Northeastern March 2015 Issue

Page 1

Northeastern Edition New York Delaware New Jersey Pennsylvania

Maryland Connecticut Rhode Island Massachusetts

33

YEARS

www.autobodynews.com ww ww.autobodynews.com

Industry Responds to CNN Segment Exposing “Steering” & Use of “Sub-par” Parts in DRPs by Stacey Phillips, Assistant Editor

The recent CNN news report about the collision repair industry gave viewers an inside look at the challenges body shops face in order to repair cars safely for consumers. It aired on the Anderson Cooper 360 show Feb. 11. The 11-minute segment, entitled “Auto Insurers Accused of Pushing Cheap and Sometimes Dangerous Repairs,” explained the widespread use of “salvaged” or aftermarket parts as well as the practice of insurance companies “steering” work away from certain shops that aren’t part of their select service programs. In addition, the program discussed the lawsuits filed by more than 500 body shops in 36 states against the top insurance companies in the country to address their concerns. “This was just another validation of, as CNN put it the ‘scheme’ that’s

going on within the insurance industry and anyone associated with them. It also validates what shops all around the country have been seeing and dealing with for years,” said Ron Perretta, owner of Professionals Auto Body in Pennsylvania. “This segment [CNN] strengthens our position with the nationwide suits,” said Perretta. “These types of tactics are tragic and offensive, deliberate and most of all hurting family’s of consumers financially through diminishing the values of the second largest investment people are making all across the country and their safety.” During the show, Drew Griffin, CNN Special Investigation Unit Correspondent, looked into the allegations. He interviewed Bill Burn, a national auto repair expert, as well as Matt Parker, owner of Parker Auto Body in Monroe, LA. Both addressed the issue of “bad repairs” conducted See CNN Segment, Page 32

2015 Ford F-150 Long-Term Road Test

VOL. 5 ISSUE 12 MARCH 2015

only about the reaction to the story we reprint the article here with permission of Edmunds.com.

The following article was written by Travis Langness, Associate Editor at Edmunds.com. It was published on Jan. 26 and has generated a lot of commentary online. Since many readers heard

Aluminum Body Repairs Part 1 I hit our brand-new long-term 2015 Ford F-150 4X4 SuperCrew with a sledgehammer. On purpose. Twice. See 2015 Ford F-150, Page 24

Travis Langness, Associate editor at edmunds.com, takes a sledgehammer to a brand new aluminum Ford F-150 to test the collision repair process. Photo credit: Edmunds.com

AASP/NJ Hosts NORTHEAST™ 2015 Automotive Services Show March 20–22 by Chasidy Rae Sisk

Charles Bryant file photo

March 20 is right around the corner, bringing with it AASP/NJ’s 38th Annual NORTHEAST™ Automotive Services Show.

The increasingly popular event will be held March 20th through 22nd at the Meadowlands Exposition Center, located at 355 Plaza Drive, Secaucus, NJ, 07094. The association has planned an informative schedule of seminars, demos and other industry events to ensure that attendees receive as much

value as possible from the weekend. Charles Bryant, Executive Director of AASP/NJ, explains, “We host the Northeast Tradeshow to allow everyone in the industry to come together and see

all of the new and exciting things that are being introduced into the industry, and allow National Leaders of the industry to speak at the Leaders Meeting See NORTHEAST ™ 2015, Page 10

See also details on Courses and Presentations, p. 14

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

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


2 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com


Contents 84-Year-Old MD Woman in Year-Long

Battle with Shop . . . . . . . . . . . . . . . . . . . . . . 8

AASP/NJ Hosts NORTHEAST™ 2015 Automotive

Services Show March 20–22 . . . . . . . . . . . . 1

Auto Glass Repair Business in NJ Works

NATIONAL

$53M in Luxury Vehicles Destroyed After Cargo

Ship Takes on 3,000 Tons of Water . . . . . . . 52

‘Lifesaving App’ Developed by Lousiana

Body Shop Owner . . . . . . . . . . . . . . . . . . . . . 4

2015 Ford F-150 Long-Term Road Test . . . . . . . 1

to Improve Web Presence . . . . . . . . . . . . . . 22

3M Awards Tool Grants to Veterans Through

Found and Bitten by K9 . . . . . . . . . . . . . . . . 40

Attempt by Edmunds.com to Investigate Aluminum

Accidents . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

AudaExplore Donated $3M in Subscriptions

Body Shop Thief in CT Hides Under School Bus, Body Shops in RI Dealing with Black Ice

Body Tech Students Repair Boat . . . . . . . . . . . 18 Bradley Hoffman Named AIADA Chairman . . . . . 6 Broken Bumpers in MA Due to Snow Bank

Collisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

CREF and Hire Our Heroes Program . . . . . . 49 Repair Rates Runs into Controversy. . . . . . . 28 to Schools. . . . . . . . . . . . . . . . . . . . . . . . . . 49

Automotive Distribution Network Has Sold Out its Upcoming National Convention in

New Orleans . . . . . . . . . . . . . . . . . . . . . . . . 18

Courses for Owner/Managers at NORTHEAST™

Bobby Alloway’s PPG-Painted Car Wins

Despite Deer, Snow, and Ice, Hail Damage

CCRS Has Productive First Meeting of 2015 . . . 40

Dominates in PA . . . . . . . . . . . . . . . . . . . . . . . 8

Emissions Requirements May Cause

NY State Inspection Headaches . . . . . . . . . . 72

Fire Damages Shop in Staten Island, NY. . . . . . 22

2015 AMBR Award . . . . . . . . . . . . . . . . . . . 70

Dale Delmege Passes Away Leaving

a Lasting Impact . . . . . . . . . . . . . . . . . . . . . . 3

Diamond Standard Parts’ New Web-Based

Program “UNSUB”. . . . . . . . . . . . . . . . . . . . 61

Keenan Auto Body Opening 12th Location

Forget the Bandwagon, DePetro Drives the

Man Suffers Burns to Face and Hands

GEICO Generates Underpayment Complaints

Record Towing & Ticketing in CT . . . . . . . . . . . . 8

I-CAR Hybrid and Electric Vehicle

in Aston, PA . . . . . . . . . . . . . . . . . . . . . . . . . 8 in CT Repair Shop Fire . . . . . . . . . . . . . . . . . . 8

“Sisk - AASP-MA’s Midstate Chapter Hosts Two Guest Speakers at First Quarterly

Meeting of 2015” . . . . . . . . . . . . . . . . . . . . 41

Denver Broncos Classic Pickup Truck . . . . . 50

from Texas Shops . . . . . . . . . . . . . . . . . . . . 44

Disable Search . . . . . . . . . . . . . . . . . . . . . . 60

Independent Shops “Outshine” Dealership Repair

Centers in Consumer Reports Survey . . . . . 61

Tow Truck Driver Pinned by Car in MA . . . . . . . 18

Industry Responds to CNN Segment Exposing

COLUMNISTS

Large Portion of Antitrust Multidistrict Litigation

Attanasio - 2015 NADA Expo Brings

“Steering” & Use of “Sub-par” Parts in DRPs . . 1

in FL Dismissed, Refiled by Plaintiffs . . . . . . 62

23,000 to San Francisco . . . . . . . . . . . . . . . 66

Mexican Military Raids Body Shop,

the Bottom Line, or Does Green Mean Green? . 64

Midwest Auto Trade Show on February 19

Attanasio - Does Being a Green Shop Improve

Attanasio - Instagram and Twitter Grow Up . . . 46

Finds TX Vehicles . . . . . . . . . . . . . . . . . . . . 44

Prepares Industry for New Technology. . . . . 36

Attanasio - Strong and Getting Stronger:

Night-time Automotive Paint Additive has

Franklin - New Century Marketing Basics . . . . . 48

Sherwin-Williams Second Quarter

Luehr - Make More Money Using Theory

TX Man and FL Woman Dead in Independent

The State of I-CAR®. . . . . . . . . . . . . . . . . . . 54

Luehr - Cycle Time Success Using Little’s Law . 68 of Constraints . . . . . . . . . . . . . . . . . . . . . . . 42

Yoswick - Testing Shows Dramatic Differences

in Isocyanate-Blocking by Spraysuits. . . . . . 58

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

Indexof Advertisers

2015 Automotive Services Show . . . . . . . . . 14

Vehicles Glowing and Owners Crowing . . . . 57

Training Schedule . . . . . . . . . . . . . . . . . . . . 18

Airbag Explosions; No Recall Advice for

Used Car Buyers . . . . . . . . . . . . . . . . . . . . . 34

Vehicle Purchases Expected to Soar in 2015 . . 22

Management Group, his own firm, Dale stayed active in the industry by advising and consulting with companies as diverse as Hertz and VeriFacts. VeriFacts CEO, Farzam Afshar, has said VeriFacts implemented the Dale Delmege Award to recognize Dale’s significant and lasting contributions to each segment of the collision repair industry. “Dale was a great friend and mentor. He used to say he had held every known unpaid job in the industry. I know of few people as committed to, and influential in, their pursuit of the long term betterment of our industry than Dale Delmege,” said Afshar. “I was pleased to be able to recognize the scale of Dale’s contributions over the years by naming our ACE Award for the exceptional collision repair center the Dale Delmege Award.” Dale is survived by his wife Mary, his five children: Laura, Diana, Dale Jr., Mark and Caleb; and his eight grandchildren, as well as his sister, Leslie McDonald. Autobody News extends heart-felt condolences to his family. Dale requested that the Children’s Skin Disease Foundation, www.csdf.org, receive gifts of donations in lieu of flowers. Memorial services have not yet been announced by the family. Dale’s Autobody News columns can be read at http://www.autobodynews.com /columnists/dale-delmege.html

Acura of Westchester . . . . . . . . . . 46 Amato Agency. . . . . . . . . . . . . . . . 32 Assured Performance . . . . . . . . . . 18 Atlantic Hyundai . . . . . . . . . . . . . . 41 Audi Wholesale Parts Dealers. . . . 69 Automotive Art. . . . . . . . . . . . . . . . 17 Axalta Coating Systems . . . . . . . . 75 B-TEC Systems . . . . . . . . . . . . . . . . 4 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 16 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 30 BMW Wholesale Parts Dealers . . . 63 Car-Part.com . . . . . . . . . . . . . . . . . . 8 CarcoonAmerica Airflow Systems . 40 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . 34 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 47 Chief Automotive . . . . . . . . . . . 13, 19 Classifieds . . . . . . . . . . . . . . . . . . . 74 Clay Auto Group . . . . . . . . . . . . . . 53 Colours, Inc . . . . . . . . . . . . . . . . . . 25 Diamond Standard Parts, Inc . . . . 23 Ditschman/Flemington Auto Group. 35 Eco Repair Systems of North America, LLC. . . . . . . . . . 28 Empire Auto Parts . . . . . . . . . . . . . 42 Equalizer Industries, Inc . . . . . . . . 24 Eurovac, Inc . . . . . . . . . . . . . . . . . . 8 Fairfield Chrysler-Jeep-Dodge-Ram . 27 First Auto Group . . . . . . . . . . . . . . 49 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 33 Ford Wholesale Parts Dealers. . . . 50 Fred Beans Parts . . . . . . . . 20-21, 76 Gary Rome Hyundai-Kia . . . . . . . . 18 Glanzmann Subaru . . . . . . . . . . . . 36 GM Wholesale Parts Dealers . . . . 66 Herkules . . . . . . . . . . . . . . . . . . . . 10 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 38-39 Hyundai Wholesale Parts Dealers . 61 Imperial Ford-Chrysler . . . . . . . . . 22

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL

Dale Delmege Passes Away Leaving a Lasting Impact

Dale Delmege, a long-time industry veteran and staunch advocate for repair quality and responsibility passed away on the evening of February 15 at home in Escondido, CA, with friends and family present. Dale occupied many management and supervisory roles in the industry and was active in numerous associations designed to protect and promote excellence in collision repair. His legacy and wisdom will be long remembered. Dale was a Renaissance man with many and varied interests including poetry, music, acting, and art, in addition to serving and world travel in the U.S. Navy. Dale was Collision Industry Conference (CIC) Chairman 1999–2000. He is a Hall of Eagles member and a National Auto Body Council Founding Member and Director. Dale was also founder, past director and chairman of the Collision Industry Electronic Commerce Association (CIECA). He was recently made a lifetime member of the Society of Collision Repair Specialists (SCRS), one of only two such awards ever given by SCRS. In addition to writing a column for Autobody News, Dale wrote and commented widely for a number of other trade publications. Most recently the director of Chelsea

Infiniti of Norwood . . . . . . . . . . . . . Jaguar Wholesale Parts Dealers . . Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . Koeppel VW-Mazda. . . . . . . . . . . . Lexus Wholesale Parts Dealers. . . Malco. . . . . . . . . . . . . . . . . . . . . . . Maxon Hyundai . . . . . . . . . . . . . . . Maxon Mazda . . . . . . . . . . . . . . . . Mazda Wholesale Parts Dealers . . Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . Mercedes-Benz of West Chester . MINI Wholesale Parts Dealers. . . . Mirka Abrasives, Inc . . . . . . . . . . . MOPAR Wholesale Parts Dealers . Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . Porsche Wholesale Parts Dealers . PPG . . . . . . . . . . . . . . . . . . . . . . . . Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . Replica Plastics . . . . . . . . . . . . . . . Safety Regulation Strategies. . . . . SATA Spray Equipment . . . . . . . . Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . SEM Products, Inc . . . . . . . . . . . . Steamericas, Inc . . . . . . . . . . . . . . Steck Mfg. . . . . . . . . . . . . . . . . . . . Subaru Wholesale Parts Dealers . Tasca Automotive Group. . . . . . . . Thompson Organization . . . . . . . . Toyota Wholesale Parts Dealers . . Urethane Supply Company . . . . . Valspar Automotive . . . . . . . . . . . . VIP Honda . . . . . . . . . . . . . . . . . . . Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . Volvo Wholesale Parts Dealers . . . Wagner Auto Group . . . . . . . . . . . Walcom USA . . . . . . . . . . . . . . . . . Wheel Collision Center . . . . . . . . . Yonkers Kia . . . . . . . . . . . . . . . . . .

52 64

65 57 68 11 37 48 67

44 44 62 14 45

58 60 .2

22 32 12 43

.7 .5 31 15 71 51 55 70 .6 29 56

73 54 59 .9 26 26

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 3


‘Lifesaving App’ Developed by Lousiana Body Shop Owner by Stacey Phillips, Assistant Editor

After hearing about multiple accidents involving teens due to texting and driving, a Louisiana body shop owner decided he wanted to make a difference. Mike Watson, owner of Jim’s Body Shop in La Place, created an app called Text Guardian that prevents teens from using their phone while driving.

The anti-driving-and-texting app, Text Guardian, became available for Andriod users to download in February 2015, with an iOS version soon to follow

Text Guardian was designed for parents to download on their child’s phone. “The app literally locks your whole phone except for the ability to call 911 or three contacts that mom and dad agree to in case of an emergency,” said Watson. “What inspired me were too many news reports, and customers coming in and telling me that ‘I was texting and driving,’ ” said Watson, who began working at his father’s body shop on weekends and summer vacations at age 12, switching to fulltime at 17. Watson’s father opened Jim’s Body Shop in 1985. When he retired in 2006, Watson began running the business. He found that a lot of teens were coming into his shop with broken wrists, damage to their legs or back or even facial bruises. “For some reason, teens feel necessary to confess what happened to us. They’ll tell us what they did,” said Watson. With two children and three grandchildren of his own, Watson said the accidents he heard about as a result of texting and driving bothered him a lot. He began doing research on the texting apps that were available and found that they didn’t have some of the features he felt were important, such as accountability or reporting to

parents. After talking to some of his tech friends about the possibly of creating an app, he contacted the company Zapporoo for assistance in July 2014. The app has been tested over the last several months and the Android version will be launched the end of February. An iOS version will be released depending on the demand. “What’s in your heart can be brought forth with a lot of effort,” he said. Watson said the name Text Guardian came about after his secretary Linda Teate mentioned that the app was like a Guardian Angel. Once parents download the app and set up an administrative page, they can choose certain parameters such as the speed they would like the app to be activated. Once set, the teen is not able to make any adjustments. Another key feature sends an immediate text that reads “Text Guardian is in use at this time. Will text you back when it is safe to do so.” to anyone who tries to call or text the child while he/she is driving. “We see a lot of low-speed crashes,” said Watson. “They’ll be driving through a neighborhood at 20 miles an hour and that’s when they think it’s the safest to text. Watson said it’s actually one of the most dangerous times. Parents who download the app to their own phones have the same options except the app does not need to be password protected. If their teen figures out a way to override it, the parent receives an immediate text that the app has been deactivated or attempted to be deactivated. Watson encourages parents to also download Ignore No More, created by app developer, Sharon Standifird. If a teen is ignoring a parent’s calls or texts, the app causes the phone to lock automatically. “If they do manage to disable that app [Text Guardian] and they are still on the road, and mom and dad are aggravated, they can go to the Ignore No More app and lock their son or daughter’s phone.” All of the other apps on the phone will be blocked, except for Google Maps. “We feel navigation is very necessary,” said Watson. He said he was offered a large sum of money to sell the app but de-

4 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

cided against it once he found out that the intent was to destroy it. “I was ready to take the money until they divulged what they wanted to do with it,” said Watson. “I told them how would I be able to sit at night with the news coming on and another report of a teen being killed in a texting and driving accident. I might have a pocket full of money but I would have a destroyed heart.” He is currently working on a paid version of the app, which will offer an option to turn off blocked calls or texts. Future plans include partnering with trucking companies that want to ensure their drivers do not text and drive. Another goal is to form a relationship with insurance companies. The idea is to create a history calendar that tracks if the teen attempts to disable the app. The information will then be sent automatically to the insurance carrier. Watson said the goal is for the insurance company to offer discounts to those who use the app. “How could any insurance company refuse to offer this app?” said

Watson. “When Text Guardian is in use, phone distraction is not an issue. Text Guardian could save insurance companies hundreds of thousands in claims each year, not to mention the lives that will be saved.” According to the Insurance Institute for Highway Safety, 2,524 teens died in motor vehicle crashes in 2013. Watson and his wife Ann have realized the Text Guardian app could be a big part of saving lives. “It will absolutely save lives and that’s my dream,” said Watson. “The goal is to watch the stats go down.” “The greatest reward of all is going to be when I start seeing stats run down and then kids get so used to this app it becomes simply like a seatbelt,” he said. “We know that it could actually hurt business but that’s not the issue. Lives are the issue.”

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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 5


Broken Bumpers in MA Due to Snow Bank Collisions

The biggest reason Greenfield, MA residents are coming into body shops this winter is because of fender benders from skidding into snowbanks, reported Alessandra Martinez, wwlp.com. Liebenow Auto Body in Greenfield told Martinez that because most bumpers are plastic, they have trouble withstanding the cold, while the warm weather makes them more pliable. Linda Liebenow, the manager, explained to Martinez that they’ve had two or three bumper repairs a day since the “historic” blizzard hit the east coast during the first few days of February. Snow fall has become a regular occurrence in this part of the country, causing continuous accumulation on the snow banks. Liebenow recommends that car owners wipe off their vehicle before bringing it in, so they can get a better idea of where the repairs are and service it faster. However, washing the car with water may cause the doors and trunk to freeze.

www.autobodynews.com CHECK IT OUT!

Body Shops in RI Dealing with Black Ice Accidents

As southern New England approaches freezing temperatures, concern about black ice continues to grow. Body shops in Providence, RI have been packed with cars picked apart by the icy roads in recent weeks, reported Rebecca Turco, abc6.com. State Auto Body in Providence has seen a 15 percent increase in cars being brought in, according to owner Steve Paiva.

Photo credit: abc6.com

Paiva added that on icy roads, the size of the vehicle, and whether it’s all wheel or four-wheel-drive, won’t make a difference. Residents of Cyprus Street in Providence told Turco they have seen countless accidents along the steep hills, including a four-car pile up. Drivers are also dealing with tight squeezes along side roads made narrower by piles from snow plows, reported Turco.

6 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

Bradley Hoffman Named AIADA Chairman

The American International Automobile Dealers Association (AIADA) announced on January 25 East Hartford, Connecticut auto dealer Bradley Hoffman as its 2015 chairman. Hoffman took over the position during AIADA’s 45th Annual Meeting and Luncheon, held in San Francisco, CA. “As AIADA’s 2015 Chairman, I want to help usher this association into a new era,” said Hoffman. “This will be a year of ensuring that dealers’ rights are respected by the Consumer Financial Protection Bureau. It will be the year we pass Trade Promotion Authority to ratify trade agreements with Japan and Europe. It will be a year to face forward.” Hoffman is the co-chair of Hoffman Auto Group, which was founded in 1921 and operates dealerships in East Hartford, Avon/West Simsbury, and New London, Connecticut. Along with its two body shop repair facilities and premium, pre-owned vehicle dealership, the company employs over 500 individuals. Hoffman joined the dealership group in 1982. In addition to serving on AIADA’s board of directors since 1994, Hoffman is an active member of the auto retail industry, serving in

multiple board roles, including the Connecticut Automotive Retailers Association (CARA) board of directors. From 2003 to 2005 he served as chairman of the Automotive Free International Trade Political Action Committee (AFIT-PAC) and is a past member of the Audi National Dealer Council and the Lexus Dealer Council. Also during its Annual Meeting, AIADA presented Oakland, California, auto dealer Ed Fitzpatrick with its 2015 David F. Mungenast Sr. Lifetime Achievement Award. The award is named after the late AIADA chairman who was known throughout the auto retail industry for his commitment to his community and the industry. Fitzpatrick operates several dealerships in California, including Coliseum Lexus of Oakland, Valley Lexus, and Valley BMW in Oakland, California. “Ed Fitzpatrick is an exceptional example of the generosity of dealers toward their employees and communities,” said AIADA President Cody Lusk. “His belief that business is a vehicle to help others is a philosophy the entire dealer community should emulate. I can think of no one more deserving of this award.”


www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 7


Man Suffers Burns to Face and Hands in CT Repair Shop Fire

One man was hospitalized in the burn unit of Bridgeport Hospital with burns to his face and hands after a fire at a body shop on Ledyard Street in Hartford’s South Meadows on February 6, reported connecticut.cbslocal.com. A firefighter with a possible knee injury was also sent to the hospital after slipping on ice. Because of toxic, inflammatory checmicals inside, such as paints, oils and fillers, firefighters attacked the exterior, setting up dikes to contain any poisonous runoff. necticut.cbslocal.com. The cause of the blaze is under investigation.

Record Towing & Ticketing in CT

The city of Hartford was towing and ticketing cars at a record pace during the snowstorm that hit the Northeast on February 2, reported Mark Davis, wtnh.com. Over 500 cars were towed and more than 700 tickets issued to drivers around midnight who did not comply with the parking snow ban. Tow truck operator Joe Miano of Friendly Auto Body and Towing told Davis that he and six other tow truck drivers had been towing nonstop since 11:45 pm. Friendly Auto Body & Towing is just one of 13 towing contractors in the city that worked overtime.

Despite Deer, Snow, and Ice, Hail Damage Dominates in PA

While Montour County drivers are trying to avoid black ice and snow on the roadways, local mechanics are repairing damage from last spring’s hailstorm, reported dailyitem.com.

Swartz’s Ultimate Collision Repair tech Jordyn Roadarmel replaces the hood of a car damaged by a deer. (www.dailyitem.com)

According to Ben Sitler, facility manager for Swartz’s Ultimate Collision, it has been a “typical year” for ice related crashes. However, Swartz’s is still recovering from repairs needed after a hail storm that pelted Montour County in May, reported dailyitem.com. Estimator Bill Smith expects to be working on those vehicles into April. Shop foreman Bill Utt told the dailyitem.com that the damage caused by deer accidents this past fall was above average. Between snow and deer, the October to March period is typically when Swartz’s sees the most crash repair, Utt added.

EUROVAC ALUMINUM REPAIR

WET MIX DUST COLLECTOR

Eurovac is pleased to announce the introduction of the aluminum repair wet mix dust collector. This system is the safest method for collection of aluminum (explosive) dusts and will get your facility certified for aluminum repair. The unit works like a dry system but the difference is that dust is drawn into the unit through and forced down through a venturi, deep into the water. The water acts as a separator, and the majority of the dust particles fall to the bottom of the unit immediately. The unit will allow two technicians sanding at one time.

The system features include the following: • Powerful 13.8 amp motor with sealed bearings built to handle moist air from wet collector. 1560 watt pump produces 145” of water column; 140 free flow CFM. Has enough power for 2 technicians to sand with orbital sanders at the same time. • Quiet operation particularly for fine dust... motor housing is insulated and baffled for sound. • On/off feature...motor is turned on and off automatically by air switches when pneumatic tools are activated. This increases the life of the motor and reduces energy costs of running the motor. • Includes a plastic sight glass to determine when water should be added. • Stainless steel mist eliminator and final filter picks up 99.9% of dust to 10 microns. • 2” ball valve & hose at the bottom of the separator for removing sludge.

See us at the NORTHEAST AUTOMOTIVE SHOW!

BOOTH #431

Eurovac also has a central wet mix system for multiple bays. For additional information or pricing please contact a Eurovac representative today at 1-800-265-3878 or info@eurovac.com

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8 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

Keenan Auto Body Opening 12th Location in Aston, PA

Keenan Auto Body, Inc., the largest, oldest family-owned MSO in the tristate area, is making final preparations to open its newest location. “Our contractors have been very busy and haven’t stopped since we took ownership of the 24,000 sf facility in the summer of 2014,” said Mike LeVasseur, President and CEO. “To say we are excited opening our 12th location would be an understatement and we are all set for a March 2nd hard opening.” “We are no strangers to opening new locations but this one will be unique with the addition of the Autobody Revolution system,” said Craig Camacho, Marketing Director. “We are implementing the system, which has the ability to fully dry a freshly painted vehicle in three minutes which will give us another competitive edge in our market place.” Keenan is planning to host open houses that will showcase the new system, which has gained recognition from industry partners on the West Coast who would like to obtain the new technology for their shops. The company was founded in 1952 by Joseph T. Keenan and acquired by his son Donald in 1979. Visit BodyShopRevolution.com for info.

84-Year-Old MD Woman in Year-Long Battle with Shop

An elderly woman has been battling with a mechanic who has had her car for more than a year. Despite dishing out $2,100, her car has not been fixed and she hasn’t gotten her money back. Eighty-four-year-old Ruth Worthy brought her car into Guinyard Auto Repair for front end damage and to get her transmission replaced. After hearing nothing from mechanic Tony Guinyard for several months, Worthy took him to court and had him summonsed to appear multiple times. She told Horace Holmes of wjla.com that they can’t find him. When Holmes went to the shop, he found Guinyard outside, and asked him about Worthy’s car before the door was slammed in his face. Holmes finally spoke with Guinyard by phone and asked him why it has taken an entire year to give Worthy her car back. Guinyard told the reporter he has gone through three transmissions, trying to get one to work, and while he’s tried to contact her, he hasn’t heard from her since the summer. Guinyard also claims they were in a dispute over charges for labor. He said he returned her car so there would be no more trouble. Worthy has her car back, but it’s still not fixed.


Stop by our Booth #241 & 243 at the Northeast Automotive Services Show!

HEATED COMPRESSED AIR

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 9


Continued from Cover

NORTHEAST

2015

about what is going on in other locations around the Country.” Bryant is very excited about this year’s NORTHEAST™ event. “Members of the industry will have an opportunity to attend training meetings and seminars while attending the show to see what new technology is being introduced in the industry all in one convenient place as well as having the opportunity to purchase items right at the show for discounted prices not available at any other time. Like in recent years, the AASP/NJ NORTHEAST™ Tradeshow continues to grow in leaps and bounds. Based on the preregistrations and participation already taking place, this year will be no exception. This year will be one of the best shows, if not the best show, in many years.” Although NORTHEAST™ 2015 does not officially begin until Friday, March 20th, the National Automotive Service Task Force (NASTF) will be holding their Spring 2015 Board of Directors and General Meetings on Thursday, March 19 at the Meadow-

lands, in conjunction with the tradeshow. Thursday will begin with a closed Board meeting from 8 AM until noon, followed by NASTF’s General Spring Meeting from 1–4:30 PM. The meeting will begin with the Validation of Collision Repair Workmanship, where a panel of industry professionals will debate whether self-appraisal is

AASP/NJ 2015 NORTHEAST Trade Show will be held at the Meadowlands Exposition Center

sufficient or if OEMs should require the use of third party validation. The panel will include an OEM, collision repair shop owners and third party validation contractors. While pre-registration is not required, it is encouraged and can be accomplished through the tradeshow website. On Friday morning from 8–10 AM, AASP National will hold their Spring

10 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

Board meeting with affiliate chapters from around the country to review the association’s ongoing business operations and consider new member benefit offerings. Board members will also receive updates on the activities, initiatives and programs occurring at the affiliate level. From 1–5 PM on Friday, AASP/NJ and SCRS will co-host the 2015 East Coast Resolution Forum and Leadership Meeting. Historically, this forum has provided industry leaders and influential representatives with the opportunity to network and to share the problems encountered in order to pose possible solutions. AASP/NJ anticipates “this year’s forum to provide the same stimulating dialogue and insight that we have come to expect from the event with the objective to have others share their successes or challenges that help the group learn in response to specific questions posed by each attendee.” Although attending this event is free, pre-registration is required. For an engaging Friday evening, attendees will want to check out “East Meets West: Montanez and Clark Tackle the Issues” from 6:30–8:30 PM. Two of the industry’s most influential and popular speakers, Larry Mon-

tanez of Lange Technical Services and P&L Consulting, and Aaron Clark of Assured Performance Network, will discuss and debate the latest issues impacting the collision repair industry. Topics include training, insurer-mandated parts procurement, autonomous cars, labor rates, paint and materials reimbursement, lawsuits, cycle times, aluminum, post-repair inspections, and consolidation. The debate will conclude with an open mic forum, giving attendees an opportunity to ask questions. Pre-registration is required to attend. Saturday, March 21 offers a variety of educational seminars and demonstrations throughout the day. AASP/NJ has scheduled two I-CAR courses for the event, both taught by Peter Fryzel and Mike Bonsanto. The morning course, “Aluminum Panel Repair and Replacement (APR01),” will focus on what considerations should be taken into account when deciding whether to repair or replace aluminum panels. Instructors will also discuss how making the right decision can help to improve certain KPIs, such as cycle time and CSI. The afternoon I-CAR course, “Vehicle Technology and Trends 2015 (NEW15),” provides an update on new and changed technologies. Addi-


www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 11


tionally, the course will include an “auto show view” of vehicles that will be commonly seen in shops in the near future, and instructors will share information that collision repair professionals need to be aware of in order to perform complete, safe and quality repairs. Both I-CAR courses are feebased and require pre-registration. Besides the I-CAR courses, NORTHEAST 2015 will feature several more informative seminars. Saturday morning starts off strong with two onehour seminars beginning at 10AM. In “Damage Analysis and Blueprinting,” Lee Rush, Manager of Business Consulting Services for Sherwin-Williams, will explore the importance of a complete and accurate repair order as well as its role in a lean collision repair facility. Simultaneously, Derek Naidoo, President and CEO of NitroHeat Worldwide, will present “Lean Processing in the Paint Shop: Painting with Nitrogen.” Sponsored by FutureCare, this seminar will focus on techniques used to maximize efficiency and cost savings. The final two seminars this year are geared toward shop owners and managers. From 11:30 AM until 12:30 PM, Lee Rush will present “Administration Performance Management,”

outlining specific steps to a successful performance management strategy and detailing its role within a lean collision facility. “Stop Leaving Money on the Table,” presented by John Niechwiadowicz of Performance Consulting Services, will debut from noon until 2 PM with an encore presentation from 3–5 PM. For $25, attendees can learn how accurate quality estimates impact a collision repair facility’s financial health and many other critical aspects of the process. Throughout the weekend, several demonstrations will also be held. Ford Motor Company’s Damageability Product Concern Engineer, Larry Coan, and the OEM’s Senior Engineer for Paint and Body Repair, Gerry Bonnani, will present “2015 Ford F-150 Repair Information” three times over the course of the weekend at the following times: Friday at 7–8 PM, Saturday at 11 AM–12 PM, and Sunday from 11 AM–12 PM. During this demo, Ford’s representatives will provide examples of the new 2015 F150’s improved repair elements. They will also discuss Ford’s enhanced service information, available training courses, and the tools and equipment recommended for repairing the 2015 Ford F-150.

Body ody Shop Shop Leader Leader We Wee are W aare ree seeking ssee eeeekiking ng aa proven, ppro r ve ro venn,, experienced eexp xper xp e ieenc nced ed Collision CCol ollilissiion ol o Center CCen ente en ter Leader. LLeead ader e. We are a high volume, independently owned, Connecticut facility catering to the insurance industry and private sector. We have consistent, long term relationships with major insurers operating both on site and off. Our business is profitable and stable, but needs to be taken to the next level by a professional manager with the ability to hire, organize, and motivate a large number of skilled individuals. Collision experience is a plus but not required if you have the ability to lead in a mechanical environment, implement sound business practices and create a team environment while serving the needs of our diverse customer base. Organization and process skills are key as well as the ability to set and work toward goals. To be considered you must have verifiable and stable professional references, a successful earnings history, and be subject to drug and background testing prior to hiring. For the right leader we offer a compensation package ranging from $120 to 200K based upon actual bottom line results. You will enjoy benefits including paid vacations, medical, dental, and life insurance as well as 401K with company match.

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At 8:30 AM on Saturday, Larry Montanez will cover “Estimating and Diagnosis of Structural Damage on Aluminum-Intensive Vehicles and Joining Methods.” Pre-registration is required for this Metropolitan Car-OLiner facilitated course on the differences between how aluminum and steel vehicles absorb and manage collision impact forces and energy. Montanez will also discuss attachment methods and welding differences. The final demo, “Structural Collision Repair, 2015 GM Vehicles,” presented by GM Service Instructor Jim Mickle and facilitated by NuCar, will take place from 10–11 AM on Saturday. Mickle will cover the three important areas to repairing and replacing a vehicle’s structural components: measuring, cutting and welding. The seminar will also discuss the 2014/2015 Chevrolet Corvette Stingray and aluminum repair procedures for front and rear rails. The tradeshow floor, which will feature a variety of industry vendors and exhibitors, will be open on Friday from 5–10 PM, on Saturday from 10 AM–5 PM, and on Sunday from 10 AM– 3 PM. Featured exhibitors include custom painter Javier Soto who will create a custom design over the week-

end, as well as a guest appearance at BASF’s booth by West Coast Customs’ Ryan Friedlinghaus from 10 AM–2 PM on Saturday. Also that day, Ron Ananian, AKA the “Car Doctor”, will be broadcasting his nationally syndicated radio talk show live from the tradeshow floor. On Friday from 10PM until midnight, AASP/NJ’s Board of Directors will host their annual Exhibitor Appreciation After-Party with a special performance by comedian Gary DeLena. On Sunday from noon until 2 PM, NORTHEAST 2015 will offer their 7th annual Family Day, featuring a variety of indoor carnival games and sugary treats for the kids. Bryant welcomes all in the industry to make the trip to Secaucus for a great event, saying “The AASP/NJ is constantly preaching that the industry needs to be united in our efforts to address the many issues that the industry is faced with. You couldn’t find a better place for collision industry members to network than right here at the Northeast Tradeshow, thus bringing the concept of unity closer to reality.” To register for AASP/NJ’s NORTHEAST 2015, visit www.aaspnj northeast.com.


www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 13


Courses for Owner/Managers at NORTHEAST™ 2015 Automotive Services Show Administration Performance Management Presented by Lee Rush, Manager of Business Consulting Services, Sherwin-Williams, Saturday, March 21, 11:30am - 12:30pm (Seminar Room B) This course will cover the importance of Performance Management and its role in a lean collision facility. It will delve deeply into the Performance Management strategy, with specific steps outlined to ensure that participants learn how to manage employee performances in Sales and Service. This training provides critical information for delivering the value that customers and insurers are requiring in today’s dynamic marketplace. The goal is to implement an employee management process that will improve employee performance, employee satisfaction and retention. These proven processes deliver production increases while simultaneously driving internal costs down and improving over all shop morale. The Performance Management methods that are learned from this training will improve management and employee interaction, modify employee behav-

ior and reduce employee turnover and lost productivity. This enables the shop to move to the next level in performance management, increased shop productivity and improve employee satisfaction rankings. Attendees will be provided the tools to analyze their staffing, performance requirements, and tools necessary to implement Administration Performance Management process and begin to optimize their business performance.

How Have We Gotten Where the Industry is Today? Presented by Tony Passwater, President of AEII, Friday, March 20, 5:30pm - 6:30pm, (Seminar Room D) AND Saturday, March 21, 2pm - 3pm (Seminar Room B) This hour-long session looks at the strategies, practices and tactics the insurance industry has methodically implemented to direct the collision industry to where it is today. Have you ever wondered, how did all this happen? Why are our profits dwindling to the levels they are now, as we are running every minute of every day, and the pressure to do it faster and cheaper

14 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

is ever-increasing? Why have mandated parts procurement systems been forced into the industry? What is next? The strategies, practices and tactics used are obvious and clear when you take the time to see how it has been orchestrated. Knowing what these tactics are can go a long way in preventing more to come. It is time to be engaged; the MOVEMENT has begun.

Marketing to the Connected Consumer Presented by Frank Terlep, Summit eMarketing Sherpas. This course is sponsored by Mitchell International. Friday, March 20, 8pm - 9pm (Upstairs Press Room) AND Saturday, March 21, 2pm - 3pm (Upstairs Press Room) Generation “C” is not a demographic. It's everyone. Your existing and potential customers are all connected, and in control. Today’s connected consumers require businesses to connect, communicate, market to, sell and service them in the same ways they connect and communicate! Frank Terlep, CEO and Lead Sherpa of Summit eMarketing Sherpas, will facilitate this session and

help attendees understand the tools, technologies and techniques today’s auto body and repair shops need to utilize to connect with, communicate, market to, sell and service today’s “connected consumer.” By attending this exciting and educational session participants will learn about: • Important “connected consumer” statistics shops can use to create a winning sales, marketing and service strategy • What every shop’s sales, marketing and service strategy should include • Tools and technology shops can use to connect with, market to, sell and service the “connected consumer” • How to use these tools and technologies • How to increase sales and referrals from the “connected consumer”

Steering: A Legal Perspective. Solutions to Collision Repair Claim Issues Saturday, March 21, 11am - 12pm (Upstairs Press Room). A panel discussion on solutions to collision repair claim issues. Featuring attorneys James Mackevich, Joshua S. Bauchner and Mitch Portnoi. Moderated by


AASP/NJ Executive Director Charles Bryant.

Stop Leaving Money on the Table! Presented by John Niechwiadowicz, QLC, Inc. & Jerry McNee, Ultimate Collision Repair, Saturday, March 21, 12pm–2pm (Seminar Room A) AND Saturday, March 21, 3pm – 5pm (Seminar Room A) $25 / person THIS IS A FEE-BASED COURSE. The quality of an auto body estimate has a far-reaching impact on not only the financial health of the collision repair company itself, but also on many other critical aspects of the process. Company profitability, technician wages, admin staff bonuses, parts issues, vehicle cycle times, shop stress levels and much more can all be affected – positively or negatively – by the accuracy of the damage analysis. This very interactive and “hands-on” estimatics workshop covers the techniques that EVERYONE involved in the estimating process needs to know and employ to capture the operations needed to write a fair and accurate damage appraisal. Actual estimates are used to illustrate the vast financial and psychological benefits of incorporating the techniques discussed dur-

ing the seminar. Covers: • Often overlooked opportunities: - The top 25 operations you could be adding EVERY DAY! - Plus...the $$$ impact it could have on your profitability! • Common areas of contention...and tips to reach acceptable results • The surprisingly large amount of money left on the table for ‘small’ jobs! • Critical processes for capturing ALL operations • Effective use of a paint & materials calculator • Proper assessment of subjective times • Simple but highly effective rules of thumb • Job costing... The measurement of success!

Damage Analysis and Blueprinting Presented by Lee Rush, Manager of Business Consulting Services, Sherwin-Williams, Saturday, March 21, 10am - 11am (Seminar Room B) This course will cover the importance of a full and accurate Repair Order and its role in a lean collision facility. It will delve deeply into the mechanics of a comprehensive Dam-

age Analysis, with specific steps outlined to ensure that participants learn how to conduct a thorough analysis of vehicles and transfer that data into a Blueprint/RO prior to launching them into production. This training provides critical information for delivering the value that customers and insurers are requiring in today’s dynamic marketplace. The goal is to achieve a 100 percent accurate RO, which includes all parts, labor, materials and operations necessary to restore customers’ vehicles to “crashworthy” status. This proven process delivers production increases while simultaneously driving internal costs down. The repair planning methods that are learned from this training will drive down errors and redundancies commonly found in traditional estimating activities. This enables the shop to move to the next level in cycle-time reduction, increased vehicle throughput and higher customer satisfaction rankings. Attendees will be provided with the tools to analyze their facility layout and design, staffing and equipment requirements necessary to implement the repair planning process and begin

to optimize their business performance.

I-CAR: Aluminum Panel Repair and Replacement (APR01) Presented by Peter Fryzel & Mike Bonsanto, Saturday, March 21, 8:30am - 12:30pm (Seminar Room C) THIS IS A FEE-BASED COURSE. Should an aluminum exterior panel be repaired or replaced? It depends! There are many considerations to take into account when making decisions on aluminum panels. Being able to properly assess damage and repair or replace exterior panels requires understanding the properties, characteristics, design and construction of aluminum. Making the right decisions at the right time can play a role in improving KPIs like cycle time and CSI. Students will leave this course equipped to tackle this different—not difficult—material.

Lean Processing in the Paint Shop: Painting With Nitrogen Presented by: Derek Naidoo, NitroHeat Worldwide; Facilitated by Future Cure, Saturday, March 21, 10am 11am (Seminar Room A) Future Cure will sponsor an even

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 15


more in depth look at the benefits of “Lean Processing in the Paint Shop… Painting with Nitrogen” by Derek Naidoo, President and CEO of NitroHeat Worldwide, an international company with outlets around the globe. His extensive industrial engineering background has lead to a protocol for using nitrogen in place of compressed air as a superior “Fluid Carrier.” Learn the same technique for “Paint Shop Processing” used in the industrial sector for maximum efficiency and cost saving ideas.

NORTHEAST DEMO AREA PRESENTATIONS Presentations will be held at the AASP/NJ booth (#423, center of the show floor) unless otherwise noted. 2015 Ford F-150 Repair Information Presented by Larry Coan, Damageability Product Concern Engineer; and Gerry Bonnani, Senior Engineer for Paint and Body Repair; Ford Motor Company, Friday, March 20, 7pm - 8pm AND Saturday, March 21, 11am - 12pm AND Sunday, March 22, 11am - 12pm Ford Service Engineers will present examples of the improved repair elements of the new 2015 F-150, including a look at the separately serv-

iceable lower control arm brackets, the inner fender reinforcements that can be replaced more easily, the floor pan, cross member and rocker panel sectioning opportunities, along with the new b-pillar design that can be replaced without disturbing the roof. Other topics covered will be enhanced service information, available training courses and recommended tools and equipment for repairing the 2015 F-150.

Adhesives Refinishing Training Presented by Norton Abrasives, Friday, March 20, 8pm - 9pm Upon successful completion of this course, trainees will be able to identify the various types of plastics and other repair materials such as TPO, SMC, etc. They will also know the differences between urethane, acrylic and epoxy repair materials, along with the various types of seam sealers being used on vehicles today. They will be able to repair all material types properly and according to industry standards such as I-CAR and ASE.

Estimating and Diagnosis of Structural Damage on Aluminum-Intensive Vehicles & Joining Methods Presented by: Larry Montanez III,

16 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

CDA, P&L Consultants; Facilitated by Metropolitan Car-o-liner Saturday, March 21, 8:30am (Seminar Room A), Pre-registration is required! This presentation will cover the differences on how aluminum and steel vehicles absorb and manage collision impact forces and energy. We will also cover attachment methods and welding differences.

Not Just Dings and Dents! Presented by: Charles Aoun, Miracle System, Friday, March 20, 6pm 6:45pm AND Saturday, March 21, 2pm - 2:45pm AND Sunday, March 22, 10am - 10:45am Join Miracle System for live panel repair demonstrations on steel and aluminum.

Smart Power Management Presented by NuCar, Saturday, March 21, 12pm - 1pm This seminar is an overview of smart power management diagnostics. OBJECTIVES: • Cranking systems, including electronic control module-controlled cranking systems and hybrid cranking systems • Charging systems, including electronic control module-controlled charg-

ing system performance, charging system control and diagnosis, and hybrid charging systems • Three real-world case studies on the Chevrolet Malibu, GMC Yukon Hybrid, and Ford F-150 provide technicians with exposure to real-world customer cranking and charging concerns. • GM Service Information and Mitchell Repair Information are referenced for on-the-job diagnostic procedures.

Structural Collision Repair, 2015 GM Vehicles Presented by: Jim Mickle, GM Service Instructor; Facilitated by NuCar Saturday, March 21, 10am - 11am This seminar discusses repairing and replacing structural components on GM vehicles. It will touch on three important areas to repairing and replacing structural components on a vehicle: Measuring, cutting and welding. Each area relates to the performance of the repair as it will meet specific tolerance and factory guidelines. It is crucial during the repair to validate during the three areas to meet specification and customer satisfaction. The seminar will discuss the 2014/2015 Chevrolet Corvette Stingray and aluminum repair procedures for front and rear rails.


www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 17


Sherwin-Williams Second Quarter Training Schedule

Sherwin-Williams Automotive Finishes announced on February 2 its latest second quarter 2015 collision repair industry courses and training sites that will be available from April 1 through June 30, 2015. Participants will learn through a combination of classroom, digital, and hands-on settings at various metropolitan Sherwin-Williams Automotive Finishes training centers, according to Rod Habel, Sherwin-Williams Automotive Finishes Director of Training Operations. “Our hands-on and digital classroom training is available to all shop owners, managers, painters, and technicians, who can choose to advance their business-building, production-excellence and/or paint application techniques, as needed.” He noted that the following hands-on, paint and processes application-based courses will be offered during the first quarter: AWX Performance Plus™ Waterborne Refinish System; Color Adjustment and Blending; Fleet CFR; and Painter Certification. For information about the training visit http://www.sherwin-automotive .com/collision-repair/training-support/ or call 1-800-SWULTRA (1-800-7985872).

Tow Truck Driver Pinned by Car in Massachusetts

A tow truck driver in Webster, MA, was injured on February 2 when his legs became wedged between the ramp of the tow truck and the car he was towing, reported Donna Boynton, telegram.com. The accident happened when the truck driver from Frank’s Auto Body was towing cars violating a winter parking ban on Spring Street just after 12:30 PM, said Webster Police Lt. Michael D. Shaw. Police did not provide the name of the driver, who was taken to Harrington HealthCare at Webster. A representative from Frank's Auto Body told Boynton that the driver was not seriously injured.

Body Tech Students Repair Boat

Students at PA’s Cumberland Perry Area Vocational Technical School in the automotive collision repair course have taken on a project to repair a rescue boat, reported Deb Kiner, pennlive.com. The students are refurbishing a New Cumberland River Rescue boat used to search for Medard Kowalski, 17, according to school officials. Kowalski, a student at Cedar Cliff High School, went hunting on the river in a canoe on December 1 and has been missing ever since.

Automotive Distribution Network Has Sold Out its Upcoming National Convention in New Orleans

The Automotive Distribution Network’s 13th national convention has sold out, with a record-breaking crowd expected for the gathering taking place Feb. 26 through March 1 at the New Orleans Hyatt Regency. The ADN is the umbrella organization for three of the premier groups in the automotive aftermarket: Parts Plus, Independent Auto Parts of America, and Auto Pride. The combined strength and stability of these top groups in a Network of over 300 WD locations that service 1,500+ affiliated auto stores and over 2,000 affiliated service centers. In addition, these members support Network Products Warehouse, a member-owned warehouse distribution company located in Somerville, Tennessee. This facility is strategically placed to provide unique products and services exclusively for the members of the Automotive Distribution Network. “I salute the Network’s members for generating enthusiasm among their customer base for what should be our largest gathering yet,” said Mike Lambert, president of

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the Network. “The strong support from the Network’s manufacturer partners will be evident in our 50,000-square-foot expo area, enabling our members and their customers to have some face time with our vendors while checking out their latest products and services.” Six-time world champion driver Clay Millican will make an appearance with the Parts Plus/Great Clips Top Fuel dragster, in addition to other motorsports stars appearing at the expo in New Orleans. In anticipation of the sellout crowd, the Network signed several renowned seminar speakers to appear at the event to provide realworld training on topics ranging from vehicle diagnostics to social media to relationship-building with female customers.

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Vehicle Purchases Expected to Soar in 2015

Huntington Bank’s Third Annual Midwest Economic Index states 16 percent of consumers will purchase a car in 2015. The response represents a 10 percent increase over definite intent for car purchases in 2014 for consumers interviewed in Indiana, Michigan, Ohio, Pennsylvania and West Virginia. “It’s still a great time to buy,” said Huntington Auto Finance Director Rich Porrello. “Consumers are benefitting from low interest rates, high trade-in values and a wide range of manufac-

turer incentives. Add to that enthusiasm for an outstanding 2015 model year, falling gas prices and the ongoing economic recovery, and we’ll continue to see strong buyer demand throughout the year.” In comparison to consumers with definite plans to purchase a car in 2014, the Midwest Economic Index revealed increases of 13 percent in West Virginia, 12 percent in Western Pennsylvania, 11 percent in Indianapolis, 9 percent in Michigan and 8 percent in Ohio.

The automotive industry has now experienced five consecutive years of growth in the number of autos sold and is poised for a sixth in light of increased consumer optimism about the U.S. economy. However, studies by IHS Automotive on Polk Co. registration data found that the average vehicle on American roads runs more than 11 years old. In line with this growth, Huntington experienced its fifth consecutive year of record loan production in 2014.

Auto Glass Repair Business in NJ Works to Improve Web Presence

Parlin, NJ, based mobile auto glass repair company Atlantic Sun Auto Glass is working with the online marketing specialists at Prospect Genius to boost its Web visibility and accessibility to local drivers. Thanks to Prospect Genius’s efforts, people who query a search engine like Google, Yahoo!, or Bing looking for auto glass replacement and repair should now be more likely to encounter Atlantic Sun Auto Glass among the top results. Approximately 59% of adult Internet users visit a search engine daily, according to a survey by the

Pew Internet & American Life Project. Search engines are a primary way that people learn about local businesses, including auto glass repair companies. Studies have shown that sites in the top two or three search engine results get the most clicks. In order to push Atlantic Sun Auto Glass toward those coveted top slots, Prospect Genius’s team is implementing a process known as search engine optimization, (SEO). By incorporating industry- and location-specific keywords into Atlantic Sun Auto Glass’s Web site, Prospect Genius can help

search engines view the site as relevant for queries about auto and glass repair. “When people in and around Edison do a Web search using terms like ‘windshield replacement’ and ‘mobile auto glass repair,’ we want them to come across Atlantic Sun Auto Glass’s site,” explained Matt Gallo, a senior strategist for Prospect Genius. “Once people visit Atlantic Sun Auto Glass’s Web site and learn more about what the business has to offer its customers, they can make an informed hiring decision.”

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With loans totaling $5.2 billion, Huntington financed more cars than any other time in its 60-year history serving the automotive industry. During the year, Huntington added hundreds of dealers to its network, which now totals more than 3,700 dealers in 17 states. Additionally, Huntington held to super-prime lending, serving dealers locally and delivering 70 percent of indirect loan decisions within three seconds or less.

Fire Damages Shop in Staten Island, NY

A four-alarm fire damaged a repair shop in Stapleton in Staten Island, NY on January 24. The blaze erupted at Van Duzer Collision, Inc., a single-story shop on the 600 block of Van Duzer Street, just before 1 pm, an FDNY spokesman told silive.com. Thick smoke billowed out of the roof and the back of the structure, and the shop’s interior looked gutted, a witness told silive.com. The blaze was under control by 1:39 pm thanks to local firefighters. No injures were reported.

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Continued from Cover

2015 Ford F-150

We bought the $52,000 F-150 from Galpin Ford in Van Nuys, California. The day after the truck was delivered to our Edmunds office in Santa Monica, I went to work with the BFH, intentionally denting the Ford’s right quarter panel. Crazy? Maybe. But we wanted to find out if repairing the aluminumbodied Ford is more expensive and time-intensive than repairing traditional steel-bodied trucks. Remember, the F-150 is the first pickup truck with a lightweight aluminum body and bed. After much thought we chose to smash the bed side because it would need to be repaired, as opposed to a dented door, fender or hood, which could simply be replaced. So in the name of consumer awareness we dented our truck with two big blows from a sledgehammer (the impact also cracked the taillight) and drove it straight from the Edmunds garage to our local Ford dealer, Santa Monica Ford, and asked for an estimate. Take the jump to check out the sledgehammer video (on Edmunds.com).

Hiding the fact that we’re Edmunds.com was important so our ex-

fixed before they could be painted. According to the advisor, the aluminum would be much harder to fix than steel. His shop was trained to fix the aluminum but it required special tools and would take extra time. A job like this on an F-150 with steel panels “would take half the time.” After about 10 minutes, the advisor came out with an estimate. I approved the work and Detail of hammer damage. Photo credit: Edmunds.com asked if I could come back in perience truly represented the real a few days and photograph the repair world. No special treatment. in progress. He agreed. I also didn’t want to admit that I Stay tuned for Part 2. had hit the truck with a hammer, so I lied and told the service advisor that Aluminum Body Repairs Part 2 the damage happened while I was After bouncing an 8-pound sledgehamparked. I told him I had no idea what mer off the side of our new long-term happened. I also told him that to avoid 2015 Ford F-150, twice, I went underraising my insurance rates, I’d be pay- cover and drove it to our local Ford ing out of pocket for this repair. He dealer, Santa Monica Ford, for repair. grimaced and sympathized with me, As explained in Part 1 of our adthen got out his clipboard and pointed venture, the idea was to test the hypothout the areas that needed repair. esis that when the aluminum body of our Various sections of the panel had 2015 F-150 is damaged, it takes longer deformed and would need to be pounded and is more expensive to repair than a out. Near both the top and the bottom of more traditional steel-body pickup truck. the panel, there were creases and folds in Ford claims the 2015 Ford F-150 the aluminum that would need to be is up to 700 pounds lighter thanks to

24 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

its aluminum panels, which increases overall fuel economy and payload. But what happens when Thor decides to use your truck for target practice? According to Ford, “the majority of collision repairs can be completed by most body shops today (e.g. bumpers, grilles, mirrors, dings, dents) [but] major collision repairs should be performed by aluminum-capable Ford body shops or National Body Shop Network members.” Along with training from the “Ford F-150 Collision Repair Program” Ford body shops or independent body shops would need some specific equipment to repair the damage on our truck. Here’s a list of the equipment Ford recommends “to be aluminum repair capable”: ● Dedicated aluminum MIG welding system Welder must be 200v and equipped with Pulse MIG Technology ● Dedicated aluminum hand & power tools A small hand tool kit that contains all needed tools has been developed and is required to be purchased through Rotunda ● Dedicated aluminum dent extraction system Dent extraction system must contain an


aluminum stud welder, heat gun, pyrometer, aluminum hammers and dent extraction system ● Dedicated aluminum Wet Mix air filtration system Dust extraction system must be a Wet Mix technology system and can be a portable or central installed system ● Work area separation / isolation system Work separation can be an aluminum separation (Curtain) system or a separate room. Aluminum vehicles undergoing repairs must be able to be separated from vehicles undergoing steel repairs ● Specialized aluminum SPR rivet gun Approved by the Ford Paint & Body Technical Center.

This might seem like a complicated list, but many body shops have had this stuff for years. Aluminum body panels on cars aren’t really new. They’re just new in the pickup truck segment, so there are dozens of independent shops and Ford dealers near our Santa Monica office that can handle this repair. Finding a certified independent shop, however, or a properly equipped dealer might be more difficult in other parts of the country. When I dropped the truck off at Santa Monica Ford, the manager told

me they would definitely be repairing the panel, not replacing it. Perfect. It would take “seven to ten business days” to finish the job and they welcomed me back to take photos of the process. Less than a day after I handed over the keys, though, I got a call from the body shop. The service advisor had misquoted the price of a part and they needed my approval to move forward. Ruh-roh. The second time I hit the truck, the taillight cracked, and even though it still functioned properly we wanted to fix it. Ideally, we’d replace just the broken piece, the lens. Unfortunately, it’s permanently mated to the housing and Ford only sells this part as a single unit. What’s more, we got our F-150 in the Lariat trim level. That means it’s equipped with (amongst other things) a blind-spot monitoring system. The sensors for that system are housed in the taillight and as you might expect, this all led to a higher price for the taillight assembly than previously expected. Much higher. The price jumped from $106.28 to $887.25. For a taillight. Without much of a choice, I approved the price increase and thanked the shop for double-checking with me.

Two days later, I checked in on the F-150 to see what progress had been made. The body shop had removed the “Sport 4x4” sticker and the taillight and started dent repair, pulling out the damaged areas. Four days after dropping off the truck (two days after my first checkup) I dropped by the shop again. This time they were in full sanding mode, prepping the truck for paint. If I looked closely, I could see where the sledgehammer had made contact, but the damage was starting to disappear. During the second visit, the service advisor let me know the truck would be finished on schedule, just a few days later. Sure enough, seven days after we dropped off the truck, it was ready to go. Check out Part 3 as we welcome the 2015 Ford F-150 back into our fleet with full details on the cost to repair it.

Aluminum Body Repairs Part 3 “The normal aluminum labor rate is $120 an hour, but since you’re paying out of pocket I’m going to cut you a deal,” the service advisor said, holding back the computer print-out. “I’m only going to charge you our normal rate of $60 an hour but it’s

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over 20 hours of labor.” When I dropped off our long-term 2015 Ford F-150 a week ago, I couldn’t tell if the advisor was trying to soften the blow of a costly repair or if he was really taking pity on me. There was no “Aluminum Body Rate” on their posted list of prices in the waiting room, just the “Body Rate per Hour” of $60. Whether this was an exaggeration or not, it was a nice sentiment. I lied to the service advisor, so in his mind, I was the victim of a hit-and-run accident and I deserved a bit of leeway. The damage was actually a result of two blows from a sledgehammer. We were testing the theory that aluminum is more expensive to repair than steel and I had lied about the damage to get the most realistic customer experience possible. So far, it seemed to be working. The repair would take “twice as long as steel” but I’d be paying half the standard rate. It was time to break out the calculator and do some funky math. He handed over the sheet and explained each item. After straightening the panel as best they could, they’d apply a specialized aluminum paint filler, then primer, paint, color sand and buff the panel, replace the taillight and put on a new “Sport 4x4” sticker.

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For “seven to 10 business days” worth of work, the price of labor and parts totaled $2,082.73. My eyes went wide, but I signed the estimate, declined a rental car and handed over the keys. As I mentioned in Part 2 of the story, the price went up quickly when the taillight turned out to be more expensive than previously thought. Instead of the $106.28 for a standard taillight, our Lariat’s LED light with the blind-spot sensor cost $887.25. With the subsequent increase in sales tax, the repair bill totaled $2,938.44. Ouch. True to their word, the body shop finished the work a week after I dropped the truck off. And to my eye, they did an almost-perfect job. The panel is straight, it retains all the original character lines and the paint is matched perfectly. The only real flaw is the placement of that “Sport 4x4” sticker. It’s about two inches too far to the left of where it should be. Dan Edmunds came with me to check on the repairs and neither of us noticed at first, but it certainly stands out now that our more eagle-eyed co-workers have pointed it out. Side note: We’ve contacted the dealer and they’ve ordered a new sticker. An outside vendor does the

sticker placement and they’ll come to us to fix it, free of charge. I should note that repairing aluminum differs from repairing steel in several ways. It requires special tools (re-read Part 2 if you missed those details) and it stretches in different ways than steel. As a result it can require a more experienced hand. It seems like the staff at Santa Monica Ford has that part covered. But what about replacing body panels all together? If we had been in a more serious accident, with another vehicle involved for instance, and we needed a panel replaced, could it take a shop longer to get that panel in stock? According to Ford, the body panels aren’t any more expensive now that they’re made out of aluminum. The price for a replacement right rearquarter panel on a steel-bodied 2014 F-150 is $967.48. And for the same panel on an aluminum-bodied 2015 F150? $967.48. That’s nice to hear, but what would it have cost to fix a steel panel rather than replace it? As you’ll notice in the above photo of the estimate, there are 24.4 hours of billed labor. Of that, 20 hours are listed for the repair of the aluminum body panel. The other 4.4 hours are things

like removing the molding, taking off the bumper and uninstalling the tailgate. Clearly, that labor wouldn’t take any more or less time regardless of what the parts are made of. If we go with the theory that our service advisor presented though, and assume fixing a steel panel would take half the time, it works out to just 14.4 hours of labor. Work that in to the above estimate and you’ll get a total of $2,338.44. That’s $600 less. Let’s take that a step further, though. Assuming that the labor rate for aluminum was the $120 an hour the service advisor told us, and going with our quoted time of 20 hours or body labor to pound that panel out, we’re looking at $4,138.44. That’s a difference of $1,800, a price increase of nearly 77 percent versus the cost of repairing a steel panel for 10 hours at $60 per hour. To be sure we called our regular body shop, Golden Hammer in Santa Monica. The shop has fixed dozens of dented, dinged and damaged Edmunds long-term test vehicles. That shop charges $50 an hour to fix a steel panel and $105 an hour for aluminum. Take it a little further down the rabbit hole and there’s insurance to think about. If

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we had gone through insurance to pay for this repair, my out-of-pocket cost for the repair might not have changed so much, but that’s probably not where it would end. Imagine you’ve got a $500 or even $1,000 deductible on your insurance policy. You hit a tree, tell the body shop guy you have no idea what happened, but insurance is paying to fix it. Your insurance premiums may go up, but the remainder of the cost is passed along to your insurance company. In this scenario, the associated insurance cost for owning an aluminum-bodied vehicle likely goes up too. Maybe it already has. There’s plenty to speculate about when it comes to the new 2015 Ford F150, and we’ve got a year to keep testing out our theories, but there are a few things we know for sure. One: It takes more time, unique tools and specialized training to fix aluminum body panels. Two: Those repairs, whether through higher labor rates or longer service times, cost more money than repairing steel. And three: It’s really fun to smash things with a sledgehammer.

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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 27


Attempt by Edmunds.com to Investigate Aluminum Repair Rates Runs into Controversy by Stacey Phillips, Assistant Editor

A recent video and transcript released by Edmunds.com has caused controversy in the industry. During the twominute video, Travis Langness, the Assistant Editor at Edmunds.com, hit a brand new 2015 Ford F-150 with a sledgehammer. Twice! Ouch, said several industry players, but it wasn’t just about the damage to the truck. His intent? To find out if it takes longer to repair the aluminum-bodied truck than a steel-bodied one and, perhaps, belatedly, to compare the costs involved. Langness drove the F-150 to the body shop at Santa Monica Ford in greater Los Angeles to put it to the test. After going through the repair process, and admitting in his article that he had misrepresented the nature of the damage, he concluded that it took more time to fix the aluminum body panels and cost more money than repairing steel. The original version is reprinted with permission from Edmunds.com on the cover. Autobody News asked Edmunds.com for further comment. “As with any vehicle in Edmunds’

Long-Term testing fleet, our F-150 experiment was designed to simulate a service experience of any regular truck owner,” said Scott Oldham, Editor in Chief at Edmunds.com. “Like many of

him to get the work done. While we were surprised to learn from the advisor that the repairs typically cost twice as much and typically take twice as long on the new aluminum-bodied

Travis Langness, Associate Editor of Edmunds.com, before taking sledgehammer to Ford F-150. Photo courtesy: Edmunds.com

these owners, we took our vehicle to the nearest Ford dealership for the repairs. The service advisor said that his facility could handle the repairs, and we trusted

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the time and the cost that was quoted to us, and we were satisfied with the quality of the repairs.” However, Edmunds.com did not test a steel-bodied truck with damage from a similar impact. Autobody News contacted Ron Davis, owner of Santa Monica Ford, and learned that he had no idea that Langness was pretending to be an ordinary collision customer. “I think it’s silly to try and extrapolate an industry trend from a $2,500 repair,” Davis said. “It seems like they came in with an agenda.” Davis said the dealership made a quality repair and charged a fair price. “Edmunds is making a mountain out of a molehill,” he said. “To draw conclusions on an industry trend from an isolated case on a small repair like this is a faulty conclusion on the part of Edmunds.” A typical repair of course is not going to be the result of a sledgehammer dent. This was a unique situation and may not represent standard repairs statistically. However, the question remains, ‘Is this going to be the general case for aluminum repairs?’

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“We really won’t know the impact for awhile because we use a make and model rating system, which is basically based on our claims data,” said Dick Luedke, spokesperson for State Farm Insurance. He said the insurance company typically tracks the cost of insuring every vehicle by make and model. “When those costs change because of a change in the structure of the vehicle, as is the case is here for the Ford F-150, we will be able to see what impact that has, whether it increases the cost or decreases the cost and we adjust our premiums accordingly.” There has been much speculation among auto body shops that aluminum repair will be more expensive because raw aluminum costs more than raw steel. “We don’t make that supposition,” said Luedke. “We let our data tell us whether that is actually true before we actually change our prices. Generally speaking you need about a year’s worth of data for it to be at all meaningful.” Autobody News spoke to Michael Levine, Truck Communications Manager at Ford Motor Company, regarding the video posted by Edmunds.com. “In our experience, the cost to re-

pair cosmetic damage to aluminum is comparable to steel,” said Levine. “For cosmetic repairs, aluminum isn’t really any more difficult to repair than steel is based on historical data collected from repairs of other Ford vehicles with aluminum body panels; it just requires different training and it might require different tools.” He said it should have taken less than 10 hours to repair the truck. Ford has used an aluminum hood on the Ford F-150 since 1997. Levine said that by using high-strength aluminum alloy that’s more dent- and ding-resistant than the steel body of the outgoing truck, the company is able to significantly reduce the weight of the Ford truck by up to 700 pounds. “When we do that, the weight saved comes back to the customer in terms of better performance. The truck accelerates faster, it brakes sooner, it can tow more, it can haul more and it helps get better fuel efficiency,” said Levine. “…In the event of a major collision we’re actually going to save time over the previous steel truck because we’ve designed the truck in a modular fashion so some structural repairs can be completed with less labor,” he said.

30 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

The 2015 Ford F-150 went on sale this past November and is now available nationwide. In the case of Langness’s truck, he paid cash for the F-150 repair so an insurance company was not involved. He also made it clear that the truck would not be resold any time soon. Levine said each Ford dealer and independent body shop sets it own hourly repair rates, based on the local market. Todd Hesford, the owner of Mission Viego Auto Collision in Orange County, CA, is in agreement that ultimately it will be up to the individual body shop in regards to price. “From our personal standpoint, I have zero ideas of raising the prices specifically for aluminum repair.” He said as a business if you want to stay relevant and in the game, you need to invest in the tooling and education to fix today’s cars. “To think that we’re going to have two types of costs just because one is made out of a different material, I think that’s foolish because aluminum has been around for a long time and we haven’t had two sets of prices,” said. Hesford's family has owned Mission Viego Auto Collision since 1979 and been based in the

same location since 1983. Hesford, however, did say he finds aluminum repair to be more challenging than similar repairs to steel. “If you speak to anybody, the OEMs, the insurance companies, the collision centers, they are all going to agree and tell you that repairing aluminum is more difficult and it does take longer.” After watching the video, Hesford said, “I don’t think the test was very fair. You say you want to do a test and a comparison, where is the same hit on the same truck with the same amount of pressure in the same spot with a steelbodied car?” He did find it impressive that the aluminum held up. “Hat’s off to Ford because that thing took a hit,” he said. “The one thing I learned is that truck is tough!” Oldham from Edmunds.com said this experiment underscores the importance of buying and testing vehicles to give their audience a true scope of the ownership experience. “We'll continue to put our Ford F150 through the paces over the next year and report on all of the good and bad and everything in between,” he added.


www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 31


Continued from Cover

CNN Segment

by some body shops allegedly due to pressure from the insurance companies to use sub-par parts. John Eaves Jr., of Eaves Law firm in Jackson, Mississippi, also spoke during the segment. “Every state in the union is experiencing the same sort of struggle here between the body shops trying to do the work the right way, and the insurance companies trying to cut corners and force them to use unsafe parts and unsafe methods on their cars,” said Eaves, the lead attorney for the antitrust Multi District Lawsuit filed in Florida. Buddy Caldwell, Louisiana’s Attorney General, and Jim Hood, Attorney General of Mississippi, were also featured. Both discussed their concern about safety issues using these kinds of parts. Caldwell has already filed a lawsuit against State Farm Insurance, and Hood is in the process of filing one as well. Hood explained the problem of insurance companies steering business away from body shops that don’t follow their rules. “They’re going to say, we’ll

blackball you. We won’t put you on our select service list, and we’re going to make you send us estimates [supplements] to us five different times just to aggravate you. That’s what they do,” said Hood. “They use their economic power to grind down working people.” CNN included the following statement from State Farm: “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service Program while at the same time making it clear they can select which shop will do the work.” Dick Luedke, spokesperson for State Farm Insurance, said that only a small portion of the information they provided to CNN was used in their report. “We are disappointed that CNN did not choose to report what you have already reported, that all of the counts in the multi-district litigation in Florida that are specific to the state of Florida have been dismissed twice, although the court has permitted the Florida plaintiffs a third chance to re-plead,” said Luedke. “Moreover, a magistrate judge has recently recommended to the district judge that the Mississippi complaint also be dismissed. We did make CNN aware of those rulings.”

Neil Allredge from the National Association of Mutual Insurance Companies was also interviewed by Griffin. “In many cases, these parts are no different,” said Allredge. “They’re made

made in Taiwan and coming apart, Allredge went on to say that he didn’t know the circumstances of the parts Griffin mentioned and didn’t provide further comment.

Matt Parker, Owner of Parker Auto Body in Monroe, LA showed CNN’s Drew Griffin a re-manufactured headlight that State Farm asked him to use in a Toyota Tacoma

in the same factories. One just comes out with an auto manufacturer’s name on it and others don’t.” When Griffin told Allredge “That’s not true,” Allredge disagreed. After Griffin showed him a replacement hood for a Honda that was

During the show U.S. Senator Richard Blumenthal, D-Connecticut, said, “Salvaged parts, inferior or even counterfeit parts certainly raise safety concerns. And often, those kind of parts involved in this practice of steering,” said Blumenthal. “And that’s why I

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have been concerned for years about it and why I think the Department of Justice should be investigating. One of the cars featured on-air was videotaped at Clinton Body Shop in Clinton, Mississippi. John Mosley, owner of the shop and the President of the Mississippi Collision Repair Association, said CNN contacted him when they were in the area interviewing the attorney generals. He said the Executive Producer of the show, Scott Bronstein, asked if Mosley had a car that had been taken to a direct repair shop and suffered from a poor repair due to the parts used or actual labor operations performed. He replied that he had a vehicle brought in recently from Eugenia Randle. Randle brought her car into Mosley’s shop after it had been repaired twice at a “preferred” insurance company shop and was still not working properly. In the CNN report, Randle said, “Well, cosmetically to me, it looked fine. But once I got in and got down the street, it just started driving really crazy. And I immediately took it back,” she said. When she brought it to Clinton Body Shop, Mosley said one of his

employees took it out for a drive and found it to be unsafe. “So we put it up on the rack, we found the bent wheels, the frame damaged and other issues with it,” said Mosley, who also owns a shop in Richland. After CNN’s Griffin took it out for a test drive himself, he said, “Not only the tail section ripped and unrepaired, three of four tire rims [wheels] were damaged. And as I drove, the steering wheel was shaking so violently, I had to grip down from veering to the right. The front left tire was just wobbling,” said Griffin. Griffin was referring to a damaged left rear frame rail. “I carefully drove this shaking car right back to the insurance company’s preferred auto body shop, where the general manager promptly told us to leave.” In response to the CNN report, Jack Gillis, Executive Director of Certified Automotive Parts Association (CAPA), said, “The bad news: we all know that substandard parts exist in the market. The good news: CAPA’s independent, fully transparent nonprofit rigorous quality certification program enables shops, insurers and part distributors to identify high-quality, safe and good fitting alternative

parts. Because neither shops nor insurers can identify quality alternative parts by looking at them or depending on seller’s claims, CAPA provides the market with the ability to make an informed and quality-based choice. Shops and consumers want repairable vehicles without compromising quality. CAPA provides that option.” He added, “As to the broad brush disparagement of collision repair shops, clearly there are thousands of other American collision shops that do quality work and use CAPA quality parts—it’s just too bad that they weren’t part of the story.” In a recent letter to its members, the Society of Collision Repair Specialists (SCRS) stated, “The CNN special program highlighted the practices of identifying the cheapest parts in their claims settlement practices, and it is similarly common that their indemnification practices reflect prices that are substantiated by the lowest common denominators in the market as well; not necessarily what consumers would support in a well-functioning marketplace. “It is important to recognize that there are both ‘good’ and ‘bad’ market representatives in every trade and pro-

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fession. It would also be inaccurate to make the assertion that simply because a collision repair business works with an insurance company, that they must be performing sub-par work.” SCRS further stated, “What the newscast helped to highlight was that the system is broken, allowing those with the financial responsibility to indemnify for loss to interject themselves into influencing price and thereby the process and/or quality of services provided.”

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Parts Hours: Mon-Fri: 7:30-6:00; Sat: 8-4 email: Ifsparts@fitzmall.com 905 North Frederick Ave., Gaithersburg, MD 20879 www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 33


TX Man and FL Woman Dead in Independent Airbag Explosions; No Recall Advice for Used Car Buyers Unadvertised safety defects can make buying a used car in America a dangerous decision. Carlos Solis died in January 2015 after the airbag in a used car he bought last year from a Texas dealer exploded, sending a piece of metal into his neck, reported Hiroko Tabuchi, nytimes.com. Solis, 35, was not aware when he bought the vehicle that its airbags could be defective and had been recalled, according to a lawsuit filed by his family on January 26. A New York Times review of other vehicles listed online by the dealer, All Stars Auto Sales in Cypress, TX, shows that close to half of those cars have also been recalled for safety defects, but have not been repaired. Federal laws do not require used car dealers to repair vehicles with safety defects before putting the cars back into public use, and dealers do not have to disclose to customers that a vehicle is the subject of a recall, reported Tabuchi. Congress has been presented with legislation to change this, but no progress has been made. Consumers are left on their own to check whether a used vehicle has been recalled for a safety defect by either purchasing a vehicle history report from a vendor like Carfax or running their ve-

hicle identification numbers through an automobile website or federal safety database. After a year of record recalls over faulty General Motors ignitions and Takata airbags, used cars with recalls continue to be sold to unknowing buyers. Hien Tran, 51, is yet another suspected victim of an airbag rupture in Florida. She did not know that the used 2001 Honda Accord she bought from a dealer a year earlier had open recalls, her family told Tabuchi. She died after her Takata-made airbag ruptured in an accident in September, sending metal shards into her face and neck, Tabuchi reported after speaking with local authorities. Solis’s death on Jan. 18, caused by the Takata airbag in his 2002 Honda Accord, was the sixth fatal accident worldwide linked to the faulty airbags. His passenger, an 11-year-old girl, was not injured. Despite the death, All Stars Auto Sales continues to sell cars with defects, according to the article. Of the 33 used cars listed on the dealership’s online inventory, 15 have open recalls, reported Tabuchi. Two of those—a 2005 Honda Accord and a 2006 Ram pickup—are under recall over Takata’s

34 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

airbag defect but have not been fixed, according to a search of the cars’ vehicle information numbers in a federal database. At least five more cars in the dealer’s inventory, including a 2006 Chevy Cobalt and a 2005 Pontiac Grand Am, are under recall for defective ignition switches but have not been fixed, according to the database. A sixth car with a faulty ignition switch, a 2006 Chevy Impala, is marked on the dealer’s website as sold. Other defects in cars listed in the inventory include problems with the crankshaft and brake lights. A dealer representative who declined to identify herself told Tabuchi she could not talk about individual sales, but did confirm that the online inventory was up to date. Her manager could not be reached for comment. The Accord that All Stars Auto Sales sold Solis had two previous owners, both registered in Texas, according to a vehicle history compiled by Carfax. The original owner sold the vehicle in 2011, according to the Carfax report, the same year Honda first recalled that model over defective airbags. A Honda spokesman, Chris Martin, told Tabuchi the automaker had sent multiple recall notices to previous

owners, starting in 2011. Though the car was later included in a new recall, in June of last year, Honda had not yet mailed a recall notice to Solis, Martin added. In Congress, lawmakers have introduced bills that would require usedcar dealers and rental companies to fix recalled cars before they are put back into public use. But those measures, which auto dealers oppose, have stalled. Most major rental companies, though, now say that they voluntarily fix recalled vehicles. A National Highway Traffic Safety Administration spokesperson told Tabuchi it will again push for Congress to prohibit used-car dealerships from selling vehicles with an open recall and the rental of vehicles with an open recall.

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Midwest Auto Trade Show on February 19 Prepares Industry for New Technology

The focus of the 5th Annual Midwest Autobody Trade Show is: Training – New Equipment – New Technology. This one-day power-packed event is February 19 at the Sheraton West Des Moines in Des Moines, Iowa. “This is everything you need for the future in one place,” says Iowa Collision Repair Association President, Dick Merron. “This is a great opportunity for our industry.” The popular show opens with the “There Is No Free Lunch” luncheon. Iowa State Senator Brad Zaun, an industry favorite, leads the luncheon for the third year. He is joined by Iowa Collision Repair Association lobbyist Scott Weiser and National I-CAR Chairman, Bob Keith. Ken Boylan, Global Training Manager, Chief Automotive Technologies will present “Introduction to Aluminum.” Boylan will be on the show room floor to visit with attendees throughout the trade show, and have on hand a Ford F-150 aluminum truck. The show floor opens its doors directly after the luncheon to over 65 vendor display booths. In addition, I-CAR’s New Technology 2015 starts the day at 8:30. Show specials, gift certificates, special show discounts and door prizes will be offered throughout, along with a

display of new car models. This year the Midwest show will host a Refinish Competition between seven Iowa Community Colleges; these colleges will compete in the first Midwest Autobody Trade ShowCommunity College partnership effort, in part due to generous donations from 3M, The Collision Education Foundation and Keystone Automotive. Students will be refinishing a 2005 Cobalt hood using their own creative custom design work. Hoods will be judged by custom motorcycle builder Steve Bruggenwirth from Albany, Illinois. “We are very excited to integrate this competition into the trade show,” said Janet Chaney, Iowa Collision Repair Association Executive Director. “We will embrace these students and welcome them to this great industry.”

Trade Show Features: ● ICAR NEW 15-Vehicle Technology and Trends 2015 ●“There Is NO Free Lunch” luncheon featuring Senator Brad Zaun, Iowa Collision Repair Association lobbyist Scott Weiser and I-CAR National Chairman, Bob Keith ● Introduction to Aluminum presented

by Ken Boylan, Chief Industries, Global Training Manager Mr. Boylan will cover the future of aluminum, aluminum repair, laser welding, friction stir welding, bonding and riveting and “new” steel techniques ● 65 Trade Show Booths New Equipment, New Tools, Door Prizes, Product Demonstrations ● Custom motorcycle painter, Steve Bruggenwirth, featured in Baggers Magazine ● Community College Refinish Competition Schedule: 8:30-11:30 am – ICAR’s New15 – Vehicle Technology & Trends 2015 ● Instructor Scott Schuerman – Please register and pre-pay for this class at www.i-car.com

12:00-2:00pm – “There is No Free Lunch” Industry Issues Luncheon ($40) ● Iowa Senator Brad Zaun & ICRA Lobbyist Scott Weiser: ● “Cool Tools for Today’s Vehicles” ● “Demystifying Aluminum and Other New Technology” 2:00 – 7:00 pm - Midwest Auto Body Trade Show

● 60 plus booths ● See the Ford F150 Military Grade Aluminum Pick Up Meet Ken Boylan – Global Training Manager – Chief Automotive Technologies ● Community College Refinish Contest – ‘You Be the Judge’

Featured Vendor List: ● Axalta ● 3M ● Aeromotive ● Akzo-Nobel ● Arnold Motor Supply ● Audatex ● Automotive Refinish Solutions ● Billion Automotive ● Body Parts Store ● Car-Part ● CCC

The 5th Annual Midwest Auto Body Trade Show is a free inter-industry event, inviting collision repairers, insurers, manufacturers, vendors, recyclers, OEMs and students from the Midwest to participate. Please call Sheraton West Des Moines (515-223-1800) for the Trade Show room rate of $129. For further information, call Janet Chaney at 480720-2565.

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What at aare e ccrash as parts? Your insurance coverage. coverag ge. ChoosC oos ing th he right Great bodyy shop shop. All parts not crreate ed equ ual. Info for are Shops Take e a clo closer lo cl ook ok. o k C Collision olllissiio o on n 101. 101 What Whaatt’s a D DRP RP an nd dw why hy should I care? Where do airbags com e from? Co ounterfeit airb baags - what you need to know. Take a clo oser e look. What arre e crassh parts? Your rights as a consumer. Your Y insurance e coverage. Choosing the right body sh ho h op. p Helping you u through the collision repair processs. Collision o 101. Wh haat’ss a DRP and why sh hould I care? Where do airbags co om me from? Counter feit airbags - what you need to know w. Take a closer look. What are crash paarts? Take www.collision.honda.com a closerr look. Your insurance coverage. Choosing i the right bo ody shop. What are crash parts? Your riigh hts as a consum me er. Your insurance coverage. Choosing the h right body sh ho op. All parts are not created equal. Take a closer look. Co olllision 101. What’s a DRP and why should I care? Where do airbags come from? Counterfeit airrbags what yo ou need to know. Take a closer look. Wh hat are www.airbagaware.com crash parts? Your rights as a consumer. Your insurance coverag ge. Cho ge hoosing ing the he rig right ht body sho hop. He Helpin ng you through h the collision repair process. Collision 101. What’s a DRP and why should I care? Where do aairbags come ffrrom? Counter feit airbags - what you need e to know. Take a closer look. What What are are ccrash rash parts? s Your rights as as a consumer. Your insurance coverage. C Choosing the e right bodyy shop p. What are crrash paarrtss? Your rights as as a consumer. You ur insuraance co overage e. C Choosing the right body sh hop. Alll parts are not created equal. www.crashrepairinfo.com Collisio Co olliisiion 1 101. 01. Y Your our rrights ights aass a consumer. consumer. Choos Choosing g tthe he e rig ght bodGreat y shop. Info Helping through the colllisio on foryou Consumers parts. Helping you through the collision repair process. 38 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

H OND A C ONN ECT I CUT

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

Schaller Honda New Britain

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Criswell Honda Ger m an t ow n

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O’Donnell Honda E llicot t City

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Ourisman Honda of Laurel Lau rel

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CCRS Has Productive First Meeting of 2015 On Thursday, January 15, the Connecticut Collision Repair Specialists (CCRS) held their first meeting of 2015 at the Honda Motor Company Warehouse in Windsor Locks, CT. The meeting was busy and productive, including some training and a tour of the facility as well as Board elections. In addition to this major change, elections for the 2015/2016 Board members were held. Past Secretary, Matt Tarzia of Mike’s Towing & Collision, was elected as Chairman, while the Vice Chairman will be Gene Crutchfield of Fairfield Collision. Alex Pesarik of B & D Autobody was elected Secretary, Ray Jacobs of R & C Autobody will serve as Treasurer, and Mike Tarzia of

Mike’s Towing and Collision will serve as immediate past Chairman for the association. Attendees also received an overview of Honda’s new Certified Body Shop program which will launch in the first quarter of 2015, presented by Ted Marsh, Collision Select Market Manager for Honda. A tour of the parts distribution center was also given to allow association members a chance to witness the facility’s operating warehouse environment and their technician training center. Lisa Siembab, Executive Director of CCRS, believes that monthly meetings are important for association

members because “our mission is training and education and improving our image within the industry. Siembab believes that monthly meetings are important for association members because “our mission is training and education and improving our image within the industry. Events like this—a venue that few have access to—was very important. In other words, how would they have ever gotten to join a tour of the Honda parts warehouse, unless they were part of CCRS that has the connections and make it happen?” For 2015, CCRS has added a new

CCRS, www.ctcrs.com 860-778-6967

A man who broke into a body shop in Bristol, CT snuck away when officers arrived and hid beneath a school bus nearly a mile down the road, reported Ari Mason of nbcconnecticut.com. However, he didn’t escape for long, and soon a K-9 followed his scent and sniffed him out of his hiding spot, ac-

cording to police. Juan Gonzalez, 54, is accused of crawling under a chain link fence surrounding Ross’s Auto Parts at 470 Terryville Road on the night of February 1, then using a piece of metal to pry open the doors, police said. He was caught trying to get inside after responding to a burglar alarm he

set off. He managed to escape temporarily to a bus yard belonging to the First Student Bus Company, reported Mason. The police dog bit Gonzalez’s lower leg while he was crouched under the bus. Police then brought Gonzalez to department headquarters and EMTs treated his injuries, police told Mason.

Gonzalez was charged with third-degree criminal trespass, possession of burglar tools, criminal attempt to commit third-degree burglary, second-degree criminal mischief and interfering with an officer, reported Mason. Gonzalez was due in court the following morning and held on $25,000 bond.

by Chasidy Rae Sisk

Body Shop Thief in CT Hides Under School Bus, Found and Bitten by K9

activity for members called “ShopTalk Over Cocktails,” or “SOC,” events which Siembab describes as “a casual gathering for shops to get together and share ideas/issues that they are dealing with. It is not a formal meeting but rather a social time for them to just discuss things and network with each other or perhaps to help someone else! It was very wellreceived and well-attended when we had our first one in December.” The other areas that the association will be focusing on this year include Shop Financials, New Technology in terms of aluminum and carbon fiber, Estimatics, and Human Resources.

Th The Carcoon A W Features: tttures: The T Th he C Carcoon Ca C arcoon America arco Amer Am A America eriiica ca Workstation Workstation W orkk ork ksttati kst ati tiion io i nF Fe F ea e eat atures: a tu ures

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A Smart Solution. The The Carcoon Car arco co oon on America Am A meerica ric Workstation Wo orksta atio on works work wo orks ks the the he same sam sa me and and just ju ust as effectively eff ffecctivvely as as a cross-flow ccrros rosss--fl flow flo fl w paint paiint booth. ootth The Th T he Carcoon Carrco Ca C oon America oo Am me erricca Workstation Work W Work kstation kst ation n is is EPA E A Certified. Cer fi C fie ed Ideal Ideall for fo or the the busy b busy body b dy bod dy shop-mobile sh p-m mob bile technician/smaller techn tech hn nician/smaller nici ian n/sma alle er shop sh hop ho p with w th limited llim mited facilities. fac facil cilliti ities. es

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Northeast News with Chasidy Rae Sisk

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

AASP-MA’s Midstate Chapter Hosts Two Guest Speakers at First Quarterly Meeting of 2015 Collision repair industry professionals face a number of complex problems. Not only do shop owners contend with the day-to-day business of repairing vehicles, they also need to consider overhead costs, like utilities and marketing. That is why the Midstate Chapter of AASP-MA invited guest speakers Emily Stout and Frank Collins to present on these topics at their first quarter meeting of 2015 on Tuesday, January 13 at the Doubletree – Westborough. Chapter President Molly Brodeur says the meeting was “really good. It was one of most well-attended chapter meetings in a long time with approximately 45 attendees. The two topics were very helpful, which met our goals, since we wanted to present something that shops could use immediately. People came out despite the cold because the presentations were about impacting shops’ bottom line and about implementing good

business practices as an association.” Stout, a social media consultant with Venly, began the evening’s presentation by discussing the importance of optimizing social media websites and ensuring that your business’s online presence offers a professional and prominent impression to customers. Her presentation emphasized that “social media channels keep growing, and in order to capture and retain that elusive millennial generation, you have to be on top of your game.” Brodeur adds, “social media is an important tool that our industry does not use to its advantage. This is how the millennial generation obtains information, and Stout provided an overview of sites for shops to focus on that offer listings at no cost. We received a lot of great feedback from attendees on this presentation.” Next, attendees received valuable insights into the four things to look for in order to get the most ROI on energy

efficiency from Frank Collins of Energy Efficiency and Sustainability Consulting (EES). Providing “turnkey energy efficiency and sustainability solutions for light commercial and industry businesses,” Collins shared the reasons behind the National Grid’s increased rates and utility companies’ rebates which number into the millions annually. Brodeur notes, “In the second presentation, Collins discussed why so many progressive rebate programs are offered. Efficient lighting solutions and other programs benefit shops because the rebates translate into money for their businesses.” “Overall, we received positive feedback, and both presenters left with leads, which tells us that people were interested and wanted to learn more,” Brodeur shares. “Collins’s demo items kept attendees engaged even after the meeting was over. Stout’s presentation was useful because, in general, shop

owners and managers are a bit older and don’t see the value in social media personally, but she explained why building an online presence is so valuable; most of what she covered was free advertising, and it just takes time and discipline to set up. Then, Google works organically for you by listing your business in their search engine.” Brodeur believes it is important for associations to hold regular meetings in order to “keep members engaged and so they know the association is working on their behalf. Letting our members know what’s going on keeps the line of communication open, plus it’s important for shops to get together to network and interact with vendors. We’re lucky to have strong support from our vendors. AASP-MA’s prime mission is education and providing information on what’s out there to help run your business. These types of meetings allow us to show our members that See AASP-MA, Page 44

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 41


Lean Operations

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

Make More Money Using Theory of Constraints with David Luehr

Most of you readers have heard about Lean thinking, Lean manufacturing, or simply Lean. But have you heard about the Theory of Constraints (TOC)? I know some of you have, but as with Lean, the concept may still be a little unclear to you. Although there are both commonalities and differences between Lean and TOC, I believe collision re-

pairers can benefit from understanding and applying both ways of thinking to their repair businesses.

Lean The word Lean was originally used in James Womack’s 1990 book entitled “The Machine that Changed the World.” His book described the dominance of Toyota and the effectiveness of a production system that banishes waste from the value stream. This lean thinking has revolutionized many industries and still does today. Unfortunately, many collision repairers have made attempts to implement such thinking and systems in their shops with limited results at best. While I believe that there are many benefits to creating a lean culture and adopting lean methods and using its tools, few shops that I am aware of have figured out how to fully realize their profit potential unless they have also become familiar with the Theory of Constraints.

Theory of Constraints The Theory of Constraints was first introduced to us by an Israeli physicist name Eliyahu M. Goldratt in his 1984 book “The Goal.” This book has had a profound effect on my life since first reading it in the early nineties. I would highly encourage all of you to read this book too. Although there is a little more to it, it is basically bottleneck management and adopting an understanding that there is always at least one resource (department, machine, person) in your business that is a lim-

iting factor to your throughput ability (making money).

Local efficiency vs. global efficiency The problem with many collision repair businesses is that silos are created in each department, each attempting to perform their portion of the work to whatever feels most efficient to them. On the surface this “local efficiency” may look like a good idea because everyone is motivated to perform their best; however, the problem with this is it can create dramatic peaks and valleys in the flow of the work from one department to the next. For example, if it is more efficient for a paint shop to primer the whole day’s work at one time or wait until all the bumpers are prepped and ready before loading into one giant booth batch, guess who usually suffers? That’s right, the guy that has been waiting all day to build his cars and now the paint shop unloads all of them at once! This poor technician can only build one car at a time so cycle time and global efficiency suffers. Both Lean and TOC teaches us that sometimes we actually need to reduce batch size in order to improve throughput. Focus on global efficiency instead of local efficiency. The 5 Steps to busting bottlenecks Theory of Constraints uses a systematic approach to busting bottlenecks and increasing your shop’s ability to make money.

Step 1: Identify the constraint. This step is usually pretty easy to identify because it is usually the resource that has the most inventory (cars) stacked in front of it waiting to be worked on. In many shops I find the constraint to be the paint booth (or poor use of the booth), but in many advanced shops that are performing thorough disassembly and blueprinting, the hold-ups are commonly there. Also it is not uncommon for the biggest constraint to be the front office itself.

Step 2: Exploit the constraint. Exploiting the constraint involves making sure we are using the resource as effectively

42 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

as possible. If the paint booth is the constraint, are you effectively using it during all the work hours in the day, or does it sit empty until 10 am? Also consider the hours the booth is in operation. There are more than eight hours in a day; you get to choose how to use them.

Step 3: Subordinate to the constraint. When you subordinate to the constraint you are effectively making sure it does not get interrupted or delayed in any way. Again, if your booth is a constraint, you would want to make sure that the quality of the prep work was sufficient and your colors were tinted so no additional delays would occur while the vehicle was in the booth. You should also make sure the booth is well maintained to avoid mechanical failures. Blueprint/Damage analysis departments are often a constraint yet I am amazed at how often the people performing these opera-

tions are routinely interrupted to deal with other issues. You need to “protect” your constraint at all costs! Subordinating also means making sure that everyone in the shop clearly understands that nothing comes before the constraint, especially their own agendas of silo efficiency.

Step 4: Elevate the constraint. This step simply means to make the department, or resource bigger. It could mean you need to add a tech, buy a frame rack, or perhaps apply some Lean tools and techniques to increase the constraint’s capacity. Again, the size of your constraint dictates the size of your potential throughput.

Step 5: Repeat steps 1-4. Much like Lean, TOC is a continuous improvement process. Once one constraint is identified and resolved, begin at Step 1 again. See Make More Money, Page 44


www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 43


Continued from Page 42

Make More Money

Drum, Buffer, Rope Another one of the elements of TOC involves Drum, Buffer, Rope. (DBR) You can learn a lot about this by reading Goldratt’s “The Goal.” There is Continued from Page 41

AASP-MA

belonging to the association is valuable.” The meeting was such a success that the association held an encore performance on February 11 at the Greater Lawrence Vo-Tech School in Andover, MA. Brodeur explained, “We are targeting non-members with

also a lot of information about it on the internet. Essentially, DBR suggests that your company has a drum beat that everyone follows. The beat follows the speed of your constraint resource. An example of this is that all body shop departments work to keep in pace with the constraint resource. The buffer (a small buildup of work) ensures that the constraint never runs out of work. The rope is tied to your scheduling of work coming in. In other words, you schedule your repair jobs in as your constraint can begin working on it. As with lean thinking, scheduling too many repair jobs in our vendors helping us promote the meeting. This information could be beneficial for non-members also, and it gives us a chance to meet new shops. Although there are 1,800 shops in the state, we only have 200 members, and this is a great opportunity to demonstrate how we work hard on their behalf and possibly attract new members.”

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leads to excess inventory (waste).

Summary During my training at the AGI Goldratt Institute, I was told by a very wise TOC Instructor that the smart practitioners eventually decide where they want the constraint to be and then they build their business around it. This keeps you from spending all your time chasing bottlenecks around your shop. I want to drive home a most important point. Whether you subscribe to Theory of Constraints or not, it is a universal law that your business throughput ability will always be dictated by your system’s constraint. On occasion, this constraint can be the

GEICO Generates Underpayment Complaints from Texas Shops

Several collision repair shops in the Houston, TX, area are voicing claims that GEICO insurance has been refusing to pay certain rates for towing bills, administrative fees, and storage on total loss vehicles. Autobody News recently spoke to two of these shops to find out more. We are currently awaiting response from GEICO. Please check the Autobody News website for more details, as well as the April issue of the print publication.

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market you serve. If you don’t have enough work to feed your shop you can still use TOC thinking to help solve your problem using the 5 steps. You may have to Identify, Exploit, Subordinate, and Elevate your company’s attention to marketing or other forms of attracting additional work. I am going to leave you with an eye-opening figure. Every dollar lost in a constraint resource due to mechanical breakdown, quality defect, or any other reason is a dollar lost forever! If you run a shop producing $100,000 a month and your constraint shuts down, it costs you roughly $600 an hour! You may want to protect your constraint!

Mexican Military Raids Body Shop, Finds TX Vehicles

Mexican authorities say they found a body shop dedicated to equipping vehicles belonging to the cartel, reported krgv.com. Out of the 13 vehicles found by soldiers in the shop, a handful had Texas license plates. Eight had been fitted with armored plating. Soldiers also found weapons at the shop. One man has been arrested.

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Social Media for Shops Instagram and Twitter Grow Up

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

with Ed Attanasio

I am not afraid to admit it when I’m wrong. I never thought eBay would work and that’s exactly what I said to the company’s Founder Pierre Omidyar one day back in 1995 in San Jose, CA. He’s now a billionaire and I live in a van down by the river. And I had a chance to be one of the first employees at Netflix many years ago, but I opted out—because I could not believe that people would mail the discs back to the company. Bad move. So, last year when I said that Instagram and Twitter were going to trend down and that they weren’t ideal for the collision industry, well-that too was a mistake. Now I’m willing to do my mea culpa…once again. Instagram: The millennials call it “The Gram” and sure, Justin Bieber and the Kardashians post every day, but now small businesses such as body shops are doing the same. If you’re not familiar with Instagram, it’s an online photo-sharing and social networking service that lets users take pictures, apply filters to them and share those pictures in several ways, including through social networks such as Twitter and Facebook. Instagram is available as an application for iPhone, iPad and Android devices. Instagram was the 7th largest US mobile app in 2013 with 33 million unique users, a 66% increase from 2012 according to Nielsen. About 40 million U.S. users accessed Instagram on a monthly basis in 2014 according to eMarketer. Instagram users represent 16.1% of all Internet users. It is roughly one eighth the size of Facebook, yet has 15 times the engagement and twice the engaged user base of its parent company. Almost 25% of U.S. smart phone users interact with Instagram at least once per month. Roughly 67% of U.S. Instagram users are between 18 and 44, namely millennials and GenX. Body shops that are using Insta-

gram are praising it for bringing them business and gaining more traction with their younger customers. Roger Henson, the owner of Advertising Business Consulting Associates in Silicon Valley has been doing marketing for automotive companies since 1979 and he’s excited about photo app for several reasons. “Almost every week, one of my automotive customers asks me about one form of social media or another and most of the time I tell them no,” Henson explained. “If you’re using a form of social media that does not bring you business, what’s the point? Companies see their competition using Pinterest, for instance, so they want to do the same. But in the end, it’s a waste of time and the worst thing you can do is leave it dormant. Time is money and just because Joe’s Auto Body is using it does not mean it will work for you. We do an in-depth analysis of every form of social media that’s out there and right now Instagram is hot, hot hot! So, for shop owners or marketing people at MSOs who are against Instagram, I feel like they’re living in the dark.” So, exactly why is Instagram so hot currently? “My clients use Instagram to educate their prospects by posting photos, videos, and hosting contests. We have one body shop that is giving away soccer tickets as a promotion and we know for a fact that they received at least a dozen jobs from it. The whole idea is use social media to stay in the public mind’s eye and then when they need you, they’re already familiar with your name. Visual social media is what Instagram is all about and I now recommend it to most of my automotive clients.” Twitter: I swore I would never Tweet, but I also said I would never use Grecian Formula. You get older and hopefully you get wiser. Although Twitter isn’t exactly my cup of tea, I

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

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can clearly see it is strong and getting stronger. With 250 million users, 80% of them using it via mobile devices, Twitter is here to stay. As an online social networking service that enables users to send and read short 140-character messages called "tweets", registered users can read and post tweets, but unregistered users can only read them. H&V Collision Centers, with five locations in upstate New York has been using Twitter successfully for more than two years and Instagram for almost a year, according to the company’s Marketing Manager Rhianna Herring. “We want to connect with our entire demographic and we know that Twitter and Instagram are helping us to reach all of our potential customers, not just the ones in their 20s,” Herring explained. “We have tracked the results and we know that we’re getting new jobs from Instagram and Twitter.

Our success with both of them is based on the fact that we provide a lot of content and we try to keep it interesting. With five shops, there’s a lot going on and we try to distribute all of our content amongst all of the locations. Variety is key, because how many pictures of satisfied customers with their vehicles can we run? By constantly changing our message and keeping it fun, we’re able to keep our audience engaged on both platforms. We never spam our followers and we never try to hard sell them, and I think our audience appreciates that.” So, if part of your New Year’s resolutions involves working harder and smarter at your marketing, maybe it’s time to add a few tools to your social media mix with Instagram and Twitter. If you get one new customer every month, why not at least give it a try and then re-examine them after say, six months? You might be pleasantly surprised with the results.

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On Creative Marketing

New Century Marketing Basics with Thomas Franklin

Global changes are reshaping the nature of marketing today. In the earlier part of the 20th century, efforts to reach a prospective customer were referred to as “advertising.” Promotion, product packaging and publicity were all considered parts of advertising. Gradually these became four separate specialties. Now these functions have been coming together again, to become a more complicated tool we could simply call “marketing.” For example, most invoices you receive in the mail these days will also have offers to purchase other products or services. Your website may well have links to other businesses. If you do work for a dealership, your advertising will probably be at that dealership and their advertising will be at your shop. Even your phone message may refer to insurance companies and other businesses. These and other aspects of marketing are probably well integrated into your shop’s communications with the outside world. Or are they? If not, you

may be missing out on many simple (and possibly free) ways to market your business. For simplicity sake, let’s start with “free.” Today it’s nearly impossible to buy a product that doesn’t have reasons printed on it why the product you just purchased is the best choice, the most cost effective and perhaps the healthiest. Many stores attach a multitude of coupons and offers to every sales receipt. The package, sales slip or labeling had to be printed anyway, so whatever message is placed there is essentially free. Do most shops give customers printed invoices? Maybe not, but they could. Before we get into what messages could be added to customer invoices, receipts or warnings and warranties, let’s take a look at cooperative marketing. Your local grocery store may attach, in addition to food items, offers for car washes, auto insurance, medical insurance and even legal services. These are blatant exchange deals. Anyone re-

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

deeming one of these deals will generate a commission or finder’s fee for the store. While a shop could offer detailing, pinstriping, accessories and more, the revenue from referred business is found money. Collision repair shops have natural connections with upholstery shops, glass shops, entertainment system shops and more, all of which would welcome additional business. Most businesses rely on a few simple marketing and sales basics to build new business and keep customers coming back. Collision repair centers may not rely on the same basics, but are there ways they could? The six more general marketing and sales objectives include: (1) Simply increasing the number of customers, (2) increasing the number of customers coming back, (3) increasing the number of products each customer buys, (4) increasing how often customers buy their products, (5) increasing the total dollar value of customer purchases, and (6) increasing the effec-

tivenss of advertising and marketing to bring in both new and prior customers. Some shops do well at getting new customers and keeping many coming back. Others keep improving the effectiveness of their advertising and marketing to attract new customers and keep old ones coming back. But most shops seem to neglect 3, 4 and 5. These basics don’t easily apply to the collision repair business, but if a shop can find a way to implement these basic strategies, it should enjoy a nice increase in both volume and profitability. Dealerships make better use of these basics. If a dealership has a collision repair shop and also the usual mechanical maintenance, accessories store, and repair shop, they have an opportunity to increase frequency of visit. They may also be able to increase the dollar volume of sales during those visits. But do they use this advantage to increase 3, 4, and 5 for their collision repair shop? I found many dealership

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body shops that failed to take full advantage of their relationship with their mechanical maintenance and repair shop. Marketing today means seizing an opportunity to attract new customers from every possible connection, or to make a profit by helping other businesses get new customers. Possibly the most neglected dimension of marketing in collision repair shops is public relations. This is broadly defined as using publicity and the media to say nice things about the shop without it being a paid advertisement, but even that has changed today. Except for an occasion article in a collision industry publication, it’s rare to see a story about a body shop in any newspaper. Today the Internet serves as the common press medium. Comments on Yelp and other rating sites are nearly all the publicity shops receive, but it doesn’t have to be that way. People still love to read about pets being saved and heartfelt stories about babies and children. The right photo and story can go viral on YouTube, but it takes a very talented public relaitions person to capture it. Marketing basics haven’t changed that much this century but the forms they now take call for a keen eye to see how to apply them.

3M Awards Tool Grants to Veterans Through CREF and Hire Our Heroes Program

Through the Collision Repair Education Foundation (CREF) and the 3M “Hire Our Heroes” program, four winners have been selected for a tool grant. The recipients, all military veterans, began their collision education at various colleges around the country starting in the summer/fall of 2014. Each winning student had the opportunity to select $2,500 worth of tools to help them during their education and for employment after graduation.

The winners are: ● Jerry Rawson (Bridgerland Applied Technology College, Logan, UT)

● Glenn Valdez (Kennedy King College, Chicago, IL)

● Courtney Washington (Fayetteville Technical Community College, Fayetteville, NC)

● Anthony Wrinkler (UTI, Sacramento, CA) Clark Plucinski, Executive Director of the Collision Repair Education Foundation said, “The Collision Re-

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pair Education Foundation is proud to continue to partner with 3M and the Hire Our Heroes program to offer these grant awards. There are an incredible amount of opportunities in the collision industry and thanks to 3M, these winning students will have the tools that will make them successful in their education and beyond. It is an honor to show our support of military veterans through this program.” “This is our third year of providing this type of support to our military veterans and their family member,” said Dale Ross, 3M U.S. Marketing Operations Manager Automotive Aftermarket Division. “We hope to continue to attract veterans to our industry, and help those that choose this career path get the tools and training they need to be successful.” Additional scholarship opportunities are currently available for students studying at collision repair schools, including veterans, at the website, www.CollisionEducation Foundation.org under “Students.” For more information, please email Scholarships@ed-foundation.org or call 888.722.3787, Ext. 283.

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AudaExplore, a Solera Company, gave over $3 million in software donations in 2014 through the Collision Repair Education Foundation (CREF) to various schools across the country. The AudaExplore Educational Institutions Program began in 2010 and to date, more than 230 collision repair school programs in 40 states across the U.S. have benefited from in-kind donations of the company’s estimating software through the program’s partnership with the Foundation. Under the AudaExplore Educational Institutions Program, the company provides a comprehensive software and training package — free of charge — to vocational and technical schools throughout the U.S. To qualify, schools must complete an online survey conducted by the CREF. Thousands of students nationwide participate in the free online training that is available as part of the Educational Institutions Programs. “Without the generosity of AudaExplore, many of these schools would not be able to afford such a great learning tool,” said Clark Plucinski, Executive Director of CREF. “Budgets are so small and schools can barely afford tape and sandpaper let alone this type of training program.”

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Forget the Bandwagon, DePetro Drives the Denver Broncos Classic Pickup Truck by Bobby Fernandez, The Greeley Tribune

Hank DePetro stood alongside his 1949 classic Ford pickup Thursday afternoon, Jan. 8 at his home in Greeley. DePetro had an auto body class at Aims Community College paint the classic pickup with a Denver Broncos theme.

Hank DePetro stands alongside his 1949 classic Ford pickup at his home in Greeley. DePetro had an auto body class at Aims Community College paint the classic pickup with a Denver Broncos theme. Photos Credit: Joshua Polson/jpolson@ greeleytribune.com | The Greeley Tribune

When Hank “Doc” DePetro’s Ford pickup truck was originally manufactured, a paint job in Denver Broncos colors wasn’t an option. It’s not that the auto body advancements at the time didn’t allow a simple orange-and-blue color scheme. Rather, the Broncos didn’t exist when DePetro’s truck was manufactured. Yet, 55 years after the 1949 Ford was built, and 35 years after the 72year-old DePetro bought the vehicle, the truck was splashed in Broncos blue—with a little bit of orange sprinkled in—just as the Broncos prepared for the most critical stretch of their season. Although DePetro surely was planted right in front of a television set at 2:40 pm Jan. 11 when the Broncos played host to the Indianapolis Colts in an AFC Divisional Playoff Game, odds werethat no one showed more spirit in the days before and after the game than DePetro, who proudly

Hank DePetro holds up a photo of what the classic Ford pickup looked like originally. The truck will have more work done as students finish the interior

strolled through the streets of Greeley in his unique classic truck. With the aid of Aims Community College auto body classes and the District 6 special education students DePetro has taught throughout the years, DePetro painted and decorated his vehicle with a Broncos theme for the past seven years. DePetro — who spent 30 years as a school psychologist and educator for District 6 and the University of Northern Colorado — said when he hits the streets in his truck, “I get high-fives and (people saying) ‘Go Broncos, go Broncos.’ ” DePetro didn’t hesitate when asked to recall his favorite memory of driving his Broncos-mobile around town. “There was a lady with two grandkids, and she said she was from Seattle,” DePetro said. “She said, ‘my

and just in a two-liner classified, it said ‘ old 1949 Ford truck. $200.’ ” DePetro bought the truck from a farmer who lived near Kersey.

A Broncos helmet sits next to the Ford logo on Hank DePetro’s classic 1949 pickup truck last week at DePetro’s home in Greeley

DePetro said the Ford wasn’t in the greatest shape—to say the least. “It was really pretty bad—rust, holes, dents,” said DePetro, who is originally from Pueblo. “Apparently the guy used it on a farm to pull a plow. The seat was clear down to the springs. Apparently mice and so on got in there. The rims were total rust. The tires that were on it were just rotted out. “And I looked at it and I thought, ‘Do you really want to do this?’ ” Just as John Elway has rebuilt

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Hank DePetro stands in front of his classic 1949 Ford pickup last week at his home in Greeley

daughter and all the family are Bronco fans. I’m just wondering if my grandkids could get up in your truck so I can take a picture?’ ” DePetro happily obliged. He drapes his house—built in 1938—in Broncos memorabilia. He also never shies away from decking himself out in orange-and-blue gear. But, it is his blue-coated pickup that really captures peoples’ attention. The vehicle has become a close companion of DePetro since he stumbled upon the truck nearly four decades ago. “I was looking for something to rebuild, because I sold a 1937 Chevy, and I was (wondering) ‘Why did I do that?’ ” DePetro said. “So, I’m looking in the classifieds of The Tribune

50 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

the Broncos into a legitimate Super Bowl contender, DePetro spent years breathing new life into the old pickup truck. And now, like the Broncos’ grizzled veteran quarterback Peyton Manning, DePetro’s truck may be old, but it’s far from a clunker. DePetro has made a habit of starting his truck every day during this recent cold snap. All he needs to do is pull out the choke valve, ease down on the gas pedal, and the engine starts right up. When he first purchased the truck, DePetro—on the school district’s dime—was attending classes at Aims. One of his classes was an auto body class that gave DePetro the means and materials to fix up the truck. “It started there, and it began to be transformed from this old, rusty truck to what started to look like it was for real,” DePetro said. “And the more we did, the more real it became.” We thank The Greeley Tribune for permission to reprint their article.

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$53M in Luxury Vehicles Destroyed After Cargo Ship Takes on 3,000 Tons of Water A cargo ship, heading to the Middle East with 1,400 luxury vehicles,

started taking on water near the Isle of Wright in Hampshire, England 45

Hoegh Osaka takes on water Photo Credit: myfirstclasslife.com

Hoegh Osaka hits ground. Photo Credit: myfirstclasslife.com

UK salvage firms were able to drain 3,000 tons of water from the Hoegh Osaka and recover the remaining shipments. Photo Credit: myfirstclasslife.com

200 damaged Land Rovers were removed from the cargo ship by the UK’s leading maritime salvage firms. Photo Credit: myfirstclasslife.com

minutes after leaving port. The 590foot-long Singapore-registered Hoegh Osaka left Southampton on January 3, just after 8 pm. Once the ship began tipping dangerously to one side, the captain made the decision to run it aground. This action prevented the ship from sinking, potentially saving the lives of 25 crew members on board, who were later rescued by helicopter, reported myfirstclasslife.com. After that, one of the UK’s leading maritime salvage firms was brought in to quickly plug the hole. The mission was to bring the ship somewhat upright, and tow it to shore. Some 3,000 tons of water flooded into the ship during the accident, and had to be pumped into empty fuel tanks on board the vessel to help bring it upright, reported myfirstclasslife.com. Authorities made the decision to tow the stricken ship back to Southampton to begin res-

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cue operations on the luxury vehicles trapped inside. Because the ship wasn’t completely flooded, a portion of the vehicles were salvageable. However, regardless of the captain’s actions, the $53M shipment degraded heavily once the damages were calculated. Other cargo included tens of millions of dollars worth of heavy duty agricultural equipment bound for Germany. Despite some mishaps in bringing the ship ashore, including a salvage boat accidentally ramming the side and puncturing another hole in it, the Hoegh Osaka arrived in the Southampton port upright, reported myfirstclasslife.com. Authorities and company executives gained access to the cargo hold to survey the damage, finding nearly 200 completely damaged Land Rovers that they plan to repair if possible, myfirstclasslife.com reported.

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National Associations

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

Strong and Getting Stronger: The State of I-CAR® with Ed Attanasio

We sat down with Jeff Peevy, the Senior Director of Field Operations and Segment Development at I-CAR® to talk about some recent events and a few misconceptions about the organization. Most repairers know that ICAR is a not-for-profit organization dedicated to providing the training, knowledge and skills required to perform quality repairs that are needed by all participants in the repair process, but not many know the scope of the organization. Peevy leads a team of over 2,000 volunteers, instructors and field managers who team up to conduct over 15,000 instructor-led classes and certification in the U.S. each year. He also oversees the strategic development of I-CAR support and services for the “Repairer” market segment. During his 32 years in the automotive industry, Peevy has worked as a technician, shop manager, instructor, National PBE manager for a large U.S. supplier, and director of Technical Training and Application Research for an automotive paint manufacturer. He holds a business administration degree and a position on the board of directors for the National Auto Body Council. He is also a member of the Society of Organizational Learning, which grew out of an MIT program designed to foster collaboration among corporations committed to fundamental organizational change. Peevy has a passion for promoting the critical role that knowledge plays within repair operations. Over the past five years he has been leading a team studying the impact that knowledge and skills have on operational performance. The research findings directly correlate knowledge acquired through training with gains in business Key Performance Indicators (KPIs) and improved competitive advantage. A “learning culture” is a necessary element to the future success of collision repairers. One Major Misconception about I-CAR: “A lot of people don’t realize that I-CAR is a not-for-profit organization and that means that we are a very vision and mission focused organization ever since our founding in 1979. We have approximately 2,000 volunteers who are from different seg-

ments of the industry and 315 volunteer committees in the United States. They believe in the organization and the value of training to the extent that they give up their personal time Jeff Peevy is the to really help the Senior Director of organization in a Field Operations variety of ways, inand Segment Development cluding helping us at I-CAR® find classrooms to use and assisting with promoting and scheduling classes. Without these highly driven and very dedicated volunteers we could not be where we are today. We also have approximately 480 part-time instructors; most of them have other full-time jobs. They are paid employees of I-CAR, but they go above and beyond the regular call of duty. Most of them started out as volunteers like I did and they got bit by the bug. There are definitely some benefits to being an instructor. Besides the pay, there’s the access to the updated technical information, and the networking is a big plus as well. Most of these people get bit by the training and it’s pretty addictive.” The Re-ignition of I-CAR: “Today, I-CAR is spearheaded by our CEO and President John Van Alstyne. He joined the organization in 2010, bringing with him 20 years in the OEM and vehicle technology sector of the automotive industry. His is a truly a strategic leader and visionary who is dedicated to preparing the industry to repair the vehicles of tomorrow. Before he joined, though, it was a real challenging time for the organization from 2006 to 2008. We were limping along and struggling to develop forces. Everyone rolled up their sleeves and just started looking at ways to be better. There was a core group of us and it was kind of do-or-die at that point. And there were two things that needed to happen--one was to organize and capture the feedback in meaningful ways and the second was to build the mechanisms from which that feedback could be disseminated into a place that would lead to action. So, we started implementing a formal project management system, and then we de-

54 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

veloped a program we call ISAC and that stands for Industry Segment Advisory Council. We went out into the shops and asked questions. A lot of these people had been very critical of us in the past, and we wanted their feedback. We asked them to sit down with us and we picked their brains. We asked them if we could meet with them regularly and they agreed. It’s been wildly successful for us and the industry has been extremely kind. Many of those people who really had lost faith in I-CAR had come to the table and helped us develop a direction. And that was how we developed part of the same professional development program that we use now. Between these actions and John’s leadership, we have definitely turned the organization around and are on the right path.” Role Relevant Training: “We had hundreds of collision repairers, insurance people, tech schools, suppliers and automotive manufacturers working with us. By using the information they

shared with us, we developed the roles that we now have in our role relevant training. The goal was to develop a standard of knowledge and we simply facilitated that process as staff. We did not manipulate it or make it something that was pre-conceived; rather, we listened closely to the industry and then acted on it. We launched it in July of 2010 and it has been a success. In the old system, the classes weren’t based around roles, so people just took the classes for the points. People needed the points for the recognition program so it didn’t matter what class they took and that was one of the main criticisms. Now, we analyze every class to make sure it’s relevant and we drill down into those knowledge areas. From a legacy standpoint we wanted to make sure that anyone who had taken classes in the past would receive credit for that. It was a mixture of current courses and new courses and that model is still implemented today. It’s a very dynamic

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system and there is a process of continually updating courses and building new courses and making sure each one is relevant to what’s going on. Our CEO & President points out every chance he gets about the ‘technical tsunami’ of new vehicles, new technologies and new materials— each year, roughly 65 vehicles are debuted or redesigned, many of them manufactured with unfamiliar materials and systems. This requires a pretty robust process, and we’ve had to expand our organization to keep up with it.” I-CAR Today: “People say that ICAR is in the best position it’s ever been in and I would say that’s true—and not just financially. Our leadership team is outstanding, we get things done. We are in the best position we’ve ever been in with OEM relationships, and turning these OEM relationships into courses. Our overall ability to develop relevant courses and the talent we have at the ICAR Tech Center has grown dramatically. We’ve redesigned and invested in our processes to develop and update courses. We implemented a state-of–the art Learning Content Management System to help us develop new classes better and faster. To better support the industry, we’ve greatly expanded our

customer service support and marketing programs. We are now much more responsive to the industry, doing the things that we desperately needed to do. And all of this is greatly helping the collision repair Inter-Industry as a whole, including front-line technicians, shop owners, estimators, insurance specialists and field educators.”

knowledge and skills that contribute to proper repairs, improved business performance and risk reduction. It took about two years for the shops to get aligned in that transition and we have a little over 3,000 or so shops that have gone through the three levels of training for the Platinum designation, each referred to as an I-CAR ProLevel®. Each

The Professional Development Program transition: “It took about two years to transition to the I-CAR Professional Development Program™ (PDP), which trains collision repair professionals in essential role-relevant knowledge and skills. The PDP had tentacles into the I-CAR Platinum Individual® recognition program, which is for collision repair professionals who achieve and maintain high levels of role-relevant training that contributes to complete, safe and quality repairs. For businesses, the I-CAR PDP provides collision repair and insurance businesses with a reliable training framework for acquiring Gold Class® and maintaining the up-to-date

ProLevel progressively builds upon prior learning to continually advance each professional’s knowledge and skills. We’ve seen a growth in training since the development of PDP and especially with the ‘technical tsunami’ of new and redesigned vehicles.” Reparability Technical Support: “Following months of extensive development, I-CAR officially launched the Reparability Technical Support (RTS) portal this past July. The portal was designed to improve accessibility of critical repair information for the entire collision repair industry. I-CAR collaborated with OEMs and others in the industry to improve accessibility of

“People say that I-CAR is in the best position it’s ever been in and I would say that’s true—and not just financially.” —Jeff Peevy

critical repair information. The portal houses thousands of pages of OEM repair information specific to vehicle models in a user-friendly format that can be accessed by smartphone, desktop computer and everything in between. A key element of the portal is the ‘Ask I-CAR™’ features, where technicians can submit a question online or call I-CAR technical experts for advice on their toughest repair questions. In addition to the portal, the RTS initiative is working to bridge the gap between OEMs and the collision repair industry by acting as a linking pin between the two, and hosting summits and Industry Segment Advisory Councils.” The Learning Culture: “To be effective, training programs should not be positioned as a requirement or simply a box to be checked. Rather, a learning culture should be established within each organization in the collision repair ecosystem. Training should be encouraged, accomplishments should be rewarded, and those trained should be viewed as achievers and role models. After years of studying the connection between training and improved performance, I-CAR has identified that ‘Learning Culture’ is the secret sauce to becoming a top performing shop.”

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Night-time Automotive Paint Additive has Vehicles Glowing and Owners Crowing “The idea came up back in 2002. I developed, manufactured and sold Toxic Toad is, ironically, a non-toxic, different forms of concrete sealer and environmentally-friendly additive that was looking for something new and can make any vehicle glow in the dark. different,” said Howe. “It wasn't until When asked about why he chose 2013 when a friend in the auto body the name, owner and creator Chad business gave me the idea to see how Howe replied, “I wanted something compatible it would be with auto body paints. With the help of my friend Terry Karn from Advanced Auto Body, with 30 years in auto body work, we tried our first project.” After only one try, the duo noticed that the additive made the guinea pig vehicle glow nicely, but left the paint gritty and rough. “So after a few more trials and errors, we came up with a great product and process,” A vehicle with the clear Toxic Toad additive during the said Howe. “With the right radaytime tios and application, we now that would stick out, and after weeks can spray over any base color without of trying to come up with a fun name, altering it, while maintaining a great it hit me that toxic toads’ colors are day look as well as a glow at night. brighter the more toxic they are. So the When applied right, nobody could name just seemed to fit with the glow.” ever tell that the finished product The product, which can be mixed would glow in the dark.” into any auto paint clear product beToxic Toad is not UV activated; fore spraying, was launched in Febru- any light will charge up the paint job ary 2013 at the Lennox, South Dakota for hours at a time. The additive comes headquarters. in four glow colors that go on clear by Victoria Antonelli, Online Editor

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Industry Insight

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

Testing Shows Dramatic Differences in Isocyanate-Blocking by Spraysuits with John Yoswick

New testing announced at the Collision Industry Conference (CIC) earlier this year indicates that not all spraysuits are created equal in terms of preventing penetration of isocyanates. Brandon Thomas of GMG Envirosafe shared the results of testing his company had done on six spraysuits with brand names including DeVilbiss, DuPont, Sata and Shoot Suit. Without disclosing which test results were for each specific suit (because of liability concerns), Thomas showed that only one of the six appeared to fully prevent isocyanate exposure. Four others showed varying levels of exposure, and one appeared to offer no more protection than not wearing a suit at all. “This is not a finger-pointing exercise,” Thomas said. “It’s an exercise to see if we can do better due diligence in terms of what we’re equipping our employees with. Do all spraysuits perform the same? No. We have a full

gamut here. Our objectives here were to determine if there is a viable way to test a suit for isocyanate exposure, and if so, do we see any variability when comparing suits. We absolutely can test the spraysuits, and absolutely can look at the variability within these suits and the type of protections they actually provide the painters.” Thomas said he conducted the testing because of the conflicting or unclear responses (if any) he received last fall from the manufacturers of spraysuits when he asked if their suits provide refinish technicians with protection from isocyanates; some of the manufacturers told him no such testing was possible and that only manufacturers with “deep pockets who can afford lawsuits” make any claims about the protection their spraysuits offer. In his presentation at CIC, held in January in Palm Springs, CA, Thomas emphasized that the testing was not designed to indicate the level

Insurer recognized for emphasis on safety and pollution-prevention

Geico has received the “2015 Excellence in Safety and Pollution Prevention Award” from S/P2, an organization created to help the automotive service and repair industry meet OSHA and EPA guidelines. Bob Medved of S/P2 presented the award to Geico’s Joe Lacy at the Collision Industry Conference (CIC) held in Palm Springs, CA. Medved said Geico “excels at safety and pollution prevention,” providing S/P2 training for its entire claims staff, and requiring at least one person at each of its direct repair shops complete the training and testing. In accepting the award, Lacy acknowledged that in the past he “wasn’t a very safe person,” and that he was “no stranger to emergency rooms.” But having a doctor with a scalpel inches away when he had metal in his eye convinced him to become more focused on safety. “I don’t ever want to do that again,” Lacy said. Each year, S/P2 provides training and testing of more than 100,000 students, instructors, shops and claims staff nationwide through industry-specific online safety and pollution prevention training. For more information, visit www.sp2.org. 58 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

of health risks to which painters wearing the various spraysuits may be exposed. Thomas’s testing was not examining how much isocyanate exposure painters face while spraying in the booth. In fact, his testing began by having a painter wear one of the testing sensors on his wrist outside of the spraysuit. After spraying clearcoat on two fenders and a hood for about 10 to 12 minutes, the sensor showed no isocyanate exposure. (Thomas postulates that this may be because more exposure time is necessary, or that the sensors may have showed more exposure if placed lower in the booth on the painter’s lower legs.) So Thomas’s testing was done by placing the sensors on a spraycard placed inside the same area in each of the suits, then spraying that area directly for about five seconds with a pass from right-to-left and back again. (A similar test to simulate a spill exposure had similar findings although

one suit that fared fairly well in the spray test did less well in the spill test.) The sensors turn bright orange with initial isocyanate exposure and a more dull, brownish orange with more saturated exposure. Based on this testing, only one of the six suits tested prohibited isocyanate exposure. “But this is not a working environment of standing and spraying in a booth for hours,” Thomas said. “What we wanted to confirm is we can test these suits, and we have that ability. So some of the manufacturers’ claims that there is no test is false. And we want to invite and engage the manufacturers to take some ownership of this.” He said his next step is to present the findings to the manufacturers “to give them the opportunity to recreate it or maybe test all their suits, and then share those results with the [CIC] body.”

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“There are a lot of options out there, and unfortunately, shops are liable for choosing the correct suit, not the manufacturers and not the jobbers or distributors,” Thomas said. This was the fourth consecutive CIC meeting that included discussion of isocyanates, a family of chemical compounds, found in several products used in collision repair (most notably, clearcoats), that can pose serious and permanent health risks if not handled properly. According to the National Institute for Occupational Safety and Health (NIOSH), workers improperly exposed to isocyanates can suffer permanent respiratory complications, and even death, from a single episode of overexposure or intermittent exposures at low concentrations. They are a leading cause of occupational asthma. The Occupational Safety and Health Administration (OSHA) has stepped up inspections of body shops nationwide as part of a three-year emphasis (until mid-2016) on protecting workers from isocyanate exposure. Collision repair is one of about 10 industries targeted by OSHA under the program. The OSHA shop inspections under this program are not brief; they

may be conducted over three or four days, possibly spread out over several weeks. Inspectors are checking a shop’s chemical inventory, safety data sheets, hazard assessment training and personal protection equipment (PPE). They are checking the shop’s OSHA 300 logs for five years, and reviewing workers' medical records. They are interviewing employees to ask about PPE usage, asthma diagnosis, or symptoms (such as watery eyes, shortness of breath, chest tightness) that occur at work but dissipate away from work. And they are conducting air sampling and wipe sampling on skin and PPE—and even in areas such as drinking fountains or employee break rooms where other employees could be exposed to isocyanates if a painter, for example, sits down or touches items while still wearing a shootsuit or gloves. How long do isocyanates on such surfaces pose an exposure risk for others? Speaking at CIC last fall, Catherine Sayles of Bayer Material Science, a raw material supplier of isocyanates to paint manufacturers, said it varies. “If it’s still wet, I would definitely say you have that potential,”

she said. “Once it’s dry, it depends on how much of it is there, how thick it is, how much isocyanate is actually in the product.” She said shops can check for surface or skin contamination from isocyanates—after clean-up of a spill, for example—by using Swype test kits for aliphatic isocyanates. Sayles also said her company recommends the use of nitrile gloves (not latex) when working around isocyanates, but cautioned that shops can no longer presume that “blue gloves” are nitrile as opposed to just latex. “In the past, the latex manufacturers always made their gloves white and the nitrile gloves were blue,” she said. “Now the manufacturers of latex gloves are also making them in different colors, including blue. So there’s confusion sometimes as to whether a blue glove is latex or nitrile. You want to make sure you’re paying attention to the box and what kind of glove you’re using, because latex gloves are not adequate for isocyanate protection.”

I-CAR® Hybrid and Electric Vehicle Disable Search

I-CAR® announced in Jan. the launch of the Hybrid and Electric Vehicle Disable Search on the I-CAR Repairability Technical Support (RTS) Portal. In the Hybrid and Electric Vehicle Disable Search, repair professionals will find information on how to identify where parts of the hybrid or electric system are located, how to disable the system before beginning a repair, welding best practices and refinish precautions. “The RTS team has worked diligently to bring all of this information into a singular location because of the importance for all repair professionals to understand how to properly disable hybrid and electric vehicles to ensure their own safety,” said Jason Bartanen, Director of Industry Technical Relations for I-CAR. “In addition to technician safety, if the vehicles are not properly disabled they can cause damage to the vehicle.” For more information on how to safely approach hybrid and electric vehicles after a collision, and how to understand the risks and risk-avoidance of working around alternative fuel vehicles, technicians can choose from Live and Online training from the I-CAR Professional Development Program™.

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Diamond Standard Parts’ New Web-Based Program “UNSUB”

Diamond Standard Parts announced its new “UNSUB” web-based program: www.unsubparts.com. The program gives access to all Diamond Standard Part’s offerings including both photo and descriptive information using either the OEM reference number, the Partslink + DS, DSN, or DSC number, or by selecting the vehicle, Make/Model/Year. The Make/Model/Year function shows all parts and part photos for the model made by the company. Michael O’Neal, President of Diamond Standard Parts, said “Taking delivery of what you order, specify and pay for in structural parts solutions is critical and should be a basic obligation of the supplier.” The parts are available through their distributor programs in the USA and Canada including the AQRP program at Keystone, an LKQ Company. “Substitution of structural safety parts goes against everything the quality driven aftermarket manufacturers and their supporters have continued to strive for in choosing safe and tested certified parts,” said O’Neal. “The low end supply chain continues to choke the system with misinformation, serious product quality downgrades, and lack of attention to detail.” O’Neal said after taking a survey with members of the largest body shop associations, comments included

cycle time issues, interruption of work flow processes, extended rental car days, repair backlogs, dead space in paint bays, thicker repair files and dissatisfied customers for shops and insurers. “Diamond Standard’s unique, trademarked part number system using the Partslink number + DS, DSN (NSF), or DSC (CAPA) ex: FO1006251DSN listed in the databases is easy to find, easier to identify, and eliminates substitution,” said O’Neal. “Diamond Standard is the only One quality manufacturer of structural safety parts in the aftermarket.” One Quality Manufacturing means Diamond Standard only makes one quality of structural parts for the North American market. Unlike other manufacturers, O’Neal said the Bartlett, TN-based company does not sell in other countries in the world that are low price/low quality driven. He said the DS parts numbering system is important because some suppliers using their unique part number use the same number for all levels from every manufacturer, certified, non-certified, or junk. He said this can cause confusion for the buyer and eliminate lost sales. Visit diamondstandardparts.com, unsubparts.com or email mike@diamond standardparts.com

Independent Shops “Outshine” Dealership Repair Centers in Consumer Reports Survey Consumer Reports latest survey of repair service satisfaction found the odds are consumers will be more satisfied with an independent repair shop than with a franchised new-car dealership. The one automaker that outscored the independent shops was the electric carmaker Tesla, which earned high praise for its on-time repairs, courtesy, price, quality and overall satisfaction. But part of Tesla’s current success might be because it’s new to the market, and it has a relatively small number of customers to satisfy compared with the established luxury brands. The survey, conducted by the Consumer Reports National Research Center in 2014, was based on subscriber satisfaction with repairs on more than 121,000 vehicles—80,000 of which were repaired at franchised dealers and more than 41,000 at independent shops. Independents outscored dealership for overall satisfaction, price, quality, courteousness of the staff, and work being completed when promised. With few exceptions, the entire list of independent shops got high marks on those factors. The same couldn’t be said for franchised new-car dealers. “To be fair to mechanics at franchised dealerships, our respondents also

reported being very satisfied overall with their repairs despite being outscored by independent shops,” said Mark Rechtin, Consumer Reports Cars Content Development Team Leader. Luxury and upscale brands topped the chart among franchised new-car dealers, with Buick, Lincoln, Cadillac, Lexus, Porsche, and Acura slotting in behind Tesla, in that order. There were also some disappointments involving prestige marques. The biggest complaint was about the cost of parts and labor. Mercedes-Benz drivers, in particular, were much more satisfied with the price they paid at independent shops. Also dinged for high prices were Jaguar dealerships—as well as Mini dealerships, which often share a service drive (and high prices) with an affiliated BMW dealership. And if you own a BMW, Porsche, or Volkswagen, bargain hunting for a mechanic might not pay off. Owners of those brands were equally satisfied with the price paid at dealerships and independent shops. The complete repair satisfaction ratings for 32 brands franchise repair centers as well as the independent shops that service those brands is available at http://www.ConsumerReports.org.

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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 61


Large Portion of Antitrust Multidistrict Litigation in FL Dismissed, Refiled by Plaintiffs by Stacey Phillips, Assistant Editor

Judge Gregory Presnell in Florida has dismissed a large portion of a Federal lawsuit in multidistrict litigation court accusing State Farm Mutual Automobile Insurance Co. and 40 other insurers of conspiring to suppress reimbursement rates for vehicle damage repair costs. However, the plaintiffs have already refiled claims that were dismissed without prejudice. John Eaves of Eaves Law Firm in Mississippi, the lead lawyer for the plaintiffs, said this was not a surprise. “We anticipated [the dismissal],” said Eaves. “This is what was done the first time we filed a complaint in Florida.” “My interpretation is that [Judge Presnell] wanted a lot more of the actual facts and details in the complaint… instead of something so general,” Eaves told Autobody News. However, the ruling may be a setback for hundreds of other auto repair shops alleging similar claims against insurers in the multidistrict litigation in the District Court. Shops across the country have provided Eaves with an abundance of information that he has now incorporate into the revised complaint. He said it is a longer document, much more detailed and comprehensive. As of the date of the ruling, 22 other cases initially filed in numerous states, including Indiana, Kentucky and Virginia, are currently before Judge Presnell for coordinated pretrial proceedings. In re Auto Body Shop Antitrust Litig., MDL No. 2557, complaints filed (M.D. Fla.). According to the plaintiffs in the Florida action, the defendants exercise control over labor and repair costs by entering into DRPs with body shops. In exchange for providing certain concessions of price, priority and other matters, the defendants list the shops as “preferred providers.” However, the defendants, led by State Farm, allegedly have conspired to use the DRPs as a way to set maximum price limits on the shops’ products and services, according to the suit. If the labor rates are deemed unacceptable, the defendants demand a lower rate, arguing the higher rate does not conform to the market rate and therefore violates the DRP, the plaintiffs argued. Further, failure to comply with the defendants’ demands results in removal from the preferred-provider program or

improper “steering” of customers away from the “noncompliant” auto body shop’s business, the plaintiffs say. But Judge Presnell ruled that the plaintiffs offered no details about how or when the insurers entered into the alleged price-fixing agreement. The fact that a number of defendants have indicated an unwillingness to pay more than State Farm has to pay for parts or labor also does not, itself, violate the Sherman Act, he said. “It is not illegal for a party to decide it is unwilling to pay a higher hourly rate than its competitors have to pay, and the fact that a number of the defendants made statements to that effect does not tip the scales toward illegality,” Judge Presnell wrote. The plaintiffs also failed to establish that the defendants may have engaged in boycotting activity by allegedly steering customers away from noncompliant shops, according to the ruling. “There is no allegation that any defendants refused to allow any of its insureds to obtain a repair from such a shop or refused to pay for repairs performed at such a shop,” the judge said. The plaintiffs also cannot move forward with their claim for tortious interference with business relations, he said, because the defendants had an existing financial interest in the relationship between their insureds and the plaintiffs and were therefore “privileged to interfere in that relationship.” “For tortious interference to be unjustified, the interfering defendant must be a third party, a stranger to the business relationship,” he said. Judge Presnell did, however, permit the plaintiffs to continue with their claim for conversion, which alleges the defendants failed to make full payment for certain labor and material costs. Other defendants in the action include 21st Century Centennial Insurance Co., Allstate Fire & Casualty Insurance Co., Geico General Insurance Co. and Hartford Accident & Indemnity Co. The claims brought by the plaintiffs included: quantum meruit, unjust enrichment, quasi-estoppel, tortious interference with business relations, conversion, and violations of the Sherman Act in regards to price-fixing. All but one count, quasi-estoppel, was dismissed without prejudice, meaning that plaintiffs will be able to file an amended pleading reasserting the counts by Feb. 10.

62 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

The quasi-estoppel (count III) was dismissed with prejudice, meaning that it will not be allowed to be refiled. The term is described by Florida courts as “… a legal doctrine, applicable in certain limited circumstances, which provides that ‘[a] party cannot, either in the course of litigation or in dealings, occupy inconsistent positions.’” Another way to think about quasiestoppel is: Someone (#1) thinks something (A) is true and takes action based on that belief, someone else (#2) says “A is not true (even though #2 previously said it was)” and that causes #1 to do something that results in harm (i.e. business loss). If it turns out that A was true to begin with, #2 is guilty of quasi-estoppel. The plaintiffs sought to have quasi-estoppel applied in regard to repair estimating databases. According to court documents, “The Plaintiffs allege that the Defendants ‘have relied upon and asserted the validity/authority of the databases... when it has been to their respective advantage’ but that, in other instances, the Defendants ‘have refused to compensate and/or fully compensate Plaintiffs for mate-

rials expended and work performed, including labor and labor rates, upon reliance of these very same guides, claiming that they are unnecessary to complete the work at hand.’” Court documents stated that the Plaintiffs sought to have the Defendants stopped from denying the applicability and reasonableness of the repair databases; however, the Florida court did not find this to be a cause for action. “The Court’s order is a significant victory for Farmers and the other defendants,” wrote the law firm Weil, Gotshal & Manges LLP, representing Farmers’ affiliates, in an article posted on Weil’s website. “Though the Court dismissed all but one claim—for quasi-estoppel—without prejudice, it strongly suggested that plaintiffs would have difficulty remedying their remaining claims in an amended complaint. Additionally, this decision dismissed claims based on allegations similar to those contained in approximately 20 other cases in a consolidated multi-district litigation pending in Florida, entitled In re Auto See MDL Dismissals, Page 74

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Shop Showcase

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

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

Known as the Greenest Shop in the USA, Selecta Body Shop in San Francisco’s Mission District has received major praise, top reviews and now a prestigious award for running an environmentally responsible business. But, the burning question that probably every body shop owner anywhere wants to know is does being green increase profits or in the end, or does it just help the owner to sleep better at night? Do customers care and maybe more importantly—do the insurance companies care?

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

Being in it to win it when it comes to being 100% green from the first day he opened his doors, Jeremy “JR” Hubbard, the owner of Selecta Auto Body has now been in operation at his current location for almost two years. Since opening, he’s refined his processes and further embraced the green way of doing things, while trying to be a fair employer in every aspect of his business. To this end, Selecta Auto Body is the only collision repairer in the country today that has achieved B-Corp certification, by meeting rigorous standards of social and environmental performance, accountability and transparency. Sure, Hubbard wants to make money and fix cars right, but more than anything else he wants to run his business “with a conscience.” “I’m a father and an employer obviously and I want to be able to make a profit,” Hubbard said. “But, I also want to do be a fair employer

and a responsible member of the business community. Part of being a green operator in a very environmentally-conscious city like San Francisco and maintaining the B-Corp certification means that I can hopefully make money, but also we want everyone to win—my customers, my family, my neighbors and my employees.” It took two years of hard work to turn an old building into Selecta’s new 10,000-square-foot facility and it ate up just about all of Hubbard’s funds to make it a reality, he said. But since starting business in April 2013, the numbers have slowly edged up, to the point where he can say that November 2014 was his first profitable month after fixing 65 cars. “We still want to do 100 cars monthly, because we can handle the volume and that’s been our goal,” Hubbard explained. “The numbers are improving every month and the future looks solid. We picked up two great DRPs during the last four months of 2014 and now we have a total of three. We easily absorbed the increased workload during the fourth quarter and now we’re excited about 2015.” Last November, Selecta Body Shop won a significant award at the 2014 SEMA Show in Las Vegas, when AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) announced that three North American companies were selected as winners of the fifth annual FIT Sustainability Award, an industry recognition program honoring businesses and organizations that are actively engaged in practices that advance the concepts of sustainability. Selecta took one of the three coveted spots, which was a big deal for a lot of reasons. “Being green is definitely a plus, especially when it comes to marketing,” Hubbard said. “It all works hand in hand and awards like the FIT Sustainability Award from AkzoNobel are a huge deal. To be honored at a show like SEMA and having other shops interested in what we’re doing, that’s beneficial for us and the industry as a whole.”

64 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

so that he can paint more cars and parts simultaneously, thereby saving time and materials. The shop features two curtained-off areas, one dedicated for prep and the other for detailing work. Hubbard is also gearing up for the collision industry’s rush to aluminum. “We know that aluminum is coming, but to what degree nobody really knows.” Hubbard said. “So, right now we have an area dedicated for aluminum work when we get it. We don’t Later last year, Selecta Body Shop started turning a profit have a ton of extra space here and being green has definitely played a pivotal role and we’re taking full advannot in use and uncovering the build- tage of what we currently have, but ing’s skylights and front windows to when aluminum becomes a significant use natural light whenever possible. amount of our volume, we’re ready.” There was definitely an added He also mounted more than 350 pothos plants on the wall to bring cost to building what Hubbard defresh air to the shop. He purchased scribes as “the ultimate green an oversized Global Finishing Solu- shop,” but once it was up an and tions downdraft heated spray booth See Does Green Mean Green?, Page 67 Hubbard truly walks the walk when it comes to being green. Some of the more notable things he’s done to his shop include installing motion sensors in every room of the shop so the lights turn off when the room is

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National Associations

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

2015 NADA Expo Brings 23,000 to San Francisco with Ed Attanasio

The aisles at the Moscone Center were jam-packed with 23,000 dealers and suppliers from across the globe at the 2015 National Automobile Dealer As-

educational workshops for dealers and their managers, several hundred exhibitors on the expo floor and numerous networking events, including lavish, over-the-top parties featuring bands such as Cheap Trick, Joan Jett

Global Finishing Systems was in the house at the NADA Convention & Expo in San Francisco. From left, Business Development Manager Troy Volbrecht, VP of Refinish Brandon Lowder and Collin Armstrong, Business Development Manager in front of their booth

sociation (NADA) Convention & Expo in San Francisco, CA, Jan. 22-25. Considered the “Automotive Industry Event of the Year,” the NADA convention includes dealer-manufacturer franchise meetings, hundreds of

Representing Dent Wizard at NADA were (left) Regional Business Development Manager for the Northeast and Canada Tom Duffy and National Director of F&I Sales Aaron Cooper

and Huey and the News. Car dealers and their suppliers were excited and in a good mood, because their industry is thriving. This

Axalta was exultant about the turnout for this year’s NADA Show. From left, Thomas McGarry, North American Manager for IT Tech Services; Deirdre Mayhood, ProfitNet Territory Manager; Gary Scott, Business Segment Manager, OEM Aftermarket and Brian Mahoney, National Acct. Manager, OEM Aftermarket made the trek to the City by the Bay to wave their flag

was supported during the first day of the Expo, when Steven Szakaly, the NADA’s Chief Economist, said that

he expects to see a steady growth in vehicle purchases in 2015, with sales of new cars and light trucks expected to reach 16.94 million. In his first keynote address as chairman of NADA, Bill Fox delivered a message to critics of the franchised

From left, Chuck McKee, Art Ewing and Adolph Cosio represented Pro Spot at this year’s NADA Convention & Expo in San Francisco

dealer network. “The automotive franchise system is the best and most efficient method of bringing new vehicles to the driving public,” Fox said. “The franchise system breeds competition

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that benefits consumers, manufacturers and local communities alike.” The auto industry has survived because it is rooted in dealer innovation and value, Fox said. “It was dealers who survived wars, recessions, a

Roberto Hornedo from Pacific Collision Equipment Company and Bob Zelano the Director of Car-O-Liner Operations at the Car-O-Liner booth at the NADA Convention & Expo

depression, oil embargoes and manufacturer bankruptcies. We survived all that because we are leaders—not followers—of change. This is the industry that changed everything. The reality is that dealers are catalysts for change.” Other notable keynote speakers at the NADA Convention & Expo included Jeb Bush, the governor of Florida, Comedian and avid car collector Jay Leno and on Sunday, an inspirational message was presented by

Dr. Beck Weathers, a survivor of the 1996 Mt. Everest tragedy. There was a lot of walking, networking and of course, partying. One of the most talked about events at NADA 2015 was the Dealertrack party at ATT&T Park, home to the World Series San Francisco Giants. The music was provided by the legendary Allman Brothers and the event quickly sold out.

Garmat’s General Manager Johan Huwaert and the company’s Marketing Manager Debbie Teter had a booth in their booth—a paint booth that attracted collision center managers all of the three days at the 2015 NADA Convention & Expo

To bring a little San Francisco flavor to the trade show floor, the people at NADA surprised exhibitors and attendees with fun performances by Dragon Walkers from Chinatown and dancing hippies from Haight-Ashbury, who were played by local theater students.

Continued from Page 64

Does Green Mean Green?

running, it was all worth it, he said. “Some shop owners may think it costs a lot more to be green, but it’s really not that more expensive overall, because we’ve cut our waste and it is definitely showing up in our bottom line now. We don’t waste anything and we’re coming from that mindset, so once you get into being green, the benefits start to become apparent.” By using more natural light whenever possible and painting all of his floors with reflective paint, insulating his ceilings to retain heat and installing motion sensors on all his lights. Selecta’s utility bills are lower. And of course, by saving paint, clear coat and sealers with every car painted, it adds up to offset his original investment. “It starts to

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

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

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Lean Operations

Cycle Time Success Using Little’s Law with David Luehr

“Get The Keys!” is the usual mantra at most collision repair shops these days. That is completely understandable given that the only way we can profit from that vehicle’s damage is if we get the keys first. If you are a fortunate enough collision center to have plenty of work coming in, that thinking could be a problem. That problem is Little’s Law and it plays a huge role in your performance. Big MSOs understand this law very well and have taken many steps to ensure they maintain an optimum car count or “WIP” through the use of scheduling or load leveling. By understanding the correct number of units to have at your repair facility at any given time will give you the opportunity to maximize both profits and cycle time. I will boldly go forth and say that the number one biggest influence on most shops' cycle time performance is simply based on the amount of work they bring in each day. There is nothing magical about bringing all the repairs in on a Monday unless you can start on all of them on Monday! Little’s Law was named after MIT Professor, John Little and is a mathematical formula that is used to calculate cycle time. In the case of collision repairers, we usually measure cycle time from the point a customer drops off their vehicle until it is finished and picked up. (Keys to keys) Check it out… Cycle Time Performance = Workin-Process Units (Number of Cars) divided by/daily throughput (Average number of units produced per day)

Cycle Time Performance =

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

below, it represents a repair shop that averages two vehicle deliveries a day. This shop has 10 cars in it. 10 divided by 2 = 5 days average cycle time.

Let’s take a look at the same shop again, only now they have been grabbing a lot more keys! What would the average cycle time be now? You do the math. In order to reduce cycle time, you often must reduce your WIP. The trick

is to not lower the WIP to the point that people are standing around and your revenue begins to suffer. Conversely, if you have too much WIP and feel your cycle time may suffer, you may need to consider a temporary increase on production hours in order to return to Optimum WIP levels. To choose an Optimum WIP Unit number for your shop – reverse the math: ► Find your average number of repairs

# of cars in process (keys in hand, authorization to repair) Average # of cars delivered per day

(You can also measure using Dollars or Labor Hours instead of units) So if you look at the funnel graphic

produced daily (Total vehicles delivered divided by days in the month) ► Choose your goal cycle time (keys

68 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

to keys days) ► Multiply repairs produced daily X goal cycle time days = Optimum WIP Units Example: XYZ Body Shop produces four cars a day on average and wishes to reduce its cycle time to an average of seven days per RO. 4 X 7 = 28 XYZ Body Shop must maintain a work in process (WIP) count of 28 cars to achieve its cycle time goal of seven days. However, if XYZ Body Shop does not have the systems and resources available to effectively process the reduced number of ROs quickly, they run the chance of damaging revenue. I recommend that you set your goals to reduce WIP incrementally as your system improvements allow. You can see the important role that work-in-process plays in cycle time performance. The path to Optimum

Performance must involve Optimum WIP and it all begins with good scheduling skills and habits. These habits do not need to involve over-rated fancy computerized scheduling solutions, it can be done using a simple spreadsheet and a little common sense so don’t over-think it. Feel free to email me if you would like to see an example of this, but you may be disappointed by its simplicity. dluehr@msn.com There are many things that affect your cycle time performance, but understanding Little’s Law and simply paying attention to your Optimum WIP could have a huge impact immediately!

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Bobby Alloway’s PPG-Painted Car Wins 2015 AMBR Award

A Bobby Alloway-built car won the 2015 America’s Most Beautiful Roadster (AMBR) award at the Grand National Roadster Show (GNRS) held Jan. 23-25 at the Pomona Fairplex in Pomona, CA. The striking 1933 roadster, owned by Larry Olson of Sioux Falls, S.D., was finished by Alloway and drew approval from the show judges and the crowd alike. The AMBR, an eight-foot tall trophy, is awarded annually and is regarded as the ultimate recognition of a roadsterstyle hot rod. It was Alloway’s second time winning the prestigious award; his first was in 2003. Alloway also won Best Rod of the GNRS this year with the ‘37 Chevrolet coupe that was in the top 10 in the Builder’s Challenge at SEMA this past November.

TRON ® DBU 9700 Basecoat and DCU 2002 CONCEPT® Clearcoat. Alloway, renowned as “the master of black” because his distinctive cars are almost always painted black, has been building ageless street rods since 1978. His shop, Alloway’s Hot Rod Shop, in Louisville, TN, opened in 1991 and has consistently turned out a stream of award-winning vehicles. He is well known for cars that feature a commanding, aggressive look obtained through a combination of color, proportion, stance and pure power. Along with winning the AMBR and Best Rod honors, Alloway was inducted into the GNRS Roadster Hall of Fame during the show. The Hall of Fame was established in1960 to elect “outstanding pioneers in the

Other first-class builders that were big winners at the show included Randy Borchering of Painthouse in Cypress, Texas, and Dave Kindig of Kindig-It Design, Salt Lake City, Utah. Borchering’s two-toned 1947 Hudson painted in his custom Bad, Bad Leroy Brown and Green Acres Pearl took First in Class, Outstanding Paint, and Outstanding Display accolades. “Winning these awards was awesome,” said Borchering. “This is the Olympics of car shows, and you’re up against top competition. Winning here is extremely gratifying.” Borchering used Deltron DP90LV Epoxy Primer, VIBRANCE COLLECTION® VP2100 Polyester Primer, Deltron Basecoat and GLOBAL REFINISH SYSTEM™ D8152 Clearcoat to reap the honors. Borchering has been using PPG products for 25 years. Painthouse has been building custom cars for almost 10 years and has a reputation for its outstanding paint jobs. Dave Kindig scored with a 1934 Dodge and a 1950 Phantom Fleetside. The Dodge took home First in Class, Outstanding Paint, Outstanding Interior and Outstand-

ing Display awards. The car is painted a custom PPG mix called Dark Desert Sage, which was created using ENVIROBASE® High Performance Basecoat and Global Refinish System D8188 Clearcoat. The Phantom Fleetside won the 2015 Al Slonaker Award for the most innovative vehicle at the show. It’s finished in a white-over-red paint scheme using Envirobase High Performance Basecoat and Global Refinish System D8188 Clearcoat. Both builds are examples of the high-level work Kindig-It Design regularly turns out. “From solvent to water, our customers make our paint shine,” said John Parran, Marketing Director, PPG Automotive Refinish. “We’re proud of our products, but we’re even more impressed by what our customers can do with them. We congratulate these winners on jobs well done and look forward to what they dream up next.” To learn more about PPG Automotive Refinish products, call (800) 647-6050 or visit the PPG Automotive Refinish website at www.ppgrefinish .com.

Car owner Larry Wilson (left), builder Bobby Alloway and the AMBR trophy in front of the awardwinning roadster

The GNRS started in 1950 and is the longest running indoor car show in the world. This year, 18 competitors vied for the AMBR. Alloway’s award-winning entry featured his signature black finish embellished with contrasting blazing orange flames running nearly the entire length of the roadster’s body. Alloway uses PPG products exclusively, and this showpiece was no exception. He achieved the car’s outstanding look with PPG’s DEL-

creative car building sport.” Alloway’s entry into the respected body was based on his illustrious career, building remarkable cars that have received significant awards. In addition to his two AMBRs, his cars have won the Goodguys’ Street Rod and Street Machine of the Year, the highlyprized Ridler trophy and others. He has also been welcomed into the National Rod & Custom Car Hall of Fame and honored as Detroit Autorama Builder of the Year.

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Emissions Requirements May Cause NY State Inspection Headaches by Paula Ann Mitchell, Daily Freeman

Most of January was a drag for Tim Court. He had no car for the first three weeks and ended up being stuck in his apartment, twiddling his thumbs. The Highland man’s predicament began on Jan. 5. His 2009 Chevy Cobalt did not pass the emissions portion of the New York State vehicle inspection, and mechanics at Above All Auto Repair on Route 44/55 in Highland did what they could to get him back on the road. At issue is the “check engine” light, also known as the Malfunction Indicator Lamp. “It wouldn’t go off, so I took it to a couple of places. I just wanted to get it through inspection,” Court said. The dealership where he bought the car told him it was a problem with the valves and low compression and quoted him an estimate of $2,400 to make the repairs necessary to get it through inspection. Frustrated, the cash-strapped Court took it to the Highland shop and was told the top half of the engine needed to be removed and sent away for repairs. The whole thing would cost him just over $1,200. Court anticipated getting his car back on Jan. 19, though not necessarily with the official 2015 red inspection sticker. “I have to drive it around a few days to reset the codes,” he said. “They will give me a temporary sticker for 10 days. If another code comes up, then I’m out of luck.” Meanwhile, he and his girlfriend, Rose Gurrieri, were stranded in their three-room apartment, wondering how they would pay for the mounting costs. The pair is on disability and had to rely on Gurreri’s mother to put a down payment on the work that has already been done. For them, like many other working class New Yorkers or those on fixed incomes, just maintaining the vehicle throughout the year has been a challenge, particularly with the high cost of living in the Empire State. According to the Vehicle and Traffic Law, Article 5, Periodic Inspection of Motor Vehicles, Section 301, “The commissioner requires that every motor vehicle registered in this state be inspected once each year for safety, and at least biennially for emissions.” The New York Department of Motor Vehicles administers vehicle

laws enacted by the state Legislature. For the safety portion of the inspection, cars are checked for properly functioning seat belts, brakes, steering and all steering linkages, tires, lights, windshield and other glass, wipers, blades, horn and mirrors. Each vehicle registered in the state must be inspected annually before the current sticker expires or whenever the vehicle is registered under a different name.

Mike Anello, co-owner of Woodstock Automotive on Mill Hill Rd. pulls out the OBD II, which connects the computer to the car during inspection. Photo credit: Tania Barricklo – Daily Freeman

New York is far from the only state requiring regular safety checks, although less than half have periodic inspection programs in place, according to autoinc.org, the Automotive Service Association’s online publication. The majority of these states, it notes, are in the Northeast. In a September 2014 report, Autoinc. further stated that the scarcity of periodic motor vehicle inspections, “coupled with the current economic conditions, have led to an increased number of neglected repairs.” As far as New York’s emissions program, it grew out of the 1990 federal Clean Air Act and is carried out by the DMV, according to spokesman Chet Lasell. “Standards are set by the New York state Department of Environmental Conservation... with the agreement and approval of the EPA in accordance with the Clean Air Act,” he wrote in an email. While Court agrees in theory with the standards, he thinks they may be a bit stringent and, in many cases, too costly for the average New Yorker. “It has been annoying,” he said. “We just wanted to get the car through, and now, we’re stuck. It’s just a little too much.” That’s a sentiment shared by Dave Hollar of the town of Ulster. Since he bought a 2003 Hyundai Elantra for his daughter, Sarah, in 2009, he has had

72 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

nothing but problems. “It’s basically every three to six months after we get something fixed, the ‘check engine’ light will come on,” he said. “Usually it’s a different code (showing up) than the previous one that has been repaired. We’ve done four or five over the years. Once, it was the catalytic converter. Another time, it was the gas cap. The key thing is the car always runs fine. There’s nothing wrong with it, but the computer thinks there is.” Hollar, a programmer at IBM, said he has put close to $2,000 into emissions repairs over the years—an amount he believes is more than the value of the car, which he intends to replace in the coming months. As far as New York’s strict vehicle emission standards, Hollar isn’t so sure they do what they’re intended to do. “If it truly means your car is polluting, fine, but I think when it continually happens, there’s a glitch and you’re forced to take care of that, even though you know there’s nothing truly wrong with the car.” For others, public health trumps everything, particularly when it comes to regulating air pollutants. “It [emissions] is not a mechanical issue, but it’s certainly a safety issue,” said Daniel Gartenstein, assistant corporate counsel for the city of Kingston. “The federal government has implemented restrictions regarding emissions, and it’s not for a municipality to ignore those requirements, and it’s not for drivers to simply ignore them and continue to drive.” In New York state, if a driver is caught with an expired inspection sticker, police issue a traffic ticket ranging from $25 to $50 (up to 60 days late) or $50 to $100 (past 60 days). Mandatory state surcharges of $55 as well as additional fees are added to the fine, according to the DMV. Drivers also can get parking tickets if their cars have expired, stickers or no stickers. Most courts dismiss those cases where a driver shows proof of inspection immediately following a ticket. In Gartenstein’s role, he sees numerous people in traffic court each Wednesday for violations like cellphone use, speeding and expired inspection stickers. He said most of the expired inspections are simply because drivers

overlooked them. “The vast majority of the defendants simply forgot or their wife forgot or their kids forgot. You’d be amazed how many of them blame a family member,” he said. “Most people who can’t afford to pay for repairs to their vehicle are not driving and are relying on public transportation. I have never had someone come into city court and tell me the inspection expired because they couldn’t afford to get the car fixed.” Moreover, Gartenstein does not see it as a growing problem, even in the still-struggling economy. “It comes in waves. Some weeks, we have 10 or 20 (expired inspection violations). Some weeks, we have none. “I wouldn’t say there isn’t anything to this,” the attorney said of the link between expired stickers and the poor. “I think there are financial hardships people deal with on a daily basis, and one of those is the price of maintaining private transportation and this is part of that equation.” For those with limited means like Court, there is a solution if certain conditions are met. It is called a waiver, or “pass.” “An emission inspection waiver is provided for in regulation and is allowed by terms under New York’s agreement with the EPA,” Lasell noted. “If a person attempts to repair their vehicle after an ‘OBD2’ (Onboard Diagnostics) emission failure and the vehicle still fails the ‘OBD2’ portion of the inspection after repair, a waiver may be offered by the inspection station.” In order for that to happen, the vehicle must pass the safety inspection and emission control devices must show no signs of tampering, Lasell said. Additionally, the repairs must total at least $450. Court had no idea about the waiver and said he wasn’t ready to go in that direction. Late in the game, he ended up renting a car so he could get out of the apartment and run errands, and his mechanic, Mike Dubois, even paid for three days. But a funny thing happened as Court pulled out of the car rental shop, leaving him slightly bemused. “The ‘check engine’ light was on,” he said. “It makes you wonder.” We thank Daily Freeman permission to reprint their article.


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Continued from Page 62

MDL Dismissals

Body Shop Antitrust Litigation.” The Weil team represents Farmers’ affiliates 21st Century Centennial Insurance Company, 21st Century Indemnity Insurance Company, Foremost Insurance Company Grand Rapids, Michigan, Bristol West Insurance Company, and Security National Insurance Company. James Burns, co-leader of the antitrust practice at Dickinson Wright PLLC, told Autobody News that the Court’s most recent ruling is a significant victory for the defendants, and one that could potentially lead to a quick end to the proceeding.

“While the Court has granted plaintiffs leave to amend several of their claims, if the proceeding is going to continue they will need to demonstrate that the infirmities identified by the Court in the recent ruling have been remedied in an amended complaint,” said Burns, who is not involved in the MDL proceeding. “Whether that will be possible remains to be seen. In any event, any amended complaint will likely be met by a renewed motion to dismiss by the defendants, setting up another significant ruling by the Court this Spring or Summer.” When Autobody News spoke to Eaves on Jan. 22, he was in Washington D.C. to meet with members of the House and Senate regarding the intro-

duction of a bill to enforce the 1963 Consent Decree. This was a follow up to his earlier trip in September 2014 when Eaves and more than 65 body shop owners visited the Capital to begin these discussions. “My goal here [in Washington D.C.] is to understand what the best way is to present this in the new congress and decide who is going to take the lead on it and articulate the message,” said Eaves. He said the objective of the lawsuit and the bill is the same. “At the end of the day it’s to protect consumers by protecting the shops that are loyal to the consumers that want to do the repair the right way and the best way and not let the insurance companies cut

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