retain ownership of their business.” “CCG is focused on investing in people and employing technology. We have the highest quality network out there based on the number of certifications and the actual performance

of our affiliates,” Matlack continued. “CCG’s shops are not like our competitors’ shops, so that affords us leverage when negotiating with our vendor and insurer partners. Our goal and track record show we have the highest performing group, so the insurer is happy, the customer is happy, and we’re happy to bring more volume to our affiliates. CCG is growing rapidly, and I foresee that continuing into the future.” At the time of the teleconference, CCG boasted 419 affiliates, but Cornelius explained, “There’s a number in the vetting process, and our number of affiliates fluctuates daily. We started 2019 with 273 affiliates and experienced 72% growth over the course of the year.” Evans added, “We added over 150 affiliates in 2019, and we’re working to maintain that growth. We’re increasing our infrastructure to support the growth, and we’re focusing on investing in the right people and technology to grow our affiliates’ businesses in 2020 and beyond.” For more information on the Certified Collision Group, visit certifiedcg.com.

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Rosen Law Files Lawsuit Against Towing Company

A complaint was filed in the United States District Court for the Eastern District of New York against a towing company which the complaint claims has overcharged consumers who required towing services from a towing company that is the exclusive towing company authorized by the New York City Police Department to tow vehicles on seven highways. According to the Complaint, instead of charging New York’s consumers and businesses $125 to have their cars towed up to 10 miles off of the seven New York highways, Runway Towing Corp was charging up to $400 for the tow that they are only permitted to charge $125 for. It is alleged in the complaint that the New York City Police Department and the New York City Department of Consumer Affairs knew that Runway Towing Corp. was overcharging consumers and businesses, but Runway Towing Corp. was permitted to continue their scheme to overcharge. Obtained via PR Newswire.

Shop Secrets and Strategies with Stacey Phillips

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Industry “Disrupter” Launches Collision Industry Book & Patent-Pending Test-Drive Technology Many in the collision repair industry and implemented leading-edge techare familiar with Frank Terlep, an nology for the automotive, collision experienced executive, entrepreneur, repair and claims industries. Autobody author and self-proclaimed “dis- News recently sat down with Terlep to rupter” of the automotive industry. In find out what prompted him to write December 2019, Terlep launched his his book and learn more about the new book, “Auto Industry Disruption, patent-pending test-drive technology Who and What is Being Disrupted he and his team are launching. and What to Do About It!” How did you get in“I started disrupting volved in the collithe auto aftermarket in the sion repair industry? mid-1980s when I raised $100,000 from an angel inBefore attending univestor to develop a software versity in the late application for the automo1970s, I was in the United tive aftermarket,” said TerStates Army. A friend of lep. “It was one of the first mine was attending Southsoftware applications of its Frank Terlep launched his new ern Illinois University (SIU) kind that helped automotive book in 2019: and often sent me pictures aftermarket companies man“Auto Industry from the school. I always age their businesses using Disruption, Who liked cars and SIU was one of computer software.” and What is Being Since then, Terlep has Disrupted and What the only universities at that to Do About It!” time offering a four-year dedesigned, developed, sold

Q: A:

gree in automotive technology, so I enrolled. Although I originally planned to be a civil engineer, I earned my degree in automotive management and technology in 1980. After finishing school, I worked as a service advisor at a Chevy dealership. Throughout my 40-year career, I’ve spent time as an auto mechanic, service manager, shop owner, salesperson, software designer, chief technology officer, senior executive, entrepreneur, author, educator, industry volunteer and disrupter. When the Apple IIe came out in 1983, I got hooked on computers and began selling automotive diagnostic equipment to repair vehicles. I launched a company and built my first software after raising money from an angel investor. I eventually sold that business, but the experience started my long history as an entre-

preneur. From 1999 – 2001, I helped raise tens of millions of dollars from venture capitalists on Sand Hill Road in Silicon Valley, CA, to design and develop one of the automotive industry’s first online parts procurement platforms for the collision industry. For the next 16 years, I built my second and third companies, Summit Software Solutions and Summit eMarketing Sherpas, developing software to help the automotive businesses market, manage, and operate their businesses. At the end of 2016, I sold my software companies and joined asTech as their chief technology officer to help build their online and mobile app platform. I recently left asTech after finishing that project to write my book and start a new company—Auto Techcelerators, LLC.

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What prompted you to write “Auto Industry Disruption … Who and What is Being Disrupted and What to Do About It!”?

I wrote my first book for the collision industry in 2007. It was called “The Digi-Lean Collision Repair System, Combining Lean Thinking, Processes, and Digital Tools to ‘Find’ $10,000 or More per Month in Your Collision Repair Business.” The concept was how to use digital technology to implement lean processes in your business. I’ve always been intrigued by software and computers and how to dramatically improve business performance with the right processes. During the two-and-a-half years I worked at asTech, I was dealing with a lot of vehicle technology. I started to do a ton of research on what was coming down the pike and realized that the whole industry is going to change … every aspect of it. I looked into what companies and car manufacturers are doing in response. That’s what prompted me to write the book because I was so interested in the changes expected to happen. Technology is going to be rampant across all industries and everyone is going to be affected, not just the collision repair industry. The book is written for anybody in the automotive industry, including CEOs, dealer owners, shop owners, shop businesses, and those in manufacturing.

Without giving away too much, what is the book’s main takeaway?

The message I want readers to walk away with is if you are in the business, whether you are an employee, manager or owner, you are going to experience disruption of some type. My book is the CliffsNotes version of some of the things that businesses should consider addressing to handle the disruption that is coming their way.

Can you tell us about the new company you started—Autotechcelerators?

I’ve worked with a lot of shops over my career, especially during the last few years. One of the things I kept hearing over and over

again is that cars are not only becoming harder to repair, but they require calibrations. I also kept hearing that taking a car out for a test-drive is not the same as it used to be. Technicians and shop owners would tell me, “Frank, you can’t just take the car out and drive it around the block and make sure the car goes straight and there is no noise anymore.” After I left asTech, I filed a patent on vehicle repair test-drive processes and technologies. During the upcoming Collision Industry Conference (CIC) in Palm Springs,

Frank Terlep, executive, entrepreneur, author and self-proclaimed “disrupter” of the automotive industry

CA, my team and I will be launching a solution for performing, managing and documenting test-drives. The patent-pending product and service will change the way test-drives, road tests and dynamic calibrations are performed, managed and documented forever. The Test Drive CoPilot event will be held on Wednesday, Jan. 15, at 5 p.m. at the Palm Springs Hilton in California. To R.S.V.P for the event, visit https://www.testdrive copilot.com/launch-party-rsvp.

Q: A:

What can attendees expect to see at the event?

We’re going to introduce new technologies and processes to those in attendance that will allow businesses to fully document every test-drive, road test or dynamic calibration as well as generate detailed reimbursement documentation. They will also provide employees with the detailed test-drive recommendations, track and manage costs, implement quality controls, and create documentation to reduce an organization’s liability. If you think about it, the only place left today that isn’t being measured, managed or documented is the test-drive. It’s the only time a vehicle typically leaves a shop during or after a repair. The idea was to create something simple and inexpensive for a shop to quality control

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

test-drives, ensure they are being done according to OEM recommendations and get reimbursed for their work processes.

What are some of the changes you predict will occur in the automotive industry?

One of the major things I see coming is that I don’t think a typical independent collision repairer is going to be able to be a generalist anymore. The growing complexity of the vehicles is going to force them to become part of something bigger and become specialized. The vehicles are too complicated to repair. I also think the rise of remote technician services is going to be huge. I say that because there is a shortage of people joining the industry, as most of us already know. With that being the case, cars are becoming more complicated. I believe that you’re going to see technicians from other countries helping us diagnosis and repair cars remotely over the Internet. That’s going to be a big opportunity and the industry itself is going to shrink. We’ve been saying this for years.

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You can look at any service business industry, for example, in terms of a pyramid organizational structure. At the top of the pyramid, you have the best and the biggest companies, which is a small percentage. At the bottom, you have a larger number, but they are usually not the best and revenue is small. A typical service business is in the middle. What happens is a business either moves up or down and eventually, there is no middle and the pyramid becomes an hourglass shape. I think that’s happening in our industry as well. I cover these ideas in more depth in the book. I am scheduled to talk about five major disruptions the collision industry will face in 2020 and beyond during a Dave Luehr’s Elite Body Shop Academy webinar on Thursday, Jan. 23 at 1 p.m. CST. To register for the free webinar, visit https://events.genndi.com/channel /Jan2020EWS. “Auto Industry Disruption, Who and What is Being Disrupted and What to Do About It” is published by BookBaby and is available from the BookBaby store as well as Amazon.com in paperback and ebook versions.

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Top Automotive Industry Stories of the Decade by Tara Taffera, glassBYTEs.com

As we head into 2020, glassBYTEs .com took a look at the most popular stories of the 2010s. Five of them had to do with shattering or faulty sunroofs—a big topic of the past decade. The top ten may not be what you expected but they were the most read based on page views. 1. Honda Requires OE Replacement Windshields for Some Models With Driver Assist, Safety Systems It may seem as if ADAS technology has ramped up in the past few years, but back in 2014, Honda was already requiring original equipment replacement windshields for certain Honda and Acura models equipped with ADAS features. “While non-OE parts may look the same and fit in the same physical space on the vehicle, their use may present unforeseen circumstances causing the driver assist or other safety systems to operate abnormally or not at all,” according a statement by Honda. 2. NHTSA Receives More Complaints of Shattering F-150 Back Lites Reports of shattering sunroofs were also extremely prevalent back in 2014 when more than 30 owners of the 2010 Ford F-150 model complained to the National Highway Traffic Safety Administration (NHTSA) that an alleged glitch in their rear defrosters had caused their back lites to shatter or spiderweb in cracks. 3. Can Repairs Be Successful in Cold Weather? With the cold weather already hitting many areas of the country, perhaps you will want to refer back to this article from 2014 which talks about tips for performing repairs and replacements in cold weather. 4. Dwyer-Owens Steps Down as CEO of the Dwyer Group In 2014 Dina Dwyer-Owens left her role as CEO of The Dwyer Group, parent company to Glass Doctor, a position she held for 15 years. She then moved into the role of executive chairwoman of The Dwyer Group. 5. Class Action Lawsuit Filed Against Chrysler Over Alleged Sunroof Defect 62

Before 2014 ended, six Chrysler owners filed a nationwide class action lawsuit against the automaker in U.S. District Court of New Jersey alleging that a defect in the sunroofs caused them to leak.

daycare, I heard a large pop and then smelled burning rubber. I looked and saw the right rear glass shattered and it was shortened out by the heating element,” reported one owner to NHSTA on Dec. 15, 2013.

6. Is This the Beginning of the End of the Giant Glass Brand? In November of 2015, three years after purchasing North Andover, MA-based Giant Glass Co., Safelite AutoGlass moved to co-brand its name with the company. Prior to this, Giant Glass’ five locations continued to operate under the existing name, and Safelite rebranded its Falmouth, MA, store into the Boston brand. “We have leveraged the local brand position held by Giant Glass for almost three years,” said Tom Feeney, Safelite Group president and CEO. “While all the people became Safelite associates operating with Safelite systems and tools, Giant and Safelite operations remained separate. It has now become clear that bringing all our resources in the market together is best way to serve our customers in the future.”

9. BMW Asks Court to Dismiss Lawsuit Over Alleged Sunroof Defect Just three months prior to publishing our number eight story, BMW asked the U.S. Northern California District Court to dismiss a class action lawsuit in which the plaintiffs, two BMW owners, claimed that drainage tubes installed to pull water away from vehicles’ sunroofs did not properly work, leading to water damage. “Recognizing that there is no warranty coverage for water leaks in their used BMW vehicles, plaintiffs (Monita) Sharma and (Eric) Anderson seek to impose on BMW NA an obligation to fix their cars for free, ad infinitum, by claiming that they— and a large group of owners and lessees of BMW vehicles sold in the United States over more than ten years—were ‘defrauded’ by BMW

7. Cadillac Hit With Lawsuit Regarding Leaking Sunroofs In 2017, Cadillac Automobile Company, a division of General Motors (GM), was hit with a lawsuit alleging the company manufactured and/or designed 2010-2013 Cadillac SRX models with leaking sunroofs and had denied warranty coverage for certain year models. Plaintiff Kelley Gaines, a resident of California, claimed the vehicles were manufactured or designed with defective sunroof seals or drains, allowing water to enter the passenger side of the vehicle. 8. Several Ford F-150 Owners Report Shattering Backlites to NHTSA A story in 2013 detailed more than 20 F-150 Ford owners of the 2010 model year who complained to the National Highway Traffic Safety Administration (NHTSA) that an alleged glitch in their rear defrosters had caused their backlites to shatter or spiderweb in cracks. “On a 40-degree morning, I turned the rear defroster on to clear the windows and mirrors. As I was driving my son to

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

NA through an alleged design defect in their sunroofs that may result in water leaks,” BMW’s attorneys claimed in court documents. 10. GM Extends Headlamp Module Warranty You never know what will appear in the top stories, and this number ten of the decade may be a surprise. It was the story following a National Highway Traffic Safety Administration (NHTSA) investigation, stating that General Motors (GM) had extended its headlight warranty to cover problems related to its headlamp driver modules recall. The initial recall was for defective low-beam headlights and daytime running lights on certain GM makes and models that were prone to failure. After receiving 128 consumer complaints following the recall, NHTSA opened an investigation on April 30, 2017, to see if the recall fixed the affected vehicles. We thank glassBYTEs.com for reprint permission.

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GM Customers Rage as Automaker Struggles With Strike-Related Parts Delay by Jamie L. LaReau, Detroit Free Press

Buick owner Ben Baby is on his third and last Buick. Baby, 41, has been waiting since Oct. 4. for General Motors (GM) to supply a Texas body shop with the parts needed to repair his 2018 Buick Enclave. The delay, caused by the UAW’s 40-day strike that started Sept. 16, has made Baby increasingly frustrated. More than 20 parts are backordered, he said, and neither GM nor the body shop manager can estimate when Baby will be back in his car, he said. “I’m done,” said Baby, who lives in McKinney, Texas, about 30 miles north of Dallas. “All of this happened because of the GM strike. GM should have taken care of these things and been prepared, offered rental cars or something … it is their responsibility.” A GM spokesman said preparing for a parts shortage is difficult, given that the automaker did not expect a strike. GM is sorry, the spokesman said, for the inconvenience that strike-related parts delays have caused some customers. “We are doing our best to recover as quickly as possible,” spokesman Jim Cain said in an email to the Free Press. GM is running its parts plants in “emergency status” with

maximum overtime, among other things, to return the parts operations to normal, said Cain. But it’s a massive, complicated task to get caught up and fulfill back orders for specific parts.

“GM should make sure parts are available if something happens. They didn’t know a strike would happen, but they should offer some customer care, provide a loaner car or something.”

Exhaustive Waiting On Oct. 4, Baby was driving on the Sam Rayburn Tollway in Dallas when a driver three cars ahead of him suddenly stopped, triggering a four-car pileup. Baby was the last car in the chain reaction. He was uninjured, but his Enclave had extensive damage to the front. His insurance company said it was repairable and refused to total the car, he said. The body shop manager told him it would be a long wait on repair parts because some 48,000 UAW workers at all of GM’s U.S. plants had been on strike since Sept. 16. For more than two months now, Baby and his wife have shared one vehicle. She drove it to her job, he worked from home. Finally, his insurer agreed to total the Enclave so Baby can purchase another vehicle rather than continue to wait for GM parts. Baby has not decided what new vehicle he will buy, but it will not be a GM brand, he said. “I’m totally upset. I paid almost $55,000 for this Enclave as a new car,” said Baby.

Customer Service Maryland resident Benny Tucker, 41, has been without his 2016 Cadillac Escalade since Oct. 17, the day he was involved in an accident in Westminster, MD, that caused $18,000 in damage to his front end. It also set off the air bags, destroying the dashboard. He had owned the Escalade for four weeks at that time. The repair parts for the exterior damage did not arrive from GM until Dec. 5, said Tucker. But GM told his dealer it had to use an outside vendor to make the limitedproduction dashboard, Tucker said. “That dealer said it’ll be at least four months,” said Tucker. “They didn’t have a production date and then it takes three to four weeks to ship it, then it has to be installed.” He cannot drive the SUV because the dashboard will hold the air bags, so it’s a safety feature, said Tucker. “What’s upsetting to me is my $855 a month car payment — all my payments have been made on my Escalade while it’s been

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GM’s Emergency Status It’s been nearly eight weeks since the UAW’s 40-day nationwide strike ended. Most parts remain affected in some way, including collision and powertrain, because GM was not producing them during the strike, Cain said. “For 40 days, we could not receive inbound inventory and we were very limited in our ability to ship from our warehouses and distribution centers, which, under normal circumstances, stock close to 400,000 unique parts numbers and ship about 325,000 order lines each day,” said Cain. GM said it has made progress in its parts distribution since the strike ended on Oct. 26.“We have reduced the backlog of customer orders by nearly half and we continue to run our facilities in emergency status with maximum overtime to speed the recovery,” Cain said. “We have also been providing dealers with regular updates on our recovery progress.” We thank the Detroit Free Press for reprint permission.

Gerber Collision & Glass Acquires Nine CA Locations

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in the body shop,” said Tucker. “I paid $50,000 for this, and they can’t get a part for it. I can’t even get somebody on the phone to give me a date. That’s all I want. I’m in limbo. It’s terrible customer service on their part.”

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The Boyd Group Inc. announced that it has entered the state of California via two acquisitions representing nine locations in the suburban Los Angeles area. Six of the shops are in Corona, Lake Elsinore, Menifee, Moreno Valley, Murrieta and Palm Desert and previously operated as International Auto Crafters. The locations in Newhall, Santa Clarita and Valencia operated as Centre Pointe Collision. All of these shops are located east of Los Angeles in Riverside County, the fourth-most populous county in California and 11th in the U.S. “We are excited to enter a new state and expand our footprint on the West Coast, reinforcing our brand and providing the high-quality service customers in this region have come to expect,” said Kevin Burnett, COO of Gerber Collision & Glass. “With these acquisitions and our new locations, we also look forward to better serving our insurance partners with their West Coast needs.”

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

UNIBODY AutoTech Collision Center Joins CIECA

UNIBODY AutoTech Collision Center joined CIECA as a corporate member. Established in 2008 by Michael Chong, the company offers auto repair and maintenance in Honolulu, Hawaii. Chong said that he is continually looking to expand his knowledge of the industry so he can bring information back to Hawaii and his team at UNIBODY AutoTech Collision Center. “Today’s vehicles are like smartphones on wheels,” said Chong. “CIECA seems to be ahead of the game when it comes to technology and I look forward to gaining knowledge and meeting great people at CIECA.” Chong said that with technology and safety systems growing every day, he and his employees recognize the importance of refocusing on how vehicles are repaired today while consumers are demanding instant satisfaction. “CIECA standards are important,” said Chong. “As technology continues to evolve and collision repair businesses adapt, standards help us better communicate and evolve in our changing industry.”

Chevy Shake Class Action Says Driveshaft is the Problem by David A. Wood, CarComplaints.com

A so-called “Chevy Shake” classaction lawsuit alleges GM vehicles suffer severe vibrations because the automaker uses aluminum driveshafts. The GM class action includes all consumers in the U.S., except Florida, who purchased or leased any of these GM vehicles. • 2015-2020 Cadillac Escalade • 2014-2019 Chevrolet Silverado • 2015-2020 Chevrolet Suburban • 2015-2020 Chevrolet Tahoe • 2014-2019 GMC Sierra • 2015-2020 GMC Yukon/Yukon XL Florida consumers are not included because a separate Chevy Shake lawsuit (Weiss v. General Motors) was denied nationwide class action certification, but the judge said the lawsuit could proceed for GM customers in Florida. According to the two plaintiffs who filed the lawsuit, the aluminum driveshafts cause severe vibrations that cause drivers to lose control of the vehicles. The plaintiffs claim the problem occurs while driving high-

Rivian Announces $1.3 Billion Funding Round Backed by Amazon and Ford by Nursah Ergü, Interesting Engineering

Electric vehicles are in great demand now and Tesla is leading the way. But it seems like Tesla will have a big competitor in the electric vehicle game; Rivian, which is an electric truckmaker. The company was founded in 2009. And the start-up has closed an investment round of $1.3 billion. The investment round included participation from Amazon, Ford Motor Credit: Rivian Company, and funds managed by Blackrock. Rivian Founder and CEO RJ Scaringe said, “This investment demonstrates confidence in our team, products, technology, and strategy – we are extremely excited to have the support from such strong shareholders.” This new investment is the fourth round of the company in 2019. In February 2019, a $700 million funding round led by Amazon. In April 2019, Ford Motor Company invested $500 million in 64

Rivian and the companies would collaborate on a vehicle project. which would utilize Rivian’s skateboard platform. In September 2019, Cox Automotive announced that it invested $350 million in Rivian, and the companies have plans to collaborate on logistics and service. Apart from these investments, in September 2019, Rivian announced that it was collaborating with Amazon to develop an electric delivery van by using Rivian’s platform technology. Rivian’s launch products R1T and R1S aren’t on sale yet, just like any other products of Rivian. However; the cars will enter the market with customer deliveries expected to begin at the end of 2020. By then, we’ll follow the brand and its activities closely, but it seems like Tesla has a strong component coming to town, which is supported by Amazon and Ford. Let the race begin. We thank Interesting Engineering for reprint permission.

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

way speeds, and over time the driveshaft can deteriorate and finally drop to the ground. GM allegedly sells and leases the vehicles while knowing the aluminum driveshafts will cause violent and dangerous vibrations that can send the vehicles off the roads. Instead of warning customers about the dangers, the class action alleges General Motors conceals information about the Chevy Shake to continue selling and leasing the vehicles. The automaker also has allegedly refused to recall the vehicles to replace the driveshafts and hasn’t offered to reimburse customers who spent their money for repairs. One of the plaintiffs purchased a 2017 Chevrolet Silverado 1500 and claims the truck experienced the so-called Chevy Shake when about 25,000 was on the odometer. According to the plaintiff, the “center console aggressively shakes left to right such that if a cup were placed in the console without a lid, it would spill.” The plaintiff also says she has paid more than $1,400 in an effort to fix the truck but the vibrations and shaking continue. The dealer-

ship allegedly finally said the vibration was normal and no repairs were needed. The class action says owners have replaced the aluminum driveshafts with custom-made steel driveshafts which completely fixed the problem. The lawsuit says it’s clear GM knows about the so-called Chevy Shake because dealerships have been issued technical service bulletins (TSBs) related to the driveshafts. GM issued TSB PI1354A in 2014 and TSB PI1354C in 2015 which said, “There have been many cases of dented propeller [drive] shafts.” GM told each dealer to inspect the driveshaft and replace it if damage was discovered. However, the lawsuit alleges the aluminum driveshafts were replaced with equally defective aluminum driveshafts. The automaker also sent dealerships TSB PI1354I in 2019 entitled, “Information on Vibration Analysis and Diagnostic,” something the class action alleges is proof GM is still having problems with the driveshafts. We thank CarComplaints.com for reprint permission.

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11th Circuit Court Dismisses Suit Alleging Conspiracy to Deflate Collision Repair Changes by Jim Sams, Insurance Journal

A federal appellate court affirmed a decision to throw out a racketeering lawsuit brought by a group of 126 auto body collision repair shops against seven of the largest U.S. insurers. The 11th Circuit Court of Appeals in Atlanta agreed with the district court that the repair shops failed to state a valid claim that the insurers had conspired to commit a fraud by demanding that they accept lower rates for their work in order to participate in their repair networks. The 11th Circuit noted that the 9th Circuit had rejected a similar pleading brought by small business owners against Yelp for allegedly manipulating user reviews to “extort” advertising revenue. “The Ninth Circuit’s reasoning fits the facts here well, and we conclude that, at most, these defendants drove a hard bargain,” the 11th Circuit panel said in an opinion written by Judge William Pryor. The case is titled Crawford’s Auto Center v. State Farm Mutual Insurance Co. Allstate, Geico, Progressive, Farmers Insurance, Liberty

Mutual, and Nationwide were also named as defendants. The repair shops first filed the lawsuit alleging an insurer conspiracy in a Chicago federal district court in 2014. The case was assigned as multi-district litigation to U.S. District Judge Gregory A. Presnell in Orlando, FL. The body shops alleged that the insurers used third-party information providers — ADP Claims Services Group, CCC One and Mitchell — to establish “prevailing rates” for auto body repair work. The carriers referred policyholders to repair shops that agreed to accept the prevailing rates. The lawsuit alleges the insurers conspired to suppress the rates charged by their industry be creating deflated prevailing rates, a violation of the Racketeering Influenced and Corrupt Organizations Act. What’s more, the carriers violated antitrust laws by working together to lower their costs. In its analysis, the 11th Circuit noted that a group of auto body shops has filed a similar lawsuit that was also rejected. In Quality Auto Paining Center of Roselle v. State

Subaru Recalls 498,000 Vehicles for Takata Airbag Inflators by David A. Wood, CarComplaints.com

A Subaru Takata airbag inflator recall has been issued for nearly 498,000 of these vehicles to replace the passenger frontal airbag inflators.

• • • •

2009-2013 Subaru Forester 2003-2006 Subaru Baja 2004-2011 Subaru Impreza 2004-2014 Subaru WRX (including STI) • 2003-2014 Subaru Legacy • 2003-2014 Subaru Outback • 2006 Saab 9-2X The action is part of a recall of 10 million Takata airbag infla-

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tors in vehicles manufactured by at least 14 automakers. The vehicles had their passenger airbag inflators replaced during previous recalls. It may be the final Subaru recall to replace Takata inflators after multiple automakers were forced to replace the inflators after deaths and injuries caused by exploding inflators. Takata airbags contain metal inflators which can explode into shrapnel when the airbags deploy. The Subaru recall is expected to begin in January 2020. Subaru owners may contact Subaru at 844373-6614, and Saab owners may call 800-955-9007. Subaru’s recall numbers are TKC-20, TKB-20 and TKA-20.

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Farm, the appellate court dismissed a suit that alleged that insurance carriers were violating anti-trust laws by colluding to improperly pressure body shops to accept lower repair prices. The court said in order to pursue a claim under the RICO act, the repair shops would have to show that they there were the victim of a fraud or extortion. The fraud alleged in the complaint, however, consisted of nothing more than “vague allusions” to misrepresentations made by the insurers. There was also no allegation of extortion, which means to use force, violence or fear to obtain property. “Plaintiffs could have refused to perform the requested repairs at the rates set by defendants, but they did not,” the panel said. “They went ahead and performed those repairs. This is not extortion.” The panel also rejected plaintiffs’ arguments that the district judge erred by not entering several exhibits into evidence and by refusing them an opportunity to amend their complaint a third time. We thank Insurance Journal for reprint permission.

WIN Scholarship Program Opens Applications Women’s Industry Network (WIN) is committed to supporting females who demonstrate their desire to excel in the field of collision repair through the WIN Scholarship Program. Applications for the 2020 program will be accepted now through Jan. 31, 2020. The program for 2020 will offer the College Student Tuition and Conference Scholarship Award. This scholarship is presented to students enrolled in a post-secondary collision repair technology program. Each recipient will receive a $1,000 scholarship to continue their post-secondary education and a one-year WIN membership. “WIN understands that the cost of education, or continued education, has the potential to be a hurdle for students,” says Debbie Menz, 2020 co-chair of the Sponsorship Committee. “But with the support of our sponsors and members, WIN is able to offer scholarships to multiple female students each year to help them advance in the collision repair industry.

Tesla Becomes the Biggest U.S. Automaker in History by Loukia Papadopoulos, Interesting Engineering

Tesla just became the biggest automaker in history. Its market capitalization on Monday, Jan. 6 was valued at $81.4 billion, beating Ford’s peak market value of $80.8 billion. Beating the Competition It was already bigger than General Motors but now also surpassed Ford’s. “They caught their competition in the U.S. just dead flatfooted,” Paul Holland, a general partner at Foundation Capital, said Tuesday, Jan. 7, regarding Tesla on CNBC’s “Squawk Alley.” “I don’t think it’s quite going to be the same in China … but nonetheless, a terrific day for Tesla and well-deserved because they’ve innovated with a product that many of us love.” Tesla shares have had a very promising beginning of 2020. They increased by almost 10% in the first week of the year as the first Model 3 sedans rolled off the assembly line at the firm’s China factory. The firm also boasted a record number of deliveries in the fourth quarter. Tesla delivered an impressive number of 112,000 vehicles during the

final three months of 2019. Tesla CEO Elon Musk spent the New Year working at the Fremont, CA, factory to deliver the last few cars of the year. A Good Year This year also saw the introduction of the Cybertruck. The car received 146K orders just two days after its unveiling. The firm also delivered China’s Model 3s early on Jan. 7. “China is by far the largest market for mid-sized premium sedans. With Model 3 priced on par with gasolinepowered mid-sized sedans (even before gas savings and other benefits), we believe China could become the biggest market for Model 3,” said Tesla in its third-quarter earnings report. Although Tesla’s toppling of these two American auto giants may come as a surprise to some, it was already predicted a Bloomberg article of 2014. Entitled “Tesla Can Topple the Car-Dealer Monopoly,” the article attributed the firm’s success to Musk’s desire to “build a retail network free from the franchise-dealer monopoly.” We thank Interesting Engineering for reprint permission.

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