Autobody News April 2011 Northeast Edition

Northeast Edition New York New Jersey Pennsylvania Delaware

29

YEARS

VOL. 1 ISSUE 1 APRIL 2011

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AASP/NJ’s NORTHEAST 2011 Show Fills the Aisles at the Meadowlands Friday through Sunday, March 18–20, body shop owners and operators and their mechanical counterparts met at the 34th annual Northeast™ 2011 show at

Jeff McDowell, AASP/NJ President and Charles Bryant (r), AASP/Executive Director at Northeast™ 2011

the Meadowlands. Northeast™ is the region’s largest automotive repair show with hundreds of booths on exhibit.

Organized by AASP/NJ, sup-

ported by Thomas Greco Publishing, and boosted by official show sponsor BASF, the the show appeared well-attended and provided an active exhibitor hall along with some very informative presentations.

Jeff McDowell, AASP/NJ President, said prior to the show, “Despite the economy, our attendance has been on the rise over the last two years,” adding, “We are confident that trend will continue.”

BASF’s sponsorship and the colocation of meetings of CIC, SCRS, NABC, and co-op Assured Performance Network, reflects the heightened significance of the show to repairers in the region as well as the national organizations who chose to hold their meetings immediately prior or concurrently with the show.

Rich Evans Fronts Speed’s TV Hit Car Warriors

Along with the latest in equipment and technology, Northeast™ 2011 offered a full slate of educational and

training seminars on topics including waterborne paint application and drying, estimating, steering, risk management for collision & mechanical shops and technical certification courses from I-CAR in both Spanish and English.

One of the most obvious enhancements this year was a well-coor-

dinated social marketing campaign which was the second year in which AASP/NJ used social media to help promote the show. “Last year, we got a ton of positive feedback from exhibitors and attendees who had heard about the show either through Twitter, LinkedIn or our Facebook ‘Fan’ page,” said McDowell. “These social media tools definitely helped generate interest in the show last year, and I foresee the response to be even greater this year as we up our efforts.”

AASP/NJ has also created a YouTube page (www.youtube.com/AASPNJNORTHEAST), where promotional videos before and after the show are posted.

The weeklong schedule of national automotive repair industry meetSee NORTHEAST, Page 33

Welcome to the first NorthEast Edition of Autobody News ‘Fresher than Fishwrap’ and it’s free . . . . . . . . . . . . . . . . . .p. 41

REGIONAL STORIES in this issue...

Northeast™ 2011 Fills the Aisles . . . . . . . . . . . . . . . . . . . . . . . . . .p. 1

Sisk—Attending the Northeast™ 2011 Seminars . . . . . . . . . . . . .p. 26

Keenan Autobody’s Nine Northeast Locations Focus on Cars,

Charity and the Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 39 PLUS more than 20 other regional stories

Autobody News’ Custom Columnist Rich Evans (kneeling) and the red-shirted All Stars try to school a new blue-shirted Challenger team every week in Speed’s new TV hit Car Warriors. Hard knocks, ego-fueled death matches, and hissy fits abound, and not just from the guys.

Rich Evans’ Car Warriors Interview by Ed Attanasio is online at www.autobodynews.com, search ‘Car Warriors’

PAINT FOCUS ARTICLES in this issue...

Major NJ Shop Switches to BASF Waterborne . . . . . . . . . . . . . . .p. 15

BASF Sponsors Northeast™ 2011 Waterborne Panel . . . . . . . . .p. 26

Drying Waterborne in the Northeast . . . . . . . . . . . . . . . . . . . . . . . .p. 27

Paint Complaint Does Not Have to Mean an Unhappy Customer p. 42

COLUMNS in this issue...

Gonzo’s Toolbox—A Quick Diagnositic Scan . . . . . . . . . . . . . . . .p. 20

Franklin—Get on the Cosmetic Car Upgrade Bandwagon . . . . . .p. 24

Hey Toby—Keeping Your Shop Clear of OSHA Violations . . . . . .p. 31

Amaradio—Underqualified Repairers Hurt the Whole Industry . .p. 34

Danalevich—Shop Strategies for Savings: Business Insurance p. 35

Yoswick—Repairers and Recyclers Improve Interactions . . . . . .p. 36

Rich Evans—Remaking a 41 Chevy with an English Wheel . . . .p. 37

Insurance Insider—DRPs and Fear . . . . . . . . . . . . . . . . . . . . . . . .p. 40

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

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

2 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

Contents $2.1 Million Returned to DE Consumers

Attanasio, Global PDR - Global PDR Solutions & Park Place Bodywerks Hail the Hail. . 25

in 2010. . . . . . . . . . . . . . . . . . . . . . . . 10

Chess - Make Sure Your Shop is Clear of

Newest SCRS Affiliate . . . . . . . . . . . . . 11

Danalevich - Business Liability Insurance:

the Aisles at the Meadowlands . . . . . . . . 1

Evans - Remaking a 1941 Chevy Deluxe

Delegates Meeting . . . . . . . . . . . . . . . . . 4

Franklin - Get on the Cosmetic Car

to Repair, Claiming Information is

Insurance Insider - DRPs and Fear—Hope for

AASP of Pennsylvania Announced as

AASP/NJ’s NORTHEAST 2011 Show Fills AASP-Pennsylvania Holds Quarterly

ASA & AAM Continue Opposition to Right

Available Already . . . . . . . . . . . . . . . . . 12

these Glaring OSHA Violations . . . . . . . 31

Remember to Review Your Policy! . . . . 35 Back-End with an English Wheel . . . . . 37

Upgrade Bandwagon . . . . . . . . . . . . . . 24

a Reduction in the Number of Shops . . 40

Assembly Approves 3 Bills Regarding

Publisher’s Statement - Autobody News:

Carl Kruger Arrested . . . . . . . . . . . . . . . . 10

Sisk - AASP/NJ’s Northeast™ 2011 Trade

EVs in New Jersey . . . . . . . . . . . . . . . . 19

Conn. Association Pivots on Total-Loss Bill. 11 Connecticut Set to Begin Final Distracted

‘Fresher than Fishwrap’ and it’s Free . . 41 Show—A Wealth of Information for

Shops . . . . . . . . . . . . . . . . . . . . . . . . . 26

Driving Enforcement Campaign . . . . . . 18

Sisk - Keenan Autobody Cares about Cars,

Resigns . . . . . . . . . . . . . . . . . . . . . . . . 10

Weaver - A Quick Diagnostic Can Seem

DelDOT Says DMV Wait Times Improving. 17

Charity, and the Environment . . . . . . . . 39

too Good to be True . . . . . . . . . . . . . . . 20

In NJ, Clean Snow Off or Else You Could

Yoswick - Paint Complaint Does Not Have

Insurers Contest Crash Tax Proposal in NY. 10

Yoswick - Recyclers, Repairers Look for

be Cited. . . . . . . . . . . . . . . . . . . . . . . . 12

More NY Legislation Targets Auto Repairers. 10

New Jersey Body Shop Owner Sentenced

for $52K Scam . . . . . . . . . . . . . . . . . . 19

New Jersey Insurers Advocate Fraud

Fighting Legislation . . . . . . . . . . . . . . . 23

to Mean Unhappy Customer. . . . . . . . . 42 Ways to Improve Business Interactions. 36

NATIONAL

ABRA Auto Body & Glass Announces New

VP of Auto Glass Division . . . . . . . . . . 20

New York Gov.’s Budget Details Banking,

Airbag Risk Prompts Recall of 144,000

New York Invoice Disclosure Legislation

ASA Opposes Proposed Ore. Right to

NJ Commissioner Stresses Need for

BMW Brands Plan Increased Use of

NJ Panel Upholds Kyleigh’s Law for Young

CARSTAR Pres., Dan Bailey, to Return to

NY Cell Phone Law Could Affect Insurance

Groupon Succeeds in Helping Body Shops

Insurance Regulation Merger . . . . . . . . 18 Introduced . . . . . . . . . . . . . . . . . . . . . 23 Standards for Insurance Regulation . . . 13 Drivers to Display Red Decals . . . . . . . . 4 Prices . . . . . . . . . . . . . . . . . . . . . . . . . 12

PA High Schools to Compete in Engine

Build Competition in Carlisle. . . . . . . . . 17

Pennsylvania Auto Safety Report is an “F” . 6

Pennsylvania Ponders Election for Insurance

Ford Vehicles . . . . . . . . . . . . . . . . . . . . 33

Repair Act . . . . . . . . . . . . . . . . . . . . . . 33

Carbon Fiber . . . . . . . . . . . . . . . . . . . . 33

Own Franchise. . . . . . . . . . . . . . . . . . . 12

Reach Out to New Local Customers . . . . 6

IIHS: Big Rig Underride Guards Often Fail

in Crashes . . . . . . . . . . . . . . . . . . . . . . 34

Japan’s Quake, Tsunami Roils US Auto

Industry. . . . . . . . . . . . . . . . . . . . . . . . 22

Commissioner . . . . . . . . . . . . . . . . . . . 16

NSF International Settles Spat with CAPA

Teen Driving Bill . . . . . . . . . . . . . . . . . . 16

PreFab Ads Introduces Three New TV Spots

Pennsylvania State Legislator Reintroduces Three Ex-Chrysler, GM Dealers in W.

Pennsylvania Sue U.S. Government . . . . 7

COLUMNISTS

Amaradio - Underqualified Repairers Hurt

the Whole Industry. . . . . . . . . . . . . . . . 34

Attanasio, BASF - Switching to BASF

Waterborne for the Green Reasons. . . . 15

by Dropping Suit . . . . . . . . . . . . . . . . . 33

for Body Shops . . . . . . . . . . . . . . . . . . 29

Progressive’s Snapshot EDR Now Available

in 32 States . . . . . . . . . . . . . . . . . . . . 21

Rich Evans Fronts Speed’s TV Hit Car

Warriors . . . . . . . . . . . . . . . . . . . . . . . . 1

Wade Ford Atlanta Chooses an Alternative

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia

Indexof Advertisers

DE Department of Transportation Secretary

Diagnostic Solution . . . . . . . . . . . . . . . 21

Northeast

REGIONAL

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Amato Agency . . . . . . . . . . . . . . . . 17

Mazda Wholesale Parts Dealers . . . 34

BASF . . . . . . . . . . . . . . . . . . . . . . . . 14

MOPAR Wholesale Parts Dealers . . 22

Autoland Scientech. . . . . . . . . . . . . 21

BMW Wholesale Parts Dealers . . . . 28

Chief Automotive. . . . . . . . . . . . . . . . 7

Metric Subaru . . . . . . . . . . . . . . . . . 10

Nissan/Infiniti Wholesale Parts

Dealers . . . . . . . . . . . . . . . . . . . . 35

DuPont . . . . . . . . . . . . . . . . . . . . . . . 5

Porsche Wholesale Parts Dealers . 39

Fred Beans Parts . . . . . . . . . . . . . . 44

PreFab Ads . . . . . . . . . . . . . . . . . . . 29

Equalizer Industries . . . . . . . . . . . . 27

Fuccillo Kia . . . . . . . . . . . . . . . . . . . 12

Global PDR . . . . . . . . . . . . . . . . . . . 24

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Quality Stainless Products . . . . . . . . 4

SATA Spray Equipment . . . . . . . . . 13

GM Wholesale Parts Dealers . . . . . 32

Scion Wholesale Parts Dealers. . . . 40

Jaguar Wholesale Parts Dealers. . . 30

Sherwin-Williams. . . . . . . . . . . . . . . 11

Hyundai Wholesale Parts Dealers . 33 Kia Motors Wholesale Parts

Dealers . . . . . . . . . . . . . . . . . . . . 26

Manhattan Automobile Company . 8-9

Mattei. . . . . . . . . . . . . . . . . . . . . . . . 16

Maxon Mazda-Hyundai. . . . . . . . . . 18

Scorpion Coatings . . . . . . . . . . . . . 19

Stadel Volvo . . . . . . . . . . . . . . . . . . 23

Subaru Wholesale Parts Dealers . . 41

Toyota Wholesale Parts Dealers . . . 31 VIM Tools. . . . . . . . . . . . . . . . . . . . . 37

Volvo Wholesale Parts Dealers . . . . 23

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 3

AASP-Pennsylvania Holds Quarterly Delegates Meeting

The Alliance of Automotive Service Professionals of Pennsylvania (AASPPA) has over 2,000 members across Pennsylvania and Delaware. Each of the 34 active chapters holds their own

PA held this quarter’s delegates meeting on February 12 in Harrisburg.

Items discussed included AASPPA’s upcoming TechTrain 2011, the association’s annual training weekend,

mechanical seminars and Tim McDonnell, David Rogers, and Gary Gunn with management seminars. Tim McDonnell, Training Manager with Mitchell 1, will give the breakfast keynote. There are 13 seminars scheduled for the weekend so far.

The association is also beginning

velop relationships with local legislators.

The Collision Division reported that AASP-PA has joined the Society of Collision Repair Specialists (SCRS).

It was announced that the legislative meeting for Chapter 11 (South Allegheny) is on hold. The March meeting

Delegates Representing the Pennsylvania Chapters, the third largest automotive market in the U.S.

Delegates gathered for a round-table style discussion about AASP-PA’s 2011 agenda

monthly meetings, and provides two delegates to represent their chapter at the quarterly delegates meeting. AASP-

which will be held on March 26–27 at the Grantville Holiday Inn. New instructors include John Forro with two

NJ Panel Upholds Kyleigh’s Law for Young Drivers to Display Red Decals Saying an age group is not as personal as other information retained about New Jersey motorists, an appellate court upheld a state law on February 22 that requires young drivers to affix red decals to their cars, according to Newark’s Star-Ledger.

The unanimous ruling from the three-judge panel so incensed opponents of Kyleigh’s Law, which took effect last May, that they vowed an immediate appeal to state Supreme Court.

The appeals court said the state’s graduated driver’s license system (GDLS) does not identify young drivers any more than they identify themselves as young merely by being in public.

“The governmental interest furthered by enforcement of this system of restricted driving privileges established by the GDLS is safety on the roadways of this state,” Judge Jane Grall wrote for the panel. “The decals which must be used by young drivers subject to the GDLS restrictions are suitable means of furthering that interest.”

The dispute centers on a revision of the system that requires drivers between the ages of 16 and 21 to affix red decals to the front and rear license plates of their vehicles.

The decals are supposed to be a way for police to more easily identify provisional drivers or those with permits who are subject to certain restrictions, such as the number of people allowed in the car with them and the hours they can be on the road.

But opponents of Kyleigh’s Law —named for a 16-year-old Long Valley girl killed in a car driven by a provisional driver in 2006—insist the decals are a red flag to police to unfairly target young drivers and as a lure to criminals who prey on teens.

“This is a law we believe places people in danger rather than helps them,” said Rockaway attorney Gregg Trautmann, who argued against Kyleigh’s Law before the appeals court. “While I respect the judges’ efforts, I think they’re taking an unreasonably narrow view of what is protected.”

Trautmann said Kyleigh’s Law violated the Federal Driver’s Privacy Protection Act, which forbids a state motor vehicle agency from disclosing personal information or “highly restricted” personal information except under certain circumstances.

But the appellate court said a person’s age group does not fall under any of those restrictions.

4 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

to promote their Big E Trade Show coming in October at the Valley Forge Convention Center.

John Kulik (AASP-PA lobbyist) led discussion of the political atmosphere in Harrisburg. There was agreement between members that more legislative meetings are needed to de-

for this chapter will have an I-CAR training class. Another meeting will involve an open forum with insurance adjusters. Discussion ensued about a location change to a more centrally located location for Chapter 11 members.

For more information please visit www.aasp-pa.org.

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 5

Groupon Succeeds in Helping Body Shops Reach Out to New Local Customers Groupon, the ‘group coupon’ site where businesses submit daily deals for Groupon to market to their large subscriber base, has had lots of recent success with body shop deals.

Groupon allows businesses to submit a coupon deal to their website then, if approved, the coupon goes up on the local branch of Groupon’s website. If the deal is bought by enough people on that day, then the deal becomes available to all; if not, no one gets the deal that day.

The body shop does not pay any upfront costs to have a Groupon, rather the company takes a percentage of each coupon the body shop sells on their website.

“Our services have really expanded because of our popularity and attractiveness,” Chad Nason, Groupon’s Spokesperson told Autobody News.

Body shops have found it profitable to use Groupon to market sort of general maintenance type services to customers. This way they get new customers in the door, show them the value of their services and hopefully create some repeat customers, said Nason.

Some of these body shops are seeing the oil and filter change coupons as a step in the door for new customers and hopefully, their eventual collision business. Getting customers in for general maintenance will help them to remember your name

Great Bear Auto Repair in Queens reported a lot of new customers after their Groupon ran

analysis. Audra said she was ex- Groupon again in the future if he was tremely happy with the results and is not so busy already. He did have one eager to run another deal with word of caution for shops considering Groupon, probably this spring. She using Groupon in the future. said that the customers who have re“I would advise any shop that’s deemed were all first time customers and she already has their repeat business.

“I will do it again without a doubt, it brought in new customers and they weren’t your typical coupon-cutters just trying to get a deal, they were people truly interested in taking care Employees at Glenville Terrace Auto Body in MA were surprised at of their cars,” said how much interest their Groupon generated Fordin.

Glenville Terrace Auto Body in going to do it to really prepare for it.

Allston, Massachussetts, ran a deal On the day the actual Groupon goes with Groupon in June of 2010. Owner live online have people ready to anBarry Hynes was also extremely swer calls because people call in to pleased with the results of his ask questions about the deal. Also be Groupon deal. prepared for the rush the next day “It went really well, we were told when people come in to use the it was going to be busy and we didn’t coupon—definitely schedule appointreally take it that seriously and boy ments if you can.” were we sorry,” said Hynes, “We defTo learn more about running a initely should have prepared for the Groupon for your business visit: rush more.” www.GrouponWorks.com Hynes said that not only did it bring in new customers, but they beGreat Bear Auto Repair and Auto came repeat customers and were exBody Shop actly the clientele Hynes was looking 164-16 Sanford Avenue for.

Flushing, NY 11358 “The idea was to get new cus718-762-6212 tomers in, and it did just that. These were the kind of customers we were Glenville Terrace Auto Body looking for ... ones that really take 10 Glenville Terrace care of their vehicles.”

Allston, MA 02134 Hynes said he would do another 617-783-1515

17-year-old son, Andrew, was killed in a crash involving a teen driver in November 2009.

“It’s too late for Andrew, but it’s not too late for others,” said Case, as she spoke through tears to the gathering. “These laws don’t cost states any money and only require political leadership.”

The leadership lacking to enact safe driving laws in Pennsylvania has a profound effect.

In another study released the same day, Children’s Hospital of Philadelphia and State Farm Insurance reported that in 2008 more than half a million people, 681,000, were involved in crashes in which

a teen driver was behind the wheel.

The study said that nearly one-third of the recently people killed as a result of car wrecks involving teen drivers aren’t even in the teenagers’ cars. Cyclists, pedestrians and occupants of other vehicles comprise 30 percent of the people killed in crashes involving teen drivers.

Officials said the research shows that most of the tragedies are caused by inexperience and are therefore preventable.

Strong graduated driver licensing laws, which allow teenagers to gain experience under lower-risk conditions, are proven to be an effective prevention measure, researchers maintained. Also proven

when they do need collision work done, said Nason.

“You’re looking at something (a collision) that people aren’t planning on, so it’s a little tougher [to market],” said Nason, but he maintains that shops have found that using Groupon to advertise general maintenance can leave a lasting impression for future, unplanned work ahead.

Nason also said that Groupon is becoming a popular marketing tool because local businesses can tap into Groupon’s large subscriber base, which is broken down into region-specific websites each with their own deals.

Great Bear Auto Repair and Auto Body Shop in Flushing Queens, New York, ran a deal with Groupon in December of 2010. Owner Audra Fordin was admittedly skeptical about running the deal; she wanted to run a deal that wouldn’t overwhelm her business and had a higher price point.

“It was awesome. They were awesome; they walked me through it step by step and helped me create a custom deal that would attract customers and be realistic for my business,” Fordin told Autobody News.

The deal was for an oil change, tire rotation and charging systems

Pennsylvania Auto Safety Report is an “F”

Advocates for Highway and Auto Safety, an alliance of consumer, health, safety and insurance groups, on Jan. 31 ranked Pennsylvania as one of the seven worst states when it comes to the adoption of safe driving laws. The group gave Pennsylvania an “F” in teen driving laws and an overall “Danger” rating when it comes to basic laws. The group rated every state surrounding Pennsylvania with a green light for legislation that promotes safe driving.

The group’s annual report was announced at the National Press Club in Washington, D.C.Among the speakers was Marlene Case, of Lower Pottsgrove, who became a highway safety activist after her

6 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

effective in states where they have been adopted are passenger limits in cars driven by teens.

As Case pointed out, this is not difficult: It just requires leadership.

Safe driving standards and more restrictive teen driving laws have been adopted in neighboring states of New Jersey, New York, Delaware and Maryland.

Pennsylvania has gotten failing grades on many fronts recently, and new Gov. Tom Corbett says he intends to change some of that.

This fix is simple. It doesn’t cost anything except leadership to enact safe driving laws.

Three Ex-Chrysler, GM Dealers in W. Pennsylvania Sue U.S. Government

Three former Chrysler and General Motors automobile dealers in Western Pennsylvania have joined about 125 others nationwide in suing the federal government on the grounds that their property—their franchises—was taken from them without compensation or due process, according to the Pittsburgh Tribune-Review.

Verona Motor Sales, formerly Verona Jeep, is one of five dealerships in Pennsylvania and 59 nationwide that claim they are owed $130 million in damages because the federal government did not pay them when their franchises were eliminated, according to the lawsuit filed last week in U.S. Court of Federal Claims in Washington.

The lawsuit contends that when the Treasury Department forced Chrysler Group LLC to reduce its dealership network in 2009, it was done without due process under the Constitution and protection of state dealer franchise laws.

“Our property was taken illegally. We lost untold thousands of dollars,” said Bert Molitierno, owner of

Verona Motor Sales, now a used-vehicle dealer with sites in Verona and Penn Hills.

The Treasury became involved in the automakers’ restructuring when the government gave Chrysler and its financial arm $14 billion and General Motors Co. $50 billion in bailout money.

In March 2009, President Obama’s auto task force rejected a Chrysler restructuring plan. Chrysler filed for bankruptcy in April. A revised restructuring plan pared down its network of dealers.

The plaintiffs claim the government failed to adhere to the Constitution, especially the Fifth Amendment, which concerns public taking. The closed dealerships contend that the government must reimburse a private entity in the event of a public taking.

Two Washington County dealerships—in Hickory and Bentleyville— are parties to an amended complaint filed this month in the Court of Federal Claims that says both GM and Chrysler failed to pay any compensation for eliminating their franchises.

That lawsuit claims the government was behind the dealership cuts.

It seeks class-action status and more than $10,000 in damages per dealer.

“The Chrysler dealers got absolutely nothing. Chrysler offered us 20 cents on the dollar for our parts,” said Bo Corwin, owner of Corwin Sales & Service Inc. in Hickory.

Molitierno’s and Corwin’s dealerships were among 789 dealerships that Chrysler cut in May 2009 on the grounds it had to reduce its network to meet market demand.

General Motors, which also filed for bankruptcy in 2009, cut its network from about 6,000 to 4,500 in 2010.

One of those victims was B. Bodgewic Chevrolet Inc. in Bentleyville, which had been selling Chevrolets for about 50 years.

Bruno “Chip” Bodgewic declined to comment on the lawsuit against GM. Bodgewic now operates as B. Bodgewic Automotive.

Not only did Chrysler pull the plug on new-vehicle sales, but Molitierno said the inventory of thousands

of parts for Chrysler vehicles became virtually useless because Chrysler shutoff the dealers’ national computer system. The dealership had parts but could not tell customers whether part numbers fit their vehicles.

Chrysler gave rejected dealers a chance to regain their franchise through arbitration, but both Molitierno and Corwin said they withdrew from the process because they felt that it was not fair and would have been too costly.

“I could see the handwriting on the wall. It was just racking up lawyer’s bills,” Corwin said of arbitration.

To advertise call Joe Momber at:

800-699-8251 e-mail:

jmomber@autobodynews.com

www.autobodynews.com

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 7

8 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 9

$2.1 Million Returned to DE Consumers in 2010

Delaware Insurance Commissioner Karen Weldin Stewart announced that the Department of Insurance was successful in a variety of actions resulting in over two millions dollars being returned to Delawareans.

They include the prosecuting of complaints on behalf of consumers, providing dispute resolution through arbitration, agency exams and refunds to policyholders who had completed an approved defensive driving course from a major insurer.

Insurers Contest Crash Tax Proposal in NY

Mayor Bloomberg’s proposal to charge between $365 and $490 to respond to auto accidents in NYC has drawn fire from insurers. “This fee will likely be difficult for many drivers to pay at a time when they are also faced with the costs and difficulties associated with being involved in an auto accident,” said Kristina Baldwin, PCI assistant vice president for state government affairs. “The fee literally and figuratively adds insult to injury.”

More NY Legislation Targets Auto Repairers The New York state legislature on January 14 saw the introduction of another piece of legislation targeting auto repairers, requesting a host of new consumer rights and disclosure requirements. Introduced by 27th District State Sen. Carl Kruger (D), S. 1949 imposes extensive new requirements on motor vehicle repair shops with respect to disclosure of labor charges on estimates and invoices, including the cost of tear down time and the use of reconditioned parts, and the right of the customer to be furnished copies of service records and purchase orders for parts.

The bill has been placed with the Transportation Committee, provides that invoices must contain the following information: ● more detailed administrative information ● subtotal prices individually listed for parts, labor and sales tax ● individual identification of all used or rebuilt parts ● actual time required to complete each operation and an explanation of how the labor charge was computed.

If flat rate time is used, the name of the labor manual used and customer is granted the right to see pages of the

DE Department of Transportation Secretary Resigns Delaware Department of Transportation Secretary Carolann Wicks has resigned her position as Cabinet Secretary effective March 18, according to the Delmarva Daily Times.

“This has been a difficult decision, but one that has been made with a clear conscience and the best interest of the department at heart.” Wicks said. “I have greatly enjoyed the many years I have served the state, the opportunities I have experienced in my years at DelDOT will always be looked upon with sincere gratitude.”

Wicks is the eighth secretary of DelDOT. She began her long career at more than 28 years ago as a civil engineer. She served in several leadership roles including the chief engineer for the department and director of Transportation Solutions.

As secretary, she was responsible for the capital program, managing statewide transit services, motor vehicle services and the maintenance and operation of 90 percent of Delaware’s transportation system. DelDOT employs over 2,600 transportation professionals to achieve these goals.

“My only regret is that I am leaving a great organization with the most hardworking, dedicated state employees. The citizens of Delaware are being well served by these many individuals, all with the goal of making

Delaware’s transportation system the best and safest for all who travel throughout our state,” she added.

During her time with the department, Wicks was selected to serve on numerous national and regional boards and committees. Recently, she served as president for the Northeast Association of State Transportation Officials, and is currently serving as chairperson on the Northeast Corridor Infrastructure and Operations Advisory Commission.

Wicks has received numerous awards: the Eugene E. Abbott Award for excellence in Transportation Planning, the department’s highest honor; AASHTO’s Alfred E. Johnson award for excellence in Engineering and Management; the Outstanding Alumnus Award and the Presidential Citation for Outstanding Achievement from the University of Delaware; and the Woman in History Award presented by the Business and Professional Women/Dover Chapter.

Additionally, she has the honor of serving as an executive board member for the Diamond State Port Authority and she is a member of the University of Delaware’s Civil Engineer Executive External Advisory Council. She also is a member of the American Association of State Highway Engineers.

10 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

Carl Kruger Arrested

Manhattan federal investigators charged state senator Carl Kruger and seven others as part of an alleged bribery scheme March 10. Among those charged were State Senator Kruger and Assemblyman William Boyland Jr., both Brooklyn Democrats. Kruger turned himself into federal authorities in Manhattan amid allegations that he was accepting money for political favors. The FBI had reportedly been investigating Kruger since 2007. The money was not reported as part of his political contributions; it was allegedly hidden away in various bank accounts.

Kruger was also charged with accepting nearly $1 million through an alleged middleman, Dr. Michael Turano of Mill Basin, Brooklyn, but Turano’s entire family is implicated, allege prosecutors.

Since the criminal complaint was filed on March 10, the New York Times has reported that Kruger funneled hundreds of thousands of dollars into a Turano son’s bank account to finance a $200,000 Bentley and pay down a $1.2 million mortgage.

The Turanos, in turn, provided the senator companionship, and prosecutors say the brothers helped conceal his payoffs.

manual used to calculate the charges ● specifically list any warrantees or guarantees provided along with all conditions and limitations of the warranty, and what procedure must be followed by the customer in order to have the warranty honored. All conditions and limitations must also be listed. ● indicate any repairs or services provided that deviate from the repair or service schedule in the owner's manual. ● a sign on display in the shop, in two inch letters, stating that customer has the right to the above mentioned detailed invoice, warranty specifics, copies of service records, parts purchase orders and any other documents required by the Commissioner.

No action has been taken on the bill and no committee hearing has been scheduled.

See ajacent story for recent news on Sen. Carl Kruger.

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AASP of Pennsylvania is Newest SCRS Affiliate The Society of Collision Repair Specialists (SCRS) proudly announces the addition of its newest Affiliate Association, the Alliance of Auto Service Providers of Pennsylvania (AASP-PA).

Based in Harrisburg, Pennsylvania, AASP-PA is a collision repair association with chapters across Pennsylvania. They are aligned with, as are a number of other SCRS affiliates, the national Alliance of Automotive Service Providers (AASP).

AASP-PA consists of three divisions-collision repair, mechanical and towing. The collision repair division gravitated toward SCRS as

part of their ongoing efforts to find ways to add value to membership, as well as being driven by their mandate to forge strategic alliances to strengthen the industry.

“SCRS has a national point of view containing many useful insights into the issues affecting collision repairers, and they have a record of being very active on behalf of the industry,” explains AASP-PA Executive Director Jerry Schantz. “Our decision to affiliate was based on the fact that our two organizations are looking for the same changes to help our collision members and make our profession stronger. By working more closely

with SCRS it will be easier for our members to stay in touch with what’s happening in the industry, which in turn will help them adapt to what’s coming down the road.”

AASP-PA is a long-standing institution in the state of Pennsylvania, with roots dating back to the mid-1950s.

“Their collective experience, historical perspective and influence are characteristics we can certainly leverage to the benefit of our members,” says SCRS Chairman Barry Dorn. “In addition, our partnership will help us extend the voice, size and scope of the industry in the areas they serve.”

Conn. Association Pivots on Total-Loss Bill

The Auto Body Association of Connecticut (ABAC) has gone from supporting a legislative measure to change how total-loss settlements are calculated in the state to “vehemently opposing it,” according to the association’s legislative director Bill Romaniello, the owner of All Pro Collision Repair in Plantsville, Connecticut.

House Bill 5444 was originally introduced, and supported by the ABAC, to ban insurers from utilizing the proprietary total-loss valuation services developed by the major estimating system providers, services that the ABAC believes artificially suppress total loss values.

However, the latest version of the bill not only removes the ban, but also removes the requirement to use the NADA guidebook as a second source of vehicle values. Current law allows insurers to use the total-loss values provided by companies like CCC, Audatex and Mitchell, but also requires them to average those values with the values found in the NADA book.

The ABAC supported version of the measure was seeking to restrict insurers to use only the NADA guidebook, or similar “publicly available” automobile industry sources of vehicle values.

The latest version of the measure however, only says that the, “insurer shall calculate the value of such vehicle for purposes of determining the settlement amount to be paid to the claimant.” The version has removed all references to how an insurer should calculate those values, or what sources they may or may not use, including the current requirement to consult the NADA guides.

“If this version of the bill passes, it will be like the wild west here in Connecticut,” Romaniello said. “This version leaves too much room for interpretation. Consumers will be forced to battle insurers without any reference line.” Romaniello said the association believes it is essential that the law require the use of the NADA guides.

At a committee hearing on February 10, John Parese, legal counsel for the ABAC, told lawmakers, “Consumers, auto sale businesses, auto repairers, and municipal taxing authorities all use and rely on the NADA for establishing vehicle values.

It is essentially the only source in the industry universally used and widely recognized as reliable and fair.”

Romaniello said, “With this bill, are they saying that the NADA book isn’t good enough for insurers to use, but it’s OK for the consumer to be held to NADA values to use when calculating their taxes?”

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 11

CARSTAR Pres., Dan Bailey, to Return to Own Franchise

Dan Bailey has chosen to step down from his role as president of CARSTAR Auto Body Repair Experts, the company recently announced. After more than a decade with the company and an additional 23 years spent operating a family-owned chain of collision centers, Bailey plans to take a break before returning to run his own CARSTAR franchise. He will continue to serve on the Mitchell Advisory Board, the CCC Advisory Board, as a national judge for Skills USA-VICA, and as a CIC participant. No replacement is planned for Bailey’s position, which he will leave in the coming months. Stacy Bartnik will assume full responsibility of franchise services.

CARSTAR new hires will allow CEO Dick Cross to handle Bailey’s other duties. Those hires are Cecil Johnson, who will serve as franchise development executive, and Brad Rein, the new chief information officer. They will help guide a number of corporate improvements being made at CARSTAR, the company said. It has revamped its Business Group Program, restructured its franchise development process and plans to launch a new proprietary management system in its stores later this year.

NY Cell Phone Law Could Affect Insurance Prices A new law in New York may affect the cost of automobile insurance.

The Department of Motor Vehicle added changes to an already in effect law that was established in 2001 regarding talking on your cell phone while driving. Previously drivers who were caught talking on the phone while driving were eligible to be charged up to a $100 fine. The new changes to this law also now makes it so that violators will get two points added onto their record.

This two points is the lowest increment on the state’s drivers violation point system and is by far no guarantee that a motorists insurance premium will rise, however, it is a factor. If it is a drivers first violation most likely it will not affect their insurance at all, however, if a driver already had multiple infractions this two points could be what sends them over the edge.

Michael Barry, vice president of media relations for the Insurance Information Institute said, “It is difficult to quantify whether the state’s new rules—adding two points to the license of a driver convicted of driving while talking on a cell phone— will raise anyone’s rates … Auto insurers examine dozens of variables when assessing risk.”

ASA & AAM Continue Opposition to Right to Repair, Claiming Information is Available Already The Alliance of Automobile Manufacturers (AAM) and the Automotive Service Association (ASA) sponsored a training program for independent repair shop technicians in Queens in early December, 2010.

It was held in conjunction with the Greater New York Automobile Dealers Association (GNYADA), State Senator Jose Peralta (D-Queens), Chair of the Senate Consumer Protection Committee, and Assemblywoman Audrey Pheffer (D-Queens), Chair of the Assembly Consumer Affairs and Protection Committee. The event was held at GNYADA’s Center for Automotive Education and Training.

The Alliance and ASA, along with Sen. Peralta and Assemblywoman Pheffer, say they are working to ensure that independent repair shops have the training needed to repair today’s vehicles and satisfy consumers without right to repair.

“Automakers are committed to making sure that independent repair shops have all the information they need to be able to repair any vehicle,” said Matthew Godlewski, Vice President of State Affairs for the Alliance.

“We know that more than 75 percent of post-warranty vehicle repairs are performed by independent repair shops,

In NJ, Clean Snow Off or Else You Could be Cited

In New Jersey police can ticket any driver they spot who hasn’t cleared snow and ice from a vehicle—and they’re doing just that.

The law went in to effect in October and, after a grace period, more than 1800 citations were issued statewide in December and January.

“We are clamping down, the police are out there. We’re taking it seriously because there’s a serious problem,” said Sgt. Brian Polite of the NJ State Police.

Polite says fines range from $25 to $75 but can go much higher if flying snow causes injury or damage.

“I’ve personally experienced the snow coming at me so they have to do what they have to do, it’s for everyone’s safety,” said truck driver Victor Pedrosa. Some drivers don’t agree.

“I think it’s ridiculous only because sometimes you might not have time to clean off the snow,” said Shalona Covington of Crosswicks.

It’s one thing to clean off a car, but truck drivers say it’s not so easy to clean snow and ice from a big rig.

“It’s real hard to get up on top of the trailer and get it off,” said truck driver Keith Zimmerman.

“You’d wind up killing yourself going on top of the roof.”

12 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

and it’s in our industry’s best interest that consumers bringing our products to those repair shops have good experiences.”

Technicians representing nearly one dozen different New York area independent repair shops attended the free training program, which was led

by Donny Seyfer, General Director of the Automotive Service Association (ASA).

“Our industry has made great strides with a voluntary solution to information availability concerns.

These include training programs like the event in Queens, as well as other education initiatives across the country,” said Ron Pyle, President of the Automotive Service Association. “In addition, repairers have access to the National Automotive Service Task Force (NASTF) to assist with information availability issues. NASTF has been an asset to independent repairers and has a great future.”

“Automakers are committed to making available all of the information necessary for independent repair shops to repair vehicles,” Godlewski said.

“We don’t want, however, a government mandate that sounds good on the surface, but is actually an invitation for

litigation to get at automaker’s intellectual property.

“The Alliance is very grateful to Sen. Peralta and Assemblywoman Pheffer for their cosponsorship of this training program, and for their continued commitment to work with automakers, dealers and repair shops to ensure that the needs of consumers are met,” Godlewski said.

“In addition to the adverse impact ‘right to repair’ legislation would have on automakers, there are concerns for consumers,” said Godlewski.

“The way it’s written now, it would require automakers to release sensitive vehicle security information, such as key codes and engine immobilizer override information. This will compromise vehicle security systems and jeopardizing consumers’ anti-theft insurance discounts.

“Automakers continue to stand ready to work with New York State leaders to ensure that independent repair shops are able to serve auto consumers. We will continue, however, to oppose any legislation with hidden agendas that do not actually serve the driving public’s interest,” Godlewski said.

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NJ Commissioner Stresses Need for Standards for Insurance Regulation New Jersey Insurance and Banking Commissioner Thomas Considine said without uniform national standards for insurance regulations, the industry will “continue to lobby, and lobby effectively, I believe, for federal regulation”, according to reports made

by Insurance News Net. Considine said New Jersey signed on to join the Interstate Product Regulation Commission to help state insurance regulators develop national standards for asset protection insurance products, such as life insurance, annuities, disability income and long-term care insurance. The compact also provides a central point for digital filing capability according to reports made by BestWire.

Without standards, Considine said regulators “lose a strong argument in favor of state-based regulation.”

He said it’s important for New Jersey to be part of the compact because with the size of its insurance market, it didn’t make sense to avoid being a part of the effort to formulate those national standards.

Considine discussed a number of issues facing the state, including its effort to reform its automobile insurance system.

Among the changes made to the system was to do away with a program that used subsidies to balance auto insurance rates across separate rating territories.

That program, called Territorial Rating Equalization Exchange (TREE), was part of sweeping auto reform efforts that have been largely credited with creating a more competitive market in the Garden State.

TREE was designed to create a mechanism under which policies written for drivers in high-cost areas would be subsidized from a pool created by a fee assessed on all policies.

But it was the subject of litigation filed by a major state-based carrier and industry trade groups, according to reports made by BestWire.

Calling that program the equivalent of “killing a mosquito with a nuclear bomb,” Considine said the program was implemented as a result of a drop in the number of policies that

were issued in New Jersey, which he attributed to the “cyclical” effects of the economic downturn of 2008 and 2009. Considine said he and his staff studied the program “thoroughly” and decided it wasn’t worth continuing.

“But that doesn’t in any way, shape or form mean we’re going to take our eye off the ball in our critical urban markets. It just means that’s not the situation that’s called for,” Considine said.

Considine also touched on the state’s decision to move civil insurance fraud enforcement out from under the purview of the state’s Office of the Attorney General to the Department of Banking and Insurance this past summer, according to reports made by BestWire.

While Considine said it is too early to tell whether there are any trends in the enforcement and investigations that have been brought, he said it has given fraud investigators a “new lease on life” to be in a department where fraud enforcement is the top priority over a place where criminal investigations take precedence.

“They feel they are truly a part of the mission of the agency,” Considine said.

Considine also noted the state has seen a sizable uptick in the number of new insurers entering the market and has extended new lines of business to even more.

Last year, the department admitted 27 new insurers and extended new business lines to 28 carriers, marking an increase of 8% over 2009. He added that the department also recovered nearly $20.7 million for consumers and medical providers during the same period.

“Competition is a good thing.

We’re a very, very market-driven administration,” Considine said. “We believe the addition of new market entrants increases the likelihood that we’ll have additional market entrants.”

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 13

14 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

Switching to BASF Waterborne for the Green Reasons

by Ed Attanasio

As almost every body shop manager in this country knows, waterborne paint is a proven commodity in the collision repair industry and shops outside of California are gradually but decidedly heading in that direction. As federal regulations and air quality management agencies apply pressure designed to nudge more states towards lower VOCs, some body shops in parts of the country will undoubtedly resist change, while others will embrace it for its wide range of benefits.

Some multiple shop operators doing business in California have been able to leverage their experience in California to adopt waterborne elsewhere across the country.

For example, Sterling Autobody Centers announced last year that they have implemented waterborne network-wide, but that is not yet the norm. So it’s interesting that a large New Jersey collision facility went to waterborne recently not because the laws mandated the conversion, but because they wanted to take the high road in being green and helping both their employees and the environment.

They’re hoping that it will lead to more business, additional DRPs and an enhanced overall reputation throughout their communityKeith Holloway is the body shop manager at DCH Brunswick Toyota Collision Center in Brunswick, New Jersey, where he oversees the operation of a 43,000 square foot collision center and supervises 35 employees as they fix 230-250 vehicles per month, he said.

After DCH Brunswick Toyota Collision Center’s contract with another paint company’s solvent product last year, BASF’s eco-friendly Onyx HD waterborne basecoat system won out over several competing paint lines.

“We did some extensive research and BASF’s Onyx HD waterborne basecoat had the best performance and overall value for us. We took paint proposals from five different vendors, but BASF stood out because in the end they offered the best product and service package. We went with BASF because we thought they would help us grow, and we also learned that the Onyx HD waterborne basecoat system is compliant with the EPA regulations and the laws that are coming out in 2011 and 2012. That was definitely something we wanted to work toward, so that’s why we signed with the company.”

Holloway values BASF’s support and education. “We’ve been very impressed by their service and follow-

SHOP & PRODUCT SHOWCASE DCH Toyota Brunswick Collision Center Location: North Brunswick, NJ

Telephone: 888-512-7805 www.dchbrunswicktoyota.com Company At A Glance...

Type: Collision Repair

Facility Employees: 35

In Business Since: 2000 DRP Programs: Two

Number of Locations: One

Combined Production Space: 43,000 square feet

Keith Holloway, the new body shop manager at DCH Collision Center in Brunswick, NJ, was on the team that converted his shop to BASF’s eco-friendly Onyx HD waterborne basecoat system

through. We’re still testing our waterborne and tweaking the way we’re using it, and BASF has been by our side every step of the way. The paint is good, there’s no doubt. But what’s really pleased us the most is the support they’ve provided, especially from our BASF Business Development Manager Kent Leonard and Tom Smetanka, our jobber with Central Paint in Trenton, New Jersey.”

It wasn’t an easy conversion from solvent to waterborne, Holloway admitted, but in the end it’s paying off. “We’re still in the process to determine how compatible our production process is with the BASF waterborne product, and so far it’s doing a very good job for us. It did take us 6-8 weeks to get our staff up to speed with this product, and our painters did have to go to BASF’s training center in Maryland so they could get acclimated to the product and learn all of the do’s and don’t’s of working with it.”

Learning BASF’s waterborne system wasn’t a no-brainer, Holloway said. “It’s quite a bit different and the painters have to slow down to take their time with this waterborne. The paint is not as fast-acting as solvent, and I’m not going to tell you that it was easy. BASF has a great product and the process of applying it took us a while to get up to speed, but we’re now running very efficiently with the waterborne product.”

The federal requirements are going to get tougher in March, because certain high VOC products will be banned from use in body shops nationwide, Holloway explained. Paint technicians are going to have to get

more certifications for completing the proper courses to satisfy the federal mandates.

“Body shops nationwide will have to go through EPA inspections to show that what we’re sending out into the air is not going to hurt the environment,” Holloway said. “The process started one-and-a-half years ago when the EPA started sending out notices and informing shops that that things were going to start changing this March, little by little.”The state laws in New Jersey aren’t mandating the use of waterborne paint (yet), but Holloway is already reading the writing, or painting in this case, on the wall.

“They’re not forcing shops to do it yet, but we want to be ahead of the game when it goes into effect in 2012.

We want to be an innovator in this industry and be able to offer the public and the insurance companies something many shops can’t offer them right now, which is the benefits of waterborne paint. Going green and giving something back to help the planet; those are things we want to be involved in.”

Has Holloway seen evidence that converting to BASF waterborne will eventually help the bottom line at DCH Brunswick, Toyota? “The word is definitely out that we’re now offering something different, which positions us in a better light with consumers.

We feature it in our advertising, but people in this area don’t really understand it completely yet. It’s about educating everyone about this product.

Once they know the all the benefits of waterborne, it will gain momentum here, I believe.”

The DCH Collision Center paints 230-250 vehicles during an average month

The DCH Collision Center has reported top-notch color matching since they adopted BASF’s ecofriendly Onyx HD waterborne basecoat system

BASF Company Contact: David Brez Strategic Initiatives Manager Phone: 951-315-1395 (Mobile) email: david.brez@basf.com website: www.basfrefinish.com

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 15

Pennsylvania State Legislator Reintroduces Teen Driving Bill

For the second time in about a month, a Pennsylvania lawmaker has reintroduced a proposal in the state House that would update teen driver laws, according to the Harrisburg Mercury.

“Sadly, we cannot save every teenager from being hurt or killed in a vehicle crash, but we can improve the chances that they, their passengers and other motorists are safe, just by updating our state’s graduated driver licensing law,” state Rep. Kathy Watson, R-144th Dist., said March 1 as she unveiled her latest proposal at the state Capitol.

Watson’s House Bill 9 would expand training requirements before a teenager could take a test for his or her license, specifically increasing behind-the-wheel training from the current 50 hours to 65 hours. Ten of those hours must be at night and five of those would have to be during inclement weather, according to the proposal.

House Bill 9 also would limit the number of teen passengers to one in a vehicle operated by the holder of a junior driver’s license, those ages 16

½ to 18, with exceptions for family members.

“From a variety of transportation safety experts and medical professionals, we’ve learned that the greatest chance of crashing occurs in the first six months after licensure and that inexperience and distractions are the two greatest risks when teen drivers are behind the wheel,” said Watson, who chairs the House Transportation Committee’s Transportation Safety Subcommittee.

According to one AAA study cited by Watson, the chances a 16year-old will die in a crash increase 39 percent with one teen passenger; 86 percent with two teen passengers; and 182 percent with three or more teen passengers.

Watson’s bill would make it a primary offense for any person to drive a vehicle with a passenger under 18 who is not wearing a seatbelt. The bill would make a violation of the state’s current booster seat law a primary offense as well.

“We must ensure that everyone under the age of 18 in the vehicle is

Pennsylvania Ponders Election for Insurance Commissioner

A bill that would make the Pennsylvania insurance commissioner an elected position has been introduced in the state’s House of Representatives, according to reports made by Insurance Journal.

Legislation sponsored by Rep Neal Goodman, a Democrat from Mahanoy City, would change the insurance commissioner’s job from an appointed position.

Goodman’s proposal limits an elected commissioner to holding no more than two consecutive, four-year terms.

It also prevents a commissioner from holding a position with an insurance company within four years of leaving office.

“I strongly believe that because of the important responsibilities and duties given to the insurance commissioner, the citizens of Pennsylvania should ultimately choose who is placed in this position,” Goodman said in a legislative memorandum about the proposal.

The legislation, House bill 941, is a slightly modified version of a sim-

ilar bill introduced during the previous legislative session.

The bill — along with a resolution requiring the legislative budget and finance committee to study the financial impact of electing a commissioner — have been referred the insurance committee.

Pennsylvania is not the only state where lawmakers are weighing whether to make the commissioner an elected position.

In nearby Connecticut — where former Commissioner Thomas Sullivan was heavily criticized for approving significant health insurance rate hikes — legislation has also been introduced to make the commissioner’s job an elected one.

The proposal, by Rep. Andrew Fleischman, a Democrat from West Hartford, was introduced in late January.

Only 11 states elect their commissioners. In most cases, chief insurance regulators are appointed either directly by a state’s governor or group controlled by a governor.

16 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

properly buckled up and that a police officer can pull that car over if a minor isn’t properly restrained, whether in the front seat, back seat or in a booster seat for ages 7 and younger,” said Watson, whose district covers Bucks County.

The renewed effort marks the fourth legislative session in a row that Watson has submitted such a proposal.

The bill was referred to the House Transportation Committee for review. Before it is considered for a vote before the full House, the bill could be subject to hearings in the committee.

Watson, citing Pennsylvania Department of Transportation statistics, said fatalities in crashes involving 16or 17-year-old drivers increased from 40 in 2009 to 57 in 2010, a 43 percent increase.

Watson, who was joined at the news conference by physicians and transportation safety experts who support the proposal, said the legislation is not intended to replace good parenting.

“Parents with teen drivers know the facts and they know that inexperi-

ence and distractions can be deadly.

This legislation is designed to help parents and to support them so that when they tell their teens they can’t take a carload of kids to the away basketball game or homecoming dance, there are real consequences,” Watson said.

Watson’s proposal, which primarily deals with updating the state’s graduated driver licensing law, comes on the heels of another proposal, House Bill 330, which deals primarily with distracted driver issues and was introduced in January by state Rep. Josh Shapiro, D-153rd Dist.

Under Shapiro’s distracted driving proposal, those drivers under 18 would not be permitted to use a handheld or hands-free cell phone and would be prohibited from text messaging.

Adult drivers would be prohibited from using hand-held devices and text messaging but could use a cell phone if a hands-free device was used.

A violation of the proposed law would be considered a primary ofSee PA Teens, Page 17

PA High Schools to Compete in Engine Build Competition in Carlisle

Between August and June annually, high school students practice and prepare for the big game or the next challenge in their academic careers. For a select group of teams, their road to the championship passes through the Carlisle PA Fairgrounds, June 24th26th.

In conjunction with the 2011 Carlisle GM Nationals, the Hot Rodders of Tomorrow engine building competition will take place at the fairgrounds, making Carlisle one of six regional qualifying locations.

Regional winners plus two nonwinning top time “wild cards” will advance to compete in the championships, November 1st-4th at the SEMA show in Las Vegas, Nevada.

Along with being dubbed “champion,” these student engine builders are eligible for prizes, sponsorships and support from select companies as well as scholarship money to aid in future education and training.

In 2010 more than $600,000 in scholarship money was awarded and 2011 expects to match or exceed that total.

Thus far, monetary commitments have been made by the University of Northwest Ohio, Ohio Technical College and SAM, the School of Automotive Machinists, located in Houston, Texas.

The Hot Rodders of Tomorrow Engine Challenge began in 2008 with

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just five schools as an exhibition and has grown into a national competition for high school students.

In 2011, more than 50 teams will compete nationwide. The event serves as a forum for the future development of today’s youth for the race and performance industry.

During each regional qualifying competition, students must properly disassemble small block Chevy engines using only hand tools and follow proper disassembly and reassembly procedures.

This is a competition against the clock, so time added penalties may be issued. For specific rules and regulations visit the Hot Rodders of Tomorrow online (www.hotroddersoftomorrow.com).

“Hosting a regional event for the Hot Rodders of Tomorrow is one way we can foster the growth of the hobby and the industry,” said Event Manager Rick Marko.

“This competition encourages kids with automotive interests to pursue a career in the automotive world and with the scholarships that are

made available; it insures an education and an opportunity to follow that dream.”

In selecting the Carlisle GM Nationals as a regional qualifier, the Hot Rodders of Tomorrow has partnered with one of the most diverse All-GM events in the world.

Over 1,400 vehicles from all eras are showcased yearly in Carlisle and offer the opportunity for not only Showfield competition, but also to meet like-minded enthusiasts of chrome classics, muscle cars, street rods, modified customs and high-performance models.

Whether you spend a few hours or the entire weekend in Carlisle, you will enjoy special vehicle displays that are second to none.

Continued from Page 16

laws overall and only 3 ½ of the 7 laws it proposes for safe teen driving.

Pennsylvania received an overall “Danger” rating, the group finding that the “state falls dangerously behind” in adoption of the basic lifesaving laws.

PA Teens

fense, meaning police could stop a person for that violation alone.

When the Legislature failed to pass previous distracted and teen driving proposals, specifically House Bills 67 and 2070, by the end of the last session in December, some legislators vowed to continue the fight when the new session convened in January.

Watson and Shapiro each claimed their bills have widespread bipartisan support.

The proposals come just weeks after Pennsylvania received a failing grade for driving safety legislation from a national safe driving advocacy group (see page 6).

Advocates for Highway and Auto Safety ranked Pennsylvania as one of the seven worst performing states when it comes to the adoption of 15 overall basic laws the group believes are essential to reducing deaths and injuries on the nation’s highways and reducing health care costs.

The group determined that Pennsylvania, through 2010, enacted only 6 ½ of 15 basic safe driving

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DelDOT Says DMV Wait Times Improving

While complaints about long lines at the DMV may never come to an end, the state Department of Transportation says things are improving.

The average wait for a driver license and ID card is about 37 minutes in New Castle. The average wait is 20 minutes or less in Dover, Georgetown and greater Wilmington. The current wait for a vehicle titling and registration is eight minutes except at the greater Wilmington DMV, where the wait time is about 12 minutes on average.

DMV Director Jennifer Cohan said, “We are proposing two new policy changes that will respect the division’s safety and security missions, while improving overall operations.”

Please visit dmv.de.gov for more information.

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 17

New York Gov.’s Budget Details Banking, Insurance Regulation Merger

New York Gov. Andrew Cuomo’s proposed state budget contains slightly more money for the new agency he wants to create by combining existing banking and insurance regulatory departments than they now get, according to Insurance Journal.

Cuomo’s proposed 2011-2012 budget recommends $564 million for the new Department of Financial Regulation, reflecting a net increase of approximately $6.4 million over the combined 2010-11 budgets of the banking and insurance departments.

The new DFR would consolidate the functions, operations and staff of the banking and insurance departments, along with related segments of the Consumer Protection Board.

The funding increase reflects expenses related to the consolidation plus some additional resources to allow the DFR to perform more onsite examinations of insurance companies, which the budget projects will result in savings to the insurance industry by reducing direct-pay examinations that insurers currently pay outside vendors to do.

The DFR’s operations will be primarily funded through assessments charged to regulated insurance and banking institutions and organizations. The remainder of the operating budget will be derived from licensing and other fees.

Of the recommended $564 million, the department’s operating budget totals $550 million while the remaining $14 million is an appropriation for the State Transmitter of Money Insurance Fund, which protects funds that New Yorkers electronically transfer via commercial third parties.

“This consolidation satisfies the dual public policy objectives of better serving the consumers, businesses and investors in the state and making government more cost-effective,” the Cuomo Administration says in supporting documents.

The administration says that all of the existing supervisory, regulatory and enforcement powers contained within the state’s banking and insurance laws will remain intact.

A new Superintendent of Financial Regulation will assume the responsibilities of the superintendents of the banking and insurance departments, as well as expanded responsibilities for consumer and investor protection over financial products, services and transactions. The superintendent also will administer a newly-created Financial Frauds and Consumer Protection Unit (FFCPU), which is supposed to be a central repository for consumer financial complaints.

This unit will have “broad authority to investigate activities that may constitute financial fraud or misconduct,” including the authority to impose civil penalties and recover restitution for consumers who are harmed by financial frauds.

Under Cuomo’s proposal, the superintendent will be someone appointed by the governor, with the consent of the Senate.

DFR’s main offices will be located in Albany and New York City with smaller offices located throughout the state.

Cuomo first proposed the DFR in his State of the Union message in January. In the speech, Cuomo said that the current state bureaucracy is ill-structured to police Wall Street and a changing financial services industry.

“Our current organization is not effective because it is not organized the way Wall Street works any more,” Cuomo said. “These divisions of insurance and banking and consumer protection don’t exist in the marketplace and much of the activity is

falling between the cracks of our regulatory entities.”

He said combining the agencies will improve their ability to protect consumers while also reducing administrative costs.

A key trade group for insurers has said it supports the attempt to reduce costs.

“We applaud Governor Cuomo for his efforts to reduce state spending,” said Ellen Melchionni, president of the New York Insurance Association (NYIA). “Since the insurance and banking departments are funded by the respective industries these entities regulate, we look forward to a reduction in the assessments levied on New York businesses.”

The banking and insurance consolidation is one of several proposed

by Cuomo. The governor has proposed to merge or consolidate 11 separate state entities into four agencies.

In addition to his proposal to merge banking, insurance and consumer protection into DFR, he is also asking lawmakers to approve the merging of the Department of Correctional Serv-

Connecticut Set to Begin Final Distracted Driving Enforcement Campaign The fourth and final wave of the “Phone in one hand. Ticket in the other.” pilot campaign to test the effectiveness of high-visibility enforcement for distracted driving will begin this weekend in Hartford, Connecticut, running from February 26th through March 4th, according to reports made by Consumer Reports.

The program funded by the Department of Transportation started last spring in Hartford, as well as in Syracuse, NY, to test whether increased law enforcement and public advertising will help deter drivers from talking, texting, or checking email with a handheld cell phone when behind the wheel.

The previous three waves resulted in over 7,200 tickets given out for handheld cell phone use and texting in Hartford.

Syracuse police wrote up 6,600 tickets. After the first two waves, handheld cell phone use dropped 56

percent in Hartford and 38 percent in Syracuse.

Texting while driving was reduced by 68 percent in Hartford and 42 percent in Syracuse.

The final Syracuse wave will occur April 7-16th.

Drivers heading through the Hartford or Syracuse areas on those dates will need to be aware that police will be out in force ticketing drivers for using cell phones behind the wheel.

Currently, nine states, plus the District of Columbia ban handheld cell phone use and 30 states plus the District of Columbia ban texting behind the wheel.

In order for a national enforcement program to go in effect, all states will need to enact bans, but the results from this pilot will help to provide best practices for police to ticket these offenses and to educate other states or cities to enact their own campaigns.

18 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

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ices and the Division of Parole into a new Department of Corrections and Community Supervision; consolidating the Office for the Prevention of Domestic Violence, the Office of Victim Services and the State Commission of Correction into the Division of Criminal Justice Services; and consolidating the New York State Foundation for Science, Technology and Innovation into the Empire State Development Corp.

“New York is at a crossroads, and we must seize this opportunity, make hard choices and set our state on a new path toward prosperity,” Cuomo said in announcing his budget.

“We simply cannot afford to keep spending at our current rate. Just like New York’s families and businesses have had to do, New York State must face economic reality. This budget achieves real, year-to-year savings while restructuring the way we manage our state government. This is the first step toward building a new New York.”

Cuomo said his proposed 20112012 budget eliminates a $10 billion deficit without raising taxes or borrowing.

Assembly Approves 3 Bills Regarding EVs in New Jersey

A three-bill package designed to promote the buying of electric vehicles

by New Jersey residents and businesses through tax credits was approved February 17 by the Assembly, according to reports made by Newsroom New Jersey.

The package sponsored by nine Assembly Democrats comes shortly after President Barack Obama, in his State of the Union address, pledged to work to put a million advanced technology vehicles such as electric cars and hybrids on American roads by 2015.

The bills would: ● Provide a corporation business tax credit or a gross income tax deduction for the purchase and installation of electric vehicle charging stations (A-3650). The proposal was approved 46-18-13. ● Provide a corporation business tax credit or a gross income tax deduction for the purchase of an electric vehicle or plug-in hybrid electric vehicle and a corporation business tax credit for the purchase of an electric truck or electric bus (A-3651). The

bill was approved 46-18-13. ● Urge Congress and Obama to provide financial support and other incentives to the states to promote and incentivize the purchase of electric and hybrid electric automobiles (AR133). The measure was approved 5317-7.

“It’s clear that electric cars can play a lead role in tackling some of our biggest concerns, whether it be our reliance on foreign oil or environmental and health concerns,” Assemblywoman Connie Wagner (D-Bergen). “These bills will help steer New Jersey in the right direction.”

“We should be supporting cleaner energy alternatives such as electric vehicles to invest in our future,” Assemblyman Daniel R. Benson (D-Mercer) said. “It will mean a cleaner environment, a stronger economy and job creation for our residents.”

Wagner and Benson are joined in the sponsorship of the package by Assembly members Craig J. Coughlin (D-Middlesex), Angel Fuentes (D-

Camden), Valerie Vainieri Huttle (D-Bergen), Wayne DeAngelo (DMercer), Kevin J. Ryan (D-Essex), Gilbert “Whip” Wilson (D-Camden) and Majority Leader Joseph Cryan (D-Union).

New Jersey Body Shop Owner Sentenced for $52K Scam A New Jersey body shop owner has pleaded guilty to defrauding insurers of nearly $52,000 by submitting fake invoices for repair parts, according to Claims Journal.

Prosecutors say Divyakant Patel, owner of J&R Body Masters in Perth Amboy, admitted to including fraudulent invoices in bills his body shop sent to insurers from Nov. 2006 through May 2010. The insurance companies defrauded were Enterprise Rent-A-Car, High Point Insurance, Liberty Mutual, 21st Century Insurance, NJ Manufacturers, GEICO, Allstate, SIA, Mercury, Progressive, Palisades, Ameriprise/IDS Property and Casualty, Met Life and Hanover Insurance. Patel was sentenced to five years probation, has to pay a $51,946 fine and serve 100 hours of community service.

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 19

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Autobody News

April 2011

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com

A Quick Diagnostic Can Seem too Good to be True with Gonzo Weaver

Before my father passed away we spent several years under the hood of cars working together at my shop. He was an old school repair guy. Always looking out for the customer, and wanting to do that little bit extra for them. You know, adjust that crooked license plate, grease the door hinges before they pulled away from the shop, that kind of thing.

I usually did the diagnostic work, and he would stick with the mechanical repairs. But most of the time his favorite thing to do was to entertain the customer while I figured out the problem.

The one thing that would give him fits was the way a customer would react after I diagnosed the problem, especially if I diagnosed it quickly.

A quick diagnostic might be fine for some people, but others it was more of a matter of pride that their “regular” mechanic hadn’t found it so quickly, or that the customer themselves didn’t find it so easily. It didn’t set well with them.

I got the impression that a quick diagnosis led to some sort of mistrust with my abilities, or that I didn’t thoroughly examine the problem to their satisfaction. A lot of times it had more to do with the previous technician taking so much time and not coming up with an answer, so they think it can’t be that simple.

Dad had his own answer for it.

He was going to get one of those alu-

minum foil fire suits, a couple of tall curtains on moveable stands, a disco ball, and some strobe lights. His idea was to pull the car into this “special” diagnostic area turn on the strobe lights and hang the disco ball over the car. Stick the suit on and make some comment like, “I’m going in…” and then let the light show begin. After a few minutes, come out from behind the curtain wall, whip off the aluminum fire suit hood and say something like, “Whoo that was a tough one.” Maybe then, these types of people would be more likely to believe the results of a quick diagnosis.

We never tried it, but I think about doing it from time to time.

With the advent of the scanners to read and show detailed parameters diagnosing has taken on a whole new approach.

A lot of problems are a matter of following the diagnostic tree correctly to get to the source of the problem.

(Codes don’t fix cars… codes are the starting point) Sometimes it’s a quick trip on the diagnostic ladder, and other times it’s quite lengthy. It really depends on the problem, of course.

Trying to be quick and on the right track with every diagnosis is what makes the money in the shop.

Stalling the results just for the sake of making it look like it was an extensive search to find the problem doesn’t make a lot of sense to me.

Then on the other hand, I sometimes believe this is one of the many

reasons why a doctor has you wait so long for his 10 minutes of time. Even though he may have walked into the exam room, looked at the chart, took some quick looks at you, and back out of the exam room in less than 10 minutes, I’ll guarantee his bill isn’t going to show a 10 minute charge on it.

But, in my business, time is money… and most customers are watching the clock.

Back in the days when my father and I worked together, he came across an old Bosch injector tester for the early K and L injection systems. The old tester was done for. Not only was it dated, it had several missing connectors and the information booklet didn’t come with it.

I took it apart and rewired it as a large volt meter, with a lighted buzzer attached to a separate set of wires. We then rigged up a swinging arm mounted to the wall out of PVC pipe. The pipe contained the wires to the tester that we mounted on the wall. It was more for decoration than usable, but it was kinda cool in its own funky way.

Anytime we got one of those “lookylews” (one of my dad’s favorite words), you know the type, the kind that has to hover over the hood while you’re working on it. Dad would motion to me to wire up the buzzer to the battery, and use it as a way to find the draw or short in the car.

His job was to entertain, while I looked for the problem. Most of the

time, I’d study the wiring diagrams, determine the most likely spot for the problem, and find the solution. As I would get close to the problem I would intentionally ground out the buzzer on the wall, and it would make a horrible noise.

Dad would make a comment to the customer as to what was going on.

His old school charm was what made the difference. At times this whole thing would get quite humorous. I’d be lying under the dash zapping the buzzer and good old dad would be working his magic with his broad smile, and his quirky sense of humor.

These days the electronic scanners have somewhat evened the playing field. To some degree the abilities of a good tech are now wrapped up in a good quality diagnostic machine.

But it still takes a good tech to understand it, and evaluate the information he/she sees on the screen.

I still try to diagnose things as fast and accurately as I can. I don’t have the old buzzer, or my dad’s inventive conversations with the customers to help me with the diagnostics. It’s a memory I’ll never forget. But, I’ll always keep in mind some of those lessons from my father… “Take your time son, you’re good… but they (the customer) don’t know how good you are… so you’ll have to prove it to them each and every time.”

Old school wisdom is still important, and fatherly advice is some of the best

ABRA Auto Body & Glass Announces New VP of Auto Glass Division

ABRA Auto Body & Glass, based in Minneapolis, announced that Jim Richardson has been named Vice President of ABRA Glass.

Richardson will play an instrumental role in meeting growth objec-

tives in the auto glass division.

Richardson was most recently employed with PPG Industries. During his tenure with PPG he served as Director of Sales, Director of Alliance Programs and Business Development

20 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

and most recently, Segment Manager in their Architectural Coatings Division where he was responsible for strategic planning, revenue contribution and resource utilization management.

“Jim will fill a key strategic position for ABRA. His depth of knowledge... and experience as a Six Sigma Black Belt will be a positive contribution,” said Scott Krohn, ABRA’s Executive Vice President of Operations.

Wade Ford Atlanta Chooses an Alternative Diagnostic Solution Automobiles today are sophisticated and are controlled by a series of internal computer systems, which means the diagnostics require specific software and hardware.

On top of that the basic service environments have not changed. They are still fraught with grime and potential hazards that could damage the diagnostic equipment. We now need digital diagnostics equipment that will withstand these normal daily service bay environmental issues and today ruggedized notebook computers fill that bill very well.

That is one of the reasons Wade Ford of Atlanta, Georgia decided to switch from PDAs to ruggedized laptops for diagnostic and reprogramming purposes.

Ford no longer supported the PDA application, so Wade needed new durable notebooks to connect to the cars.

“The reason we needed a rugged notebook was because of the environment they are used in—where the technicians are using them is an open environment. They really just need to

be able to be bumped around and not go down,” said Dave Tackett, Controller of Wade Ford.

Initially, the only solution Ford provided was Panasonic Toughbooks.

Despite Toughbook’s excellent reputation, Wade Ford felt that the product was too pricey for them.

So Tackett researched alternatives online and talked to others in the field before finding the Eagle rugged series from a 10-year old established provider of rugged portable devices called Rugged Notebooks.com.

“I knew there had to be other rugged notebooks out there besides the Toughbook. I had heard of Dell having one, but again it was too expensive. Rugged Notebooks’ Eagle pretty much fit the bill for what I needed. For the price of one Toughbook, I could get two Eagles!”

Of course ruggedness and price were important factors in Wade Ford’s decision to choose an alternative solution, but the ability to run Ford’s proprietary software program was also a primary concern.

With Rugged Notebooks Eagle,

the technicians were able to easily install the software, and Tackett simply made sure it was connected to their in-house system.

“We have to connect two vehicles through a Ford proprietary link and all the diagnostics, all the reprogramming, goes through that connectivity. So we had to have a laptop to make the connection, but a regular laptop wasn’t going to work because the technician transfers data around.”

Tackett said there are 4000 Ford dealers in the U.S. and all using the same application. He recommends that all of them consider switching to the Eagle as a lower cost rugged solution.

“The price-point was the biggest deal, and the fact that it was rugged.

The only extra thing I purchased was the touch screens, which the technicians really seemed to like,” explained Tackett. “They like them because the screens are quite a bit bigger than they were on the Toughbooks that Ford was suggesting.”

But here is the real bottom line.

When asked how the Rugged Note-

book Eagle laptops have improved his efficiency, Tackett had this to say, “If we don’t have them, we can’t do work. That’s just about as simple as it gets.”

Progressive’s Snapshot EDR Now Available in 32 States

Progressive Insurance company annouced details about their new program called the Snapshot Discount.

The Snapshot Discount is a form of Pay-As-You-Drive insurance which gives the clients an opportunity to discount the rates of their car insurance assuming they display good driving habits. Progressive is the first auto-insurance company to introduce this concept to the market.

The Snapshot Discount device is placed in the On Board Diagnostic port usually found on the steering wheel. It works by tracking and analyzing the client’s driving routines for a period of six months.

Then it calculates the total discount earned by the client. The EDR device does not record the whereabouts of the car, or, reportedly how fast the client drives. The device is not equipped with GPS system.

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 21

Japan’s Quake, Tsunami Roils US Auto Industry as Yen surges, Autos and parts’ prices likely to climb

If there was ever any doubt that the auto industry is now a completely global enterprise, Japan’s devastating quake, wave, and nuclear disaster is proving that no automaker can go it alone. One week after the devastating tsunami the situation is still critical and most of Japan’s huge auto industry is teetering, costing the global industry hundreds of millions of dollars. ● On Thursday, March 17, American Honda Motor Co. Executive Vice President John Mendel sent a memo to U.S. Honda and Acura dealers saying the disaster in Japan will disrupt dealer orders into May. ● General Motors’ Shreveport, La, factory, which builds the Chevrolet

Colorado and GMC Canyon pickups, closed because it ran out of a Japanese part that it did not identify. GM said March 19 it is cutting unnecessary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan. ● Toyota Motor Corp. and Subaru of Indiana Automotive Inc. slowed North American production to ration their parts. Toyota’s initial freeze in production has been extended until March 22. In an attempt to limit the financial losses that will come as a result of the production freeze, Toyota also announced its decision to resume the production of spare parts for vehicles already on the market beginning Thursday, March 17. ● Last week U.S. Customs directed all port operations to begin screening arriving Japanese sea and air cargo, including vehicles and auto parts, for radiation contamination. ● At Sonic Automotive Inc., the nation’s third-largest dealership group, Jeff Dyke, executive vice president of

22 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

retail operations, said Sonic “is prepared to supplement our new-vehicle inventory with quality nearly new used vehicles should the manufacturing disruptions interrupt new vehicle inventory supplies longer than currently anticipated.”

Automotive News Writer Lindsay Chappell reports that as Japan’s escalating disaster comes ashore in North America, automakers, suppliers and dealers are preparing for what could be unprecedented shortages of parts and vehicles. ● While Honda was the hardest hit of OEMs in Japan, more than 80% of Honda and Acura products sold in the U.S. are produced in North America, and the vast majority of automotive parts for Honda automobiles manufactured in North America are sourced in the region. ● Nissan Americas manufacturing operations plan to follow a normal production schedule for at least until Friday, March 25. The supply chain is being continuously assessed. Nissan said all North American manufactur-

ing plants will continue to operate on schedule. It does not expect any shortterm impact on sales or availability of cars and trucks. In addition, the company has a 50 days’ supply of vehicle stock in North America or already in transit from Japanese ports. ● Autoliv Inc., the world’s biggest producer of car safety products like seatbelts and airbags, said production had been halted at one of its three Japanese plants, although all the plants were undamaged. Autoliv supplies Nissan, Toyota, Mitsubishi, Honda, and Mazda. ● Mazda Motor Corporation previously announced the suspension of production at its Hiroshima and Hofu plants from the night shift on March 14, until March 21. ● Mark Fields of Ford said the company was assessing production on a day-to-day basis.

That it was GM—rather than one of the Japanese automakers, which depend on many parts from their home country—that succumbed first to the shortage shows how much the indus-

try depends on far-flung suppliers. But Toyota and Honda have shut their plants in Japan until next week as they try to repair damaged facilities, assess the state of their suppliers and determine how to restart production safely.

“The modern auto industry has never faced a natural or human calamity on the scale of today’s crisis in Japan,” Michael Robinet, the director of global production forecasts for the research firm IHS Automotive, wrote in a report.

G.M. said its assembly plant in Shreveport, La., which makes a pair of compact pickup truck models, would be closed for at least a week, starting March 21.

The company said it would resume operations there as soon as possible, but gave no estimated date for doing so.

“Like all global automakers, we will continue to follow the events in Japan closely to determine the business impact, working across the organization to maximize flexibility, supply the most critical operations and effectively manage cost,” G.M. said in a statement.

Production at Ford Motor has not been affected, but officials are still assessing the situation, Mark Fields, the president of Ford’s Americas division, said. “It’s literally an hour-by-hour, day-by-day type of thing that’s going

to unfold,” he told reporters at an event to commemorate the start of production of the new Ford Focus compact car near Detroit. “We have to first understand what is the situation there, and then we’ll determine the appropriate actions that we need to take.”

So far, all auto plants in North America have stayed open despite the troubles in Japan, although Toyota and Subaru have canceled overtime shifts to slow production and avoid depleting part inventories.

In Japan, most plants remain closed. Mitsubishi began bringing plants back up March 16, and two Nissan plants in Kyushu restarted operations on March 17, but Nissan was

uncertain whether it could keep them running for more than a few days.

Toyota has said its Japanese plants would remain closed through at least March 22.

Each lost workday for the carmakers in Japan costs them a total of about 37,000 vehicles, Mr. Robinet said. He estimated a total loss of more than 285,000 vehicles, assuming most plants can be restarted within a week.

Every automaker faces slightly different circumstances. At Volvo, for example, about 10 percent of the parts come from 33 Japanese suppliers, seven of which were in the catastrophe area, including one on the edge of the nuclear security zone.

● The invoice shall further contain a statement to the effect that complaints regarding the functional adequacy of the repair work performed may be directed to the department, but in no event later than 90 days or 3,000 miles of the repair, whichever comes first. ● The provisions of this subdivision shall not be construed to limit or abridge any statutory or other right or remedy of a consumer at law or in equity. If passed into law, will take effect January 2012.

The Property Casualty Insurers Association of America (PCI) says it wants New Jersey lawmakers to adopt legislations that would enhance fraud-fighting efforts.

The insurers’ trade group, which testified Feb. 3 in support of the bill, says the pending legislation would broaden the scope of information sharing between insurance carriers and law enforcement. It would also make “reverse rate evasion”— in which a resident registers and insures his vehicle in another state—a violation of

the “New Jersey Insurance Fraud Prevention Act,” and provides for additional antifraud measures to be added to that act.

“Insurance fraud hurts all consumers,” said Richard Stokes, PCI counsel and regional manager for New Jersey.

PCI said nearly a quarter of all questionable claims in New Jersey (23 percent) stem from faked or exaggerated injuries, the number of which doubled from 183 in 2007 to 379 in 2009, the most recent year for which complete statistics are available.

New York Invoice Disclosure Legislation Introduced

New York State Sen. Toby Ann Stavisky, D-16, introduced New York Senate Bill 1218 relating to vehicle repair shop guarantees. The bill requires that shops provide certain information regarding invoices and work guarantees. The legislation stipulates: ● The invoice provided by the motor vehicle repair shop in accordance with Subdivision 1 of the bill shall conspicuously set forth the terms and time limit of any guarantee for the repair work performed.

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 23

On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Get on the Cosmetic Car Upgrade Bandwagon with Thomas Franklin

This year many collision shop owners and managers may be heading to Las Vegas for the SEMA Show rather than to Florida for NACE. But only a few have grasped what it means to jump on the SEMA bandwagon.

In 1993, marketing authors Al Ries and Jack Trout came out with a book entitled, “The 22 Immutable Laws of Marketing.” Number one in their book is “The Law of Leadership —It’s better to be first than it is to be better.” They note that Bert Hinkler was the second person to fly the Atlantic solo. He did it faster than Charles Lindbergh, consumed less fuel and did it more efficiently, but only Lindbergh did it first and got the fame.

In collision repair, there have been many firsts. Those shops that offered waterborne paint first got the jump on the later “me too” crowd.

Now there is a new opportunity to be

first. In my area, there are only a couple of shops offering “Cosmetic Car Upgrades,” but I predict after more shop owners take a close look at SEMA, they will all jump on this highly profitable bandwagon.

Learn From the Dealerships As the profit per car sold has gradually decreased, new car dealers have had to get very creative in the ways they can make a profit.

Most dealerships have a merchandise store where they sell every imaginable accessory and restyling product. How profitable are these stores?

I attended SEMA for the first time in 2004. I read that in 2003, sales of specialty parts rose to a record $29 billion! From 2002 to 2003, the sale of vehicle body accessories increased a billion dollars, from $7.3 billion, to $8.3 billion. Audio and entertainment

component sales increased from $3.4 billion to $3.8 billion. Even wash and wax product sales increased by $200 million.

Performance tires, custom wheels and suspension and steering enhancement sales increased by nearly a billion dollars, from $6.5 to $7.2 billion.

We’re not just talking millions, here.

We’re talking about BILLIONS! This is serious money! Retail sales of these products increased more than twice as fast as the general economy.

Much of the growth came from sales of parts and accessories for sport compact cars, but there was also an explosion in the sale of everything from ten dollar vinyl flame decals to $3000 turbochargers.

Younger buyers are looking for flashy items like custom seat covers, but also performance upgrades. Not every shop owner wants to get involved in engine work, but young

buyers are looking for nitrous oxide injection systems and performance exhaust systems to dramatically boost the horsepower of their small car engines.

Nevertheless collision shops can easily offer custom wheels and tires to add uniqueness. Window tinting is big, along with chrome running boards. If the only time people are coming to a body shop is when they have an accident, the shop owner is missing out a very big piece of potential business.

Change May Be Hard What percentage of this revenue could a shop owner capture with a bit of creative marketing? And more importantly, what would it do for his or her collision repair business to get these vehicle-savvy, eager buyers visiting the shop?

See Cosmetic Upgrade, Page 29

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Global PDR Solutions & Park Place Bodywerks Hail the Hail

by Ed Attanasio

When most of us think about hail, we think of stormy weather. But in parts of the country, hail means big money for body shops. When hail-prone places like Northern Texas, Oklahoma, Nebraska, Kansas, Arkansas and Alabama, get grapefruit-sized or pebble-sized hailstones it can quickly change peoples’ lives. And it happens every year during hail season, which normally starts in March and can run all the way through October.

Park Place Bodywerks in Dallas, Texas and a growing enterprise called Global Paintless Dent Repair (PDR) Solutions (GPS) have a “stormy relationship” that is both profitable and beneficial for both parties.

According to Eric McKenzie, 36, the body shop director at Park Place Bodywerks, his shop did $1.8 million monthly in revenues without the assistance of any DRP’s. About 98% of the 500 cars that Park Place Bodywerks repairs every month are highend luxury brands that the company sells through its 12 dealerships located in the Dallas-Fort Worth Metroplex, McKenzie said.

The handful of nameplates sold and serviced by Park Place Motors reads like the best-of-the-best, including Mercedes-Benz, Lexus, Porsche, Volvo, Jaguar, Bentley, Maserati, Rolls Royce, McLaren (when it hits the U.S. in June of this year), Smart Cars and an occasional Maybach.

GPS was founded eight years ago, when three different PDR companies with more than 45 years industry experience joined forces.

After seeing drastic changes within the world of PDR and realizing that the specialty was experiencing a drop in quality and customer service, these visionaries decided to take PDR to the next level. The move paid off because, in just a short time, GPS had seen an astronomical spike in market share and growth, according to company representatives.

McKenzie initially found out about GPS by working with one of its eventual owners, Scott Dietz, more than nine years ago, he explained. “We had a major hail storm in 2003 where approximately 100,000 cars were reportedly damaged in this area. I was an assistant manager at another luxury brand dealership at that time and some of that company’s larger DRPs wanted us to try some of their approved vendors for PDR,

SHOP & PRODUCT SHOWCASE Park Place Bodywerks Location: Dallas, TX

Telephone: 214-443-8250 www.parkplace.com Company At A Glance...

Type: Collision Repair

Facility Employees: 70

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Number of Locations: One

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87,000 square feet Park Place Bodywerks works on most of the top brands, including Rolls Royce. The quality of their PDR must be exemplary each and every time

because this particular hail storm was so big. So we brought in a few companies and gave them a shot, but they basically didn’t do a very good job. There were some issues with quality, timeliness and the techs weren’t available to us all the time. They would show up on Monday, and then leave Thursday afternoon, and then we wouldn’t see them again until Tuesday morning, with cars stacked up out the doors.”

With these high-end luxury cars, customer service needs to be not just satisfactory but exemplary day after day, McKenzie stressed. “If our vendor isn’t providing top service, then we logically can’t pass it on to our customers, so it was a struggle to us. With some shops, maybe that’s okay, but with us, it has to be perfect. We gave three or four of these companies a shot, all referred by our DRPs, and we couldn’t rely on any of them.”

That’s when McKenzie first met Scott Dietz. “Scott became our go-to guy in ’03, because he was so reliable; his work was quick, accurate and phenomenal,” McKenzie said.

“He was with us through October that year and we were obviously very impressed. He even came back when stragglers came through, right up until the end of the year. After that storm, Scott and his partners started GPS and when I came to Park Place, one of the first things I did was hire them.

“These techs who really know how to do PDR at a high level are truly craftsmen. When it’s not done

properly, the telltale sign is that you can still see the dent. The marks from pushing on the dent are apparent when it’s not done correctly. You can either see traces of the dent or in massaging the area they push too hard and can actually push it past the dent and make tool marks. Or they get into the headliner and damage it or mess up the electrical. We were experiencing a litany of these problems until we contracted with GPS. Getting half of the dents out of a vehicle just doesn’t make it, especially when you’re working on a Rolls Royce, for example.

Turning the vehicles in and out quickly is a major factor when PDR is performed, especially when the storms are more serious, McKenzie said. “With our previous PDR vendors, it would typically take 2-4 days or longer to get the job done. But, with GPS it’s always two days max, with more accuracy and a better job overall.”

During the larger storms, PDR means decent revenue for Park Place, McKenzie said. “GPS gives us a healthy percentage of each job, so yes—it definitely makes financial sense for us to work with them. Providing top quality is our first priority, but to make some money along the way is a major bonus.”

McKenzie is not afraid to tell other body shop owners about GPS, he said. “Their quality is excellent and we’ve recommended GPS to several shops. I’m in a 20 Group and I’ve recommended them across the country and they’re pleased with them as well.”

Park Place’s Body Shop Director Eric McKenzie has an ongoing relationship with Global PDR Solutions to provide his customers with highend paintless dent repairs and book revenue when the hail storms hit

Park Place Bodywerks did $1.8 million per month last year in revenues fixing an average of 500 cars per month at $3,800

Global PDR Company Contact: Bob Lombard Address: 5505 West Kellogg Wichita, KS 67209 Phone: (877) GLBL-PDR email: bob@globalpdr.com website: www.globalpdr.com

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 25

Northeast News with Chasidy Rae Sisk

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

AASP/NJ’s Northeast™ 2011 Trade Show—A Wealth of Information for Shops

I had the recent pleasure of attending my first Northeast 2011 Trade Show at the Meadowlands Exposition Center in Secaucus, NJ, on Friday and Saturday, March 18–19, 2011. For the benefit of those who were unable to attend I’ll do my best to summarize some of the presentations here, but all who are able should plan to attend next year. It’s a very worthwhile event and a great value for collision repairers.

Waterborne Panel Sponsored by BASF With pending regulations in the Northeast which will very likely mandate adopting waterborne paint to minimize VOCs, many shop owners have questions about converting to waterborne systems. Many of those regulations will come from the Ozone

The American Coatings Association’s Automotive Refinish Coalition has urged the OTC to move forward with adoption of the Delaware rule, which is based on the California mandates, for all its member states.

Anticipating this, BASF hosted a panel at Northeast to discuss waterborne paint and the cost of an effective transition to a waterborne paint system. Tom Hoerner, Strategic Initiatives for BASF Refinish, hosted the panel, directing quesTom Hoerner tions to six individuals experienced with waterborne paint: Tom Elder of Compact Kars, Inc.; Tom Smetanka, the General Manager of Central Paint; Tom Beck, owner of Future Care; Kevin Hundt, sales representative for BASF; Luigi Zucchet of USI of North America, Inc.; and Bob Hickey, sales manager with SL Marketing Specialists.

Hoerner began by asking generally about today’s regulations for water-based paint. Hundt responded that there are no specific regulations

viding easier coverage due to heavier pigment loads and being safer, but not completely safe for employees.

Smetanka suggested that getting one’s shop converted before any mandates occur might provide shop owners with a better chance to get help from jobbers and manufacturers and give more time to understand and perfect usage of the product before the regulations are passed.

Beck explained that the most important need for a successful conversion is the support of one’s local jobber which is aided by converting early while jobbers have more time to spend with individual shops. Elder, Smetanka and Hundt all agreed that training and everyone in the shop buying into the change are the most important aspects when converting to waterborne. With regard to what improvements are needed in equipment, Hickey stressed the importance of en-

suring an adequate clean air supply and a shops compressors’ CFM being able to handle the demands of the equipment, including the possibility of extra hand-held blowers. Smetanka cited the importance of keeping the shop clean to avoid dust being stirred by the increased velocity of the air, as waterborne is more sensitive than solvent to airborne contamination.

Concerning the importance of investing in extra air movement, Elder and Smetanka agreed that it is absolutely essential to increase the amount of clean, dry air movement over that required by solvent flashing when using waterborne paints. Beck emphasized the consistency that is made possible by robotic and standardized equipment in factory environments. Hundt and Hickey agreed on the importance of adjusting temperature and air flow while monitoring humidity, and Zucchet cited the

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Northeast™ 2011 Waterborne panel (l to r): Tom Elder, Tom Smetanka, Tom Beck, Kevin Hundt, Luigi Zucchet & Bob Hickey (see text for affiliations)

Transport Commission, a coalition of eleven East Coast states and the District of Columbia which advises the EPA on regional solutions to air pollution. The OTC has adopted a model rule, which is based on the recently adopted Delaware rule. Delaware, which is a member of the OTC, has already set the following allowable VOC content for various refinish products: Primer: 2.1 lbs./gal; Clear coating: 2.1; Base coat: 3.5; Multicolor coat: 5.7; Sealer: 5.4; Singlestage coat: 2.8.

in the northeast yet, or indeed anywhere other than in California, Europe and Canada which are 100% regulated. Although discussions during the past few years have yielded no exact date, moving to waterborne has become a strategic focus and will be mandated eventually.

Asked about the advisability of converting to waterborne systems early, before any mandates, Hundt pointed out waterborne systems are better for the environment, and offer many benefits to shop, such as pro-

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the booth’s cleanliness as equal in importance to that of air flow and heat.

Hundt said that the education required to convert to waterborne is minimal, while Smetanka pointed out that the conversion is easier when switching from solvent to waterborne while using the same manufacturer since the shop will not need to learn a new system. Elder contributed that he has seen a decrease in the cost of his basecoat since switching to waterborne because it requires less paint to cover the vehicle, again due to the higher pigment loads of waterborne.

Elder and Smetanka praised the excellent color matches that waterborne paint offers, and Hundt said using waterborne systems can be faster than solvents when done correctly. In response to an internet question about the effect of contaminants in the air, Hundt stressed the need for clean air. Fisheye-type blemishes are common if oil droplet contamination, for example, gets into the air supply.

To make the conversion easier, Elder suggested total buy-in from all employees since processes change a bit and removing the solvent-based

system as soon as the waterborne system is installed to avoid returning to the original system when problems arise. This is sometimes referred to as “Cold Turkey conversion” in California. There shops that tried to gradually transition from waterborne learned that it delayed conversion because painters sometimes reverted to spraying solvent when even minor problems arose. Hickey reiterated that proper education is important, and Smetanka emphasized the importance of making sure employees do not fall back to old habits. In conclusion, Hundt offered that converting to waterborne may be a little uncomfortable because it is a change, but it is not difficult in principle to switch to a waterborne painting system. Those that have done so do not regret the transition.

Requirements for Drying Waterborne Have you ever wondered about drying waterborne compared to solventbased paints in our not-always warm and sunny climate? Do you have to have a balmy Southern California climate to dry it successfully? The short answer is ‘no.’

Panelist Tom Beck, CEO of Future Care which manufactures spray booths, led a seminar titled Drying Waterborne: What You Need to Know.

Explaining that drying water-based paint requires evaporation of the water within the substance, Beck investigated how evaporation occurs under specific conditions. By experimenting with a wet towel on a Tom Beck clothesline, Beck demonstrated that the velocity of air movement is more important than increased temperature when attempting to dry waterborne quickly; however, his goal is to increase both the velocity of air movement and temperature, especially in the wintertime.

Because waterborne paints are slower to flash than solvent-based paints due to the heavier water content, it was imperative for manufacturers to determine how to accelerate the speed of evaporation so as to avoid affecting flash-off time for shops using waterborne paints. The temperature and speed of air coming through booths must therefore be increased.

Warm air is less dense than cold air, allowing the air to absorb moisture. Unfortunately, cold air settles lower to the ground since it is more dense, and this leads to an ineffective method of drying paint when using a downdraft air flow which will push air down over the car in a “tenting” effect, causing the ends of the car to dry much faster as more air is being pushed through these small spaces between the vehicle and the walls of the booth. The hotter air picks up water molecules from the paint as it passes over the car.

Accelerated drying systems reduced flash-off time by up to 50% for waterborne paints, increasing productivity and reducing energy costs. Beck classifies systems that use compressed air, such as hand-held dryers, as stage one systems which consume a lot of energy. Stage two systems do not use compressed air. Such systems include ceiling fans, booth pods and Jun-Air QADS. The problem with ceiling fans, according to Beck, is that they generate static electricity and spread dust.

Booth pods take a large amount of air in through the top and output it through a smaller space, but they do not increase the temperature and do

not eliminate static electricity. JunAir’s Quick Accelerated Drying Systems (QADS) push air through a smaller opening and warm the air by redirecting the hot air from the plenum through vents that redistribute the hot air to the level where most of the painting takes place.

Beck said the temperature will need to be greatly increased in a system that forces air downward in order to reach the goal of 140°F in bake mode, but since cold air molecules fall and warm air molecules settle on top of them, the lower surfaces of the car will still not reach the necessary temperatures for the paint to dry properly.

This is critically important as the paint will move if a clear coat is applies before 100% of the water in the paint is evaporated.

The QADS, by bringing air from the plenum through ducts on the side of the booth, allow all surface areas on the vehicle to reach the necessary temperature to dry effectively. Additionally, the QADS contains a ionization bar which neutralizes static electricity within the booth.

Finding an Integrated Balance between Quantity and Quality in your Shop Culture: If you don’t have time to do it right, when are you going to have time to do it over?

“Facility Verification and Quality Processes: What It Means to You” was the title of the informative seminar given by Mark Olson, well-known quality control speaker and COO of VeriFacts Automotive.

Olson began by defining a “quantity culture” as being one in which shops focus on throughput, cycle time and profits, assuming quality will take care of itself. But this is a short-sighted strategy in managing Mark Olson productivity in your shop unless you also incorporate a balance of “quality” said the VeriFacts cofounder.

Olson believes the best culture for auto body shops is in finding a balance between quantity and quality. An effective shop culture needs standards that will hold people accountable while also empowering people to do the right thing.

Olson reminded his audience of the easily overlooked fact that if the job is not done correctly, it does not

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 27

matter when it gets done. A bad job done soon is usually just a quicker way of getting to redo it. Constantly asking technicians questions such as “how soon,” “how fast,” “how much,” or even “when?”, sends the subtle message that quantity or speed is more important than quality. There needs to be a shift to a mindset of commitment to the process because it is every member of a shop’s responsibility to provide quality repair services to their customer.

Olson listed the components of a positive repair experience as follows: thorough damage assessment and customer communication, internal quality control stage checks and peer inspections, and pre-delivery inspection and estimate review.

Expanding on the concept of thorough damage assessment and customer communication, it is important to begin with complete and accurate estimate, said Olson, or the repair process becomes hurried and frantic at the end of the process. Without such an estimate, the probability of a comeback increases significantly.

Olson even specied that estimators should circle the car several times from various distances to fully assess all damage on the car before writing down a proper and complete first estimate. It is also very important to keep in communication with the customer so that shops can managed and exceed the customers expectations. As such, estimators should walk the floor a couple times each day so that they know what is going on with the customer’s car in case the customer calls to enquire.

Olson repeatedly stressed that quality control cannot be an afterthought. Everyone is responsible for the vehicle throughout the entire repair process. Peer inspections help reduce comebacks, and everyone should be willing to point out something not done correctly.

Olson reviewed VeriFacts’ Quality Measurement Program criteria for a set up and measurement, the vehicle must be secured in a level position and at least eight points (four in the midsection, two in the front and two in the rear) be measured. VeriFacts also suggests using a stage-check verification in which the technician and a peer inspector signs off at each step of the repair.

Concerning “pre-delivery protocol,” which Olson defines as a dress rehearsal for delivery to the customer,

it is important to perform a final postrepair inspection, review the estimate, and then do a final test drive before preparing the vehicle to be returned to its owner. Olson went on in a second presentation to amplify his and VeriFacts’ ideas, delving into the area of “unknown unknowns.”

What You Don’t Know You Don’t Know At the risk of reminding readers about former Defense Secretary Donald Rumsfeld’s infamous speech about “known knowns, unknown knowns, and known unknowns, not to mention unknown unknowns...” oh, fuggedabowdit....

Most people have run into a situation where they realized that they do not know something important about their industry, but the situation is even more unfortunate when one realizes they were unaware they were lacking this information (this would be the dreaded Rumsfeldian “unknown unknown.”) Mark Olson, COO of Verifacts Automotive, also taught a seminar entitled “Repair Quality: What You Don’t Know You Didn’t Know.”

Olson reminded attendees that customers want their vehicles repaired correctly because their cars are important to them. Explaining that while some shop owners provide service based on what they are paid to do by the insurance company or customer, other shop owners always do what is right for their customers.

Stressing the importance of quality collision repair and proper documentation, Olson began his overview of common repair problems and how they are easily solved. He clarified his statement that it both “is” and “is not” about the money by noting out that a business cannot prosper if customers are continually dissatisfied.

For most auto body shop owners, according to Olson, these deficiencies result from being unaware of what they do not know. Auto body workers must know everything about a car at the beginning of their work, and they must adhere to the current regulations which change so frequently that even quality shops may be unaware of their errors.

For example, most weld-through primers state on their label not to weld through, and they must be dabbed on although they come in a spray can.

Luckily, they work well when used correctly. If the weld-through primers are used to weld through, they tend to

28 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

cause air bubbles, while dabbing the primer onto the vehicle, instead of spraying it, preserves the original ecoat.

When it comes to corrosion protection, technicians must seam seal all welded joints, even those not sealed by the manufacturer. They should also use epoxy under the seam sealers, and it is important to use corrosion protection on all repair areas. Not properly applying corrosion protection builds failure into the repair as rusting will begin as soon as water touches it.

It is necessary for welders to practice and destroy their welds and reinspect the quality of their welding. A quality control process is recommended to prevent such errors.

An area where many shops have problems is documentation. All operations must be documented, whether they are paid for or not. Shops must add non-charged items to the bill because, legally, it was not done if it is not documented. Post repair market value insurance claims can be avoided by maintaining proper documentation, communicating with the customer and making proper repairs.

Anything that is paid for but not com-

pleted, improper documentation of procedures, and deviation from industry repair standards are all considered fraud; due to this, it is very important to properly document files, properly repair vehicles, correctly inform customers of repairs, listen to the customer and continually pursue education to stay up to date on procedural changes.

Protecting Your Shop Assets and your People from Risk At the Northeast 2011 Trade Show on Saturday, March 19, Joseph Chiaravallo of Utica National Insurance presented a seminar entitled Risk Management for Collision and Mechanical Shops. Defining risk management as managing and protecting assets from all types of Joseph Chiaravallo risk, Chiaravallo informed his audience that the highest claim frequency and the greatest percentage of insurance losses occur in the automotive property-casualty See AASP/NJ’s Northeast, Page 30

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PreFab Ads Introduces Three New TV Spots for Body Shops PreFab Ads recently completed three more humorous auto body TV commercials, bringing the total spots they now have available for licensing by independent shops to 15.

In “Short Cut,” a young couple argues over the accuracy of their GPS moments before it directs them and their SUV over a cliff. From the dash of the smashed car, the GPS informs the unhurt but stunned couple that they have reached their destination.

In “Young Picasso” a four-year old boy picks up a piece of metal in the driveway and etches his master artwork into the side of the family van with the family dog looking on. The boy then proudly shows off his artwork to his stunned mother as she exits the house.

In “Modern Repair”—a fifteen second spot—whimsical, vintage-crash footage of Model Ts is contrasted with the quality repair of modern body shop.

All spots ask, “Need a body shop?” followed with the logo of the sponsoring body shop.

These new commercials have already made their debut in over 12 markets across the US, with more scheduled to start soon.

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Writer/director Chuck Jessen, of Jessen Productions/San Francisco, created the PreFab Ads concept for body shops in the late 90s after making “Sledgehammer.” The spot shows a betrayed woman pounding a red Mustang convertible with a sledgehammer only to realize, when her husband drives up in an identical Mustang, that she is trashing the wrong car. “Sledgehammer” won several advertising awards and was featured on the “World’s Funniest” TV commercials program (see photo below). Jessen licensed “Sledgehammer” to hundreds of collision repair shops nationwide, giving birth to the PreFab Ads concept.

According to Jessen, PreFab Ads allows local body shops to run a professional commercial, on an exclusive-by-territory basis, for a fee that is about 1/35th of the actual production cost. Jessen feels the combination of high production values and good American-style humor helps break through the media clutter and build interest and awareness for local body shops in a category people might otherwise be indifferent toward—at least, until they actually need collision repair.

According to Ann Davis from J&J Auto Body in Pocatello, ID, they have just started running them but are already getting good response to both commercials. “The women especially love ‘Young Picasso.’ They think it’s cool.”

Andy Peters at Peters Body Shop in Fort Wayne, IN, has been running PreFab Ads commercials for years and his community has developed an anticipation for the new ones, according to Peters. “We’re having a great response to the new commercials. People think they’re hilarious,” Peter’s said.

Mark Lamendsdorf from Star Body Works in Medford, OR, echoed that feeling saying that they’ve had great response from both commercials.

To view the 15 commercials offered by PreFab Ads, and get more information, log on to www.prefabads.com Continued from Page 24

Cosmetic Upgrade

I’ve found shop owners reluctant to make this change in identity.

They’ve relied on auto body repair and refinishing jobs as their only business for so many years, it’s difficult to start thinking in a new direction. But it’s becoming more and more necessary to do so.

Entering the merchandise marketing arena can be scary for a shop owner who’s never had to compete in that area. Real advertising, distributing coupons, and possibly even setting up shop at local swap meets would be an entirely new set of tasks for a shop owner. The upside of the activity would be hundreds— and possibly thousands—of new prospects informed of the existence of his or her business. And bigger profits too!

Our culture has become more and more a car culture. People spend an enormous amount of time in their vehicles. With cell phones, stereo systems, laptop computers and wireless devices they can operate in the car, today’s drivers have mobile offices and recreation rooms they can take on

the road. And this doesn’t even take into account entertainment systems for kids.

This opens up a market for an endless array of products that could be sold at a body shop just as easily as at a dealership or any other location.

The shop owner who wants to continue to be profitable well into this new century will have to broaden his or her horizons. Bite the bullet. Put in an accessory and restyling counter.

Train your desk people to learn the famous waiter and waitress line: “And do we have room for some dessert?”

They need to start asking every customer, “Is there some accessory we can sell you to enhance the power or beauty of your car?” There are billions being made by sellers of these products. Why not be one of them?

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 29

Continued from Page 28

AASP/NJ’s Northeast

line. The most frequent causes of loss are theft, vandalism, burglary, wind damage and lightning and power surges.

Chiarvallo explained it is possible to minimize property loss from burglary and theft by installing a security system and good exterior lighting, as well as making sure never to leave cash on site. Minimizing vandalism entails similar procedures, such as installing security cameras and better exterior lighting and keeping the customers’ vehicles secured and locked within the facility. To minimize loss caused by wind, shops can remove clutter which could become wind-driven projectiles and install proper door supports. Lightning strikes can cause loss due to severe discharges or even just loss of power.

Shops should install a lightning protection system and establish emergency procedures for storm or power outages.

The fifth most frequent cause of insurance loss accidents in the shop are due to damage to the customer’s car after being struck by equipment.

This is often due to a technician’s lack of experience in moving customer vehicles. Luckily, this is easily remedied by providing the technicians with warnings and the necessary training.

Although the greatest frequency of insurance claims occur in the automotive industry, the highest average cost per claim occurs within the worker’s compensation line of business. The areas of worker’s compensation that produce loss most frequently are as follows: lifting, pulling and pushing, debris particles in eyes, misuse of hand tools, slips, trips and falls, and all manner of machinery mishaps.

To minimize injuries due to materials handling, shops must emphasize training and safety. It should be standard practice to talk with all staff about the common causes of injuries, observe the staff while they perform

daily tasks, establish work rules, identify hazardous conditions, and develop a checklist of conditions that need ongoing attention. Decreasing the risk of eye injuries can be achieved by insisting on protective equipment usage, talking to staff about the common causes of injuries, observing staff as they work to monitor safety compliance, and identifying hazardous conditions in advance.

Shops can reduce slips, trips and falls by clearing walking surfaces and identifying hazardous conditions, and the dangers of hand tool injuries can be diminished by explaining the threat to employees, establishing rules, and when injuries do occur, finding the cause and effect and, of course, making the necessary changes.

The most common liability claims are for property in the car, custody and control, failure of work performed, injuries to the customers on the premises, falls, and customers and workers having contact with or being struck by objects.

Using Aftermarket Parts: the Shop’s Responsibility What are your legal responsibilities when using aftermarket parts in your repairs? What happens when the best solution is not using aftermarket parts even though the insurance company insists upon it? Is your responsibility to the insurance company or your customer?

Attorney Mitchell Portnoi of the Law Offices of Prince and Portnoi in Clark, NJ gave a seminar at Northeast 2011 titled The Aftermarket Parts Dilemma: Your Responsibility.

Aftermarket parts may have a number of performance issues dependent upon how the product is produced, according to Portnoi. Sometimes, they do not fit properly, and the durability and weight of the part Mitchell Portnoi, Esq. may affect other systems within the vehicle. Corrosion is a particular concern with some non-

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certified parts. As such, there is a significant and developing body of law related to aftermarket parts and their comparison to original, manufactured parts. That being said, courts have not provided much guidance to issues concerning aftermarket parts just yet.

In New Jersey, regulations state that no insurer shall require use of aftermarket parts in repair unless the aftermarket part used is warranted and comparable to the original manufacturer’s parts. However, each insurance company writes their own guidelines about what aftermarket parts they use.

Therefore, it is the responsibility of the auto body shop to ensure that a third-party warranty is provided that is associated with the part.

In order to protect both the customer and shop, it is imperative to see the warranty and keep it on file. Parts should come with identification, and the warranty must identify who is certifying the actual part. If the part is not under warranty or certified, a New Jersey shop cannot legally use the part, however, it is unlikely that any law forbidding use of aftermarket parts or mandating new parts will occur anytime soon. Although there is

still some debate about the quality of aftermarket parts, laws do state that the part used must be equal to or better than the original part.

When an insurance company will not pay a shop to use the correct part, shop owners “have a responsibility to notify the customer,” Portnoi insists. New Jersey administrative code mandates that shops are obligated to inform the customer if a refurbished part is being used. By informing the customer when an aftermarket part is being used, the shop owner offers them the opportunity to pay any additional cost to use the OEM part.

Legally, shop owners must assume responsibility for giving customers the option of paying for OEM parts in replacement for aftermarket parts because they will be held responsible if the part fails. This is also why it is so important for shops to verify certification or warranties to ensure that a company is backing the part.

For further information, contact Mitchell Portnoi at 732-396-8900, 136 Central Ave, Clark, NJ 07066.

Website: www.princeandportnoi.com.

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Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com

Hey Toby!

Make Sure Your Shop is Clear of these Glaring OSHA Violations with Toby Chess

Hey Toby—Is it true that the fine for using an illegal air blower is $5000 in California?

—Jeff from San Francisco

Hey Jeff—I checked with CAL Osha and they confirmed that fine could be up $7000 for using an illegal air blower. With the poor economic conditions that exist today in state finances, more and more regulatory agencies are now becoming revenue generators. Here in California, Governor Brown has stated that there will be no new taxes (unless approved by the electorate and that has about as much chance of happening as a snow ball in hell.)

On January 6th of this year, traffic fines went way up. For example, using a hand-held cell phone while driving, first offense: $148. Parking in a handicap zone: $976 for first offense and $1876 for a second offense,

and $436 for failing to stop at a stop sign—the list goes on.

I have been taking a 40-hour on line OSHA course and I have been checking for OSHA violations in body shops as I conduct I-CAR training on site. What I have seen is unbelievable.

The typical blower in the body shop is a female and male air tool fitting

Respirators not in a secured bag when not in use

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Ungrounded and damaged electrical cords

Open solvent container for cleaning a spray gun

Grinders without a shield

Exit door blocked and locked during business hours

No signage for fire extinguisher

Fire extinguisher access blocked by an object

Ungrounded flammable storage containers and not spill containment equipment

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 31

Unchained welding tank and no signage

Ungrounded flammable waste container and an open lid. Also there is not signage on the wall

This picture needs not description

Refrigerator in paint department, ungrounded flammable storage drum, battery charger, new flammable products, no signage and unlabeled paint containers

Today

No signage, missing electrical outlet cover and extension cord missing its ground

I have many more examples, but I think that you get the picture. The next issue of Autobody News will have a shop check list that will allow you to go through your shop and identify major potential OSHA problems.

Today

OUR PARTS IN THE T R AINE D H A N DS O F A P RO F E S SI O N A L

GM Parts

Unlabeled bottles

Finish Second to None.

Let’s take a look at some of the more common violations in the body shop.

The next series of pictures were taken at my friend’s shop about 2 years ago. He embarked on the lean process trail and the first thing that we did, was clean up the shop and make it OSHA compliant. It took about 2 weeks and the results of cleaning up in the shop has resulted in 20 percent decrease in cycle time in the first six months of implementing the lean process.

Together it

’s a Masterpiece!

New Jersey

Royal Cadillac

973-845-3014 FLORHAM PARK

973-538-6978 Fax M-F 7:00 am - 5:00 pm We Service Complete GM Line Chevy, GMC, Buick, Pontiac, Hummer and Saturn parts@royalcadillachummer.com www.onlyroyal.com There were parts stored in the 3 foot barrier that is needed around all electrical panels.

Also the signage was missing

Today

32 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

NSF International Settles Spat with CAPA by Dropping Suit

On March 21 NSF International dismissed its lawsuit against the Certified Automotive Parts Association (CAPA) and Executive Director, Jack Gillis, which was filed in response to CAPA and Gillis’ letter widely circulated on July 28, 2010. In the letter Gillis criticized the Auto Body Parts Association (ABPA) for its decision to support the parts certification plan introduced by NSF International.

In the agreement, CAPA and Gillis agreed not to, either orally or in writing, make false and defamatory statements of fact about NSF. NSF said it believes the record has been sufficiently cleared that continued litigation would be a distraction from NSF’s real work in testing and certifying aftermarket parts, and thus would not be in the best interest of the aftermarket parts industry or consumers.

NSF said it agreed to dismiss its case against CAPA and Gillis to focus on continuing to grow its business.

“There should be no doubt in anyone’s mind that NSF International is fully committed to supporting the automotive aftermarket parts industry,” said Bob Frayer of NSF International.

Airbag Risk Prompts Recall of 144,000 Ford Vehicles

Ford Motor Co said it would recall about 144,000 F-150 models in the United States and Canada from the 2005 and 2006 model years due to a risk that airbags could deploy because of a short circuit.

The automaker said a mistake in the assembly of the trucks at its Norfolk, Virginia plant could cause an airbag wire in the steering wheel to short circuit.

Ford said that it received an unspecified number of complaints about the airbag problem. In most cases, airbags had deployed just a few seconds after the trucks were started.

A response to NHTSA this week from Ford said the automaker believes, “the condition does not present an unreasonable risk to motor vehicle safety. However, to avoid a protracted discussion with the agency and to provide repair to those vehicles most likely to exhibit the condition, Ford is recalling those vehicles produced at the Norfolk Assembly Plant from November 1, 2004, through June 30, 2005.”

Ford has now recalled more than 1 million vehicles in the first two months of this year, more than the 600,000 recalled for all of 2010.

ASA Opposes Proposed Ore. Right to Repair Act

Legislation has been proposed in the Oregon House of Representatives that would require manufacturers of motor vehicles to make tools, information, software and wireless capabilities available to owners, owners’ designees and vehicle repair shops. This also includes any other means to activate, code or program electronic controls, and modules used to diagnose, maintain or repair motor vehicles. The proposed Motor Vehicle Owners Right to Repair Act would rely on the state court system to ensure independent repairers have the information they need to repair their customers’ vehicles.

ASA opposes this legislation because it says independent repairers already have access to third-party information providers as well as automaker websites to obtain service information. If concerns arise, repairers have the National Automotive Service Task Force (NASTF) available to address issues related to service information, tools and training.

NASTF is a voluntary, cooperative effort among the automotive service industry, the equipment and tool industry and automotive manufacturers.

BMW Brands Plan Increased Use of Carbon Fiber

BMW Group brands plan to make much greater use of lightweight but strong carbon fiber, says Ian Robertson, BMW’s global sales and marketing boss.

“A carbon spaceframe means less weight, and less weight means less fuel consumption,” he said in an interview at the Geneva auto show.

“Carbon fiber is something we’re investing in as a company,” he said.

The BMW i3, previously known as the Megacity Vehicle, has a shell that uses carbon fiber. So does the i8.

“We learned a lot from our experience with Formula One. Across the brands, carbon fiber is going to be one of the technologies of the future, which is why we’re investing in it,” Robertson said.

BMW owns part of a plant in Washington state that makes carbon fiber materials, including carbon fiber-reinforced plastic.

Separately, Rich Steinberg, manager of electric vehicle operations and strategy for BMW of North America, said the plant has enough capacity for BMW’s foreseeable needs, but a lot of development work is still needed to make carbon fiber more practical and affordable for mass-production cars.

ing and Awards Luncheon, held at the Crowne Plaza Meadowlands. Thursday, March 17, brought the Collision Industry Conference (CIC)’s quarterly meeting and reception to the Crowne Plaza leading up to the SCRS Annual Meeting and Board Elections on Friday morning. The East Coast Resolution Forum & LeaderBASF was the official sponsor of Northeast 2011 (l to r) Autobody ship Conference News’ writer Chasidy Sisk, James Beck from BASF, and Autobody was held off later News Co-owner Barbara Davies that day at Meadowings,held for the first time during the lands and the Assured Performance show kicked off on Wednesday, March Network hosted a member shop meet16 with the Society of Collision Reing later in the afternoon. pair Specialists (SCRS)’s Board Meet“We are very excited and thrilled that industry leaders from around the country are coming to our NORTHEAST™ show and holding their meetings,” said McDowell.

“Having the show at the Meadowlands has increased our exposure and influence locally and nationally and I think this is The Metropolitan Car-O-Liner/Pro-Spot booth was always busy. (l to r): Mike Demarest, Dave Demarest., Dave Demarest, Jr. a reflection of that.”

Continued from Front Page

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 33

Action Counts

Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com

Underqualified Repairers Hurt the Whole Industry with Lee Amaradio Jr.

Action Counts

As the financial pressure mounts with the The inexperienced adjuster says U.S. recession going on three years now, you do it this way and shops say ‘yes,’ the collision industry is rapidly bewith Leefalling Amaradio Jr.to eliminate any repercussions some hind the technology curve. Many shops and others because they think it’s OK. are unable to afford the training and new It is never OK to put a used welded equipment required to repair today’s modern vehicles. frame rail on vehicle but I am forced

to argue this point weekly. Because Insurers are accutely aware of the fact the wrecking yard has clips available that there are fewer fewer shops withandSheila Loftusdoes not mean we should be using able and ready to repair many of them. So why do we find it necessary today’s high tech vehicles. The old to have the same argument over and methods of repair will no longer work over almost weekly? but the responsibility to educate the The reason is because of underinsurers lies with the collision repairtrained, underequipped body shops. ers themselves. But how can a shop Adjusters are not our problem; insurwithand Sheila Loftusance companies are not the probthat is well-educated well-trained compete in a marketplace where the lem—underqualified shops are the status quo is so far behind the times? problem.

We’re implicitly teaching insurers that Eliminate the underqualified, unit’s still OK to ‘repair’ vehicles the dertrained shops and you will elimiway we always have because to do so nate the problem. Why? Because costs less. training raises the standards bar for with Janet Chaney When we are forced to prove this everyone. When the inexperienced adpoint over and over, it makes the shop juster comes in to a well-trained shop that is doing a proper repair look like and then goes on to the next one, he or a bunch of pompous overcharging she is hearing the same thing everyprima donnas. The fact is that it costs where (s)he goes and he or she begins more to repair with a collision properly to learn something, the supervisors Janet Chaney than to do a proforma job and in begin to learn something, and the artoday’s marketplace it is also less gument of repairing the vehicle corprofitable to do it right. Although the rectly goes away. overall ticket average may be higher I believe there are many roads the bottom line profit remains lower. that lead to the same destination but The entire with collision industry is with collision repair we first need to Janet Chaney struggling because we have allowed define our destination before we begin ourselves to become “yes men” and our journey. If our destination is to throughout this recession things have control costs (at all cost) we arrive only gotten worse. How can anyone someplace different than where a safe agree to repair a vehicle the new tech- structural repair should lead. If our withthey Janet nical details of which knowChaney little destination is a safe repair that restores or nothing about? Yet many shops are the integrity of the vehicle’s standards doing this every day. then cost alone cannot be the guidance

Your Turn Your Turn

Shop Showcase Shop Showcase

system to get us there.

I believe that the only consistent credible way to restore the vehicle’s safety after a collision is to rely on what the OEM’s have tested and proven to be deemed reliable methods. Anything differing from the restoration of the vehicle’s structural integrity is the wrong road to follow.

Everybody needs to use the same map to arrive at the correct destination with a collision repair.

So where does this leave the shops that may be willing to do the repair correctly but lack the knowledge or equipment to do so? It leaves you on the sidelines of the collision industry until you gain the credentials required to repair today’s modern vehicles. Would you head out on a cross-country trip without knowing where you were going or with out knowing your destination? Certainly Not.

So it’s time to step up and check your destination or you will find yourselves lost in the wilderness without a map or compass with no way of ever getting back. This may sound harsh but 50% of the shops will not make the cut.

Insurers are becoming more and more conscious of the liability involved if the vehicle is not repaired properly and they are naturally gravitating to the shops that are trained and equipped properly.

There are plenty of resources available for shops interested in making the cut. VeriFacts, I-CAR, ASE, OEM programs, and ALLDATA for OEM specs come to mind. Join these groups in raising the bar, and pass the education you get from them along to your customers, insurance adjusters, and your fellow shop owners.

Support the industry, protect your customers, and don’t get left behind.

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Industry Overview Industry Overview

Mazda 3 ‘11

IIHS: Big Rig Underride Guards Often Fail in Crashes New crash tests and analysis by the In- for more large trucks and trailers. with John Yoswick Rear guards are the main countersurance Institute for Highway Safety

Industry Insight

(IIHS) demonstrate that underride measure for reducing underride deaths guards on tractor-trailers can fail in rel- and injuries when a passenger vehicle atively low-speed crashes, with deadly crashes into the back of a tractor-trailer.

In 2009, 70 percent of the 3,163 consequences.

NHTSA has estimated that about people who died in all large truck 423 people in passenger vehicles die crashes were occupants of cars or other with John Yoswick each year when their vehicles strike the passenger vehicles.

Underride makes death or serious backs of large trucks. More than 5,000 passenger vehicle occupants are injured. injury more likely since the upper part The Institute is petitioning the fed- of the passenger vehicle’s occupant eral government to require stronger un- compartment typically crushes as the derride guards that will remain in place truck body intrudes into the vehicle with Janetguards Chaney safety cage. during a crash and to mandate

Industry Insight

Industry Interview

34 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

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Shop Strategies for Savings

Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.

Business Liability Insurance: Review & Research Before You Renew! with Walter Danalevich

This month, let’s take a look at BusiA few weeks before our policy ness Liability Insurance needs for op- expiration date, a large brown enveerating a professional body shop with lope arrived via special delivery at the goal of adding profit to your botour Insider office. On opening the envelope I with The Insurance tom line. discovered a binder containing our Our auto body shop in Santa Barbusiness insurance policy documents bara, California, after several years of pertaining to the next policy term. patronage to a well-known business My first thoughts after opening insurance provider, recently changed the envelope were skeptical. In years our business liability insurance carrier past we never received a renewal polto another majorwith player.Chasidy Rae icy before discussing our renewal inSisk The results were a saving of tentions with the assigned insurance about 33% from the previous year agent. with similar coverage. Like most of I came to the conclusion that us, I am guilty of getting too busy someone from our insurance comduring the day-to-day operation of pany appears to have placed us on an our business to review our insurance Renewal Mode.” with Chasidy Rae “Automatic Sisk policies and their costs on a regular A few days later I initiated shopbasis. ping for other insurance quotes. My What motivated me to review preference was to speak to an auto my policy and getting new insurance body shop liability specialist instead quotes was an act of “overeagerness” of shopping for quotes online, withfrom my insurance company to roll out really understanding what is covover my policy. ered.

Inside Insurance Northeast News Shop Showcase

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Soon afterwards, I scheduled an appointment at our shop with a business insurance liability specialist.

Within 24 hours I was presented an insurance quote which was approximately 33% less than my long time insurance company.

When I realized the annual savings I felt some bitterness as a result of accepting the rates from my longtime insurer for so many years.

Based on my business insurance shopping experience I highly recommend reviewing your insurance policy at least 60 days before the renewal date. With some preplanning and research you should have sufficient time to choose the best value for your specific insurance coverage needs.

All it takes is allowing some time to acquire comparative insurance quotes instead of proceeding with the habitual “automatic renewal”.

The following policy options can be used as a preliminary aide to help you understand your business liability insurance. At a minimum, your business should have the following protection;

● Business property insurance: Protects your business by funding repair or replacement of damaged physical assets. ● Building coverage: Protects your business against financial losses resulting from claims of injury or property damage caused by you or your employees from your products and services.

● Workers Comp Insurance: Protects you and your employees to satisfy medical needs in the event of an accident or injury.

● Business Auto Liability Insurance: Protects you from liability created as a result of damaged incurred to another party’s vehicle and bodily

injury.

● Business Crime Insurance: Protects your business from fraud, theft, forgery or robbery.

Optional Insurance ● Business interruption coverage: Allows you to continue to receive income while your Auto Body shop contents are being repaired or replaced.

● Employment Practices Liability: Protects you from employment related offenses against you.

● Umbrella liability: Adds additional coverage over and above your primary policy.

● Machinery and equipment breakdown: Covers loss of Business income resulting from equipment damage.

Remember, there is no such thing as a one-size fits all business insurance coverage.

I highly recommend you steer away from the “automatic renewal” mode and discuss your shop’s insurance repair needs with an experienced insurance specialist who is knowledgeable in understanding and explaining the variety of available auto body shop insurance coverages.

Remember, your business has specific needs which may change over time. As a result of reviewing your policy with an auto body shop insurance liability specialist annually, it will provide you peace of mind about your insurance coverage and will continue to fully protect your and your family’s assets.

The choice is yours, either preplan your shopping several weeks in advance of your renewal date or go with the status quo and see where your business liability insurance journey takes you!

Give us your opinion on matters affecting the industry. www.autobodynews.com CHECK IT OUT!

write us! publisher@autobodynews.com

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 35

Industry Insight

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

Contact him by email at jyoswick@SpiritOne.com.

Recyclers, Repairers Look for Ways to Improve Business Interactions with John Yoswick

Mel Hunke said he’d like to eliminate surers and repairers could result if rethe “wedge” between collision repaircyclers helped make shops aware of ers and auto recyclers. parts they are likely to need in a repair Ed Attanasio “We used towith work together really but that are not typically purchased well,” Hunke said of the two indus- from a recycler. tries. “But once insurers stopped pay“If you buy a fender, hood and ing for clean-up or repair time on bumper from me, but you also need recycled parts, they basically said, the windshield washer jug and battery ‘You two fight it out.’ And we’ve been tray and all the other stuff recyclers doing it ever since. That’s the wedge are currently crushing, we can amorthat was driven.” tize our overhead and dismantling Hunke, a former shop owner who costs over more parts, and you can innow represents the Quality Replacecrease your alternative part usage and ment Parts (QRP), a coalition of auto save totals,” Hunke said. recyclers in nine states, was speaking A representative of one multiat the third “Recycled Parts Round- shop operator at the meeting said his table,” held in Las Vegas. The gathercompany is working with recycled ings, originally organized by QRP but parts vendors on just such an effort so now open to anyone, bring together the collision repair business can mainrepresentatives from all segments of tain insurer-required levels of recycled the industry to discuss and work to re- parts usage without having to use solve issues related to recycled parts. structural or other types of recycled “We need to blow out the wedge parts it would prefer not to. and put our relationship, our core • Understand and use part grading and business-to-business process, back to- damage codes. Those at the meeting gether in a way that benefits every- agreed that too few recyclers and one,” Hunke said as he opened the shops recognize and understand the most recent roundtable. codes that have been standardized It was clear by the end of the within the industry to grade recycled half-day meeting that many of the two parts and identify the type and locadozen participants – primarily owners tion of damage on those parts. Educaof shops and recycling yards – learned tional and reference materials on these things that could help them eliminate description systems are available at that wedge. Here are some of them. the “Standards & Codes” section of • Photos could help. A Texas shop the ARA website (www.a-r-a.org). owner at the meeting asked if recyclers • Understand estimating issues related can make photos of the parts they have to recycled parts. Industry consultant available. Photos, he said, can help a and former shop owner Mike Andershop confirm the color and condition son said at the meeting that he serves of the part. It also could help recyclers on an Automotive Service Association with better quality (or more accurately committee that recently updated the described) parts compete with those “not-included operations” chart it creselling lower-priced but lower-quality ated for recycled parts (a similar chart parts, because the shop could see, for is available for new parts as well). The example, that the lower-priced part has charts summarize what operations are rust along the bottom edge. not included in each of the “Big Several recyclers at the meeting Three” estimating system times and pointed out that yards meeting the Au- thus may need to be added to an estitomotive Recyclers Association’s Cermate when using such parts. tified Automotive Recycler program • More data would help. Participants take as many as two dozen photos of at the Recycler Roundtable meeting vehicles before dismantling. Although have agreed that some data collection few recyclers have photos of individ- could help shops and recyclers work ual parts available, these “Gold Seal” better together – and perhaps help inrecyclers can provide those vehicle fluence insurer practices. Work has photos upon request to the shop. begun, for example, on a survey to • Consider more part types. One pobetter understand the expectations of tential win-win-win for recyclers, inshops, insurers and recycler in terms

Shop Showcase

36 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

of recycled parts use to help each segment better meet more of those expectations. They survey is likely to ask shops, for example, how valuable the availability of photos of recycled parts would be.

One meeting participant also suggested that a statistical case study look at whether insurers could benefit from accepting lower values for salvage if it increased the availability, pricing and use of recycled parts.

A study could also look at how insurer-mandated use of particular recyclers or the “lowest-cost” part negatively impacts shop efficiency.

• Spend some time at each other’s business. Recyclers and shops at the meeting who had taken the time to visit the recycling yard they purchase from—or the body shops they sell to—agreed it was time well-spent. It’s a great way to see things that each side in the transaction may be doing or not doing that negatively affects the other.

Ordering parts ahead of determining if a vehicle is a total loss—or ordering the same parts from multiple recyclers to see which arrive first or in the best condition—are examples of shop practices that negatively affect recyclers, those at the meeting discussed. Recyclers’ dismantling practices, or failure to accurately describe part conditions, cost shops time and money. Time spent at each other’s businesses can help shops and recyclers work better together, those at the meeting agreed.

• Understand the value of the Gold Seal designation. Recyclers at the meeting said shops could help themselves and the industry by just asking the recyclers they deal with, “Do you have the Gold Seal designation?”

Gold Seal is earned by recyclers who meet the ARA’s Certified Automotive Recycler requirements and also conduct ongoing customer satisfaction surveying. A description of the program requirements, and a list of Gold Seal recyclers nationwide, is available at the ARA website (www.a-r-a.org).

Among the benefits to a shop of using a Gold Seal recycler is that those recyclers are required to use the ARA part grading and damage codes. Every part from these recyclers includes a

Gold Seal tag that includes a toll-free number a shop can use if a part arrives not as it was described.

“Last year alone, we kicked three Gold Seal recyclers off the Gold Seal program because they didn’t meet the criteria,” a recycler who serves on the program’s oversight committee said at the roundtable meeting. “There was complaints against them from shops, and we removed them.”

Many of the shops at the meeting acknowledged they needed to go back and ask the recyclers they work with if they have the Gold Seal designation.

Participants at the meeting also agreed that more needs to be done to identify in the parts locating services which parts are from Gold Seal recyclers.

The industry also needs to work, they agreed, to help insurers understand that just as “certified non-OEM parts” are better than non-certified, that there are cycle time and other benefits to be gained from using parts from Gold Seal recyclers.

Janet Chaney of Cave Creek Business Developer said the goal of the Recyclers Roundtable is to continue such discussion between repairers and recyclers and to bring in other segments of the industry as needed.

Chaney, who serves as the administrator of the roundtable, said the next meeting is being planned for April 16 in conjunction with the United Recyclers Group (URG) event being held in Denver.

For more information, email Chaney at janet_chaney@earthlink.net

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Custom Corner with Rich Evans

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

Remaking a 1941 Chevy Deluxe Back-End with an English Wheel

This month is a current project I’m working on which is a 1941 Chevrolet Deluxe STD two-door sedan. This is for some of you fabricators out there and other body men who know that sometimes you can’t just replace parts or parts aren’t available. This 1941 Chevy was rear-ended and the impact

lids. Chevys of the ‘40s offer a fiber glass one but this customer wants metal. You know some customers are different, some will play off the fiber glass. Sometimes you can look for used deck lids and I put my feelers out there and I could not find any used deck lids for this ‘41 Chevy. The prob-

On Creative Marketing with Thomas Franklin

Opinions Count lem is the ‘41 Chevy is the only year

damaged the deck lid, the left quarter panel, the bumper fillerDick and theStrom floor. with So I’m having to repair this deck lid because there aren’t any deck lids available, or at least any metal deck

that those deck lids would fit, especially for the sedans. From ‘42 to ‘48 they’re all interchangeable. So that narrows the options a lot .We’ve got a

Action Counts with Lee Amaradio Jr.

Your Turn with Sheila Loftus

Shop Showcase with Janet Chaney

vehicle that doesn’t offer this deck lid as a match for any other year.

The best way to start this process is to take the deck lid off and strip it all the way down to metal, so there’s maybe 65–70 years worth of body work, bondo, paint, etc. I strip all the metal off inside and outside. From that

I can. Then I’m going to take it back to the vehicle, bolt it on, and make sure I’ve got that frame fit as best as it can. I’ll make my adjustments as needed. Then get the latch on it now to make sure it latches, because then I can see everything without having to skin everything. I spend a little bit of

point we’re going to depick the skin from the frame and there’s special tools out there for that. You can find them through Eastwood and different speciality companies like VIMTools.

These guys carry specialty equipment where you can go back and pull things apart without damaging them too badly. Next I drilled the spot welds out then depicked it with a depick tool to roll that edge back out. I take my time on this. I don’t try to get into it too hard because these panels are 70 years old and they’re going to be brittle and have rust in them. If you’re too rough you’re going to have to go back and repair them.

The process I used takes a little bit of time so you’ve got to be patient with it. After removing the skin from the frame, I hammer it out roughly with a hammer and dolly. Use a sand bag if you need to. Try not to stretch the metal too much. Just try to rough it into its shape because metal does have memory. I used a selection of Martin Hammer tools and dollys. If you guys aren’t familiar with Martin Hammers go to their site at www.martinsprocket.com. They’ve been around for years and even have books that tell you how to hammer and dolly and show you different techniques. They have a variety of hammers, a variety of dollys, spoons, you name it—they have it. Their tools will help you to get through a process like this.

I’m going to start with the frame, and hammer it out to get it as close as

time reinforcing, welding, and repairing which will pay off in the end.

After that’s completed I drill two 1/8th-inch holes in the left and right hinge so I know that this structure will go back exactly where it needs to go.

I don’t want to spend a half-hour to maybe 2 hours trying to adjust it and get it back where it was. Now to reinstall it I insert two 1/8th inch dowel pins in there, put your 3 bolts on each side, tighten them, and you’re right back where you were. I call it a mock up.

I’m back on to the skin now. I’ll hammer and dolly it, slapstick it a little bit, get it as close as I can. I’m going to go use the English Wheel to try to even out the metal. You want to do this as a slow process because you don’t want to stretch the metal, you just want to get it back to where it was. You want to make sure all your high and low damage spots are mostly gone. Start working from one end to the other with the English Wheel, roll it, tighten it a little bit, go back through the same process again, roll it some more, make sure you’re not putting too much pressure on. All you want to do is just even it out, and the panel should take its shape back. You want to use the flat side of the English Wheel, the flattest wheel you can get, the ones without any radiuses on them. A slight radius basically. So it’s a back and forth motion, the more you use the English Wheel the more you’ll get comfortable with it. Just

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 37

another tool. Woodward is a sponsor of mine, so check out www.woodwardfab.com. They have affordable tools from hammers to English Wheels to shears. All their stuff is affordable. They have 36-inch throats or 24-inch throats on the English Wheel. You can make that work until you start stepping it up and doing bigger panels like roofs and bigger fend-

Then I can massage it a little more with the hammer to get it closer to fitting perfect.

Now I go outside of the deck lid and find the low and high spots, mark them out and work from there. I can pull some of the low spots out, even out your high spots and then you can start filing at that point. I’m thinking now how far I want to take it and re-

morning and learn something new and try to better myself, it’s all I can do.

That’s basically how I run my day in a nutshell. You have to love what you do, and I love what I do.

Anyone else working on these ‘40s might want to look up a company called Chevs of the 40s. They’ve got at least an inch thick catalog. Visit

sure you get paid for metal time, for fabrication time, all of the above because it is a learned skill and it does take time as well as taking us away from other projects. Cross your T’s dot your i’s, be smart about it, have fun with it. At the end of this build, we’re going to add a little two-tone, put the color back on it while it has its down time.

ers on bigger cars. You can then upgrade to something else.

After I’ve spent about an hour and a half using the English Wheel, I’ll pull the skin out, lay it on the structure that’s bolted to the car. This way it’s easier for me to see how it’s going to fit. Then I clamp it up, but not too much pressure with the clamp because too much pressure will bow the structure and it could twist on you. When it’s sitting right without too much pressure on the clamps you can remove it from the car and set it up. The next step is like putting on a regular door skin. We’re going to roll it back. Some pieces break off on the edges just because it’s been brittle so save those smaller pieces. I found some cracks where I need to roll it. I do the next step with a TIG welder.

Some people use a torch. I don’t have a flame, but I TIG those areas where it allows me to roll that edge over to the frame. Then I can take the pieces that broke off, clamp them there and TIG them back on. Then hammer and dolly the welds flat. With a TIG welder you don’t have a lot of build up as long as you get your settings right.

I don’t weld it in place because I might have to shift the skin around a little bit. I reattach the deck lid to the hinges, set it down, check the gaps to get them right, and do whatever alignments I have to do to massage the skin connected to the frame. Then I put the latch in to make sure the handle fits.

The handle has an alignment part where it has to go through a hole, so I make sure that’s centered and shut.

member, we all need to make sure we get paid for our time.

I’ll put a skim coat of Bondo™ on it, shape it, and try to keep that Bondo™ under an 1/8th inch. Going for 1/16th inch would be better, 1/8th inch at the max. Spend a little more time, use a uni-spotter, nail gun, pull

them at www.chevsofthe40s.com.

They’ll give you a free catalog.

They’ve got parts that I wouldn’t have even known they had.

Often I’ll come across a project where I have to reach out and spend a little time on the computer. Check with friends and find out where

out those lows, if you have to heat a little bit, then heat it and shrink it, keep that metal tight.

I may have to split some panels if some work has been done before on the back. Not a surprise. This car’s been around for awhile. I can split the panels, get the gap a little better. Mock up is key, before you even start shaping. Once I have the gaps I’m pretty much home home free.

Then it’s left to primer block, mask and blast, you’re ready to go.

So those are a few little tips for the process I use. Metal finishing versus taking the easy route and just putting a fiberglass deck lid on. Take some time. Learn and work the metal. It’s all about seat time, that’s how www.autobodynews.com you’re just going to better yourself.

CHECK My daily focus IT is OUT! to get up every

they’re getting parts or if they’ve worked on these types of cars. I even went to Gene Winfield to see if he had any contacts on digging up a deck lid and all the way back to South Dakota to where my brother lives to see if he knew about any deck lids. I must have spent about two days searching for a deck lid and with those two days I have pretty much knocked out this deck lid. I’ve got about 19 hours into the whole process and, again, I want everyone to make sure they get paid for that. If it’s an insurance job, make

The owner wanted to do a few alterations and that’s what make it fun.

With this project I also found a lot of problems, the striker used house screws to hold it on, the lower bumper filler had about 50 self-tapping screws. I welded all the holes and put nut inserts on and marked them out evenly. It just makes for a cleaner job.

You’re not getting paid for this, but you’re practicing to get better, and that’s what we should all do every day.

When I see something wrong, I just take the time and fix it. Do what it takes to make the job better than when it came in and fix other people’s problems that they overlooked. That makes you a better tech and keep on going guys. Better yourselves.

Check out my new show Car Warriors on SPEED, 6pm PST and 9pm PST every Wednesday night. It’s the hottest car build competition show that’s ever hit the airwaves. If you’ve never thought about what you can do in 72 hours, this show will show you what can be done in 72 hours. Trust me, what can be done will blow your mind. Got to my fanpage on Facebook, Rich Evans Designs, become a fan and you’ll be able to stay up to date with everything I’m doing and the projects I’m working on day in and day out.

Talk to you guys next month.

38 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

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

Shop Showcase

Keenan Autobody Cares about Cars, Charity, and the Environment with Chasidy Rae Sisk

Keenan Autobody is a multi-location operator comprised of eight shops in Pennsylvania and one in Delaware with a combined staff of 115 employees. Keenan has three locations in Clifton Heights, PA, in addition to their corporate office.

Keenan Corporate Office

Keenan East, the retail center in Clifton Heights, is 8500 square feet and employs 17 workers. Their Wreck-O-Mended center spans 13,000 square feet and has 11 employees while the Aluminum Repair Center contains 3000 square feet. This

center is staffed from the other shops as they generally only work on 2 or 3 aluminum repairs per month.

Keenan utilizes all of the latest equipment, such as the Car-O-Liner Evo-system and the latest invertertype resistance spot welders. They are factory authorized in BMW and certified

by Mercedes. Additionally, they are ASE certified, I-car gold, as well as a CIC Class A facility. All of Keenan’s shops are VeriFacts VQ shops and are in compliance with Envirosafe. Keenan is affiliated with ASA, CIC, SCRA, NABC, Fix Auto and DuPont Performance Alliance. Keenan processes insurance claims according to CMS standards and they participate in up to 21 direct repair programs at each

Genuine Porsche Parts... Only The Best.

shop. Additionally, they offer a national life-time guarantee, ensuring they will take care of any problems in the future no matter where the customer moves across the country.

Keenan’s operating procedure is unique because they utilize their own 10-step production process in which they define Administrative, Blueprinting, Parts Ordering/Sublet, Mirror Batch/Returns, Release to Production, Body Department, Paint Department, Reassembly, Detail and Final Quality Check.

Keenan Wreck-O-Mended Center

According to Vice President, Michael LeVasseur, Keenan’s success results from their positive corporate culture and their involvement with the industry and the community. Keenan is very involved with many locals

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charities, such as a charity golf outing which they have participated in for 13 years. The proceeds of this event benefit the Philadelphia Ronald McDonald House. Keenan has also taken part in the Guest Chef program for the Ronald McDonald House where Keenan employees make food and serve it to the families of children in St. Christopher’s Hospital, and during the holidays they participate in the adopt-a-family program to provide gifts for these families.

In 2010, Keenan’s Middletown and Edgemont shops were involved for the first time with the First Re-

sponder Extrication Event which benefits firefighters, police and EMTs. During this event, professional trainers instructed emergency service providers on the proper ways to extract people from cars in order to avoid explosives and ensure safety practices. Keenan plans to participate in this event annually.

Keenan also participates in Recycled Rides by refurbishing a salvaged vehicle to like-new condition so that it can be donated to a needy family. They also provide totaled vehicles for use as exemplars on the effects of a DUI accident to display in front of local high schools during prom season. Keenan contributes to local charities, such as MADD, the Children’s Cancer Network and Family Community Services of Delaware County, and also sponsors several local sports teams.

Because Keenan hires from within, they offer room for advancement and career paths. They focus on developing their employees’ skills and are engaged with their work force in terms of education and training. According to Craig Camacho, Keenan’s Marketing Director, they “enable employees to be their best, to do their best”. Keenan believes that with strong leadership, their company is able to come together and make a business.

Keenan East 714 East Baltimore Pike Clifton Heights, PA 19018 (610) 622-0555 www.keenanautobody.com

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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 39

Inside Insurance

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

DRPs and Fear—Hope for a Reduction in the Number of Shops with The Insurance Insider

Let’s start with a simple question: What does “DRP” really stand for?

Conventional wisdom says that with Chasidy Rae “direct repair program” is the correct answer. While that is the literal meaning of the acronym, the non-official translation could easily be, “Don’t remove, please.” I can assure you from many years of experience in the insurance industry that thisChasidy is more true with Rae than most people care to acknowledge.

Many body shops have lost control of their business. As a result, many of those shops spend a lot of time hoping, begging and pleading that they aren’t removed from their DRP lifelines.

When the insurance company says, “Jump,” the shop shouts, “How high, how many times and should I give you a discount for allowing me to jump?”

This isn’t conducive to a marketplace that allows all the stakeholders-repairer, insurer and vehicle owner--to benefit.

Before anyone shouts “Amen,” there are different ways of losing control. Yes, it is true that the insurance industry has assumed some control over a portion of the body shop industry. The control was attained because shops allowing it to happen, and because of the ever-evolving marketplace. That marketplace has seen a drop in claims, double-digit total loss percentages, customers cashing out, $1,000 deductibles on the rise, and damaged vehicles being shipped overseas faster than they can be rolled off an assembly line in a Detroit manufacturing plant.

The end result is a drop in the number of repairable vehicles, leaving many of the 35,000+ repairers in the United States in search of work. In other words, low demand and high supply equals shops desperate for business.

Even though I am referring here to the U.S., international shops have experienced very similar problems.

Australia and the United Kingdom come to mind. In fact, in the U.K., the low supply caused a large percentage of shops to go out of business.

Although neither industry would openly admit it, many insurers and re-

pairers have been anxiously awaiting a mass reduction in the number of shops for varied reasons. High-qual-

Northeast News Sisk

Shop Showcase Sisk

ity, ethical body shops want the bottom-feeders to go out of business. The bottom-feeders invest very little in their businesses – yet they are (unfairly) treated the same as the Tier 1 shop. In most cases, the Tier 1 shop and bottom-feeder have the exact same labor rate in a given direct repair program. How is that fair or good for business?

Insurers need to find a way to differentiate the high quality shop from the bad. That is one reason why insurers like the idea of a shrinking number of body shops. There are so many shops that they have a hard time identifying the high quality shops. In addition, a reduced number of shops would better assist them in controlling the customer’s experience and repair.

There are many shops around the country that have resisted the DRP security blanket and have remained autonomous. This doesn’t make the autonomous shop any better or worse than the DRP shop. It’s simply a different way of doing business. It’s okay to be different. In fact, in this world we celebrate and promote diversity.

And, at least in the United States, if you don’t promote and encourage diversity, you can quickly find yourself on the receiving end of a lawsuit for being discriminatory.

DRPs play a vital role in the industry whether you care to believe it

40 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

or not. They promote competition, can reduce cost (which ultimately benefits the consumer) and can positively impact the customer’s experience. Don’t be hypocritical by questioning my opinion if you are one of the many enrolled in a DRPtype health care program. If you are currently enrolled in an HMO or PPO program, please don’t send me any hate email on how stupid I am. In the immortal words of Forest Gump, “Stupid is as stupid does.”

While I was joking about “Don’t remove, please,” the fact is many

shops do operate in total fear. Fear that at any given moment they could lose a significant amount of their business and revenue. While this may not be fair, shops that heavily rely upon DRPs benefit the most from these relationships. In the end, it is a decision made on an individual level as to what is best for that business.

Just be careful that the oxygen that the direct repair program is providing your shop isn’t your only source of air.

Otherwise, you risk having the plug pulled when you expect it the least.

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Publisher’s Page

Jeremy Hayhurst is a former geologist, university science publisher, and now newsmagazine owner who started working in a body shop in high school. Contact him with your ideas and suggestions at publisher@autobodynews.com

Autobody News: Fresher than Fishwrap and it’s Free with Jeremy Hayhurst

our newsmagazine, and the Post OfI’ve been a publisher for about 30 fice doesn’t always get your address years and one of my guiding principles is that publishing is not about right. Also, you might be surprised publishers. I also believe that editors how many “body shops” in the yellow should be felt but not heard, but I’m pages do nails and skin and not paint and quarter panels. going to break my rules on this one special occasion only.

First, a genuine goes with welcome Joe Momber out to all our new readers in the Northeastern United States. We have just mailed our first issue to 8,200 auto body shops, jobbers, suppliers, and dealerships in New York, New Jersey, Pennsylvania, and Delaware, so if you’re reading this, you’re on our list.

Autobody News now goes by mail to 30,000 body shops and other Annebritt and Kristy (r) made thousands of key players in the industry throughout phone calls to body shops in the Northeast the U.S. every month in our four reand got their share of comedians on the line gional editions. with Jeremy Hayhurst Of course before we could mail With all the turmoil and dislocaall those copies we had to verify tion in the industry in the last few who’s doing what in your four state years, even professionally provided region. We pay a lot to print and mail databases are out of date. A lot of

My Turn

Shop Showcase

Hey Toby! with Toby Chess

The following dealerships are eager to serve your needs.

Call your local Subaru collision parts specialist today!

shops from the available database lists are no longer answering their phones.

But our database isn’t obsolete. We know who and where Northeastern body shops are and what they do because Annebritt and Kristy from our office literally called them all to verify that they’re involved in collision repair and that they are still doing business.

Of course they got their share of “I don’t cares” and hang-ups and even the odd “we don’t need any more &*$@ mail” but they also got a lot of friendly and funny responses from shop operators and owners. Here are a few that come to mind.

Are you still doing business at XYZ address? ● I hope so. It’s where I drove today.

There are a bunch of other guys who drove to the same address as well. ● Have been for 40 years. Never got the urge to move it all somewhere else. ● Why? What have you heard? ● Yes, but not as much of it.

Are you still doing body work, or are you a body shop? ● What did you do now? [We could see the hands on hips.] ● Yep. If you can wreck it, we can fix it. ● Yes. We can fix anything except broken hearts. ● All day, every day. If I didn’t love it, I’d be a doctor. and our favorite: ● No, I’m a red brick sh** house!

(Followed by her own hysterical laughter.)

With such a receptive and (ahem) witty audience we’re excited to be launching this, the fourth regional edition of our newsmagazine, and look

California Autobody Association with David McClune NEW YORK

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NEW JERSEY

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Year in Quotes

Sean Hartman and Joe Momber (r) have many years of automotive, collision, and advertising expertise between them

forward to providing our new readers in the Northeast with the same indepth national and regional news that we’ve been providing to shops in our other three regions, for over 29 years.

Our Western Edition goes to 8,500 body shops in CA, AZ, and NV. Our Southwest Edition is mailed monthly to 6,500 body shops in TX, OK, LA, and NM. Southeast goes to 5,400 in FL, GA, MS, and AL. But you don’t have to be on our mailing list in one of these states to read Autobody News. Anyone can read any of our editions, whether or not they get hardcopy, by going to autobodynews.com > current & back issues and selecting the regional edition they want to see. As we think of it: it’s fresher than fish, and it’s free.

Some have asked if we’re crazy to be expanding when much of the industry is still in a recession, but in these challenging economic times, if you’re not moving ahead, you’re falling behind. Those shops and businesses that have survived over the last 24 months are in a unique position to build on their brands’ strength and get even stronger. That’s why we’re expanding into the northeast now.

We are learning from our advertising clients that they want to take advantage of dislocations caused by distressed businesses and position themselves as new leaders with new products and services for the industry.

In short—like them—we have decided not to participate in the recession.

Any publication that competes for your valuable time and attention needs to speak for itself, but it may be of some interest to know where Autobody News came from..

Our paper was started by Leta Amick in California as a “very regional publication” in 1982. Joe Momber, our advertising sales manager, started working with Leta in the spring of 1996. When Rich and Debbie Neubauer bought Autobody News from Leta in 1999, Joe stayed on and worked with them until 2003.

Barbara Davies (a New Jersey native and marketing advertising specialist) and I bought the paper from See Fresher than Fishwrap, Page 43

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 41

Industry Insight with John Yoswick

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

Contact him by email at jyoswick@SpiritOne.com.

Paint Complaint Does Not Have to Mean Unhappy Customer lution based on interviews with shop “I have my staff say something owners. like, ‘Oh, thank you for letting us Skip the excuses. It’s easy to fall know about this,’” one shop owner with Ed Attanasiointo a pattern of trying to explain away said. “‘I’m sorry for the inconven“The paint on the repaired panels problems (“The parts weren’t avail- ience this is causing, but let’s see how does not match the rest of the car. The able,” “We didn’t know about that,” we can make this better for you.’” shop says it cannot be made to match. “Our technician missed that.”)

Decide on a solution. Make a I find this impossible to believe.”

An explanation later is fine, but it suggestion for a solution and ask, shouldn’t be the starting point. And “Fair enough?” Or ask the customer These words, an actual comment the explanation should never sound what he feels is fair. In any case, make written by a customer of a U.S. shop, defensive. sure employees have the power to are not exactly what you’d like to see “One of my estimators agreed to make a decision quickly. One study on the comment cards or customer sat- refund $100 to a customer, but he did found that 95 percent of complaining isfaction indexing (CSI) reports you it with such a lousy attitude the cus- customers will return if their comreceive. That’s why it seemed surprising that the shop owner said he was actually pleased when his CSI provider faxed him a copy of the customer’s gripe.

“Yeah, of course, I always dread finding out that we blew it with a cus1. Apologize. Let them know that you’re sorry they’re unhappy. tomer,” the shop owner, who asked 2. Remain positive. Don’t argue with them or sound defensive. that his name not be used, admits.

3. Empathize with them. Let them know you understand how they feel.

“But on the other hand, I’m not there in the shop all day, every day, any4. Listen. Don’t interrupt. Give them a chance to tell you everything. more. I might not have known that this 5. Ask questions. Confirm that you have a full understanding of their woman left so unhappy with us. Beneeds. cause (our CSI provider) lets us know 6. Be an ambassador for your company. Let them know that you will right away about negative comments, personally handle this situation.

I was able to call this lady and let her know that I would be getting this 7. Don’t blame others or pass the buck. Admit that you (or the comtaken care of for her.” pany) was wrong. Don’t dwell on causes or excuses.

It wasn’t an easy or inexpensive fix.

8. Respond immediately. Do whatever you can do to get the problem The shop owner said he personally fixed as quickly as possible. Delays work against you. picked up the woman’s car and brought it to the shop to be resprayed.

9. Try to establish or maintain some rapport with the customer.

“On paper, that job was a money10. Use humor when possible. Making people laugh puts them at loser, no doubt about it,” he says. “But ease. that woman has actually referred at 11. Agree on a solution. Make sure it is acceptable to them. least two more jobs to us in the couple 12. Follow through. Make sure things get done how and when you said of months since then. This is someone who left here unhappy, ready to show they would. anyone who’d listen what a lousy job—at least in her mind—we had done, but now she’s telling people tomer still left unhappy,” one shop plaint is resolved on the spot, but this how great we are.” owner said. “If you do something for percentage plummets if the customer This shop owner’s experience a customer, do it willingly even if you has to wait or jump through any points out that addressing an unhappy don’t think it’s owed. Don’t do it be- hoops. customer’s concerns effectively can be grudgingly. Do it with a smile on your Assure them you’re changing. every bit as valuable as working to face and allow them to feel that you’re Let them know that not only will their avoid having unhappy customers in the doing it because it’s the right thing problem be fixed, but that you are takfirst place. Studies show that if you adyou do. Either way, you’re out the ing action to see that similar situations dress a customer’s concern quickly, that $100 today, but if you do it right, don’t occur in the future. customer can become one of your most you’ll keep their business long-term.”

“Customers like thinking they’ve loyal—even more loyal than someone Start with empathy. While an apology helped you and future customers,” one who left satisfied in the first place. is important, it’s critical that the cus- shop manager said.

Here are some general guidelines tomer also feels that you understand Go beyond resolution. Create a and tips for customer complaint reso- the position they are in. “story” for the customer to tell by fixStrategies for preventing customer dissatisfaction—and dealing with it when it happens

Shop Showcase

12 principles for solving customer complaints

42 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com

ing the problem in a memorable way.

Make another concession they were not expecting. Give or do something extra. The cost of giving something away is usually much less than the cost of losing a customer’s future business and the business of all those he tells his story to.

One shop with three locations in Illinois actually has a budget line in its annual expenses fund that office staff can use “to soothe things over with customers.” A customer who brings a car back because of a problem may receive a couple of movie passes or a coffee shop gift certificate they can use at the near-by mall if the shop will need the car for an hour or more.

“If we’ve really blown it, we’ll send them a restaurant gift certificate, particularly if it’s a repeat customer or one referred to us,” the shop owner said.

It’s important, too, to look for trends in the complaints your shop receives in order to make longer-term adjustments and corrections. Getting to the root cause of problems isn’t always easy. One technique that can help you get to the root of a problem is the “five why’s;” you often have to ask “why” at least five times to get to the root of a failure.

Here’s an example: Why was Mrs. Jones not satisfied with our service?

Because her car wasn’t ready until a day later than we promised.

Why was her car delivered a day late?

Because we were waiting for a part.

Why wasn’t the part here?

It didn’t get ordered until the car was ready to go.

Why didn’t it get ordered sooner?

Because we didn’t know until then that we actually had the wrong part.

Why didn’t we know we had the wrong one?

Because the technician didn’t check it when it arrived.

After five whys, you usually begin to see what needs to be fixed.

This can be time-consuming, but CSI can help you spot trends, allowing you to focus your attention on the areas that seem to account for the most complaints.

Continued from Page 41

Fresher than Fishwrap

the Neubauers in the summer of 2007 just as the recession was starting to bite into the collision industry. We soon experienced the market’s ‘unintended deceleration’ before we realized that that is pretty much the definition of a collision, and we were truly in an accidental industry. Shortly after that we met Joe Momber and he came back to work with us. Now we have another sales executive, Sean Hartman, an upstate New Yorker who’s a trained service tech, working with Joe—who’s from Michigan.

Another question we got is why we’re doing a new print publication— on real but environmentally friendly recycled paper—instead of being another on-line source trying to jam your email with yet another e-subscription.

Of course, we offer email subscriptions as well, but more on that later.

It’s no secret that general newsprint has been on the decline almost everywhere as more and more people get their news from targeted on-line sources, but we believe in

print, because we believe in the editorial process. We’re in an age of instant news via the internet, tweets, and blogs of all stripes, as well as new media hubs providing video, chat, and other social networking. All have their place, but what many readers need and want is an editorial perspective that sifts the information for what’s most important. That’s why Autobody News tries to survey all our sources to distill and condense information that you might not see elsewhere. After all, you can read the same wire story from a variety of sources, but you can’t assemble them into a convenient format online unless you know what you’re looking for. We know you’re busy, the selection of content is as important as the content itself, and we try to keep our content succinct and to the point.

We also believe in the power of advertising, especially in print. It’s those companies who are financially viable, have products and services that have been successful for many years, who are able and willing to advertise that you should be doing business with. If a company cannot afford to represent itself in print, and has budgets and cash flow appropriate only for

Seeing Autobody News for the first time?

TThat hhat means you’re you re one of the 330,000 0 body shops, parts ddealers, e suppliers, and vendors on our mailing list. on We’d W e’d llike ike ttoo ssend end yyou our unique coverage on a regular basis, so just go to our website, www.autobodynews.com, and register your email to see news from other regions.

It's FRESH and it’s FREE. You can also download or read any of our four regional editions in our pageturner format. Don’t forget to check Or see us on out our columnists from the menu Or, Facebook, cebook, www.facebook.com/autobodynews

email blasts, it likely will have other problems that you don’t want to learn about after they become your supplier.

We’re not talking about the size of the business here. A small company with a good product has every chance of success as its “cream rises to the top.”

Publisher and editor, Jeremy Hayhurst, Founder Leta Amick, and General Manager, Barbara Davies

Similarly, a small news magazine or media source can be as useful as a big one, if it sticks to its mission and makes a genuine effort to be original.

There’s no shortage of unique media perspectives in the collision industry.

And therein lies the dilemma for the news business.

Every media outlet wants to cover the news as fully as it can, to be comprehensive and be the go-to source for its readers, but this leads to a lot of redundancy where you see the same content on different channels, sometimes at the same time. Are you ever surprised when CNN, FOX, and MSNBC have the same event on simultaneously?

Collision repair is fundamentally a local industry, since no one takes their damaged vehicle further than necessary for quality repair. When you combine that with local state regulation, local market conditions, and the business environment your shop is in, you need to know what’s going on locally.

As Autobody News grows we’re able to leverage our contacts to give readers a better snapshot of what’s happening nationwide, from the grass roots up. What happens in other states, especially with legislation and activities of shop associations coast to coast, is also relevant for informed shop owners and managers. That competitor down the street may be a much closer ally than you realized.

Every month in Autobody News you’ll see coverage of the harder news: the legislative back and forth, insurance-related actions, OEM auto dealerships and their parts distribution

methods, and parts makers—whether OEM or the Aftermarket. We also provide technical content including information that many other publications don’t, such as I-CAR’s Advantage Online, and ALLDATA’s All OEM Information column.

We have profiles of body shops in our Shop Showcase stories, and other businesses in our Company Connections articles, and we combine the two in our Shop and Product Showcases, where shop owners and managers talk about products that have improved their businesses. Of course we also cover the business aspects of running a body shop.

We have a long-standing group of columnists who are some of the best in the industry. Check out Toby Chess, Rich Evans, John Yoswick, Tom Franklin, Chasidy Sisk, Lee Amaradio, Tom McGee, Dan Espersen, Gonzo Weaver, Walter Danalevich, and many others for their ongoing insight.

We cover the auto body associations as much as we can, because we believe they’re good for shop owners who should join them and support them more. A bundle of sticks is much harder to break in half than an individual stick broken one by one.

We hope you like and support Autobody News with your valuable time and attention, because it’s your newsmagazine, and without your involvement as a reader, writer, or contributor there wouldn’t be much point in producing it. We want to hear what you want to see. In the unlikely event that you don’t like it, we want to know about that as well.

As a regional publication, there’s always need for more local content and we are expanding our contributors to get more of that than any other comparable collision publication.

We will add to our mailing and email list continuously as we are contacted by shops and people not already on it. Turn in your friends who are not getting Autobody News. They’ll thank you for it.

Or, get us your and their email for a convenient way to review our twice monthly HTML newsletter. It’s a quick and easy way to stay on top of all four editions at once.

Autobody News has mailed to every operating shop we know about in our other regions for as long as 29 years. We hope your business will thrive for at least the next 29 and we’re here to help that happen.

www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 43