March 2022 Northeast Edition

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Vol. 12 / Issue 12 / March 2022

GM Investing Nearly $154 Million in Western NY for Electric Motor Components Production

New Jersey Enacts Insurance Bad Faith Statute for Auto Insurers

General Motors announced Jan. 21 plans to invest nearly $154 million in its Western New York Lockport Components plant.

The investment will be used to renovate the facility and purchase and install new machinery and equipment used in the production of the stator module, a key component in an electric motor. Electric motors will be used in a variety of GM’s future Ultium Platform-based electric trucks and SUVs. Facility renovations will begin immediately.

As Lockport Components pre-

by Troutman Pepper, for JD Supra

pares for electric motor component production, the facility will continue to build a variety of components that support GM’s current truck and SUV

See GM Investing, Page 29

EV Chargers Will Soon Outnumber Gas Stations in U.S.

by Andrei Nedelea, InsideEVs

The charging station infrastructure in the U.S. will soon catch up to and surpass traditional fuel stations for the number of individual pumps, or charging stalls.

There are currently between 110,000 and 150,000 fuel pumps, while the number of individual chargers is around 110,000, according to Jerry Insurance.

The number of gas stations has been going down for the last two decades, while increasing sales of electric vehicles has spurred constant and

sometimes rapid expansion of the charging infrastructure. There are now more than 2 million EVs on U.S. roads compared to just 16,000 a decade ago.

One major challenge ahead will be for the charging infrastructure to See EV Chargers, Page 34

New Jersey has enacted an insurance bad faith statute that will penalize insurers for certain types of conduct in handling claims for uninsured and underinsured motorist coverage as the result of auto accidents.

The new law allows prevailing insureds to recover extra-contractual damages, up to three times the policy limit, as well as attorney’s fees, meaning automobile insurers in New Jersey now face substantially more risk in litigation.

Gov. Phil Murphy signed the

New Jersey Insurance Fair Conduct Act (IFCA) into law Jan. 18.

Effective immediately, the IFCA allows claimants injured in motor vehicle accidents and entitled to uninsured (UM) or underinsured motorist (UIM) coverage—benefits due where there is either no bodily injury coverage at all on the vehicle responsible for the accident, or where that vehicle’s policy limit is insufficient to cover all of a claimant’s injuries—to file suit against an insurer who has: 1) “unreasonably denied a claim See New Jersey Enacts, Page 28

A Review of Collision Repair Acquisitions in 2021

by David Roberts and Chris Lane, Focus Advisors Automotive

With 2021 now in the rearview mirror, the industry is catching its breath after a year of sprinting that saw extraordinary acquisition activity.

In one of the busiest years since 2019, the most mature consolidators—Caliber and Gerber—have gotten much bigger, while the third largest, Service King, has continued to shrink modestly.

And the adolescents of 2020, Classic Collision and Crash Champions, have dramatically grown into impressive, fully realized competitors seeking their own national footprint, each more than tripling their number of shops over the last 12 months.

Newer private equity backed MSOs also found fertile ground in 2021 with Quality Collision, Kaizen Collision and Collision Right more than doubling their shop counts during the year.

The franchisors and networks continued to find both growth challenges and opportunities as Driven

Brands, Certified Collision Group and 1 Collision continued to expand in every direction.

Based on Focus Advisors’ proprietary data, a total of 62 MSOs were acquired in 2021 with a transfer of 327 locations that formerly belonged to independent MSOs. What happened with the largest consolidators? Caliber just kept doing what Caliber does at the same relentless and effectively measured pace—buying, converting and developing. We estimate Caliber added about 201 shops; nearly 25% were brown and greenfield location.

In addition, it continued to grow its initiatives in ADAS, glass and retail service locations. Caliber only acquired one large MSO during the year, Main Auto Body in Oregon, as well as several three and four shop MSOs. However, its most notable acquisition was the acquisition of 17 AutoNation shops in 15 different markets.

Caliber continues to densify its footprint, market-by-market, both through acquisitions of single shops See Acquisitions in 2021, Page 32

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CONTENTS

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2022 Adamantine Media LLC.

Acura of Westchester ������������������������������������ 64

Kundert Volvo ������������������������������������������������� 20

American Icon Automotive Finishes ��������������� 18

Liberty Kia ������������������������������������������������������ 30

asTech/Driven by Repairify ����������������������������� 18

Long Automotive Group �������������������������������� 29

Audi Devon ���������������������������������������������������� 32

Mazda Wholesale Parts Dealers ��������������������� 71

CCC Acquires Insurtech Safekeep ������������������� 66

Audi Wholesale Parts Dealers ������������������������ 67

Mercedes-Benz of Atlantic City ���������������������� 23

Certain Metallic Finishes May Interfere with

Axalta Coating Systems ��������������������������������� 14

Mercedes-Benz of Fort Washington ��������������� 23

Biener Audi ���������������������������������������������������� 34

Mercedes-Benz of Paramus ��������������������������� 44

Biener Ford ���������������������������������������������������� 34

Mercedes-Benz of West Chester �������������������� 28

BMW Wholesale Parts Dealers ����������������� 50-51

Mercedes-Benz of Wilmington ����������������������� 28

Cadillac of Mahwah ��������������������������������������� 39

Mercedes-Benz Wholesale Parts Dealers ������� 61

REGIONAL

NATIONAL

AASP/NJ to Award a Total of $5,000 to

A Review of Collision Repair Acquisitions

NORTHEAST Attendees ������������������������������ 12 AASP/NJ to Host Webinar, ‘Overcoming Insurer Objections to Payment for Requested Procedures’ ������������������������������� 10 Cars Damaged by Gaping Potholes; RIDOT Plans to Award Contract Next Winter ����������� 6 GM Investing Nearly $154 Million in Western NY for Electric Motor Components Production ��� 1 Husband and Wife Plead Guilty to Conspiracy in Relation to Fraudulent Tax Filings of Maryland Auto Body Repair Shop ��������������� 18

in 2021 ���������������������������������������������������������� 1 AirPro Diagnostics Announces New Hire �������� 71 Auto Body Shop Owner Runs His Own Show and Looks to Exit Industry Stage Right ������� 48 Automakers Report January Sales ������������������ 70 Axalta Commits to Sustainability Goals ���������� 69 Bill to Ensure Consumer Choice in Auto Repair Introduced in U.S. House ������������������ 68

ADAS Radar Systems, PPG Expert Says ����� 56

Labor Rate, Tech Shortage, ADAS Panels

CIECA Announces 2022 Board Officers ����������� 14

Highlight Updated Educational Slate at

CIF Announces 2022 Annual Donors ��������������� 20

NORTHEAST 2022 �������������������������������������� 20

Collision Repairers Place 32 Auto Insurers

MA Gov.: $9.5B in Infrastructure Law Funds Will Transform Transportation ��������������������� 14 Mercury Insurance Launches MercuryGO for New Jersey Drivers ������������������������������� 16 New Jersey Enacts Insurance Bad Faith Statute for Auto Insurers ������������������������������� 1 New Jersey Maaco Owner Recognized for Outstanding Performance ���������������������������� 26 PA Senate Committee Votes ‘Yes’ on Bill to Allow Autonomous Vehicle Testing on Highways ���������������������������������������������������� 26 Tesla Exceeds Job and Investment Commitments for Gigafactory New York ����� 24

on Report Card ‘Honor Roll’ ������������������������� 39 Cox Automotive January Forecast: Auto Sales Volume Holds Steady, Inventory Levels Remain Tight ������������������������������������ 49 DOT Issues National Roadway Safety Strategy with Focus on Safer Vehicles ���������������������� 65 Emporia Energy, BREK Electronics to Develop First Home Bi-Directional EV Charger ������������ 4 EV Buyers Not Researching Charging Options Until After Purchase: Study ������������������������� 66 EV Chargers Will Soon Outnumber Gas Stations in U.S. ��������������������������������������������� 1 Ford, Volvo Partner with Redwood Materials

Ulster BOCES Program Receives Donation ������ 10

in Pathways Program for End-of-Life EV

Vermont to Allocate $15M Toward EV Charging

Batteries ����������������������������������������������������� 30

Infrastructure in 2023 ���������������������������������� 22 VIVE Collision Acquires Crown Collision Centers in Rhode Island ������������������������������ 19 WMABA Reschedules Meeting for March 24 ��� 12

Hertz Partnering with UFODRIVE to Improve EV Rental Experience ���������������������������������� 69 Kia Renews Teen Driving School Sponsorship �� 24 National EV Charging Initiative Holds Summit to Discuss Future of Charging Stations ������� 59

COLUMNISTS Anderson - Resources to Combat Collision Parts Supply Chain Challenges �������������������� 38 Phillips - Matrix Trade Institute’s Efficiency Bootcamps Help Collision Repair Industry Grow and Retain Employees ����������������������� 42 Yoswick - Automakers: Collision Repairers

INDEX OF ADVERTISERS

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Cebotech, Inc ��������������������������������������������������� 6

MINI Wholesale Parts Dealers ����������������������� 48

Central Avenue Chrysler-Jeep-Dodge-Ram ���� 27

MOPAR Wholesale Parts Dealers �������������� 40-41

Certified Automotive Parts Association ���������� 38

New Holland Ford ������������������������������������������ 54

Circle BMW ��������������������������������������������������� 60

New Holland Toyota ��������������������������������������� 66

Classifieds ������������������������������������������������������ 70

Nissan/Infiniti Wholesale Parts Dealers ���������� 71

Colonial Automotive Group ���������������������������� 47

Northstar Kia �������������������������������������������������� 62

Courtesy Mitsubishi ��������������������������������������� 42

Nucar ������������������������������������������������������������� 33

Craftech ��������������������������������������������������������� 26

OEM Collision Repair Roundtable, Inc ������������ 21

DePaula Chevrolet-Ford ���������������������������������� 52

Open Road Acura of East Brunswick �������������� 60

Dominion Sure Seal, Ltd ��������������������������������� 12

Open Road Chevrolet �������������������������������������� 22

Eagle Abrasives ��������������������������������������������� 15

Ourisman Chevrolet ���������������������������������������� 62

Eastchester Chrysler-Jeep-Dodge ������������������ 32

Packer Norris Parts ���������������������������������������� 45

Empire Auto Parts ������������������������������������������ 42

Porsche Wholesale Parts Dealers ������������������� 59

Equalizer Auto Glass Tools ����������������������������� 10

PPG ���������������������������������������������������������������� 11

Ford Wholesale Parts Dealers ������������������������ 57

Rafferty Subaru ���������������������������������������������� 66

Franklin Sussex Auto Mall ������������������������������ 38

Rockland Nissan �������������������������������������������� 69

GM Wholesale Parts Dealers ������������������������� 53

SATA Dan-Am Company ���������������������������������� 2

Grieco Toyota ������������������������������������������������� 30

SCA Claim Services ��������������������������������������� 13

GUNIWHEEL ��������������������������������������������������� 16

Schultz Ford ��������������������������������������������������� 49

Registration Open for WIAC Conference ��������� 34

Hoffman Auto Group �������������������������������������� 43

Spanesi Americas �������������������������������������������� 5

Some Auto Parts Cheaper at Walmart, Fixed

Honda-Acura Wholesale Parts Dealers � 35, 36-37

Steck Manufacturing Company ���������������������� 26

Ops Director Shocked to Find ���������������������� 64

Hyundai Wholesale Parts Dealers ������������������ 69

Subaru Wholesale Parts Dealers �������������������� 65

State Farm, Ford Introduce UBI ����������������������� 70

Industrial Finishes and Systems ��������������������� 31

Sunmight USA ���������������������������������������������� 8-9

Tesla’s Most Important Product in Development

Infiniti of Norwood ����������������������������������������� 46

Toyota Wholesale Parts Dealers ��������������������� 68

Jaguar Land Rover Cherry Hill ������������������������ 56

USI of North America ������������������������������������� 72

JTCAN Industries ������������������������������������������� 19

Valspar Refinish ����������������������������������������������� 7

is Optimus Humanoid Robot ������������������������ 62 Toyota Research Institute Programs Car

Must Ensure ADAS Calibration Procedures

to Autonomously Drift Around On-Track

KECO Body Repair Products ��������������������������� 17

Volkswagen Wholesale Parts Dealers ������������ 63

Are Followed ����������������������������������������������� 52

Obstacles ������������������������������������������������������ 4

Kelly Jeep-Chrysler ���������������������������������������� 24

White Plains Volkswagen ������������������������������� 66

Kia Motors Wholesale Parts Dealers �������������� 55

Wrenchers ����������������������������������������������������� 25

Kia of Attleboro ���������������������������������������������� 42

Yonkers Kia ����������������������������������������������������� 64

Yoswick - Collision Repairers Discuss How They Are Coping with Parts Supply Chain Issues ��������������������������������������������������������� 60

U.S. Crude Oil Production Fell by 8% in 2020, Largest Decrease on Record ����������������������� 71

Kia of Coatesville �������������������������������������������� 58

autobodynews.com / MARCH 2022 AUTOBODY NEWS 3

Emporia Energy, BREK Electronics to Develop First Home Bi-Directional EV Charger Emporia Energy and BREK Electronics announced a new partnership to develop a bi-directional electric vehicle charger that will not only transfer power from the grid and home to the vehicle, but also from the vehicle back to the home and grid.

This product will be the first of its kind available in North America and is predicted to hit the market in 2023 at less than $1,500.

The collaboration brings together the specialties of both companies, with BREK developing the power electronics core and hardware and Emporia developing the connector strategy and smart home integration system. BREK and Emporia share an overarching mission of providing accessible and affordable products.

Emporia, led by founder and CEO Shawn McLaughlin, already offers a line of energy management technology products that can be combined to create the Emporia Smart Home Energy Management System.

These products include level 2 EV chargers, customizable whole-home batteries with capacity from 8.2kWh to 49.2 kWh, smart plugs and real-time energy monitors that allow

users to assess and control their total home energy usage in real-time via the Emporia app.

The partnership’s bi-directional EV Charger will be the newest addition to this system and give customers new options for power management. Consumers will now be able to power their home through their EV,

applications, including solar string inverters that can provide significantly higher power at lower cost with longer life, in a more compact design than existing commercial string inverters. BREK’s and Emporia’s collaboration will develop and adapt this hardware specifically for bi-directional EV charging.

“Emporia has mastered energy management technology and smart home integration with their system of products and is the perfect match for the power electronics development we do here at BREK. Our hardware expertise combined with Emporia’s experience in energy management will drive the creation of a truly groundbreaking product in the EV charging space.”

— Dr. Kala Majeti insulating them from costly utility bills and protecting them from power outages.

BREK is reimagining silicon-carbide based power electronics technologies. BREK’s silicon-carbide based platform has a variety of

As explained by McLaughlin, “80 to 85% of electric vehicle charging currently takes place at the vehicle owner’s home, so the EV should really be seen as an extension of the home energy system. This is critical to why we want to make a

bi-directional EV charger readily available—being able to transfer energy from the vehicle back into the home or grid will enable widespread adoption of distributed renewable energy without taxing the grid, while generating substantial savings for the homeowner, but there isn’t a cost effective option on the market yet. Our collaboration with BREK will create that option.”

“This is an ideal partnership for us,” said Dr. Kala Majeti, president and co-founder of BREK Electronics.

“Emporia has mastered energy management technology and smart home integration with their system of products and is the perfect match for the power electronics development we do here at BREK. Our hardware expertise combined with Emporia’s experience in energy management will drive the creation of a truly groundbreaking product in the EV charging space.”

For more information about Emporia, visit www.emporiaenergy.com.

To learn more about BREK Electronics, visit www.brekelectronics.com.

Source: Emporia Energy, BREK Electronics

Toyota Research Institute Programs Car to Autonomously Drift Around On-Track Obstacles On Feb. 2, Toyota Research Institute (TRI) demonstrated a new research milestone in autonomy, providing a glimpse into the future of safer mobility for all.

TRI researchers successfully programmed a vehicle to autonomously drift around obstacles on a closed track—a world first.

Combining a deep knowledge of both vehicle dynamics and control design, TRI’s Nonlinear Model Predictive Control (NMPC) approach extends the vehicle’s operational domain to the very limits of its performance. The idea behind this research is to use controlled, autonomous drifting to avoid accidents by navigating sudden obstacles or hazardous road conditions like black ice.

“At TRI, our goal is to use advanced technologies that augment and amplify humans, not replace them,” said Avinash Balachandran, senior manager of TRI’s Human Centric Driving Research. “Through this project, we are expanding the region in which a car is controllable, with the goal of giving regular drivers the instinctual reflexes of a professional race car driver to be able to handle the most challenging emergencies and keep people safer on the road.”

Every year, car crashes result in nearly 40,000 fatalities in the U.S and about 1.35 million fatalities worldwide. While most crashes occur in mundane situations, in some extreme situations, drivers may need to make maneuvers that take their vehicle close to and, at times, beyond normal limits of handling.

One year ago, TRI and the Dynamic Design Lab at Stanford University set out to design a new level of active safety to help avoid crashes and prevent injuries and fatalities.

With the support of automotive performance specialist GReddy and drift legend Ken Gushi, this achievement is another step in that journey.

4 MARCH 2022 AUTOBODY NEWS / autobodynews.com

By building skills comparable to an expert driver, this technology can amplify and augment a regular driver’s ability to respond to dangerous and extreme situations, helping keep people safe on the road.

This achievement brings TRI researchers closer to understanding the full spectrum of vehicle performance. The software advances announced Feb. 2 calculate a whole new trajectory every 20th of a sec-

“When faced with wet or slippery roads, professional drivers may choose to ‘drift’ the car through a turn, but most of us are not professional drivers,” said Jonathan Goh, TRI research scientist. “That’s why TRI is programming vehicles that can identify obstacles and autonomously drift around obstacles on a closed track.” — Jonathan Goh “When faced with wet or slippery roads, professional drivers may choose to ‘drift’ the car through a turn, but most of us are not professional drivers,” said Jonathan Goh, TRI research scientist. “That’s why TRI is programming vehicles that can identify obstacles and autonomously drift around obstacles on a closed track.”

ond to balance the car gracefully as it goes around the track.

Looking ahead, Toyota will continue to push the limits of vehicle safety technology by researching ever more effective ways for emerging safety technologies to amplify human capabilities on the road.

Source: Toyota Research Institute

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autobodynews.com / MARCH 2022 AUTOBODY 1/17/22 NEWS 5:41 PM5

Cars Damaged by Gaping Potholes; RIDOT Plans to Award Contract Next Winter

by Sandy Seoane, NRI NOW

Commuters on Route 146 traveling through North Smithfield, RI, can see the drivers along the sides of the road—and their numbers are growing.

An increasing number of travelers are finding their vehicles rendered inoperable thanks to gaping potholes on the surface of the busy highway, with damages to rims, tires and more.

The road will soon be the focus of a major $150 million reconstruction project, with a bridge built over Sayles Hill Road to relieve congestion, and eight miles of road repaved.

Rhode Island Department of Transportation spokesman Charles St. Martin told NRI NOW the project is tentatively slated to begin next winter.

But for many commuters, it seems the work won’t begin soon enough.

The road was called, “a disaster”

by Rep. Brian Newberry in 2019, and has deteriorated further since, with particularly poor conditions marking the stretch through North Smithfield.

Following the recent winter storm, Sen. Mellissa Murray compared

driving along the highway to playing a video game where the stakes are sadly real.

“Route 146 going in and out of Woonsocket/N Smithfield is a mine field of large deep potholes,” wrote Murray on Twitter. “Having to dodge them creates a dangerous situation that needs to be fixed ASAP! Driving to/ from work/home should not be like playing Mario Cart with an actual risk of crashing.”

Many drivers who find their cars damaged as they attempt to navigate that minefield pull in to North Smithfield Auto Body Collision Center, situated on the northbound side of the highway, according to owner Tom Whalen.

“This has been the worst year so far,” Whalen said. “There’s nothing left to the highway.”

Recently, Whalen said a large pothole just before the shop caused 10 drivers to take refuge in his business’s parking lot. Two more were pulled over just up the hill from the collision shop, and seven more were parked in the lot of a neighboring business, Ptyco Construction. More, he said, were at a nearby insurance business, or on

the side of the road.

The business doesn’t sell tires, but it does offer towing, and Whalen said he’s been picking up damaged vehicles from Route 146 daily.

“We get the aftermath,” he said.

State officials, he noted, are aware of the constant parking lot traffic at the business from drivers in distress. “The Rhode Island State Police already called us and asked if we want a reimbursement because it’s such a nuisance,” Whalen said.

And Whalen’s account is the result of just one of the dozens of craters marking both sides of the road in North Smithfield. The roadway improves dramatically as drivers reach the exit for Route 295 headed south toward Providence, or cross the state border on the northbound side into Massachusetts.

According to Diana Gugliotta, a spokesperson for AAA Northeast, the company’s calls for service due to flat tires always increase in winter months—and could be on track to get worse.

“March is especially bad once the ‘thaw’ opens up cracks and deepens potholes,” Gugliotta said.

As of early February, Gugliotta said 18% of AAA Northeast’s road service calls in Rhode Island involved flat tires, up from 14.4% in December.

St. Martin said RIDOT has received about a dozen claims so far this year over damages from the stretch of roadway. He noted design work for the planned rehabilitation is well under way, with more than $2 million spent to date.

A quarterly report shared with NRI NOW show an anticipated completion date of August 2026.

“We will be awarding the contract for the Route 146 project this winter,” St. Martin said. “It is a design-build project, an approach that will expediate the project with design and initial construction activities starting at the same time. We will be working with the contractor to pave sections of the highway along the corridor as quickly as possible.”

More details on the construction and design plans are expected to be released soon, and St. Martin pointed to short-term fixes to improve conditions on the road, noting that RIDOT has been out patching potholes on Route 146 every day recently.

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Ulster BOCES Program Receives Donation

AASP/NJ to Host Webinar, ‘Overcoming Insurer Objections to Payment for Requested Procedures’

The Ulster BOCES auto collision technology program in New Paltz, NY, recently received a generous donation of collision repair materials thanks to The Sherwin-Williams Company.

The students and their instructor were excited to see the items such as primer, tack cloth, masking tape, painter pails, striping tape and more that arrived at the Career & Technical Center.

Auto collision student Vinny, a senior from the Wallkill Central School District, is grateful for the contribution.

“Because of helpful donations from companies like Sherwin-Williams, we are able to produce higher quality, more detailed and professional-like results in our work,” he said. “Although we are already supplied with some pretty great tools and products, these Sherwin-Williams materials will let us take our skills and work experience to the next level of professionalism.”

Source: Ulster BOCES

Next up in the Alliance of Automotive Service Providers of New Jersey’s (AASP/NJ) training schedule for 2022 is “Overcoming Insurer Objections to Payment for Requested Procedures,” presented 6-8 p.m. Feb. 16 by Tim Ronak, senior services consultant for AkzoNobel Performance Coatings, via Zoom.

Rapidly evolving construction of modern-day vehicles, embedded with critical safety and ADAS technology, requires repairers to perform necessary operations in order to ensure consumer safety and proper vehicle function. This can add confusion and friction in the billing process.

In an environment of cost containment, these procedures are getting significant push back from third parties that reimburse consumers for their loss. Ronak will explore how shops can overcome these insurer objections.

“The cost of technology is increasing while the time to get a return on an investment is decreasing,” said Ronak. “Some

10 MARCH 2022 AUTOBODY NEWS / autobodynews.com

technology is now only good for as little as one to three years, while in the past, one could get a 20-year investment out of tech-

al categories of insurer objections and explain dispute resolution so repairers know what their customers’ options are.

“The cost of technology is increasing while the time to get a return on an investment is decreasing,” — Tim Ronak nology and tools. Now, shops are spending an exorbitant sum on tools they can use on cars for a short term, and there is no reimbursement for that other than raising our Labor Rate.

“How do we do that? How do we determine an appropriate amount to charge? When we ask to be reimbursed for specific procedures, insurance people have no idea what we are talking about.

They think we are trying to charge for frivolous things.”

Ronak will review what typical insurers are to do in order to settle a loss, address insurer objections when requesting rates and procedures, outline the gener-

AASP/NJ Collision Chairman Dennis Cataldo Jr. encourages fellow repairers to attend this valuable seminar.

“Investing time into improving your business brings you great value,” Cataldo said. “Even if you just walk away with just one piece of information you can use to your advantage, it’s worthwhile.”

This virtual meeting is free to AASP/NJ members in good standing; non-members pay $75 per person.

For more information about AASP/NJ and to learn how to join the association, visit aaspnj.org.

Source: AASP/NJ

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 11

WMABA Reschedules Meeting for March 24 The Washington Metropolitan Auto Body Association (WMABA) has rescheduled its Annual Member Meeting and Dinner for March 24.

The meeting was originally scheduled for Jan. 27.

WMABA said it made the move because the world is fluid right now in terms of live events and meetings.

The meeting will now be held at 6:30 p.m. March 24 at P.J. Skidoo’s, 9908 Fairfax Blvd., Fairfax VA 22030.

The meeting is free for members; non-member tickets are $55.

Come to hear a State of the Industry and connect with fellow members.

Reach out to the WMABA office with any questions about the event or existing registrations for the original date.

Register now at www. eventbrite.com/e/wmaba-january-2022-annual-member-dinner-tickets-229026744157 Source: WMABA

AASP/NJ to Award a Total of $5,000 to NORTHEAST Attendees Excitement has already been building for the return of the NORTHEAST® Automotive Services Show this March, and now there’s even more reason automotive professionals cannot afford to miss this year’s show.

The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) announced it will award a total of $5,000 in NORTHEAST DOLLARS—$500 each to 10 lucky attendees—to be applied toward any purchase at the show, set for March 18-20 at the Meadowlands Exposition Center (MEC) in Secaucus, NJ. All attendees who pre-register for NORTHEAST 2022 will automatically be entered into drawings held throughout the weekend of the show; NORTHEAST educational attendees will receive two entries.

NORTHEAST DOLLARS will be awarded on Friday, Saturday and Sunday. Winners must be present.

“We first came up with the NORTHEAST DOLLARS concept a few decades ago although we haven’t used it in quite some time,” said NORTHEAST Show Manager and AASP/NJ Secretary Thomas Greco. “This year, as our industry continues our path back to normalcy, we thought it would be helpful to offer NORTHEAST attendees the chance at some additional spending money while they’re on the show floor.”

NORTHEAST DOLLARS allow 10 randomly selected winners throughout the three-day event to spend $500 toward any purchase at the show.

“There will be four winners on Friday, four on Saturday and two on Sunday,” Greco said. “Each winner will receive a NORTHEAST DOLLAR bill worth $500.

Then they can take that to any vendor on the show floor and use it on tools, equipment, anything and everything at the show. After

the show, AASP/NJ will reimburse vendors who received NORTHEAST DOLLARS from the buyer.

It has always been a popular concept for our attendees.”

Make sure to check out the incredible NORTHEAST Educational Slate. From blueprinting to labor rates, the NORTHEAST Educational Slate offers everything shops need to survive and thrive in an ever changing automotive repair industry. Spots are filling up fast.

Register now at aaspnjnortheast. com/education.

NORTHEAST 2022 marks the 45th year of AASP/NJ’s flagship event, known throughout the industry as the largest regional event of its kind. As in years past, this event promises to once again deliver the latest and greatest offerings of equipment as more than 150 vendors are expected to return to the MEC. To pre-register for free and to keep up with the latest information and announcements about NORTHEAST 2022, visit aaspnjnortheast.com.

Source: AASP-NJ

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Body Shop Professionals Seizing New Career Opportunities with SCA Claim Services SCA Claim Services has firmly staked its claim as a leader in the claim servicing industry. For more than 40 years, the company has expanded its nationwide capabilities, providing a broad menu of services to insurance companies, most notably adjusting and appraisal services in the auto, specialty, and property verticals.

Now a well-known and highly respected name among insurance professionals everywhere, SCA has become a prime destination for people possessed with the entrepreneurial spirit and seeking new opportunities to apply their skills and expertise.

That includes many auto body professionals.

Taking Ownership of Your Future Erik Clayton was once a body shop estimator. In 2009 however he made the career decision to become a contract auto damage appraiser for SCA. After just a few months, recognizing an even greater opportunity, he became an SCA franchise owner in Dallas County. Just six months later, he added North Dallas County too.

“I saw the opportunity to make more money,” says Clayton.

Another major draw was being his own boss. “You work for yourself and make your own schedule. You get out of the building and the monotony of it all. Every day in the field is different.”

What makes the Franchise Ownership Program at SCA special is the company’s commitment to its franchisees’ success. “At SCA we say, ‘As a franchise owner, you are in business for yourself, but not by yourself,’” says Chief Operating Officer Jon Gironda.

“SCA gives you all the tools you need to be successful,” agrees Clayton. “And they are always adding new clients.”

SCA offers franchise owners not just initial training but ongoing partnership and support. That includes file reviews by its fully licensed, centralized Quality Control team, dedicated Customer Care teams, and technology to help provide industry-leading

accuracy and cycle time.

For more details on becoming a SCA franchise owner, visit SCAClaims.com/franchise-opportunities/

Being Your Own Boss Franchise ownership isn’t for everyone with the itch to pursue a career change. Many auto body professionals have instead decided to put down their tools and pick up a phone or tablet to become a contract auto appraiser.

Skills acquired in the shop easily translate into insurance auto damage appraisal, and when it comes to the necessary education and certification, SCA offers guidance and support. In select markets, SCA will even pay a signing bonus to contract auto damage appraisers.

Contract auto damage appraisers can set their own hours and decide how much they want to work, and therefore how much they can earn.

The workforce in the auto claims industry is aging out of the business, creating a need to infuse it with fresh blood. Auto body professionals eager to be their own boss and chart their own course are recognizing this and the opportunity SCA provides.

Ambitious appraisers can pursue additional training in specialty or housing claims to truly stretch their earning potential or, like Clayton, purchase their own SCA franchise.

Additional details about becoming an auto appraiser for SCA can be found at SCAClaims.com/appraiser-opportunities/

autobodynews.com / MARCH 2022 AUTOBODY NEWS 13

CIECA Announces 2022 Board Officers During the Collision Industry Electronic Commerce (CIECA) Board of Trustees meeting in Phoenix, AZ, on Jan. 19, the organization’s Board of Trustees elected the following officers for 2022.

Chairman Phil Martinez, Mitchell International, an Enlyte Company; Vice Chair Greg Best, California Casualty Management Company; Treasurer Ashley Denison, Caliber Collision; Secretary Brady Bonner, Safelite Solutions; and Past Chair Jeff Schroder, Car-Part.com.

The officers will serve on CIECA’s executive committee, which oversees business matters throughout the year and plans the agenda for CIECA board meetings.

CIECA also named a new Board of Trustees member, Dave Braun, owner of Nexsyis Collision.

Source: CIECA

MA Gov.: $9.5B in Infrastructure Law Funds Will Transform Transportation

by Brent Addleman, The Center Square

Gov. Charlie Baker unveiled plans for the state’s portion of the federal infrastructure passed by Congress this year, funds that will be used to repair roadways, highways, bridges and public transportation lines.

The governor, speaking from the University of Massachusetts’ Lowell campus, outlined how the state plans to spend $9.5 billion over the next five years, addressing the Rourke Bridge replacement as part of the state’s $3 billion Next Generation bridge program. The bridge will be replaced at a cost of $170 million, after it was initially constructed in 1983 as a temporary bridge.

The Next Generation bridge program will repair and replace 146 bridges on 181 structures over the next five years.

“The Bipartisan Infrastructure Law will deliver billions in funding to the Commonwealth, helping to build on the investments our administration has made over the past seven years to improve our

roads and bridges, and make our public transportation system more reliable and resilient,” Baker said.

Massachusetts will receive $9.5 billion over the next five years, with $5.4 billion in highway funds, $2.2 billion in Massachusetts Bay Transportation Authority funds, $591 million in Regional Transit Authority funds, and $1.4 million in formula and discretional funds that can be used for environmental projects.

The discretionary transportation funds, he said, can be used for major projects such as the Cape Cod Bridges, which are federally owned, and the Allston I-90 Multimodal project.

With the reauthorization of funds under the law, and the combined matching funds from the state, Massachusetts will continue work on 375 highway projects and will advance another 71 projects, including extending the Ashuwillticook Train in Adams and North Adams, reconstruct Route 9 in Pittsfield, and rehab Route 5 in West Springfield.

With the $591 million in Re-

gional Transit Authorities are to receive, $41.7 million will be used for facility and system modernization, $80.9 million will be used for facility and vehicle maintenance, and another $50.5 million will be used for fleet upgrades.

The MBTA will receive $2.2 billion that will be used to replacing 10 rail fleet vehicles and 90 battery electric buses at a cost of $852 million, and $412 million will be used for stations and facilities, including the Quincy Bus Facility and Codman Yard Expansion projects.

Rail funding in the amount of $66 billion will be used to address the Amtrak maintenance backlog, in addition to modernizing the Northeast Corridor, and expand intercity rail service. The freight rail system will also be upgraded.

The infrastructure bill will also provide $1.4 billion to be used to improve environmental infrastructure, including $11 million for energy grid reliability, $2.5 million for energy efficiency block grants, and $367.6 million for environmental remediation projects.

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Mercury Insurance Launches MercuryGO for New Jersey Drivers Mercury Insurance on Feb. 3 announced it has made its usage-based insurance app, MercuryGO, available to drivers in New Jersey to help improve driving skills and traffic safety.

The app acts as a virtual driving coach, providing skill scores that give real-time feedback about driving behavior.

Mercury auto insurance policyholders who enroll to use the app immediately receive a 5% participation discount and teen drivers will receive up to a 10% discount.

Then, when MercuryGO customers renew their policies, they could receive a discount of up to 40% in addition to their participation discount, depending upon their driving score.

“The benefits of MercuryGO is twofold: The app will help drivers be safer, which contributes to the ultimate goal of reducing fatalities and serious injuries. It will also help drivers save a lot of money on their premiums,” said Mercury Insurance Director of Product Management Mike Dawdy. “All of this practicality will be at your

fingertips in our easy-to-use app.”

The New Jersey State Police reports there were 590 motor vehicle traffic fatalities in 2020, which averages to one person per day on New Jersey roadways. Speeding, phone use, hard braking and following too closely are common causes of crashes.

The MercuryGO app generates a driving skill score, which is calculated based on categories closely correlated with car crashes: excessive speeding, hard braking, distracted driving (i.e., phone motion and screen interaction) and road type.

Cambridge Mobile Telematics (CMT), Mercury’s technology partner, is the world’s largest smartphone telematics provider,

16 MARCH 2022 AUTOBODY NEWS / autobodynews.com

winning multiple awards. CMT is the pioneer of usage-based insurance with smartphones (in 2012), the measurement of phone distraction (2013), behavior-based insurance (2014) and real-time crash alerts with roadside assistance (2015).

“Mercury Insurance is utilizing the DriveWell platform to help drivers reduce distracted driving, speeding and hard braking by keeping them engaged and providing timely feedback,” said Ryan McMahon, CMT’s vice president of insurance and government affairs. “MercuryGO will help make New Jersey roads safer and has the potential to reduce the number of car collisions, injuries and fatalities.”

CMT’s research shows 37% of all car trips in the U.S. in 2019 involved significant driver phone distraction; between 7 a.m. and 7 p.m., that figure rises to 41% of all U.S. car trips. MercuryGO will help solve that problem by using technology that has reduced distracted driving by 29%, speeding by 45% and hard braking by 17%.

MercuryGO provides useful in-app tips to help users become safer drivers. Added benefits include: A sharing option for families, which allows all participating drivers to see who is the safest.

The ability for parents to receive real-time feedback about their teen’s driving behavior, including when, where and how fast they’re traveling.

Licensed teen drivers, 18 years and younger, who are registered for MercuryGO will instantly receive a 10% participation discount on auto insurance.

The opportunity to earn up to an additional 40% discount at renewal.

“Most car crashes can be avoided, and MercuryGO is a helpful tool that will keep Garden State drivers safe,” said Dawdy.

Currently, MercuryGO is only available to New Jersey drivers.

Visit www.mercuryinsurance.com/ GO or contact a local Mercury Insurance agent to enroll.

Source: Mercury Insurance

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 17

Husband and Wife Plead Guilty to Conspiracy in Relation to Fraudulent Tax Filings of Maryland Auto Body Repair Shop Ercin Kalender, 60, and Lizette Kalender, 44, of Alexandria, VA, pleaded guilty Feb. 3 to conspiracy in relation to tax fraud within their corporate filings and business taxes.

As part of their plea agreements, the Kalenders have been ordered to pay $2.2 million in restitution.

The guilty plea was announced

by U.S. Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office.

According to their guilty pleas, Ercin Kalender owned and operated Butch’s, a very successful Capital Heights, MD, auto body shop. Lizette Kalender worked at the auto body shop as a manager and bookkeeper. In that capacity, she handled tax reporting matters and regularly worked with an outside tax preparation and accounting agency, which prepared the taxes for Butch’s and the personal tax returns for the Kal-

enders.

For the fiscal tax years of 2015, 2016, 2017 and 2018, Butch’s reported its income and expenses to the federal government by filing Forms 1120 with the IRS. During this period, the Kalenders conspired together to include materially false information on those forms, including a significantly lower report of gross and taxable incomes.

The Kalenders jointly worked to divert revenue from Butch’s and avoid significant revenues being deposited into Butch’s corporate bank accounts and reported to the IRS. As part of the conspiracy, the Kalenders kept two sets of financial records for Butch’s, one that reported the actual revenues and profits of the business and a second set that reported lower figures, which were used for tax purposes.

The Kalenders’ conspiracy to submit false tax returns also involved cashing checks, received at Butch’s at a Prince George’s County check

cashing facility. The checks cashed there were not reported on Butch’s tax returns and resulted in the underreporting of Butch’s annual income for fiscal years 2015, 2016, 2017 and 2018 by more than $6.6 million. The corresponding tax loss to the IRS for the four years was $2,219,602.

As stated in their plea agreements, in August 2018, the Kalendars sought to sell Butch’s. As part of the investigation, an undercover federal agent posed as a potential buyer and had contact with the Kalenders.

During their conversations, Ercin and Lizette explained the profitability of Butch’s and revealed their practices of the underreporting of revenues and income from Butch’s. During one conversation, while Lizette was present, Ercin informed the uncover agent he had a regular practice of taking checks intended to pay for auto body repair work and cashing them at the check cashing facility. Some of the checks were made payable to Butch’s while

other checks were written to Butch’s customers, or jointly payable to Butch’s and the customers.

Further, Ercin explained while Butch’s filed tax returns showed $2.2 million in gross receipts, the actual gross receipts were closer to $3.1 million, $4.2 million and $3.9 million for the fiscal years for 2015, 2016 and 2017, respectively. He also said his father had done this for years before he had taken over Butch’s operations and his father used the same business to cash checks for 30-35 years.

Ercin continued to explain the conspiracy by informing the undercover agent he regularly cashed $50,000 to $60,000 at a time in offthe-books checks at the check cashing facility but estimated he had reduced the amounts in recent years to approximately $30,000 to $35,000 cashed per visit.

Ercin also informed the agent Lizette also reported sizeable W-2 income, which helped them evade scrutiny by the IRS.

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While working with the outside tax preparation and accounting agency, Lizette deliberately hid the money flowing through the check cashing facility. Lizette sent bank statements for the corporate accounts, check stubs, credit card statements, payroll records and other business records but withheld the revenue received through the checks cashed at the check cashing facility, thus underreporting taxable income to the tax preparation and accounting agency.

During conversations with the undercover agent, Lizette showed records to the undercover agent displaying total sales of $4.3 million and $3.9 million for the fiscal years 2017 and 2018. Lizette also talked about pulling out invoices for additional customers from business records so business records would match their bank records.

As detailed in their plea agreements, the Kalenders knowingly caused a portion of the employees’ wages to be paid in cash and falsely reported the wages of Butch’s employees on Forms 941 filed with IRS. In a conversation with the undercov-

er agent, Ercin said he paid all his employees’ extra compensation in cash to avoid tax obligations, except for one secretary who was not paid under the table.

This system of paying employees in cash deprived the State of Maryland of tax revenue and subverted the taxation systems of the IRS and Maryland.

In 2019, after the Kalenders became aware of the IRS’s investigation, Butch’s reported gross receipts of more than $4.5 million, an increase of more than $2.2 million over 2018.

Ercin Kalender and Lizette Kalender face a maximum sentence of five years in prison followed by three years of supervised release for conspiracy.

U.S. District Judge Paula Xinis has scheduled Ercin and Lizette’s sentencing hearings for May 26.

Barron commended the IRSCI for their work in the investigation. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.

Source: U.S. Attorney’s Office District of Maryland

VIVE Collision Acquires Crown Collision Centers in Rhode Island Crown Collision, an auto body repair company with three locations in Rhode Island, was sold to VIVE Collision, a leading collision repair multi-site operator and a portfolio company of New York-based Garnett Station Partners.

In business since 1977, Crown Collision has built a reputation for quality repair services, convenience and quick turnarounds. It is a trusted direct repair partner for many national insurers.

PKF Investment Banking (PKFIB), the investment banking affiliate of PKF O’Connor Davies, LLP, announced the sale of Crown Collision Centers, its client.

The sale continues PKFIB’s proven track record of high-touch service that manages complexity while delivering optimal outcomes for businesses and owners.

“The PKFIB team achieved excellent value for Crown by running a disciplined process and reaching many qualified buyers,” said Ed Breault, president and owner of Crown Collision. “They

provided us with the expertise and proper preparation we needed to attract the right buyer and get the deal closed in a timely fashion.”

“Crown’s leading reputation in the auto body repair space was the backbone of this deal,” said Robert Murphy, senior managing director at PKF Investment Banking. “We’re proud of the role we played in guiding them through a complex transaction, and we look forward to seeing their next chapter unfold as part of the VIVE team.”

VIVE Collision is a multi-site collision repair operator providing collision repair services to customers across New York, Maine, Rhode Island and Massacchusetts.

VIVE Collision was formed with a vision to carve a new path forward for the industry built on three fundamental values its founders believe the collision repair industry has neglected for too long; they call them the 3 Ps: people, process and passion.

Source: PFK Investment Banking

autobodynews.com / MARCH 2022 AUTOBODY NEWS 19

Labor Rate, Tech Shortage, ADAS Panels Highlight Updated Educational Slate at NORTHEAST 2022 The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is excited to share its updated slate of educational programming for its flagship event, the NORTHEAST® Automotive Services Show, which will return live March 18-20 to the Meadowlands Exposition Center (MEC) in Secaucus, NJ. AASP/NJ is proud to announce the inclusion of several exclusive panel discussions, beginning with “The Continuing Tech Shortage: How Do We Fix It?”, which will be moderated by Michael Bonsanto of Passaic County Technical Institute and I-CAR and will include a number of subject matter experts: Brandon Eckenrode of the Collision Repair Education Foundation, Keith Egan of Betag North America, Josh Laurent of Automotive Business Management, Bart Mazurek of CCC Intelligent Solutions and Greg Settle of Techforce.

A panel discussion on “Mastering the Appraisal Clause” provides NORTHEAST attendees with insights into this complex topic, shared by AASP/NJ Executive Director Charles Bryant, Robert McDorman of Auto Claim

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Specialists, Barrett Smith of Auto Damage Experts, Inc. and John Walczuk of ZB Negotiations. This conversation, as well as the following two panels, will be moderated by industry veteran journalist Joel Gausten.

“Labor Rate 2022 and Beyond: How to Get What You’re Worth” will feature panelists AASP/NJ President Jerry McNee, Lucky Papageorg of AASP/MA, Burl Richards of ABAT, Smith, and Sam and Richard Valenzuela of National AutoBody Research. Anyone curious about “The Future of ADAS” won’t want to miss the opportunity to listen to Nick Barbera of ADAS Diagnostics/Union Collision, George Lesniak of Autel, Eric Newell of AirPro Diagnostics and Frank Terlep of Auto Techcelerators, LLC, dive into the nuances of this complex, ever-changing topic.

Timothy Morgan of Spanesi Americas, Inc. joins forces with BASF’s John Shoemaker to present “Beyond Blueprinting to Guiding the Repair Process.” Later on, Morgan will partner with Chuck Olsen of AirPro Diagnostics to educate attendees on how they can “Get it Straight to Calibrate.”

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Gerry Bonanni of Ford Motor Company will discuss “Accessing Ford Repair Information, Collision Sectioning Procedures for Aluminum,” while Lee Rush of Sherwin-Williams Automotive Finishes will offer advice on “Managing the Customer’s Experience.”

New Jersey shops also have the opportunity to qualify for their auto body license renewal certificate by attending “OEM Certification Success: Dos and Don’ts,” taught by Dave Gruskos of Reliable Automotive Equipment. “None of us know it all, but NORTHEAST gives attendees a great chance to learn something new that they can immediately implement to improve their businesses,” McNee said. “All classes are designed to educate attendees and give back to the industry. If you attend one class that helps your shop generate additional income or improve your business practices, it’s a win-win! We’re excited to see everyone at NORTHEAST in March!”

To register and to keep up with the latest information and announcements related to NORTHEAST 2022, visit aaspnjnortheast.com.

Source: AASP/NJ

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CIF Announces 2022 Annual Donors The Collision Industry Foundation (CIF) announced several companies committed to participate in the CIF Annual Donor Program.

AirPro Diagnostics signed up for a second year, at the Urgent Care tier with a $5,000 pledge; CCC Intelligent Solutions committed to its second time in a row, as a First Responder with a $10,000 pledge; Enterprise Holdings committed to participate a second year at the Urgent Care tier with a $5,000 pledge; and LKQ Corporation committed to pledge $10,000, achieving the highest support tier, First Responder. The Annual Donor Program was designed to bring needed, recurring resources to CIF, so it can deliver on its mission to Answer the Call when those in the industry have been impacted by unforeseen catastrophic events.

To become a CIF annual donor, visit www.collisionindustryfoundation.org and or reach out via email to collisionindustryfoundation@gmail.com. All donations are tax-deductible.

Source: CIF

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Vermont to Allocate $15M Toward EV Charging Infrastructure in 2023

by Dave Fidlin, The Center Square

Set against the backdrop of a $15 million appropriation in Vermont Gov. Phil Scott’s fiscal year 2023 budget, state lawmakers are in the process of examining logistics for an ambitious rollout of electric vehicle charging infrastructure.

Big picture, Vermont officials have expressed a desire to have a robust EV charging network across the state, with stations in urban, midsize communities and rural areas. But a number of the finer points are still being fleshed out.

Patrick Murphy, sustainability and innovations project manager with the Vermont Agency of Transportation, went before the Senate Committee on Transportation on Feb. 2. During the discussion, he said the AOT remains in the information-gathering phase.

“Right now, we just don’t have that data,” Murphy said of determining how many EV charging stations ultimately will be installed.

“The federal guidance on the deployment of these funds is just to facilitate as much data as possible

of people wanting to get to the charging station, what role do you think we should have in mandating that there’s a certain through-point, meaning the cars can queue up in a line, similar to a gas station?”

Murphy, in response, said such a scenario would require further expansion of the number of EV charging stations.

“As we develop our own state plan for how we’re going to deploy these funds, we’ll take into account potential demand for these places,” he said.

While there still are EVgo charging stations are set up around the country. a number of big picEVgo is the largest public electric vehicle fast charging ture questions, the state network. Credit: Sundry Photography/Shutterstock.com is moving forward with As electric vehicles increase in plans of installing EV charging stapopularity, senators sitting on the tions in 17 different areas. But the panel questioned how the stations plan comes with a caveat—depenwould be able to adequately meet dency on the still-volatile supply demand. chain.

“I’m worried about charge “We do anticipate them to all ranges,” said state Sen. Thomas be installed and operational by the Chittenden, D-Montpelier. “When end of the year,” said Gary Hollowe start getting a large number way, downtown program manager

to guide future investments.”

EV charging stations will include equipment for one or more models: 480-volt fast charging, 240-volt for level two charging, and 120-volt for level one charging.

in the Department of Housing and Community Development. “But there is some dependency on things coming into place.”

Holloway added, “We are hearing about delays with transformers of 20 to 30 weeks for some parts.”

While much of the committee-level discussion focused on public charging stations, the state is also offering resources for a $1 million grant program for owners of multi-unit housing developments interested in installing EV charging stations.

Bronwyn Cooke, community planning and policy manager with the Department of Housing and Community Development, said current statistics suggest 80% of EV charging occurs at home.

The state has opened its application window for the grants, Cooke said, and an April 1 deadline has been set. Plans call for awarding the grants April 22.

“This is the first time we’re doing a project like this,” Cooke said.

“It is a pilot. We’re expecting to learn a lot. We’re expecting to get a lot of really good questions.”

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Kia Renews Teen Driving School Sponsorship Kia America and B.R.A.K.E.S. (Be Responsible and Keep Everyone Safe) on Feb. 10 announced a renewal of their partnership and continued commitment to reducing injuries and saving lives by providing teens and their parents with the tools they need to be responsible behind the wheel.

Founded in 2008, B.R.A.K.E.S. combines classroom instruction with hands-on-defensive driver training courses in Kia vehicles for both teen drivers and their parents.

Along with their teens, parents are asked to participate to further reinforce the lessons teens learn during the classes and as a way to identify and correct any bad habits that may have developed through the years since they themselves began driving.

In 2022, B.R.A.K.E.S. will conduct a total of 225 classes for teens and their parents nationwide.

To register for a class or to view the full upcoming schedule, visit www.putonthebrakes.org.

Source: Kia America

Tesla Exceeds Job and Investment Commitments for Gigafactory New York

by Simon Alvarez, Teslarati

New York State officials said Tesla has far exceeded its job and investment commitments for Gigafactory New York. The facility was created with the goal of bringing in more than 2,000 jobs to New York State, including 1,460 jobs in Western New York.

Per the state, Tesla reported it had a total of 2,265 workers across New York State at the end of 2021, 1,636 of which were employed in Buffalo.

Pamm Lent, a spokesperson for Empire State Development, said Tesla was able to expand its operations in New York by diversifying the jobs it offered to the local workforce.

“Tesla is reporting it has far exceeded its job and investment commitments at the Buffalo Gigafactory,” said Pam Lent, ESD spokeswoman. “Tesla has been working to expand and diversify the facility’s operations, while also growing its manufacturing portfolio, which resulted in them meeting their 2021 obligations regarding statewide employment and cumulative investment. “At the close of the 2021 reporting period, Tesla’s New York State headcount reportedly stood at 2,265—

including the Gigafactory headcount in Buffalo of 1,636.

“Competitive wages and generous benefits have attracted these employees to the Gigafactory which include health insurance, 401K and discounted rates for company stock among other employee benefits,” Lent said. “Tesla is also reporting an accrued cumulative investment and spending in New York State of $1,034,920,157 as of Dec. 31, 2021—an amount more than $560M over the current bond.

Tesla’s official submission of its job and financial commitment report will undergo verification, as required by the State’s due diligence process.

“While navigating the challenges of the pandemic, Tesla managed to grow its operation by diversifying to include work on charging systems and Tesla’s autonomous and self-driving vehicle initiatives—demonstrating its commitment to building the Gigafactory into a world-class advanced manufacturing center while expanding its business throughout New York State,” Lent concluded.

The current mix of jobs at Gigafactory New York is different from what was previously envisioned. Ini-

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tially, the plan was for the facility to focus on Tesla’s solar products, like the Solar Roof and conventional solar panels. Tesla’s Solar Roof ramp has so far proven to be challenging, and the company reportedly no longer plans to make conventional solar panels in the facility.

These setbacks, however, paved the way for Tesla to shift its strategy in Giga New York. The company decided to make electronic components for its Superchargers at the site, including air- or liquid-cooled cables that connect a charging stall to an all-electric vehicle. Production of the Powerstage, an inverter used in the Megapack, is also being done at Gigafactory New York. More importantly, Tesla was able to hire hundreds of new employees in New York as part of its Autopilot program. The majority of these positions are for data annotation work, which requires only a high school diploma. Tesla’s data annotation team in New York continues to grow, especially amidst the expansion of the FSD Beta program, which could pave the way for Tesla to achieve full autonomous driving in the near future.

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New Jersey Maaco Owner Recognized for Outstanding Performance

PA Senate Committee Votes ‘Yes’ on Bill to Allow Autonomous Vehicle Testing on Highways

Farhana Naz graduated from Fordham University with a business degree and worked in media research for Nielsen.

When her brother-in-law opened his Maaco repair facility in Windsor, NJ, she began helping him part-time with managing the office. That eventually led to working full-time, estimating and helping with production.

In 2019, with the support and encouragement from her family, she became the owner of Maaco Lawnside, NJ. In just two short years, Naz has earned one of the spots as a regional Maaco Cup award winner in 2020 and again in 2021, a testament to her dedication and extraordinary effort.

Each year, Maaco recognizes outstanding performance and operational excellence among their network of owners with a regional Maaco Cup award.

“When I first opened, the great training and support that the Maaco team provided put me on the path to success,” said Naz. “Af-

The Pennsylvania Senate Transportation Committee voted Jan. 26 to move Senate Bill 965 out of committee for consideration by the full Senate.

This legislation would allow companies to test self-driving vehicles on Pennsylvania highways without a driver available to take over in an emergency.

During the hearing on this legislation, proponents of the bill spoke to the opportunity that highly autonomous vehicles present for job creation and mobility for underserved communities, such as the elderly or the disabled. However, committee members also raised concerns about opposition from labor groups, such as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), about how this legislation will impact union jobs.

The Automotive Service Association released a press statement earlier in January supporting this bill with vehicle safety inspection provisions.

ASA continues to ask Penn-

ter that it was a lot of hard work, but I love a challenge! I established relationships with local dealerships and when they gave us a chance to prove our expert abilities. My team delivered with high-quality repairs and great customer service and we continue to provide that to all of our customers.”

Delighting customers is the primary focus of Naz and her team, whether a fleet customer or a car owner who needs collision repair or a complete paint job.

“I ensure that no one leaves our facility until they are 100% satisfied with the work we have done,” said Naz. “Every customer has my personal guarantee that they will love the results.”

Maaco is always looking for people who strive for excellence and want to put their management skills to work as independent business owners. Visit www.maacofranchise.com or contact the team at Franchise@maaco.com to learn more about franchisee opportunities.

Source: Maaco

sylvania shops to contact their state representatives to urge them to consider extending existing vehicle safety inspection laws to the deployment of autonomous vehicles.

New vehicle technologies should be regularly inspected by qualified repair professionals to ensure that vehicle systems are working properly to keep drivers and other road users safe.

In Pennsylvania, vehicles are required to get an annual vehicle safety inspection. Autonomous technology is intended to reduce user error and improve safety while driving. However, these autonomous safety systems must be regularly inspected to ensure that they continue to function as intended after the vehicle is in use.

Pennsylvania SB 965 will now be considered by the entire Pennsylvania Senate. During the Jan. 26 hearing, committee members committed to participating with industry stakeholders to continue the conversation on this legislation and ensure all concerns are addressed.

Source: ASA

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Continued from Cover

New Jersey Enacts for coverage or payment of benefits,” 2) unreasonably delayed “coverage or payment of benefits,” or 3) violated the New Jersey Unfair Claims Settlement Practices Act (UCSPA), N.J.S.A. § 17:29B-4, which governs “unfair methods of competition and unfair and deceptive acts or practices in the business of insurance.”

Importantly, “deceptive acts or practices in the business of insurance” under the UCSPA include “unfair claim settlement practices.” It sets forth 15 examples of such practices, ranging from the misrepresentation of the available policy limit, to failing to promptly investigate a claim, to not making a good faith effort to settle a claim when liability becomes reasonably clear, to compelling insureds to institute litigation to recover benefits.

Previously, the commissioner of the New Jersey Department of

Banking and Insurance had sole enforcement power under the UCSPA, exercised only based upon a finding the violations occurred “with such frequency as to indicate a general business practice.”

The IFCA not only provides a private right of action under the UCSPA to claimants, but also expressly provides that “the claimant shall not be required to prove that the insurer’s actions were of such a frequency as to indicate a general business practice.”

Claimants who can prove an IFCA violation are entitled to recover actual damages, including trial verdicts, up to three times the applicable coverage, as well as pre-and post-judgment interest, litigation costs and attorney’s fees.

New Jersey joins other states that have created statutory bad faith regimes for policyholders to pursue claims against insurers. Pennsylvania, for example, is known for having a particularly strict bad faith statute, allowing policyholders in certain cases to recover multimillion-dollar punitive damages awards.

In some respects, the IFCA is not as sweeping as Pennsylvania’s bad faith statute. The IFCA is limited to UM and UIM coverage under automobile insurance policies, whereas Pennsylvania’s bad faith statute applies to a much broader range of insurance policies and coverages. Further, New Jersey’s bad faith statute caps damages at three times the available policy limit, whereas punitive damages under the Pennsylvania statute are only limited by constitutional constraints and case law.

However, the IFCA is broader than Pennsylvania’s bad faith statute in at least three respects.

First, a violation of the IFCA only requires proof of “unreasonable” behavior, whereas an insurer is only liable under Pennsylvania’s bad faith law when it knew or recklessly disregarded its lack of a reasonable basis for denying benefits.

Second, the IFCA contains a much broader definition of “insurers” subject to potential suit than Pennsylvania law. The IFCA defines “insurer” to include “any individual, corporation, association, part-

nership or other legal entity which issues, executes, renews or delivers an insurance policy in the state, or which is responsible for determining claims made under the policy.”

That means statutory bad faith liability could potentially attach to individual claims adjusters, although it is unclear as a matter of law how an individual employee of an insurance company could be considered an “insurer.” Pennsylvania’s bad faith statute does not provide a cause of action against employees.

Third, the IFCA allows a violation of New Jersey’s UCSPA to constitute bad faith, whereas Pennsylvania courts have concluded a violation of Pennsylvania’s nearly identical statute may be some evidence of bad faith but is not a per se violation of the bad faith statute.

Perhaps the most notable aspect of the IFCA is how many questions it leaves unanswered, which will likely lead to significant amounts of litigation.

Most important, while the IFCA seeks to punish “unreasonable” conduct by insurers, it does not specify what type of conduct will be consid-

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ered unreasonable and whether the standard applied will be purely objective or also incorporate a subjective component. As to specific conduct alleged to be unreasonable, the statute raises more questions than it answers, including: How much time amounts to an “unreasonable delay”? What is an “unreasonable denial of a claim for benefits,” particularly if the facts or law are unsettled? When is a difference of opinion between an insurer and claimant as to the value of a UM/UIM claim unreasonable?

The New Jersey legislature could have addressed the issues that took decades of litigation to resolve in its sister state of Pennsylvania, but chose not to. Now, insurers and claimants must face a host of fundamental questions, such as: Will IFCA claims be tried by a judge or jury?

What is a claimant’s burden of proof? Clear and convincing evidence? Some other standard?

What is the statute of limitations for an IFCA claim? When does it begin to run?

Would it be unconstitutional to apply the IFCA retroactively?

Despite being little more than a blurry roadmap, the IFCA provides insureds with a new avenue of recourse against their carriers and exposes auto insurance companies and their employees in New Jersey to high-stakes litigation.

Given the many uncertainties about what the law means and how it will be interpreted, insurers may want to consider reviewing their good faith claims handling practices for objective reasonableness and consistency with the New Jersey UCSPA. Insurers should also consider educating their UM/UIM adjusters on the new law and ensure there is a process in place for addressing situations in which employees are sued individually.

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GM Investing production. Lockport Components currently produces radiators, condensers, heater cores, evaporators, HVAC modules, oil coolers and other components used in a variety of GM trucks.

GM currently estimates Lockport Components will add approximately 230 positions between 2023 and 2026. Actual staffing plans will be finalized closer to the start of production as the facility transitions to support EV motor component production.

“GM’s investment in Lockport Components reaffirms our commitment to manufacturing in Western New York and our confidence in this team. They will build a crucial module in our electric motor assem-

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bly for our future electric trucks and SUVs,” said Gerald Johnson, GM executive vice president of Global Manufacturing and Sustainability. “This is an excellent example of how we are bringing our workforce along on the journey to an all-electric future while we scale our EV production capacity and maintain a flow of parts for our current vehicles.”

Lockport Components was founded in 1910 as the Harrison Radiator Company for the purpose of designing, manufacturing and selling automotive radiators and components.

With more than 1,500 employees, the site is focused on continuous improvement through a joint team process between UAW Local 686, Local 55 and plant management.

Source: GM

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Ford, Volvo Partner with Redwood Materials in Pathways Program for End-of-Life EV Batteries

by Joey Klender, Teslarati

Ford and Volvo have partnered with Redwood Materials for pathways for end-of-life electric vehicle batteries.

Founded by Tesla co-founder JB Straubel, Redwood Materials has now expanded its partnership with electric vehicle manufacturers to see that EV batteries are responsibly disposed of or recycled when they have reached the end of their life cycle.

Redwood currently holds several partnerships, including one with Tesla and another with AESC, the manufacturer of Nissan LEAF battery packs.

The program will start in Redwood’s home state of California, the company said in a blog. The program is the most comprehensive EV recycling process globally, which aims to establish safe, efficient and effective recovery pathways for end-of-life electric and hybrid-electric vehicles.

Ford and Volvo are the first two automakers to join the program.

“To truly make electric vehicles sustainable and affordable, we need to create pathways for end-of-life battery packs to be collected, recycled and remanufactured into new battery

materials,” Redwood said. “Scaling production of EVs, increasingly from recycled materials, domestically, is the only way we can create a circular and, therefore, sustainable and secure

“We are excited to be strengthening our partnership with Redwood Materials in identifying solutions for electric vehicle batteries that have reached the end of their useful lives,” — Jim Farley supply chain to meet the U.S.’s electrification plans. While the first major wave of end-of-life electric vehicles is still a few years away, Redwood and our initial partners at Ford and Volvo are committed to creating these pathways now.”

Ford and Redwood established a partnership to recycle EV batteries last year.

“We are excited to be strengthening our partnership with Redwood Materials in identifying solutions for electric vehicle batteries that have reached the end of their useful lives,” Ford CEO Jim Farley said regarding the new layer of the partnership.

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more sustainable and affordable for our customers. I want to thank JB and the Redwood team for bringing their world-class technology and knowhow to our joint effort.”

Volvo’s XC40 Recharge EV is the beginning of the company’s trek to be climate neutral by 2040 and fully-electric by 2030. CEO of Volvo Car USA Anders Gustafsson said the company’s lofty goals for sustainability have the company excited about the partnership with Redwood.

“At Volvo cars, sustainability is as important as safety. We aim to be climate neutral by 2040, and fully electric by 2030, and embracing a

circular economy,” Gustafsson said.

“This is why we are excited about Redwood Materials’ forward-thinking solutions for end-of-life battery packs to be collected, recycled and remanufactured. California is the right place to start such a program.”

Redwood said its pathways program will require it to work directly with dealers and dismantlers in California to identify and recover endof-life packs. The packs will then be transferred to its facility in Northern Nevada to be recycled back into domestic cell production.

“Our goal is to learn and share those learnings with the industry,” Redwood said. “We will demonstrate the value of end-of-life packs today and how we can steadily improve those economics as volumes scale up.

Ultimately, our aim is to create the most effective and sustainable closedloop system that physics, and chemistry will allow for end-of-life battery packs to re-enter the domestic supply chain. We look forward to working with the State of California, dismantlers, dealers and other automakers and hope to be a resource, sharing our results and learnings as we go.”

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Continued from Cover

Acquisitions in 2021 and opening new shops. Responding to the constant demands of its insurance “partners” for performance across multiple markets, Caliber now operates in more than 40 states and in 80 of the top 100 Metropolitan Statistical Areas in the U.S. Gerber/Boyd Group really stepped up to the plate with two significant transactions: the acquisition of Oklahoma-based Collision Works and South Carolina-based John Harris Body Shop for a total of 51 shops out of the 97 additional shops they acquired or developed in the U.S. during the year.

Gerber also acquired a large, four-shop MSO in Wisconsin and a plethora of single shops and smaller MSOs, ending the year with an estimated 684 shops in the U.S. Service King continued to shrink its footprint but only modestly, ending the year with seven fewer shops for a total of 336. While much has been written and speculated about Service King’s financial situ-

ation, they celebrated the new year by opening a brownfield in Illinois.

2022 should bring more clarity to their situation.

The new kids on the block grew into robust adults. The next two largest consolidators accelerated their acquisitions at an incredible pace. Chicago-based Crash Champions grew by more than 300% during the year to a total of 175 shops after beginning the year at 53.

Crash’s appetite included the 24-shop Signature Collision MSO based out of Annapolis, MD, but covering multiple markets in the east and southeast. They acquired MSOs from the Pacific Northwest to Florida and many places in between from Montana to Nebraska, New Mexico and Ohio, acquiring dozens of single shops and MSOs. Equaling Crash’s dramatic expansion was Classic Collision, which grew to 174 shops from a base of 54 at the year’s inception.

Classic entered Texas with a blockbuster transaction, acquiring 45 shops that previously operated under the Procare and Austin Motor MileEllis & Salazar brands. Procare

was owned by private equity firm Kinderhook, which had been invested in the company for approximately five years.

The rest of the Classic story included some large MSOs, such as Central Collision with 13 shops in Oregon, Platinum Collision Center’s eight shops in Southern California, and Fender Mender’s eight shops in South Carolina. Classic also entered Alaska in dominant fashion by acquiring two MSOs, Able Body Shop and Fix Auto Alaska, for a total of nine shops in the state.

With more than 300% growth in 12 months and backed by $15 billion private equity firm, New Mountain Capital, Classic is also on its way to becoming a billion-dollar company.

Joe Hudson’s three years into its ownership under new sponsor, TSG Consumer, grew by 23 shops, which seems modest compared to Crash and Classic but still increased store count by 20%.

Up and comers went on an acquisition spree as well. Seemingly from out of nowhere, private equity-backed Collision Right, formed

in 2020, added 39 shops to its base of 19. So far, Collision Right’s model has retained the local branding of its acquisitions rather than rebranding as most of its competitors do.

Another up and comer has a similar branding strategy: Quality Collision Centers added 10 locations during the year including B&S Hacienda Auto Body, a large sixshop MSO in Northern California.

Kaizen Collision, a new private equity-backed MSO based in Southern California, more than doubled its size to a total of 19 shops in California, Arizona and Colorado.

Franchisors and Affiliate Groups continued their expansion.

Premier franchisor Driven Brands grew both its franchise footprint with CARSTAR, Fix Auto, Maaco and ABRA as well as its corporate portfolio. By acquiring another 10 shops in the Pacific Northwest, Driven now operates a total of 18 corporate CARSTAR and Fix Auto locations.

Even after the sale of a number of CARSTAR MSOs and single shops, the total number of franchisees continues to expand. Final

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5/4/21 4:37 P

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numbers for 2021 are not yet available.

Affiliate networks Certified Collision Group and 1Collision continued to expand, with CCG claiming more than 707 affiliates by year end and 1Collision claiming 50 locations in the U.S. Fix Network World acquired ProColor, a 172-unit franchise in Canada. It began signing its first franchises in the U.S. in February and by year-end claimed a total of nine locations.

Source: Focus Advisors

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Registration Open for WIAC Conference Women in Auto Care, a community of the Auto Care Association, announced the opening of registration and the keynote speaker for its upcoming Women in Auto Care Leadership Conference, taking place March 23-25 in Indianapolis, IN, at the Marriott Indianapolis Downtown. The 2022 conference theme is “Reconnect and Revitalize” and will feature a range of sessions and activities focused on personal and professional development, including roundtable discussions and leadership stories. The conference will feature keynote speaker Sherron Washington, founder and CEO, P3 Solution, a full-service marketing and communications firm located in the Washington, D.C., area that specializes in providing easy marketing strategy, messaging, design and social media solutions for businesses.

For more information and to register, visit www.autocare.org or contact womeninautocare@autocare.org.

Source: Auto Care Association

Continued from Cover

EV Chargers keep up with the rapidly increasing number of EVs in the U.S. Projections say by 2030, the country will have 30 million EVs on its roads, which, according to the source, would require the construction of 478 charger stalls per day for eight years in order to meet the need. The Biden administration is aiming for 500,000 stations by decade’s end.

The study also notes which states are best when it comes to the ratio of charging stalls to EVs. North Dakota, Wyoming and West Virginia are the three states where you are most likely to find an empty charging stall, while the worst are New Jersey, Hawaii and Arizona. In the last three there is a higher chance you may find all local

public chargers are taken and you may have to wait or find a way to charge the EV at home.

According to a report from the U.S. Department of Energy, the ideal ratio of EVs to charging stations is 40 Level 2 charging ports and 3.4 DC fast chargers (DCFC) per 1,000 EVs. A DCFC charger usually has three ports.

Currently, there are 41 Level 2 charging ports and 5.7 DCFC charging ports per 1,000 EVs, respectively, or about 21 EVs for every charging port.

There are 2,514 internal combustion engine (ICE) cars per gas station.

EVs are currently at a disadvantage compared to ICE vehicles when it comes to their average range—259 miles versus 360 miles. And the time it takes to charge an EV is longer than simply filling up a gas tank, so vehicles will be occupying more of the available charging stalls for longer.

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Honda and Acura Genuine Parts is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice $0 enrollment fee

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

HONDA CONNECTICUT

MASSACHUSETTS

NEW JERSEY

NEW YORK

Curtiss-Ryan Honda

Boch Honda

Madison Honda

Lamacchia Honda

800-523-4190 203-929-0635

833-319-6270 781-619-6791

800-648-0293 973-822-1710

315-471-7278

Shelton

Norwood

Dept. Hours: M-F 7-5; Sat 7-4 callen@curtissryan.com

Dept. Hours: M-F 7:30-5 bh-wholesale@boch.com

Lia Honda of Enfield

LIA Honda Northampton

Enfield

800-221-3131 860-741-3401

Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com MAINE

Northampton

800-369-7889 413-587-2900

Dept. Hours: M-F 7:30-5; Sat 8-3 dstanisewski@liacars.com NEW JERSEY

Berlin City Honda

Clinton Honda

800-640-6685 207-774-6685

877-657-2787

South Portland

Dept. Hours: M-F 7:30-5:30 mmmparts@berlincity.com

IRA Honda Saco

Annandale

Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com

Dept. Hours: M-Thu 7-7; Fri 7-6; Sat 7-5; Sun 8-4 jay.madisonhonda@gmail.com

Rossi Honda Vineland

800-893-3030 856-692-4449

Dept. Hours: M-F 7:30-5 (W until 7); Sat 7:30-3 dlyons@rossihonda.com

Route 22 Honda Hillside

973-705-9100

Dept. Hours: M-F 8-5; Sat 8-2 abdulc@clintonhonda.com

Dept. Hours: M-Sat 8-5 rt22hondaparts@route22honda.com

Honda of Turnersville

Sussex Honda

800-883-0002 856-516-6262

800-842-0557 973-579-3500

Turnersville

Saco

207-391-7910 207-282-0900

Madison

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

Hudson Honda West New York

866-483-6917 201-868-9500

MARYLAND

Criswell Honda

Dept. Hours: M-Sat 8-5 mdasilva@hudsonhonda.com

Germantown

240-864-0880

Dept. Hours: M-Fri 7-7:30; Sat 7-6 hondaparts@criswellauto.com

Newton

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

Ide Honda Rochester

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

Syracuse

Dept. Hours: M-F 7:30-5:30 parts@lamacchiahonda.com

Lia Honda of Albany Albany

800-272-6741 518-482-2598

Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 mjerard@liacars.com

Lia Honda of Brewster Brewster

845-278-4177

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

Lia Honda of Williamsville Williamsville/Buffalo

877-659-2672 716-632-3800

Dept. Hours: M & W 7:30-7; Tu & Thur 7:30-6 Fri 7:30-5; Sat 8-5:30 mmiller@liacars.com

Ray Laks Honda Orchard Park

716-824-7852

Dept. Hours: M, Tu, Th 8-8; W, F 8-6; Sat 8-5 jmaybee@raylaks.com

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

ACURA MASSACHUSETTS

NEW JERSEY

NEW JERSEY

NEW JERSEY

Acura of Boston

Acura Turnersville

Elite Acura

Park Ave Acura

800-254-1169 617-254-5400

888-883-2884 856-516-6060

856-722-9600

888-690-7621 201-587-0028

Brighton

Turnersville

Maple Shade

Dept. Hours: M-Sat 7:30-6 bmartinsen@eliteacura.com

Dept. Hours: M-Thur 8-7; F 8-6; Sat 8-4 manny.aliagra@bernardiauto.com

Dept. Hours: M-F 7:30-5; Sat 7:30-4:30 sbaptist@penskeautomotive.com

Acura of Peabody

Autosport Acura

Open Road Acura of East Brunswick

973-361-3117

732-238-0777 732-238-5466

Peabody

Denville

800-878-3600 978-532-9110

East Brunswick

Dept. Hours: M-F 7-6; Sat 8-4 erin@theautosportgroup.com

Dept. Hours: M-F 8-5; Sat 8-4 robert.talbot@openroad.com

Bill Vince’s Bridgewater Acura

Open Road Acura of Wayne

908-704-0307

973-696-5151

Dept. Hours: M-Sat 8-5 dbritt@acurapeabody.com

Bridgewater

Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com 36 MARCH 2022 AUTOBODY NEWS / autobodynews.com

Wayne

Dept. Hours: M-F 7:30-6; Sat 8-4 jonathan.tangen@openroad.com

Maywood

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

Acura of Westchester Westchester

914-834-8887

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

PENNSYLVANIA

VERMONT

Apple Honda

802 Honda

800-960-9041 717-848-2600

802-223-9700

York

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

Berlin

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

Baierl Honda Wexford

818-332-7351

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

Shenango Honda Hermitage

800-858-0849 724-981-7106

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

Sussman Honda Roslyn

800-682-2914 215-657-3301

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

NEW YORK

PENNSYLVANIA

Curry Acura

Baierl Acura

800-725-2877 914-472-7406

800-246-7457 724-935-0800

Scarsdale

Wexford

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

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

Paragon Acura

Davis Acura

718-507-3990

267-296-1000 215-943-7000

Woodside

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

Smithtown Acura

Langhorne

Dept. Hours: M-F 7-7; Sat 8-4 frankp@davisacura.com

St. James

Sussman Acura

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

800-826-4078 215-884-6285

631-366-4114

Jenkintown

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com autobodynews.com / MARCH 2022 AUTOBODY NEWS 37

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Resources to Combat Collision Parts Supply Chain Challenges I can’t speak with auto body shop owners, managers or estimators for long these days without the subject of parts supply challenges being raised.

The fact there’s a lot of parts backorders is just the reality we’re living with, and I can’t offer you any magic wand to change that.

What I can do, however, is point you toward some parts-related resources out there I think many people in the industry may not be using.

Let me start by saying long before any of our current challenges arose, I firmly believe every shop should be using some type of electronic parts ordering solution. When incorporated into good parts processes within your shop, these systems will improve the speed, accuracy and completeness of your parts ordering. Many will help identify

availability of the parts you need.

But I also recognize even with these systems, you may still come up short identifying or locating the parts you need. So here are some

You enter the vehicle information, the part number or numbers, and your ZIP code. Up pops a list of the dealers around the country who have that part in stock, showing you the number they have and when that inventory was last updated.

Another great website is www.partseye.net. When you enter that web address, it takes you to SmartCo, whose “smart inventory program” is called PartsEye. Click on the “Parts Locator” tab at the top of the The “free forms, links and tools” section of the Collision page, and you’ll be able to Advice website includes a list of parts-related websites search the country for parts separated by automaker for Kia, Mazda, Subaru and additional resources you may not be several other lines of vehicles. familiar with in regard to locating Want to find more websites parts. like these? Go to my company’s One great website is www. website (www.collisionadvice.com) partsvoice.com. It’s a free resource. and click on the link to “free forms,

links and tools.” Click on the “links” section, and scroll down to “parts.”

In the OEM section, for example, you’ll find a long list of parts-related websites separated by automaker.

We’ve tried to catalog all the websites we can find that can be used either to search for parts for a specific OEM, or to allow you to view detailed parts diagrams.

One of the first ones on the list, for example, is www.partslink24. com. It requires a paid subscription—on a daily, monthly or yearly basis—but enables you to see the exact same part diagrams the dealers have access to for any model of Audi, Porsche or Volkswagen. That can really help you identify needed parts when you’re writing an estimate.

As an aside, sites like these are why I’m a big proponent of using dual monitors when writing repair

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38 MARCH 2022 AUTOBODY NEWS / autobodynews.com 68665_Yellow_Q_ABN.indd 1

3/29/21 3:19 P

plans. You can have the estimating system on one screen, while looking at parts diagrams on the other.

The list of parts related sites includes www.fordparts.com, www. estore.honda.com, www.mazdausa.com, www.volvopartswebstore. com and many others—just a lot of resources I believe most people are not familiar with.

As I’ve said, these sites may not resolve all of your parts challenges.

But they can be another tool in your toolbox.

Have you found other websites helpful in identifying and locating needed parts? Go to collisionadvice. com/contact and let me know. We’ll check it out to see if we should add it to our list.

And hang in there. It sounds like parts supply chain issues won’t be fully resolved soon. But things should start to get better this year.

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Collision Repairers Place 32 Auto Insurers on Report Card ‘Honor Roll’ Among more than 90 auto insurance companies graded by collision repairers in terms of how well they work to ensure quality repairs and customer service, only 32 received a “B” or higher to be named to the “Honor Roll” in the 2022 CRASH Network Insurer Report Card.

While many of highest-graded insurers—including Erie Insurance (B+”), Acuity Insurance (“B+”) and Southern Farm Bureau (“B+”)—do not sell policies in all 50 states, consumers are likely to find one or more of the “Honor Roll” insurers offering coverage where they live.

“Their perspective is unique given that most drivers go for years—a decade, on average—without interacting with their insurance company’s claims department, but collision repairers do so every day,” — John Yoswick None of the Top 10 largest and perhaps best-known auto insurers, including State Farm, GEICO, Progressive and Allstate, received an overall grade higher than a “C+”.

Auto body shops were asked to evaluate how well each insurer’s “policies, attitude and payment practices ensure quality repairs and customer service for motorists.”

North Carolina Farm Bureau (“A+”) and Chubb (“A-”) finished with the top grades among all insurers, just as they did in 2020 and 2021.

More than 1,100 individual body shops around the country each graded as many as 40 different insurance companies in their state.

“Their perspective is unique given that most drivers go for years—a decade, on average—without interacting with their insurance company’s claims department, but collision repairers do so every day,” said CRASH Network’s John Yoswick. “That gives them a front-row seat as to which companies do the best job taking care of policyholders—and which ones have

some room for improvement. That’s why we see the Insurer Report Card providing helpful information for consumers as they consider which insurer to choose.”

Shops participating in the Insurer Report Card said the highest-graded insurers place an emphasis on “repairing vehicles properly,” “following the auto manufacturers’ guidelines” and “putting the best interests of their customers first.”

They criticized the insurers to which they gave lower grades using such phrases such as “cares more about costs than the quality of the repair,” “pressures us to use cheap, low-quality parts,” “slow claims processes” and “inexperienced adjusters.”

The list of highest-graded insurers in 2022 was remarkably consistent with last year’s findings; among the 15 highest-graded insurers in this year’s Insurance Report Card, 11 were in the Top 15 last year as well.

A free report with the 2022 Insurer Report Card findings can be downloaded at https://www.crashnetwork. com/irc.

Source: CRASH Network

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KELLY JEEP CHRYSLER

353 Broadway – Route 1 North Lynnfield, MA 01940 (800) 278-8558 Fax: (781) 581-2490 kjcparts@kellyauto.com

MCGOVERN CHRYSLER JEEP DODGE RAM

777 Washington Street Newton, MA 02460 (800) 741-7563 NEW JERSEY

FRANKLIN SUSSEX AUTO MALL

84 Bureau Drive Gaithersburg, MD 20878 (301) 212-4453

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3100 Black Horse Pike Turnersville, NJ 08012 (856) 875-2627 NEW YORK

CENTRAL AVENUE CHRYSLER JEEP DODGE WHOLESALE DIVISION

1839 Central Park Avenue Yonkers, NY 10710 (800) 967-5298 Fax: (914) 961-4313

EASTCHESTER CHRYSLER JEEP DODGE 4007 Boston Road Bronx, NY 10466 (914) 597-7018

LIA CHRYSLER JEEP DODGE RAM 2116 Central Avenue Schenectady, NY 12304 (518) 579-3308 Fax: (518) 579-3380

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ROCKLAND CHRYSLER JEEP DODGE 60 Route 304 Nanuet, NY 10954 (845) 623-1367 Fax: (845) 623-0903

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NEW HOLLAND CHRYSLER DODGE JEEP RAM 508 West Main Street New Holland, PA 17557 (800) 367-3232

Check out MoparRepairConnection.com for resources, promotions and technical information. ©2022 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Wagoneer, Mopar and SRT are registered trademarks of FCA US LLC. FIAT is a registered trademark of FCA Group Marketing S.p.A., used under license by FCA US LLC.

autobodynews.com / MARCH 2022 AUTOBODY NEWS 41 1/5/22 3:14 PM

Techs of the Future with Stacey Phillips

Stacey Phillips is an award-winning writer for the automotive industry based in Southern California. She has more than 25 years of experience as an editor and writer and has assisted a wide range of businesses and fields. In addition, Stacey has co-authored two books. She can be reached at stacey@radiantwriting.com.

Matrix Trade Institute’s Efficiency Bootcamps Help Collision Repair Industry Grow and Retain Employees Many say one of the most alarming issues in the collision industry right now and in the foreseeable future is the desperate need for technicians.

The industry is losing techs to retirement, and competition for tradespeople is at an all-time high.

While the need to recruit thousands of techs into the industry isn’t going away anytime soon, the need for a disruptive retention model is even more important, according to Dustin Peugeot, CEO of the Matrix Trade Institute (MTI) located in Beachwood, OH. “We need thousands and thousands of them over the next 10 years, but the current model shows that over two-thirds of people who graduate from a post-secondary school defect from the industry in less than a year,” said Peugeot. “If the industry can’t find better ways to retain and grow technicians, then

worrying about recruiting them is wasted energy.”

Peugeot said retention is where MTI is making a difference by offering four-day, 30-hour, 80% handson Efficiency Bootcamps to employers so they can provide employees with specific skills and efficiencies to accelerate their growth.

“MTI’s Efficiency Bootcamps are a core part of our program and what makes us truly unique from any other school,” said Peugeot.

“This business-to-business offering was designed to help shops upskill and retain employees efficiently and cost effectively.”

Employers provide their technicians with MTI’s self-assessment, which allows workers to feel valued and play a role in their own career development.

“When the technician’s goals and desire for growth meets the

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shop’s need to increase capacity and retain valuable employees, then MTI is the connection point,” he

MTI instructor Jim Schnitz teaches proper mapping in MTI’s Blueprint/Technical Estimating Bootcamp. Participants included Kelly Henry from Classic/DCR Systems, Christopher Lutz from Rutherford Autobody and Mitchell Rife from CollisionRight’s Rife’s Autobody (with pen)

said. “Matrix bootcamps provide an experience that shops can’t offer in addition to a return on investment (ROI) that pays short- and long-term dividends.”

Over the years, Peugeot has found more and more shops are recognizing retention must be prioritized over recruiting to ensure the next generation stays in the industry and with the companies who hire them.

“This industry doesn’t just have a recruiting problem; it has a retention problem,” said Peugeot. “Retention is different today than it used to be… you have to have a better offering with a better path and execution, and it has to be fulfilling and meaningful for employees. There’s too much competition to be able to afford not getting it right.”

With people defecting from the industry for jobs with companies

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like Amazon or Walmart that promise career paths filled with attractive promises and benefits, or competing trades that are paying more and more for services every day, Peugeot said the industry is missing a vital connection point between the skills needed to succeed and the industry’s ability to provide ongoing career development that allows new hires to see the vision and grow as fast as they’d like to.

“Employees need real, tangible career education so they can learn and earn simultaneously and have confidence that it’s going to connect to real development,” he said.

“I think that’s what the traditional model is missing right now and that’s what we offer.”

To help address the growing concern of recruiting, developing and retaining the next generation of technicians, Peugeot established MTI in 2019 with Rick Blum, COO. When the institute first opened, its primary focus was to offer automotive efficiency training for auto technicians and mechanics. Peugeot and Blum soon recognized the vital need for collision technicians and

expanded the program to include a collision repair technical efficiency program.

The training encompasses a 20week, employer-centric, 80% handson repetition-based curriculum with an eight-to-one teacher-student ratio. The goal is to prepare graduates to work in dealerships, collision centers and franchised and/or independent repair facilities. Students attend class in the mornings throughout the week and are encouraged to intern with a repair facility in the afternoons. This allows them to apply the hands-on training they learn at school.

With tradespeople in such high demand, MTI aims to provide jobready automotive and collision technicians who don’t necessarily have industry experience. Peugeot said MTI differs from the traditional model where students attend a couple of years of school and receive a broad certification. Instead, the institute teaches skills that provide students with a good foundation.

This includes hands-on repetitions and relevant skills so they can be productive, confident and efficient.

44 MARCH 2022 AUTOBODY NEWS / autobodynews.com

“We try to make sure that we are preparing them mentally for how they can contribute,” Peugeot noted.

“We are giving them a dose of what life is like in a shop as they grow their skillset.”

Peugeot and Blum both have 25 years of experience in the industry.

While Peugeot’s career has focused on dealer operations and collision centers, Blum is a master technician who successfully transitioned into a service director before embarking on the Matrix journey.

“We are industry people who went about creating a new type of school, not education people who added automotive and collision programs,” said Peugeot. “We think there is a large differentiator there.”

Since the program started, more than 250 students have graduated from MTI. That number is expected to increase substantially since adding the collision focus. Future plans include adding ASE and federal accreditation in 2022 and then expanding to other locations across the country.

Three of the initial supporters of the automotive program, Con-

rad’s Tire Express & Total Car Care, Penske Automotive Cleveland and Serpentini Chevrolet, have become foundation level sponsors of MTI’s auto program.

“These are some of the early adopters who recognized that this is a different model focused on real efficiency and the skills employers are looking for,” said Peugeot.

After adding collision repair training to the program, Peugeot said MTI connected with DCR Systems, located 15 minutes away in Mentor, OH, almost instantly.

“DCR was quick to identify itself as a company that recognizes that their future was all about their ability to train their own,” he said.

The company became MTI’s first corporate sponsor of collision repair.

“Forward-thinking companies like DCR challenge the norm and help keep Matrix at the forefront of what’s new and meaningful in this constantly evolving industry,” said Peugeot. “The alignment of DCR’s lean philosophy and the way Matrix teaches skill-specific hands-on efficiency makes for a natural alignment between the two companies.”

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Michael Giarrizzo, president and CEO of DCR Systems, said MTI is a forward-thinking school that isn’t focused on teaching students to repair vehicles the old and traditional way.

“They are teaching students the baseline skills needed in a repeatable, process-centered environment,” said Giarrizzo. “We’re proud to partner with an organization that is looking for our feedback to grow the technicians of tomorrow.”

Since sponsoring MTI, DCR Systems has offered input on the school’s curriculum, provided information about its repair processes and supplied tooling. Giarrizzo and Dave Martin, director of operations at DCR Systems, regularly visit MTI to talk to students about the industry and invite technicians to tour DCR. In addition, several MTI students have been hired by DCR and attend boot camps to continue career development.

“Schools like Matrix are looking at technology and the industry as it is today and trying to prepare them for the increasing challenges of the industry,” said Cheryl Boswell,

CFO and managing partner at DCR Systems. “The industry has changed so much that it’s important to find those tech schools where they are grooming the students for today’s world.”

Adrian, an operations support technician from DCR Systems, attended an MTI Blueprint/Technical writing boot camp focused on becoming an effective blueprinter.

“I’m learning to be as accurate as I can be, make the process work and slow down to achieve first time quality—a savings for everyone,” he said. “The DCR Systems family cares for me. They want me to improve and build a career and I want to improve for the company.”

Rife’s Autobody, a three-shop MSO in Ohio now owned by CollisionRight, has had success with the MTI Collision Bootcamps for its employees. Don Rife, former owner and current operator of the business, learned about MTI about a year ago and sent Tyler, a metal tech apprentice with no prior industry knowledge, to one of the boot camps.

“The experience seemed to work out really well and we have

other technicians that we are planning to send in the future,” said Rife.

After attending a blueprinting Efficiency Bootcamp at MTI, Tyler said he learned how to be more accurate in his job.

“MTI made the environment so it’s not stressful,” he said. “It’s going to help everyone in the shop; not just me, but our estimators, the parts department and the people I work with, making things quicker, faster and more efficient.”

Rife has initiated internal training programs in the past but found that partnering with others who are experienced at training technicians, such as MTI, results in better success.

“Unless you are some amazing operator and have unlimited resources, you are better to partner with somebody who has already done this and understands what’s necessary than trying to recreate the wheel,” he said.

Since Rife’s initial success with Tyler, CollisionRight has become the second foundation level partner of MTI’s Collison Program, and is in the process of providing employee

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assessments to its young technicians to take advantage of the growth and retention the bootcamps provide to CollisionRight’s growing list of shops.

Peugeot said businesses like DCR Systems and CollisionRight, that invest in their people and provide a great career experience, will be the ones that are ultimately successful.

“There are too many employers who want to hire people the old-fashioned way and pay them a little and not do progressive things to develop them or provide onboarding experiences that are positive and culturally right for this generation,” noted Peugeot.

He said shops that want to pay ransom and steal technicians from other shops aren’t fixing the industry.

“They are hurting the industry… but in a world where they don’t have a better option, it’s all that they can do,” he observed.

Peugeot stressed the importance of recognizing young technicians are an asset and recommends employers See Efficiency Bootcamps, Page 54

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Auto Body Shop Owner Runs His Own Show and Looks to Exit Industry Stage Right

by Ed Attanasio

At Autobody News, we get emails and letters every week from auto body shop owners all over the country. In most cases, they’re either venting about the industry or promoting themselves.

We like being a sounding board and learning from shop owners and managers to learn their concerns and what’s going on in their particular region.

Recently, we received an email and a phone call from Greg Rajczi, owner of Ken’s Auto Body in Galway, NY. He started in the industry as a young man working for his father and later his uncle, Jim Rajczi, at Jim’s Auto Body in Hyde Park, NY. He learned every aspect of the business from his dad and his uncle and eventually took over his father’s shop 13 years ago. He cares a lot about his profession as a body shop owner and that’s why he’s not happy with the current state of the collision repair industry, in New York and na-

tionwide.

He’s been running a successful one-man show since day one and is used to making a profit, he said. But now multiple factors are impeding him. The rising cost of materials, low labor rates and the insurance companies steering customers all are taking their effect.

“A lot of shop owners are dealing with these issues. Most are silently struggling and even consider closing their doors. I don’t foresee a great future for the auto body business unless things change,” Rajczi said.

One important issue on Rajczi’s mind is the fact insurance companies are steering car owners to their preferred shops, something he encounters every week.

“I don’t have a tow truck, and if I had a dollar for every time the tow company steered my customer elsewhere, I’d be rich,” he said. “If the customer can drive their car here to my shop, I can get the job. But, in the winter, for example, when the cars have to be towed, I lose them.

Once they tow the vehicle to their lot, the insurance companies can steer them anywhere and they usually do.

“They’ve become sophisticated and know exactly what to say in order to scare the owner of the car.

They say the repair won’t be under warranty if I fix the car. It’s a lie, but most people don’t know that.”

When he’s able to fight off the steering and get a car in his shop to fix, Rajczi then has to fight to get paid for the work.

“The insurance companies work really hard to suck all of the profit out every job,” Rajczi said. “We’re already struggling with higher costs for everything and then they’re going to sit there and pick away at the estimate? Ten years ago, a gallon of house paint cost $30 and now it’s more like $100. Techs used to make $20 an hour, but how can they survive anywhere in this country at that rate? They need to be I-CAR trained so that they can work on the cars today, but it’s hard to pay them a fair wage with the cost of parts and ma-

terials and the insurers trying to save every penny.”

The labor rates need to reflect today’s prices with inflation and other factors, Rajczi said. With the high cost of parts added to the fact insurers will wrestle without exception on every repair, every body shop has to deal with low labor rates.

“They’re all over the road with these rates, it’s crazy,” Rajczi said.

“State Farm is at $65; GEICO is $48, and Allstate is at $52. They say they poll shops in each area, but why shouldn’t State Farm’s rate be the standard? If you own a shop, you know that the rate should be more like $85 to $100. So before we even touch a car, we’re in a hole caused by our labor rates which are ridiculously low.

“I tell the young kids, don’t get into this industry because you’ll never get paid enough,” he said.

“This is not a good career choice— go to college but do anything other than this. With costs spiraling and DRPs grinding away on each repair to save pennies, body shop owners

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won’t ever be able to pay their techs enough anymore.”

Another annoying pebble in Rajczi’s shoe is the quality of aftermarket crash parts and the way insurers try to incorporate them into his OE repairs.

“The car manufacturers should say no to aftermarket parts because they’re not road safe. They say they’re certified by the Department of Transportation (DOT) but in the end, they’re essentially counterfeit parts,” Rajczi said. “You can file the holes or re-drill them, but you’re not going to get a perfect fit because they’re not the same. Techs will start hating their jobs for putting parts on a car that won’t fit right, and I don’t blame them. Give that same guy OE parts and he’s a happy tech—no stress and no arguing about what type of part to install.”

Racjzi is also done with DRPs, another way the insurance companies can control shops, especially MSOs. His biggest fear is DRPs will eventually lead to the demise of smaller, independent shops.

“DRPs are not a beautiful thing, let’s make that clear,” he

said. “Smaller mom-and-pop shops will often say no to DRPs because they are family businesses and they value their reputations. But for the big chains, it all about volume, and their attitude is ‘get it done’ at any cost. The problem is you have to pay upfront on everything and the insurance company expects their check at the end of every month. So, they end up having to shuffle money around or borrow it to keep the DRPs happy.”

Can this industry turn it around, so we can all make money without sacrificing peoples’ safety and still do repairs correctly? Only time will tell, but it won’t happen until body shops start getting together and communicating openly with other shops, the OEs and the insurance companies.”

If you want to share ideas and concerns with Rajczi, he is anxious to hear from you at kensautobodyshop@gmail.com. www.autobodynews.com

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Cox Automotive January Forecast: Auto Sales Volume Holds Steady, Inventory Levels Remain Tight New-vehicle sales in January are expected to reach 1.01 million units, a drop of 8.9% compared to January 2021, according to a forecast released Jan. 26 by Cox Automotive.

The January pace of U.S. auto sales, or seasonally adjusted annual rate (SAAR), is forecast to show a sizable monthover-month improvement and finish near 15.3 million, up from 12.4 million in December, which was the slowest pace since May 2020.

Improvement in the January sales pace is a positive sign for the market, but it is mostly due to seasonality adjustments. In

fact, there haven’t been any significant market changes to positively impact sales.

New vehicle sales remain stuck in the 1 million to 1.2 million range. January is expected to continue this trend, as the market continues to be held back by tight inventory. New-vehicle inventory is starting 2022 down 61% from last year—that means 1.2 million fewer vehicles available at the start of 2022 compared to the start of 2021.

According to Charlie Chesbrough, senior economist at Cox Automotive: “A large decline in sales to start the year after a robust holiday shopping period is expected, and adjustments are made to sales data to reflect this.

In January, the seasonal factors will reveal that, even though sales volumes are stuck in their current range, the market is moving in the right direction and, importantly, not getting worse.”

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Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).

Contact him by email at jyoswick@SpiritOne.com.

Automakers: Collision Repairers Must Ensure ADAS Calibration Procedures Are Followed

Shop Showcase

The importance of proper ADAS cal- mental?”

Kaboos said the Honda training ibrations was a key focus as the Society of Collision Repair Specialists center in Illinois drove a new Civic at with Ed Attanasio (SCRS) brought collision repairers the NHTSA target used to test emerand automakers together at an event gency auto-braking, and the system in Las Vegas during the SEMA Show. worked 10 times in a row, stopping Scott Kaboos, assistant man- the vehicle three or four feet from the ager of collision repair training and target as designed. technology for American Honda, told those attending with the OEM Collision Ed Attanasio Repair Technology Summit that automakers call for many calibrations to be done on a level floor with good reason.

“We did a little test,” Kaboos said, noting Honda’s service information says there can be no more with Ed Attanasio than 1 degree of pitch or slope to the Scott Kaboos of American Honda said testing floor when performing calibrations. at the automaker’s training center demonstrat“Traveling around to a lot of our dealed the need to perform ADAS calibrations on a erships, we found that most of their level floor when called for in the procedures floors do not meet that requirement.

So we started asking How “So then we took that same car withourselves: Ed Attanasio important is this? Is this really detri- and put the rear wheels in our drain

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SEMA Show Goes On

in our wash bay at our training center,” Kaboos said. “We calculated the slope on that, and found that the car was sitting at a 1.6 degree incline. We re-aimed the radar, using the factory specifications and tools. When we were done, the scan tool said aiming was complete. There were no codes.

We test drove the car around the block.

It gave us no indication there was anything wrong with the car. There were no lights on the dash.”

But then the vehicle was driven at the same NHTSA target.

“We had very different results,” Kaboos said. “It honestly blew through that target at 20 miles an hour like it wasn’t even there. The light on the dash didn’t blink. It didn’t beep at us. It just punted that target. That was a big eye-opener to us on the training side as to how important that one little line in the service information is: do this on a flat floor.”

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Kaboos said the other noted requirements—proper air in the tires, a full tank of gas—are also important.

“Anything that changes the ride height or ride angle of the car is going to throw off all the geometry,” he said.

“You’ve got to pay attention to all of that.”

Subaru of America’s Ted Hicks said during the same SCRS session that complete repair of the underlying metal where an ADAS camera or radar is attached is also critical.

“I asked a panel of technicians in Dallas: what’s the single biggest problem you’re having with calibrations of blind-spot monitoring radar units and the EyeSight cameras that come from body shops after a repair,” said Hicks, a regional technical training manager for the automaker. “They said that the panel that the camera or unit mounts to has got to be exactly correct. If the sheet metal behind it is bent, the radar

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unit or camera will never point in the right direction.”

One problem: that metal is often behind trim or covered by the bumper cover, so some shops may not repair it.

“Nobody cares what the sheet metal looks like, right,” Hicks said.

“It can be wrinkly as all get-out and nobody’s going to care because the bumper cover is going to cover it or the EyeSight camera is going to cover it. I’m here to tell you: It matters.

Please find the reference points in the service information.”

Kaboos said he also has some concerns that shops often aren’t doing needed calibrations.

He estimated between 5% and 10% of Honda’s certified collision centers are doing their own ADAS calibrations in-house, while some use a mobile service or a stand-alone calibration center in their market.

“But still, the majority are subletting to the dealers,” Kaboos said. “I’m not going to make a judgment either way, as long as you’re getting it done properly.”

He said CCC Intelligent Solutions pulled final repair appraisals for Honda vehicles over the course of

a year that “had an event that would have required a calibration of one of these systems.”

Of those, only 20% listed a calibration.

“Eighty percent of the cars that were in accidents that needed to have a calibration did not get one,” Kaboos said. “At least it wasn’t on the estimate. So unless they did it for free, and they didn’t put it on the estimate—highly unlikely, right—it didn’t get done. That scares me.”

Also during the session, Taylor Jozwiak, collision R&D workshop manager for Rivian, talked about how that new company produces collision repair procedures for its vehicles. Jozwiak said his “internal body shop” in California, which includes body and paint technicians and an “estimating specialist,” works closely with the Rivian service engineering team, “which creates our repair procedures in CAD.” “As we all know, CAD is great from an engineering standpoint, but some things get lost in translation when transferred over into reality,” Jozwiak said. “So that’s where my team comes in. We take the repair procedures and validate them on bodies

in white, looking for accuracy, quality of repair and ultimately safety. If we find any discrepancies or things that should change, we provide that feedback to our engineering team, and they make the necessary adjustments to repair procedures. At the end of the day, we want to make sure the people out in the field, the people in your shops, are getting high quality repair information.”

The process also involves tracking repair times.

“We try to replicate what the technicians are using in shops—the tooling, the equipment,” Jozwiak said.

“We use all the same stuff as a traditional body shop would. We collect those times, and that helps us publish times in the estimating systems.”

Your leading source for NORTHEASTERN Collision Repair News! northeastern.autobodynews.com

Continued from Page 46

Efficiency Bootcamps offer competitively paid internships and tuition reimbursement, as well as devote the time and resources to ensure there is a good onboarding experience. This includes providing a career path and letting technicians know management cares about their growth.

“They want to feel like they are connected to the goals of the employer and feel part of something larger,” said Peugeot.

Peugeot’s advice to shops is to take time to understand their next technicians are already in their market.

“They just don’t understand how to get into the collision industry and learn what they need to learn fast enough in an organized fashion to make the leap,” he said. “Shops willing to take that seriously and provide the training they’ll need to have confidence to make the leap find this magical thing that occurs over time—they no longer have a recruiting problem.”

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Certain Metallic Finishes May Interfere with ADAS Radar Systems, PPG Expert Says

by Ed Attanasio

A decade ago, ADAS was an acronym very few people in the collision repair industry were familiar with.

But now every collision repair professional on the planet knows what it means and how it affects them every day.

More and more auto body shops are taking their diagnostics in-house and hiring techs who have the proper training to do the job right. If ADAS does not work correctly or one of the systems is misaligned, people’s lives could be in jeopardy.

Within the last two years, paint manufacturers have discovered certain metallic finishes interact with the electromagnetic radiation used by radar. It may interfere with radar transmission and if it goes above a threshold set by the vehicle, it can potentially present a serious safety issue.

Paint and coatings suppliers such as PPG have evaluated swapping the aluminum pigments in the metallic finish with alternatives to

significantly enhance radar transmission. These reformulated colors will maintain a good match to the car’s original finish while reducing the radar transmission loss, so safety systems can function as designed.

PPG’s Global Products and Segments Director Nick Tullett has been working with carmakers to develop refinishing products that won’t

Even a low-speed fender bender can damage these advanced systems, reducing driver safety—a concern for every stakeholder involved.

“ADAS technology is actually located in areas of the car that are easily and frequently damaged,” Tullett said. “Carmakers have been installing ADAS such as forward collision, automatic emergency braking, lane departure warnings and adaptive cruise control in peripheral, easy-to-damage vehicle parts like windshields and bumpers.

These parts often house radar, a system that uses radio waves to detect people, autos and other objects close to it, to enable many of these safety features.

“ADAS is presenting new challenges for collision centers and for the repair industry in general,” Tullett said. “There are so many stakeholders involved, from the vehicle makers to the collision repair shops to the paint companies. Our main concern at PPG is how do we repaint and repair certain metallic colors without impeding their per-

PPG’s Global Products and Segments Director Nick Tullett has been working with carmakers to develop refinishing products that won’t interfere with ADAS

interfere with ADAS. One of his top deliverables is to help the OEs to fully understand the impact of certain metallic finishes on ADAS.

formance? We believe there’s not yet enough leadership and direction out there to navigate through this, so our goal is to help all of the different stakeholders to make the right choices when it comes to ADAS. “We have some numbers that indicate that about 50% of all new cars were equipped with at least one radar system and by 2025 we’re expecting it to be more like 85%. So, being able to effectively repair these cars is really important for our collision center customers.”

One of the main challenges associated with ADAS is the fact many of these safety systems can be hard to detect visually.

“Collision repair shops now rely on customer discussions, visual indicators and automaker data to pinpoint ADAS,” he said. “Training to spot these various systems more precisely may be necessary for techs to determine the repair process more carefully. For example, body shops could simply repair minor bumper damage by filling scratches and then spot painting before the advent of

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ADAS. However, body filler compounds and new paint can impair today’s vehicle sensors.

“In addition to considering the ADAS automobile’s technical safety and functionality components, techs will need education on how certain colors and particular finishes can impact the sensors of these safety components.”

Acquiring the right devices to perform repairs and calibrations is key, but training is also a big piece of the picture.

“Techs will also need training on recalibrating sensors using specific equipment and software for diagnostics, services, replacements and repairs to meet automaker specifications,” Tullett said. “However, it may be some time before most shops are equipped to offer in-house calibrations because most independent collision centers don’t have the proper calibration equipment inhouse. Right now, many body shops use outside diagnostic companies or take the vehicles to their local dealerships, but soon that may become impractical with ADAS in literally every new car built.”

Shops will also have to consider investing in more sophisticated estimation tools, along with technician training, in order to assess the costs of damage to driver safety technology installed in areas such as bumpers. Using historical data, predictive analytics and VIN integration, the estimation software can build a more accurate estimate for collision repair professionals.

“Until recently, automakers opted to replace instead of repair the damaged bumper, which proved expensive and with significant pushback from car insurance companies,” Tullett said. “As such, automakers have turned to paint and coatings suppliers to identify a better solution.

“PPG has partnered with many OEs to calculate the impact of all their colors,” he said. “These include metallic finishes on repainted bumpers to better understand the transmission loss of radar signals.

Data shows that while the vast majority of colors do not impact the functionality of ADAS, a handful of metallic finishes do pose an issue.

At certain concentrations, the aluminum pigments used in metallic

paints reduced the transmission of radar signals and interfered with the operation of the ADAS. “It’s a concern for paint companies because one fourth of all new cars produced every year are painted with metallic colors,” Tullett said.

“It’s a very popular color space, and we don’t think that car makers are going to abandon that color space.

They’re looking for us to come up with solutions so that they can maintain that color space.

“We’ve identified a number of existing materials that we can use, so that they won’t impede with radar performance, and still give us a good color match,” he said. “In the paint business, color accuracy is everything. Everybody wants their car back looking like it was never in an accident, right? The most visual thing they see is the color. So, we’ve identified alternative materials, and some of them are already present in our paint systems. We’ve identified that small number of colors which are affected and developed alternatives.”

Collision repairers will need to consider the repair guidelines and technical and service bulletins pro-

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vided by automakers to keep safety intact. PPG plans to issue a technical bulletin relating to radar and the impact of certain metallic finishes for collision repair professionals.

In addition, the company recently launched the PPG KNOWLEDGE COLLEGE™ online learning management system that provides the refinish industry with the most comprehensive online training programs available.

Over the last couple of years, PPG has done a lot of joint work with carmakers, looking at their color palettes and measuring the radar transmission of the colors in their color ranges.

“We have identified any potential problem colors where the interference in the radar with the radar signal is enough to actually impair the correct functioning of the radar,” Tullett said. “It’s worth pointing out that the very vast majority of colors in your own cars today are absolutely fine. They don’t interfere with the radar transmission, and they won’t affect the safe working of the ADAS. “Now one of the ways that carmakers have dealt with this up until

now is to make a blanket recommendation that says, when you have a car that’s equipped with radar if the bumper is damaged, you may not repair that, you must simply replace it,” he said. “And by doing that what they’re saying is when you replace it, it’s going to have one layer of paint applied to it. And they’re OK with that. What they’re concerned about is if you have a repair using body filler, multiple layers of paint might interact with a radar to an extent where the performance of the radar is degraded.”

PPG is currently researching and developing a wide range of novel materials to devise solutions that won’t compromise radar in some vehicles.

“We want to retain our capability to stay within that coveted silver metallic color space that is much more transparent to radar than aluminum or other existing pigments,” Tullett said.

As ADAS evolves, companies such as PPG will be working hard to develop products that will complement rather than impede ADAS, especially radar.

National EV Charging Initiative Holds Summit to Discuss Future of Charging Stations The National EV Charging Initiative, launched in August to guide the deployment of a national charging ecosystem, held the National EV Charging Summit in January.

The summit featured a variety of stakeholders, including automakers, power providers, electric vehicle and charging industry leaders, and labor and public interest groups.

During the summit, panelists discussed the future of electric vehicle charging, the Bipartisan Infrastructure Law and the deployment of electric vehicles.

The Bipartisan Infrastructure Law, passed in 2021, provides the largest investment to date in electric vehicle infrastructure. This legislation allocates $7.5 billion in funding for the construction of a national network of 500,000 new electric vehicle charging stations. The money is split into $5 billion in funding for states and $2.5 billion in grants for communities and corridors to establish electric vehicle charging stations, especially in underserved and rural communities.

One of the speakers at the sum-

mit was Jigar Shah, director of the Loan Programs Office at the U.S. Department of Energy. During his panel, Shah said public money, rather than being the sole source of money for EV charging stations, should become a “catalyst” that proves the business model to support robust private and utility investment.

Other summit participants spoke to this point as well, emphasizing the opportunity electric vehicle charging stations present as a profitable industry for private investment.

“It’s important that independent automotive repair shops be included in the conversation about EV infrastructure,” said Fred Hules Jr., chairman of the Automotive Service Association (ASA). “In addition to accessibility of EV charging stations, shops must have access to training, data and the tools necessary for the repair of these vehicles. ASA is focused on our members being prepared as the U.S. vehicle fleet transitions to EVs and other technologies.”

In addition to the $7.5 billion in funding, the Bipartisan Infrastructure

Law also authorized the creation of a joint office of the Department of Energy and Department of Transportation focused on electric vehicle infrastructure and deployment.

During the summit, Deputy Transportation Secretary Polly Trottenberg said the administration is moving quickly to send money to states and local communities for EV charging, and she predicted money would be available “in the coming months.”

Electric vehicles and EV charging stations are a new frontier for the transportation industry. All the panelists at the National EV Charging Summit emphasized the importance of the deployment of electric vehicles and their optimism about the future of clean transportation.

National Urban League Executive Vice President Don Cravins emphasized this sentiment, saying: “If we do this right and we all start on the same page, we can make an impact. We cannot afford to mess this up, both environmentally, healthwise and economically.”

Source: ASA

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 59

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).

Contact him by email at jyoswick@SpiritOne.com.

Collision Repairers Discuss How They Are Coping with Parts Supply Chain Issues

Shop Showcase

A Collison Industry Conference and March of last year.

(CIC) committee presentation earliHe said if some relief from the er this year confirmed parts supply microchip shortage enables autowith Ed Attanasio chain issues continue to plague col- makers to ramp up production this lision repairers. year, that should reduce used vehiA poll of repairers in the room cle values, putting more of those veat CIC in Phoenix found about one- hicles into the recycled parts supply third said parts-related issues lead chain. them to delay scheduling about 40% “It is probably the latter half of of jobs. Another one in four said this year when we start to see some with Ed Attanasio parts issues lead to delayed schedul- relief on both OEM and the recycled ing 60% of the time, and almost an parts side,” Horn said. equal number said it was 80% of the Still-elevated transportation costs, time. however, have non-OEM parts manGreg Horn of PartsTrader said ufacturers in Taiwan rethinking what his company’s data indicates the me- they ship. dian number of days for parts deliv“Should I put in one bumper with Ed Attanasio eries was fairly stable over 2021. cover that would take up the space of “What’s changed is the number 10 headlight units, or do I ship those of outliers, the number of delays for 10 headlights at a bigger margin,” individual components, which has Horn said. “So in the short term, I increased pretty radically,” Horn think we’re going to see [shortages said, reaching 14.7 days Decem- or] price increases on larger afterwith EdinAttanasio ber, up from 7.4 days in February market components.”

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The committee asked repairers at the meeting what they are doing to address parts issues. A majority (70%) said one response has been to return more vehicles to customers with cosmetic parts still on order.

Nearly two in five said that’s happening with 30% or more of the cars they repair.

But Matt Radman of Coach Works Auto Body in Mesa, AZ, noted that solution is not without its own challenges.

“We had a [Hyundai] Sonata that we couldn’t get the side garnish that goes from the bottom of the door and across the wheel well,” Radman said. “Right behind that is an exposed hole and unless you seal it somehow, moisture is getting behind there. So you have to address this on a case-by-case basis.”

Something as simple as a missing window moulding could allow

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moisture to get into the door, he said, noting that returning unfinished vehicles requires thinking through these issues and making sure everyone involved, including the customer and insurer, is on the same page.

Ben Clymer Jr. of Ben Clymer’s The Body Shop in Southern California said he’s experienced parts supply chain issues firsthand: he’s driving his own vehicle with damage from an accident because five of the needed parts are on backorder.

He said, like Radman, his company is returning more otherwise repaired vehicles to customers missing cosmetic parts, though he said that requires letting customers know well in advance that’s a real possibility, and also “triggers having an additional tracking system for all those vehicles.”

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“We’re also triple-checking what can actually be repaired. Our repair percentages are going up,” Clymer said.

Rich O’Leary, manager of Fix Auto Sierra Vista in Arizona, said another challenge of releasing vehicles with a cosmetic part that hasn’t arrived is the customer satisfaction survey question related to whether they had to bring their vehicle back to the shop.

He said his shop has “invested in some steel and aluminum pulling equipment, and we do find ourselves repairing a lot more than we used to,” though he noted that entails understanding when that can be done as part of a safe repair, and what should not be repaired.

O’Leary said they also use the PartsVoice website to locate needed OEM parts beyond the local market.

“Often you’ll find a dealership around the country that has the part sitting on their shelf collecting dust,” he said. “It costs more to have them package and send it, but that’s an alternative.”

But some at the meeting said searching for parts at dealerships

out of your shop’s market doesn’t always resolve the issue. Some suppliers, for example, may not be willing to sell a part to ensure they have it for those in their market.

“There’s a natural inclination when supply is short to take care of your best customers,” said Ken Weiss, who moderated the CIC discussion. “One of my other concerns is that all of the parts platforms that I’m aware of on the shop or insurer retail side expect the supplier to pay for shipping. Because of that, I know there’s a lot of parts that are probably not put into the search network because the supplier is not going to absorb the shipping when it’s a low-cost part.

“Or if it’s what we refer to as dimensionally-challenged; shipping a sheet metal quarter panel could cost more than the quarter panel is worth,” Weiss said. “But to me it’s better, especially if you’re the insurance company, to get the quarter panel and pay the shipping rather than have the car sitting in limbo for two months.” www.autobodynews.com

Tesla’s Most Important Product in Development is Optimus Humanoid Robot

by Maria Merano, Teslarati

During Tesla’s Q4 2021 and full-year earnings call, CEO Elon Musk talked about the company’s product goals. He said the production of Tesla’s humanoid robot, internally dubbed Optimus, is one of the most important products in development at the moment. At the latest earnings call, Musk announced Tesla will not be introducing new vehicle models in 2022. He explained Tesla was still experiencing some part constraints, undoubtedly affecting production on several exciting projects, including the Cybertruck, Semi and Roadster. However, Musk said Tesla would continue to do “a lot of engineering and tooling” on products it has already launched, such as the Optimus humanoid robot. “So, in terms of priority of products, I think actually the most important product development we’re doing this year is actually the Optimus humanoid robot.

This, I think has the potential to be more significant than the vehicle business over time,” Musk said.

“If you think about the economy, it is—the foundation of the economy is labor. Capital equipment is distilled la-

bor. So, what happens if you don’t actually have a labor shortage? I’m not sure what an economy even means at that point. That’s what Optimus is about.

So, very important,” he elaborated.At the Wall Street Journal’s CEO Council Summit, Musk also said the Tesla Bot could address labor shortage issues.

He further explained rapidly declining birthrates were a risk for civilization.

At the Q4 2021 earnings call, Musk said Optimus (or Optimus Sub-prime’s) first job would most likely be at Tesla factories. Thus far, Tesla’s work on its humanoid robot seems to be moving along as scheduled. After revealing its venture into humanoid robots during AI Day last year, Tesla announced a prototype of Optimus would be unveiled by 2022. Tesla certainly didn’t seem to waste time forming a team to work on the humanoid robot. In the same month the Tesla Bot was announced, the head of Tesla’s Mobile Robotics, Chris Walti, started looking for engineers and technicians to add to the humanoid robot program. By November 2021, Tesla posted even more job openings for the initiative.

Photo: Tesla robot

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Some Auto Parts Cheaper at Walmart, Fixed Ops Director Shocked to Find

by Ed Attanasio

After giving his wholesale parts customers deep discounts through price-matching programs and taking a miniscule profit, Charlie Monteleone, corporate fixed operations director for the Ancira Automotive Group, recently discovered he can buy some of his parts cheaper at Walmart than through his own jobber.

It was an eye opener and surely not a warm and fuzzy moment for Monteleone.

“I am a Walmart shopper and the type of guy who will walk down every aisle when I’m there, whether I need something or not,” he said. “If you’re in the business and you see a Mopar or an AC Delco filter, for example, it catches your eye. I compared their prices to our dealer net prices on the exact same filters and 50% of all the parts that Walmart has on their shelves is [12-14%] less than what we can purchase them for.”

Monteleone started his career as a Ford master technician. Today, he is the top guy at Ancira, head-

quartered in San Antonio, TX. The company, which has 11 locations in Texas, is celebrating its 50th anniversary in 2022.

Ancira offers both mechanical and collision repair services for Chevy, Nissan, Chrysler, Jeep, Dodge, Kia, VW, Ford, GMC, Buick and RVs, and has the largest collision center in San Antonio—45,000 square feet—that employs 55 people and stocks more than $1 million in crash parts.

The Ford Motor Company played a major role in Monteleone’s household during his formative years.

“My father started out as a Ford tech and then worked his way up to become a parts and service director,” Monteleone said. “I’ve followed in his footsteps and became a Ford master technician, and my journey has been very similar to my dad’s career.”

The journey now in 2022 is a little different and Monteleone is facing issues Dad never had to deal with. Competing in the dealership world is already tough with tight

margins, but throw in the pandemic and the fact people are keeping their vehicles longer—it’s a whole new ballgame. The dealers that are succeeding are thinking outside of the box and adapting on the fly, so when the industry throws Monteleone a curve, he must respond quickly and definitively.

On pace to do $31 million in wholesale parts sales this year, Monteleone admitted problems within the supply chain have impacted his business tremendously.

“We’re feeling it and the shops are definitely feeling it even more,” he said. “Right now, my repair fill rate off-the-shelf is 70%, which is not horrible. Our pre-pandemic numbers were around 85% with our same-day at 94%. We’re doing a lot more major repairs because people are not buying new vehicles during the pandemic, and the availability of parts has been an ongoing concern.”

To get the parts they need for their in-house repairs as well as for their wholesale clients, Monteleone’s parts managers have had to

hustle and leverage relationships to succeed.

“My parts people are very active, going dealer-to-dealer or getting the manufacturers to approve the use of aftermarket parts on warrantied repairs,” Monteleone said.

“We’re winning doing it that way, but I always tell my parts managers that they have to be on their toes and be really, really focused on their work in process.”

With his OEs’ warehouses located in Dallas—4.5 hours away by car—Monteleone obviously can’t rely on them to complete his parts orders. But luckily there are several competing dealerships selling the same brands in close proximity, he said.

“We source them for anything we don’t have on-hand and when we recondition used cars, we always now opt mainly for aftermarket parts on those jobs.”

Acquiring parts from the competition means Monteleone is paying premium prices, which impacts his bottom line.

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“From our neighboring dealerships, the going rate charge is cost plus 15%, which is a premium price and a little steep,” he said. “If you’re selling the part to one of our wholesale shop customers, we’re already giving them a deep discount. So, we are taking a real beating on those orders and selling those parts at a loss.

Serving the customer is our priority here, and this is one of the realities we have to deal with.”

In today’s wholesale parts world, the contenders are separating themselves from the pretenders, a trend that will continue, Monteleone said.

“The differences between a parts manager who is a strong retailer and focusing on profitability versus someone who is slinging a lot of paper to sell at a high volume are becoming more and more evident,” he said. “We definitely want to be on the right side of this and that’s why we work so hard to be keep our wholesale customers happy while being profitable overall.”

What’s the solution?

“I can buy the parts from Walmart and make more money, so

that’s what I did,” he said. “I made a big purchase and when my factory rep came in for a visit, she was surprised and a little perplexed to see a wall of parts I bought at Walmart.

I told her I won’t be buying certain parts from you anymore because I can get them cheaper at Walmart.

She didn’t know what to say! I originally discovered this a few years back in Florida and the same thing is happening now in Texas.”

Right now, Walmart isn’t retailing crash parts and is focusing on marketing DIY types of parts. But no one would be surprised if this trend could gain momentum in some states to the point where certain collision parts and products could be undercut by large retailers.

“The OE wants to cut out the middle man and eliminate the jobbers, to be honest,” Monteleone said. “They all want to go direct and that’s why they’ve done things like cutting their return allowances in half, for example. Why are we selling our parts at a deep discount while the manufacturers have decided to work with Walmart? It makes no sense.”

DOT Issues National Roadway Safety Strategy with Focus on Safer Vehicles

by SEMA Washington, D.C., Staff

The U.S. Department of Transportation (DOT) has released a new national strategy for addressing roadway safety, saying it has an “ambitious long-term goal of zero roadway fatalities.” The National Roadway Safety Strategy (NRSS) is a five-pronged approach to safety focused on safer people, safer roads, safer vehicles, safer speeds and postcrash care. Sec. of Transportation Pete Buttigieg maintains the NRSS is a first, noting it is a “comprehensive plan to significantly reduce injuries and deaths on America’s roadways.” In the first half of 2021, roadway deaths were up 18.4% compared to the first six months of 2020, which was likely integral in DOT’s creation of the NRSS. The National Highway Traffic Safety Administration (NHTSA), an agency within the DOT, will play a vital role in ensuring the NRSS is successful. To address vehicle safety, the NRSS incorporates safety provisions already required by the infrastructure law passed in 2021. This includes a di-

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rective that NHTSA update the New Car Assessment Program (NCAP) to include newer safety technologies within the five-star rating program such as automatic emergency braking and lane-keeping assist. These advanced driver-assistance systems (ADAS) help prevent or mitigate the impact of crashes. SEMA will continue to monitor these updates and promote consumers’ ability to modify their vehicles that have ADAS equipment installed. The agency is also scheduled to begin a rulemaking by 2024 to require installation of automatic emergency braking systems as standard equipment on new vehicles to avoid collisions with other vehicles or pedestrians. NHTSA will also consider ways in which alcohol-detection systems and systems to detect distracted driving may be installed on new motor vehicles.

As NHTSA moves forward with these regulatory actions, SEMA will closely participate in the rulemaking process. For more information, contact Caroline Fletcher at carolinef@ sema.org.

Source: SEMA

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EV Buyers Not Researching Charging Options Until After Purchase: Study Most electric vehicle (EVs) owners conduct little to no research on charging infrastructure before purchasing new vehicles until they bring their electric vehicles home, according to a study released Jan. 31 by clean energy software leader Uplight and See Change Institute.

Added to this, most did not consider their utility when looking for any information around EVs, despite an abundance of utility EV-related resources. The majority of those surveyed qualify as “reactive chargers,” only pursuing in-depth charging research after encountering a charger-related issue with their electric vehicles, such as high electricity bills after charging at home.

For these participants, the extent of their charging research before purchasing the vehicle is limited to checking for an outlet in the garage.

Many participants admit to “figuring it out as they go,” rather than researching charging options, capabilities and cost before the major purchase of the vehicle itself.

While participants acknowledged the importance of conducting research on charging options, few

were familiar with the guidance offered by their utilities. The findings also convey a hesitancy to purchase Level 2 chargers proactively, with participants most often considering Level 2 chargers only after experiencing slow charging times with Level 1.

“Many of the EV owners we talked to cited busy lifestyles or lack of time for doing their own research on charging cost, tools and options,”— Devren Hobbs Participants in the focus group overwhelmingly preferred charging their vehicles at home rather than at community chargers, but they are largely unaware of the tools readily available to guide them in doing so efficiently.

Those participants who did conduct in-depth research failed to take advantage of the utility offerings and primarily relied upon social media and YouTube for information, rather than seeking information specific to their home or lifestyle or by contacting qualified professionals. The ongoing switch to EVs requires a paradigm shift for consumers to look to

said Devren Hobbs, vice president of product of emerging technology at Uplight. “The research on recent EV owners echoed my personal experience purchasing an EV this fall, the lack of education and engagement and the decision to charge at home.

We believe these insights show an excellent opportunity for utilities to become a trusted energy advisor and create a one-stop customer experience that helps walk customers through all available options, help them identify rebates and better understand how owning an EV will affect their electric bill.

“Uplight’s EV Solutions help

utilities get ahead of the EV curve and their decarbonization goals while helping customers proactively understand and optimize charging while creating a deeper utility-customer relationship that extends beyond electric vehicles.”

Other research highlights: While participants hadn’t previously used their utility’s EV resources, they were open to doing so in the future, and preferred a single EV resource on cars, chargers, rebates and related costs. Participants said had they known about the offering, they would have taken advantage of it.

Most participants charge their EVs at home and overnight. This is driven by convenience and a perception that public chargers are a hassle, risky and/or time-consuming. Participants were hesitant to install Level 2 chargers even after research because of the need to find an electrician for installation and electric panel upgrade.

Most participants are unaware of EV specific rates or other EV and charging-related offerings from their utility.

Source: Uplight

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CCC Acquires Insurtech Safekeep CCC Intelligent Solutions announced it acquired Safekeep, an AI leader in subrogation claims management technology.

Safekeep is an enterprise platform that leverages AI to speed and improve subrogation management across auto, property, workers’ comp and other insurance lines of business. The acquisition of Safekeep is a natural next step in CCC’s vision to deliver end-to-end straight-through claims processing.

The acquisition of Safekeep extends CCC’s AI-powered claims software to include subrogation management, a critical function in achieving claims resolution, and now part of CCC’s completely digital, AI-enabled, end-to-end claims solutions. Safekeep solutions are available to any insurer. Subrogation protects consumers and insurers from paying for losses where the insured is deemed not at fault or only partially at fault.

Source: CCC Intelligent Solutions

their utility when they typically look to dealers and gas stations when it comes to fueling their car.

“Many of the EV owners we talked to cited busy lifestyles or lack of time for doing their own research on charging cost, tools and options,”

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 67

Bill to Ensure Consumer Choice in Auto Repair Introduced in U.S. House U.S. Rep. Bobby Rush (D-IL) introduced the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act, to ensure the preservation of consumer choice, a fair marketplace and the continued safe operation of the nation’s 288 million registered passenger and commercial motor vehicles, 70% of which are maintained by independent repair facilities.

The move is applauded by the Automotive Aftermarket Suppliers Association (AASA), Auto Care Association, CAR (Consumer Access to Repair) Coalition and Specialty Equipment Market Association (SEMA).

The REPAIR Act will accomplish this by: Preserving consumer access to high quality and affordable vehicle repair by ensuring vehicle owners and their repairers of choice have access to necessary repair and maintenance tools and data as vehicles continue to become more advanced.

Ensuring access to critical repair tools and information. All tools and equipment, wireless transmission of repair and diagnostic data, and access to on-board diagnostic and telematic systems needed to repair a vehicle must be made available to the independent repair industry.

Ensuring cybersecurity by allowing vehicle manufacturers to secure vehicle-generated data and requiring the National Highway Traffic Safety Administration (NHTSA) to develop standards for how vehicle generated data necessary for repair can be accessed securely.

Providing transparency for consumers by requiring vehicle owners be informed that they can choose where and how to get their vehicle repaired.

Creating a stakeholder advisory committee and providing them with the statutory authority to provide recommendations to the FTC on how to address emerging barriers to vehicle repair and maintenance.

Providing ongoing enforcement by establishing a process for consumers and independent repair facilities to file complaints with the FTC regarding alleged violations of the requirements in the bill and a requirement that the FTC act within five months of a claim.

As vehicle technology continues to advance, new barriers to a compet-

itive auto repair market are emerging.

These barriers limit consumer choice in where to repair their motor vehicles and increase the cost to repair and maintain vehicles. The REPAIR Act will reduce these barriers, putting consumers’ interests first.

“Today is one of the most memorable and important days in the history of the aftermarket. The REPAIR Act will help guarantee consumers’ rights and the ability of the industry to ensure their vehicles operate safely,” said Paul McCarthy, president and CEO of AASA. “From the repair shop to the board room, this effort has been fueled by the people of the aftermarket, and we couldn’t be prouder of that alignment behind this important legislation. This effort supports principles of competition, consumer choice, and safety that we believe will benefit the whole automotive industry in the long run. We look forward to working with Rep. Rush and our industry colleagues towards passage of this critical legislation.”

“Ensuring consumer choice while retaining a free and competitive market across the vehicle lifecycle is at the heart of this legislation,” said Bill Hanvey, president and CEO, Auto Care Association. “As personal transportation has become more essential than ever, we need to make sure that 288 million American motorists have access to affordable, safe and secure repairs for their vehicles. The tenets of this bill are principles-based, balanced, and address concerns shared across the automotive industry. Passage of this bill will keep consumers at the wheel while preserving an industry that contributes 4.4 million U.S. jobs and 2% GDP.” “The CAR Coalition is proud to support the REPAIR Act,” said Executive Director Justin Rzepka. “According to a recent YouGov poll, 93% of respondents agreed that they should have the right to choose where and by whom their vehicle is repaired. The REPAIR Act will ensure consumers will have more, not fewer choices, when they need a repair shop. They will also have access to the data they need to make sure the repair is done safely. This is important, consumer-first legislation and we look forward to working with lawmakers and industry partners to pass it.”

“Free and fair competition is a

68 MARCH 2022 AUTOBODY NEWS / autobodynews.com

core value in the United States,” said Daniel Ingber, vice president of government and legal affairs, SEMA. “Protecting a consumer’s personal choice when purchasing, servicing, repairing or modifying a motor vehicle is what the REPAIR Act will deliver. As technology continues to reshape the automotive landscape for vehicle safety, convenience and comfort, Congress needs to enact this important legislation. The REPAIR Act is essential to protecting access to vehicle systems, tools and information necessary for independent repair and modification services for millions of consumers.”

“Americans should not be forced to bring their cars to more costly and inconvenient dealerships for repairs when independent auto repair shops are often cheaper and far more accessible,” said Rep. Rush. “But as cars become more advanced, manufacturers are getting sole access to important vehicle data while independent repair shops are increasingly locked out. The status quo for auto repair is not tenable, and it is getting worse. If the monopoly on vehicle repair data continues, it would

affect nearly 860,000 blue-collar workers and 274,000 service facilities.”

The bill is introduced on the heels of three pivotal moments for consumer choice in repair. In November 2020, Massachusetts voters overwhelmingly voiced their support for Ballot Question 1—also known as Right to Repair—with 75% of the vote, which preserves their right as vehicle owners to have access to and control of their vehicle’s mechanical data necessary for service and repair at the shops of their choice. In May 2021, the FTC released its “Nixing the Fix” report, which highlighted barriers that vehicle manufacturers have instituted to squash a consumer’s right to repair. The FTC strongly supports expanding consumer repair options and found “scant evidence” for repair restrictions imposed by original equipment manufacturers.

And in July 2021, President Joe Biden issued the “Promoting Competition in the American Economy” executive order, which encouraged the FTC to address anti-competitive repair restrictions.

Source: Auto Care Association

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Hertz Partnering with UFODRIVE to Improve EV Rental Experience Hertz on Feb. 15 announced an investment in UFODRIVE---the leading self-service electric vehicle rental company and eMobility service provider in Europe---as part of Hertz’s commitment to lead the future of mobility.

UFODRIVE is the first all-digital, all-electric car rental service controlled from an app. Its advanced eMobility SaaS Platform makes transitioning to electric easy for both customers and fleet providers---delivering lean operations, lower energy costs, better charging and optimal fleet utilization using advanced AI tools.

UFODRIVE’s technology delivers a two-minute “arrive and drive” entirely digital EV customer experience.

The partnership builds on Hertz’s announcement in October 2021 that it is investing in EVs, with a commitment to offer the largest electric vehicle rental fleet in North America and to grow its EV fleet globally. Hertz also committed to providing the best rental and recharging experience for leisure and business customers around the

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world.

Also in October, the company announced an exclusive partnership with Uber to make Tesla electric vehicles available for drivers to rent when using the Uber network.

UFODRIVE’s Series A financing round was co-led by Hertz and Certares, in partnership with Knighthead Capital Management, and included participation from existing investors. Hertz Senior Vice President of Strategy Jayesh Patel and Venture Lead at Certares Chantal Noble Haldorsen will join the UFODRIVE board.

“Our partnership with UFODRIVE is yet another major step in Hertz becoming an essential component of the modern mobility ecosystem,” said Mark Fields, Hertz interim CEO. “Together, we will pilot ways to make renting an EV even easier using UFODRIVE’s digital platforms for both the rental experience and fleet management. For customers, this partnership will help us create the future rental car experience that is all-digital and EV-centric.”

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Axalta, a leading global supplier of liquid and powder coatings, announced its commitment to an absolute reduction of 50% of certain greenhouse gas emissions by 2030, on its way to becoming carbon neutral in its operations by 2040— one decade ahead of the deadline set by the Paris Agreement on Climate Change.

In addition, the company has made 10 new sustainability commitments for 2030. Key among these is the commitment to produce sustainability benefits from 80% of Axalta’s new product developments.To set these goals, Axalta conducted a comprehensive environmental, social and governance (ESG) materiality assessment with internal and external stakeholders, including customers, suppliers, investors, board members, community and local government leaders, and company executives.

Axalta also worked to align with the United Nations Sustainable Development Goals in developing its ESG framework.

Source: Axalta

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Rental,’ this investment is a major validation of that dream,” said Aidan McClean, UFODRIVE CEO. “We are proud that we are helping to accelerate the transition to zero-emissions mobility, and our investors see the opportunity ahead.”

McClean added: “We pioneered and are now the premier operating system for electric fleets and already service a growing list of high-profile mobility companies.”

Following successful live testing in 2021, Hertz aims to deploy UFODRIVE’S market-leading digital rental and fleet management technology to enhance its global EV fleet operations.

Starting with Hertz’s key partners in the U.S. and Europe, this will offer a fully digital rental experience, charge point wayfinding, touchless smartphone access and online customer support with live telematics using UFODRIVE’s SaaS platform.

UFODRIVE will use the additional capital to accelerate product development and to expand globally, with a focus on the U.S. market.

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Order Parts Online at: www.rocklandnissan.com autobodynews.com / MARCH 2022 AUTOBODY NEWS 69

Automakers Report January Sales Automakers on Feb. 1 began releasing sales results from January.

Mazda Mazda North American Operations (MNAO) reported total January sales of 21,079 vehicles, a decrease of 16.5% compared to January 2021.

With 24 selling days in January, compared to the same number the year prior, the company posted a decrease of 16.5% on a Daily Selling Rate (DSR) basis.

CPO sales totaled 3,119 vehicles in January, a decrease of 41% compared to January 2021.

Kia

Kia America announced January sales of 42,488 units. Highlights include best-ever January perfor-

mance by the Niro family of electrified SUVs, which bested their previous record set in January 2018 by 26%. Kia also set a new January record for overall electrified vehicle sales, exceeding the previous mark by 36%.

were up 35%, representing 79% of retail volume. Venue, Tucson, Palisade, Kona and Ioniq set new January retail records.

Subaru

Hyundai

Hyundai Motor America reported total January sales of 47,872 units, a 10% increase compared with January 2021 and the highest January sales total in company history.

Venue (+70%), Tucson (+64%), Palisade (+12%) and the Ioniq (+51%) also established new January total sales records. Hyundai did not have any fleet sales during the month.

Hyundai achieved its best January retail sales ever, increasing 18% year-over-year. Hyundai eco-friendly vehicle retail sales grew 312%, while SUV retail sales

Subaru of America, Inc. (SOA) reported 44,158 vehicle sales for January, a 4.8% decrease compared to January 2021 (46,400). Like much of the automotive industry, SOA continues to face production challenges because of the semiconductor shortage and supply chain issues.

In January, Forester was the top performer by volume and achieved its best January ever with 13,531 vehicle sales. Ascent sales for January increased 15.3%, while Impreza sales increased 6.1% compared to January 2021. BRZ sales for January 2022 increased 103.1% compared to the same month in 2021.

Source: Mazda, Kia, Hyundai, Subaru

State Farm, Ford Introduce UBI State Farm® and Ford announced the launch of Drive Safe & Save™ Connected Car for customers with eligible connected Ford or Lincoln vehicles, to benefit from usage-based insurance (UBI).

State Farm customers with eligible connected vehicles can opt into the State Farm UBI program, Drive Safe & Save, which adjusts premiums to an individual vehicle’s mileage and customer driving behavior.

State Farm will debut Drive Safe & Save Connected Car in Alaska, Idaho, Montana and Oregon, for policies effective on or after Feb. 27, followed by a rollout across more states, excluding California, Massachusetts and Rhode Island.

Eligible 2020 Model Year and newer connected Ford vehicles, with the consent of the vehicle owner, can share information directly with State Farm to enable Drive Safe & Save.

Source: Ford Motor Company

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U.S. Crude Oil Production Fell by 8% in 2020, Largest Decrease on Record

by Bethany Blankley, The Center Square

U.S. crude oil production fell by 8% in 2020, the largest annual decrease on record, the U.S. Energy Information Agency reported.

This plunge occurred one year after the U.S. reached a record annual average high of 12.2 million barrels a day in production in 2019.

In January 2020, U.S. crude oil production reached a peak of 12.8 million b/d. But with federal and state lockdowns halting travel over coronavirus fears, demand for oil dropped and production became too expensive to maintain.

By March 2020, the oil and gas industry experienced a “bloodbath,” and by April, the WTI was negative $40 a barrel for the first time in history. Prices at the pump also reached historic lows.

To stop the hemorrhaging, crude oil operators shut in wells and limited the number of wells brought online, laying off large numbers of workers, all of which resulted in significantly lower output. By May 2020, U.S. crude oil production reached its lowest average monthly volume for the

eraging 4.87 million b/d. Its production still represented a 4% decrease of 205,000 b/d from the record high of 5.07 million b/d set in 2019.

After the state shut down in mid-March last year, wells closed, rigs stopped operating and tens of thousands of workers were immediately laid off. Texas’ oil output fell in March by an estimated 235,000 b/d, the largest monthly decline ever recorded, according to the Texas Alliance of Energy Producers.

The Alliance’s benchmark Texas Petro Index fell to 172 in April from 181.9 in March, the second largest monthly decline on record (the September to October Oil well and storage tanks in the Texas Panhandle.

2015 11-point drop is the Credit: Jim Parkin/Shutterstock.com largest on record).

By June 2020, Texas led the naIf there was a silver lining to be found, it was in Texas and New Mex- tion in oil and gas bankruptcies.

New Mexico also reached a ico fueled by drilling in the Permian Basin. In Texas, more crude oil was new record. In 2020, it saw the largproduced than in any other state or est statewide increase in crude oil region of the U.S. in 2020. production in its history. It increased Texas produced 43% of the na- production by 15%, or 133,000 b/d, tional total of crude oil in 2020, av- reaching a record annual average year at 10 million b/d, EIA reported.

Overall, U.S. crude oil production dropped 935,000 b/d to an average of 11.3 million b/d in 2020.

The 2020 decrease in production was the largest annual decline in the EIA’s records, the agency said.

It’s been tracking U.S. annual crude production since 1940.

high of 1.04 million b/d.

New Mexico also became the second-largest oil producer in the U.S. in fiscal year 2021, behind Texas. Its oil and natural gas industry contributed $5.3 billion to state and local governments in tax revenue in FY21, the highest figure recorded in state history. By contrast, decreases in production were seen in the Gulf of Mexico, Oklahoma, and North Dakota.

The Federal Offshore Gulf of Mexico saw the largest decrease in crude oil production in 2020, dropping 245,000 b/d, or 13%, to an annual average of 1.65 million b/d.

Much of this was due to weather related events such as hurricanes and tropical storms in the Gulf that forced operators to evacuate platforms and shut-in production.

Oklahoma had the largest percentage decrease of production of 19%, with an annual average of 469,000 b/d.

North Dakota saw the second-largest decrease of crude oil production of 242,000 b/d, or 17%, dropping to an annual average of 1.18 million b/d.

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AirPro Diagnostics, the leader in remote diagnostics, scanning, programming and ADAS calibration solutions, is proud to announce Ted McClintic has joined AirPro Diagnostics as director of field support.

McClintic started his career at Church Brothers Auto Body in Indianapolis, IN, in 1998 and went on to hold executive positions with large MSOs in operations, OEM certification and quality control.

The AirPro tool and calibration devices meet rigorous vehicle manufacturer requirements by having OEM licensed software and multi brand diagnostic applications resident and directly connected to the vehicle. ORION, AirPro’s cloud-based diagnostic management system, is the hub by which all services are delivered within the company’s 10-Minute Response Pledge.

Contact AirPro Diagnostics at (904) 717-1711 to sign up or visit at www.airprodiagnostics. com Source: AirPro Diagnostics

autobodynews.com / MARCH 2022 AUTOBODY NEWS 71

72 MARCH 2022 AUTOBODY NEWS / autobodynews.com