Autobody News May Northeast Edition

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Northeast Edition New York New Jersey Pennsylvania Delaware

30

YEARS

VOL. 2 ISSUE 2 MAY 2012

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Mike Orso Launches $3 Million Suit Against Three Insurers, Citing Capping and Shorting by Kyle Mallory Leif’s Auto Collision Centers, Oregon

A long-established New York auto body shop owner who has successfully won over $1 million from insurance companies announced recently lawsuits seeking nearly $3 million from the trio of State Farm, Allstate and Adirondack Insurance. Mike Orso, the president of Nick Orso’s Body Shop of Syracuse, New York, is suing the insurers for a variety of reasons, including shorting the shop on payments and the continued battle of OEM (original equipment manufacturer) vs. aftermarket parts. “In a few words I can sum of these suits,” Mike said in a press release. “Capping and short payments,” before adding “the longer version, by and large, they consist of ‘shorting’ or ‘capping’ of labor rate, paint materials per itemized PaintEx, ‘Data base P-page’ denials, omissions, and a host

of arbitrary caps. Some of the caps are related to clear coat labor and materials or refusal of necessary body shop materials. Some itemized deficiencies are for parts cost, OEM vs aftermarket and used parts that we refuse for relevant reasons.” The tactics Mike is suing over, unfortunately, aren’t dissimilar from what Leif’s Auto Collision Centers sees in its Oregon shops. Both Orso and Leif Hansen see the same “deny, delay, defend” protocol from a myriad of insurance companies. Like Orso, Leif sees a problem with some insurers refusing to pay certain labor rates, which is why he recently had an independent survey conducted to verify his prices were well within the market. Indeed they are. Orso is fed up with seeing these same tactics over and over again and isn’t afraid to head to court seeking See Orso Sues, Page 8

IA L SP E C T ISSUE PAIN

OLOGIE H TECHN IS IN F E R PAINT &

of 3 issues S

● To strive for collision repair excellence ... ● To affirm and defend the rights as independent business owners, to serve our clients based upon our one-to-one contractual relation ship with those clients without any 3rd party interference... ● To resist any Influence of outside entities that would mandate the use of inferior parts, materials and/or techniques that would be utilized in the repair of our customers’ vehicles. ● To Increase Consumer Awareness as to any 3rd party efforts to negate, dilute, or otherwise compromise the rights of vehicle owners. ● To support the actions of those entities when said efforts are consistent with the best interests of vehicle owners. ● To facilitate Consumer Protection in any administrative, investigative, or political process that may attempt to affect or influence the rights of vehicle owners and/or those who seek to serve them. ● To encourage our collision repair clients to promote ethical business practices that will benefit the industry and the vehicle owner. ● To Promote our name and mission recognition among consumers.

T

What is the CCRE and why is ONY OMBARDOZZI so passionate about it?

L

INTERVIEW by Chasidy Sisk

see page 56 for interview

Paint Focused Articles in this issue...

PCL Automotive Products Help Rich Evans Excel . . . . . . . . . . . .p. 11 Top Chicago Painter Prefers Preval’s vFan Airbrush . . . . . . . . . .p. 25 Airbrush Artist Shannon MacDonald Uses PPG Envirobase . . . .p. 20 Matrix Has World’s First Premium Low VOC Solvent Basecoat .p. 38 How Innovations Meet Needs and Adding Value for Customers .p. 42 Standox® Partnership In Excellence (PIE) Member Conference .p. 47 AkzoNobel Holds Independent Distributor Conference . . . . . . . .p. 47 Decade of Innovation Turns Paint Industry Upside Down . . . . . .p. 52 The Advantages of a Thin Paper Masking Tape . . . . . . . . . . . . . .p. 54 How Blended Nitrogen Improves on Dr. DeVilbiss’ Invention p. 60 Collision Repair Estimates—Excellence Now Required . . . . . . .p. 62

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2 MAY 2012 AUTOBODY NEWS | www.autobodynews.com


Contents

NATIONAL AAIA and ASE Recognize World Class Technicians . . . . . . . . . . . . . . . . . . . . . . . 27 Another Lakeland, FL, Shop Files Breach of Contract Suit Against Progressive Insurance. 7 Automakers Could Face up to $250M in Recall Fines . . . . . . . . . . . . . . . . . . . . . . . 34 Body Shop Owner Eddie Lopez Shot Dead in Early, TX . . . . . . . . . . . . . . . . . . . . . . . . 53 California’s NEW CHIEF of Bureau of Automotive Repair . . . . . . . . . . . . . . . . . . 54 CAPA Adds SF Insurance Executive to Board. 18 CARSTAR & Mitchell Inc. Join Efforts on Store Management . . . . . . . . . . . . . . . . . . 27 CCRE 2012 Seminar—Taking Back the Collision Repair Industry. . . . . . . . . . . . . . 24 Chrysler Recalls Some 2012 Jeep Patriot And Compasses for Suspected Fuel Tank Flaws . 34 Chrysler Recalls Some 2012 Town & Country and

PAINT SPECIAL

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

A Decade of Innovation Turns Paint Industry Literally Upside Down. . . . . . . . . . . . . . . . 52 Airbrush Artist Shannon MacDonald Uses PPG Envirobase to Bring Icons to Life on Vehicles and Just About Everything Else. . . . . . . . . 48 AkzoNobel Holds North American Independent Distributor Conference in Boca April 24–26 . 47 BASF Recounts How Innovations Meet Needs and Adding Value for Customers. . . . . . . . 42 Collision Repair Estimates—Excellence Now Required . . . . . . . . . . . . . . . . . . . . . . . . . 62 How Blended Nitrogen Improves on Dr. DeVilbiss’ Invention . . . . . . . . . . . . . . . 60 Matrix System Launches World’s First Premium Low VOC Solvent Basecoat . . . . 38 PCL Automotive Products Help Rich Evans Excel on Every Project he Touches . . . . . . 11 Standox® Partnership In Excellence (PIE) Member Conference Gives Industry Trends Insight, Human Resources & Marketing . . 47 The Advantages of a Thin Paper Masking Tape . 54 Top Chicago Painter Prefers Preval’s vFan Airbrush for Mobility & Versatility . . . . . . . 44

Amato Agency. . . . . . . . . . . . . . . . 41 Audi Wholesale Parts Dealers. . . . 52 BMW Audi of Turnersville . . . . . . . 36 BMW Wholesale Parts Dealers . . . 53 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 8 Chief Automotive. . . . . . . . . . . . . . . 7 Classifieds . . . . . . . . . . . . . . . . . . . 63 The Clausen Company . . . . . . . . . . 4 CSS USA, Inc. . . . . . . . . . . . . . . . . 37 DCH Family of BMW Stores . . . . . . 9 DuPont. . . . . . . . . . . . . . . . . . . . . . . 5 Equalizer Industries. . . . . . . . . . . . 40 Ford Wholesale Parts Dealers. . . . 55 Fred Beans Parts. . . . . . . . . . . . . . 64 Fuccillo Auto Group . . . . . . . . . 14-15 Garmat. . . . . . . . . . . . . . . . . . . . . . 20 GM Wholesale Parts Dealers . . . . 45 Healey Chevrolet. . . . . . . . . . . . . . 43 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers. 47 Jaguar Wholesale Parts Dealers. . 48 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 57 Koeppel VW-Mazda. . . . . . . . . . . . 26 Lazare Kia . . . . . . . . . . . . . . . . . . . 31 Lexus of Massapequa . . . . . . . . . . 16 Lexus Wholesale Parts Dealers. . . 61 Maxon Hyundai . . . . . . . . . . . . . . . 13

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

COLUMNISTS Franklin - “Power Babes” Throw a Successful Event . . . . . . . . . . . . . . . . . . . 40 Mainstream Media - Complaints Lead to Arrest of Ohio Car Restoration Business Owner. . 50 Nigro - Reaching Beyond Traditional Advertising to Engage Your Customers . . . 12 Sherosky - Aluminum Stock—A Long-Term Auto-Related Opportunity? . . . . . . . . . . . . 41 Weaver - “GI—Think Like a Mechanic!” . . . . 35 Yoswick - Standards Program in the U.K. Offers Lessons for the U.S.. . . . . . . . . . . . 43

Dodge Grand Caravans for Machining . . . 34 Collision Repair Industry v. Sacramento at the Annual California Legislation Day . . . . 28 Dallas-Ft Worth Storms Take out 50,000 Autos and Damage 30,000 Homes . . . . . . 26 Enterprise Elite Service Partner Program Launches . . . . . . . . . . . . . . . . . . . . . . . . . 18 Former MLB Pitcher, Now Motivational Speaker, Engages East Bay CAA Members . 46 Insurer Report Card in Oregon Ranks State Farm #1, Farmers and GEICO Replace Allstate at Lowest Rank . . . . . . . . . . . . . . 61 Iowa Collision Repair Centers Raise $1,329 for Charity . . . . . . . . . . . . . . . . . . . . . . . . 40 Major ‘Chop Shop’ Busted in Jackson, MS, Owner Arrested, $500K in Nissan Parts Found . . . . . . . . . . . . . . . . . . . . . . . 63 MN Court Awards $157K in Progressive Ins. Underpays . . . . . . . . . . . . . . . . . . . . . . . . 27 Mopar Division Introduces First In-Vehicle Wireless Charging . . . . . . . . . . . . . . . . . . 34 NHTSA Proposes Standard for Brake-Throttle Override . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Oregon Body Shop Steps Up to Help Student’s Project Destroyed by Vandals, Assistance Helps him Graduate . . . . . . . . . . . . . . . . . . 6 Peter Vann Joins Urethane Supply Company Sales Team . . . . . . . . . . . . . . . . . . . . . . . 18 Poway, CA, Navy Veteran Has Vehicle Painted to Honor Troops . . . . . . . . . . . . . . 37 Registration for SEMA 2012 is Now Open for Attendees . . . . . . . . . . . . . . . . . . . . . . 18 Rich Evans CoSponsors Fundraiser for Baby Cancer Foundation. . . . . . . . . . . . . . 58 Sharing the Message with CCRE President Tony Lombardozzi . . . . . . . . . . . . . . . . . . 56 Special 2011 Ford Shelby Sells Twice at Barrett-Jackson in Palm Beach, FL . . . . . . . 4 Study Says EVs Cost $1200 Less to Run . . . 34 Women’s Industry Network Adds New Boardmembers . . . . . . . . . . . . . . . . . . . . 27

Melanie Anderson joined the Autobody News editorial team in April, 2012 as Assistant Editor. She received her Journalism degree from Humboldt State University and has been a professional writer for more than 20 years. Her background includes working as a newspaper reporter, a freelance writer and as a public relations and marketing communications professional. Melanie recently re-located back to San Diego county after Jay Lukes joined the Auhaving raised two kids in northern California. She tobody News sales and maris very happy to be back in the area. For fun, keting team in April, 2012 as a Melanie enjoys travel, photography, explorRegional Sales Manager. Originally ing locally, gardening and spending time from the Chicago area, he has spent with family and friends. If you have a the last 25 years in Southern California. story idea, please contact her at He has worked in the marketing and adver(800) 699-8251 or email to tising community since graduating from Cal manderson@autoboPoly San Luis Obispo and enjoys the relationships dynews.com. he builds with his clients. Jay’s most recent position was coordinating ad sales for Google’s online clients. When he’s not working, Jay likes spending time with his family, Notre Dame Football and traveling, preferably to Cabo San Lucas. He’s also an avid sailor having boated everywhere from Lake Michigan to Panama. Call Jay about an ad in any of our editions, or just to say “Hi” at 800699-8251 or email jlukes@autobodynews.com

Indexof Advertisers

REGIONAL Audra Fordin, NY Shop Owner, Garners State Awards . . . . . . . . . . . . . . . . . . . . . . 10 Cedar Grove, NJ, Shop Foils Theft Attempt Inside Office . . . . . . . . . . . . . . . . . . . . . . . 17 CollisionMax Offers Maximum Results in Collision Repairs . . . . . . . . . . . . . . . . . . . 20 Daniel Osley, Long Time Body Tech, Passes Away . . . . . . . . . . . . . . . . . . . . . . 17 Eastern Student of the Month Wants to Inherit Collision Repair Instructor’s Job Eventually. 6 Keenan Auto Body Opens its Avondale, PA, Location. . . . . . . . . . . . . . . . . . . . . . . . . . 17 Mike Orso Launches $3 Million Suit Against Three Insurers, Citing Capping and Shorting . 1 New England Paint & Body Expo in Boxborough, MA . . . . . . . . . . . . . . . . . . . 10 New Jersey’s Shade Tree Garage Wants Auto Related “Junk” . . . . . . . . . . . . . . . . . . 7 Pennsylvania’s Keenan Auto Body’s Jingle Contest . . . . . . . . . . . . . . . . . . . . . 16 Prestige Motors, Paramus, NJ, is Mercedes’ Best of the Best . . . . . . . . . . . . . . . . . . . . 10 Remembering Ron Kromer, Jr. Board Member at AASP/NJ. . . . . . . . . . . . . . . . . . 8 Shop Owner Tim Peotter, New Providence, NJ, Passes Away . . . . . . . . . . . . . . . . . . . . . . 17 Sixth Baltimore Police Officer in Body Shop Scam . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

New Talent to Serve Readers Better at Autobody News

Maxon Mazda . . . . . . . . . . . . . . . . 29 Mazda Wholesale Parts Dealers . . 51 Metric Subaru . . . . . . . . . . . . . . . . 42 Millennium Hyundai . . . . . . . . . . . 17 MOPAR Wholesale Parts Dealers . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 56 Nucar Mazda . . . . . . . . . . . . . . . . . 21 PaintEx. . . . . . . . . . . . . . . . . . . . . . 18 PCL Automotive . . . . . . . . . . . . . . 10 Plaza Auto Mall . . . . . . . . . . . . . . . 19 Porsche Wholesale Parts Dealers. 50 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Safety Regulations Strategies. . . . 28 SATA Spray Equipment . . . . . . . . 27 SCA Appraisal Company . . . . . . . 18 Scion Wholesale Parts Dealers. . . 59 Security Dodge-Chrysler-Jeep . . . . 6 Solution Finish. . . . . . . . . . . . . . . . 58 Subaru Wholesale Parts Dealers DE, South NJ, PA . . . . . . . . . 22-23 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . 49 Thompson Organization . . . . . . . . 25 Toyota Wholesale Parts Dealers . . 60 VeriFacts . . . . . . . . . . . . . . . . . . . . 35 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 46 Volvo Wholesale Parts Dealers . . . 54

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 3


Special 2011 Ford Shelby Sells Twice at Barrett-Jackson in Palm Beach, FL This year, at the Barrett-Jackson Palm Beach auction, one special unit was sold not once, but twice. A very special-edition 2011 Ford Shelby GT500 was sold twice in a row Saturday at the Barrett-Jackson Palm Beach auction, raising $950,000 for the Wounded Warriors Family Support foundation.

Marine Col. John Folsom (back to camera) talks with (from left) Barrett-Jackson president Steve Davis, retired Army Lt. General John Sylvester, auction CEO Craig Jackson and Ronnie Rains, who bought the car and donated it back to sell again. (Photo: Bob Golfen)

The red, white and blue Shelby, signed by dozens of veterans, families and supporters from all over the country, was hammered sold for $500,000 to a thunderous cheer from the auction crowd, which rose to a fevered pitch when the winner of the sale, Ronnie Rains of Odessa, Texas, donated the car back to be sold again. Rains, an Army veteran who served in Viet Nam and Europe, said he wanted to give the car back for rebidding because of his strong personal support for the Wounded Warriors organization and similar veteran’s groups. “This is what it’s all about right here,” said auction president Steve Davis. “God bless America!” The group’s chairman, Army Lt. General John Sylvester (retired), with his arm around Rains’ shoulders, added, “God bless America and God bless Americans.” With that, auctioneer Spanky Assister started his patter over again, with the second sale quickly reaching $450,000 and sold to Jack Miller, a Jupiter, Fla., collector and restorer of Ford Mustangs. The sales of the wrapped specialedition 2011 Ford Shelby GT500, signed by veterans, their family members and supporters, eventually raised over a million dollars for Wounded Warriors Family Support. Commenting on the news, Col. John Folsom, founder of the organization, noted, “Wounded Warriors Fam-

ily Support is a small, independent non-profit organization that provides support to the families of U.S. Soldiers, Sailors, Airmen and Marines who have been wounded, injured or killed during combat operations. “We are so grateful for the generous support of the auction participants and the American people. We are especially grateful for the team at Barrett-Jackson for their tremendous help. The money raised through this auction will enable us to help military families in so many ways,” he continued. At the auction, Folson addressed the crowd, saying the car is signed by people from all across the country— though President Barack Obama is not among them, yet. Folsom hopes to garner President Obama’s signature on this year’s car, as he will begin the third annual nationwide High Five Tour this June, with a 2012 Mustang GT500. On the 48-state tour, Folsom intends to “meet as many Americans as possible and thank them for their support of military families who have given so much,” officials noted. “The High Five Tour will make a stop in Washington, D.C., on July 7. I would be honored to have President Obama sign the 2012 car,” Folsom added.

President of Barrett-Jackson Honored for Donation In other news from the auction group, Steve Davis, president of BarrettJackson, was recently honored at the 8th Annual Armed Forces Congressional Gala Dinner with the “Congressman Bill and Mrs. Beverly Young Humanitarian of the Year Award.” He was recognized for the donation of his personal custom 1964 Ford Fairlane, which was donated to be auctioned for the Armed Forces Foundation, an organization that helps military members and families in times of need, at the 2011 Barrett-Jackson Las Vegas Collector Car Auction this past September. “Entrepreneur Ron Pratte successfully bid on the car for $700,000 and then promptly and altruistically donated the car back to the Armed Forces Foundation, to be bid on again at the 2012 Barrett-Jackson Scottsdale Auction in January,” officials explained. Then, in January, Ted McIntyre,

4 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

During the Gala, McIntyre announced that that he would be donating the car back to the Armed Forces Foundation and it would be sold once again at a future Barrett-Jackson auction. “I am beyond humbled to be a recipient of this prestigious award,” said Davis. “To see the outpouring of support we generated for our troops and their families was spectacular. I am so honored to be able to help The 2011 Ford Shelby GT500 traveled through most of the nation those who fight for gathering signatures, said Marine Col. John Folsom, who founded Wounded Warriors Family Support. (Photo: Bob Golfen) our country; it is these men and “The reaction at both auctions women who make me proud to be an was beyond enthusiastic and Barrett- American.” Jackson waived all consignment fees Barrett-Jackson has raised more at both auctions,” the company rethan $39 million for various charitaported. ble organizations since 2006, and But this car’s story doesn’t stop more than $45 million since its first there. auction, the company said. chief executive officer of Louisianabased Marine Turbine Technologies, successfully bid on the Fairlane for $1 million.

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 5


Eastern Penn. Student of the Month Wants to Inherit Collision Repair Instructor’s Job Eventually

Gregory Garvin is the April 2012 Student of the Month at Eastern Center for Arts and Technology in Willow Grove, PA. He is in his second year of Eastern’s collision repair technology program and a senior at Abington High School. Garvin maintains an A average in his collision repair technology program and is active in SkillsUSA as the Collision Repair Technology 2011-12 Class Treasurer. He received second place for collision repair technology at the SkillsUSA District Competition held earlier this year at the Western Center for Technical Studies in Limerick. Throughout the year, Garvin volunteered his time representing Eastern and his collision repair technology program at recruitment events such as Eastern’s Tenth-Grade Career Expo, and Garvin is the 2011 – 2012 student representative for Eastern’s Collision Repair Technology Occupational Advisory Committee. Last summer, Garvin was a teacher’s aide for Eastern’s Summer Fun Auto Mechanics and Collision Repair program for middle-school students.

Garvin received his SP/2 certification for collision pollution training and collision safety. Both his father and sister attended Eastern. At Abington High School, Garvin is a distinguished honor roll recipient. Outside of school, Garvin still finds time to participate on the Abington Township ice hockey team, and volunteers for the Glenside Youth Greg Garvin Athletic Club baseball team and Rau Animal Hospital. He has also been providing landscaping services locally since 2006. After he graduates, Garvin plans to attend Montgomery County Community College for business and eventually, he said he would like to take over for his collision repair technology instructor, Steve Parke. Eastern’s faculty, joint committee and the Willow Grove Rotary Club sponsor the Student of the Month program to highlight student excellence, success and service.

6 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Oregon Body Shop Steps Up to Help Student’s Project Destroyed by Vandals, Assistance Helps him Graduate

When Air Force veteran Arthur Anderson, of Jacksonville, put out the call for a community to come together to help a North Medford High School student, Leif’s Auto Centers was one of the first to respond. High school senior Jase Philby was in the process of restoring his 1989 Chevy Silverado Pickup for his senior project when the car was destroyed by vandals, leaving Jase seemingly without hope of completing his project and receiving the necessary credits to graduate. Jase’s 1989 Silverado was among five Chevrolets stolen and vandalized during the last week of March 2012. Much more than a vehicle, this Silverado Pickup was a crucial key to graduation for the North Medford High School senior. Jase was restoring the vehicle, of sentimental family value, as a senior project; the final step towards graduation and his entrance in to the United States Air Force. The damage done to the vehicle extended beyond the cosmetic; into the steering column and transmission. Alltold the destruction was significant

enough for the insurance company to designate the truck as being totaled. The repairs costs would far exceed the actual worth of the vehicle. Leif’s Auto Centers heard about Jase’s situation and donated $5,000 worth of parts and work from their Phoenix, OR, location to help restore the vehicle and get Jase the necessary credits to graduate. The rest of the funding came from local businesses and individual donations to help restore the vehicle. Industrial Finishes of Medford donated all the paint, valued at $800. B&R Auto Wrecking halved the $300 price for a new steering column and glass. Though past the project due date, North Medford High School extended the deadline for Jase while work towards completing the repairs continues. “We strive to be an active member of our local communities and as such are glad to help out when circumstances require it. This young man had quite a unique story and situation and we saw an opportunity to help.”


New Jersey’s Shade Tree Garage Wants Auto Related “Junk” Gather your old car parts, used motor oil, batteries, mercury switches and even old child car seats and bring it to Shade Tree Garage. The Morristown auto repair shop is one of the few in the area certified by the New Jersey Green Auto Repair Council and collects these materials for recycling. Grassroots is a feature of the Gannet-Daily Record and staff there interviewed owner John O’Connor what it means to be a green shop, and what he’s going to do with all that old stuff (hint: it won’t end up in a landfill!). Grassroots: What makes your auto repair shop “green?” John O’Connor: We have been recycling since before it was cool to recycle. We always recycled oil, antifreeze, refrigerants, tires, water pumps, alternators and starters. We go beyond the requirements, though. For example, we crush the used oil filters we take off our customers’ cars. By crushing them we squeeze the oil out to recycle it and then ship them to a recycler who strips the steel can off

and incinerates the paper element. We haven’t thrown a oil filter in the Dumpster in 20 years.

What is GARP? The N.J. Green Auto Repair Program is run by the Green Auto Repair Council. It is a voluntary certification program which is partnered with the state

John O’Connor, right, and his son Dan in a Pontiac GTO. O’Connor owns the Shade Tree Garage in Morristown, a certified green auto body shop. / Courtesy of John O’Connor

DEP as well as several automotive associations. The GARC established an evaluation program that a shop owner uses to review their operation. They look at our procedures and how hazardous or environmentally nasty stuff is contained. After the owner submits a

self evaluation, the GARC comes to inspect and recommend areas of improvement. The scoring is tough and in order to re-certify they look for continuous improvement.

How did you get into all this? I always recycled — after all I’m part of the Woodstock generation! I got involved with the GARC when I received a call from Mike Coppola at AAA after he heard about a similar program starting in Arizona that he had seen. Coppola, Jim Dodd from J.D. Auto in Dover, Jim Kowalak from Morristown Toyota and I met at AAA in Florham Park and cooked it up. We met for probably two years before it started to grow a life of its own. I can’t lay claim to the idea but I was there in the beginning. I have just rejoined the council. We even get extra use out of a car at the end of its service life. Before sending it to the junk yard to be recycled we give it to the Fire Academy and they use it to train firefighters and emergency responders in how to extract accident victims from cars.

Another Lakeland, FL, Shop Files Breach of Contract Suit Against Progressive Insurance

Paul Hawks, owner of Bernie’s Body Shop in Lakeland, Fla., is using a limited power of attorney signed by his customer and has filed a breach

of contract suit against Progressive Insurance Co. on behalf of his customer, a Progressive policyholder who asked that his name be withheld. The lawsuit is the results of the nation’s fourth largest personal auto insurer’s refusal to pay for repair re-

See Progressive Suit, Page 42

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 7


Continued from Cover

Orso Sues

remedy. “We keep seeing the same nonsensical issues over and over it’s ridiculous,” he said. “I think this going on more and more because the shops don’t push back or… appraisers keep dictating the same nonsense over and over in shops everyday everywhere. After a while it becomes the normal practice. Some shops have never known it differently. We’re told it’s ‘market price’ that sets rates and fees. We think it’s the allocated and dictated rates and fees that set the market price. I’m sorry to let the cat out of the bag but not all shops are the same.” As dealing with insurers is often times cumbersome, Orso has an inhouse attorney to deal with lawsuits. In a 2010 appeals suit vs. Adirondack—a lower court ruled Orso didn’t have standing to sue for recover due to policy restrictions on assignments—Onondaga County Supreme Court Judge William D. Walsh reversed the lower court’s ruling, af-

firming that by law, assignments of claim proceeds on post-lost assignments are indeed allowed under NYS law regardless of policy language. Orso’s in-house attorney, Joseph Talarico Jr. said lots of money was spent on the court process. “Mike spent big bucks to file that appeal,” Talarico said. “There is a lot involved in preparing an appeal but he knew a lot was at stake. It was clear the insurance side knew the potential also based on the effort expended trying to defeat us. By winning Mike cleared the way for himself and others to use the assignment process.” The assignment process is important because, as Orso points out, it allows a person with knowledge to negotiate a car’s repair settlement. “We are willing to negotiate if authorized,” Orso said. “If Orso’s handles the loss and negotiates, it’s because most consumers don’t have the time or expertise to pursue collection on their own.” While lawsuits with insurance companies who continue these practices isn’t ideal for Orso, he notes the alternative simply isn’t sustainable. “No one likes to go this route, it’s

8 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

expensive and time consuming but the cost of doing nothing as you can see by the numbers is unsustainable.” “I didn’t wake up one day and say ‘I think I’ll fire off a few lawsuits,’” Orso continued. But, he mentioned the importance of pleasing the customer, making sure they have upto-date equipment to handle repairs and keeping up-to-date with environmentally friendly products. “Right now we’re looking into installing two new energy efficient spray booths,” he said. As Orso explains, he’s in the business to make money, and what he’s seeking from insurance companies is that they adhere to the law and stop with the endless deny, delay, defend tactics. “Interesting, we’re finding insurance attorneys and deposed claims personnel are stating that appraisers in the field DO HAVE authority to settle claims and negotiate,” Orso said. “We all know that’s not what shops hear or experience every day. We notify every company of deficiencies in writing. Some requests are disregarded or responded to late by the same repeat offenders. You know who they are.”

Remembering Ron Kromer, Jr. Board Member at AASP/NJ

On March 20, AASP/NJ lost one of its most valued participants with the passing of former Board member Ron Kromer, Jr. As a second-generation repair professional, Ron leaves behind an unmatched legacy of strong association involvement including the organizing and promoting of numerous AASP/NJ events over several years. “Ron was always full of energy, and ready to take on a new task,” remembers AASP/NJ President Jeff McDowell, who knew Kromer for two decades. “He inspired people around him with his level of enthusiasm for whatever he would take on. He was always on the cutting edge of whatever information was out there and tried to share that with other people.” During his time with AASP/NJ, Kromer was directly responsible for overseeing a slew of special events including the Ski Trip, the Day at the Races and the Fishing Trip. Additionally, he was instrumental in the formation of AASP/NJ Chapter One in 2001 and created a special “P-Page Checklist” that shops could use to identify typically-forgotten items on estimates. AASP/NJ member Dan Hawtin remembers his friend’s willingness to roll up his sleeves and work hard for the benefit of his fellow technicians.


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Sixth Baltimore Police Officer in Body Shop Scam

A sixth Baltimore Police officer was sentenced April 13 for his role in a massive kickback scheme involving an auto body shop, receiving two years in prison and being ordered to pay $24,000 in restitution. Officer Rafael Feliciano Jr., 31, admitted last year that he referred accident vehicles to the Majestic Auto Body shop in Rosedale after being introduced to the store’s owners by a fellow officer, Rodney Cintron, prosecutors said. Prosecutors estimate that Feliciano alone caused a loss of between $120,000 and $200,000. U.S. District Judge Catherine C. Blake sentenced Feliciano to two years in prison, followed by three years of supervised release, and ordered him to pay restitution of $24,084, of which $10,000 will go to the Baltimore Police Department, according to a news release from the U.S. Attorney’s Office in Maryland. Fifteen officers pleaded guilty in the scheme, and another was convicted by a federal jury, while dozens more were implicated in the probe. The six officers who have been sentenced have received between eight and 30 months in prison, putting Feliciano’s sentence on the higher end.

New England Paint & Body Expo in Boxborough, MA

The New England Paint, Body & Equipment Expo, was held April 2021, 2012, at the Holiday Inn Convention Center in Boxborough, Mass. There were 47 leading manufacturers exhibiting in a sold-out convention hall. About 520 technicians are registered representing 250 body shops, along with 80 jobbers. Several attendees will become the lucky recipients of new products featured at the show, with over 24 featured products slated to be given away as door prizes. “It will be like Christmas in the spring with ‘show only’ deals for collision centers that will certainly put a smile on their faces,” says Gary Brown of Kwik Auto Body Supplies. “Many of the industry manufacturers will be on hand demonstrating their latest innovative products.”

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Audra Fordin, NY Shop Owner, Garners State Awards

Audra Fordin, owner of Great Bear Auto Shop Flushing, NY, was honored with two awards in the state of New York this month. Fordin was recognized by the Nassau Council of Girl Scouts as a member of the community that supported local Girl Scouts throughout the past years. Audra has been a troop leader for the past 6 years and has run programs with the scouts educating them about auto repair and environmental responsibility with her recycled tires to designer belt program for the past 2 years. The Nassau Council of Girl Scouts bestowed this honor upon Audra and other local volunteers during the Adult Recognition Awards Ceremony held at C.W. Post Hillwood Commons Auditorium in Greenvale, NY, on March 18th. “With all the recognition I get for my business activities, I have to say that this one makes me so proud. This one gives me more recognition from my children,” said Audra. On March 28, Fordin received the Capital One Bank New York Women’s Network “Women Who Rock” award in celebration of Women’s History Month.

Prestige Motors, Paramus, NJ, is Mercedes’ Best of the Best

Mercedes-Benz USA (MBUSA) announced that Prestige Motors, Inc. of Paramus, New Jersey has received the prestigious Mercedes-Benz Best of the Best Dealer Recognition Award based on its outstanding performance in 2011. Prestige Motors, Inc. was presented the award as a tribute to its success as an independent entrepreneur who routinely exceeds the expectations of Mercedes-Benz owners. The General Sales Manager, David Branch had this to say, “We would like to thank our customers for their loyalty and business during 2011. With the move of our facility to the state-of-the-art location at 755 Route 17 South, we have been able to serve our customers better than ever and will continue to do so for years to come. Thank you again and we look forward to seeing you at Prestige Motors, Inc.” This year, MBUSA is recognizing the top 15 percent of its retail network with the Best of the Best recognition. The award, which is presented annually, goes to top performing Mercedes-Benz dealerships for demonstrating superior performance in various areas of their business, including customer satisfaction, new vehicle sales, certified pre-owned sales, leadership and management, parts operations, and market penetration.


PCL Automotive Products Help Rich Evans Excel on Every Project he Touches by Ed Attanasio

Almost every successful car builder/painter over the years has been able to find what they call their “go to” products—whether it’s paint, primers, sealers or even a certain tape product that they utilize in almost all their work. Rich Evans, reality television star, Autobody News columnist, and owner of Huntington Beach Bodyworks, uses products made by Pacific Coast Lacquer (PCL Automotive) in every project he does. After 3,000 jobs performed over his 25-year career as a premier car builder and collision repair expert, Evans knows what he wants and what he needs to produce quality work time after time. That’s why he exclusively uses PCL’s refinishing products, primarily the company’s primers and clears, as well as their flat black topcoats, that have become increasingly popular with customizers and body shops alike. Evans has nothing but great things to say about PCL and identifies the manufacturer’s role in consistently saving time and money on every job that comes through the doors at Huntington Beach Bodyworks. “I use their products on a wide range of projects and they perform perfectly every single time. I started using PCL’s products in 2000, when

I built my Hummer Limousine (see photo) out a 2002 Chevy pickup with the 333-inch wheel base on it. That was the first time I was introduced to PCL, because I had miles of panel blocking to do on that vehicle.” Evans appreciates PCL’s primers because of their versatility and quality. “We use a ton of their #901 (gray primer) and the black primer, #903. What’s great about their #901 primer is that it’s a high build primer. I shoot it out of a 1.9 gun. I can pull the trigger and just blast on a panel and it will fill 36 and 80 grit scratches faster than most other types of primers. It’s actually a polyester product, so it’s just like spreading polyester putty on but with a gun, which allows me to

SHOP & PRODUCT SHOWCASE Huntington Beach Bodyworks Location: Huntington Beach, CA

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Type: Collision Repair & Customization Facility Employees: One

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Combined Production Space: 13,000 square feet

Evans designed and built this stunning 1964 Lincoln Continental using PCL primers and clears on the TV show Autoholics on the Speed Channel

skip steps and spray it as opposed to spreading it.” Uniformity and consistency is vital to the way Evans does his body work. “My approach has never changed over the years and I won’t ever deviate because it works for me,” he said. “Basically, I shape with 36 grit sand paper and then get the 36-grit scratches removed with the 80 grit; then I move onto the 150 grit and then chase the 150 scratches with the 400 grit, either dry or wet. Then I’m ready to apply the PCL sealer which gives me a great foundation to lay down my paint. When I can do it all in one single step, I’m saving time and—as I always say— time is money! “At the end of the day, I’m not going to get any shrinkage or imperfections, and that’s key,” Evans emphasized. “Many of the primers out there right now on the market will cause shrinkage, which means you have to take mil build off of your clear to try and chase the shrinkage out. The shrinkage is like a dry river bed that shows all the imperfections. But PCL’s primers provide a solid platform so it does not move after it dries. It gives me a lot of options depending on the situation. In the end PCL’s primers can allow me to skip a few steps if I want to. By switching a step and filling those scratches in, I can complete the job faster. On average, it can save me 50% in time when I go that way, so it’s a big deal, especially when I’m super busy. Sometimes it can even save me up to 75% of the time I’d spend otherwise.

“When I do a hot rod and I’m in a hurry, I will take each panel and instead of just applying Bondo™ I can get everything in the ballpark with a heavy mil build. That way, I can then work with the product without putting Bondo™ on, or it allows me to work with the product and get my panels true. Because I can apply as much as a gallon on one panel and by the time I come back and hit it with 80, 150 and 400 grit, I’ve already removed 60% of the product while getting the build I need. That means I don’t have to put more Bondo™ on it. Anyone who does this type of work knows that it takes time to mix Bondo™ up and spread it.” Evans also appreciates the PCL’s customer support as well. “Our PCL field rep is Paul Casanova and he’s great. They’ve been sponsoring me for the past six years and I used their products on the reality show Car Warriors (see Corvette photo) where we were able to complete cars within 72 hours with a high quality, long-lasting paint job. Without PCL’s products, we never could have been able to do what we did on that show. And we probably wouldn’t have been able to be so creative and the quality would have suffered if we didn’t have the PCL primers and sealers when we did our Lincoln Continental (see photo) in just eight days on Autoholics. It’s a big part of my process and it helps me to do things in a speedy time. I tell people that I am a “mutt painter” because I never commit to one paint manufacturer or paint line, but I have stuck with PCL from day one!”

The first time he ever used PCL’s products, Rich Evans built a Hummer Limousine out of a 2002 Chevy pickup with a 333-inch wheel base.

Evans and his crew used PCL products while building this amazing 1976 Corvette on the T.V. car building competition Car Warriors

PCL Automotive Phone: (800) 752-1566 x 260 email: rlaguna@ellispaint.com website: www.pclautomotive.com

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 11


The Community-Focused Body Shop

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

Reaching Beyond Traditional Advertising to Engage Your Customers with Domenico Nigro

We know that customers only use a as hosting an Alex’s lemonade stand body shop once every seven years on event (see www.alexslemonade.org) average. For this reason, marketing to outside your shop, or holding a toy withthan Janet Cheney the end user is tougher most other drive, or something as complex as a industries. To make matters worse, the benefit event. When you figure out insurance company is engaged in alwhat sort of involvement level suits most constant dialog with your cusyour needs and resources, you can tomers. This relationship allows them often receive press coverage by sendto direct (steer) customers towards ing out a press release and most charbody shops that succumb to their deities will assist with getting the word with Frank Sherosky mands and play by their rules. What out. One example we found very successful was the our “Choose your Charity” program, where customers were given a choice of five different charities that they could donate half of commercials do your customers see their deductible to. Each of the charion TV? Insurance companies domities promoted the program (and our nate the airwaves but they aren’t the shop) themselves because they diones fixing your car and they don’t rectly benefit from its success. necessarily have the shop owners’ best Community involvement: Hold interest in mind. If they did, they a class, sponsor a local event, volunwould always use the specifications teer for local non-profits. Community and recommendations of the car manInvolvement is a great way to reach ufacturer to use original parts when your potential customers in a more innecessary, and not using aftermarket or used parts that are not recommended and take much more to install. So how do we create our own relationships with the customers? Traditional advertising can miss the mark, and the message may be lost by the time they need your services. There are other sources of information for traditional marketing and advertising techniques, such as radio, tv and print media. I want to to discuss other ways you can make timate and effective setting. We’ve a lasting impression when reaching partnered with the local hospital and potential customers that may only Safe Kids to serve as a Car Seat Inneed your services once or twice a spection center and for a few hours decade. each month we inspect and install car We’re fighting an uphill battle. seats for free. This allows us time to How do we connect with new cus- engage the customer and show that we tomers when most of them let the in- are dedicated to the community. surance company tell them where to Partner with local schools, spontake their car? There are several meth- sor a little league team, or get inods for making an impression and get- volved with your Local Boy Scouts ting your message out, here a few that chapter to offer a badge. Take part in a I’ve used successfully. spring cleaning or beautification projGet involved with local and na- ect and ask your employees to voluntional charities. We’ve done several teer too. campaigns that benefit local and naWord of mouth: This can be tional charities. This is a great way to one of your best sources and it’s separate your shop from the competi- “free.” Of course, nothing is really www.autobodynews.com tors and creates loyalty and awareness free, and if you want to boost word CHECK IT there OUT!is effort infor your shop. This can be as simple of mouth referrals

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volved. Car accidents are one of the worst things that can happen to a customer. How can shop owners help to turn that negative experience into a positive one? Make sure every interaction with your customers is a positive one. From the moment they pick up the phone or walk in the door, you’re creating brand impressions that could determine whether or not they would refer you others. Say “thank you,” educate them about the process, and never speak down to your customers. This may sound like common sense but you’d be surprised how many shops fail to follow these simple rules and loose referrals as a consequence. Take pride in your work and give them the best possible service you can offer. The effort will be appreciated and the customer is more likely to tell others about their positive experience. Ask for testimonials: If they seem satisfied, don’t be afraid to ask for a testimonial. You can even offer a small incentive, such as a branded air freshener, for their time. Set up a computer at the office dedicated for online review sites so it’s easy for your customers to leave a review or testimonial while they’re still in your shop. Keep in touch: Hopefully you’re already gathering customer emails. Keep a list and send out monthly newsletters with coupons, tips and news. This helps you stay on their radar so that when you are needed, it’s easier for them to remember you as their first phone call when they get in an accident. Offer referral rewards: You’re not going to go out of business by offering a referral reward. Many shop owners feel like this is an unnecessary incentive but there’s no other marketing initiative that will guarantee you a better return on your investment. You can pre-print testimonial cards.

Take advantage of your storefront traffic: Use your building’s storefront and curbside space. You can tastefully add ground displays or banners that alert street traffic to specific deals or services you want to feature. You can do it without being overwhelming or unsightly. The insurance companies have billboards, after all, and this is one way to compete in that market without the costs of billboard ad campaigns. Education: An educated consumer is your best customer. Most consumers are shopping for price and don’t know how to look for true value in a shop’s products and services. Do they know the difference between value and price? It’s your job to educate them on the difference and then explain how you shop provides that value. Teach them what to look for in an auto body shop, how the repair process works, and how claims are handled. This can be achieved through a pamphlet, a video on your website, poster, floor displays, or face to face education. They should understand safety requirements and what they should expect from quality repairs and parts. Educating the adjuster: Educate the adjuster on your processes. Tell them what you’re doing and why you’re performing certain operations on a vehicle. Go over the Ppages logic and give proper documentation to the adjuster. If you can prove that what you’re doing is right, and educate them, you can make more money on existing claims by getting properly paid for the services you provide. This is an easy way to increase your revenue without any increase in the number of jobs your shop sees and it’s the first step in leveling the playing field between your shop and the insurance companies. That should be your overall goal.

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Pennsylvania’s Keenan Auto Body’s Jingle Contest by Chasidy Rae Sisk

In a press release on February 17, Mike LeVasseur, President and COO of Keenan Auto Body, announced that the company would turn to their Facebook community of nearly 2400 to aid them

in coming up with a jingle for part of their advertising campaign. Though a production company has produced Keenan’s commercials for the past six years, Marketing Director Craig Camacho said “we felt this year was the year of change,” noting “we know there is a lot of talent out there” in reference to their large Facebook community. Keenan’s jingle contest began on Thursday, February 16 and runs through Tuesday, May 1. Winners will

be announced on Monday, May 21. The grand prize winner will receive $1500 cash as well as the notoriety of having their jingle played on the radio and online, while the second place winner will gain $500 cash. On March 6, Keenan decided to add a third prize, “Fan Favorite,” where eligible entries will be uploaded to YouTube where everyone can vote, and the winner will receive a $300 gift certificate to any of Keenan’s locations. Since announcing the contest, Keenan’s Facebook page has increased by over 200 “likes,” up to 2658 as of March 28. They have received fourteen legitimate entries for the contest so far. According to Craig, “we have received several really good jingles, ranging from ‘Where Do Broken Cars Go,’ (a parody of Whitney Houston’s ‘Where Do Broken Hearts Go’), to a country western to one-line catchy jingles. We are having a blast listening to them and can’t wait until we start judging for the best.” In order to boost awareness of the

contest, Mike and Craig recorded a promotional commercial at 94.1 WIP studios which is now running on local radio stations, including 94.1 WIP and 93.3 WMMR, two of the area’s largest media outlets. LeVasseur hopes the commercial will “reach a broader audience and spark more entries.” In their commercial, after Craig sings two potential jingles, Mike advises him to stick to marketing before announcing

and describing the jingle contest. The 60-second promo can be found at www.youtube.com/watch?v=H2De_9I dLfk where it has received 135 views currently. Keenan announced an additional,

smaller contest on their Facebook page on March 27, asking fans to describe their current jingle promotion in fifty words or less. The winner, who will be announced Friday, March 30 at noon, will receive four tickets to the Phillies vs. Marlins game on April 12 as well as a parking pass. The jingle contest will be judged by a panel made up of Keenan representatives who will judge entries on a 1-20 point scale for melody, composition, originality, lyrics and creativity. Rules and disclaimers can be found at www.keenanautobody.com. Submissions can be emailed to keenanautobodyjinglecontest@gmail.com (if less than 10mg), uploaded to Keenan’s YouTube page, or physically mailed to their corporate office via disk or flashdrive: Keenan Auto Body, Inc., 557-A East Baltimore Pike, Clifton Heights, PA 19018. Audio or video files are accepted, but files cannot exceed sixty seconds in length. Keenan Auto Body has eleven centers in Southeastern Pennsylvania and Northern Delaware. They have been in business for sixty years.

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Keenan Auto Body Opens its Avondale, PA, Location

Keenan Auto Body will hold the grand opening of its Avondale, Pa., body shop from 11 a.m. to 7 p.m. May 3. Keenan has 10 repair facilities located throughout southeastern Pennsylvania and Delaware. The grand opening will include food, raffle prizes, a live radio broadcast and a shop tour. Former New York Giant and Philadelphia Eagle and two-time Super Bowl winner Sean Landeta will be signing autographs from noon to 2 p.m. The 10,000-square-foot Avondale facility has been in full production since November 2011. It has exceeded its sales goals to date, according to Craig Camacho, marketing director for the company. The Avondale facility was formerly known as Bavarian Collision until Keenan acquired it in 2011. Founded in 1952 by Joseph T. Keenan and acquired by his son Donald in 1979, the family-owned collision center is the largest non-dealer multi-shop operator in southeast Pennsylvania and Delaware. For more information visit www.KeenanAutoBody.com or contact Camacho at 610-587- 3187.

Shop Owner Tim Peotter, New Providence, NJ, Passes Away Timothy Peotter, owner of Peotter’s Autobody in New Providence, passed away peacefully on April 12 after battling with cancer. Tim was born October 23, 1956, the son of Jean Peotter and the late Jim Peotter. He is survived by his devoted wife of 28 years, Joanne Charpentier Peotter. They have three children, Renee, Larry and Nicole. Together Tim and Joanne established Peotter’s Autobody in Summit, which the family will continue as part of his legacy. Tim is also survived by three siblings, Russell Peotter and his wife Jennifer, Mark Peotter and his wife Tiffany, Phylis Mattheson and her husband John; as well as seven nieces and nephews. Tim loved life and lived it to the fullest. His range of hobbies was abundant and his work ethic unsurpassed. He seldom slowed down, not even at the end. He achieved many milestones and dreams. Tim leaves this earth with no regret. His only wish for everyone is that each of us “pay it forward,” by being kind to others and appreciating those we love. The family asks that any photos or memories you would like to share to their home in New Providence.

Cedar Grove, NJ, Shop Foils Theft Attempt Inside Office

A criminal warrant was issued forManzella Clemmons, 57, whose last known address is Rosa Parks Boulevard in Paterson, after detectives identified him as the suspect in an attempted theft that occurred at Budd’s Auto Body in Cedar Grove on March 19. The business’ shop manager had entered the office area and observed a male, subsequently identified as Clemmons, crouching behind a desk in the rear of the office. When confronted, Clemmons claimed that he dropped his cell phone and then left the business getting into a waiting vehicle. The manager subsequently discovered that the suspect had taken an envelope containing $300 from a desk, but had dropped it on the floor after being discovered. Detectives were able to identify Clemmons with the assistance images captured by the business’ surveillance equipment. Clemmons, whose current location is unknown, was entered in the National Crime Information Center (NCIC) System as a wanted person. Det. Sgt. John Kennedy is the lead investigator in the investigation.

Daniel Osley, Long Time Body Tech, Passes Away

Daniel Osley, 86, of St. Johnsville, formerly of Fort Plain, NY, passed away peacefully on April 12, 2012, at the St. Johnsville Nursing and Rehabilitation Facility. Dan was born in Little Falls on May 29, 1925, son of the late Stefan and Elizabeth E. Vdoviak Osley. He was a U.S. Army combat veteran of World War II and served in General George Patton’s Army in the battles of Ardennes, Central Europe and Rhineland. After the war, he married Josephine Labunski. They were married 63 years. Dan worked for many area car dealerships as an auto body repairman and mechanic and retired due to health reasons. Dan is survived by his loving wife, Josephine Labunski Osley, of Fort Plain; one son, Robert Olsey, of Fort Plain; two grandchildren, Joseph Osley, of Fort Plain, and Janice (Burton) Dillenbeck, of Rochester; and two great-grandsons, Aidan and Nathan Dillenbeck, also of Rochester.

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CAPA Adds SF Insurance Executive to Board

The Certified Automotive Parts Association has elected Carol Waldron of State Farm Mutual Insurance Company to CAPA’s Board. “CAPA is fortunate to have Carol join us in our effort to ensure truly high quality alternative parts are readily available to the market. Carol’s extensive background contributes to the broad range of industry expertise and organizations who’ve joined together on CAPA’s board to keep repairs affordable, cars repairable, and protect consumers from poor quality,” said Jack Gillis, Executive Director of the non-profit association. “State Farm, and many other diverse organizations, joining together in CAPA, provide a unique insight into issues facing the aftermarket parts industry and make an important contribution to CAPA’s continuing success. We look forward to working with Carol.” CAPA’s Board includes: Bill Brower, Liberty Mutual Insurance; Bill Daly, Allstate Insurance; Bill DeGrocco, GEICO; Jack Gillis, CAPA; John Palumbo, PartsChannel, Inc.; Clark Plucinski, Boyd’s Group /Gerber; Ed Salamy, K.S.I. Trading Corp.; Ben Steinman, Ben’s Auto Body; Carol Waldron, State Farm.

Registration for SEMA 2012 is Now Open for Attendees

The market for hybrids, plug-in hybrids and electric vehicles is perking up significantly, with much of the credit going to the high price of gas. In the first three months of 2012, U.S. sales of hybrids, plug-in hybrids and EVs shot up 44 percent from the year-ago quarter, to 113,457. March sales of those vehicles were double those of January. It was a breakout quarter for sales of vehicles with alternative powertrains, which had been rising at a much slower pace than expected despite waves of fresh entries. The strong performance is a measure of validation for automakers that have persevered despite tepid demand for hybrids and criticism in political circles. Hybrids accounted for the bulk of alternative powertrain sales, 106,207, compared with 7,250 EVs and plug-in hybrids. Better sales of Toyota Prius drove much of the growth as buyers snapped up recently launched models, including a wagon and subcompact. Also providing a lift: launches of General Motors’ mild hybrid technology, dubbed eAssist, on volume models such as the redesigned Chevrolet Malibu, released in February.

Peter Vann Joins Urethane Supply Company Sales Team

Peter Vann, collision repair consultant and trainer, has joined Urethane Supply Company (USC) as the West Coast sales representative. Vann comes to USC with much aftermarket experience, including as a consultant for Caliber Collision Centers and a technical trainer for VeriFacts Automotive, Cerritos College, 3M, Pro Spot and Car Bench. He was also an estimator supervisor/production manager at a certified BMW collision center and a certified Mercedes-Benz collision center, both in California. Vann is based in Southern California. Beginning May 1, he will be responsible for all states west of the Rocky Mountains. Vann has been trained on USC’s new Nitrogen Welding System. In addition, he has training from I-CAR, Car Bench, Blackhawk Automotive, Chief Automotive Technologies (EZ Liner), Autorobot, Celette (Bench), MercedesBenz of North America, BMW of North America, the American Iron and Steel Institute, the American Welding Institute and Cerritos College. Said USC President Kurt Lammon. “His industry knowledge is exceptional, and he is a solid addition to our sales team.”

Enterprise Elite Service Partner Program Launches

Assured Performance Network and Enterprise Rent-A-Car have introduced the Enterprise Elite Service Partner Program. This program, using the certification services of Assured Performance Network, allows collision repair facilities to take advantage of innovative service tools including Enterprise® Priority Pass, an upgraded level of replacement rental service designed to increase customer satisfaction. Shops enrolling in the program also will receive several communications tools. For example, Enterprise Rent-A-Car’s ARMS® Automotive suite of products streamlines communication between shops and Enterprise. In addition, Customer Status Notification software enables shops to keep consumers informed on the progress of their vehicle repairs. Enrollment in the Enterprise Elite Service Partner program is open to repair businesses that are able to become officially certified by Assured Performance and meet the qualifications to participate in its Certified Collision Care Partner Network. Please visit www.CertifyMyShop.com for more details.

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The smart shops are coming around. They are quickly learning THERE ARE BIG BUCKS IN THIS CUP. There are three systems for billing body and paint materials: one is averaging $33–35 per paint hour and a second is averaging $38–44 per paint hour, while PaintEx accounts are seeing $50–70 per paint hour.

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18 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

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Shop Showcase

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

CollisionMax Offers Maximum Results in Collision Repairs with Chasidy Rae Sisk

In addition to providing over thirtyfive years of collision industry experience, CollisionMax has eleven locations, seven in Southern New Jersey and four in Southeastern Pennsylvania. Yet, they do not credit their convenient locations or years of pro-

Ave in Philadelphia. When they added East Coast Fleet Service in 1981, they asked cousin, Joe Tornetta, and Wayne Smolda, Claudia’s husband, to join the partnership. James Tornetta was added in 1985 in order to take over marketing and sales responsibilities. They ac-

cialists. Their equipment includes a Chief S21 frame machine, a Chief Excelerator frame machine, a Continental Uni-Liner frame machine, and a Car-O-Liner, in addition to a Chief Velocity measuring system, two Continental UMS systems, a ProSpot overhead resistance welder, one Electron resistance welder, a Hunter 4wheel alignment rack, and the Mitchell Tech Advisor Program. They also use a Spraybake double-prep deck, one Spraybake booth and one Accudraft booth. The SuperCenter repairs an average of 221 cars monthly. In 2003, CollisionMax decided to expand operations by launching Glass-Max Auto and Truck Glass Centers after recognizing a need for delivering convenient glass service to the market they serve. When Chief Operating Officer Joseph Tornetta retired in 2005, Pat Beavers was promoted to the position. An additional

Mainstream Media

fessional experience for their success. Their formula for success is proudly displayed on the company’s website: “We’re collision experts, but we never forget our most important job is keeping customers happy and informed.” CollisionMax prides itself on offering friendly, courteous service, in addition to providing competitive, honest estimates and unparalleled craftsmanship. Because a large portion of their business comes from repeat customers, they always strive to meet or exceed expectations, ensuring customers are informed and updated throughout the repair process. They also provide customers with timely repairs and accurate delivery dates, a significant and unique advantage of being a multi-location operation as they can load-level with unlimited production capacity. Though the CollisionMax name was not branded until 1998, its roots began in the 1950s when Claudia Brigidi and her brother Richard worked in their father’s Philadelphia auto body shop where they honed their skills and gained the knowledge that led them to form a business partnership in 1976 with the purchase of a Collex Collision franchise on Grant

quired a shop in Blackwood, NJ in 1987 and another one in Cinnaminson, NJ in 1989. In the mid-1990s, Claudia’s nephew, Frank Brigidi III, joined the partnership, bringing to the table National Collision in Sicklerville, NJ. The first non-family partner was added in 1995 when district manager Pat Beavers was invited into the partnership on his tenth anniversary with the company. From 1997 to 1998, the group added four new locations in Westmont, NJ; Marlton, NJ; Oxford Valley, PA; and Egg Harbor City, NJ. Also in 1998, a branding strategy was developed in order to make more of an impact with consumers and insurance carriers. CSI Holdings was formed to become a consolidator with a brand name, and CollisionMax became their official registered, federally trademarked name. CollisionMax purchased an empty warehouse in Pennsauken, NJ, in November 2001, converting it to a state-of-the-art collision repair center which opened in 2002. The SuperCenter consists of 26,000 square feet and staffs the facility with 30 employees: 7 office staff, 15 body technicians and 8 paint/ detail/maintenance spe-

20 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

shop in Glassboro, NJ was purchased in 2006. In October 2008, CollisionMax acquired its most recent location in Warminster, PA. The 13,000 square foot shop employs 18 individuals: 6 office staff, 8 body techs and 4 paint and detail specialists. Averaging repairs of approximately 156 cars each month, their equipment list includes 2 Chief S21 frame machines, a Chief Velocity measuring system, 2 Accudraft paint booths, an Electron resistance welder, and the Mitchell Tech Advisor Program. One product that CollisionMax technicians have found particularly useful is the squeeze-type resistance welder as it improves productivity and repair appearance while shortening paint prep time. All eleven CollisionMax shops are I-CAR Gold Class and ASE Certified. Shops participate in multiple See CollisionMax, Page 51


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Deep Inventory – Competitive Pricing Genuine Subaru Quality Call Today! 22 MAY 2012 AUTOBODY NEWS | www.autobodynews.com


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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 23


Northeast News

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.

CCRE 2012 Seminar—Taking Back the Collision Repair Industry with Chasidy Rae Sisk

When I first found out I was going to Tony began by saying that this problems that consumers have as a reattend the Coalition for Collision Rewas a good industry when he first sult of repairers’ problems with insurpair Excellence (CCRE) legal seminar with Chasidy Rae began Sisk his career, but collision repair- ance companies and realized that in Philadelphia on March 30th and ers gave it away over the past twenty- consumers have nowhere to obtain in31st, I thought I would need a pillow five years in exchange for systems formation to understand the repair and lots of caffeine, but I could not supposed to make their jobs easier. By have been more wrong. The seminar accepting and following these sysoffered a wealth of intriguing knowltems, such as estimating guides, reedge, much of which I’d never heard pairers have become manipulated by of or even imagined. CCRE represents third-party influence. Repairers’ investment, in both time and money, should yield a profit. Through a planned program of taking John Parese and Erica Eversman confer control of your busiLeft to right: Robert McClallen, William Bensley and Ashly Van Earl ness and realizing process other than the insurance coma whole movement dedicated to rethat the insurance company has no pany or the repairer. Reiterating viving and regaining an industry that place in your business, collision repair Tony’s point about the combination of has been guided by third-party intershops can still make a profit. As Tony the two separate contracts, Erica noted ference for decades. The experienced stressed, “This has to become OUR that in DRP contacts, the insurer may collision repair shop owners and the collision repair industry.” or may not direct business to the relawyers in attendance presented much Discussing how this problem pair facility, yet they act as if the readvice to attendees as well as the opbegan, Tony noted that there has al- pairer has obligations to the insurance portunity for shop owners to ask their ways been two separate contracts: one company while they feel no obligation own, personal questions. I will sumbetween the vehi- to the repairer. marize some highlights of the seminar cle owner and the In the contract between the vehihere with plans to exploring some of insurance com- cle owner and the repairer, the vehicle these topics in greater depth in the pany, and another owner’s obligation is to pay while the near future; however, I highly recombetween the vehirepairer is obligated to provide a qualmend all shop owners to attend cle owner and the ity repair. As oral contracts are diffiCCRE’s next seminar, which they repairer; yet, cult to enforce, Erica recommends plan to hold in six months, in order to somehow, these having a written contract with the veErica Eversman learn first-hand that there are solutions two contracts have hicle owner to protect yourself. In this to the multitude of problems that arise joined each other as collision repair contract, it is important to define your shops now have contracts with insurcustomer, each party’s duties and what in the industry. Because it is your industry, and as CCRE President Tony ance companies through DRPs. Tony parts will be used. The specifics of Lombardozzi emphasized “no one asked: why do insurance companies these definitions vary based on indielse is going to take this industry back assume they have a say in the revidual state laws, but a valid contract except the repair shop owners thempairer’s contract with the vehicle makes it easier for the repairer to obselves.” owner while the repairer cannot intertain payment for the work they do. The event, hosted by the Pennsylvania Collision Trade Guild (PCTG), was held at the Airport Hilton in Philadelphia, PA. One hundred and ten people were in attendance from varying fields, including many lawyers who specialize in this field. Many of the attendees were nonCCRE members, and twenty-five From left, Rick Dotterer, Steve Behrendt, Truman Fancher, Tony Lombardozzi, and Mike Parker states were represented with people coming from as far away as Texas, fere with the insurer’s contract with Erica also explained that insurNew Mexico and Nevada. Tony Lomthe customer? ance policies give insurance compabardozzi moderated the majority of Erica Eversman, Ohio attorney nies three options: replace the vehicle, the seminar with presentations being and General Council for Vehicle Inpay for the loss in money, or elect to given by attorneys Erica Eversman formation Services, became involved repair. Insurance companies rarely of OH, John Parese of CT and with the issues in the collision repair elect to repair because it makes them Robert McClallen of VT. industry when she learned about the equally responsible as the shop for the

Shop Showcase

Mainstream Media

24 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

quality of the repairs; however, through DRPs, insurance companies are able to assume control of the repair without accepting liability. Erica went on to discuss several legal cases and examples of the insurance companies choosing inferior shops to save money. Insurance companies write estimates to verify there is damage and to find out how much money to reserve for the claim, but these estimates are written for internal purposes only and mean nothing because insurers do not fix cars—they just pay for repairs. Erica noted that contracts do not override consumer protection laws, but since few consumers know their rights or realize they are being taken advantage of, insurance companies often ignore consumer protection laws or try to pressure collision repair facilities to do so. Before introducing the next segment, Steve Behrendt of CCRE and PCTG noted that shops should have a solid contract customized for how they do business, and he revealed a sign that hangs in his shop specifying that insurance company paperwork, such as estimates, are used for informational purposes only and do Steve Behrendt not determine the methodology, extent or cost of repairs. Continuing her presentation, Erica agreed that the insurer’s estimate is for informational purposes only, emphasizing that the insurer has no place in your business. Spelling this out in the contract allows repair shops to control their relationship with the customer, keeping the shop in the role of a professional and the insurer in their proper role. She also suggests addressing replevin in the contract, granting shops a lien that allows them to retain possession of the vehicle until they are paid for their work. One section of her sample contract also grants the shop the right to recover their lost profit if the insurance company steers the customer to a different shop. See CCRE Seminar, Page 30


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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 25


Dallas-Ft Worth Storms Take out 50,000 Autos and Damage 30,000 Homes Insurers are finding out the recent severe weather in Texas took a heavy toll on vehicles. The tornadoes that ripped through Arlington, Lancaster and other parts of North Texas on April 3 left behind a load of business for roofers, body shops and tree services, according to Chad Hemenway, writing in Property Casualty360.com.

Collision technician Scot Barnfield replaces a hail-damaged roof on a Nissan at the Caliber Collision Center in Keller on April 19. Photo Credit: Star-Telegram/Max Faulkner

Repair centers in Lewisville, Corinth, Duncanville and Arlington have seen the most traffic, and Caliber is offering customers the option of having work done faster at less-busy Caliber centers in the area, Dillender said. “We’re able to leverage our scale and size,” he said. Damage estimates from the storms continue to grow. Mark Hanna, spokesman for the Insurance Council of Texas, said Friday that estimated insured losses from the storms have increased to $550 million from earlier estimates of $500 million. At least 50,000 autos and nearly 30,000 homes were damaged, up from earlier estimates of 45,000 autos and

Caliber Collision Centers, which operates 103 centers, including 16 in North Texas, has scheduled repairs on hundreds of cars damaged in the storm, said Todd Dillender, vice president of operations for North Texas.

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hicle, Caliber will transport it to and from that center, Dillender said. All the work, however, stays within the region, he said. State Farm has logged 8,610 auto claims, and 1,221 vehicles can’t be driven. Most automobiles that cannot be driven suffered damage from the tornadoes, says spokesman Gary Stephenson. Other autos show significant damage from hail—some the size of tennis balls—which fell during the April 3 severe-weather outbreak in the Dallas-Fort Worth area. Nicole Alley, spokeswoman for USAA, says the Texas-based insurer is also seeing many auto claims. The insurer has received about 3,800 total claims. Jerry Davies, spokesman for Farmers Insurance, says the storm system was a “huge hail event.” Farmers has received nearly 5,000 claims, and 3,120 are auto claims. The insurer sent its mobileclaims-center bus toArlington,Texas. The bus is equipped with communications equipment, laptops and

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25,000 homes, Hanna said. “I would not doubt that it is going to hit $600 million,” Hanna said. The storms have drawn contractors from outside the region, and Hanna stressed that consumers should deal only with firms whose reputations they can verify. “The majority [of outside contractors] may be the nicest people in the world,” Hanna said. “But there are others who are going to take advantage of people, who are going to get up on a roof that doesn’t need work, who create damage just to get the job.” At Caliber, Dillender estimated that it might take several months to work through the backlog of hail damage. “It’s a little early to tell,” he said on April 19. Insurance-claims activity is still fluid, “and I think it’s going to carry on for a couple more months.” Customers in Coppell were hit hardest by the storms, he said. Damage from hail and flying debris was the most common problem, he said. If customers at a busy center choose to have another Caliber facility repair their ve-

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MN Court Awards $157K in Progressive Ins. Underpays

GlassBYTES has reported that the Minnesota Court of Appeals upheld a decision that gave Rapid Glass, an automotive glass repair and replacement company, $157,851.46 for 580 underpaid and unpaid claims from Progressive Insurance. The court ruled that the glass company’s charges were fair, reasonable and competitive. Rick Rosar, president of Rapid Glass, told GlassBYTES. “The windshield has become an integral part of the vehicle’s safety system. It is not a place to cut corners when a windshield needs to be replaced…” The court said the dispute was whether Progressive satisfied the contract by paying “the amount necessary to repair damaged property to its pre-loss condition.” “[Progressive] was not required to interpret the term ‘necessary’ because the contract provided the definition…,” the court wrote in its decision. “Under the terms of the contract, ‘necessary’ means ‘a competitive price that is fair and reasonable within the local industry at large.’”

AAIA and ASE Recognize World Class Technicians

Of the more than 759,000 automotive technicians working in the United States, 20 outstanding individuals have qualified for the prestigious 2012 World Class Technician Award. The Automotive Aftermarket Industry Association (AAIA) and National Institute for Automotive Service Excellence (ASE) work together to recognize these professional technicians who have tested and obtained ASE certification in 22 specialty areas during the 2011 test administrated by ASE. “The AAIA World Class Technician Award is for automotive diagnostic and repair professionals what the Super Bowl is for professional football players or what the Stanley Cup is for hockey players,” said Kathleen Schmatz, AAIA president and CEO. “Just imagine the knowledge and skills needed by a technician to pass 22 ASE tests. These folks are truly the best of the best and we are proud to be associated with them through our annual recognition in conjunction with ASE.” “This recognition partnership between AAIA and ASE goes back 26 years and represents the most significant achievement award available to our ASE-certified professionals,” said Tim Zilke, ASE president and CEO.

Women’s Industry Network Adds New Boardmembers

The Women’s Industry Network (WIN) welcomes Jessica Voss-Kehl, Senior Product Development Supervisor, 3M and Melissa Perez, District Sales Manager, FinishMaster Inc. as the newest Directors to its Board. The WIN Board consists of various industry segments including but not limited to: shop owners, jobbers, suppliers, consultants, paint companies and insurance companies. As an all volunteer organization, WIN Board members, serving 3 year terms, work together to guide the organization as well as foster an environment that encourages the education, recruitment, retention and networking of women in the collision repair industry. New board members will be introduced and officially welcomed by seated Directors and WIN members-at-large at the annual WIN Educational Conference, Be The Change, being held May 6–8 at the Intercontinental Buckhead in Atlanta, GA. To learn more about WIN, please visit www.WomensIndustryNetwork.org or for information on becoming a member, please contact Denise Caspersen at denisec@asashop.org.

CARSTAR & Mitchell Inc. Join Efforts on Store Management

CARSTAR Auto Body Repair Experts has developed a proprietary store management system that integrates its technology solutions with the Mitchell RepairCenter Shop Workspace to deliver technology tools to its store owners. The system is the culmination of significant technical investments to realize the vision of a tightly integrated system that will significantly improve CARSTAR store performance, the company said. It enables the capture, processing and delivery of key data elements and metrics to help stores better manage their key performance indicators. The system also will provide the information required to forge strategic industry partnerships, CARSTAR said. Reporting to support both insurance relationships and purchasing will benefit user shops.” The information gathered by using the CARSTAR Solution Software and the reports available are invaluable to our store and to the entire CARSTAR network in helping analyze our numbers and in selling to our local and national markets,” said Jan Combs, of Auto Body Specialists CARSTAR in Billings, Montana.

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 27


Collision Repair Industry v. Sacramento at the Annual California Legislation Day body shops, because it will impact the automotive crash parts industry in a Imagine the film “Mr. Smith Goes to significant way,” Molodanof said. “It Washington” but with the title: “Body eliminates current law and shifts all of the warranty responsibility of aftermarket crash parts to the body shops, third party vendors and suppliers—and that’s why we oppose it.” Legislative Day speakers included John Wallauch, the new Chief of the Bureau of Automotive Repair (see related story this CAA members Shawn Said (left) and Randy Greenbelt met with issue); Assistant BAR Chief Senator Leland Yee (right) in his office at the State Capitol to Doug Ballati and BAR discuss SB1460 and the organization’s opposition to it Deputy Chief Pat Dorais, Shop Owners Goe to Sacramento.” all of which discussed upcoming changes ASCCA/CAA’s Joint Legislative Day in the state’s Smog Check program. State on April 18 at the State Capitol did not politicians who spoke to the ASCCA/ have the same cast as the 1939 classic CAA assemblage included Senator Juan film, but the storyline seems familiar: Vargas, 40th Senate District and Chair of The leading mechanical and collision the Senate Banking and Financial Instirepairers in the state convene to take tutions Committee; Assembly Member on the powers-that-be and provide Katcho Achadjian, Vice Chair of the feedback about proposed legislation Assembly Banking and Finance Compotentially impacting their businesses. mittee and a member of the Higher Edu“This is the one opportunity cation Committee; and Assembly every year when we can meet with our Member Curt Hagman, the Assistant political representatives en masse and Republican Floor Leader and Vice Chair get our message out there,” ASCCA of the Assembly Insurance Committee. President Tracy Renee said. During the entire day, “We can influence these bills be- ASCCA/CAA members visited their fore they become laws and provide senators and assembly members to valuable feedback for our key deci- share their views and concerns about sion makers. Most importantly, we the bills most affecting their respeccan provide them with a look into how tive industries. But before members we run our businesses and all of the were to meet with their political repfactors that can affect us and our resentatives, they were briefed by livelihoods.” Molodanof about the proper protocol The hottest potato on the table at to be used while encountering politithis year’s Legislative Day for the col- cians or their representatives. lision industry was Senate Bill 1460, “The number one thing to reknown as the Automotive Repair Re- member is don’t tell your senator, for placement Parts Bill, introduced by instance, that you’re a taxpayer,” he Senator Leland Yee. said. “They’ve heard it so many On April 16, the California Sen- times it may just annoy them. Also, ate Business, Professions, and Eco- speak clearly and don’t chit-chat. nomic Development Committee held Get through your presentation suca hearing to consider the bill, and at cinctly and be prepared.” Other dos that time several amendments were and don’ts about how to lobby in made to it. In essence, SB1460 would California were explained in a bookcreate a new legal presumption that all let provided by Molodanof. Some of certified crash parts will be deemed these include things such as don’t sufficient to return a vehicle to its pre- complain; mislead anyone or most loss condition. The CAA opposes the importantly—never threaten or anbill, because it asks more questions tagonize a legislator of their staff! than provides answers, according to With scheduled appointments Jack Molodanof, who represents both throughout the Capitol’s offices all the ASCCA and CAA as its legal ad- day long, ASCCA/CAA members asvocate. sembled into small groups to cover “This is the big one right now for as much territory as possible. One by Ed Attanasio

28 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

group of CAA members, led by Dave Mello met with Senator Leland Yee to discuss SB1460. Although Yee seemed open to the dialog, one of his assistants was less than receptive to the CAA members’ suggested changes to the bill, according to Mello. “We received some pushback— more than I’ve ever encountered in 20 years doing this,” Mello said. “But this is an important bill. We obviously oppose it for a wide range of reasons and the California Department of Insurance (CDI) also opposes it because they said that SB1460 obfuscates a rulemaking process already underway on this matter at CDI to update and improve existing law and, at its worst, appears to reverse a long-standing law that has served to protect consumers from defective or inferior aftermarket parts for almost 20 years.’” The CAA recently made a statement outlining their opposition to the bill. “The CAA supports improving the quality, safety and fit of non-OEM crash parts for the benefit of consumers and body repair shops,” CAA

Executive Director David McClune wrote in a letter to Senator Yee. “Our members use non-OEM parts regularly in the repair of vehicles. The quality of non-OEM crash parts has improved over the last 10 or 15 years, but is still inconsistent. Sometimes non-OEM parts fit and perform and sometimes they don’t. Unfortunately, SB1460 takes the wrong approach to addressing issues surrounding nonOEM crash parts. This bill eliminates current law (CCR section 2695.8 (g)), creates new crash part certification standards and requirements, but fails to designate a consumer protection agency to regulate, enforce and oversee this new program. Also, it shifts all insurer warranty responsibility of non-OEM crash parts to repair shops and third party suppliers. And most importantly, the bill creates a ‘new legal presumption’ that all certified crash parts are presumed sufficient to return the vehicle to its pre-loss condition, even though the non-OEM certified crash parts may not fit properly or is defective.” See California Legislation Day, Page 36


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Continued from Page 24

CCRE Seminar

Turning the discussion to parts, Erica insisted that shops should never offer a warranty on parts, especially aftermarket parts, but they should warrant the quality of their repairs. While insurance companies can guarantee the work of a DRP shop, this means assuming liability. They usually offer warranties on replacement parts but not on workmanship, unless specifically stated. Noting that warranties are Truman Fancher like insurance policies in that they have more exclusions than coverage, Erica stressed that manufacturers’ warranties will often be void if aftermarket parts are used, yet many insurance companies require shops to use these parts in their DRP contracts. She also pointed out that insurance companies are great at propaganda; many insurance ads create the impression that insurers are involved in the repair, and they focus on magical restorations. In the Question and Answer section of her presentation, Erica noted that insurers only fear bad press and litigation as it presents unknown and unknowable costs. While other businesses are forced to comply with consumer protection laws, insurance companies are generally exempt and are only investigated if there is proof that their actions are common practice. John Parese Esq., of CT presented next in regards to tort reform. Tort requires those responsible for harming others to compensate their victims, and the classical purpose of tort is to provide full compensation for proved harm. Tort reform proposes changes to reduce tort litigation on damages by setting procedural limits on the ability to file claims and capping the awards of damages, among other things. Advocates of tort reform include automobile manufacturers and insurance companies, in addition to the tobacco, chemical and pharmaceutical industries. John then proceeded to show clips from “Hot Coffee,” a documentary about Stella Liebeck’s lawsuit against McDonald’s when she spilled coffee in her lap. These clips show a

different side to the case than what was seen in the media, validating this seemingly frivolous lawsuit. John stresses “If you don’t even know the basic minimal standard that you need to employ and then you harm someone, the consequences can be very significant. John noted that these same tactics are being used to change the collision repair industry as insurance companies come out on top through public relations. Some of their methods are DRPs, insurance involvement in setting repair guidelines, misleading commercials and legislative “reforms” to allow more steering and greater control over repairs. He asked “does it feel like there’s an ever-encroaching insurer presence changing fundamental ways of doing business, relentlessly grabbing for more and more of your business, in part through a perpetual public relations and legislative campaign of distorted information?” Continuing the presentation, John explained that consumers are misled by false perceptions that insurance companies fix cars and by propaganda reinforced by uninformed courts, legislators and state officials. They are also given false inforTony Lombardozzi mation regarding warranties, delays, quality, rentals and trust. Yet, most consumers do not even know they have been harmed! After watching several insurance company ads that show magical repairs and stress that the insurance company repairs vehicles, the audience erupted in applause to see an anti-steering commercial. The dissemination of this type of information is one way that the collision repair industry can fight back, through recognizing the problem and playing the same game of public relations. Collision repair shops’ goals should be to get the insurer out of the repair process, remember who the customer is and use a well-reasoned strategy of informing. Make things about the process, not the money. SCRS Executive Director Aaron Schulenburg then gave a brief but informative report on information they had received regarding the new State Farm parts bidding program (see related story this issue) and the potential impact the process could have on repairer processes and profits.

30 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Attorney Robert McClallen of VT then began discussing assignment of proceeds. This document is useful as it allows the repairer to effectively step into the consumer’s shoes in order to sue the insurance company and get paid for their work. By signing an assignment of proceeds, the customer gives the collision repair shop

documentation will help shops get paid which is their right. The forms will get a shop halfway there, but you have to truly believe that you deserve to get paid for your work. On Saturday afternoon, a panel of lawyers were brought to the front of the room to answer attendees’ specific questions. The panel consisted of Joe

Left to right: Joe Talarico, A. Brent Geohagan, John Parese and Erica Eversman gave legal advice

the right to force the issue and receive payment. In creating an assignment of proceeds for your shop, it is important to clarify and specify exactly which rights are being assigned. Erica stresses that the wording of the document must be correct because shops will not have the right to sue if it only grants them rights to proceeds; it must also grant the right to act as the consumer in order to obtain payment. On Saturday morning, the seminar resumed with a presentation by Robert McClallen and Mike Parker of CCRE as they discussed how Mike was able to use his assignment of proceeds to successfully sue an insurance company for repeated short pays. During the trial, Mike stressed that he felt like he was a “co-conspirator to defraud consumers” when questioned about why he asked to be taken off direct repair programs. Rob was able to prove the insurance company practiced steering against Mike as well. In his closing argument during the trial, Rob stressed that the insurance companies have no legal way to do this. “They’re just doing it because they’re big and they think they can.” Rob consolidated Mike’s 38 claims, all firstparty claims because of short pay, and he won every single case. Mike emphasized the importance of making sure the customer knows exactly what they are signing so that, in a trial, the insurance company cannot claim customers were coerced or unaware of what rights they were assigning. He also makes sure to explain what aftermarket parts are before using them in his repairs, and most customers refuse aftermarket parts, even when their insurance companies force them to pay the difference. Rob pointed out that the CCRE seminar is all about independence. Collision repair shops do not work for insurance companies, and

Talarico of NY, A. Brent Geohagan of FL, John Parese of CT, Erica Eversman of OH, Robert McClallen of VT, William Bensley of PA, and Ashly Van Earl of LA. The panel answered many questions from the audience pertaining to contracts, writs of replevin, mitigating damages and so forth. Several key points were made and reiterated during this session: ● Because shops are the consumers’ only advocate, it is a conflict of interest for a shop to have a contract with the insurance company. ● Though collision repair facilities do not work for insurance companies, insurance companies have completely bought into the mentality that they do. This allows shop the opportunity to use this incorrect belief to their advantage. ● The insurer’s estimate is a hypothetical, educated guess that can be used as a guideline, but the repairer’s invoice represents the cost of the repair and is the final answer. ● Class actions do impact insurance companies. If every shop reports their loss through a class action or through a credit reporting agency, the total amount will show the insurer’s debt to repairers. When the seminar wrapped up, attendees seemed reluctant to leave, but everyone walked away with a vast amount of new information and ideas for how to run their collision repair facilities independently. As Tony Lombardozzi stressed repeatedly throughout this seminar, they learned that “there is a better way to do business.”

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 33


Service, Diagnostic and Mechanical NEWS

www.autobodynews.com

Autobody News

NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE

NHTSA Proposes Standard for Brake-Throttle Override

The National Highway Traffic Safety Administration (NHTSA) has proposed an update to the Federal Motor Vehicle Safety Standard (FMVSS) No. 124, Accelerator Control Systems, according to the AAIA Capital Report. The proposal would require manufacturers to install a BrakeThrottle Override (BTO) mechanism in all vehicles. BTO systems would trigger the vehicle to stop should both the accelerator and brake pedals be applied at the same time, which would reduce the risk of drivers losing control of their vehicles due to the accelerator pedal sticking or the entire throttle system becoming disconnected. The Alliance of Automobile Manufacturers has been pushing for regulators to take action on this issue for some time, and most manufacturers have already begun outfitting their new models with these systems, according to AAIA.

Chrysler Recalls Some 2012 Town & Country and Dodge Grand Caravans for Machining

Chrysler is recalling certain model year 2012 Town and Country and Dodge Grand Caravan vehicles manufactured from November 15, 2011, through November 21, 2011. Some vehicles may be equipped with right rear hub and bearing assemblies that were not fully machined. This could result in a decrease in durability, which may lead to wheel separation, increasing the risk of a crash. Chrysler will notify owners, and dealers will replace the right rear hub and bearing assembly, free of charge. The safety recall is expected to begin during April 2012. Chrysler recall number is m13. Owners may also contact the national highway traffic safety administration’s vehicle safety hotline at 1-888-327-4236 (tty 1-800-4249153), or go to http://www.Safercar.Gov.

“America’s drivers should feel confident that anytime they get behind the wheel they can easily maintain control of their vehicles – especially in the event of an emergency,” said U.S. Transportation Secretary Ray LaHood. “By updating our safety standards, we’re helping give drivers peace of mind that their brakes will work even if the gas pedal is stuck down while the driver is trying to brake.” This proposal would also modify the current standard by accounting for throttle disconnection during the testing procedure of all vehicles. Comments on the proposal must be submitted to NHTSA by June 15, 2012. Early last year, NASA engineers found no electronic cause for the claims of unintended acceleration levied at Toyota. The report prompted Transportation Secretary Ray LaHood to blame the cases on “pedal misapplication.”

Chrysler Recalls Some 2012 Jeep Patriot And Compasses for Suspected Fuel Tank Flaws

Chrysler is recalling certain model year 2012 Jeep Patriot and Compass vehicles manufactured from December 17, 2011, through January 2, 2012. Some vehicles may have been built with a fuel tank assembly containing a damaged roll-over valve. In the event of an impact or roll-over, fuel leakage could occur, increasing the risk of a fire. Chrysler will notify owners, and dealers will replace the fuel tank, free of charge. The safety recall is expected to begin during June 2012. Chrysler’s recall number is m11. Owners may also contact the national highway traffic safety administration’s vehicle safety hotline at 1-888-327-4236 (tty 1-800-4249153), or go to http://www.Safercar.Gov.

34 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Study Says EVs Cost $1200 Less to Run

Drivers of electric vehicles such as General Motors Co.’s Chevrolet Volt and Nissan Motor Co.’s Leaf may save as much as $1,200 a year compared with operating a new gasoline-powered compact car, scientists studying improved fuel economy found. With gasoline at $3.50 a gallon, drivers who plug cars into electrical outlets would save $750 to $1,200 a year instead of buying gasoline for a new car that gets 27 miles (43 kilometers) a gallon when driving 11,000 miles a year, the Union of Concerned Scientists said in a study released today. “While in this early electric vehicle market these products have higher up-front costs, knowing how much one can save by using electricity instead of gasoline is an important factor for consumers,” the study by the Cambridge, Mass.based group said. Ford Motor Co., maker of a Focus electric car scheduled to go on sale this year, said last month the price will start at $39,995 before a $7,500 U.S. tax credit. Nissan’s Leaf starts at $35,200. The Focus costs more than the $16,500 base price for the gasoline-powered version, Eddie Fernandez, a spokesman for Ford, said in an e-mail. The U.S. National Highway Traffic Safety Administration rates the fuel economy of the Focus SFE, a gasoline-powered model, at 33 mpg for city and highway driving. The electric Focus was certified by the U.S. Environmental Agency to offer the equivalent of 105 mpg. Edmunds.com, an auto-researcher, predicts electric vehicles may reach only 7 percent of U.S. auto sales by 2017 even when consumers take rising gas prices into account. The average U.S. gas price was $3.91 as of Sunday, according to U.S. motorist group AAA. That’s a 19 percent increase so far this year.

May 2012

Automakers Could Face up to $250M in Recall Fines Automakers nationwide are likely clutching their wallets and clenching their teeth after the announcement that recall fines could cost them $250 million instead of the current $17 million fine. A bill affecting the National Highway Traffic Safety Administration (NHTSA) that would raise the maximum fine for not issuing recalls in a timely manner $233 million from its current maximum already passed the Senate and is pending approval in the House of Representatives. Consumers Union, the advocacy group connected to Consumer Reports backing the surface transportation bill, says that the $250 million fine would elevate recalls for automakers to a level of concern instead of being a “cost of doing business.” This isn’t the first push to increase NHTSA’s involvement in automotive recalls. We told you last month about the push to get NHTSA to oversee recalls by car rental companies. Consumers Union also supports that position.

Mopar Division Introduces First In-Vehicle Wireless Charging

After being the first to eliminate heavy, bulky owner manuals from its vehicles, Chrysler Group LLC, through its Mopar® division, will now be the first to eliminate unsightly dangling power cords in its vehicles by offering in-vehicle wireless charging. The company will first make the technology available on the all-new 2013 Dodge Dart that arrives in dealerships in the second quarter of this year. “At Mopar, we look for every single opportunity to make our customers’ lives easier,” said Pietro Gorlier, President and CEO of Mopar, Chrysler Group LLC’s service, parts and customer-care brand. “Our industry-first in-vehicle wireless charging system is the perfect solution for those customers on the go.”


Gonzo’s Toolbox

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

“GI—Think Like a Mechanic!” with Gonzo Weaver

After high school I made the choice more like your typical size for any to join the Marine Corps. It was a big home office or school desk. step for a young guy who really didWell, being the bright, eager n’t have a direction, nor thought about young with Richard Arnold lad I was I had to ask. the future. So, off I went to boot “Sargent, ever hear of a lawncamp. I’ll admit it was tough, it was mower before?” physically demanding and very menNot that I was being smart and tally challenging. But, I did very all… it just struck me as dumb they well, got a lot of good marks and even wouldn’t have a lawnmower to do a couple of special awards. this job. But, then again, why not get One of the biggest surprises was a couple of young recruits to clip the with Ed Attanasio when my platoon was on the “mess lawn with scissors… we’ll work and maintenance” week. I was ascheap. signed to the commandant’s head“Come here soldier, see what ya quarters building. I was to shine all think of this,” he said. the brass, wax the floors, and general In a hall closet just inside the building maintenance. One day the building there were four mowers with Schroeder Sargent in charge said Erica it was time to stacked up on top of each other. They mow the grass. He sent me and two all seemed to be the same brand of other recruits out with scissors to clip mower, but all of them seemed to the lawn in front of the headquarters have been taken apart and there were building. Really, I’m not kid- lots of parts missing. ding…scissors, and I’m not talking “Well, can we use them Sarge?” about a large pair of scissors, no… I asked.

Jobber Journal

“Those things haven’t ran since I’ve been here, but if you think you can get one of them going, it would make us all look good,” the Sargent answered.

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Luckily, the Sargent had a small box of tools stashed away, which just so happened to have all the missing parts stored in it from the various mowers. After some careful maneuvering I managed to get the mowers separated, and within an hour I had three of them running. Talk about a proud bunch of Marines mowing the commandant’s lawn. OohRah! The Sargent got a promotion out of it, and I got a special award for my efforts. Not a bad day in boot camp after all. I really didn’t touch a car for a long time after that. I spent a long time overseas and cars weren’t on the top of the list of things to be concerned about. It wasn’t until I was stationed stateside, and I was leaving my barracks one day when I noticed these two guys sitting on the sidewalk with an entire four barrel carburetor laid out in pieces in front of them. These two jarheads had no clue what they were doing. They were taking apart anything that had a screw on it. Clearly, these guys needed some help. Now, I spent enough time back home working on my grandparent’s farms keeping the machinery running and reading a lot of old service manuals my dad had collected that I had a pretty good idea what I was doing. “Need some help?” I asked. “Sure could use a hand,” one of them said to me. The big challenge was to put all the parts back together on the carburetor without a new gasket kit, and make it work again. I’m telling you,

Shop Strategies for Savings with Walter Danalevich

Inside Insurance with The Insurance Insider

this was one big mess for sure… these guys went as far as taking the small screws out of the butterfly flaps. (Never had much luck getting those things out when they are peened into place myself.) After I had the carburetor back together and installed on the car the last thing was to put the plugs back in and sort out the firing order. Only one problem, they broke one of the spark plugs off while taking them out. “Looks like we’ll have to run it on 7 cylinders for now,” I told them. It took a minute or so for the fuel to get up into the carburetor, but it did run. The exhaust was falling off, it was running pretty rich, but it was running. The guys were ecstatic! They bought the car for 50 bucks from another Marine who was getting shipped out, and the car had been sitting for about a year right there in the parking lot. Just hearing it run was an improvement. We all hopped into the car and drove around the barracks a few times belching smoke, backfiring, and making enough noise to bring the MP’s to the scene. (They thought it was pretty funny too… let us go with a warning.) After this little escapade I ended up being the barracks’ mechanic for everyone’s car problems. Most everything was “parking lot” type repairs, no engine rebuilds or tranny exchanges, just basic problems that could be handled with basic tools that a couple of young Marines could afford. It wasn’t til after I was out of the service that I realized repairing cars seemed to always fall into my lap. So I guess it’s safe to say I was destined to be a mechanic no matter what. A few tech classes, a little tutelage under an old watchful senior mechanic, and I was in business for myself. Well, here it is a few decades later and I’m still turning wrenches, I’m still scrapping a knuckle, and still making a living at it. I guess you could say it’s my career. Looking back on it now I guess I could have done something else with my working years, but like a lot of us See Think Like a Mechanic, Page 36

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 35


Continued from Page 35

Think Like a Mechanic

in this automotive repair business, this was my calling. I am one of many mechanics and technicians of any small town or big city who might have done something else with their life, but cars and tool boxes became our vocation. I may have chosen to be in Continued from Page 28

California Legislation

Other bills on CAA’s radar are SB1115 (Employment Working Hours: Dutton), a bill that would permit an individual nonexempt employee to request an employee-selected flexible work schedule providing for workdays up to 10 hours per day within a 40-hour workweek. The organization supports this bill, according to Jack Molodanof. “It failed once in the Assembly but now it’s back,” he said. “It’s designed for smaller companies, because right now a business has to have a human relations person essentially to make it pos-

this business but quite honestly, it might have actually chosen me. Can’t say it’s been that bad of a deal. I’m sure everyone in the business has a story to tell of how they got started, and when I get the chance to hear someone else’s story I’ll take the time to listen. It’s really fascinating to me how we all ended up here… bending over the hood of a car or truck. I’m very proud of the auto indus-

try, and I’m proud to be a part of it. Whatever some people may think about the job of a “mechanic” or how they might try to degrade it, there’s one thing to keep in mind…. it’s a necessary part of the world we live in. This country is built on moving goods, products, and people from one place to another, and without mechanics everything would come to a complete stop. As a tribute to all of the mechan-

ics, technicians out there… a tip of the hat to one and all… your dedication and hard work should be commended. If no one else will say it… I will… Thank you for your continued efforts. You keep fixing them and I’ll keep telling your stories. Here’s a hand salute from an old Marine to everyone in the automotive trenches. I appreciate every one of you… 100 percent. OohRah!

sible. We support it, because we believe that smaller businesses should be

able to shift their workers’ work schedules without the process being prohibitive.” Another bill impacting the collision industry is SB1323 (Career Technical Education: Wyland). This bill lays out a roadmap for what the state must do to reinvigorate career education programs in California. The bill reconstitutes the CTE Advisory Committee in each school district to include representation of technical education industry sectors including transportation, with a focus on the automotive industry. The CAA support SB1323, but is afraid that it might encounter problems primarily due to budget cuts throughout the state’s

middle schools and high schools. AB 2505 (Motor Vehicle Replacement Parts: Ma) is also a concern of the CAA for many reasons, mainly because it has the potential to create additional liabilities and burdens for auto body repair shops that install certified crash parts on vehicles and later learn that the certified crash part was “decertified’ by the certifying entity. “The main questions with this bill are— is the shop responsible for contacting the consumer even if the car has been sold to a third party?” Molodanof explained. “And who is financially responsible for repairing and/or replacing the decertified crash part?”

From left, CAA members Mark D’Angelo, vice president of sales for D’Angelo Business Group, and Gigi Walker, owner of Walker’s Auto Body & Fleet Repair were ready to take on their government representatives on Legislative Day

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Poway, CA, Navy Veteran Has Vehicle Painted to Honor Troops

Kano Williams, US Navy Veteran HM1(FMF/PJ), had his 2006 Dodge Magnum RT painted as a tribute piece for all armed forces, active and retired, in October of 2011. At first Kano had

decided to make the concept permanent by getting it airbrushed on my car,” said Williams. Kano’s car was featured at last year’s SEMA show and also just fin-

The beautiful artwork painted on the car was the work of Wesley Smith at Studio Wes in Lemon Grove. The inside of the car carries on the theme with purple upholstery and

an organization that uses all variations of vehicles as a way to create awareness for the past, present and on-going military related affairs. The group is a non-profit, veteran owned and oper-

the car wrapped with a vinyl graphic with a similar concept to the way the car is painted now. He decided to make the photos and concept permanent by having the design airbrushed on the car. All the photos on the vehicle are actual pictures of the 6 tours Kano has done throughout his career in the armed forces. The Purple Heart design is also inspired by Williams’ career as he is a Purple Heart recipient. “The car was really getting a lot of attention with the vinyl on it so I

ished the DUB Tour in Anaheim, CA, earlier this month, where it won Best of Show in Painted Graphics. Kano’s car will also be part of the inaugural Veterans’ Cruise for a Cause in Oceanside this year. The shop that did the build was Sinful Enhancements in Lemon Grove, CA. Owners Sinh and Han helped Kano accomplish his dream car.

more Purple Hearts embroidered in the headrests. Kano is the CEO for an organization called Vets Cruzin’ for a Cause,

ated organization. They hope to raise money to provide bi-annual bike and car shows in selected areas, as well as, hosting an annual bike/car ride/cruise. For more information about this organization visit: www.vetscruzinforacause.org. Sinful Enhancements 7666 Lemon Avenue Lemon Grove, CA 91945 (619) 466-0800 www.sinfulenhancements.com

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Matrix System Launches World’s First Premium Low VOC Solvent Basecoat by Melanie Anderson

Matrix System Automotive Finishes, a Michigan-based company that distributes nationwide and in Canada, recently launched an entire line of toners that deliver 3.5 pounds per gallon or less VOC emissions. This revolutionary technology offers customers exceptional hiding with ease of application and no need to upgrade shop equipment. Matrix, a division of Quest Specialty Coatings, unveiled its new line at the NACE Show in Orlando, Florida, last October where professional vehicle refinishers Ken Papich, Matrix’ were the first to Director of Sales discover the Matrix System’s MPB-LV Premium Low VOC Basecoat system. MPB-LV (Matrix Premium Basecoat-Low VOC) sprays like other premium high VOC solvent systems, which makes it “hard to believe that it is low VOC,” Ken Papich, Director of Sales, told Autobody News. Additionally, the MPB-LV utilizes the Matrix System Color Variant Selector System to ensure a great match every time. The new premium low VOC basecoat gives the California and Canadian markets, and other regions contemplating low VOC regulations, the opportunity to choose between waterborne or low VOC solvent basecoat. Matrix partners with several regional warehouse groups to distribute their products to jobbers that sell to body shops and the retail public across the United States and Canada. “Because of this network, Matrix now has inventories that are only hours, or minutes, away,” said Papich. “This really helps lower the operating costs of jobbers and they no longer need to stock so much product. We also have relations with an international distributor which takes Matrix all over the globe. It’s a great American story, as we make all our paints in Michigan and export all over the world.” Matrix System Automotive Finishes is one of the industry’s most successful manufacturers of high quality color, clear coats, primers, hardeners and reducers. Matrix was established as a company dedicated to developing

high performance and affordable refinishing products that perform as well as or better than the leading national brands. The company’s mission is to produce high-quality automotive finishes and provide great value to their customers. “Matrix products sell for less without sacrifice,” said Papich. Matrix has been in business for 30 years, starting with the production of premium clear coats, primers, hardeners and solvents. “We started when there was little competition, as the major paint brands owned the entire market,” said Papich. “We built great relationships with raw material suppliers, and because of lower operating

Company Facts

cuShade® Intermix System now leads the product line, giving body shops the ability to produce over 98,000 colors with exact formulas. It has been estimated that Matrix basecoat colors have been sprayed on over one million vehicles with accurate color match and excellent performance. Like its entry into the clear coat market, Matrix was a pioneer as an alternative automotive refinish brand. “We were able to save body shops nearly 40% of the paint cost and provide a consistent income for our jobbers,” said Papich. Today, AccuShade has evolved to a multi-quality intermix systems—premium to economy-

● Founded in 1983, Matrix employs over 100 full-time associates. ● Matrix products are manufactured in a 52,000-square-foot modern production facility in Commerce Township, Michigan. ● Matrix System’s corporate headquarters, warehouse, and training facility are located in Walled Lake, Michigan. ● 1.4 million gallons are produced annually. ● 4.0 million dollars of modern production paint equipment. ● Bulk resin and solvent tanks are hard piped to mixing tanks. ● 16 bulk resin and mixing tanks on electronic load cells hard piped to filling lines. ● 7 automated filling lines with batch coding systems and automated labeling systems.

Online Contest

Matrix is offering a “Peel to Win” online promotion to all their body shop customers who purchase a gallon of Matrix System’s MP-1000 “Coast to Coast” DTM Primer Surfacer Sealer. To qualify, customers need to purchase a specially marked gallon can of the MP-1000 DTM Primer Surfacer Sealer, peel the sticker, follow all instructions on the back and visit the Matrix website to register. Winning prizes include iPads, Iwata Air Guns and spray guns, VISA gift cards, mixing equipment and more. The program runs until September, 2012.

costs, produced premium products at nearly half the price of the major competitors. We never had to cheapen our products to keep the selling price low. This quest for staying true to our formulas paved the way for loyal end users.” Today, Matrix is one of North America’s largest clear coat manufacturers. Back in 1997, Matrix introduced the first Intermix Paint System, called AccuShade. Since bursting onto the national scene, Matrix System has been selling its AccuShade® Intermix Paint Systems, FX Series custom colors, clears, primers, and reducers to over 350 paint stores and thousands of body shop customers. The Ac-

38 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

priced basecoats, single stage paints, and now the world’s first premium low VOC solvent basecoat—MPV-LV. Not all the paints and products that Matrix offers are low VOC. Matrix sells multiple products for all markets, including international. “Many people think California must only use low VOC, but a large part of the state doesn’t require this. We comply by providing accurate information for our distributors regarding what’s legal and what’s not.” Moving forward, Matrix is creating “Coast 2 Coast” products that are legal in all of North America. “Our new paint products perform so well, we didn’t tell customers that they were

using low VOC coatings because we felt body shops wouldn’t want to buy products they didn’t ‘have to’ or would have preconceived notions that they wouldn’t perform,” said Papich. “So, some of our labels do not feature the scary words ‘low VOC’ but we do provide all the necessary regulatory information.” While some may think the current regulatory environment is complex, Papich doesn’t think so. “If you take the time to read and understand the rules, they are very simple. I only wish the rules didn’t vary between counties or states.” In addition to the Matrix label, the company manufactures coatings for several other brands and distributors. “Paint manufacturing is a complicated and costly endeavor,” Papich said. “Smaller distributors and manufacturers now contract with us for less than it costs to make paint themselves, and with consistent results.” Papich grew up in the paint business, working in his family’s paint store in San Diego, CA in the early 1980s as a teenager. He helped grow the family store into two large profitable locations. “I always wanted to be in law enforcement, but couldn’t give up my passion for the paint business. In the early 1990s, we sold our stores to Sherwin-Williams and my dad retired. I continued to work for SherwinWilliams in various roles, my last as the Regional Sales Manager overseeing 21 locations and 140 employees. In 2008, I moved to Matrix and have been truly blessed to work for such a great group of people.” Since 2007, the company has doubled in sales and Papich thinks it’s only the beginning. “Matrix is a lean company where we all wear a lot of different hats. I’ve learned so much in the past few years, and it’s all been fun. I look forward to our future as Matrix continues to experience record growth globally. “Matrix has definitely earned our place in the market as a premium line at great value,” Papich added. “Today, we’ve become a viable alternative to the major brands, without sacrifice. We’re committed to adding additional field resources, along with developing state-of-the-art technology. I see continued global growth for Matrix as we strategically increase market share and brand awareness. Matrix is a great line worth looking into. We have a great story to tell and can prove it.”


www.autobodynews.com | MAY 2012 AUTOBODY NEWS 39


On Creative Marketing

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

“Power Babes” Throw a Successful Event with Thomas Franklin

Last year, as summer approached, I provided a wealth of little known inwrote an article about holding an formation about tire care. Several event in the summer to bring in new other of the shop’s vendors were inbusiness. I was pleased recently to vited to speak, but had to decline belearn of an event put on by a shop in cause of the short notice. A local my area. “POWER BABES,” a pro- Nissan dealership provided a technifessional womens’ networking group cian along with a no-emissions “Leaf” in the vicinity of the shop, meets reg- vehicle from the dealership for the ularly to explore and discuss issues of group to examine at great length. The with Dick Strom interest and importance to the mem- ladies had this rare opportunity to bers. The location of the meeting is learn many technical details about this different each time, and often held at a state-of-the-art vehicle in a way they place of business of interest to the never could have without the help of members. The marketing lady at the an expert technician. host shop learned of this group of The cost of providing food and about forty women and invited them drink for a group this size might conto hold their next meeting at the shop. vince many shop owners that an event The current group president ex- like this could not be cost-effective. pressed an interest in holding a meet- But the fact is this was a highly profing that focused on a women’s car itable venture. The tour of the shop care clinic. It was agreed that the alone convinced many women in the Amaradio Jr. that this was an exceptionally meeting would with be heldLee at the shop. group Automobile repair people who de- clean, technically advanced place to scribe a vehicle problem using the jarbring their car when they needed augon of the industry can confuse not tobody repair. The close personal conjust women, but many uninformed tact with the owner and marketing people. Several automotive profes- people also convinced many that this sionals would be invited to speak on was a highly ethical, caring place to car care issues in their area of expert- bring a vehicle. From the viewpoint of ise. To help the women in the group the shop, follow-up is what made the better understand what is going on biggest difference in cost effectivewhen they need a vehicle repair, the ness. Photos of the event and key professionals would be asked to make members of the group were posted on detailed presentations car Facebook and the shop’s website. with during SheilatheLoftus care clinic. Several did agree to come. Comments by ladies attending the A lot of information for the meet- event were recorded by the host — esing came from “Vehicle MD.” They pecially comments praising the attracwere kind enough to provide everyone tive layout and the shop’s neatness with a copy of their magazine and cleanliness — and also posted on (http://vehiclemd.com). A woman as- Facebook and the shop’s website. sistant manager at an auto parts com- While this was obviously nice publicpany surprised the group by providing ity for the shop, the women running very detailed technical information the networking group were well aware they could all understand. And a man- that this would also be a big help in ager from Americas Tire Company their recruiting efforts to get other

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withRepair Janet Centers Chaney Raise $1,329 for Charity Iowa Collision

BODYPROS Collision Repair, a group of Des Moines-based collision repair centers, has raised a total of $1,329 for the Iowa Chapter of the Leukemia & Lymphoma Society (LLS) Team in Training during the Arena Football League Iowa Barnstormers’ home games. BODYPROS Collision Repair, the greater Des Moines area’s only collision network, will hold a a 50/50

raffle at all Iowa Barnstormers home games to benefit the Iowa Chapter of LLS Team in Training. “What an electrifying night, both outside and inside!” said BODYPROS Collision Repair’s Christy Jones of the April 14 game. “With the Iowa Barnstormers’ first home field win, BODYPROS Collision Repair raised $415 for the Iowa Chapter of the Leukemia & Lymphoma Society.”

Industry Overview with Janet Chaney

40 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

women to join their network. If structured properly, events like this can be a win-win for both the shop and the attending group. Profiles of leading players in the group were also captured so acknowledgements could be sent to the key people and, in some cases, their subordinates and family. This action fitted in nicely with the shop’s effort to maintain broader profiles of repeat customers and prospective customers. A while back I wrote about a shift away from broadcasting to what has been called “narrow-casting” in promotional parlance. Using today’s powerful preference identification technology, advertisers know just about everything you like to eat, to wear, to read, and more. If you can build a database with searchable fields for gender, marital status, family members, occupation, professional affiliation, vehicles owned (also by

other family members), pets, social networks, birthdays, anniversaries and more, you have a tool for perfectly targeted promotional calls, mailings, emails and invitations. Because of the professional nature of the women in this group, I would call this a truly brilliant marketing event for this shop. Most of these ladies drove recent model, highend cars. Because most were also very active in business, they do a lot of driving and given the urban area in which they reside, a certain number of at least small accidents are bound to occur. Because of most of the ladies’ immaculate attire, you could see they cared a great deal about appearance and so would choose to keep their vehicle in spotless condition. All of these factors added together amount to a group of the very best prospective customers a shop could hope to attract.


Industry Business Beat

This is a new column in Autobody News. It will focus on investment opportunities in the auto industry and will feature guest columnists on a regular basis. Opinions herein are strictly those of the author. Autobody News accepts no responsibility for investment actions taken or not taken based on this column.

Aluminum Stock—A Long-Term Auto-Related Opportunity? with Frank Sherosky

This article is reprinted from Torque News with permission.

Aluminum and light-weight automotive body structures surely go together, no less than light-weight bodies and lower MPG. So, it should be no surprise that the earnings of Alcoa (NYSE:AA) would bring the company into focus once again, especially with the advent of higher MPG requirements by 2016 and 2025. All of us know that forcing people into smaller cars is not advancement. Even a Ford engineering manager at 2012 NAIAS had the sense to say there is a limit to downsizing engines as well as auto bodies. In fact, he noted the next wave of gains for automotive will have to come from lighter body structures. Truth is, auto body structures are already becoming hybridized, but have a long way to go. They are still

made mostly of sheet steel stamped in complex forms, then welded together for that unibody construction. However, they are getting increasingly amounts of aluminum and magnesium pieces, too, especially for the unsprung portions like suspension parts. Looking at the future, consider the Tesla Model S and the Mercedes new SL. That’s where we need to go as an industry; and that’s where we are going as an industry. It’s simply a matter of time and investment. With regard to Tesla and Mercedes SL, both have all-aluminum structures. They cost more money, but so do lithium-ion batteries. Furthermore, a lighter body structure would provide greater driving range even for full EVs. Now, imagine an all-aluminum Chevy Cruze, for example, powered by a revised Ecotec engine with a split-cycle configuration or even a

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downsized engine with an electric supercharger, stop-start and maybe even an air-hybrid component. Then the gas mileage would be awesome compared to what we have now even in the city; and the overall cost wouldn’t be formidable for the masses as what we have for EVs. Point is, any company that makes aluminum will be in the sweet spot, provided they can remain healthy during this latest downturn. Thus far, it seems Alcoa may be getting into fighting shape. Sure, there are other aluminum competitors, but AA is an American company; and its position to provide the American auto industry with what it needs can literally position itself like the companies that sold picks and shovels to gold miners of old.

Aluminum vs. Steel vs. Carbon Fiber One Torque News reader noted many months back that billet steel trades around $500/ton, while aluminum trades at $2,200/ton during a period of rock bottom aluminum prices. His implication seems clear: If you cut a thousand pounds off the weight of a car by going aluminum, the ton of aluminum you had would still add over a thousand dollars to every car. While he agreed that lowering the weight of cars is definitely the future, there are lots of other ways of doing it. He felt the auto industry could very easily take a page out of Boeing book and investigate carbon composite body structures. Or a page from the SmartCar book and investigate highstrength steel reinforcements. Fact is, the auto industry is already using those materials, just not extensively. Problem with carbon fiber is the cure time. Try doing that at the rate of 60 cars per hour. At least aluminum has the potential to have present welding technology, not to mention more use of extrusions which are far cheaper, thus eliminating many key stampings altogether. In highstress areas, castings could be used, as witnessed on the Mercedes SL. Alcoa Stock Chart Looking at a recent chart of AA, it is clear that aluminum and Alcoa have

not faired well since 2008. And that should tell you something. If the auto industry faired well before 2008, though, then crashed only to revive to its present position, perhaps aluminum use and production will likely follow that same pattern. It’s just shifted in its timing of recovery. AA is now trading at 9.32 with its lowest low in the past five years at 4.97 and its highest high of the past five years at 48.77. That makes today’s price look like a cheap option play, in my opinion. Granted, it is not my usual writ to recommend any stocks. I prefer to let the charts do the talking. However, I must admit this chart has yet to show a turnaround. Then again, today’s quarterly report may be the catalyst that might turn the trend; perhaps not all at once, but over the next year. Personally, I will be watching the prices of the options as well as the stock dynamics for opportunities. For sure, the general market is swaying the entire market including the auto sector stocks, but that will not remain forever.

Frank Sherosky took early retirement from GM, Saturn and spent 39 years in the auto industry as a draftsman, product designer, CAD operator and Studio Design Engineer. His direct experience within the auto industry enables him to contribute insights into business, people, processes and technology; and has written as the Detroit Automotive Technology Examiner. He also trades stocks & commodities, writes books and ebooks, like “Perfecting Corporate Character,“ “Millennial World Order,” “Awaken Your Body to Healthy Aging” and “Awaken Your Speculator Mind.” He lives in Clinton Township, Michigan with his wife and best friend, Judi.He may be contacted via his forwarding email: fsherosky@authorfrank.com and followed on Twitter under @Authorfranks

www.autobodynews.com CHECK IT OUT!

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 41


BASF Recounts How Innovations Meet Needs and Adding Value for Customers by BASF Staff

Market-Driven Innovations That boost efficiency and customer satisfaction With competitive pressures in the collision repair industry at an alltime high, it’s more important than ever to implement innovative new technologies and business practices. And while profitable growth demands increased productivity and new cost efficiencies, an old-fashioned commitment to firstrate quality and responsive customer service continues to distinguish the most successful collision repair centers. When it comes to delivering in all of these areas beyond your customers’ expectations, it’s vital to have a leader in the coatings industry in your corner. BASF is that leader, with a proven track record of delivering the finest coatings along with the training, color information and productivity tools that high-volume production shops, customizers, restoration specialists, auto auctions and others need to succeed in their respective markets.

New Products Can Reduce Cycle Times One area where BASF has set the pace of change is in new formulations that significantly reduce cycle times. Examples include a high-build, corrosion-resistant UV primer used to repair minor defects, which is applied in one or two coats and then cures in just a few minutes with an ultraviolet light. And, a new high-performance line of no-bake clears is further evidence of BASF’s technological leadership and commitment to making work processes more efficient. According to Market Segment Manager Tony Dyach, sales of the nobake clears have been “amazing” since their introduction last fall. “Our customers have realized an immediate benefit from the no-bake clears’ minimal flash time” he said. “This allows vehiContinued from Page 7

Progressive Suit

lated body materials. The insurer’s position is that body materials are not compensable because they are part of a repairer’s “cost of doing business.” “It’s most unfortunate that a repairer must take these legal steps but the under-payments and non-payments are continually increasing as

cles to be moved out of the booth sooner, freeing up an area that tends to be a bottleneck in busy shops.” As the name clearly indicates, nobake clears can be applied without firing up the bake cycle. They feature fast flash off times without the need to bake, or can be baked at low temperatures if desired. “So, no-bake clears mean lower fuel use, further reducing the shop’s carbon footprint,” noted Brian Koevenig, lab manager at Technical Customer Service, North America. As an integral part of BASF refinish systems, these nobake clears help to significantly reduce cycle time while providing a high-gloss finish. When used as directed, these high-performance clears are not susceptible to die-back issues, minimizing polishing time and further reducing overall cycle times. The new Glasurit® no-bake clears’ fast drying times are well-suited for limited-area repairs, which account for a majority of the work in a typical collision repair shop. Adding Value with Customer Support BASF’s commitment to customer service doesn’t end with the delivery of its innovative coatings. The company has also built an industry-leading position in customer support through an array of value-added programs, including VisionPLUS®, a full-service toolkit designed to help collision center managers grow sales, streamline operations and gain a competitive edge. Another key competitive advantage is BASF’s color information resources, including the highly popular SmartTrak® color management system that provides fast and accurate color formulas. And an extensive Global Color Information database is a favorite of distributors and collision shops, allowing ongoing access to formulas that are continually updated by our global color lab-

insurer’s squeeze consumers and their repairers,” Hawks said. “I’m sick of being intimidated by insurance companies. While rent, lights, advertising and such are (the cost of doing business) body materials are not.” Hawks’ shop is in Lakeland, the same city where Gunder’s Auto Center is located. Ray Gunder, owner of Gunder’s Auto Center, has successfully sued insurance companies in similar lawsuits. (See related stories this issue.)

42 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

oratories. Intensive, hands-on training courses are offered at BASF’s technical training centers located across the U.S. and Canada. The program’s core consists of an extensive curriculum of classes in product knowledge and use, refinish techniques, specialty finish repair, color matching and troubleshooting. “Our trainers are experienced industry professionals with unmatched expertise with our product, application techniques and process efficiencies,” said Marketing Manager John Daniel. ”Many of our trainees come in with a specific challenge in mind, and they go home thrilled with the experience and with their problem solved.”

A Systems-Based Approach BASF Automotive Refinish is committed to delivering the world’s finest coatings while also providing comprehensive support to help its customers achieve success in a highly competitive marketplace. When it comes to both product and process, a systemsbased approach is key to delivering intelligent solutions within a dynamic,

ever-changing business environment. “We’re always looking at the entire process and how to improve job process and shop efficiencies, while maintaining industry-leading quality,” observed Joe Skurka, Manager, OEM & Industry Relations. “Our corporate culture at BASF is one of continuous improvement.” This is no idle claim, backed by the resources of the world’s largest chemical company. BASF’s product innovation reflects an attentive, “ear-to-the-ground” awareness of customer needs and strong R&D to develop the next generation of coatings to satisfy those needs. A well-trained, immensely capable sales and technical organization ensures responsive customer service, along with an extensive network of BASF distributors located throughout North America. Together, they ideally position BASF to provide the comprehensive support its customers expect and deserve. For more information about BASF Automotive Refinish products and services, contact your BASF representative by calling 800-825-3000, or visit www.basfrefinish.com.

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

Industry Insight

Standards Program in the U.K. Offers Lessons for the U.S. with John Yoswick

through observing the U.K. market As the discussion of how and whether the industry should develop some sort and speaking with shops there. He predicated his remarks by of formalized collision repair stansaying that Fix Auto USA is commitdards continues,with Paul Gange brings a Ed Attanasio ted to repair stansomewhat unique perspective on the dards, ensuring topic. that all of its franGange is the president and chief chises here, for exoperating officer of Fix Auto USA, ample, maintain which has 48 franchise locations in the I-CAR Gold four U.S. states, as well as 151 shops Class designation around the country the comwithusing Ed Attanasio of ongoing trainpany’s services as part of a more Paul Gange ing, and use a loosely-knit “network.” third-party, VeriFacts Automotive, to But Fix Auto also has a similar organization in the United Kingdom, help ensure repairs are being done with 68 franchises in a market that has correctly. “Fix Auto is committed to repair implemented a repair standards program that is most often mentioned as standards that are universally adhered to and which ensure vehicles are rea potential model for one in the United turned to the road safely,” Gange said. States. That said, he offered the followSpeaking recently on the Collision Repair Executive Webcast ing prescriptions and warnings for those involved in the standards effort (CREW), Gange shared some of the here. perspectives on standards he’s learned

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● Discussion of standards can easily lead to multiple “standards.” Gange said the standards effort in the U.K. began in the 1970s along with the shift to unibody vehicles. One industry organization developed a standards program, which about 2,700 U.K. shops implemented over a fouryear period. But 300 other shops balked at that standard, and created and implemented a different set of standards. Eventually there were at least three such programs, and shops

found themselves being required by different insurers to implement multiple standards, just as U.S. shops often have multiple estimating systems to meet different insurer requirements. “This was, at the very basis, a bit of a mess,” Gange said. Some say the U.S. market is going down a similar road, with an increasing number of shop certification programs by the automakers and See Standards Program, Page 45

Other Voices on Standards

Several other industry participants offered their view of the industry standards development process during a recent Collision Repair Executive Webcast (CREW). Mike Quinn, who co-chairs a Repair Standards Advisory Committee working on the issue, said crash testing of a vehicle repaired using methods considered safe just a decade ago showed that if used today, such Mike Quinn methods would compromise the safety of passengers in a subsequent crash. “The results were disastrous, and if we don’t think we’re under a microscope by litigious attorneys or governmental agencies, we’re kidding ourselves,” Quinn said. “The ostrich approach has not worked for our industry. The consumer expects and should have comfort that cars are being safely repaired to a standard so their family is safe in that repaired automobile. We have to move forward.” Denise Caspersen of the manager of the Automotive Service Association (ASA) Collision Division, agreed that standards could improve shop consistency and efficiency, as well as repair quality, customer satisfaction and the industry’s professionalism. But, she said, ASA members have expressed concerns about whether a standards program would be open to shops of all sizes, whether it would be recognized by consumers, and whether it Denise Caspersen would offer a return on investment for shops or rather just add another cost for shops. Steve Nantau of Ford Motor Company agreed that in order to be successful, a standards program would have be recognized as valuable by consumers and insurers. He believes if the industry doesn’t develop a single, recognized program, even more automakers and other groups will implement their own such program, none of which will end up with enough “traction” for Steve Nantau widespread recognition. www.autobodynews.com | MAY 2012 AUTOBODY NEWS 43


Top Chicago Painter Prefers Preval’s vFan Airbrush for Mobility & Versatility by Ed Attanasio

Shawn Orr, 37, is a Chicago-based freelance airbrush painter who has painted murals on cars, helmets, dealership windows, trucks, semis, motorcycles and has even done some painting on human bodies as well. Orr uses the vFan Portable Airbrush System for precision paint and material dispensing, particularly touch-ups and surface repairs, as well as surface preparation and curing. Orr relies 100% on his Preval vFan Airbrush to do touchups for body shops—work they would rather sub out than do themselves. “Body shops line up cars for me and I come in there and paint primarily bumpers with the Prevals vFan Airbrush,” Orr said. “This way the shop does not have to pay their painters a full day of wages to do a few bumpers. I can come in there and get it done a lot faster, because I’m mobile and they don’t have to worry about buying any new equipment or pulling their people off other projects to do the job. Plus, I can do it in half the time!” Sold globally, the Preval vFan Airbrush is made in the USA, and is used heavily in the automotive, aerospace, packaging, semiconductor, solar energy and textile industries, because it’s the only airbrush on the market that converts to an airgun and achieves both 3inch fan and 1/16-inch hairline patterns. Fully portable, the vFan Airbrush can be used in all environments when powered by 150 feet of energy, Preval’s innovative, ecofriendly aerosol compressor unit. Each canister of 150 feet of energy contains seven ounces of VOC-exempt propellant that powers more than 150 feet of linear paint coverage and up to 40 square feet of paint coverage. The vFan Airbrush is also compatible with most workshop compressors. Orr appreciates the fact that his Preval vFan Airbrush offers his body shop customers a great alternative and a smart way for them to improve their cycle times, he said. “If a shop wants to do this type of work inhouse, they have to tape it off and then in the end they’re painting the entire bumper of the car anyway to avoid overspray. With the Preval system, I only have to paint the immediate area on the bumper and feather it off at the edges and then put the clear on top of that. So, it saves time, money and materials for them. They take what I charge and mark it up appropriately, so it’s obvi-

SHOP & PRODUCT SHOWCASE Shawn Orr Freelance Airbrush Painter Location: Chicago, IL

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By contracting body shops throughout the Chicago area, freelance airbrush painter Shawn Orr can get the work done fast and efficiently with his Preval vFan Airbrush

ously another source of revenue for them.” Orr also likes the versatility of the vFan Portable Airbrush System, he explained. “I spray the base, the color and the clear all with the vFan. Of course, in between each phase, I have to clean the airbrush, but it’s an easy task and it doesn’t take very long. The o-rings inside the unit are coated, so you can spray urethane, water-based paints and solvents. The air coming out of the cans is a dry air, so you don’t have to worry about moisture coming through the hose and ruining whatever you’re working on.” During his 20 years as a mural painter, Orr hasn’t found anything like the Preval vFan Airbrush, he said. “The biggest difference is that it changes from a standard airbrush to a fan pattern air cap. It goes from about a one-inch fan pattern to about three inches. With the standard air cap you can use it to get those really fine scratches for hairline touchups, starting from 1/16th of an inch to a full inch. Then, with the fan pattern, you can do a full three-inch area. The mini jet can’t do that and a standard airbrush can’t go up in size like that, so that’s what distinguishes the vFan Airbrush.” Orr has a wide range of clients and the VFan Airbrush is a nice fit in every scenario without fail, he said. “Lots of people call for us for touch up work and in many cases we will go to their home to do the work. It’s a combination of do-it-yourselfers, customizers, interior vinyl/leather repairers, and of course, the body shops and car dealerships.” Orr is currently doing a mural on a truck and it might be one of his best

44 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

projects ever, he explained. “We’re currently working on a truck for Oscar’s Auto Body & Mechanical in Chicago, Illinois. The paint job has black on the bottom with silver on top and fading into it, with an Aztec tribal sign in silver. We’re obviously going to do this design with the vFan Airbrush and we’re excited to see how it comes out.” For retailing less than $200, Orr recognizes that the Preval vFan Airbrush is a superior value. “It’s definitely a great deal, because these airbrushes will last and they can work with most air compressors. Each can has about 150 linear feet and that is more than enough for me to do touch up. And you have two cans with the system, so there’s enough to do an entire bumper with that supply, placing each can into the EDU (Energy Disbursement Unit).” This allows for five times longer lasting spray. By avoiding the use of a loud air compressor, Orr is able to concentrate more on his mural designs while creating, he said. “All you can hear out of the Preval vFan system while you’re using it is the sound of the air coming out of the tip of the airbrush. You won’t hear anything coming out of the portable air cans, which is nice. When you use one of those Chinese-made air compressors, it pretty much rattles the whole house. When I come into a body shop to work, they don’t even know I’m there, because it’s so quiet.” To see a demonstration of the Preval vFan Portable Airbrush, go to YouTube and search for: “Preval vFan Airbrush in the Field: Auto body.”

Orr covets the mobility, versatility and convenience of working with the Preval vFan mobile airbrush system

Retailing at less than $200, the Preval vFan Airbrush is an outstanding value for body shops, mechanical shops who do occasional touch ups and automobile customizers

Preval Spray Team Phone: (877) 753-0021 email: sales@preval.com website: www.preval.com


Continued from Page 43

Standards Program

third-party certification programs, such as one being launched by the Assured Performance Network. ● Create a system that is free from bias. While the industry in the U.K. has shifted in recent years toward a single standard, Gange said there’s some question as to whether that program treats all repairers equally. As an example, Gange said that most shops are subject twice a year to unannounced assessments of their compliance with the standards. “These are arduous assessments,” he said. “They are very, very detailed. And if you fail that assessment, you lose your certification.” But Gange said one mobile repairer organization in the U.K., which focuses on light hits and bumper repairs, faces such assessments at only a subset of their “locations,” which are essentially vans, rather than at all locations like most other repairers. That reduces their costs of compliance, Gange said, which some traditional repairers view as unfair.

In addition to that type of sitation, Gange said he would like to see the U.S. also avoid a standards system that isn’t open to anyone willing and able to comply. Automaker shop certification programs, for example, generally require an independent shop to have a relationship with a dealer, which may make such a program open to one shop but not to another, equally-qualified shop. “Repairers wiling and capable of investing, if that’s required, or adhering to standard specifications and doing the work that’s it’s going to take to ensure that they can repair vehicles properly should have a right to repair that vehicle,” Gange said. “I would not want there to be a standard that excludes a shop that wanted to adhere to the standard but perhaps wasn’t able to participate because it didn’t have the endorsement of another organization.” ● Don’t underestimate the cost of standards. Gange said that while the standards program in the U.K., is “at its essence positive, it’s riddled with bureaucracy, and along with bureaucracy comes costs.” Gange said that

shops in the U.K. feel they bear the burden of these costs, including a $30,000 to $80,000 initial implementation fee, along with the equivalent of just under $8,000 a year in annual training. Much of that training is provided through Thatcham, an insurerfunded research and training organization in the U.K. Gange said the industry here may want to ensure there are multiple organizations helping implement any standards program. “I think what we would want to have in this regard is a healthy marketplace for those that do the training and the assessments and the initial implementation,” Gange said. “That will help keep the prices down.” Gange was asked if the standards program in the U.K. has led to increases in repair costs and total losses there. “At some point you have to expect that when you’re spending $30,000 to $80,000 to implement a standard, and another $7,000 to $9,000 a year to maintain a standard, those costs have to come out somewhere,” Gange said. “And I think its fair to say they have come out in the

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cost of repairs ultimately with an increase in total losses.”

● There needs to be recognition of the standards by insurers and consumers. Gange said the U.K. standards program uses the “Kitemark” brand for shops meeting the standards; similar to the “Good Housekeeping” seal here, Kitemark is a well-recognized symbol among UK. consumers. Without recognition by insurers and consumers of the value of choosing a certified shop, Gange said, shops not meeting the standard will use their lower costs to market lower prices – generally for a lower-quality or even unsafe repair.

John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.

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Former MLB Pitcher, Now Motivational Speaker, Engages East Bay CAA Members by Ed Attanasio

In a tough industry full of trials and tribulations, body shop owners are very susceptible to stress and burnout. If they’re not encountering issues with customers, insurance companies, vendors and/or employees, they have to worry about things like their cycle times and car count. It’s a never-ending struggle just to earn a Best-selling author buck and make their and renowned motivational payroll every week speaker Mike in this ever-changRobbins was the ing business. featured presenter And that’s why it at the EB-CAA’s was refreshing when monthly meeting the East Bay Calion March 20th fornia Autobody Association (EB-CAA) Chapter featured an inspirational speaker at its monthly meeting held on March 20th at Scott’s Seafood restaurant in Walnut, Creek, Calif. Sponsors for the evening were LKQ, Diamond Standard Class AAA Safety Parts and Enterprise Rent-A-Car. Best-selling author/motivational speaker Mike Robbins was the featured guest and presenter of the evening. His first book, Focus on the Good Stuff, reached #4 on the Amazon bestseller list, and his latest book, Be Yourself, Everyone Else is Already Taken, reached #17 on the Amazon bestseller list Robbins and his work have been featured on ABC News, the Oprah radio network, in Forbes, Fast Company, and the Washington Post, and on over 500 radio and TV shows in North America. He is also a regular contributor to Oprah.com and the Huffington Post.

CAA Executive Director David McClune (left) and this year’s CAA President David B. Picton (G & R Body & Paint) were there for the EB-CAA’s March monthly meeting

As a former professional baseball player in the Kansas City Royals organization, Robbins’s sports career was on track for stardom in the major leagues until he suffered an injury that

ended his playing days instantly when he blew out his pitching arm. Through the healing power of appreciation and authenticity, as well as his own personal journey of self discovery, Robbins was able to move beyond the injury to find more meaning and purpose in his life, he said to the approximately 60 EBCAA members in attendance. Robbins has worked with clients such as Google, the San Francisco Giants, Wells Fargo, the US Department of Labor, Apple, Chevron, the State of California, New York Life Insurance, Genentech, the Gap, Stanford University, Adobe, Banana Republic, the Arizona Diamondbacks, Kaiser, UC Berkeley, AT&T, The Atlanta Braves, Sutter Health, The Vancouver Canucks, US Bank, and many others. In a nutshell, Robbins’ message was: 1) People need to be more authentic 2) Be appreciative and show it and 3) Hey—quit complaining!

complacent, but just the opposite will take place. And also humbly receive praise when people show appreciation to you. Many individuals can’t take praise, so they deflect it or re-direct it. Being authentic includes accepting praise as well as distributing it.” And lastly, Robbins said stop complaining all the time. “In this culture,

control: 1) Our attitude 2) Our effort and 3) Our perspective. So, why complain about things we can’t control? Complaining is highly counterproductive, so concentrate on breaking that cycle.” After his presentation, EB-CAA members asked Robbins a series of questions and then new Chapter President Tiffany Cichon-Silva made announcements and talked about upcoming events sponsored by the organization. Notable dates include May 22, when the EB-CAA’s monthly dinner meeting at Scott’s will feature Richard Forness, an industry writer who will talk about the future of the collision repair EB-CAA Officers for 2012, back row, from left: business, sponsored by AudaJack Sandri (Dublin GMC, Cadillac) and Mike Govette tex. Also, on June 2nd, the (Finishmasters in Concord); Middle row: Trish Pickens EB-CAA will host its 26th an(Audatex); Peter Lock (Contra Costa College); Greg Decker (California Color Source) and Tiffany Cichon-Silva nual golf tournament at Diablo Creek golf course in (Accurate Auto Body). Front row, from left: Gigi Walker Concord, California. On July (Walker’s Auto Body & Fleet Repair); Kathy Mello (TGIF Body Shop) and Lisa Daves (D & S Body Shop) 24th, there will be a summer barbecue at the PPG Training Center, we’re chronic complainers,” he exwhere Aaron Schulenburg with the Soplained. “If you’re busy being a victim, ciety of Collision Repair Specialists you can’t be the victor. There are a lot of (SCRS) will be the featured speaker. things in life we can’t change, but we can

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From left, Margo Brough (Premier Wholesale Parts) and Annie Thompson (Walnut Creek Toyota) enjoying the show at the EB-CAA’s monthly meeting

About authenticity, Robbins said, “If you want to be a true champion in your life, be 100% real all the time. If you’re afraid to tell people the truth, try it sometime and you will discover that it’s empowering. Many people massage the truth and it breaks down relationships and can lead to big problems. Why do people lie? Because they’re scared of losing business or being embarrassed, among other reasons. But if you can be totally authentic all the time, your life will change. Be real with your spouse, friends and employees. Sometimes it might result in a 10minute sweaty palm conversation, but in the end both parties will feel better and respect each other more.” Robbins’s second point was to appreciate your life and the people around you and show it every day. “Acknowledge your employees for their work and let them know that you appreciate their hard work. Many employers don’t want to pass out the praise, because they feel as though their employees will get

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AkzoNobel Holds North American Independent Distributor Conference in Boca April 24–26 AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) is putting the final touches on the upcoming 2012 North American Independent Distributor Conference to be held April 24 to 26, at the Boca Raton Resort & Club in Boca Raton, FL. For network members this gathering represents one of the industries most anticipated and longest running distributor association events. Automotive paint and supply distributors from across the U.S. and Canada will rally together under the event’s “Win Forever—Always Compete” theme for three action-packed days of innovative workshops, exciting new product launches and training opportunities. Each element of the program has been designed with the goal of providing attendees’ methods to better support the growth and profitability of the network of collision repair centers which they support throughout North America. “Many of our distributors have been part of the AkzoNobel family since we came to North America in the early eighties’ with our then innovative SIkkens Mixing Machine concept”, said AkzoNobel

A&AC General Manager, Margret Kleinsman. “These same distributors have been instrumental in keeping us aligned with industry needs, selecting body shops that were eager for the innovation we delivered, and in turn helped us introduce new product lines. As a result of our close working relationship and our mutual understanding of the value of all parties in the repair chain, we have been successful in getting the right Color Solutions and Repair Support Services to our valued body shops customers. This conference will provide information on new tools and products to be launched in 2012. Most importantly, it will provide the platform for the co-generation of future products and services to further improve our joint support to the collision repair Industry.” In addition to the array of products and services to be found at the conference this year, industry leaders such as 3M, SATA, Dedoes and Summit Marketing Group, will participate in a special Opportunity Fair, where attendees will have the benefit of viewing current and upcoming product introductions and supporting services.

Standox® Partnership In Excellence (PIE) Member Conference Gives Industry Trends Insight, Human Resources & Marketing

Standox® recently hosted its 2012 Standox® Partnership In Excellence (PIE) Member Conference in Maui, HI, for collision center PIE mem-

Keith Sena, Standox® Brand Manager

bers from the United States and Canada. The PIE Program is a business partner with Standox® customers, maintaining a shared goal to achieve a sustainable competitive

advantage, through quality networking, innovative marketing and intelligent programs. Member benefits include Member Conferences, Training Programs, Strategic Partner Relationships, Business Council Membership and Bowtie Bucks Rebate. The meeting was held at The Ritz-Carlton, Kapalua on the island of Maui and gave PIE members the opportunity to network and learn from each other in a relaxing environment. The conference is an excellent forum for collaboration and networking among the collision center owners and managers who attend. Attendees also can take the knowledge they gain from conference sessions and from their peers, back to their collision centers, inspiring their future business decisions. Opening the conference were industry experts Greg Horn, See PIE Conference, Page 59

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 47


Airbrush Artist Shannon MacDonald Uses PPG Envirobase to Bring Icons to Life on Vehicles and Just About Everything Else by Erica Schroeder

Airbrush artist Shannon MacDonald, who exhibited her airbrush portrait of John Lennon at the Anest Iwata booth at SEMA 2011, uses PPG’s Envi-

KILLER (parrot) was created in 1991 by Shannon and made his way onto mall backlit duratrans, large street billboards, teeshirts, motorcycles, automobiles, night clubs and more. This particular painting was done in 1994 on a Camaro show car hood. It was painted with an airbrush using One Shot sign paint kicked with Dupont gloss hardener

robase waterborne paint to bring her art alive on just about every surface. Shannon’s art has been featured on guitars, drums, motorcycles, boats, cars, planes, helmets and of course traditional canvas or illustration board. “I use PPG’s Envirobase on everything now,” said Shannon, “I love it and it seems to love me.” Shannon, well known for her lifelike portraits of iconic celebrities such as The Beatles, Sylvester Stallone, James Dean, Jackie Kennedy and Elvis Presley—among others, failed art in high school due to differences she had with her art teacher. Instead of pasting macaroni on paper and throwing glitter on it she rebelled and went to the back of the room to study the “Old Masters” (Norman Rockwell, Michelangelo, etc.). Her teacher would insult her and say, “You will never get anywhere drawing those pigs”. Her teacher was referring to Shannon’s drawings and paintings of The Beatles. After a few years of failing art, Shannon’s already paved road to go onto college with scholarships was derailed. Depressed and aggravated, she gave up art and focused on a “still successful” music career. 15

years later, Shannon was given an airbrush, as a gift. This was the instrument in her life that gave her back her art. Her first airbrushed painting was of John Lennon. She entered the painting in a contest and won first place. Beatles fans saw Shannon’s painting and wanted more. Her fan base grew rapidly and she began to get invited to Beatles Conventions all over the USA. Owners of The Cavern Club (a Liverpool club made famous by The Beatles) discovered Shannon painting at a Beatles Convention in Connecticut. They took the news back to Liverpool and said of Shannon’s works, “We were Gobsmacked!” Eventually, so was the UK audience. With only a few years of airbrushing under her belt, Shannon was declared “The World’s Greatest Beatles Artist” in 1998 by the Lord Mayor of Liverpool. Shannon says of the art teacher that failed her, “My art teacher has to eat her words everyday. I will always be the “main course” in her life. As far as my art goes, I owe a lot to the airbrush.” After using mainly PPG solventbased paints for years, Shannon began using PPG’s Envirobase about a year

ago and has decided to go totally green in her studio. “I love it now,” said Shannon, although she thought she’d never get the hang of using waterborne paint at first, Shannon is now very comfortable with it. According to Shannon, when she first started using waterborne she

MINI-REVOLUTION was created in 2007 for the Beatles’ Hard Day’s Night Hotel in Liverpool, England. (detail done with IWATA Airbrush, electric eraser, and Createx paint)

noticed a difference right away. The waterborne paint would stay just as she painted it—critical to an artist who paints with such detail. With the sol-

vent, Shannon says, sometimes the fine details would melt and merge a bit as it dried. “As far as changing from solvent to waterborne, all I had to do was be sold on the product and what it had to offer. I was visiting ‘Ideal Distributors & Auto Paint’ in St. George, Utah to meet with Walter Rapp. While there, I had mentioned wanting to try the new PPG waterborne; PPG’s Envirobase® changed my mind about solvents,” said Shannon, “For me, solvents tend to ‘merge’ with each other in a way that detail is lost, especially when applying top coats. I am in the detail business! I can’t afford to see hours worth of work slowly disappear after topcoating with clearcoats and/or candies. Solvents easily ‘blur’ after top coating. PPG Waterbornes do not.” Shannon also appreciates that she is breathing in less paint fumes with the waterborne versus solvent. “If you are a painter that loves that 24 hour a day ‘sucking on helium rush’, you might miss solvent,” said

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“LET ME TAKE YOU DOWN” is a 10’ tall Fender Stratocaster made of fiberglass. These were made for the Rock and Roll Hall of Fame. Together artists from around the world such as Peter Max, Yoko Ono, Keith Richards and many others were featured on Good Morning America. On that early morning’s live from NYC program, Shannon’s guitar was declared the most outstanding of them all. Tony Perkins (weather man) spotlighted Shannon’s guitar three times during the program to show the audience the unbelievable detail. (Created using PPG, Sherwin Williams, and Createx paints using an IWATA micron and electric eraser.) © 2002

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This is a fine creation establishing the detail Shannon can get using an airbrush and an electric eraser. The new name attached to her creations is “Hyper-Realism”. This portrait was created for the IWATA/ANEST booth sponsored by ASET at SEMA 2011. (IWATA micron airbrush and an Electric Eraser on white baked aluminum panel) This was the first time SHANNON performed for an audience using PPG’s Envirobase Colors. (She had done so once before using PPG Envirobase shades of black and gray for the ASET produced show…ULTIMATE AIR AFFAIR) At this point, PPG is by far SHANNON’s favorite paint to use for both illustration and automotive painting

Shannon. Shannon was also impressed with the cost savings associated with using

waterborne and as a custom paint business there wasn’t a lot of cost in changing over from solvent. “There was no big cost factor in changing over; being involved in the custom paint business is probably less invasive then a full body shop change over. As I move forward I can see the advantage; I am getting more done at a faster pace which makes way for more clientele and I am using less paint. I am saving every day,” said Shannon. Although waterborne sprayed differently, according to Shannon, the techniques associated with using waterborne were actually quite similar to much of her artistic education. She also noticed that with solvent, the color that it is in the can is just about the same as it comes out when you spray it; but with waterborne, the color looks a lot different in the can than when it is sprayed. So color matching with the waterborne was a bit of a challenge because you can’t really color match by eye, you’ve got to spray a bit of it to know what color you’re really working with. “I have probably 50 Anest Iwata

guns,” said Shannon, who has been using their spray guns since 1994. She came to be very comfortable with the Anest Iwata guns after relying on the Iwata Custom Micron series when she painted her tribute stamp to Sylvester Stallone in 1996. Shannon’s process also differs from a lot of traditional custom vehicle painters; she doesn’t believe in using templates or taping off sections as she paints—she believes that gives her work too much hard edges. Shannon says she starts by outlining what she wants to paint with pencil, then she comes in with the spray gun free-hand. She starts out with the light colors, so at first it looks like a sepia-toned painting, then she comes in with an array of translucent color. Shannon says she prefers to paint the ‘old-school’ way and doesn’t consider herself a graphic artist. Most of Shannon’s work has been labeled ‘hyper-realism.’ Shannon also uses an electric eraser, a drafting tool. A tool she calls her “second favorite”. She has been in the process of working on an air eraser for a few years now. It will come to

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fruition with the help of Anest Iwata. Her version will be more like a polishing tool like that of a dentist. It will have different variables and several eraser tips of various densities. “Speaking as the number one Beatles artist in the world, it’s a heavy ride to get to number one—but once you’re there it’s almost more difficult to stay there and fend off all the number twos who want your spot,” said Shannon, “But I’m very lucky to have the spot I do.” Shannon is currently working on a Beatles tribute piece that represents and celebrates the 50th Anniversary of the last member to join and finalize the famous quartet, Mr. Richard Starkey (Ringo Starr). She will fly to the UK to unveil that piece in Liverpool. This August, in Salt Lake City, Utah, she will be one of the headlining artists at the event “ASET presents The Ultimate Air Affair”. She also plans to attend SEMA again this year with ASET (Automotive Spraying Equipment Technologies) and Anest Iwata. Shannon will be displaying and painting live, See Shannon MacDonald, Page 51

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Mainstream Media

This column reprints articles referring to the collision and auto repair industry as given in the general press. Autobody News thanks the copyright holder for giving permission to reprint such works.

Complaints Lead to Arrest of Ohio Car Restoration Business Owner by Jami Kinton, News Journal

Authorities capped a five-month investigation April 11 with the arrest of a Shelby, OH, man on multiple felony charges. Local officials say they were prompted by complaints from 17 cases of unhappy car-restoration customers, who combined said they lost more than $300,000. Keith Shellhouse, 46, was charged with aggravated theft, a thirddegree felony, and theft of a motor vehicle, a fourth-degree felony, said Richland County Deputy Sheriff, Rich Eichinger. “I’ve been doing car restorations for 30 years,” said Shellhouse, owner of Independent Autobody and Pro Restorations at 4952 PlymouthSpringmill Road. “Did I steal? No, I did not steal anything.” Richland County Sheriff’s Maj. Dale Fortney said the department was assisted by the Attorney General’s Economics Crimes Division and the state Bureau of Criminal Investigation, the National Insurance Crime Bureau, the Ohio Department of Taxation, the Ohio Collision Repair Board and the Bureau of Motor Vehicle Investigations. He said there were more than 30 victims, but only 17 kept good enough records to take to a grand jury. “People had to refinance their houses, sell land,” Eichinger said. “He only finished one car since 2002 and he’s had 20-plus cars waiting. Yes, it does take time to restore cars, but then why would you continue to bring in new cars when you have so many you haven’t even started? “I think he just wanted more and more money coming in. It was kind of like a Ponzi scheme.” Shellhouse said previously his car restoration business has resulted in award-winning street rods. The shop also offers collision repair service, and its website promises customers a 100 percent money-back guarantee. Some customers report a different experience. Bill Stouval, of New York, found the shop online. “(Shellhouse) came to pick up my car on July 31, 2009,” Stouval said

of his 1986 Chevy Camaro High Rock Z28. “He told me he would do a complete restoration. He told me when he was done it would be better than when it rolled off the showroom floor.” Stouval said Shellhouse estimated it would be a two-year project. Stouval said he paid $5,000 up front and was told it would cost $15,000 to complete the project.

Keith Shellhouse. owner of Independent Autobody and Pro Restorations, 4952 PlymouthSpringmill Road, Shelby, OH, is taken to the Richland County Jail on April 11/JAMI KINTON/NEWS JOURNAL

“I chased him down every month and asked how it was going,” Stouval said. “He was really good at ignoring my calls. I had to call from other phones, and his mailbox was always full. Neighbors said they’d see people beating on his door, knowing he was inside but he wouldn’t open it. “When I would get a hold of him, he did admit he hadn’t made much progress but had every excuse, ‘I’m waiting on parts. I’m about to get a divorce from my wife. I lost my cellphone.’ Normally, you’d say, ‘OK, well then you’re fired.’ But when this guy has thousands of your dollars, you can’t do much but say, ‘OK, when are you going to be back on track?’ “ Stouval said Shellhouse collected $9,400 from him. Judy Boyd had a similar story. “I had a 1972 Corvette and my husband at the time wanted to surprise me and have a restoration done on it,” Boyd said. “He found Keith on the Internet, but I really didn’t want someone to touch my car because I was afraid something like this would happen.” Boyd said she paid Shellhouse $9,000. “I took my car over to him in one piece and got it back in pieces,” she said. On March 16, 2002, Boyd asked

50 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

that the vehicle be stripped of all body paint, repainted and completely refinished within two years. “On Oct. 9, 2003, I went over there and found that he had disassembled it, but done absolutely nothing,” Boyd said. “He’d also left my frame out in the field and it had completely rusted.” Boyd said all calls were “short and argumentative” and emails received no response. She finally sought legal help. “I loved this car dearly. When I think about it, it just makes me want to cry,” Boyd said. Members of the Northern Ohio Violent Fugitive Task Force arrested Shellhouse at 8:30 a.m. Wednesday at his business. “Sure looked a lot different in there this time,” said Deputy Chuck Kochis, who was present in November when authorities searched the

business and seized three vehicles. “It looks like he’s actually trying to work on cars now. I’m sure he’s upset because he’s trying to build his business back up. But he dug his own grave.” Shellhouse’s wife, Tammy, who works in Mansfield, was waiting to collect her husband’s possessions at the jail. “He did nothing illegal,” she said. “They raided my house with bogus search warrants.” Shellhouse is expected to be arraigned the week of April 15. Authorities ask people with complaints to call Eichinger at 419-774-3572. Autobody News takes no position on the guilt or innocence of the persons featured in this article and all are innocent until proven guilty. This story is reprinted here by kind permission of the author, Jami Kinton, and the Mansfield News Journal.

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Continued from Page 20

CollisionMax

DRPs with insurers for most of the top ten insurance carriers. All locations offer round-the-clock towing services, on-site car rentals and free pickup and delivery. CollisionMax also offers paintless dent repair and mobile auto glass repair and replacements. Showing their concern for the community, CollisionMax sponsors the HERO Campaign, a non-profit organization created to educate the public on drunk driving and on being a designated driver. Additionally, they sponsor local little-league baseball teams. In an effort to be environmentally-conscientious, CollisionMax Continued from Page 26

Dallas Storms

phones for customers and non-customers. Stephenson says he has seen many storm sites, and every one affects him. “You go in knowing what you are going to see; you’ve seen it before,”

shops are all smoke-free. They have also converted from solvent-based paints to PPG’s environmentally responsible Waterborne paints, but they have found that matching weathered, unmaintained factory paint is difficult as customers’ cars grow older. CollisionMax shops also recycle, and in 2011, the organization as a whole recycled 827 tires, 1648 gallons of antifreeze, 927 gallons of motor oil, 293 gallons of solvent-based paint waste, 147 gallons of waterborne paint waste and 1012 tons of cardboard. When discussing the future of the industry, Marketing Manager Rich Tornetta notes that he foresees “the continued need for training on accident avoidance technology as well as everevolving structural steels and construc-

he says. “But when you get there, it’s always overwhelming.” For many carriers, claims are accumulating fast as homeowners pile up fallen tree limbs and destroyed contents and pieces from their homes. “Some are just able to get back to try and recover some belongings—see what they can salvage,” says Alley. RX-8 2012

tion.” Lately, CollisionMax shops have noticed that advanced technology, such as tire sensors, restraint systems, hybrids, etc., add delays to the simplest repairs, creating a challenge in regards to maintaining acceptable cycle times based on repair hours. Tornetta also notes that “higher deductibles and a weak economy lead to some customers spending their insurance check, instead of having their vehicles repaired, resulting in the abandonment of completed vehicles.” Also, owner Claudia Brigidi sees a major concern in the lack of trained quality labor in the industry as many people no longer want to be technicians. CollisionMax partners and employees have attended AASP/NJ for the past five years, developing and Continued from Page 49

Shannon MacDonald

as well as introducing some new SHANNON PRODUCTS including her air eraser mentioned earlier in this piece. Shannon is also teaching both custom automotive and illustration

maintaining business relationships with numerous exhibitors. The tradeshow has provided the opportunity to investigate new products and make minor equipment purchases as well as helping to plan for future major equipment purchases. CollisionMax shops have successfully repaired over 250,000 vehicles since 1980, consistently earning the industry’s highest customer satisfaction rating, a fact that Joe Tornetta largely attributes to “the expansion of our services centers in Pennsylvania and South Jersey and the strength and diverse abilities among the owners.” The partners at CollisionMax look forward to greater success in the future, hoping that their organization will span several more generations. worldwide for those looking to start a career in airbrushing or for those who are accomplished looking to take it up a notch. For those interested call Shannon’s studio in New Jersey at 310-739-4930 or ASET at 800-6285449. See more of Shannon’s art, as well as her music, at www.theshannongallery.com.

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A Decade of Innovation Turns Paint Industry Literally Upside Down by 3M Collision Staff

At 3M, scientists and engineers are encouraged to look at things differently to develop new product solutions, new technologies and in some cases, new industries. For one such scientist, the ability to look from a different perspective at a major challenge faced by automotive professionals revolutionized the industry. It literally turned the way that vehicles, airplanes, boats and other equipment are painted, upside down. “We spent a lot of time in the shop environment, working with painters to understand their challenges, pain points and everyday working processes,” said Dr. Stephen Joseph, Division Scientist, 3M Automotive Aftermarket. “As part of observing the repetitive process of mixing paint in separate containers, pouring this paint through a paper strainer into the spray gun reservoir and then cleaning up the spray gun afterwards, it struck me that there had to be a better approach. “For example, why not take the container of mixed paint and place that directly on the spray gun, thereby eliminating the transfer step? If this new cup that doubled as a spray gun reservoir could then be disposed of, we could also eliminate much of the solvent associated with gun cleaning.” Dr. Joseph spent many hours building prototypes and developing concepts around the idea of using just one cup for both mixing and spraying. Inspiration came from a variety of sources. “Things in everyday life take on a totally different perspective when you are trying to solve a particular problem,” said Dr. Joseph. “Closing the container of mixed paint off with a lid and inverting the spray gun to facilitate connection was the Eureka moment. It enabled us to develop a product design that could be attached to just about any spray gun and essentially eliminate the traditional mixing cups and spray gun reservoirs that customers were currently using. After the relevant patent applications were filed, we spent a lot of time field testing a variety of prototypes to understand what was important to our customer.” One challenge they faced was developing the cup for the system. While 3M invented both a liner-and-cup system and a linerless system, they decided to pursue the liner technology because this offered a variety of enhanced benefits to the customer, for example the

ability to spray upside down. The linered system is a closed system, during spraying it creates a vacuum, which effectively pulls the paint out of the liner, thus collapsing the liner. Being a closed system there is no air vent for paint to leak out during spraying. You also have the ability to stay 90 degrees to the panel from any angle, even upside down,

which optimizes material transfer, and helps to reduce material waste. In order to move the project forward, 3M developed and invested in much of the equipment to manufacture the parts internally, which ultimately enabled the product to be launched. “After evaluating numerous different iterations of cups, lids, adapter designs and filters, we finally determined the optimum combination,” added Dr. Joseph. “It took a number of years to progress from the original concept to the launch, but the PPS™ System quickly gained customer acceptance throughout Europe and the US.”

Industry at Point of Change What set the stage for the development and rapid growth of the PPS™ System technology were several critical issues in the body shop. The industry was transitioning from siphon to gravity fed spray guns, which was being driven primarily by the improved transfer efficiency of these guns with top-mounted cups. Shop owners were looking for more efficiency and less material waste and concerns over solvent use and disposal were growing. Painters were still pouring paint into separate containers, straining it through filters and transferring it into a spray gun. Following spraying, they had to clean the spray gun with solvent and either clean or discard the used mixing cups and filters. These conventional systems were time-consuming, contributed to volatile organic compound (VOC) emissions and continually wasted ex-

52 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

pensive paint. Although 3M’s Automotive Aftermarket Division sold a number of different products to the vehicle repair industry such as abrasives, masking products and polishing glazes and compounds, prior to the PPS™ System, 3M had essentially no sales in the paint mixing area of the shop.

Technology = Performance In its basic definition, the 3M PPS™ System is a disposable mixing and filtering system designed for use with primarily gravity fed paint spray guns. The PPS™ System eliminated the need for separate mixing cups and filters, and only the spray gun channel and adapter need cleaning since paint never comes into contact with the pot and collar. A range of threaded adapters for different spray guns provide painters with the ability to attach the 3M system to just about any spray gun. 3M™ PPS™ System product attributes include: • Same cup for mixing and spraying • Disposable liners save solvent and

time • Integral paint filter means fewer defects • System allows gun to be used at any angle • Unused paint can be temporarily saved in a capped liner • Slashes solvent usage for gun cleaning

The Impact of an Innovation Today, some 60,000 shops in more than 90 countries use the 3M PPS™ System. Annually, an estimated 20 million vehicles have some coating applied using the 3M system. After switching to the 3M PPS™ Paint Preparation System, customers report as much as a 70 percent reduction in the use of cleaning solvents, which translates to a reduction of an estimated 46.2 million gallons of solvents. This reduction in solvent use directly reduces global VOC emissions and promotes a safer and healthier workplace since operators are exposed to smaller amounts of solvent vapors. These 46.2 million gallons of solvent reduction translate to more than $330 million in solvent cost and solvent disposal cost savings over

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the past decade. In addition, the PPS™ System minimizes paint transfers, allowing operators to mix smaller quantities of paint or to easily switch colors between repairs without disposing of the paint. This can help reduce the amount of paint required for a job by as much as 2 to 4 ounces per mix, leading to significant cost and waste reductions. As a result of its success in the automotive market, 3M has expanded the product line into other industries that use spray guns, such as aerospace, marine, woodworking and signage, where customers are looking for solutions to help them manage their VOC emissions, improve efficiency and reduce waste.

A Decade of Awards – New Product Additions Are on the Horizon In the last decade, the 3M™ PPS™ Paint Preparation System has collected major awards from industry groups, environmental organizations and design leaders from around the world. • In the U.K., Awarded 2002 Product of the Year by “Bodyshop Magazine” and “Auto Trade” • In South Africa, Won the 2002 “Innovation Award” from “Automotive Refin-

isher” • In Spain, Named the “Best New Product” for 2001 by Galeria de Innovacion Motortec • In France, Won the Bronze Trophy in the Garage Equipment section of the auto exhibition Equip Auto • Selected by the Design Council in 2002 as one of its Innovation Stories • Won the 2002 Horner’s Award for Plastics • Received the 2006 SAE International Environmental Excellence in Transportation Award The development of the 3M PPS™ product family has continued throughout the decade, with the additions of new cup sizes – including the 3 oz cup for the EPA Rule 40 CFR Part 63 – Subpart 6H – and complementary products like the 3M Accuspray™ System and the 3M™ PPS™ Sun Gun™ Color Matching Light. Additional product and solution announcements are planned for 2012 to continue the industry innovation and expand the 3M platform. For more information about the 3M™ PPS™ Paint Preparation System and the decade of innovation, visit: www.3MCollision.com/PPS.

Body Shop Owner Eddie Lopez Shot Dead in Early, TX

Authorities said a heated dispute over a woman left a Brownwood body shop owner dead March 12 after he was shot at least six times in the parking lot of an Early doughnut shop, reports Denise Blaz, writing for the Abilene Reporter-News. The shooting marked the city’s first homicide in at least four years, officials said. Eduardo “Eddie” Lopez, 45, was shot shortly before 10 a.m. Monday while sitting in his idling Cadillac SUV in the 900 block of Early Boulevard, said Brown County Sheriff Bobby Grubbs. Lopez was owner of two Brownwood businesses: Eddie’s Auto Body Repair and the bar Tequila Nights. Rene Torres Pinon, 32, of Stephenville, was charged with murder after turning himself in at the Brown County Law Enforcement Center, telling a deputy he had committed a “crime of passion.” “The subjects had an ongoing conflict, I guess, and it appears due to the circumstances that they came together right there this morning,” Grubbs said. “I think they had a verbal argument going, and it appears that one of them had a gun, pulled it and did some shooting.” Grubbs said Lopez was shot multiple times with a .40-caliber Taurus

semi-automatic handgun, including once in the face. Four bullet wounds were found along Lopez’s rib cage and another bullet was found in his chest, Grubbs said. Early Police Chief David Mercer said Pinon turned himself in as authorities were en route to find him. Mercer said a caller had informed authorities that Pinon was sitting in his gray Chevrolet Camaro at his workplace, a Brownwood manufacturing plant. By the time authorities arrived at the plant, he had turned himself in, Mercer said. The broad daylight crime, Mercer said, marked the city’s first homicide in several years. “I’ve been here four years, and there hasn’t been one since I’ve been here,” Mercer said. “We’ve had aggravated assaults with handguns, but not like this. Luckily, no one else was hurt, no one that was just driving by.” Some patrons inside the doughnut shop witnessed the shooting, he said. “The only people that saw were in the store; they heard the shots. One of them looked up in time to see maybe a couple of more shots being fired, and then he saw him (the shooter) walk back to his car.”

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John Wallauch INTERVIEW by Ed Attanasio

John Wallauch, 75, of Granite Bay, has been appointed chief of the Bureau of Automotive Repair in California by Governor Brown, replacing Sherry Mehl. Wallauch brings over 50 years of experience working in the public and private sectors on issues involving air quality and consumer protection. He has served as program manager for the California Air Resources Board, Smog Check Program since 2007. He was also the executive officer of the Inspection and Maintenance Review Committee for the Bureau of Automotive Repair from 1999 to 2002. The BAR Chief position requires California Senate confirmation and his annual salary is $118,620. Wallauch is a Republican. Many auto repair facilities look at the state’s Bureau of Automotive Repair the way a hunter looks at the Fish and Game Department. Necessary, needed to be treated with respect, but also a potent force that can snare an unwary, and perhaps unwitting operator. In the spirit of keeping the lines of communication clear and open, we sat down with John Wallauch, to learn what shops can ex-

California’s NEW CHIEF of Bureau of Automotive Repair

pect from the BAR under his leadership. Although he’s only in his first month in the job, we asked him to assess his goals for the organization and specifically how will he be approaching the collision repair industry.

ABN—How have you prepared for this job during your career span, and what have you learned about the job since being appointed on February 13, 2012?

JW—My enthusiasm for this position could not be higher. I’ve learned that I’m basically young at heart. The appointment was both a surprise and a huge honor. As you may know, I worked at BAR many years ago so coming back as Chief is very special to me—it’s a fulfillment of a lifelong dream. At the California Air Resources Board, I was working on the Smog Check Program issues and have been aware of what the BAR has been doing over this period of time. The Bureau’s staff and I agree that we are on the same page when it comes to serving the state, all of our car owners, and industry as a whole. Our main focus is con-

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During the last couple of years, some manufacturers have launched new automotive masking tapes. These products have the main characteristic of being slightly thinner to what we ac-

tually have on the market. These new masking tapes have a total thickness (including the adhesive) of less or around 6 mils. At the beginning, many users in the automotive industry didn’t take the chance to use these new masking tapes in their body shops, thinking that this will be more complicated to use and/or hard to remove. But time and word of mouth (very effective in this industry) demonstrates that this

new thinner masking tape can largely do the job. The price point has largely participated in the success of the new thinner masking tapes: not only the job is easier and quicker to do, with no seepage or bleeding, but the price is around 10-15 % less expensive that the common products that exist on the market. The thin paper masking tape is also very user friendly for these who uses it for paint stripping jobs Another advantage is the ecological side of these natural rubber masking tapes: the adhesive is natural with a very limited impact on the environment with no chemicals, also a thinner paper means less waste. Vibac (www.vibac.com) is one of the companies that have first launched this natural rubber masking tape. The product can be used in higher temperatures and leaves no residue when removed. The product was first launched in Europe (where the use of waterborne paints is more common) before being launched in the Americas. In both parts, the success was au rendez-vous! Even other masking tape suppliers are working on similar products!

54 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

sumer protection which is embedded in everything we do. By forging a team approach, we can get things done in an effective and timely fashion. I know that my predecessor made a lot of beneficial changes during her tenure, but my way of doing business is a little different. I strongly believe that all open employment positions with BAR should be put to bid with jobs posted on VPOS, making them available to anyone who is qualified and wants to apply. That way, it is an accessible process where everyone has a chance, the results of which will be hiring the best possible people for each vacancy. Overseeing a $188 million annual budget with 640 employees and 12 field offices is a large job. We oversee the activities of 5,177 companies in California that are registered as body shops. I’ve held several positions overseeing diverse company projects that were dispersed over large geographical regions so I am comfortable with keeping communication open and inclusive. ABN—In the late 1990s, you served as

the BAR Interim Executive Officer for the Inspection and Maintenance Review Committee. You also served as the Bureau’s Deputy Chief of Field Operations and Engineering Division, being instrumental in implementing California’s first Smog Check Program. Do you believe that your familiarity with BAR will make it easier for you to achieve your goals?

JW—Most definitely. One of my primary goals is to get the Smog Check Program in this state working as it should. With the California Air Resources Board, I was assigned as the liaison to BAR so I have been in the loop for quite some time. We met almost weekly with the people from BAR so I was in a position to foster those relationships during that period of time. This way, I was aware of what programs and projects BAR had on their front burner.

ABN—How does BAR plan to deal with the number of auto body shops that are unlicensed? JW—We are pursuing unlicensed

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shops by using a tool called Cite and Fine, which authorizes us to either cite or fine them, depending upon on the gravity of the violation(s). The issues run the gamut from the guy who offers to repair brakes in a consumer’s driveway to repairing vehicles that have undergone a collision with misrepresentation and substandard work. When we locate unlicensed facilities, we usually give them a notice that they must be licensed to perform the work they are doing. We give them a specific period of time to become licensed. After that period of time, we penalize them. During this recession, you may be seeing an increase of unlicensed operators because so many people are doing what they can to make ends meet. Much of unlicensed activity is driven by the hard-hitting economy. However, unlicensed activity negatively impacts the law-abiding shops as well as the unsuspecting consumers who are doing business with shops that are illegal. Any time you come across such a business, please contact us so we can look into it immediately. ABN—In a recession, do you see more body shops cutting corners to save

time and capture more revenue?

JW—With the past few years, the BAR has been tracking more salvage activity which falls outside the law. Cars that are considered “totaled” by insurance companies are often purchased by salvage companies, fixed up, and re-sold. This type of activity is becoming more prevalent. We have ways to identify these “midnight shops,” some of which are in the unlicensed used car business. They are creative in washing paperwork and “shopping the cars’ titles” back east and then registering them in California. That way, they lose the salvage title to make it look legitimate. We need our body shops to help us identify these kinds of violators. We warn consumers that if someone offers them a car, which is well below market price, be suspicious because there are no assurances for these vehicles. If the asking price is too good to be true, it probably is.

ABN—When your predecessor, Sherry Mehl, took the job, one of her promises was that the BAR would be a kinder and gentler organization. Will you continue to do so, and how will you accomplish it?

JW—One of my first priorities was establishing an open door policy. It is important to stay connected to our staff members so that communication is a twoway practice. I find this helps morale and makes everyone part of the team to contribute to and achieve our goals. My message is “let’s have full disclosure with industry and deal fairly with people at every level.” I believe that full transparency, including written estimates, ending “Five O’ clock surprises,” and getting prior authorization before raising the price have gone a long way to reducing consumer complaints. Full disclosure protects the shop and vehicle owner because if the shop uses aftermarket parts, they must reveal this to the consumer. It is a hot issue because it involves four parties: the shops, the consumers, the parts suppliers, and the insurance companies. All of our complaints are proactively pursued and closed within 45 days of filing. We are proud of this turnaround time.

ABN—Many people have suggested that the BAR should conduct industry rate surveys in order to guarantee objective surveys that can be trusted by

all parties involved. Is this plausible in your opinion?

JW—BAR is not an accounting organization per se, but we certainly have the authority to create new regulations. This is a subject that we can discuss further. We might consider subletting the survey to a private firm that does actuarial work. ABN—What are your top priorities relating to the collision industry?

JW—When I last worked at BAR, the auto body industry was not part of their jurisdiction so I am brushing up on the issues impacting the auto body industry and how BAR can make a difference. As I become more familiar, we can set goals and objectives that can be flexible over time. Right now, my primarily objective is to implement the changes in the Smog Check Program as a result of the enactment of AB 2289 and its regulatory package. BAR exists to assure the people of California that we are doing everything possible to ensure consumer protection with all of their contacts in the automotive repair industry.

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Tony Lombardozzi INTERVIEW by Chasidy Rae Sisk

Sharing the Message with CCRE President Tony Lombardozzi

If you’re in the collision industry and are not familiar with the Coalition for Collision Repair Excellence (the CCRE), and you consider yourself a truly independent operator in the business, you need to look them up (theccre.com.) During CCRE’s legal seminar in Philadelphia on March 30 and 31, 2012, CCRE President Tony Lombardozzi repeatedly demonstrated himself to be a dedicated proponent for independence in the collision repair industry and a valuable source of information. Fortunately, he took the time to chat with me so that I Chasidy Rae Sisk might have the opportunity to share some of his wisdom with a wider audience of Autobody News readers. See my column on p. 22 of this issue for more on the CCRE. I was curious about how Tony originally got involved with CCRE. Back in 1996, Tony felt that the national collision associations were not looking out for the consumers’ best interest or the benefit of the collision repair industry as a whole. So, he researched CCRE and attended a meeting. Tony was impressed with the organization because they represent the portion of the industry that says they should be able to operate without third-party influence, and also, the shops involved with CCRE are fiercely consumer-oriented. CCRE helps member shops and other shops across the country through education. Their legal seminars focus on helping repairers understand what an insurance policy entails compared to a repairer’s contract with the consumer, and that there is no correlation between these two contracts. They also hold seminars on business management where they teach collision repair facilities about the cost of doing business, property business management and how to operate a profitable shop in an ethical manner. Additionally, CCRE helps independent shops learn about marketing tactics so that they can compete in the industry. In regards to CCRE’s legal seminar in Philadelphia on March 30 and 31, Tony notes that this seminar

yielded more positive feedback than any other seminar CCRE has held, increasing their organization by several new members.

Tony Lombardozzi

Tony believes that the information presented at the seminar is important because “the majority of this industry has a misconception about who the real customer is.” He goes on to clarify that many repairers have been trained to believe that they are just an extension of the insurance industry and will not be able to survive without allowing insurers to dictate the shops’ business practices. But that is not true. The collision repair industry is a separate entity that has nothing to do with the business of insurance unless a repair facility signs a DRP contract. Otherwise, there is no relationship. Tony notes that without pressure from insurance companies to accept their methodology of how this industry should work, “we wouldn’t be in the situation we’re in. Instead of understanding that we should be doing business as independent business owners with no influence by a third party, we allow insurers to dictate how we’re going to do business, and that’s a real problem.” Tony cites many collision repair conferences as part of the problem because the majority of guest speakers are from the insurance industry and the conferences are heavily influenced by this third-party presence. Collision repairers should not go to an event for the collision industry and be told by insurance companies how the shops will need to do business in the future. When asked about the most important message of the CCRE seminar, Tony stresses “basically what they should realize is no one else is going to take this industry back, except the repair shop owners themselves.” The

56 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

insurance companies definitely will not volunteer to relinquish control, so the best thing that repairers can do is step outside the box, understand the CCRE concept, compare it to what they are doing now and see if the shops are happy with the status quo. If they are okay, there is no reason to complain. Unfortunately, many collision repairers are afraid to look at the issues because they fear what they may find. According to Tony, “I don’t know if we have enough time to recover the industry that we gave away because it took thirty years to give it away and you’re not going to take it back in one year… The industry remains in a hole because of the fact—I mean, we’re stagnant, but fees paid to body shops have been stagnant for years—the reason we can’t get out of stagnation is because we’re allowing ourselves to be governed by a third party that has no interest in making us successful… People in this business are beginning

to see that there’s no way out of the box unless they make changes. Hopefully, they’ll realize that at a faster pace than they have in the past, and you’ll see a big turnaround in this industry.” Tony believes that a segment of the collision repair industry believes in the system the way CCRE does, and he hopes that those who attend CCRE’s seminars will take the information they learn, study it, practice it, and network with other repairers to encourage them to look into the CCRE Philosophy because it is a better way to do business. He insists that by following the methods learned at the seminar, repairers can become more profitable while streamlining production output. The problem is that the collision repair industry as a whole has been brainwashed by insurer buzz words such as “making things lean,” “cycle time” and “rental days.” Insurers have lured the industry into using systems

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that are supposed to increase the shops’ accuracy and efficiency, but all of that money saved in efficiency ends up going to the insurers in the form of underpaid services. Collision repair facilities never see that added profit. Meanwhile, shops continue to bill at the same rates that they have been billing for quite some time. If a repair shop adds a $50,000 piece of equipment to their overhead to enable them to be more efficient and repair more cars, the insurer reaps the benefit of those savings by forcing the shop to accept a lesser value for their services. Usually in business, the business owner makes an investment and gets a return on that investment, yet that is frequently not the way things work in this industry due to third-party interference; however, without this influence, collision repair shops can work on less cars and increase profitability. When I questioned Tony about why many shops seem indifferent or unaware of these issues, he told me “what’s happened is, most of the younger people in this business have come up through the ranks believing the insurance industry is their partner. They don’t know there’s another side

to this business.” Frequently, industry events and meetings discuss making business decisions with their “insurance partners”, propagating this incorrect attitude toward the repairers’ relationships with insurance companies. Many collision repairers are never made aware that there is another side to this industry and a better way to do business which is removing the third-party influence from the equation. Through their direct repair programs, insurers teach repairers that they will always have work and never need to advertise which makes it seem like the insurance company has a right to be involved since the shop has an agreement with them; however, these repairers are never exposed to the other side of the collision repair industry, and when they try to learn about shop independence, they are threatened with losing their place in the program. “That’s called big business intimidation,” Tony points out. Too often, repair shops do not explore the option of independence because fear is the largest thing driving the collision repair industry. Shops fear that they will be blackballed or steered

against if they take a stand toward independence. They fear losing work or going out of business completely, but Tony insists that there will always be work and these shops are failing to realize that their services are needed. They are taught by insurers that they will be rewarded for behaving as they are told and punished for going against the grain. The most important thing that independent shops have to learn is that they need another way to market their business. Tony believes that collision repair facilities across the country should be concerned with redirecting the way the industry is run because if they look at how bad this industry is compared to how it was fifteen years ago, they will see a major and disturbing difference. Instead of asking about the past, present and future of the industry, many repairers only ask what the insurance company wants them to do so they will continue to receive work, but at this rate, all that many shop owners will be left with is the real estate that they own. Tony recommends researching manufacturing industry statistics and looking at the collision repair industry which is at the bottom.

With inflation, the monetary value of a repair has decreased over time, but no one accounted for the disparity this causes. Many repairers believe that they cannot raise their rates because the insurance companies will not allow it. Tony warns, “If inflation changes and begins to escalate, you’ll see a lot of body shops go out of business. Because we’re too far behind. We can’t beat economics.” This is why he advises repairers to do their research and plan ahead. Though the CCRE would like to fund consumer education commercials in the future to inform consumers about the issues in the industry and their own rights, CCRE refuses to be influenced by any third party. The insurance industry has influenced every aspect of the collision repair industry, he laments. “Everybody’s got their hands in our pockets except us.”

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www.autobodynews.com www.autobodynews.com | MAY 2012 AUTOBODY NEWS 57


Rich Evans CoSponsors Fundraiser for Baby Cancer Foundation by Melanie Anderson

Autobody News columnist Rich Evans, owner of Huntington Beach

Bodyworks and award-winning painter and fabricator, co-sponsored an exclusive fundraising event held April 13 at the Lush Lounge in Long Beach. ‘The Party,’ co-hosted by Motor Media and Swipe 4 The Kids, raised awareness and $2200 for America’s Baby Cancer Foundation and the Orange County chapter of JDRF (formerly known as Juvenile Diabetes Research Foundation). The guest-list

only event featured a silent auction which included several unique items, including autographed footballs from former NFL stars Vince Ferragamo and Mike Lansford, autographed guitars and luxury watches. Spinning eclectic tunes for ‘The Party’ was guest DJ Chris Vrenna, formerly a drummer for Nine Inch Nails and keyboardist for Marilyn Manson. In 1994, Vrenna won a Grammy for his live performance with Nine Inch Nails at Woodstock.

Patricia & Rich Evans with friends

About the Charities

Racing personality Gordon “Lug Nutzz” Stewart, who has covered extreme sports, entertainment and the music industry on several radio and TV networks, hosted the party with his own brand of charitable enthusiasm.

America’s Baby Cancer Foundation was founded in 2000 in Long Beach, CA as Sebastian’s Baby Cancer Foundation by Bernard and Antonia Hicks following the loss of their child, Sebastian, at the age of 19 months. Sebastian was born with cancer of the neck and brain and during his short lifetime, his parents realized the desperate need for research, aid and education for families faced with baby cancer. ABCF is devoted to children and their families suffering from child-related cancers. Cancer is a leading cause of disease-related deaths among children in the United States and increasing every year. In addition, the number of cases of babies being born with cancer is on the rise. For more information, see www.babycancer.org. JDRF has worked to improve lives and cure Type 1 diabetes for the past 40 years through research funding and advocacy. Its mission is to discover, develop and deliver advances that cure, better treat and prevent Type 1 diabetes. Last year, the foundation dropped its formal name of Juvenile Diabetes Research Foundation because 85% of those in the U.S. with Type 1 diabetes are adults. JDRF is an organization for all ages and all stages of the disease. For more information, see www.jdrf.org. 58 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Special guests included former NFL stars Mike Lansford (barefoot kicker for the Rams), former Raiders player Jim Weatherley and Lance Zeno of the Green Bay Packers, NASCAR and off-road racer Felix ‘Nighthawk’ Giles, Chef Steve Cassarino, Diggity Dave with MTV’s Pimp My Ride, and 11-yearold race car driver Brandon 11-year-old race car driver, Brandon Weaver Weaver of Bakersfield, CA. Custom car designer Rich Evans starred in the first season of Speed Channel’s Car Warriors and has several other TV credits, including Chop Cut Rebuild, Monster Garage and Chopper Nation. Rich is currently shooting a pilot for a new show which DJ Chris Vrenna and emcee Gordon “Lug Nutzz” Stewart he’ll produce—a doceration that working with their hands umentary about car building and learning something new is cool,” around the world. Evans said. “As a car builder, I hope to inEvans, his wife, Patricia, and spire and influence the younger gen-


their three children, Dylan, 20, Lytra, 12 and Drahcir, 8, have been hosting Christmas parties and other events for America’s Baby Cancer Foundation (www.babycancer.org) for the past

Chef Steve Cassarino with Rich Evans

several years at the shop. The kids visit with Santa, receive gifts and sit in several designer cars. “Our parties get the kids out of the hospital for the day and they get the chance to sit in really cool cars,” Evans said. “We try

to help them get their minds off their illnesses for a few hours and they look forward to coming to the shop and seeing the cars. My wife and I are very involved with America’s Baby Cancers Foundation because the children who die of this disease are very young and don’t get to see a glimmer of a long NFL alumni Jim Weatherley and Chef Steve Cassarino life. We want to bring some happiness into their and the diseases that affect us. Fightlives. We want to support ing cancer makes me feel grounded them, encourage them and and appreciate life more.” make them feel special. “I do as much charity as I can to help bring awareness about disabilities and diseases,” said Evans. “People don’t recognize or slow down enough to pay attention to certain diseases until they or a loved one get it. For me, I try to get more involved and learn as much as I can about the body Felix “Nighthawk” Giles tC 2011

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PIE Conference

Mitchell International; Bruce Cooley, DuPont Performance Coatings (DPC); and George Avery, State Farm Insurance. They each offered valuable insights into key industry trends impacting collision repairers and insurance business models. Steve Trapp from DPC also presented attendees with scorecard improvement. The conference also featured an informative discussion by Dave Smith of Enterprise Rent-A-Car on human resource insight. Scott Bragg of Marketing Associates closed the conference with a presentation about inbound marketing and digital strategy. “Standox® has been hosting PIE Member Conferences for over a decade. It allows our key customers the opportunity of three days of networking, learning and relaxing,” said Keith Sena, brand manager. “Our focus with the conference is to give our customers a de-

Phillis Lane, co-founder and President of America’s Baby Cancers Foundation, attended ‘The Party’ which was held over the Long Beach Grand Prix weekend. “Rich and Patricia Evans are once again providing America’s Baby Cancer Foundation the opportunity to broaden awareness of what is a little discussed disease that affects children. Our organization and the families we help are most appreciative of their support.” Co-host of the ‘The Party,’ Swipe 4 Kids, is a brand new program that gives 50% of merchant electronic service fees towards endowing art, music, sports and educational enwww.autobodynews.com hancement programs at local schools. For moreCHECK information, see: IT OUT! www.swipe4thekids.com.

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tailed review of key industry trends that will affect them in the See the N coming year, give them some specific tools that they can use to improve their businesses in areas that they’ve said are www.autobodyn important to them—and of course, put a group of smart business people in the same room to allow them to learn from each other.”

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 59


How Blended Nitrogen Improves on Dr. DeVilbiss’ Invention by Tom Beck, Futurecure

One of the most radical tools and equipment improvements to the paint shop in recent times has been the gravity fed HVLP spray gun. So much more efficient than the old siphon guns, that they are now an EPA requirement. Everyone, including the EPA, along with shop owners, their painters, and their paint suppliers, recognized the HVLP improvement in transfer of paint, from the gun, to the vehicle.

The sole purpose of a spray gun (atomizer), since it was invented by Dr. DeVilbiss in the 1880s, was to transfer a liquid to a near gaseous state for better area coverage. Dr. DeVilbiss, a nose and throat specialist, developed a medication for his patients and subsequently invented the atomizer to better apply his medicine to the patients. Dr. DeVilbiss realized that the smaller the liquid droplets could be atomized the better the area coverage and the LESS material (medicine) would be required. In those days, over medicating was a serious, sometimes life threatening, concern. Fast forward to today...and the auto painting industry...we pay for a full can of paint, we want to get as much of that paint on the vehicle as possible. Any paint discharged from the gun and not transferred to the vehicle is wasted and collected, as overspray, in the booth exhaust filters. Therefore...it stands to reason, a better transfer ratio equates to longer filter life, and therefore, less filter costs. Now, here’s where the “Blended Nitrogen” comes in. Nitrogen “Atomizes” far better than compressed air.

The paint droplets from an HVLP gun using blended nitrogen are much, much smaller than droplets from a gun using compressed air. Coverage from a gun using blended nitrogen sprays like “BBs” compared to the “Golf Balls” coming from a compressed air gun. One of the reasons for this is that nitrogen is an “inert” gas, meaning it will not expand or contract with temperature changes (especially dew point / HUMIDITY, changes). Therefore, “Blended Nitrogen” is particularly helpful for drying waterborne paint in adverse, high humidity, conditions. Solvent or waterborne.. .blended nitrogen will get more paint on the vehicle and less in the floor filters. We’ve heard about the virtues of nitrogen in other mediums. Over the past few years auto tires, especially race car tires are filled with nitrogen instead of compressed air because the nitrogen will not expand as the tires get hot, thereby changing the tire pressure...a half pound change of pressure at 200 MPH can greatly change a race cars performance. More recently Shell gasoline is now “enriched” with nitrogen. Shell has proven that by adding the nitrogen their gasoline will “atomize” better and burn more efficiently for better mileage and a cleaner engine. Other petroleum companies are sure to “jump on the nitrogen band wagon”. So where do you get the nitrogen from? Not from the guy who supplies the acetylene and oxygen for your touches. Actually, nitrogen is free. It’s, in the air, it’s all around us. You see, an air is made up of 78% nitrogen, 21% oxygen, and some other trace gases. All you need to get it is what’s known as a “Nitrogen Generator” machine. A machine specifically designed for wet painting application. A nitrogen generator (about the size of a small file cabinet) actually extracts the nitrogen from your compressed air supply and delivers it to the painter thru a special air hose. The unwanted gases are discharged back out to the atmosphere. The machine is mounted close to the paint booth for best results. So what kind of results can be expected...We tested the most popular “Blended Nitrogen” system throughout the Metro New York tri-state area with astounding results. However, before we look at the results, let me

60 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

touch on why you constantly hear the words “Blended Nitrogen” ... As with most things there can be a down side. Extracting “pure nitrogen” can consume a tremendous amount of compressed air and most shops are not only ill equipped, compressor wise, but don’t want to pay the tab to gener-

ate all the compressed air necessary for pure nitrogen. Pure nitrogen can require as much as 3 times the compressed air to get 1 part of sprayable nitrogen. “Blending” nitrogen machines are almost at a 1 to 1 compressed air to nitrogen ratio, with comparable results. Therefore... “Blended Nitrogen” is the most cost effective way to go.

Back to the results...All testing was done within “Actual Shop” conditions and not under “Laboratory” conditions for the most accurate “as in real life” results. We spent weeks, upon weeks, in 10 different shops. Most spraying water, some solvent, spraying a wide variety of the major paint brands. All had full down draft heated booths, some had multiple booths. The tests were as scientifically standardized as possible. The tests were performed by the individual shops painter using the painters personal HVLP gun on actual “work in process” repair jobs as they came thru the shops door. Time studies were compiled on an average “per panel” basis for application of material time...as well as the flash time between coats. It covered a wide variety of materials including water and solvent base coats as well as clear coats. Material transfer was measured in grams applied. In each shop an average of 5 vehicles were painted with compressed air, than the painter unplugged the compressed air line See Blended Nitrogen, Page 63

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Insurer Report Card in Oregon Ranks State Farm #1, Farmers and GEICO Replace Allstate at Lowest Rank State Farm and two smaller Northwest-based auto insurers continue to be among the best at taking care of their customers after an accident. And some of the other larger, best-known insurers – including GEICO, Allstate, Farmers Insurance and Safeco – are among the worst. That was the finding of the latest survey of businesses that interact with auto insurers on behalf of vehicleowners every day: Oregon collision repair shops. “Collision repair shops on a daily basis see how various insurance companies take care of Oregon drivers after an accident, so we feel it’s worthwhile to ask how they rate the various insurers,” said Barbara Crest, executive director for the Northwest Automotive Trades Association (NATA), which conducted the survey of Oregon shops. “We believe their views will be helpful to insurance companies and consumers.” About 600 collision repair shops throughout the state received the sur-

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vey, which asked them to grade the Top 22 auto insurers in the state in terms of how well each company’s “policies, attitude and payment practices ensure quality repairs and customer service for Oregon motorists.” This is the sixth time the association has conducted such a survey since 2004. Crest pointed to a number of items of interest in the findings of the latest survey: • Repairers have consistently given the same three companies a grade of B or better all six times the survey has been conducted. State Farm has continued to hold on to the top spot, receiving an overall grade of B+ again this year. Two Northwest insurance companies, Oregon Mutual and Mutual of Enumclaw, maintained a grade of B to again finish just below State Farm. State Farm is the largest auto insurer in Oregon: Mutual of Enumclaw and Oregon Mutual are ranked 12th and 13th, respectively. • Only two insurers, Allstate and Liberty Mutual, saw their grades improve from the previous survey. Allstate improved from its last place finish last year with a D+ (its grade since 2008) to a C- this year. That helped Allstate nudge up past GEICO and Farmers, whose grades dropped, making them the only two to receive

D+ grades this year. But Farmers, GEICO, Safeco and Allstate remained as the four lowest-ranked insurers as they were last year. • Other insurers seeing half-grade drops this year were Oregon Mutual, Travelers, Unitrin, Country Companies and 21st Century (formerly AIG). • California Casualty is the most improved insurer over the years the survey has been taken. In 2004, the company earned a C- and was ranked 16th among the insurers. It has improved over the years to this year’s C+ and fifth-place finish. • One-third of shops gave Farmers a “F,” the most failing grades received by any insurer. (By comparison, GEICO, the second-tolowest graded insurer received half as many Fs as Farmers.) State Farm received an “A” from nearly-two thirds of shops, twice the number of secondplace finisher Oregon Mutual. • In most cases, the grades given a particular insurer from shops involved in that insurer’s direct repair program (DRP) were higher than those given by shops that are not part of that insurer’s program. This was particularly true with Safeco and Farmers; their DRP shops gave them grades of B- or better while non-DRP shops gave these same insurers grades of D+. But even Progressive and 21st Century direct repair shops gave those insurers only average grades of C+ or lower. “Collision repairers say the insurers receiving the highest grades – which includes both larger and smaller insurance companies – do the best job of taking care of Oregon drivers after an accident,” Crest said. “We hope consumers will take these ratings into account when choosing an auto insurer, and that insurers that received lower grades will work to improve their performance.” More than 70 shops throughout Oregon responded to the survey.

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 61


Collision Repair Estimates—Excellence Now Required by Steven Feltovich, Manager of Business Consulting Services, Sherwin-Williams Automotive Finishes

“What can we do to improve the customer experience and our own profitability in a fiercely competitive market?” Faced with demanding customers and aggressive insurance companies, body shop owners around the world are forced to confront this question every day. Leaders in the collision repair industry say that an accurate estimate is critical to the success of their organizations. In fact, nearly every shop I have worked with over the past year has emphasized the importance of the estimate or, as they commonly referred to it, the “blueprint” for damage repairs. Many shops have moved toward a more comprehensive damage assessment process, which consists of initially identifying all of the damage, both visible and hidden. This approach provides tremendous value in terms of cycle time reduction Steven Feltovich alone. There is so much lost time and money in the redundant steps associated with traditional visible damage estimating. Consider the amount of time consumed by ordering parts multiple times per repair order, writing supplements, rescheduling delivery dates, extending rental car provisions and reallocating technicians to vehicles they can work on. Ultimately, this creates an environment of internal friction without any positive energy being directed toward process improvement. Some might refer to the improved process as “blueprinting,” “damage analysis,” or “repair planning.” Regardless of what you decide to call your comprehensive damage assessment process, the fundamentals remain the same. So, let us set out on our journey in search of how to achieve estimating excellence. We will begin by answering one significant question. “Why does traditional estimating still exist if it is so ineffective?” You can probably come up with several answers to this question on your own. Many of us were taught to do it this way. Man-

agement within some shops would claim that their customers expect a traditional estimate. Some would say that insurance companies demand a traditional estimate as the preliminary estimate. Often, we simply fear the attempt to try something new. Many people in our industry have proven that these obstacles are not insurmountable and there is a better way to assess collision damage. The real winners in collision repair are implementing and refining the “blueprinting” process. This process is designed to lower the shop’s overall costs while increasing productivity. Does it work? Absolutely. The objective here is a 100 percent complete damage assessment before loading the vehicle into the production area. The result is phenomenal: • More customer confidence in the shop’s capabilities • Reduced cycle time, predictable delivery dates • Increased technician touch time per day • Less administrative work All of these benefits are achievable with a process-driven damage assessment program in place. The correct process will reduce the common errors, variations and redundancies which are inherent in traditional estimating activities. When I am involved in a facility analysis to determine the root cause of scheduling problems, I frequently find the cause to be directly related to an inaccurate initial estimate. Since jobs are scheduled into the production area based on labor hours and the parts that are needed, inadequate estimates prove disastrous for shops using estimates as a guide for workshop scheduling. If the estimates are half right with what you consider to be a week’s worth of work you will have actually scheduled two weeks of real work into a one-week time slot. This creates bottlenecks and fires within your business that consume you and your staff, slow production and stop your business from ever moving forward. Due to the weaknesses of traditional estimating, we have become an industry of excess capacity in order to compensate for the flawed estimating practices ¾ more facility space and

62 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

equipment than we really need. And why do we need that extra space? That’s right, so we can park all of those dead cars in it! You know those dead ones which are waiting for parts, supplement approvals and/or available technicians. How much does it cost

your business to park and store those dead vehicles on the expensive real estate of your available production floor space? In some cases, the vehicles are even parked on the frame machine for a day or two due to a deficient estimate. Ultimately, our customers and insurance partners are the victims of our broken and failing practices. We must implement a comprehensive damage assessment process designed with one goal in mind—get it right the first time. This requires getting the parts, number of labor hours and costs for materials right the first time and every time. One recent trend that I’ve observed is some shops have begun to make their frame repair pulls before completing the final damage assessment. This arrangement provides outstanding accuracy in the areas of parts orders, labor times and other associated products and services needed to complete all of the repairs. There must be a higher level of awareness of the estimate’s importance and its impact on our business. The estimate directly affects the following listed items: 1. Revenue 2. Profits 3. Negotiation Practices 4. Workshop Scheduling and Loading 5. Repair Processes 6. Cycle Time 7. Workshop Flow 8. Production Efficiencies 9. Finished Product Quality 10. Customer Satisfaction and Referrals

11. Insurance Company Relationships 12. Organization’s Reputation 13. Employee Compensation/Morale At this point, you will begin to understand the motivation that some shops have for pursuing accurate, estimating excellence. Perhaps the time has come to change our old habits and begin to design and implement some new “lean” processes, starting with the estimating tasks and activities. You will soon come to find that your entire operation can be transformed by simply taking control of the estimating process—this is truly the “blueprint” for profit improvement. Removing the obstacles to implement a comprehensive damage assessment process is not easy. If it were, every collision repair shop in the country would have already embarked on this new frontier. But in today’s marketplace, an effective estimating process is no longer a “wish list” item. It is a crucial component in order to gain a substantial competitive advantage and remain a profitable organization. Several shops are now posting a 40 percent decrease in their key-to-keys cycle time, which is primarily attributed to their new damage analysis procedures. Without adequate and appropriate training for the body shop management staff, estimating vehicle damage will continue to be a disorganized and underutilized tool. Our research and experience confirms that the collision repair industry lacks the skill and knowledge base in regard to estimating: only three percent of the front-line estimators have had any formal training within the last five years. However, with training and some exposure to a more complete process, it is far more likely to yield positive results—for the collision repair center, the insurers and most importantly the customers. The collision repair industry has many training resources on this subject. You’ll find them advertised in the trade press, and promoted by suppliers and automotive associations who are willing and ready to help your organization improve.

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Major ‘Chop Shop’ Busted in Jackson, MS, Owner Arrested, $500K in Nissan Parts Found Police have uncovered a huge cache of parts stolen from a nearby Nissan plant, and from other sources, at a Jackson auto body business. Following tips from residents, officers raided Precious Automotive Auto Body Restoration, on

Some of the $500,000 in Nissan Parts found at the Jackson, MS, body shop labeled Nissan

Gault Street, just off Highway 80 in Jackson, on April 18. Authorities said a majority of the merchandise came from the Nissan Plant in Canton. Crates full of Nissan parts and components were stored inside the building. They include catalytic converters, airbags, wire harnesses, batteries and headlight assemblies. Several stolen ve-

hicles were also recovered. J.P.D. detectives arrested the building owner, 48year old Eric Brown. He is charged with operating a chop shop, auto theft, receiving and possession of stolen property and marijuana possession. “Detectives including officers arrived on scene and noticed approximately half a million dollars worth of merchandise that was from the Nissan production center,” said J.P.D. Officer Colendula Green. “We did surveillance on the property, came back out here today, did a chop shop inspection and from that inspection it revealed that there was items out here taken from different areas. Most items we discovered came from the Nissan plant,” said Sgt. L.C. Russell with the Auto Theft Division. “Nissan has been made aware that a significant amount of automotive parts were recovered today as part of a bust at an illegal chop shop operation in Jackson. We are cooperating fully with the Jackson Police Department, which is to be commended for their efforts. Nissan is supporting the investigation efforts and will continue to ensure the

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highest levels of security throughout our operations,” said Nissan North America Inc. Corporate Communications Manager Steve Parrett. Investigators would not confirm if the thefts were an inside job at the Nissan plant, but said more arrests are expected. “The items up here from Nissan were originally packed in Nissan packaging with tracing numbers still on them. At this point we don’t know how they got up here,” said Sgt. L.C. Russell. Jackson police have plenty of unanswered questions: • How did the new auto parts end up at the shop? •Who put them there? •Who were the potential buyers? The merchandise, which included catalytic converters, airbags, headlights and batteries, still had the Nissan tracking codes on them and were still in cartons and crates when they were found at Precious Automotive Auto Restoration at 5030 U.S. 80W, Sgt. L.C. Russell said. Officers showed up at the business

to make sure it was operating legitimately after getting several tips about a possible chop shop there, he said. “We primarily went to check their operation license, but when we checked the license we found some other things,” he said. Shop owner Eric Brown, 48, was charged with multiple counts of receiving and possessing stolen property, as well as a misdemeanor marijuana possession charge, JPD spokeswoman Colendula Green said. Nissan officials told police they had concerns that some items could be missing, Russell said. However, the company would not discuss the stolen parts beyond a statement acknowledging that Nissan had been told about the discovery. No current or former Nissan employees would comment on security related to tracking auto parts shipments. Police are looking into several ways the merchandise could have ended up unaccounted for. “I’m puzzled about how stuff got out of there in that amount without them noticing,” Russell said.

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