May 2020 Northeast Edition by Autobody News

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Vol. 11 / Issue 2 / May 2020

Trump, Congress Agree on New Stimulus Package by Dan McCaleb, The Center Square

President Donald Trump and congressional leaders have agreed on a new, nearly $500 billion stimulus package to help small businesses im-

pacted by stay-at-home orders in response to the COVID-19 pandemic. The $484 billion deal includes $310 billion for the Paycheck Protection Program so businesses can continue paying employees. It also includes an additional $60 billion for a small business emergency grant and loan program, $75 billion for hospitals and $25 billion for a new coronavirus testing program. “I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing,” Trump wrote See New Stimulus Package, Page 6

“Worst is Over (For Now),” New York Gets Testing Help from Mike Bloomberg “I believe the worst is over if we continue to be smart,” NY Gov. Andrew Cuomo said at his daily briefing. “I believe we can start on the path to normalcy.” Mr. Cuomo and Mayor Bill de Blasio have emphasized for the past several days that any return to a semblance of normal life in the city and state will proceed in phases, during which restrictions will be eased based on measurable progress against the virus. New York Gov. Andrew Cuomo said he’s enlisted former Mayor Mike Bloomberg to help create a “tracing

army” that will find infected people and get them into isolation. Also during his daily briefing, Gov. Cuomo said “we’re in a relatively good place,” regarding the COVID-19 outbreak in New York state. “In downstate New York, the curve is on the descent,” Gov. Cuomo said. “The question now is how long is the descent? Hospitalization numbers are coming down, intubations are coming down, number of new people going into the hospital every day is still troublingly high, but better than it was.” See New York Gets Testing Help, Page 23

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Seven Northeast States Announce Council to Plan Economic Reopening by Dave Lemery, The Center Square

in some corners as putting them in opposition to comments by President Donald Trump earlier in the day asserting that he alone has the power to decide when the economy is reopened. The states’ announcement was led by New York Gov. Andrew Cuomo, and the other five Democratic governors each called into a news conference held in Albany, NY, to announce the move to form the regional council. Each state will contribute three representatives—he state’s top See Economic Reopening, Page 12

Most Shops Weathering The Storm – So Far by Gary Ledoux

On April 17, 18, and 19, Autobody News used its 19,000 shop email subscribers and also social media channels to conduct a survey of collision shops across the country to see how they were coping with the COVID 19 pandemic. The majority of shops responding were independently owned singe-point shops, those perhaps the most vulnerable to volatile market swings. Despite that, and a wide range of available work, (most shops operating at 25% to 75% capacity) most seem to be faring reasonably well. The majority of shops (59%) have not laid off any workers although 21% have laid off three-quarters of their people. Most shops have taken a number of precautions to protect employees and customers including use of gloves and masks, frequent hand-washing, etc. It is surmised that not many shops think the pandemic situation will last very long because only 19% have taken on work other than traditional collision repair.

The majority of shops have applied for financial assistance through the government’s CARES Act but have not received their funds yet. The sad truth is, those funds may never come because as of this writing, the funds have been exhausted. There are, however, other measures being debated to replenish the program (see related stories.) Wayne Stevens, owner of Stevens Collision in western New York is a single-point shop, certified with FCA, Hyundai, and Kia but with no DRP arrangements. At present he hasn’t laid-off any employees because he has a two-week backlog of work. He says, “My father always told me, ‘Take care of the people that come through your door, no matter what they want, and you’ll build your business.’” Doug Hassell owns Hassell Auto Body on Long Island in New York, another single-point shop that has been in business since 1963, and has enough work to stay busy—so far. The shop has no DRP arrangements and no dealer relationships although they See Body Shop Survey, Page 16

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CONTENTS Family-Owned Auto Repair Shops in PA Remain Open as Small Business Traffic Continues to Decline ��20 Family-Owned PA Auto Dealerships Hold onto Hope as Coronavirus Crisis Rocks Main Street ��8 MD Ford Dealer Will Pay Your Rent Or Mortgage If You Buy A New Car ��6 Open for Business: Caliber Collision Auto Repair ��14 Pennsylvania Company Offers Truck Drivers a Place to Stop and Rest ��24 Seven Northeast States Announce Council to Plan Economic Reopening ��18 Tesla Delivering Ventilators to NY Hospitals Amid Coronavirus Pandemic ��14 Tesla Responds to NY Officials’ Call to reopen Gigafactory 2 for Ventilator Production ��11

Claims Since Virus Outbreak ��30 AutoNation to Lay Off 7K Employees, Cut

Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery ��44 Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same ��28 Detroit 3 Gain Big Market Share as COVID-19 Infects Sales, April Looks Worse ��26 First Funding for Small-Business Loans Depleted, Second Round Just Approved ��58 Five Groups Ask Trump to Keep Vehicle Sales Operations Open ��24 Ford Teams With GE, 3M to Make Ventilators, Personal Protective Equipment ��30 Ford Tests Social-Distancing Wearables ��62 GEICO, Farmers, Liberty Mutual Join Insurers Giving Breaks to Drivers, Businesses ��60 Is COVID-19 Accelerating An Industry

COLUMNISTS Anderson - Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ ��41 Attanasio - CCC Analyst Forecasts Impact of COVID-19 on Collision Repair Industry ��47 Chess - A Quick Course on Primers ��50 Phillips - CCG Shares Body Shop Advice & “Best Practices” During Coronavirus Restrictions ��55 Yoswick - Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software ��34

Disruptor? ��29 Most Shops Weathering The Storm – So Far ��1 New COVID-19 Programs Focus on Service Departments ��63 Shops Using Downtime Advantageously During COVID-19 Crisis ��38 Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles ��4 Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts ��4 Trump, Congress Agree on New Stimulus Package ��1 Used-Car Sales: Tracking the Good,

NATIONAL Auto Glass Industry Responds to Those in Need ��30 Auto Insurance Agencies See Reduced

AUTOBODY www.autobodynews.com

Costs Deeply ��54

the Bad & the Options ��63 Why You Should Keep Advertising During a Major Market Downturn ��62

INDEX OF ADVERTISERS

REGIONAL

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

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Accudraft Paint Booths �� 64

Mazda Wholesale Parts Dealers �� 60

Acura of Westchester �� 48

McGovern Chrysler-Jeep-Dodge-Ram �� 10

Albert Kemperle, Inc �� 25

Mercedes-Benz of Atlantic City �� 27

American Icon Automotive Finishes �� 8

Mercedes-Benz of Fort Washington �� 27

Audi Wholesale Parts Dealers �� 61

Mercedes-Benz of Paramus �� 46

Bical Auto Mall �� 47

Mercedes-Benz of West Chester �� 27

BMW Wholesale Parts Dealers ��42-43

Mercedes-Benz of Wilmington �� 29

Cadillac of Mahwah �� 51

Mercedes-Benz Wholesale Parts Dealers �� 49

Central Avenue Chrysler-Jeep-Dodge-Ram �� 15

MINI Wholesale Parts Dealers �� 44

Certified Automotive Parts Association �� 12

MontiPower Americas, Inc �� 11

Cherry Hill Dodge-Chrysler-Jeep-Ram �� 22

MOPAR Wholesale Parts Dealers ��36-37

Classifieds �� 62

New Holland Ford �� 17

Colonial Automotive Group �� 39

New Holland Toyota �� 24

Courtesy Mitsubishi �� 54

Nissan/Infiniti Wholesale Parts Dealers �� 56

Criswell Chrysler-Jeep-Dodge-Ram �� 28

Northstar Kia �� 38

Eagle Abrasives, Inc �� 7

Nucar �� 31

Empire Auto Parts �� 20

Porsche Wholesale Parts Dealers �� 55

Equalizer Industries, Inc �� 30

PPG Refinish �� 9

Ford Wholesale Parts Dealers �� 50

SATA Dan-Am Company �� 5

GM Wholesale Parts Dealers �� 45

Schultz Ford �� 35

Haldon Company �� 21

Security Dodge-Chrysler-Jeep-Ram �� 16

Honda-Acura Wholesale Parts Dealers ��32-33

Southern Polyurethanes, Inc �� 13

Hyundai Wholesale Parts Dealers �� 58

Spanesi Americas �� 6

Infiniti of Norwood �� 40

Subaru Wholesale Parts Dealers �� 59

Innovative Tools & Technologies, Inc �� 19

Toyota Wholesale Parts Dealers �� 54

Jaguar Land Rover Cherry Hill �� 23

Tsunami Compressed Air Solutions �� 18

Kia Motors America, Inc �� 2

VIP Honda �� 41

Kia Motors Wholesale Parts Dealers �� 53

Volkswagen of Newtown Square �� 20

Kia of Attleboro �� 54

Volkswagen Wholesale Parts Dealers �� 57

Kundert Volvo �� 52

White Plains Volkswagen �� 24

Long Automotive Group �� 34

Yonkers Kia �� 26

Malco �� 14 autobodynews.com / MAY 2020 AUTOBODY NEWS 3

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Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts by Joey Klender, Teslarati

Tesla released a video highlighting the company’s ventilator manufacturing process, which incorporates parts from its all-electric vehicles.

The video update was shared via Twitter on April 5, and shows a group of masked Tesla employees, including VP of Vehicle Engineering Lars Moravy, working in an engineering lab. Company Engineering Director Joe Mardall outlined the company’s current process of development for the ventilators, which consists of a design using Tesla car parts. The use of parts has allowed Tesla to develop machines that can assist patients in breathing while infected with the virus, while not taking away from the amount of actual ventilator parts that exist right now. The ventilator prototype uses a hospital-grade air supply system that

feeds into a mixing chamber. This combines air and oxygen to create breathable air. The air then is pressurized and fed into tubes, providing a patient with air, which alleviates their breathing issues. COVID-19 is primarily a respiratory virus that attacks a patient's lungs and breathing patterns. Ventilators also have screens that provide medical professionals with information like tidal volume

flow and volume. The shortage of ventilators across the U.S. is due to a low availability of the machines. Medtronic CEO Omar Ishrak said his company has quadrupled the production of ventilators to combat the shortage. While this increased production rate has helped provide hospitals in need with additional machines, there is still a massive shortage of ventilators.

per breath, respiratory rate (usually set by a doctor to give a patient the proper amount of breathable air), and oxygen concentration. These figures will be displayed on a Model 3 dash screen powered by the vehicle’s infotainment computer and will show air pressure, air-

Tesla plans to build its in-house breathing apparatuses with car parts as a strategy to “help out the medical industry without taking away from their supply.” Mardall said in the video Tesla’s reliable car parts could help solve the shortage of ventilators, as they

are readily available and produced in high volume. As ventilators remain a rarity in some locations of the world, Tesla’s influx of available car parts could solve a big part of the coronavirus issue, as there seems to be no ceiling on how many machines the company will be able to produce. Tesla made plans to help with the production of ventilators in late March after CEO Elon Musk said he had a conversation with Medtronic’s engineering team. Tesla’s team of engineers found their company’s vehicle parts were more than capable of being used in ventilators. After Medtronic’s first Tesla-purchased ventilators arrived in New York City on April 3, the company has shifted its focus to ventilators. Vehicle production has shut down at the company’s Fremont, CA, facility and Tesla’s engineering team has turned its focus to the health care field. Its preparation of the first Tesla ventilator prototype is evidently well under way. We thank Teslarati for reprint permission.

Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles With each new model, Subaru of America, Inc., makes advancements in technology that assist in the operation and safety of our vehicles. These advancements incorporate different sensors, cameras and control units, as well as other components, to assist with the functionality of the vehicle. They are a critical part of vehicle operation and the safety features in each Subaru vehicle. In the event of a collision, these components could incur damage, which may trigger diagnostic trouble codes (DTC), but may not be evident via a warning light on the instrument cluster. Subaru defines a collision as damage that exceeds minor outer body panel cosmetic distortion. During collision repairs, it is critical the proper function of these systems and features be restored back to pre-accident condition and performance. If these components are not evaluated, it could have a direct effect on vehicle operation and safety. For Subaru vehicles from model year 2004 and forward involved in a collision, Subaru collision repair procedure requires pre-repair scanning be performed.

Pre-scanning will reveal DTCs for items not functioning properly in the vehicle. It allows a shop to identify any issues early in the estimate process, allowing a more complete estimate and encompassing repair process. Additionally, Subaru collision repair procedure also requires post-repair scanning be performed on these vehicles. Post-scanning is critical in ensuring the malfunctioning items have been repaired and there are no remaining DTCs. It may also assist in assuring the appropriate calibrations and reinitializations have been performed. To accurately determine whether DTCs are present in a vehicle, Subaru recommends the use of the Subaru SSM4 diagnostic tool. Information regarding the purchase of the Subaru SSM4 diagnostic software application and Denso DST-i interface device can be found in the Subaru Technical Information System (STIS) at https://techinfo.subaru. com/Information/Special Tool Information. If a Subaru SSM4 diagnostic tool is not available, Subaru recommends the use of an asTechTM device. The asTechTM device per-

forms a diagnostic scan remotely using a genuine Subaru scan tool. Information regarding the purchase of the asTechTM tool can be found at https://astech.com/. Subaru does not recommend the use of a generic scanning device as we cannot guarantee the content or accuracy. Always refer to the applicable Subaru Service Manual or Technical Service Bulletin (TSB) for the most up-to-date repair procedures. Some safety and driver assistive systems will require inspections, calibration and/or aiming after collision or other body repairs. Any time a collision repair is performed, always refer to the appropriate Body Repair Manual and Service Manual for the most up-todate repair procedures. All Subaru technical information including Body Repair Manuals, Service Manuals, TSBs and more are available for purchase in STIS at https://techinfo.subaru.com>Log in/ My Account > Purchase a Subscription. Subscription options are listed on the site. If a collision repair is necessary, Subaru strongly recommends any repairs be performed by a Subaru Cer-

tified Collision Center using Subaru Genuine Parts designated for use in the specific Subaru vehicle being repaired, including all mechanical and electrical parts, body panels and structural components. Subaru Genuine Parts are manufactured to the same specifications and tolerances as the parts installed on factory new Subaru models. The use of Subaru Genuine Parts will help ensure the vehicle is restored back to its original pre-collision condition. The use of non-OEM components that may not be manufactured to the same specifications or tolerances as Subaru Genuine Parts could compromise occupant safety in a subsequent collision. The use of any aftermarket or substitute structural, body, mechanical or electrical repair parts is not covered under the Subaru of America, Inc., limited warranty, replacement parts limited warranty or Subaru Added Security (SAS) agreements or contracts. Subaru of America, Inc., is not responsible for any resultant damage caused by the use and/or installation of any aftermarket substitute part(s). Source: Subaru of America, Inc.

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Continued from Cover

MD Ford Dealer Will Pay Your Rent Or Mortgage If You Buy A New Car by Christopher Smith, Motor1.com

Times are tough all around right now. Numerous industries are feeling the ﬁnancial pinch brought on by the Coronavirus pandemic, and that’s especially true for automakers. First-quarter sales in the U.S. for nearly every manufacturer were down compared to last year, all due to the enormous drop in March as manufacturing plants and dealerships closed for normal operations.

We say “normal” because many dealerships are still operating parts and service departments, which are considered essential services. Sales departments are also trying to function in a remote setting, because dealers still have new cars to sell. Koons Silver Spring Ford in Maryland is one of those dealerships, and it’s tossing out quite a deal to en-

tice buyers. In a recent social media post, the dealership announced it will pay mortgages up to $1,500 for two months, should anyone buy a new car from them. That’s a total deal of $3,000, and it doesn’t just apply to homeowners. The dealership offers the same cash for housing leases or rentals, and that’s in addition to any incentives offered by the manufacturer. In short, folks who are in a position to buy a new car right could score deals of a lifetime. Using Koons Silver Spring Ford as an example, anyone who buys an elgible Ford vehicle through Ford Credit can have the first payment deferred for 90 days, with Ford offering bonus cash equivalent to another 90 days of payments. Lump in the rent/mortgage payment offered by the dealer along with other advertised dealer savings, and suddenly you can take home a base

model 2020 Ford F-150 pickup for less than $20,000. Ford certainly isn’t the only manufacturer offering special incentives. General Motors is offering interest-free financing for seven years (84 months) with deferred payments for four months on many Chevrolet, GMC and Buick models. Ram also offers interest-free financing for seven years and will defer the first payment for 90 days. Toyota offers the same payment deferral, while some manufacturers like Hyundai are extending new vehicle warranties for existing owners, in addition to payment deferrals. How long will such deals last? It’s a safe bet that the next two months at least will be extremely difficult for the auto industry. We thank Motor1.com for reprint permission.

New Stimulus Package on Twitter. “We have a deal, and I believe we will pass it today,” Senate Minority Leader Chuck Schumer told CNN. The U.S. Chamber of Commerce heralded the news in a statement. “We applaud congressional leaders and the administration for reaching a deal to increase desperately needed funding to support America’s small businesses during this difficult time,” said Neil Bradley, executive vice president and chief policy officer, U.S. Chamber of Commerce. “Every hour of every day, small businesses across the country are being forced to make difficult decisions due to the significant revenue disruptions caused by the coronavirus.” We thank The Center Square for reprint permission.

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Family-Owned PA Auto Dealerships Hold onto Hope as Coronavirus Crisis Rocks Main Street by Jen Samuel, Daily Local News

With the economy on hold, family-owned dealerships feel the hurt. “Across Pennsylvania, approximately 52,000 are employed by new car dealerships, another 50,000 at used car dealerships, for approximately 102,000 employees,” said Melanie Stine, director of communications for the Pennsylvania Automobile Association (PAA.) “Gov. (Tom) Wolf, utilizing the list provided by the Department of Homeland Security, in fact deemed vehicle repair and parts sales as essential during this health crisis. Many dealerships remain open, serving their communities’ vehicle repair needs during this difficult time,” Stine said. Recently, Wolf’s administration ruled the sales departments of statewide car dealerships are “non-essential” businesses in the wake of the coronavirus crisis. Meanwhile to the south, the governor of Maryland deemed the auto industry an “essential” service, legally enabling sales to continue to meet demand. Dealerships in Pennsylvania are worried they are losing what few sales there are in this climate to out-of-state dealers and national online giants. Stine said the PAA is working with the Wolf administration on the merits of including vehicle sales as life-sustaining, exempt businesses during the coronavirus crisis. “Frequently, vehicles need to be replaced for a variety of reasons to support life-sustaining functions, often tied to repair and collision situations and currently this is not permitted in Pennsylvania,” Stine said. “Other states have recognized this need and PAA is encouraging the administration to rule similarly and provide for a limited interaction sales model, whether by appointment only or through online sales to satisfy the needs of the community while insuring social distancing and limited physical interaction.” Auto dealerships are a staple on most Main Streets in America. Many people are wondering what can be done, right now, to support and help Pennsylvanians of the automobile industry. “Pennsylvania’s car dealers encourage all Pennsylvanians to support

their local businesses during this health crisis,” Stine stated. “Without a doubt all local businesses are suffering, and patronizing these businesses during this difficult time is paramount to preventing an economic crisis to result from the health crisis we are facing.” Stine said all Pennsylvania auto dealerships are struggling to do what is best for their customers and their employees during this difficult time. As per the economic impact that this crisis has caused, she noted, “Any day in which a car sits on their lot, unable to be sold, is a direct cost to the dealership.” Jeff Haly founded his Downingtown auto business, HG Motorcar Corporation, 38 years ago in 1982. Besides sales, the enterprise offers service maintenance and body shop repairs. The Downingtown business officially closed all departments inhouse, including service, on March 24. Haly said he never recalled a time when dealerships were asked to close. He said all of his vendors were doing a great job deferring payments. “Everybody has been wonderful,” Haly said. HG Motorcar Corporation has 14 employees. “I’m trying to pay my employees as best I can. But, it’s hard,” Haly said. “We invest most of our cash. We have $1.5 million worth of inventory here—and it’s still sitting here—that we’re not allowed to sell. So obviously our cash flow is virtually nil.” H.G. Motorcar is located at 711 W. Lancaster Ave. in Downingtown. During the wake of this crisis, H.G. Motorcar closed down at its borough headquarters; however, the staff remains on-call ready to help customers in need. “I have mechanics on call. If we have somebody that has an emergency, we will pick it up, we will fix it, we will deliver it,” Haly said, noting the ability of his business to deliver maintenance and repair services depends on the advanced auto part warehouses staying open. “If we can’t get parts, we can’t fix it,” he said. “We’re strong. We’re all healthy here,” Haly said. “We’re only closed because we’ve been mandated to close. We’re here to work. We’re here to fix people’s cars.” On March 23, the National Au-

tomobile Dealers Association sent a coalition letter to President Donald Trump asking for help. At least in Maryland, the governor is listening. According to Maryland Automobile Dealers Association President Pete Kitzmiller, auto sales were deemed an “essential” service by Maryland Gov. Larry Hogan. Brett Sholder is the owner of Sky Motor Cars in West Chester. He opened the venue, on 969 S Matlack St., back in 2002. As for his employees, Sholder said, “There’s five of us.” As for auto sales being allowed to continue in Maryland, but deemed not permissible, even online, for Pennsylvanian car dealerships, Sholder shared his concern. “It’s kind of disturbing,” Sholder said. “You can have somebody local who needs a car and you can’t sell them, but they can drive down 95 in an hour, or less than that, and buy a car.” Although, in the wake of the coronavirus crisis, Sky Motor Cars cannot sell cars in-house or online, as of press time, the dealership can still

take deposits. Sholder’s staff is working remotely to handle all inquiries. “This is the unknown,” Sholder said. “We don’t know how long this is gonna continue and how long we can sustain being shut down. We’re retail only.” Sky Motor Cars operates a sales department; it doesn’t have a service center. Sky Motor Cars carries a broad range of vehicles and offers a completely transparent car buying process. One of the cars in stock today at Sky Motor Cars is a 2013 Ford F-150 SuperCrew 4WD SVT Raptor. It retails for just under $35,000. As for the coronavirus crisis, Sholder said of his business, “Thankfully we have cash on hand. As long as it’s not three months we’ll weather the storm. Other dealerships that don’t have cash could really get into a bad situation.” As of press time, New Jersey auto dealers remained unable to sell cars in-house at their showrooms or online, according to New Jersey CAR President Jim Appleton during an interview March 24. He said the issue would hopefully be resolved with

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New Jersey Gov. Phil Murphy by the end of the week. “Safety is paramount,” said Jeff D’Ambrosio, during an interview with the Daily Local News on March 24. His business, Jeff D’Ambrosio Auto Group, employs nearly 200 people in Chester County with four dealership showrooms in the region. “Their family and their safety comes first,” he said of his employees, whom he described as his friends. While service is open, sales closed down last week, due to the crisis. D’Ambrosio opened his first car dealership in Chester County nearly 40 years ago, in 1983. Its flagship location is at 1221 E. Lancaster Ave. in Downingtown. “We will get through this together,” he said. “Fear is a terrible enemy.” D’Ambrosio said there is no playbook for this. In recent days, he’s told his employees that everyone will have food for their families. “Chester County is the best community in the world,” D’Ambrosio said. “They know that they’re strong and we’ll get through this. They’re great people here. They’re

the strongest group of people I’ve ever met in Chester County. They’re civic oriented.” He added, “We’ll be fine. The fear factor has to subside. And fear is terrible.” Jeff D’Ambrosio Auto Group is a leading full-service dealership in Chester County dedicated to bringing high-quality vehicles and great service to the region. The dealership carries a large selection of new cars and pre-owned vehicles across a wide spectrum of brands. “Life is full of disturbances,” D’Ambrosio said. “This is when leaders lead and you can really tell the people that are of really good character—how they react.” He said he tells the staff on his team to be leaders. D’Ambrosio expressed his thanks for his family, community and employees. “I am very worried about them because I know their fear is terrible.” He welcomes his team calling him with questions. “I really care about my employees. My employees are my friends.” Delaware has closed down auto sales in the First State until May 16.

In Harrisburg, the effort to legalize online car sales for commonwealth-based auto dealers continues. “We have made requests to the governor’s office to allow for online sales to continue to help our dealer members and satisfy the needs of the communities they support,” said Stine on behalf of the PAA. “Such online sales, with limited interaction for the customer, would be beneficial both to dealerships and to their customers, but to date we have received no response to our requests.” “The Wolf administration’s highest priority remains protecting public health and safety,” said Casey Smith, communications director for the Pennsylvania Department of Community and Economic Development. “Interstate travel is not prohibited.” In an effort to develop as comprehensive a list as possible, the administration used the North American Industry Classification System (NAICS) coding structure from the U.S. Department of Labor Bureau of Labor Statistics identified whether sector businesses were life-sustaining but with the understanding that many businesses could still be oper-

ational through telework, according to Smith. Smith verified to MediaNews Group that since Maryland dealerships remain open for business, Pennsylvanians can travel there to buy cars instead of purchasing inventory from Pennsylvania-based dealerships. “Correct, except for the counties currently under a stay-at-home order, which includes Chester County,” he said. And while car dealerships in Pennsylvania and New Jersey are presently unable to sell cars at their dealerships or online, the demand that remains in play this quarter is turning to not only Maryland dealerships but also to Carvana, a national automobile online dealer based in Arizona. “Carvana is licensed in Pennsylvania and should be in no different position than local dealerships,” Smith said. “In-person title transfer services are not permitted.” In other news, Wolf deemed copy centers a “non-essential” business, whereas the governor of New Jersey exempted the industry as an “essential” service for New Jerseyans. We thank the Daily Local News for reprint permission.

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Tesla Responds to NY Officials’ Call to reopen Gigafactory 2 for Ventilator Production by Simon Alvarez, Teslarati

Tesla CEO Elon Musk said March 25 the company’s Gigafactory 2 in Buﬀalo, NY, will reopen for ventilator production as soon possible, after state oﬃcials called on the company to produce critical medical equipment.

Tesla recently suspended production at its Giga New York plant, as a means to protect employees from the ongoing spread of the coronavirus. “Giga New York will reopen for ventilator production as soon as humanly possible. We will do anything in our power to help the citizens of New York,” Musk tweeted March 25.

In a March 24 statement to Buffalo’s ABC7 News, https:// www.wkbw.com/news/local-news/ assemblyman-ryan-calls-for-tesla-to-make-ventilators-in-buffalo New York State Assemblyman Sean Ryan said everyone must do their part in helping the country address the C-19 pandemic. While Ryan lauded Musk and the Tesla team for their efforts, the assemblyman emphasized the electric car maker’s Buffalo facility could be used to address the state’s current challenges with the virus. “There is no doubt that COVID-19 has created an unprecedented challenge for New York, for our nation and for the entire world,” Ryan said. At this difficult time, it is critical that each of us do our part to ensure our state can respond to the growing pandemic. I thank Elon Musk and the team at Tesla for announcing that they are working on a plan. Tesla’s factory in Buffalo would be an ideal location to ramp up ventilator production, and I urge them to make this commitment immediately.” Ryan also outlined his points in

a March 24 letter to the Tesla and SpaceX CEO:

meet the growing demand of our healthcare system.

“Dear Mr. Musk,

Sincerely, Sean M. Ryan Member of Assembly”

“I write today regarding the growing COVID-19 pandemic and the ongoing efforts to fight the virus and save lives. I want to thank you and your company for announcing a plan to make ventilators to help meet the need for the essential part of the response to help save lives during the pandemic. As your plans move forward, I urge you to ramp up ventilator production at the Tesla factory located in Buffalo, New York. “With COVID-19 impacting every segment of our society and economy, Tesla’s solar production factory in Buffalo has currently suspended operations. At this difficult time, it is critical that each of us do our part to ensure our state can respond to the growing pandemic. New York State is the most impacted state in the nation with over 20,000 cases of COVID-19, and the numbers are growing every day. It makes sense that increased ventilator production would happen here to ensure we can

It’s not just Ryan who called on Tesla and Musk to reopen Giga New York for the production of ventilators and other medical supplies pertinent in the ﬁght against C-19. In a recent tweet, NYGOP Chairman Nick Langworthy advised Musk that “emergency times call for emergency measures,” one of which is the repurposing of Tesla’s Solarglass Roof and Supercharger facility for ventilator and medical supply production. “Perhaps the @Tesla plant in Buﬀalo owned by New York State and gifted to @elonmusk should be repurposed to manufacture ventilators and critical medical equipment as soon as humanly possible. Emergency times call for drastic measures,” Langworthy wrote. We thank Teslarati for reprint permission.

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Continued from Cover

Economic Reopening health official, the state’s top economic development official and the governor’s chief of staff—for a total of 18 members. Cuomo said the council would begin its work April 21 and the timeframe for it to complete its work had not yet been decided. “They’re going to start talking literally tomorrow and start to scope that out,” he said. “We didn’t start with a timetable. We said and will say to the group, we want it as soon as possible, but we want it smart.” Earlier April 20, the president had issued a pair of tweets that insisted it was up to him and other federal officials to make decisions when to reopen economic activity shut down to combat the spread of coronavirus. “For the purpose of creating conflict and confusion, some in the Fake News Media are saying that it is the Governors decision to open up the states, not that of the President of the United States & the Federal Government,” Trump said in the tweets. “Let it be fully understood that this is incorrect … It is the decision of the President, and for many good reasons. “With that being said, the Administration and I are working closely with the Governors, and this will continue,” he continued. “A decision by me, in conjunction with the Governors and input from others, will be made shortly!” Pennsylvania Gov. Tom Wolf suggested since governors were the ones who made the individual decisions earlier in the crisis, the decision-making going forward should follow a similar course. “Seeing how we had the responsibility for closing the state down, I think we probably have the primary responsibility for opening it up,” he said. “I think this regional

compact is premised on the idea that you’re not going to have a healthy economy if you have an unhealthy population.” Cuomo echoed Wolf’s comments, saying if the president wanted to impose federal directives, he has that power under the U.S. Constitution, but it wouldn’t work if such directives didn’t take into account each state’s unique position. “Gov. Wolf’s point is right,” Cuomo said. “The states closed. … And when you say open, what does that mean? Does that mean you’re going to proclaim all businesses open? Isolation over? Come out of your homes, businesses are open? What does it mean? Governors need clarity.” New Jersey Gov. Phil Murphy, saying his state had not quite reached the plateau of new cases seen in New York, said any economic decisions had to be made with public health still being kept in mind. “An economic recovery only occurs on the back of a complete health care recovery,” he said. “Transposing those steps or jumping in too early or maybe jumping in by ourselves … you could have inadvertent unintended consequences which could be grave. “This is the fight of our lives,” he added. “We’re not out of the woods yet.” Wolf said coming up with a plan well in advance of its implementation would send a powerful signal of hope to the residents of the six states. “We need to come up with a specific and a smart plan for this uncertainty that lies ahead, but it is also (important) that we are creating a plan to let our people, the people that we serve, the citizens of our state, (know) that we do indeed have a future,” he said. “This is as important as coming up with the specific elements of this plan. It has to be responsible, but it has to show us that we do have a future.” Murphy offered similar thoughts,

arguing that even as the states continue to combat the virus, they were obligated to look at the economic angles. “The house is still on fire, we still have to put the fire out, but we do have to begin putting in place the pieces of the puzzle that we know we’re going to need,” he said. “Both health care infrastructure to make sure this doesn’t reignite, as well as the steps we’re going to need to take collectively as a region in terms of economic recovery.” Cuomo said as the council develops proposals, there was no expectation all six states would be bound to follow the exact same protocols. Some solutions might work better for some than others, he said. “Each state will have a strategy,” he said. “Hopefully, they’re not inconsistent. I would love to do everything in unison, that’s the optimum. If unison isn’t possible because we’re different and we have different needs, fine. But let’s at least know what each other is doing so we’re not counterproductive with each other.” Cuomo said other Northeast

states not yet part of the council were welcome to join, and he said there were ongoing discussions taking place with Massachusetts, which is led by Republican Gov. Charlie Baker. Just a few hours later, word emerged that Massachusetts had indeed joined the other six states. “The Baker-Polito Administration looks forward to participating in discussions with neighboring states and experts regarding the ongoing response to the COVID-19 pandemic,” Baker said in a news release. Rhode Island Gov. Gina Raimondo insisted the actions of the nation’s governors were going to be the keys in seeing the crisis through to its conclusion. “The governors are the ones who have been showing great leadership and taking action to take our residents safe,” she said. “And so I think it’s only appropriate that we do the same thing now by coming together and showing regional leadership to reopen the economy.” We thank The Center Square for reprint permission.

Call or Email Now for Rates: AUTOBODY ltedesco@autobodynews.com

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Open for Business: Caliber Collision Auto Repair by Taylor Lumpkin, WMDT 47 News

On a typical day, the Caliber Collision auto body shop in Salisbury, MD, is filled with cars waiting to be serviced and customers ready to pay. But the coronavirus pandemic has changed things drastically for General Manager Buddy Smith and his entire team. “We have about 10 cars total in process right now and usually we run around the 30-car range at any given time here at the shop,” said Smith. Ever since fears of the virus began to grow and families were ordered to stay at home, Smith says work here at the shop just isn’t what it used to be. “Over 50% of our work has been gone. Usually, that back lot is pretty full, and I think there are three cars back there.” With a team that relies solely on the work they do in order to get paid, Smith says they’ve been coming up with different ways to still service customers while also putting their minds at ease when it

comes to their health. “If they want to stay home, we can handle all of the authorizations online, via e-mail or fax or anything like that. We can offer to pick up, and if it’s too far away we can actually even offer to have it towed here and take it back to their home once it’s all complete,” said Smith. And while Smith says he has no idea how long this pandemic will last, he’ll do whatever it takes to take care of both customers and his employees. “I’m willing to offer discounts or any way to get work in the door to keep our people here busy and being able to support their family.” Smith added customers are encouraged to go to any of their Caliber Collision shops located across the Eastern Shore, including in Salisbury, Ocean City and Pocomoke. And if you’d like to get a free estimate or make an appointment, just head to the auto shop’s website here. https://calibercollision.com/locate-a-caliber-collision-center/salisbury We thank WMDT 47 News for reprint permission.

Tesla Delivering Ventilators to NY Hospitals Amid Coronavirus Pandemic by Brad Bergan, Interesting Engineering

Tesla CEO Elon Musk would have Medtronic, Philips and ResMed ventilators delivered to New York hospitals March 26, according to his recent tweet. “Working on that with Medtronic. Given NY pressing needs, we’re delivering Resmed (sic), Philips, & Medtronic ventilatrors to NY hospitals starting tonight,” tweeted Musk on March 26. When another account asked for updates on ventilator production, Musk tweeted “Tesla Owners Silicon Valley” in reply. The imminent delivery of crucial ventilators to New York State comes one short day after Musk assured the world the company’s Gigafactory in Buffalo would reopen “as soon as humanly possible,” to manufacture ventilators and assist New York in its fight to curb the COVID-19 outbreak. Musk posted news of the reopening factory March 25, adding that his company would do “any-

thing in their power to help the citizens of New York.” Musk’s saving throw also comes roughly a week following New York Mayor Bill de Blasio replying directly to an earlier tweet of Musk’s that asked which hospitals were experiencing ventilator shortages. In the reply, de Blasio clarified York hospitals were experiencing serious shortages in medical supplies. “We’re reaching out to you directly,” said de Blasio. As the death toll from the COVID-19 coronavirus continues to rise, industry leaders like Bill Gates and Musk and their organizations—the Bill & Melinda Gates Foundation and Tesla, respectively—are in the industry spotlight as leaders of tech in a time of pandemic. We thank Interesting Engineering for reprint permission.

AUTOBODY

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Continued from the Cover

AUTOBODY are certified by FCA, Honda, Nissan, Lexus and a few others. Hassell writes, “In our shop, we work for the customer. Our customers are our friends, and we make things right for them.” When asked how he was handling his employee situation, Hassell replied, “We had one guy that was getting ready to retire, so he took this opportunity

Analysis of the Body Shop Survey

to do just that, and gave a younger guy a chance to stay on. That was very gracious of him. Other people were in a financial situation that would allow them to take a couple of weeks off without pay so that worked out. Plus, we have shifted hours around for some people and gone to a no-overtime policy. So, it’s all worked out.” Hassell not-

100%

Independently operated single-point shop Independently operated with two or more locations

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

87.2%

9.5%

MSO (Caliber, CARSTAR, Service King, etc.)

3.1%

No Response(s)

100%

TOTALS:

restoration work for the brands they usually handle—mainly Porsche and BMW. And one shop in a snow-belt area has taken on more rust-repair jobs to keep busy. Read Autobody News on-line at autobodynews.com and in-print to keep up with the industry’s latest developments.

2. Given the current pandemic situation, to what degree is your shop operating? (Choose one)

1. What is your type of shop? (Choose one) ANSWER:

ed that in his area of Long Island there is a heavy concentration of shops. Some are busy, some are dead. One shop in northern California noted that their DRP work had all but dried up so they were knocking on doors of businesses that were still open to find work. One highend shop in Utah has taken on some

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

100%-plus (backlog of work)

5.3%

100% - 75%

17.0%

75% - 50%

22.3%

50% - 25%

27.6%

25% - 5%

21.2%

We’re temporarily closed

6.3%

No Response(s)

100%

TOTALS:

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3. Have you had any layoffs due to work changes? (Choose one) ANSWER:

100%

Yes - Laid off a quarter of my staff

4. What changes have you implemented in your workplace? (Choose all that apply)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

12.7%

Closed front office

29.6%

Pickup / deliver customer cars

54.9%

100%

Yes - Laid off half of my staff

6.3%

Yes - Laid off three-quarters of my staff

21.2%

Sanitation stations / enforce social distancing

78.0%

No - Have not had to lay off anyone

59.5%

Use face masks and rubber gloves regardless of the shop operation

56.0%

Other

16.4%

100%

No Response(s)

TOTALS:

5. Have you taken on any other type of work such as restoration or custom work?

TOTALS:

6. Have you applied for assistance under the CARES Act just passed by Congress? (Choose one)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

Yes

19.1%

73.4%

If yes, what type of work? Comment below

7.4%

No Response(s)

100%

ANSWER:

100%

TOTALS:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

Yes - I have submitted a application but have not yet received the funds

62.7%

Yes - I have submitted a application and have already received the funds

10.6%

8.5%

11.7%

6.3%

100%

No - But I plan to at a later time No - I do not intend to use CARES funds No - I have not heard of the CARES Act

TOTALS:

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Seven Northeast States Announce Council to Plan Economic Reopening by Dave Lemery, The Center Square

A group of six Northeast states— Connecticut, Delaware, New Jersey, New York, Pennsylvania and Rhode Island—on April 20 jointly announced a council formed by representatives of each to come up with a plan to reopen their economies as the coronavirus crisis starts to ebb in the weeks to come. The group became seven later in the day when it was announced that Massachusetts had joined the coalition. The move by the states was seen in some corners as putting them in opposition to comments by President Donald Trump earlier in the day asserting that he alone has the power to decide when the economy is reopened. The states’ announcement was led by New York Gov. Andrew Cuomo, and the other five Democratic governors each called into a news conference held in Albany, NY, to announce the move to form the regional council. Each state will contribute three representatives—the state’s top health official, the state’s top economic development official and the governor’s chief of staff—for a total of 18 members. Cuomo said the council would begin its work April 21 and the timeframe for it to complete its work had not yet been decided. “They’re going to start talking literally tomorrow and start to scope that out,” he said. “We didn’t start with a timetable. We said and will say to the group, we want it as soon as possible, but we want it smart.” Earlier April 20, the president had issued a pair of tweets that insisted it was up to him and other federal officials to make decisions when to reopen economic activity shut down to combat the spread of coronavirus. “For the purpose of creating conflict and confusion, some in the Fake News Media are saying that it is the Governors decision to open up the states, not that of the President of the United States & the Federal Government,” Trump said in the tweets. “Let it be fully understood that this is incorrect … It is the decision of the President, and for many good reasons. “With that being said, the Administration and I are working closely with the Governors, and this will continue,” he continued. “A

decision by me, in conjunction with the Governors and input from others, will be made shortly!” Pennsylvania Gov. Tom Wolf suggested since governors were the ones who made the individual decisions earlier in the crisis, the decision-making going forward should follow a similar course. “Seeing how we had the responsibility for closing the state down, I think we probably have the primary responsibility for opening it up,” he said. “I think this regional compact is premised on the idea that you’re not going to have a healthy economy if you have an unhealthy population.” Cuomo echoed Wolf’s comments, saying if the president wanted to impose federal directives, he has that power under the U.S. Constitution, but it wouldn’t work if such directives didn’t take into account each state’s unique position. “Gov. Wolf’s point is right,” Cuomo said. “The states closed. … And when you say open, what does that mean? Does that mean you’re going to proclaim all businesses open? Isolation over? Come out of your homes, businesses are open? What does it mean? Governors need clarity.” New Jersey Gov. Phil Murphy, saying his state had not quite reached the plateau of new cases seen in New York, said any economic decisions had to be made with public health still being kept in mind. “An economic recovery only occurs on the back of a complete health care recovery,” he said. “Transposing those steps or jumping in too early or maybe jumping in by ourselves … you could have inadvertent unintended consequences which could be grave. “This is the fight of our lives,” he added. “We’re not out of the woods yet.” Wolf said coming up with a plan well in advance of its implementation would send a powerful signal of hope to the residents of the six states. “We need to come up with a specific and a smart plan for this uncertainty that lies ahead, but it is also (important) that we are creating a plan to let our people, the people that we serve, the citizens of our state, (know) that we do indeed have a future,” he said. “This is as important as coming up with the specific elements of this plan. It has to be responsible, but it has to show

us that we do have a future.” Murphy offered similar thoughts, arguing that even as the states continue to combat the virus, they were obligated to look at the economic angles. “The house is still on fire, we still have to put the fire out, but we do have to begin putting in place the pieces of the puzzle that we know we’re going to need,” he said. “Both health care infrastructure to make sure this doesn’t reignite, as well as the steps we’re going to need to take collectively as a region in terms of economic recovery.” Cuomo said as the council develops proposals, there was no expectation all six states would be bound to follow the exact same protocols. Some solutions might work better for some than others, he said. “Each state will have a strategy,” he said. “Hopefully, they’re not inconsistent. I would love to do everything in unison, that’s the optimum. If unison isn’t possible because we’re different and we have different needs, fine. But let’s at least know what each other is doing so we’re not counterproductive with

each other.” Cuomo said other Northeast states not yet part of the council were welcome to join, and he said there were ongoing discussions taking place with Massachusetts, which is led by Republican Gov. Charlie Baker. Just a few hours later, word emerged that Massachusetts had indeed joined the other six states. “The Baker-Polito Administration looks forward to participating in discussions with neighboring states and experts regarding the ongoing response to the COVID-19 pandemic,” Baker said in a news release. Rhode Island Gov. Gina Raimondo insisted the actions of the nation’s governors were going to be the keys in seeing the crisis through to its conclusion. “The governors are the ones who have been showing great leadership and taking action to take our residents safe,” she said. “And so I think it’s only appropriate that we do the same thing now by coming together and showing regional leadership to reopen the economy.” We thank The Center Square for reprint permission.

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Family-Owned Auto Repair Shops in PA Remain Open as Small Business Traffic Continues to Decline by Jen Samuel, Daily Local News

Auto repair shops are essential. Besides hospitals and grocery stores, auto repair shops remain open as the governor deemed them ‘life-sustaining’ back in March. Technician William Losito Jr. is the manager of Bill’s Service Center in the small village of Toughkenamon within the Kennett Square region. The southeast Pennsylvanian family-owned and -operated business opened shop more than four decades ago. The business sits on the nook of a hillside parcel on Newark Road between Route 41 and Old Baltimore Pike in New Garden Township. And one thing hasn’t changed during the last month. Bill’s Service Center remains open and ready for business with a loyal team of friends and family. Bill’s Service Center continues to maintain its normal business hours from 8 a.m. to 5:30 p.m. weekly. “Yes. Business has decreased since most people are staying home under the current situations,” Losito said. Further, “It has impacted us with decreases in vehicles coming in and being able to order parts easily.” Bill’s Service Center is a full-service shop, which includes everything from vehicle inspections and oil changes to full maintenance needs.“We are taking all precautions to make sure our employees and customers are safe, including sanitizing after every job. We just wanna say to everyone, be safe, stay clean and this shall pass very soon and business will come back to normal before we know it,” Losito said. Bill’s dad, William Losito Sr., said his business oﬀers full automotive services. He co-owns the business with his wife, Susan.“Honesty is key,” Losito Sr. said. He said he values “being able to work together to provide the community with honest and quality service for their vehicles.” During the last 20 years, his son, Losito Jr., has worked at the shop. His wife, Dawn Losito, is secretary. The business also employs Chris Judge and Frank DeMasi; both men have worked at Bill’s Ser-

vice Center for more than five years. Lewis Automotive, too, is operating in uncharted territory given this is an unprecedented national event impacting countless aspects of daily life. Although open, most auto repair shops are struggling to stay afloat during this uncertain time, said Glenn Lewis. He owns Lewis Automotive on South Bolmar Street in West Chester. “In a year or two, we will be able to look back at this time in history and all be proud how all of America came together,” Lewis said. Lewis Automotive is a second generation family-owned auto repair facility, established in 1964. “My dad, Gordie Lewis, started the business,” Lewis said, calling his father “the driving force” who first inspired him to learn the craft as a child. “He brought me into the shop at a young age and I have loved the business ever since. I have been working in the auto repair business for over 40 years and can’t imagine

doing anything else,” Lewis said. “I love going to work every day and seeing our employees and customers. They have become our family. We’ve been working on many customer family’s vehicles for generations.” Today, administrative staﬀ includes Lewis’ wife, Donna, and service manager Pat Rooney.

Owner Glenn Lewis, left, and Shop Manager Pat Rooney, right, continue to maintain operations onsite at Lewis Automotive. Credit: Submitted photo

By government mandate, facilities that repair or maintain vehicles are considered essential services, even during the COVID-19 pandemic, Lewis said. “We maintain social distanc-

ing,” Lewis added, noting his wife keeps the office clean and disinfected every day. The shop guys not only wear gloves and masks, but also wipe down vehicle steering wheels and door handles when services are finished. Lewis said he supported the actions of the governor and described it as “the right course of action so everybody can be safe.” Still, “we have been impacted by the stay-athome order,” Lewis said. “Like other small businesses during this uncertain time, and even being deemed essential by our state government, the slowdown in traffic to our business from our customers staying home has made being in business difficult.” Some vehicles Lewis Automotive repairs include funeral home hearse vehicles, police cars, ambulances, commercial business fleet vehicles and the vehicles of health care workers. “Cars and trucks are still break-

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20 MAY 2020 AUTOBODY NEWS / autobodynews.com

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ing down and in need of maintenance services during this time,” Lewis said. For instance, if a nurse’s Jeep Wrangler busts a tire, she needs it fixed. Fast. The business continues to offer patrons towing, pick-up and drop-off services during the ongoing crisis. Although the panic has settled, and Americans are still adjusting to a new way of daily interactions with others and the world at large, in isolation, mostly, the financial cost of the crisis is just beginning. “Most shop owners have come across difficult times in the years they’ve been in business,” said Lewis, a certified master technician of the automotive trade. “I have been through tough times before,” Lewis said. “This one is going to hurt all of us for a while.” From West Chester government parking attendants to Liberty Place bartenders in Kennett Square, people are out of work. “We sent out Pennsylvania State inspection reminder cards to our customers who are due that month, and we found out most of our customers didn’t know that we’re open,” Lewis said. Administrative staff have followed up with phone calls to cus-

tomers to set up appointments as needed. The business is also offering pickup and drop off service as well during the ongoing crisis. “When the stay-at-home order lifts, everyone will want their vehicle serviced,” Lewis noted. “That being said, it’s better to have a reliable vehicle now, than to cross your fingers and hope for the best down the road.” His wife is passionate about the family enterprise and grateful for the friends met along the way. “Glenn and I have put our heart and soul into our business,” said Donna Lewis. “The relationships we’ve built with generations of customers trusting us with all of their vehicle needs is what it’s all about. We love coming to work every day to help our community.” What has inspired her most recently includes the continued communication from Lewis Automotive customers, “calling us and asking how we are and if we’re healthy and safe. Phone calls between us and our customers are at times not even about their cars and their maintenance needs, it’s personal and heartfelt.” “Our customers are our family,

and they are the only reason we are able to keep doing what we love doing every day,” she said. Elsewhere in Chester County, calls to Downingtown Collision are streamlined directly to the owner’s cellphone. “I’m always available to help and assist,” said Tim Hedrick, owner of Downingtown Collision, Inc. on West Lancaster Avenue. “We are here to help in any capacity and will do our best to navigate with them through this crisis,” Hedrick said. “We had two customers last week say they were just going to sit and hang tight until this settles down. Which I completely understand. Their vehicles are drivable and they are in a position to wait,” Hedrick said. “I told our guys to stay home until at least Monday, April 13, depending if the area gets worse,” he said of the ongoing coronavirus crisis, a national emergency. “I’m lucky I guess because our company has done well over the eight years we’ve been open, so we have cash in the bank. All of the employees are still being paid,” Hedrick said. Since the crisis began

roughly a month ago, Hedrick confirmed business has decreased. “Just to be careful,” he said. In other news, as of press time, state dealerships remained unable to sell cars at established showrooms or even online within the commonwealth. The governor named car dealerships “non-essential” businesses, ordered to close. “All the states surrounding us can now sell, but Gov. (Tom) Wolf continues to deny Pennsylvanians the ability to replace cars,” said Melanie Stine, director of communications for the Pennsylvania Automobile Association. “We’ve had examples of essential personnel at hospitals and grocery stores forced to drive to neighboring states to purchase. It is bad, and the longer it goes on the more frustrating for the public and for dealers.” “Pennsylvania remains unchanged,” she said. We thank the Daily Local News for reprint permission.

www.autobodynews.com

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Continued from Cover

New York Gets Testing Help The governor announced that 474 New Yorkers lost their lives due to COVID-19 since Tuesday’s briefing, which puts NY’s COVID-19 death toll at 14,828. Gov. Cuomo said the three keys to opening up the economy is testing, tracing, and isolating people.

ing efforts across the northeast, and consists of a public health official and an economic development official from each participating state. Aside from the tri-state area, Pennsylvania, Delaware, Rhode Island, and Massachusetts will also be joining the effort. The state’s economic reopening must be “driven by data and experts, not opinions and politics,” Gov. Cuomo said, alluding to President Donald Trump’s hopes to reopen the country by May 1. In an interview with the Today show, the governor warned against President Trump’s claims that he has “total authority” over when and how to lift coronavirus restrictions. “If [Trump] thinks he’s going to force this state... to do something that is reckless or irresponsible, that could endanger human life,” Cuomo said in the interview. As of morning of April 21, the tri-state area has recorded more than 262,000 positive cases of coronavirus and 12,000 deaths, the bulk of which come from New York. The situation does seem to be improving, though. Last Sunday, New York saw 1,958 new hospitalizations due

every day of the number of people who passed away. We’re not going to have people loose their life because we acted imprudently. I’m not going to do that. And I’m not going to allow the state to do it and I’m not going to have the obit of this period to be well they felt political pressure and acted imprudently. That’s not who we are.” Regarding his trip to the White House Tuesday, the governor said his

The state’s economic reopening must be “driven by data and experts, not opinions and politics,” — Gov. Andrew Cuomo Cuomo says if people test positive for coronavirus, there needs to be a “tracing army,” as he calls it, tracing all the contacts of that positive person, and then putting those people in isolation so no other people are infected. “This is not going to be over anytime soon. I know people want to get out, I get it,” Gov. Cuomo said. “I also know more people will die if we are not smart. I have to do that count

meeting with the president was productive. “We had a productive meeting at the White House yesterday,” Gov. Cuomo said. “To me, a productive visit means we spoke truth, we spoke facts, we made decisions, and we have a plan going forward, and that was accomplished yesterday.” The plan calls for a regional advisory council that will guide re-open-

to COVID-19, marking the first time the daily number of hospitalizations has dropped below 2,000 since March 29. The total number of hospitalizations statewide has remained roughly flat. “Just do the job,” Gov. Cuomo said. “When you’re at war, you’re in a foxhole, nobody says ‘do you like the person you’re in the foxhole with?’ No, who cares?” The governor also thanked the president for waiving FEMA’s state match, a measure that would save New York state hundreds of millions of dollars, according to Cuomo. “The president also agreed to waive what’s called the state match for FEMA,” Gov. Cuomo said. “Normally a state has to pay 25% of FEMA cost, that would be a cruel irony for New York and adding insult to injury.”

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Five Groups Ask Trump to Keep Vehicle Sales Operations Open by Auto Remarketing staff

As additional states and municipalities issue stay-at-home orders and business closures, dealerships are caught in a coronavirus-created storm of confusion. On March 24, the leaders of the National Automobile Dealers Association (NADA), the American Truck Dealers (ATD), the National Association of Minority Automobile Dealers (NAMAD), the American International Automobile Dealers Association (AIADA) and the Alliance for Automotive Innovation sent a letter to President Donald Trump asking for clarification that vehicle sales are essential services that need to be maintained during the COVID-19 pandemic. Federal officials already issued clarity that vehicle repair shops are deemed to be essential services and are to remain open. The associations explained the ability to provide replacement cars and trucks in response to any number of scenarios will be vital to ensuring that those in need of reliable personal transportation continue to have access to it. The groups stressed

that franchised car and truck dealers recognize the need to conduct even limited sales and leasing activities in a manner that protects the general public, customers and employees. “Most consumers are concerned about their jobs, families and health and will not be in the market for new or used vehicles for weeks or months, so the overall effect of this additional capacity will be limited,” the groups wrote. “However, for the many people who may need a replacement vehicle or a new vehicle for any number of reasons, the additional sales activity surely would be defined as vital or essential to them.” “Additionally, many of nation’s essential workers, including first responders, medical workers, grocery store employees, delivery drivers and others providing similar services may suddenly find that they need a more reliable way to get to these critical jobs,” the letter continued. “In short, there are thousands of scenarios that would prompt the urgent need for a car, SUV or truck—now more than ever.” According to the letter: • In 2019, 12.55 million ve-

Pennsylvania Company Offers Truck Drivers a Place to Stop and Rest by Staff Writer, 1st State Update

PennFleet near Philadelphia, PA, opened its property to truck drivers in need of a place to stop and rest, if regular spots are closed or full due to the COVID-19 virus pandemic. PennFleet is located a few miles off I-95 just south of Philadelphia, at 591 Meetinghouse Road in Boothwyn, PA. Hours of operation are 7 a.m. to 5 p.m. At this time, PennFleet is offering parking spots on a first come, first served basis. For questions or more information, email info@pennfleet.com

or call 610-940-1507. In addition, PennFleet has partnered with some of its customers to help provide portable toilets, hand sanitizing station, snacks (Bimbo Bakeries USA) and beverages, all free of charge to the hard-working American truckers. The site is open daily from 7 a.m. to 5 p.m. Donations from local companies and individuals will help honor and support the truck drivers. If interested in contributing to this effort, contact PennFleet. We thank 1st State Update for reprint permission.

hicles were scrapped because they wore out or it was not economical for them to be repaired. Approximately 9.4 million of those vehicles were replaced with a new or used vehicle. • In 2018, 1.24 million vehicles were determined by insurance companies to be total losses as a result of an accident, flooding or other total loss events. Individual consumers and businesses typically use their insurance proceeds to purchase a substitute vehicle within a few days. Without that option, they may not have affordable, reliable transportation to meet their personal or commercial needs. • Between March and July of this year, 1.8 million vehicle leases will expire (4.1 million for the entire year of 2020), all of which will require replacement. In many ways, these customers will face the same challenges as described above following a total loss. • Virtually all of last year’s 500,000 sales of medium and heavytrucks were sold for use in commercial fleets. Officials noted 71.4% of the nation’s tonnage freight is hauled

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in trucks sold by truck dealer members. • The associations estimated around 500,000 “Essential Critical Infrastructure Workers,” as defined in DHS/CISA Guidance (healthcare providers, law enforcement, public safety, first responders, food and agriculture employees, etc.), annually acquire a new or used vehicle. “Not all vehicle sales are discretionary consumer purchases. A significant number of dealership sales transactions occur because a consumer or business is in immediate need of a replacement vehicle for basic transportation. This clarification is particularly important as various transit services have been curtailed or eliminated due to the public health recommendations about social distancing,” the groups said. “Our members would simply like to provide vehicles to those customers in a secure manner, while at the same time meeting our obligation to the public-at-large and our employees.” We thank Auto Remarketing for reprint permission.

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24 MAY 2020 AUTOBODY NEWS / autobodynews.com

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Detroit 3 Gain Big Market Share as COVID-19 Infects Sales, April Looks Worse by Henry Payne, The Detroit News

With March auto sales infected by the coronavirus, Detroit automakers are bracing for an unprecedented spring of empty showrooms as analysts predict 2020 sales could be down as much as 30% from forecasts. The U.S. industry’s first quarterly sales reports since the the COVID-19 crisis shut auto plants and many showrooms delivered declines for every automaker. Declines were particularly acute in the last week of March as 80% of the country—39 states—issued shelterin-place orders, resulting in sales declines of 61%, according to forecasting firm J.D. Power. New York City and Detroit were the hardest hit metro markets. Yet, even as Fiat Chrysler Automobiles NV reported sales declines of 10% for the first quarter of the year and General Motors Co. was off 7%, the Detroit Three were poised to weather the downturn better than their peers due to healthy pickup sales. Buoyed by truckloads of incentives, GM, FCA and Ford Motor Co. gained a whopping 11 points in U.S. market share thanks to their most profitable vehicles. Ford isn’t scheduled to release its detailed January-March sales numbers until April 2. The sales pain spread across all sectors of the automotive market. Toyota and Hyundai saw first quarter sales decelerate, with the Japanese giant dropping 35.3% in March alone. Including its abysmal 43% March decline, Hyundai reported an 11% drop in the first quarter. Luxury automakers were particularly hard hit, with Porsche first-quarter sales chopped 20.2% from a year ago (after a record 2019) and BMW off 15.3%. The industry is bracing for difficult months ahead with March a passing rainstorm compared to the coming April hurricane. With states expected to be in lock-down until April 30, J.D. Power predicts an 80% decline in sales. After a record five years of annual U.S. sales over 17 million units, sales were expected to slow in 2020, according to J.D. Power forecasts, to a still healthy 16.8 million units. But with automakers poised for the spring selling season beginning in

March, COVID-19 has changed the landscape. Assuming sales pick up after July, annual sales should stabilize between 12.1 million and 14.8 million units for the year—down 10% to 30% from their 2019 projections. “It’s going to get much worse in April as uncertainty rises and the potential that regulations will stay in place,” said Thomas King, chief product officer for J.D. Power. “We expect 1.6 million to 2.4 million unit sales lost from March though July.” According to a University of Michigan survey, consumer sentiment tumbled last month to its lowest level since the 2008 Great Recession and is projected to hit its largest two-month decline ever. Not surprisingly, given COVID-19’s impact on seniors, the 57-years-and-up demographic saw the biggest decline—67%—in auto shoppers. “Most important is when stayat-home orders end,” continued King. “There is going to be significant economic damage, and the economic environment is going to be challenging for the rest of the year.” Dealers across the country are offering no-interest loans and unprecedented 84-month lease terms to entice buyers to profit-rich pickups in particular. To maintain truck sales, automakers doled out a record—46%—of 84-month loans, as well as a record $7,200 in incentives. As a result, pickup sales last week were down just 27% compared to 61% for the industry, leading to the Detroit Three's highest market share since 2006. In GM's stable, the Chevy Silverado pickup roared to a 26% sales gain over a year ago, with 143,698 units sold, while its Sierra cousin was plus 31%. The popular Ram pickup lifted sales 7% to 128,805 vehicles. “In terms of adapting to changing conditions, there may be no better group than auto dealers," quipped King. "They are showing remarkable ability to retain volume in the key truck segment.” GM and its dealers are offering concierge service, courtesy transportation and home delivery where permissible. But permissible varies by state: In Michigan, Pennsylvania, Washington, Kentucky and Hawaii even online sales have been sus-

pended until April 14. The Michigan Automobile Dealers Association has advised its members that automotive sales remain closed under Gov. Gretchen Whitmer’s business guidelines. Only service, parts and body-shop operations are allowed to stay open. As a result, Detroit saw a near 100% collapse in sales in the last week. “We are still actively talking with customers, answering questions and booking appointments for when the governor’s executive order lifts on April 14,” said a spokesperson for Lafontaine Automotive Group. New York Gov. Andrew Cuomo lifted that state's ban on online sales March 27. “This is an enormous win,” said New York State Auto Dealer Association President Bob Vancavage in a statement. Dealers “have been working non-stop to craft an exemption under the essential business guidelines to allow dealers to do what they do best: sell cars.” The cratering of sales in New York was a key reason that luxury auto sales took the biggest hit in

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March. The state accounts for some 14% of premium sales nationwide. In contrast to pickup makers, luxury brands saw their market share decline from 14% to just 10%. In California, the nation’s largest auto market, the California New Car Dealers Association has advised all 1,400 showrooms to comply with Gov. Gavin Newsom’s shutdown order. Even home-team Tesla Inc. was forced to shut down production and showroom deliveries of its electric cars. The shutdown comes as the Silicon Valley automaker is launching its first entry-level SUV, the Model Y. Analysts expect Tesla sales to be off 30%. The Golden State’s first-inthe-nation shelter-in-place order on March 19 showed ominous signs for the industry, as San Francisco sales slid 86% the first weekend after the order. But San Francisco has modestly rebounded in the week since, implying dealers are adapting quickly to the new environment. Since a majority of luxury vehicles are leased, J.D. Power predicts a

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lot of pent-up demand in that segment once shelter rules are lifted. For Detroit automakers, there were some bright spots outside of their core truck lines and the small-volume Bolt electric car. Sales of Chevy's entry-level, $22,295 Trax SUV soared even as the rest of the brand's SUV lineup did not fare as well. The entry-level Spark sedan saw sales gains, but Autotrader analyst Michelle Krebs warned against a trend of small car purchases. “We anticipate that sales of subcompact and compact cars (and SUVs) will struggle the most in the coming year. These segments tend to be bought by the least credit-worthy buyers, who already pay high interest rates and are the most vulnerable to layoffs in this economic crisis,” she said. Overall, Chevy saw the least degradation among GM brands with sales off 3.8%. GMC dropped 5.5%, Cadillac 15.8% and Buick 34.7%. For Fiat Chrysler, sales of the family-friendly Chrysler Pacifica minivan climbed 5%. Jeep’s allnew Gladiator pickup continued to impress with its third consecutive quarter of 15,000-plus sales though

the Jeep line declined 14% for the quarter. That paled next to Fiat’s 49% free fall. “We expect some automakers will use the crisis to clean their houses, choosing to eliminate models and even brands,” said Krebs. “Long-suffering brands like Fiat might not survive the crisis.” Despite the sales gloom, TrueCar projected the average transaction price of vehicles to be up 3.2% in March 2020. Transaction prices have been key to industry profit margins, but TrueCar analyst Eric Lyman sounded a cautionary note as COVID-19’s effect on sales did not set in until mid-month. “Historically, there’s been a strong correlation between consumer confidence and average transaction price,” he said. “We’re now seeing one of the largest one-month declines in consumer confidence in nearly 50 years. April will provide a much clearer picture of the full impact caused from the coronavirus.” We thank The Detroit News for reprint permission.

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Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same by Mark Phelan, Detroit Free Press

The way we buy cars may never be the same, as auto dealers adjust to working under COVID-19 restrictions and customers discover they prefer the new approach, which leans heavily on internet sales and vehicle demos and could include valet-style pickup and delivery service for everything from test drives to oil changes. “This is going to fundamentally change how people view buying a car,” said Rhett Ricart, CEO of Ricart Automotive Group in Columbus, OH, and chairman of the National Auto Dealers Association. “By the end of this year, you’re going to see 80% to 90% of U.S. new car dealers with full e-commerce capability in their shops” to handle everything online but the test drive and—maybe—the final signature, he said. Online deals at Ricart’s domestic dealerships have doubled during the last six weeks, he said. In Michigan, Gov. Gretchen

Whitmer’s extended “stay home” order clears the way for that, after a month when nearly all vehicle sales were prohibited in the state. It allows “workers at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.” Michigan dealers have been hoping and making plans for just such a change. Deliveries could begin as soon as they work out a process that addresses all the legal documents that are part of buying a vehicle. “We’re seeing a fundamental change in the way cars will be sold,” said Doug North, owner of North Bros. Ford in Westland, MI, and chairman of the North American International Auto Show. “This pandemic is going to create some permanent changes.” We thank the Detroit Free Press for reprint permission.

28 MAY 2020 AUTOBODY NEWS / autobodynews.com

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Is COVID-19 Accelerating An Industry Disruptor? by Neil Pitt, Motorious

How is the collector industry adapting to so many shutdowns? Collector and classic car auctions have been around since the early 1970s, when notable Kruse International held its first collector car auction in Auburn, IN. The Kruse classic car auction quickly grew and became a destination event for car guys each Labor Day. Although Kruse International was plagued with economic disruptions and legal debacles, it enjoyed some successes, including being purchased by eBay in 1999 for stock valued at $130 million. Thomas Barrett, a car collector from from Phoenix, AZ, was inspired by the success of Kruse International in the early '70s and decided to hold his own auction to cull his personal collection. Later, Barrett partnered with a friend, Russell Jackson, to form what is now arguably the most well-known collector car auction on the planet, Barrett-Jackson. Over the past five decades, many others have joined the auction industry, focused on a hobby and relentless passion for the automobile.

As the use of technology has become more prevalent and purchasing items online has become the norm, the collector car market has also transitioned to an online model. Most physical car auctions include the ability to bid and purchase by phone or through a myriad of platforms, such as Auction Mobility and Proxibid. Many of the collector car classified sites also include auction platforms as demonstrated by Hemmings and Motorious. The collector car market is very different from the retail daily driver market, in that most people are looking for a unique vehicle that is typically not found within driving distance of their home. According to Speed Digital, a technology provider for Collector Car dealers, approximately 80% of collector vehicles are sold online with the first “tire kicking” the moment the vehicle is unloaded from the transporter. The past decade has seen the rise of a once obscure company, Bringa-Trailer (BaT), that originated as a grassroots community discussing cars. BaT is now the preeminent online destination for purchasing collector cars and boasts a bid of $3.125 million for

a 2015 Ferrari LaFerrari (did not meet reserve.) As the COVID-19 pandemic spreads across the U.S. and "social distancing" has become part of our daily vocabulary, many of the physical auctions have been forced to either postpone or take the auction completely online. The following auctions have online only offerings within the next few months. Motorious—March 13-27 RM Sotheby's—March 20-28 Vicari Auctions—April 17-18 Pros & Cons of online only auctions Pros: 1. Reduced travel cost. Both consigning and buying online can have significantly reduced costs associated with personal travel (airfare, hotels, meals.) 2. Reduced transportation costs. Potentially, the cost of shipping associated with transporting vehicles to and from the venue is reduced. This is especially true if the vehicle is a "no sale" as the consignor is on the hook for transportation to the venue and then back after the auction. 3. Flexibility. Technology allows the use of alerts on particular vehicles,

making a better use of time as compared to being on-site watching vehicles cross the block of no interest to the buyer. 4. Leveraging a larger car community. Platforms such as Bring-a-Trailer allow commenting, which provides information and sometimes specific expertise from a worldwide audience. Cons: 1. No physical inspection. There is no substitute for a personal physical inspection. While websites offer numerous photographs, videos and detailed descriptions, there are always opportunities for errors. 2. Missed comradery. Many of the annual auction events provide an opportunity for enthusiasts to get together. These events have become a highly anticipated pilgrimage and a chance to bond with like-minded individuals. As the COVID-19 pandemic subsides, will we see more online auctions or will the car community bounce back to reveling in exhaust-filled venues listening to the chatter of the auctioneer? We thank Motorious for reprint permission.

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Auto Insurance Agencies See Reduced Claims Since Virus Outbreak by Emmariah Holcomb, glassBYTEs.com

As more states implement shutdowns in an effort to limit COVID19’s reach, auto insurance providers run the risk of declines in insurance claims. J. Robert Hunter, Consumer Federation insurance director, and Birny Birnbaum, Center for Economic Justice director, wrote a letter asking the state insurance commissioners to “direct insurance carriers to offer premium offset payments.” “We write to urge you to direct auto insurers in your state to provide premium offset payments to policyholders whose driving has been affected by COVID-19—specifically, for those policyholders whose miles driven has declined and will continue to remain lower than anticipated at the time of policy rating for the foreseeable future,” a portion of the letter reads. According to the letter, millions are sheltering in place or have significantly reduced their driving, which leads to consumers being having to pay unreasonable and excessive premiums based on outdated

estimates of miles driven. The letter also highlighted how premium offset payments provide relief while retaining the insurers’ ability to “snap back” to prior pricing when mileage returns to the levels the current rates are based.

“All insurers, directly or indirectly, use some measure of miles driven to determine rates, so the actions to contain COVID-19 will result in savings to the system that can be quantified and returned to American consumers,” a portion of the letter reads. “The annual mileage on which their auto insurance premium is based has suddenly and dramatically become incorrect. If a policy was rated based on commuting to work, then anyone who is staying

home and only driving to the market for supplies is paying a premium that is now excessive.” The pair also noted several actions that should be taken in an effort to aid auto insurance consumers, which include: Direct auto insurers in each state to contact their policyholders and offer premium relief to any policyholder who can demonstrate or attest that their miles driven has been impacted by COVID-19 safety measures; Direct insurers that such premium relief is permitted by state law and is not a rebate; Direct insurers to file notices with your department that they will send to policyholders and the process and timing they will use to provide relief; Direct insurers to report on a monthly basis anonymized information on each request for relief received; and Encourage drivers to contact their auto insurers for relief. We thank glassBYTEs.com for reprint permission.

Auto Glass Industry Responds to Those in Need COVID-19 continues to impact the U.S., but some in the auto glass industry worked together to help those in need. Paul Bycok, of Glass One Auto Glass, used social media to challenge those in the industry to give back. He, along with others, went into their community to deliver “care boxes” to the elderly. According to Bycok, some of the items included in the boxes were toilet paper, water, rice, canned and packaged soup, toothbrushes with toothpaste, bar soap, pasta, pasta sauce, muffin mix, coffee, tea and cookies. “A lot of us have been blessed by this crazy industry. Let’s hope this passes over, but be mindful of others who (may) need a drop box of help,” Bycok said. We thank glassBYTEs.com for reprint permission.

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Ford Teams With GE, 3M to Make Ventilators, Personal Protective Equipment by Dave Herndon, Press & Guide

Ford Motor Co. announced March 24 it will produce ventilators, face masks and more in conjunction with 3M and GE Healthcare to help fill shortages during the coronavirus pandemic. “By coming together across multiple industries, we can make a real difference for people in need and for those on the front lines of this crisis,” Executive Chairman Bill Ford said on a conference call with the media. According to the companies, Ford will start to manufacture 3M’s new respirator that uses a blower, instead of a person’s lungs to draw air through a filter. GE Healthcare officials said a “simplified” version of the machine will be manufactured in an expedited fashion. Ford said his company jumped into action after the U.S. government requested help. The equipment will be produced in at least one of the company’s Michigan plants, but didn’t say which plant or plants at this time. The company said its U.S. design team is also creating and starting

to test transparent full-face shields for medical workers and first responders to pair with N95 masks. The first 1,000 face shields will be tested this week at Detroit Mercy, Henry Ford Health Systems and Detroit Medical Center Sinai-Grace Hospitals.

Ford Motor Company employee Dave Jacek wears a prototype of a 3D-printed medical face shield. Credit: Charlotte Smith, Ford Motor Co.

The company said it will employ UAW workers to assemble more than 100,000 of the plastic face shields every week at a Ford manufacturing site to help medical professionals, factory workers and store clerks. We thank the Press & Guide for reprint permission.

30 MAY 2020 AUTOBODY NEWS / autobodynews.com

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908-753-1680

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

Williamsville/Buffalo

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

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

Shenango Honda

Ray Laks Honda

Hermitage

West Seneca

716-824-7852

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

NEW YORK

Brewster Honda

Apple Honda

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

800-960-9041 717-848-2600

845-278-4177

800-858-0849 724-981-7106

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

Sussman Honda

PENNSYLVANIA

Brewster

Pittsburgh

Roslyn

800-682-2914 215-657-3301

York

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

Madison Honda

Dick Ide Honda

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

800-648-0293 973-822-1710

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

Baierl Honda

802 Honda

724-940-2006

802-223-9700

Madison

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

Rossi Honda Vineland

800-893-3030 856-692-4449

Rochester

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

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

Syracuse

Route 22 Honda

Lia Honda of Albany

973-705-9100

800-272-6741 518-482-2598

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

315-471-7278

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

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

Berlin

Lamacchia Honda

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

Hillside

Wexford

VERMONT

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

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

Bill Vinceâ&#x20AC;&#x2122;s Bridgewater Acura Bridgewater

908-704-0307

Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com

Elite Acura Maple Shade

856-722-9600

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Acura of Westchester Westchester

914-834-8887

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Paragon Acura

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718-507-3990

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Smithtown Acura

Sussman Acura

St. James

888-832-8220 631-366-4114

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800-826-4078 215-884-6285

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autobodynews.com / MAY 2020 AUTOBODY NEWS 33

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with Erica Schroeder

Industry Insight

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

with John Yoswick

Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software

Shop Showcase

The economic fallout from the coro- labels with odd misspellings of such navirus pandemic is likely to be felt common words as Ford. worldwide, and that has law enforce- Genuine automaker airbags are with Ed Attanasio ment bracing for almost inevitable shipped one per box, with a “Class uptick in crime, including illegal busi- 9” hazardous material label, Pagdiness activity. lao said; counterfeiters, however, of Shops should take a number of ten save money by shipping multiple measure to avoid perpetuating—or airbags in a single box, or by skipfalling victim to—criminal activity. ping the hazardous material label. The Automotive Anti-Counter Shops concerned a part they rewith Ed Attanasio feiting Council (A2C2), a coalition ceived may be counterfeit should conof 11 automakers, is reminding shops tact the National Intellectual Property to avoid counterfeit airbags and other Rights Coordination Center (IPRC) automotive parts. (www.iprcenter.gov), part of the U.S. Dee Pagdilao, of American Hon- Immigration and Customs Enforceda, said A2C2 offers a visual guide to ment and the U.S. Department of some of the mostwith common Edindications Attanasio Homeland Security. that a part may be counterfeit, includ- How can shops best avoid puring labels that don’t match one anoth- chasing or installing counterfeit parts? er (such as two different part numbers The first step is to know your on the same package) or that cover parts supply chain, Abe Jardines of other labels; labels with conflicting the IPRC said. information (“made in Thailand” and “My first job when I was 17 with Ed Attanasio “made in Japan”); or, most commonly, years old was delivering parts to auto

Social Media for Shops

SEMA Show Goes On

shops in New Jersey for a local car dealer,” Jardines said. “Every guy at those body shops knew me by name, and I knew them by name. The next time my mom needed a body shop, I could call that guy up and say my mother is coming in. I knew who I trusted. “That was knowing the supply chain. The internet kind of changed that. As great as the internet is at connecting people that are good, it’s also really good at connecting people who are bad with those who don’t know the other person is a bad source,” Jardines said. “But at the end of the day, it all comes down to knowing your supply chain. If you can trust your supply chain, if you would put a part (you buy from a source) on your own car, we can’t ask for anything more from you.” Authorities caution parts aren’t the only automaker product subject

Media and Publicity for Shops

to pirating. Shops buying an aftermarket scan tool should determine whether the tool maker licensed the needed information from the automaker, or just “reverse-engineered” it by putting an OEM scan tool on a vehicle and using monitoring equipment to determine the diagnostic routines to essentially copy. Greg Potter of the Equipment and Tool Institute said it’s safe to say every manufacturer of aftermarket scan tools reverse-engineers to some degree. “Even if you are given all the great data that you (license from) the OEMs, you still have to implement those features and functions into your aftermarket tool,” Potter said. “You have to validate and verify that that tool is doing what it’s supposed to do. How do you do that? You get the OEM tool, you send a command, you

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see what the reaction is, you monitor that traffic, and then you take your tool and you do the same thing. “That’s your validation effort, back and forth. That can certainly

be called reverse-engineering. You are monitoring the messages from the OEM tool and making sure your tool does the same thing and gets the same responses back.”

But Donny Seyfer of National Automotive Service Task Force (NASTF) said it’s not really that type of “professional” reverse-engineering that is a problem.

Deciding Which Scan Tools are the Best Fit for Your Shop How can a collision repairer know an aftermarket scan tool will adequately emulate the OEM tool? “Well, that’s the big challenge. You really can’t,” said Donny Seyfer of the National Automotive Service Task Force during a panel discussion earlier this year at the Collision Industry Conference. “Until you have it in your hands and plug it into the car, you don’t know if it works or not.” Seyfer said he thinks that’s why the collision industry is largely defaulting to OEM scan tools (or to using scanning service providers that use them.) “I’m not saying that’s necessarily the right solution, because unless you’re working on (a vehicle) that’s really, really new, you have a pretty good chance that the (aftermarket) scan

tool maker has integrated the test you need,” he said. But Seyfer also acknowledged aftermarket scan tool makers in general have focused on the mechanical repair segment of the market and won’t necessarily know what the collision industry needs until the industry conveys it. Scott Brown, a founder of Diagnostic Network, an online community designed to provide resources and support for diagnostic technicians, said aftermarket scan tools in some cases offer more functionality than OEM tools, particularly on vehicles that are a few years old. OEM scan tools don’t always display data in a format that is most helpful to technicians. “A lot of times, the aftermarket tool companies listen and end up fix-

ing that, providing a way to display the data in a way that (best helps shop technicians find) the diagnostics needed,” Brown said. Greg Potter of the Equipment and Tool Institute agreed. “The automakers do a good job developing diagnostics for next year’s vehicles, because they have to. That’s their job, their focus,” Potter said. “But some of them don’t do a real good job in upgrading or enhancing diagnostic software that is a couple of years old. They move on to developing stuff for the future. But for the aftermarket, that’s their sweet spot. They focus on collecting information and enhancing software as they learn how people are using it, learning what the weaknesses are and correcting those issues.”

“It’s the, ‘How can we steal the software off the OEM tool and then sort of implement it into our own tool, and then sell it, in some cases representing it as an OEM tool,’ that’s the problem,” Seyfer said. “In some cases, they’re not even taking the (OEM tool) copyright information off. As you use it, you see that and say, ‘Huh, that’s not even the brand of the tool I’m using.’” Seyfer that type of piracy undermines the companies producing both OEM and legitimate aftermarket tools. “So if you buy those (pirated) tools just to save a few hundred bucks, and those other (legitimate scan tool) companies keep raising the prices because they’re spending all their time going to court (to fight the piracy,) now you’ll understand why,” Seyfer said. “Customs and border patrol snags these things constantly, by the case load. Truck loads in some cases.” Jack Rozint of Mitchell International said his company’s software similarly gets pirated, and he said that the same online sources where that pirated software is being sold also often offers knock-offs of automaker scan tools for sale.

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Shops Using Downtime Advantageously During COVID-19 Crisis by Chasidy Rae Sisk

As the U.S. strives to prevent the spread of COVID-19, most states have instituted some version of a shelter-in-place order. Many businesses are experiencing a decrease in workload, including collision repair shops and related businesses. While furloughs are happening, experts advise against it, especially in light of aid offered by the U.S. government, including the Paycheck Protection Program (PPP), which provides small businesses with forgivable loans to keep employees paid. Most shop owners are doing everything they can to maintain their employees, including pursuing less traditional schedules and duties. Industry leaders agree that looking for the opportunities within the current situation will help collision repair professionals maintain a more positive outlook and come out in a good position on the other side. “No one wants to face declining car counts and repair volume, but if there is a silver lining to all of this, it does provide an opportunity to focus on how you can improve your business during the downtime,” VeriFacts CEO Farzam Afshar recently said. Improving the business can take a variety of forms, including maintenance, financial and training opportunities. During this period, many shops are using the extra time to clean and sanitize their entire facility. Deep clean the paint booth, change filters, service or upgrade equipment, power wash the building and reorganize to enhance efficiencies to prepare for the day the work starts coming back in the door. Kevin Anderson of Elite Auto Body in Gambrills, MD, has his team gutting the shop, purging junk and painting the floor and walls. At Downingtown Collision in Downingtown, PA, Tim Hedrick is “working because I’m trying to make sure my guys can collect a real paycheck and not unemployment. I’m paying them to do maintenance and sweep and other stuff around the shop.” At Parks Royal Body Works in

Boise, ID, the technicians are still processing their current workload, but after that, Matt Thornton has plans to deep clean the building, convert the booths to LED lighting and replace office carpet. “That should keep them busy for a couple of weeks. We are taking it day by day and keep adjusting our ideas and finances as needed,” Thornton said. “We applied for the PPP, which will really help.” The team at Cocoa Auto Salvage in Cocoa, FL, is employed on special projects like resetting the yard, maintenance and auditing as well. Owner Shan McMillon is also using the downtime to evaluate her inventory and update settings in her electronic platforms. “I have more time to work on my business, instead of in my business, and I’m trying to take full advantage of that,” McMillon said. DCR Systems LLC is processing paperwork and accounts receivables during the lighter supply of vehicles, according to Marketing Specialist Pam Giarrizzo. “The team is working on ways to communicate with the insurance companies and the customer to try to lessen or eliminate short pays. It just takes more communication with both parties,” she said. “Develop your fully reopen checklist and get to work. ‘Fill the potholes,’ meaning go take care of the little things in your systems and processes that you just always seemed too busy to take the time needed and fix,” said John Hill of The Autotrends in Greensboro, NC. “If your building needs a little paint, it’s the perfect time to freshen things up.” On a recent CIECAst, Mike Anderson of Collision Advice recommended shops analyze their financials to look at areas they can reduce or eliminate. Closing out repair orders, chasing receivables and establishing new accounts may be worth a look, as well as audits and associate reviews, which often get deferred due to workload. With the reduction in work, many shops may be tempted to reduce or even eliminate marketing efforts, but successful shop owners disagree with

that approach. “If your shops are slow, use this opportunity to put yourself in front of your customers,” said Brian Shaw from Sudden Impact Auto Body & Paint in Salisbury, NC. “I’m not a very good speaker and don’t do well on camera, but right now, at least in North Carolina, our customers are sitting at home scrolling Facebook. Try to have fun and stay positive!” At Body Works Plus in Charlotte, NC, Brian Davies has been sending email blasts to previous customers, which generate a 55% return ratio; the day after he sent the first blast, he received a job. He contracted a local marketing company to set up a free valet for customers to have their vehicles picked up and dropped off, sans contact. “We amped up our budget for marketing and started promoting our business on two new radio stations. Last week, I did a Facebook Live about a special we’re offering, and that went really well,” Davies said.

“If things slow down, we’ve taken on a project to repair a veteran’s truck, and if it comes to it, we’ll paint the floors and perform maintenance.” “Do not stop marketing. If anything, increase it,” Hill said, recommending shops keep an eye on the future throughout this crisis. “Everyone is a startup now, and it’s a great time to adjust those pay plans you were too timid to address. Get help wanted ads out. We all knew the labor market was too tight with everyone employed, and now, we can get and retain some quality applicants. “It’s going to be a real-life game of musical chairs when people get back to work,” Hill said. “Plan now so you can get the right people lined up for the right chairs. The hysteria is going to end, and while it may be a little jagged getting to the new normal, I believe that many of us will like it better, ultimately.” Preparing for the future by ordering parts ahead of time, especially in light of staggered deliveries, can be helpful, Anderson recommended.

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Paul Morro of Morrobuilt in Raleigh, NC, agreed. “Because I work on 40- to 50-year-old British cars, parts supply is critical, and when I received an email from my next-day supplier that they were temporarily shutting down operations, I placed a large hard parts stock order from a different supplier that is still in operation to ensure I can satisfy future customer vehicle repairs,” Morro said. “I normally order as needed, but I wanted to be certain that I’d prepared for whatever the future holds.” Another common practice among shops is revising their employees’ work schedules in some way. “We’re still open five days each week, but our techs have gone to a four-day workweek, reducing payroll by approximately 20%,” said Stan Creech, from Creech Import Repair Inc. in Raleigh, NC. “During idle time, we clean the shop, paint, update equipment and perform maintenance.” R&N Motor Company, Inc. in Sanford, NC, has emailed its customer base to offer vehicle pickup and drop-off, is focused on saniti-

zation and has begun preparing for equipment updates. “We lost a tech to a government job, but it couldn’t have happened at a better time,” Manager Robert Crawford said. “There’s still enough work coming in to keep two techs going. If we get caught up, they leave an hour or two early, but we still pay them to make up for the lack in billable hours. We are making plans to hire a new tech.” In Little Egg Harbor, NJ, one of the areas of the country hardest hit by COVID-19, John Molinaro of Streamline Auto Body erred on the side of caution. When New Jersey Gov. Phil Murphy implemented a stay-at-home order, Molinaro instructed employees to follow the order, “although we are essential,” he said. “They have received full pay for the time they are out, and my rent will be paid on time,” Molinaro said. “My customers were supportive in our decision with regards to delays in completing their vehicles, as well as our scheduled customers understanding our decision.” Molinaro didn’t pay his techs

without assigning them some work, though. “We used this time to review SOPs and learn new procedures and technology from the products and tools we use,” he said. “Each employee is asked to view two hours of training videos each day, and Collision Hub has been amazing in having videos in one place for my techs to view, offering over 850 videos on YouTube.” Anderson recommended shops take advantage of downtime by reviewing repair guides from the manufacturers they repair and investing in training. Crawford, Davies, Creech and Thornton all have plans to train their teams as well. Often, shops complain training causes delays in the repair process, but with a lack of workload, this is the perfect opportunity to take advantage of the many virtual training opportunities available. Due to the current situation, many associations and industry supporting companies are providing free resources and training opportunities online. Here are just a few websites offering free or discounted webinars:

INFINITI OF NORWOOD

CollisionHub.com FordHarrison.com ShopMarketingPros.com business.spanesi-americas.com/ youtube.com/user/SCRSCollision youtube.com/user/ButlerCollision rts.i-car.com worldpac.com/training/classes/online/ thepowerofa.org/coronavirusadvocacy/ nada.org/coronavirus/resources/ sema.org/corona-updates/ tstseminars.org/ elitebodyshopsolutions.com/ Although there are many challenges ahead, there are plenty of ideas to help shops keep employees working with a little creativity and positivity. Good luck, and stay safe.

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on on

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ Even before the coronavirus outbreak, I was telling shops I work with a renewed focus on “capture rate” was increasingly important. Now it’s become critical. Here’s why: Look at any reliable source of claims counts in the U.S. over the last couple of years, and you’ll see they are declining. The increasing number of vehicle on the road with advanced driver assistance systems (ADAS) is reducing accidents. Not by a lot, and it varies a bit by region, but by about 2 to 4% a year overall, most analysts agree. That might not be particularly noticeable—yet. I think it has been masked by shops feeling like their sales increased in recent years, but that’s because severity has been getting higher. The ADAS impact on claims count has also been offset until recently because low unemployment and low gas prices were keeping more

vehicles on the road for more miles. But we’re a little bit like the frog in that old analogy: Put a frog in a pot of boiling water, and it will jump out. But put it in a pot of tepid water and only slowly bring up the temperature, and the frog will boil to death. Similarly, a 2 or 3% decline in claims counts each year might be easy to ignore, but in five or seven years, you’re going to be wondering why the water around you has gotten so hot. So now, and especially in response to this pandemic, we have to get back to the fundamentals, including focusing on capture rate, something most of us did when we were first in business. You need to convert more of your potential customers into actual repair orders. How do you do that? How about following up on estimates written? If a customer gets an estimate but

doesn’t schedule the job, call them the next day, then three days later, then five days after the estimate. One of the major clients I work with said those type of follow-up calls are helping them capture 20% of those jobs that weren’t scheduled at the time of the estimate. That’s a big deal. The pandemic and work slowdown has shops following up like never before. I talked to a shop in late March who told me, “We’re following up on estimates we wrote a year ago.” The reality is all shops should have been doing that type of follow-up all along. Another thing you should be doing: Monitor where your work is coming from. Most management systems can help you do that. Unfortunately, I look at many shops’ “referral” or “source” reports and see just generic categories like “insurer” or “internet”

or “dealer.” That’s not good enough. Capture your source information in detail. Let’s say you’re a direct repair shop for ABC Insurance. If you run the source report and see you repaired about 20 cars a month through DRP claims paid for by ABC, and now you’re only doing 15 a month, you need to get proactive and find out why. You can also track how many claims were paid for by various insurers through a “Body Shop Scorecard” report available through Enterprise. It shows you by insurance company how many of your customers were in an Enterprise rental while their vehicle was in your shop. If you are seeing fewer rentals covered by a particular insurer, find out why. Don’t just list “dealer” as a source; identify which dealer. Again, if you see a decline in those referrals, See ‘Capture Rate’, Page 59

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autobodynews.com / MAY 2020 AUTOBODY NEWS 43

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Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery Assured Performance is taking bold the future. mize the risk of the transmission of action to support our certified repair Since this industry is directly im- COVID-19 for both team members Autobody News recently reached out network. pacted by miles driven and employ- and customers alike. to leaders in the collision repair indusWe’ve created a special Following the municipal, provinment, people NOT driving try to find out how they are best man- subsidy and stimulus proand forced to stay at home cial, state and federal guidelines for aging the inevitable interruptions to gram for our certified repair will be significant and could health and safety that are local to the “business as usual” during the current providers we hope will help be devastating if the shut- repairers remain paramount during coronavirus restrictions. in the short term and actualthis COVID-19 pandemic. Increased down lasts too long. In addition to sharing their insight ly reinvent and turbocharge In the short term, it is a rates of cleaning frequently touched on how this will affect the industry, their businesses for the long great time for shops to im- surfaces, spaces and property is a they offered some advice to business term. plement new systems, train common directive as well as making Dean Fisher owners and employees. For immediate relief, staff and refine their sales, hand sanitizers and disinfectant wipes we have instituted a payment pro- marketing and production processes. more available to both customers and Farzam Afshar, CEO of VeriFacts gram, discount incentives and ac- We can all be far better businesses employees. Automotive celerated rebate redemption for the coming out of this crisis if we do this VeriFacts Automotive is working cost of certification. As a stimulus, well and execute a smart business Jim Keller, President of 1Colllision closely with our customers, insurers we have introduced a new program improvement plan. Network and OEMs to adapt our practices in to help drive sales and re-engineer 1Collision has addressed our locations these challenging times. business operations to save money Dean Fisher, President of CARSTAR as a group in regard to safety precauWe are conducting many of our and manpower. The safety of our customers and team tions by issuing bulletins, holding coaching services virtually to ensure Through an agreement with members is always our first priority, group web meetings and conducting we are keeping our team members Bodyshop Booster, certified net- and we are taking steps to protect the discussions with shops about the ways and the shop employees safe. We are work shops can offer consumers health and wellbeing of our team and they are protecting employees and cusfollowing OEM guidelines and their insurers a hands- customers. tomers. on shop certification visits. free estimating and repair To help capture traffic to your We have implemented a numAlso, we’ve shared tips with process that protects the ber of precautions based on the ad- door, educate consumers on the vehicle our customers about how shop employees, the con- vice of the Centers for Disease Con- disinfecting measures they can take, they can enhance their busisumer and the insurers. trol, the World Health Organization as well as the policies and procedures ness practices to ensure shop The new process com- and other health authorities to mini- your repair facility has implemented. cleanliness, follow social bines photo and remote virdistancing rules and provide tual estimating with a fully Farzam Afshar convenient customer service. documented and/or certified While there will be short-term repair. The process eliminates the declines in repair volume as fewer need for the consumer or the insurer people are on the road each day, we to come to the shop by using a pickup will see business return to previous and delivery system, centralized aplevels as this challenge subsides. pointment setting with an active calWe may also see daily driving endar and special tools for the shops’ trends increase, as people may be re- websites. luctant to return to air travel, trains These combined with full elecand public transportation. tronic visual documentation will enIn addition, people may hold on able consumers and insurers to interto their vehicles longer rather than act with shops in a new and far better investing in a new car, which will way of doing business. translate to more repair needs. Programs like this can save reChoose Original MINI Parts. We always advise shop owners pairers hundreds of thousands of New York Maryland and managers to use the good times dollars each year and save insurers to prepare for potential millions. The process is far Keeler MINI MINI of downturns, and to use the easier for consumers and ofLatham Montgomery County downtime to productivefers a “hands-free” solution 877-553-3909 Gaithersburg ly plan for the future. This during this time of social 518-785-4197 Parts 240-238-1204 Parts (518) 785-4710 Fax is the ideal time to conduct distancing and quarantining. (240) 238-1493 Fax M-F 7:30-6; Sat 8-4 M-F 7:30-6:30; Sat 8-5 your facility and equipment Consumers do not have to miniparts@keeler.com minipartsmd@ maintenance, participate in come to the shop and they keelerMINI.com miniofmontgomerycounty.com employee training, complete will have higher confidence Scott Biggs your annual financial review than ever before because of The Dealers Above Are Original and planning and do your employee the repair documentation. MINI Parts Distributors reviews. Our certified repairers’ survival is essential to all of us. It may be the ©2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are Scott Biggs, CEO of Assured perfect solution for these uncertain registered trademarks. Performance times and become the new norm in Compiled by Stacey Phillips

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autobodynews.com / MAY 2020 AUTOBODY NEWS 45

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In the sales process, especially ress) and sales volumes. Parts availabilduring a shrinking market, it’s criti- ity will likely become a challenge, with cal to educate consumers about mak- manufacturer supply chains weakening ing the proper repair facility choice. internationally and the within the U.S. By using effective sales and closing Talk to your employees, and most techniques, and writing a complete importantly listen to what they are feeling…be compassionate, and and accurate repair plan, it assure them they are being will likely be the difference heard and you will help in any between breakeven and a way you can. Always rememrespectable profit. ber, without our employees, On the financial side, I there is no business. recommend managing your Collision business owners numbers daily; close more must be strong, smart, cousales and manage all costs, Jim Keller rageous and lead their orgaespecially labor and parts. With monthly building pay- nization by taking calculated risks. Henry Ford once said, “The comments, whether you are in a lease or a mortgage, have conversations with petitor to be feared is one who never the bank or building owner to delay bothers about you at all, but goes on a payment or two to help weather the making his own business better all the storm. Analyzing all expenses to cut time.” The leader that does nothing costs and being more efficient is al- will certainly lead to failure. ways a good exercise. Also, grant programs are becom- Aaron Schulenberg, Executive ing available on both a federal and Director of SCRS state-by-state basis, that are potential- The Society of Collision Repair Specialists (SCRS) recognizes many ly beneficial to collision shop owners. The most critical issues I see for collision repairers are being inunshops are the early reports that have dated with emails and information indicated lower claims volumes, which surrounding the current events unwill mean lower WIP (work in prog- folding, and many of our members

are reaching out trying to understand what it means to their businesses. As an association, we are largely relying on those with specialized expertise to offer guidance, and then finding ways to share that guidance through our free channels of communications. These include Repairer Driven News www.repairdrivennews .com, and a new resource page we have set up: www.scrs.com/covid19 -resources.

SCRS Board

The resource page is continually updated with information about workplace preparation and help, as well as financial aid and relief to help small businesses and citizens across the U.S. As essential businesses, we know the critical role collision repairers are playing right now for customers and

employees. We’ve seen many examples of businesses taking enhanced precautions against COVID-19, ranging from zero-contact interactions with customers at drop-off and pick-up, that allow for adherence to social distancing policies surrounding personal contact. We’ve also seen examples of businesses promoting services to “clean,” “sanitize” or “disinfect” customer vehicles. SCRS urges caution with the language used in your promotion of services. For instance, your facility can assure that you “apply disinfectant,” but there is no testing protocol to ensure that you “disinfected” the vehicle. In our interaction with other industries, this has been a repeated caution; describe only what you performed, rather than a promise of what it accomplished. The information is constantly evolving, the situation changing, and the best advice we can offer is to make ample use of the resources available to you to stay abreast of the current See Leaders Share Thoughts, Page 48

46 MAY 2020 AUTOBODY NEWS / autobodynews.com

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National News

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

with Ed Attanasio

CCC Analyst Forecasts Impact of COVID-19 on Collision Repair Industry Trying to figure out what the long- capacity. term impact of COVID-19 will be Gotsch has written the “Crash to the automotive, insurance and Course,” CCC’s annual publication collision repair industries is literally on trends affecting collision repair and with Chasidy Rae total Siskloss costs, since 1995. This puimpossible. Everyone is speculating and re- blication has become a key resource lying on news stories that change for the industry in understanding how hourly, so unless you trust psychics broader trends within the economy, like Sylvia Browne or Carnac The new and used vehicle marketplaces and collision industry are affecting Magnificent, you’re only guessing. Director/Industry Analyst Su- auto claim frequency and costs. sanna Gotsch from CCC Information with Chasidy Rae SiskGotsch also consults with the Services Inc. is a 28-year veteran, so development of CCC’s industry-leashe’s been there and done that when ding data warehouse and reporting it comes to interpreting numbers and products. hoping to predict what’s going to hap- What we are facing now is unpen next. precedented as it affects both our li Her job is to eliminate guess- velihoods and our health, Gotsch said, work to ferret out the facts. No one meaning that it’s hard to compare to knows when wewith will all get back Antonelli to anything else that has happened in our Victoria our “normal” lives, but Gotsch’s his- lives. torical perspective supported by data “We’ve obviously never been is invaluable for anyone who works here before, so we are comparing this in the automotive industry within any to prior epidemics or major econo-

National Events

mic disruptions and right now we’re seeing the worst of both,” Gotsch said. “When the SARS epidemic hit the Far East in 2002-2003, car sales plummeted. But what’s interesting is

National News

Techs of Tomorrow

Director/Industry Analyst Susanna Gotsch from CCC Informational Services forecasts a rocky road that will drive up claim and repair cycle times for the rest of the year.

that after the epidemic was over, auto sales went up significantly. We don’t know the reasons for that specifically, but we suspect that people living in urban populations didn’t want to use

public transportation anymore.” History shows us the U.S. has seen overall miles driven in this country fall during recessionary periods, Gotsch said. “During the Great Recession that ran from December 2007 to June 2009, total miles driven fell over 3% from its pre-recession peak in November 2007 to its lowest point in February 2010 during the post-recovery,” she said. Logically, fewer drivers mean fewer potential accidents, Gotsch said. “Countries, states and communities worldwide are on lockdown, asking residents to go out only for food and other essential needs. Businesses have begun to close for an unspecified amount of time, and many are having workers work remotely,» she said. “This will most certainly lead to significant declines in miles driven, particularly at peak

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with Bruce Roistacher Northeast_Issue_0520.indd 47

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driving times, where congestion has been shown to drive auto accident and claim frequency. “There was a steep decline in the frequency of auto claims during and after the Great Recession,” she said. “The number of claims per 100 insured vehicles for collision and liability coverages combined was 4.79 for the rolling four quarters ending Q1 2008, and fell nearly 12% to 4.22 claims per 100 insured vehicles for the rolling four quarters ending Q3 2008. “Collision claim coverage alone fell nearly 16% from 6.29 claims per 100 insured vehicles for the four quarters ending Q1 2008 to a low of 5.3 claims per 100 insured vehicles for the four quarters ending Q2 2011. Independently, liability claims experienced a nearly 10 percentage decline during that same period.” As more individuals are forced to work from home and discontinue all trips except those to stock up on essential items, it’s clear we can expect miles driven to plummet, and auto claim frequency to follow suit. If we want to get a look at what U.S. auto sales will be doing this summer, China can give you a glimpse into our future. Auto sales in China fell 33% in January 2020, and fell another 79% in February 2020. The car sales numbers in China are significant because they can forecast what is coming next in the U.S. “We will really watch these numbers, because a full recovery later in the year is unlikely,” she said. “Auto sales in China had already fallen over the last two years, and analysts are projecting that sales will be down bet-

ween 3-5% versus 2019 sales.” In Gotsch’s detailed report, it states in the U.S., analysts are predicting CY 2020 auto sales will fall by as much as 20%, as opposed to previous forecasts of a 1-2% decline for the year. The largest decline in sales are anticipated in March and April. Mid-March, the UAW and the Detroit automakers agreed to shutdowns of plants to stop the spread

Continued from Page 46

ery day, as we restore safety and peace of mind after unexpected tragedy. While the conditions are unchartered territory for us all, as an industry we will find our way through to the other side, using our professional experience to serve the motoring public as they turn to us in their time of need.

Leaders Share Thoughts events. But most importantly, remain positive. We are an industry that fixes broken, seemingly unfixable incidents ev-

“We’ve obviously never been here before, so we are comparing this to prior epidemics or major economic disruptions and right now we’re seeing the worst of both,” — Susanna Gotsch of COVID-19. Other automakers are continuing to halt production due to the shortage of parts, identification of employees testing positive for COVID-19, as part of broader community/state quarantine efforts or in anticipation of fewer sales in CY 2020. COVID-19 will likely impact parts availability through the summer and possibly longer, Gotsch said. “The disruptions in auto parts manufacturing that occurred in China in January and February is expected to result in supply shortages beginning in late March through April and June,” Gotsch said. “If miles driven fall, this could lessen or delay that impact. “Automakers looking for components for use in production had begun shipping at-risk components via cargo plane, and where necessary, looking for alternative suppliers

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or manufacturing locales for affected parts. As automakers come to grips with the real possibility that auto sales will fall, more will look to slow production even more.” Gotsch’s report states the car manufacturers in the U.S. will do more to keep their customers from going broke in 2020. “Numerous automakers are already offering consumers the ability

www.autobodynews.com

to delay payments, purchase vehicles with zero-interest loans stretched out over many years or offering to pay monthly payments should a customer lose their job after purchase,” she wrote. Gotsch forecasts a larger decline in new auto insurance premiums related to new car sales. “During the Great Recession, private passenger vehicle net pre-

miums declined, as auto sales in the country fell, and consumers opted to drop all but the coverage mandated by law,” the CCC report stated. “The biggest drop occurred within private passenger auto physical damage in CY 2009: -2.2%. If car sales fall as precipitously as we saw back in 2009, private passenger auto premium growth will also be impacted.” Body shops will also have to deal with longer fulfillment times for certain replacement parts driving up claim and repair cycle times within the next few months or longer, Gotsch explained. “As COVID-19 continues to spread, people will drive less due to quarantines and to limit overall exposure, so our industry can expect a drop in auto accidents and claims as well,” Gotsch said. “With the epicenter of COVID-19 now having moved out of China to Europe and the U.S., the overall impact to the global economy will be significant. “All of us at CCC will continue to monitor this situation closely and provide additional updates during this unprecedented time as we return to normalcy.”

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Hey Toby!

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

with Toby Chess

A Quick Course on Primers Recently, I received a call from a glass blew out, and did not deflect friend who owns a high-end colli- the bag onto a passenger. I hate to sion repair facility in the Los Ange- think about the consequences. les area. I was called to come and look at In June 2019, a 2017 Ford Rap- the truck. tor was repaired at his shop. The I asked the painter how he shop replaced the A-pillar on the prepped the vehicle prior to painting. passenger’s sidewith of the David vehicle. McClune Last He said the body technician sanded December, it rained in L.A. for three the bare aluminum with 180 grit sanddays straight, and the vehicle devel- paper and primed it with epoxy primoped a water leak at the windshield. er. The vehicle was returned to the shop First problem: you cannot just and the glass company that installed sand bare aluminum and think it is the new windshield was called to ready for paint. You need to clean come back and reseal the glass. the bare metal with a stainless steel Everyone was surprised when brush. I use the small “toothbrush” the glass on the passenger’s side post types because they do a better job of did not stick to the A-pillar. What removing the aluminum oxide from Johnfailure. Yoswick we have here iswith an adhesive bare aluminum (See Fig. 1) compared In other words, the adhesive did not with the larger traditional brush. stick to the substrate. Let’s take a look at aluminum Imagine if the vehicle were in- oxide. volved in another accident and the Aluminum oxide (Al2O3) is a airbag struck the windshield and the naturally-forming compound on bare

aluminum. Metallic aluminum is very reactive with atmospheric oxygen and moisture, and a 4-nm passivation layer of aluminum oxide forms on any exposed aluminum surface in a matter of hundreds of a second. This layer protects the metal from further oxidation. The melting point of aluminum is 1,221 degrees Fahrenheit, compared to aluminum oxide, which melts at approximately 3,700 degrees. This oxide layer is much harder than the aluminum and helps the material resist corrosion and abrasion. However, it also acts as an insulator that can create issues during welding, like porosity, as well as during the repair process—body filler adhesion, adhesive adhesion and certain types of primers and finish coats will not stick to it. In the case of the shop’s problem with the windshield, the aluminum oxide and phosphoric acid caused the

adhesive to degrade and not stick to the pillar.

California Autobody Association

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Fig. 1

Remember, use a stainless steel brush rather than a steel brush to prevent galvanic corrosion (See Fig. 2).

Fig. 2

Collision Repair Association of CA. with Richard Steffen

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50 MAY 2020 AUTOBODY NEWS / autobodynews.com

with David M. Brown Northeast_Issue_0520.indd 50

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As a best practice, clean the area with a good wax and grease remover like Kent Automotive’s Acrysol (Fig. 3).

tached to the vehicle (Fig. 7). Note the strip of gray epoxy primer where the windshield will be attached. After seeing what happened at my friend’s shop, I taught his staff about the various types of primers used in the repair process. It would be beneficial to give the same information here so repairs are done properly, reducing the chance of a comeback or catastrophic failure.

Self etch primer (Fig. 4) uses phosphoric acid to etch the metal. If the acid has not fully dissipated, it will attack the adhesive, which will lead to an adhesive failure. The only recommend primer to be used in this repair is epoxy primer (Fig. 5).

Fig. 3

Fig. 6

I asked the painter to bring over the epoxy primer he was using. It turned out to be self etch primer. Fig. 5

After cleaning the part with the brush and Acrysol, I brushed on a coat of epoxy primer with a foam brush (Fig. 6 showing the process, but not the vehicle in this article) After a 30-minute dry time, the vehicle was ready to be primed and painted. The epoxy primer on the windshield flange is the only coating where the windshield will be at-

Fig. 4

Fig. 8

Here is a quick course on primers, starting with weld-through primers (WTP.) There are three major types of WTPs—copper-based, zinc-based and self etch (Fig. 8).

Fig. 7

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WTPs are primarily used when MIG or spot welding together two or more panels. The coatings on the inner flanges are removed and the WTP is applied to the bare metal. Allow it to dry prior to welding. It should be noted the primer is cleaned from the hole when MIG plug welding. Also, Fiat Chrysler does not recommend the use of WTPs, preferring spot welding through the E-coat. Remember, E-coat is not electrically conductive, so a shut clamp will be necessary for the first weld (See Fig. 9).

welding, but not when MIG welding. Audi and Ford recommend their WTP and Honda/Acura recommends Kent’s Self Etch WTP. The next category of primers is Direct to Metal Primers (DTM), because they contain an acid that etches into the metal. Self etch primer (Fig. 10) comes in a spray can or quart container that can be sprayed. This primer contains phosphoric acid, which etches the surface, and zinc for corrosion protection. This primer is used over bare metal to provide a solid base for high-build primers and paints. Self etch primers are not used under body fillers, on plastic parts or under seam sealers. To use it prior to applying seam sealer, first allow it to thoroughly dry—the acid needs to be totally evaporated—and follow with some sort of sealer.

Fig. 9

Some vehicle manufacturers do not recommend copper WTPs because in the past, some paint manufacturers were selling the primer, but it did not contain any zinc and would dissolve when cavity wax was applied to mating surfaces. Most of the copper WTPs have been reformulated with zinc added. The zinc WTPs are the most common. Any excess zinc primer on any surface to be painted needs to be removed—paint does not like to stick to zinc. The self-etch WTP uses phosphoric acid to etch the metal and has zinc for corrosion protection. Once completely dry, paint can be applied directly to metal that may have gotten some of the primer. Nearly all OEMs require WTPs. Honda recommends WTP when spot

Fig. 10

A characteristic feature of this process is the primer particles are

Fig. 12

suspended in a liquid medium, migrate under the influence of an electric field (electrophoresis) and are deposited onto an electrode, or in this case, the metal of the vehicle. The final step is to rinse and bake the vehicle, resulting in a smooth finish. We in the collision industry do not have the ability to replace the E-coat the OEM has, but we have a product that comes very close—epoxy primer. Epoxy primer is known as a 2K primer, consisting of the primer and hardener. It can be applied to any rigid metal surface (steel, aluminum, SMC, fiberglass, etc.) It can be applied as a high build primer or reduced to be sprayed on as primer-sealer.

I have my shops mix it up the epoxy primer in a 4:1 cup in the morning (it has an eight-hour pot life) and, depending on the job, I tell the body tech to brush it on with a foam brush as a first option. Dry time is about 30 minutes. For example, let’s say you are replacing upper fender reinforcement on a vehicle, the attached part is welded into place and now the bare metal needs to be coated with primer. In this case, the body tech does it in his stall with the foam brush.

Fig. 13

Note: do not mask the vehicle for primer, and the car does not need to be moved to the paint department.

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Fig. 11

Whereas regular self etch primer is not sanded, this product is sandable. The same rules apply to this primer as with self etch primers. Another type of self etch primers is DTM primers. Similar to regular self etch primer, these primers are color coded to match the inner structural panels (rails, aprons, etc. Fig. 13) of a vehicle. You should follow the same rules of use as the self etch primers. The last of the DTM primers is epoxy primer (Fig. 5). Electrodeposition primer is applied to a manufactured vehicle by submerging the vehicle in a container or vessel holding the coating bath or solution and applying direct current electricity through the EPD bath using electrodes. The object to be coated is one of the electrodes, and a set of “counter-electrodes” are used to complete the circuit.

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After about 30 minutes drying time, the vehicle can have seam sealer applied to the welded joints. The tech does not need to go to the paint

department and seal it. (See Figs. 14 & 15) Moreover, Honda released a bulletin in March saying “never apply seam sealers to bare metal and apply 2K epoxy primer to the bare metal.” Toyota states in Collision Repair Information Bulletin (CRIB) #63 to “apply epoxy primer or wash primer over bare metal. Do not apply body filler over bare metal.”

color or clear coat.” Ford, GM and Audi recommend in their repair manuals epoxy primer on bare metal glass bonding surfaces. Finally, Honda said in its March repair news “2K epoxy is to be applied to all bare metal surfaces prior to applying seam sealer, body filler or other refinishing products.”

Fig. 18

Fig. 14 Fig. 17

Fig. 16

Fig. 15

In CRIB #127, it says “body fillers should not be applied to bond surfaces. Epoxy primer applied directly to properly prepared bond surfaces should NOT be refinished with

particular primer has a flex agent added, making it ideal for small plastic bumper repairs.

Furthermore, primer can be applied using a foam or standard brush, small roller or dobber as well as being sprayed on. The last primer is specialty high build primer. A few paint manufacturers have a high build primer (Fig. 16) in a handy spray can for small areas. This

In Fig. 17, the bumper repaired area was sanded and two coats of high build primer were applied in the body department. This primer works great with a short wave infrared light (Fig. 18). The primer was completely dry from the top to the base in less than two minutes, and the total repair was done by the body repair technician. Think of the time saved. I hope this article is helpful to you and your staff.

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gent plas-

ired s of n the orks light

dry than was cian.

ul to

with Stacey Phillips

Tips for Busy Body Shops

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

with Stacey Phillips

CCG Shares Body Shop Advice & “Best Practices” During Coronavirus Restrictions “CCG was founded on a simple When the news first broke about the pandemic, the leadership team at Cer- premise established by our founders, tified Collision Group (CCG) recog- to level the playing field for the inwithofStacey Phillips dependent collision repair operator,” nized the importance finding ways to support their network of 446 inde- said Jeff Ingalls, VP of marketing at pendent body shops. CCG. “We do so by partnering with “We quickly realized that the only the best independent repairers, more information we can share, the vendors, insurers and OEs. This alignbetter off we’re all going to be,” said ment and partnership drive value for Marty Evans, COO of CCG. “This all while delivering the ultimate goal of providing the highest quality OE is true for our affi liate Victoria shops as well with Antonelli Certified repair on behalf of the cusas the industry as a whole.” CCG was founded in 2014 by tomer.” Since the onset of the coronafour individuals passionate about the collision repair industry: Marc Se- virus restrictions, Evans said they bastian, CEO of four Blake’s Auto learned early to provide their shops Body shops in Northern California; with as much information as possiBill Lawrence, with owner of 1st Cer- ble. As a result, CCG has regularly Ed12Attanasio tiﬁed Collision facilities in Southern sent out online newsletters to all of its California; Luis Alonso, president of affiliates with facts and advice about seven Pan American Collision Cen- the coronavirus as well as tips to help ters in the San Jose, CA, area; and body shops run safely and effectively. “Our goal is to communicate Tom Adams, owner of TAG Marketwith them in an authentic, genuine ing.

My SEMA

Shop Strategies

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way so they know we are here for them,” said Ingalls. “We have been providing tangible, pragmatic information in a way that isn’t inundating and flooding their inboxes.” This includes links to many resources, such as the Center for Disease Control and Prevention (CDC); local, state and county health department websites; and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. CCG has created a summary document with CARES Act Highlights. To assist affiliate shops considering applying for a loan, CCG is sharing information about COVID19loans.org. The new service was started by Brad Mewes, owner of Supplement Advisory, to help shops understand the opportunities available and file the required paperwork. Ingalls said these suggestions and tools are aimed to help their affiliates through these trying and demanding

times. “The health and well-being of the shops is something that CCG takes very seriously,” he said. In addition to forwarding communication via email, CCG has also continued the practice of communicating with shops via phone. Rather than the usual weekly call, Evans said they are talking daily to connect. “COVID-19 has changed our normal day-to-day conversations but our staff is still hard at work,” said Evans. He said it’s advantageous for any organization to communicate more frequently at this time, to keep a positive energy and outlook. “If we allow people to truly self-isolate and shut off communication, we all know that it’s a leading indicator to negative results and depression can set in quickly,” he said. Rather than have employees rely

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autobodynews.com / MAY 2020 AUTOBODY NEWS 55

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on the local news for information, he recommends letting them know where the shop owner stands, what the expectations are at the workplace and the potential impacts. “Communication is huge and transparency is key,” said Evans. “Nothing is worse than a surprise. Talk to them early and communicate with them often. Everyone has a per-

mind. That said, we should segue our conversations from how we are protecting our clients’ vehicles before and after drop-off to prevent the virus to how important a certified repair protects the clients’ safety for the years ahead.” Sean Guthrie, director of operations at Car Crafters in New Mexico—another CCG affiliate—said his family was born and raised in Albuquerque and considers it their home. The company is partnering with local restaurants to serve lunch to their team, which he said helps support the local community and other mom-andpop businesses. “We feel now, more than ever, supporting those who Car Crafters in New Mexico is serving lunch to their team make our home special is critin all six of their shops, which helps support the local ical,” said Guthrie. “United community together, we will get through sonal choice on how they are going to these hard times.” deal with any adversity, and I would “Through this experience, we consider this to be significant adversi- are becoming much better communicators within our shops and the entire ty.” Evans said he is aware of only a repair community,” said Sebastian, handful of businesses that have volun- co-founder of CCG. “In the immeditarily closed since the stay-at-home ate, this is not about profit; it is about orders were announced. Some fa- keeping our team employed, feeling cilities are now instituting split valued and keeping our economy runshifts, where half the staff works ning. We can do it. It starts through in the morning and the remainder consistent, daily, caring communicaworks in the afternoon. tion with our team, our customers, our “Instead of furloughing and laying partners and even the competition. Tooff people, we’re seeing shops finding gether we will emerge better, stronger, a way to share the work as equitably and more connected … in that I am as possible,” said Evans. confident.” He recommends shop owners “At the end of the day, we have and managers stay as calm as possi- to get through it together as an indusble and leave every conversation on try,” said Evans. “We’re all going to a positive note. be facing similar challenges. Let’s “It may not be a positive mes- find a way to share best practices and sage, but let’s leave with a positive protect our industry as a whole.” thought.” Ron Reichen, owner of Preci- 14 COVID-19 Best Practices from sion Paint & Body, a CCG affiliate in the CCG team: Oregon, agrees. 1. Appoint a coronavirus action “I was just discussing how to plan coordinator who will dissemistay positive and see the opportunities nate updated virus information, procurrently with a dealer service man- tocols and policies to everyone in ager,” said Reichen. “More than ever, the business. safety is in the forefront of everyone’s 2. Post CDC, state and/or coun-

ty information regarding the virus to educate teammates. Remember to use bilingual posts as necessary. 3. Source all products and supplies required to properly disinfect objects, buildings and vehicles, including disinfectants, hand sanitizer, bleach, soap, rags, gloves, masks, etc. 4. Be sensitive to those who are in high-risk categories and explore remote work options. 5. Require associates to stay home if they exhibit signs of the virus—fever, cough and respiratory problems—or any contagious illness such as a cold or the flu. 6. Maintain appropriate social distancing at all times. The recommendation is 6 feet. CCG’s Social Distancing in Your Shops flyer has additional information. 7. Require shop uniforms to remain at the workplace and ensure they are cleaned every day. Have employees store personal clothing in their vehicles and encourage hand washing before retrieving them. 8. Expand photo estimating capabilities, which can provide remote work for qualified writers. 9. Institute curbside drop-off

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and delivery and set up a secure area where customers can call or text when they arrive. Use phone, text or email for all discussions, authorizations and approvals. Consider disbanding customer pick-up and home delivery service. CCG provided a sample front door sign explaining the temporary policy. 10. Thoroughly disinfect all vehicles prior to any associate touching or entering them and all vehicles post-repair before delivering them to customers. 11. Eliminate group lunches at the shop, stagger lunch breaks and refrain from having self-serve food and beverages in the front office and break rooms. 12. Show compassion and offer assistance if an employee becomes infected. CCG sample protocol to follow. 13. Research the small business emergency loans available. 14. Share best practices with other body shops and vendor partners. For more information about CCG and to share best practices, email Jeff Ingalls at jingalls@certifiedcg.com.

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autobodynews.com / MAY 2020 AUTOBODY NEWS 57

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First Funding for Small-Business Loans Depleted, Second Round Just Approved by Rick Barrett, Milwaukee Journal Sentinel

A $349 billion coronavirus loan program for small businesses has run out of money less than two weeks after it was launched, the U.S. Small Business Administration said April 16. The Paycheck Protection Program, part of the Coronavirus Aid, Relief and Economic Security Act passed by Congress in late March, is aimed at helping businesses meet payroll. As long as they keep their employees—or rehire those laid off —the loan amount covering eight weeks of paychecks can be forgiven. Wisconsin ranks 10th in the nation in both approved PPP loans, 31,702, and approved dollars, nearly $7.3 billion as of Monday, according to the SBA that’s made the federal program available to businesses with fewer than 500 employees.

Bob Roden combines a field of winter wheat on his family’s farm, Roden Echo Valley LLC, in the West Bend area. They milk 700 cows on any given day and have 1,800 acres of corn, soybeans, winter wheat and alfalfa that they cultivate. Credit: Michael Sears, Milwaukee Journal Sentinel

Nationwide, 70% of small businesses surveyed by the National Federation of Independent Businesses said they at least tried to apply for PPP money. However, many applications could not be processed because of overwhelming demand and now the initial round of funding has dried up. On its website, the SBA now says the agency is unable to accept new applications based on a lack of available funding. The Treasury Department says by law it will not be able to issue new PPP loan approvals due to the lapse, putting a pause on the program that’s become a lifeline for millions of businesses. The loans have been dished out on a first-come, first-served basis. As of Thursday morning, the SBA

said it had approved roughly 1.6 million applications for more than $339 billion in loans since the program was launched April 3. “The money running out has been a big fear that drove a lot of people to apply,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. For some businesses, the program was too good to be true. “There was this understanding that the government was going to help any business with eight weeks of payroll. But when you start working through the details, you have to be operating right now with a full, normal payroll … and with the governor’s shelter-at-home order in Wisconsin, it’s effectively closed businesses like bars and hair salons that don’t have a payroll right now,” Poels said. There have been delays in getting the money out and some banks and credit unions haven’t had the closing documents or systems in place to make the transactions. “I liken it to trying to put a firetruck through a garden hose. You literally had, overnight, thousands of lenders who didn’t have access to the SBA system all trying to get access at once,” Poels said. The Trump administration has asked Congress, which set the program’s original ceiling, for another $250 billion, although that request has stalled in the Senate. Late on April 15, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza issued a statement noting the historic demand for loans and pleading for Congress to pass additional funds for the program. “The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time,” they said. “We urge Congress to appropriate additional funds for the Paycheck Protection Program — a critical and overwhelmingly bipartisan program.” Democrats have demanded that in approving more money for the program, Congress should also pass more funds for hospitals and state and local governments. They also want to bolster food stamp benefits and mandate

some of the funds go to businesses owned by women and minorities. Republicans, on the other hand, have pushed for this money to be approved without any additions or mandates, arguing it’s the only program at risk of evaporating thus far. A breakdown of the PPP loans on SBA’s website showed that, as of Monday, the average loan size was $239,152, and 70% of the loans were for $150,000 and under. Construction companies were approved for the largest share, nearly 14%, or $34 billion. In second place were companies that provide professional, scientific and technical services, with 12.3% or $30.35 billion. Manufacturers were in third place with 12.25%, or $30.32 billion. Thousands of businesses are still awaiting word on their loan applications. “There were a lot of technical problems early on. And there have been communication problems. Some individuals applying for money never knew whether they were approved or not,” Poels said.

As word leaked out this week that the PPP funding was nearly gone, one Wisconsin bank had 24 loan processors working through the night processing as many applications as they could, said Eric Skrum, communications manager for Wisconsin Bankers Association. If your application wasn’t submitted before April 15’s cutoff, don’t throw out the paperwork. “I would hold on to it. Then you’re prepared so that if Congress does in fact move forward and fund the program again, you will be that much further ahead,” Skrum said. Still, for a program of this size rolled out quickly, it’s gone quite well, said Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce. “I think the federal government worked with great speed, but with that comes haste and not a perfect delivery system to get this into the economy,” Sheehy said. He likens the PPP loans to the $1,200 coronavirus checks that should be showing up in the mailboxes of in-

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dividuals soon, and the $600 in weekly federal unemployment money that is supposed to be coming. “Those individual and business lifelines are critically important … The severity and speed of the COVID-19 impact on the economy is unlike anything we’ve seen,” Sheehy said. Some Wisconsin businesses say the application process went smoothly enough for them. “I thought it was amazingly simple,” said Eric Isbister, CEO of GenMet, a metal fabrication company in Mequon that employs 46 people. “When I bought this business 20 years ago, we had an SBA loan with paperwork that was inches thick. This was much quicker,” he said. Keefe John, president and CEO of Ethoplex, a Germantown internet service provider, said he received approval on a PPP loan in less than a week. It helped, he said, that he already had a relationship with an SBA-approved lender. “We just wanted some extra working capital to help us out during uncertain financial times. We will use it to retain our employees and give people sick leave if they get the virus.

I think small businesses need to do everything they can now to survive and remain competitive,” John said. His company currently employs 10 people. “We are actually looking to hire more now. We’re seeking technicians to do customer installations in southeast Wisconsin,” he said. Bob Roden, a dairy farmer from West Bend, said Wednesday he was waiting to hear whether his PPP loan was approved. He and his family milk about 700 cows and grow corn, beans and wheat on 1,800 acres. They have nine employees. Roden said his milk and grain prices have been sinking, with no bottom in sight as coronavirus wreaks havoc on the global economy. “The loan is going to help, but it’s a band aid not the answer,” Roden said.

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‘Capture Rate’ you can look into whether there’s been some change at the dealership. Maybe there’s a new general manager or service writer who is sending work to his buddy’s shop down the street. Similarly, don’t use a generic source as “internet.” Indicate whether that customer found you through your social media, your shop website, an OEM shop locator, etc. Another way to monitor and improve capture rate for direct repair shops, or those who receive “open assignments” through an information provider, is tracking the metric of “assignment received to estimate start date.” This report shows you how much time on average passes between when your shop receives an assignment and when you begin to write the estimate. Often when a shop tells me they need more work, we’ll check out their assignment-to-estimate metric and see it shows it’s taking them five or six days after getting an assignment to get that customer’s estimate

started. Those shops don’t need to be attracting more work; they need to be getting on assignments in a more timely manner. Capture rate will also increase in importance if something leads to an increase in the rate at which consumers are shifting to newer cars with more ADAS. That might seem hard to fathom with the slow-down in car sales we’ve seen. But that decline might at some point prompt some sort of “cash for clunkers” federal incentive to attempt to revive new car sales. The good news in such programs for shops is that newer cars are more likely to be insured and thus repaired after an accident. But it could also push a lot more ADAS-equipped cars onto the roads. That could mean the annual decline in claims could jump to 5 or 7 or 10% a year. So we all need right away to start refocusing on basic best practices, like improving capture rate. Because it’s going to be much more competitive for claims. The water around us is going to start heating up, and we can’t wait too long to respond.

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GEICO, Farmers, Liberty Mutual Join Insurers Giving Breaks to Drivers, Businesses More auto insureds and small businesses are getting a break on their insurance premiums to help them through the coronavirus crisis. Auto insurer GEICO said it will give back approximately $2.5 billion in the form of a 15% credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct. 7. The credit will also apply to any new policies purchased during this period. Farmers Insurance is giving a 20% discount to more than 115,000 of its business insurance customers. Liberty Mutual is refunding 15% of premium for two months to personal auto insurance customers. GEICO’s average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. This means GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and 1 million motorcycle customers will be approximately $2.5 billion. GEICO, the second largest auto insurer in the U.S., joins a growing list of insurers offering discounts to help customers during the coronavirus crisis, a time when insureds are driving less and there are fewer accidents. “This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months,” said GEICO President and CEO Todd Combs. “Our customers have been loyal, and we are committed to doing all we can to help them.” Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30. Beyond that, the company has committed to offering maximum flexibility to policyholders who need special payment options, as well as transitioning nearly all of its associates to work from home to continue providing the 24/7 service it is known for. Business Relief Drivers are not alone in getting some insurance premium relief. With many small businesses struggling as a result of stay-at-home orders, Farmers Insurance announced it will provide relief to more than 115,000 of its business insurance customers. Farmers’ business customers in

the restaurant, office, retail and service sectors across the country will receive a 20% monthly credit on their Business Owners Policy (BOP) for the next two months on their upcoming premium notices.“We understand how challenging running a business can be, particularly in these extraordinary times, and we want our business insurance customers to know Farmers cares and we want to help,” said Sharon Fernandez, president of business insurance for Farmers. This 20% monthly credit to their BOP policies is on top of other measures the insurer has already taken to help business insurance customers, including temporarily pausing policy cancellations due to non-payment, through May 1. Additionally, for all business insurance customers, Farmers is allowing extra time for business insurance customers to pay for their policies. Current GEICO customers can expect to see the discount when they renew. The insurer said customers do not need to take any action to receive this credit. Similarly, Farmers said restaurant, office, retail and service business insurance customers will see the credit effective on their policy automatically. Liberty Mutual Liberty Mutual Insurance is giving personal auto insurance customers a 15% refund on two months of their annual premium. This returns approximately $250 million to Liberty Mutual and Safeco personal auto insurance customers and builds on other customer support, including flexible payment options and delivery coverage expansion for auto policies. “Today, more than ever, we recognize the uncertainty and financial challenges our customers are facing,” said Liberty Mutual Chairman and CEO David Long. Personal auto insurance customers will receive a 15% refund on two months of their annual auto premium as of April 7, pending regulatory approval. The refunds will begin in April and will be issued either by check or in the manner the customer made their most recent payment. The payments will happen automatically. Liberty Mutual has also halted late fee charges and cancellations due to non-payment for personal auto and home customers from March 23

through at least May 22. The Boston-based insurer has also expanded all personal auto policies to cover customers who use their personal vehicles to deliver food and medicine. Standard Safeco personal auto policies typically exclude such coverage. This additional protection is in effect for all personal auto policies in all states for losses occurring from March 16 to May 22, and reported by July 1. AmFam and Allstate Earlier this week, American Family Insurance said it will return approximately $200 million to its auto insurance customers. The premium relief will come in the form of a one-time full payment of $50 per vehicle covered by an American Family personal auto policy. The typical American Family household with auto coverage has two vehicles, meaning the average relief check will be $100. American Family expects to complete the distribution of all 2.3 million checks within 60 days. Also this week, Allstate announced its Allstate, Esurance and Encompass personal auto in-

surance customers will receive a premium credit of 15% of their monthly premium in April and May, totaling more than $600 million. Customers will receive the money back through a credit to their bank account, credit card or Allstate account. Allstate said its telematics data shows that people are driving between 35% and 50% fewer miles in most states. Digital commercial lines insurer Next Insurance is cutting April premiums by 25% for its customers with general liability, professional liability and commercial auto policies. The company’s founder and CEO, Guy Goldstein, said he is challenging other insurers to do the same. This 25% reduction applies to those who pay monthly or paid their full annual premium up front and who purchased coverage before March 1. The discount is subject to state regulatory approval. As of April 4, the company said 38 states have approved it. State Farm and Progressive Corp. have said they are also considering steps to provide premium relief. We thank Insurance Journal for reprint permission.

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autobodynews.com / MAY 2020 AUTOBODY NEWS 61

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Ford Tests Social-Distancing Wearables

Why You Should Keep Advertising During a Major Market Downturn Businesses nationwide are taking a hard hit due to the Covid-19 pandemic, and the print media industry is no exception. Often times during an economic crisis, businesses may end up cutting marketing expenditure in an effort to save money. However, history tells us that cutting advertising budgets during a downturn can actually hurt your business long-term as opposed to helping it. Forbes gives us a list of several different brands who benefitted by maintaining their marketing budget during an economic downturn. Here are their stories. Kellog’s Cereal Brand In the 1920’s, Post Foods Cereal brand was the category leader for ready-to-eat cereal. During the Great Depression, Post cut back on their advertising budget while Kellogg’s Cereal Brand doubled their advertising spend, investing in radio and introducing a new cereal called Rice Krispies, featuring “Snap, Crackle, and Pop.” Kellogg’s profits grew by 30% resulting in the company becoming the

category leader, a position it has maintained to this day. Toyota Corolla The 17-month recession of 19731975 was triggered by the energy crisis. In late 1973, the U.S. government issued its ﬁrst miles-pergallon report in which Toyota Corolla was second to Honda Civic in fuel eﬃciency. Since Toyota was experiencing strong sales, when the economic downturn hit, the temptation was to drop their ad budget, which they resisted. By adhering to its long-term strategy, Toyota surpassed Volkswagen as a top imported carmaker in the U.S. by 1976. Taco Bell and Pizza Hut In the 1990-1991 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%. Amazon

Amazon sales grew by 28% in 2009 during the “great recession.” The tech company continued to innovate with new products during the slumping economy, most notably with new Kindle products which helped to grow market share. As a result, in the minds of consumers, Amazon became an innovative company by introducing a lower cost alternative to cash-strapped consumers. While the temptation now may be to cut back on advertising, you may want to reconsider. Instead, redirect your brands’ message to match the current economic climate but be careful with the type of message you put out there, especially during these fragile times. Covid-19 has impacted many individuals on a personal level, and you don’t want to risk coming oﬀ as insensitive or exploitative. Whatever your message may be, it’s best to keep a positive, inspirational and helpful tone.

by Yoel Minkoff, Seeking Alpha

Ford is experimenting with wristbands that vibrate when employees come within 6 ft. of each other as part of a broader array of new safety protocols.

The devices could be deployed more widely once the carmaker reopens its idled manufacturing plants. Ford is also expected to subject all workers entering a facility to a thermal-imaging scan and will provide staﬀ with masks and, in some cases, plastic face shields. We thank Seeking Alpha for reprint permission.

Sources: Forbes – When A Recession Comes, Don’t Stop Advertising, By Brad Adgate

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Used-Car Sales: Tracking the Good, the Bad & the Options by Joe Overby, Auto Remarketing

Based on auto industry analyses, a rough March for used-vehicle sales appears to have spilled over into April, and as PureCars says in its latest COVID-19 report, dealers are “facing obvious headwinds” in preowned. But, some silver linings: the dive in used- and new-car sales appear to have hit its trough, according to Cox Automotive. And there are dealers who are realizing “some success” with strategies to shore up their used-car sales, as PureCars outlines in its report. First outlining the challenges, PureCars said in the report, “Aggressive APR offers mean used payments can be higher than new, RO data suggests shoppers are fixing versus trading up or out, auction prices continue to fall and wholesale markets have all but stopped operating as a way to dispose of depreciating used assets.” But there are some remedies dealers are finding that work. PureCars emphasizes some used-vehicle shoppers “are sitting on the sidelines,” so

“aggressive” strategies in pre-owned might not be the best course at the moment. “However, some dealers are gamblers and we’ve seen some success with the following tactics; low-funnel search awareness, social budget reallocations to move ‘up funnel’ to reach broader in-market shoppers to take advantage of falling CPM rates, overlay ORACLE dataset to hyper-target local in-market audiences, aggressively (re)pricing vehicles to drive intent and piggy-backing on OEM CPO program benefits where available,” PureCars said. Here’s how the numbers have shaken out recently in pre-owned. Franchised dealers had a 24% drop in used-car retail sales the week ending April 5, according to J.D. Power Valuation Services, following 32% sequential and nearly 40% year-over-year declines in March. Of the 25 states that provide vehicle sales data to Cross-Sell Interactive (part of Dominion Dealer Solutions), only one shown in a state-by-state comparison graph—

North Dakota, which was up 10%— showed year-over-year growth in combined new- and used-vehicle sales in March. The heaviest decline shown in Cross-Sell’s data set was in Missouri, where combined new and used sales were down 52%. New York was next at 46%. Several others, like Texas (down 28%), Michigan (27%), Indiana (25%) and Colorado (25%), had declines near 30%. Overall, new- and used-vehicle sales fell 19.6% year-over-year, among states in Cross-Sell’s data set. In the 25 states that report data to Cross-Sell, there were 1.91 million used-vehicle sales for March, which was up 9.1% from the 1.75 million used sales in February. However, the picture changes when looking at year-over-year comparisons. Used-car sales in the 25 states were down 21.1% from the 2.42 million sold in March 2019. Total used-vehicle sales in March fell 18.4% year-over-year, according to Cox Automotive, which

estimated the used-car SAAR for the month at 32 million. It was 39.2 million in March 2019 and 39.8 million in February, Cox said. For retail used (which Cox Automotive defines as sales from either franchised dealers or independent dealers, excluding private-party sales), the SAAR was approximately 17.3 million for March. It was 20.6 million a year ago and 21.2 million in February. In addition to the 18% drop in total used sales for March, Cox Automotive also observed a 38% decline in new-car sales, with the downturn in both picking up as the month went along. A bit of a silver lining though, as Cox Automotive said in an analysis: “The decline in sales bottomed last week, as we’ve seen seven consecutive days of improvement in year-over-year declines of both new and used through Wednesday, April 8.” We thank Auto Remarketing for reprint permission.

www.autobodynews.com

New COVID-19 Programs Focus on Service Departments by Auto Remarketing staff

Two new auto service programs are now available to help dealers during the COVID-19 pandemic, one providing data on closed repair order volume, which could help new-car dealerships understand and respond to changes in demand for vehicle maintenance and repairs. DriveSure is a customer retention product designed for new car dealerships, and it has compiled data on closed repair order volume. The data is a seven-day moving average of the weekly number of closed repair orders per dealership. It is a compilation of nearly 100 U.S. new-car dealerships. Updated daily, the data is meant to help dealership general managers and service directors understand rapid market changes. DriveSure says that on average since late February, reporting dealerships have shown a 40% drop in closed repair orders. “This is a time of uncertainty for all of us,” DriveSure President Bill Springer said in a news release. “We are sharing this aggregated information to help dealerships get some clear answers and be able to make decisions based on trends they

are seeing relative to other dealerships throughout the United States," Springer continued. DriveSure will also offer and curate tips for minimizing the long-term negative effects on fixed operations. “We know dealerships will be relying heavily on service revenue as vehicle sales sharply decline,” Springer said. “This information will give decision makers an opportunity to stay ahead of changes to service demand as much as they can and come out strong on the other side.” In other news, CarAdvise, which describes itself as “the nation’s largest consumer fleet,” has launched No Contact Car Care, an expansion of its digital technology in response to COVID-19. CarAdvise designed No Contact Car Care to protect people still relying on their vehicle for essential goods and services. The company said many of its customers are gig economy workers such as shoppers and others in areas such as rideshare and delivery. “Their current role is absolutely critical during this pandemic as they have been instrumental in maintaining the supply chain and supporting the economy,” CarShare writes.

The company describes No Contact Car Care as an automated, digital process. During that process, the user schedules, approves services and pays all from his or her smartphone. The process requires no human interaction. CarAdvise says with No Contact Car Care, consumers and automotive service center employees can maintain a high level of safety and operate under governmental distinction as an essential business. The company features a network of more than 20,000 shops nationwide. It is working with each national brand, franchise location and independent shop to adopt and become certified in No Contact Car Care. CarAdvise says it designed the effort to exceed CDC and local safety guidelines “because it removes human interaction entirely.” The company says No Contact Car Care is a fully digitized avenue that promotes social distancing beyond the recommended 6 ft. CarAdvise customers take the following steps: Schedule service online through CarAdvise. Drop keys at the counter or dropbox at the shop. Electronically approve and pay for services. Pick up the vehicle upon completion of service, with no direct

human interaction. CarAdvise electronically stores all receipts in the CarAdvise dashboard. That requires no signing or receiving a paper receipt. “Now is a time for not just every company in the automotive industry to unite, but also for every citizen in the United States to do their part to ensure we do everything we can to stop the spread of this deadly virus,” said CarAdvise founder and CEO Greg Tepas. “No Contact Car Care is our way of helping protect those who are continuing to provide crucial supply chain services to every American, as well as those who help keep those drivers on the road by servicing their vehicles," Tepas continued. CarAdvise has also pledged to donate $1 for every No Contact Car Care service performed now until Dec. 31. That is an effort to help COVID-19 victims. The company will also allocate the funding toward the Center for Disaster Philanthropy and the World Health Organization’s COVID-19 Response Fund. CarAdvise said it has asked additional industry leaders to join in and donate to the cause. We thank Auto Remarketing for reprint permission.

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