Autobody News March 2012 Northeast Edition by Autobody News

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AASP/New Jersey to Kick Off 35th Annual NORTHEAST Trade Show March 9 The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) will hold their 35th annual NORTHEAST™ trade show March 9, 10 and 11 at the Meadowlands Exposition Center of Secaucus, NJ. The association announced the educational seminar schedule as well as a list of booth exhibitors. The weekend will start on March 9, with a Leadership Forum held by SCRS and the AASP/NJ. The East Coast Resolution Forum welcomes representatives from national and local automotive repair associations on March 9 at 1 p.m. The forum will go

until 5 p.m. and will invite association leaders to discuss updates on their organizations’ activities as well as share industry news with their peers. The meeting provides associations from across the country with a chance to network and learn from other associations. Then at 6pm, Mark Olson of VeriFacts starts the NORTHEAST™ seminars with “Shop Differentiation: How to Make Your Shop Stand Out, followed by Future Cure’s Tom Beck presenting Drying Waterborne: What You Need to Know NOW.” Larry See NORTHEAST, Page 61

New York State Collision Tech’s Association Writes to West Virginia AG Re ARA Complaint

McGraw to stop using the term “junkyard parts” because the group feels it’s derogatory and misleading toward its members’ products. The original reference was made by McGraw in a December 2011 press release announcing legal action against Liberty Mutual Insurance. In the memo the Attorney General’s office referred to recycled/salvage parts as “junkyard parts” and implied that recycled/salvaged parts are significantly inferior to new OE parts. “We believe that this statement [implies] that salvaged, used and/or reconditioned parts are somehow unSee NYSCTA, Page 6

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Mike Orso, President of the New York State Collision Tech’s Association (NYSCTA), has written a letter to W Va’s Attorney General Darrell McGraw expressing gratitude for his efforts in “protecting consumers relative to the sale and installation of, industry referred to; used, salvage, and junkyard-supplied parts.” The letter is in response to the Automotive Recycler’s Association’s (ARA) complaint regarding McGraw’s use of the term “junkyard parts” to characterize general salvage parts. The comments and the lawsuit drew the attention of the Automotive Recyclers Association, which asked

VOL. 1 ISSUE 12 MARCH 2012

State Farm’s Testing of Parts Ordering System Among News, Discussion at CIC Meeting by John Yoswick

Speaking at the January Collision Industry Conference (CIC) in Palm Springs, State Farm’s George Avery said that PartsTrader, the electronic parts ordering system the insurer expects it will eventually require its Select Service shops to use, is currently being tested at one repair facility and soon will be at another location. He declined to identify the shops, saying that it is too early in the testing “to put those folks under the microscope and ask, ‘What do you think of the new system?’” The announcement was just one of the parts-related issues discussed at CIC. The CIC “Parts and Materials Committee” shared the results of a preliminary survey of 11 of the com-

panies offering electronic parts locating and procurement systems to the industry. Committee member Mary Lou Lubrano of Car-Part.com reported, for example, that about the same number of those companies Ron Reichen, said insurers pay Oregon Shop for use of their Owner, said systems as those carriers’ reported that said they are return rates don’t appear to match up funded by parts with those reported vendors; two of by vendors the companies said shops pay for the systems. “I would argue that shops pay for all of them, because having nine disSee CIC Report, Page 18

U.S. House Judiciary Members Introduce Auto Parts Bill, Aims to Limit Parts Patent Protection The Promoting Automotive Repair, Trade and Sales (PARTS) Act, a new bill introduced to the U.S. House of Representatives, proposes to reduce the patent period car companies have on their collision repair parts from 14 years to 2.5 years (30 months). H.R. 3889 was introduced on Feb. 2 by Darrell Issa (R-Calif.) and Zoe Lofgren (D-Calif.) to the House Judiciary Committee. A similar bill is currently being prepared in cooperation with the U.S. Senate Judiciary Committee. The bill would amend title 35 of current U.S. design patent law whereby automotive manufacturers may enforce their design patents on collision repair parts against alternative suppliers. Both members serve on the House Judiciary Committee’s Subcommittee on Intellectual Property, Competition and the Internet. Lofgren introduced auto parts patent legisla-

tion in the last Congress. The new subsection reads as follows: “It shall not be an act of infringement of such design patent to make or offer to sell within the United States, or import into the United States, any article of manufacture that is similar or the same in appearance to the component part that is claimed in such design patent if the purpose of such article of manufacture is for the repair of a motor vehicle so as to restore such vehicle to its appearance as originally manufactured; and after the expiration of a period of 30 months beginning on the first day on which any such component part is first offered to the public for sale as part of a motor vehicle in any country, it shall not be an act of infringement of such design patent to use or sell within the United States any article of manufacture that is similar or the same in apSee PARTS bill, Page 13

Presorted Standard US Postage PAID Ontario, Ca. Permit No. 1

2 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio, Garmat - Global Collision Uses Garmat USA Paint Spray Booths in All 8 Locations . . . . . . . . . . . . . . . . . . . . . . . 37 Evans - Barrett-Jackson DIY Event Draws Fans and Future Body Techs . . . . . . . . . . . 58 Franklin - Spotting a Newsworthy Opportunity . 50 I-CAR - Corrosion Protection to Structural Part Interiors . . . . . . . . . . . . . . . . . . . . . . 16 Insurance Insider - Getting a Guess-timate From the Real Experts . . . . . . . . . . . . . . . 28 Nigro - A Shop Owner’s Suggestions to Control Steering and Worse to Come . . . . 36 Schroeder - FCC Collision Continues Expansion in the Greater San Francisco Area . . . . . . . 20 Sisk - Checker Auto Body: A Small-Town Shop Offering Big-Time Repairs . . . . . . . . 27 Sisk - Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP World . . . . . . . . . . . . . . 24 Weaver - Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician . . . . . . . . . . . . . . . . . . . . . . . . 35 NATIONAL “Evangelist Jerry Bratt” Scam Revived . . . . . 48 ABRA New Executive Vice President-CFO . . . 10 Allstate will open Agencies in Dealerships, from Test Program . . . . . . . . . . . . . . . . . . . 9 ASA & Diamond Standard Product Liability on Website. . . . . . . . . . . . . . . . . . . . . . . . . 9 ASA Announces 2012 Annual Meeting Dates and Location . . . . . . . . . . . . . . . . . . . . . . 13 CA Attorney Wins $10,000 Claim v. Honda . . 48 CA Law Demands More Low Emission Vehicles. 49 CARSTAR Holds Results/Goals Teleconference . 44 Chevy Volt Sees Stalled Momentum/Optimism . 49 China Auto Parts and Service Show to be Held June 2012 . . . . . . . . . . . . . . . . . . . . 52 China Opens Vehicle Insurance Market to US Insurers . . . . . . . . . . . . . . . . . . . . . . . 45 Chinese Govt Automaker Plans Ford F-150 Clone. 45 Chrysler Recalls Police Cars . . . . . . . . . . . . . 51

Chrysler Reports First Full Year Profit Since Crisis . . . . . . . . . . . . . . . . . . . . . . . 51 Consumer Reports Says Brand Perception Narrows. . . . . . . . . . . . . . . . . . . . . . . . . . 51 CREF Sees Record $4.1 M in Industry Donations for 2011 . . . . . . . . . . . . . . . . . 60 DuPont Paint Unit Bidding . . . . . . . . . . . . . . . 51 Federal Trial of Baltimore Police Kickbacks Involves Local Body Shop, About 60 Officers and Insurance Fraud . . . . . . . . . . 60 Feds Escalate Jeep Airbag Investigation . . . . 49 Fix Auto Adds Two New Shops to Network in N. California . . . . . . . . . . . . . . . . . . . . . . 9 GM is Back on Top As the World Number One . 51 Honda Recalling 2008 and 2009 Odysseys for Liftgate Struts . . . . . . . . . . . . . . . . . . . 40 Honda’s Ridgeline Recall . . . . . . . . . . . . . . . 49 I-CAR and Assured Performance Network’s “New Road to Gold” . . . . . . . . . . . . . . . . . 10 Insurance Auto Auctions to Sell Salvaged Vehicles Directly to China, Could Impact U.S. Supply . . . . . . . . . . . . . . . . . . . . . . . 48 KBB Gets New President. . . . . . . . . . . . . . . . 51 MOPAR Celebrates 75th Anniversay, 4 New Models . . . . . . . . . . . . . . . . . . . . . 49 NABC Plans At Least One Vehicle Gift in Each State This Year. . . . . . . . . . . . . . . . . 52 NHTSA Investigating Chevy and Toyota Models for Power Windows . . . . . . . . . . . 34 NHTSA Opened Ford and GM Van Investigations in January . . . . . . . . . . . . . 50 Nissan Recalls 2012 Versa . . . . . . . . . . . . . . 51 NSF Certifies PartsChannel Under Auto Collision Parts Distributor Certification Program . . . 34 Phoenix Auctions Show Collector Cars’ Comeback . . . . . . . . . . . . . . . . . . . . . . . . 51 SAAB Dealers Still Looking at Options, Six Parties Still Contend . . . . . . . . . . . . . . 60 Santa Clara CAA Hosts Parts Program Talk with Honda, Acura and Toyota Representatives . 38 SCRS Offers Repairers Digital Member Services E-catalog . . . . . . . . . . . . . . . . . 52 Second Toyota Driver’s Door Fire Probe Launched . . . . . . . . . . . . . . . . . . . . . . . . . 49 Separate Arizona Bills: HB 2394 “Strikes Everything” on Unlawful Practices Language for Repair Shops . . . . . . . . . . . 42 Several Crash Parts Bills Introduced to State Legislatures Countrywide. . . . . . . . . 10 State Farm Pays Costs for Two Cases by Ray Gunder . . . . . . . . . . . . . . . . . . . . . . . 52 State Farm’s Testing of Parts Ordering System Among News, Discussion at CIC Meeting . . 1 Study: 96% of All Repair Shops Recycle Scrap Metal . . . . . . . . . . . . . . . . . . . . . . . 47 Subaru Recalling 2012 Outback and Legacy Models for Air Bags . . . . . . . . . . . . . . . . . 34 Supreme Court Allows Lawsuits on Lack of Safety Equipment . . . . . . . . . . . . . . . . . . . 44 The 2010 Pro-Con Argument For Patent Protection of Collision Parts . . . . . . . . . . . 53 This Year’s Chicago Auto Show Used New Media Technology . . . . . . . . . . . . . . . . . . 47 U.S. Auto Industry Bullish on ‘12, Sales up 11%. 49 U.S. DOT Releases Guidelines on Distracted Driving. . . . . . . . . . . . . . . . . . . 45 U.S. House Judiciary Members Introduce Auto Parts Bill, to Limit Parts Patent Protection . 1 Utah Bill to Weaken Inspection Requirement . 60

12 ne of 20 Ju d n a y a April, M l issues Coming in focus 3 specia

s will aga Autobody New paint technology this year. on paint and

s w il l e u s s i e Th : focus onSES • PAINT PROCESOLOGIES • PAINT TECHN RODUCTION PAINTERS • CUSTOM & P Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Amato Agency . . . . . . . . . . . . . . . . 28 Auto Exchange . . . . . . . . . . . . . . . . 40 Audi Wholesale Parts Dealers . . . . 52 BMW Audi of Turnersville . . . . . . . . 42 BMW Wholesale Parts Dealers . . . . 47 Brewer Automotive . . . . . . . . . . . . . 11 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 21 Chief Automotive. . . . . . . . . . . . . . . . 9 Classifieds. . . . . . . . . . . . . . . . . . . . 63 CSS USA, Inc.. . . . . . . . . . . . . . . . . 45 DCH Family of BMW Stores . . . . . . 29 DuPont . . . . . . . . . . . . . . . . . . . . . . . 5 Equalizer Industries . . . . . . . . . . . . . 6 Ford Wholesale Parts Dealers . . . . 53 Fred Beans Parts . . . . . . . . . . . . . . 64 Fuccillo Auto Group. . . . . . . . . . 14-15 Garmat . . . . . . . . . . . . . . . . . . . . . . 36 GM Wholesale Parts Dealers . . . . . 46 Healey Chevrolet. . . . . . . . . . . . . . . 35 Hertz Corporation . . . . . . . . . . . . . . . 4 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers . 44 Jaguar Wholesale Parts Dealers. . . 34 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 55 Koeppel VW-Mazda . . . . . . . . . . . . 20 Lazare Kia . . . . . . . . . . . . . . . . . . . . 26 Lexus Wholesale Parts Dealers . . . 57 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 7 Maxon Hyundai. . . . . . . . . . . . . . . . 25 Maxon Mazda . . . . . . . . . . . . . . . . . 17

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL AASP/New Jersey to Kick Off 35th Annual NORTHEAST Trade Show March 9 . . . . . . . 1 AASP/NJ’s NORTHEAST™ Exhibitor Boot Camp. 6 AASP-PA to Hold Quarterly Board Meeting . . 40 AASP-Pennsylvania Tech Training Coming March 24–25 . . . . . . . . . . . . . . . . . . . . . . 46 Fisker Lays Off Employees in Delaware. . . . . . 4 H&V Collision Opens Fourth Location in Saratoga, NY . . . . . . . . . . . . . . . . . . . . . . . 8 Mitchell 1 to Hold Shop Management System Training Workshop in Atlantic City, NJ . . . . . 4 N.J. Dept of Banking and Insurance Commissioner Considine Leaves Post for Private Company. . . . . . . . . . . . . . . . . . 4 New York State Collision Tech’s Association Writes to West Virginia AG Re ARA Complaint . 1 NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances . 12 NJ Siblings Indicted for Alleged Insurance Fraud . 6 NY Senate Passes SB 578 . . . . . . . . . . . . . . . 4 PA Insurance Department Makes $3.2M in Restitution . . . . . . . . . . . . . . . . . . . . . . . . . 8 PA State Police Take Coaches & Drivers OOS . 8 Pa-based Keenan Auto Body Holds Facebook Jingle Contest . . . . . . . . . . . . . . . . . . . . . . 9

Indexof Advertisers

Contents

Mazda Wholesale Parts Dealers . . . 49 Mercedes-Benz Wholesale Parts Center . . . . . . . . . . . . . . . . . . . . . 30 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 56 Metric Subaru . . . . . . . . . . . . . . . . . 38 MOPAR Wholesale Parts Dealers . . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 60 Nissan Genuine Parts . . . . . . . . . . . 19 Nucar Mazda. . . . . . . . . . . . . . . . . . 43 PCL Automotive . . . . . . . . . . . . . . . . 8 Plaza Auto Mall . . . . . . . . . . . . . . . . 41 Porsche Wholesale Parts Dealers . 57 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 RealParts.com. . . . . . . . . . . . . . . . . 16 Safety Regulations Strategies. . . . . 10 SATA Spray Equipment . . . . . . . . . 13 SCA Appraisal Company . . . . . . . . 18 Scion Wholesale Parts Dealers. . . . 61 Security Dodge-Chrysler-Jeep . . . . 27 Solution Finish . . . . . . . . . . . . . . . . 58 Subaru Wholesale Parts Dealers DE, South NJ, PA. . . . . . . . . . 22-23 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . . 51 TG Products . . . . . . . . . . . . . . . . . . 12 Thompson Organization . . . . . . . . . 31 Toyota Wholesale Parts Dealers . . . 54 VeriFacts . . . . . . . . . . . . . . . . . . . . . 62 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 50 Volvo Wholesale Parts Dealers . . . . 48

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 3

Fisker Lays Off Employees in Delaware

Fisker Automotive, an electric car maker, said February 6 that it has laid off workers in Delaware and California. The bulk of the layoffs will hit contractors and employees at Fisker’s Anaheim, CA, location. The layoffs include 26 workers at a former General Motors plant in Wilmington that Fisker has been refurbishing since last year. Another 40 contractors and employees in Anaheim, Calif., also have been cut, according to the Associate Press. “We hope we can reach a resolution soon,” said Fisker spokesman Roger Ormisher. “We are frustrated that Fisker and the DOE have been unable to

come to terms on revisions to their loan agreement in time to avoid this,” said Brian Selander, a spokesman for Delaware Gov. Jack Markell. Fisker received $193 million of a $529 million Department of Energy loan this year for work on its electric vehicle models. Fisker has said in the past it expects to eventually employ more than 2,000 people at the Delaware plant. In October of last year there were more than 100 workers were reconfiguring the plant. “We knew that this was always a possibility,” Delaware economic development director Alan Levin said of the layoffs.

Mitchell 1 to Hold Shop Management System Training Workshop in Atlantic City, NJ

Mitchell 1 will hold this year’s first Shop Management System Training Workshop April 19-21, in Atlantic City, N.J. at the Resorts Casino Hotel, located at 1133 Boardwalk. The training workshop is designed for those who have previously established competence using their shop management software and now want to learn more advanced capabilities, better methods and shortcuts. This two day session will guide users through all levels of functionality in the Mitchell 1 Manager and ManagerPlus system. Instructors will explore program setup values, inventory, reporting, best practices and advanced transactions as well as integration with aftermarket cataloging. Attendees will also learn about the new Mitchell 1 SocialCRM™ customer retention and new customer acquisition service during a relaxed evening reception. The workshop will be led by John Dwulet, senior product manager for Mitchell 1’s management software solutions, and Tim McDonnell, national training manager, who have over 30 years of combined Manager and ManagerPlus training experience. Mitchell 1 support personnel will also be on hand. Attendees can expect lively discussions on how to use the management system to energize their business, increase profits and boost productivity. “This advanced training workshop turns existing shop management system customers into power-users who get the most out of their software and business,” said Dwulet. “The sessions will uncover strategies allowing attendees to compete successfully against dealerships; maximizing their maintenance and repair opportunities and further the relationship with the customer. Each time we conduct a

workshop, we repeatedly hear similar comments, such as ‘the workshop opened my eyes to new ways of doing things that have really helped me in my business.’ No matter how long you have had the software, you learn there are better and more efficient methods to operate the day-to-day business.” PLEASE NOTE: The workshop will explore both the 5.9 and 6.4 versions of Mitchell 1’s popular shop management solutions. Users of both versions will benefit from this training experience, regardless of the version being used. At the end of each workshop, AMI Course Completion forms will be handed out to those attendees who wish to pursue AMI credits. Students completing this course will be rewarded 30 credits toward the Accredited Automotive Manager (AAM) designation. Attendees will be welcomed by a cocktail reception on Thursday, April 19 from 6:00 – 8:00 p.m. Workshop sessions run from 8:00 a.m. – 5:00 p.m., on Friday, April 20 and Saturday, April 21. The registration fee is $200 per attendee, plus applicable tax, and covers seminars, continental breakfast, lunch and refreshments each day. Participants are responsible for transportation to Atlantic City and hotel accommodations. Attendees may reserve rooms at the Resorts Casino Hotel and receive Mitchell 1’s special hotel rate by mentioning Mitchell 1/ShopKey Manager Training when making the reservation by calling 1-800-322-1399. For more information or to register for Mitchell 1’s Management System Training Workshop, visit http://buymitchell1.com/form/m1user sinfo.htm. Registration must be completed by Wed., April 11.

4 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

N.J. Dept of Banking and Insurance Commissioner Considine Leaves Post for Private Company Banking and Insurance Department Commissioner Tom Considine left his post effective Feb. 10, New Jersey Gov. Chris Christie announced on January 30. Considine plans to return to work in the private sector, according to Insurance Journal. He will become the new chief operating officer of MagnaCare in March, after leavTom Considine ing the NJ Banking and Insurance Department. MagnaCare is a health plan management company. At a news conference in Trenton, NJ, Gov. Christie also nominated Ken Kobylowski to succeed Commissioner Considine. Kobylowski has served as chief of staff to Considine since 2010, and acting director of banking since last October. Considine served as a vice president with MetLife legal affairs for 17

years prior to serving as NJ commissioner. Considine also previously served as a litigation associate at Connell, Foley and Geiser, a New Jersey law firm.

NY Senate Passes SB 578

The New York State Senate passed SB 578 addressing the use of fake documents to register cars so that owners can operate them without paying for auto insurance. SB 578 makes it a class D felony (of forgery in the second degree) to forge a certificate of insurance, auto insurance card or other papers required to legally operate a motor vehicle. The bill also makes selling 10 or more false insurance cards or documents forgery in the first degree (a class C felony), and it stiffens the penalties for those who commit auto insurance fraud. A companion bill is being looked at in the New York Assembly and is currently before the Assembly Codes Committee.

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Continued from Front Page

NYSACTA

safe and inferior to new OE parts,” says ARA CEO Michael E. Wilson. “This is simply false. Recycled/salvaged automobile parts are not “junkyard parts” nor are they classified as such under West Virginia statute. We have asked the Attorney General to clarify this statement,” said Wilson. NYSACTA, however, believes the term is accurate and that terminology referring to parts taken from salvaged vehicles as “recycled” can be misleading and harmful to consumers. “In our collective experience, the term ‘recycled’has been misused and/or abused in collision repair estimates prepared by insurance company appraisers and some repair shops/garages for years… The process known as ‘recycling’ by definition is when a vehicle is shredded and metal by-products are resmelted for another use. The ‘salvage part’re-conditioning process takes S place at the repair shop… The re-use of a ‘salvage part’ or the selling of a ‘salvaged previously used part’ does not qualify [the part] as recycled,” NYSACTA’s letter states. NYSACTA also claimed that the ARA took an FTC position on recycled crash parts out of context. NYSACTA believes that, per the FTC, although installing salvage parts may not void a whole vehicle warranty, their use could possibly void other limited warranties. NYSACTA’s letter also voiced concerns about salvage part safety, pointing out that cars in salvage yards have often undergone a great deal of abuse, and the quality and performance of salvage parts in a subsequent crash are “unknown.”

The association believes that terms like “recycled” are used by the insurance industry to save money while “lulling consumers into a false sense of what is ‘commercially’ viable and, more importantly, safe.” “The ‘salvage yard’ association certainly has the right to defend their members; we are simply suggesting the term ‘recycled’ only be used when the part has been recycled as defined by law,” NYSACT says, later adding, “Our association firmly believes that the term ‘junkyard’(where applicable) is not any more derogatory than the term ‘repairman-person’ vs. ‘repair technician’ or ‘repair shop’ vs. ‘garage.’ ” The bottom line, NYSACTA said, is that “consumer safety and awareness is and always will be more important than nomenclature.” NYSACTA v Aftermarket The association has doubled down in defense of OEM parts by extending its criticism to the general aftermarket. NYSACTA announced February 2 it is alerting its members and the general public to the potential safety risks with the use of aftermarket crash parts, and is calling on all insurers in NY who specify the use of un-tested, unqualified, NON-OEM compliant crash parts to take corrective action immediately. NYSACTA President, Mike Orso said, “I would think safety would be the most important element of any collision repair. Some insurers by their actions are putting their claimant or insured’s family in a vehicle that the [insurer] specified a repair with untested, at risk parts to save money. No one should be re-engineering a car after a wreck as it puts the consumer in damage as well as all highway users at risk. It creates unSee NYSACTA, Page 40

NJ Siblings Indicted for Alleged Insurance Fraud

Authorities in New Jersey have arrested and indicted a Union City woman and her Jersey City brother for their alleged involvement in a scheme to submit false auto insurance claims, according to Claims Journal. According to Acting Insurance Fraud Prosecutor Ronald Chillemi, Libia Mendoza, 37, and her 39-yearold brother, Leonel Mendoza, were charged with second-degree conspiracy, second-degree insurance fraud, third-degree tampering with public records, and third-degree attempted theft by deception. The indictment alleges that between May 12, 2010, and Sept. 25, 2011, Leonel fraudulently reported an

alleged hit-and-run accident to MetLife Auto and Home Insurance Company, where Libia is insured, on her behalf. Leonel allegedly claimed that a phantom vehicle caused damage to Libia’s 2005, BMW X5. Leonel, on behalf of Libia, also allegedly completed and submitted a false New Jersey motor vehicle accident report to the Jersey City Police following the alleged incident. An investigation determined that Libia then allegedly submitted the false motor vehicle accident report to MetLife for her insurance claim for $10,095 in benefits. If convicted the pair could spend up to 10 years in state prison and a fine of $150,000.

6 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

AASP/NJ’s NORTHEAST™ Exhibitor Boot Camp In preparation for the AASP/NJ’s 35th annual NORTHEAST Automotive Services show, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) held their first-ever NORTHEAST exhibitor boot camp on January 12. The AASP/NJ hoped that this would help exhibitors be more successful at this year’s show. The threehour seminar was held by Susan Friedmann, the “Trade Show Coach.” Friedmann is an author and expert in training exhibitors on how to improve and get the most out of their trade show experiences. “We really didn’t know what to expect when we first found Susan,” said AASP/NJ President Jeff McDowell. “Her qualifications were outstanding so we didn’t doubt what she would bring to the table. We just weren’t sure how our exhibitors

would respond.” The AASP/NJ took surveys following the seminar; the outcome of these surveys encouraged them to continue to hold the bootcamp annually. “Boot Camp was very informative,” one attendee replied. “It had lots of good information and addressed a lot of mistakes that everyone takes for granted.” Another added, “It covered all aspects of booth presentation at the show. Very comprehensive and well paced. I would recommend this boot camp to colleagues if they want to benefit their company as part of any trade show.” NORTHEAST™ 2012 takes place March 9, 10 and 11, 2012 at the Meadowlands Exposition Center of Secaucus, NJ. For more information on the show and AASP/NJ, please visit www.aaspnjnortheast.com.

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PA State Police Take Coaches & Drivers OOS

The Pennsylvania State Police recently participated in a weeklong enforcement effort inspecting motor coaches, State Police Commissioner Frank Noonan announced Feb 2. State and municipal motor carrier enforcement personnel, along with the Public Utility Commission staff, inspected 284 motor coaches at sites throughout Pennsylvania, including casinos and other popular tourist destinations. Between Jan. 21 and Jan. 27 enforcement personnel placed a total of 15 motor coaches and 23 drivers out of service for various safety violations. “Motor coaches account for more than 750 million passenger trips each year, and with a large number of popular travel destination locations throughout Pennsylvania, the safety of these vehicles and their drivers is of great importance to us,” Noonan said. “These enforcement efforts are just one of the many ways we help ensure the safety of everyone traveling on Pennsylvania roadways.” The Federal Motor Carrier Safety Administration monitors interstate bus and truck safety.

PA Insurance Department Makes $3.2M in Restitution

The Pennsylvania Insurance Department’s office of market regulation issued 141 orders and adjudications, collected more than $900,000 in penalties and fines and recovered $3.2 million in restitution for consumers in 2011, according to Insurance Journal. Action is taken after an investigation reveals violations of Pennsylvania statutes or regulations, or after the completion of a market conduct examination. The results of these actions this year are as follows: 37 individual insurance licenses were revoked or surrendered to the department, 57 licenses were placed under various periods of supervision, 16 waivers were issued, placing individuals under indefinite supervision due to prior felony convictions, the reasons for the actions were the result of companies and/or agents, using unapproved insurance contracts, misappropriating premium dollars, forging or altering signatures of policyholder applications, failing to disclose prior felony and misdemeanor convictions, lying on license applications or renewal forms.

8 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

H&V Collision Opens Fourth Location in Saratoga, NY H&V Collision Centers will open a fourth location in Saratoga County at the former Allstar Chevrolet in Saratoga, NY. H&V purchased the property in February and a formal grand opening will be held this spring. The new Saratoga location joins H&V locations in Troy, Queensbury and Colonie, and provides H&V with a base of operations in Rensselaer, Warren, Albany and Saratoga counties. “We are very excited to be readying a fourth H&V location and equally excited to be moving into Saratoga County in 2012,” said H&V’s Vartan Jerian Jr. “H&V has been fortunate to have many customers and friends from Saratoga County. This new, fourth location will move us closer to our customers in Saratoga and expand a coverage area that will allow us to bring in new customers,” added Jerian. The new location for H&V will include 11 acres and 30,000 square feet and over one dozen bays. When completed, the facility will be the largest for H&V Collision Centers, and have a capability of processing 75 vehicles at a time. An existing collision repair shop at the facility now includes 15 em-

ployees. Those employees will be retained. An additional ten jobs will be created. After starting as a two-man operation in the early 1970s, H&V now includes over 100 employees and collision repair technicians throughout the Capital Region. H&V has seen steady and continued growth in recent years that has established H&V as the largest independent collision repair company in the Capital Region. H&V started as a two-man shop in a small garage on Oakwood Avenue in Troy in the early 1970s. In 2006, H&V completed a major expansion at the Oakwood Avenue facility that added 6,00 square feet to the facility and some of the most modern equipment available. In 2008, H&V opened a North Country location on Quaker Road in Queensbury. H&V undertook its largest expansion, opening a major facility on Central Avenue in Colonie. As part of that commitment, H&V became the first collision facility in the region to partner with VeriFacts Automotive, to provide independent, third party verification and review of work and repairs at H&V locations.

Pa-based Keenan Auto Body Holds Facebook Jingle Contest

Many shops use Facebook fan pages to engage with their communities, and Clifton Heights, Pa.-based multishop operator (MSO) Keenan Auto Body is creating buzz among its fans with a jingle contest with a cash prize, says Keenan President and COO Michael LeVasseur. Keenan Auto Body is looking to its Facebook community of almost 2,400 to come up with a catchy jingle to run as part of the MSO’s advertising campaign. “This is a first for us,” said Craig Camacho, Keenan Auto Body’s marketing director. “For the past six years, we have had a production company produce our storyline of TV commercials, but we felt this year was the year of change. Currently, we have almost 2,400 people who ‘Like’ Keenan Auto Body on Facebook, and we know there is a ton of talent out there.” Keenan is offering a first prize of $1,500 and a second prize of $500. The contest began on Thursday, Feb. 16 and ends on Tuesday, May 1, with the winner and runner-up being chosen and announced on Monday, May 21.

ASA & Diamond Standard Product Liability on Website

A website supporting the Automotive Service Association’s (ASA) $40 million Security Shield Product Liability Protection benefit through Diamond Standard Parts is now live, the ASA announced Feb 20. The ASA says the website, diamondstandardsecurityshieldASA.co m, is a result of the partnership it recently formed with Diamond Standard Parts to provide ASA members with expanded product liability protection from the use of the company’s collision repair structural replacement parts. The product liability coverage is intended to serve as added security against scenarios when the use of Diamond Standard parts results in injury to vehicle owners. The website provides access to the full program content, including background, coverage, a limited lifetime warranty statement, and a “Certificate of Coverage” that can be downloaded, according to the ASA. The Security Shield Product Liability Protection benefit is automatically available to all ASA-member shops, and does not require individual registration.

Fix Auto Adds Two New Shops to Network in N. California

Fix Auto USA announced the addition of two franchise collision repair locations in Northern California on Feb. 20. The new Fix Auto locations include Fix Auto Gilroy and Fix Auto San Jose, which were formerly known as Springer Collision Centers. “Springer Collision Centers is celebrating its 20th year in business,” said Steve Springer, owner of Fix Auto Gilroy and Fix Auto San Jose. “We are excited to take the next step while committing our company to a market leader dedicated to improving the collision repair industry. We’ve been using Fix tools for 10 years— franchising is the next practical move to position ourselves for another successful 20 years.” Fix Auto first introduced its franchise model in January 2011. The company now operates 29 franchise locations in California, and 47 franchise locations overall. “The recent expansion in Seattle and now in Northern California is a clear indicator that a model like ours—which offers independent owners the infrastructure and support to be meaningful in today’s marketplace—is gaining momentum,” said Paul Gange, president and CEO.

Allstate will open Agencies in Dealerships, from Test Program

Allstate has announced plans to open full-service Allstate agencies inside auto dealerships nationwide. Allstate says it will place agency offices on the showroom floor inside auto dealerships, which will operate during regular business hours of the dealership. Licensed insurance professionals and a team of support staff will work onsite to help customers assess their insurance portfolio. The goal of Allstate’s dealer program is to integrate the purchase and service of a vehicle with opportunities for consumers to price auto insurance with Allstate and work with a licensed insurance professional on their coverage needs, said Mark LaNeve, senior executive vice president and chief marketing officer for Allstate. “Our agency owners are at the heart of Allstate’s business and this program allows us to attract new customers at a time and location that’s convenient for the customer,” LaNeve said. Allstate said it tested the program for two years in 11 auto dealerships nationwide. The pilot test revealed that the dealer program offers the convenience and face-to-face interaction that customers want, according to the company.

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 9

Several Crash Parts Bills Introduced to State Legislatures Countrywide Several crash parts bills have been introduced in state legislatures across the U.S. Amended crash parts bills have been introduced in Oklahoma, Hawaii, Massachusetts, New York, South Carolina, North Carolina and Washington. The ASA says two state bills are of particular importance for independent repairers. Oklahoma Senate Bill 1458 calls for consumer notice and consent language, and adds new policy provisions including “emissions part” and “safety part.” “Emissions part,” the ASA notes, requires the replacement of parts or systems related to the control, monitoring and release of waste gases and particles created as a byproduct of combustion. Those parts include oxygen sensors, catalytic converters, exhaust pipes, exhaust manifold, fuel distributor, electronic emissions control unit, onboard emissions diagnostic device (OBD), and related parts and components. “Safety part” requires the replacement of parts or systems essential to vehicle operation. Those parts

include suspension, electronic control units (ECU), brake parts, safety systems and supplemental restraint system (SRS) components, according to the ASA. In addition, Hawaii Senate Bill 2326 amends the state’s current law by removing provisions requiring claimants to pay additional costs for the use of original equipment manufacturer (OEM) parts. It also requires insurers to make available the use of certain used or aftermarket parts instead of “like kind and quality” parts in motor vehicle body repairs. The legislation reads as follows: “Original equipment manufacturers and like kind and quality parts; used or aftermarket parts: (a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality used or aftermarket part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of

I-CAR and Assured Performance Network’s “New Road to Gold”

I-CAR has announced it is collaborating with the Assured Performance Network in the development of the “Road to Gold program, a new approach to achieving the I-CAR Gold Class Professionals designation for the network of 3,000-plus collision repair shops. Organizations that enroll in the Road to Gold program commit to earning the I-CAR Gold Class Professionals business designation, which is a requirement for earning the Assured Performance Certification. The Gold Class designation is the highest training recognition available to businesses in the collision repair industry. Other businesses that have been recognized as Gold Class have reported less rework, retained customer satisfaction, and improved overall operational efficiencies. “For our Assured Performance

Certification, the I-CAR Gold Class Professionals designation is essential to ensuring the shop has the training that is in accordance with industry repair standards,” said Scott Biggs, CEO of Assured Performance. “With this new Road to Gold program, our members can enroll with a clear objective – Gold Class status, and get a plan to achieve and maintain it.” “I-CAR commends Assured Performance Network for its commitment to training. The inherit value delivered through the I-CAR Professional Development Program and the Gold Class designation will provide Assured Performance Network member shops with the training needed to perform safe repairs and retain vehicle integrity postrepair,” said Jeff Peevy, I-CAR senior director of Field Operations and Segment Development.

ABRA Auto Body & Glass announced that Louis C. Berezovsky will be executive VP and CFO reporting directly to CEO Duane A. Rouse. “Louis’ experience in highgrowth companies and his leadership style will be an excellent fit with our growth plans and the ABRA culture,” said Rouse. “His extensive background in finance and acquisitions aligns well with our national expan-

sion plans and our mission to becoming the leading auto body and glass company in America.” Berezovsky’s resume includes more than 20 years in finance and accounting along with 14 years of working in private equity environments and the completion of more than 50 acquisitions. “I’m thrilled to be joining an industry leader,” Berezovsky said.

an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality used or aftermarket part, unless the vehicle is currently under the manufacturer’s warranty or original equipment parts are required by the vehicle manufacturer’s warranty.” (b) A [like kind and quality] used or aftermarket part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the [like kind and quality] used or aftermarket part for not less than [ninety days or for] the same guarantee period as the original equipment manufacturer part, [whichever is longer]. The guarantee shall be provided by the insurer. (c) [Like kind and quality] Used or aftermarket parts, certified or approved by governmental or industry organizations, shall be utilized if available. At its fall board meeting, ASA approved a new crash parts policy to

reflect the collision marketplace changes occurring in the past few years. ASA’s new crash parts policy states: “ASA supports requiring insurers and auto collision facilities to provide disclosure of part type, description and warranty information to the consumer for all part types including, but not limited to, original equipment manufacturer, aftermarket, recycled, remanufactured, reconditioned and rebuilt crash parts. ASA supports quality parts, certified and verified in which the quality is determined based on empirical and measurable evidence equal to the standards of OEM parts. ASA recommends quality verification and testing related to metallurgy, fit, functionality and responsiveness. ASA believes a competitive parts marketplace, of tested and verified quality parts, is in the best interest of the motoring public. ASA continues to oppose parts policies that focus solely on efficiency without regard to certification, verifiable quality and safety.”

ABRA Names New Executive Vice President-CFO

10 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

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NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances In a letter to State Farm CEO Edward Rust Jr., Don Harvey, of International Collision Service in Englewood, NJ, questions why State Farm does not acknowledge cost accounting programs and practices in setting paint allowance rates. Harvey has previously contacted senior State Farm management to no avail. His letter follows: Feb 15, 2012

State Farm Insurance Co. Mr. Edward B. Rust Jr. One State Farm Plaza Bloomington, IL 61710 Dear Mr. Rust,

Please take a moment to look at an issue regarding customer satisfaction and a “Good Neighbor” responsible commitment to proper repairs. Paint material has been an issue often questioned and not properly acknowledged. Several years ago the Department [of Banking and] Insurance

Commissioner Steven M. Goldman issued a Bulletin #07-20 (copy enclosed for your review) encouraging insurers to utilize paint cost accounting software programs and manuals. Just after the issuance of this bulletin, State Farm (Northern NJ) changed their paint calculation from a multiplier of $23.00 per paint hour to $28.00 per paint hour. That was November 2007. Since that time, as we all know, all oil-derived product prices have dramatically increased, however State Farm has not acknowledged (NJ office: Mr. Charlie Holmes) any legitimate paint cost programs or software, holding [instead] to their antiquated $28.00 per hour calculation with no deviation. Automotive paints used on today’s advanced vehicles require many different tints to achieve the look and appearance duplicating the original finish. Therefore all pricing cannot be properly and FAIRLY determined by one multiplier, this is why the paint cost accounting software programs are so important: FAIRLY compensating the repairer

for materials used on the specific vehicle (color) being repaired. Mr. Holmes has repeatedly stated that State Farm holds true to their survey studies. What is interesting about that is twofold: 1) State Farm (northern NJ) hasn’t sent anyone out to survey the shops in many, many years, leaving it to the shops to call State Farm and get an authorization # before being able to even get to the survey. 2) I find it interesting that if State Farm only uses their survey to change rates and materials, why after a short time and no apparent survey, did the multiplier change in late 2007 after the Bulletin issued by the State of New Jersey, from $23.00 per hour to the current rate of $28.00 per hour? Most insurance companies are acknowledging the cost accounting software programs plus a mark-up as the programs use an average COST to the repair from the suppliers. In closing I hope that you will review this letter and change the way State Farm, NJ, is conducting business and [have] The Good Neighbor

do the right thing, properly and fairly returning vehicles to pre-accident condition. Respectfully,

Don W. Harvey International Collision Service Englewood, NJ, 07631

(Copy of Mitchell Refinishing Calculator Notes enclosed for your review.) To see additional attachments: NJ DOI Bullentin #07-20 and the Mitchell Refinishing Calculator Notes, search the article title at autobodynews.com. If you have any relevant information submit it to Don Harvey at dwharvey@1ics-usa.com, or write: Don W. Harvey international collision service 328 South Van Brunt St. Englewood, NJ 07631 Phone: 201.567.2124 Fax: 201.567.6644

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Parts Bill

pearance to the component part that is claimed in such design patent if the purpose of such article of manufacture is for the repair of a motor vehicle so as to restore such vehicle to its appearance as originally manufactured.” “Competition is the hallmark of our free market system,” Issa said. “Consumers have dozens of choices in electronics, food, service, clothing and other products – this same array of choices, across all price points, should also extend to automotive repair parts.” Major aftermarket distributors and the Quality Parts Coalition have a vested interest in being able to manufacture and import aftermarket parts, however collision repairers in general should be leary of increasing the controversy over the quality of replacement parts specified on insurance estimates. Proponents of the bill note that car manufacturers currently control 72 percent of the repair parts market and have been steadily increasing the use of design patents. Competition

is reduced and consumers end up paying more than necessary for parts they say. Because of these elevated costs, insurers will sometimes consider vehicles totals instead of paying for repairs. The result is that consumers are forced to replace a repairable vehicle with a different car, an expense the QPC argues can be avoided if the PARTS Act becomes law. The bill has also received the support of the American Insurance Association a property-casualty insurance trade organization that represents nearly 300 insurers. Noted Melissa Shelk, AIA vice president for federal affairs, “Consumers deserve access to high-quality alternative replacement parts. Increased competition means decreased prices and greater choice for consumers.” The AIA says that “quality” replacement parts for such collision parts including bumpers, fenders and hoods can cost consumers approximately 26 to 50 percent less. Insurance savings can be realized when consumers choose these alternative parts, but only if such parts are available. Shelk says that consumers pay an extra $1.5 billion annually because

of the current patent restrictions on replacement collision parts. Not surprisingly, OEMs oppose this limitation on their design patents. In the past, groups opposing similar legislation have said that “copycat” parts are harmful to OEMs and consumers alike. At a March 16, 2010 hearing in front of the House Judiciary committee, Damian Porcari, attorney and director, Enforcement and Licensing, Ford Global Technologies, said, “The copyists want to eliminate design patent protection because that’s what they make. As soon as their business model includes engines, brakes and air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs.” See article beginning p. 53 for full text of Porciari’s 2010 testimony.

ASA Announces 2012 Annual Meeting Dates and Location

ASA will hold its next annual business meeting May 7–8 at the Grand Hyatt DFW International Airport, located at the Dallas/Fort Worth Airport in North Texas. On the agenda will be open meetings of the ASA affiliate assembly and board of directors. Ron Pyle, ASA president and chief staff executive, will deliver a state-of-theassociation address during a Tuesday luncheon, and a new chairman of the ASA board of directors will be sworn in during the event. In addition, ASA will again host an Association Leadership Summit event. All ASA members are invited to attend the open meetings during the event. Check out the Events section of www.ASAshop.org for the latest developments. Additional information about the event, including registration information, will be announced soon.

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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 13

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This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

I-CAR Tech

Corrosion Protection to Structural Part Interiors There has been a longstanding recom- surfaces as a standard operating promendation to apply epoxy primer, as cedure. well as anti-corrosion compound, on the inside of rails and pillars and Primer Requires a Cleaned Surface rocker panels as a last step for struc- Product makers have a concern with tural repairs. adhesion if these backside areas are Going back as far as the July/August 1988 I-CAR Advantage, in the article “Restoring Corrosion Protection,” is the following step for providing corrosion protection to enclosed interior surfaces: “Apply primer. Two-part epoxy recommended. Then apply anticorrosion compound.” The Figure 1. Anti-corrosion compound is applied to enclosed reason given, is that on areas interior surfaces with a wand using access holes where the coatings have been entirely removed, this is a two- not cleaned properly. Any surface to step process that is replacing the two be primed must be cleaned, both meoriginal coatings, zinc and E-coat. chanically and chemically. During research for the recently If applying epoxy primer inside updated I-CAR course, Corrosion rails and other structural parts, the Protection (CPS01), I-CAR asked surfaces must be cleaned before the several product and vehicle makers if part is assembled. This requires sandthis is still the most frequent recom- ing followed by a thorough chemical mendation. I-CAR was told it is not, cleaning, especially the joint area due to several reasons. These include backside to remove coatings. There possible primer adhesion problems might be access to a rail joint, if the on these surfaces, the lower preva- joint is near the very tip of the rail lence of epoxy primer at repair facil- and the rail is open-ended up through ities, the increased popularity of the joint location. Other than a situaself-etching primer, changing primer tion like that, there isn’t enough acchemistries, and an increase in the ef- cess for proper cleaning after fectiveness of anti-corrosion com- welding, so it must be cleaned before pound. assembly. E-coat is the best corrosion protection material that will ever be ap- Anti-Corrosion Compound Alone plied to a vehicle surface, and aside of The recommendation from the prodthe weld backside, the enclosed inte- uct makers and vehicle makers that Irior areas have E-coat. CAR communicated with during Still, there is a concern among research for updating the I-CAR repair facilities for longevity of recourse, Corrosion Protection (CPS01), pairs, retaining corrosion warranties, is to apply anti-corrosion compound and assurance that there is one more alone. Anti-corrosion compound, aplayer of protection, especially in the plied as a mist coat using a wand inrust-belt areas. For these reasons, and serted through access holes or from more, several facilities will continue the end of a rail, is designed to protect to apply epoxy primer in addition to enclosed areas from corrosion (see anti-corrosion compound to enclosed Figure 1).

rosion compound.

The proper application technique should treat the backsides of the welds. Excess material should creep into the flange areas, sealing off those areas from moisture. At least one vehicle maker, Chrysler LLC, recommends a double application of anti-corrosion compound (see Video at www.i-car.com). Visit i-car.com to view the referenced video where Chrysler Collision Repair Manager Doug Craig explains that Chrysler recommends applying two coats of anti-corrosion compound.

Conclusion The recommendation to apply epoxy primer followed by anti-corrosion compound inside an enclosed area is not included in the updated I-CAR course, Corrosion Protection (CPS01). When using this two-step process, the surfaces must be cleaned for the primer to properly adhere. The more general recommendation is applying anti-corrosion compound alone. The instructor-led (live) I-CAR course, Corrosion Protection (CPS01), has been refreshed. It includes updated manufacturer recommendations, as well as an updated presentation. Watch for this course in your area. For course details and to register, visit the I-CAR website. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.

Do Not Use Self-Etching Primer It is still recommended to not use selfetching primer inside enclosed areas, because it doesn’t form a barrier like epoxy primer and would eventually break down. Self-etching primer must be coated with another product, and it would be difficult to see inside an enclosed area whether or not the primer is completely coated by the anti-cor-

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Continued from Page One

CIC Report

parate parts systems, some of which may be mandated by their insurance partners, may require shops to train their people on potentially nine different methodologies to order parts,” consultant Matt Ohrnstein of Symphony Advisors responded during the committee’s question-and-answer period. Ohrnstein suggested the committee could help communicate to industry constituents that, just as the banking industry settled on a standard way to transfer funds worldwide, this industry would be better served by standardized parts-related electronic commerce systems. CIC Parts and Materials Committee member Aaron Lofrano also reported in Palm Springs on his admittedly informal survey of more than 120 people in the industry asking how use of different types of parts benefit or hinder their business opAaron Lofrano eration on a daily basis in terms of job performance and profitability. Lofrano shared some representative comments from the various constituencies included in his survey. He said non-OEM parts vendors, for example, expressed concerns about the number of parts returned, and questions about whether those parts really did not fit as the shops returning the parts might indicate (often without providing any specific information about the problem with the parts). Such returns occur, Lofrano said he was told, even though other shops in the same markets return few if any parts. The parts vendors also expressed frustration with parts being returned without boxes or packaging. Following Lofrano’s presentation, Oregon shop owner Ron Reichen said he’d like to have more detailed information about the vendors’ reported parts returns rates. “We are repeatedly told by the carriers that it’s about 2 percent,” Reichen said, saying that doesn’t seem to match up with Lofrano’s assessment of what he heard from parts vendors.

Info Providers Discuss Data Sharing The “Big Three” estimating system providers offered some response at the

recent Collision Industry Conference (CIC) to a joint statement by three repairer groups earlier this year voicing concern about collection and use of shop data. In that statement, the Alliance of Automotive Service Providers (AASP), the Automotive Service Association, and the Society of Collision Repair Specialists, said shops wishing to use any of the estimating systems have no choice but to agree to allow their data to be aggregated and sold or reported to third-parties, potentially “in ways that may ultimately be detrimental to the (shop) who generated the data.” The estimating system providers pointed out the benefits to the industry of having aggregated data from which all shop-identifying information has been removed. Greg Horn of Mitchell International noted that the associations are among those who have at times requested such aggregated data, and that it can help shops understand how they performing relative to their market. Jack Rozint of CCC Information Services said his company takes every effort to ensure it isn’t releasing information that “could be used to the detriment of our customer.” He said, for example, that CCC would never share shops’ profitability data - such as gross margins on profit or labor - that it has access to through clients using its shop management system, even if a shop gave its permission to do so. “Because we recognized that ‘permission’ in this industry is not always ‘permission’ (because) it’s sometimes (given) when someone has a program being held over them (and) if they don’t do it they aren’t going to get any more cars,” Rozint said. “So we walled off that data and said it’s not going anywhere from our system.” But Rozint said even if the system providers gave shops a way to opt-out of having their estimate data aggregated, little would change. “Most of the work in this industry is paid for by insurance companies,” he pointed out. “If the insurance companies want that data aggregated, they have access to it because they paid the claim, so it will be aggregated. The only data you could exclude as a shop if that permission existed would be customer-pay data.” EMS vs. BMS debate continues The discussion came during a CIC Data Privacy Committee panel discussion related to when the industry

18 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

will shift to a newer technology standard for the transfer of a shop’s estimate data to third-parties. The associations have been among those calling for a shift by the information providers away from using the older “EMS” standard for transferring estimate data to using the newer “BMS” standard, in large part because BMS gives the shop more control over what aspects of the estimate data are shared. If a shop, for example, orders parts electronically, the parts Jack Rozint vendor receiving the parts list via the EMS file gets not only what parts are needed but information about the customer and his or her insurance. A rental car company also might be getting all this information even if all it really needs is information on when a customer’s car will be repaired and the rental returned. CCC’s Rozint and Rick Tuuri of Audatex said more fully implementing BMS will require significant development resources for the information providers. And Tuuri said even if a

shop could export data using the BMS standard right now, it would be a little bit like being the only one with a phone or fax machine in that you couldn’t use it unless the other party was prepared to communicate that way as well. “If there’s no one prepared to receive BMS and understand it, there’s not much impetus to develop it,” Tuuri said. But Fred Iantorno of the Collision Industry Electronic Commerce Association (CIECA) said EMS is built on technology introduced in the 1980s; most programmers working today, he said, aren’t even familiar with it. He said there’s been no resources spent on the EMS standard since its last release a decade ago. “So yes, you will have to spend money to move to BMS because you’re not spending any money today,” Iantorno told the information providers. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.

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Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251

Shop Showcase

FCC Collision Continues Expansion in the Greater San Francisco Area with Erica Schroeder

FCC Collision Centers, a multi-shop operation with three locations in Mountain View, Milpitas and Sunnyvale, CA,

FCC Collision Centers’ owners Matt, Adam and Jason Piper

started in 1975 when Adam Piper decided to start his own business. A repairman at the time, he purchased the locations in Milpitas and Mountain View and ran those until 1996. Then he decided to sell both of those locations to now-infamous group called M2 Collision Care Cen-

ter, while maintaining ownership of the buildings the businesses were in. Then in 2005 M2 went bankrupt and since his two sons, Matt and Jason, were working at other collision repair centers in the area, Adam asked them if they’d go into partnership with him on the two stores. Now Matt currently manages the Mountain View location and Jason manages the Milpitas location; they both manage the new Sunnyvale location. “We worked really hard the first couple of years to build the businesses back up,” said Jason. M2 had burned some bridges in the industry before going out of business and the buildings also needed some repair, so the trio worked hard for the first few years to get the business to where it is now. During the economic recession in 2008 and 2009 the Pipers had to ride the slow economic wave just like the rest of the industry.

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nyvale. They are currently working to get more DRPs as well as improving the building and image of that location. The Pipers hope to grow FCC to 4 or 5 locations within the next few years and see continued growth of locations as the best way to stay competitive. Industry consolidation is a major reason why FCC intends to stay competitive in the industry with their continued growth. “The market is fertile for consolidation right now,” said Jason. The Pipers are currently looking for a fourth location, but it’s got to be the right location. Ultimately the Pipers want their locations to complement each other, since the current three locations service adjacent communities. “One thing you can’t be in this industry is stagnant,” said Jason. Across all locations FCC currently has 40 employees, sees about 250 cars per month and grosses nearly

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According to Jason, one thing set their businesses apart from the rest during this time, “We push hard during the slow times to reinvent our business.” During the recession the group reinvented their marketing strategy, improved their operations and upped their training to get ready for the eco-

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$7 million annually. Mountain View is the largest location with 22,000 square-feet, then Milpitas with 16,000 and Sunnyvale with 8,000. The family trio works together well and has common goals when it comes to the businesses. Matt handles much of the training, production flow, estimate accuracy functions and daily management; Jason handles the accounting, HR, IT and daily management; and Adam handles the business develop-

FCC’s newest location in Sunnyvale, CA

ment, marketing, industry relations and “old guy” stuff, according to Jason. All three shops are equipped with state-of-the-art auto body repair equipment including Chief EZ-Liner Frame Machines and Velocity Computerized Measuring Systems. Each shop is also equipped with modern

downdraft SprayBake spray booths, and uses only Dupont paint. All three shops are currently in contract with VeriFacts, who analyzes, evaluates, trains and reviews ongoing work on a monthly basis. VeriFacts assures that technicians maintain the highest quality work through verification and authentication of repairs according to industry standards and original manufacturers’ guidelines, says Jason. All three owners feel that their contract with VeriFacts helps them to maintain integrity in their repairs. “Using VeriFacts is a big part of who we are. We’re always raising the bar on quality by following the most recent OEM standards,” added Jason. FCC has archived the highest level within the VeriFacts program: Medallion status. This attainment only occurs after a history of verified certification, training, equipment, quality and adherence to OEM standards has been established. FCC is one of only a handful of shops that have attained this status across the US. “FCC utilizes ALLDATA and researches OEM specifications on all structural repairs to ensure strict adherence to standards. This ‘tool’ allows us

to provide the best, safest repair for our customers,” said Matt Piper. All three locations are I-CAR Gold certified. Management requires that all personnel enroll in any workshops or classes offered by original auto manufacturers or auto paint companies. The businesses are all currently in a direct repair partnership with several large insurers. They also do paintless dent removal, wheel alignment,

FCC’s first location opened in 1975 in Mountain View, CA

glass replacement, detailing and glass tinting, towing and rental cars. Adam Piper has been very active throughout the industry in his career; including sitting on the Board of Directors of the Santa Clara Chapter of the California Auto Body Association since 1983, serving as Santa Clara Chapter President five times and serving as Committee Co-Chair of the Definitions Committee for the Colli-

sion Industry Conference in 1994–97. FCC maintains membership in the California Auto Body Association, the Society of Collision Repair Specialists, the National Federation of Independent Businesses and the Better Business Bureau. “We aspire to always provide our customers with a service and ownership experience that consistently satisfies their needs and exceeds their expectations,” said Adam Piper. The company’s logo is “Quality, Service and Dependability.” For more information please visit www.fcc-collision.com. FCC Mountain View 177 East Evelyn Ave. Mountain View, CA 94040 (650) 965-1440 FCC Milpitas 1416 S Main St. Milpitas, CA 95035 (408) 263-9999

FCC Sunnyvale 904 E. Arques Ave. Sunnyvale, CA 94085 (408) 400-2440

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 21

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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 23

Shop Showcase

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

Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP World with Chasidy Rae Sisk

Prestige Auto Body in Garwood, NJ always strives for excellence in their repairs and customer service. Owner Sam Mikhail’s efforts were recently brought to light when he was inducted into the AASP/NJ’s Hall of Fame in November, 2011.

(l to r): Bruce, Selvio, Frank, Sam, Chris, Morisio and Bill

About this, Mr. Mikhail states “It was a surprise to me. I’ve been on the board for a long time, but I am a minority shop when it comes to DRPs. I’ve been active and vocal when it came to DRPs and steering

Prestige Auto Body owner Sam Mikhail

so I know I am not the most popular guy among the DRP shop owners, so for me to get the award never came across my mind. I appreciate the honor and the people that nominated me. I know that my effort and hard work did not go unnoticed.” He is also happy with the fact that several local newspapers published the story where consumers can see that he practices what he preaches. Sam Mikhail attends the AASP/NJ tradeshow every year because he feels it offers great information about the industry. As a veteran in the auto body industry, Sam Mikhail sees many negative trends occurring lately. Because shops are being squeezed by insurers resulting in a lot of shortcuts and the use of inferior parts and materials,

bad repairs are predominant in the industry. Many insurers overlook procedures that need to be done, changing or altering data to fit their needs. Because of this, he believes many existing shops will go out of business. New Jersey has seen a decrease from 1700 to around 1200 shops in the past four to five years. Mr. Mikhail believes this is due to the need for updated, high-priced equipment as well as the conversion to waterborne paint and changes in car designs. Combined with depressed labor rates and underpayment for materials, this will make it difficult for a lot of small to medium shops to stay in business. Mr. Mikhail also notes that little new blood is coming into this trade. Most young people are going into other industries where they will be better compensated for their labor, leaving the auto body industry with an aging population. He believes insurance companies are driving this trend because they are looking to lower short-term costs without worrying about how this will affect the future of the industry. Prestige Auto Body does not participate in any direct repair programs, and Mr. Mikhail has no plans to do so in the future either. He is very outspoken about his concerns with the way direct repair programs dictate the materials used and result in lower quality repairs. Prestige Auto Body works for the consumers, not the insurance companies, and their “number one concern is to restore cars to its pre-loss condition as close as humanly possible.” In May 1979, Mikhail opened Prestige in Garwood. He had owned a franchised auto body shop for about eighteen months in Roselle in a difficult to locate area. The shop in Garwood was originally owned by a man who charged $300 for nearly every job, and when he left the area, leaving the bank with an unpaid $80,000 loan, the landlord bought the shop from the bank. Mikhail took the shop over from the landlord, cleaned the shop, replaced the old paint booth and added a frame machine. It took

24 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

two years for people to really return to the shop since many consumers

Prestige Auto Body is located in Garwood, NJ, on South Avenue

were afraid that the old owner was still in charge of the shop, leaving Sam with a struggle to rebuild his reputation. In order to do so, he wrote a detailed estimate on every car even if he knew he would not get the job, explaining to the customer what needed to be done to get the job right. He refused to take any shortcuts and gave

Spray booths on the shop floor at Prestige

every car the same amount of care, regardless of age, model or value. Any customer problems were addressed promptly; “we always gave the customer more than they paid for.” Prestige now has an excellent reputation in the Garwood NJ community for superior repairs and customer service. This Garwood, NJ shop uses Spies Hecker paints on a mixture of new and older model cars. Mikhail notes that many of the older cars

end up being totaled, but if these same cars are sent to DRP shops, they will be repaired many times until the cost exceeds the car’s value, leaving customers with nothing more than junk. When asked whether he has any color matching problems with Spies Hecker, Sam Mikhail insists “there is no such thing as a problem in color match; if you try hard enough, you can match any color.” Prestige Auto Body boasts a 11,000 square foot shop and six technicians. The shop is complete with two downdraft spray booths, two EZLiner frame machines, one Chief Goliath frame machine and two Genesis Electronic Measuring systems. Additionally, the shop utilizes two Pro-Spot welders, three mig welders, one Hunter wheel alignment machine, a stationary lift, a portable lift and a flatbed. This shop repairs between fifteen and twenty vehicles each month, and additional revenue comes from DV appraisals and offering an expert witness service for local attorneys and consumers. The shop also offers Diminished Value Assessments. The technicians and estimators at Prestige Auto Body are ASE Certified, and the shop is I-CAR Certified. Besides his involvement with AASP/NJ, Sam Mikhail was also the first president of the Garwood Chamber of Commerce and is currently the treasurer. Prestige is also a member, as well as the founder, of the Goldcar Collision Repair Network. Out of concern for the environment, Prestige Auto Body is currently under contract to convert to solar power in the shop. Prestige Auto Body 7 South Avenue Garwood, NJ 07027 908-789-2020 www.goldcar.com/prestige

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Shop Showcase

Checker Auto Body: A Small-Town Shop Offering Big-Time Repairs with Chasidy Rae Sisk

Checker Auto Body in Huntsville, AL is a small, neighborhood shop with a big reputation for quality and customer service. They like to know their

helping members of the community. Their website offers a shop “dedicated to providing the Huntsville, Alabama community quality body repair with the emphasis on integrity, honesty and value.” The shop was founded in 2007 by Steve Locascio, Bill Goebel and Alan Andriakos when they purchased a longrunning body shop after the owners decided to retire. Checker Auto Body has since built a reputation for quality repairs, superior customer service and dedication to the community. Their website is filled with information to asAlan Andriakos of Checker Auto Body, a Huntsville, AL, sist the consumer needing a shop that specializes in motorhome repair body repair. For starters, it incustomers by first name, and they forms customers that they are able to offer pick-up and delivery services, choose the body shop where they want especially for their older customers, to have their vehicle repaired and do demonstrating their dedication to not need to allow the insurance com-

pany to choose for them. Checkerautobody.com offers information about how auto body shops work, what to do at the scene of an accident and how to ensure great cus-

Co-Owner Bill Goebel

tomer service from an auto body shop. They also offer free estimates and advice to consumers who have been in an accident. Additionally, the website details

the specifics of how they determine what repairs are necessary and what they offer with their collision repairs, frame repairs, automotive painting, auto rebuilding, doors/windows and fleet body repair services. “Performing repairs to the highest possible standards, with absolute integrity, while meeting demanding timelines are the founding principles of the Checker Auto Body Repair business”, according to their website. Checker Auto Body is involved with repairs for the City of Huntsville’s Handi-ride and bus depots, Huntsville utilities and the Huntsville city garage. Meanwhile, Steve Locascio often teaches evening computer classes at the local community college, while Bill Goebel frequently volunteers as a See Checker Auto Body, Page 30

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 27

Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Getting a Guess-timate From the Real Experts with The Insurance Insider

Before you can begin repairing a vehicle, you need an estimate. It’s the easiest part of this whole deal, right? You have a computerized estimating system that allows you to accurately document everything that is needed to fix the car. Some say it’s so easy that you can do it remotely by merely looking at a picture. Now that does sound easy! Almost as easy as going fishing with the “Pocket Fisherman.” Ah, the memories. For those not old enough to remember, every man in the world wanted one of those little babies nestled in their glove box. Why do I reference the inspirational and ageless Ron Popeil and his company, Ronco? It has nothing to do with getting a sales commission. I mention him because he made the impossible seem possible. The trivial and difficult became simplified and logical. I believe that repairers and insurers view estimating through the neverinvented “Ronco Goggles.” (Sorry for another pathetic Popeil reference. If you can’t tell, I’m a big fan and proud owner of an original Pocket Fisherman and Mr. Microphone.) If estimating is so easy why is it the most misguided, challenged and subjective part of the process? There is an easy answer: It’s not really that easy. Repairers and insurers argue all the time about the estimating process. I’ve heard repairers say, “The cost to repair the car is the cost to repair the car. Insurance companies are just trying to write a low-dollar estimate. Let the experts write the estimates and repair the vehicle.” Does that sound familiar to anyone? It should. Estimating is best defined by the actual root of the word: estimate. No matter what any expert tells me, estimating isn’t an exact science. In fact, if it was an exact science it would be called a repair bill, not an “estimate.” Look at the cartoon with this article and tell me which one of the estimators is right. If you said, “All of them,” or “None of them,” you would be today’s lucky winner of a Popeil Pasta Maker. (Note to self: Add Pasta

Maker to this year’s Christmas wish list.) I hope this doesn’t insult anyone who makes their living writing estimates. My intent is to illustrate that any one of them could be right. The monkey was willing to do it for three bananas; does that make him wrong? To nobody’s surprise and to the delight of stockholders everywhere, the insurance company wrote the lowest estimate. If I were put on the stand, I could defend this estimate. It is a visual damage estimate without any tear-down. Does it make the insurance company wrong if there is additional damage behind some of those parts? That’s why it’s called an “estimate,” complete with a disclaimer at the bottom. I know that this article will result in some hate mail, but the fact is that it’s not an exact science and it’s wrong to say “the damage is the damage.” If that was the case, why does it cost more to have vehicles fixed at one shop compared to another one that’s a block away with the same labor rate? It is subject to opinion, experience, tear-down and a hundred other factors including whether or not it was raining out or 20 degrees below zero at the time of the estimate. By the way, those “other factors” apply to both repairers and insurers. I’m sure estimate accuracy at 4:45 p.m. on a Friday compared to 11 a.m. on Tuesday is worthy of another arti-

28 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

lift, tear-down, a thorough washing of the exterior of the vehicle, ample time, 3-dimensional measuring equipment, a preliminary pull if needed, updated estimating software, a live competitive parts database, an experienced flexible estimator, use of best-case repair scenarios, 75 degree sunny weather with no clouds, and of course 20/20 vision. If you were to have all of those things, you are guaranteed to get an estimate that gets you closer than the guess-estimate. So please stop using the term, “The damage is the damage.” If that was the case, don’t you think that Ron Popeil would have already simplified our estimating lives?

cle on Insurance Company Estimating 101. Here’s a good recipe to produce an accurate, consistent estimate. It should include a visual inspection, a

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.

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Continued from Page 27

Checker Auto Body

chaperone and driver for the local Catholic elementary school. The shop is also dedicated to preserving the environment, recycling all materials that are used in their shop. In discussing current trends in the collision repair industry, manager Bill

Goebel notes that a positive trend has been the improvement in the quality of aftermarket parts and the fact that parts delivery has become more streamlined. He is disappointed that the industry has not been keeping up with material inflation. “It seems that all the price increases seen in materials over the last five years have been left to the shop owner to absorb; however, on the flip

side, DRP involvement has also been more streamlined and less obtrusive. I think computer knowledge and improved communication has helped that aspect of our industry,” Goebel said. Additionally, customer expectations are quite high, even for lowcost repairs, while vehicles have become increasingly complex. Another problem is that many manufacturers are producing vehicles with proprietary SRS and ABS systems, leading to an increased cost for the consumer. Bill also notes that few young people are interested in the auto body repair industry. Noting that it is extremely rare to see a body technician under the age of forty, he believes shop owners must actively pursue the younger generation coming out of school or there will be a huge lack of qualified repair technicians in the future of the auto body repair industry. “Skilled labor is going to be very much in demand with no bodies to fill it.” Checker Auto Body employs seven people, including office staff,

who specialize in fiberglass, metal fabrication, custom paint and the repair of buses and motorhomes. The shop is 5000 square feet. In addition to thirty to forty body repairs monthly, the shop supplements their revenue through their tow truck, storage facility and paintless dent repair. As well, they offer a rebuilding service for totaled vehicles, and they possess a dealer license for wholesaling vehicles. Huntsville, AL’s Checker Auto Body is ASE-Certified and I-Car Certified, and they are also current with their EPA certification. They participate in direct repair programs with Alfa and State Farm Insurance companies. Their equipment includes a Kansas Jack Magna III frame machine, Uni-cured infrared paint booth, rotary lifts, Eagle II dent repair, Robinair Cool-tech A/C machine and Lincoln 140 mig welders. Bill also notes that smart phones have become a huge advantage during the past five years, providing help in regards to communicating with customers and allowing the shop to send photos and text information quickly and efficiently.

The shop uses BASF Diamont paint. They get a large mixture of vehicles, new and older models and various manufacturers. Bill Goebel claims “paint match will always be a challenge in this industry. The consumer does not understand that paint has a

Tech Josey Corum inside the shop’s paint booth

definite ‘life’ to it. Today’s vehicles can expect about ten years of paint life if the vehicle is left outside. We always let the owner know that there is going to be a difference in brand new paint and five, six or even ten-year-old paint. Once they know this up front, it is usually not an issue.” Checker Auto Body Repair, Inc. 6235 Mastin Lake Road NW Huntsville, AL 35810 256-489-0962 www.checkerautobody.com

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30 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

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The Honda and Acura Dealers Listed Here are H O N DA NEW YORK

NEW YORK

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Babylon Honda

Lia Honda of Williamsville

Hudson Honda

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Montgomer yville

631-669-5800

877-659-2672 716-632-3800

866-483-6917 201-868-9500

215-855-3587

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

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

Ray Laks Honda

Rossi Honda

Wes t S e n eca

Vinelan d

716-824-7852

800-893-3030 856-692-4449

Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com

Brewster Honda B re w s t er

845-278-4177 Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com

Dick Ide Honda R o ch e s t e r

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

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

NEW JERSEY

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

Coast Honda

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

S e a G ir t

732-974-8960 732-974-2211 Ext. 3

Lamacchia Honda S y ra c use

315-471-7278 Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com

Lia Honda of Albany Albany

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

Dept. Hours: M-F 7-5:30; Sat 7:30-4 jferrara@coasthonda.com

Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-1 joseph.sciacca@jlfreed.com

Mike Piazza Honda Langh or ne

215-702-2614 215-702-2615 Dept. Hours: M-Thur 8-8; Fri 8-5; Sat 8-4 ebayparts@piazzahonda.com

Shadyside Honda Pitt sburgh

973-705-9100

800-468-2090 412-390-2908

Dept. Hours: M-F 7-7:30; Sat 8-5 rt22hondaparts@route22honda.com

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

Sussman Honda

P ENNS YLVANIA

Honda of Princeton

Apple Honda

P r i n c et o n

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800-682-5941 609-683-5941

800-960-9041 717-848-2600

Dept. Hours: M-F 8-4:30 kphillips2@princetoncars.com

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

Honda of Turnersville

Baierl Honda

Tu r n e r s v i lle

Wexford

800-883-0002 856-649-1584

724-940-2006

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

J.L. Freed Honda

Roslyn

800-682-2914 215-657-3301 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com

ACU R A NE W Y O R K

NEW YORK

NEW JERSEY

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Acura of Westchester

Paragon Acura

Elite Acura

Wes t ch e s te r

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914-834-8887

718-507-3990

856-722-9600

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

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

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

866-50-ACURA 215-943-7000

Curry Acura

Smithtown Acura

S ca r s da l e

St. James

800-725-2877 914-472-7406

888-832-8220 631-366-4114

Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com

Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

Northeast Acura Latham

877-525-4029 518-785-4105 Dept. Hours: M-F 8-5 parts@northeastacura.com

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

P ENNS YLVANIA

Apple Acura

Lehigh Valley Acura E mmau s

Yo rk

877-5APPLE5 717-849-6639

877-860-3954 610-967-6500

Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com

Dept. Hours: M-F 7-5; Sat 8-5 mustafa@vinart.com

Acura of Turnersville

Baierl Acura

Sussman Acura

Tu r n e r s v i lle

Wexford

888-883-2884 856-649-1884

800-246-7457 724-935-0800

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

Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

NEW JERSEY

Jenkin town

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

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 33

Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

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NSF Certifies PartsChannel Under Automotive Collision Parts Distributor Certification Program Autobody News

NSF International has certified PartsChannel Inc. under the NSF Automotive Collision Parts Distributor Certification Program, a program that certifies distributors who sell automotive collision parts. The NSF Automotive Collision Parts Distributor Certification Program requires that distributors have quality management systems in place that address parts traceability, service and quality. The program helps close the gap in the supply chain between parts manufacturers and body shops and was developed in response to the needs of collision repair shops, insurers and ultimately consumers.

PartsChannel Inc., a distributor serving the collision repair industry since 1985, is one of the first companies to earn this automotive parts distributor certification from NSF International. To earn certification, PartsChannel Inc. demonstrated that it has effective records systems and inventory tracking systems to track orders and parts through the supply chain. PartsChannel Inc. also met the following criteria as required by the NSF automotive distributor program: ● an ISO 9001-certified quality management system, ● a parts traceability and inventory tracking system,

According to Consumer Reports, Subaru of America is recalling a small number of its 2012 Subaru Legacy sedans and 2012 Subaru Outback wagons due to an airbags issue. According to NHTSA, the cars have side air bags that might not deploy during a collision and increase the risk of injury to drivers and passengers. NHTSA says around 381 Subaru Outback and Legacy vehicles were manufactured last December with side air bag components that contain the incorrect propellant mixtures. The improper mixture in the

side curtain air bag initiators may prevent the safety devices from deploying during a collision. Subaru plans on notifying owners of these vehicles in early April. Owners will be instructed to bring in their vehicles to a local Subaru dealership where mechanics will replace one or both side curtain air bag initiators, free of charge. For more information, consumers can call Subaru’s toll-free customer support line (800-782-2783) and reference Subaru recall number WVZ-36 or visit NHTSA’s safety website: www.SaferCar.gov.

Subaru Recalling 2012 Outback and Legacy Models for Air Bags

NHTSA Investigating Chevy and Toyota Models for Power Windows

The National Highway Traffic Safety Administration has opened an investigation into 2006 and 2007 Chevrolet Trailblazers SUVs as well as 2007 Toyota RAV4 SUVs and Toyota Camry sedans for consumer complaints of the power windows switches on the driver’s door melting or burning. According to NHTSA, there have been 12 consumer complaints and other reports from General Motors of the master window switch on the Chevy Trailblazer melting. Several of the consumer complaints re-

March 2012

NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE

port the master power window switches have led to fires in the driver’s door. The door fires occurred while the SUVs were running as well when vehicles were left unintended and “key off,” according to the NHTSA. Engineers with the ODI and GM will investigate the issue further and determine if an official recall for 2006 and 2007 model year Chevrolet Trailblazer SUVs is warranted. Consumers can file a vehicle safety complaint with the NHTSA’s website, www.SaferCar.gov.

34 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

● a defective parts procedure including a customer part complaint process, ● the ability to administer a manufacturer’s recall, and ● when necessary, a formal corrective action to complaints and an immediate recall plan. “Launched in July as an extension of NSF International’s Automotive Collision Replacement Parts Certification Program, the NSF automotive distributor certification program certifies the ability of distributors, including PartsChannel Inc., to meet rigid performance standards including having an effective system to track orders and parts,”

said Bob Frayer, Director of NSF International’s Automotive Parts Certification Programs. “We are honored to be among the first in what we see as the most beneficial industry-wide program to help increase the professional standing of distributors,” said PartsChannel Inc. Chief Executive Officer John M. Palumbo. “We feel NSF International’s unique program, which continually monitors the stringent quality assurance processes within any parts distribution operation, will greatly benefit our customers.” For more information visit nsfautomotive.com.

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Gonzo’s Toolbox with Gonzo Weaver

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician

During World War II the US used a secret type of language to send and receive messages, so the enemy couldn’t find out what they were talking about. They enlisted the help of Navajo and Comanche Native Americans as radio operators. These guys used a combination of their language and relative terms as a way to disguise the real message over unsecured radio waves during World War II. Most of the coding was done by using a native word for each letter of the message. Such as, if you were going to say the word “ARMY” they would pick one of the native words that represented a word in English with the first letter “A” and the same for each letter after that. In other words the letter “B” would be sent over the radio waves as, “Toish-Jeh” which means, “barrel” in English. So the word “ARMY” would have been transmitted something like

this: “Wol-la-chee” (Ant) – “Gah” (rabbit) – “Tsin-tliti” (Match) – “Tsah-as-zih” (Yucca) Thus the word Army would have been spelled out and easily translated at the other end. A lot of times an entire phrase could be stated with one word, or a word that was often used had a selected native word that was used as a substitute. Then on other occasions an English word was thrown in just to confuse the whole thing even more. It was quite ingenious, and believe it or not, the code was never—ever—broken. To quote General Howard Connor (while at Iwo Jima), “Were it not for the Navajos, the Marines would have never taken Iwo Jima.” Trying to sound out those four Native American words (correctly) and translate it into the actual word was easy for these guys. They understood it, it’s their language and they

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could send/translate and relay an answer faster than any machine available back in the day. They truly were code talkers. So you might ask where am I going with all of this? Well, think about it, doesn’t this sound something like the codes we have with today’s cars? It does to me. I read a code, translate it into working data, and solve a problem, all with a language that isn’t understood by everyone out there. I guess you could call me a modern day code talker. The big difference is you’ve got people with hand held scanners they bought at a local store or from the internet, and have the ability to “read” a code. Or some of them have been to a repair shop that has bought a scanner and read the codes for them. But, they can’t break the code. They can’t determine what to do with the information they have in front of them. Think about it… it’s World War II, and you’ve just copied down a message from your secret hiding spot on the side of the hill. You are about to relay the message to your superior officers. But, you still haven’t a clue what that gibberish means. It’s like reading a code on a car these days, and not having a clue what all that information means. That’s where a qualified automotive technician, (aka code talker) is needed. I have lost count of how many times a car has come into my shop with a customer standing at the counter. They have already been somewhere else, and the other shop has given them an invoice with the codes and the definition written down on it, and more than likely a big “goose egg” in the charge column of the invoice. And they still haven’t had their problem resolved. “Oh I see they didn’t charge you to read the codes… how nice of them (said a little sarcastically I might add). So, you need me to find out what it all means right?” I’ll ask. “Yes, but I won’t need it diagnosed; that’s already done,” the customer will tell me.

Of course it’s already diagnosed, and you know what is going to happen next. I’m going to tell them there is a charge to trace out the actual problem and determine the reason for the fault code. Any tests that are needed or extra equipment needed to diagnose the problem is all incorporated into the diagnostic fee, which of course ends up with a customer just about to grab all their paper work and head out the door. Because, oh you know what’s coming next, “It shouldn’t cost anything to find out what’s wrong with my car, because I already had that done.” This is when I break into my “code talker” story and inform the customer of what the process takes to actually find out what that particular code means. “There’s everything from a compression check to TSB’s that need to be considered when it comes to diagnosing a problem,” I’ll tell them. Let’s face it, an oscilloscope ain’t cheap, and as far as I know they aren’t giving away these scanners, not to mention the hand tools, meters, and specialty equipment you’ll need to perform some of these tests. I realize that the code information to them sounds more like “Comanche” or “Navajo” lingo than it does plain English, but then, I’m a modern day code talker. I can read it, I can interpret it, and I can translate it into English. That’s what I’m here for. The next thing to do is make the customer aware of the level of sophistication that is needed to decipher these coded messages from the car. It still amazes me that there are still a lot of people out there who assume replacing a part will always solve the problem, and that intensive research isn’t necessary. I don’t know about you, but there are times when I have a car in the shop that looks like it is on life support with the amount of gadgets I’ve got hanging out of the hood or from under the dash, and it all started off with a simple code. (This is one of those times a cell phone or a camera comes in handy and sending a shot of See Code Talkers, Page 40

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 35

The Community-Focused Body Shop

Domenico Nigro is the president of Nigro’s Auto Body, a very progressive shop for their community in Philadelphia. In addition to many productivity innovations, Nigro’s installs equipment for disabled drivers, has developed several phone Applications, and represents products which directly support charities such as United Way and the National Breast Cancer Foundation. Contact him at: nigroautobody@comcast.net.

A Shop Owner’s Suggestions to Control Steering and Worse to Come with Domenico Nigro

Modern vehicles are complex and increasingly easily totaled; advances like anti-lock brakes and traction control have increased driver control, and increased consumer awareness has improved safe driving practices. This all translates into fewer repair jobs and collision shops must follow best practices to remain profitable. But what about business declines due to steering? Steering has existed since the beginning of the auto insurance industry and, while illegal, it may be here to stay unless something is done to change the awareness, standards within the industry and the laws that govern their behavior. Steering hurts both the shops and the customer, and if there is going to be progression in this industry, a solution must be found and regulations must be enforced. Good body shops are being forced out of business. Car owners are receiving sub par parts and service. A solution would benefit the entire industry and its customers. The shops trying their hardest to get work based on their reputation and work aren’t the only ones being affected. The customer is also affected by steering and it can be dangerous to more than the bottom line. Insurance companies can have agreements with shops and vendors where the car owner will get cheaper aftermarket or unexamined used parts, which can have hairline fractures or other structural issues that may be unsafe. Almost everyone agrees that this practice hurts the industry, but for decades no progress has been made to change it. Obviously a steered vehicle usually ends up at a DRP shop, rather than an independent one, and whether you see steering as good or bad depends on which type of shop you have. One reason there’s not enough opposition to steering is that the shops losing jobs are balanced by the DRP shops that benefit from it. Solutions must be evaluated and once one is agreed upon, implementation and enforcement must be carried out and monitored. So, what are the possible solutions? Unity Within the Community The auto body industry should come

together, DRPs and non-DRPs, as a community, to set a standard for repairs and claims. Standards for what procedures are covered must be made so that fair and accurate prices are charges industry wide. This level of communication and standard setting doesn’t currently exist and causes greater separation within the body shop community and resentment from non-DRPs who may not be able to match DRP prices because the influx of jobs coming to DRPs allows them to offer unnaturally low prices.

Change Method of Reporting a Claim Currently, the vast majority of claims are made over the phone. These phone calls often include a recommendation from the insurance company for a preferred DRP shop. Instead of phoning in a claim, improve the Internet claim submission process, so that the first steps of the claim can be done online and don’t require human interaction. This will eliminate the possibility that the car owner is manipulated into using a particular shop recommended solely by the insurance company. Another option is making the claim in person from the body shop of their choice. Instead of first calling the insurance agency, have the car owner call the insurance company after they choose a shop, and if possible, have them call from the shop.

Awareness We must let the car owners know that they do have a choice when it comes to who is repairing their car. The aggressive “recommendation” practices won’t intimidate or influence the car owner if they are aware that the practice is illegal, and by allowing the insurance company to influence their decision, they are partaking in illegal practices that can ultimately hurt the car owner.

Curtail DRPs, Stop Preferred Providers DRPs are the greatest source of friction between shops and insurers but worse could be on the horizon. “Preferred provider options” are proposed by the insurance industry to control costs by offering policyholders discounts in exchange for limiting their choices when

36 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

it comes to collision repair. Those limits include the use of specific repair shops and the use of aftermarket or non-OEM parts and sheet metal. If we eliminate DRPs we can start to re-establish free enterprise, allowing the best shops offering the most fair pricing and doing best quality work to get the job, which will restore a more natural flow within the industry.

Policy Changes and Regulation On a larger scale, the issue of steering can be addressed through legislation. Insurance agencies need to stop strong-arming their customers to take their car to a preferred shop which is an obvious conflict of interest. Steering is detrimental to free enterprise and doesn’t allow for the industry to react naturally to the laws of supply and demand. Just as the government created laws that regulate monopolies

that impede free enterprise, they can mandate changes to the auto insurance industry. Steering creates a whole set of problems that are in the consumers’ best interest to correct. Once a fair solution for all parties is reached, it must be followed up with enforcement. Insurance companies should be required to show full transparency when their customers report an accident. Monitoring will follow to ensure no shop is receiving unfair advantages and deals that exclude other shops or discourage free enterprise and will eventually be looked back upon as archaic, unjust and unhealthy. You can contact your local Representatives to let them know you care about this cause and ask what they are doing to fix the problem. Action must start from within, awareness needs to spread, and solutions need to be discussed.

Global Collision Uses Garmat USA Paint Spray Booths in All 8 Locations by Ed Attanasio

When you’re painting a substantial number of luxury cars every month in eight locations and many of them are top-name brands such as Bentley, Jaguar, Porsche, BMW, MercedesBenz and Aston Martin, you need to use the finest equipment and products available. By working with the best companies, hiring the best people and committing to best practices, Global Collision in Colorado is very happy with Garmat USA, a leading manufacturer of ecologically responsible, competitively priced, and code compliant paint booths, paint mixing rooms and vehicle prep areas. Global Collision’s Chief Financial Officer Tim Bator respects the Garmat booths for their reliability, versatility and easy maintainability, he told Autobody News. “We’ve established a great relationship with Garmat over the years. We have their downdraft booths and their regular paint spray booths in all of our locations. In the past eight years, we’ve purchased a total of 16, so we’re obviously committed to Garmat and appreciate their quality, service and support.” The 3000 Series spray booths that Global Collision uses are Garmat’s top-of-the-line downdraft spray booths. “We wanted superior airflow and the best lighting we could find. With ten foot-wide doors and a 27foot cabin, it’s easy to get even large cars in and out of the booth.” Being proactive about maintaining and regularly servicing his Garmat equipment is a big endeavor with so many locations, but Bator knows the importance of doing it right. “You’ve got to take care of your paint booths, just like you do with your car. We perform our scheduled maintenance on all our paint spray booths on a monthly basis, to ensure the longevity of the equipment. We expect 20-25 years of service out of these Garmat paint spray booths, so it’s a big investment and we want to protect it.” Bator appreciates the fact that when he has issues or questions with his Garmat paint spray booths, he can call directly on the manufacturer located in Englewood, Colorado to attain easy fast answers. “They’ve been with us from the beginning and they’ve been very supportive in getting the paint spray booths up and running and working properly. When we ask them for something, they step up and get it done for us. You can’t really ask anything more from a vendor.” Early in 2008 Global Collision made the decision to convert to waterborne paint after much thought and

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Operations Manager Tim Bator. “When we ask (Garmat) for something, they step up and get it done for us. You can’t really ask anything more from a vendor.”

consideration, George Lilley said. “This decision was not made lightly nor with great haste. The major concern to the environment is from the VOCs (Volatile Organic Compounds) which include the kind of solvents that are used in conventional paints. These solvents escape into the air thus contributing to air pollution.” The switchover to waterborne has been a big hit among Global’s painters. Bator explained, “We used the solvent for so many years because it was the industry standard. We switched for the environment and two months later we asked our painters what they thought. ‘We’re not ever going back to solvent—we love the waterborne!’ they told us. They were quickly up and running with the waterborne and the Garmat paint spray booths have worked perfectly since.” Global Collision prides itself on using an internationally accepted waterborne paint system that adheres to the strict environmental guidelines of the European Union and officially approved by numerous automotive manufacturers. All eight shops are fully adept at precisely mixing approximately 23,000 solid, metallic, and pearlescent colors while accurately matching all major current and classic vehicle colors. Established more than 10 years ago, Global Collision has grown rapidly since George Lilley started the company in 2003. With an extensive career in the collision repair industry, he founded Lilley Group-UK, and worked with the Haggie Group in Scotland, and the Royal Automobile Club of Victoria to Australia, to establish multiple shops. One of Lilley’s signature creations is his Flow Line production system,

which he used with great success in the United Kingdom and central Europe before bringing it to Colorado. “The efficiency of the shop is maximized with the Flow Line system, because all of the space in the shop is utilized completely,” Bator said. “This way we don’t need a 40,000 square-foot body shop to produce what we’re currently doing. With the paint booths in the middle of the shop, it allows us to push more cars through the system, which gives us better cycle times and makes us more attractive to our insurance partners.” “When I first came to America, I performed market research on the local repair industry and identified a considerable difference between the level of customer care; types of equipment, training and technology being used here compared to Europe,” Lilley said. “My goal was to gain a greater understanding of the American procedures and mentality and combine the knowledge with European standards. I am pleased to say that I have experienced a magnificent response from my American colleagues, and together we work successfully as a team to provide the very best the collision repair industry has to offer from around the world.” Above all, Bator explained, the key factor to the system’s success is the seamless, limited movement of each vehicle. “Strict quality control procedures are in place to ensure that each stage of the repair process is documented and accounted for. As a result of the Flow Line concept, vehicles are repaired more rapidly than the industry’s average downtime, providing customers with a more efficient, timely repair without compromising quality.”

Jake Shaw, Body Shop Manager (right) with painter Anthony Romero in front of Garmat USA 3000 Paint Spray Booth. Anthony says “He really likes painting in Garmat Paint Booths.”

Operations Manager Tim Bator (left) and Painter Dave Behlow of Global Collision. “In the past eight years we have purchased a total of 16 Garmat Spray Booths, so we’re obviously committed to Garmat and appreciate their quality, service and support.”

Garmat USA Phone: (800) 442-7628 email: sales@garmat.com website: www.garmat.com

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 37

Santa Clara CAA Hosts Parts Program Talk with Honda, Acura and Toyota Representatives CollisionLink online orders are faster and more accurate than other proRepresentatives from American grams, contributing to fewer returns Honda, Acura and Toyota were the while significantly reducing phone featured speakers at Santa Clara Calitime and improving cycle times. fornia Auto Body Association’s meet2) You can use OE parts more ing, held on February 15 at the Three than you think on Honda and Acura repairs, because they’re able to convert them more than 68% of the time. 3) By submitting a minimum of four estimates monthly into the CollisionLink for Honda repairs, shops can qualify for the manuFrom left: George Turk, Fixed Operations Marketing facturer’s Collision Select ProManager for Honda California Zones; Joe Stearns, gram, in which they can reap a Assistant Zone Manager for Parts & Services wide range of value benefits. Operations for the Acura Division; Toyota Wholesale Some of these include participaDevelopment Consultant Ruben De Loera; and Terry Banks, Dealer Operations Consultant for Toyota. tion in the carmaker’s online Turk and De Loera spoke about their respective dealer locator; linking the memautomaker parts programs. ber’s shop to a web page that gets Flames restaurant in San Jose, Calif. 6,000 to 8,000 hits daily and the supWith more than 50 chapter members port of Honda’s dedicated national in attendance, George Turk, Fixed field staff, which includes offering inOperations Marketing Manager for shop training and other forms of busiHonda’s California Zones, spoke first ness consulting and support. To about CollisionLink, an OE Parts Ordering system devised and maintained by OEConnection, a technology company offering an original equipment (OE) replacement parts solutions. OEConnection connects more than 32,000 North American buyers and sellers to handle roughly 6 million OE part transactions every month. From left, 2012 SC-CAA President Randy Greenblatt CollisionLink is used by carmak- with David Mello (Owner Anderson Behel Body ers such as Ford, GM Nissan, Shop in Santa Clara) and Miguel Espana (Owner VW, and Mazda, in addition to of Espana’s Body Shop in San Jose), celebrating the aforementioned Honda and Mello’s Member of the Year award presented by the CAA. Acura. qualify for this coveted program, body Turk stressed three notable things about his company’s program and dis- shops must also participate in one of tilled it down into a discussion that the big five paint programs, offered by BASF, PPG, Sherwin-Williams, targeted the most important aspects: 1) Sikkens Acoat or DuPont, Turk outlined. More and more body shops are tapping into Honda’s Collision Select to access all of the added features of the exclusive program, Turk explained. “This Select program is a lot more than just price matching parts. We want to help your business on several levels and Collision Select has been designed by Honda to do exactly that. We offer marketing and an From left, Steve Sturken (Owner of Sturken Auto online presence and we make ourBody in San Jose) Shawn Saidi (Owner of Active selves available all the time to asAuto Body in Mountain View) and Alex Ornelas, sist and consult our body shop (Parts Manager at Palo Alto Magnussen’s Toyota) members. The main objective is to are celebrating Saidi’s award commemorating his role as the SC-CAA’s President in 2011. incorporate more OE parts into by Ed Attanasio

38 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

an easy-to-understand step-by-step explanation. It’s as simple as: 1) Logon 2) Process Order 3) Validate 4) Create a Quote and 5) Complete order. He also briefly instructed them on how to get credit for ordering aftermarket parts with their insurance companies that require a certain percentage of aftermarket parts in their repairs. “It’s essentially a line in the estimate that notes the fact that OE parts were used, even though they can qualify for aftermarket parts price-wise through our program,” De Loera exChilton’s Auto Body was well-represented at the plained. “Each platform has a difSC-CAA meeting. From left, San Carlos location ferent entry area for this function, Manager James Burbank; Owner Mike Chilton and but all are contained within a Burlingame Manager Bobby Carter were on hand. comments/notes section. Once tem that enables body shops to tailor you can identify it, the rest is easy.” De Loera said that with certain its parts ordering process while easily types of crash parts, such as front incorporating more OE parts into their Toyota repairs. Launched three years bumpers and rear tail lights, Toyota is very competitive and can customarily ago, PartsBridge contains 7,600 parts match the aftermarket on those types in its system with a conversion rate of of parts. With parts like air condition70% on all parts that qualify. ing condensers, radiators, wheels, De Loera gave a quick tutorial on doors, hoods and fender liners, it is a how to use Toyota’s PartsBridge by taking the submission process through See Parts Presentation, Page 40

your repairs, but that’s only the beginning.” Veteran Toyota Wholesale Development Consultant Ruben De Loera then spoke to the SC-CAA membership about Auto PartsBridge, Toyota’s electronic parts ordering sys-

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Continued from Page 38

Continued from Page 35

little more difficult to match the aftermarket parts. “We will always try to get you better pricing whenever we can, so that you know where you stand and make your own educated decisions,” De Lorea said. Both speakers wanted to stress the fact that both programs cost body shops absolutely nothing. “The dealerships pay the freight, so why not give it a try if you haven’t already signed up?” De Lorea said. “Toyota goes the extra mile to help its shop customers and this is a prime example of those efforts.” Upcoming events for the SC-CAA chapter were announced at the meeting. On April 18, CAA will once again hold a Legislative Day in Sacramento and the chapter’s next meeting will be held in San Jose on April 25. The chapter also announced that they will once again be hosting their Industry Trade Faire, with a date to be determined and slated for the summer.

the owner’s car to them so they can see what you’ve had to do to locate the cause of that simple code number.) I’m a modern day mechanic; I’m no grease monkey, nor am I the guy with a scanner who’ll read your codes and give you the definition. I’m the guy who will read the code, define it, and translate it into a solution. The cars of today are not the car of yesterday—nor are they the cars of the future. I’ve got to take care of what is here now, and that requires some understanding of the fundamentals of todays’ cars. But in order to find out what that little service light means on your dash keep in mind…you don’t need a code reader, you need a code talker.

Continued from Page 6

bers strictly follow proven methods of collision repair. Remember; shops are the professional experts assuming the ultimate liability for the repair. “ Orso added, “The right thing to do is for insurers to issue an immediate recall to any consumer concerning any vehicle repaired with aftermarket safety parts. Insurers must be held accountable for all the costs of re-repair, and the consumer must demand refund for those who paid an additional premium for the use of OEM parts or those who paid any difference to repair a vehicle with OEM parts. The aftermarket industry needs to establish a formal recall system FOR these parts if and when they are used. The vehicle should have permanent label affixed alerting future owners and passengers that the vehicle has been modified and safety could be affected.” Kizenberger also said, “For the future consumers can avoid this situation by only doing business only with those shops who are members of NYSACTA that have publicly adopted a Professional Code of Ethics or at the very least, is advocate for the consumer’s right to a proper repair using approved OEM parts and procedures.” For more information please visit www.liabra.org.

Parts Presentation

NYSACTA

due legal liability on the repair shop.” Orso went on to say, “the rules are: Repair or Replace the vehicle after a crash. Meaning; return the vehicle to pre-loss condition. One issue here is that; there is no recall system in place to warn consumers that their vehicle may be unsafe to drive or that their families safety is in unknown, unpredictable peril should a repaired car be involved in a another crash. Consumers should call their repair shop or check their collision invoice to identify what parts that may have been installed that are aftermarket. NY State Law requires shops to note the status of parts used in the repair, i.e. New, OEM, Used, Aftermarket, Reconditioned or Repaired.” Ed Kizenberger, NYSACTA Executive Director said, “Already some insurers have announced they are discontinuing to specify aftermarket safety parts. Maybe they’re learning from the Toyota situation? We will be alerting our members, the media and state representatives in the Legislature to this matter. We have always been a proponent of following OEM guidelines and recommend our mem-

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40 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

Honda Recalling 2008 and 2009 Odysseys for Liftgate Struts American Honda Motors issued a recall for 45,747 of its 2008 and 2009 model year Odyssey minivans equipped with the power rear liftgate option on February 22. According to Consumer Reports the gas-filled struts used to open and close the rear hatch are flawed and may fail to support the lifted door, quoting a report done by the U.S. National Highway Traffic Safety Administration. According to NHTSA, the flawed struts may leak pressurized gas which is needed to keep the large liftgate in the upright position. The defect can lead to unexpected closures

of the rear gate, increasing the risk of injury to drivers and passengers who may be under the vehicle's open hatch as the struts deflate. Honda has identified this recall as S22 and will begin notifying its minivan owners affected by this safety recall in March. Mechanics at local dealerships will inspect and replace both liftgate gas struts in the affected Honda Odyssey vehicles free of charge. For more information, consumers can contact Honda's toll-free customer service line (800-999-1009) or visit the NHTSA website: www.SaferCar.gov.

AASP-PA to Hold Quarterly Board Meeting

The Alliance of Automotive Service Providers of Pennsylvania (AASP-PA) will hold a Board Meeting on Friday, March 9, from 10:30 a.m. to 4:30 p.m. at the AASP-PA Office in Harrisburg, PA. The Board Meeting is being held for all Executive Board of Directors. Then on Saturday, March 10 from 8:30 a.m. to 3:30 p.m. at the Radisson Penn Harris Hotel in Camp Hill, PA, the association will hold their Quarterly Meeting for all Board,

Delegate, and Staff members to attend. For more information about either meeting please visit www.aasppa.org.

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Separate Arizona Bills: HB 2394 “Strikes Everything” on Unlawful Practices Language for Repair Shops; SB 1134 Requires Changes to Handling of Unearned Premiums by Insurers A proposed bill that would have changed the way collision repair shops in Arizona do business has been held over to the next legislative session. House Bill 2394, introduced by state Rep. Nancy McLain (R-3) in the Arizona House of Representatives, would have had a negative impact on auto body shops throughout the state with the original text. The bill used to read (key language in bold): It is an unlawful practice for a person who repairs motor vehicles to knowingly: Submit a false claim to an insurer for motor vehicle repair. Submit a claim to an insurer for fees not directly related to the repair of the motor vehicle unless required by law. All fees not required by law must be posted by the motor vehicle repair facility. The motor vehicle owner or lessee must acknowledge in writing that any fees that are not directly related to the repair of the motor vehicle or required by law may be the owner’s or lessee’s responsibility.

Submit a claim to an insurer for storage fees incurred up to the time the motor vehicle was determined to be a total loss if the motor vehicle repair facility was paid by the insurer for tear down or repair services. Storage fees may accrue from the date the insurer determined the motor vehicle to be a total loss. Supporters of the language sought to stop shops from charging storage fees at the same time collision shops were being paid for teardown to complete an estimate. This bill would have forced shops, in many situations, to absorb the costs associated with vehicle storage or bill it to the vehicle owner. The harmful language is not included in the current bill being considered. ASA-Arizona opposed the bill with the unlawful practices language. ASA alerted member shops about the proposed language and worked with the legislature to ensure the bill did not move through the legislative process as introduced. H.B. 2394

passed the House Committee on Banking and Insurance as a “Strike Everything” amended bill. A “strike everything” amendment (also called a “striker”) proposes to delete the entire text of the existing bill and substitute new language, essentially making it a completely different bill. ASA supports legislation that protects the consumer’s right to be fully indemnified under the terms of their insurance policy and is opposed to any type of fraud whether it is initiated by a repair shop or an insurer. The vehicle owner has a right to know all charges that he or she may be responsible for in the repair process. ASA believed the proposed legislation overreached, harming both consumers and repairers. Arizona repairers are encouraged to join ASA’s effort to ensure their voice is heard at the state capital and in Washington, D.C. Unearned Premiums Language When insurance policies are cancelled

before the end of the policy period, several types of premiums are calculated. An earned premium is that portion of the policy period that the insurance has been in effect, and during which the insurer has been exposed to liability or loss. An unearned premium is the portion of the overall premium which is no longer due to the insurer. It is the written premium minus the earned premium. The unearned premium is to be returned to the insured, if the policy is canceled, using a pro rata cancellation method when the policy is cancelled with no penalty. Arizona’s SB 1134 has amended the unearned premium language in the statute to specify terms of refunds of unearned premiums: “the insurer shall either mail the notice and refund of unearned premium together at least ten days before the effective date or mail the notice before the refund of unearned premium if both the notice and the refund of unearned premium are mailed separately to the insured at least ten days before the effective date.”

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Supreme Court Allows Lawsuits on Lack of Safety Equipment

The Supreme Court has reversed course and ruled that the nation’s automakers can be sued for failing to install the most-effective safety equipment in their vehicles. The unanimous decision on Feb.23 clears the way for a California man to sue Mazda Motor Corp. because his family’s 1993 minivan did not have a lap and shoulder belt in a middle rear seat. Judges in California had thrown out his lawsuit, citing a Supreme Court ruling in 2000 that shielded automakers from lawsuits for their failure to install air bags immediately in all their vehicles. In a surprise outcome, the high court reversed the California courts and cleared the way for Williamson’s lawsuit to proceed. Its opinion also backed away from its earlier view that the federal motor-vehicle safety law blocks most safety-related lawsuits against automakers. Justice Stephen G. Breyer described the federal safety regulations as setting forth only “minimum standards,” not the “maximum standards” required by law. Lawsuits from injured motorists can play a “continued meaningful

role,” he added, by requiring automakers to go further in seeking safety. Breyer explained that air bags had posed a different issue because, at the time, federal safety regulators did not want mandatory installation of air bags because of early doubts about their effectiveness. By contrast, he said, federal regulators had no objection to automakers installing lap and shoulder belts for all seats. It is not clear whether the decision in Williamson vs. Mazda will open a door to many more successful suits against automakers. Much depends on the specifics of the federal motor-vehicle safety regulations. But the outcome is a surprise nonetheless. In recent years, the high court led by Chief Justice John G. Roberts Jr. has regularly sided with corporations and blocked many lawsuits. In this case, however, the justices took the view that lawsuits filed by injured people can lead to safer products. Moreover, these suits are not blocked simply because the federal government regulates the product at issue, they said.

CARSTAR Holds Results and Goals Teleconference

CARSTAR held their annual outlook teleconference on February 9; CEO of CARSTAR Auto Body Repair Experts, David Byers, detailed the 2011 results for the MSO as well as their goals for 2012. According to Byers, 2011 was a “very solid” year for the MSO; sales totaled over $600 million and exceeded the group’s objectives for the year. 2011 was also a big year for continued growth and acquisition of new locations, which will also continue to be an objective for 2012. “We have acquired 17 new locations in the last few months,” said Byers. CARSTAR plans on focusing on growth in California especially for 2012. Byers also said that the new stores that were acquired in 2011 were very successful—seeing 50 percent higher revenues than stores acquired in 2010. Byers also said that changes coming for 2012 will “set the stage for growth.” In 2012 CARSTAR plans to grow existing store revenues and profits, add new stores especially in California, add new MSO insurance relationships, and fully deploy

CARSTAR solution, the group’s new management system in partnership with Mitchell. The MSO aims to add 50 new US stores in 2012. CARSTAR did have a presence in California in the early 90s, but it did not last. Byers said that he thinks this current expansion into California will be more successful because CARSTAR now has an insurance department and a purchasing department which make the company more stable. Byers said the way CARSTAR is now is “a dramatic difference over where we were in the early 90s.” Byers discussed the affect this mild winter has had on locations that normally see an increase in repairs due to winter weather. He said although the mild winter has clearly affected business across the US, CARSTAR depends on KPIs and DRPs to continue driving its business. “The industry...has seen a softening in the third quarter of 2011 into this year” due to the absence of inclement winter weather, according to Byers. For more information about CARSTAR visit: www.carstar.com.

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U.S. DOT Releases Guidelines on Distracted Driving

Automotive News reported that the U.S. Department of Transportation released its long-awaited guidelines on distracted driving on Feb 16, calling on automakers to disable applications that allow drivers to manually access social media, surf the web or send text messages while on the road. The recommendations also seek to prevent any in-car technologies that require drivers to use both hands or take their eyes off the road for more than two seconds. “Increasingly, data shows that as technology evolves, cell phones aren’t the only potential distraction in vehicles,” said Transportation Secretary Ray LaHood, who has made distracted driving his signature safety issue. “Many carmakers are now developing in-vehicle electronic systems that can give directions, post to social networking sites and search the Internet.” Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, said the trade group is generally supportive of the agency’s guidelines.

“They’re based on guidelines we developed 10 years ago,” Bergquist said. But they also go further to address other emerging technologies, such as those involving social media, she added. But the Alliance, which represents 12 major carmakers, is concerned that the disability technology won’t be well received by consumers, Bergquist added, “they’ll just use handheld devices.”

Chinese Govt Automaker Plans Ford F-150 Clone

China’s Jianghuai Automobile Co. plans to unveil a pickup at the Beijing auto show in April that adopts many of the exterior design details of the Ford F-150, The Detroit News reports. The JAC 4R3 shares the F-150’s grille, hood and extended cab, and it adopts Ford’s distinctive blue oval. Ford Motor Co. has not yet decided whether to take legal action against JAC, which is Chinese state owned, according to the newspaper.

China Opens Vehicle Insurance Market to US Insurers China has agreed to open up its mandatory third-party liability motor vehicle insurance market to foreign insurance companies, according to general counsel for the U.S.-China Strategic and Economic Dialogue. David F. Snyder, American Insurance Association VP said the necessary policies and regulations needed to implement the agreement are being worked on. “This is a significant step forward as it represents the result of several years of diligent work by U.S. and Chinese negotiators,” Snyder says. He adds that the AIA has been working on this issue for several years. “We appreciate the high-level commitment of the negotiators and view this as a major milestone,” Snyder says. He explains that the development “will be of mutual benefit to the Chinese people and U.S. insurers entering the market,” and he adds, “We encourage market access be granted in a timely manner.” Snyder says the AIA will continue to work to promote access to other sectors of the Chinese insurance market because the association “believes it is critical to China’s longterm domestic objectives of continued

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economic development and improving the quality of life for its citizens.” “This development will bring more choice for Chinese motorists, increasing competition and improving service for consumers in this major global auto market,” said Robert Gordon, PCI’s senior vice president of policy development and research. He says, “This achievement is the result of tireless efforts by U.S. trade leaders and will provide a critical foundation for China’s continued economic growth.” Promulgation of the necessary policies and regulations needed to implement the agreement are being worked on, according to Snyder. He explains that the development “will be of mutual benefit to the Chinese people and U.S. insurers entering the market,” and he adds, “We encourage market access be granted in a timely manner.” Snyder says the AIA will continue to work to promote access to other sectors of the Chinese insurance market because the association “believes it is critical to China’s longterm domestic objectives of continued economic development and improving the quality of life for its citizens.”

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AASP-Pennsylvania Tech Training Coming March 24–25 The Alliance of Automotive Service Providers of Pennsylvania (AASPPA) will hold their annual weekend training seminars on March 24 and 25 at the Holiday Inn in Grantville, PA. The weekend training seminars will run Saturday and Sunday with Saturday night entertainment provided by comedian John Carfi following the close of afternoon seminars that day. John is a comedian who started out his career at the Comedy Store in LosAngeles. John’s show consists of 45 minutes of clean and individual material; he has been entertaining audiences for over 20 years. The weekend is broken into 2 types of seminars, management and mechanical. The schedule for management is as follows: Saturday, half day, 8:30 a.m. to Noon

Creating Raving Fans for your Business by Chris Chesney, Senior Director, Professional Markets, CARQUEST In this class, you will be asked to get out of your box and run far away from it in order to take your customer service to new heights. You’ll be exposed to principles of customer service that

will make your existing customers rave to their friends who will in turn want to come see for themselves. Saturday, half day, 8:30 a.m. to Noon

Maximizing Customer Retention by Dan Gilley, RLO Training This workshop will focus on methods of gaining back valuable clientele. Steps to recover the lost business and plug potential leaks are laid out for service advisors and shop owners to utilize. Discussion covers body language, facial and tonal cues that the Advisor must be aware of, key points in developing the skill to catch a problem at the counter rather than letting a customer walk away never to be heard from again. The objective is to regain and maintain the confidence and loyalty of potentially lost customers. Saturday, half day, 1 p.m. to 5 p.m. Prospering in the Auto Repair Business by Dan Gilley, RLO Training You will learn to identify profit leaks in the area of parts and labor, improve customer awareness and loyalty, and increase car counts and sales per re-

pair order. Additionally, you will learn business building marketing strategies guaranteed to set your business far apart from that of your competitors. Sunday, half day, 8:15 a.m. to Noon

Winning Women Customers by Margie Seyfer With fifty-one percent of our population being female, you are also aware that the majority of your customers are women. What do women customers want? Are you cashing in on their loyalty, unending referrals and wealth? What specifically are you doing to gain their trust? Sunday, half day, 1 p.m. to 4 p.m.

Calming and Retaining Angry Customers by Margie Seyfer Everybody gets angry! It’s a normal emotion. The way we handle customer complaints and outbursts of anger can make the difference between either losing or retaining the customer’s business. This training provides an understanding of what triggers anger in customers and what customers really want when they are upset.

Mechanical Seminars: Saturday, half day, 8:30 a.m. to Noon

Advanced Electronics: Automotive Solid State Electronics course including Sensor Simulation and Circuit Emulation Electronics by Dave Scaler, Mechanics Education Association This course is designed for the Electrical Student looking to advance their skills on the operation and testing of solidstate components. Often when a diagnosis is made, the price of the part can make a technician uneasy about their diagnosis. Many times the wiring diagram or service information does not tell us what actually happens INSIDE a component or a control module. This class will show how through an understanding of solid state circuits we can help to make a “risk assessment”, so if we want to try alternative tests other than to just replace a component, we will explore how to do it right, or blow it up. Saturday, half day, 8:30 a.m. to Noon Shell Lubricants Instant Expert Information Session by Derek CarSee Tech Train, Page 63

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Study: 96% of All Repair Shops Recycle Scrap Metal Auto repair shops are playing a key role in protecting the environment with 96 percent reporting they recycle the scrap metal from automotive components, according to a study done by the Automotive Aftermarket Industry Association (AAIA). Shops are recycling the scrap metal from many auto parts, including alternators, brakes, engines and transmissions. The volume of material recycled annually in the United States includes 74 million metric tons of iron and steel, 4.7 million metric tons of aluminum and 1.8 million metric tons of copper, according to the Institute of Scrap Recycling Industries (ISRI). “Scrap metal recycling has an extremely positive impact on our environment,” said Rich White, senior vice president, AAIA. “It conserves natural resources, reduces greenhouse gas emissions and air pollution, saves energy and minimizes the amount of waste sent to landfills.” According to ISRI, recycling one ton of steel conserves 2,500 lbs. of iron ore, 1,400 lbs. of coal and 120 lbs. of limestone, and the energy saved using recycled materials versus virgin materials is up to 58 percent for iron and steel, 92 percent for aluminum

and 90 percent for copper. If the ferrous scrap that is recycled in the United States were put into rail cars, the train would stretch 11,349 miles, nearly halfway around the world. In addition to recycling scrap metal, automotive aftermarket companies, including auto repair shops, manufacturers, distributors, retailers and jobbers, routinely recycle tires, batteries, used oil and oil filters, parts cleaning solvents, plastics, cardboard and paper, a/c refrigerant, dunnage and wood pallets. The study is part of AAIA’s initiative to illustrate the automotive aftermarket industry’s widespread efforts on behalf of the environment. The information is presented in AAIA’s “Driving Toward a Cleaner Environment: The Automotive Aftermarket’s Green Story,” in the short video, AAIA Green, and in a Green Snapshot. For more information, visit www.aftermarket.org/green. AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies. AAIA represents more than 100,000 repair shops.

This Year’s Chicago Auto Show Used New Media Technology

The Chicago Auto Show (CAS) used a series of unique and creative social media events and formats to inform and engage attendees at the 2012 show, which took place February 10–19, 2012. It is the first auto show in the U.S. to use such a complete package of social and digital media, highlighting the importance of these mediums for consumers and attendees. “We’ve used various forms of social media before, but we realized that we could do so much more than any other show to engage social media and excite consumers,” said Dave Sloan, President of the Chicago Automobile Trade Association. “In order to create this unique package, we hired Vivid Ascent, an integrated marketing agency that specializes in social and digital media. We have partnered with them to leverage their social media, video and creative skills in a way we have not seen in other U.S. auto shows.” Some of the unique social and digital media programs that were used in this year’s show included: 1. Daily “Webisodes” that share updates of special programs, contests and events that will be highlighted on the CAS website and distributed to social media

2. A “First Look for Charity” menu tour for food bloggers and digital influencers that cover the Chicago food industry previewing the show’s annual charity event that is open to the public 3. A Blogger Sweepstakes specifically designed for bloggers to invite their readers to win an exclusive auto show experience 4. Facebook photo contest, called “How Sweet is Your Ride?” allowing followers to upload photos of themselves with their favorite vehicles and vote for the winner, who received a VIP Package 5. A special Foursquare page for checking in at the show 6. A Social Media Day for digital influencers and bloggers to preview the event before the public 7. A Drive-In Program designed for select digital influencers and bloggers to evaluate new vehicles BMW Parts Original 8. Unique Digital Media Releases containing video and digital assets providing news updates throughout the show bmwusa.com 9. Twitter updates providing realtime news and information throughout the show Original BMW Parts “We wanted to make this year’s show more exciting for the attendees,” Sloan continued. bmwusa.com

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Insurance Auto Auctions to Sell Salvaged Vehicles Directly to China, Could Impact U.S. Supply

Insurance Auto Auctions (IAA), a wholly owned subsidiary of KAR Auction Services, announced an agreement with Chen Jia, which will import U.S. salvage vehicles to China for recycling. This is expected to impact the number of salvage vehicles available to U.S. rebuilders and repairers. Chen Jia is a wholly owned subsidiary of Jiangsu Chenlong Resource Recycling Development Co. Ltd. in Zhangjiagang, Jiangsu, China. Chenlong Recycling is one of the first companies to obtain one of only a few recycling permits from the Chinese government, IAA said. “This agreement helps us achieve our growth strategy by expanding our global buyer base in a region with a fast-growing need for scrap metal,” said Tom O’Brien chief executive officer at Insurance Auto Auctions, Inc. “We are pleased that our long relationship with Chen Jia has added tangible value for vehicle sellers at our auctions. Their initial purchases at our locations along the West Coast have already created increased competition for vehicles and may eventually expand throughout the greater United States.” In 2008, when IAA first met with Chenlong Recycling in China, plans were drawn for them to build a multimillion dollar recycling center in Zhangjiagang. Today, the recently completed facility is capable of processing hundreds of thousands of tons of scrap iron. They are the first in China to complete the installation of a shredder built specifically for the processing of scrap steel that includes automobiles coming from the United States and other countries. Through this new agreement, IAA has the ability to be a major salvage provider to this operation - specifically, lowerend vehicles for the purpose of recycling. “There are several reasons why we chose IAA, including their 30 years of expertise in the salvage aucwww.autobodynews.com tion business and their global outlook,” said Gu Sheng, President CHECK ITLong OUT! of Jiangsu Chenlong Resource Recycling Development Co. Ltd. “The management team at IAA has been dedicated to seeing scrap vehicles legally enter the China market and their support of our efforts has been both encouraging and instrumental in To advertise helping us shape our business model the U.S. Second, IAAat: is clearly a callinAdvertising Sales market leader and our relationship 800-699-8251 with them will help ensure our ability e-mail: to source the salvage vehicles we advertising@autobodynews.com need to meet our production demands.” www.autobodynews.com One of the best results of recycling metal from salvage vehicles is

California Attorney Wins $10,000 Claim v. Honda

A non-practicing California attorney that it saves energy, conserves natural won nearly $10,000 for herself in her resources, and enables steel producsmall claims suit against Honda tion with low pollution levels. Acclaiming the company knowingly cording to the Institute of Scrap misrepresented the mileage she Recycling Industries, recycling one would get with her Civic Hybrid. car conserves 2,500 lbs. of iron ore, The Small Claims Court lawsuit is 1400 lbs. of coal and 120 lbs. of limeunusual in that some legal experts stone. Until recently, Chinese governbelieve it could change strategies for ment laws prohibited the import of both Small Claims Court and classsalvage vehicles from the United action litigation. A Los Angeles States into mainland China. Today, County court commissioner ruled this recycling project is supported in that American Honda Motor Co. China by the environmental protecnegligently misled Civic owner tion body of the Chinese government. Heather Peters when it claimed the For the past 30 years, Insurance hy brid’s gas mileage could be as Auto Auctions has continued to demuch as 50 miles per gallon. Honda velop and cultivate a mature and had offered a couple hundred dollars global customer buyer base in more and a $1,000 voucher toward the than 100 countries. Its buyers include purchase of another Honda vehicle automotive body shops, rebuilders, to complaining customers who parused car dealers, automotive wholeticipated in a class action lawsuit. salers, exporters, dismantlers, recyHonda says they will appeal but clers, brokers, and where allowed, many more owners of the 2006 Civic non-licensed (public) buyers. Hybrid may be going the small IAA buyers have access to six claims route. languages through IAA's Auction Some say Peters is suing the Center including: English, Mandarin wrong party, since EPA oversees the Chinese, Spanish, French, Polish and mpg ratings and Federal law requires Russian. In addition, the IAA Buyer them to be used. Five states’ AGs Services group is fluent in 10 lanhave asked for more time to consider guages to assist global buyers. An esthe settlement with 200,000 owners. timated 30 percent of IAA’s vehicles are sold and exported to foreign countries, which further strengthens its philosophy of choice and flexibility with “anywhere” access and mobile technology. Right Part. IAA’s business model includes Right Now. in-person and online auctions. IAA offers clients access to a comprehensive salvage auto auction network, and allow them to purchase in a manner that best suits their needs. IAA aims to offer end-to-end solutions and standardized quality assurance practices at its nearly 160 locations. IAA experts are on hand at each branch location to assist buyers and sellers. IAA follows strict regulatory Give us your onstate matters affecting the industry. compliance at theopinion federal and levels and is well versed in all state titling laws as well as buyer and seller licensing. Pennsylvania For morepublisher@autobodynews.com information visit Lehman Motors www.iaai.com. MECHANICSBURG

There is a new tow for pay scam going around and several shops have contacted ABN to alert us. The scenario described by fax and possibly email is that their car needs to be towed from another state to be fixed at your shop. But they need you to pay the tow bill before the car can be delivered. One shop received two faxes (in two different fonts) from someone calling himself “Evangelist Jerry Bratt” saying his wife had an accident in a 2007 Cadillac Escalade on her way to Kansas. And of course it asks that you only email him. And he’ll be paying cash. And of course you need to pay the bill. The fax asks for the address of your shop. The last time this went around shops were expected to pay a tow bill over a $1000 and they tell you the “wrecker” will only accept a money gram. Maybe also a request for a credit card. Don’t fall prey but alert us if you receive this fax. The sending fax number is/was 202-204-0669, a number traced to Washington, D.C. We don’t know if there is a real Jerry Bratt, or whether or not he is an Evangelist.

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U.S. Auto Industry Bullish on 2012, Sales up 11%

2012 is off to a good start for the U.S. auto industry as reported sales for January outpaced the best industry forecasts. Sales overall were up 11% at an annualized rate of 14.2 million units, the best since August 2009. Chrysler Group was up 44% and Ford Motor up 7.3%. GM sold the most units but sales declined 6%. VW Group was up 40%. The disasters in Japan seem to be digested with Mazda up 68%, Toyota up 7.5%, Honda up 9.3% and Nissan up 10%. Hyundai-Kia is up 20%.

California Law Demands More Low Emission Vehicles

The California Air Resources Board (CARB) called for a steep ramping up of zero- or very low-emission vehicles sold in state from 2018 onward. The goal is for them to comprise 15.4 percent of all vehicles sold by 2025, up from less than 1 percent today. The ruling called for a slashing of tailpipe emissions from the rest of the passenger vehicle population beginning sooner in 2015 and extending through 2025. At least one of every seven vehicles sold will be a plug-in hybrid, extended-range electric vehicle or pure battery-electric vehicle, or BEV.

Chevy Volt Sees Stalled Momentum, Also Optimism

The Chevy Volt hasn’t quite caught on as expected by many. Although GM has plans and could produce as many as 60,000 Volts in 2012, GM will adjust production at the Hamtramck plant in Detroit to meet demand. Of the planned 60,000, about 75% or 45,000 are for the U.S. and the rest for Europe, built as the Opel Ampera, and China. GM has said they still don’t have a clear sense of how much demand there is for battery-electric vehicles. the government closed its investigation of post-crash fires in Chevrolet Volt batteries after further testing proved the changes General Motors has implemented better protect the batteries. GM announced in early January that it would retrofit 14,735 Volts already built and make permanent changes on the Volt assembly line at the DetroitHamtramck plant. In January GM boss, Dan Ackerson, faced Congress to defend the car and calm safety concerns. He also firmly stated that the car was engineered with plenty of technology and safety but was “not engineered to be a political punching bag.” GM is running full page newspaper ads and TV spots in a reputationrebuilding effort for the Chevy Volt.

Mazda 3 ‘11

MOPAR Celebrates 75th Anniversay, 4 New Models

Feds Escalate Jeep Airbag Investigation

Honda’s Ridgeline Recall

Second Toyota Driver’s Door Fire Probe Launched

MOPAR, Chrysler’s parts division, celebrated it’s 75th anniversary at their Performance and Accessory Lab in Center Line, MI with famous drag racer, “Big Daddy” Don Garlits blowing out the candles on the cake. MOPAR’s first branding was on antifreeze in 1937. Inspiring a great deal of loyalty, there are more than 400 MOPAR clubs worldwide. Four new special edition Mopar vehicles were unveiled, including the Chrysler 300, Fiat 500, Jeep Compass and even the 2013 Dodge Dart, not in showrooms yet.

Honda is recalling certain 2011–2012 Ridgeline vehicles for a discrepancy between the spare tire and the information on the vehicle’s tire information label. Honda Ridgeline trucks sold in the United States are fitted with a compact spare tire and, in some cases, placards may incorrectly indicate that the Ridgeline came with a full-sized spare tire. Honda will either provide Ridgeline owners with a spare that will match the information provided on the vehicle’s placard or it will install a new placard that reflects the spare tire installed by the factory. Tire pressure may not be correct.

The Jeep Liberty SUV is getting greater scrutiny from Federal safety regulators after 50 people reported they were hurt when the air bags inflated without involvement in a crash. The NHTSA started investigating Liberty SUVs from the 2002 and 2003 model years in September. There have now been 87 complaints, with 50 of them resulting in injury. Chrysler hasn't been able to nail down a single cause of, or even a single protocol for the problem; the airbags have deployed on startup and when the car is running.

Federal safety regulators are investigating fires in the driver’s side doors of Chevy TrailBlazers, the second such probe within a week. The latest inquiry involves more than 309,000 TrailBlazer SUVs from the 2006 and 2007 model years. The fires began in the power window switch or related electrical parts, the NHTSA said. U.S. safety regulators had opened aninvestigation into consumer complaints of driver’s side door fires in 2007 model year Toyota Camry sedans and RAV4 crossover SUVs.

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On Creative Marketing

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

Spotting a Newsworthy Opportunity with Thomas Franklin

This has been a year of extreme mals or small children. For example, weather. Recently, fierce winds blew more than a million dogs are killed in down hundreds of trees in one area car crashes every year. Many of these I’m familiar with. Many of those trees animals have been greatly loved by damaged vehicles parked on the street the driver or a family member. This or in driveways and those damaged could be a newsworthy story — espevehicles wound up in a local collision cially if it was the pet of a small child. center to be repaired. Those local shop The important thing for a representaowners obviously were pleased to get tive of the shop to keep in mind is to Dick the business, butwith only one that Strom I know not give the impression that this is an of took the time to get some photos attempt to exploit a sad situation. Unand get the story to a local newspaper less the story is funny and the vehicle to get the name of their shop in print. owner is laughing about it too, a sad Perhaps if they had acted a bit faster, story has to have a positive appeal. If they could also have gotten their shop a pet is injured or killed, a story could featured along with some of the TV appeal to viewers or readers to take news coverage of the wind damage, greater pains to have a proper pet rebut any coverage is better than none. straint in the vehicle. The same appeal To take full advantage of a situation could be made if a child is injured or like this requires a real nose for news. killed and the seat belt or restraint Most shop owners are too busy taking was not being properly used. The Lee Amaradio Jr.then has a public service mescare of businesswith to constantly ask, “Is story something happening that might get sage, but it can also reveal the name us free publicity and our name and and concern of the shop and its picture in the news?” owner. The amazing thing is every shop A similar message could have owner, manager or estimator is prevalue if the driver fell asleep at the sented with potential news stories most wheel. Drowsy driving accounts for every day. Many vehicle owners who about 4 percent of all fatal crashes in bring a crashed vehicle in for repair the United States, or roughly 1,500 have a story to tell. And many of those deaths each year. Researchers at the stories are bizarre and often funny. If U.C., San Diego School of Medicine the customer is willing to have the say that each year, potentially 980 story told—and with better yet if he orLoftus she lives could be saved and $11.1 billion Sheila has some photos—there could be some in automobile-accident costs could be great material to pass along to the avoided if drivers who suffer from a evening news or the morning paper. disorder called obstructive sleep People are especially interested apnea were successfully treated. Half in circumstances affecting pet ani- of the nation’s adults (51%) admit to

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driving while drowsy, reports the National Sleep Foundation (NSF). Among 18 to 29 year olds, nearly onequarter report actually falling asleep at the wheel at some point during the past year, compared with 15% of those aged 30-64, and 6% of people 65 and older. There are about 5,000 fatal accidents a year involving big trucks, but there is no good way to know how many are due to truck-driver fatigue. “Driving while drowsy is no different than driving under the influence of alcohol or drugs,” says Richard Gelula, NSF’s Executive Director. “When you’re sleepy, your brain starts to shut down,” “But even before you actually nod off, performance slips.” Trying harder to stay awake may not help. Your thinking slows, you miss signals and risk-taking behavior increases. At 60 mph, if you close your eyes for only one second, you’ve trav-

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NHTSA Opened Ford and GM Van Investigations in January

The NHTSA opened separate inves- filler pipe is routed differently, going tigations into vans made by GM and through the rear wheel well, which Ford in January. GM is recalling the agency said apparently exposed some 2012 Express and GMC Sa- it to road debris and spray. The norvana vehicles made from June 2, mal configuration for these vans is with Janet Chaney 2011, through October 17, 2011. The with side door behind the front passecond stage of the dual-stage air bag senger. will not inflate in a severe frontal imThe Ford investigation involves pact. The air bags fail to conform to about 63,000 2004 Ford Freestar and the requirements of federal motor ve- Mercury Monterey minivans. The hicle safety no. 208, "occupant crash agency said it had seven complaints protection." from owners who said the rear-wheel Another GM investigation in- wells rusted so badly that in several volves about 17,000 2003 Chevrolet cases the anchor mounts for the Express vans with a door behind the third-row seat belts “completely dedriver’s side. On these vans, the fuel- tached from the vehicle.”

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eled 88 feet. Will a driver who crashed as a result of falling asleep be willing to reveal that? And if so, would he or she be willing to have that story publicized, even to provide a positive public service message? Possibly not, but it can never hurt to ask, and if the driver is willing, this could be a great story featuring the shop in a positive light. While these public service message stories may have the greatest value, the ones that are bizarre and often funny will be easier to get an agreement to publish. The driver who swerved and crashed to avoid hitting an armadillo that escaped from the zoo, or the homeowner who dropped a bucket of paint on his car while painting his house may be most willing to share in the laugh. The astute shop owner who thinks to pass these stories along to the press could enjoy an excellent bit of free publicity.

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GM is Back on Top As the World Number One

General Motors said it is once again the world’s largest automaker with global sales of 9.03 million vehicles for a record $7.6 billion in 2011. That’s 11% higher than Volkswagen. In 2011, Volkswagen took second place with record global sales of 8.16 million, up 14 percent from the year before. But, it seems GM included sales by affiliates and VW did not. Toyota finished fourth in 2011 with 7.9 million vehicles sold. Toyota said in December that it plans to sell 8.48 million vehicles in 2012.

Chrysler Recalls Police Cars

Chrysler Group LLC recalled nearly 10,000 Dodge Charger police vehicles built last year due to overheating issues that may lead to headlamp and brake failure. The recall affects 9,688 Chargers for the 2011 and 2012 model years. The problems could lead to a loss of visibility or braking ability, increasing the risk of a crash, according to a NHTSA posting. In some police cars, the low beam headlights may fail because of an overheated bulb harness connector. In other vehicles, the antilock brake and electronic stability system may stop working due to an overheated power distribution center.

Chrysler Reports First Full Year Profit Since Crisis

Chrysler Group LLC reported a net profit of $183 million for 2011, swinging back into the black from a loss of $652 million in 2010. Higher sales of Jeeps and other new vehicles propelled Chrysler to its first annual net income since 1997, capping a pivotal turnaround that many thought would never happen. Chrysler’s U.S. sales increase of 44 percent last month surpassed eight analysts’ average estimate for a 32 percent sales gain. The company’s free cash flow was $1.9 billion last year, and has forecast a $1 billion free cash flow for 2012.

Nissan Recalls 2012 Versa

NHTSA says 36,608 2012 Nissan Versas failed to comply with the requirements of federal motor vehicle safety standard No. 114 titled “Theft Protection.” NHTSA discovered that due to interference between the shifter rod and the shift knob, the vehicles may be shifted out of the park position without depressing the brake pedal. The agency fears the operator can inadvertently shift the vehicle into gear without the brake pedal being depressed, increasing the risk of a crash or injury to a nearby pedestrian. Nissan told NHTSA it plans to begin notifying owners.

Phoenix Auctions Show Collector Cars’ Comeback

Consumer Reports Says Brand Perception Narrows

KBB Gets New President

DuPont Paint Unit Bidding

RM Auctions were among six major classic and collector car auctions in Arizona in January. Like the rest of the car industry, collector cars are coming back. RM Auctions held its 2012 sale January 19-20 at the Arizona Biltmore Resort in Phoenix, resulting in $25.6 million in sales and a 90% sell-through rate. Their top seller was a 1957 Ferrari 410 Superamerica Scaglietti Coupe at over $1.8 million. Also a 1973 Ferrari 365 GTB/4 Daytona Spyder for $990,000, and a 1959 BMW 507 Roadster for $990,000.

Kelley Blue Book announced Feb. 14 that president Paul Johnson has resigned from his position effective immediately. Taking on the role as president for KBB will be AutoTrader.com vice president Jared Rowe. Rowe is currently vice president of product management for AutoTrader.com in Atlanta, Ga. Rowe’s new role is effective immediately. Kelley Blue Book was acquired by AutoTrader.com in October 2010. Rowe also held positions at Autobytel in business development and at Central Atlantic Toyota Distributors as a service and parts manager.

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For years, Toyota, Ford, and Honda have been the top names in Consumer Reports’ annual Car-Brand Perception Survey. They are still at the top, but they have seen double-digit drops in their scores. That has narrowed the gap between the top names and other brands. Only two points behind Honda this year was Chevrolet, followed by MercedesBenz, BMW, Volvo, Cadillac, Lexus and newcomer Tesla. “Dramatic events in the automotive industry seem to be affecting how consumers view auto brands,” said deputy editor Jeff Bartlett. DuPont has launched the process to sell its automotive paint unit, according to the Reuters news agency. DuPont is accepting bids for its automotive paint division. The report listed several private equity firms as being interested. It also claimed that Credit Suisse Group, serving as advisers, distributed information material among possible suitors. The business unit could garner more than $4 billion. It was reported in October that DuPont had thought about such a sale, but the latest is that the company has started taking bids. DuPont said it does not comment on rumors or speculation.

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State Farm Pays Costs for Two Cases by Ray Gunder

After agreeing to pay in full for procedures and materials previously denied, State Farm has now also agreed to pay for all attorney fees and costs on two claims brought by Ray Gunder on behalf of his customers. Upon State Farm’s October 10th, 2011 written denial to provide consideration for a plethora of recommended and necessary repair procedures and materials, Gunder, owner of the 44 year old Gunder’s Auto Center in Lakeland, FL, instructed his legal counsel, Attorney Brent Geohagan, to prepare the necessary steps to file a lawsuit against the nationwide insurer at the request of and authorization by his customer. The lawsuit was prepared and filed on October 25th along with a Civil Remedy Notice (CRN) which was accepted by the courts on December 16th, 2011. State Farm’s legal counsel responded in a letter to Gunder’s Attorney dated January 19th, 2012 stating, in part, “at all times State Farm acted in good faith and fairly and honestly toward its insured, with due regard for its insured’s interest.” Furthermore the correspondence states, in part, “State Farm has decided to exercise its rights under

SCRS Offers Repairers Digital Member Services E-catalog

The Society of Collision Repair Specialists (SCRS) is offering collision repairers its 2012 First Quarter Digital E-Catalog. It includes information regarding SCRS member benefits and information about some of the services repairers can access at a discount as a member of SCRS. “It is our hope that you will find this material to be valuable and relevant by providing you with information on products and services available to SCRS members, from companies whose support throughout the year enables SCRS to represent you on a variety of issues,” said Aaron Schulenburg, SCRS executive director. “If you are a repair facility, we encourage you to share this with your friends and colleagues; if you are with an association, please pass it along to your membership.” Repairers can access the directory at http://www.zmags.com.

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Florida law to avoid unnecessary litigation. Accordingly, enclosed is a check made payable to you and Raymond Gunder in the amount of $1090.70—which is the amount demanded in the CRN, plus statutory interest. Again, State Farm’s payment should not be construed as an admission of any wrongdoing or liability on the part of State Farm who denies any liability, as well as the standing of Mr. Gunder to pursue any claims, but exercise of its right under Florida law to avoid protracted, vexatious litigation.” On receiving the news from his attorney, Ray Gunder said, “I am elated that State Farm has chosen to step up and pay what was due our customer and that State Farm elected to settle rather than proceed with a long drawn-out and costly litigation. They knew what they owed and why and that they would lose if it went in front of jury. They also knew, they would surely incur additional and significant legal costs and interest just as they have in the past. There are an additional 25 more in line behind those which are ripe to be filed for similar issues. We’ll just keep pounding that rock!”

NABC Plans At Least One Vehicle Gift in Each State This Year

The National Auto Body Council’s (NABC) Recycled Rides® program, now in its sixth year, set a goal to gift at least one vehicle in every state in the country in 2012. NABC member collision repair facilities nationwide have provided hundreds of families and service organizations with the gift of reliable transportation. “So many of us take our transportation for granted,” noted NABC Executive Director Chuck Sulkala, “but the fact of the matter is, reliable transportation is more important than ever in these tough economic times. A dependable vehicle literally can provide a family a new lease on life.” In an effort to build upon Recycled Rides’ growth, the NABC is slightly refining its marketing approach. “This year, along with working directly through shops, we are reaching out to individual charities to help them meet their missions,” said incoming Recycled Rides Chair Jim Ocampo of DuPont Performance Coatings. “You could say that we’re working the program in reverse.” Indicative of this new approach is the fact that Donna Miller has joined the NABC’s Recycled Rides commit-

China Auto Parts and Service Show to be Held June 2012

China Auto Parts and Service Show 2012, Auto Parts China co-sponsored by major organizers of the Beijing and Shanghai auto shows, will be held at Shanghai New International Expo Centre (SNIEC) in Shanghai, from June 12th to 15th, 2012. The exhibition will take place in SNIEC's new 70,000-square meter N-series pavilion equipped with the most comprehensive modern facilities. The event is expected to attract over 2,000 exhibitors from the auto parts, technical equipment, repair and maintenance and accessories sectors. More than 30,000 industry professionals from the domestic and foreign complete-vehicle OEM sector, auto 4S shops, auto repair, maintenance and refitting shops in the Chinese after market as well as wholesalers, agents and distributors of auto parts are expected to attend. The show aims to leverage the unique position of Shanghai as China's trade hub and one of the world's key trade ports, creating a market-driven international and comprehensive exhibition platform,Give whichus provides players in the your opinion on Chinese auto parts and related industries with access to the country's domestic brands, industry chain-wide services, technologies and trade.

52 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

tee as the liaison between NABC and Family Promise, a charitable organization with 172 affiliates across the U.S. that is committed to help homeless and low-income families achieve sustainable independence. The year began auspiciously on January 11, 2012 during the National Auto Body Council’s fundraising golf tournament held in Palm Springs, Calif. Thanks to Pacific Collision and Hertz Rent-A-Car, and working through Variety Children’s Charity, Recycled Rides donated a 1999 Ford Freestyle crossover wagon repaired at the end of 2011. “Participating in the Recycled Rides program this year was a great experience for our entire team,” said Steve Vetel, owner of Pacific Collision Centers. “Having the ability to help a family in need gave everyone in our organization a great sense of pride and accomplishment. We look forward to participating in future gifting events.” The first Recycled Rides vehicle repaired in 2012 has been donated by GEICO Insurance and has landed at Caliber Collision Centers in Round Rock, Texas. It is being refurbished for the Temple, Texas Family Promise affiliate.

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The 2010 Pro-Con Argument For Patent Protection of Collision Parts On March 16, 2010, the House Judiciary Committee heard Testimony on Replacement Parts Bill HR 3059, sponsored by California House Democrat Zoe Lofgren, and previously as SB 1368 by Rhode Island Democrat Sheldon Whitehouse. The 111th Congress (2009– 2010) considered HR 3059 (The Access to Repair Parts Act) to amend title 35 of the United States Code to “make it not an act of infringement of any design patent to make, use, offer to sell, sell, or import into the United States any article that is a component part of another article, if the sole purpose of the component part is for the repair of the article of which it is a part so as to restore its original appearance.” The bill never became law in the 111th Congressional term but has essentially been reintroduced in the current term as H.R. 3889 (see cover story).

Witnesses at the 2010 hearing included: • Jack Gillis, director of Public Affairs, Consumer Federation of America (CFA), Washington, D.C., testified for the bill. • Damian Porcari, director, Enforcement and Licensing, Ford Global Technologies, LLC, Dearborn, Mich, testified against the bill. • Robert C. Passmore, senior director, Personal Lines, Property Casualty Insurers Association of America, Des Plaines, Ill. testified for the bill. • Perry J. Saidman, principal, Saidman Design Law Group, Silver Spring, Md. testified against the bill. Lofgren opened the hearing by stating the purpose for her bill—to prevent price gouging combined with auto manufacturers not needing a monopoly over crash parts to spur innovation—but also recognized that “intellectual property rights exist to

create incentives for innovation— that's why it's in our constitution... these government-created exclusive rights are crucial to the legal framework that promotes innovation in our country.”

Attorney Saidman Against the bill “I underscore the pernicious effect of the pending legislation (H.R. 3059). This bill does not say that design patents for repair parts are invalid. Nor does it say that they cannot be infringed. Indeed, there can be no argument that the design patents covering auto repair parts are not infringed because the knock-offs look identical to the patented designs. Therefore, what this bill proposes is that valid and infringed design patents be rendere-

dunenforceable. These are design patents that have been applied for, examined by skilled and qualified USPTO design patent examiners who have determined that the claimed design is novel, non-obvious, and nonfunctional, and then issued. “And why are we even discussing a bill that proposes this remarkable result? We are here because the proponents of this bill lost a hard fought design patent infringement lawsuit covering auto repair parts, and can no longer make, use, sell or import their knock-offs in the United States. “So, having been adjudicated as an infringer of validly issued U.S. design patents, these companies are asking Congress to carve out an

“it will encourage every industry that loses a design patent lawsuit to petition the Congress to do the very same thing: to carve out an exception to their industry so that their infringement will not be actionable”—Attorney Saidman

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exception to the design patent laws for auto repair parts... “Why is this such a bad idea? Because it will encourage every industry that loses a design patent lawsuit to petition the congress to do the

parts. The exclusion order went into place on August 6, 2007, banning the importation of those parts and, until a legal settlement was reached in April of 2009, competitive choice was effectively eliminated in the United

very same thing: to carve out an exception to their industry so that their infringement will not be actionable, so that they can continue to make, use, sell and import their infringing products without fear of liability to the design patent owner... There is almost no industry whose products or services will not cost less with increased competition. This argument, therefore, is much broader than an argument that design patents should not be permitted for auto repair parts. It's essentially an argument that patents should be abolished, because patents allow the owner to monopolize a product and therefore reduce competition.”

States for those seven Ford F-150 exterior collision repair parts. Therefore, for almost 2 years, the car company was the one and only source for the purchase of these seven collision repair parts for their trucks.” Ford’s Porcari testified against H.R. 3059, stating: “Copycat parts hurt Ford, our employees, our suppliers, our dealers and our customers. Ford customers rarely know that they are getting copycat parts because their use is frequently concealed.” Porcari added that the bill could lead to a slippery slope of more design patent exceptions in the future. “The bill's proponents present no basis for treating visible repair parts differently than other items protected by intellectual property,” he said. “The copyists want to eliminate design patent protection because that's what they make. As soon as their business model includes engines, brakes and air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won't stop with cars. The denial of intellectual property rights will always reduce copiers’ costs.” Porcari also accused insurers of basing insurance premiums on OEM parts pricing but pushing repairers to install cheaper, non-OEM parts to save money. “Some background about the insurance industry will illuminate what's really spurring foreign parts copiers and unscrupulous insurance companies. Ford provides insurance companies with its genuine Ford replacement part pricing for every new Ford vehicle. Insurance companies use genuine Ford replacement part prices to set their insurance rates,” he said. “After state regulators approve these rates, insurance companies then refuse to pay for genuine Ford parts and steer body shops to use cheap, copycat parts... This entire discussion about consumer choice and right to repair is merely a distraction from the basic unethical business practice of

“for almost 2 years [Ford] was the one and only source for the purchase of these seven collision repair parts...” —PCI’s Passmore

PCI’s Passmore in Support of the Bill PCI’s Passmore, testifying in “strong support” of the bill, said the parts referred to were cosmetic and “the Insurance Institute for Highway Safety (IIHS) through crash testing and crashworthiness evaluations, consistently has found that, generally speaking, cosmetic, exterior parts “serve no safety or structural function . . . [t]hey merely cover a car like a skin.”Moreover, [IIHS] has found that whether a cosmetic collision repair part is a car company part or an alternatively supplied part ‘is irrelevant to crashworthiness.’ ” Passmore cited the chart on the cumulative number of crash part design patents owned by the major car companies. He also detailed that “in December 2005, Ford Global Technologies (Ford) took the unprecedented action of filing a Section 337 case at the International Trade Commission (ITC) against companies in the alternative parts industry for allegedly infringing design patents held by Ford on various exterior parts for the Ford F-150 (model years 2004–2007). On December 4, 2006, the Administrative Law Judge held that seven of the design patents were valid and infringed and issued an exclusion order on those

54 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

pricing insurance premiums and using genuine Ford parts and then giving consumers cheap foreign parts.”

CAPA’s Gillis in Support of the Bill Jack Gillis—director of Public Affairs, Consumer Federation of America, is also the executive director of the Certified Automotive Parts Association (CAPA)—testified in support of Lofgren's bill. “For over 25 years, consumers have benefited from competition, albeit limited, between car company brand replacement parts and inde-

increase the cost of repairs. • Eliminating competition will increase insurance premiums for consumers. • Eliminating competition in crash parts could diminish safety. • Eliminating competition will result in more total losses. • Eliminating competition protects the automakers’ “double whammy,” which Gillis described as meaning “not only will the lack of competition allow car companies to charge whatever they want for the parts we need to fix our cars, but when they charge so much that the car is to-

pendently branded parts,” Gillis said. “Such competition, where it exists, lowers prices, provides choices and improves quality.” Gillis cited reasons for supporting H.R. 3059: • Elimination of competition will

taled, our only recourse is to go back to them and buy another one of their products.” • Congress can preserve consumer access to affordable, competitive and quality crash parts by

“In the early 1990’s, the car companies came to Congress and asked for special design copyright protection on these replacement parts and Congress said no... the car companies are now using design patents to prevent competition...” —CAPA’s Gillis

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adopting a “repair clause” in the design patent law.

Most of these points are contested by the OEMs, but collision repairers do not typically hear the case for patent protection directly from the OEMs. What follows is patent attorney Porcari’s full argument in front of the committee.

Damian Porcari’s Opposition for Ford “Chairman Conyers, Ranking Member Smith, and members of the Committee, my name is Damian Porcari. I am an attorney with Ford Global Technologies, LLC., a wholly owned subsidiary of Ford Motor Company. I am responsible for obtaining and enforcing Ford’s design patents, especially those directed to exterior components such as fenders, hoods,

grilles, lights, and mirrors. “This legislation, if signed into law, would undo wins by Ford with the International Trade Commission against foreign manufacturers making copycat F-150 parts. The infringers purchased a single genuine Ford part and used low-cost laser scanners to make ‘photocopy-like’ copycat parts. Ford hosted representatives of the U.S. Patent and Trademark Office in our design studios and demonstrated how infringers are able to make tooling for a copycat fender in a matter of hours using this equipment. Ford, our suppliers and our dealers are losing $400 million per year in genuine part sales because of this flood of imported copycat parts. “I freely admit that a company can save money by copying a design as opposed to creating, testing, mar-

“the increase in the number of design patents filed... is a response to the increased copying of parts. If this bill becomes law, part copying will continue to increase and negatively erode U.S. manufacturing jobs” —Ford’s Porcari

keting, and selling an original design. This is not a revelation. It has been and will always be cheaper to steal something than to pay for it. This applies to all markets and all products. Our opponent’s argument is no more Damian Porcari than a justification to deny all intellectual property rights across the board. “Copycat parts hurt Ford, our

factors are also important in repair decisions. But when this same customer takes his or her car to a body shop, they frequently receive non-Ford, non-U.S., non-UAW parts, all without any disclosure or warning. They take a Ford in for repair and given in return an untested experiment that may or may not function as intended. Ford doesn’t test how copycat parts work or what interaction various copycat parts have with each other. We test Ford vehicles with genuine Ford parts. “Copycat parts makers talk of

employees, our suppliers, our dealers, and our customers. Ford customers rarely know that they are getting copycat parts because their use is frequently concealed. Customers purchase a Ford vehicle for many reasons, including its features, quality, styling, and value. They also buy a Ford because of its high domestic content (Monroney sticker) or because it was made by UAW workers. These

monopoly pricing by automakers if parts can’t be freely copied. Yet there is no evidence for this argument. For over one hundred years, Ford has prided itself for selling vehicles with readily accessible and affordable replacement parts. If the pricing of genuine Ford parts made insurance unaffordable, we wouldn’t sell any cars or trucks. Everyone purchases insurance before they drive their new

“If this bill becomes law, a real car would have no protection against copies, but a cartoon car would be protected for 120 years”—Ford’s Porcari

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car home. This argument is a smokescreen to divert attention away from the fundamentally dishonest practice of purchasing a single Ford part and making cheap copycat parts in lowwage foreign factories that are sold to an unknowing American public. Technology transformed the copying of books in the 70’s, music in the 90’s, and movies this century. It is now transforming the car parts market. Virtual 3-D photocopiers are making it faster and cheaper to clone parts. Ford’s only recourse is to rely on an imperfect form of intellectual property protection—design patents—to stop the wholesale cloning of our vehicles. That’s why you are seeing a significant increase in the number of design patents filed in the U.S. Patent and Trademark Office. It is a response to the increased copying of parts. If this bill becomes law, part copying will continue to increase and negatively further erode U.S. manufacturing jobs. Auto companies, suppliers, and dealers will compete with cheap Taiwanese copycat parts by outsourcing manufacturing to other even lowercost countries.

to eliminate design patent protection on copycat parts because that’s what they make. As soon as their business model includes engines, brakes, and

Non-Original Equipment Aftermarket Label

air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs. “Proponents argue that this bill is needed to restore “balance” between car companies and customers. The phrase: “It’s my car, I should be able to fix it” is used to suggest there should be a “fair use” right-to-repair. While the car indeed belongs to the owner, the patents protecting it do not. Patents have never needed a “fair use” concept because they involve commercial production of products.

“Proponents will tell you ‘a hood is a hood is a hood’... A hood is not a hood. If they were, why would foreign manufacturers be making exact copies rather than generic parts?”—Ford’s Porcari

“This bill encompasses more then car parts. Any replaceable component would be free game for foreign copying including battery packs, printer cartridges, razor blades, tires, and golf clubs. All forms of intellectual property are aimed at preventing copies. There is no fundamental reason to treat a fender differently than a drug, a purse, or a movie. To do so otherwise is to devalue design. I explain this comparison by describing an accident. The vehicle’s fender, brakes, and tires are damaged. The driver also breaks her sunglasses, a CD that was playing is scratched, some prescription drugs fall on the ground, and a $100 bill blows away. Which of these articles should be freely available to foreign copyists and why? What fundamental principle supports treating a fender differently? The bill’s proponents present no basis for treating visible repair parts differently than other repair parts or other items protected by intellectual property. The copyists want

The patent teaches others how to make something. If a patent is unenforceable against foreign manufacturers, the American inventor is left with nothing. This entire repair argument is a smoke-screen. Car companies don’t sue customers for pulling a dent from their fender. Razor companies don’t sue customers for sharpening a dull blade. Customers have the right to repair their car or sharpen their razor, but they don’t have the right to make copy fenders or copy razor blades. Far more importantly, foreign companies don’t have the right to sell millions of copycat fenders or razor blades into this country. That’s not “fair use”, that’s a large-scale foreign commercial enterprise stealing business from the American inventor through unethical copying. And that’s exactly what’s happening in the car business today. Dozens of foreign factories, employing thousands of workers are selling billions of dollars of copied car parts. Ford is working to stop this practice by enforcing its

56 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

design patents. Rather than restore balance, this bill would upset long standing US intellectual property law and would tell the world it’s OK to copy American products—both here and abroad. This issue is not one of allowing customers to repair their cars, they already have that right. The issue is, can foreign manufacturers freely copy America’s creations? “The timing for this bill couldn’t be worse. An International Trade Administration report entitled “U.S. Automotive Parts Industry Annual Assessment 2009” outlines the problems facing the domestic auto parts industry and shows increasing imports of aftermarket parts from foreign countries (Attachment 1, not reproduced here–Ed). The Bureau of Labor Statistics (BLS), U.S. Department of Labor, reported that the automotive parts industry lost more than 300,000 US jobs since 2000 (id at p. 35). Some background about the insurance industry will illuminate what’s really spurring foreign parts copiers and unscrupulous insurance companies. Ford provides insurance companies with its genuine Ford replacement part pricing for every new

Ford vehicle. Insurance companies use genuine Ford part prices to set their insurance rates. After state regulators approve these rates, insurance companies then refuse to pay for genuine Ford parts and steer body shops to use cheap copycat parts. Most insurance companies don’t tell drivers that they aren’t getting genuine Ford parts unless they are required to do so by state law. Consumers rarely know they’re getting copycat parts. What consumer prefers a copycat part over a genuine Ford part? This entire discussion about consumer choice and right-to-repair is merely a distraction from the basic unethical business practice of pricing insurance premiums using genuine Ford parts and then giving consumers cheap foreign copies. Foreign parts copiers also argue the basic “unfairness” of giving car companies 14-year protection on replacement parts. Let’s look at some basic fairness issues: Proponents want to retroactively reduce the period of design protection for car parts from 14 years to zero. However, Congress recently retroactively extended copyright protection for Hollywood

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movies to 120 years. If this bill becomes law, a real car would have no protection against copies, but a cartoon car would be protected for 120 years. Somehow all of these “fair use” and “consumer choice” arguments don’t apply to saving American families money when it comes to movies. Foreign parts copiers also suggest that Ford should be able to protect the entire vehicle, but not individual components. Ford protects what’s copied. No one is making copy cars. Even Chinese car companies that were accused of copying didn’t copy everything. They copied the front of one car and the rear of another. The current law allows car companies to protect individual parts and prevents this behavior. This bill doesn’t address patentable subject matter under 35 USC 171, but instead focuses on what is an infringement. It will add confusion to an already unclear area of law. If Ford sells a vehicle having Goodyear tires, are Goodyear’s patents now unenforceable? Can foreign companies freely make specialty equipment parts such as those on a Saleen Mustang™? If a customer resells an automobile with specialty

wheels, are those specialty wheel patents now unenforceable? If Ford sells a vehicle with specialty parts such as a Ford Expedition Funk Master Flex™, are those patents also unenforceable? Proponents for this bill will tell you “a hood is a hood is a hood” and that the aftermarket is required to copy Ford parts by state insurance law. First, a hood is not a hood. If they were, why would foreign manufacturers be making exact copies rather than generic parts that fit Ford cars? Different hoods create a different visual impression and result in different sales for that vehicle. We sell different models of the same cars with different hoods, grilles, and lights to create a different visual impression and to garner more sales. Second, state insurance laws don’t trump federal intellectual property laws. We don’t allow states to create unique forms of intellectual property. And we don’t allow states to invalidate federal intellectual property protection or mandate patent infringement. Foreign parts copiers say that car companies are unwilling to compete.

Not only do car companies vigorously compete with each other for each and every sale, we also compete with salvage and specialty equipment makers on component parts. Beyond that, each of the Detroit 3 have existing restoration part licensing programs where we license our designs, knowhow, and brands to responsible companies that make high-quality parts. Ford has no objection to generic or specialty repair parts. Consumers are familiar with this concept and know what they’re getting when they buy generic razors or cereal. Generic items don’t look like the genuine article. Ford broke new ground and licensed LKQ to make and sell copycat parts. We did this primarily to end a series of very expensive lawsuits and to gain recognition that automobile parts were patentable. We also required LKQ to clearly label copycat parts as “Non-Original Equipment Aftermarket”. Attachment 2 is a sample label that is affixed to every copycat part to clearly distinguish them from genuine Ford parts. We also collect a fee for the use of our patents that we reinvest in new vehicle designs. This settlement gives Ford customers up to

five options when repairing their vehicle. They can buy: 1. a new genuine Ford part 2. a salvaged genuine Ford part 3. an approved restoration part made to Ford specifications (for older vehicles) 4. a generic or specialty equipment part that is not a copy (e.g., SEMA™) 5. an LKQ copycat part not made to Ford specifications This bill won’t give consumers more choices. They have five already. This bill would merely eliminate compensation to the original American designer and spur more foreign copying. “In conclusion, we believe retroactively targeting one group of intellectual property rights for unequal protection would be a dangerous precedent. And it would be particularly so, should it come from the Committee with the role to ensure that these rights are protected. We thank the Congress for taking on the difficult issue of design protection. We encourage it to tackle this issue in-depth and see how intellectual property laws can be used to level the playing field with foreign companies making copycat parts.

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Custom Corner

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Barrett-Jackson DIY Event Draws Fans and Future Body Techs with Rich Evans

I was out at Barrett-Jackson He told me “we’ve got a in Phoenix last month with 12,000 square-foot DIY a good buddy of mine, Alan pavilion” inside a tent and Taylor, from Entertainment we’re going to have a Radio. I wrote about Alan project car there. It doesin last month’s column (aun’t matter to me what car tobodynews.com/columI’m working on because nists/rich-evans.html in regardless I’m going to try Thomas Franklin case you missedwith it) but that to do something cool with was about SEMA 2011. In it. When I found out it was Poster Phoenix at the Barrett-Jackan 1972 El Camino I sugson auctions Alan put together somegested a toned-down concept. Something clean, more modern. You know, thing called A World of DIY (as in ‘Do it Yourself’). simplify the car and give it that old Alan reached out to me and asked school look, a couple of rally stripes me to come there and show off some and choose a great color, add some tools and demonstrate building a car. I rims, and we’ve got a car that brings said ‘yes’ without hesitation, “I’ll pack back that 70s feel and some muscle. up some tools and drive out there and I put a concept together, sent it see what you guys have put together.” off to Alan, and he’s got feedback

On Creative Marketing

Opinions Count with Dick Strom

Action Counts with Lee Amaradio Jr.

Your Turn with Sheila Loftus

Shop Showcase with Janet Chaney

58 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

right away. “Dude, can you put this blue color on?”, including a paint photo. We collaborated on a concept and a design. I like working this way because when I get there everybody’s not going to ask me what I’m building (because they’ll already have seen the concept.) I don’t like having to sound like a broken record answering the same question over and over and over. So for the week out there at Barrett-Jackson we’ve got participation from Craftsman, Chevrolet in the tent with us, we’ve got E-bay Motors with the modJOBS 2012 Mustang we did last month and I’ve got my Solution Finish. So this is a good chance for me to get out there, build a car, show off some new tools, some new products and connect with the public

and the garage builders. I didn’t know what to expect for a tool supply for DIY builders so I brought as much as I could cram in my truck and decide to figure it out from there. When we get

there and see the El Camino I’m thinking in my head, you know I’ve built cars on TV in 72 hours in front of millions of people, that’s already been done (Car Warriors). This event will be live, which is cool but I tell Alan “I want to shoot from the hip and see if I

can connect a little bit more with the end user and the garage builders by having the public work on the car.” 3M gave us some products which is great because here’s a chance to put product in people’s hands who haven’t used it before. Craftsman’s also got their tools and equipment there. I’m thinking “what’s better?: someone watching me use their tools or putting their tools in a potential consumer’s hands?” It just makes it that much more real. A lot of people will never know they can or can’t do it if they don’t try. So I’m going to bring some process out here and guide people through taking the car apart, stripping the car down, modifying it, pulling dents, even welding for beginners. I’ve got 8-year-old girls and boys that came up, got their hands on a welder for the first time. Of course I gave them safety equipment— which is also a great learning opportunity for them—and helped them do the job. So they walked in the tent not knowing they were going to weld or pull a dent and they walk out knowing something about how to weld and pull a dent. The look on their faces was ‘how cool is that’? It really took me back to when I was young and somebody introduced something new to me. Exposure to new processes is so important in our business. There are all kinds of ways to build a car and hundreds of different processes, but to learn from experienced builders the process of grinding and feathering and stripping the car down manually is invaluable for someone who’s new to everything. Not just newbies but also connecting with the garage builders. The message to them: If you don’t have it, use what you have because you don’t have to have all that expensive equipment to build a car. Back to the event: The news coverage was over 45 minutes broadcast, with 10 minutes on Channel 3 live, and then they did a 6 minute piece at night and then we did Channel 12, 5, CNN. If you search ‘Barrett-Jackson DIY Rich Evans’ on Youtube, you can watch a 2-minute piece that they put together. If you go to DIYlive.tv, we’ve got many segments on there. If you click through that site you can see all the people that participated. Craftsman, GM, 3M, Solution Finish, we had new types of nail guns available, we had a panel bonding product out there from 3M, different types of sandpaper, Bondo™, the dynamic mixing system, all sorts of products. We had a group of Wyotech guys

out there. WyoTech provides students with repair training in automotive technology, autobody, diesel, HVAC, chassis fabrication and high performance engines, street rod and custom builds. John and his crew—there were about five people from Wyotech there—were all heavily involved with the project.

The Crew from Wyotech

Equipment was a factor. We only had one air hose and one welder so we could only go so fast, which was actually good. We could control and make sure everybody’s getting taught

and stay safe. The whole concept of DIY at the show was a hit. I heard Barrett-Jackson’s head count through the door was 27% more than any other year. So they set records. The news coverage and the big hype about ‘hey come on out, get your hands dirty, help build this car.’ The car really was being built by the public and everybody there was invited to get involved. Everybody who came by touched or fixed a dent or welded a hole, or pulled a part off or sanded on it. They’re part of this build. It was great to see them all building the car, not just me. These photos tell the story too but to best appreciate this whole idea that Alan made happen, you have to go visit DIYlive.tv to see video of everyone that was involved with this build. It was so successful we’re going to be doing more of these. I’ll let you guys know more about it, or just follow us on DIYlive.tv. You can also go to richevansdesigns.com or huntingtonbeachbodyworks.com. Also, go to solutionfinish.com or watch our video on Youtube by searching ‘Solution Finish Rich Evans.’ The types of projects I’m doing this year are really connecting with the end-users and trying to bring my world to their world. It’s just so rewarding to see an 85-year-old woman pulling dents, or an older dentist

jumping in and working on the car. Also, they’re able to go home and take the techniques and steps that I taught them and actually be able to work on their own car. So with all that said, another great project, you’re going to hear more about it, we’re going to continue to tour this car to the next two or three Barrett-Jackson shows. I don’t have details on those yet but we’ll definitely be in Orange County and Las Vegas. So if you guys get a chance stop into the DIY Pavilion Craftsman Experience and check us out on the road. We’re going to be taking this car—stripping it down, cutting the roof off of it, painting it, cutting rust off of it, dropping an LS9 motor in it that Chevy has donated (the LS9 crate motor costs about the same as a base 2010 Ford Mustang) and Steel Rubber donated the rubbers for the car. 3M donated the product for the car. Craftsman provided the tools for the vehicle. We’ve got Woodward Fabrication teaming up with us along with a whole other list of sponsors and equipment so it’s going to allow us to really travel around and let people get involved and connect with more garage builders. So I’m really pumped up about this. I’m working on a new TV show so stay tuned. Go to Rich Evans Designs’ Facebook page, and like it, that way you can keep up with everything I’m doing. I went to the Grand National Roadsters Show, I did the NHRA, and I’m heading up to the Autorama in Sacramento, which I haven’t been to since I was 6 years old. I had some time in Sacramento and last year when I did CarWarriors I connected with a shop called Gearhead Garage. They actually beat us Allstars on the Corvette builds and I’m going to go up and visit them. They’ll have the Corvettes we did on the show there. That’s my old stomping grounds and I’m going to have a blast. 2012 is going to be a great year. I’m going to be traveling, building cars on the road, doing all kinds of cool stuff. I never know what’s around the corner for me. I’ll keep you guys posted on the DIY experience. Go to DIYlive.tv to learn more about it. Also search ‘Barrett-Jackson DIY Rich Evans’ on Youtube and watch that two minute clip. I think you guys will be stoked to see that. You can also see all the news coverage on DIYlive.tv. Keep wrenching. Keep building. I’ll see you guys next month.

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 59

Federal Trial of Baltimore Police Kickbacks Involves Local Body Shop, About 60 Officers and Insurance Fraud

Writing in the Baltimore Sun, Justin Fenton has reported on the federal police kickback trial in which testimony implicates a shop owner and about 60 Baltimore police officers. Body shop owner Alex Moreno, of Majestic Auto Repair, has already plead guilty to his role, said he was approached in 2008 by a Baltimore police officer with an idea to help boost sales at his fledgling Rosedale business. The officer said, in exchange for a cut, he and fellow officers would funnel cars to the shop. According to police and federal prosecutors, the officers were circumventing the city’s system of authorized towing companies by referring cars to Moreno in exchange for payment. Majestic would often increase damage to the vehicles by smashing side panels with poles and breaking off mirrors to increase payouts from insurance companies, Moreno testified. Soon Majestic Auto Repair was getting customers almost exclusively from city police. Moreno testified Feb. 14 in federal court that more than 60 officers would ultimately get in on the scheme, receiving $300 for each referral. Business grew so fast that he

SAAB Dealers Still Looking at Options, Six Parties Still Contend

Six parties are still reportedly considering buying Saab Automobile, but Saab’s dealer base also has options. Saab’s demise is not necessarily certain, a Bloomberg report suggests. While 200 Saab dealers worldwide have chosen to close up shop during the last two years, but the remaining are turning to competing automakers to land franchises as Saab’s fate becomes less promising, the report said. In fact, Saab National Dealer Council leader Kurt Schirm said each of Saab’s 188 U.S. dealers is considering other brands. Connecticut dealer Guildford Saab’s general manager Tom Backes is reported to have courted both Maserati and Mitsubishi. “I’ve reached out to quite a few brands,” Backes was quoted as saying. “Some have said, ‘We’re not expanding,’ and others have said, ‘We’ll take a look at it.’ It’s a slow process.” Garel Rhys, head of the automotive industry research center at the University of Cardiff, said: “These dealerships have a loyal clientele who might switch brands. They’re often in very good locations and well-established. So I’m quite optimistic about the prospects of Saab dealerships”

had to expand to new lots to store all the cars. In fact, growth was so fast that Majestic struggled to stay profitable, Moreno said. They often paid officers to bring their own cars in for repairs, did not require other customers to pay deductibles, and paid for rental cars. Moreno said the idea to pay police for referrals was hatched in 2008 by Officer Jhonn Corona, his neighbor and shop customer. Corona spread word of the plan through the department, Moreno testified, and officers called when they encountered accidents. Corona pleaded guilty to conspiracy and extortion last fall. Moreno also testified that a city officer named Osvaldo Valentine falsely reported that his personal vehicle had been stolen. Moreno said the vehicle was at his shop and that Valentine had reported it stolen because he couldn’t make the payments. Valentine pleaded guilty to conspiracy and extortion last fall. Moreno testified that at one point, his tow truck drivers joined another company and some of the officers started working with them instead. Those drivers have not been charged.

CREF Sees Record $4.1 M in Industry Donations for 2011

The collision industry came to the aid of its future workforce in 2011 by providing a record $4.1 million in donations to secondary and post-secondary collision school programs and their students through the Collision Repair Education Foundation. Through monetary and in-kind product donations, the 2011 Collision Repair Education Foundation donors helped to provide student scholarships, student tool grants, school equipment and supply grants, the 3rd annual Ultimate Collision Education Makeover school grant, and much more. Since 2008, when the Collision Repair Education Foundation became a purely philanthropic organization, the organization has provided $7 million in school and student support through industry donors. “The fact that the Collision Repair Education Foundation provided more support to collision schools and students in 2011 compared to the combined totals of 2008 through 2010 displays that the collision industry is one that cares for its future professionals,” said Scott Kruger, Collision Repair Education Foundation Executive Director. “This announcement of support

Utah Bill to Weaken Vehicle Inspection Requirement

Utah House Bill 298 would abolish the requirement that all motor vehicles obtain a certificate of inspection prior to registration is headed to the House floor. The bill by Utah state Rep. John Dougall (R-27) would dilute the Utah State Motor Vehicle Safety Inspection Program if passed. The most important changes made were for the frequency of the safety inspection requirement, specifically the age of the vehicle based on the model year. The age of a vehicle would be changed from eight or more years old on Jan. 1, 2013 to 10 or more years old Jan. 1, 2013. Also, a vehicle safety inspection would be required every four years for each vehicle that is less than eight years old Jan. 1, 2013 in the fourth year and the eighth year. There were some omissions that were made to requirements as well. The bill, if passed, will take effect July 1, 2013. ASA opposes these changes. The bill’s effect would be to create lesssafe highways in Utah there would be more accidents leading to more injuries and possibly more deaths. State government studies of vehicle safety inspection programs in MO and PA say inspection programs deter accidents, injuries and deaths.

60 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

was made possible exclusively through our industry supporters and donors. On behalf of our staff, Board of Trustees, and the collision students we support, we would like to thank our continued supporters and donors.” “The Collision Repair Education Foundation has come a long way since becoming a purely philanthropic organization in 2008. The donation results of 2011 display that many industry members believe in the Education Foundation’s efforts to support collision schools and students,” said Doug Webb, Chairman of the Collision Repair Education Foundation Board of Trustees. “I want to thank the Staff for all of their efforts during 2011, all of the Board of Trustees, and of course, all the donors for their support during the year.” For a complete listing of the Collision Repair Education Foundation’s industry supporters, visit www.CollisionEducationFoundation.org. Inter-industry organizations and individuals who are interested in supporting CREF in 2012 should contact CREF Associate Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org or at 847-463-5244.

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NORTHEAST

Montanez III of P&L Consultants / IACDA will also be on hand March 9 from 8 p.m. to 9 p.m., discussing OEM Repair Procedures vs. Repair Standards in the first of a two-part series. Kristen Felder and Elizabeth Blackman of CollisionHub will close out March 9’s seminars with SOS: A Social Media Intervention. For a full schedule of the weekend’s seminars please see below. Then an after hours a Vendor Appreciation after party will be held from 10 p.m. to 12 a.m. “There isn’t anywhere within 500 miles where you can get education and information along with so much new equipment and products that specifically deal with our industry,” AASP/NJ President Jeff McDowell said. “I’ve been saying it for 35 years and God willing, I’ll be saying it for another 35. If you’re in the automotive repair industry, you need to be at NORTHEAST™.” The association has named Auto Body Distributing Co. at booth # 400/402/404, Ikotec USA at booth #

226, Team PRP NorthEast (PRP-NE) at booth # 211, and Toyota of Morristown at booth # 301-303 as their must see exhibitors this year. “At this point, I think we have only a few booths left,” McDowell adds. “It looks like a lot of companies are making an effort to reach the huge marketplace we have in the tri- state area. That’s another thing that makes NORTHEAST™ 2012 unique. It’s the kind of show you can drive to, get some training and see all the latest gear. No need to for plane rides or traveling across the country. It’s all in your backyard.” For more information on NORTHEAST™ and AASP/NJ, please visit www.aaspnjnortheast.com.

Full Seminar Schedule: Friday, March 9: 2012 NORTHEAST™ Leadership Forum Friday, March 9, 1pm - 5pm Location: Meadowlands Exposition Center Seminar Area A staple of the annual NORTHEAST™ Automotive Services Show, the East Coast Resolution Forum & Leadership Meeting welcomes state tC 2011

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automotive association representatives from around the country to provide updates on their organizations’ activities as well as share industry news with their peers. The Northeast Leadership Forum has always provided an exceptional outlet to network and learn from other state and regional associations who are facing very similar issues to yours, and with events and issues facing our industry we anticipate this year to provide the same stimulating dialogue we have come to expect. Shop Differentiation: How to Make Your Shop Stand Out Presented by Mark Olson, Industry Speaker & COO of VeriFacts Automotive Friday, March 9, 6pm – 7pm (Seminar Room B) Your repair business may have the best equipment, the best information and the best staff, but how do you effectively convey that to consumers and insurers? This presentation will show shop owners and managers how to more successfully promote your facilities and services to enhance business relationships, increase shop traffic and set you apart from the “guy down the street.”

Drying Waterborne: What You Need to Know NOW Presented by Tom Beck, CEO of Future Cure Friday, March 9, 7pm – 8pm (Seminar Room A) Waterborne is the buzz word on everyone’s lips, but do you know the realities of converting to water? Tom Beck has been involved with converting facilities over to waterborne paint since 2003, and will help attendees learn the ins and outs of the process in this “meat and potatoes” presentation. This course is both informative and educational...and not to be missed. Stop Guessing...Start Knowing Presented by Tom McGee, ALLDATA Friday, March 9, 7pm - 8pm AND Saturday, March 10, 12pm - 1pm As vehicle technology continues to change at a very rapid pace, it is critical that the collision industry keep pace. As new structural designs, advanced high strength steels, electronic and electrical systems, etc. are changing in vehicle construction, the industry can no longer rely on past experience to properly assess damage and make a proper repair. This seminar will help you understand many of the changes that we are facing today

and in the very near future.

OEM Procedures v. Repair Standards Decisions for Estimology™:Part 1 Presented by Larry Montanez III, P&L Consultants / IACDA Friday, March 9, 8pm – 9pm (Seminar Room B) This presentation will delve into the issues pertaining to what the OEM positions and repair procedures are and the development of Repair Standards within the collision repair industry. We will discuss how to obtain the OEM repair procedures and position statements, how to interpret and utilize those procedures to ensure an accurate and profitably damage report (estimate). We will also cover how the OEM repair procedures and position statements protect your liability.

SOS: A Social Media Intervention (Social Optimization Strategies For Your Business) Presented by Kristen Felder and Liz Blackman, CollisionHub Friday, March 9, 8:30pm - 9:30pm (Seminar Room A) We all know about interventions, right? They’re an orchestrated attempt by one, or often many, people (usually family and friends) to get someone to seek professional help for a problem. Welcome to S•O•S: A Social Media Intervention, Social Optimization Strategies for YOUR Business The social media revolution has already come and gone, but our industry still lags far behind on leveraging these powerful new social tools. When shops do test the waters, it is often with a less than committed approach. In a world where immediacy, transparency and relevance are now required, having a bad social footprint is just as damaging as having no social footprint. Social Media is the ultimate touchpoint in today’s marketplace and it is vital that shops are well-informed and fully equipped to tackle the challenge head-on. Our team of Social Media Interventionists will work with your group to focus them on the most important steps to fully understand and utilize the various Social Media platforms. We’ll drill down to each channel, cover the good, the bad and the ugly when it comes to usage in our industry. From there, we’ll give you a simple rehab plan to get your business’ Social Media Strategies in full gear for 2012. See NORTHEAST, Page 62

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 61

Continued from Page 61

NORTHEAST

The Highlights: 1) Social Overview 2) Understanding how the platforms work and interact with your customers 3) Why blogging is a social MUST 4) Video is King – YouTube creation made simple 5) Implementing your plan a) What do you need to stop doing now b) What do you need to start doing now c) Your website is not dead…yet? d) Planning meetings and how to have them

NORTHEAST™ Vendor Appreciation After-Party Friday, March 9, 10pm - 12am Location: Meadowlands Exposition Center Seminar Area The perfect way to unwind after the first day of the show, the Vendor AfterParty allows exhibitors to network with the AASP/NJ Board of Directors and fellow vendors following the conclusion of the first evening of NORTHEAST™ 2012. Additionally, the event offers a much-needed getaway for vendors who might have been too busy on the floor to catch a break or a meal during the show. A long-awaited NORTHEAST™ hit year after year, the Vendor After-Party is AASP/NJ’s way of saying “thanks” to the many exhibitors who continue to make the annual show such an overwhelming success.

Saturday, March 10: I-CAR: Vehicle Technology and Trends 2011 (NEW11) Presented by Peter Fryzel, I-CAR Saturday, March 10, 8:30am – 12:30pm (Seminar Room B) THIS IS A TUITION-BASED COURSE. In today’s ever-changing marketplace, efficiency is critical to bottom line performance and understanding the many facets surrounding new vehicle technology can be one of the most valuable ways to increase efficiency. New materials and equipment, changes in vehicle makers’ procedures, and government regulations all play a role in this world of change. The ability to recognize new technology and its implications during the repair process can be key to achieving a positive customer experience and the overall success of business.

How Estimating With Triage Increases Profits, Reduces Cycle Time and Supplements Presented by Larry Montanez III, P&L

Consultants; Facilitated by Metropolitan Car-O-Liner Saturday, March 10, 9:15am - 10am, MEC Lobby (Attendees will meet in Registration Area) PRE-REGISTRATION FOR THIS DEMO IS REQUIRED. Visit aaspnj.org to register. Space is limited. Learn the 5 major reasons collision facilities are adopting a streamlined/fast track repair process that allows more cars and profits through your facility, learn the how to implement the triage process and increase profits and eliminated waste. A live demonstration of the Triage process will be included in this 30 minute program. Painting With Blended Nitrogen Presented by Michael Haydell, President of Haydell Industrial Saturday, March 10, 11am – 12pm (Seminar Room A) For those of you who are not in on the secret, painting with nitrogen technology in place of compressed air will allow three important things to happen in your paint shop: 1. Your wet materials usage will drop significantly; 2. Your booth through-put will increase dramatically; 3. Your booth exhaust filter cost will nearly be cut in half. These are some strong claims; however, once you are exposed to nitrogen technology, it all adds up – and so quickly that you most likely have already missed the first act! Michael Haydell, the foremost authority on this new technology, will educate attendees on the ins and outs of working with blended nitrogen, heat and ionization, short-term and long-term advantages of nitrogen systems and much more.

Stop Guessing...Start Knowing Presented by Tom McGee, ALLDATA Saturday, March 10, 12pm - 1pm As vehicle technology continues to change at a very rapid pace, it is critical that the collision industry keep pace. As new structural designs, advanced high strength steels, electronic and electrical systems, etc. are changing in vehicle construction, the industry can no longer rely on past experience to properly assess damage and make a proper repair. This seminar will help you understand many of the changes that we are facing today and in the very near future.

The Customer Encounter: How the Front of the Shop can Make or Break Your Business

62 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

Presented by Management Success Saturday, March 10, 12:30pm – 2pm (Seminar Room A) The attitude and tone of the people in the front end of your shop can have a huge impact on the business’s relationships with customers. Attendees of this course will learn about the role of the waiting area, the importance of scheduling versus walk-in business, how to work with customers to create an optimal experience at your shop and much more. This course will help shop owners and managers attain satisfied customers for life.

OEM Procedures v. Repair Standards Decisions for Estimology™:Part 2 Presented by Larry Montanez III, P&L Consultants / IACDA Saturday, March 10, 1pm – 2pm (Seminar Room B) This program will cover the pros and cons of developing General Repair Standards. We will discuss the legal issues of the development of general repair procedures, who should develop them, how they should or should not be developed and how their development could affect you and the safety of the general motoring public. We will

also discuss how the interpretation of the OEM repair procedures and position statements directly affect how you write damage reports (estimates). We will also cover some important OEM position statements and P-Page logic issues that directly affect repair quality and your profitability. NUCAR Presents: Hybrid Aftermarket Service Presented by Jim Mickle, GM; Facilitated by Nick Halliday, NUCAR Saturday, March 10, 2:30pm – 3:30pm (Seminar Room B) Hybrid cars are getting into collision and shops are seeing more hybrids for repair. This presentation will help attendees get a better understanding of hybrid systems, learn how to safely work with hybrids and avoid costly and dangerous mistakes. ...more This course will also cover: ● Proper disabling of hybrid systems during repair; ● Hybrid batteries as related to collision repair; ● Welding on hybrid vehicles; ● Hybrid systems and paint booth challenges See NORTHEAST, Page 63

COLLISION REPAIR EPAIR PROFESSIONALS

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VeriFacts Automotive offers quality assessment and coaching, plus facility resources verification for collision repair facilities. VeriFacts is seeking individuals with the following requirements: • Extensive hands on collision repair experience • Teaching experience • Passion for mentoring technicians • Insurance experience is desirable VeriFacts Coaches will work with progressive shops while setting their own flexible schedule as an independent contractor. Full time and part time openings available in multiple states. Please apply with resume or cover letter to: Diana.Delmege@VeriFactsAuto.com or call (949) 272-3838

Val-Test Distributor Show Announces New Product Winners

The annual Val-Test Distributor Show and Meeting was held January 20–23, 2012 at The Naples Beach Hotel & Golf Club in Naples, Florida. Celebrating their 50th Anniversary, Val-Test is one of the nation’s leading buying and marketing group for distributors of hardware, sundries, and marine products.

(l to r): Heather Mingo and Shawn Orr accept the award for Sundry winner on behalf of Preval’s vFan Airbrush, while Matt Heiny (r) accepts for Shop-vac’s Toolmate

Vendors in attendance had the opportunity to spotlight their newest and most innovative products. The New Products were separated into two categories, hardware and sundries, and were on display for review and ballot vote by Val-Test members during the three-day extravaganza. This year’s Sundry winner is Preval for vFan Airbrush, the only device on the market that converts to an air gun and achieves both 3-inch fan and 1/16-inch

hairline spray patterns for detail. Amazingly portable, vFan can be used in all environments when powered by 150 feet of energy, Preval’s innovative, eco-friendly aerosol compressor unit containing 7 ounces of VOC-exempt propellant that powers more than 150 feet of linear paint coverage and up to 40 square feet of paint coverage per unit. The vFan Airbrush is also compatible with most workshop compressors. This product was represented by Sales Representatives Shawn Orr and Heather Mingo (877.753.0021). Visit their Web site for more information: www.preval.com. The winner for the Hardware, Plumbing, and Electrical Division went to ShopVac for Toolmate, a full size toolbox with detachable 2.5 gallon, 2.5 Peak HP wet/dry vac. The tool box includes removable tray with storage dividers, heavy duty aluminum handle and buckles. All vac accessories conveniently store inside the toolbox lid, including the supplied filter. This product was represented by Matt Heiney, Senior National Accounts Manager (570.321.7204). For more information: www.shopvac.com.

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Continued from Page 62

NORTHEAST

Safety and service (including first responder information and safety) will also be highlighted.

How to Capture More Cars, Customers and Revenue Through Digital Marketing Presented by Frank Terlep, Summit Software & Mobile Solutions Saturday, March 10, 2:30pm – 4pm (Seminar Room A) By attending this session, collision repair owners and managers will learn how to utilize digital marketing to increase sales, profitability, customer and vehicle counts that will lead to increased market share from the fastest growing population segment in America – the “digital customer.” Attendees Continued from Page 46

Tech Train

swell, Field-Based Account Manager, Shell Lubricants This session will cover: • An overview on motor oil fundamentals and common myths • Why it is important to use high quality motor oil in today’s engines • Details of SAE viscosity ratings • API and ILSAC certification, OEM certifications • Fluid additives and supplements • Synthetic vs. conventional oil • Proprietary oil ratings • Oil life monitors Saturday, half day, 1 p.m. to 5 p.m.

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will also learn how and why the Internet, email text messaging, social media and mobile technologies can help a collision repair business dramatically improve their customer service, communications and customer satisfaction. Attendees will learn: 1. The “Digital Community” – How big and what if your opportunity? What is a “digital customer?” 2. How Digital Marketing will improve customer retention, loyalty and referrals 3. How to use Digital Marketing to drive more cars, customers and revenues to your shop 4. About social media – word of mouth on steroids 5. The importance of online customer surveys, reviews and comments 6. The benefit of mobility – the most powerful marketing platform ever. trical and electronic systems all receive coverage, including those in hybrid vehicles. Sunday, all day, 8:15 a.m. to 4 p.m.

Nissan Driveability Diagnosis Tips by Dan Marinucci Dan clears up confusing aspects of its self-diagnostics and some unusual sensors in Nissan EFI Systems. Then he points you to trouble areas you might otherwise overlook when a Nissan problem is getting the better of you. Sunday, half day, 8:15 a.m. to Noon

Computerized Body ELECTRONICS: BCM / PSDM / WCM Diagnosis by Luis Ruiz, Mechanics Education Association Want to Contribute to this This class will provide diagnostic and testing information on electronically controlled wipers, electric power sliding doors (PSD), electronic publisher@autobod cruise control systems and pulsed controlled power windows. Cruise control and power windows now have multiple modules involved for Promote your business wit proper operation. It is no longer as simple an article featurin as pushing a exclusive switch when it comes to diagnosing these The or class will yoursystems. products services. cover the application of tests using scan tools, volt meters, and lab scopes. Sunday, half day, 1 p.m. to 4 p.m.

write

CALL: Joe forand detail Verus including PID,Momber Data Block, Bi-Directional Analysis by Luis Ruiz, www.autobodynews.com Mechanics Education 800-699-8251 Association MACS A/C Info You Need to Know This course covers the Snap On Verus by Paul DeGuiseppi, MACS This class includes a wide range of and ways to maximize its potential for advanced users. subjects that are important for today’s more information about Tech mobile A/C Register and engine cooling sysYour Email forFor Our tems that service technicians need to Train and to sign up for seminars know. A/C-related refrigeration, elec- please visit www.aasp-pa.org.

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