April 2018 Northeastern Edition by Autobody News

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PA Shop Owner Files Nearly $713,000 Lawsuit Against Progressive by Stacey Phillips

Across the country, “insurers aren’t fully reimbursing consumers so they can have proper and safe repairs done,” according to Ron Perretta, owner of Professionals Auto Body in Pennsylvania. “It’s impossible for the shops to fix these cars properly [while] being paid what they are being paid,” said Perretta. “Their hourly rates are being suppressed and the repair operations that are needed to fix these cars properly have been suppressed.”

He said insurers continue to “bully” shops into lowering their rates and not performing operations required to bring the vehicles back to their pre-loss condition. After experiencing this firsthand for many years at his two Pennsylvania locations in Altoona and Duncansville, Perretta filed a lawsuit against Progressive in 2017. According to court documents, “Progressive had a contractual duty to the insureds and third-party claimants to compensate Professionals for the reasonable and necSee Progressive Lawsuit, Page 20

NY Collision Shop Owner Found Guilty of 3 of 4 Charges

east to west on Sittlerly Road in Halfmoon at high speed, failed to After eight hours of deliberations make a curve, and hit a tree. In a statement on the jury over a two-day period, a verdict, Saratoga County Saratoga County jury on District Attorney Karen March 16 found Ballston Heggen said Cole was Spa, NY, body shop owner found guilty of assault in John Cole guilty of three of four charges lodged against the second degree, a Class D violent felony, driving him over a one-car crash while ability-impaired, a that left a passenger paraJohn Cole traffic violation, and recklyzed from the neck down. Cole was indicted in October by less driving—an unclassified misdethe Saratoga County District Attor- meanor. The jury found him not guilty of ney’s office for being the alcoholimpaired driver of a car that drove See Shop Owner Guilty, Page 67 by Glenn Griffith, The Record

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Vol. 9 / Issue 1 / April 2018

Non-OEM Parts Legal Battle, Begun in 1997, Set for Trial in May 2018

A federal judge in February declined in rejecting State Farm’s calls for to dismiss a $9 billion class action dismissal of the suit that whether or racketeering lawsuit against State not the Avery judgment should have Farm over the insurer’s alleged role been overturned, the vehicle owners in the election of an Illinois Supreme involved deserve to know they lost fairly. Court judge—setting the “Plaintiffs seek to vindistage for the latest trial in a cate their right to be judged decade-long battle involvby a tribunal that is unconting the insurer’s use of nonaminated by politics,” Judge OEM parts. Herndon wrote. The lawsuit claims The suit is seeking triple State Farm helped secure the damages of the Avery the 2004 election of Justice Lloyd Karmeier suit plus more than a dozen Lloyd Karmeier, and that Karmeier improperly participated in years of interest—a total of about $9 the reversal of a $1 billion judgment billion—for the 4.7 million vehicle against the insurer in 1999 in the owners represented in the original Avery vs. State Farm class action Avery suit. Trial is set to begin May 7. lawsuit. Without passing judgment on How did we get here? the merits of the current case, U.S. So how does a non-OEM parts lawDistrict Judge David Herndon said See Legal Battle, Page 46

Uber Halts Autonomous Car Testing After Pedestrian is Killed in AZ, First Known Fatality by Self Driver

ter: “Our hearts go out to the victim’s family. We are fully cooperating with A woman has died after being struck local authorities in their investigation by a self-driving Uber vehicle in of this incident.” It is believed that Elaine Tempe, Phoenix, AZ. The Volvo XC90 was operating Herzberg, 49, is the first pedestrian in autonomous mode when it hit the to be killed by an autonomous car. The incident occurred between Mill Avenue and Curry Road on the night of March 18. Police said the victim was crossing the road outside of a crosswalk at the time of the collision. The woman was taken to The autonomous Volvo XC90 struck a pedestrian as she the hospital, where she died crossed the road. Credit: ABC15 from her injuries. The National Transportation woman as she crossed the road, police said. A vehicle operator sat be- Safety Board said in a tweet that it is hind the wheel at the time of the “sending a team to investigate” the incident, but the car was carrying no incident. Uber had been testing its auother passengers. Uber said in a statement on TwitSee Uber Halts Car Testing, Page 22

by Alistair Charlton, GearBrain

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Design and Format Changes at Autobody News

REGIONAL 3 Brothers Were Among 8 Queens, NY, Residents Pinched in City-Wide Towing Racket Scheme. . . . . . . . . . . . . . . . . 6 AASP/NJ Welcomes Two New Board Members . 18 ABS Auto Glass Advises Drivers to Be Aware

Ledoux - OE Shop Certification Programs: Assured Performance Network . . . . . . . . . . 22 Phillips - Emotional Intelligence Is a Key Element for a Successfully Run Body Shop . . 42 Yoswick - OEM Info Websites Have Existed for 15 Years . . . . . . . . . . . . . . . . . . 28

on Road This Spring . . . . . . . . . . . . . . . . . . 18 ASA-CT Appoints New Association Leaders . . . 12

NATIONAL

ASA-MARI Learns About Hybrid,

4 Tips to Setting Labor Rates in the New Year . . 4

Electric Vehicles . . . . . . . . . . . . . . . . . . . . . 14 Carubba Collision Donates Total of $20,000 to Western NY Charities. . . . . . . . . . . . . . . . 18 CCPS Tech Center in MD to Allow PA Students to Fill Open Seats . . . . . . . . . . . . . 17 Ex-Whitman, MA, Cop Charged With Auto Insurance Fraud . . . . . . . . . . . . . . . . . . . . . 10 Fire Breaks Out at D & D Auto Body in Utica, NY . . . . . . . . . . . . . . . . . . . . . . . . . 14 Former Auto Body Tech, Shop Manager to Retire as Voc-Tech School Principal, MA . . . . 8 Long Island, NY Shop Acquired by MSO. . . . . . 16 Nor’easter Leaves East Coast Auto Glass Shops Without Power . . . . . . . . . . . . . . . . . 12 NY Collision Shop Owner Found Guilty of 3 of 4 Charges . . . . . . . . . . . . . . . . . . . . . 1 PA Shop Owner Files $713,000 Lawsuit Against Progressive for Underpayment of Legitimate Costs . . . . . . . . . . . . . . . . . . . . 1 Potholes Pop up Amid Recent Weather Changes in PA. . . . . . . . . . . . . . . . . . . . . . . 16 Saugerties, NY, Auto Body Repairman Charged With Fraud, Larceny for Uncompleted Jobs . . . . . . . . . . . . . . . . . . . 18 The Collision Centers Repairs Donated Vehicle for Long Island, NY, Mother . . . . . . . 14 WTCC Announces SkillsUSA Regional Winners in Williamson, NY. . . . . . . . . . . . . . . 9

A Tale of Two Paints: A Visit to Axalta’s Training Center in Concord, NC . . . . . . . . . . 30 AMi Hires Michael Cassata as Director of Collision Industry Outreach . . . . . . . . . . . 56 Artificial Intelligence Coming to Auto Glass—and Insurance, Mitchell Uses Image Recognition to Confirm Repairs . . . . . . . . . . . . . . . . . . . . . . 4 Consumer Watchdog Calls for National Moratorium on Robot Car Testing After Self-Driving Uber Kills Arizona Woman . . . . . 4 Factors Affecting Vehicle Sales, Insurance, Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 How Do the U.S., Canada Differ in Their Fight Against Insurance Fraud? . . . . . . . . . . . . . . 55 GCIA Kicks Off 2018 with Presentation NHTSA’s Approach to Autonomous Vehicles Taking Form . . . . . . . . . . . . . . . . . . . . . . . . 52 Sisk - In-House Money Makers: ASA Partners With Bosch for 2nd Webinar in Series . . . . . 38 State Farm, I-CAR Insurance Gold Class Status . 31 Study: Connected Car Owners Would Not Buy a Self-Driving Car. . . . . . . . . . . . . . . . . 47 Today’s Vehicles Driving Change Within the Collision Repair Industry . . . . . . . . . . . . 58 Uber Halts Autonomous Car Testing After Pedestrian is Killed in AZ, First Known Fatality by Self Driver . . . . . . . . . . . . . . . . . . 1 Welcoming the Next Generation of Collision Repair . . . . . . . . . . . . . . . . . . . . . . 26

COLUMNISTS Attanasio - Teresa Aquila Just Won’t Quit... Ever! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Attanasio - When Was the Last Time You Updated Your Website? . . . . . . . . . . . . . . . . 44

WIN Announce Recipients of the 2018 Most Influential Women in Collision Repair Award. . 39 Yoswick - Non-OEM Parts Legal Battle, Begun in 1997, Set for Trial in May 2018 . . . . . . . . . 1

No magazine can go 36 years in print without some updates and changes to freshen its appeal from time to time. We’re no exception at Autobody News. Regular readers will likely have already noticed some look and feel changes to our print news magazine this month. The masthead on top of the cover page has been updated to be less dense and more ‘eye-inviting.’

INDEX OF ADVERTISERS

CONTENTS

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

Acura of Westchester. . . . . . . . . . . . . . . . . 44 Amato Agency . . . . . . . . . . . . . . . . . . . . . . 34 Atlantic Hyundai . . . . . . . . . . . . . . . . . . . . 54 Audi Fairfield . . . . . . . . . . . . . . . . . . . . . . . 49 Audi Wholesale Parts Dealers . . . . . . . . . . 57 Axalta Coating Systems . . . . . . . . . . . . . . . . 2 BMW of Tenafly . . . . . . . . . . . . . . . . . . . . . 18 BMW Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . 64-65 Cadillac of Mahwah . . . . . . . . . . . . . . . . . . 61 CarcoonAmerica Airflow Systems. . . . . . . . 39 Carworx Distribution . . . . . . . . . . . . . . . . 8-9 Central Avenue Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . . . . . . 30 ChemSpec USA, LLC . . . . . . . . . . . . . . . . . 60 Classifieds. . . . . . . . . . . . . . . . . . . . . . . . . 70 Collision Equipment Consulting, Inc. . . . . . . . . . . . . . . . . . . . 10 Colonial Automotive Group. . . . . . . . . . . . . 43 Dent Magic Tools. . . . . . . . . . . . . . . . . . . . 14 ECS Automotive Concepts . . . . . . . . . . . . . 26 Empire Auto Parts . . . . . . . . . . . . . . . . . . . 50 EMS Automotive . . . . . . . . . . . . . . . . . . . . 28 Equalizer Industries, Inc. . . . . . . . . . . . . . . 16 Flemington Auto Group . . . . . . . . . . . . . . . 53 Ford Wholesale Parts Dealers . . . . . . . . . . 58 Fred Beans Parts . . . . . . . . . . . . . . . . . . . . 72 Fuccillo Kia of Schenectady . . . . . . . . . . . . 23 GM Wholesale Parts Dealers . . . . . . . . . . . 63 GYS Welding USA . . . . . . . . . . . . . . . . . . . 48 Healey Brothers. . . . . . . . . . . . . . . . . . . . . 29 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . . . 52 Infiniti of Norwood . . . . . . . . . . . . . . . . . . . 31 Insta Finish Car Care . . . . . . . . . . . . . . . . . 15 JiffyJump.com . . . . . . . . . . . . . . . . . . . . . 50 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . . . 59 Launch Tech USA. . . . . . . . . . . . . . . . . . . . 71 Lynnes Auto Group . . . . . . . . . . . . . . . . . . 51 Malouf Chevrolet-Cadillac . . . . . . . . . . . . . 42 Matrix Automotive Finishes . . . . . . . . . . . . 11 Mazda Wholesale Parts Dealers . . . . . . . . . 56

We’ve also made the type a bit larger for both our national and regional stories. We hope this provides a bit of relief for tired eyes. There is more whitespace around the text colums making a slightly bigger margin on the page. We’ll be making some logo and format changes in our online, social media, and newsletter formats as well. Stay tuned and please let us know what you think. Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.comx

McGovern Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Mercedes-Benz . . . . . . . . . . . . . . . . . . 36-37 Mercedes-Benz of Atlantic City . . . . . . . . . 35 Mercedes-Benz of Fairfield . . . . . . . . . . . . 49 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . . . . . . 35 Mercedes-Benz of West Chester . . . . . . . . 35 Mercedes-Benz of Wilmington . . . . . . . . . . 47 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . . . 68 MINI Wholesale Parts Dealers . . . . . . . . . . 66 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . . . 66 MOPAR Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . 40-41 Nissan/Infiniti Wholesale Parts Dealer . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Nucar . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Original One PartsTM. . . . . . . . . . . . . . . . . . 19 Ourisman Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . 17 Porsche of Fairfield . . . . . . . . . . . . . . . . . . 49 Porsche Wholesale Parts Dealers . . . . . . . . 62 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ProLine Tool & Supply, Inc.. . . . . . . . . . . . . 46 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Robaina Industries, Inc. . . . . . . . . . . . . . . . . 27 SATA Dan-Am Company . . . . . . . . . . . . . . . 5 Schultz Ford . . . . . . . . . . . . . . . . . . . . . . . 55 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Spanesi Americas . . . . . . . . . . . . . . . . . . . 25 Subaru Wholesale Parts Dealers . . . . . . . . 67 Symach. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Tasca Automotive Group . . . . . . . . . . . . . . 45 Toyota Wholesale Parts Dealers . . . . . . . . . 56 VIP Honda . . . . . . . . . . . . . . . . . . . . . . . . . 38 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . . . 69 Westbury Jeep-Chrysler-DodgeRam-SRT. . . . . . . . . . . . . . . . . . . . . . . . 13

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Consumer Watchdog Calls for National Moratorium on Robot Car Testing After Self-Driving Uber Kills Arizona Woman

by Consumer Watchdog

Consumer Watchdog has called for a national moratorium on robot car testing on pubic highways, after an Arizona woman was killed by a self-driving robotic Uber in Tempe, Arizona. See story on cover this issue. ‘There should be a national moratorium on all robot car testing on public roads until the complete details of this tragedy are made public and are analyzed by outside experts so we understand what went so terribly wrong,’ said John M. Simpson, the nonpartisan, nonprofit group’s Privacy and Technology Project Director. ‘Arizona has been the wild west of robot car testing with virtually no regulations in place. That’s why Uber and Waymo test there. When there’s no sheriff in town, people get killed.’ According to the Tempe police, the deadly incident happened Sunday night at approximately 10:00 pm, when the car hit a pedestrian. The vic-

tim later at the hospital. The robot car was in autonomous self-driving mode at the time of the collision and had a human supposedly ready to take control of the wheel in the car, the police said. Consumer Watchdog said the tragedy underscores the difficulty robot cars have in interacting with pedestrians and cyclists, as well as human driven vehicles. Such shortcomings in the robot technology were made clear in the so called ‘disengagement reports’ that companies are required to file when they are permitted to test in California. The reports, which document when a test driver had to intervene, are filed annually with the Department of Motor Vehicles’ website. No such disclosures are required in Arizona. Although this is the first known death caused by a robot car on public roads, this tragedy is unsurprising given the information revealed in the disengagement reports about the ‘au-

tonomous’ capabilities of these vehicles, said Consumer Watchdog. Earlier this year twenty companies released ‘disengagement reports’ showing robot cars cannot go more than 5,596 miles in the best-case scenario without a human test driver taking over the wheel. In most cases, the vehicles cannot travel more than a few hundred miles without needing human intervention, Consumer Watchdog noted. Despite the information revealed in these reports, the California DMV gave robot cars the green light to hit the road without a human driver ready to take control next month. ‘If robot cars are already killing people even with the presence of a human driver in the car, how lethal are these technologies going to be next month when they will roam public roads without a human onboard ready to take control?’ asked Sahiba Sindhu, a consumer advocate at Consumer Watchdog.

Consumer Watchdog said all data from the Arizona fatal crash should be made public so it can be analyzed by outside experts. The group said Uber has demonstrated a concern about rushing robot vehicles on to the road, not a concern about safety. An email exchange between former Uber CEO Travis Kalanick and then lead robot car developer Anthony Levendowsk, revealed in the recent Waymo-Uber lawsuit, makes clear the corporation’s lack of concern for public safety. ‘I just see this as a race and we need to win, second place is first loser’ read one text from Levandowski in March, 2016. ‘We do need to think through the strategy to take all the shortcuts we can find,’ said another from the engineer on the same day. ‘Uber simply cannot be trusted to use public roads as private laboratories without meaningful safety standards and regulations,’ said Simpson. Visit them at www.consumerwatchdog.org

Artificial Intelligence Coming to Auto Glass—and Insurance, Mitchell Uses Image Recognition to Confirm Repairs by Tara Taffera, glassBYTEs.com

Artificial Intelligence (AI) is coming to the auto glass and insurance industries. Case in point, Mitchell International is exploring a computer vision application that uses image recognition to confirm repair vs. replace decisions. This is according to the company’s 2017 Third Quarter Industry Trends Report. Computer vision researchers at Carnegie Mellon demonstrated the ability to detect and understand small movements. Mitchell said in its report, ‘Instead of an automotive repairer just getting guidance on the next step in a given repair procedure, they could get real-time evaluation of ancillary

problems detected by computer vision.’ In fact, in February 2018, glassBYTEs reported that Autoglass, a vehicle glass repair and replacement company based in the UK and owned by Belron, tested the latest AI technology to assess the severity of vehicle glass damage. The company said this can be used to determine whether customers require a repair or a full replacement. An article written by Olivier Baudoux, vice president, Global Product Management, auto physical damage solutions, authored an article in the Mitchell Report, saying that AI will be used in the future of auto glass claims workflow. First, the concept has to gain traction.

4 Tips to Setting Labor Rates in the New Year

by Sam Valenzuela, National AutoBody Research

It’s the New Year, and many body shops use this time to consider changes to their labor rates. But for collision repairers, 2018 is distinctively different from prior years. A new reality of advanced, high technology vehicles has arrived and dramatically changed the collision repair landscape forever. More than ever, proper labor rate pricing is crucial for body shops to sustain long-term profitability, growth, 4

and prosperity. At NABR, we’ve been actively surveying, studying, and analyzing labor rates for quite some time now, enhanced through our Variable Rate System (VRS) software. After communicating with thousands of body shops and seeing first hand how they make decisions about pricing their labor, we have some basic steps to share for anyone who wants to take action on their labor rates for 2018. First, let me provide some context. About 4,650 individual body

APRIL 2018 AUTOBODY NEWS / autobodynews.com

‘With rapidly changing conditions that put more drivers and more complex cars on the road, it’s no surprise that auto claim value and loss costs have increased substantially in recent years,’ said Ryan Mandell, director of performance Consulting for Mitchell Auto Physical Damage Solutions. He added that AI is ready to tackle these increased workloads with specific solutions. Baudoux’s article went on to say that ‘once the meaningful data is identified, AI can help to elevate the right information in a way that assists and expedites workflow processes. By leveraging AI and visual computing to analyze photos for example, AI-enabled workflow solutions can use machine learning technology to

shops nationwide have submitted labor rate surveys to us. From that survey data, posted rates for body labor range from $57 (national average) to $88 (+2 standard deviations). New surveys submitted within the last twelve months range from $63 to $98 (avg to +2 std dev). Doing a comprehensive labor rate analysis for your shop can be complex and quite involved, so instead, we offer here 4 simple steps to help get you on the road to finding the right price for your individ-

minimize estimate errors and maximize review efficiency.’ In that vein, Mitchell launched the Mitchell Assistance Review Project 18 months ago to accomplish this goal. ‘By utilizing millions of damaged vehicle photos, computers are ‘trained’ to recognize vehicle damage and use computer vision to double check repair versus replace decisions. This will help carriers achieve better estimate consistency, maintain estimate quality and be more selective about sending appraisers into the field, all while improving cycle times and productivity.’

We thank Tara Taffera and glassBYTEs .com for reprint permission.

ual shop.

1) Consider your market’s overall cost of living. This can serve as a simple sanity check to help ensure your labor pricing is within a reasonable range for the area you operate in. While there is no official US government cost of living index that compares the cost to live in different cities, there are some online resources that do. One is AreaVibes.com, which can give you a See Your Labor Rates, Page 48

autobodynews.com / APRIL 2018 AUTOBODY NEWS

3 Brothers Were Among 8 Queens, NY, Residents Pinched in City-Wide Towing Racket Scheme by Robert Pozarycki, QNS

Eight Queens, NY, residents and two local towing operators were named in a massive indictment for allegedly participating in an illegal towing racket across the five boroughs. “If you were involved in a collision between June 2015 and December 2017 and received assistance from a tow company, chances are, you were an unwitting customer of an illegal enterprise that dominated New York City’s towing industry until our takedown today,” Manhattan District Attorney Cy Vance Jr. said in a Feb. 21 statement announcing the indictment. The participants allegedly worked together to form a criminal enterprise, profiting from insurance fraud, bid rigging and other crimes in order to control not only the towing of disabled vehicles from city streets, but also in many cases, where those vehicle would be repaired. Hempstead resident Daniel Steininger, 43, led the ring that operated between 2015 and 2017, according to prosecutors. Working with 16 co-conspirators and a number of auto body repair shops and towing companies, the operation restricted competition in the towing industry; fraudulently bought out competitors in the towing industry, along with their licenses; and committed insurance fraud by inflating claims for work conducted at the participating auto body repair shops. Vance said the conspirators disregarded long-held citywide regulations of the towing industry, which includes geographic service zones for operators and rotational accident response programs to ensure fair competition. Steininger, who owns D&D’s Impressive Auto Collision based in Manhattan, began working with Staten Island’s Norman Teitler, 74, to purchase various towing companies without the city. The transac-

tions were done through shell companies that Steininger allegedly formed—and without the required notice to the Department of Consumer Affairs. Vance said this constituted a violation of the “10 percent

rule,” which requires new towing company owners to hold towing licenses for a year before being eligible to participate in the city’s towing response program. Among the fraudulently acquired companies was Southside Collision and Towing based in Queens Village and operated by David Conti, 44, of Franklin Square, NY. Another auto body shop under Steininger’s control was Authorized Auto Body in Long Island City. Many of the newly acquired companies didn’t have the required facilities or employees to operate. In order to fool inspectors, prosecutors said, Steininger employed Queens’ Daunte Huff to develop ways to ensure that each company passed required inspections. Prosecutors said that the ringleaders also instructed their tow truck drivers to disregard the rotational response programs in place and start chasing accidents. They would monitor police radio reports of accidents and rush to respond to them before the officers, and any other competitors, arrived on scene. Moreover, authorities said, Steininger employed three Queens brothers—Angelo Mazzio, 53, Michael Mazzio, 49 and Salvatore Mazzio, 40—to bid for and control permits for towing operations along

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multiple highway segments in the city. They also allegedly subcontracted collision work that Steininger and other ring participants controlled in exchange for a quarterly $20,000 fee, along with a percentage of resulting insurance claims. Two other ring participants—George Coppolino, 53, of Queens, and Carl Fava, 58, of Forked River, NJ—oversaw the agreement between Steininger and the Mazzio brothers, prosecutors noted. To further solidify their stranglehold on towing operations, law enforcement sources said, in 2017, Steininger enlisted his sister—Karen Steininger, 39, of Queens, who operates Bronx-based Tow-arrific—to submit “competing” bids to the NYPD’s contract for towing operations along major arterial highways. Four auto body managers employed by Daniel Steininger—including Queens’ Edwin Roig, 59, and Maurece Wimberly, 45—also

allegedly bilked hundreds of thousands of dollars from auto insurance companies by inflating claims for repairs made to damaged vehicles. In some instances, prosecutors said, they charged insurance companies for parts that didn’t need to be replaced, or repairs that were never made. The indictment was the result of a lengthy investigation conducted by the Manhattan DA’s office along with the city’s Department of Investigation, the NYPD Criminal Enterprise Investigations Section, the NYC Sheriff’s Office, the state Department of Taxation and Finance and National Insurance Crime Bureau. Steininger faces charges that include enterprise corruption, money laundering, criminal tax fraud, scheme to defraud, conspiracy, offering a false instrument for filing and contract or agreement for monopoly. The others indicted face similar, various charges. We thank QNS for reprint permission.

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Former Auto Body Tech, Shop Manager to Retire as Voc-Tech School Principal, MA by Gayla Cawley, The Daily Item

Robert Buontempo, the principal of Lynn Vocational Technical Institute, is retiring after 31 years with the school. Buontempo, 57, has been the school’s principal since March 2015. His retirement will be effective July 1. He’s been at Lynn Tech since 1987. When he started at the school, he was an auto body instructor, teaching kids in the auto body shop and the related classroom. He said he taught the students auto theory. Buontempo became a cluster department head in 2005, making him responsible for multiple technical areas. In 2010, he was appointed vice principal before being bumped to principal five years later. “It’s been a very rewarding career here for me,” Buontempo said. “The kids have always been wonderful.” Buontempo said he plans to travel with his wife, Dotty, and he’s expecting his first grandchild in May. Time goes by so quickly, he

said, and it’s time for a change of pace. Also weighing into his decision, he said, was his long daily commute from New Hampshire. Before starting his career at Lynn Tech, Buontempo said he worked in the industry. He managed Classic

Lynn Vocational Technical Institute Principal Robert Buontempo Jr. speaks with senior Carlos Lopez as he works in the machine shop. Credit: Spenser R. Hasak

Auto Body on Bennett Street for two years and before that, worked as an auto body technician in other places. Buontempo is a graduate of Northeast Regional Vocational School. He said he loved the whole vocational experience and thought it would be fun to teach at a similar school. He was hired by Lynn Tech’s former principal, Al Malagrifa, in

APRIL 2018 AUTOBODY NEWS / autobodynews.com

1987. Buontempo initially wanted to run his own business, so he went to North Shore Community College and transferred to Bentley University, where he got his bachelor’s degree. He got his master’s degree from Cambridge College in school administration. “I’ve always just loved connecting with the students and I’ve loved cars all my life,” Buontempo said. “I still do. That was always very rewarding to me—to teach something that you love yourself. To share that knowledge has always been a wonderful experience for me.” Buontempo said it’s been rewarding to see where he can affect change in the school’s technical programs to keep them evolving for the community and for the kids. Superintendent Dr. Catherine C. Latham said Buontempo has been a wonderful leader for Lynn Tech, which has seen a lot of upgrades under his leadership. “He was a wonderful principal,” Latham said. “He’s a graduate of vo-

cational (school) himself and then went on to college, and has worked at Tech for so long. I hate to see him go. He did a great job. I’ll miss him greatly.” Latham said Buontempo has worked to bring in a new information technology (IT) program and has done the legwork getting a new heating, ventilation and air conditioning (HVAC) program started. She said he has also worked to improve the school’s precision machining program. Buontempo said the school recently received a $395,685 capital skills grant for the HVAC program, which has yet to start at the school. The funds will be used to purchase new equipment and has to be spent or earmarked for spending by June 30. He said the planning for that program started in September 2015. He said the IT and networking program just opened in September with capital skills money from the state, which was split between IT and the machine shop. The school received the $333,293 capital skills

grant last year—about half, or $166,050 went to the IT program and $167,243 went to the advanced manufacturing portion. In addition, Buontempo said the school has received a $75,000 grant to create a medical assisting laboratory. He said the school has a health tech program and the curriculum has been expanded to medical assistance training to students, including EKG and phlebotomy, which is aimed at giving kids more of an opportunity to learn and options after graduation. “Graduating high school without a skill and without further education (means) you’re not going to go as far as you can,” Buontempo said. “Lynn Tech has options. Kids can come out of here and go into a great career in trade or they can go into school… A college education is good, but it doesn’t work for everyone and you need options.” Latham said the search for the school’s next principal is underway. The job has been posted, which will be out for 30 days, and then the interview process will begin. We thank The Daily Item for reprint permission.

WTCC Announces SkillsUSA Regional Winners in Williamson, NY

Johnathan Jones, of Wayne, placed third in the tech drafting comStudents from Wayne Technical and petition. Career Center in Williamson, NY, reCameron Chardeen, of Lyons, cently participated in the SkillsUSA took third place in the small engine service basic contest. VanHoover took a written knowledge test assessing the collision repair areas identified in the National Automotive Technicians Education Foundation Collision Repair/Refinishing program standards and ASE official study guide. The competition included a series of work stations to assess skills in metal Wayne Technical and Career Center students compete in the SkillsUSA Regional Competition at Alfred State College. straightening, welding, Pictured from left: Simon VanHoover, of Williamson; plastic repair, structural Johnathan Jones, of Wayne; Cameron Chardeen, of analysis and cost estimaLyons; Arthur Ingram, of Newark. tion. Ingram took a written Regional Competition at Alfred State knowledge test assessing general College. knowledge of basic animal care skills. Simon VanHoover, of William- He demonstrated his knowledge of anson, won first place in the auto body imal breeds, body language and health helper contest. care skills. Arthur Ingram, of Newark, won Jones took a written knowledge second place in the animal careers cat- test assessing technical drafting genegory. eral knowledge. The contest assessed by Staff, Wayne Post & Messenger Post Media

his ability to create 3-D models and extract properly scaled 2-D view from those models for placement and annotation on standard inch or metric-sized drawing sheets. Chardeen’s competition included parts and tool identification, engine tear down and reassembly, measuring with the caliper, reassemble and torque all parts using the service manual, specification lookup in a manual and two-cycle service. This year’s New York State SkillsUSA Leadership and Skills championships will be held on April 25–27 at the NYS Fairgrounds in Syracuse.

We thank Wayne Post & Messenger Post Media for reprint permission.

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Ex-Whitman, MA, Cop Charged With Auto Insurance Fraud by Cody Shepard, The Enterprise

Joy Zaccardi and her fiancé had found the perfect deal—affordable car insurance for a new vehicle. The deal from her insurance agent, Whitman, MA’s Glenn Paul Pearson, almost seemed too good to be true to the 26-year-old Weymouth woman, especially when the quote from CHC Insurance came in a couple thousand dollars lower than the others. On Feb. 26, a full month after purchasing the insurance premium, she found out why. It turned out she wasn’t actually insured. “The policy was for $1,800 and we made a one-time payment of $936. He just pocketed that,” Zaccardi told The Enterprise. “To the Registry of Motor Vehicles, it shows insured and active. But the insurance company said we have no policy, nothing.” Pearson, who was set to report to federal prison on March 1 after he was sentenced last November to 48 months for tax embezzlement, sold her a nonexistent policy, she said. His insurance license was stripped by the state on Jan. 22 and he was ordered to cease all business operations. But, on the verge of going to prison, he is accused of still conducting his business to this day, including selling Zaccardi a policy on Jan. 25 that he wasn’t legally allowed to offer. Pearson, 62, who pleaded guilty last May, was given a two-month reprieve from starting his sentence so he could train someone to take over his insurance business. But he is now being accused of insurance fraud by at least three people—two Brockton residents and the Weymouth woman—and could be facing new criminal charges, according to police. Zaccardi called her insurance company, Safety Insurance, on Feb. 26 after reading a weekend story in The Enterprise about a Brockton woman who accused Pearson of fraud. That woman contacted Brockton police to report she had paid $210 each month to CHC Insurance for auto insurance, but learned she hadn’t been insured for months when she was in a crash in early February. 10

When Zaccardi called her company, they told her she didn’t have a policy, despite receiving a premium

At the time of his sentence, insurance company’s office went unanswered, but the phone line was Pearson lost his tax business license, but hadn’t yet lost his insurance busiactive. Last May, Pearson ness. CHC Insurance was previously pleaded guilty to preparing false income tax returns for located in downtown Whitman, but clients of his tax-prepara- closed after it was raided by federal tion business, obstructing authorities in the summer of 2015. It tax laws and misappropriat- then moved to 930 Crescent St., in ing funds from the accounts Brockton, a small office building of disabled veterans while a near the Whitman town line. The Division of Insurance’s rulfiduciary for the U.S. DeCHC Insurance Agency at 930 Crescent St. in Brockton, partment of Veterans Af- ing in January to revoke Pearson’s MA, on Tuesday, Feb. 27. Dave DeMelia/The Enterprise insurance license states he “failed to fairs. from Pearson on Jan. 25. That was In addition to the four-year report his indictment or convictions three days after the state ruled that he prison sentence, he was ordered by to the Division, putting Massachuwas to immediately “dispose of any U.S. District Judge Patti B. Saris to setts consumers at risk.” and all interests in Massachusetts as pay restitution to the VA in the Zaccardi said she is one of those proprietor, partner, stockholder, offi- amount of $252,992, restitution to consumers. After initially learning cer or employee of any licensed in- the IRS in the amount of $826,865 she wasn’t insured, she was afraid surance producer.” and serve three years of supervised she and her fiancé would have to “He’s gotten this reprieve to release. turn their vehicle back in to the legally continue his business to train Pearson, a former Whitman po- dealer because the quote for a new someone,” she said. “He’s not train- lice sergeant of a dozen years who premium was much higher than ing anyone to take over his business. was fired in 2001 for misconduct, CHC. He offered to personally rewrite the embezzled more than $250,000 in “This could have changed our policy on Monday.” VA-issued benefit money from the lives,” she said. Weymouth police Capt. Richard accounts of eight disabled veterans We thank The Enterprise for Fuller said the incident report wasn’t from 2007 to 2012. reprint permission. complete as of Feb. 27, but “we do anticipate filing charges.” Brockton police officer Thomas Robinson recently applied for a criminal complaint on a charge of fraud by an insurance agent or broker. Pearson Lifting Capacity 7700 LBS will be summoned to Brockton DisLifting Heights up to 64” trict Court for a clerk magistrate’s hearing. Height Adjustable Anchoring But more charges could be comAvailable Pulling: 6 or 10 Ton Traction Arms ing for Pearson. We Offer a Range of Floor Mounted or Fully Gabriel Depina also claimed Recessed Benches and Lifts he was deceived by Pearson. Since last September, the 24year-old Brockton man had been OFFERS THE WIDEST CHOICE paying $280 each month to CHC InOF LIFTS AND BENCHES surance for auto insurance. He recently called Safety Insurance and learned he had no policy---leading him to take his car off the road until he resolves the situation. “He’s always told me I should pay in cash, that debit cards always have problems,” Depina said. “When I started asking for receipts, he was giving me excuses---the fax machine wasn’t working or the printer was out of ink. I thought I could trust him.” www.collisionequipment.net Pearson didn’t return a call left Authorized Ted Dinnella 516-361-9220 on his personal cell phone by The Dealer Enterprise on Feb. 27. A call to his

APRIL 2018 AUTOBODY NEWS / autobodynews.com

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Nor’easter Leaves East Coast Auto Glass Shops Without Power by Katherine Coig, glassBYTEs.com

The powerful nor’easter that raked the East Coast the weekend of March 3–4 killed eight people and left 2 million without power across 17 states and the District of Columbia. As a result, many auto glass repair and replacement companies were left unable to access their phone lines. “The storm hit everyone as a surprise with timing and intensity, and caught a lot of people on the road in poor conditions and high winds,” said Ben Weaver, general manager of Alderfer Glass Co. in Telford, PA. “We were forced to close the afternoon of March 2, as we lost complete power and thus, computers at our main Telford headquarter location. We did re-open for a few hours without power on Saturday morning March 3, but were without power much of the weekend. As our phone systems and computers were down, our only contact with customers was via our cloud-based e-mail and social media. We have been very busy today and would expect to stay busy in the coming week with AGR business, as we will have some backlog to work through.” The company took to social media outlets to inform customers of the outage. Weaver said he expected busi-

ness to return to normal by the week of March 12, but he also anticipated a surge in business in the weeks that follow given the amount of damage the storm caused. Winds gusted as high as 93 miles per hour at the peak of the storm, which spread destruction from Virginia to Maine. Those strong winds also knocked over thousands of trees, many of which destroyed cars and homes.

PGW Auto Glass in Westwood, MA, was without power until almost 11 a.m. March 5. Ray Littlefield, lead warehouse manager, said the company was able to get their computer back up and running, but before then, it was complete chaos trying to control customer shipment orders. “All the runs that were scheduled to run last night were a couple hours late,” Littlefield said. “It’s been chaos and mayhem because customers are waiting for windshields that haven’t been picked up yet. But we’re back on track for the overnight deliveries, and we hope to be business as usual from here on

ASA-CT Appoints New Association Leaders

by Chasidy Rae Sisk

During its February meeting, the Automotive Service Association of Connecticut (ASA-CT) appointed new leaders for its 2018–2019 Executive Board, representing equal parts of both the mechanical and collision industries. ASA-CT Executive Director Lisa Siembab stated, “ASA-CT’s primary objectives for the next two years will be member growth and retention, reinstatement of safety inspection laws for the state, shop ratings, training and education, and business management for shop owners.” Tom Vicino of Superior Auto was elected Chairman, while Neil Bilodeau from SAF-T Auto Centers was chosen as Vice-Chairman. MaryAnn Croce of Croce’s Transmission Specialists will serve as 12

Treasurer, with Breezy Point Autobody’s Thomas Therriault filling the role of Secretary. The Co-Directors of the Mechanical Committee will be Don Cusson, Cusson Automotive, and Ron King, DATTCO. Bruce Bisson of Stevens Collision Center will work with Jeff O’Hara from Storm Autobody as the CoDirectors of the Collision Committee. Wendell Soucy from Porter Chester Institute will provide assistance as the Educational Director. “I am so excited to introduce our new board members to our membership. The board members collectively represent over 300 years in the automotive industry,” Siembab said. “I look forward to working with them on behalf of our member shops.” For more information on ASA-CT, visit www.asashopct.org.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

out.” The warehouse even had help fly in from the company’s Ohio location to help get the facility back on track. “It takes great teamwork to do this,” Littlefield added. “We’ve got nine or 10 guys, and we’re working together as a team to pull this off.” Peter Brown, owner of Tiny & Sons Auto Glass in Pembroke, MA, said his company also lost power. Plymouth County, home to Pembroke, (at the time had) more than 20,000 customers without power. Tiny and Sons, however, got its power back the morning of March 5. “We lost power at about 5 on [March 2], and I’ve never seen so much damage—not since the blizzard of ’78,” Brown said. “A lot of cars got damaged—a lot of fallen trees and street closures.” Brown, who is very active in his community, also used his company’s Facebook page to help customers by updating it with the latest storm news

and power outages. “I’ll tell you, it’s amazing,” he said. “We had five or six communities that had no power. A lot of us had generators or were charging our phones in our cars. Through social media, the community came together to make sure everyone was okay.” Brown said his suppliers were all back online by 11 a.m. March 5, and that any car that could be driven to his shop that day would be able to be serviced. “There [are] a lot of totaled vehicles,” he explained. “So much damage that a lot of cars have to go to body shops to get them repaired.” According to NBC News, 224,000 homes and businesses were without power in Connecticut, Delaware, Maine, Massachusetts, New Jersey, New York, Pennsylvania and Virginia. Many calls to auto glass repair shops in those areas were left unanswered.

We thank glassBYTEs.com for reprint permission.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

The Collision Centers Repairs Donated Vehicle for Long Island, NY, Mother

A local Patchogue, NY, woman was gifted a vehicle at the Village of Patchogue Fire Department. Nilza Rodriguez was introduced to NABC’s Recycled Rides program, hosted by The Collision Centers, by the Economic Opportunity Council of Suffolk County. Rodriguez is a single mother of three and has been working with EOC to help ease the burden of being a single-income family. According to Anna Maddux of EOC, “Nilza is a bright and articulate woman… a car would be one less thing to worry about as she manages to pay bills and feed her children.” Facing one battle and challenge after another, Rodriguez has been able to conquer many hardships and continue her goal to better her situation. Previously, Rodriguez walked to and from work, as well as walked to pick up her children each day. Now, after receiving her 2013 Dodge Dart, she can complete her day-to-day tasks much more easily. Many members of the community attended the event on March 6 to support the recipient. Village of Patchogue’s Mayor Paul Pontieri,

Brookhaven Town Supervisor Edward Romaine and Councilman Neil Foley were kind enough to

The Recycled Rides ceremony took place on Friday, March 6 at 2:30 p.m. at the Village of Patchogue Fire House. The vehicle was donated by Allstate Insurance and repaired by The Collision Centers through the National Auto Body Council’s Recycle Rides program. The program ensures deNABC Recycled Rides recipient Nilza Rodriguez. Credit: serving citizens without Jessica Dempsey safe and operational vespeak to Rodriguez, as well as the hicles have cars or vans that meet individuals involved in the program. their needs and the needs of their The Recycled Rides program itself families. Greater Patchogue Foundawas honored for all of its amazing tion & Village of Patchogue Fire work nationwide, as well as in Suf- House provided support and a venue folk County, by the Town of for the ceremony. Brookhaven proclaiming March 6 as The charity Driving 4 Change “Recycled Rides Day.” Foundation had provided the titles “Today’s event is about the re- and registration of the vehicles so cipient,” said Joe Amodei, owner of that Rodriguez could drive away that The Collision Centers and Co-Chair day. Being without a vehicle is very of the Recycled Rides program. “We difficult and makes even the smallest are so happy for her. This is about of tasks seem challenging. For the giving back and giving a helping recipient, Recycled Rides plays an hand to somebody in need. With this important role in getting people back proclamation from the Town of on the road, but—more importantl— Brookhaven, we can now encourage it helps open doors to better oppormore organizations to get involved tunities, to an enriched quality of life with the Recycled Rides Program.” and to increased self-esteem.

ASA-MARI Learns About Hybrid, Electric Vehicles

of electric and hybrid customers, they are fully aware that the market On Wednesday, Feb. 28, the Auto- is heading in that direction. Our goal motive Service Association of Mas- was to bring information on a topic sachusetts and Rhode Island that will have increased relevance in (ASA-MARI) held a seminar in the future of the repair industry. On Holyoke, MA, on hybrid and elec- that score, we clearly exceeded expectations.” tric vehicle technology. Due to the success of the meeting, Van Batenburg has agreed to teach an additional three meetings in the Worcester, Boston and Providence areas for ASA-MARI members. Association-sponsored events are an important way for industry Craig Van Batenburg taught ASA-MARI members about hybrid and electric vehicles professionals to get a chance to (left, pictured with Stephen Regan, ASA-MA spend time with peers. /RI Executive Director) “In addition to the information Attracting association mem- repairers learn from the presenter, bers and prospective members, the association meetings offer our seminar was taught by Craig Van members an opportunity to network Batenburg of the Auto Career De- and create relationships with other velopment Center (AC/DC), who repairers that can be beneficial provided an advanced overview on down the road. These events also these topics. According to ASA- provide a forum for industry venMARI Executive Director Stephen dors to show their products to poRegan, the seminar was scheduled tential customers,” Regan said. For more information about “to provide our members with information that they will need to be pre- ASA-MARI, visit asamari.com. For more information about pared and successful in the future. While many repairers stated that Auto Career Development Center they do not yet have a large volume (AC/DC), visit fixhybrid.com. by Chasidy Rae Sisk

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Fire Breaks Out at D & D Auto Body in Utica, NY

by Staff, WKTV NewsChannel 2

Utica, NY, fire crews worked overnight and into the morning hours fighting a fire at D & D Auto Body. The initial call came in just after 12:30 a.m. on March 6. When firefighters arrived at the 764 Rutger St. shop, they found heavy smoke coming from all sides of the building. Extra fire crews were brought in to assist. It took fire crews two hours to have the fire under control. Utica Fire Deputy Chief Scott Ingersoll said the body shop suffered smoke and fire damage throughout the building. No injuries were reported in the fire. Authorities say the body shop is still salvageable. The cause of the fire is still under investigation. We thank WKTV NewsChannel 2 for reprint permission.

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Long Island, NY Shop Acquired by MSO

The Collision Centers of New York announced it has acquired Silver Star Collision in Port Jefferson, NY. The new repair center is located at 14 Industrial Rd. in Port Jefferson, New York. The acquisition will account for The Collision Centers’ sixth location in Suffolk County, which strengthens TCC’s presence on Long Island. Operations will be transitioned to The Collision Centers effective immediately. “We are very proud of what we have accomplished since the opening of our first location. By adding another location like Port Jefferson, we can be of service to more customers and be a repair facility of choice,” said Joe Amodei, Owner and President of The Collision Centers. “It is our vision to grow the company and we will continue to do that so long as we give the best service and repairs to our customers. We look forward to growing and serving our Long Island community.” The Collision Centers has been a family-owned-and-operated company since 1989.

Potholes Pop up Amid Recent Weather Changes in PA

by Melissa Steininger, WTAJ/wearecentralpa.com

While many people have been loving the recent spring-like temperatures in Clearfield County, PA, the rain on March 1 may eventually turn into snow.

The constant freezing and thawing have been creating the perfect conditions for potholes. “If I’d been going any faster, it probably would have ripped the whole tire off,” said Francis Rosana of Treasure Lake as he sat and waited for his car at Cataldo’s Collision in DuBois. He said it’s not the way he wanted to spend his Thursday, but he had driven over a pothole in Treasure Lake. When he hit it, he said it sounded like it would be an expensive fix.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

“It’s a new one from this season. Unfortunately, they’re all over,” he said. Rosana’s damage ended up being a bent wheel. The owner of the collision shop, Carney Cataldo, said the same problems always pop up this time of year. “A lot of potholes, tire wheels alignments,” said Cataldo. All those problems could get pricey, said Cataldo. “Wheels on some of the sportier cars are upwards of $1,000,” he said. At Penn DOT in Clearfield, they’re trying to keep up with all the potholes forming from the changing temperatures. Tim Tekely, the Clearfield County Maintenance Manager at Penn DOT, said, “The freeze-thaw is really bad for the roads because that’s what creates the potholes.” They said they’re patching as many as they can, but Tekely said it’s only a temporary fix. “If we get another freeze-thaw cycle, the pothole you just replaced

has the tendency to pop again,” Tekely said. Penn DOT said that once asphalt plants open in the spring, they’ll focus on permanent repairs. Until then, Cataldo has a tip for keeping your car safe. “We don’t recommend swerving, or you’ll be here for body repair. Just keep an eye out and watch for them,” Cataldo said.

Penn DOT is asking drivers to report any potholes to their 24-hour hotline at 1-800 -FIX-ROADS (1-800-3497623). We thank WTAJ/wearecentralpa.com for reprint permission.

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CCPS Tech Center in MD to Allow PA Students to Fill Open Seats

by Emily Chappell, Carroll County Times

On any given school day, the Carroll County Career and Technology Center in Westminster, MD, is abuzz with students working on anything from cars to cosmetics to building brick structures. Thanks to a memorandum of understanding (MOU), students from Pennsylvania will soon have the opportunity to take part in the Tech Center’s numerous offerings. Carroll County Public Schools, located in Maryland, has entered into an agreement with the Littlestown Area School District, located in Pennsylvania, that will allow some students from the Pennsylvania school district to attend the Tech Center in programs that have open seats. The MOU was discussed at the Feb. 14 school board meeting. Littlestown, which has a similar agreement in place with Gettysburg Area High School in Pennsylvania, approached CCPS with the question of whether they could also work something out with Carroll, Tech Center Principal Bill Eckles said, adding that “Littlestown offers very little in that vein.” Eckles said when he was ap-

proached by Central Office after they discussed the idea with Littlestown, he supported the concept.

Manchester Valley junior Trevor Simpkins inspects a brake caliper during an auto service technology class at the Carroll County Career and Technology Center in Westminster, MD Photo Credit Dylan Slagle

“It’s important that we make sure that we’re not taking spaces away from Carroll County students, but often, we have programs that have seats available that go unused,” he said. Eckles said it’s somewhat complicated, because the school itself is “fuller than we’ve ever been” with 832 students in a building built for 350 students. The large amount of students is not equally distributed, Eckles said, and some of the programs have “fairly substantial waiting lists.” CCPS is still moving forward with looking at a Tech Center renovation and expansion, he added, and

said the Education Speculations Committee is set to present its findings to the school board in the coming months. But while CCPS is struggling to fit students in programs that have waiting lists—like C.I.S.C.O. Networking Academy, engineering and Academy of Health—there are a handful of programs with open seats, and those courses would be available to the Littlestown students, Eckles said. “A student who would like to be in the Academy of Health professions is not usually interested in masonry as a second choice,” he said. “We’re looking at five or six programs here that have had, historically, some open seats.” For next year, those programs include Geographical Information Systems Technologies and Teacher Academy of Maryland, which are housed in Westminster High School; Auto Service Technology; Carpentry; Collision Repair Technology; Manufacturing and Machine Technologies; and Masonry and Construction Technology. There are currently 27 open seats, Eckles said, for next year’s en-

rollment. Some will fill up with CCPS kids before the start of the next school year, and there could be 12 to 15 students who come in from Littlestown, he said. Eckles said Littlestown will pay tuition for students who come from Pennsylvania, and will be in charge of transporting them. “This is the first time the CCPS Tech Center has done something like this,” he said. “It’s a good thing for us in that it just shows that even outside of Carroll County, people see our Tech Center as a premier program and place that they would like their students to be,” Eckles said. “In my mind, there is a skills gap out in the community, and we get a lot of workers in Carroll County in the manufacturing plants and different places that live in Littlestown, and so for our region, I think it helps us with workforce development. I think it helps the local economy, and certainly I think our programs are top-of-the pile, so to have as many kids as possible to take advantage of them, I think is good for us in general.” We thank Carroll County Times for reprint permission.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

ABS Auto Glass Advises Drivers to Be Aware on Road This Spring

ABS Auto Glass advises that drivers be aware of their surroundings this spring. Though the black ice of the winter season is finally starting to melt away as the spring arrives, drivers must be aware of the arrival of motorcyclists to the road. According to data from the National Safety Council, accidents involving motorcyclists spike at the turn of the spring season. A massive 73 percent of motorcycle accidents occur between the calendar months of April and September, meaning that automobile drivers need to remain particularly aware during the spring. Though motorcycles are smaller than automobiles, they can cause just as much damage to vehicles thanks to their speed and ten-

dency to be unseen on the road. A collision with a motorcycle can leave drivers in need of body repair and mobile glass replacement in Bucks County, PA, and can even leave the driver or cyclist in need of immediate medical attention. Experts estimate that the increase of motorcycle-involved accidents in the spring is a consequence of a larger number of bikes on the road. When the weather is nicer, more motorcyclists head onto the road, increasing the probability that drivers will run into a motorcyclist who is riding recklessly. However, it's important to know that motorcyclists are not always at-fault for accidents. It is the responsibility of automobile drivers to operate their vehicles defensively to avoid a collision this spring.

Saugerties, NY, Auto Body Repairman Charged With Fraud, Larceny for Uncompleted Jobs

by Staff, MidHudsonNews.com

A Saugerties, NY, man has been charged with scheme to defraud, grand larceny and petit larceny following two auto body repair jobs he agreed to complete, but never did. Saugerties police said between May 16 and July 21, 2017, Charles Winters V, 35, agreed with two people to complete auto body work and took partial payments to

complete the repairs. Winters then requested more money on several occasions to pay for parts, but it is alleged he never did any repairs. He turned himself in on Feb. 24 to Woodstock Police for an active arrest warrant and was sent to the Ulster County Jail in lieu of $1,000 cash bail or $2,000 bond.

AASP/NJ Welcomes Two New Board Members

At its February Board meeting, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) welcomed two new Board members. Following the untimely passing of late Board members Anthony Sauta and Billy Aiello, the association added Dave Gruskos (Reliable Automotive Equipment) and John Craggan of Ultimate Collision Repair, Inc. to the Board of Directors. Gruskos has been an active industry participant for decades, and in joining the AASP/NJ Board, he plans to continue sharing his invaluable experience with fellow industry members. “I’ve been in the collision industry in New Jersey for 40 years now,” Gruskos noted. “There are certain quality pieces of expertise I’ve learned during that journey, and I’d like to share what little knowledge and wisdom I have with this industry while I still can.” Craggan expressed similar feelings, as he is looking to further his involvement in the collision repair industry while also helping address—and potentially improve— popular industry-wide concerns. “I have always been interested

in becoming more active in the industry, especially here in New Jersey,” Craggan offered. “I feel responsible to do my part and get out there and try to get the word out, and I feel the best way to start is to get involved. “I have a lot of knowledge to share, and it all starts with educating the consumers, the technicians and the insurance companies on how today’s vehicles need to be repaired. I’m passionate about this industry, and now I’m here at your disposal.” “It’s unfortunate that circumstances necessitated these actions,” said AASP/NJ President Jerry McNee. “However, we are very happy to have two men as experienced as Dave and John on our Board. I’m confident they will contribute greatly.” For more information on AASP /NJ, visit aaspnj.org. The NORTHEAST® Automotive Services Show will be held from March 16–18, 2018 at the Meadowlands Exposition Center in Secaucus, NJ. For more information on NORTHEAST Automotive Services, visit aaspnjnortheast.com.

We thank MidHudsonNews.com for reprint permission.

Carubba Collision Donates Total of $20,000 to Western NY Charities

Carubba Collision Corp. President Joe Carubba recently donated a total of $20,000 to a pair of local charities in Western New York. A check for $10,000 was presented to the SPCA Serving Erie County for its new SPCA animal shelter located in West Seneca, NY, and another $10,000 check was given to the Food Bank of Western New York. The monies are from part of the proceeds of the 5th Annual Carubba Collision Golf Classic Tournament, which was held this past August at Diamond Hawk Golf Course in Cheektowaga. “Thanks to the tremendous support we received from our sponsors and participants of our golf tournament last year, we are thrilled to present these checks, 18

which will help support the construction of the new SPCA animal shelter project in West Seneca and continue to help feed our less fortunate fellow citizens in our area through the Food Bank of Western New York,” Carubba stated. Carubba Collision is the largest regional MSO in New York State with 20 stores that share the Carubba Collision brand. Carubba has been adding stores in New York for the past several years and plans are to continue an aggressive growth strategy. Recognized throughout New York State, Carubba Collision is focused on the customer experience and consistently delivers top CSI scores as well as award-winning sustained excellence in quality speed and cost to its customers.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

Progressive Lawsuit

essary costs to return the covered vehicles to their pre-loss condition. But rather than agree to reimburse Professionals for the cost of making reasonable and necessary repairs, Progressive directed Professionals to ‘utilize inferior parts and/or to perform inferior service.’” When Autobody News asked Perretta if Professionals was asked to use inferior parts, the body shop owner replied, “Yes, as they always do… as they do all shops. We refuse to use inferior parts. The years of tracking the return of those parts have led us to not use them anymore.” Perretta said he has also found that these parts are not crash-tested or safe. Therefore, when working on customers’ cars, Professionals “perform[ed] all reasonable and necessary repairs to place the vehicles in their pre-loss condition[s],” according to court documents. When the body shop asked to be reimbursed from Progressive, Perretta said the

insurance company paid a fraction of the cost of the repairs. The $712,972.90 Professionals is seeking in damages represents “unpaid balances, ‘delay time costs,’ and administrative costs.” Insureds and third-party claimants signed what is called an “Assignment of Proceeds” that authorized the body

gressive under the insurance company’s contractual obligations to the insureds and third-party claimants. “Progressive had a duty to compensate the consumer for a reasonable repair,” he added. The case was originally filed on August 23, 2017 in the Court of Common Pleas of Blair County, PA.

shop “…to recover any unpaid balances for Professionals’ services and repairs,” court documents stated. “The body shop has a contract with the consumer and the consumer has a contract with the insurance company,” explained Perretta. “The Assignment of Proceeds allows the body shop to ‘step into the consumers’ shoes to secure a fair and reasonable reimbursement.” As a result, Professionals is allowed to seek damages from Pro-

Twenty-five insurance companies were named as defendants. A month later, the Court of Common Pleas removed Progressive from the larger case and the insurance company moved the case to the United States District Court for the Western District of PA. On December 4, 2017, the body shop filed an amended complaint and brought four counts against Progressive: breach of contract; bad faith; intentional interference with business

“This all really just comes down to one thing—the insurance company has a contract with their customer to bring their vehicle back to its pre-loss condition and they are breaching that contract.” — Ron Perretta

APRIL 2018 AUTOBODY NEWS / autobodynews.com

relations; and quantum meruit. Progressive attempted to dismiss the amended complaint. According to court documents in February 2018, the court denied Progressive’s motion to dismiss Professionals’ claims of breach of contract, bad faith and unjust enrichment claims. However, the court granted the insurance company’s motion to dismiss the bad faith claim in regard to third-party claimants and the causes of action that accrued before August 23, 2015 due to the statute of limitations. The court also granted Progressive’s motion to dismiss Professionals’ tortious interference with business relations claim. “This all really just comes down to one thing—the insurance company has a contract with their customer to bring their vehicle back to its pre-loss condition and they are breaching that contract,” said Perretta. “Because of that, that’s where this judge [Judge Kim R. Gibson] looked at this and said ‘Yes, these counts are true. They are accurate.’ We’ve proven that.” He said the other pertinent issue is that insurers want to pay one rate See Progressive Lawsuit, Page 61

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OE Shop Certification with Gary Ledoux

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

OE Shop Certification Programs: Assured Performance Network This month, we’re looking at the Assured Performance Certification Network, representing Ford, Nissan, FCA, Infiniti, Hyundai and Kia (Ford was handled in a previous profile.) For this interview we caught up with Scott Biggs, industry icon and CEO of Assured Performance.

Does your program have a specific name? When was it started?

The Assured Performance Certification Network was formed starting in 2003, and has since grown to include joint-effort collaboration with several OEMs. Now, Assured Performance Certified Repair Providers have the option of multiple OEM Certifications and Recognitions through one centralized and managed

program, saving redundancy and extraneous costs. The joint effort program includes the following OEMs:

1. “FCA Certification Collision Care” Program launched in 2012. 2. “Ford National Body Shop Network” Program launched in 2014.

3. “Nissan-Recognized Collision Care” Program launched 2012. In 2014, Assured Performance took over administration of the program.

4. “Infiniti-Recognized Collision Care” Program launched in 2012. In 2014, Assured Performance took over administration of the program.

5. “GT-R Certified Collision Repair Network” Program. Assured Performance took over administration of the program in 2017.

6. “Hyundai-Recognized Collision Care” Program launched in 2015

7. “Kia-Recognized Collision Care” 22

Program (most recent partnership) launched in October 2017.

Q: A:

What is the main purpose of the program?

To identify and officially certify and/or officially recognize collision repair providers that possess the proper tools, equipment, training and facilities required to properly repair automobiles to manufacturers’ specifications—ensuring the fit, finish, durability, value and safety of the vehicle and to assist consumers and insurers with locating and connecting with those Certified Repair Providers.

What are the program requirements?

There are 36 major requirements that shops must meet, and an additional eight if they wish to be aluminum-certified for the Ford program. Edited for brevity, here are some of the main requirements:

General Business Requirements: • Be in business for at least five years • Provide proof of Garage Keepers liability insurance • Provide a limited lifetime warranty on all work performed Customer Service Requirements: • Measure customer satisfaction through a third-party provider • Have a professional and wellmaintained customer reception, waiting and restroom area • Utilize a preferred rental car provider General Technical Repair Capability: • Meet I-CAR Gold Class or equivalent with proof of ongoing training • Subscribe to current OEM repair procedures and have the ability to provide documented proof of compliance • Utilize a frame rack or dedicated/universal fixture bench with ap-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

propriate vehicle anchoring and pulling capabilities • Utilize an electronic, three-dimensional vehicle measuring system Advanced Materials Repair Capabilities: • Must have a 220 volt, 3-phase Inverter STRW welder • Must have a 220 volt MIG/MAG welder • Must have a dent removal/pulling system for steel panels Aluminum requirements include but are not limited to: • Isolated aluminum work area • Tools designated for aluminum work only include all special tools, as specified by Ford Motor Company • 220 Pulse MIG welder specifically for use with aluminum • Utilize a special SPR rivet gun, as specified by Ford.

Q: A:

What are the program benefits?

The Assured Performance Network of dealer-owned and independent Certified Repair Providers benefits includes the following:

• Official certification and recognition by more than 63 percent of the OEMs under one program, including Ford, Nissan, Fiat, Dodge, Jeep, Chrysler, Lincoln, Infiniti, Hyundai, GT-R and Kia.

• Leverage the OEM brands: Use of the official OEM-certified signage, OEM logos and badges to promote and market the shop through use in marketing, advertising, social media, online and recruitment. • Listing on online shop locators and smart apps with appointment set-

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ting. Certified shops are listed on multiple online shop locators with the exclusive ability to set appointments directly with a certified shop. These sites include the following:

♦ Consumer-Facing Certified Shop Locator ♦ autobodylocator.com ♦ Insurer-Facing Advanced Repair Capable Certified Shop Locator ♦ advancedrepaircapable.com ♦ OEM Branded Certified Shop Locators ♦ nissancertifiedshop.com ♦ fcacertifiedshop.com ♦ fordcertifiedshop.com ♦ hyundairecognizedshop.com ♦ infiniticertifiedshop.com ♦ crashrepairinfo.com ♦ mopar.com/collision

• Marketing and collateral materials provided by all of the OEMs to promote their official status with the OEMs.

• Multi-media in-shop system (eLOBBY) for consumer awareness and shop promotion, including lobby area electronic signage and

full-length videos as well as revolving OEM messaging. • ShopOps operational process management system that includes a full library of processes, procedures, checklists and job descriptions, a turnkey HR management system, KPI reporting, business development and planning tools, data management and safeguarding, customer relations management, training management and tracking.

• Electronic Quality Assurance Program (OE-QC) that enables the shop to efficiently document using OEM repair procedures and the adherence to a quality control checklist electronically, including the use of smart devices at the technician level. • On-demand, data-driven marketing for various OEMs, based upon the shops own historical customer base.

• Collision Care Marketing Tools: Access to a suite of Collision Care marketing materials to differentiate Certified Collision Repair Businesses

APRIL 2018 AUTOBODY NEWS / autobodynews.com

from local competition; includes press releases, eLOBBY, eLISTINGS and On Demand Marketing.

• OE Owner Referrals: OEM Direct Consumer Marketing, as OEMs send millions of consumers direct emails and letters throughout the years to their vehicle owners promoting the Certified-Recognized Collision Repair Programs

Q: A:

What shops are eligible?

Any dealer-owned, independently owned body shop or MSO that meets the certification’s combined requirements as published. Some OEMs have additional requirements, e.g. Ford Certification requires additional aluminum-specific [requirements].

• Manufacturer Collision Consumer Education: consumer education marketing and multi-media videos and commercials that highlight the importance of using OEM parts and a FordCertified Collision Repair location.

Must an independent shop be sponsored by a dealer? If so, has that caused any problems?

• OEM Repair Procedures: Various OEMs subsidize the cost of the subscription to their OEM repair procedures for the Certified Collision Repair Centers.

Q: A:

• Business Improvement: Turnkey system to assess and chart improvements and performance throughout the business. The system is supported by independent consultants to assist as desired, optionally.

There are requirements to have a dealer sponsor the shop for some of the OEMs, but dealers are NOT limited to how many and which of their body shop customers they can sponsor, eliminating the opportunity for unethical practices in pay-to-play and extorting for access.

Which OEs do you represent?

Assured Performance is the partner and administrator for Nissan, FCA, Hyundai, Infiniti, Ford

and Kia.

What is the fee for the program? Does the program run on an annual basis?

$2,950 per year is the base certification fee for independent shops, plus various optional marketing and signage fees specifically for each OE certification-recognition the collision repairer elects to enroll in. All programs combined are approximately $6,300 annually total, but there is no cost for the ShopOps or Quality Assurance systems. This total cost represents less than 40 percent of the full overall costs of all of the programs. The shop’s annual fees are subsidized by the participating OEM by as much as 60 percent. Yes, the program runs on an annual basis.

tions?

Do you inspect every shop and if so, who does the inspec-

Yes, every collision repairer is inspected and audited onsite on an annual basis. The results are

documented, electronically published and posted online for additional internal auditors to review and approve. Assured Performance maintains a national network of onsite inspectors/ auditors that use smart apps with GPS location tracking to ensure integrity. Is there an optimum number of shops you want to have and if so, how close are you to reaching that number?

Yes, our overall objective is to maintain 100 percent demographic and geographic coverage of all urban, rural and suburban market areas and have adequate coverage to meet the repair needs for all units in operations for all of the brands represented. This requires approximately 3,000–3,600 certified repair providers across North America.

Q: A:

Have you had any shops drop out and if so, why?

So far, only about 2/3 of all of the shops that apply are able to eventually become certified and remain in the program. The annual

renewal rate is nearly 90 percent because most of the collision repairers have continued in the program, unless they sell out to a consolidator or go out of business.

What has been the biggest challenge in establishing the network?

Our initial challenge was getting the industry to understand its value and importance. However, once we established a national footprint of well over 1,000 shops, the momentum changed. Getting to 3,000 is now a matter of shops re-investing to improve their business. While approximately 10–15 percent of the industry is well on its way to becoming OEM- certified (3,500 to 5,000 shops), the rest remain fixed on the past. Many collision repairers claim they have a great reputation in their market and generate plenty of work without the cost of compliance and certification credentials. There are also many shops that elect to operate outside of the mainstream and don’t feel they’re part of the equation. A massive per-

centage of the market focuses on cosmetic repairs and/or low-cost, consumer-paid repairs and wrongly assume they don’t have to have the OEM-required tools, equipment and training to still be able to repair the next generation of vehicles.

Q: A:

What is you biggest challenge in maintaining the network?

The biggest challenge in maintaining the network is keeping all of the moving parts focused on the big picture and overall vision of a “proper and safe repair while consumers receive an exceptional treatment.” There are always people popping up with a new idea and metoo program that look shiny and exciting that can distract the market. With any program, there is always the challenge of keeping the shop engaged and using certification correctly to differentiate them and have them stand out from the non-certified shops in their market. We have continuously added more OEMs and more value to the program to ensure that the shops see and gain value. See Assured Performance, Page 68

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Welcoming the Next Generation of Collision Repair Job titles matter to millennials, but in a different way than typically understood. A lot has been made of Over my 30 years in the automotive the millennial tendency to change industry, I’ve seen a number of gen- jobs. Certainly, evidence indicates erations enter the workforce. Each millennials don’t see themselves as wave arrives with its own expecta- long-term in any role. Increasing an tions and work habits. Our industry employee’s ability to move —uptoday is the result of adaptation made ward or laterally—is reason to conwith each new generation. Sure, it’s sider introducing intermediate titles the responsibility of any newcomer to an operation, and backing them up to learn and support the longstanding with added responsibility. Keeping values of a new environment. But it’s employees feeling valued and enalso important to embrace the new gaged transcends generational differideas and fresh perspectives that ences. Studies have widely shown that milcome with new talent. With college debt at record levels lennials are constantly on the lookout for their next job. This and tuition growing higher should be motivation for each year, many young peoemployers to ensure they are ple are choosing to explore offering competitive pay, exblue-collar career options. perience and opportunity. As Blue-collar fields often pay any collision repair shop better and are less saturated owner knows, finding and than the roles typically marretaining employees who keted to high school stuMike Lanza perform with excellence, are dents. Compensation has grown as a reliable and trainable, and bring a concept over the years. No longer is high-level skill set is a difficult chalit just about pay—Compensation lenge. That’s why capitalizing on milstrategies today center on creatively lennials entering the workforce is developing talent and motivating in- such a strong opportunity for a shop dividuals for results. As employers, willing to make the right cultural adwe have a valuable advantage for justments. right-sizing our cultures for millennials: Thanks to numerous studies and Considering Compensation a large volume of research, we know Compensation has grown as a cona great deal about what millennials cept over the years. No longer is it want and expect out of the workplace. just about pay; it’s about creatively developing talent and motivating inHere are a few insights based on re- dividuals for results. To create and porting from Millennial Mindset: implement innovative and balanced benefit and compensation design— with an eye toward retaining talent Shop Culture Though flexible work schedules are and maximizing productivity—takes most important to millennials, most a carefully considered strategy. Ideindicate they prefer working in an of- ally, each element of the incentive fice environment, as opposed to from plan drives business goals of customer satisfaction, revenue and profhome. An overwhelming majority, 98 itability. percent, say a company’s vision and values are important to consider when For a compensation strategy to work, choosing an employer. They need to four elements must be in place: feel like what they do and who they • Fit the financial reality of the work for matter beyond a paycheck. by Mike Lanza, Sherwin-Williams Automotive Finishes Business Consulting Manager

Call orwww.autobodynews.com Email Now for Rates:

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

business

• Encourage and reward the right individual behaviors

•

Inspire and reward teamwork

• Provide a clear picture for individual opportunity

Instead of making the common mistake of overpaying employees and hoping they stay, developing a career path that rewards employees for their contributions while protecting the margin is the key to sustainable results. Transparent, easily understandable and simple goals are critical for employee productivity and retention. This has been true for every generation. I’ve seen the SMART matrix work for countless organizations. Employees need to know what they are being measured on, what the measuring instrument looks like and how it is used, agree that their goals are attainable and—most importantly for millennials—understand

how it serves the organization’s strategy. Naturally, many millennials entering collision repair will be on the front lines, engaging directly with customers. Therefore, it’s critical that they not only are given the tools they need to provide outstanding customer experience, but are also rewarded for doing so. Importantly, rewarding employees does not have to be about cash. Millennials show a strong value for spending time with friends and family. This down time is equally—if not more—important than cash. It ultimately comes down to understanding what motivates the employee, and right-sizing bonus plans and incentives accordingly. By 2025, 75 percent of the workforce will be millennials. As millennials enter—and many more consider entering—the collision repair industry, we need to be doing what we can to ensure our industry is a rewarding career path for the best talent. That begins with understanding the employee.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Historical Snapshot with John Yoswick

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

OEM Info Websites Have Existed for 15 Years 20 Years Ago in the Collision Repair Industry (April 1998) Roger Wright of Integon Insurance agreed that the existence of nonOEM parts may have resulted in higher prices for some OEM parts for which there is no non-OEM version. “That’s why moldings are $200,” Wright said. “It’s interesting: When you look at the gross parts dollars combined [for OEM, non-OEM and salvage], it’s still about the same part of the estimate as it was before nonOEM and salvage parts were used extensively. But what if we say, ‘Okay, let’s not use non-OEM; let’s just use OEM.’ What’s going to happen to parts pricing then? We’re just scared of that as an industry.”

In 1998, Roger Wright said insurers recognize that non-OEM parts help hold prices of some OEM parts in check while resulting in higher prices for parts without a non-OEM alternative

He said insurers do have some other leverage regarding parts pricing by informing vehicle manufacturers how the choices they make affect insurance premiums for a particular vehicle. He said insurers contacted one manufacturer about higher claims cost for vehicles that didn’t have break-away mirrors. “We said if you want to continue to have this as an insurable vehicle, you have to put the break-away mirrors on, and they did,” Wright said. “Can we do the same thing if they start raising the price of parts? Can we make the car uninsurable from a customer stand-point? Yes. So there is a little leverage there.” – As reported in The Golden Eagle. Wright was speaking during a panel discussion regarding nonOEM parts during an Automotive 28

Service Association annual meeting. Wright later worked for other insurers (including AIG) and collision repair chains (CARSTAR and Sterling Auto Body) before forming Vector Squared, an independent consulting firm, in 2014.

15 Years Ago in the Collision Repair Industry (April 2003) Accessibility to OEM repair information continued to be a topic of discussion within the industry and at the Collision Industry Conference (CIC) in Phoenix in April. In a presentation for the CIC “OEM Committee” on how Ford Motor Company takes collision repairs into account when designing vehicles, Steve Nantau, collision repair supervisor for the automaker, said his company now has repair manuals available for many of its models and expects to have manuals for all models by the end of this year. Bill Haas of the Automotive Service Association pointed out that 22 automakers currently have service and repair information available to shops via website. Subscriptions for access average about $20 a day and offer shops immediate access to the specific information they need. He cited an example of a shop that had replaced a door on a 2002 Nissan Altima but couldn’t get the power window to open or close completely. “There’s a relearn procedure that’s necessary for the power window,” Haas said. “That procedure is available on the Nissan website. So the technician was able to access that service information immediately, go back to the vehicle, perform the relearn procedure and make that car deliverable.” – As reported in Autobody News. Nantau retired from Ford, and Haas is now an independent consultant and trainer. Links to OEM information websites for more than three dozen automakers can be accessed via www.OEM1stop.com. 10 Years Ago in the Collision Repair Industry (April 2008)

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Mitchell International and CCC Information Systems say they will continue to operate independently for the next 2–6 months until the merger the two companies have announced is approved by regulators and final-

In 2003, Steve Nantau said Ford Motor Company was expanding the amount of collision repair manuals it was making available to the industry

ized later this year. At that time, CCC’s CEO Githesh Ramamurthy will become CEO of the new “CCCMitchell, Inc.,” and current Mitchell

CEO Alex Sun will become president of the new company. Termed a merger-of-equals, its new board will have equal representation from each of the two private equity firms that currently back CCC and Mitchell. Longer-range plans reportedly being discussed within the companies include creation of a new common electronic estimating platform that will use Mitchell’s database. One side note to the CCCMitchell announcement: Sources say that just such a merger was something Tony Aquila unsuccessfully worked to make happen while chief operating officer at Mitchell in 2003– 04. After leaving Mitchell, Aquila founded Solera, now the parent company of Audatex, which now must compete against the merged CCCMitchell. See OEM Info Websites, Page 50

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A Tale of Two Paints: A Visit to Axalta’s Training Center in Concord, NC by Barbara Davies, Autobody News

On Feb. 22, I arrived at the Axalta media event on behalf of Autobody News expecting a tour of Axalta’s training center in Concord, NC. Little did the other media participants and I know, we would also be getting a chance to spray two of Axalta’s premier basecoats: Cromax EZ and Spies Hecker Hi-TEC. Before the hands-on spraying took place, Harry Christman, Axalta’s North America Cromax Brand Manager, gave an overview of Axalta’s history, the collision repair market and the target audiences for both the Cromax EZ and Spies Hecker HiTEC waterborne basecoats.

Christman outlined the top three market trends: 1. The insurance market continues to consolidate and the top 10 insurers, led by State Farm and GEICO, continue to push direct repair programs to lower costs and improve CSI. 2.

Top insurers will continue to

drive DRPs and reward MSOs with more work, fueling MSO segment growth. As of 2014, over 30 percent of DRP workflow is allocated to MSOs.

“Big insurers, State Farm, etc., are becoming more influential,” Christman said. “The big are getting bigger and

nel with insurers. “The MSOs are all about growth, repeatable processes and strategic relationships. These are large-scale operations, many with hundreds of locations across the country. They want to grow and standardize every process and KPI, and narrow down the variables. Their culture is standardized in order to meet company growth goals. They are all about productivity.”

3. Despite all the consolidation fueled by the “Big 4” MSOs’ growth, the nonMSO (e.g. independent shop) market size is still sizable at $23.3 billion or 72.1 percent of the total market (Romans Axalta media event participants spray two of Axalta’s premier Report 2015)

basecoats, Cromax EZ and Spies Hecker Hi-TEC, at Axalta’s training center in Concord, NC, on Feb. 22

they have extensive DRP programs. The insurers are partnering with MSOs for efficiencies and are laserfocused on productivity and CSI. MSOs streamline their processes and productivity to ensure their DRP chan-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Hence, the Tale of Two Paints: Spies Hecker Hi-TEC and Cromax EZ.

Axalta launched Spies Hecker Permahyde Hi-TEC waterborne basecoat about 10 years ago. It was designed to

provide a faster process to help improve cycle time and CSI. Hi-TEC’s streamlined process was a great fit for the MSOs in that it only required 1.5 coats wet on wet application with no flash required between coats. Fewer coats provided increased productivity and capacity with higher spray booth throughput. “Spies Hi-TEC requires about seven minutes of application time vs. 30+ minutes for a traditional paint process,” Christman said. “It gives shops the capability of pushing through more cars for greater profitability—something the MSOs are keenly focused on.” “When Axalta came out with Spies Hecker Hi-TEC, they thought that all shops would move away from the traditionally applied basecoats since Spies Hi-TEC required fewer base coats and less drying time in between coats. “We were wrong! Many of the independent shops liked using the traditional basecoats that they had great expertise with, and didn’t want to switch to Spies Hi-TEC. These

shops may have some DRPs, but they are not driven solely by insurance companies and DRPs. They have more latitude to select the processes, and paint, that they want to use. “An analogy I like to use is getting a notification that a piece of software you use constantly (for example, software version 1.0) has a new version, 2.0, that the software company wants you to upgrade to. You know how to use version 1.0, and even though you know the new version 2.0 is probably better, you resist upgrading. “This is what Axalta experienced when they launched Spies Hi-TEC. Some painters have been using a particular paint process for 20+years. They understood that Hi-TEC might be better, but it required a different spraying technique and they didn’t want to give up their current painting process.” To continue the analogy, many painters who loved version 1.0 (Cromax) didn’t want to go to version 2.0 (Spies Hi-TEC). “Axalta realized after 7+ years of trying to get all painters to switch to Spies Hi-TEC, some painters just

didn’t want to give up the way they had been painting for years,” Christman said. “Axalta listened to these painters and came up with a new Cromax, Cromax EZ, in late 2017.”

Axalta media event participants speak with Steffen Apollo (r), Brand Manager, Spies Hecker, Standox at the Axalta training center

As Christman explained, Cromax EZ is “waterborne made easy.” It was designed to be simple and incorporated the same spray and blending techniques that independent shops have been using for years.

Cromax EZ’s new basecoat is all about simplicity: • Easy to mix: No agitation toners, eliminates need for traditional

mix machine. • Easy to match: Intuitive Fan Deck with 5,500 color chips sorted chromatically as well as digital Acquire Quantum EFX and Colornet Web 2.0. • Easy to apply: Coat-flash technology. Familiar wet on dry application process, similar to solvent borne. No wait time before applying clearcoat. To experience these paints first hand, all Media Day attendees were suited up and invited into the booth to spray each brand and experience each paint process first-hand. After spraying both paints, I certainly appreciated the speed and efficiency of spraying Spies Hecker Hi-TEC paint, but there was something compelling about the artistry of spraying the Cromax EZ, even though the process did take longer. My takeaway: Two paints are better than one.

To learn more about Axalta’s Cromax EZ and Spies Hecker Hi-TEC, go to axaltacs.com.

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I-CAR® has awarded Insurance Gold Class® business recognition at the corporate level to State Farm®, an achievement reserved for insurance carriers that are committed to improving the performance and quality of auto collision repairs. State Farm’s appraiser staff has completed the Platinum Auto Physical Damage Appraiser (APDA) training requirements in I-CAR’s Professional Development Program (PDP), therefore achieving corporate Insurance Gold Class. State Farm’s Select Service® Program also recognizes I-CAR’s Welding Training & Certification™ as part of its network education, equipping each of its network technicians with the necessary information, knowledge and skills to perform quality welds. “State Farm’s enthusiasm and encouragement for its appraiser staff to adopt APDA training and as a result, become a corporate Gold Class organization, confirms a dedicated commitment to training throughout the organization,” said Brad Gutcher, I-CAR manager, segment development - insurance.

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√ 24-Hour Delivery √ Full Parts Inventory √ Overnight UPS Service √ Serving All of New England √ Call before 7pm for Next Day Delivery Genuine Infiniti Parts and Accessories deliver model-specific engineering, enginee perfect fit, reliability, and like new performance for your vehicle you would expect from an Original Equipment ent Manufacturer. Genuine Infiniti Parts and Accessories fit the first time, helping you save time and money. “You have my guarantee of personal service. We do what it takes to get the right Infiniti parts to you u on time.” -Kevin Donnelly, Parts Manager

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

H O NDA C ONN ECT IC UT

Lia Honda of Enfield E n fie l d

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

Manchester Honda M a nch e ste r

800-442-6614 860-645-3115 Dept. Hours: M-F 7-5; Sat 8-4 gabe.llantin@manchesterhonda.com

Schaller Honda N ew Br i ta in

800-382-4525 860-826-2080 Dept. Hours: M-F 7:30-5; Sat 8-1 jkiniry@schallerauto.com M AINE

Berlin City Honda So u th P or tl a nd

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

Prime Honda Saco

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

Criswell Honda Ge r m a n town

866-738-2886 Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com ACU RA M AR Y LA ND

Tischer Acura Lau rel

800-288-6983 301-498-3322 Dept. Hours: M-F 7-6; Sat 8-4 wholesaleparts@tischerauto.com M AS SAC HUSET T S

Acura of Boston Brig ht on

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

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. MA R Y LAND

NE W J ERSE Y

N EW YOR K

P EN N SY LVAN IA

Oâ&#x20AC;&#x2122;Donnell Honda

Madison Honda

Dick Ide Honda

El li co tt City

Ma dis on

R o che st e r

Wex ford

410-461-5000 410-461-9654

800-648-0293 973-822-1710

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

724-940-2006

Dept. Hours: M-F 8-6; Sat 8-5 bshortt@odonnellhonda.com

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

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

Ourisman Honda of Laurel

Rossi Honda

Lamacchia Honda

Lau re l

Vin ela nd

S y ra cu se

800-288-6985 301-498-6050

800-893-3030 856-692-4449

Dept. Hours: M-F 7:30-7; Sat 7-4 julio.cruz@ourismanautomotive.com

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

MA S SAC H U S ET TS

LIA Honda Northampton No rth a mpton

800-369-7889 413-586-6043 Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com NE W J E R S E Y

Clinton Honda An nan da le

877-657-2787 Dept. Hours: M-F 8-5 chrish@clintonhonda.com

Honda of Turnersville Tur ne rsvi l le

800-883-0002 856-649-1584 Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com

Hudson Honda

Route 22 Honda Hi lls i de

973-705-9100 Dept. Hours: M-F 7-7:30; Sat 8-5 rt22hondaparts@route22honda.com

VIP Honda

Lia Honda of Albany A l ba n y

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

No rt h P lai nfi e ld

Lia Honda of Williamsville

908-753-1680

W il l ia m sv il le / B u f f al o

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

Babylon Honda We s t Ba by lo n

631-669-5800 Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com

Brewster Honda B re ws t er

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

877-659-2672 716-632-3800 Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com

Ray Laks Honda

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

J.L. Freed Honda M o ntg o m e r yv i ll e

215-855-3587 Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-4 joseph.sciacca@jlfreed.com

Shadyside Honda Pi ttsb u rg h

800-468-2090 412-390-2908 Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com

Sussman Honda Ro sl yn

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

802 Honda Be rl i n

We st S e ne ca

802-223-9700

716-824-7852

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

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

Apple Honda Yo r k

800-960-9041 717-848-2600

We st N ew York

866-483-6917 201-868-9500

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

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

NE W JE RS E Y

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

Baierl Honda

NE W YO RK

N EW YOR K

PEN NS YLVA NI A

Acura Turnersville

Acura of Westchester

Smithtown Acura

Tu r n er s vil le

Wes t ch e ste r

S t. Ja me s

E mm aus

888-883-2884 856-516-6060

914-834-8887

888-832-8220 631-366-4114

877-860-3954 610-967-6500

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

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

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

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

Elite Acura

Curry Acura

Ma p le Sh ad e

856-722-9600 Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com

Park Ave Acura

S c ar s da le

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

Ma ywoo d

Paragon Acura

888-690-7621 201-587-0028

718-507-3990

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

Woo d s i d e Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com

Lehigh Valley Acura

Sussman Acura

P EN NS YLVANIA

Baierl Acura Wexfo rd

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

Jen kint own

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

Davis Acura L a ngho r ne

866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com autobodynews.com / APRIL 2018 AUTOBODY NEWS

Old School Know How

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

with Ed Attanasio

Teresa Aquila Just Won’t Quit... Ever! To say that Teresa Aquila takes life by the reins is the understatement of the century, because ever since she can remember, she’s been doing it all without slowing down. At age 63, Aquila doesn’t have a pause button—only forward, and that’s the way she prefers it. She has been injured on the job as a mechanic, shot as a reserve cop and marginalized by men in the automotive industry at every turn, but she keeps coming back with more fervor and determination than ever before. As a renowned mechanic, columnist, teacher and the producer of a popular auto repair radio show for women, not to mention a policewoman, Aquila isn’t afraid to take chances and follow her dreams. Her mechanical career has spanned more than four decades, working on everything from Porsches to heavy equipment, including her personal fleet of classic vehicles—all of which she restored herself.

ferences between aftermarket and OE parts, the telltale signs of a bad body shop, and recently we interviewed Rocco Avellini, the founder of Wreck Check Centers about how to avoid shoddy collision repairs,” she said. “The show’s overall theme is to educate women about cars and how to repair them, in order to protect them as consumers.” Aquila’s career in mechanical repair started right after high school graduation, she explained. “I got a job working on a fleet of ice cream trucks, and I learned a lot by observing their mechanic,” she said. “He taught me about brakes, engines and carburetors, and later how to prep and paint a car. It gave me a good start in the industry, but after that it was a battle, because no one wanted to work with a woman.” Today, there is the “Me Too” movement, but back when Aquila was working in the automotive repair industry, there seemed to be an “Anybody But You” movement. Her career as a mechanic taught her a lot of valuable lessons, and the main one was “Never quit...ever!” “I worked for 10 years at a place where I was the only female mechanic and the guys never accepted me,” Aquila said. “They sabotaged my work or gave me Teresa Aquila owns a fleet of 13 classic vehicles, all of ridiculous jobs to do that which she completely restored herself were demeaning. When they Aquila’s weekly radio show, saw that I wasn’t going to quit, they “Teresa’s Garage Radio Show,” is threw all of my tools on the roof and broadcast on 1180 AM KCKQ every told me that I was taking money out Tuesday at 2 p.m. PST. Her show’s of a man’s pocket.” tagline is “Empowering Women One Now celebrating her 41st year Wheel at a Time,” dedicated to as a Washoe County reserve sheriff, women who dare to be different and Aquila serves and protects the comdesire to become more knowledge- munity without collecting a payable of car care. check. It’s an arrangement she is Aquila’s show deals primarily happy with, because it allows her to with mechanical repair, but occa- dictate her schedule and participate sionally includes various topics that in a lot of programs that are dear to are related to the collision repair in- her heart. dustry. “When I first started, I got the “We’ve presented topics like graveyard shift and realized I how to find a good body shop, the dif- could not do this,” she said. “So I

APRIL 2018 AUTOBODY NEWS / autobodynews.com

retained my reserve status and work 30–40 hours weekly now. I receive the same training and was promoted to lieutenant 10 years ago. I’m involved in neighbor-

One particular day definitely tested Aquila’s passion for law enforcement—The day she almost lost her life. “I was at another call, when a report came over the radio that told me that a highspeed chase was coming my way,” she said. “Here comes a vehicle at 120 mph coming right at me. It swerved and missed me by 20 feet, and I can still see the driver with his window cracked and a gun in his right hand. He smiled at me like he was saying ‘You’re Aquila recently celebrated her 41st year as a Washoe dead,’ and then I heard a County reserve sheriff loud crack. I thought I had hood watch efforts, coordinate blown a tire, but then there was blood high-profile events, do public everywhere.” Still in pursuit, Aquila became speaking and meet with the community to hear their concerns. It’s faint and had to pull over after travSee Teresa Aquila, Page 50 a great job and I love it!”

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National Associations with Chasidy Rae Sisk

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

In-House Money Makers: ASA Partners With Bosch for 2nd Webinar in Series On Wednesday, Feb. 21, the Automotive Service Association (ASA) partnered with Bosch to present “InHouse Money Makers,” the second webinar in its series about pre- and post-repair scans, at 1 p.m. EST. ASA Vice President Tony Molla welcomed attendees by mentioning the industry’s interest in pre- and post-scans with modern vehicles. He introduced the presenters, Bosch Technical Trainer Duane “Doc” Watson and Bosch Technical Instructor Steve Zach, who addressed preand post-repair scanning in-house over the following hour. Expressing his hope that these webinars were useful, Watson encouraged participants to provide feedback before noting that the industry needs a powerful tool because the dash lights do not tell the complete story. “More systems are coming every

year, and newer vehicles have up to 100 modules that need to communicate with each other to work properly. The pre- and post-scan procedures covered will help get a damaged vehicle back to its safe, pre-accident condition,” he said. Watson pointed out that many OEMs require, or at least recommend, pre- and post-repair scans. When answering when a scan tool is required, he admitted that it’s not a simple answer because it’s based on the age of the vehicle, options available and both the type and extent of damage. For example, Fiat listed conditions that could trigger DTCs prior to or during repairs, leading to improper vehicle performance. While there is not yet an industry standard for receiving payment for scans, shops get paid for approximately 70 percent of scans. However, Watson noted that having a printed

scan report is vital to getting paid, negotiations may be necessary with some insurers and rates can vary. It’s important to know what OEMs recommend. The equipment and training required include a quality scan tool, a battery maintainer or high-end battery jump box and copies of OEM position statements. Bosch supports scanning to identify DTCs in alignment with OEM position statements, and the company offers two scan tools: the Encore and the Evolve. Watson stressed, “It’s more than just buying a scan tool. There’s test prep to follow for the best results. The battery must have 12.6 volts, or you can get an inaccurate test. Use a fully charged battery booster or maintainer, but don’t use a battery charge because this can cause erroneous codes and is a poor choice when diagnosing.”

Providing a demonstration of the Encore, Watson explained that it begins by connecting the cable to the Vehicle Data Link connector and turning the key to the start position without starting the car. Then, users would set up their scan report by scrolling to the bottom of report options where they can alter settings, such as removing uncommunicative systems, prompting for extra fields, and include shop information. When it comes to vehicle entry, auto ID works with most 2006 and newer vehicles, or users can choose Manual Entry to select a vehicle by answering a series of questions, such as year, make and model, in order to show all modules on the vehicles that are available for diagnostics. Watson instructed attendees to touch ECM/PCM and choose “All system DTCs” to check all modules. All DTCs found on each mod-

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ule will be listed, and touching “code assist” under the DTCs will provide suggested repair information, also allowing users to access Direct Hit, Google, Mitchell or AllData for additional information based on the program with which they have an account. The DTC scan can also be emailed or printed through the share option—Both actions require set-up when used for the first time. The scan can also be saved to the scan tool itself, using the save function. In order to clear DTCs, users can touch “clear codes.” Watson recommends choosing “clear and reread,” which involves cycling the key off and on in order for the Encore to rerun the DTC test, but he warned that it may be necessary to manually clear specific modules. After hooking the tool to the battery and selecting “test,” users can “select vehicle” in the lower lefthand corner of the screen, start Auto ID, and follow the prompts to allow the scan tool to communicate with all of the vehicle’s modules. The time it takes to pre- or post-scan depends on the number of modules and the scan tool processor speed.

Watson reiterated, “After selecting the green arrow on the right for a complete report, users can save the report or select ‘Share’ to email or print it. It’s also possible to link to additional resources for information about codes and how to correct issues.” Back on the list of modules, choose the correct module and data stream, and select “All data items” to test. Users can review saved reports by scrolling to the left on the next page and choosing “View saved scans,” which allows them to select a report from a list. The saved reports also indicate if it was a pre- or post-scan, the time and date, the repair order number, the VIN and the mileage. As the webinar concluded, Watson and Zach fielded questions from attendees and announced that they will demonstrate the Evolve scan tool in their next webinar. The third webinar in this series is titled “The Right Scan, the Right Way: Key Scan Tool Procedures for Collision and Mechanical Repair” and will be presented on Wednesday, March 21.

For more information on ASA, visit www.ASAShop.org.

WIN Announce Recipients of the 2018 Most Influential Women in Collision Repair Award

The Women’s Industry Network (WIN®) is extremely pleased to announce this year’s honorees for the prestigious Most Influential Women (MIW) of the collision repair industry for 2018. After reviewing nominations and interviewing a number of talented women, four industry leaders were selected to receive MIW honors: • Shelly Bickett: Director, CoFounder of Fix Auto USA and Owner of nine Fix Auto Collision Repair Shops in California • Mary Mahoney: Vice President - Insurance Replacement Division, Enterprise Holdings, Inc. •

Marie Peevy: Owner, Auto-

motive Training Coordinators, LLC

•

Petra Schroeder: Collisionista

The Most Influential Women award was established in 1999 to recognize the achievements of women in the collision repair industry. Since then, more than 80 women have been recognized for their contributions to the industry. “This year’s recipients exemplify the meaning of ‘Most Influential.’ All four women have been a positive force in the collision repair industry and their local communities,” said Cheryl Boswell, Chief Financial Officer at DCR Systems, LLC, a 2015 MIW Honoree and Co-Chair of the 2018 MIW Committee.

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Tips for Busy Body Shops with Stacey Phillips

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

Emotional Intelligence Is a Key Element for a Successfully Run Body Shop

Whether a body shop is looking to success is emotional intelligence.” In 2016, entrepreneur.com stated ence in life,” she said. increase productivity, enhance team Marino explained that this is reIn a worldwide study of what that people with a high EQ make more performance or foster better leaders, ferred to as a person’s “EQ.” companies look for in hiring employ- money—on average $29,000 more Adrianna Marino said emotional Throughout her decade of expe- ees, Marino said 67 percent of the per year than those with a low EQ. intelligence can help achieve such rience studying emotional intelli- most desired attributes were found to “The link between EQ and earnbusiness goals and be a key factor in gence, which includes a certificate in be EQ competencies. ings is so direct that every point inrunning a successful company. crease in emotional intelligence adds The North American sales train$1,300 to an annual salary,” said “The link between EQ and earnings is so ing leader at AkzoNobel spoke to a Marino. “These findings hold true direct that every point increase in emotional group of body shop owners and manacross all industries, in all levels, in intelligence adds $1,300 to an annual salary,” agers about the benefits of emotional every region of the world.” intelligence during an AkzoNobel Marino outlined the four areas — Adrianna Marino Acoat Selected performance group of emotional intelligence: self-recogmeeting in San Diego, CA. EQ, Marino said she has found that a By being aware of emotional in- nition, self-management, social man“Emotional intelligence is a way better understanding of a person’s telligence, Marino said employees agement and social recognition. She of recognizing, understanding and emotional intelligence has numerous will increase the likelihood of improv- then shared tips on how to incorpochoosing how we think, feel and act,” benefits for the workplace. These in- ing their communication and problem- rate these competencies into a persaid Marino. “It shapes our under- clude enhanced employer/employee solving skills, decision-making skills, son’s personal and professional life. standing of ourselves and interactions relations, an improvement in company leadership, sales skills, teamwork and with others.” culture and a decrease in employee team performance. Self-Recognition: Someone who has low emotional turnover, burnout and absenteeism. “Productivity improves, as well Self-recognition involves self-awareintelligence may feel misunderstood Marino has found that most peo- as relationship satisfaction, customer ness and understanding, personal acand unappreciated, blame others for ple aren’t comfortable talking about service, conflict management and ceptance and an overall understanding See Emotional Intelligence, Page 54 their problems and is subject to emo- their feelings. overall effectiveness,” she said. tional outbursts and moodi“All human beings, reness. In contrast, Marino gardless of gender, have said those with high emofeelings and emotions they tional intelligence learn and bring to the workplace,” she adapt to audiences and situsaid. “We don’t work with Fast Daily Delivery to Northern, Central and Southern New Jersey ations, assume responsibility robots and machines every and take control of their perday. We work with human • Large Inventory of Genuine GM Collision Parts formance and productivity. beings. Whether we like it Adrianna Marino, • Professional and Experienced Wholesale Staff North American During her presentaor not, we have to talk about tion, “Applying Emotional sales training leader feelings and emotions.” 732.821.1108 LOCAL at AkzoNobel Intelligence for Personal She said the key word is 732.821.1517 FAX and Professional Success,” Marino “choosing.” explained to attendees how emo“We get to choose our thoughts, tional intelligence can shape interac- behaviors and feelings every day,” she tions with others, define how people added. “We’ve all heard the adage: learn, help set priorities and deter- “Leave your stuff at the door when you mine the majority of a person’s daily walk in. Well, it’s not possible. The actions. good news is you can learn how to maShe shared information from Dr. neuver that. That's what emotional inMichael Rock, a specialist in this telligence is going to teach you.” area, who designed and taught “EQ Numerous studies have shown and the New Workplace.” that managing emotions is something www.malouf.com “People typically attribute the that can be learned and directly influlion’s share of their success person- ences a person’s professional and perGENUINE PARTS FROM GENUINE PARTS GUYS ally and professionally to their men- sonal success. tal intelligence or IQ,” said Rock. Marino cited a study from UC “Research in psychology and human Berkley PhDs that showed EQ was performance over the last 20 years in- four times more powerful than IQ in dicates that mental intelligence does predicting who achieved success in contribute to success, but the far their field. Parts Dept. 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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Social Media for Shops

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

with Ed Attanasio

When Was the Last Time You Updated Your Website? You maintain your vehicle on a regular basis to keep it running right and on the road. I’m sure we all have those friends who are constantly remodeling their houses and looking for that next project to work on, whether it’s building a deck or re-doing their kitchen. Changing and updating things is a part of life, so why haven’t you touched your shop’s website since 2008? A website with new content lives and grows on the Internet. Every up-

rithmic factors determined by the search engine company itself. Their rules change all the time, so that’s why you need a web wizard to navigate through what Google is doing today. For instance, there are several reasons why a site could be indexed, including incoming links, the number and type of subject keywords used and how frequently a site is updated. Every time you make a significant update to your website, the search engine notices it and rearranges your

date you make to your site enables your existing and potential customers, insurance partners and vendors to find you online more easily. On the other hand, a static website without updates is considered dead by every search engine out there, which means that it will eventually drop down the rankings and end up being buried behind your competitors’ sites over time. Search engines love fresh content and sources of new information for their search requests, so if you can create relevant high-quality content, you will be on page one before you can say “Google.” Because in the end, one of the main reasons why any shop should have an online presence is so that customers can find them easily via any web search. The more you consistently update your website with articles, downloads and new web pages, the more regularly a search engine will drop in to visit your website. When search engines look at your site recurrently, you have the opportunity to attain higher rankings based on the content you’ve provided. Search engines use web crawlers, also known as “Googlebots,” that are basically high-tech programs that scan the Internet at lightning-speed for websites. The web crawler will index a site based on a wide range of algo-

site’s ranking accordingly. So, if you want to increase the chances of your website moving up the ranks, updating your content often so that a search engine will reassess your position on its index is the best way to go. But please keep in mind, a gaggle of new content is not the solution here—quality is. So, yes, it is a smart idea to update often, but make certain to keep your content standards high. Too many shops blast their websites with an avalanche of lowquality articles stuffed with too many keywords. When the web crawlers notice it, they penalize your website and in many cases, knock you down a few spots as a result. By far, the most frequently used search engine is Google. As the king of all search engines, Google has tremendous influence on webmasters and how websites are constructed. Google expresses its love for websites that are updated frequently, so you should add fresh content to your website as often as you can. But also avoid making unnecessary changes to your site, because Google is a little smarter than that. Shops that have a strong online presence are usually updated at least two to three times a week, normally through a blog. The Googlebots that crawl the web are always watching and searching for

“The reasons for changing or updating a website are numerous, but the main one is that the site must have an overall look and feel that is contemporary,” — David Moore

APRIL 2018 AUTOBODY NEWS / autobodynews.com

web pages that are new or updated, and then add this fresh content to their Google index. If you update your content often with consistent and valuable information, you will have a better chance of Google ranking your site higher after each new update. It’s really not that difficult to add an article or a photo to your site to get noticed. The easiest and best way to stay fresh is to add a blog on your site and continue to add articles that will get noticed by your viewers. If they comment on those articles, it also counts as an update on your site. So, write something that will elicit some feedback from your customers and friends in order to gain some attention that will lead to frequent updates. David Moore, the CEO of Collision Websites, normally recommends completely updating a website

every 3–5 years depending on the initial quality of the site. “The reasons for changing or updating a website are numerous, but the main one is that the site must have an overall look and feel that is contemporary,” Moore said. “If it’s not mobile-ready, you’re running behind, so you need to change that immediately and if your site is using technology that isn’t supported by all browsers (e.g. Flash), you should update it right away as well. “If your site doesn’t have a clear call-to-action, it should be updated. Make sure that the ‘above the fold’ section is uncluttered and contains a clear and simple headline with your phone number [and] address in large bold letters. You have three seconds to capture people’s attention, so don’t confuse them and make sure that your navigation is simple and that everything is easy to find.”

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Continued from Cover

Legal Battle

suit started back in the 1990s still remain embroiled in the judicial system? Back in 1999, a jury in the original Avery lawsuit found that the non-OEM parts installed on the drivers’ vehicles as part of their State Farm claim were inferior to OEM, and thus the insurer breached its contract to return those cars to “pre-loss condition.” It also found that State Farm had defrauded consumers by concealing known problems with the parts. The $1.2 billion judgment against State Farm was, at the time, one of the largest judgments ever levied against an insurer. The ruling changed the way many insurance companies dealt with non-OEM parts for years, and even today is seen as the basis for State Farm’s limited use of such parts. In 2001, in response to an appeal by State Farm, an appellate court affirmed the decision but lowered the damage award to $1.05 billion. State Farm then filed an appeal

ers, some of which had curtailed calling for the use of non-OEM parts for some years after the 1999 Avery judgment, to return to pushing shops to use the parts.

with the Illinois Supreme Court. In 2004, Judge Karmeier was elected to his first 10-year term on the Illinois Supreme Court. At that time, lawyers for the plaintiffs in the Avery case sought to have Karmeier recuse himself from participating in the Avery decision because they claimed his election campaign had received significant campaign contributions from State Farm. But Karmeier did not recuse himself. The next year, four of the six Justices on the Court—including Karmeier—voted to overturn the Avery ruling. The court ruled that the case should not have been approved as a national class action because State Farm uses different policy language in different states, and even within the same state. The Court found no breach of contract under any of the three different policy wordings related to the use of parts. It ruled that the plaintiffs in the case failed to demonstrate damages. Additionally, the court pointed out that the plaintiffs did not contend that non-OEM parts are defective—only that they are not all as good as OEM parts. The decision emboldened insur-

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New findings, new lawsuit However, in 2011, lawyers for the plaintiffs in the Avery case filed a lawsuit claiming they had new evidence of State Farm’s involvement in the recruitment of Karmeier as a candidate and in financing the campaign that led to his election to the Illinois Supreme Court. That campaign shattered state and national spending records for a judicial seat, with the two candidates spending more than $9 million combined. The current lawsuit argues that State Farm “delivered ‘tremendous’ financial support (at least $2.5 million and as much as $4 million) to Justice Karmeier’s campaign.” The plaintiffs’ attorneys argue, for example, that State Farm attorney and lobbyist William Shepherd was on the executive committee of the Illinois Civil Justice League (ICJL), which recruited and endorsed Karmeier as a candidate for the seat on the court, and was involved with weekly conference

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calls with Karmeier’s campaign manager (the head of the ICJL). The money trail described in the court filings is a bit convoluted, indicating that the contributions largely came through intermediary organizations being influenced by State Farm. The ICJL, for example, through its political action committee made $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, the lawsuit argues, State Farm CEO Ed Rust was part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated more than $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign. Attorneys say the new evidence should lead the court to reinstate the judgment against State Farm, or alternatively reconsider the case without Karmeier’s involvement. (Justice Karmeier in 2014 was narrowly reelected by Illinois voters to a second

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10-year term on the state’s highest court, and in 2016, he was unanimously elected by his fellow justices to serve as the chief justice on the court.) State Farm has argued that overturning the Avery ruling would be “disruptive in the extreme” to the Illinois legal system because the ruling has been cited in more than 200 subsequent court opinions. The insurer argues the contributions to Karmeier’s campaign from State Farm employees and others connected with the insurer were “quite modest,” by their estimate about $350,000. And it says the notion of “State Farm-influenced contributions” relies on an unsubstantiated argument that the insurer controls such organizations as the U.S. Chamber and the ICJL. State Farm had asked Judge Herndon for summary judgment in the suit, essentially dismissing it based on a lack of basis for it to move forward. But Herndon in February declined State Farm’s request. Herndon wrote that State Farm couldn’t demonstrate that any issues

Study: Connected Car Owners Would Not Buy a Self-Driving Car by Chuck Martin, MediaPost

While Google, Apple, Uber and most major automakers are steaming ahead to create driverless cars, the majority of consumers would not buy one even if cost was not an issue. Even if they do not own a fully autonomous vehicle, most U.S. drivers would be afraid to even ride in one. Consumer research relating to connected cars continues to show that autonomous cars are of relatively low interest to most consumers. A study out today shows that the majority (57 percent) of people who currently own a connected car would not buy a self-driving car even if cost was not an issue. The study comprised a survey of 1,500 connected car drivers weighted against U.S. Census Bureau data and conducted by Solace. Those surveyed own a car with connected device features, such as Bluetooth connectivity, GPS navigation, remote door locks, WiFi, backup camera/sensor or voice assistance.

See Legal Battle, Page 56

This follows an earlier AAA survey showing that 63 percent of U.S. drivers are afraid to even get into a self-driving vehicle.

Shutterstock Photo

However, many consumers see value in various connected features in cars. Consumers in the Solace study said the connected car alerts they would rely on are safety sensors for blind spot detection (49 percent), navigation prompts (35 percent), safety recalls (27 percent) and incoming mobile device activity (15 percent). The most valuable connected feature for driving was deemed to be real-time navigation. When they drive, most con-

sumers use an average of one to two applications, such as music streaming or hands-free calling. One issue identified in the study related to data. Nearly half (48 percent) of car owners were not aware that connected cars can store personal identifiable information, such as home address, social security numbers and birthdays. Among the top six car brands, there was no clear leader of which had the most innovative technology features. Interestingly, 62 percent of connected car drivers believe their connected cars help them drive safer, but 40 percent won’t trust their car to brake for them. The interesting marketing challenge ahead will be to change consumer attitudes toward fully autonomous vehicles. It will be interesting to see the size of that marketing budget. We thank MediaPost for reprint permission.

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Continued from Page 4

Labor Rate Tips

pretty good idea. For this index, the national average is listed as 100. The index number for your market represents the cost to live there as a percentage of that national average. For example: the cost of living index for Honolulu, Hawaii is 181, meaning that it costs 181% of the national average to live in Honolulu. Based on the cost of living index alone, we might expect to see body labor rates in Honolulu in the $103 to $159 range (that is, $57 times 181%, and $88 times 181%). Yet the survey data for posted body labor rates in Honolulu is in the $55 to $75 range, below the national average, and far below the cost-of-living-adjusted rates. As you can see, labor rates there appear misaligned with that geography’s cost of living.

2) Consider general consumer price inflation. This is simply the overall increase in prices of typical household expenditures. Inflation also erodes the purchasing power of money, as your dollars don’t go as far as they used to. In the US, inflation is measured by the Consumer Price Index (CPI) and is often used for cost of living adjustments (COLA), such as social security benefits. Last year in 2017, the CPI rose 2.1%, driven largely by energy costs, especially fuel oil and gasoline. To help maintain purchasing power and keep up with the overall increase in cost of goods, a shop could consider making an inflation adjustment to its labor rates. For example: if a shop currently charges $57 per hour, adjusting the labor rate for last year’s approximate inflation would yield a price of $58.20 (that is, $57 times 102.1%). Overall, our observation is that most body shops’ labor rates do not keep up with inflation over time, which puts those shops farther and farther behind every year, eroding their profits and purchasing power and risking their sustainability. Instead, we see body shops’ costs increasing at faster rates than inflation; paint costs alone could increase 3% to 8% per year, sometimes multiple times per year. We suggest shops think of keeping up with inflation as a mini48

mum requirement, not a real solution to choosing their proper labor rate.

3) Consider what makes your shop different, especially training, equipment, facilities, and OEM certifications. Shops are not alike, and those that have made more investment in these items likely have greater repair capabilities than shops that haven’t. And they likely require a higher labor rate to pay back and earn a return on those investments. Use the VRS to find apples-to-apples comparisons for your shop and what price ranges are for shops similar to yours around the country. For example: our national survey data shows I-CAR Gold Class shops have body labor rates in the $56 to $84 range; Assured Performance shops are in the $58 to $84 range; while Audi OEM authorized collision repair facilities range from $65 to $104 and Mercedes certified collision centers are in the $64 to $100 range. (All ranges quoted here are from that group’s average to plus 2 standard deviations. There is some overlap in these groups, and some shops are priced higher or lower.)

4) Consider what investments you need to make this year. How much money do you need to invest to improve your repair capabilities (especially for high technology vehicles), such as training, equipment, or earning OEM certifications? In general, your current labor rate only covers your current business. You likely need a new labor rate to cover new investments because your current rate was never priced to pay for them. Most body shop investments such as tools, equipment, and training are intended to make repair labor more skilled and effective. Equipment can’t repair a car by itself; it needs labor to put the equipment to use. The same goes for tools, facilities improvements, and certifications. Therefore, labor activity has the burden to pay off those investments plus earn a return. Let’s look at an example shop and investment: A shop needs to make a $5,000 training investment for a technician. The shop currently charges $57/hour for labor, has a 50% gross profit margin on labor, and wants to earn a 15% return on investment in one year for this train-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

ing investment. The technician bills 2,000 hours per year and operates at 100% efficiency. The 15% return on investment is $750 (that is, $5,000 times 15%). So the shop needs to earn back $5,750 (the $5,000 investment plus the $750 return) in one year. The shop decides to spread that cost evenly over the tech’s 2,000 billable hours, which calculates to $2.88 per hour. This is the additional amount per hour the shop needs to earn to pay back the investment in one year. Because the shop earns a 50% gross profit margin on labor, we divide the $2.88 by 50% to get $5.75. This is the additional amount that needs to be billed for each hour (via the labor rate) so that the shop earns the $2.88/hour profit it needs to pay off the investment and earn the return. Therefore, the shop’s current $57/hour labor rate plus the additional $5.75 equals $62.75, which is the new labor rate the shop needs to collect to pay for this $5,000 training investment and earn a 15% return. A similar analysis is needed for all the other investments in equipment, facilities, certifications, and

ongoing training. It can add up quickly. But shops that don’t adjust their rates to fund these investments quickly eat into their profits. Given the rapid increase in technology in this industry, we can expect a large and continual investment required to keep up with the training and equipment necessary to repair these hightech vehicles properly and safely. Mathematically, the industry’s current labor rates will only take a shop so far down that road before they are simply unable to afford the necessary investments. This leads to three major risks to shops: 1) lacking the knowledge to repair new high-tech vehicles, 2) putting consumer safety in jeopardy, and 3) putting themselves at legal risk by performing improper or unsafe repairs. None of these four tips are intended to be the only thing you do to compute labor rates. Think through all of these, look at the results, and then decide what price to choose. You can also go deeper with a more thorough cost of doing business analysis, examining competitive wage levels in your market, and deSee Labor Rate Tips, Page 56

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or producing her radio show, Aquila is writing a book about her life and maintaining her fleet of 13 classic vehicles. eling about eight miles. The chase “I love all of my cars, but I do eventually ended when the perpetra- have a special place in my heart for tor committed suicide, and later it my 1954 Chevy Bel-Air, because I was discovered that he was wanted did all of the bodywork on that one on murder and drug charges. myself. Every one of my vehicles is “I was lucky, because when he drivable and I still have [my] very shot at me, the bullet went through first car—a 1963 Chevy Impala that I bought when I was 18,” she said. Even though her career as a mechanic hit its share of speed bumps along the way, Aquila still believes that women belong in the automotive repair industry. “I tell young women all the time that it’s still a male-dominated business, “Teresa’s Garage Radio Show” is broadcast on 1180 AM but if you stay focused and KCKQ every Tuesday at 2 p.m. PST put your best foot forward both of our car doors before going in anything you do, you will be sucthrough my leg. Six months later, I cessful,” she said. “Don’t ever let was back on the job. People thought anyone dissuade you on your jourI was going to quit, but I’m in it for ney, because we’re all on the same the long run,” she said. road—even though we’re in differWhen she isn’t chasing bad guys ent cars.”

Continued from Page 34

Teresa Aquila

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Continued from Page 28

OEM Info Websites

– As reported in CRASH Network (www.CrashNetwork.com), April 14, 2008. A year later, the two companies cancelled the planned merger after the Federal Trade Commission (FTC) moved to block it; the FTC said it had an “impressive body of evidence…demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers.” Ramamurthy, Sun and Aquila remain in their positions at CCC, Mitchell and Solera Holdings, respectively. 5 Years Ago in the Collision Repair Industry (April 2013) Because Arizona shop owner Dan Hunsaker had spoken negatively at several industry meetings about his experience with PartsTrader, he was asked why he stays on the State Farm program. “At this juncture, I don’t see the benefit of being a sacrificial lamb,

and then having them six months from now say, ‘You know, this isn’t working; we’re not going to continue with it,’” Hunsaker said. “I’m taking a wait-and-see attitude. If this thing goes national, then I’ll sit down and pencil it out, and I will make a very informed business decision.” Perhaps of more interest to shops often afraid to speak out negatively about an insurer’s mandate, Hunsaker was asked if his company had experienced any blow-back from State Farm because of his outspokenness about PartsTrader. “State Farm is entitled to their opinions, and the collision industry is, too,” Hunsaker said. “No, I’ve haven’t had any repercussions yet. Would I be surprised if it happened? After 40 years in this industry, no, I wouldn’t be surprised. So far I’m saying what I think and I share all this with State Farm, too. I’m very clear with them about how I feel.” – As reported in CRASH Network (www.CrashNetwork.com), April 1, 2013. Five years later, Hunsaker’s shop remains on the State Farm “Select Service” program.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

NHTSA’s Approach to Autonomous Vehicles Taking Form by Christopher H. Grigorian and R. Nicholas Englund, WardsAuto

The closing years of the Obama administration saw a whirlwind of regulatory activity from NHTSA, including multiple consent orders, record penalties and soaring recall numbers. Hailed as the “new normal,” the more aggressive enforcement posture has remained largely in place as the Trump administration has been slow to bring in new political leadership to the agency. Although Trump’s regulatory philosophy has been slow to emerge, the direction the agency will take is beginning to come into focus as 2018 gets under way. NHTSA is reportedly seeking to double the headcount in its Office of Defects Investigation by the spring of 2018. Additionally, NHTSA has reorganized its enforcement office, reformed its investigative approach and is developing a risk matrix for specific safety issues that it hopes will make its investigation process more objective and consistent. But the biggest developments in automotive safety regulation this year likely will involve autonomous vehicles. Two autonomous vehicle bills, each with bipartisan support, are making their way through Congress. If these bills become law, the U.S. will witness significant regulatory changes that will push these life-saving technologies closer to ubiquity. In September, the U.S. House passed the first major bill aimed at regulating AVs with the Safely Ensuring Lives Future Deployment and Research In Vehicle Evolution (“SELF DRIVE”) Act, H.R. 3388. The bipartisan bill would expressly preempt states from regulating the design, construction and performance of vehicles; require AV manufacturers to submit a safety assessment to NHTSA; require detailed cybersecurity plans for AVs; require written privacy plans for how AVs will use and share the data they collect; and, importantly, expand NHTSA’s exemption authority related to AVs. The Senate is working on a similar bill, the American Vision for 52

Safer Transportation through Advancement of Revolutionary Technologies Act, or AV Start Act, which moved out of the Senate Committee on Commerce, Science and Transportation by unanimous vote in October.

particularly as more of these assessments become public. NHTSA also has recently sought industry comment on changes that may need to be made to federal safety standards to accommodate potential alternative designs used by AVs, such

Recent hearings held by the Senate Committee demonstrate significant industry support for the bill. These AV bills have been proceeding as standalone legislation, but with Trump saying an infrastructure bill is a priority for his administration, they could also make their way into a broader infrastructure package. NHTSA also is determining how it will regulate AVs. In September 2017, the agency released updated guidelines on AVs stating it would take a non-regulatory approach using voluntary guidelines that address cybersecurity, humanmachine interface, crashworthiness, consumer education and training, and post-crash behavior of vehicles. The guidelines also set forth best practices for developing AVs and encourage manufacturers to voluntarily submit safety assessments that demonstrate the manufacturer is: ► Considering the safety aspects of automated technologies ► Encouraging industry safety norms for the technologies ► Building public trust, acceptance and confidence through transparent testing and deployment of AVs ► Engaging with NHTSA Due to persistent concerns regarding the safety of automated driving, manufacturers deploying these technologies likely will look for ways to demonstrate conformity with these design principles through a safety self-assessment or similar public outreach. Publicly sharing aspects of a manufacturer’s safety assessment or similar materials may be an important strategy in facilitating broad acceptance of these technologies,

as vehicles without a steering wheel or brake pedal. The future of NHTSA’s proposed rule on vehicle-to-vehicle communication in light-duty vehicles is unclear. Under a proposed rule that was published just days before the end of Obama’s tenure, the agency would issue a new federal motor vehicle safety standard that would require new light vehicles to be capable of sending and receiving “Basic Safety

Two autonomous vehicle bills, each with bipartisan support, are making their way through Congress. If these bills become law, the U.S. will witness significant regulatory changes that will push these lifesaving technologies closer to ubiquity.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Messages” to and from other vehicles over short-range radio communication (DSRC) devices. In addition to vehicle positional and behavioral data, V2V and socalled vehicle-to-infrastructure (V2I) communications potentially could transmit environmental data, such as road conditions, to surrounding vehicles. In the fall, there were reports the proposal would be axed. NHTSA later clarified that the agency still was considering the proposed rule and evaluating responses from the industry and public. Whether a final rule is adopted and what such a rule would look like remains to be seen. As the technology develops and proves out its viability, NHTSA likely will play a significant role in this area. As these vehicle technologies progress, the industry should expect to see changes in the laws and regulations in this area. We thank WardsAuto for reprint permission.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Page 42

Emotional Intelligence

of personal psychology. Marino said it is foundational to social awareness and self-management. Some of the measures include learning styles, strengths and weaknesses, self-esteem and temperament. 5 ways to build self-recognition: 1. Accept emotions without judgment. 2. Self-monitor; take time to reflect and review. 3. Accept advice without becoming defensive. 4. Analyze strengths and weaknesses fairly with an eye toward growth. 5. Create realistic personal expectations. Social Recognition: Social recognition reflects awareness and consideration of the feelings and responses of others. Marino explained that it’s the ability to empathize and maintain sensitivity to the moods and emotions of others, which allows for superior intuition and connection.

These include factors such as empathy/understanding, service, listening, rapport and adding value. 5 ways to build social recognition: 1. Actively look for opportunities to help others. 2. Actively listen; pay attention. 3. Take in feedback and critiques from others. 4. Follow through on promises and commitments. 5. Be positive and open when responding to new people and ideas. Self-Management: Self-management measures self-evaluation coupled with self-regulation. The awareness and discipline needed to control and harness feelings directly impact the ability to achieve personal objectives and develop an inner resolution, according to Marino. Satisfaction, happiness and contentment are results of self-management. Some of the factors might be restraint, discipline, flexibility and stress management. 5 ways to build self-management: 1. Set and monitor a specific course

APRIL 2018 AUTOBODY NEWS / autobodynews.com

and path for each day. 2. Act with focus and intensity. 3. Take time to evaluate and critique personal performance. 4. Avoid fatigue and burnout. 5. Remain accountable for your actions. Social Management: Social management includes interpersonal skills and focuses intelligence on generating results. Marino said that social intelligence fosters collaboration and connection. Some of the measures include encouragement, collaboration, conflict management and negotiation. 5 ways to build social management: 1. Take an active interest in others and their agendas. 2. Develop persuasion and rapport. 3. Be assertive, engaged, enthusiastic and involved with others. 4. Maintain poise and calmness. 5. Look for positive, constructive answers that help everyone improve.

When adopting emotional intelligence skills in a person’s day-to-day routine, Marino said a good reminder

is the computer command “ControlAlt-Delete.” “Control yourself, look for alternate solutions and delete situations that give you tension and negative energy,” she said. “We can’t get rid of everyone in life who gives us anxiety, but if there is a toxic relationship, try to maneuver around that or remove that person.” She also recommended that employees note their triggers and then focus on small changes to strengthen EQ. “Emotional intelligence takes practice; it’s a journey,” she said. “Take it one day at a time. Identify at least one area where you want to make a change and stick with it. You will see changes, though they may be gradual.” For more information about Akzo Nobel Acoat Selected, visit http://www.acoatna.com/.

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How Do the U.S., Canada Differ in Their Fight Against Insurance Fraud? by Bethan Moorcraft, Insurance Business America

Fraudsters will always find a way to cheat the system. All lines of business are vulnerable to the crime, including insurance, and organizations worldwide face the sometimes cumbersome task of continuously fortifying their operations to keep the tricksters at bay. Some countries are more active in their response to insurance fraud than others, according to Dan Gumpright, product manager, Global Insurance Solutions, BAE Systems Applied Intelligence. The issue is “significant” across North America, but the response mechanisms differ between Canada and the U.S. “While Canada suffers similarly to the U.S., there are considerably more central initiatives to combat fraud, such as the data sharing model adopted by CANATICS, an antifraud consortium in Ontario, which is pooling data in a single system and detecting organized fraud across multiple insurance companies. The majority of insurance companies in the province have signed up for the service and are actively using it,” Gumpright told Insurance Business.

“British Columbian government-run auto insurer ICBC insures all vehicle owners in the province and has adopted the same technology to combat fraud. A recent PWC report indi-

iStock Photo

cated success in early detection of opportunistic fraud, which will lead to prevention over time in the case of ICBC, as consumers become aware of the detection models in place and the risk associated to defrauding their insurer.” U.S. insurance fraud solutions also differ dramatically from the models working in the UK, Gumpright added. While the concept of P&C insurance remains the same in both countries, the insurance mod-

els are significantly different, therefore prompting different types of fraud. “The UK purchasing model of car and home insurance in recent years has massively increased through aggregators or price comparison websites rather than direct, with fewer policies than ever before being written directly,” Gumpright explained. “In the U.S., however, much of business is still direct, with a large number of consumers still purchasing through the traditional broker model. While internal policy and claims management systems have advanced in the US, the route in for the customer is very different.” Some UK insurance lines, such as car insurance, are slightly more simplistic than the comparable offerings in the U.S., where coverage understanding is sometimes limited. Add to that significant differences on a state-by-state basis in the U.S., and the chances for fraudsters to slip through the cracks continue to grow. “The state of collaboration is another significant difference,” Gumpright added. “The UK’s data sharing model is significantly more advanced than most places in the

world. For example, the UK market has the Insurance Fraud Bureau (IFB), Insurance Fraud Register (IFR) and a dedicated insurance police task force, with almost all insurance companies collaborating to detect insurance fraud hitting the industry at large. “Collaboration is more complex in the U.S., often due to how states operate and their various rules. Datasharing capabilities exist, but they are significantly less advanced than that of the UK at this point in time. Indeed, some states in the U.S. don’t even count insurance fraud as a specific criminal offense yet.” We thank Insurance Business America for reprint permission.

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Continued from Page 48

Labor Rate Tips

termining your profit goals then backing into the labor rate needed to hit that goal. These require having a good handle on your financial statements and a good spreadsheet or calculator to help with the calculations. Also keep in mind that as unemployment in the US continues to drop, wage levels will increase, and it could become more expensive to acquire new employees and retain good ones. Shops need a labor rate that can support paying competitive wages. If you find yourself choosing between two rates, we suggest erring on the high side to help stay ahead of the increasing wage curve. Remember, there is no rule that says you can only set your labor rates once per year. Prices can change at any time for any reason, and because markets and businesses are dynamic, labor rates can and do change continually throughout the year. We advise shops to consider their labor prices several times per year as their business evolves, cost

structure changes, and investments are made. They can change rates as often as they need to. And very importantly, shops can freely report their new rates to the independent VRS Labor Rate Survey at LaborRateSurvey.com. Pricing transparency is essential for free markets to function efficiently, so your survey participation is critical. In conclusion, pricing your labor can often be more complex and more involved than this, especially considering all the investment needed to repair high-tech vehicles, but these simple four steps can help get you in the right range and closer to the right price for your individual shop. For a deeper analysis of your labor rates, greater access to more independent labor rate data, or help with any of these topics, contact National AutoBody Research for more information. www.nationalautobody research.com

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The Right Parts. A Perfect Fit.

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The Automotive Management Institute (AMi) recently announced that Michael Cassata has joined the organization in the newly created role of Director of Collision Industry Outreach. Cassata recently retired from Amica Insurance, where he held positions as National Repair Assistance Program Manager (DRP), National CAT Manager and Salvage/Recovery Manager. Since his retirement, Mike has offered consulting services through his company, Hammer Insights. He was the founding member of the I-CAR Rochester Committee and continues to serve on numerous industry advisory committees. “I have been supportive of AMi's new, relevant programs and now look forward to playing a role in the organization's future growth and service to the industry. I believe we must continue to grow, evolve and learn in every aspect of our lives. This is a perfect fit for the AMi message, and I am so happy to be working with Jeff and his staff to promote this to our industry,” Cassata said. He may be contacted at mcassata@amionline.org.

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

Legal Batle

in the current suit were identical to the issues decided by final judgment in the Avery lawsuit. “As the parties are well aware, Avery was about State Farm’s failure to equip its insureds’ vehicles with proper replacement parts, and this case is about State Farm’s alleged conduct in secretly recruiting Judge Karmeier, covertly funneling millions of dollars to support Judge Karmeier’s campaign and concealing and misrepresenting the degree and nature of its support of Justice Karmeier,” Herndon wrote. “Simply, [State Farm’s] actions in the two cases are entirely different and do not seek redress from the same wrong.” The legal battle that began over nonOEM parts back in 1997 has still not seen its final chapter.

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Today’s Vehicles Driving Change Within the Collision Repair Industry by Susanna Gotsch, Director Analytics, Product Management, CCC; Property Casualty 360

With newer vehicles accounting for a growing share of repairable volume again, the industry is seeing a reversal in some of the trends experienced during the recession.

Specifically, newer vehicles tend to have more parts replaced, lower alternative parts utilization and a lower repair percent of total labor spend. Add to this the fact that vehicles overall have become more complex, and these trends accelerate even further.

Fig 1

Growth in electronic vehicle content—items added to address vehicle safety or convenience also add to the overall cost and complexity of repair and the need to understand

Fig 2 58

OEM-recommended repair procedures. Not only are more parts per claim required, but additional labor not included in the labor for part replacement is needed for calibration, reset and scan operations. Repairers, insurers and OE manufacturers managing certified collision repair networks know the importance of managing repair cycle time, and actively monitor the differences between the planned and actual events for key process steps such as vehicle in, repair start, repair complete and vehicle out. The primary goal? Shave wasted time from the claim and repair process and streamline communication among all parties. Over the last five years, the average days between vehicle in and repair start, and the average days between repair complete and vehicle out have remained the same or seen moderate improvement, yet remain an opportunity for the industry to further streamline check-in and check-out. But it is the full repair time, the average number of days from the date the vehicle is brought into the shop to the date it is picked up (a 24hour / 7-day measurement), or “keys to keys”, that has seen the most change, growing from 8.5 days in CY2013 to 9.5 days in CY2017 (see Figure 1). The improvement in “vehicle in” to “vehicle out” days average between 2016 and 2017 may be driven most by the slight drop in the volume share that were both non-drivable and the highest appraisal cost (see Figure 2). Yet despite the drop in non-drivable and the repairs costing more than $10,000, volume overall has shifted into the higher dollar brackets, just as we saw with appraisal volume overall. With more parts and labor cost per claim, both the overall repair cost and the repair time have risen. Figure 3 illustrates how repair cycle times grow as do repair costs, with repair costs $0.01 to $500 taking 2.5 days, versus 20 days-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

lower score for the higher cost repairs suggests those customers may need additional hand-holding and updates throughout the repair process (see Figure 6). Prior analysis of customer satisfaction data conducted by CCC shows quality repairs and few returns lead to

Fig 3

plus for vehicles in highest repair cost ranges. Unfortunately, as repair costs rise, both efficiency of repairers (see Figure 4) and customer satisfaction with the repairer and the insurer fall (see Figure 5). A comparison of the ‘kept informed’ CSI score shows much less variation among repair cost dollar ranges, but the fact that there is a

scores; yet if the shop wants positive customer recommendations, it needs to make sure the service is great and customers are kept informed. In other words, quality is table stakes—Service gets repeat business. With “Previous Experience”

Fig 4

Fig 5

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and “Recommendations” chosen as key reasons why an individual selects a specific collision repairer, capturing business is as important as keeping it. As repairers look to load balance among locations and specialize work, understanding the impacts to cycle time and productivity will become increasingly important. A shop handling non-drivable, higher-cost repairs could see significantly different results; factoring these differences in repair mix and performance assessment will be increasingly important. The collision repair industry is challenged with repairing a broad range of vehicles, where vehicle complexity has grown dramatically for the youngest vehicles that have seen a resurgence in volume share on the heels of several years of record new vehicle sales. The next several years will be challenging as automakers compete to position themselves for the changing world of personal mobility, introducing more technology that is complex and expensive to repair, but may not immediately deliver on all

its promises in terms of accident prevention. Now more than ever, it is essential for the automotive claims and collision repair industries to stay current on new technologies, tooling and training. All increase the operating costs in a professional facility.

Fig 6

Completing a vehicle repair in a manner that follows recommended repair procedures can help head off any potential unplanned returns of the vehicle, and keeping the customer well-informed throughout the process will help keep the ever-more demanding customer satisfied with their repair experience.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Technology plays a key role in a company’s ability to quickly assess and respond to consumer feedback and other information on market conditions. It also holds great potential for improving communication and collaboration with customers

and business partners. Knowing how to use technology to cater the claims and vehicle repair experience to each distinct customer will lead to higher levels of customer satisfaction, retention and growth. The information and opinions in this publication are for general information only, are subject to change and

are not intended to provide specific recommendations for any individual or entity. Although information contained herein has been obtained from sources believed to be reliable, CCC does not guarantee its accuracy and it may be incomplete or condensed. CCC is not liable for any typographical errors, incorrect data and/or any actions taken in reliance on the information and opinions contained in this publication. Note: Where CCC Information Services Inc. is cited as source, the data provided is an aggregation of industry data related to electronic appraisals communicated via CCC’s electronic network or from total loss valuations processed by CCC. Where AIS is cited as source, the data provided is an aggregation of industry data collected from claims data communicated via AIS’s electronic network. We thank Property Casualty 360 for reprint permission.

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Continued from Page 20

Progressive Lawsuit

in the market. “It has been proven over and over again that a rate is not one number. The rate is a range of numbers,” said Perretta. “In a market, the range could go from $50 an hour to $120 an hour.” He said that shops that aren’t trained and don’t have the proper equipment or facilities to repair cars are paid the same rate by the insurance company as the shops that have the proper facilities, training and equipment. “That makes no sense,” said Perretta. “Any judge who looks at this whole situation is going to apply the law based on the contract… as this judge mentioned in his opinion.” Breach of Contract According to the court documents, Progressive argued that Professionals did not state a plausible breach of contract claim because it didn’t plead the existence of a contract, the terms of the contract and

damages. The insurance company also stated that the body shop did not have standing “…to pursue a breach of contract claim on behalf of third-party claimants who, by definition, are not parties to any agreement with Progressive.” Professionals alleged that the insurance company had contracts

with the insureds and liable thirdparties, which required Progressive to pay for “reasonable and necessary expenses.” In addition, the body shop said its customers assigned their claims against the insurance company. The court affirmed that Professionals pleaded a breach of contract claim and stated, “Professionals sufficiently alleged each element of breach of contract under Pennsylvania law.” The court also concluded that Professionals has standing to purse breach of contract claims on behalf of third-party claimants.

Bad Faith Claim Progressive asked the Court to dismiss Professionals’ bad faith claim for three reasons, according to court documents. First, it said that the body shop lacked standing to bring a bad-faith claim on behalf of thirdparty claimants. Second, Progressive stated that Professionals failed to plead a bad faith claim on behalf of insureds because it did not show that the insurance company violated the Motor Vehicle Physical Damage Appraiser Act; the insurance company paid part of the claims due; and the body shop did not establish that Progressive acted unreasonably. Third, Progressive said that the body shop’s bad faith claims that were based on repairs prior to August 23, 2015 are barred by the statute of limitations. Professionals, in response, conceded in court documents that “Pennsylvania law does not recognize bad faith claims asserted by ‘third-party of intended beneficiaries of insurance contracts.’” It also argued that Pennsylvania law doesn’t require a complete denial of a claim to state a claim

for bad faith. In response to the statute of limitations argument, Professionals “concedes that the Pennsylvania Supreme Court determined that a two-year statute of limitations applies to statutory bad faith claims.” The Court dismissed the body shop’s bad faith regarding third-party claimants and stated in court documents that “Under Pennsylvania law, the third-party claimant cannot have a cause of action for bad faith.” It also ruled that Professionals pleaded a bad faith claim in regard to the insureds. “Professionals alleges that Progressive failed to reimburse it for the full amount of the reasonable and necessary repairs without a valid justification,” according to court documents. “Furthermore, Progressive knew of or recklessly disregarded this lack of a reasonable basis because it failed to fully reimburse Professionals despite Professionals informing Progressive on several occasions that it had failed to pay the full cost of all reasonable necessary repairs on each of the vehicles that Professionals serviced… “The fact that Progressive has a long history of failing to fully reim-

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burse Professionals supports Professionals’ argument that Progressive acted in bad faith.” Accordingly, the court denied the insurance company’s motion to dismiss the bad faith claim in regard to the insureds. Regarding the statute of limitations, the Court granted Progressive’s motion to discuss the bad faith claim for those that occurred before August 23, 2015. Intentional Interference With Business Relations Progressive also tried to dismiss the intentional interference claim by Professionals and said the body shop “… fails to allege that any of its contracts with its customers were breached or not fully performed because of Progressive’s alleged breach, emphasizing that Professionals admitted that it ‘completed the terms of its contract with each vehicle owner.’” Professionals responded that it suffered actual losses due to the conduct from Progressive. The Court ruled that Professionals did not plead a plausible tortious interference claim, which requires

“purposeful action on the part of the defendant, specifically intended to harm the existing relation,” according to court documents. As a result, it granted the insurance company’s motion to dismiss the intentional interference claim. In the Court’s opinion, “The facts alleged in the Amended Complaint do not give rise to a reasonable inference that Progressive specifically intended to interfere with Professionals’ contracts with its customers; rather, they give rise to a reasonable inference that Progressive sought to underpay Professionals for the repairs that Professionals performed on covered vehicles.” Unjust Enrichment Claim Progressive attempted to dismiss this claim for three reasons. First, it said the body shop did not confer any benefit on the insurance company. Second, the body shop didn’t accept any benefit allegedly conferred and third, Progressive said that express contracts govern the repairs that are at issue. Professionals alleged that it conferred a benefit on the insurance in

which Progressive accepted, which was to repair the vehicles covered under the insurance policies without being fully paid for the work. In court documents, the body shop also said it “properly pleaded unjust enrichment in the alternative to its breach of contract claims.” The judge ruled that Professionals stated a plausible unjust enrichment claim and denied Progressive’s motion to dismiss this claim. “Professionals conferred a benefit on Progressive by discharging Progressive’s obligations to pay for repairs under its policies. Progressive accepted and retained the benefit because it failed to fully compensate Professionals. Furthermore, it would be unjust for Progressive to retain this benefit,” court documents stated.

Progressive also argued that “… the doctrine of res judicata bars Professionals’ claims for intentional interference with business relations and unjust enrichment because Professionals asserted identical claims against Progressive in previous litigation in the Middle District of Florida.” (link to MDL article) In response, Professionals asserted that the individuals it is representing in this case are not included in the MDL. The court agreed and ruled that Progressive did not establish res judicata. The legal information included in this article is based on court documents. Autobody News reached out to Progressive for comments, but none were provided. Autobody News will continue to report on this case.

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Factors Affecting Vehicle Sales, Insurance, Repairs by Patricia L. Harman, Property Casualty 360

Artificial intelligence, emerging technologies and changing consumer expectations are just some of the issues impacting auto sales, insurance and repairs, according to the 2018 Crash Course study from CCC Information Services, Inc. With 17.25 million vehicles sold in 2017, slightly down from 2016, the 2 percent increase in average vehicle prices to $36,113 meant it was still a strong year for manufacturers. Higher vehicle costs also mean increased insurance premiums, leading insureds to opt for higher deductibles should they be involved in an accident. According to the CCC report, 19 percent of all collision claims had a deductible of $500 or more, although the average repair generally costs significantly more than the deductible. Auto Technology Improves Manufacturers are working toward greater “vehicle connectivity, vehicle autonomy and vehicle electrification, powered by advancements in computer power, machine learning and artificial intelligence,” said Susanna Gotsch, Crash Course author and lead analyst for CCC. “Our industry has never moved faster or been so exciting. Advances in digitization, artificial intelligence, the internet of things, and sensor and camera technology are driving dramatic changes and improvements in automotive technology.” Connected vehicles are enabling vast amounts of information about a vehicle’s health, driving data (the vehicle and driver’s), performance, as well as vehicle-to-vehicle data to be collected by manufacturers, insurers and other parties. Some of the information can help insurers with more accurate policy underwriting. SMA research anticipates that 70 percent of all auto insurers will be using telematics by 2020. The benefits include a shorter delay in filing the first notice of loss with an insurer, since crash data could conceivably be sent to the insurer, first responders (in the event of bodily injuries) and to the repairer. Technology usage in other areas 66

has affected policyholders’ expectations for the insurance industry. Like online retailers who provide constant updates when packages have been dispatched, are en-route and will be delivered, insurers and repairers are expected to provide similar information to policyholders about their claims. Recognizing the importance regular communication has on customer satisfaction ratings, multiple insurers are utilizing programs to provide policyholders with regular updates on their claims status.

The Ups and Downs of Ride-Sharing As the use of ride-sharing increases, so does the number of vehicles on the road and miles driven. The Institute of Transportation Studies at UC Davis studied ride-hailing in seven U.S. cities and found a 6 percent drop in the use of public bus transportation and a 3 percent drop in light rail use. In New York City, increased ride-sharing usage accounted for declines in the use of taxi and private

car services. For business travelers, ride-sharing now accounts for 65 percent of the ground transportation costs, according to the Center for Automotive Research, while taxis only account for 7 percent and car rentals for 28 percent. Even airports are reporting a major drop in fees from parking, car rental companies and taxis. Auto Repair Costs Climb While Collision Severity Drops The increased use of advanced driver assistance systems (ADAS) such as front crash prevention, blind spot detection, lane departure warnings, park assist, obstacle detection and back-over prevention is having a positive impact. While these technologies are not mandated by the National Highway Traffic Safety Administration (NHTSA), the Insurance Institute for Highway Safety (IIHS) and NHTSA announced in 2016 that 20 major auto manufacturers had voluntarily committed to making front crash prevention systems standard on most

models (approximately 99 percent) by 2020. Studies by the Highway Loss Data Institute (HLDI) and IIHS have found that vehicles equipped with forward collision warning systems have reduced rear-end collisions by 23 percent, and accidents involving vehicles with automatic emergency braking dropped by 40 percent. The CCC report finds that in addition to fewer accidents, these systems may also help reduce the number of incidents involving cyclists and pedestrians. While these technologies have shown promise in reducing the number and severity of accidents, the cost to repair vehicles continues to rise. CCC said the average cost for a repair increased by 2 percent in 2017, to $2,927. Repair costs for non-comprehensive losses ran 2.3 percent higher in 2017 than the previous year, with costs for current model vehicles running slightly higher at 3.7 percent. Costs to repair vehicles that were 1 to 3 years old increased by 3%.

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However, there is a significant difference in repair costs depending on the age of a vehicle. Average repair costs for new vehicles compared to older ones increased from 47 percent to 69 percent over the last five years. “Dollars for replaced parts as a share of total repair costs and the average number of replaced parts per claim have increased—particularly for newer vehicles,” said Gotsch in her report. The increased use of driver assistance technologies can help mitigate or even prevent accidents, but like cell phones and other technology, they will also change driver behaviors. For insurers, this could also mean changes in liability and the types of insurance coverage required for a vehicle. The actual repair costs, while higher, could be offset by fewer overall accidents, which would have a long-term impact on parts suppliers and repair shops as well. The changes for all are probably coming more quickly than anyone expects. We thank Property Casualty 360 for reprint permission.

Continued from Cover

Shop Owner Guilty

vehicular assault in the second degree. The jury also preferred the lower charge of driving while ability-impaired to the charge of driving while intoxicated as shown on the indictment. Cole’s blood alcohol content was never mentioned during the case on orders from Saratoga County Court Judge James A. Murphy III. Media reports and images of the court room show that Cole was taken into custody by court officers immediately after the verdict was read and remanded to Saratoga County Jail. He is to be sentenced at 9:30 a.m. April 27. Cole, 53, of Clifton Park, is the owner of five area Cole’s Collision auto body repair shops. After a night out on March 11 last year, which included dinner and drinks in at least two area establishments, Cole, his wife Regina, and longtime friends Deanna and Scott Shapiro were involved in a car crash that so injured Deanna Shapiro that she is now a quadriplegic.

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During the two-week trial that ended at 2:30 p.m. March 15, the prosecution called the Shapiros to the witness stand to describe the night of the accident. Regina Cole testified in a similar fashion for the defense a day later and gave an alternate opinion of what took place in Cole’s 2015 BMW as it headed west on the road shortly before midnight. Cole was represented by attorney Cheryl Coleman. The prosecution was presented by Assistant District Attorney Katherine DeMarino. Both attorneys presented crash reconstruction experts as witnesses during the trial. In her statement, Heggen said the evidence presented to the jury showed Cole consumed alcohol at two local establishments before getting behind the wheel of his 2015 BMW with his wife and the Shapiros. “He recklessly drove down Sitterly Road at 78 mph—almost twice the posted speed limit of 40 mph— through multiple curves,” Heggen said in her statement. “As he drove at such a high rate of speed, he lost control of his vehicle and eventually

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crashed into a tree.” Heggen noted the car was equipped with an airbag control module that captured data documenting the speed of the vehicle, the fact that Cole kept the accelerator pedal depressed all the way to the floor throughout the crash, and that he failed to engage the brakes at any time. “This case,” Heggen said in her statement, “represents the tragic results that too often occur after someone gets behind the wheel of a motor vehicle and drives while under the influence of alcohol. His reckless conduct of speeding on a curvy road, at almost twice the speed limit, together with being impaired by alcohol, was the formula that resulted in the victim’s life being forever changed.” We thank The Record News for reprint permission.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Page 25

Assured Performance

Our overall objective is to ensure our network is filled with bestin-class businesses performing at their peak potential. To achieve that, we have to invest several million into the IT and innovation with new tools for quality assurance, business improvement, consumer awareness, marketing, human resource management, customer service and data integrity. Certified Collision Care Providers are extraordinary and not the same as body shops. They need to look and operate differently by using the tools that are available to them to improve their business model.

Based on the recent John Eagle decision, will you make any changes to your program?

We have already made the changes by introducing an OE-QC Quality Assurance program to enable shops to properly and adequately electronically document

their use of OEM repair procedures and help manage their technicians’ compliance to quality for 100 percent of their repairs. This is far superior to the spot check approach. NOTE: We are the only organization or certification program from any OEM with this tool, and it is offered at no charge to our Certified Repair Providers as an integral part of their certification.

What do you see for the future of OE certification programs?

The future of the OEM certification programs will be stronger, and more than ever, the backbone to ensuring vehicles are properly repaired to protect the consumers. With vehicles becoming more advanced in material and technology, coupled with the introduction of telematics, the OEM is going to be playing a bigger role in the collision business. Eventually, consumers will demand that their new generation vehicle only be repaired by a shop that is certified to repair their specific vehicle.

Continued from Cover

Uber Halts Car Testing tonomous vehicles on public roads across Arizona, giving rides to a small number of customers. A safety operator sits in the driver’s seat of all of these vehicles. Uber said it has suspended its autonomous car operations in Phoenix, Pittsburgh, San Francisco and Toronto. Company chief executive Dara Khosrowshahi said on Twitter: “Some incredibly sad news out of Arizona. We’re thinking of the victim’s family as we work with local law enforcement to understand what happened.” The company began testing its autonomous vehicles on public roads in California in 2016. However, within hours of the trial commencing, the vehicles were caught running red lights. California then revoked Uber’s license to operate self-driving cars in the state, claiming it had not paid for the correct permit to test its vehicles. Uber moved its testing to Arizona, but soon after that, in March

2017, one of its autonomous Volvos was knocked onto its side at an intersection. Although the car was driving itself at the time of the collision, it was ruled that a human-driven vehicle had failed to give way at a traffic signal, thus causing the crash. Tempe Police Department said: “On March 18, 2018 at approximately 10 p.m., Tempe PD responded to a traffic collision on Curry Road and Mill Avenue in Tempe, Arizona. The vehicle involved is one of Uber’s self-driving vehicles. It was in autonomous mode at the time of the collision, with a vehicle operator behind the wheel. The vehicle was traveling northbound just south of Curry Road when a female walking outside of the crosswalk crossed the road from west to east when she was struck by the Uber vehicle. The female was identified as 49-year-old Elaine Herzberg. Herzberg was transported to a local area hospital where she passed away from her injuries. Uber is assisting and this is still an active investigation.” We thank GearBrain for reprint permission.

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M-F 7:30am-6pm Sat 8am-1pm rhamilton@mileone.com 68

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

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855-417-4511 Fax: 240-499-2488 M-F 8am-5:30pm Sat 8am-5pm

rockvilleparts@ourismanautomotive.com www.rockvillevolkswagen.com

508-695-7131 Fax: 508-695-0321 M-F 8am-5pm Sat 8am-2pm

kenr@driveavw.com www.driveavw.com

NEW JERSEY Flemington Volkswagen Flemington

877-NJPARTS 877-657-2787

Fax: 908-782-1795 M-F 7:30am-5pm

www.njparts.com

Open Road Volkswagen of Bridgewater Bridgewater

908-685-1068

Fax: 908-685-1547 M-F 7:30am-5pm Sat 8am-3pm

845-298-2365 Fax: 845-224-3686 M-F 7:30-5:00 Sat 8:00-5:00

billsantoro@thepremiercollection.com Platinum Volkswagen Hicksville

516-822-4800

Fax: 516-822-4831 M-F 7:30-5:30

parts@platinumvw.com www.platinumvw.com Volkswagen of Kingston Kingston

845-336-6600

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Fax: 845-336-7436 M-F 8am-5:30pm Sat 8am-1pm

kvangorder@vwofkingston.net

vwb.parts@openroad.com www.openroadvwparts.com

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