Northeastern May 2015 Issue

Northeastern Edition New York Delaware New Jersey Pennsylvania

Maryland Connecticut Rhode Island Massachusetts

33

YEARS

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2015 NORTHEAST Features 50 Exhibitors, an Industry Showdown, and Tony Passwater’s Seminar, “How Have We Gotten Where the Industry is Today?”

by Chasidy Rae Sisk

On Friday, March 20th, the first day of spring kicked off with snow as attendees arrived at the AASP-NJ’s 2015 NORTHEAST™ Automotive Services

Show. By 5PM when the expo floor opened at the Meadowlands in Seacaucus, NJ, several inches of powder covered the ground. Despite the weather, collision repair industry professionals from the region and around the country eagerly flooded the building to see a variety of exhibitors and to receive vital education from some of the industry’s most revered speakers.

Friday’s festivities began with AASP-National’s Spring Board meeting followed by the East Coast ResoSee ‘15 NORTHEAST Features, Page 18

Buffalo, NY, Native Who Competed in WorldSkills Competition Discusses Lack of Education in Collision Repair Field

by Victoria Antonelli, Online Editor

The door panel that Nathaneal Wagner painted during the 2013 WorldSkills automotive refinish competition in Leipzig, Germany

the country’s top automotive refinish students.

Wagner had been home-schooled before he heard about the local Harkness collision repair program available See WorldSkills Competition, Page 28

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Nathanael Wagner, who only knew about the 2011 regional SkillsUSA competition in western New York weeks before it happened, went on to place 16th in automotive refinish during the 2013 WorldSkills competition.

This year, the event will be in Sao Paulo, Brazil, from August 11-16.

The WorldSkills competition is held every two years. In 2013, Wagner competed against the top 32 students in the world in Leipzig, Germany.

Between the regional and international competitions, Wagner competed on a national level against 50 of

VOL. 6 ISSUE 2 MAY 2015

Willets Point Shops Settle Lawsuit, Vacate Queens to Allow Construction of $3 B Mall

by Autobody News Staff, Wire Stories

The final 50 or so business holdouts in Queens who resisted a $3 billion mixed-use development planned for a site west of Citi Field, have settled a lawsuit with the city and the project’s developers, paving the way for the first phase of construction of the massive facility.

The impacted businesses filed a lawsuit on Feb. 4 against the city and the developers, Sterling Equities and Related Companies, alleging they were unlawfully forced out by the project, which will be partially built on city parkland.

The businesses, known as the Sunrise Cooperative, have agreed to vacate Willets Point by June 1, though many have already left. Under the agreement, dated March 19, all litiga-

tion was dropped and a $5.8 million escrow fund was created to aid in the businesses’ move to the Bronx.

In return, the city will pay a total of $4.8 million into the escrow fund, while the development team of the Related Companies and Sterling Equities will contribute $960,000. The cooperative, a collection of nearly 50 businesses that have operated along the unpaved streets in a part of Corona, will also be required to contribute $143,000 to the fund.

“Sunrise is happy that they got to an agreement,” said the Urban Justice Center’s Harvey Epstein, who represented the group in court. “We look forward to building a large auto co-op, and to everyone in New York starting to use it.”

The cash can also be used by See Willets Point Shops Settle, Page 14

Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available

by Colin Calvert and Todd Scherwin, Fisher & Phillips LLP

The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v.

Encino Motorcars, LLC that Service Advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption under the federal Fair Labor Standards Act (FLSA). It is the first court to have held this way.

“Service Advisor” Status under the FLSA Section 13(b)(10)(A) exempts from the FLSA’s overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm im-

plements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.”

Historically, this exemption has been extended to Service Advisors. Beginning in 1973, in the federal appellate decision in Brennan v. Deel Motors, Inc., and continuing to as recently as 2013 in the Montana Supreme Court’s decision in Thompson v. J.C. Billion, Inc., courts have uniformly held that Service Advisors are covered by that exemption.

The Department of Labor’s Revision to its Administrative Regulations However, the U.S. Labor Department’s (USDOL) track record in this area has been inconsistent. At some times in the past, it has said that ServSee Advisors Non-Exempt, Page 36

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

2 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - Tracking Your Success (or Lack of) Using Google Analytics . . . . . . . . . . . . . . . . 46 Franklin - Story Power For Shops. . . . . . . . . . . 60 Yoswick - SCRS Event Brings Shop Associations Together to Discuss Efforts, Share Ideas . . . 58 Yoswick - State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT . 48 NATIONAL ABAC President Kicks off 2015 Season by Discussing Recent CNN Report . . . . . . . . . . 12 ABARI Responds to PCI’s Claim that Legislation in Favor of Collision Repair Industry Results in Higher Premiums for RI Drivers . . . . . . . . 34 American Honda Launches ProFirst Certified Program . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Assured Performance Hires Michael Quinn as Exec. VP. . . . . . . . . . . . . . . . . . . . . . . . . 72 Axalta Announces Sale of Shares to Berkshire Hathaway. . . . . . . . . . . . . . . . . . . 55 BMW Settles FTC Charges that MINI Conditioned Warranty Coverage on Use of Its Parts and Service . . . . . . . . . . . . 68 CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes . . . . 62 Candidates Announced for 2015 SEMA Board

Election; Online Voting May 13-June 9 . . . . . 54 Car-O-Liner® Names New OEM Account Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Chief Names Richard Perry OEM Liason Sales Manager . . . . . . . . . . . . . . . . . . . . . . 71 Consumers Pay Repair Bills with Openbay and Apple Pay . . . . . . . . . . . . . . . . . . . . . . . 72 Fantasy Collision & Customs Focuses on 2010 Camaro . . . . . . . . . . . . . . . . . . . . . . . 54 GM Names BASF 2014 Supplier of the Year . . . 68 Honda Adds More Recalls on Takata Airbag Flaws . . . . . . . . . . . . . . . . . . . . . . . . 68 Lawyers Picked to Lead Posts in Air Bag Lawsuits . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 LKQ 2015 Get Green Winner Announced . . . . . 43 LORD Fusor Joins NABC as Diamond Member . 60 Mercedes-Benz Recalls To Fix Tail Lights and Gas Leaks . . . . . . . . . . . . . . . . . . . . . . 67 MS Attorney General Jim Hood asks U.S. for Probe of Steering of Customers By Insurers. . 30 NABC Awards for Distinction and Shop Image, Nominations . . . . . . . . . . . . . . . . . . . . . . . . 74 NABC Says “It Can Wait” to Students in Grad Season . . . . . . . . . . . . . . . . . . . . . . . . 72 National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles. . . . 71 New Data: U.S. Drivers Did 3 Trillion Miles Last Year . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 New GM Silverado Engineered for Better Serviceability During Collision Repair . . . . . . 52 Nissan Expands Recalls Tied to Takata Air Bag Flaws . . . . . . . . . . . . . . . . . . . . . . . 68 P&L’s Larry Montanez Teaches LIABRA about Aluminum Repair . . . . . . . . . . . . . . . . . 6 Pacific Collision Equipment Company in CA Holds Classes in Damage Analysis & Aluminum Dent Repair. . . . . . . . . . . . . . . . . 64 PartsTrader Says Integration to Help Dealers Quote Parts. . . . . . . . . . . . . . . . . . . 71 PPG Platinum Distributor of the Year Award Presented to Baps Auto Paints & Supply in PA. . 4 Progressive Plans to Charge Risky Snapshot Drivers More . . . . . . . . . . . . . . . . . . . . . . . . 71 Record360 App Documents Damages in One Step, Saving Industry Members Time and Money . . . . . . . . . . . . . . . . . . . . . 72 Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller . . . . . . . 66 Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ . . . . . . . . . . . . . . . . . . . . 55 Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager . 70 Texas Collision Repair Shops Cite Legal Issues with GEICO Regarding Certain Fees . . . . . . . 40 Waiting List for CREF’s 14th Annual Golf Fundraiser . . . . . . . . . . . . . . . . . . . . . . 50 Wedge Clamp Releases Anti-Static Device Called the Stat-Gun . . . . . . . . . . . . . . . . . . . 50 WIN Educational Conference May 4–6 in Baltimore. . . . . . . . . . . . . . . . . . . . . . . . . 64 Women’s Industry Network Announces Winners of the 2015 Most Influential Women in Collision Repair Award. . . . . . . . . . . . . . . . . 56

A body shop with chronic code violations on Dickens Street in Attleboro, MA, must come up with a new plan for parking cars on its lot and stick to it, zoning officials said during a revocation hearing, The Sun Chronicle reported.

cars under the special permit, but recent inspections have found as many as 20 or more in the lot.

Board members told The Sun Chronicle that some of the problem may stem from having a license to sell used cars and to run a body shop, which could cause confusion about how many cars are allowed on the lot.

On top of that, the site may be too small for both operations according to city Director of Planning and Development Gary Ayrassian.

R&D has also allegedly violated prohibitions about storR&D Auto in Attleboro, MA must come up with ing trash and material outside, a new parking plan due to complaints they’ve reported The Sun Chronicle. exceeded the max number cars their lot can hold At least one neighbor had by almost double. Photo Credit: The Sun Chronicle complained about the business R&D Auto has been cited three before the decision was made to times under two owners for failing hold a meeting. to adhere to the conditions of its speHowever, R&D lawyer Ed cial permit, especially one restrict- Casey told The Sun Chronicle that ing the number of cars on its lot. The the shop’s immediate neighbors have shop has until the May meeting of no problem with the operation and the zoning board of appeals to sub- suggested that complaints are commit a plan. ing from a competing business down The shop is allowed to park 12 the street.

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

Acura of Westchester . . . . . . . . . . 46 Amato Agency. . . . . . . . . . . . . . . . 52 Atlantic Hyundai . . . . . . . . . . . . . . 24 Audi Wholesale Parts Dealers. . . . 61 Axalta Coating Systems . . . . . . . . 75 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 32 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 26 BMW Wholesale Parts Dealers . . . 57 Car-Part.com . . . . . . . . . . . . . . . . . 22 CarcoonAmerica Airflow Systems . 42 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . 20 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 45 Cherry Hill Audi . . . . . . . . . . . . . . . 15 Cherry Hill Porsche . . . . . . . . . . . . 15 Cherry Hill Volkswagen . . . . . . . . . 15 Chicago Pneumatic Compressors . 6 Chief Automotive . . . . . . . . . . . 19, 23 Classifieds . . . . . . . . . . . . . . . . . . . 74 Clay Auto Group . . . . . . . . . . . . . . 47 Collision Edge . . . . . . . . . . . . . . . . 14 Colours, Inc . . . . . . . . . . . . . . . . . . 27 Diamond Standard Parts, Inc.. . . . 13 Ditschman/Flemington Auto Group. 25 Dover Chrysler-Dodge-Jeep . . . . . 17 Eco Repair Systems of North America, LLC. . . . . . . . . . 10 Empire Auto Parts . . . . . . . . . . . . . 28 Equalizer Industries, Inc . . . . . . . . 40 Fairfield Chrysler-Jeep-Dodge-Ram . 11 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 43 Ford Wholesale Parts Dealers. . . . 64 Fred Beans Parts. . . . . . . . . . . . . . 76 Fuccillo Kia of Schenectady . . . . . 31 Gary Rome Hyundai-Kia . . . . . . . . 50 Glanzmann Subaru . . . . . . . . . . . . 49 GlobalJig North America. . . . . . . . 33 GM Wholesale Parts Dealers . . . . 63 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 38-39

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts and adjacent metro areas. Autobody News is a monthly publication for the autobody industry.

Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL 2015 NORTHEAST Features 50 Exhibitors, an Industry Showdown, and Tony Passwater’s Seminar, “How Have We Gotten Where the Industry is Today?” . . . . . . . . . . . . . . . . . . . . 1 AASP-NJ Hosts 11th Annual Lou Scoras Golf Outing . . . . . . . . . . . . . . . . . . . . . . . . . 10 ABARI-Supported Legislation Introduced to Rhode Island General Assembly . . . . . . . . . 16 Blue Hen Collision Express in Delaware Recognized for Being in Top Five Percent in Customer Service by Mitchell. . . . . . . . . . . 8 Buffalo, NY, Native Who Competed in WorldSkills Competition Discusses Lack of Education in Collision Repair Field . . . . . . . . . . . . . . . . . . . 1 Carubba Collision Expands in Syracuse, NY . . . 16 Coverage of the 2015 Resolution Forum and Leadership Meeting at NORTHEAST™ . . . . . 22 Homeless Family in Pennsylvania Has New Start with Local Businesses Car Donation . . 15 MA Body Shop Must Develop Plan for Parking “Chronic Code Violations” . . . . . . . . . . . . . . . 3 New Hampton, NY, Fire Department Restores Antique Fire Truck for Parades . . . . . . . . . . . 27 NJ Senate OKs Electronic Proof of Insurance, Reverses Rate Evasion Bills. . . . . . . . . . . . . 10 NY MSO Owner Arrested for Stealing $190K in Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . 4 PA Officer Charged with Insurance Fraud, Theft After Taking ATV from Impound. . . . . . . 6 Refinish Distributors Alliance Adds New Member in NJ . . . . . . . . . . . . . . . . . . . . . . . 15 Valspar Headlined House of Kolor at AASP Northeast Show. . . . . . . . . . . . . . . . . 14 Willets Point Shops Settle Lawsuit, Vacate Queens to Allow Construction of $3 B Mall. . . . . . . . . 1

MA Body Shop Must Develop Plan for Parking “Chronic Code Violations”

Indexof Advertisers

Contents

Hyundai Wholesale Parts Dealers .

Imperial Ford-Chrysler . . . . . . . . .

Infiniti of Norwood . . . . . . . . . . . . .

Jaguar Wholesale Parts Dealers . .

Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . .

Koeppel VW-Mazda. . . . . . . . . . . .

Lexus Wholesale Parts Dealers. . .

Maaco Franchising LLC . . . . . . . .

Malco. . . . . . . . . . . . . . . . . . . . . . .

Maxon Hyundai . . . . . . . . . . . . . . .

Maxon Mazda . . . . . . . . . . . . . . . .

Mazda Wholesale Parts Dealers . .

Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . .

Mercedes-Benz of West Chester .

MINI Wholesale Parts Dealers. . . .

MOPAR Wholesale Parts Dealers .

NACE/CARS Trade Show . . . . . . .

Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . .

Porsche Wholesale Parts Dealers .

PPG . . . . . . . . . . . . . . . . . . . . . . . .

Prime Supply, Inc. . . . . . . . . . . . . .

Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . .

Replica Plastics . . . . . . . . . . . . . . .

Safety Regulation Strategies. . . . .

SATA Spray Equipment . . . . . . . .

Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . .

Subaru Wholesale Parts Dealers .

Tasca Automotive Group. . . . . . . .

Thompson Organization . . . . . . . .

Toyota Wholesale Parts Dealers . .

Urethane Supply Company . . . . .

Valspar Automotive . . . . . . . . . . . .

VIP Honda . . . . . . . . . . . . . . . . . . .

Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . .

Volvo Wholesale Parts Dealers . . .

Wagner Auto Group . . . . . . . . . . .

Wheel Collision Center . . . . . . . . .

59 12 30 71

73 55 68 .8 21 37 48 67

36 36 56 41 29

66 54 .2 16

.4 58 58 .5

.7 69 35 51 70 18 .9 44

65 62 53 34

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 3

PPG Platinum Distributor of the Year Award Presented to Baps Auto Paints & Supply in PA PPG Automotive Refinish has named Pennsylvania-based BAPS Auto Paint & Supply the 2014 Platinum Distributor of the Year. The announcement was made by Bob Wenzinger, Director of the PPG Platinum Distributor program, during the awards dinner at the annual PPG Platinum Distributor Conference held March 5–8 at the Lowes Royal Pacific Resort in Orlando, FL. BAPS coowner Dean Berkheimer accepted the award for the company.

“Being named PPG Platinum Distributor of the Year is a significant achievement and it’s a privilege to give the award to a deserving company,” said Wenzinger. “This year I’m proud to say BAPS Auto Paint & Supply has earned this very special honor. The company has repeatedly demonstrated its dedication to customer service as well as its exceptional support of and loyalty to PPG. The team at BAPS has done an outstanding job addressing the requirements of PPG customers throughout their region. I am happy to recognize BAPS Auto Paint & Supply as our Platinum Distributor of the Year.”

Dean attended the conference with his sister and co-owner Sharon Hogue.

In all, three generations of the Berkheimer family were represented including Ray and Robert Berkheimer, Sharon and Dean and Dean’s son Brett. They were

accompanied by key members of the BAPS management team.

Asked about his reaction to winning the award, Dean said, “I was surprised and, of course, excited and grateful. We have a great team and everyone in our or-

(l to r) Michael McGarry, PPR president/COO; Sharon Hogue and Dean Berkheimer, BAPS co-owners; John Outcalt, PPG vice president, global automotive refinish coatings

ganization has worked very hard to reach this level. Being worthy of recognition as Platinum Distributor of the Year is a great honor and reward for our work. Thank you.”

BAPS was established in 1961 as R.F. Berkheimer & Sons, painting contractors. Raymond F. Berkheimer was the owner. His two sons, Ray W. and

NY MSO Owner Arrested for Stealing $190K in Sales Tax

The owner of three body shops in Garden City, NY has been arrested for failing to remit sales taxes to New York State by underreporting sales in tax returns submitted on behalf of his businesses.

Douglas Donnelly, was arrested and arraigned on April 9 before Nassau District Court Judge Darlene Harris on the following charges: ● Grand Larceny in the 2nd Degree (a C felony) ● Four counts of Offering a False Instrument for Filing in the 1st Degree (an E felony) ● Three counts of Criminal Tax Fraud in the 3rd Degree (a D felony) Three shops for which Donnelly was the responsible party—MineolaJericho Auto Body, Inc.; Trinity Auto Body, Ltd.; and Trinity’s Mineola Jericho Auto Body Ltd.—also face larceny and felony criminal tax fraud charges.

Judge Harris released the defendant on his own recognizance. If convicted of the top charge, Donnelly faces a maximum sentence of five to 15 years in prison.

“Customers who pay sales tax to businesses should be sure that the money they are spending is going towards vital government services and not in the business owner’s pocket,” Acting DA Singas said. “Businesses

Robert, worked for him. In 1977, Raymond retired leaving his sons to continue the family business. Ray and Robert moved the company into the automotive paint business and in 1979 opened BAPS Auto Paint & Supply in York, PA.

that don’t remit sales tax money are stealing from the state, the county and their customers.’

Acting DA Singas said that Donnelly, as the responsible party for the three businesses, failed to file New York State tax returns and/or underreported sales in tax returns submitted on behalf of the three corporations from Douglas Donnelly, March 1, 2008 to Jr. of Garden City, Feb. 28, 2014. failed to remit The NYS Dethousands of partment of Taxdollars in sales tax ation and Finance collected from reviewed extencustomers of three sive records for Nassau businesses all three shops and found additional money that not accounted for in their quarterly sales tax filings. The agency also found quarters for which tax returns were never filed.

DA investigators subsequently confirmed that gross sales were significantly underreporting. Donnelly failed to remit a total of $188,198.93 of collected sales tax. He was due back in court on April 16. Autobody News will be following the case.

4 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

A few years later, BAPS became a single-line PPG distributor and in 1995, when the PPG Platinum Distributor program was initiated, was one of the first distributors to join. Since then, the company has grown significantly and now has six stores in three states— Pennsylvania, Maryland and Massachusetts—with 106 employees serving

PPG customers throughout the area. In the process, BAPS has made a substantial investment in its operations through PPG’s wide variety of Platinum Distributor Program opportunities.

“Being part of the Platinum Distributor Program has been a critical factor in the growth of our company,” added Dean. “The support we receive from PPG has been outstanding; the reps are always ready to help, always available. The program provides the wide-ranging management and employee training that’s made a real difference in our success.

And, of course, we have top-quality PPG products to sell. Put that all together and our customers get great products, sound advice and first-class customer service.

It’s win-win all the way around.”

The PPG Platinum Distributor program began as a support initiative for PPG single-line distributors with the goal of providing service and benefits for PPG Refinish customers. The program aligns the technology, training and customer support of PPG with the entrepreneurship, customer awareness, local market knowledge and service capability of the independent distributor.

For more information about the PPG Platinum Distributor program, call (800) 647-6050 or visit the PPG Automotive Refinish website at www.ppg refinish.com.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 5

P&L’s Larry Montanez Teaches LIABRA about Aluminum Repair On Saturday, March 14, the Long Island Auto Body Repairmen’s Association (LIABRA) held an aluminum repair seminar with guest trainer Larry Montanez of P&L Consultants at Touch of Class Collision in Valley Stream, NY. The event attracted 50 attendees.

At 8:30AM, Larry Montanez LIABRA’s ExecFile Photo utive Director Ed Kizenberger began by explaining that the association will be holding OEM training seminars throughout the year to keep members updated on the new technology and materials being used

Larry Montanez from P&L Consultants presents a PowerPoint to LIABRA about the importance of being aluminum repair certified

by vehicle manufacturers. He emphasized the importance of being properly trained to repair modern vehicles.

After reading the standard AntiTrust statement, Montanez’s PowerPoint presentation began by discussing the varieties of steel and aluminum used in today’s vehicles. He explained that these new, lighter materials help to reduce weight and comply with federal CAFE laws mandating increases in gas mileage. As he outlined the different types of steel and aluminum being used, Montanez described how to repair aluminum and high-strength steels, noting that many parts used with these materials must be replaced instead of repaired.

Focusing on specific vehicles manufactured by various OEMs and the materials used in these cars, Montanez notes that dedicated benches and work areas, as well as special tools, are often required to properly repair these models. He also spent a significant amount of time discussing how to repair and weld specific types of aluminum. Montanez concluded by emphasizing that training on proper repair techniques is critical for today’s vehicles. He also outlined the costs and time required to become certified through an OEM, most of which begin with being sponsored by a dealership.

PA Officer Charged with Insurance Fraud, Theft After Taking ATV from Impound

Attorney General Kathleen G. Kane announced in April the arrest of a Blair County, PA man accused of stealing an all-terrain vehicle from a police impound lot and committing insurance fraud to keep it in his possession. Otto Gilden Barton II, is charged with one count each of insurance fraud, theft and unauthorized use of an automobile.

According to a criminal complaint, Barton is an officer with the Logan Township Police Department.

He investigated a traffic crash in 2008 involving the ATV, which had been reported stolen a year earlier Allstate Insurance paid a claim to the vehicle’s owner and became the titleholder for the ATV, investigators reported.

Following the crash, the vehicle was transported by a private towing company to the township police impound lot. Investigators said their investigation revealed Barton later asked the owner of the towing company to prepare a false receipt for $1,000 to cover “towing and storage” of the ATV. The owner told investigators Barton led him to believe township police were attempting to obtain ownership of the ATV for the department’s use.

A claims official with Allstate told investigators someone who identified himself as “the shop” called Allstate and said the charges for the ATV were $1,000. The person told the claims official he would accept the ATV in lieu of payment, investigators were told.

An interview with the owner of the towing service determined he never spoke with the insurance company and was never paid the $210 he was owed for towing the vehicle to the police impound lot in 2008.

Meanwhile, the investigation revealed the ATV had never been signed out of the police impound lot’s log book. Moreover, Barton was spotted with the ATV in the bed of his truck when he came to work and at his family’s funeral home business, investigators learned. He also was found in possession of the ATV when he was interviewed by investigators, the criminal complaint alleges.

Barton’s bail was set at $25,000 unsecured at his preliminary arraignment before Magisterial District Judge Craig E. Ormsby. A preliminary hearing is tentatively scheduled for April 16. The case will be prosecuted by Deputy Attorney General Kara Cotter.

6 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Throughout the training seminar, Montanez answered many questions and interacted with attendees. As usual, his presentation was informative and educational, in addition to being highly

and International Auto in Lindenhurst who provided coffee and bagels as refreshments for attendees. Although LIABRA will not hold a general meeting in April, they will hold their

LIABRA members listen intently while executive director Ed Kizenberger discusses aluminum repair

entertaining. Attendees were very satisfied with the seminar and felt they learned much about repairing modern high-tech vehicles.

LIABRA would like to thank Gabe Scognamiglio, owner of Touch of Class Collision, for allowing the association to use his facilities for a second time. The association is also thankful to Enterprise Auto Rental

annual Lobby Day on April 21. The next general meeting is scheduled for May 19 at Eagle Auto Mall and will focus on GM Structural Repair.

LIABRA PO Box 482 Centereach, NY 11720 631-941-9647 www.liabra.org

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 7

Blue Hen Collision Express in Delaware Recognized for Being in Top Five Percent in Customer Service by Mitchell

by Stacey Phillips, Assistant Editor

Blue Hen Collision Express in Dover, Delaware recently received Mitchell’s 2014 AutocheX Premier Achiever Awards for exemplary customer service. Owned by brothers Carl and Chuck Cimino, the business was one of 375 collision repair shops across North America that was honored.

“This is an important measure for shops in helping to make sure they are delivering a good experience to their customers,” Jim O’Leary, Mitchell’s VP of Product Management, recently told Autobody News.

The company’s 13th annual Premier Achiever Awards honored repairers that consistently earned customer satisfaction scores in the top five percent of their programs measured by AutocheX. “One really important part of Mitchell’s AutocheX program is having a baseline of the same data collected so that we can compare one shop’s results to another and one insurance company’s results to another so they can benchmark themselves against the industry,” he said.

Blue Hen Collision Express opened its doors in 1983 and the Cimino brothers have owned the shop since 1997. During that time, Carl said they have more than doubled their annual sales to the current

level of $2.3M+. They have 15 employees, including 10 technicians, a shop manager, parts manager, office manager, an estimator and a receptionist.

Chuck oversees the operation on a daily basis and ensures that CSI is a continous focus. “Our team of techs and office personnel are the ones that make it happen,” said Carl. “The quality of our work exceeds most other shops in the region because we are one

Blue Hen Collision Express in Delaware is owned by brothers Carl and Chuck Cimino

of the few facilities that employ strictly hourly technicans. No flat rate here!”

Carl said this allows them to better manage productivity. “And when you put a first-class product out front for the customer, everything else is easy,” he said.

After incorporating AutocheX in 2010, Carl said they have found it is easier to monitor CSI on a daily basis, rather than when they receive a call from a customer or an insurance company.

8 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

“By using AutocheX and maintaining such a high level of customer satisfaction, our insurance partners know that if there is any issue with a customer, it is a rare expection rather than the rule,” he said. “In short, by using AutocheX, we are running our business proactively rather than reactively.”

Mitchell, a provider of technology, connectivity and information solutions to the Property & Casualty claims and collision repair industries, conducted the surveys by phone and on the web.

O’Leary said, “There is one question that we believe is most indicative of the consumer’s experience with the repair; ‘Would you refer this shop to a friend or family member on a scale of one to 10?’”

Based on the results of the surveys, Mitchell selected the award recipients, which represent 41 states and provinces across the United States and Canada.

They range in size from small, familyrun businesses to large consolidators.

In addition to winning the AutocheX Premier Achiever Award this year, Blue Hen also received it last year, and won a major insurance carrier’s regional CSI Award based on Mitchell CSI data. “We believe the business philosophy of ‘you get what you focus on,’” said Carl, who said he feels a sense of pride

being recognized.

“It’s ok to think that you are the best but when a respected third party recognizes you, it means more. It’s proof of our daily commitment. Now we need to try and do it three years in a row!”

In addition to the recognition, the recipients receive a trophy, signage for their shops and access to a website that provides promotional materials and congratulatory messages from industry leaders. Nearly 4,000 Premier Achiever Awards have been presented since the program was launched in 2002.

O’Leary said that 7,500 shops currently participate in AutoCheX. He said that some of the main advantages of the program include improved communication and loyalty with customers as well as maximizing repeat and referral business.

“The benefit is providing them with very actionable, timely feedback that helps them to improve their operations,” said O’Leary. “It’s also valuable to the shops to have an objective third-party measuring their results and then use those results to make a case for receiving more business from their insurance partners.”

For information about Mitchell and the AutocheX program, visit: www.mitchell.com.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 9

NJ Senate OKs Electronic Proof of Insurance, Reverses Rate Evasion Bills New Jersey’s state Senate on March 16 passed a bill (A-3905) that would allow motorists to display proof of auto insurance in either physical or electronic format. The bill was previously approved by the State Assembly and now heads to Governor Chris Christie for his consideration.

The bill also states that when the insurance identification card is displayed or provided in the electronic form using a smartphone, tablet, computer, or any other electronic devices, it does not constitute consent for a police officer or judge to access any other contents on the device. Any police officer or judge presented with an electronic device for the proof of insurance would be immune from any liability resulting from damage to the device.

According to the Property Casualty Insurers Association of America, there are currently 37 states that have adopted e-card laws and/or regulations that allow drivers to present electronic proof of insurance.

Reverse Rate Evasion The New Jersey Senate on March 16 also passed a bill (A-2281) that aims to crack down on so-called reverse rate evasion. The measure targets residents who fraudulently obtain auto insurance

in another state with lower rates, even though NJ is their principal residence or they principally keep the insured vehicle in NJ. Under the bill, reverse rate evasion would be considered a form of insurance fraud that violates the New Jersey Insurance Fraud Prevention Act, making it a crime of the fourth degree. The bill also specifies that reverse rate evasion constitutes a violation of the New Jersey Insurance Fraud Prevention Act, with various civil penalties and remedies provided for in that act applying to violations.

The bill previously passed the Assembly and now goes to Governor Christie’s desk.

“Insurance fraud is not only wrong, but it costs honest drivers money through higher premiums,” said Assemblyman Wayne DeAngelo, a co-sponsor of the bill. “We’ve made a lot of progress in controlling auto insurance rates, but we still have a long way to go and cracking down on fraud needs to be a big part of that continuing effort.”

DeAngelo said the New Jersey Office of the Insurance Fraud Prosecutor is currently unable to prosecute reverse rate evasion cases because state law does not include it as a form of insurance fraud.

The New Jersey Office of the In-

surance Fraud Prosecutor has documented a growing trend of NJ residents insuring in NC and PA to avoid higher insurance rates, according to Assemblyman Joseph Lagana, the bill’s co-sponsor. “The prosecutor has been suggesting this change in the law for more than four years, and we’re going to finally get this done for the benefit of all law-abiding New Jerseyans,” said Lagana.

The Coalition Against Insurance Fraud, an anti-fraud alliance in Washington, D.C., welcomed the bill’s passage and urged the governor to sign and enact the bill into law.

“Turning premium dodging into an insurance crime would add enforcement teeth to NJ’s efforts to clamp down on rate evasion,” said Howard Goldblatt, the Coalition’s director of government affairs. “The stronger likelihood of a criminal conviction also could help deter others from making the mistake of defrauding their auto insurer.”

The Coalition said that under the bill, convicted drivers could face as much as 10 years in state prison and fines of up to $150,000.

Premium evaders from NJ often use NC and neighboring PA as destination states, and NY premium evaders have been caugh tillicitly registering their vehicles in IA and PA, the Coalition said.

AASP-NJ Hosts 11th Annual Lou Scoras Golf Outing

AASP-NJ will hold their 11th Annual Lou Scoras Memorial Golf Outing on Monday, May 18. The event, dedicated to the late Lou Scoras of Holmdel Auto Body, will be held at the Colonia Country Club in Colonia, NJ. Registration begins at 10 a.m. with lunch served at 11:30 a.m. and a shotgun start at 1 p.m. Dinner will be served at 6:30 p.m.

Registration costs $225 per golfer, or participants can register for dinner only at $75 per person.

AASP-NJ is seeking hole sponsors, as well as bronze, silver, golf and platinum sponsors. A portion of the proceeds for the event will go towards establishing a collision repair industry scholarship fund.

AASP-NJ PO Box 734 Neptune, NJ 07753 732-922-8909 www.aaspnj.com

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ABAC President Kicks off 2015 Season by Discussing Recent CNN Report ence at A&R Body Specialty when ABAC members taught him about imOn March 10, the Auto Body Associ- itation parts: ation of Connecticut (ABAC) held a (http://autobodynews.com/associations town-hall-style quarterly meeting at /northeastern- associations/item/9759 the Country House Restaurant in East -abacteachessenatorblumenthalHaven, CT. Over 110 attendees, asso- aboutimitationpartssenatorasksdojto ciation members and non-members investigate.html). alike joined ABAC as they began their He stated, “Senator Blumenthal 2015 season for an exciting evening of understands what’s going on. We edunews, updates and guest speakers. cated him over many years when he was Attorney General, and now as a U.S. Senator, he’s taking on that battle [and] going to the Department of Justice. He wants answers to these issues because he’s concerned about the safety of these vehicles in the road that have been repaired with parts that have not been crash tested property and the serious danger that consumers can face.”

Ferraiolo encouraged attendees to direct customers to Tony Ferraiolo shows difference between OEM and the consumer information secAftermarket headlamps tion on the association’s webThe meeting commenced with site, so they can be informed on the Tony Ferraiolo, President of ABAC, issues at hand. ABAC’s President also playing a March 9 radio station interprovided updated on the Hartford view from CT’s WICC, Bridgeport Lawsuit (still awaiting the result of the with U.S. Senator Richard Blumen- final appeal), lobbying activities, and thal promoting the association’s the paint and materials tax. Ferraiolo “Your Car, Your Choice” slogan. After notes, “The ABAC has submitted teswelcoming attendees and thanking timony in favor of HB5655 to review sponsors and ABAC’s News Support- the taxation of paint used in motor veing Advertisers, Ferraiolo broached hicle repair.” the topic of the recent CNN report on Having concluded with association the collision repair industry. business, Ferraiolo introduced the “We have a lot going on right evening’s first guest speakers, Thomas now in our state,” Ferraiolo began. J. Valentino, CPA, and Jeffery M. Ch“You’ve heard from Senator Blumen- eney, CPA, CFE of Meyers, Harrison thal who has been hitting the airwaves and Pia, LLC, who discussed how collihard to support our sion repair facility owners should derive issues. The ABAC their labor rates. Valentino explained is getting ready to that every shop is different and no two launch our new ad labor rates will be the same. He states, campaign to get “It’s a shop-by-shop determination. the message out You’re located in different areas, have there so that all of different overhead, you aren’t fighting different rent or difEd Lupinek of alone concerning ferent payroll strucEddie’s Auto Body imitation parts. We tures, so each one will be helping to educate the conof you should be sumer so that they can help fight the looking at your battle on their own. It’s their car, their own expenses to choice. If they don’t want these parts determine your acAttorney on their car, educate them! The ABAC tual cost.”

John Parese is very busy getting that message out Moving on, Ferthere.” raiolo recognized ABAC’s Board of Next, Ferraiolo mentioned Sena- Directors’ new members, introducing tor Blumenthal’s recent press conferJohn Walsh of Oxford Automotive,

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12 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

George Atwood of Atwood’s Auto Repair and Sabrina Indomenico and Adrianna Indomenico, both from Santostefano’s Auto Body. Ferraiolo then introduced the next speaker, ABAC’s Legal Counsel John Parese.

Parese discussed the Labor Rate Survey and the importance of completing and submitting it. He also reminded attendees that if they do a labor rate survey, it cannot be shared with others; doing so would violate anti-trust mandates. In typical town-hall style, attendees asked questions and discussed some of the problems they’ve encountered and solutions they’ve instituted, helping one another in true ABAC spirit.

ABAC’s Legislative Director Bill Romaniello, Bill Romaniello ABAC Legislative presented a video, Director “Utilizing Technology to Write a More Accurate Sheet,” and showed attendees where to locate OEM repair information, such as through AllData, OEM spec-

ifications and directly from the vehicle’s manufacturer. Further topics included the following: the importance of proper repair forms and authorizations, using the assignment for money due to get your posted labor rate, presuit options, sample labor rate surveys, conduct of motor vehicle physical damage Bill Denya of appraisers, towDenyas Auto Body ing and storage, aftermarket v. OEM parts, paint and materials, access to technology, miscellaneous useful documents and tortious interference with contract.

The meeting concluded with a 50/50 raffle and gift cards donated by Gary Danko of the Balise Auto Group – Wholesale Parts Express.

ABAC will hold their Annual Meeting on May 10 at the Chowder Pot Restaurant in Hartford. In addition to holding officer elections, the association plans to host several exciting guest speakers. Stay tuned for more details, or visit www.abaconn.com.

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Continued from Cover

Willets Point Shops Settle

Sunrise to pay rent to the site’s landlord. The group plans to convert the one-story property into an auto mall with stalls for each of the businesses within six months, and will also borrow $550,000 from the city to cover some of those costs.

“The relocation of the Sunrise Cooperative represents a critical step in the advancement of the Willets Point development, which will bring thousands of jobs, units of housing and square feet of retail space to northern Queens,” said Economic Development Corp. President Kyle Kimball.

Related and Sterling are spending $3 billion to build a 1.4 million squarefoot mall to the west of Citi Field, along with retail and about 2,500 apartments on about 22 acres to the east of the stadium in Willets Point. But in February 2014, Sunrise filed suit in state Supreme Court, alleging that the displacement of the businesses violated several laws.

It was unclear exactly how many more businesses need to be relocated, but the city estimated that nearly two-

thirds of the 130 shops have now received some form of compensation.

“There were many layers of negotiation that needed to take place,” said City Councilwoman Julissa Ferreras, who represents the area and helped hash out the agreement.

Their planned move across the East River is perfectly legal, but now it’s Bronx residents who are getting stirred up, worrying the influx could spark a resurgence in violence and auto thefts in Hunts Point.

“The increased competition could make people desperate,” said Josephine Infante, president of the Hunts Point Economic Development Corp. “The people here don’t want their bread and butter taken right out of their mouths.”

“We don’t have any other choice,” said Marco Neira, the Sunrise president. “We’d rather stay in Queens, but there was nothing big enough.”

Neira said the city’s Economic Development Corp. pledged more than $2 million to cover moving costs, security deposits and two years of rent for the 37 members of the co-op.

Neira denied the incoming shops would be a threat because of the unique, one-stop automotive empo-

rium the warehouse layout will afford.

But Hunts Point is already deluged in auto-related businesses, a cluster of shops that line Southern Blvd. and Hunts Point Ave. Bronx residents say the deal raises traffic, safety and environmental concerns that they believe should have been vetted and addressed.

Bronx Community Board 2, which covers the area, voted to formally request the city Economic Development Corp. to conduct environmental and traffic-impact studies of the site.

The board also wants the city to repurpose $5 million of the funds earmarked for the remediation of contamination at Willets Point to assess the situation.

But officials say the city is not responsible for any impact the influx may have on the Bronx, even though it is essentially footing the bill.

“The relocation of the Sunrise Co-op to their new facility is an as-ofright transaction between two private parties,” a spokeswoman for the Economic Development Corp. said.

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The board is constructed of weatherproof PVC. The grid is printed on a reflective backing that grabs the camera flash and illuminates the grid onto the damaged panel.

Valspar Headlined House of Kolor at AASP Northeast Show

Valspar Automotive announced that House of Kolor displayed at the AASP Northeast Trade Show at the Meadowlands in Secaucus, New Jersey, March 20-22. Painters, builders and enthusiasts were able to peruse House of Kolor products including basecoats, kandies and effects. The booth also offered House of Kolor Gear including shirts, calendars and jackets.

The 1965 modified Ford Mustang convertible from Valhalla Custom Vehicles in NJ

Valspar Automotive featured a 1965 Modified Ford Mustang Convertible from Valhalla Kustom Vehicles in Blairstown, New Jersey. This Mustang features a Shelby Cobra 5.0 Liter engine with 2007 Cobra seats, and a modified rear seat to match with a custom center console.

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Homeless Family in Pennsylvania Has New Start with Local Businesses Car Donation

Daniel and Tynia Rosier celebrate with employees of Ciocca Collision Center, RW Mallon Auto Paint & Equipment and GEICO who teamed up to donate a refurbished 2009 Honda Accord to the family

In Pennsylvania, RW Mallon Auto Paint & Equipment teamed up with Ciocca Collision Center, GEICO, LKQ and other local partners to donate a 2009 Honda Accord to a young family living in a homeless shelter.

The car donation is part of the National Auto Body Council’s Recycled Rides program.

Tynia and Daniel Rosier just found out they were expecting a second child when both lost their jobs.

Dealing with rent and bills, they eventually lost their home. They sought help from Family Promise, which provides temporary housing and services to help homeless families transition into financial independence.

“The Rosiers are a hard-working, resilient family. We admire their perseverance and hope this vehicle gift is the catalyst that will help them turn the corner towards a brighter future,” said Robert Mallon, President of RW Mallon Auto Paint & Equipment. “We are pleased to have an opportunity to work with our industry colleagues—Ciocca Collision Center and GEICO—and help ease the transportation burden for the Rosiers.”

The family—which now includes three-week-old Ava and one and a half-year-old Tyler—are in a much better place today. Daniel has since found steady employment and

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Refinish Distributors Alliance Adds New Member in NJ

The Refinish Distributors Alliance (RDA) has added a new member, Motorcar Colors, with headquarters in Moorestown, New Jersey. With this addition, RDA grows their membership to cover 30 states.

Motorcar Colors, owned by George Schulmann, has been in business for 27 years. Schulmann served on the BASF ColorSource council for over 10 years and is active in many non-profit organizations in his community. Motorcar Colors has two locations, one in Moorestown and one in New Castle, Delaware. Motorcar Colors is a BASF single line distributor.

“We are excited to have Motorcar Colors as part of the RDA/IMPACT organization. Motorcar Colors exemplifies what our group is all about, Premier PBE Distributor’s providing exclusive networking, products, training and services,” said Robert McKenzie Jr., Executive Director of RDA. Schulman said he’s “looking forward to networking with the group, exchanging best practices and marketing strategies, as well as supporting the IMPACT line of products.

To join RDA/IMPACT, contact McKenzie, 731-217-9081, roberte mckenzie@me.com. For info, call Melisa Jolls 908-251-5713 www.impactcollision solutions.com.

the family has saved enough money to move into a home of their own.

Without a car, Daniel had to rely on rides from Family Promise staff to get to and from work. The Recycled Rides vehicle donation now provides the family with reliable transportation to help rebuild their lives.

“Lack of reliable transportation is one of the biggest obstacles for families like the Rosiers who struggle to rebuild their lives,” said Woody Everett of Ciocca Collision Center. “Giving back to our community is important to us, and we are proud to help make a difference in quality of life for Daniel, Tynia and their children.”

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ABARI-Supported Legislation Introduced to Rhode Island General Assembly

by Chasidy Rae Sisk

In February, legislation supported by the Auto Body Association of Rhode Island (ABARI) was introduced in the General Assembly. Both bills, H5491 and H5471, are intended to protect consumers and the interests of the collision repair industry.

Jina Petrarca-Karampetsos, Executive Director of ABARI, explains, “The first bill calls for the classification of shops (A and B), and the second is a private right of action for insureds and claimants for unfair claims practices and deceptive trade practices. Some years ago, there was a bill giving ahops a private right of action; this is not the same bill. The current bill is modeled from other states that give consumers a private right of action against insurers for various prohibited practices.”

Bill 5491 was introduced on February 12 by Representatives Corvese, Winfield, Carnevale and Slater. If passed, Section 1 of this bill will allow the auto collision repair licensing advisory board to (1) establish appropriate rules, regulations and procedures; (2) establish standards for sanitary and healthful conditions in the work environment; (3) establish minimum requirements for the licensure of auto body shops; (4) establish minimum requirements for certification of auto body technicians; and (5) establish two classifications of full collision licenses.

The final component of this bill will have the most impact. If Bill H5491 is passed into law, Rhode Island body shops will be separated into Class A and Class B facilities. All collision repair shops in the state will be

required to adhere to the first four tenets of the bill. However, those interested in being categorized as a Class A facility will need to submit an application by December 1, 2015. Applicants will be subject to an inspection to verify that they are compliant with all of the Class A requirements.

In addition to fulfilling the Class B standards, shops receiving a Class A designation will be required to meet additional criteria. These shops will need to prove that they have the ability to do the following for each vehicle being repaired: obtain proper specifications through an industryrecognized computer program with periodic updates; make 3D measurements which are verified by a computer program; inspect airbags and other restraint devices; perform welds on aluminum and high-strength steel to ORM specifications; refinish vehicles using a paint system with computerized mixing technology and a prep station; hoist vehicles on a lift for a full inspection; use emissions-reducing equipment for refinishing; adhere to regulations pertaining to the disposal of hazardous waste; and maintain a healthy work environment.

Class A facilities must also ensure customer satisfaction by providing a written limited lifetime warranty valid against workmanship defects, and they must maintain a system to document consumer complaints and responses to service.

Other requirements include demonstrating certification and compliance with environmental agencies, providing evidence that all employed technicians are certified according to the board’s standards, and possessing a facility of sufficient size to

contain all necessary equipment and to safely perform repairs.

After the initial class designations are issued, Class B facilities may apply for Class A status at any time by submitting the necessary application materials.

Section 2 of H5491 would require each insurer selling policies in RI to conduct annual labor rate surveys for each classification of auto body shops. These surveys would exclude any shops with which the insurer had a previously-established DRP relationship.

Bill H5471 was also introduced to the General Assembly on February 12 by Representatives Corvese, Winfield, Carnevale and Slater. If enacted, this bill would allow any insured or third-party claimant to bring action against an insurer for monetary damages if the insurer employs any unlawful method, act or practice. This would include unfair claims and deceptive trade practices, as well as other unlawful actions.

Petrarca-Karampetsos states, “ABARI supports H5491 which would create two classifications of

auto body repair facilities. If passed, this legislation will protect consumers and preserve competition. Technological advances in vehicle structures and safety systems require auto body repair facilities have the necessary equipment and trained technicians to ensure a safe repair and to preserve the proper performance and longevity of the repaired vehicle. This legislation would require shops to have certain equipment required by many manufacturers to be considered a Class A shop. All shops meeting the current minimum requirements in Commercial Licensing Regulation 4 would be deemed Class B. This bill is intended to incentivize Class B shops to invest in their businesses before they will no longer be able to complete as a result of automobile manufacturer requirements. Further, the motoring public should be aware of whether the auto body repair facility they have chosen has the equipment and expertise to repair their vehicle. ABARI protects consumers… if we don’t, who will?”

ABARI expects hearings to be scheduled on both proposed bills sometime in April.

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Carubba Collision Expands in Syracuse, NY

Joseph Carubba, President and CEO of Carubba Collision Corp. announced on April 22 that the MSO has continued its expansion in New York State with the opening of their newest Carubba Collision shop in Syracuse, New York.

The Syracuse operation is located at 7313 Northern Boulevard on the corner of East Taft in Syracuse, NY. Yves Pierre Luis, who has been in the body shop business at Carubba Collision in Buffalo, NY for eight years, will be the Syracuse store manager for Carubba Collision.

The Carubba Collision’s new Syracuse location will eventually em-

ployee over 30 people. The new facility will also include an Enterprise Rent –A –Car operation on site, as well as multiple insurance companies to handle all customer claims.

“The initial investment in our new Syracuse location is over $2 million,” explained Carubba.

This past November, Carubba Collision had increased its footprint in Western New York by adding three new operations and locations. They now have eight locations with 11 production facilities. The new Carubba Collision Syracuse location phone number is 315-741-5955.

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Continued from Cover

‘15 NORTHEAST Features

lution Forum and Leadership Meeting (see p. 22 this issue for more coverage.)

The first demo on the expo floor, “Not Just Dings and Dents!,” presented by Miracle System, took place from 66:45PM with encore performances Saturday afternoon and Sunday morning.

Matrix booth at NORTHEAST 2015 featured celebrity pinstriping artist, Nub Grafix

From 6:30 until 8:30PM, attendees flocked to see Industry Showdown: Montanez and Felder Tackle the Issues. LIABRA’s Executive Director Ed Kizenberger mediated as Larry Montanez of P&L Consultants faced off against Kristen Felder, CEO of Collision Hub and former DRP Manager for Nationwide, on a plethora of

issues impacting the collision repair industry.

After Montanez and Felder’s debate on Friday night, the expo floor featured 2015 Ford F-150 Repair Information; this demo was repeated on both Saturday and Sunday. From 89PM, the following three seminars were held simultaneously: “Adhesives Refinishing Training,” “Disposal Techniques for Automotive Services Facilities,” and “Marketing to the Connected Customer” which deserved a repeat performance on Saturday afternoon. After the trade show closed at 10PM, Friday night concluded with an Exhibitor Appreciation After-Party featuring Gary DeLena.

Saturday morning began with Larry Montanez’s “Estimating and Diagnosis of Structure Damage on Aluminum-Intensive Vehicles and Joining Methods,” and I-CAR’s first class of the day, “Aluminum Panel Repair and Replacement.”

At 10AM, several seminars were presented simultaneously, including “Damage Analysis and Blueprinting” and “Lean Processing in the Paint Shop: Painting with Nitrogen.”

At the same time, Jim Mickle, GM Powertrain Instructor, prevented “Structural Collision Repair 2015 GM

18 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

and GM recommends replacing, not repairing, these parts.

When structurally damaged repairs enter a shop, the damage should be validated, and then after reviewing the estimate and ordering parts, the shop should tear down the vehicle. Mickle also advises shops to “perform before and after measurements to ensure the vehicle is restored to its pre-loss condition. Hidden damage can be a major issue, so you want to know if you’ll have this to contend with upfront.”

Because many vehicles are constructed with highstrength steel, measuring and checking the alignment is important.

The vehicle should be set up on the frame machine and anchored securely, and then instructions Honda had a colorful booth at the NORTHEAST 2015 must be followed for a cortrade show in Secaucus, NJ rect measurement in mm; imperative to meet tolerances when GM’s tolerances are much tighter doing repairs involving suspension and than in the past, allowing only 1steering as this is critical to the vehicle’s 2mm variances. Mickle also disperformance and handling. GM’s front cussed setting up the measuring and rear rails are designed to collapse system and performing multiple pulls and to protect the vehicle’s occupants, to straighten the structure.

Vehicles” on the demo floor. Beginning with a Structural Overview, Mickle noted the importance of understanding the structural components within a vehicle are designed to support the vehicle’s weight without deformation, so it’s

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 19

Moving on to structural repair sectioning in the 2014–2015 aluminumframe Stingray, Mickle explained the differences between aluminum grades.

With a sandcast mold, aluminum alloy is poured into a sand mold and given time to harden before use. GM uses A356-T6 Sandcast which is corrosion resisted and has good characteristics for welding processes. Hydro-formed aluminum uses a process involving liquid and tubes of pre-formed components, the 6063-T6 Hydro-formed aluminum GM uses has a primary purpose of being designed for extrusions in different applications. Because aluminum components are lightweight and designed to crush on impact, aluminum repair necessitates the use of a frame support.

Contamination is also an important consideration when repairing aluminum. Mickle stressed the need to clean surfaces well to remove oxidation and contaminants. Stainless steel brushes should also be used before proceeding to the welding process.

Discussing the welding process, Mickle emphasized the importance of adhering to safety regulations and being familiar with your equipment.

For stitch welding at the joints, a con-

tinuous, pulsating weld should be used; GM dictates a specific welding sequence, and they also specify that the tensile strength of the welding wire is correct. Mickle reminded at-

edge, Mickle covered the need for using frame supports to keep the vehicles square during floor replacement and attempts to straighten structures.

He stressed the importance of follow-

Javier Soto is a self-taught custom painter/ airbrush artist from Fairview, NJ. He is known for his detailed motorcycle designs, which he displayed at NORTHEAST 2015

tendees that “welding is a skill, and practice makes perfect.”

After explaining that a good weld shows penetration at the back and breaks at the outside of the weld’s

20 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

ing GM’s recommended procedures, directing attendees to www.genuinegmparts.com for the OEM repair procedures.

The Legal Perspective on Steer-

ing seminar was cancelled, but “Administration Performance Management” was presented at 11:30AM. Afterwards I-CAR began their second four-hour course “Vehicle Technology and Trends 2015.”

On Saturday afternoon, Mickle returned to the tradeshow floor’s demo area to present “Smart Power Management: Intelligent Charging and Starting Systems.” He explained that cranking systems for power mode and starting do a lot of interfacing with theft deterrent systems, and he emphasized the importance of schematicbased troubleshooting to learn how a system works before trying to repair it.

Delving into a case study, Mickle addressed how circuit testing can be used to determine why a module does not work properly.

Fretting corrosion can be prevented by lubricating the connection with dialectic grease, Mickle noted.

He explored other means of finding the cause of a starting problem, including diagnostic system checks, and he noted that hybrid engines use twomode starting systems with a lot of safety features that will cause the vehicle to shut down if certain criteria are not met. Mickle concluded his

seminar by touching on PCM-controlled generators, regulated voltage control systems, various charging systems and battery sulfation.

At 2pm, “How Have We Gotten Where the Industry is Today?” was conducted by Tony Passwater, President of AEII and Director of the Indiana Auto Body Association. As he explored how the industry has progressed to its current state and what must be done to take the industry back, Passwater explained, “Things happen in our industry on a daily basis, but it can be very difficult to explain in a way that the general public can understand.”

Taking a historical approach, Passwater looked back to the 1940s and 1950s when insurers attempted to control costs and payments through their business tactics. In the 1960s, a group of NY shops called on the US Attorney General Robert Kennedy to investigate, and when the insurance industry’s activity were deemed illegal, it led to the 1963 Consent Decree which insurers signed, promising never to repeat those practices.

In the social chaos that followed, including the assassinations of John F. Kennedy and Martin Luther King,

ship-based, and I believe the initial intent was admirable as far as focusing on the consumer, but once the insurers got into a position of power. Why not take advantage of it? The collision repair industry saw fewer delays, reduced marketing expenses, and increased workflow—it was absolutely fantastic and served the purpose of getting us hooked.”

Moving into the first decade of the new millennium, DRP relationships became more performance-based. Passwater calls this “the Big Squeeze.

They had us in a place where they could exert control. They started suppressing labor rates, limiting the time allotted for repairs, and exercising market manipulation. Of course, this doesn’t apply 100 percent of BASF’s booth at the NORTHEAST™ 2015 Trade Show insurance companies; there are being enforced, and you can sign it at some good insurers out there that do www.1963consentdecree.com. what they’re supposed to do. During By 1990, there had been many this time, the insurance industry intechnological advances, but there vented the term “prevailing market were also great inefficiencies in the in- practices;” this is an ingenious concept dustry. The last decade of the millen- because it’s difficult to prove them nium saw the birth of DRPs, and wrong—they refuse to pay for certain Passwater refers to this era as “the operations because ‘no one else charges Honeymoon period. It was relation- for it,’ but that’s because they’re already as well as the Vietnam War, Passwater notes, “The 1963 Consent Decree got lost in the shuffle and didn’t really resurface until seven or eight years ago. It’s a matter of exercising our rights; however, whether it can be enforced is a different story. We’ve developed a petition to insist on it

forbidden everyone else from doing it!

At this point, some people began to worry, but others were still happy, though we were beginning to lose the concept of earning business.”

From 2010 and beyond is the period Passwater refers to as “Death to an Industry.” At this point, insurers developed a “take-it-or-leave-it mentality. Insurer steering occurs because consumers don’t know better. People have sued, and some things have changed, but the insurance companies know how to delay cases so long that most people give up, like they’ve tried to do with the Hartford case in CT that’s been going on for 14 years. Because they own the data they report, they can manipulate it however they want, and there’s also blatant regulation abuse. If it doesn’t stop here, there won’t be an industry as we know it now. It has to stop.”

Passwater notes that some shop owners have sold and others have gone out of business, but the industry is “on the path of all addicts; there is no return unless it stops. He compares the industry’s response to Stockholm Syndrome where the victims blame themselves unfairly, are grateful to be See ‘15 NORTHEAST Features, Page 26

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 21

Coverage of the 2015 Resolution Forum and Leadership Meeting at NORTHEAST™

by Chasidy Rae Sisk

The 2015 East Coast Resolution Forum and Leadership Meeting at AASP-NJ’s 38th Annual NORTHEAST™ Automotive Services Show was as successful and informative as it has been in past years. Co-hosted by AASP-NJ and SCRS, the meeting was held on Friday, March 20th and attracted nearly 70 participants. The annual East Coast Resolution Forum and Leadership Meeting provides collision repair industry leaders with an opportunity to network with their peers and learn about the initiatives other state and national associations are pursuing to improve the state of the industry. This year, association representatives from each state in attendance were asked to share positive initiatives they’ve been working on over the past year and that they plan to pursue in 2015.

After AASP-NJ’s President Jeff McDowell welcomed attendees, Aaron Schulenburg, Executive Director of SCRS, reminded everyone that they must adhere to Anti-Trust guidelines; Ed Kizenberger, Executive Director of LIABRA and the meeting’s master of ceremonies, honored the country by leading the group in the Pledge of Allegiance before reading the Anti-Trust statement and asking attendees to introduce themselves.

The first state represented at the resolution forum and leadership meeting was Massachusetts as AASP-MA’s Executive Director Jillian Zywien discussed the addition of two new members to the association’s Board of Directors, and Molly Brodeur, President of AASP-MA, noted that they’ve completed their second strategic plan which calls for more focused efforts. The association will be focusing on the ADALB which oversees the licensing of appraisers in their state, and on releasing the Department of Insurance’s stranglehold on the ADALB. Massachusetts has a two-year legislative session that runs continually, and AASP-MA’s committees have received clean directions on what they will work on in 2015.

With Kizenberger noting that Connecticut has issues with legislative agendas, Tony Ferraiolo, President of ABAC, took the floor to discuss the association’s desire to amend legislation that their state already has, and they are currently monitoring proposed legislation to prevent double taxation on paint and materials which

benefits everyone. Ferraiolo believes, “The more information we share about what’s out there, the better.”

ABAC is also using the recent CNN report to inform consumers about the industry’s struggles, and they are supporting Senator Blumenthal’s efforts regarding imitation parts.

Ferraiolo challenged attendees to aid in this endeavor to educate consumers, and he encouraged them to learn all they can. Regarding steering, Ferraiolo noted that shops should record negotiations with insurers, but first they must consult with attorneys to ensure legal compliance.

When Kizenberger asked about the current status of the Hartford case, ABAC’s legislative counsel John Paresi noted that no updates have been received yet, but he stated, “Our side argued on the merits of the case, but the Hartford’s attorneys argued technicalities and tried to make it appear as though the insurer had been victimized.” ABAC expects to receive judgment on the final appeal early this summer.

Kizenberger pondered if the $38 million judgment will be enough to make the insurer change their behavior, and Ferraiolo pointed out that in the 14 years since the case was filed, the Hartford hasn’t had to change; “Even if they have to pay now, imagine how much they’ve made.” Kizenberger believes the industry should capitalize on the current media coverage and push these issues to the forefront of legislators’ attention.

“This explosion of information shows we’re not the only ones, as we’ve been saying for years. We’re just looking to level the playing field.

We are building a long overdue argument with legislators, and we need to act on this golden opportunity.”

Gary Wano Jr of the Oklahoma Auto Body Association spoke next about his recent visit to the Attorney General regarding a steering issue one of his customers experienced. The association is also working on a PSA about insurers’ referrals, the consumer’s right to choose, and the different between aftermarket, imitation and junk parts. Oklahoma’s Department of Insurance believes steering is a business issue, so the association has established a task force to monitor the issue because they feel a lot of legislation needs to be changed. Schulenburg noted that these recent efforts are

22 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

encouraging a high level of conversation about the issues collision repair professionals face, and it’s complementary to associations’ educational efforts. Kizenberger is pleased “we’re finally on the offensive instead of being reactionary. We’re building a lot of positive energy, and I hope we can keep it up.”

Next, Tony Passwater, Director of IABA, spoke about their current work on the legislative element, noting that the downside is losing members who don’t want to be so aggressive.

The national media’s coverage of collision repair issues has been beneficial, but it’s imperative to keep the issue relevant and new to make progress with consumers. Passwater has designed a website for consumers to share their experiences at www.ihavebeensteered .com, along with a toll free number 855-NO2STEERING. He says, “Because there is no regulation in Indiana prohibiting steering, it is imperative to increase consumer awareness. We need to stop the direction we’re heading or there won’t be an industry in ten years.”

IABA has developed a new

method for delivering the same information to all eight of their chapters; they’ve put together V-Live training, filming educational segments and posting them to their websites. They will be hosting Mike Anderson at their April meeting in answer to members’ pleas for more education.

Representing the Oklahoma Collision Repair Specialists, Ron Reichen noted that they currently have two bills in legislation, one regarding trade restraints and an anti-steering bill. He also discussed his success in small claims court through the use of an Assignment of Proceeds, and he hopes these short-pay cases will result in behavioral changes from insurance companies.

After a short break, AASP-NJ’s Executive Director Charles Bryant mentioned that the association is supporting two pieces of legislation, on Right to Repair and about counterfeit airbags. The association is also active on paint and materials issues and are pushing for the use of PMC programs.

This has led to a battle with the Department of Insurance who requested complaints but is now objecting to

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 23

collision repair facilities filing complaints on behalf of the consumer.

They recently lost a legal case on a better method for PMC programs on a technicality, but Bryant plans to appeal the ruling; he hopes to win and set precedence.

Regarding the CNN report, Bryant acknowledges that it angered some segments of the industry, yet “it did something we’ve always wanted – educate consumers. I feel there is a place for some used parts but not safety components. I think the public’s interest in this problem is fantastic, and I suggest the industry doesn’t allow it to fade.

Bryant also discussed the growing number of mobile auto body facility in NJ, and AASP-NJ plans to meet with the NJMVC to discuss enforcement of licensing regulations in order to address this problem. Bryant outlined two recent lawsuits in NJ pertaining to insurers’ refusal to pay labor rates and their insistence on using aftermarket parts. He noted that when an Assignment of Proceeds is involved, most insurers settle before court for fear of setting a precedent, yet insurance companies still made extravagant accusations against shops

in an attempt to defame and cripple them.

Beginning CCRE’s part of the discussion, President Tony Lombardozzi reminded everyone that the insurers’ policy is a contract, and the rest of that contract disappears when the insurance company elects to pay in money. “Insurers use language for their own benefit, but they have no business in the collision repair process. It’s a mindset; we have to understand that we are not the insurance industry; we’re collision repair people.”

Lombardozzi noted that CCRE has been harping on the same issues for 35 years, demanding more laws, litigation and legislation, but “we need to realize it isn’t working and that maybe we need to do something different. The industry needs to take an active role in their businesses and associations so we can figure out how we can take back the industry and move forward to get the current laws enforced. Associations’ leadership needs to pressure the Departments of Insurance and Departments of Justice to enforce the laws currently on the books.”

Going forward, CCRE is working on developing seminars based on

24 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

new ways of doing business, starting by looking at the 1963 Consent Decree and figuring out how to operate profitably in this new environment.

“We need to look at the hype and fear-mongering related to structural changes, tools and equipment and determine how much of this is because of other industries putting their hands in collision repairers’ pockets. Too many third parties interfere in how we do business, and I don’t see the value in it. The industry can adapt, but we have to understand that it’s our responsibility to begin the adaptive method.”

Mike Parker from the Vermont Auto Body Association followed Lombardozzi, discussing estimates from photos and the importance of helping consumers understand that insurance companies must pay for their repairs.

VABA has been sponsoring pro-consumer advertising, and they’ve introduced an aftermarket parts bill that limits the insurer from writing aftermarket parts on cars two years or newer, but Parker still worries about the use of aftermarket parts on older cars. Because an insurer challenged him to prove that aftermarket parts aren’t like kind and quality, Parker

purchased a hardness tester to compare aftermarket and OEM parts and will share his results next year.

Parker firmly believes, “You don’t negotiate with insurance companies. It’s simple – the insurer has three loss payment options: settle in money, repair or replace. They usually choose to pay in money, so their role is to pay for the bill. Nothing in the policy mandates the repair facility is required to negotiate with the insurer.”

While discussing short-pay lawsuits, Parker suggested that CCRE should host a legal seminar Kizenberger responded, “We don’t like to deal with legislation, but we do it because we have to.”

Representing NY and LIABRA, Kizenberger discussed their Parts and Procurement Bill which prohibits insurers from telling shops where to buy parts. It has been pushed to the side and nothing has come of it yet, though they are still working on getting it before both houses.

“Legislation is ugly, and we’re severely outgunned. It doesn’t get any easier after you get involved – you have to look at everything from at least five different angles.”

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Continued from Page 21

‘15 NORTHEAST Features

better off than others, and ultimately accept the system because they feel they cannot change it.

Continuing, Passwater pointed out that the purpose of any business is to make a profit. Insurance companies make money by controlling costs and through investments. He dove into calculations and figures, noting that the insurance industry “only” made $3 billion in 2008, the same year our economy suffered most. Insurance companies are spending more on advertising, and from 2008-2011, the cost of insurance policies increased by a rate of over 50% more than the cost of repairs. In 2010, collision claims only accounted for 16% of insurance costs. This led Passwater to a fundamental question, “Will there ever be enough profits for the insurance industry to get out of our business?”

Passwater believes that three key decision factors cause the collision repair industry to allow this third-party interference: fear, greed and herd behavior which describes how people will observe others’ actions and make

the same choice with planning to do so.

Exploring the Nash Equilibrium, Passwater showed that price cutting doesn’t lead to more market shares. If all of the competition lowers their prices, the market share will eventually equalize again. The collision repair industry has played the insurance industry’s game by agreeing to the following: labor rate concessions, paint and materials concessions, VIR reports, no markup on towing, maximum repair hours, maximum frame hours, variable labor rates, blending within deductions, prevailing market practices concessions, “favored nation” pricing, and bumper prompt abuse, but more ways are invented each year.

Passwater feels that it’s impossible for collision repair facilities to keep up with today’s ever-increasing requirements at constantly decreasing labor rates.

“The insurers are manipulating you when they claim ‘you’re the only one who charges for this’ – you’re not the only one! Call their bluff! Does any other business that performs a service not get paid? Can you decide not to pay for something after it’s done? Does any other business work

26 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

for free? We are in a war against rate suppression, tortious interference, manipulation of markets and public misinformation.”

Passwater believes the battle begins by looking in the mirror and deciding to stop being your own worst enemy. To win the war, the industry must work on multiple fronts to engage consumers.

“The past can only define the future if you allow it. What we do today will change the future. There’s no magic button to fix it – it’s going to take hard work, but the industry is worth it. We can never forget who our customer really is because we’ll lose this battle if we do. Our obligation is to repair vehicles safely, and it’s time for everyone to get off the sidelines.

We can’t sit and watch anymore; we need to take back control and protect consumers. Across the country, state associations are doing this through litigation, legislation, and by raising public awareness.”

So far, Passwater says 35 states have joined this movement, and he refers those interested to www.takingbackourindustry.com. He encourages all collision repair professionals to get involved in local and national associa-

tions. “Don’t underestimate the power of a few. It’s now or never.”

In the evening, “Stop Leaving Money on the Table,” a paid course was presented at 3PM, and the expo floor featured “It’s Now or Never! Calculate and Collect Market-Based Labor Rates Using the Variable Rate System.”

Sunday was NORTHEAST’s 7th Annual Family Day, featuring games and treats for the kids.

The trade show floor was open on Friday from 5-10PM, Saturday at 10AM-5PM and Sunday from 10AM3PM. On Saturday, Ryan Friedlinghaus of West Coast Customs made an appearance at BASF’s booth. Javier Soto demonstrated his painting skills by creating a custom design over the course of the weekend. Ron Ananian, the Car Doctor, broadcasted live from the trade show floor.

Over 50 exhibitors set up booths at AASP-NJ’s 2015 NORTHEAST Automotive Services Show, including American Honda Motor Company, PPG, Automotive Art Refinish, Valspar, LKQ, Pro Spot, Axalta, Sherwin-Williams and CCC Information Services.

www.autobodynews.com C

New Hampton, NY, Fire Department Restores Antique Fire Truck for Parades

by Donna Kessler, Times Herald-Record

There’s nothing like a parade: the bands, the floats and the dignitaries. But it’s the convoy of fire trucks that seems to impress folks the most. New Hampton Fire Company, like many in the area, has a truck specifically for parades.

There was a back-room casual discussion about how much fun it would be to have a special fire truck to use in

The New Hampton, NY antique fire truck on display after being restored. Photo Credit: Donna Kessler, Times Herald-Record

parades. Rob Albino, owner of Eagle Auto Body and Eclectic Cars in Middletown and president and lieutenant at the fire company, knew just where to find one. Albino found the 1960 American LaFrance Pumper in Pine Island.

Members of the fire department

decided to do the assembly and disassembly themselves. A bunch of the guys got together and every trim piece, bumper, fender—everything—came off. Don Sherman was the leader with the reassembly, while Anne Casullo, Sue Gray and Jim S. Gray Sr. also enjoyed having a personal touch in refurbishing the truck. The truck wasn’t in too bad shape; a little rust in the compartments needed clearing up, a new

George Lattimer, 97, the oldest active member of the New Hampton Fire Department, sits in the driver seat of the company’s restored 1960 LaFrance at last year’s Middletown Fire Parade.

Rob Albino, president and lieutenant of the company, played a role in obtaining the truck.

Albino also has a fire truck of his own. Photo Credit: Donna Kessler, Times Herald-Record

coat of paint and that special touch by some passionate firemen were all it needed.

Kevin Calnan and Melissa Fi-

mognari, owners of Maaco in New Hampton, did amazing work on the body and paint. James’ Window Tinting in Middletown applied the lettering, Rosen Glass in Middletown replaced the glass and Sandy’s Bumper Mart in Syracuse rechromed the bumpers.

After about five years, it was finally finished and Albino drove it in its first parade, the Middletown Fire Parade, in 2014. George Lattimer, 97, one

From left, Anne Casullo, Sue Gray and Jim S. Gray Sr. also enjoyed putting a personal touch into refurbishing the truck. Photo Credit: Donna Kessler, Times Herald-Record

of the oldest active members, sat in the passenger seat proudly ringing the bell.

“It was a great day,” said Albino.

Albino also has a fire truck in his collection. On his Eclectic cars showroom floor sits a 1924 Model TT that is

all original right down to the wooden spoke wheels. “That’s how I came to desire it,” Albino said. “I traded a car for it.”

Abino just did a little mechanical work.

It has a hand crank and an electric start.

The ’24 is a three-tank chemical fire engine. A bottle is inserted in the water tank. When arriving at the fire a hammer lever breaks the bottle and a chemical reaction and pressure occurs and then you can operate the hose.

Albino’s 1924 Model TT sits on the showroom floor at Eclectic Cars, which he owns. The ‘24 is all original right down to the wooden spoke wheels. Photo Credit: Donna Kessler, Times Herald-Record

As far as racing off to a fire, that might not be possible since the Model TT doesn’t even hit 50 miles per hour.

But Albino doesn’t plan on fighting fire with it. He is saving it for parades.

Thank you to the Times Herald-Record for permission to use this article.

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WorldSkills Competition

through Alden High School, and decided to enroll during his junior year in order to make use of this resource.

“Nate wouldn’t get flustered when competing. I think having the confidence that he has helped him go so far,” said Robert Verso, who has been a collision repair instructor at Harkness Career Center for 26 years. “I remember telling my colleagues that Nate would take first place at the state level.”

And Verso was right.

While competing at the high school level, Wagner placed first in the regional competition at Alfred State Vocational College in Wellsville, NY. He also placed first at the New York state competition, which was held in Syracuse, NY, that year.

Verso, who has taught three NYS winners, said he and Wagner boarded a plane to Kansas City, MO in June 2011 to compete at the SkillsUSA national

not only chosen based on ranking; other factors include the student’s interview responses and what he or she has done since graduating from vocational school.

“My experience with Nate was a very enjoyable one,” said Verso. “Immediately I knew that he was going to take this program seriously and he came to our school to learn. Nate would put 100 percent into class and shop activities. He would continue to practice what was taught to him until he got it right. He would also read or go online to learn new ways to get the job done. Honestly, I learned a few things from Nate that year also.”

Due to Wagner’s hard work and dedication to the collision repair field, he was able to be a part of an “incredible” event.

“It’s like the Olympics for the skilled trades,” said Wagner. “Thirtythousand very talented kids from all over the world are in one city for a week. It was unlike anything I had ever experienced.”

Nathaneal Wagner has been a painter at Autobahn Body Werks in Williamsville, NY, since he returned from the international competition in Germany

level. Wagner came in second place, only losing by a few points out of 1,000 total points.”

“I didn’t think I’d qualify for the international competition, since I had placed second; actually, I had completely forgotten about it until I got a call one day saying I was a candidate,” he said. “It was very exciting. But the better phone call came when they said they’d selected me out of the other competitors.”

He explained that the judges pick the automotive refinish students who placed first, second, third and fourth at nationals to put in a pool, and then from there select who will compete at the international level. The winner is

First place in his sector was awarded to a male student from Norway, while a female student from Sweden took home second place.

WorldSkills marked Wagner’s second trip to Europe. He took time off between high school and college to travel to France, Italy and Spain.

While in Germany competing at WorldSkills, Wagner was enrolled in the University at Buffalo, working toward a degree in mechanical engineering.

After two years, he decided he’d rather stick with his initial interest: collision repair. He is now a painter at Autobahn Body Werks, where he has worked since returning from Germany.

The shop is Mercedes Benz certified,

28 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

and located in Williamsville, NY, a suburb of Buffalo.

“I didn’t want to work in some office designing a part to a machine without seeing the culmination of that design,” said Wagner. “At my job now,

Wagner said he will be going back to school to get an Associates degree in teaching in the near future.

“From my experience studying and working in a skill trade, I’m very aware of the shortage of people in my generation who actually want to do what I do,” said Wagner. “Part of that is the lack of education.

In the field that I work in, when you go to a body shop to start your job, the employer will first hand you a broom, then a wrench, and then they’ll hand you a paint gun. You Nathaneal Wagner poses with young fans outside of the never really know how to use WorldSkills competition it, aside from a brief, inadeI get a wrecked Mercedes, invest my quate tutorial.” time, knowledge, and skills to repair it, Wagner added, “I know what edand bring it back to perfect condition. ucation enabled me to do, and I would To me that is very rewarding.” enjoy giving that back to other willing Wagner plans to someday share people. I really see the opportunity in the world-class training he received taking advantage of these programs before and during the competitions while they’re still available.” with other students in the collision reHe is currently the youngest perpair field. Along with Verso, represon working at his shop, and he said sentatives from 3M Automotive, Spies he can feel the sense of panic in the inHecker, and the German paint gun disdustry now that the older workforce is tributor, SATA, played a role in develthinning out. oping Wagner’s skills set.

Verso shares Wagner’s fears, stat“Rob said I could have his job ing, “As far as collision repair goes, I once he’s retired,” he added with a grin. think we are in trouble. There are not

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 29

enough young kids serious about this field.”

Wagner explained further, “In the United States, we don’t put emphasis on vocational programs. We send the masses to college to get white collar jobs and be engineers or lawyers. The trades are forgotten.

A candy-red paint job that Wagner is finishing up at Autobahn Body Werks

Even now, not many kids know about [the skills competitions], and if more were aware of the achievements they could reach at a young age, more would be willing to participate.”

For more information on SkillsUSA, visit www.skillsusa.org. To learn more about the upcoming WorldSkills event, visit www.worldskills.org.

The twenty-three-year-old recently purchased an old brick firehouse from the City of Buffalo and is in the process of overhauling it completely as his residence and home body shop.

MS Attorney General Jim Hood asks U.S. for Probe of Steering of Customers By Insurers

by Jack Weatherly, msbusiness.com

Mississippi Attorney General Jim Hood has asked U.S. Attorney General Eric Holder to investigate allegations that some insurance companies’ are “steering” auto policyholders to certain repair shops and coercing those shops to use inferior replacement parts. The intent of those practices is to pad the insurers’ bottom line, Hood said in the letter dated March 13.

Hood’s letter is part of a broad legal challenge to such practices and can be viewed at autobodynews.com. And it comes during an election year in Mississippi in which the incumbent insurance commissioner has a challenger.

John Arthur Eaves Jr. of Jackson is the lead attorney representing 17 states thus far and 500 body shops across the nation in cases being adjudicated in the U.S. District Court for Middle Florida.

The cases are being tried as multi-district litigation because of their similarities.

A Mississippi case, Capitol Body

Shop Inc. et al v. State Farm Mutual Automobile Insurance Co. et al, faces a Friday deadline to be refiled after Judge Gregory Presnell sent it back “without prejudice,” meaning it could be resubmitted with changes.

Eaves noted that in 1963 the Department of Justice entered a consent decree with insurance trade associations to halt the “steering” practice.

That point is raised in Hood’s letter to Holder, which also states that “insurers are implementing programs which require the use of after-market parts or re-manufactured parts, without disclosing the use of such to consumers and in spite of the fact that such parts are not of the same John Eaves Jr. like, kind and file photo quality of the original equipment manufacturer. This practice risks both the safety of the consumer, as well as the integrity of any vehicle warranties that the con-

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sumer may have otherwise.”

For example, Hood said, “body shops have reported to my office that they are pressured into accepting bids from [State Farm’s] . . . online system,” Parts Trader, “which “State Farm requires its ‘Select Service’ shops to use for obtaining parts.

“Body shops have reported to my office that they are pressured into accepting bid from Parts Trader for after-market or remanufactured part that are unsafe and far below the quality of the original equipment manufacturer.”

Hood asked Holder to see if such practices not only violate the 1963 consent decree but also federal laws and regulations.

Hood said on “Anderson Cooper 360” on CNN last month that insurers that use such practices attempt to “use their economic power to grind down working people.” He said in response to a question that he is “reviewing options” as to which actions he might take.

See MS Atty General, Page 32

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Continued from Page 30

MS Attorney General

State Farm issued this statement to the Mississippi Business Journal: “Our customers choose where their vehicles are going to be repaired.

We provide information about our Select Service program while at the same time making it clear they can select which shops will do the work.”

Meantime, the owner of Clinton Body Shop has the distinction of being John Mosely a litigant against file photo State Farm and also Republican candidate for state insurance commissioner.

John Mosley is challenging twoterm Commissioner Mike Chaney in the Aug. 4 party primary. There are no Democratic candidates.

Mosley would like to see changes in how the department is run, and how campaigns for the office are run.

For starters, he said that if he is elected, he would ask the Legislature to prohibit campaign contributions

from insurance companies.

Turning to auto insurance, he noted that the department website states that “the most an insurance company shall be required to pay for the repair of a vehicle . . . is the lowest amount that such vehicle . . . could be properly repaired or replaced . . . within a reasonable geographical or trade area of the insured.”

“Most insurance policies actually provide for greater payment than what is statutorily required . . . .”

Mosley said in an interview that “you don’t know what a struggle that is” to find one of those insurers that would pay beyond the minimum.

He recommends changing the wording of the guideline and the state law it is based on to include a definition of “properly” by adding language to the effect of “adhering to all manufacturers’ specified repair procedures.”

Also, he would like the see the licensing of body shops. Currently shops may voluntarily subscribe to the standards of I-CAR, or the Interindustry Conference on Auto Collision Repair, an international not-for-profit organization.

Moving to another area, Mosley said that property and casualty insur-

32 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

ance needs more transparency. He supports the latest attempt to pass what has been called the Clarity Act, which would make it easier to determine how insurers received in premiums and how much they pay out in each zip code.

The effort was launched after Hurricane Katrina and coastal homeowner’s policyholders felt that they were paying a disproportionate share.

He said that Chaney has been reluctant to support the measure till this election year. He said the information is available in the commissioner’s office, but “it’s not an easy task to look and see what the losses are by zip code.”

“These folks on the coast are still paying higher premiums 10 years after Katrina. And folks in the other parts of the state think their premiums are higher because they think they are subsidizing the Gulf Coast.”

Chaney said that he “killed” two earlier versions of the act in the past because using the zip codes would have been too fragmentary. He said he and others started working on the bill last year and reframed measure, which also tracks claims and premiums by county. Gov. Phil Bryant signed

House Bill 739 on March 13.

If he were to become commissioner, Mosley, 61, acknowledged in response to a question that he could be seen as in a potential conflict of interest of regulating the auto insurance industry while depending on it.

He agreed the best thing would be for him to put his business in a blind trust where he would have no dealings with it as long as he held office.

Chaney, 71, is the 11th person to hold the position of commissioner since the department was established in 1900, he said.

The department benefits from the stability of having a strong continuity, Chaney said.

He said that the body shops have some valid points about what kind of parts they use, “but in many cases the original parts are not as good some of the replacement parts they’re using.

You have to worry about the safety of automobiles.”

Meantime, the labor rates in Vicksburg, where he lives, are typically $50 to $55 an hour, Chaney said, adding, however, that in some cases department investigators have found that “shops are trying to get $70 to See MS Atty General, Page 50

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 33

ABARI Responds to PCI’s Claim that Legislation in Favor of Collision Repair Industry Results in Higher Premiums for RI Drivers

by Chasidy Rae Sisk

In March 2015, the Property Casualty Insurers Association of America (PCI) released a report claiming that insurance premiums in Rhode Island have increased drastically over the past decade. This is allegedly because of 17 pieces of legislation, sponsored by the Auto Body Association of Rhode Island (ABARI), that have been passed into law since 2003.

PCI claims that these laws have reduced insurance companies’ ability to provide “checks and balances,” resulting in RI drivers paying the third highest average vehicle damage insurance premiums in the nation and the sixth highest overall liability and physical damage premiums. According to PCI’s report, collision repair costs have risen as a result of increases in labor rates; they claim labor oppose these bills in favor of the collision repair industry.

Autobody News reached out to ABARI’s Spokesperson, Jina Petrarca-Karampetsos who provided documentation and noted, “There is no statistical support for PCI’s claims that ABARI is the cause of all that is wrong with insurance premiums in Rhode Island. Their report uses incompatible comparisons and statistics that refer to cost per claim rather than repair costs as a veiled attempt to once again vilify an industry working hard to keep Rhode Island citizens employed and provide safe quality repairs for fair compensation.”

This documentation, organized in the spring of 2014 and again in 2015 and shared at the House Committee hearing on March 24, shows that insurance profits in RI are twice the national average and have been since 2002. It also demonstrates that auto insurers in Rhode Island enjoy the 10th highest profit margin in the nation over the last decade. ABARI questions if this is because legislators passed a “file and use” statute in 2004 which allows insurers to file for a rate increase of up to 5% without approval.

ABARI’s report also shows that both auto insurance premiums and collision repair premiums have declined significantly from 2006-2011, but over the same time period, the cost of bodily injury premiums has risen.

Petrarca-Karampetsos explained, “Consumer legislation supported by ABARI cannot be blamed for any increase in auto premiums.” In fact, the cost to repair a vehicle was the same in 2011 as it was in 2004.

Further charts indicate that RI’s unique demographics has made it a high-cost insurance state for decades; in 1998, they were ranked fourth in the nation and were ranked fifth for the years 1996, 2000, 2002, 2006, 2008, 2010 and 2011, coming in sixth in 2004 and eighth in 2012, according to the National Association of Insurance Commissioners’ (NAIC) Automotive Insurance Database Report 2014, the report indicates.

ABARI’s report indicates that RI is aligned with other demographically similar insurance markets and has witnessed a slow increase in auto insurance premiums since the beginning of the Great Recession in 2008. Contrary to the insurance industry’s claims, “RI is not and never has been an anomaly with regard to auto insurance premiums,” Petrarca-Karampetsos stated.

When questioned about RI ranking fifth most years in insurance premiums at the 2014 hearing on this issue, PCI representative Frank O’Brien answered: “what else goes into the cost? Well in that regard, let me be very clear. RI is never going to be a low-cost state. We are never going to be 50, or 49, or 48 like Maine, Vermont and New Hampshire. Never. We are not Maine, Vermont or New Hampshire. We are more like MASSACHUSETTS, New Jersey, New York. We are a highly urbanized state.

We are a small state. We are highly concentrated in terms of population.

Our roads are in bad shape. We tend to hit each other a lot. SO, with that, that isn’t going to change. We are always going to be in the top five, top ten, top fifteen.”

In accordance with O’Brien’s statement, ABARI developed a chart to compare insurance premiums and profits in RI to comparable states, including Connecticut, Massachusetts, New York and New Jersey. ABARI’s report indicates that a 2013 Automotive Insurance Database Report by the NAIC showed those states ranked as sixth, thirteenth, fourth and first, respectively, in 2011.

Between 2004 and 2010, auto

34 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

body repair costs increased 2%, ABARI insists, despite PCI’s claims that consumer protection legislation has driven the cost of repairs up by 48% because of increased labor rates; in fact, RI’s hourly labor rate has been $45 per hour since 2009.

Petrarca-Karampetsos notes, “Though PCI alleges that RI’s labor costs have increased 24.3% since 2003, this is quite misleading when one notes that RI auto body shops have been receiving $44.45 per hour for labor costs since 2009. Publically available statistics demonstrate that RI has gone from the most expensive state to have a vehicle repaired in 2004 and 2005 to the fifth highest in 2010. As such, the consumer protection legislation ABARI sponsored has improve RI costs compared to national averages, quite contrary to PCI’s claim that RI has moved from thirteenth to second highest in the nation. We have actually gone in the opposite direction.” Updated reports presented in 2015 indicate that auto repair costs in Rhode Island have

been on the decline since 2009 and in 2011 were lower than in 2007.

As such, ABARI supports the current legislation presented to the House Assembly in favor of S2834 which could establish two classifications of auto body facilities in RI. The legislation will not mandate insurers pay higher amounts for repairs, but it will simply require them to conduct two separate labor rate surveys, one for each designated classification.

This bill will also serve to assure the motoring public that the collision repair facility they’ve chosen has the equipment and expertise to repair their vehicle properly.

As ABARI’s report concludes, Petrarca-Karampetsos states “ABARI has supported legislation over the last decade for the purpose of supporting small businesses and protecting consumers. Not one piece of legislation supported by ABARI requires an insurer pay a greater amount for auto body repairs. Instead ABARI’s activism has resulted in legislation See ABARI Responds, Page 43

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 35

Continued from Cover

Advisors Non-Exempt

ice Advisors could qualify; at other times, it has said that they could not.

At one point, USDOL issued an interpretative provision at 29 C.F.R. § 779.372(c)(4) in which it took the position that Service Advisors were not within the exemption. But after several courts nevertheless applied the exemption to them, for many years USDOL said that it would no longer dispute the issue.

In April 2011, USDOL deleted Section 779.372(c)(4). In accompanying commentary, it said that the change was made to reflect its view that the exemption is limited “to salesmen who sell vehicles and partsmen and mechanics who service vehicles,” and that Service Advisors did not fall within this description.

The Ninth Circuit’s Ruling In Navarro, Service Advisors challenged the overtime exemption’s application in light of USDOL’s revision and statements. The lower federal court dismissed their claims, finding that they did fall within the Section

13(b)(10)(A) exemption.

On appeal, the Ninth Circuit first found Section 13(b)(10)(A) to be ambiguous on the issue. The court said, “It is not clear from the text of the statute whether Congress intended broadly to exempt any salesman who is involved in the servicing of cars or, more narrowly, only those salesmen who are selling the cars themselves.”

The Ninth Circuit then evaluated whether it felt that USDOL’s revised administrative interpretations represented a reasonable reading of the exemption. Despite USDOL’s shifting positions, the Ninth Circuit found: Here, the Department of Labor has interpreted the statutory exemption to exclude service advisors by choosing the narrower definition of the term “salesman.” * * * [W]e conclude that the agency has made a permissible choice. The interpretation accords with the presumption that the § 213 exemptions should be construed narrowly.

On this basis, the court concluded that the Service Advisors are not exempt under Section 13(b)(10)(A).

The Court specifically acknowledged that its holding conflicted with decisions of the Fourth and Fifth Cir-

cuits, of several district courts, and of the Supreme Court of Montana.

Practical Impact of the Court’s Ruling Employers in states outside of the Ninth Circuit should note that its ruling applies only within its jurisdiction. And while in the Ninth Circuit the case undercuts the Section 13(b)(10)(A) overtime exemption where Service Advisors are concerned, even there it does not mean that Service Advisors can never be exempt from FLSA overtime.

The FLSA’s Section 7(i) provides another overtime exception for certain employees paid under a bona fide commission pay plan. It applies to an employee:

● Of a “retail or service establishment” (meaning a location 75% of the annual dollar volume of sales of which (i) is not for resale and (ii) is recognized as retail sales in the particular industry); and ● More than half of whose compensation for a “representative period” (of not less than one month) represents commissions on goods or services; and ● Whose regular hourly rate of pay for each overtime workweek is more than

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1.5 times the FLSA’s minimum wage.

Of course, an employer must determine whether the applicable overtime laws of a state or another jurisdiction include any exception like Section 7(i), or whether any similar provision is different from Section 7(i) in important ways.

Thus, although automobile dealerships in the Ninth Circuit cannot rely upon Section 13(b)(10)(A) for Service Advisors (unless Navarro is later reversed or overruled), it is possible that those employees can be exempt from FLSA overtime under Section 7(i).

Those dealers should evaluate whether Section 7(i) provides a viable alternative.

For more information, www.labor lawyers.com.

Autobody News thanks Fisher & Phillips LLP for permission to reprint their article.

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H OND A C ONN ECT I CUT

Lia Honda of Enfield E nf ield

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

Schaller Honda New Britain

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

Criswell Honda Ger m an t ow n

866-738-2886 Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com

O’Donnell Honda E llicot t City

410-461-5000 410-461-9654 Dept. Hours: M-F 8-6; Sat 8-5 bshortt@odonnellhonda.com

Ourisman Honda of Laurel Lau rel

800-288-6985 301-498-6050 Dept. Hours: M-F 7:30-7; Sat 7-4 ron.malitz@ourismanautomotive.com M ASSA CHU SETT S

AutoFair Honda Ply mou th

508-927-5272 Dept. Hours: M-F 7:30-7; Sat 7:30-6 service@autofairhondaparts.com

AC URA M ARY L AND

Tischer Acura Lau rel

800-288-6983 301-498-3322 Dept. Hours: M-F 7-6; Sat 8-4 wholesaleparts@tischerauto.com M ASSA CHU SETT S

Acura of Boston Brig ht on

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

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

MA S SAC H U S ET TS

Herb Chambers Honda of Seekonk

NE W J ERSE Y

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Madison Honda

Dick Ide Honda

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Wex f ord

800-648-0293 973-822-1710

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

724-940-2006

Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-5; Sun 9-5 Tespinola@herbchambers.com

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

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

LIA Honda Northampton

U ni on

Se ekon k

508-336-7100

N or th am p t on

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

Clinton Honda An n a n d ale

Planet Honda 800-964-7280 908-964-8411

Rossi Honda

800-468-2090 412-390-2908

V i ne l a nd

800-893-3030 856-692-4449

H i l l si de

973-705-9100

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

866-483-6917 201-868-9500

Brewster Honda

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

845-278-4177

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Sussman Honda

Lia Honda of Williamsville W il l ia msv il le / Buffa l o

Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com

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

We st N e w Yor k

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

VIP Honda

Honda of Turnersville

Hudson Honda

Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com

877-659-2672 716-632-3800

908-753-1680

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

A lba n y

B re w s t e r

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800-272-6741 518-482-2598

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

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Mont g omer yv ille

215-855-3587

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Dept. Hours: M,Tue, F 7-6; W, Thu 7-7; Sat 7-4 chrish@clintonhonda.com P r in c e to n

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

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800-682-5941 609-683-5941

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Ros ly n

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

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716-824-7852 Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com PEN NS YLVANIA

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800-960-9041 717-848-2600 Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

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Yo r k

E mm aus

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877-5APPLE5 717-849-6639

877-860-3954 610-967-6500

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

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

Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com

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

Elite Acura

Paragon Acura

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Ma p le Sh ad e

Woo d s i d e

Wexfo rd

Jen kint own

856-722-9600

718-507-3990

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

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

800-246-7457 724-935-0800

800-826-4078 215-884-6285

Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

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

NE W Y O R K

Acura of Westchester We st ch est er

914-834-8887 Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com

Smithtown Acura St. James

888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

Lehigh Valley Acura

Davis Acura L a ngho r ne

866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com www.autobodynews.com | MAY 2015 AUTOBODY NEWS 39

Texas Collision Repair Shops Cite Legal Issues with GEICO Regarding Certain Fees

by Stacey Phillips, Assistant Editor

Numerous collision repair shops in the Houston, TX, area are having legal issues with GEICO insurance company regarding the payment of certain rates for tow bills, administrative fees, and storage on total loss vehicles. Autobody News recently spoke to some of these shops to find out more.

“It is the opinion of the Houston Auto Body Association (HABA) that this is a calculated effort by GEICO to strong arm shops to accept unfair compensation for work completed by shops on total loss vehicles,” said James Brown of the Houston Auto Body Association (HABA).

One of these shops is Kopriva Body Works in Houston. This thirdgeneration family-run business is currently being sued by GEICO for damages under theories of fraud, violations of the DTPA, conversion, replevin and trespass to chattels.

John Kopriva, the owner of the 85-year-old collision repair shop, said, “We have never been sued or have had anything to resemble what is going on with GEICO.” Travis Crowder of Crowder Law Firm, who is representing Kopriva Body Works, said the suit is a result of fees charged by Kopriva in connection with vehicles determined to be “totaled” by GEICO. “Kopriva has generally denied the claims of GEICO and has asserted its own claims against the insurance company for sums due under a customer’s repair order and damages for bad faith prosecution of its groundless claims,” said Crowder.

The court date is currently pending.

Kopriva first noticed a situation with GEICO in April 2014 when a customer’s vehicle was brought to the shop after an accident. GEICO was the insurance carrier and came out to write an estimate.

“We have a good working relationship with GEICO,” he said. “People who come out to estimate are fair.

The way we look at it: the car writes the estimate.”

When the estimator indicated the car might be a total loss, Kopriva notified the customer of the situation. The customer explained to Kopriva that due to her financial condition she couldn’t afford to lose her car and wanted to explore possibilities to save it. He helped her come up with different scenarios to

put some money into repairing the vehicle. In the meantime, GEICO called to say they were going to total the car, and asked Kopriva to determine the costs incurred. He said they seemed to have no issue with the majority of costs, but “when we told them our administrative fee was $225 they said there was no way that we’re going to pay and the amount was excessive.”

GEICO informed the shop that they were only going to pay $50 towards the administrative fee.

“All insurance companies that we work with—non-DRP as well as DRP—have no problem with our administrative fee,” said Kopriva. After all of the time spent working on a total loss vehicle, he said, “$225 is a reasonable cost and is certainly appropriate.”

Kopriva said the next thing he knew he received a letter from GEICO stating that they were only going to pay $50 towards the administrative costs and if that was not acceptable they were going to sue. He was told to hold the car and not dispose of it. Kopriva Body Works currently has four of GEICO’s total loss vehicles at their shop.

“The clock is still running on them and they don’t seem to be interested in picking these cars up,” he said. “Basically, it’s like they’ve abandoned these cars,” said Kopriva. “What’s going to be next on their list of things that they want to control?”

Crowder said, “GEICO is thwarted by the fact that independent, non-aligned body repair shops are not regulated and are therefore free to charge any fee that they believe to be reasonable. In an attempt to force these independent shops to accept fee schedules that are acceptable to GEICO, the insurer has initiated these baseless suits in order to coerce the shops into accepting GEICO’s fee schedule.”

Crowder represents two other body shops with suits pending against them by GEICO for similar reasons.

“The most troubling thing to me is the total lack of basis upon which these suits have been filed,” said Crowder.

“While there are undoubtedly shops that charge unreasonable and insupportable fees for their services, none of the clients I am representing fall into that category and yet they are being forced to incur significant attorney’s fees to defend themselves.”

Ed Griffin, owner of Griffin’s Paint & Body Inc., said he had a similar experience with GEICO. A cus-

40 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

tomer brought in a car in July 2014 that was severely damaged. Although Griffin thought the estimator might total the car, instead she said it was repairable.

“As normal protocol, she left me the estimate and I called the customer,” said Griffin. “After beginning repairs, our technicians found more damage.”

Griffin said once they got the supplement in place, GEICO re-inspected it and finally deemed it a total loss, a considerable amount of time had passed. At that point, Griffin put together a bill, including the parts ordered and a $20 daily storage fee, which he said GEICO didn’t like since the car had been there three months.

Griffin received a call from the law firm and said he was told that GEICO would pay under protest and duress.

“I was kind of taken back and I didn’t know how to react to that,” said Griffin. “I feel like they are just bullying shops to get their way. We have costs of doing business that they don’t want to recognize.”

In business since 1989 and a member of the Auto Body Association of Texas (ABAT), Griffin said he has never had a situation like this before

or been in a lawsuit.

“GEICO’s policies and procedures are difficult to work with for us,” said Griffin. “They encourage you to do cut rate work with what they are allowing, in my opinion. That’s my battle with them. I need to be compensated and to compensate my workers fairly in order for us to do a good quality, safe repair on a vehicle.”

Griffin said as a small business in a small town, it can be challenging. He finds that a lot of work is steered away from him because he isn’t a DRP. “If you don’t fully go along with their money-saving policies and procedures, you get labeled hard to deal with and potential customers are steered away via the insurance company’s strong influence they have on customers.

“A lot of times I’ll have to go in my pocket to go that extra mile to make a customer happy and I should get paid for that but I don’t most of the time.”

Corey Pigg, a manager of S&W Expert Collision Repair, said the shop’s relationship with GEICO as well as other insurance companies has been somewhat of a feast or famine.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 41

“At one moment it’s great, at other times it’s rocky,” he said.

S&W has operated in Lufkin and East Texas since 1975 and opened their second location in Nacogdoches in 2001. Pigg said at the beginning of 2014, the company realized that in order to maintain profitability they would need to increase their rates. As a DRP for multiple insurance companies, S&W sent out notification to almost all of the companies they work with on a regular basis that their rates were changing in April after nearly four years of being the same. S&W also began charging a markup on outside tow bills and an administrative fee on total losses.

Even though S&W is not on any sort of DRP program with GEICO, “GEICO had a big problem with all of these changes and refused to pay,” said Pigg.

S&W received letters from a GEICO attorney stating the insurance company is only making “payment under protest and duress” because S&W charged an $800 markup on a tow bill that they had to pay.

“We asked GEICO to leave some blank checks with us in order to pay tow tickets with, but they declined.

They want us to use our own funds to pay their tow bills for free,” Pigg said.

“We had no choice but to get our customers involved.”

S&W found their customers to be more than willing to step up and help.

Many called GEICO supervisors as well as the Texas Department of Insurance. Pigg said the response was surprising.

“GEICO informed many customers that if they wanted S&W to repair their vehicle then the customer would have to pay the differences out of his or her own pocket,” he said.

In just one example, Pigg said GEICO towed a vehicle out of their facility to a shop 50 miles away to avoid paying their labor rates.

“We have had GEICO supervisors email our customers contact information to other local shops in order to steer them away from S&W while the customer’s vehicle was already at our facility,” he said.

Pigg said there have been some positive changes recently. GEICO began paying S&W’s new rates this year, which has helped the relationship they have with one another. However, he said GEICO still refuses to pay for certain required repair procedures and

requires the use of aftermarket parts.

Although Pigg said the company likes working with insurance companies for the most part, “The problem arises when an insurance company refuses to pay for work that is essential to repairing cars correctly or tries to steer customers to other facilities that may use cost cutting practices that compromise the integrity of repairs.”

“While partnering with insurance companies, we’ve always let our customers know that he or she and a correctly repaired vehicle are more important than any DRP program. We would rather take a loss on a repair or not repair the vehicle at all, than fix a car improperly,” he added.

Pigg, who is an active member of ABAT, said the association has given Texas shops a voice.

“We are no longer accepting the insurance company’s response, ‘Well, that’s a cost of doing business.” Or “you’re the only one that charges for that.” However, it seems the more we stand up for ourselves, the bolder some insurance companies get.”

Burl Richards, Owner of Burl’s Collision Center, is not involved in a lawsuit with GEICO but is aware of other body shops that are. As the Pres-

ident of ABAT, he stressed the importance of shops coming together.

“To me, the whole system is broken because everyone is scared to communicate because they’re afraid they’re going to step over an antitrust law,” he said. “Insurance companies have had us so scared and so concerned about that for years so we’ve started to educate ourselves and we’ve learned what antitrust really means.”

Richards operates two body shops in the East Texas area. One of them is set up with the latest technology and equipment such as resistant spot welders, aluminum prep rooms and expensive frame equipment.

About two and half years ago he purchased a second location without any frame equipment and an approximately 30-year-old paint booth. He said not all shops are set up for heavy collision repair, yet they are paid the same fees by insurance companies.

“All costs are going up and insurance companies are saying we’re not going to pay for it because others aren’t asking for it,” said Richards.

“We all have different expenses; each shop is different.”

Richards said there is currently no incentive for shops to do things the right

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way. One of his goals is to implement a tiered pay system in Texas. He said this would reward the shops that invest in equipment, employees and training.

He hasn’t purchased additional equipment at his other shop because the insurance companies will pay him the same rate regardless of his overhead.

“As a shop myself I felt like I was the only guy out there who was asking to get reimbursed and payed for procedures and processes that we were doing everyday,” said Richards. “It’s real simple. If we do the process and it is owed to us, we should be re-imbursed.”

During every ABAT meeting he passes on the same message to members: “If you’re not going to ask for it, you’re not going to get it.” Richards said the more shops get together they realize that “We’re competing against each other but we’re not against each other. It’s really the body shops versus the insurance companies… I don’t want it to be that way. At the end of the day it’s all about fixing the customers’ cars right.”

GEICO and its attorney at David Knight and Associates in Houston, Texas were contacted but had not yet responded to Autobody News as of press time.

LKQ 2015 Get Green Winner Announced LKQ Corporation celebrated Earth Day with the announcement of the winner for the 2015 LKQ Get Green promotion. The LKQ Get Green promotion ran from February 16th through April 15th. The nationwide sweepstakes offered customers a chance to win a 2015 Chevrolet Colorado(R).

The grand prize winner was WD Goad of Lexington, Virginia.

Goad received the 2015 Motor Trend Truck of the Year(R), a Chevrolet Colorado(R). “I didn’t believe it at first, it was a great surprise,” stated Goad.

Goad is the owner of Goad’s Body Shop, which has been serving Lexington for over 30 years. Goad opened the shop with only one employee and throughout the years Goad has grown his business, and today has over 20 employees. Goad and his qualified technicians offer their customers a range of specialized services from body frame work to paint.

“It has been a pleasure working with LKQ and Keystone Automotive.

They have a lot of great employees, even right down to the delivery drivers, who are very conscientious and we appreciate that,” stated Goad.

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ABARI Responds

Goad’s Body Shop participated in the LKQ Get Green through LKQ East Carolina located in LaGrange, North Carolina. LKQ East Carolina is a full service recycling facility that processes 3,000 late model vehicles each year.

The LKQ Get Green promotion is centered on Earth Day to encourage customers to participate in environmentally friendly practices. LKQ said it is dedicated to doing its part for the environment through a companywide green initiative to support a cleaner environment. Approximately 82% of each salvage vehicle by weight is recycled and the reusable parts are offered to customers at lowcost, environmentally friendly repair options.

To participate in future LKQ promotions, stay connected with through Facebook, Twitter, and Instagram for updates.

which: allows the consumer the right to choose a repair shop and ensures that they are properly informed of their right; requires an appraisal inspection by a licensed auto damage appraiser for all vehicles with $2500 or more of damage; requires technicians working on vehicles in auto body shops be certified; requires insurers use one industry manual in its entirety to appraiser a vehicle; allows a consumer to choose a rental company which has led to several new small businesses in RI; requires insurers to conduct a labor rate survey and report their results to the department of business regulation; and requires insurers use automotive industry valuation sources when determining the value of a total loss vehicle.

“All of the foregoing does not mandate an insurer pay higher repair costs to an auto body repair facility.

Instead, they are all intended to protect consumers and professionalize the auto body industry, and as demonstrated, have not resulted in higher insurance premiums for RI consumers.”

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email: Ifsparts@fitzmall.com 905 North Frederick Ave., Gaithersburg, MD 20879 www.autobodynews.com | MAY 2015 AUTOBODY NEWS 43

American Honda Launches ProFirst Certified Program

by Victoria Antonelli and Stacey Phillips

After more than two years of research and development, American Honda Motor Co. announced the launch of the ProFirst Certified body shop program in March.

“Today’s vehicles are more complicated and more sophisticated with a higher degree of technology than ever before in the way they are designed, built and the materials used,” said Gary Ledoux, Assistant National Manager for American Honda Motor Co. “Honda and Acura are no exception.”

Ledoux said collision technicans cannot repair “tomorrow-tech” vehicles with “yester-tech” knowledge, training, tools and equipment. “That’s what ProFirst Certified is all about—proper, complete and safe repair of Honda and Acura vehicles through proper training, repair information and equipment.”

The program is open to independent and dealer-owned collision shops. To qualify, shops must be either an I-CAR Gold Class shop or a VeriFacts VQ or Medallion shop. In addition, shops must complete Honda/Acura-specific training hosted by I-CAR, meet tool and equipment requirements, meet facility requirements, and have a CSI system in place.

“I think this is going to help raise the bar for all shops inasmuch as the quality of the repair they provide,” said

Ledoux. “With the advent of the unibody car in the early 1980s, technology changed dramatically and shops had to change to keep up.” He said the same thing is happening today. “But the person who will benefit the most, is the person who should benefit the most—the Honda and Acura owner when their car is repaired by a ProFirst Certified shop.”

He added that car-building technoloogy is not going to stand still. He predicts that “Ten years... or maybe even five years from now, we may be driving cars that use a technology that hasn’t even been invented yet. ProFirst Certified will change and adapt with the collision industry and business needs of American Honda to help bring value to participating shops, and proper repairs for Honda and Acura owners.”

“No brand earns more Top Safety Pick awards than Honda,” said Steve Osborne, Assistant VP of the Parts, Service & Technical Division. “It is only logical that we support safe and proper collision repair of our customers’ vehicles and that we identify repair shops that are certified to possess the necessary skills, training and equipment to perform those repairs.”

During its development, the ProFirst Certified program involved people and departments with American Honda including parts marketing, service training, service engineering, and service publica-

tions. The company worked with several of their business partners, including Axalta Coatings, I-CAR and VeriFacts.

I-CAR worked with Honda several years ago with the initial launch of the Honda ProFirst program. Gold Class was, and still is, the principle training requirement for body shops looking to get ProFirst Certified.

“Partnering with Honda to bring a portfolio of training modules to the industry, and recognizing Gold Class designated businesses as a path to the ProFirst program builds upon what they have already been doing to help assure the total capability of a repair shop to perform complete, safe and quality repairs,” said John Bosin, I-CAR Director of OEM Segment Development. “Honda is one of the earliest and most significant contributors to I-CAR’s Repairability Technical Support (RTS) Portal and they continuously work with ICAR to ensure their information on the ‘RTS Portal’ is comprehensive and a valuable resource to the industry.”

Verifacts shops are also eligible.

“VeriFacts is excited and honored to be a preferred program partner for the Honda ProFirst Certified Program,” said Nancy Fiorino, the National Director of Sales for VeriFacts Automotive. “Honda clearly shares our passion for excellence, earning IIHS recognition as 2015 Top Safety Picks in virtually all vehicle categories.

“Similarly, VeriFacts VQ Medallion and VQ facilities are recognized by Honda and consumers alike for their sustained excellence in collision repair. These exceptional repair facilities open their shops to independent thirdparty verification, giving the vehicle owner complete peace-of-mind that their vehicle was repaired using the latest repair methods, technology and procedures—tested and backed by Honda and industry best practices.” She added that the program will help ensure a safe, smart and transparent repair process.

Some of the benefits include a plaque for display plus free online access to all Honda and Acura service and repair information and parts catalogs. The shop’s contact information will be placed on the American Honda body shop locator website. Qualified shops will receive exterior signage, collateral promotional materials, and free access to a collision tech-line for help via telephone.

The cost of the program will be $2,700 annually. A limited number of shops will be awarded ProFirst Certified status in select U.S. metro areas. Axalta Coating Systems will provide inspection services to audit shops initially and then on an annual basis to confirm consistent compliance with program requirements.

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Social Media for Shops Tracking Your Success (or Lack of) Using Google Analytics with Ed Attanasio

Body shop owners as a rule are adept at studying and interpreting all kinds of numbers and statistics, and that’s why the successful ones are very good at tracking their performance. They calculate each minute that goes into every vehicle and what exactly their profit will be at the end of each day.

They know how to read Excel sheets and decipher the numbers and use them to refine their processes. It’s in their DNA and in a fast-moving, highproduction environment having useful numbers at your disposal is vital.

So, when it comes to online marketing, website development and SEO, the average body shop out there wants to know where their money is going and how many customers they are engaging through the Web and other online endeavors. They want to know where the buck starts and ends, in clear terms and with data they can use.

“I have been doing a blog now for eight months, but I have no idea whose reading it,” one shop owner told me recently. “People tell us they visit our website all the time, but how much time do they spend there and is it leading to new customers?” is another question pretty much anyone in the collision repair industry would want answers to.

Body shop owners and managers have 1,600 different things going on every day, so worrying about their results through their online marketing efforts is probably issue #1,601. But, even if they’re making good money and the shop is full of cars, they’re always keeping both eyes on the bottom line. The worst thing for a body shop owner is to think he or she is not getting good value for his or her money.

And that’s why Google Analytics can placate the troubled minds of collision repairers all over the world, because it provides real, concrete and undeniable numbers that can tell you whether you’re succeeding or floundering online.

What exactly is Google Analytics? Google Analytics is a free web analytics tool that generates detailed statistics about activity on a website.

On its website, Google explains that the system “helps you analyze visitor

traffic and paint a complete picture of your audience and their needs, wherever they are along the path to purchase.”

As the world’s most popular web analytics tool, Google Analytics is currently installed on over 10 million websites, including 60% of the top 10,000 websites on the planet and 50% of the top 1 million websites in the world.

Website owners use the service for two main reasons—it’s 100% free to use and also highly reliable. Another plus is the fact that Google made it as simple as possible, so that body shop people that are on the lower-tech side can quickly use it and make it a part of their overall online marketing package. To learn how to use it, there are a ton of very useful videos on YouTube.

David Moore, owner of Collision Websites in Tulsa, OK, has been using Google Analytics for all of his body shop clients since day one and has used it as an invaluable tool for their success online.

“When I show shops how it works, the light goes on,” Moore said. “It is a tool and if you really learn how to use it, you can do some great things with it.

For instance, many of my clients use it to track the results of some of their marketing efforts, such as e-mail marketing, online ads and other promotions. By referring to Google Analytics right after sending out 2,000 email newsletters, for example, you can see if it works or not.

If your traffic does not increase, then obviously you have to come up with a new approach. Maybe the graphics didn’t draw people in or maybe the timing of the newsletter was poor. Google Analytics can help you to re-calibrate your marketing, based on real results.”

The reports you’ll receive from Google Analytics are many, but here are the main measurable factors that you will surely want to know and refer to often: ● A graph showing the daily traffic the website receives. ● The number of visitors who came to the site during a specific time period. ● The average number of pages that visitors viewed while on the site. (The industry average is approximately 1.8

46 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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

pages.) ● Bounce rate: What a visitor does once they land on the homepage. If they leave the homepage without looking at any other pages, that’s considered a “bounce.” ● The average amount of time a visitor spends on the site ● Depicted in a pie chart, Google Analytics will tell you how much “Direct Traffic” you’re getting. This means that the user knew the URL, typed it in and hit “Enter.” ● Content View shows what pages visitors are visiting. Watch this section to measure how many people are doing what you want them to do, such as clicking on pages like “Locations,” “Map,” or “Blog.”

We asked Moore, What are the most significant numbers to be looking for when studying monthly Google Analytics reports?

“Some body shop owners get all

caught up in how many visits their site is getting and I tell them they should be more concerned about the quality of the visits,” he said. “When someone visits your site or your blog, how many pages are they looking at and how long are they staying on each page? If people are looking at your site for less than a minute and only visiting one page, maybe you need to re-design your site, so that people will stay for a while.”

So, if information is key and the numbers tell the story, sign up for Google Analytics today and start knowing rather than guessing when it comes to your success (or lack of) online.

Search: Autobody News on Facebook

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 47

Historical Snapshot

—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.

State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT with John Yoswick

uled to be introduced in several states by mid-May. It would streamline auto damage claim handling and repair processes, allowing customers to go directly to qualified facilities for inspections and estimates without visiting State Farm drive-in claim service centers.

The news release states that the program would also allow repair facilities who discover damages after the initial estimate to make repairs without reinspection by State Farm claims staff.

“We don’t think another inspection is automatically required when the work is being performed by a well-qualified expert with whom we have a Chuck Sulkala led a National Auto Body Council (NABC) solid business relationship,” project in 2000 to build a Habitat for Humanity home for a said Bill Hardt, State Farm family in need. The NABC raised $67,000 in donations for assistant vice president of the project, and more than 300 volunteers from the indusclaims. try helped build the Kansas City home from the ground up “We see this as a very proover the course of 10 days

20 years ago in the collision repair industry (April 1995) Members of the Automotive Service Association (ASA) Collision Operations Committee are optimistic about “Service First,” an enhanced claims handling program introduced by State Farm. According to a State Farm news release, the pilot program was sched-

gressive and much needed addition to the process to provide quality repairs for the consumer, and believe it supports the historical focus of all honest and ethical repair facilities,” said ASA’s Collision Division Director Russ Verona of East Rockford Collision Center in Rockford, IL. – As reported in Collision Expert.

State Farm continued the “Service First” program for about a decade, but by 2001 had already begun rolling out “Select Service,” the program that eventually succeeded “Service First.”

Verona died in 2006 at the age of 73.

15 years ago in the collision repair industry (April 2000) On the same evening that ABC’s “20/20” news program was blasting the collision repair industry for consumer deception and insurance fraud, a Kansas City family received the keys to a new home built by industry volunteers.

In a presentation during a Collision Concepts reception, Massachusetts shop owner Chuck Sulkala said the project, coordinated by the National Auto Body Council (NABC) and Habitat for Humanity, was a public demonstration of the many positive efforts undertaken by members of the industry.

The NABC needed to raise $50,000 to fund the project, but more than $67,000 in contributions had been received as of last month, Sulkala said. More than 300 volunteers— from shops, insurers and industry suppliers—helped build the home from the ground up over the course of about 10 days.

Sulkala admitted the project got off to a rocky start because the foundation for the home—poured by contractors prior to the arrival of industry volunteers—was more than five inches out of square.

“The key word is ‘was,’” Sulkala

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said. “We fixed it. It’s the same thing we do in our businesses every day when we take a wrecked car and put it back into the shape that it needs to be.

That’s what we did to a foundation that was off. That set us back by a day or two. But that house is a solid, quality house, and the woman who’s moving in there with her three kids is absolutely thrilled and delighted about it.”

– As reported in Autobody News.

The NABC went on to even larger projects, including raising $500,000 in 2003 for a medical facility at a camp in Montana for children with cancer.

10 years ago in the collision repair industry (May 2005) The Montana legislature overwhelmingly passed a bill that requires insurers to admit any qualified collision repair shop into their direct repair program (DRP). Senate Bill 388, which was signed by the governor, is intended to help ensure that non-DRP shops can compete with DRP shops for customers, and is in some ways an anti-steering law because it will remove barriers that can develop from DRP relationships.

“I think it will go a long way toward leveling the playing field,” said

Gene Dziza, owner of Collision Craft in Kalispell, MT, who pushed for the bill for six years. “I think that in our industry, it’s a really good idea to have us going back to open competition based on the merits of the service you provide, not who you are affiliated with. It will give our customers a lot more choice.”

– As reported in Auto Body Repair News. Interviewed three years later, Montana shops said the state’s unique law was working. “We can’t change the [DRP] criteria, but we have the right to see it and decide if we want to meet it,” Donna Fastenau of Hank’s Body Shop in Billings, MT, said. “The companies that had previously removed us…had to open the door and let us back on,” agreed Max Yates of Yates Body Shop in Butte, MT, who said his shop had been removed from multiple DRPs because of his insistence on including necessary procedures on his final bills that other shops may not.

5 years ago in the collision repair industry (May 2010) Connecticut Attorney General Richard Blumenthal has voiced support for a court injunction being sought by the

Auto Body Association of Connecticut (ABAC) to halt The Hartford’s unfair use of in-house appraisers.

Last November, a Connecticut Superior Court jury found The Hartford had engaged in unfair trade practices, and awarded nearly $15 million to shops in an ABAC-led lawsuit brought against the insurer. The association subsequently filed for punitive damages and for a court injunction to end The Hartford’s exclusive use of in-house appraisers, which the association says excludes independent appraisers and forces shops to accept artificially low labor rates.

In Blumenthal’s filing with the court, he said “the state has an interest in preventing the unfair suppression of labor rates that significantly harms the state’s economy and results in extreme economic hardship for independent automobile body repair shops.”

A spokesman for The Hartford, which has denied any wrong-doing and has said it will appeal the jury award, told The Hartford Courant newspaper that the insurer was “disappointed that the attorney general has chosen to support a position that the body shop owners admit is intended to increase costs for Connecticut con-

sumers,” and that it “is important to us that our customers have access to a repair program that provides great service at a fair price.”

– As reported in CRASH Network (www.CrashNetwork.com), May 1, 2010. A final decision in The Hartford’s appeal of the lawsuit is expected later this year from the Connecticut Supreme Court. At stake are: $14.7 million in compensatory damages the jury awarded to the shops; $20 million in punitive damages against The Hartford added by the judge; interest that could bring the total to close to $40 million; and the injunctive relief that Blumenthal was supporting. Following his election to the U.S. Senate in 2010, Blumenthal became largely silent on auto insurance issues, until earlier this year when he announced that he is urging the U.S. Department of Justice to investigate whether insurers are directing consumers to collision repair shops that have agreed “to use cheaper and possibly more dangerous parts.”

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Wedge Clamp Releases Anti-Static Device Called the Stat-Gun Wedge Clamp Systems have released a new anti-static device called the Stat-Gun to solve a long-time body shop problem.

The company said that even the best paint booths are vulnerable to the buildup of static electricity and its side effects: inconsistent lay down, mismatched blending, dark edges and patchiness.

Static buildup—caused by routine body shop tasks like sanding, masking, tacking and panel wiping— can turn a vehicle’s exterior into a giant electromagnet, attracting so much dust, dirt and other airborne impurities that painters are forced to compensate. That usually means adjusting flow volume from one area to another, resulting in problems like over painting, running and sinking.

The most common solution is anti-static wipes, but their added time, effort and ongoing material costs can penalize the average body shop thousands of dollars a year.

Wedge Clamp’s Stat-Gun is a new solution that eliminates static on a vehicle by neutralizing imbalances in negative and positive charges on its surface. It does this by using built-in microprocessors and tungsten emitters that generate an invisible ionizing

Continued from Page 32

MS Attorney General

$75 an hour.”

Chaney believes that the current outbreak of hostilities between body shops and insurers—at least in Mississippi—was fed by a horrendous hailstorm two years ago.

The storm “did $500 million in damage from Vicksburg to Meridian in a band about 15 miles wide. A hundred and 80 million of it was in automobiles in the Jackson metro area.

About 20 body shops were making all that money. That’s when our nightmare began with the body shops . . . which were billing without preauthorization” from the insurers.”

“It basically was a spitting contest between the body shops and the insurance companies. We didn’t have a lot of complaints from consumers.

We were able to take care of them.

John [Mosley] made a lot of money during that time.”

As for contributions from insurance companies regulated by the state, he said his position is “you’ll still get good government whether you con-

spray that effectively neutralizes surface charge, according to a Wedge Clamp press release.

“I couldn’t believe what a difference the Stat-Gun made, especially on silver and gold metallics,” said Dave

the base and clear coats. The vehicle is then ready to be painted.

Battery power eliminates the need for cable and lasts for 12 hours.

Instead of standing up, tiny paint globules now cling to the surface.

Halos become invisible on the newly static-free surface, according to the press release.

With their irregular static charges, plastic bumpers and grilles can present a problem. But once the static charges are eliminated and no areas are either attracting or deflecting paint particles, plastic becomes easier to paint.

The Stat-Gun is also the only battery-powered antiThe Stat-Gun in action, removing static buildup from a static device approved for vehicle before paint is applied flammable environments, Naismith, Painter at Craftsman Col- according to the press release. It is delision. “I didn’t get any halos on signed to the highest safety standards, blends at all, and I never had to denib. as evidenced by its European ATEX Instead of adding a step to the process, approval for class 1 flammable area, the Stat-Gun actually removed a step including paint spraybooths. by eliminating the need for anti-static For more information about the wiping. I got my jobs done faster.”

Stat-Gun or NitroHeat, call today at 1The Stat-Gun hooks up to the air 800-615-9949, email at nitroheat@ supply like a conventional blow gun wedgeclamp.com, or visit their webfor cleaning the vehicle surface before site at www.wedgeclamp.com.

tribute to me or not.”

He conceded that it takes a lot of money to run for the office. He’ said he’ll need $300,000 to $400,000 this year. As of Jan. 30, his campaign has received $136,084.13 and had cash on hand of $267,921.99, according to the secretary of state’s office.

But in point of fact Chaney said: “We don’t take money from big insurance companies.”

Otherwise, “if I see where I have to regulate somebody who has given me money, I’ll refuse it,” Chaney said.

Or if someone is offering a campaign contribution to curry favor, “I’ll prosecute ‘em.”

Mosley’s campaign was not started till late February, and so his first reporting deadline will be May 8.

Autobody News thanks the staff of msbusiness.com for permission to reprint their article.

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The Collision Repair Education Foundation’s (CREF) 14th annual summer golf fundraiser, taking place July 22 in Detroit, MI has sold out and a waiting list has been created for those interested in playing. Golfers will play a round of golf at the Arnold Palmer designed Northville Hills Golf Club and can register online. This fundraiser takes place in conjunction with the NACE and Collision Industry Conference (CIC) industry meetings being held that week in Detroit, and funds raised through this event assist the Education Foundation in providing support to collision repair students and their school’s collision programs. Additional registration spots are anticipated to open up and those who contact the CREF will be included in the event on a first-come, first-serve basis.

Industry members not able to attend this event are encouraged to participate in the LORD Corporation sponsored helicopter golf ball drop that is taking part in conjunction with the event as one individual will win up to $12,000.

Those interested in being added to the waiting list, should contact Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed -foundation.org/ 847-463-5244.

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New GM Silverado Engineered for Better Serviceability During Collision Repair

by Stacey Phillips, Assistant Editor

When General Motors initiated the redesign of the Chevy Silverado 1500 full-size pickup truck several years ago, an important aspect of the project was to incorporate features to reduce the time, cost and complexity during the collision repair process.

“When we design trucks, we don’t only consider what features our consumers demand from a full size-truck,” said Mark Szlachta, Advanced Service Design Engineer for General Motors. “We also approach the process

as a service engineer was to look at the project from a body repair perspective.

“I’m looking at the vehicle from the perspective not how it’s going to look when it’s done, or how it’s going to be built, but how it will fare in the event of a crash. How we are going to take it apart, how we’re going to put it together and try to make sure that at the very least we don’t lose any serviceability,” said Szlachta, who has a background in collision repair. “In fact, our job is to always improve serviceability.”

Tom Wilkinson, communications manager for Chevy Trucks, said, “The other thing that continually evolves are safety standards and crash testing, such as new roof crush standards and new offset front impact

The 2015 Chevrolet Silverado truck

standards. We have to do a lot of reengineering to make sure that you’re doing well in those tests.”

The new Silverado is constructed using significant amounts of highstrength steel, particularly in the frame and cab structure. He said this makes the truck stronger and more rigid for improved safety, ride and vibration control, and helps reduce mass for improved fuel economy.

When Autobody News asked

Wilkinson if there were any plans to change the Silverado’s body components to aluminum during this midcycle update, he said there are no plans to do so. “We already use aluminum hoods on full-size and midsize trucks,” said Wilkinson.

“Given the ongoing wave of new, refreshed and redesigned vehicles being introduced each year, it’s more important than ever that automakers focus on design for affordable reparability,” said John Van Alstyne, President and CEO of I-CAR, the Inter-Industry Conference on Auto Collision Repair. “Understanding and adapting to the issues and opportunities associated with advanced materials and technologies is not only a key consideration in the early stages of the design and engineering process, but the impact on repair must also be considered upfront to ensure complete, safe and quality, and affordable repairs throughout a vehicle’s total lifecycle.”

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Engineers incorporated several features into the new Chevrolet Silverado’s body structure in order to help reduce the time, complexity, and cost involved with body repair

with our technician hat on, ensuring we engineer a truck that is straightforward and cost-effective to repair.”

When Autobody News asked Szlachta the various requirements that went in to redesigning the truck, he said that one of his primary goals

Szlachta said a full-size pickup truck is typically re-engineered every five to seven years. “The reason why we change is because technology changes,” he said. These new technologies help make the truck quieter, stronger, lighter and more fuel efficient.

Continued from Page 24

news because, “The industry is hungry for information, but our biggest challenge is we’re preaching to the choir. The reality is we’re all entrenched in it. There is a large population of shops not being reached. We need to get the message to those who don’t want to hear or don’t even know they need to hear. We’re working on getting good information into the hands of the people who need it most.”

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Candidates Announced for 2015 SEMA Board Election; Online Voting May 13-June 9

The slate of candidates for the 2015 SEMA Board election is as follows:

Chairman-Elect Category (one open seat)

● Donnie Eatherly – President and CEO, P&E Distributors ● Wade Kawasaki – President and COO, Coker Group

Manufacturers Category (two open seats)

● Susan Carpenter – President, JR Products ● Laurel Dasher – Northeast Sales Manager, Power Teq ● Dave Edmondson – Vice President, Roadwire Distributor/Retailer Category (two open seats) ● Jim Bingham (Incumbent) – Pres-

ident and CEO, Winner’s Circle Speed & Custom ● Nick Gramelspacher (Incumbent) – Vice President Sales & Marketing, Meyer Distributing ● Parley Valora – Vice President, Premier Performance ● David Ziozios – CEO, Motovicity Distribution Services Category (1 open seat)

● Dan Kahn – President, Kahn Media ● Clint Sly – Chief Marketing Officer, Hagerty Insurance Co.

Voting will take place online between May 13–June 9 at 11:59 p.m. (PDT), and is open to current SEMA-member companies. Votes must be cast by each company’s primary contact. Details with ballots and links will be sent to the member company’s designated primary contact in May. Winners will be announced in June and formally inducted into the SEMA Board of Directors at the SEMA Installation Gala in July. For more information about the 2015 SEMA Board of Directors election, contact Judi Ritchie at 909-978-6671 or judir@sema.org.

Fantasy Collision & Customs Focuses on 2010 Camaro

After 12 months and nearly 4,000 hours, Fantasy Collision & Customs unveiled a special project they had been working on: a revamped Dodge Charger coupe.

That was just two years ago. Since then, the Warren, MI, shop has worked on multiple customization projects.

Owned by Nick Kizi, the business specializes in automotive restoration and customizing and is currently focusing its efforts on a 2010 Camaro with a ‘72 Nova body scheduled to be unveiled at Autorama 2016 in March.

The project involved taking the body off of a brand new 2010 Camaro and replacing it with a 1972 Nova. “It’s going to look like a ‘72 Nova with all of the brand new technology,” said Kizi.

This includes a Camaro engine, supercharger, Airbag suspension, side airbags. ABS and a new computer system. “It’s going to be one really cool car when it’s done.”

When Kizi opened the shop with three other employees in 2010, they initially focused their efforts on collision repair. They soon realized they wanted to show their customers some of the other things they could do. Their first customization project was a 2010 Mustang. After receiving a second-place trophy in 2012 at Autorama in Detroit, MI, Kizi decided to continue focusing on

customization alongside the collision repair work they were doing. The customized Dodge Charger was the next project on their list.

“In the late ‘60s and ‘70s, they built two-door chargers. They don’t make them anymore,” said Kizi. “They

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build only four doors so we decided to do a two door just like they used to do back in the day.” The company purchased a new two-door 2013 Dodge Charger from the dealership with the intent of making it a wide body with a glass roof. “We decided to do a computer rendering on the vehicle so we could see how it would look,” said Kizi. After a second rendering, they shortened the wheel base by eight inches.

For more information about Fantasy Collision & Customs, contact Nick Kizi at (586) 872-2064

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Axalta Announces Sale of Shares to Berkshire Hathaway

Axalta Coating Systems Ltd. announced on April 7 that an affiliate of Berkshire Hathaway Inc. has entered into a definitive stock purchase agreement with certain affiliates of The Carlyle Group for the purchase of a total of 20 million of Axalta’s common shares. The aggregate purchase price is $560 million, or $28.00 per share.

Axalta will not receive proceeds from the sale of the shares.

Berkshire Hathaway agreed that it would not dispose of the shares for 90 days following the sale. Axalta has agreed to provide Berkshire Hathaway with certain registration rights following the expiration of that 90day period.

The shares are being offered and sold in a private placement pursuant to Section 4 of the Securities Act of 1933, as amended. The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

“We are pleased to have Berkshire Hathaway Inc. take this share ownership position in Axalta,” said Charlie Shaver, Chairman and CEO.

Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ NASCAR® and Sherwin-Williams, the nation’s largest specialty retailer of paint and paint supplies, announced a three-year extension to their Official Partnership. The newly signed extension will designate Sherwin-Williams as the “Official Paint of NASCAR” through 2017.

“Our continued partnership with Sherwin-Williams is another example of FORTUNE 500 brands successfully using NASCAR as an integral part of their marketing mix,” said Norris Scott, Vice President Partnership Marketing.

“Sherwin-Williams’ integrated approach using our intellectual property, both at track and at retail has proven highly effective. We look forward to expanding the Sherwin-Williams relationship across its multiple business divisions.”

By continuing as an Official NASCAR Partner, Sherwin-Williams will also retain its designation in the “Official Automotive Paint of NASCAR” and the “Official Transportation Finishes of NASCAR” categories. Sherwin-Williams Automotive Finishes division will further expand its visibility as one of the leading product innovators and servicers to the collision repair and original equipment industries. Sherwin-Williams is the

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Through its renewal, SherwinWilliams maintains its role as a Contingency Sponsor in the NASCAR Sprint Cup Series™ and NASCAR Touring & Weekly Series. As part of the Contingency Program, Sherwin-Williams will be title sponsor of the Fastest Lap Award in the NASCAR Sprint Cup Series.In addition, Sherwin-Williams continues as a Proud Partner of the International Motor Sports Association™ (IMSA®), extending a partnership that began in 2013.

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“We’re extremely excited and honored to continue and expand our role as the ‘Official Automotive Paint of NASCAR,’” said Adam Chafe, Vice President of Marketing for SherwinWilliams Automotive Finishes. “Since 2000, some of the biggest names in motorsports have trusted their vehicles’ finish to Sherwin-Williams. We aim to help teams cross the finish line and ensure that their cars and sponsors always look their best on the track; that also holds true with every repair and repaint our collision repair center customers provide for their end customers.”

The designation as the “Official Transportation Finishes of NASCAR” will also help Sherwin-Williams further expand its visibility as one of the leading product innovators and servicers to the fleet refinishing, heavy truck and bus, aerospace and commercial manufacturing industries.

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Women’s Industry Network Announces Winners of the 2015 Most Influential Women in Collision Repair Award The Women’s Industry Network (WIN®) recently announced the winners of the 2015 Most Influential Women (MIW) in Collision Repair Award. The award recognizes women who have enriched the collision repair industry with their leadership, vision and commitment to excellence.

The following four women were selected to receive MIW honors. They will be recognized at a gala dinner celebration held in conjunction with the WIN Educational Conference being held May 4-6 in Baltimore, MD. “The nominees this year showcased a breadth of responsibilities,” stated Russell Long, President of Change Innovations. “I was impressed with their dedication, creativity and accomplishments. The Award recipients reflect well-rounded profiles of achievement in their jobs, in the collision repair industry and in their communities.” Long’s organization, a business consulting and executive coaching group, was contracted as an independent third-party entity to conduct the interviews and select the honorees.

“Each year, women from different facets of the collision repair industry are selected for their passion and commitment to progressive and positive evolution of the industry,” stated Denise Caspersen, WIN chair. “There is so much opportunity for women to have rewarding careers—the sky is really the limit for those with skill, creativity and a strong work ethic.”

The MIW program’s charter aligns with WIN’s mission to “enhance the role of women in the industry.” For more than 14 years it has recognized more than 80 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. “We are proud of the fact that MIW recipients are active and visible in the industry for years after they received the MIW award,” said Margaret Cheryl Boswell Knell, Director of Corporate Administration at I-CAR, a 2001 MIW Honoree, and Co-Chair of the 2015 MIW Committee.

Established in 1999 by AkzoNobel, WIN acquired stewardship of the Most Influential Women program in 2013.

Cheryl Boswell Cheryl Boswell is constantly asking this question, “Can we do it better?”

Boswell is the manager partner and CFO of DCR Systems, LLC in Duluth, Georgia, a company that develops outsourced, turnkey accident repair centers based on ‘lean manufacturing’ principles. Boswell provides strategic leadership for DCR Systems, overseeing the company’s financial functions while developing best practices. She is also a recognized Process Improvement (“Kaizen”) leader who has volunteered her time working with repairers and insurers on process improvement in both the United States and Canada in order to foster better relations for the benefit of the consumer.

Embedded in the concept of lean is the principle of continuous improvement, which is why she’s always asking, “Can we do it better?” WIN said what is unique about Boswell is that not only does she have the insight to ask the tough questions, she has the ability to explain difficult concepts in a way that resonates for a diverse audience.

When asked about what the MIW award means to her, Boswell said, “It means I have an obligation to push myself and ask, “What more can I do for the industry?” She is an active volunteer in her community and in the industry. She has lent her time to the WIN Membership Committee and the Lauren Fix Collision Industry Foundation (CIF), where she has served on the Board of Trustees since 2013 and also serves as the organization’s treasurer. In March, she was elected to the WIN board of directors. Said Petra Schroeder, a fellow CIF Trustee and WIN board member, “Cheryl is a doer—someone who makes things happen. Coming up with new and better ways to get things done, seems to be second nature to her. I have great admiration for her.”

Lauren Fix Lauren Fix, President of Automotive Aspects Inc. in Lancaster, NY, said that she wants to educate drivers across America… and she’s doing it.

Fix comes from a long line of automotive professionals and began working on cars at the age of 10. It wasn’t

56 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

long before she was immersed in the car culture, restoring and driving her own beloved rides.

Fix soon realized that she might be able to share her “I can do that” enthusiasm to motivate others to think differently about vehicle maintenance and safety. Working as The Car Coach, Fix has become a nationally recognized automotive expert, author, spokesperson, media guest, keynote speaker, television car host, race car driver and ASE certified technician. A trusted car expert, Fix is a top woman in the automotive world and provides an insider’s perspective on a wide range of automotive topics and safety issues.

In the past several years, Fix has expanded her audience across the country in person, print, and on-air to educate people about a wide-range of automotive topics and issues. Highlights of 2014 include multiple national Lisa Siembab appearances (CNN, Fox Business News, NewsMax TV, Arise America, HLN, Al Jazeera Amer-

ica, and Inside Edition) covering the latest trends in automotive technology, and information for consumers on proper car maintenance, travel and repairs.

WIN said that Fix stands out among other automotive professionals because of her high visibility in the public spotlight, her strong drive to educate others and her unique role as a liRuth Weniger aison between the repair shop, the automotive boardroom, and the average driver’s home garage. A recipient of multiple industry awards and recognitions, she said she is most proud of her credibility with consumers.

Her contributions bridge the growing gap between specialized technology and the average driver.

Fix said that she lives the saying posted over her desk: “Do what you love, love what you do.

Lisa Siembab Lisa Siembab, Owner of CARSTAR Berlin in Berlin, Connecticut, said See WIN 2015 Winners, Page 63

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Morristown 866-9-BMW PARTS 973-796-3146 Fax M-Fri 8am-6pm

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PENNSYLVANIA Apple BMW

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 57

Industry Insight

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988.

He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

SCRS Event Brings Shop Associations Together to Discuss Efforts, Share Ideas with John Yoswick

Collision repair association leaders from around the country met in Secaucus, NJ, in mid-March to share ideas and discuss state legislative or regulatory successes and efforts. The “2015 East Coast Resolution Forum,” an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASPNew Jersey’s NORTHEAST™ 2015 trade show.

Ed Kizenberger, executive director of the New York State Auto Collision Technicians’ Association (NYSACTA), moderated the meeting and told attendees about the legislation his association is supporting that would prohibit insurers from requiring repair shops to use specific vendors or processes for the procurement of parts or other necessary materials.

The bill (SB 1207) is similar to one introduced in New York in 2013, and to

bills introduced this year in Illinois and Minnesota as well.

Kizenberger also shared a letter he wrote to New York Attorney General Eric Schneiderman, asking him to view the February 11 “Anderson Cooper 360” segment on CNN examining insurer involvement in the collision repair industry. He urged Schneiderman to join other state attorneys general in either filing a lawsuit against insurers regarding some of their practices, or to join Sen. Richard Blumenthal (D-Conn.) in urging U.S. Attorney General Eric Holder to examine consumer steering and other insurer practices.

Such efforts can pay off, Oklahoma shop owner Gary Wano said at the meeting. He said he was among a handful of repairers who met with representatives of his state’s Attorney General’s office last fall to discuss several issues, including “steering.”

The timing, he said, was fortuitous.

58 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

“The Assistant Attorney General looked at us and said, ‘Wow, that just happened to me,’” Wano said. “Her son had just been involved in an accident, and GEICO Insurance told her to go to a shop 20 miles away from her home, after she already said she had a particular repair facility she liked to use in her neighborhood.”

The information from the shops led Oklahoma Attorney General Scott Pruitt to issue a warning to consumers about steering, and to a subsequent public service announcement on the topic produced by the state insurance department. The phone number listed in the public service announcement connects consumers with a taskforce that can take verbal as well as written complaints from consumers.

“This is the most action we’ve seen in Oklahoma since the early 1990s,” Wano said.

SCRS’ Aaron Schulenburg said such efforts help those in other states

as well; the Oklahoma public service announcement, for example, helped prompt a nearly identically-worded one in Montana.

Legislation is a big focus of the Alliance of Automotive Service Providers (AASP) of Massachusetts.

House Bill 857 would change two currently-required consumer disclosures.

Under the bill, the current disclosure on any estimate that includes nonOEM parts would have to be in at least 12-point type rather than at least 10-point type; it would also be extended to say that use of such parts may void existing warranties, and would have to include notice of the consumer’s right to use the shop of their choice. The second change would require any insurer recommending shops to also tell the consumer verbally or in writing that, “Under Massachusetts law, you have the right to choose a registered repair shop of your choice. All registered re-

pair shops must guarantee their repairs.”

Another Massachusetts bill (HB 883), similar to one introduced two years ago, would require the state’s insurance commissioner to establish a minimum labor rate insurers must pay to shops based on the average of the hourly rates paid by insurers in five surrounding states (where labor rates are as much as $10 higher). The commissioner would have to review the minimum hourly rate once every three years.

AASP-Massachusetts is also backing two other bills that will make changes to the state’s Auto Damage Appraiser Licensing Board (ADALB). One bill would shift oversight of the board from the Division of Insurance to the Division of Professional Licensure. Jillian Zywien, executive director of AASP-MA, said all other state licensing boards are under that division, and the association believes the ADALB should be as well.

The second bill (H 816) would add two additional members to the 5member ADALB. The board currently includes two representatives affiliated with the body shop industry, two af-

filiated with insurance companies, and a chairman (appointed by the commissioner of insurance) who is not affiliated with either industry. Under the proposed legislation, the state attorney general would appoint two additional board members, one representing the attorney general’s office and one representing consumers.

“The ADALB oversees all licensed appraisers in Massachusetts and is a place where repairers and consumers can seek remedy for improper repair appraisal negotiations,” Molly Brodeur, president of AASP-MA, said. “The Board’s current configuration has eroded its mission. There is also undue influence from the Division of Insurance, which further complicates the ADALB’s ability to act. Our legislative and regulatory agenda is focused on bringing order and functionality back to the ADALB.” Representatives from Connecticut at the meeting discussed the awaited decision in The Hartford’s appeal of the $34 million dollar judgment against the insurer in a class action lawsuit brought by the Auto Body Association of Connecticut (ABAC) and several shops in the state. The two sides in the case squared off before the

Connecticut Supreme Court in January, with The Hartford appealing the 2013 judgment that awarded repairers millions in compensatory and punitive damages after a jury agreed The Hartford suppressed labor rates through unfair trade practices.

“There’s no specific timeframe, but my sense is probably within the next three to six months we’ll have a decision,” said attorney John Parese, though he is not personally involved in the case.

With interest, a ruling in the shops’ favor would probably result in a net award of close to $40 million.

Tony Ferraiolo, the president of ABAC, was asked at the meeting if he feels that’s enough to change the insurer’s behavior.

“It’s taken 14 years since we filed the case to get to the final decision on this thing,” Ferraiolo said. “Even if they do have to pay that amount, can you imagine what they made by not having to change the way they do business for the 14 years?”

Ferraiolo said the association also is supporting legislation (5655), introduced on behalf of a jobber in the state, that calls for clarification of state sales tax regulations on automotive

paint. Ferraiolo said his state is one of five with a “double-taxation issue, where we are paying tax to the jobber on paint-related materials, and then charging customers a tax on it on the other end.”

Tony Passwater of the Indiana Auto Body Association said he has created a website (www.iHaveBeenSteered.com) and a toll-free phone number (855-No-2-STEERing) to allow consumers to decribe their interactions with an insurer related to shop choice. Passwater said consumers who may be hesitant to fill out a “complaint form” may be more apt to “share what their experience has been.”

He said sharing the CNN story as well as others on social media is helping build consumer awareness.

“I think we’re making some inroads with consumers, which is what we’ve never been able to do very well in the past because it’s hard to reach consumers,” Passwater said. “I really believe that social media is our equalizer.”

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Mon-Thu 7:30am - 8pm Fri: 7:30am - 6pm; Sat 8am - 4pm

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Vision Hyundai

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Herb Chambers Hyundai AU BU RN 1 07 A nd o ve r St

800-767-1898 508-832-6026 Fax Mon-Fri 7am - 6pm Sat 8am - 3pm pobrien@herbchambers.com www.herbchambershyundai.com www.autobodynews.com | MAY 2015 AUTOBODY NEWS 59

On Creative Marketing

Story Power For Shops

with Thomas Franklin

Most people think they know what “P.R.” means when they see it.

Movies, TV, recorded music and other forms of entertainment rely heavily on promotion and most people think that P.R. is just a synonym for “promotion.” But the fact is P.R. stands for “public relations,” a very distinct aspect of marketing. The dictionary tells us “public relations” consists of “methods and means by which a person or an organization seeks to promote a favorable relationship with the public.” It is often confused with “publicity” which is the effort to get favorable mention is media and the press. Some shops create favorable public relations by holding events, sponsoring schools, sports teams and family oriented activities that will reflect well on the concerns and generosity of the shop. Very few are successful in obtaining broad media, publicity, and press coverage of their P.R. activities.

The heart and soul of good publicity is the attention-grabbing story.

Children, pets and traumatic experiences are some of the favorite subjects of publicity stories. This is where a typical shop could excel at adding powerful publicity to its spectrum of marketing tactics. Day in and day out shop estimators are presented with stories of accidents and driver and passenger trauma. Probably the majority of these stories are uninterestingly similar, but the occasional oddball story can be just what is needed to put a spark of life and interest into the shop’s marketing messages.

It’s well known that attracting repeated, ongoing visits to one’s website, will require regular updating with content that is attention-grabbing. A shop’s site that is heavily into promoting its state-of-the-art equipment and technical knowledge may be of interest to insurance executives looking for a DRP shop, or a dealership principal choosing an authorized collision shop, but few average drivers will pay much attention to this technical detail. But adding an additional dimension to the site with newsworthy stories of accidents, drivers and events could bring new, regular traffic to the site.

There is a problem in getting a goal like this realized in most shops.

Estimators are focused on getting the necessary information needed to present the estimate, capture the job, collect the keys, and then get the job in process. Adding a requirement to draw out the accident story could be regarded as interference with their job or just a waste of time. The entire process has to be made painless and trouble free. Fortunately today’s smart phones all have a memo-recording feature. All the estimator need do when the conversation begins is switch on the memo-recording feature on his or her smart phone. If desired, the customer can be asked to listen back to check for any errors in understanding. Or the story can be forwarded to the shop’s marketing person to see if the story really has P.R. potential and to clear it with the customer for use on the shop’s site and other media. Customers that don’t ob-

LORD Fusor Joins NABC as Diamond Member

The National Auto Body Council (NABC) announced the addition of LORD Corporation, manufacturer of aftermarket repair adhesives, to its top-tier Diamond level membership. LORD Fusor joins 31 Diamond members and nearly 300 total National Auto Body Council members across the country who donate time and resources for community service programs that help change lives and impact thousands of individuals. “We enthusiastically support the National Auto Body Council’s vision and mission. They are a perfect complement to our company’s core beliefs and

citizenship initiatives to contribute positively in the communities where we work and live,” said Tim Jackson, Regional Manager/I-CAR Liaison at LORD Fusor. “We look forward to collaborating with our colleagues to promote the positive impact our industry makes in local communities nationwide.” NABC members represent companies from all facets of the collision industry—independent body shops, MSOs, insurance companies, rental car companies, parts and material suppliers and manufacturers, and industry consultants.

60 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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

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

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

ject to the use of their story may also be willing to provide photos, or allow shop photos of their vehicle along with the story. At this point the entire story may be appropriate for YouTube, Facebook and other media.

While the customer stories can provide good update content for media, weekly or monthly, another story has great potential to build customer loyalty. Most shops were started by one person or siblings or by an entire family. Very often that story is one of overcoming difficulties and possibly even hardships to arrive at the thriving, stable enterprise it is today. It is often a story of help received, from family, friends, suppliers and even potential customers. People are drawn to stories of perseverance and deeply felt caring.

An effective story can make the viewer feel he or she is a participant in the struggle and trauma that evolved into the customer friendly business that it has become. I recall one shop that had

photos of three generations that built the business posted in the waiting area.

Naturally these photos on the website and related media will add great depth to the story.

Of course this story should have a special, permanent place on the shop’s site, but it can have even more P.R. value if it is told to audiences whose members’ vehicles could one day become jobs. Owners who belong to chambers of commerce, civic government or social groups, or other organizations that meet regularly, could have an opportunity to tell their growth and development stories. Especially young people with an entrepreneurial bent can be inspired by speakers willing to talk about their struggles to get where they are today. The purpose of P.R. is to promote a favorable relationship with the public. There’s no better way to create a favorable impression than telling an inspiring or entertaining story.

Body ody Shop Shop Leader Leader We Wee are W aare ree seeking ssee eeeekiking ng aa proven, ppro rroove venn,, experienced eexp xper xp e ieenc nced ed Collision CCol ollilissiion ol o Center CCen ente en ter Leader.

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We are a high volume, independently owned, Connecticut facility catering to the insurance industry and private sector.

We have consistent, long term relationships with major insurers operating both on site and off.

Our business is profitable and stable, but needs to be taken to the next level by a professional manager with the ability to hire, organize, and motivate a large number of skilled individuals.

Collision experience is a plus but not required if you have the ability to lead in a mechanical environment, implement sound business practices and create a team environment while serving the needs of our diverse customer base. Organization and process skills are key as well as the ability to set and work toward goals. To be considered you must have verifiable and stable professional references, a successful earnings history, and be subject to drug and background testing prior to hiring.

For the right leader we offer a compensation package ranging from $120 to 200K based upon actual bottom line results. You will enjoy benefits including paid vacations, medical, dental, and life insurance as well as 401K with company match.

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CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes there is as little waste as possible.

“There is no need to hand out whole boxes of sand paper or gallons M & M Paint & Body Shop in El Centro began transitioning to a lean shop of body filler,” and if too much waste after attending a Sherwin-Williams Auis being produced by an employee, the tomotive Finishes (SWAF) “Ecolean issue can be corrected in an efficient Course” about a year ago. Nuventory, manner, explained SWAF sales assoan inventory management software sociate Hilary Castro. lution for the collision repair industry, Ross trained co-owner Rosie and 3M Automotive, also aided in the Magos on how to most effectively utishop’s “lean journey,” which started 13 lize her inventory management system. months ago. The course focused on “There are visible indicators of three central tasks that, according to lean and there are also some invisible SWAF, help increase profitability on indicators. Customers who get to see all fronts: the body or paint department can only 1. Making sure everything is put see the visible indicators,” explained away in the correct place after each the independent shop’s co-owner, job.

Rosy Magos. “In a small town like 2. Ensuring that all workers use ours, most people walking into a body an accurate amount of each material shop expect to see a dirty place where in order to prevent waste. everyone is tripping over parts, untidy 3. Holding employees account- technicians, etc. Our shop has never able for their actions. been that bad, but focusing on the 5S part of lean has made us prouder to These three tips fall in line with the 5 allow customers to see their vehicles S’s—sort, set in order, shine, stan- during repair. The shop in general dardize, and sustain—that were em- looks like a dealership.” phasized during the SWAF courses.

Magos said her ‘internal cusM&M Body Shop now makes a tomers’ (employees) are the ones who point to track all paint use back to get to react to the individual indicators, each and every repair order with set which include a more profitable shop, more money in the tech’s pockets, vehicles driving out in a shorter amount of time than before, and a lot less unhappy customers.

“Technicians are now more engaged in what makes them money versus moving around clutter to try and move a car, get a part, or find a part, or worrying about running out of a specific material when you The lean process puts emphasis on organization and need it the most, etc.,” said labeling Magos. “This translates to less profit margin parameters. frustration for them and less work for The California shop adopted and me.” implemented Nuventory’s Standard Magos added that, not only are Operating Procedures (SOP), which jobs completed a day or two ahead of allows them to manage their materials, the previously scheduled out date, but track usage, and streamline ordering to profit has increased 27 percent in the “just-in-time” inventory, according to last year.

Nuventory CEO Leslie Ross.

“It took a good three months to “Using Nuventory’s technician start seeing real results and start callusage tracking, M & M is able to gain ing ourselves ‘lean,’ but one thing I visibility on materials per hour and learned at the Eco-Lean Courses from pinpoint where there might be waste, Sherwin-Williams was that this is a or needed training,” added Ross. journey and not a destination. Which With guidance from trusted ven- means…we’re not there yet,” said dors, M & M has come up with their Magos. “We’ve made tremendous own SOP to become more efficient. progress ... but we’ll never arrive to Each item can be traced back to the perfection. Products keep changing, person who last used it, to ensure that vehicles keep changing, and new ideas

by Victoria Antonelli, Online Editor

62 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

demands at an all-time high, as well as consolidators growing at a rapid pace, it is vital for independent shops to become as lean as possible.

“M & M has had to rethink how they run their business. The old traditional way of running a collision shop has changed dramatically,” said Castro. “It is more important than ever to utilize trusted vendors that can assist with a shop’s journey.”

3M Account Representative Armando Munguia has helped train each department on OE recommendations for tracking waste with a new program that the company has developed called Performance Color-coding helps identify what repairs are needed for Analysis Tool (PAT). each job “Utilizing PAT, we were the right timing to get to paint, the able to measure and control cost, capiright time to have it washed and up talize on potential revenue opportunifront for the customer to pick up with- ties, drive productivity, cycle time and out disturbing their plans for the day, CSI improvement, explained Munguia. etc. We keep working at it. Everyone “We created an Approved Product List participates in the brainstorming of (APL) based on 3M SOPs in each denew methods, tips, tricks, etc. and we partment. With the proper training, willkeep making progress day-to-day.” ingness and ability to make changes, our See Increase in Profit, Page 67 Castro explained that with insurance on how to save time, space, materials, and money keep popping up in your minds. Every new job is another challenge to pair up the right technician, with the right tools, using the right materials at the best price, getting the right parts undamaged and on time,

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Trust your order to the collision parts specialists at these fine Dealers

Continued from Page 56

WIN 2015 Winners

she likes to “fight the status quo.”

Eight years ago, dismayed with the friction and contentiousness of other collision repair groups in her state, she founded and served as Executive Director of the Connecticut Collision Repair Specialists (CCRS) Organization, with the goal of bringing all constituents of the industry together in a more cooperative environment.

Recently, CCRS became ASA Connecticut.

Siembab entered the industry 20 years ago as a marketing professional with the CARSTAR organization, ultimately becoming Marketing Director for CARSTAR Corporate for over 225 locations. In 2008, she was drawn back to the shop environment, and is now overseeing day-to-day operations at the CARSTAR Berlin location in Berlin, Connecticut.

“I’ve known Lisa for over 10 years,” said Dan Young, Senior Vice President of CARSTAR. “If I’m choosing sides for a team and I want to win, I’m picking Lisa. She’s professional. She’s competitive. She per-

severes through tough times and can be as compassionate as any person I know.”

WIN said her compassion is shown in the volunteer work she does to benefit the collision community and her local community. Siembab said she believes strongly in helping those who are often overlooked, especially where language may be the barrier. To this end, she volunteers at Literacy Volunteers of Greater Hartford, a nonprofit organization providing adult literary services to the Greater Hartford Community, and teaches for English for Speakers of Other Languages (ESOL), a program that focuses on literacy and speaking skills to assist the student in entering the workforce.

Siembab said she loves working with her students and providing them with the skills that will enable them to thrive and compete in the workforce.

She has also served on the National Auto Body Council’s In-Language Committee, which focused on translating a glossary of collision industry terminology and translating it from English to Spanish.

Ruth Weniger When Ruth Weniger was asked, “What

does it mean to be named a Most Influential Woman?” she answered, “I hope it means I’m leaving something good behind?” For those who have worked with Ruth Weniger, her influence is unquestionable. Said Denise Caspersen, WIN’s Chairwoman, “Working with Ruth is an opportunity to learn from a mentor, a professional coach, and an outstanding leader with great integrity, composure and diligence. Ruth’s attention and dedication to what she believes in is beyond measure.”

Weniger is the CEO of Airbag Solutions in Ivins, Utah, the leading restraint system resource in the country and an early adopter of all on-line information delivery for the collision industry. The company regularly donates subscriptions of their content to technical schools and colleges around the country. She has also become a recognized presenter in the industry on such topics as personal development planning tools for CEOs and time management.

Weniger has been a tireless volunteer for WIN who has taken an active role in the Conference Committee and Communications Committee for several years, serving as the Chair of the Communications Committee since

2011. She has also been a member of the WIN board of directors since 2011.

In her various roles within WIN, she is viewed as someone who knows how to lead without pushing others aside, and who has also raised the level of professionalism within the organization by being herself. She also serves on the Collision Repair Education Foundation (CREF) Scholarship Selection Committee.

A woman of many professional accomplishments with exposure to influential leaders within the industry, she said she is inspired most by those who persevere, even in the face of adversity. As a long-time volunteer with organizations that assist victims of domestic violence and rape, she is moved by the spirit and accomplishments of the people who are served by these organizations.

For more information about WIN and the 2015 WIN Educational Conference, visit www.womensindustry network.com.

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Pacific Collision Equipment Company in CA Holds Classes in Damage Analysis & Aluminum Dent Repair the importance of OEM Certification and the industry trend increasingly moving in the Certified OEM programs direction.

Dr. Zion, owner of Automotive Collision Consultants, is an automotive collision and mechanical expert with more than 40 years of automotive repair experience. He specializes in inspecting and analyzing vehicles for suspected repair fraud, failure analysis, staged accidents, and accident reconstruction.

He maintains numerous automotive Robert Hornedo, Owner of Pacific Collision Equipment ASE/ICAR certifications and Co., explains to the class the importance of measuring a Master certification in Autothe vehicle to locate all of the damage in advance of writing an estimate in order to write a complete estimate motive Collision/Painting. As and to expedite the repair process an automotive repair expert, Dr. Zion has inspected over 3,000 vehicles. He has testified in civil/criminal cases, and in local, state and United States district courts. His focus during the class was on liability for the shop and technician.

Damage Analysis Seminar Pacific Collision Equipment Company organized a seminar in Damage Analysis on March 25. It was held at Mission Viejo Auto Collision

Robert Hornedo discussing how new metals can deceive an estimator where at the point of impact the frame rail appears to be undamaged. However, due to the rigid nature of these new metals the entire rail may have moved and the deformation may be three, four or more feet away from the point of impact

Aluminum Dent Repair Training A class in Aluminum Dent Repair Training was also held at Mission Viejo Auto Collision on April 2. The CAR-O-Liner class focused on Non-Struc-

in Mission Viejo, CA, owned by Todd Hesford. The class was conducted by Robert Hornedo, Owner of Pacific Collision Equipment and Tom Balliet, the company’s Technical Manager for San Diego and Orange Counties. There were 25 students in attendance and speakers included Assured Performance and Dr. Ken Zion.

Liz Stein, VP Industry Relations for Assured Performance, spoke on

Balliet shows students the galvanic corrosion that began within minutes of cleaning the panel

The Women’s Industry Network (WIN) announced the complete lineup of programming is now set for the 2015 Educational Conference Create and Cultivate, being held May 4–6 at the Baltimore Waterfront Marriott.

The schedule of presenters includes some inspiring leaders from around the collision repair industry who have powerful messages to share.

Building on Mike Anderson’s keynote address, Choosing Your Destiny, the main-stage program schedule is online:

Visit http://thewomensindustry network.ning.com/page/2015-conference Rounding out the three days of education will be the celebration of the 2015 Most Influential Women honorees, the Annual Scholarship Walk raising funds for the WIN Scholarship Fund, and the Annual Membership Meeting.

For more information, contact Jessica Rob at jessica.rob@akzonobel .com or Yolanda Sandor at: yolanda .sandor @basf.com.

Students begin welding pull studs to aluminum panel

Tom Balliet puts dents in a hood for students to repair

tural Aluminum Repair.

Tom Balliet was the lead instructor. He discussed the importance of cleanliness in the work area, tooling and demonstrated the importance of controlled heat to aluminum. Balliet also showed the 17 students how to repair small- to medium-sized dents on

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A Car-O-Liner Aluminum repair station was used during class

aluminum panels then handed the tools over to the students. There were two different working repair stations available so all students had a chance to repair dents using the different tools. Everyone who attended also received a certificate.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 65

Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller

by Stacey Phillips, Assistant Editor

Carl and Marsha Mueller, retired body shop owners in Prescott, AZ, recently formed a foundation to help those in need locally and internationally. The foundation, called Kayla’s Hands, was created in memory of

Big Brothers Big Sisters.

In college, she set up the student chapter of Amnesty International at Northern Arizona University and organized a rally to raise awareness about genocide in Sudan.

“She always had the heart to help and I always told her she had a gift from

Kayla was a regular visitor to Carl’s body shop. She washed cars, ran errands and helped out wherever she was needed

their daughter Kayla, who traveled the world with a goal to end suffering.

When Autobody News recently spoke to Carl, the former owner of Preferred Auto Body in Prescott, AZ, he and his wife Marsha were preparing for a trip to Dearborn, MI, to speak at the American Human Rights Council’s convention and accept an award in honor of Kayla.

Kayla, a 26-year-old humanitarian aid worker, moved to the TurkishSyrian border in 2012 to work with Syrian refugees. She was abducted in 2013 after leaving a hospital and held captive by the terrorist group Islamic State of Iraq and Syria (ISIS) aka Islamic State in the Levant (ISIL). The Islamic State claimed she was killed

by Jordanian bombers. Her family confirmed her death on Feb. 10 of this year, without commenting on the cause.

Kayla grew up in Prescott. An active volunteer, she often helped at women’s shelters, local needs clinics and worked with youth. From the time she attended middle school, she volunteered for local Kiwanis Club events and homeless shelters. When she was a senior in high school, she received the 2007 Gold Presidential Volunteer Service Award for her work with groups such as Americorps and

God and that she should use it,” said her dad Carl. “She was literally tormented by the suffering of mankind.”

Considered by family and friends alike as a devoted humanitarian and activist, Kayla had previously worked with refugees overseas including Tibetans in India, Africans in Israel, and Palestinians in the Occupied Territories.

When Kayla returned from the refugee camps in Turkey in May 2013, she told the Prescott Kiwanis Club, “As long as I live I will not let this kind of suffering be normal,

hands to relieve suffering,” said Carl.That was what inspired her parents to name the foundation Kayla’s Hands.

“What Marsha and I intend to do now is to move forward and do the things that Kayla couldn’t do on her own… without support and money,” said Carl. “We’re going to try to establish the foundation and fill the endowment so we can do the things that she gave her life to try to get done.”

Their plans include traveling throughout the U.S. and abroad to spread the word about Kayla’s Hands.

Last month, Carl attended a Kiwanis meeting in Farmington, NM, to thank the organization for its tremendous support. Carl is a past president of the Prescott Kiwanis Club. He and Marsha traveled to Madrid, Spain in mid-April to speak at a religious conference.

“Everyone seems to be very interested in learning about Kayla so we’re going to try to introduce them to Kayla and thank them for the award,” said Carl. “… and promote Kayla’s Hands as much as we can so we can do the work that she was so

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Kayla Mueller and her mother Marsha

something we just accept.”

Carl said his daughter was a prolific writer and kept daily journals from the time she was a senior in high school. “One of her quotes was that she’s known for quite some time now what her life’s work is – using her

66 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

desperate to have done.”

Up until recently Carl and Marsha ran Preferred Auto Body in Prescott. They sold it to Cameron Snow and his wife Erika in January 2014. Carl said the new owners have been very supportive of the Mueller family and are doing a great job with the business they ran for so many years.

Carl said his first introduction to the auto body industry came in 1967 during his junior year of high school. He participated in a work program where he attended school for half the day and worked at a Ford dealership in Champaign, IL, for the remainder. He started out sweeping floors and keeping the paint room clean and eventually helped in the shop sanding and painting. He credits much of his learning from his peers. In 1981, he said business was slow due to the poor economy. Carl and the painter in the shop, Tom Gordon, decided to start out on their own and opened Preferred Auto Body. After renting a facility for three years, they purchased property in Prescott and re-

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located their shop. Tom sold his half of the business to Carl in 1998, which he ran with his wife and six employees until 2014. Now retired, Carl and his wife can devote more time to Kayla’s Hands.

“Our foundation is basically going to help suffering people, not just in the United States, but all over the world.”

On the website created by her friends (www.forkayla.org) Kayla was quoted as saying, “It’s important to stop and realize what we have, why we have it and how privileged we are.

And from that place, start caring and get a lot done.”

There is an upcoming fundraising event being held in Tucson, AZ, on May 2: Celebration of Life and Fundraiser benefitting Kayla’s Hands.

For more information call 520225-9786. There is also a Newsboys concert being held in Flagstaff, AZ, on May 24 to raise money for the foundation.

For more information about Kayla’s Hands, email: carlmarsha muellerfamily@gmail.com or visit: www.kaylashands.org

www.autobodynews.com

Mercedes-Benz Recalls To Fix Tail Lights and Gas Leaks

Mercedes-Benz has announced two recalls that will see over 33,000 vehicles recalled. The largest of the two involves 30,141 cars that can suffer LED tail light failures. Mercedes-Benz says over 30,000 cars have LED tail lights that may not illuminate on the sides, a violation of U.S. federal safety standards. The automaker says the affected model years include the 2015 CLS 400 and CLS 400 4matic, 2012-2015 CLS 550 and CLS 550 4matic, 2012-2013 CLS 63, 2014 CLS 63 and 2014-2015 CLS 63P. Mercedes first learned of the problem in December 2014 during a routine quality check on CLS-class cars. An investigation found a possible problem with software coding, then a later investigation confirmed inaccurate coding caused the LEDs in both tail lights to fail. Dealers will make sure the LED tail lights keep working by updating the lighting controller software. Over 3,000 model year 2015 Mercedes-Benz C300 4matic and C400 4matic cars are recalled to fix gas leaks that could cause a fire. Mercedes says the fuel delivery module might not be properly attached to the gas tank. In addition, electrical wires used to connect the delivery module might have been pinched between the gas tank and the delivery module.

C

Continued from Page 62

Increase in Profit

goal was to increase sales-reduce cost and improve profitability.”

Magos offered the following advice to shops looking to begin their lean process: ■ Inquire where to get the training.

Your paint rep should be able to connect you to lean seminars offered all over the country. We were approached

by Hillary Castro, our paint rep, regarding attending Eco-Lean I Seminar. We were very glad we did. In fact, we were so excited about the whole concept of “lean” (not just the 5S part), that for the Eco-Lean II we also took with us our Production Manager and our Parts Manager all the way from California to Florida. The investment was well worth the cost.

■ Put your seat belt on and be ready for a rough ride. But if you concentrate on the PRIZE instead of the PRICE, the rough ride will be more bearable. Tough times don’t last, tough people do.

■ Be patient and persistent. The hardest thing is changing habits. If it’s hard to change your own habits, try changing all your team at once. Be

very patient. As the saying goes, “A swift sea never made a skillful sailor.”

Magos concluded, “I went about this the hardest way. I knew I wouldn’t get a buy-in from the techs until they started noticing that there was any benefit for them; the typical ‘What’s in it for me’ mentality. As John Maxwell stated, ‘A manager says: ‘go,’ a leader says: ‘let’s go.’ I led the way by making many changes until there were measurable results, and then they bought into the concept. I’ve heard of shops doing this in a weekend. I don’t see how that would have been possible for us. Maybe just the 5S part, but the habit forming and the total buy-in takes time, patience, focus, a true love for what you’re doing and your people and perseverance.”

M & M Paint & Body Shop is located at 503 E Main St, El Centro, CA 92243. To learn more about the shop, visit their website at: http://mmbodyshop.com/.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 67

GM Names BASF 2014 Supplier of the Year

BASF received General Motors’ (GM) Supplier of the Year Award for the 10th time in the past 13 years. The award was presented to Joe Schmondiuk, Vice President of Global Accounts

dustry and are pleased that we were able to support them on several key product launches in 2014.”

BASF’s Coatings Division supports GM by combining modern paint processes with special effect pigments and technologies. BASF offers a broad array of color solutions and processes that enable car makers to improve productivity and environmental performance.

“These companies are the bestof-the-best suppliers, and deserving of special recognition for their outstanding contributions,” said Steve Kiefer.

Joe Schmondiuk, BASF Vice President Global GM vice president, Global PurAccounts, OEM Coatings Solutions (center) acchasing and Supply Chain. “We’ve cepts the GM Supplier of the Year Award from had some good ‘wins’ of late, solid (left) Greg Warden, GM Executive Director, sales, strong earnings, and some Body Engineering and (right), Randy Pappal, nice awards, and you should know GM Executive Director, Global Purchasing that we could not have accomBody Group plished any of it without you and BASF Corporation, during GM’s an- your teams, and your hard work.” nual awards ceremony at Cobo Center GM’s Supplier of the Year proin Detroit. gram began in 1992, and each year a “BASF is pleased to have once global team of purchasing, engineeragain earned this recognition from ing, quality, manufacturing and logisGM,” said Schmondiuk. “It demon- tics executives determine the winners strates the great commitment and capa- of the Supplier of the Year Award. bility of our team to offer the innovative Winners represent “World Class” persolutions that GM needs. We view GM formance leaders in the areas of qualas a key partner in the automotive in- ity, technology, price and service.

Honda Adds More Recalls on Takata Airbag Flaws

Bloomberg News has reported that Honda Motor Co. added about 100,000 vehicles in the U.S. to existing recalls for flawed airbags made by Takata Corp. after discovering it hadn’t properly identified these models as being produced for the market. The new recalls cover 104,871 units of the 2008 Honda Pilot SUV, 2001 Accord and 2004 Civic sedans, according to a filing posted on the website of the National Highway Traffic Safety Administration. The additions were made after the automaker identified the batches hadn’t been properly identified as being produced for the U.S. Honda’s latest recall comes after its U.S. advertising campaign on March 16 urging owners to immediately replace potentially lethal airbags. The automaker is trying to ensure car owners take action to prevent more fatalities and injuries after a rupturing airbag in a Honda car claimed a fifth victim in January.

Takata bags can fail during deployment and propel metal shards at passengers, a flaw that has led to millions of vehicle recalls by at least 10 automakers. About 25 million vehicles with Takata airbags have been recalled worldwide since 2008, Reuters has reported. See related story this page.

Nissan Expands Recalls Tied to Takata Air Bag Flaws

Bloomberg News has reported that Nissan Motor Co. plans to expand a regional U.S. recall of cars with potentially defective Takata Corp. air bags after a woman said she was injured last month by shrapnel from the device in her 2006 Sentra sedan. Nissan will file an incident report with the U.S. National Highway Traffic Safety Administration to expand its recall, a company spokesman, Steve Yaeger, said in an interview. The expansion will cover Sentras from the 2004 to 2006 model years that weren’t part the earlier regional recall, Yaeger said. “Before that accident we didn’t have enough data to recall,” Yaeger said. “We’re moving as quickly as we can to expand the recalls.” Regulators are investigating airbag inflators that may malfunction, deploying with so much force that the part breaks and hurls metal shrapnel at the car’s occupants. At least five fatalities in the U.S. and more than 100 injuries have been reported industrywide.

Lawyers for 20-year-old Sabra Wilson, who suffered cuts, burns and partial hearing loss in a March 21 accident in Louisiana, filed a lawsuit alleging the Sentra’s passenger-side air bag deployed even though no one was in the seat. See related story this page.

BMW Settles FTC Charges that MINI Conditioned Warranty Coverage on Use of Its Parts and Service

BMW of North America LLC has agreed to settle Federal Trade Commission charges that its MINI Division violated the Magnuson-Moss Warranty Act by telling consumers that BMW would void their warranty unless they used MINI parts and MINI dealers to perform maintenance and repair work.

The FTC alleged that BMW’s MINI Division, violated a provision in the Warranty Act that prohibits companies from requiring that consumers—in order to maintain their warranties—use specific brands of parts or specified service centers (unless the part or service is provided to the consumer without charge). “It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As a result of this order, BMW will change its practices and give MINI owners information about their rights.” The proposed order settling the FTC’s complaint prohibits BMW from violating the Warranty Act and the FTC Act in connection with any MINI Division good or service. The settlement also: ● bars BMW, in connection with the sale of any MINI Division good or service, from representing that, to ensure a vehi-

cle’s safe operation or maintain its value, owners must have routine maintenance performed only by MINI dealers or MINI centers, unless the representation is true and BMW can substantiate it with reliable scientific evidence; and ● requires BMW to provide affected MINI owners with information about their right to use third-party parts and service without voiding warranty coverage, unless BMW provides such parts or services for free.

The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, continuing through April 20, 2015, after which the Commission will decide whether to issue the order on a final basis. Interested parties can submit written comments electronically.

NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

68 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 69

Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager

After opening operations in Illinois two years ago, Spanesi Americas recently announced that they have doubled both their warehouse and training space. The expansion project also includes an addition to their existing office building as well as the dock and loading area.

Spanesi Americas recently doubled their warehouse and training space in Illinois

Tim Morgan, Managing Director for Spanesi Americas, said the expansion is a result of an overwhelming response to the company’s products. Morgan began consulting for the company in 2012 and set up their North and South American operations in October of that year.

“When I started this project I knew the products Spanesi had to offer were what the US and Canadian collision repair markets were looking for and the response has been extraordinary,” said Morgan. “This has allowed us to be able to expand our facility in

such a short time to meet the needs of our customers.”

The family-owned equipment company is based in the small town Padova, Italy near Venice.

Spanesi’s product lines are manufactured in Italy and include: Straightening Benches, Multibenches, Touch Electronic Systems, Vacuum Systems, Welding Machines, Infrared Lamps, Lifts, Painting Tools, Spray Booth Equipment, and Manual, Pneumatic, Electric and Hydraulic Tools.

The Illinois facility will now have a dedicated warehouse space to store parts for spray booths and measuring systems as well as a single area for product training.

Another recent development at Spanesi is the hiring of Tom McGee as Business Development Manager. “Tom’s experience in the collision repair industry will be extremely valuable to our group as we continue to grow and provide exceptional products and service to our customers,” said Morgan.

McGee has more than 30 years of experience in the collision repair industry. This includes Collision Director for Automotive Training Institute, Collision Industry Relations Manager for ALLDATA, and nearly 18 years at I-CAR where he held a variety of posi-

tions including President & CEO and Technical Director.

McGee graduated from Ferris State College in Big Rapids, MI, and is an ASE Certified Master Auto Body & Paint Technician and Collision Repair Estimator. McGee, a recognized industry speaker, was also elected into the Collision Industry Hall of Eagles in 2001.

“I am very excited to join the Spanesi team,” said McGee. “I have been very impressed with how the Spanesi product line is designed to repair the latest vehicle technology. It is exciting to join an organiTom McGee hired zation that has as Business such a strong focus Development on the technician Manager at and deploys its reSpanesi search and development to make their jobs easier.”

Morgan said Spanesi Americas’ mission is to bring new products and technologies to body shops in the Americas to enable technicians to perform repairs to a high standard of excellence.

“The unique feature of Spanesi over

the competitors is that we have our own body shop,” said Morgan. “We offer a full solution for the complete body shop.”

Owner Orazio Spanesi started in the collision repair industry when he was 14 years old and in 1969 he opened his own body shop. In 1989, he decided he wanted to try and make better equipment so he traveled the world to find out what was available.

“Everything that we design, we design it with the technicians in mind,” said Morgan. “It’s tested by technicians long before it ends up in the hands of end users.”

Over the years even as the vehicles have evolved, the majority of what we’ve had in place for years is still the same way, especially with our universal fixturing system, that has been around since 1991.

Morgan said with the company’s focus on products that are growing fastest in the market, Spanesi expects to increase overall shipment capacity by nearly 20%, while adding approximately 35 jobs in North America.

The company has also increased inventory to enhance their delivery system.

For more details, contact Timothy Morgan, 1.224.SPANESI (772.6374) tmorgan@spanesi-americas.com, www.SPANESI.com.

New Data: U.S. Drivers Did 3 Trillion Miles Last Year

New estimates released by the U.S. Department of Transportation’s Federal Highway Administration (FHWA) show that Americans drove nearly 3.02 trillion miles in 2014, the highest point since 2007 and the second-highest since data collection began 79 years ago, fueling calls for greater investment in transportation infrastructure to accommodate growing volumes of traffic. The new data reaffirm projections made by U.S. Transportation Secretary Anthony Foxx in “Beyond Traffic,” his 30-year vision for transportation, which shows significant increases in gridlock nationwide unless changes are made in the near-term.

“Americans are driving their cars at near-record levels, and being stuck in traffic is costing drivers an average of nearly five days a year,” said Secretary Foxx. “To ensure this problem doesn’t get worse, greater innovations and investments are needed. We can’t keep treating America’s 21st-century traffic needs with 20th-century solutions.”

According to FHWA’s latest “Traffic Volume Trends” report—a monthly estimate of U.S. road travel—Americans drove an estimated 3.015 trillion miles last year, roughly the same distance as 323 round trips from Earth to Pluto.

Drivers in December 2014 logged 251.4 billion miles, the highest level for any December since data collection began in 1939. At 5 percent higher than the previous December, it was the year’s biggest single-month increase and the nation’s tenth consecutive month of VMT growth.

Traffic in the South Gulf—a block of eight states including Texas and Kentucky—rose to nearly 49.1 billion vehicle miles traveled (VMT), a gain of 6.4 percent over the previous December and the tenth consecutive month of increased traffic for the region.

All states recorded traffic increases in December. At 10.5 percent, Indiana led the nation with the largest single-state traffic increase compared to the same month a year earlier, followed closely by Oklahoma at 9.3 percent and Montana at 8 percent.

“Data like these are critical to helping federal and state transportation leaders understand the challenges facing American drivers,” said Deputy Federal Highway Administrator Gregory Nadeau. “The nation’s growing demand on roads and bridges underscores what we have been saying—increased investment is needed if we are to keep our roads from becoming parking lots.”

70 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles

Members of the National Auto Body Council (NABC) teamed up in 2014 to donate nearly $3 million in refurbished vehicles, positively changing the lives of 200 individuals and their families through the organization’s Recycled Rides™ program.

Progressive Insurance led the effort in 2014, partnering with NABC shops across the country to donate vehicles to 117 military service members and veterans. GEICO, Allstate, State Farm, Esurance, Farmers and Insurance Auto Auctions each donated at least 10 vehicles, with the additional vehicle contributions from Hertz, Enterprise Rent-a-Car and Copart.

Caliber Collision team members led the effort on the repairer side, volunteering personal time to refurbish 20 Recycled Rides vehicles. Service King, CARSTAR, ABRA Auto Body & Glass, Gerber Collision & Glass, the Van Tuyl Group and many more independent body shops all contributed to the success of the 2014 Recycled Rides effort.

A future generation of collision repair professionals also had the opportunity to participate in community service projects through the Recycled Rides program while learning their craft at

Washburn Institute of Technology, Manhattan Area Technical College, Western Nevada College, Pennsylvania College of Technology, and Technical College High School–Brandywine.

“Recycled Rides is a life-changing experience not just for the recipients but for everyone who participated and contributed to the event,” said Nick Notte, NABC Chairman. “We are very proud that through Recycled Rides, members of the National Auto Body Council are able to make an impact in their local communities as well as showcase the professionalism and integrity of our collision industry.”

According to Rick Tuuri, NABC’s Recycled Rides Program Chair, the momentum and successful efforts from Recycled Rides in 2014 have carried through into 2015. To date, 79 Recycled Rides vehicles have already been donated or are in the process of completion.

Chuck Sulkala, NABC Executive Director, urged industry members to step up in 2015 to donate more vehicles and sign up to host Recycled Rides events.

“We have many more yet unfulfilled requests from nonprofit organizations seeking transportation on behalf of their clients,” said Sulkala. “Our in-

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dustry is in the unique position to make a difference in the lives of these individuals by providing reliable transportation so they find and maintain jobs, take care of their families, and rebuild their lives.”

The National Auto body Council’s mission is to develop, implement and promote community-based initiatives that exemplify the professionalism and integrity of the collision repair industry.

In addition to Recycled Rides, the National Auto Body Council’s community initiatives include: ● First Responder Emergency Extrication—One-of-a-kind vehicle extrication program that provides local firefighters and/or first responders with the opportunity to practice hands-on, life-saving techniques on late model vehicles and the challenges they present from advanced metals to multiple restraint systems.

● Distracted Driving Initiative –NABC partners with national organizations, such as AT&T on the “It Can Wait” campaign, to provide resources to implement local community efforts that help save lives by educating drivers of all ages about the dangers of inattentive and distracted driving.

Progressive Plans to Charge Risky Snapshot Drivers More

Progressive Corp., the fourth-largest U.S. auto insurer, said it will begin increasing rates for some risky customers who participate in a program that allows the company to electronically monitor driving habits. The decision to lift premiums is a shift for Mayfield Village, Ohio-based Progressive, which previously highlighted how customers can agree to a rate and then win discounts for safe behavior. Its Snapshot program rewards customers who drive fewer miles, avoid hard braking and minimize travel from midnight to 4 a.m., according to the company’s website.

“In our new program that we just began to roll out, we are affording more customers discounts for their good driving behavior while for the first time, increasing rates for a small number of drivers whose driving behavior justifies such rates,” the company said in its annual report this month. Chief Executive Officer Glenn Renwick has said Snapshot could help the company encourage safer behavior and retain the most valuable customers. He has lamented the reluctance of some potential customers to sign up for the offering.

Chief Names Richard Perry OEM Liason Sales Manager

Chief Automotive Technologies has named Richard Perry OEM and strategic account sales manager.

Perry previously served as global repair product manager for Chief, and has been with the company since 1996. In his new role, Perry will work side-by-side with OEM engineers to ensure Chief collision repair products work properly with the next generation of vehicles. He will provide OEMs with input about proper collision repair procedures, while also leveraging his knowledge of new vehicle design to grow the Chief product line. Perry will help introduce new collision repair products, technologies and procedures to other key customers. He will continue to serve on the I-CAR International Board of Directors, act as a collision advisor for SkillsUSA, and represent Chief at Collision Industry Conference (CIC) and National Automotive Technicians Education Foundation (NATEF) meetings. “I am excited to have someone of Richard’s caliber on the Chief sales team,” says Bob Holland, director of collision in North and South America for Chief parent company Vehicle Service Group (VSG).

PartsTrader Says Integration to Help Dealers Quote Parts

PartsTrader® has announced that an integration project is in development with DMI Inc., a business unit of CDK Global. The integration is designed to help OEM automobile dealers more efficiently respond to quote requests from collision repair shops. When responding to a quote request PartsTrader will automatically update inventory information and pricing from the dealers own Dealer Management System (DMS). This information will be displayed on the PartsTrader quoting screen so that dealers no longer have to access multiple systems to quote accurately. Prices will be updated automatically based on the dealers settings and allow dealers to better understand the profitability on a part by part basis. For repair shops requesting a quote, the response from dealers using the DMI data services platform will be faster, and have greater accuracy in its quote components. More accurate pricing during the estimating process will reduce estimate supplements benefiting both repairers and insurers. “With this integration with the DMI platform, PartsTrader continues to streamline the quoting process on both sides of the buyer and seller relationship,” said Dale Sailer, VP.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 71

Assured Performance Hires Michael Quinn as Exec. VP

Assured Performance announced on April 6 the appointment of Michael Quinn as Executive Vice President.

Quinn will assume responsibility for the general business operations at Assured Performance including sales, marketing, and business development. Quinn has more than 25 years industry experience. He cofounded a 7-shop collision repair business in Arizona & Nevada.

Quinn worked for Caliber Collision for 2 years before assuming the role of President at UParts Inc. Quinn served as Collision Industry Conference (CIC) Chairman for two years (2010- 2011) after having led several of its committees. He has also been an active board member on the National Auto Body Council (NABC) for more than 11 years. There he chaired the Katrina Relief program to serve those displaced by hurricanes Katrina & Rita. Quinn also initiated and chaired the Recycled Rides and the First Responder Emergency Extrication (FREE) programs.

Quinn is the recipient of numerous industry awards, including the Hall of Eagles, NABC Pride Award, and ASA/SCRS Humanitarian award.

Car-O-Liner® Names New OEM Account Manager

Car-O-Liner® announced it has hired Mark Weinmann as an OEM Account Manager on March 18. In his new role, Mark will work with Peter Richardson, Director of National Accounts, and interact closely with Car-O-Liner OEM partners across North America.

“We are excited that Mark is joining the Car-O-Liner organization. He is a great addition to our team,” said Richardson. “Establishing a strategic partnership with our customers is of high importance to us. Mark’s knowledge of the industry is an asset to reinforce our relationships with key OEM partners.”

Weinmann joins Car-O-Liner after 12 years at Shure Manufacturing where he served as the National Sales Manager responsible for sales and customer service for both Distribution and OEM sales channels.

He has worked closely with the automotive OEM equipment programs to promote sales growth and develop OEM brand-specific products for automotive dealership initiatives.

He also spent 10 years with Center Oil Company as a Petroleum Trader in St. Louis, MO.

NABC Says “It Can Wait” to Students in Grad Season

With grad season comes the excitement of sharing photos, videos and texts with friends and family. But it also means elevated risk for teen drivers, particularly when they are sharing those photos and texts while driving. The National Auto Body Council (NABC) is teaming up with its members nationwide in the collision industry to help reduce this danger on the road by partnering with AT&T to support its It Can Wait® campaign. “The collision repair industry sees firsthand the negative consequences of distracted driving and want to help people reduce their risk of being in an accident,” said Dan Young, Senior Vice President of CARSTAR and Chair of the NABC’s Distracted Driving Initiative. “Through the It Can Wait campaign, we can educate drivers about the dangers of texting and driving, and engage drivers, their families and friends in putting down the phone and focusing on the road.”

Tips are: Take and share your photos and videos before you get in the car; Designate someone who isn’t driving to manage the GPS; Drivers should install an app that silences incoming texts and notifications.

Consumers Pay Repair Bills with Openbay and Apple Pay

Openbay, an online car repair marketplace, has announced that its mobile app can now be integrated with Apple Pay to pay for vehicle fixes and maintenance. The company says its offering is also good news for the car dealerships, independent shops and mobile mechanics who provide services via Openbay, as it lowers their risk of responsibility for fraudulent charges. “Openbay remains the only nationwide mobile and Web app for consumers to search for, compare mechanics, book an appointment and pay for auto repair,” said Openbay’s founder and CEO Rob Infantino in a statement. “With Apple Pay, we continue to innovate and maintain a first-mover advantage for vehicle repair.” Openbay outlined the benefits on both the consumer and serviceprovider sides. Consumers will receive convenience and security, as well as the ability to minimize costs by comparing multiple offers, the company said. Users will also be able to earn Openbay Rewards with every completed automotive service. Automotive service-providers, for their part, will experience the cost benefit of not having to invest in EMV and NFC point-of-sale terminals.

Record360 App Documents Damages in One Step, Saving Industry Members Time and Money

by Victoria Antonelli, Online Editor

Two former Enterprise Rent-A-Car executives first came up with the idea for an app that captures the condition of a vehicle at the time of exchange back in 2013.

“Throughout our combined 35 years in the auto industry, Damon Haber and I frequently came in contact with issues during property exchange,” said co-founder Shane Skinner of Seattle, WA. “I noticed that the same prob-

lems occurred not only with loaner vehicles, but with cars coming in and out of body shops that needed work done.”

These “issues” usually spark from a “he said, she said” debate over when and where a particular dent, scratch, or scuff occurred. Did that crack in the back left window happen during the accident or in the body shop? Was that scratch on the hood there before the customer rented the car? Who should pay for it?

Record360 aims to avoid those dilemmas by using a video foundation, versus still-life pictures or paper diagram vehicle condition reports.

This feature records the state of the vehicle upon arrival to the shop, carrental company, or dealership.

“The app eliminates the use of paperwork and improves workflow, while ultimately saving the shop [or business] money and improving customer service,” said Skinner.

Instead of having to take photos, upload them to a computer, and then label which photos belong to which car, the app does it all in one step. Skinner explained that the information is organized by the VIN number, which is scanned at the beginning of the process. When the customer returns to pick up his or her car, the VIN number is scanned again to pull up all of the vehicle’s information.

“When using the video feature while walking around the vehicle, you’re able to take still images and note them with data points,” said Skinner.

“You’re able to say, ‘Okay there’s a dent there,’ then touch the screen, take

72 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

the still, and lock it into the record file for that document, all while still taking the video.”

Skinner added that there is a patent pending on this feature.

Todd Primo, service manager for Penske Automotive Group in Cerritos, CA, stated on the Record360 website, “We have been using Record360 to document our customers’ vehicles and been very satisfied with the results. We have virtually eliminated the problem of customers claiming damage while their vehicles are in for repair, seeing real savings in damage claims. Record360 has become an integral part of our process that is appreciated by our staff and our customers.”

When Autobody News followed up with Primo, he said the dealership’s service advisors, who primarily use the app, gave it a 10 on a 1-10 scale; 10 being the easiest to use. He recommended that body shops download Record360, adding that he’s experienced nothing but success since Penske, Jaguar, Land Rover started using the app in July 2014.

Another testimonial on the website, this one from Jennifer Carlson, general manager of Jucy Rentals North America, stated, “Record360 is enterprise ready; already used by leading rental asset management businesses.

Since implementing Record360 at all our North American locations, disputes over damage are a thing of the past, and we’re saving thousands on undocumented damage. Our employees and customers feel great about our documentation process.”

The app hit the iOS market in June 2014 after nine months of development.

On April 1, Android users will also be able download Record360, making it accessible on 95 percent of devices. It can be downloaded from the app website as well as the iTunes store for a licensing fee starting at $50 a month.

“All the customers love it,” said Skinner. “The feedback so far has been great.”

Those interested can check out the demo on the Record360 website.

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NABC Awards for Distinction and Shop Image, Nominations Do you know of an auto body shop that had a great facility makeover last year? Or an individual in the collision industry whose selfless actions were for the benefit of others? NABC is seeking nominations for its two industry awards: the Award of Distinction and the Body Shop Image Award. NABC’s awards program recognizes individuals and collision industry facilities that have made a beneficial impact in their communities and in the industry. As part of its 2015 recognition program, the National Auto Body Council plans to publicize, highlight and call attention throughout the year to outstanding individuals and body shops and

Lawyers Picked to Lead Posts in Air Bag Lawsuits

Two South Florida attorneys and a David Boies of New York, who lawyer who represented former Vice represented Gore, was picked coPresident Al Gore in the 2000 elec- lead counsel for plaintiffs seeking tion recount have been chosen for economic damages along with Todd leadership posts in lawsuits over de- A. Smith of Chicago. fective auto air bags.

U.S. District Judge Federico Moreno is presiding over dozens of Your Email Our in Miami fedlawsuitsfor consolidated eral court. The lawsuits seek unspecified economic and personal injury damages against air bag maker Takata Be Seen by Our Readers!

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their extraordinary efforts. “The NABC industry awards program celebrates businesses and individuals whose efforts exemplify the professionalism and integrity of our collision industry,” said Marie Peevy, Chair of NABC’s 2015 Awards Program. Online nominaRegister tions and more information for both awards are available at: www .NationalAutoBodyCouncil.org.

Contact Marie Peevy, Awards Program Chair, at: marie .peevy@auto motivetrainingcoordinators.com or call 630.881.7945.

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