May 2022 Northeast Edition by Autobody News

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Massachusetts Right to Repair Court Case Decision Delayed Once Again by Camille Sheehan, Auto Care Association

U.S. District Judge Douglas Woodlock issued a notice April 15 informing of another delay to provide a decision on the Right to Repair court case in Massachusetts. Citing “the resurgence of a demanding criminal trial schedule, resumption of long delayed in-court non-trial proceedings coupled with insistent writing responsibilities in other matters,” Woodlock extended the date to resolve the matter and invited the defendant, the Commonwealth of Massachusetts, to “make a

Further Modified Stipulation to adjust the relevant date necessary for an appropriate period of consideration in support of a fully satisfactory opinion until no later than July 2, 2022, to bring this case to an appealable final judgement.” The judge previously said he would issue a final judgment no later than April 15. Approved by Massachusetts voters Nov. 3, 2020, by an overwhelming 75-25 percent margin, the new Right to Repair law would require manufacturers to provide vehicle owners See Right to Repair, Page 14

U.S. Rep. Warren Davidson of Ohio Co-Sponsors Federal REPAIR Act by Camille Sheehan, Auto Care Association

The Auto Care Association, Automotive Aftermarket Suppliers Association (AASA), CAR (Consumer Access to Repair) Coalition and Specialty Equipment Market Association (SEMA) applaud U.S. Rep. Warren Davidson, R-OH, for co-sponsoring the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act. Introduced in February by U.S. Rep. Bobby Rush, D-IL, to provide consumers rights to their vehicle’s repair and maintenance data and safeguard a free and fair repair market, the

Credit: wirestock

REPAIR Act (H.R. 6570) is the only federal right to repair legislation that addresses this critical need in the automotive industry. Davidson is an automotive industry alumnus who ran his family

Vol. 13 / Issue 2 / May 2022

Massachusetts Shop Owners ‘Cautiously Optimistic’ as Auto Body Commission Conducts Final Meeting by Aryan Rai, Daily Hampshire Gazette

Representatives of the Massachusetts auto body and insurance industries were asked to recommend “alternative solutions” as a chance to break the deadlock on the issue of low labor rates during the final meeting conducted by the Special Commission on Auto Body Labor Rates. Members met at the Assabet Valley Regional Technical High School, a vocational school in Marlborough, MA, to assess if the low labor rates are dissuading young technicians from entering the trade.

Massachusetts State House. Credit: King of Hearts/Wikipedia

“The site visit emphasizes how important it is that we do something for this trade that seems to be dying,” said Rep. Bruce Ayers, D-Quincy. “Compared to 15 to 20 years ago, See Cautiously Optimistic, Page 22

Bad Driving Has Americans on Edge The roadways changed drastically at the onset of the pandemic, even with fewer drivers on the road, traffic deaths have soared throughout the pandemic. According to the National Highway Traffic Safety Administration, despite miles driven declining by 11%, there was a 6.8% increase in fatalities from motor vehicle crashes in 2020.

See Federal REPAIR Act, Page 19

The problem continued to get worse as people returned to the roadways with fatalities increasing 12% through the first nine months of 2021. Despite a decrease in miles driven, accidents are likely to be more severe—even fatal—from reckless driving behaviors like

speeding or not wearing a seat belt. As we enter Distracted Driving Awareness Month, a new study from Nationwide found drivers are practicing poor driving behavior despite fears of others driving dangerously. Drivers say the road is considerably more dangerous today than before the pandemic, with half saying that driving is more stressful. Reckless behavior behind the wheel is happening everywhere and drivers are taking notice of other people’s wild actions. Compared to 2020: 81% think drivers are more aggressive 79% think drivers drive faster 76% think drivers are more reckless Even more frightening, more than a third of drivers (34%) believe it is safe to hold your phone while driving—whether that is to make a call, send a text or use navigation. This feeling is more prevalent in younger drivers: • 39% of Gen Z and Millennials think it’s safe to be using the phone See Bad Driving, Page 20

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REGIONAL

Bad Driving Has Americans on Edge �� 1

5 Indicted in NJ for Allegedly Trafficking

Biden’s FY 2023 Budget Proposal Includes

Stolen High-End Vehicles Worth

Investments in EVs, ADAS, Autonomous

Approximately $600,000 �� 28

Vehicles �� 4

AASP/NJ Presents Second Annual Young Technician Awards �� 14 Brooklyn’s Bay Ridge Honda Wins Honda Masters Circle Award �� 15 Car Subscription Platform FINN to Expand U.S. Presence �� 8 Carvana Expands to Bangor, ME �� 14 Collision Repair Industry Stars Shine Bright at NORTHEAST 2022 �� 18 Massachusetts Auto Body Repair Industry Makes Final Push for Fair Reimbursement Bill �� 10 Massachusetts Right to Repair Court Case Decision Delayed Once Again �� 1 Massachusetts Shop Owners ‘Cautiously Optimistic’ as Auto Body Commission Conducts Final Meeting �� 1 New York Issues Misleading Message as Exhaust Noise Legislation Takes Effect �� 8 NORTHEAST 2022 Delivers Crowded Show Floor, Full Classes �� 6 PA Bill Uses Auto Body Shops to Help ID Drivers Involved in Hit-and-Run Crashes �� 12 Tarrytown Honda in NY Honored with 2021 Honda President’s Award �� 15

Branch Launches 6 New States �� 18 Camaro Production Stopped �� 27 CCC Launches Integration with asTech �� 43 CDK Global Supports ASE Foundation �� 66 Chevrolet Resumes Bolt Production Following Battery Issues �� 54 Chrysler Pacifica Hybrid Fire Risk Causes Class Action Lawsuit �� 62 Consolidation Coach Guides Auto Body Shop Owners Through Life-Changing Decisions �� 24 Dingle Family Continues Journey with Their Recycled Ride �� 56 EagleMMS Software Soars to the Top of Auto Body Shops’ To-Do Lists �� 42 EV Operating Costs Appear Much More Appealing as Gas Prices Soar: Report �� 60 Farmers Insurance Wins NABC Award �� 64 GM to Expedite Hummer EV Production as Reservations Increase to 65,000 �� 65 Honda to Launch 30 EVs Globally by 2030, Including 2 Sports Cars �� 58 Improved Semiconductor Supply Drives Truck Market Share Gains for GM �� 62 New Standardized Independent Adjuster Competency Exam Announced �� 32 Porsche to Replace 1,000-Plus Cars Lost

COLUMNISTS Anderson - Tips to Help Auto Body Shops Get Paid for Crucial Step of Destructive Weld Testing �� 36 Yoswick - Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics �� 44

on Sunken Cargo Ship �� 65 Repairify Completes Record Scans �� 19 See The Tesla Cybertruck’s Rear-Wheel Steering Feature in Action �� 66 Supply Chain Issues and Repair Complexity Major Concerns in 2022 �� 48 Tesla Only Major Automaker to Show Growth Year-Over-Year �� 30

NATIONAL ‘Who Pays for What?’ Survey Shows More Auto Body Shops Billing, Being Paid for Masking During Priming �� 54 1Collision, Auto Techcelerators Partner �� 64 2021 Ford F-150 Trucks May Suddenly Shift into Neutral �� 57 Ally Survey Reinforces Appeal of Used Vehicles Among Younger Buyers �� 64 ASE Training Conference Set �� 20

U.S. Rep. Warren Davidson of Ohio Co-Sponsors Federal REPAIR Act �� 1 USDOT Announces New Vehicle Fuel Economy Standards for Model Year 2024-2026 �� 58 Vehicle Connectivity Surging, but Consumer Paid Subscription Share in Sharp Decline �� 4 WIN to Recognize 2022 Most Influential Women Award Winners During Hybrid Educational Conference �� 16

INDEX OF ADVERTISERS

CONTENTS

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (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 Permissions Editor: 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. ©2022 Adamantine Media LLC.

Acura of Westchester �� 54

Liberty Kia �� 28

American Icon Automotive Finishes �� 14

LKQ Corporation �� 23

Audi Devon �� 28

Long Automotive Group �� 22

Audi Wholesale Parts Dealers �� 63

Matrix Edge �� 13

Axalta Coating Systems �� 7

Mazda Wholesale Parts Dealers �� 64

Biener Audi �� 15

Mercedes-Benz of Atlantic City �� 31

Biener Ford �� 15

Mercedes-Benz of Fort Washington �� 31

BMW Wholesale Parts Dealers �� 50-51

Mercedes-Benz of Paramus �� 26

Brown-Daub Kia �� 20

Mercedes-Benz of West Chester �� 18

Cadillac of Mahwah �� 43

Mercedes-Benz of Wilmington �� 18

Car-O-Liner �� 11

Mercedes-Benz Wholesale Parts Dealers �� 61

Central Avenue Chrysler-Jeep-Dodge-Ram �� 29

MINI Wholesale Parts Dealers �� 48

Certified Automotive Parts Association �� 24

MOPAR Wholesale Parts Dealers �� 38-39

Circle BMW �� 36

New Holland Ford �� 57

Classifieds �� 66

New Holland Toyota �� 60

Colonial Automotive Group �� 41

Nissan/Infiniti Wholesale Parts Dealers �� 64

Courtesy Mitsubishi �� 36

Northstar Kia �� 40

DePaula Chevrolet-Ford �� 27

Nucar �� 37

Dominion Sure Seal, Ltd �� 6

Open Road Acura of East Brunswick �� 44

Eagle Abrasives �� 21

Open Road Chevrolet �� 8

Eastchester Chrysler-Jeep-Dodge �� 32

Ourisman Chevrolet �� 32

Empire Auto Parts �� 24

Packer Norris Parts �� 47

Equalizer Auto Glass Tools �� 12

Porsche Wholesale Parts Dealers �� 52

Ford Wholesale Parts Dealers �� 59

PPG �� 9

Franklin Sussex Automall �� 16

Rafferty Subaru �� 60

GM Wholesale Parts Dealers �� 53

Rockland Nissan �� 40

Grieco Toyota �� 20

SATA Dan-Am Company �� 2

Hoffman Auto Group �� 45

Schultz Ford �� 30

Honda-Acura Wholesale Parts Dealers � 33, 34-35

Spanesi Americas �� 5

Hyundai Wholesale Parts Dealers �� 65

Steck Manufacturing Company �� 12

Industrial Finishes and Systems �� 25

Subaru Wholesale Parts Dealers �� 56

Infiniti of Norwood �� 42

Toyota Wholesale Parts Dealers �� 65

Jaguar Land Rover Cherry Hill �� 49

USI of North America �� 68

Kelly Jeep-Chrysler �� 10

Volkswagen Wholesale Parts Dealers �� 67

Kia Motors Wholesale Parts Dealers �� 55

White Plains Volkswagen �� 60

Kia of Attleboro �� 36

Wrenchers �� 17

Kia of Coatesville �� 46

Yonkers Kia �� 44

Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Kundert Volvo �� 19

autobodynews.com / MAY 2022 AUTOBODY NEWS 3

Biden’s FY 2023 Budget Proposal Includes Investments in EVs, ADAS, Autonomous Vehicles President Joe Biden released his $5.8 trillion budget proposal for fiscal year 2023, which builds on the investments made in the Infrastructure Investment and Jobs Act, passed last year, by allocating $105 billion to the U.S. Department of Transportation.

Included in the budget are important projects for independent vehicle repair shops related to vehicle safety, autonomous vehicles, electric vehicle deployment and emissions reductions. The budget includes $49.8 million for the National High-

“From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.” — Pete Buttigieg “The investments in the presdent’s budget make traveling safer, easier, cleaner and more affordable for the American people,” said U.S. Transportation Secretary Pete Buttigieg. “From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.”

way Traffic Safety Administration’s (NHTSA) Vehicle Safety Research program, which studies vehicle improvements and other technical advances that can better protect people in a crash and reduce the likelihood of crashes. Portions of the $49.8 million will go toward Advanced Driver Assistance Systems (ADAS) and Automated Driving Systems

(ADS) research that facilitates innovation and development of new tests, tools and procedures to properly evaluate the safety of new technologies surrounding highly and fully automated vehicles. In the proposal, the Federal Highway Administration (FHWA) is allocated $1 billion in advance appropriations to work with the newly formed Joint Office of Energy and Transportation to implement the new National Electric Vehicle Infrastructure (NEVI) Formula Program. This program will assist states in creating a network of convenient, affordable, reliable and equitable electric vehicle charging stations along the Interstate Highway System to build designated Alternative Fuel Corridors. The FHWA budget also includes $400 million to implement the new Charging and Fueling Infrastructure Grants Program, designed to further increase electric vehicle charging access in locations throughout the country through competitive grants, and

$1.3 billion for the Carbon Reduction Program, which will provide formula grants to states to reduce transportation emissions. The budget proposal aligns with Biden’s climate and energy goals and includes $27.5 million in funding for the Corporate Average Fuel Economy (CAFE) program and $14.5 million for the New Car Assessment Program (NCAP). In August 2021, NHTSA responded to Biden’s Executive Order on Protecting Public Health and the Environment by amending the CAFE standards for vehicles model year 2024-2026 to require increased stringency for fuel efficiency standards. The release of the president’s budget proposal is the kickoff for the months long budget process. Lawmakers can now begin crafting the legislation that will make up the 2023 federal budget, using Biden’s proposal to guide them in the administration’s priorities. Source: Automotive Service Association

Vehicle Connectivity Surging, but Consumer Paid Subscription Share in Sharp Decline According to global technology intelligence firm ABI Research, connectivity will be available in more than half of new vehicles sold in 2022 and more than 70% in 2028.

Carmakers are committed to connectivity because of its various benefits, including fleet management, reduction of warrant costs, convenient electric vehicle (EV) ownership and over-the-air (OTA) updates. However, they still have not found an effective strategy to recoup the connectivity and airtime costs. Connected services adoption is low, especially among lower-tier vehicles, and the increase in free trial periods means the ratio of paid subscriptions will contract by 20% between 2021 and 2028. Despite moving to become ubiquitous, vehicle connectivity is still not a significant revenue source.

“Due to the prevalence of high traffic phone data plans, end consumers have little motivation to pay for connectivity and rarely renew subscriptions after the free trial period, which carmakers are constantly extending,” said Maite Bezerra, smart mobility and automotive research analyst at ABI Research. “This is especially true for infotainment services that compete with free phone mirroring. This reality signals that it will be challenging for carmakers such as Stellantis, Ford and GM to achieve their recently announced goals to generate $20 billion in software and services revenues annually by 2030, at least 13 times what they generate today.” From premium to volume cars, nearly all carmakers are committed to deploying software-defined vehicle platforms and betting on revenues from delivering software-enabled services and features OTA. That requires the establishment of a revenue-generating consumer touchpoint where these new services will be bought or updated, essentially relying on user engage-

4 MAY 2022 AUTOBODY NEWS / autobodynews.com

ment with embedded infotainment systems rather than mirroring through CarPlay or Android Auto.

dle. ABI Research expects more than 70% of active infotainment subscriptions to be on a free trial or

“Due to the prevalence of high traffic phone data plans, end consumers have little motivation to pay for connectivity and rarely renew subscriptions after the free trial period, which carmakers are constantly extending,” — Maite Bezerra “However, most subscription revenues presently derive from essential telematics and remote services rather than infotainment,” Bezerra pointed out. Connected services subscriptions are being extended to drive higher customer engagement. The average free trial period in the U.S. is increasing from three to six months, in Europe from one to three years (e.g., Polestar), and in China, many carmakers offer free for life connectivity (e.g., NIO, SAIC-GM). The drawback of such a strategy is the ratio of subscriptions paid by the final consumers will dwin-

free-for-life arrangement in 2022. Further adding to the connected vehicle monetization challenge, software-defined vehicle platforms will considerably increase monthly data consumption—from 400500 MB to up to 2-20 GB—and connectivity costs, which neither carmakers nor end consumers have been willing to pay so far. “Nevertheless, EVs could be the panacea for low connected services adoption by final users as they significantly improve ownership convenience,” concluded Bezerra. Source: ABI Research

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NORTHEAST 2022 Delivers Crowded Show Floor, Full Classes On March 18-20, more than 3,000 industry professionals flocked to the Meadowlands Exposition Center in Secaucus, NJ, for the 45th Annual NORTHEAST® Automotive Services Show. The three-day event boasted a full slate of educational opportunities on the industry’s most relevant topics as well as a chance to explore some of the latest and greatest tools and equipment on the trade show floor. “NORTHEAST 2022 was fantastic!” said AASP/NJ President Jerry McNee. “There was an outstanding turnout at the show, and it was exciting to see the industry gather together again. The educational slate offered great insights for automotive and collision professionals ready to take the next step to improving their businesses, and high-quality attendees interested in making purchases filled the trade show floor. Everybody was happy to be back at NORTHEAST, and I received a lot of favorable feedback from attendees and vendors.” Multiple exhibitors confirm McNee’s assessment.

“We weren’t sure what to expect this year,” said Lyn Tetreau, president and CEO of Lift King Products. “But we wanted to support NORTHEAST because we love this show. We got steady foot traffic on Friday with ticket sales and a lot of inquiries. On Saturday, we were ready to rock and roll, and we started the day out with big deal after big deal. Before we were halfway through Saturday, we knew we had a successful show. “We weren’t expecting much on Sunday, but we made a bunch of deals on what’s historically been the slowest day of the show, too! We met with amazing people who we believe we’re going to have a lot of future relationships with, and that’s what it’s all about: future connections,” Tetreau said. “So, if anyone asks if Lift King will be here next year, the answer is absolutely!” “My impression of the show was very positive; the aisles were busy, and it felt like a return to the days before COVID,” said Simone Mazzon, sales manager at USI of North America. “We hoped that NORTH-

6 MAY 2022 AUTOBODY NEWS / autobodynews.com

EAST 2022 would be busy—and we weren’t disappointed,” said Nick Mattera, co-owner of Innovative Solutions & Technology. “The weekend flew by because we were talking to so many people during the whole show.” “Not only did we see good foot traffic on the floor, the industry professionals in attendance were incredibly engaged,” AkzoNobel Marketing Communications Manager Jen Poliski said. “I’m very excited for NORTHEAST 2023, which I anticipate being even better and more populated as people gain confidence returning to normality.” “Our seminars were full and the floor was crowded, on par with pre-pandemic numbers, which was really amazing to see,” said Thomas Greco, AASP/NJ secretary and president of Thomas Greco Publishing, event managers for NORTHEAST. “It really made the last two and a half years—spent postponing and waiting and wondering when the people would be ready to come back out—all worthwhile. “NORTHEAST 2022 was a total group effort. We had so many

vendors, presenters and even industry professionals who couldn’t get here but believe that working together helps everyone succeed, step up and promote and support the show. We have over 3,000 reasons to thank them all.” “We’re gearing up to come back even bigger next year,” McNee predicts. “Mark your calendars now!” AASP/NJ is already hard at work planning for NORTHEAST 2023, scheduled for March 17-19, 2023, at the Meadowlands Exposition Center. Visit aaspnjnortheast. com for updates on next year’s event as they become available. For more information on AASP/NJ, visit aaspnj.org. Source: AASP/NJ

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Car Subscription Platform FINN to Expand U.S. Presence FINN, Europe’s fastest-growing car subscription platform, announced March 24 it will expand its offering to Western Pennsylvania, Massachusetts, Connecticut and Washington D.C., following its initial launch in the U.S. in December. The company initially launched in Eastern Pennsylvania and New Jersey at the end of 2021, and will continue its expansion to additional markets throughout 2022. FINN is transforming the new vehicle experience through its innovative subscription model, making it fun, sustainable and convenient to change vehicles every six or 12 months. Further, FINN uniquely provides customers the ability to subscribe to a broad selection of new cars with no hidden fees---the price online includes insurance, maintenance, roadside assistance and various term options. Through FINN’s car subscription service, customers will have access to different car brands including but not limited to Tesla, Jeep, Chevrolet and Nissan.

“Just months after FINN launched in the United States, we are experiencing significant demand for our services and are excited to bring our offerings to more Americans seeking freedom to choose a vehicle that fits their changing lifestyle,” said Max-Josef Meier, CEO and founder of FINN. “We developed FINN as a way to bring the ease of online shopping to the car industry and we are committed to providing the most convenient new car experience for our users; this expansion will help do just that.” Using FINN’s easy-to-use website or its iOS- and Android-compatible apps, customers can filter, browse and order their preferred make and model—all in a matter of minutes. Users can expect to receive their vehicles within 72 hours and delivery is free of charge for all subscriptions. FINN’s U.S. expansion comes on the heels of a successful year in Germany, as the mobility platform reached 10,000 subscriptions. Source: FINN

New York Issues Misleading Message as Exhaust Noise Legislation Takes Effect by SEMA Washington, D.C., Staff

In advance of a change in New York’s exhaust noise law taking effect April 1, a notification letter signed by the New York DMV commissioner was sent to automotive retailers and vehicle inspectors in the state. Unfortunately, the letter is misleading and contains overly broad statements about what the new law does. SEMA is actively working with the DMV to clarify its guidance and address the industry’s concerns. These are the facts: in 2021, the New York state legislature enacted a bill into law—the SLEEP Act—aiming to crack down on excessively loud vehicles. The new law doesn’t change the state’s existing exhaust noise laws, which require every motor vehicle to be equipped with a muffler in working condition and prohibits the installation of bypasses, cutouts or similar devices. Comparable language is used by states across the country and is designed

to prevent motorists from deleting their muffler and/or catalytic converter. The new law simply allows police to write larger fines for those breaking existing law. Thanks to SEMA’s efforts, the initial bill was amended to remove the unreasonable provisions prior to passage. The amended bill was then approved by Gov. Kathy Hochul in late October, with the law going into effect on April 1. SEMA is working to ensure there is no confusion about the provisions of the new law and more information is available on the SEMA Action Network’s “Fact vs. Fiction” webpage. For further details, contact Christian Robinson at stateleg@sema. org. Source: SEMA

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Massachusetts Auto Body Repair Industry Makes Final Push for Fair Reimbursement Bill by Aryan Rai, Daily Hampshire Gazette

Members of the Massachusetts auto body repair industry highlighted the consequences of low reimbursement rates set by insurers and urged lawmakers at a recent hearing to report favorably on the bill that intends to fix the issue. “It kind of surprises me that the labor rate is so out of whack,” said Rep. James Hawkins, D-Attleboro,

doesn’t make for a good trade.” Auto body shops have been advocating for an increase in the rate at which they are reimbursed by insurance companies, a rate which has been stagnant for decades while the cost of doing business has surged exponentially. “Thirty-five years ago, I was at the doorstep of the State House with my father. I was 12 at the time. We were looking to increase the labor

“The rising costs in the past few decades are an indicator that the rates must be adjusted to keep up. In the same way that the insurance carriers have adjusted their premiums with the rising cost of doing business,” — Aaron Schulenburg who is also the sponsor of the bill. “This is a very technical field, and if we pay just $40 an hour, considering the overhead costs that have just ballooned recently, that leaves very little room for these shops to pay minimum wage to their workers who are doing very technical work. It just

rate at that time,” said Elias Akiki, president of the Akiki Auto Group, based in Hyde Park, MA. “Thirty-five years later, here we are, still looking to increase what we are paid.” Shop owners, technical instructors and auto body industry organi-

zations testified before the Special Commission on Auto Body Labor Rates about their experiences with insurance companies that they said manipulate the market and underpay shops. Owners voiced their frustration at the fact that in a sector where vehicles have become more technologically advanced and require more sophisticated work, labor rates make it is impossible to function. Add in the high cost of living in Massachusetts and owners are struggling to make ends meet.

are more shops than work in Massachusetts. “The current trends we are seeing do not indicate that. We have seen an increase in the number of vehicles registered in Massachusetts, and we have seen an increase in the length of repair,” he said. And even if what companies are claiming was the case, a rate increase would still be needed. “The rising costs in the past few decades are an indicator that the rates must be adjusted to keep up. In the same way that the insurance carriers have adjusted their premiums with the rising cost of doing business,” said Schulenburg. The special commission, upon the request of business owners, plans an in-person meeting soon at a vocational school, to speak with enrolled trainees looking to get into the trade. With the testimony completed, the commission will issue a report before the June 30 deadline.

“Large organizations in the other areas of the country are going through similar challenges, and they have been routinely seeing an increase in rates, and are even demanding for more,” said Aaron Schulenburg, executive director at the Society of Collision Repair Specialists, which represents auto body shops across the country. “Now think about how that extrapolates to businesses in Massachusetts, who have not seen any increases in decades.” Schulenburg also rejected insurance company suggestions that there

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autobodynews.com / MAY 2022 AUTOBODY NEWS 11

PA Bill Uses Auto Body Shops to Help ID Drivers Involved in Hit-and-Run Crashes by Jan Murphy, Penn Live

Auto repair shops in Pennsylvania could soon play a role in helping track down drivers of hit-and-run crashes that leave a victim seriously injured or dead. The bill, sponsored by Sen. Anthony Williams, D-Philadelphia, calls for the creation of an alert system to notify repair shops to be on the lookout for vehicles involved in a hit and run crash involving a serious injury or death within a certain time period after the incident occurred. The Pennsylvania Senate Law & Justice Committee on April 5 approved the bill by an 11-0 vote. It now is in a position to be considered by the full Senate. A hit and run crash that took the life of 8-year-old Jayanna Powell in 2016 when she was walking home from school in Philadelphia inspired her family to ask Williams to introduce this bill, the senator said. “Jay alerts,” as Williams said they would be called to pay tribute to the girl, would contain a description of a vehicle that has fled the

scene and be distributed to repair shops, which would be required to register with PennDOT. “Repair shops will be put on notice that if someone comes within a certain period of time with damages to their car that were alerted by the state police, … that information would be advanced to the state police and then they would investigate those cars,” Williams said. If a shop is discovered as failing to report a vehicle matching the description of a vehicle in the alert system, the owner or operator of the shop could be charged with a third-degree misdemeanor. Many repair shops already work with local law enforcement through an informal arrangement, said Amanda Henry, executive director of the Perry County-based Alliance of Automotive Service Providers of Pennsylvania, which represents collision, towing and repair shops. But what is concerning about the bill is the severity of the penalty that the bill proposes for failure to report. She said the owner or operator of a shop may not always be on

site at their shop. If in their absence an employee does a repair without checking the alert system, “the owner could be charged with a pretty hefty deal.” According to Williams’ bill, the American Automobile Association reports hit and run crashes result in 1,500 deaths in the U.S. annually. It further points out that leaving the scene of an accident where the victim suffers serious bodily injury or death is a felony offense. In Jayanna’s case, the driver of the vehicle that struck her had an accomplice take his vehicle to a repair facility 20 miles away from Philadelphia to evade detection, according to Williams’ memo about the bill. The owner of that repair shop saw a news report about a reward being offered for information leading to the driver’s arrest, which led to police tracking him down, it states. Williams said state police have some concerns about the cost and technology to implement such a notification system but he thinks both can be overcome.

The Pennsylvania State Police and PennDOT offered a statement about the bill, saying they “appreciate the intent behind Senate Bill 24. While we will continue to review the legislation, there are initial concerns that inserting a new alert in addition to the Amber Alert and Missing and Endangered Person Alert systems [which Pennsylvania is nationally recognized for implementing] could impact their overall effectiveness.” Law & Justice Committee Chairman Mike Regan, R-Cumberland/York counties, said he sees the measure as being of assistance to law enforcement. “I’ve seen it in my last law enforcement career where someone gets involved in an illegal hit and run and they try to go to a body shop and do a quick cash deal,” said Regan, a former U.S. marshal. “This kind of holds those body shops to account and I think ultimately will be a very good thing for our law enforcement community.”

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Right to Repair both access and control of the diagnostic and repair data generated by their vehicles. Subsequent to the vote, the car company trade group, Alliance for Automotive Innovation, filed a lawsuit, Alliance for Automotive Innovation vs. Maura Healey, Attorney General of the Commonwealth of Massachusetts, in November 2020, asking the court to overturn the data access ballot question based on a host of allegations including cybersecurity concerns, insufficient time to comply with the new data access requirements and their contention the ballot initiative is preempted by federal law. The Auto Care Association continues to fight for the consumers right to choose where they get their vehicle maintained and repaired through both state and federal legislation. Source: Auto Care Association www.autobodynews.com

AASP/NJ Presents Second Annual Young Technician Awards The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) presented the Second Annual Young Technician Awards to two promising young technicians March 19 during the 2022 NORTHEAST® Automotive Services Show. Thanks to a generous $5,000 grant from the Utica National Group Foundation, AASP/NJ supplied John Carson, of Parkway Auto Body in Nutley, NJ, and Nick Kiernan, of Compact Kars in Clarksburg, NJ, with tool carts overflowing with tools and equipment to help them get their start in the collision repair industry. The annual award is given to up-and-coming technicians employed by an AASP/NJ member shop who have been working in the industry for less than five years. AASP/NJ received many applicants this year and decided to grant the award to two deserving young professionals. “We had six finalists, and we narrowed it down to two, but it was really difficult to make a decision,” said AASP/NJ Allied Board Mem-

Carvana Expands to Bangor, ME Carvana, the leading e-commerce platform for buying and selling used cars, now offers as-soon-asnext-day touchless home delivery to Bangor, ME, area residents. Customers can shop more than 70,000 used cars for sale, secure auto financing or use the car loan calculator, purchase, trade in and schedule as-soon-as-next-day vehicle delivery in as little as five minutes. Customers can also sell their current vehicle to Carvana and receive a real offer in minutes, whether or not they are purchasing a vehicle. Carvana customers save valuable time and money with The New Way to Buy a Car® by skipping the dealership and shopping online. Carvana never adds hidden, last-minute fees and charges like “documentation fees,” and to give customers the peace of mind and time to confirm that their vehicle fits their needs, all 70,000+ vehicles in Carvana’s national inventory come with a seven-day return policy. Carvana gives customers a high-definition, 360-degree virtual tour of every vehicle, inside and

out. Carvana vehicles have passed a rigorous 150-point inspection, have never been in a reported accident and have no frame damage. Features, imperfections and updated information about open safety recalls are listed on every car’s vehicle description page. Customers looking to trade in their vehicle, or sell a vehicle, can also skip the dealership by simply entering their VIN or license plate number on Carvana.com and answering a few questions, and Carvana can pick up the vehicle and bring them a check, as soon as the next day. “We are proud to offer The New Way to Buy a Car to more than 300 cities across the country now and we’re confident Bangor area residents will embrace all that we have to offer,” said Ernie Garcia, founder and CEO of Carvana. “As-soon-as-next-day vehicle delivery of a national inventory is now just a click away for even more customers in Maine.” Carvana now offers as-soonas-next-day vehicle delivery to customers in 314 cities across the U.S. Source: Carvana

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ber Joe Amato Sr. of Amato Insurance Agency, a division of World Insurance Associates, LLC. “We hope these young men will put it to good use.” Carson expressed his gratitude to AASP/NJ for being selected as an award recipient. “This is going to be very helpful for me,” Carson said. “It’s really going to come in handy as tools are expensive, and it’s great to have some help.” The young technician said he’s learned a lot since he began working at Parkway Auto Body two years ago. He hopes to one day have his own shop but right now is grateful for his job and is working to learn as much as he can in order to become a great technician. Kiernan also communicated his appreciation for being chosen

for the award. “Winning this award is just great,” Kiernan said. “Being a younger technician is challenging…especially with trying to get the tools you need to get your job done as they are extremely expensive. It can be tough to get started.” Kiernan, who has been at Compact Kars for two and a half years, originally wanted to paint cars but discovered a love for building them instead once he started working in automotive. “I am very fortunate to have my bosses, Tom and Jeffrey Elder, who provide me with amazing opportunities,” he said. For more information on AASP/ NJ, visit aaspnj.org. Source: AASP/NJ

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Tarrytown Honda in NY Honored with 2021 Honda President’s Award Tarrytown Honda in Tarrytown, NY, has earned the 2021 President’s Award from American Honda Motor Co., Inc. for the first time, a prestigious honor that recognizes Honda dealerships that deliver an outstanding customer experience while achieving operational excellence. Tarrytown Honda is one of the top-performing Honda dealerships in America to receive the Honda President’s Award for 2021. The President’s Award is the highest accolade that Honda bestows on its dealerships and was established in 1995 to recognize Honda dealerships that excel across all dealership functions. Each year, the lofty requirements to achieve President’s Award are modified to stay ahead of current market trends and reflect changes in customers’ expectations for buying and owning a vehicle. A major component of the program focuses on the customer experience and, in 2021, Honda dealerships like Tarrytown Honda quickly adjusted their operations

in response to industry-wide challenges to continue to ensure a bestin-class experience for Honda customers. “The President’s Award recognizes dealerships that exemplify Honda’s commitment to the highest level of customer satisfaction,” said Michael Kistemaker, assistant vice president of Honda National Sales at American Honda Motor Co., Inc. “I am incredibly proud of the team at Tarrytown Honda for their dedication in 2021 to providing our customers an outstanding experience.” “Our goal is to always go above and beyond in providing exceptional customer satisfaction in all areas of our dealership while also being a good community partner,” said Dwight Dachnowicz, dealer principal. “This is a true accomplishment for all of our employees at Tarrytown Honda and we are incredibly honored to receive the President’s Award as one of the top Honda dealers in the country.” Source: American Honda Motor Co., Inc.

Brooklyn’s Bay Ridge Honda Wins Honda Masters Circle Award Brooklyn-based auto dealer Bay Ridge Honda was honored with the Honda Masters Circle Award for 2021. The nationally renowned Honda Masters Circle Award recognizes the top 50 dealers in the U.S. with the highest sales volume and best customer service scores. Bay Ridge Honda was the only Honda dealer in its district to win this award, recognized for stellar performance serving customers from Brooklyn and across New York City. “The Honda Masters Circle is a singular honor that we couldn’t be prouder to hold,” said Robert Sabbagh, owner of Bay

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Ridge Honda. “The award represents the hard work of the team at Bay Ridge Honda, a team made up more as a family than a company. It speaks to their superb sales performance, impressive customer service statistics and community-driven mindset, and we are incredibly honored to be recognized for all of it.” “This award can only be attributed to the hard work of the entire team at Bay Ridge Honda and wouldn’t be possible without the support of the Sabbagh family and the Brooklyn community,” said Robert Scarpaci, general manager of Bay Ridge Honda. Source: Bay Ridge Honda

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WIN to Recognize 2022 Most Influential Women Award Winners During Hybrid Educational Conference by Leona D. Scott

tial’ standard every day.”

According to Catalyst.com, women in automotive repair and maintenance make up only 9.9% of the automotive workforce. In 2014, when Mary Barra became CEO of GM, she was the first woman to run a major OEM. While women are making progress in the industry, it can happen slowly and with great challenges. That’s why programs like the Women’s Industry Network (WIN) Most Influential Women (MIW) Awards are vital. The collision industry looks forward to WIN’s annual announcement of its stellar lineup of recipients, and 2022 is no different. WIN’s 2022 MIW recipients will be honored at a gala held during WIN’s 2022 Annual Educational Conference, May 2-4 in Greenville, SC. This year’s conference will be hybrid, offering an in-person event, alongside an online program to make the event accessible to more attendees. To learn more, visit www.womensindustrynetwork.com. Autobody News reached out to the seven recipients who make up the 2022 class of Most Influential Women to get their thoughts and reflections on receiving this prestigious industry award.

Alicia Figurelli, vice president, Thomas Greco Publishing, believes the recognition that awards like this provide Alicia Figurelli will help elevate the work of all women in collision repair. “Being recognized in this way as someone who has helped make a difference in our industry is exhilarating! It’s a definite milestone in my career, and I’m so grateful to help represent one of the many areas of collision repair where a woman can excel and contribute,” said Figurelli.

Allison Boever, chief human resources officer, Repairify, values the opportunity to mentor women for leadership Allison Boever roles at Repairify. “I am beyond humbled by the recognition as one of WIN’s Most Influential Women,” said Boever. “As a human resources leader, I’m a believer that when we strive for diversity, we strengthen the organization as a whole. One of my most rewarding activities in business and life is to mentor and help prepare women for leadership opportunities as our industry continues to evolve. I’m surprised and honored and will strive to live up to the ‘most influen-

Shirin Hezar, director, strategic accounts, Caliber Collision, said as a result of recent economic and cultural dynamics, Shirin Hezar she found opportunities to contribute in unexpected ways. “In today’s evolving environment, it will be key for female leaders in our industry to leverage innovative, out-of-the box thinking to ensure we keep pace with rapidly changing customer expectations,” Hezar said. “The collision industry offers many unique opportunities for female leaders. Their fresh perspectives and new ideas will shape our future, and I am honored to be part of this amazing journey.” Jennifer Hubbard, client engagement manager, CCC Information Services, looks forward to promoting careers for women in col- Jennifer lision repair even Hubbard more as a result of the award. “I am grateful for being recognized and I intend to live up to the level of success this award demands,” Hubbard said. “I am dedicated to

spreading the word on how a career in the automotive collision industry is very rewarding. The people I meet on a daily basis are an amazing group of individuals with a strong worth ethic and are driven by our ever-changing and exciting industry.” Samantha Kita, regional vice president, operations, Gerber, is grateful for the award’s legacy and is humbled by the Samantha Kita recognition. “... It’s hard to find the words to explain how I feel. All the amazing women out there who are paving their own way while finding work-life balance, have my utmost respect,” Kita said. “Knowing that I have the support and dedication of my Gerber family makes me want to be better. I am so honored to have my work recognized by the Women’s Industry Network.”

Micki Woods, owner, Micki Woods Marketing Genius for Body Shops, is thankful for the recognition and believes the Micki Woods award highlights the overall contributions of women in collision repair. “I know I work hard and do well for my clients but there are so many other women out there working their tails off doing their best that deserve to be honored,” said Woods. “I’m proud, I’m surprised, I’m grateful, I’m humbled and I’m freaking pumped UP!” Debbie Menz, strategic account manager (retired), Axalta, will also be recognized at this year’s event. She was unable to be reached for comment before press deadline.

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Branch Launches 6 New States Branch, a full-stack insurance company that pioneered instantly-bundled home and auto insurance, announced April 1 its expansion to six new states including Idaho, Iowa, New Hampshire, South Dakota, Tennessee and Virginia. These new additions bring Branch’s total state roster to 25 and means 49% of Americans can access Branch’s instant-pricing capability. Through Branch’s rapid growth, the company maintains a stellar customer service experience with an impressive 4.8 Trustpilot rating. Having launched in six new states since the beginning of 2022, Branch continues to attract new members with its instant-pricing capability and average annual bundled savings of $535. With the goal of national coverage halfway completed, Branch continues to pave the way for convenient and affordable insurance with the aim of being available in all 50 states before the end of 2022. Source: Branch

Collision Repair Industry Stars Shine Bright at NORTHEAST 2022 Attendees never know who they might encounter at the Alliance of Automotive Service Providers of New Jersey’s (AASP/NJ) NORTHEAST® Automotive Services Show—and the 2022 iteration of the association’s flagship event offered an opportunity to greet some of the automotive industry’s biggest celebrities, all under one roof. Ryan Evans, of Count’s Kustoms and the History Channel’s “Counting Cars,” Jonathan Goolsby of Goolsby Customs and Mike Ring of Ringbrothers spent the weekend talking to industry professionals and fans, while enjoying the chance to peruse the offerings on the trade show floor for their own purposes. NORTHEAST Platinum Sponsor BASF’s booth featured Ring and Goolsby. “I came to NORTHEAST 2022 to represent BASF, but I’m taking a lot away,” said Ring, a first-time NORTHEAST attendee. “Ringbrothers isn’t just a hot rod shop; we also offer collision repairs, but we don’t get as much

exposure to new technology as was available at the show, so it was fun finding out about some of the new tools and equipment that could benefit us. I was pleasantly surprised by how much I learned during the event. “Some of the conversations I had with attending collision professionals helped me realize that I’m missing money in my own shop,” Ring continued. “I came out to New Jersey expecting to do a simple meet-and-greet, but my expectations were exceeded—I feel like I should have paid BASF to let me represent them!” Goolsby agreed: “The biggest thing about coming to NORTHEAST for me is interacting with all the companies that are in the collision industry. Many tools and equipment bounce over into the hot rod world, so we can use a lot of those products on our end of the world too. Add in seeing the people and obtaining all the knowledge offered in the classes during the show, and it’s an all-around awesome show to attend.” “I know Lift King did really

well and heard other vendors saying the same,” Evans said of his impressions of the show. “More industry professionals were walking the floor, and they were all happy to be there. Upbeat attitudes from attendees indicated that they were all really enjoying themselves…or they were just happy to not be in their office. It was a great event.” Additionally, Javier Soto and Juan “Munch” Gonzalez demonstrated their skills at Javier Designs’ booth, and Indasa USA hosted several renowned artists over the course of the weekend: Adam Stone of Stone Cold Color, Cory Mroz of Mr Oz Designs, Kristian Baena of Fried Chicken Kustoms, Taylor Holmes of Trigger Happy Graphics and TankBilt. AASP/NJ is already making plans for NORTHEAST 2023, scheduled for March 17-19, 2023, at the Meadowlands Exposition Center in Secaucus, NJ. Visit aaspnjnortheast.com for updates on next year’s event as they become available. For more information on AASP/NJ, visit aaspnj.org. Source: AASP/NJ

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Federal REPAIR Act business: a small-batch machining and fabricating business which was transformed into a high-volume contract fabrication and injection molding manufacturer during his tenure. “By prohibiting vehicle owners from accessing and sharing data they generate, manufacturers stop consumers from accessing third-party repair shops,” said Davidson. “American vehicle owners have a right to control their data, and a right to access third-party repair shops, tools and parts. This bill would end manufacturers’ anti-competitive practices and restore consumer property rights.” “Thanks to Congressman Davidson, the bill is now a bipartisan effort,” said Bill Hanvey, president and CEO, Auto Care Association. “We thank the representative for recognizing that consumers deserve the right to choose where they get their vehicle repaired. In a time where Americans rely on their vehicles more than ever and are keeping their

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vehicles longer due to economic uncertainty, we hope that other legislators follow suit.” “AASA applauds Rep. Davidson for joining Rep. Rush on this critical legislative push,” said Paul McCarthy, president and CEO, AASA. “The consumer’s ability to continue to have choice in where to repair, service, and maintain their vehicles is at stake. The bipartisan support from this bill, as we saw with the bipartisan-supported ‘Nixing the Fix’ report from the FTC, speaks to the fact that this automotive right to repair effort is not partisan, it is to support consumers, competition and free markets. Without action, consumers will face rising costs and fewer options. We look forward to working with both representatives on this important effort.” “The CAR Coalition applauds Rep. Davidson for co-sponsoring the REPAIR Act,” said CAR Coalition Executive Director Justin Rzepka. “This bipartisan legislation is critical to protecting the rights of consumers in the post-collision auto repair market. It is also crucial to ensuring the security and accessibility of vehicle

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data. As the cost of cars and repairs rise, consumers need more choices, not fewer, when it comes to repairing their own vehicles. The CAR Coalition looks forward to working with Rep. Davidson and Rep. Rush to advance the REPAIR Act on behalf of consumers across the country.” “SEMA and the specialty automotive aftermarket appreciate Rep. Davidson standing up for free and fair competition for consumers looking to service, repair or modify their vehicle,” said Daniel Ingber, vice president, government and legal affairs, SEMA. “The bipartisan REPAIR Act must be passed to protect access to vehicle systems, tools and information necessary for independent repair and modification services for millions of consumers.” Automotive aftermarket companies can urge legislators in their district to also co-sponsor the bill by visiting autocareadvocacy.org/takeaction-tell-congress-support-rightto-repair, aftermarketsuppliers.org/ repairact, carcoalition.com or semasan.com.

Repairify Completes Record Scans Repairify, Inc., unveiled key insights from its record 2021 yearend, including that its family of brands completed more than 12.4 million automotive diagnostic scans and delivered more than 4.9 million diagnostic reports across the collision, mechanical, dealership, auction and reconditioning repair markets. The record-setting year marked a watershed moment for Repairify. The company completed five acquisitions and expanded its capabilities beyond collision repair technology into diagnostics for mechanical repairs, data insights for ADAS calibrations and vehicle reconditioning workflow and inspections. Beyond the delivery of a record-setting year, Repairify’s 2021 performance was capped by several strategic investments, multiple industry partnerships and a new exclusive global patent licensing and supply agreement with LAUNCH Tech. Source: Repairify, Inc.

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Bad Driving while driving • 35% of Gen X think it’s safe to be using the phone while driving • 20% of Boomers think it’s safe to be using the phone while driving “Half of the drivers Nationwide surveyed said in the last six months they have held a cell phone to talk, text or use an app while driving,” said Beth Riczko, Nationwide’s president of P&C personal lines. “Far too many drivers are multitasking behind the wheel, putting everyone at risk by creating dangers for themselves, their passengers, pedestrians and others on the road—I promise you it isn’t worth it.” Despite reports of increasing danger, everyone thinks other drivers are to blame and they are not the ones contributing to the problem. 85% rate their driving as excellent or very good, but only 29% give the same rating to other drivers on the road around them. Drivers of all generations seem to

ASE Training Conference Set The 2022 ASE Instructor Training Conference is scheduled for July 12-15 at the Embassy Suites Hotel in Frisco, TX. Hosted by the ASE Education Foundation, the conference is planned for high school and college instructors from auto, truck and collision repair programs nationwide. Offering more than 20 hours of technical update training, the in-person conference will provide separate tracks for auto, medium/heavy truck and collision repair instructors. The cost for instructors from ASE-accredited programs is $550 per person while the cost for instructors from non-accredited programs is $650 each. For more information and to register, visit the ASE Education Foundation website at https://aseeducationfoundation.org/events/ase-instructor-training-conference Source: ASE

share this sentiment: • Gen Z—82% say they are good drivers/36% say others around them are good drivers • Millennials—86% say they are good drivers/38% say others around them are good drivers • Gen X—86% say they are good drivers/30% say others around them are good drivers • Boomers—85% say they are good drivers/20% say others around them are good drivers While people think they are good drivers, some of the behaviors they reported doing behind the wheel would indicate otherwise. Despite two-thirds of drivers (66%) saying holding a cell phone to talk, text or use an app while driving is dangerous, half (51%) reported doing this in the past six months, with Millennials doing this more than any other age group (67%). During the past 12 months: • 54% of drivers reported driving 10+ mph over the speed limit • 53% reported eating while behind the wheel • 23% said they have audibly

yelled at another driver • 21% have given an obscene gesture • 17% ran a stop sign/light “The first step to correcting bad driving behavior is recognizing when you’re doing it, and surprisingly enough, technology can help with that,” said Riczko. “Nationwide’s SmartRide mobile app provides customized feedback on phone distractions to help our members reduce distracted driving on roadways. The app’s feedback has reduced everyday hand-held distractions by nearly 10% among those who use it.” Nationwide is advocating for state lawmakers across the country to enact hands-free legisla-

tion allowing drivers to only use hands-free mobile phone technology while operating a motor vehicle. The intent is to curb crashes caused by drivers distracted by their mobile devices. To date, 24 states have enacted hands-free-primary enforcement laws with active legislation pending in 21 states. Survey Methodology: Edelman Data & Intelligence conducted a national online survey of 1,000 adults (ages 18+) US car-owning consumers on behalf of Nationwide. The study was fielded March 4-11, and has an overall margin of error of ±3% at the 95% confidence level. Source: Nationwide

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Continued from Cover

Cautiously Optimistic these kids today are not focused on this trade because they realize that the amount of money they need to spend on tools, and the time they have to put in, once they graduate, they can just go into another field and make much more money.” After the site visit, the commission members congregated in a room on the school premises to conduct a final meeting. “Sometimes if there is an issue there is all kinds of blame to go around. I am just hoping that this committee that is informed and in charge can come up with some kind of a solution,” said Commission Chairman Rep. James Murphy, D-Weymouth. It was the last scheduled meeting conducted by the special commission which will now begin its deliberations and issue a report on bill H.1111 before the June 30 deadline. The proposed bill aims to adjust the labor rates according to the rate of inflation. The increase,

however, will not be immediate but over a “corrective period” of two years. The alternative solutions, requested by the chairman, were meant to be a chance for the auto body industry and insurance companies to find a mutual solution before the clock runs out and the Legislature must intervene. “Our No. 1 [alternative] solution is that just pay us equal to, not more than, what consumers and insurers already pay to mechanical shop for the same process, which is north of $100 [an hour],” said Evangelos “Lucky” Papageorg, executive director of Alliance of Automotive Service Providers. The auto body industry has offered two more alternatives: either the current labor rates are increased over a corrective period of three years instead of two, or they are increased immediately by an inflation-adjusted value of $33 an hour. “What we want is what we originally submitted, which is bill H.1111. But we are fulfilling the chairman’s request to give him other options to consider,” added Pa-

pageorg. Although the auto body industry has actively participated in negotiations, the insurers have yet to do so. Thomas Ricci, owner of Body and Paint Center based in Hudson, MA, is familiar with the pattern. He recalled a similar negotiation arranged back in 2009 where insurance and auto body representatives were to get in a room and work out a solution. “Two days before that meeting, I got a memo that stated, ‘We will not be speaking about the labor rates.’ So here we are, some 14 years later, and there is no guarantee that they are ever going to talk about it,” said Ricci. “The concern is that we have done this before. We continue to come to the table. At the meeting the other day, there were multiple discussions by the auto body industry but not a peep out of the insurance companies, not a word.” “They [insurance companies] are never going to be ready to negotiate,” said Craig Winnie, owner of King Autobody in Northampton,

MA, who has run his business for 48 years, and is hoping for change but “with caution.” As the deadline for the commission report approaches, members of the auto body industry are rooting for the bill that promises change but are not convinced it will come through. “Keeping the track record in mind, it’s [labor rates] probably going to stay the same as it has always been,” said Lisa Russell, general manager of Acme Automotive Center in Northampton. “Even if they do decide to increase it, it will not reach the pay that the other states have.”

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Consolidation Coach Guides Auto Body Shop Owners Through Life-Changing Decisions by Ed Attanasio

If you own an independent auto body shop, you have likely been approached by a large MSO about possibly selling your business. Maybe you’re approaching retirement and want to fish and play golf in your golden years. Maybe you have kids who aren’t interested in working in the collision repair industry. Laura Gay, owner of the Consolidation Coach, began her business after selling her shop to a large MSO. Her story began when she landed a job at a car dealership that eventually led to an opportunity to work in the company’s collision center. Gay excelled in the collision center, and within just a year, she was managing the shop, doubling its revenues. Subsequently, she was recruited to work for Maryland Auto Insurance Fund, Progressive Insurance and USAA in estimating, bodily injury, salvage, arbitration and management. In 2006, a shop owner approached Gay and her former hus-

In 2015, she sold both of the shops to Caliber Collision, after learning as much as she could about consolidators. Subsequently, she started helping some of her friends and associates with the sale of their shops, and in 2017, she founded the Consolidation Coach. She saw a definite need for a company that can help smaller and independent shops when that phone call from an MSO arrives. Today, the Consolidation Coach specializes in assisting body shop owners in sales to MSOs all over the country. With a mantra of “been there, done that,” Gay Laura Gay owns the Consolidation Coach, a consulting has received countless accompany that helps independent shops when they sell to colades from clients for her MSOs. Here she is with her three dogs, from left, Mopsie, Stagger and Oscar. negotiation skills, knowledge and experience. She also now owns Collision Five years later, Gay purchased a second failing collision center to Consulting of Florida, a separate duplicate its success, taking it from consulting business that provides $750,000 to $3 million in the first shop evaluations, marketing and operational advice. year. band about buying a shop in financial trouble. Gay negotiated the transaction by purchasing the shop’s account assets and real estate. In her first 18 months, she tripled its annual sales from $1 million to $3 million. The shop’s revenues grew to $5.5 million in sales in less than three years.

Laura now lives in Georgetown, SC, with her high school sweetheart and her three dogs. She is an avid golfer, loves anything to do with any type of racing, and is a member of several car clubs and ladies’ golf leagues.

Who normally benefits more when an MSO acquires an independent?

It’s never that easy. Consolidation is changing the landscape for the industry and in many ways, it mirrors changes in society. If you own a body shop, you know that this is simply a part of life. It’s not easy to say that one company or another company will benefit more through consolidation. I think it’s just another evolution in this industry and something that we’re going to have to adjust to. It’s our new reality and many other industries are experiencing the same, so we’re not alone, for sure.

Do owners of independent shops normally overvalue

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their businesses when it comes time to selling?

I think it’s more about sellers selling too cheaply. You know, they’re just like the way I was—you put the blood, sweat and tears into your business and it starts to impact other parts of your life. You end up missing the ballet recitals, the tee-ball games and things like that, and it adds up. Then a lot of times they get a large sum of money thrown at them and they’re like, oh, wow, that’s awesome. And then when it all shakes out, they really could have gotten more money. So, I would say short change is the short answer on that. And then another area that I see where shops struggle with are understanding the legal mumbo jumbo and what it really means at the end of the day. I would say probably the real estate would be another piece, and understanding what’s the best way to go in that regard. Should I sell it or should I lease it? Some owners make decisions without being properly informed, and consequently they short change themselves.

Tell us how the deal played out when you sold to Caliber Collision in 2015?

They threw a number out and I put my poker face on and told them I would think about it. Then I called my father and he told me that there was more money where that came from. I took some steps back and learned as much as I could about mergers and acquisitions and understand how it all works. I also had some great mentors from the industry, which helped tremendously. So, I came back to the table about four months later, and successfully negotiated a deal that was almost double from what the original offer was. Shortly after that, some of my friends who owned shops were calling me and seeking advice, and one of them said I can’t even imagine trying to do this without your help. You really need to have a business that does this, they told me. That’s how the business was born. The business has grown and I couldn’t be happier. We’re able to repeat the process again and again and

26 MAY 2022 AUTOBODY NEWS / autobodynews.com

help so many people as they navigate through this process.

Do most consolidators change the business when they buy it, or do they tweak what they’re currently doing? Do they try to retain most employees?

They usually say they’re going to keep everything the same. But, I mean, let’s be real. That’s not possible. The way that you would run a business and the way that I would run a business is two different things. It doesn’t mean that you’re right or wrong. It’s just the way it is. There is no way that an old company and a new company are going to run the same. There are two different mindsets with the leadership. I think they’re setting themselves up for failure when they say that they’re not going to make any changes or retain every employee. What they should say is, we want to keep each and every one of our employees, because we really appreciate and value every single one of you. There are going to be some changes but we don’t know

what that’s going to look like yet. But know that we want you to be part of this change. Instead, they often say that there will be no changes and then there is change and everybody freaks out. That’s the biggest challenge for a lot of these consolidators. I think some of them do a pretty good job with the integration, but they fumble the transparency piece in many instances. It’s all about the delivery because people have feelings and they’re sensitive, and people inherently are very intuitive. So, when they feel that things aren’t right and if transitions aren’t being handled well, that’s where the horse falls off the train. I think that the collision trade has always struggled with culture, and the successful shops make their employees part of all decision-making processes.

When a smaller shop sells its business to a larger entity, what are their major concerns?

First, they are worried about what’s going to happen to

their employees. Typically, most of them want something built in their agreements about it. Their employees become like family over the years. They really do genuinely try to look out for them and try to make sure that they’re taking care of them after the sale. But, once the deal is done and the ink is dry, they really don’t have any control over the situation. Deciding to sell is a big concern too because it involves a whole new way of thinking. These owners have dedicated everything to their shops and used to playing the role as the owner. Some of them just want to cash out, like your younger second- or third-generation owners, who are normally in their 40s. I would say a lot of them are suffering from burnout after years of fighting with the insurance companies. Many of them don’t possess the mental strength they’ll need to reinvent themselves. I mean, being an independent repairer in today’s market is not easy. And can you survive? Absolutely. Are you going to have to change your mentality? Maybe. Is it going to

be easy to navigate? Probably not. I try to get them to think about the next three years, and what the landscape of the collision repair space is going to look like? Sometimes that helps them to make the big decision—should I stay or should I go?

Q: A:

What types of shops are consolidators looking to acquire?

I intimately know all of the consolidators very well because I do deals with all of them. That background knowledge gives us a distinct advantage and helps us to make better decisions as a result. They’re usually looking for a minimum size of 10,000 square feet, but in some markets, they’ll look at smaller shops that are typically doing $2 million in sales or more. They prefer DRP-friendly shops that have some OEM and I-CAR Gold certifications. That would be my cookie cutter answer, but it’s different with each market.

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5 Indicted in NJ for Allegedly Trafficking Stolen High-End Vehicles Worth Approximately $600,000 Five defendants were indicted March 18 on charges they conspired to steal, receive and/or fence at least a dozen mostly high-end vehicles worth approximately $600,000, Acting New Jersey Attorney General Matthew J. Platkin announced. The men were charged in a multi-county investigation by the New Jersey State Police Motor Vehicle Crimes North Unit, State Police Auto Theft Task Force and Division of Criminal Justice (DCJ) Specialized Crimes Bureau. The DCJ Specialized Crimes Bureau on March 18 obtained a 19-count grand jury indictment charging the following defendants: Quamir Hodges, 24, of Montclair, NJ Dion Wiggins, 21, of Newark, NJ Zaquan T. Wright, 19, of Newark Adrian Goolcharran, 37, of Jersey City, NJ Burdley Jean, 41, of Union City, NJ The five defendants are variously

charged with second- or third-degree receiving stolen property in connection with 12 stolen vehicles, including Land Rovers, BMWs, Jeeps, and an Audi Q8 among other makes. Hodges and Wiggins are charged with stealing a 2020 Land Rover Range Rover Sport worth approximately $90,000 from a restaurant in Margate, where it was left with the key fob inside. Hodges, Wiggins and Wright allegedly conspired from September through December 2021 to receive multiple stolen vehicles, with their alleged criminal activities spanning at least seven counties— Essex, Bergen, Hudson, Union, Middlesex, Monmouth and Atlantic. The investigation further revealed Hodges and Wright allegedly provided Goolcharran with a stolen 2018 Range Rover to transport out of state on Jean’s behalf. Hodges, Wright, Jean and Goolcharran are charged with conspiracy, trafficking in stolen property and receiving

stolen property in connection with that vehicle. When detectives executed a search warrant in December at a purported auto body business in Newark owned by Hodges, they allegedly found a stolen Dodge Charger, a defaced semi-automatic handgun, an illegal large-capacity magazine loaded with 14 rounds and a small amount of fentanyl. Hodges faces drug and weapons charges, including possession of a weapon as a convicted felon. Further investigation of Jean revealed he allegedly possessed three stolen vehicles with altered vehicle identification numbers. In addition, when the state police executed a search warrant at his residence in January, they found materials and equipment allegedly used to operate a fraudulent document mill, including fictitious government documents, forged checks and printing, embossing and laminating machines. Jean faces second-degree charges of false government doc-

uments and trafficking in personal identifying information, and third-degree charges of forgery and identity theft. Hodges, Wiggins and Jean were previously arrested and were ordered detained pending trial. Hodges and Wiggins are being held in the Monmouth County Jail, and Jean is being held in the Hudson County Jail. Wright and Goolcharran are being sought on arrest warrants. Deputy Attorney General Gezim Bajrami is prosecuting the case for the Division of Criminal Justice Specialized Crimes Bureau, under the supervision of Deputy Bureau Chief Jacqueline Smith, Bureau Chief Erik Daab and DCJ Deputy Director Annmarie Taggart. On March 3, Platkin announced the New Jersey State Police and Division of Criminal Justice are expanding the Auto Theft Task Force by adding more detectives and prosecutors and by partnering with additional police departments from

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around the state. “We are working to reduce vehicle thefts by expanding the Auto Theft Task Force and urging drivers to follow common-sense tips, like always removing the key fob from your car to prevent thieves from easily driving it off and using it to commit more serious crimes,” said Platkin. “The biggest spike in car thefts involves luxury vehicles like the Land Rovers, BMWs and other stolen cars allegedly trafficked by these defendants. We will continue to devote the resources necessary to investigate and prosecute car thieves and protect the public from this growing threat.” The investigation by the New Jersey State Police Motor Vehicle Crimes North Unit (MVCNU) and

Auto Theft Task Force was led by Task Force member Officer Anthony Mordaga, who is on loan from the Paramus Police Department. The Task Force is supervised by members of the New Jersey State Police MVCNU. Platkin thanked all of the members of the New Jersey State Police MVCNU, the Division of Criminal Justice, the Auto Theft Task Force and the other police departments across New Jersey who provided investigative assistance and support. The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law. Source: Office of the Acting Attorney General of New Jersey

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Tesla Only Major Automaker to Show Growth YearOver-Year by Joey Klender, Teslarati

Among the major automotive manufacturers, Tesla is the only one to realize a year-over-year growth in vehicle deliveries from March 2021 to February 2022, seeing a near doubling in sales. Other companies struggled to maintain level sales this year compared to last---the only company seeing a less than 10% decline was Kia. Tesla delivered 23,050 vehicles in March 2021, according to data from TrueCar. The electric automaker saw 93.2% growth in February 2022 compared to last March, delivering 42,742 vehicles. Tesla was an anomaly in this category when compared to other major automakers. From BMW to Ford to GM and Stellantis, every major automotive company suffered substantial losses in deliveries year-over-year. The automaker to suffer the most substantial loss was Volkswagen, which saw a 44.3% decline in automotive sales from March 2021 to February 2022. Other considerable

losses came from Nissan (-41.3%), Honda, (-30.6%), Subaru and Ford (-27.6%), and BMW (-23.9%). The realized gains in Tesla’s sales figures could be attributed to a more favorable consumer sentiment regarding electric vehicles over the past year, due to the company’s nearly-unanimous recognition as the leader in EVs. Additionally, Tesla was one of the only major automakers to combat the semiconductor and chip shortage with relative ease. While the company did experience delays in production last year due to parts shortages and other supply chain issues, it was widely successful in maneuvering the issues, getting cars to customers frequently. In terms of quarterly yearover-year comparisons, Tesla was one of two automakers to see positive gains from Q1 2022 compared to Q1 2021. Tesla sold 127,432 vehicles in Q1 2022, compared to 69,300 in Q1 2021, representing an 83.9% growth. Hyundai saw a 0.9% increase, delivering 176,920 vehicles in Q1 2022, compared to 175,352 cars in Q1 2021.

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New Standardized Independent Adjuster Competency Exam Announced by Ed Attanasio

When an adjuster walks into your auto body shop to write an estimate, the decisions they make can affect the repair from start to finish. If your number and their number don’t agree, it can lead to an avalanche of supplements and potentially open up a tug-of-war between you and the insurer. How qualified is the adjuster and can you rely on their assessment of the vehicle in question? A test score could help shops strip out a lot of question marks across the board, and be confident of an accurate sheet. AdjusterTV.com and IAPath. com have partnered to create a new company, Adjuster Score, offering a standardized independent adjuster core competency exam, the first of its kind in the independent claims industry. Adjuster Score will provide secure, fully proctored multiple choice and practical claims testing for new and experienced property and auto adjusters. The exams will test key competencies including

but not limited to basic computer skills, policy knowledge and application, estimating knowledge and application, building construction and vehicle knowledge, damage identification and customer service skills.

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“It’s important that we test applicants not only on how well they can build a diagram in the estimating software, but also how well they can use that software in the context of a claim,” said Mathew Allen, Adjuster Score co-founder and owner of AdjusterTV.com. “We feel that Adjuster Score

scratches several important itches in the claims industry,” Allen said. “It will provide adjusters with a narrow roadmap for building their skills and equipment, and will calibrate third-party adjuster training companies to the skills that firms and carriers need new adjusters to have. It will also provide IA firms with an objective measure of an adjuster’s skills, knowledge and equipment.” “We want IA firms to be able to assess an applicant at a glance— similar to a credit score or a standardized test score like the SAT or LSAT,” said Chris Stanley, co-founder of Adjuster Score and owner of IAPath. com. A user’s Adjuster Score will have an aggregate total score that is then broken down into specific scores for soft skills, technical skills and policy skills, among others. In addition, adjusters will be able to gain points every time

they get a new license, certification or important piece of equipment. This will help firms and carriers to know who’s ready to deploy. Adjuster Score is rapidly gaining traction with insurance companies and the collision repair industry, as well as with both fledgling and veteran adjusters. Insurance claims adjusters play a vital role in the insurance industry. They are often called upon to conduct interviews, study police reports and inspect damages, among other duties. It can be a fast-paced career that has its financial rewards, and there are a number of different areas an insurance claim adjuster can work in. But education and licensing requirements vary state to state, so without a standardized national test, no one can quantify someone’s skillset definitively. A test levels the playing field and offers a number everyone can use to measure and compare, as well as offering that much-needed peace of mind to insurance companies and consumers alike.

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833-319-6270 781-619-6791

800-648-0293 973-822-1710

315-471-7278

Shelton

Norwood

Dept. Hours: M-F 7-5; Sat 7-4 callen@curtissryan.com

Dept. Hours: M-F 7:30-5 bh-wholesale@boch.com

Lia Honda of Enfield

LIA Honda Northampton

Enfield

Northampton

800-221-3131 860-741-3401

800-369-7889 413-587-2900

Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com MAINE

Dept. Hours: M-F 7:30-5; Sat 8-3 dstanisewski@liacars.com NEW JERSEY

Berlin City Honda

Clinton Honda

800-640-6685 207-774-6685

877-657-2787

South Portland

Annandale

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IRA Honda Saco 207-391-7910 207-282-0900

Hillside

973-705-9100

800-883-0002 856-516-6262

Dept. Hours: M-Sat 8-5 mdasilva@hudsonhonda.com

240-864-0880

Route 22 Honda

800-842-0557 973-579-3500

866-483-6917 201-868-9500

Germantown

Dept. Hours: M-F 7:30-5 (W until 7); Sat 7:30-3 dlyons@rossihonda.com

Honda of Turnersville

West New York

Criswell Honda

Vineland

800-893-3030 856-692-4449

Sussex Honda

Hudson Honda

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Rossi Honda

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

Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com

Dept. Hours: M-Thu 7-7; Fri 7-6; Sat 7-5; Sun 8-4 jay.madisonhonda@gmail.com

Dept. Hours: M-Sat 8-5 rt22hondaparts@route22honda.com

Turnersville

Saco

Madison

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Newton

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Ide Honda Rochester

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

Syracuse

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Lia Honda of Albany Albany

800-272-6741 518-482-2598

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

Lia Honda of Brewster Brewster

845-278-4177

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

Lia Honda of Williamsville Williamsville/Buffalo

877-659-2672 716-632-3800

Dept. Hours: M & W 7:30-7; Tu & Thur 7:30-6 Fri 7:30-5; Sat 8-5:30 mmiller@liacars.com

Ray Laks Honda Orchard Park

716-824-7852

Dept. Hours: M, Tu, Th 8-8; W, F 8-6; Sat 8-5 jmaybee@raylaks.com

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

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Brighton

Turnersville

Maple Shade

Dept. Hours: M-Sat 7:30-6 bmartinsen@eliteacura.com

Dept. Hours: M-Thur 8-7; F 8-6; Sat 8-4 manny.aliagra@bernardiauto.com

Dept. Hours: M-F 7:30-5; Sat 7:30-4:30 sbaptist@penskeautomotive.com

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Autosport Acura

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973-361-3117

732-238-0777 732-238-5466

Peabody

800-878-3600 978-532-9110

Dept. Hours: M-Sat 8-5 dbritt@acurapeabody.com

Denville

Dept. Hours: M-F 7-6; Sat 8-4 erin@theautosportgroup.com

Dept. Hours: M-F 8-5; Sat 8-4 robert.talbot@openroad.com

Bill Vince’s Bridgewater Acura

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908-704-0307

973-696-5151

Bridgewater

Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com 34 MAY 2022 AUTOBODY NEWS / autobodynews.com

East Brunswick

Wayne

Dept. Hours: M-F 7:30-6; Sat 8-4 jonathan.tangen@openroad.com

Maywood

Dept. Hours: M-F 8-6; Sat 8-3 ron@parkaveacura.com NEW YORK

Acura of Westchester Westchester

914-834-8887

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

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802 Honda

800-960-9041 717-848-2600

802-223-9700

York

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

Berlin

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

Baierl Honda Wexford

818-332-7351

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

Shenango Honda Hermitage

800-858-0849 724-981-7106

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

Sussman Honda Roslyn

800-682-2914 215-657-3301

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

NEW YORK

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Baierl Acura

800-725-2877 914-472-7406

800-246-7457 724-935-0800

Scarsdale

Wexford

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

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

Paragon Acura

Davis Acura

718-507-3990

267-296-1000 215-943-7000

Woodside

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

Smithtown Acura

Langhorne

Dept. Hours: M-F 7-7; Sat 8-4 frankp@davisacura.com

St. James

Sussman Acura

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

800-826-4078 215-884-6285

631-366-4114

Jenkintown

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com autobodynews.com / MAY 2022 AUTOBODY NEWS 35

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.

Tips to Help Auto Body Shops Get Paid for Crucial Step of Destructive Weld Testing In a previous column, I wrote about the critical necessity to perform destructive testing of welds prior to welding on any vehicle—and regardless of whether your shop is being paid for that procedure. But I also believe you should be paid for this crucial work, and that’s what I hope to address here. Those of you who have read my articles in the past on better negotiating know I believe the process involves four questions: Is the procedure necessary? Is it included in any other labor operation? Are there pre-determined times? If not, what it is worth? Looking at any of the OEM repair procedures should convince you that it is necessary. Here is some of the wording I’ve seen: BMW: “To determine the optimum electrode contact force for

spot-welding, carry our spot-weld shear tests on sample sheet metal.” Ford: “Place the welded sample in a vice and carry out destructive weld tests by peeling the scrap metal apart using large lock-type pliers. Measure the weld nugget to determine the nugget meets Ford weld nugget requirements.” Hyundai/Kia: “Test welding must be performed before welding vehicle body.” Toyota: “Welding strength must be validated by tuning the welder and performing destructive testing.” I could go on and on, but you get the idea: It is a necessary procedure. The next negotiation question: Is it included in any other labor operation? No matter which estimating

system you are using, you should be able to find that the user’s guide— often referred to as “procedure pages”—lists set-up and performing test welds as a not-included operation. If you can’t find it, visit the Database Enhancement Gateway website (www.DEGweb.org), and read the estimating system providers’ responses to inquiries about this, including #15358 (Solera/Audatex), #12565 (Motor/CCC) and #16652 (Mitchell). None of the estimating systems publish a labor time for destructive testing of welds, so the answer to the third negotiation question is no. That leaves you with the fourth question: What is it worth? I can’t answer that question for you. Perhaps you could conduct your own time study. In any case, remember it should be based on how long it takes an average tech-

nician—one with five to seven years of experience—to gather the tools, equipment and supplies needed, perform the task safely, and return the tools, equipment and supplies to their store area, and clean the work area. Remember, too, material costs for this process are not included. That can include OEM-approved wire, welding tips/nozzles, shielding gas and gun liner. If you’re buying welding coupons, keep that cost in mind. You can also improve your chances of being paid for this necessary step by documenting the process. Shoot images of the test welds prior to testing, while the test welds are in the vise, and after they destructively tested. If you use an electronic quality control app, you can set it up to require these photos, ensuring they are time- and date-

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stamped. Some shops also actually label and store the test welds to help limit their liability should any questions about the repair arise down the road. Remember the automakers state the welding coupons you use should be of the same material with the

International and a program consultant for Jaguar Land Rover North America and Subaru of America. Others mistake he sees: Not checking to ensure the correct wire type is in the machine, not understanding what makes a good quality weld, not following the specific

In addition to photographing the destructive testing of welds, some shops label and store the test welds as part of their documentation

same coating that the new replacement panel will be attached to. In some cases this may require multiple different coupon thicknesses and coatings, such as galvanized. That’s a common oversight, according to Rick Miller of Wadsworth

placement of welds called for by the automaker, or the use of MIG welding because of a perception that it’s easier than squeeze-type resistance welding. Potential sources of coupons include I-CAR, your welder manufac-

turer or Custom Metal Shearing in Ohio (www.custommetalshearing. com). Some other resources that may be helpful: CollisionHub offers a welding validation series (collisionhub.com/ product/oem-weld-validation) and will build customer QR series for shops to put on their welding equipment to offer “just in time” training for the tech. SCRS has some great information on its website, including video of a panel discussion on OEM expectations about welding at www. youtube.com/watch?v=x85ZcSGvbU4&t=9s American Honda offers twoday hands-on welding training for anyone in the industry, with a discount for Honda and Acura certified shops. Attendees will learn how to identify steel strengths and thicknesses on Honda vehicles, and how to find Honda service information requirements for each type of recommended attachment method. After completing 13 unique practice joints, attendees are expected to complete multiple replacement pro-

cedures. To register, visit academy.veri factsauto.com, or for questions, email collisioinrepairtraining@na .honda.com. “Anyone may enroll, but I would suggest this is not a class for beginning welders,” said Scott Kaboos, national assistant manager for collision repair training and technology for American Honda. “It is an advanced level class, and so far we have had a 50% pass rate, mostly because some attendees did not have prior basic training.” Listen, I mean this in love, but we as an industry need to get it together! We must follow the OEM procedures. Not setting up and performing destructive weld test is not negotiable. All of the steps above should help your shop join those being paid regularly for performing destructive testing of welds. But whether or not you choose to pursue being paid for it, I can’t stress enough that you need to ensure your technicians are absolutely performing this crucial step every time they will be welding on a vehicle.

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EagleMMS Software Soars to the Top of Auto Body Shops’ To-Do Lists by Ed Attanasio

Two brothers were driving from Connecticut to Maine, and they decided to spend the time brainstorming instead of playing 20 Questions or the license plate game. It’s a 4.5-hour trek, so to kill time they began talking about difficulties in the auto body industry and how it has lagged from a technological perspective for many years. That journey turned out to be highly productive for the Koutmos brothers, Yanni and Alex, because by the time they reached their destination, the pair had an idea for a product that could help any collision repairer track consumables usage and get paid for them by the insurance companies. They named it EagleMMS and were excited about their new baby and how it could change the collision repair industry. EagleMMS is a technology company committed to providing collision repairers with the insight needed to run at peak efficiency.

From family-owned independent shops all the way to large MSOs, EagleMMS is a materials management software saving shops thousands of dollars month after month. Yanni is a seven-year veteran of the auto body industry, having spent nearly one year as a certified appraiser from the insurance side and

gramming language community, and has spent more than a decade developing reliable and robust software systems. After a highly productive brainstorming session, Yanni and Alex sought to develop a lightweight, high impact solution to address the disparity regarding stagnant insurance rates and rising materials costs to help business owners in their mission of providing excellent car care and customer service, without sacrificing their bottom line. After nearly a year and a half of intensive development, they were poised to offer the industry a cutBrothers Yanni, pictured, and Alex Koutmos developed ting-edge solution that can EagleMMS, a software program that can help shops get help shops reclaim lost revpaid for materials and other expenses related to every car enue on items and products repair they used on almost every six years as a frame tech and master repair. That car ride has turned into a body man. Alex is a former Amazon soft- product gaining traction and receivware engineer, currently one of the ing five-star reviews nationwide. leading experts in the Elixir pro“We started out venting about

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the industry and all of the problems associated with it,” Yanni said. “The insurance companies are always going to be playing with labor rates and ignoring things like inflation and supply chain issues. Their numbers are consistently outdated and arbitrary. The paint companies have informed the shops earlier this year that they’re going to raise their prices significantly. “In addition, it’s harder and harder to find qualified people to fix these vehicles and it’s more and more difficult to recoup their costs for materials. We knew if we could come up with software that could help shops to recoup their costs, it would be a hit.” Yanni’s mantra is “If something comes into your shop and it costs you money, it should always make you money on the way out,” he said. “Too many shops have gotten used to not charging for things, so we’re re-educating them. Once they see how much they can recover, they realize how much money has been bleeding out of their businesses for

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literally decades.” By creating precise documentation that clearly states the products being used down to each piece of sandpaper and every ounce of rubberized undercoating, for example, EagleMMS is also educating the insurers.

By building a comprehensive and detailed invoice on every repair, EagleMMS is saving shops thousands of dollars every month

“The system builds an invoice and as the tech scans every QR code, it goes into the document,” Yanni said. “Every product you use is invoiceable and once your people become familiar with that concept, it becomes part of their daily lives. Then

once you get the insurance company onboard, they will normally stop fighting you.” Simple is one of the best adjectives to describe EagleMMS, Yanni said. “Getting started with EagleMMS is easy and straightforward. After adding all of the materials that you want to track into EagleMMS, you’ll be able to generate QR code tags to put near your materials. With your QR tags in place, all your technicians need to do is scan a QR tag,” he said. “Technicians scan the needed material QR tag and then provide checkout details. The technician selects the repair order and the quantity used, and it’s immediately added to the invoice. After the scan is completed, the repair order invoice is automatically updated. All that’s left to do is submit the shop’s EagleMMS invoices in order to get adequately reimbursed.” In addition to providing accurate repair order material usage invoices, EagleMMS also enables users to manage all aspects of material management from the shop floor. “Technicians can report low or

out of inventory items, so that your parts people can order more inventory before running out,” Alex said. “You can also analyze your data to find out which materials are being used, by whom and at what rate, in order to better optimize your production process.” EagleMMS is web-based and does not require any cumbersome mobile or desktop applications. Techs can access their shop’s information and perform the job right from their phone. Another benefit is EagleMMS is not tied to any particular material manufacturer or supplier. “When we designed EagleMMS, a critical objective was to have a product that was extremely fast and streamlined,” Yanni said. “That’s why it takes less than five seconds—start to finish—to add material usages to repair orders. We’ve also made it very affordable with a monthly subscription of $49 and an optional $499 one-time setup fee if customers choose to have us set up their inventory and print their QR code tags and technician QR tag binders.”

CCC Launches Integration with asTech CCC Intelligent Solutions on March 31 announced asTech®, a Repairify company and a leader in diagnostic, calibration and programming solutions, has joined the CCC® Diagnostics network. The integration makes it easier for repair facilities to capture and document scan information in CCC ONE® workfiles. This streamlined service is available now via CCC ONE. The integration does not require a physical connection between the asTech device and CCC ONE. Information is uploaded wirelessly and the scan report is automatically attached to the vehicle’s CCC ONE workfile. Activation is simple. Repair facilities using CCC ONE select their preferred diagnostic provider(s) from those available through CCC’s network and providers send scan data directly to the workfile. Source: CCC Intelligent Solutions

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Industry Insight with John Yoswick

—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.

Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics

Shop Showcase

Collision repairers have for some substantially, but the largest increas- repairable non-comprehensive claim time been saying changes they are es that we experienced in 2021 are grew slowly from 2011 (23 hours per seeing within their business point to not likely to be repeated in 2022. claim) through 2019 (23.9 hours), but with Ed Attanasio a need for insurers to adjust their key Where most analysists are predict- then jumped to 24.7 hours in 2020, performance indicators (KPIs) metrics for direct repair claims. Recent industry data from CCC Intelligent Solutions support the trends shops are reporting. Average repair for exwithcosts, Ed Attanasio ample, rose 8% in 2021, about one percentage point higher than U.S. inflation overall; the average part cost across all part types—OEM and aftermarket—was also up 8% last year, the “largest annual increase we have seen” since CCC began reportwith Ed Attanasio ing that data in 1997, according to CCC’s Susanna Gotsch. “Moving forward, most ana- With more larger repair jobs during the pandemic, cycle time across the industry has risen lysts expect that we’ve seen most of the increase in parts costs that we are ing [the industry] will see the most and to 25.8 hours last year. Gotsch going to see,” Gotsch said.Attanasio “We’re pressure in 2022 will be on wages.” said the pre-pandemic growth was with Ed not likely to see part prices reverse Average total labor hours per related to vehicle complexity, but the

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larger increase in the last two years is based in part on the increase in the percentage of non-drivable claims. Compared to 2019, there was more than a full percentage point jump in DRP claims with repair costs above $10,000 in 2021, and a 2.5 percentage point jump in claims between $5,000 and $10,000. That results in longer cycle times, Gotsch said. “For each $1,000 increment, we essentially see an additional two full days in the overall repair time, or keys to keys time,” she said. “Industry wide, DRP repairs are now taking over 12 days, two full days above where they were in 2020, and a little less than two full days longer than they were in 2019. By the time we get to a $10,000 or higher repair, the average repair time exceeds 35 days. “Subsequently, we hear more

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carriers saying their customers are running out of allocated rental days, and many carriers have said they are looking at…their policies to determine if those [limits] should be adjusted.” Another data point of note from CCC’s recently-released annual Crash Course Report: The national average body rate in 2021 ($52.86) was up just 1% from the prior year, the smallest percentage increase since 2011, in a year when overall inflation in the country was 4.7%. CCC reports overall claim counts were up nearly 10% in 2021 compared to the prior year, but still down more than 13% from 2019. “Month-by-month comparisons, however, show volumes have been steadily rebuilding,” CCC said in the report. For example, overall claim counts in January 2021 were down 19% versus January 2019, but by December 2021, overall claim counts were down just 5.9% compared to December 2019. One statistic in the CCC report will be of little surprise to shops: The percentage of claims with supplements continues to increase. Back in

2001, more than 50% of DRP claims did not have a supplement, according to CCC. Today, it’s just over 30%. The percentage involving two, three or four supplements has nearly tripled over that time span to more than 30%. “In addition, the share of the overall repair cost added during

for DRP shops concerned about the metrics insurers are using to measure their performance: The decline in labor hours per day that has been occurring since 2017 only accelerated in 2021. Direct repair shops were producing about 2.5 labor hours per repair day on drivable vehicles in the second half of 2021, down from just

CCC data shows labor hours produced per day for DRP claims has been declining since 2017

supplements has also grown, where over 35% of the overall repair cost is added during supplements for those claims with four or more supplements,” the report said. Another interesting statistic

over three hours during the same period in 2020, and down from more than 3.5 hours in 2016 and 2017. For non-drivable cars, shops were producing about two labor hours per day during the second half

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of 2021, down from above 2.5 in 2018 and 2019, and about three in 2017. CCC cites such factors as the technician shortage and the increased number of non-drivable repairs as the likely cause of the change. But a number of shops said they would point to other causes. “For us, it’s absolutely the parts shortage,” one shop owner said. “It’s got us stopping and starting on jobs like never before, and spending way too much time shuffling cars around in the shop and back lot.” Two other collision repairers said they think the decline is only going to continue because of the ever-increasing vehicle complexity. “It’s not like you can just hang a replacement fender or replace a bumper cover any more,” one shop manager said. “Those jobs have mostly gone away. There’s electronics involved with almost every part now.” Still another had what he acknowledged was just a theory. “A lot of CCC’s data reflects only DRP claims,” he said. “Many See Need for Changes, Page 60

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Supply Chain Issues and Repair Complexity Major Concerns in 2022 by Ed Attanasio

Before the pandemic hit, people in the collision repair industry were most concerned about a lack of qualified employees and the growing complexity of OE repairs. Those problems still exist, but now the crippled supply chain has been added to the equation. It’s a whole new world and scary in many ways, so how will auto body shops be able to navigate through these uncertain and troubled times? Solid, carefully researched and highly relevant data can surely help everyone in this industry. Director/ Industry Analyst Susanna Gotsch from CCC Intelligent Solutions, Inc., is well-known for being the author of the company’s annual Crash Course since 1995, where she interprets the numbers and forecasts what is going to happen next. Gotsch’s historical perspective supported by data is invaluable for anyone who works in the automotive industry. Gotsch set the table for this year’s report before diving into the

numbers. “It’s hard to fathom that we are nearly two full years into the pandemic, but one thing we know for sure: The natural pre-pandemic order of things has been altered, leaving us searching for a new normal or rhythm to how we live, communicate and conduct business,” she wrote.

ance public health and economic well-being, the U.S. economy has roared back, with consumer buying things like cars, homes, furniture, electronics and other goods,” she said. “As a result of the increased demand, supply chains have been pushed to their brink, either from shortage of goods or people to deliver them. “Whether it’s the auto industry’s shortage of semiconductor chips or metals critical to development of electric vehicles, or the medical industry realizing many of the most critical drugs and supplies are only manufactured overseas, all industries are having to re-examine Director/Industry Analyst Susanna Gotsch from CCC and restructure their supply Intelligent Solutions forecasts that supply chain problems, chains.” inflation and repair complexity will continue to be major The supply versus deobstacles for collision repairers in 2022 mand imbalance has also Obstacles created by supply impacted U.S. inflation in a huge chain issues are a concern to every way, which hit a 40-year high in December 2021, Gotsch said. body shop in the world right now. “Labor shortages have also “Despite new variants and ongoing debates on how best to bal- driven up wages across nearly all

industries, with Conference Board data pointing to higher wages in 2022,” she said. “The disruption experienced over the last two years has accelerated the pace of innovation across all industries, leading to the transformation of how business is conducted as technologies such as artificial intelligence (AI), telematics, mobile and cloud are being adopted to help inform and speed processes, and combat challenges stemming from labor shortages, new consumer expectations and other market dynamics.” The automotive repair industry is still struggling to find employees, Gotsch reported. “Representatives from Universal Technical Institute predict a wave of retiring baby boomers will create 100,000 auto technician job openings over the next decade or so, with the Bureau of Labor Statistics projecting a 4% decline in employment in the overall auto technician field through 2029,” she said. “Finding technicians with the right skillsets is also a growing challenge as

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vehicle complexity increases.” Most collision repairers indicate the technician shortage has been the primary reason for longer backlogs of work. Repair work is up as auto accident frequency has risen. Many shops have indicated they cannot repair as many vehicles at the same time as they did before the pandemic, the Crash Course said. While repairers are seeing an increased number of non-driveable DRP repairs relative to the preceding two years, both driveable and non-driveable repairs are taking longer, and repairer productivity is lower. “Unfortunately, as repair costs climb, repairer productivity can sometimes suffer, customer satisfaction can fall and the likelihood that the customer needs to bring their vehicle back for additional work after repairs completed also increases,” Gotsch explained. “And it’s not just repair time that is taking longer. The time to get an appraisal has increased for traditional channels where the customer either is visited by an insurance staff appraiser or brings their vehicle in for a DRP ap-

praisal.” Ultimately, the key to combat higher costs is to improve productivity, Gotsch outlined. “Unfortunately, new vehicle technology such as ADAS and EVs have added increased complexity and requirements for new skillsets, training and tools for the collision repair industry,” she said. “So, while the industry has demonstrated its resilience and ability to adapt to new vehicle technology over the years, adapting takes time, and today’s environment means these repairs may cost more.” A sharp increase in motor vehicle fatalities occurred in 2020 and 2021 in the U.S., highlighting the need for new directives to improve vehicle safety. An estimated 20,160 people died in motor vehicle traffic crashes in the first six months of 2021, according to the NHTSA—an increase of 18.4% from the first six months of 2020, and the highest number of fatalities during the first half in 15 years, based on this year’s Crash Course. The fatality rate per 100 million

vehicle miles traveled increased to 1.34 for the first six months of 2021, versus 1.28 for the first six months of 2020 and 1.07 during the same period in 2019. Fatal accidents either involving just one vehicle, speeding, illegal substances or failure to wear a seat belt rose disproportionately—underscoring how more drivers are more reckless than ever before. Some of those states with the highest fatality rate per 100 million vehicle miles traveled in 2019 are also those states experiencing the most growth in population. What caused this lack of inventory in 2021? “Extreme weather and cyber security were not the only challenges in 2021 that forced people and businesses to evaluate business models,” Gotsch wrote. “Many industries like the automotive industry had moved to a just-in-time inventory system prior to the pandemic—an approach that was sorely tested over the last year as consumer demand increased much faster than anyone had planned. “Inventories had been drawn

down from plants being closed at the outset of COVID, and then operating at lower levels of production while trying to balance employee safety and production demand,” she continued. “As industries scrambled to meet demand, they met the same challenges: Higher raw material prices, higher transportation costs from higher wages and fuel prices, record spot container shipping rates (14 times higher now than during the same period in 2019), more money and time to unload goods at shipping ports, and shortage of employees on site.” In the P&C insurance and automotive sector, dealers, OEMs and aftermarket parts sellers have been operating with lower parts inventories, based on numbers outlined in the report. “Demand for parts has rebounded faster than many of the parts manufacturers and distributors expected, leading to an increase of ‘out of stock’ from aftermarket or ‘backorder’ scenarios for OEM parts,” Gotsch said. “Even when parts are available, they may be stuck overseas where the issue is

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getting the parts from the warehouse to the ports, onto the ship and then unloaded and delivered to the U.S.” Parts delays and challenges finding qualified technicians are the two primary reasons repairers have seen their throughput of repairs and productivity fall and repair times grow. CRASH Network in Q4 2021 reported 96% of shops surveyed were experiencing delays, and the national average scheduling backlog reached 3.4 weeks, versus the pre-pandemic Q4 average backlog of only 1.7 weeks. Shops are focused more than ever on blueprinting the repair to identify parts needing replacement and delaying the start of the repair until all parts have arrived on site. This is leading to delays in the average days from estimate completion to vehicle in for both driveable and non-driveable DRP repairs. In conclusion, supply chain disruptions, extreme weather, cyber threats and labor shortages are disrupting historical trends, and have also made pricing and reserving for insurance much harder. Fewer commuters mean less

traffic and fewer accidents. “Nearly two years in from the early shelter-at-home orders and a sizable share of the working population in the U.S. is still working remote at least one day per week,” the report said. “Many companies have postponed plans to bring employees back to the office numerous times, even in a hybrid model. Research from the Federal Reserve Bank of Atlanta, Stanford and University of Chicago suggests nearly 40% of U.S. jobs can be done at home, and office occupation levels tracked by Kastle Systems continue to stay well below 50% across their 10-city average.” With many vehicles traveling at faster speeds on less congested roads during the pandemic, vehicles in accidents were seeing higher Delta-v’s, with greater damage to both the vehicle and its occupants. Delta-v is a measure of a collision’s severity or force. Higher forces in an accident increase not only the damage to a vehicle but also the likelihood for occupant injury and more severe injuries. The professional disciplines of accident reconstruction and injury

causation have clearly established axioms. All other factors being equal, the following are true: increasing the severity of an impact, in terms of impact force, increases the amount of damage to a vehicle, and increasing the severity of an impact, also in terms of impact force, increases the risk of injury to the vehicle’s occupants. According to a survey by Workplace.com, 37% of U.S. employees will be working remotely in 2022, according to Gotsch’s data, with between 29% to 39% of the time spent working in the U.S. possibly done remotely, with 22% of employees able to work remotely three to five days per week without affecting productivity. With potentially fewer people on the road during rush hour, congestion levels may remain lower, and some of the auto claim trends experienced during the pandemic may become more permanent. Overall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush-hour trips, less congestion in urban areas and freer move-

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ment of remaining traffic. This is important because the variable shown to be most highly correlated to vehicle accident frequency is a large number of vehicles on the same road at the same time— i.e., congestion typical of morning and evening rush hour traffic. So, with miles driven recovering, but fewer during historic peak rush hour times, does automotive claims data suggest different driving patterns will continue in 2022 and beyond? Overall claim counts including comprehensive losses were up 9.6% in 2021 versus 2020, while non-comprehensive losses were up 10.2%. The acceleration of repair costs is always a major issue for body shops nationwide. Gotsch’s report said in 2021, the industry experienced a much larger increase in repairable claim costs than in prior years. The average total cost of repairs overall for all repairable appraisals was $3,708, up 8% from 2020 and up 14% from 2019. Growth in the average number of parts replaced per claim as well as more labor hours per claim largely account for the rise in repair costs.

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M-F 7:30 - 5:30; Sat 8 - 4 brucem@martysbuickgmc.com autobodynews.com / MAY 2022 AUTOBODY NEWS 53

Increasing vehicle complexity—both in terms of the materials used in the construction of the vehicles, as well as an increased number of standard options—are helping to lift costs. The distribution of repair cost dollars has changed little over the last 20+ years, the timeframe in which CCC tracked this information. In 2021, the increase in both the share of overall dollars spent on replacement parts and sublet/miscellaneous operations continued. The average price paid per replacement part had historically experienced only moderate increases at an aggregate level. However, supply chain issues in 2021 drove prices up sharply. At the close of 2021, the industry’s share of replacement part dollars was split at 64.4% OEM versus 35.6% non-OEM. Between 2001 and 2021, the average number of replacement parts per non-comprehensive appraisals increased from 5.1 parts to 9.1 parts for driveable vehicles; from 18 parts to 22.3 parts for non-driveable vehicles; and from 8.0 parts to 12.1 parts for the combined driveable and non-driveable claims.

‘Who Pays for What?’ Survey Shows More Auto Body Shops Billing, Being Paid for Masking During Priming The percentage of auto body shops saying they are paid regularly by the eight largest auto insurers for the labor involved in masking prior to applying primer has grown significantly since 2015, according to the “Who Pays for What?” survey series. Seven years ago, fewer than one in four shops (24%) said they were paid “always” or “most of the time” when masking was required as part of the priming process. In January of this year, that had grown to 45%, a figure that has been consistent for three years in a row. Perhaps just as significantly, the percentage of shops saying they have never billed for the procedure has fallen from about 39% in 2016 to just 25% today. While the surveys ask specifically about billing for the labor involved in the procedure, Mike Anderson of Collision Advice is concerned some collision repair businesses may not be sufficiently considering the costs for the materials involved.

“As inflation drives up the cost of shop supplies, it’s important for shops to review their billing practices,” said Anderson, who conducts the quarterly “Who Pays” surveys in conjunction with CRASH Network. “We see many shops billing for this masking procedure through their parts code tables as a body operation with a manual line for materials, and they are not capturing enough for materials. Shops should review this because it can vary based on the specific job.” The latest quarterly “Who Pays for What?” survey is now open through April. It focuses on “not-included” body labor operations. Shops can take the survey at: https://www.surveymonkey. com/r/76X7BMV Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information

Chevrolet Resumes Bolt Production Following Battery Issues by Joey Klender, Teslarati

Chevrolet has resumed production of the Bolt EV and EUV following a series of battery issues that would sometimes result in spontaneous fires. General Motors, the parent company of Chevrolet, spent $1.8 billion throughout the Bolt’s battery issue saga to resolve the problems. General Motors issued a series of recalls on the affected vehicles, described as “unpredictable” due to their defective battery modules. LG Energy Solution provides the battery cells for the vehicle and said in a joint statement with GM in July 2021 “the simultaneous presence of two rare manufacturing defects in the same battery cell” were increasing the risk of potential fires. Production of the Bolt EV was halted in late August. GM said in a statement it would “not resume repairs or restart production until we are confident LG is producing defect-free products for us.” GM said in mid-February the

Bolt would resume production in early April. Things appear to be right on schedule, as GM Authority is now reporting the Bolt EV and EUV are resuming production at General Motors Orion Assembly Plant in Michigan. The battery defects caused a widespread issuance of preventative measures from various entities to prevent the possibility of a fire. For example, a parking lot in California advised owners of the Bolt EV’s affected models to not park on their property due to the potential danger of fires. Meanwhile, the U.S. agency responsible for vehicle recalls, the NHTSA, officially closed its investigation of the Bolt fires in February. The NHTSA reviewed reports of 24 Bolt fires, while GM said it only suspected 18 of the 24 could be linked to battery defects. The Bolt still holds plenty of credibility in the sector, especially as it beat out some of the industry’s biggest names, like the Tesla Model 3, to win U.S. News’ Best Electric Vehicle of 2021 award.

54 MAY 2022 AUTOBODY NEWS / autobodynews.com

presented. Anderson said the survey, which has been streamlined to take less than 15 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https://www.crashnetwork.com/ collisionadvice Collision Advice (www.CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network (www.CrashNetwork.com) is a subscription newsletter offering news and information not available from other industry sources. Source: CRASH Network

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*Kia Genuine replacement parts sold but not installed by an Authorized Kia Dealer are covered for 12 months from purchase date, regardless of mileage, for the part only, and any labor charge is the consumer’s responsibility. autobodynews.com / MAY 2022 AUTOBODY NEWS 55

Dingle Family Continues Journey with Their Recycled Ride by Ed Attanasio

As part of Autobody News’ “After the Donation” series, we focus on families, individuals and nonprofit organizations who give away cars through NABC’s Recycled Rides Program. Mike’s Auto Body is a leader when it comes to philanthropy, and nationally known for giving people a hand up as opposed to a hand out through its Benvolence Program. In December, the California Bay Area MSO, owned by the Rose family, gave four families “nearly new” completely refurbished cars—bringing its total number of donations to 100. Many of these recipients have decided to pay the benevolence forward and help others in need, and the Dingle family is a prime example of the power of giving. In November 2015, Mike’s Auto Body presented a 2013 Nissan Versa to Staff Sgt. Eugene Dingle from Travis Air Force Base and his wife April as part of its annual presentation on Veterans Day at the

company’s Fairfield, CA, location. At the time, Eugene was a member of the 60th AMXS Squadron and had to commute to and from his assignment at Moffett Air Base as well as get his children to and from school. Thanks to their completely refurbished vehicle from Mike’s Auto Body, the Dingle family was able to function normally. In addition, the Rose family

Nissan Versa for the first time six years ago. “It was so miraculous, I still can’t believe it happened even now,” Dingle said. “The people at Mike’s Auto Body and the Rose family are incredible, because they make their benevolence program a priority every year. After receiving these blessings, I realized that I now have a responsibility to help others—to pay it forward.” Since receiving the vehicle, April and Eugene Dingle have been doing everything they can to give back to their community, and their Nissan Versa has played a significant role in their journey. “Back then, I was the The Dingle family is still driving the 2013 Nissan Versa chaplain assistant at Moffett they received in 2015 as part of Mike’s Auto Body’s Field in Sunnyvale, CA, so Benevolence Program I had a 1.5-hour commute gave the Dingle family one year of from our home in Suisun City,” Euinsurance coverage and a trunk full gene said. “I was also studying to of gifts for the children. become a chaplain at Gateway SemEugene said he couldn’t stop inary in Fremont, and running the resmiling when he first saw his 2013 ligious education programs at Travis

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Air Force Base at the same time.” In December 2018, Eugene transferred to Maryland to join the 175th War Field Wing in Middle River. He now proudly wears two hats—one as an active member of the Air Force and another as an assistant chaplain. It’s a role he loves because it allows him to help people as they navigate through their lives in the military. “It can be a stressful existence and a lot of what I do involves crisis management,” Eugene said. “I offer the men and women I help with 100% confidentiality, which is something they appreciate. We do everything we can to keep these people in the Air Force and this can be a very stressful job, but the rewards are many.” When Mike’s Auto Body gives anyone a vehicle, they first re-condition every part of the car. With 112,000 miles now on the Dingles’ 2013 Nissan Versa, the vehicle is still going strong after a few treks that tested its ability to go the distance.

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“When we moved to Maryland, we drove there with the Versa and a van that we purchased. It was a little scary with my wife, the kids and a dog and it was wintertime,” Eugene said. “My friends told us take the southern route to avoid the snow and the mountains, and that was good advice. It took us six days to get there.” Before moving to Maryland, Eugene and April donated their time generously to Mike’s Auto Body, which included walking in the Veterans Day Parade in Fairfield, CA. In addition, Eugene did the invocation at the Veterans Day presentation and April sang the National Anthem at the 2016 Christmas presentation in Antioch. “We feel like we’re part of the family at Mike’s Auto Body now. Sal Contreras and the Rose family have been wonderful to us,” April said. “We’ve become good friends with the people at Mike’s—they’re truly special!” The car now gets Eugene to and from his job—another 1.5-hour commute—while April uses the van to transport her children to their activities.

“The car is a workhorse and we wouldn’t be in the position we are now without it,” Eugene said. “One of my daughters, Ariel, is now playing competitive basketball and volleyball, and we are also taking care of our parents who live in Washington, D.C. My father Lovair is 85 [former Air Force]; and we are also taking care of my wife’s parents [David, 78, and Carlisle, 76]. The car gets us to where they live, so we can take them to our appointments, etc.” One random and wonderful event happened as a result of the benevolence car, Eugene said. “Our little pug named Bishop was an escape artist and one day he ran off and we figured we’d never see him again,” he said. “But, because of the media coverage we got through Recycled Rides and Mike’s Benevolence Program, a veterinarian all the way in New Jersey knew my name when they found Bishop and scanned his microchip. We didn’t update the contact information, so if they hadn’t known our name from the press coverage, we would have never been reunited with Bishop!”

2021 Ford F-150 Trucks May Suddenly Shift into Neutral by David A. Wood, CarComplaints.com

A 2021 Ford F-150 recall includes more than 47,000 trucks because the transmissions may suddenly shift into neutral for no apparent reason. The 2021 Ford F-150 trucks may have problems with the diagnostic trouble code (DTC) for low transmission fluid that may activate when it shouldn’t. The 2021 Ford F-150 trucks are equipped with 3.5L GTDI, 2.7L and 5.0L engines and 10R80 transmissions. All the trucks were built between July 28 and Dec. 20, 2021. Ford emphasizes the 2021 F-150 trucks are not equipped with Auto Start-Stop technology. The truck can shift into neutral while driving at any speed, coasting to a stop as the electronic shifter tries to engage park below speeds of 2 mph. The shifter will automatically shift into park when the F-150 comes to a complete stop. As for why this is happening? “A transmission calibration

diagnostic logic was inadvertently activated for certain vehicles without Auto Start-Stop technology,” Ford said. A 2021 Ford F-150 driver will see an illuminated wrench light, but the transmission will begin working normally during a key-off/key-on cycle. Ford saw an increase in “transmission fluid pressure low” DTC P0868 codes being set on specific 2021 F-150 trucks equipped with 3.5L GTDI, 2.7L and 5.0L engines and 10R80 transmissions. Engineering found one of the powertrain diagnostic logic software branches was turned on in error when the trucks were built. There were 28 warranty claims between Oct. 22, 2021, and Feb. 9. Ford expects to mail F-150 recall letters May 2, and dealers will update the powertrain control module software. Ford F-150 owners may contact Ford at 866-436-7332 and ask about F-150 recall number 22S15.

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USDOT Announces New Vehicle Fuel Economy Standards for Model Year 2024-2026 The U.S. Department of Transportation’s National Highway Traffic Safety Administration on April 1 announced new, landmark fuel economy standards which follow President Joe Biden’s executive order to drive American leadership forward on clean cars. The new standards will make vehicle miles per gallon more efficient, save consumers money at the pump and reduce transportation emissions. The new Corporate Average Fuel Economy (CAFE) standards require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks in model year 2026, the strongest cost savings and fuel efficiency standards to date. The new standards will increase fuel efficiency 8% annually for model years 2024-2025 and 10% annually for model year 2026. They will also increase the estimated fleetwide average by nearly 10 miles per gallon for model year 2026, relative to model year 2021. Strong fuel economy standards strengthen U.S. energy indepen-

dence and help reduce reliance on fossil fuels. Since CAFE was signed into law in 1975, the standards have reduced American oil consumption by 25%, or approximately 5 million barrels a day since then. The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips. “Today’s rule means that American families will be able to drive further before they have to fill up, saving hundreds of dollars per year,” said U.S. Transportation Secretary Pete Buttigieg. “These improvements will also make our

country less vulnerable to global shifts in the price of oil, and protect communities by reducing carbon emissions by 2.5 billion metric tons.” The new standards will also reduce greenhouse gas emissions and air pollution. These reductions will improve public health and provide environmental justice for communities who live near freeways and other heavily trafficked roadways, which are disproportionately low-income communities of color. “NHTSA is helping American families by making life more affordable—and the air cleaner for their children,” said Dr. Steven Cliff, NHTSA’s deputy administrator. “These vehicles will be better for the environment, safer than ever, and cost less to fuel over their lifetimes. We are proud to fulfill President Biden’s mission to move us to a more sustainable future, one that strengthens American energy independence and helps put more money in American families’ pockets.” This announcement of new standards comes as the automobile

industry is retooling production for future models in response to rapidly growing market demand for cleaner, more fuel-efficient vehicles. Nearly all auto manufacturers have announced new electric vehicle models. More robust fuel economy standards will encourage the industry to continue improving the fuel economy of cars powered by internal combustion engines as the transportation sector transitions to electrification. The final fuel economy standards follow Biden’s Executive Order 13990, which directed NHTSA to review the 2020 “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks” final rule. These CAFE standards also support the Biden-Harris Administration’s priorities to cut costs for American families, improve public health, combat climate change and create and sustain good-paying jobs with a free and fair choice to join a union. Source: NHTSA

Honda to Launch 30 EVs Globally by 2030, Including 2 Sports Cars by Dan Mihalascu, InsideEVs

Honda has pledged to invest approximately $40 billion over the next 10 years in electrification and software with the goal of offering 30 all-electric vehicles globally built in an annual volume of 2 million units by 2030. The ambitious goals were announced April 12 by Honda Motor CEO Toshihiro Mibe during a press briefing at the company’s global headquarters in Tokyo. The executive said Honda would shift its business away from non-recurring hardware sales toward recurring sales of services that combine hardware and software. This will be made possible from 2026 by the automaker’s e:Architecture dedicated EV platform. Honda will pursue a multipronged approach to achieve its goal of having a gasoline-free lineup by 2040. On the one hand, the company will work with partners in the near term to achieve scale and cut cost, like its partnership with GM in North America; on the other, it will develop its own in-house technologies in the

long run. For example, following in the footsteps of Nissan, Honda said it will build a demonstration line for the production of all-solid-state batteries, with the goal to start demonstration production in spring 2024 and bring the lighter, energy-dense batteries to market in the late 2020s.

Honda revealed a teaser image of a flagship electric sports car

Until that happens, Honda will keep sourcing Ultium batteries from GM and explore other joint ventures for battery production in North America. The carmaker will partner with CATL in China and with Envision AESC in Japan, where it plans to offer a new series of mini EVs. As for the 30 Honda electric vehicles that will become available

58 MAY 2022 AUTOBODY NEWS / autobodynews.com

worldwide by 2030, the automaker breaks them down into two categories. From now through the second half of the 2020s, Honda will introduce products tailored to the market characteristics of each region. In North America, those will include two mid- to large-size EVs jointly developed with GM that will launch in 2024: the Honda Prologue SUV and an Acura electric SUV. In China, Honda will introduce a total of 10 new EVs by 2027, while in Japan, it will launch a commercial-use mini EV model in the $8,000 price range in early 2024. After that, Honda plans to launch personal-use mini EVs and electric SUVs in its home market. After the second half of the 2020s, Honda will begin introducing “the best EVs from a global perspective.” In 2026, the automaker will begin adopting the Honda e:Architecture EV platform that combines the hardware platform and software platform. The dedicated EV architecture will also underpin two sports cars, described by Honda as a specialty

and a flagship model. The automaker said these EVs will embody its “universal sports mindset and distinctive characteristics.” In the teaser images, the flagship sports car appears to have similar proportions to the mid-engined NSX, hinting at a return for the fabled nameplate in all-electric form. Through the alliance with GM, Honda aims to introduce affordable EVs in 2027, with a cost and range as competitive as gasoline-powered vehicles, starting in North America. Honda said its 30 EV models available globally by 2030 will encompass a full lineup from commercial-use mini EVs to flagship-class models, with a planned total annual output of more than 2 million units. To support the ambitious production target, Honda plans to build two dedicated EV plans in China, in Guangzhou and Wuhan, and a dedicated EV production line in North America.

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autobodynews.com / MAY 2022 AUTOBODY NEWS 59

EV Operating Costs Appear Much More Appealing as Gas Prices Soar: Report by Steven Loveday, InsideEVs

According to a new analysis by the Zero Emission Transportation Association (ZETA), electric cars are saving owners money, attributed to operating costs, which comes as no surprise. To be clear, the general idea here is not news. We’ve shared comparisons time and time again showing how an electric car can be cheaper to own than a similar gas-powered car once you factor in long-term ownership costs. EVs are much more expensive up front, though they tend to save owners money on fuel and maintenance over the years. If this wasn’t already provable in a growing number of cases, it’s becoming even more of a reality as gas prices soar. While electricity prices are also rising, they’ve remained relatively consistent over the years, with a more gradual rise. Meanwhile, gas prices have proven more volatile over time. Moreover, due in part to Russia’s invasion of Ukraine, oil prices have spiked to record highs, and gas prices are following suit.

“This month’s Consumer Price Index shows once again that gas prices are surging, which has been exacerbated by Putin’s invasion of Ukraine,” said ZETA Executive Director Joe Britton. “American families are losing money at the pump to a commodity that is increasingly unpredictable and unaffordable in an already-expensive pandemic year. Our analysis shows that American consumers don’t have to choose between driving their car or saving money. Electric vehicles are affordable now.” Note that “affordable” is highly subjective here. Just because a family can potentially save money over time by choosing an EV over a gas car doesn’t mean it will prove true in all cases. In addition, if a car shopper simply can’t afford the upfront cost of an EV, they won’t be able to take advantage of the potential opportunity. Finally, even with high gas prices, it almost always makes sense to keep the car you already own, especially if there aren’t major issues with it. Buying a new car right now

Continued from Page 46

new transformative clean energy investments to electrify the transportation sector and bolster domestic auto manufacturing, EVs’ sticker prices and total cost of ownership will only continue to come down, paving the way for electric vehicles to become the new—and affordable—normal in the United States.” Based on the details in the study, ZETA suggests, as of March, driving an electric car is significantly less expensive than a gas-powered equivalent. The EV advocacy group goes so far as to say “EVs are three to five times cheaper to drive per mile than gas-powered vehicles.” It added in some states, the savings appear to be even higher. ZETA mentioned earlier data from Consumer Reports that claimed EV owners were saving between $6,000 and $10,000 over the lifespan of the car as compared to gas-powered vehicles. That report was published in late 2020, when average U.S. gas prices were much lower than they are today, though several more expensive EVs have also come to market since then, and electricity prices have risen slightly.

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Need for Changes of the top independent shops have cut way back or eliminated DRP agreements in recent years, like we have. Not to knock the big MSOs, but even some people I know who work at them say they’re not as productive as shops with an owner on-site. They can help contain costs, but it’s not usually through better productivity. I think the CCC data reflects more DRP claims going through those MSOs.” MSOs with 25 or more shop locations last year accounted for 43% of uploaded DRP appraisals, according to CCC, a percentage that has grown nearly four-fold since 2008. Whatever the cause, even CCC acknowledged labor hours produced per day isn’t likely to rebound soon. “With many repairers seeing repair volumes grow while still unable to find the technicians needed, we expect we will continue to see labor hours per repair day remain below where it was pre-pandemic,” Gotsch said.

when inventory is scarce and prices are high may not be the best plan. At any rate, ZETA put together a report comparing the operating costs of electric cars versus gas-powered cars. We’ll say right up front these studies should always be taken with a grain of salt, though they do paint an interesting picture of the situation as it’s unfolding. Reports such as this typically rely on a small data set, and there are an immense amount of factors and variables involved. ZETA used three of the most popular gas-powered vehicles. It looked at a select number of U.S. states and aimed to compare the operating cost of the gas-powered vehicles to that of similar EV models. ZETA claims its research suggests, unlike gasoline prices, EV charging costs aren’t “dependent on global oil markets—and are therefore not subject to the same price shocks, disruptions and supply shortages.” “Instead, EVs run on electricity, which is cheaper than gasoline and is produced domestically from increasingly renewable and locally derived resources,” Britton said. “As Congress moves forward to pass

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Improved Semiconductor Supply Drives Truck Market Share Gains for GM General Motors Co. sold 512,846 vehicles in the U.S. in the first quarter of 2022, with improved semiconductor supplies supporting higher production and market share in key truck segments. “Our ability to meet pent-up demand improved dramatically thanks to a tremendous effort by our supply chain and manufacturing teams to keep our plants operating at close to normal levels,” said Steve Carlisle, executive vice president and president, GM North America. “Supply chain disruptions are not fully behind us, but we expect to continue outperforming 2021 production levels, especially in the second half of the year.” According to GM Chief Economist Elaine Buckberg, industry light vehicle volumes will grow this year and top 2021 levels, thanks to a strong labor market, higher vehicle production and pent-up demand. “Ordinarily, a U.S. economy this strong would translate into light vehicle sales in the 17 million range,” she said. “Improvements in the supply chain should lift auto sales as the year progresses, despite headwinds from higher inflation and fuel prices.”

GM estimates total light vehicle SAAR for the first quarter was 14.1 million, down from 16.8 million a year ago, due to lower inventory and production levels. GM deliveries in the first quarter were down 20% from a year ago, but they were up 16% from the fourth quarter. GM’s production in North America has increased sequentially each quarter since the end of September 2021, and the company ended the first quarter with 273,760 vehicles in dealer inventory, including in-transit units, which are rising. Inventories were 128,757 units at the end of the third quarter of 2021, and 199,662 at the end of the fourth quarter. GM expects inventory to remain relatively low throughout the year due to high demand. GM’s performance, along with a more stable operating environment, has already translated into market share gains for GM in key truck segments: The combined retail market share of the Chevrolet Silverado HD and GMC Sierra HD pickups was a segment-leading 41.5% during the first quarter, according to J.D. Power PIN— up more than 10 percentage points from a year ago and GM’s strongest

quarter in HD retail market share in over a decade. The Chevrolet Silverado 1500 and GMC Sierra 1500 also led their segment during the quarter, with combined retail market share of nearly 42%, up 2.6 points year over year, according to J.D. Power PIN. The combined retail market share of the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon and Yukon XL reached 69% during the first quarter, up 5 points year over year. GM’s sales in the segment were up 10%. The Cadillac Escalade had its best first quarter since 2007, with a 7% sales increase. In another sign of robust economic growth, commercial customers have been upgrading and expanding their fleets. GM delivered its best commercial sales quarter in nearly three years with sales velocity at the end of the quarter reaching a 15-year high. In the commercial market, sales of full-size pickups were up 5%, compact SUVs up 131% and mid-size pickups up 23%. Total first-quarter deliveries of the Chevrolet Low Cab Forward were up 48% compared to a year ago. The

Chevrolet Silverado medium duty line, which is a popular choice for upfitters, was up 23%. Fleet sales, which were 24% of GM total sales in the first quarter, grew 10% year over year, with commercial and government deliveries up 14% and 18%, respectively. Chevrolet Tahoe sales to government customers increased 243%. The first quarter saw GM reach several milestones as the company scales EV capacity in North America to more than 1 million units by the end of 2025. GMC’s launch of the HUMMER EV is going according to plan, with early production focused on satisfying orders of the launch edition. Production of the Chevrolet Bolt EV and Bolt EUV will resume April 4. Chevrolet dealers continue to repair customer vehicles and recently resumed deliveries of some completed Bolt EV and Bolt EUVs in inventory. Production of the Cadillac LYRIQ began March 21, nine months ahead of the company’s original target. Cadillac will begin taking orders for future editions May 19. Source: GM

Chrysler Pacifica Hybrid Fire Risk Causes Class Action Lawsuit by David A. Wood, CarComplaints.com

A Chrysler Pacifica Hybrid fire risk has caused a class action lawsuit that alleges the minivans are dangerously defective and prone to catching fire and exploding. The lawsuit also alleges this is something Fiat Chrysler (FCA) knew about or should have known about, yet didn’t warn owners and lessees of 2017-2018 Chrysler Pacifica plug-in hybrid electric vehicles (PHEVs). Owners began filing class action lawsuits after the automaker announced a recall in February following 12 fires in 2017-2018 Chrysler Pacifica Hybrids. About 16,741 minivans were recalled in the U.S. even though Chrysler engineers didn’t know what caused the fires, meaning they also didn’t know how to repair the minivans. Pacifica Hybrid owners were warned not to charge their minivans and to make sure the vehicles aren’t parked near anything flammable. Chrysler said the 12 fires occurred when the Pacifica Hybrid

minivans were shut off, and eight fires occurred while the minivans were charging. However, the automaker said it hadn’t determined if there was a connection between the fires and charging. Additionally, Chrysler said a Pacifica Hybrid fire risk recall announced in 2020 was about 12-volt battery corrosion and is allegedly not related to the latest recall. Although Chrysler said its engineers haven’t determined a root cause of the fires, the plaintiffs who filed the class action lawsuit say the 2017-2018 minivans “contain a defect in the hybrid propulsion system that can cause vehicle fires and explosions, even when the vehicles are parked with the ignition in the ‘off’ position.” “Alarmingly to consumers, while FCA contends that the root cause of the fires is unknown, it appears overwhelmingly likely that the defect is connected to the vehicles’ high-voltage batteries used to propel the vehicles when they are operating in electric mode,” the lawsuit said. The plaintiffs asserted it is an

62 MAY 2022 AUTOBODY NEWS / autobodynews.com

unfair burden to force Pacifica Hybrid customers to not use the electric propulsion systems and to not park in their garages. The plaintiffs also alleged some minivan owners may need to park far from their homes in order to park away from other vehicles. The plaintiffs said they wasted their money to purchase plug-in hybrid electric vehicles that can only be operated by using the gas-powered engines. The Chrysler Pacifica Hybrid fire risk lawsuit was filed by these plaintiffs: Lauren Huntington, Ohio, 2018 Chrysler Pacifica Hybrid Andrew Berzanskis and Margaret Wilensky, Colorado, 2018 Chrysler Pacifica Hybrid Scott Carney, California, 2018 Chrysler Pacifica Hybrid Nicole and Stephen Costa, Massachusetts, 2018 Chrysler Pacifica Hybrid Michael Christie, Oregon, 2018 Chrysler Pacifica Hybrid Diane and David Davidson, Virginia, 2018 Chrysler Pacifica Hybrid

Michael Keeth, Idaho, 2018 Chrysler Pacifica Hybrid Alicia and David Maltz, Massachusetts, 2018 Chrysler Pacifica Hybrid Diahann Messeguer, Florida, 2018 Chrysler Pacifica Hybrid Elizabeth Niemioja, Minnesota, 2017 Chrysler Pacifica Hybrid James Quattropani, New York, 2018 Chrysler Pacifica Hybrid Andrew Ventura, Virginia, 2018 Chrysler Pacifica Hybrid Spence Voss, Wisconsin, 2018 Chrysler Pacifica Hybrid Tracy Whitman Brace, New Jersey, 2017 Chrysler Pacifica Hybrid None of the plaintiffs alleged their minivans caught fire, but they argued Chrysler should pay them restitution, “recovery of the purchase price of their Affected Vehicles, or the overpayment or diminution in value of their vehicles.” The Chrysler Pacifica Hybrid class action lawsuit was filed in the U.S. District Court for the Eastern District of Michigan: Huntington, et al., v. FCA US LLC. The plaintiffs are represented by Hagens Berman Sobol Shapiro LLP, and The Miller Law Firm PC.

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Ally Survey Reinforces Appeal of Used Vehicles Among Younger Buyers by Auto Remarketing Staff

From vintage clothing to retro furniture finds, Ally Financial said thrifting is the shopping mode of choice for many Gen Z and Millennial consumers as they look for ways to lessen their impact on the environment. According to a new survey orchestrated by the finance company, the same approach now holds true for vehicle buying. In a survey of 2,000 American adults conducted by One Poll on behalf of Ally Financial, 71% of consumers ages 18 to 40 said they would rather buy a used vehicle than a new one, even as used-vehicle prices hit record highs. For this age group, Ally discovered sustainability is a key motivator, with 63% of used-vehicle shoppers stating they would prefer a used vehicle specifically because it’s more sustainable and draws on fewer resources than building new models. “Sustainability has become a key priority for Gen Z and Millennial consumers, and it’s impacting the way they think about cars and their

car-buying decisions,” said Doug Timmerman, president of dealer financial services at Ally Financial. “Whether it be through purchasing an electric vehicle or a used car, the goal remains the same: to lessen environmental impact,” Timmerman continued in a news release. Ally’s survey indicated 82% of consumers ages 18 to 40 agree electric vehicles are the future, with 72% saying they’d consider purchasing an electrified vehicle, compared to only 28% of drivers ages 57 and older. However, Ally discovered cost is still a consideration as nearly half (45%) of Gen Z and Millennial consumers said cost could hinder their EV purchase. With used vehicles and electric vehicles gaining in popularity as sustainable options, Ally said consumers recognize any vehicle choice brings additional expenses. To keep expenses under control in uncertain times, 81% of younger consumers indicate they are more inclined to purchase a vehicle service contract (VSC) due to the pandemic. “There’s a common miscon-

ception that electric vehicles have minimal service and repair needs, but that’s not necessarily the case,” Timmerman said. “Whether consumers are purchasing EVs or used cars in an effort to be sustainable, vehicle service contracts can provide peace of mind for unexpected repair expenses and help extend the life of the vehicle.” Ally reiterated VSCs can help cover expenses such as repairs and replacement parts that fall outside the factory warranty including costly hightech features such as LCD screens, lane departure warning systems, adaptive cruise control and more. As an example, Ally Premier Protection VSCs cover more than 7,500 vehicle components and offer other benefits, such as alternate transportation (including ride sharing), roadside assistance and reimbursement for trip interruption caused by a breakdown. Ally said levels of coverage vary by plan and are available for new and used vehicles.

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Farmers Insurance Wins NABC Award The National Auto Body Council (NABC) President’s Award is designed to honor the NABC member company that supports the vision of the NABC through donation of its time and resources. For 2021, the NABC President’s Award was presented to Farmers Insurance, selected by a vote of the NABC Board members. The Farmers Insurance nomination received overwhelming support from the NABC Board based on Farmers strong commitment to the NABC. Throughout 2021, Farmers Insurance assisted with the gifting of nearly 30 NABC Recycled Rides vehicles, and provided its staff with the time and resources to act as chairman of the NABC Fundraising committee and support NABC activities.In addition to presenting Farmers with the NABC Presidents Award, the NABC will make contributions to two organizations in the recipient’s honor— one selected by NABC and one by Farmers. Source: NABC

1Collision, Auto Techcelerators Partner 1Collision and Auto Techcelerators, LLC have announced a partnership where Auto Techcelerators will provide consulting, software, mobile apps and training to help 1Collision affiliate locations open and operate ADAS service and calibration businesses. 1Collision affiliates will now have access to advice, training, software, mobile apps and other solutions that will help them launch and operate a profitable ADAS services and calibration business in their local markets. The agreement provides support for site identification and preparation, equipment selection, software and mobile apps that identify ADAS systems, components and required calibrations to managing their calibration businesses and documenting, invoicing and validating all aspects of the calibration process.

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Porsche to Replace 1,000-Plus Cars Lost on Sunken Cargo Ship by Anthony Alaniz, Motor1.com

In February, the Felicity Ace, a cargo ship on its way from Germany to the U.S., caught fire before sinking March 1. It also took around 4,000 VW Group cars with it to the bottom of the ocean. Lamborghini had to restart Aventador production to replace the 15 cars it lost on the ship, and now Porsche has announced it plans to replace the more than 1,000 vehicles it lost too, according to a new Autocar report. Porsche CEO Oliver Blume relayed the news to reporters during the company’s annual results call. Blume said it is “up to us” to replace the vehicles, which won’t be an easy task as the brand faces significant supply chain issues and semiconductor shortages like the rest of the auto industry. Neither situation will help Porsche, though the company is hopeful. Blume added Porsche is “used to working with challenges over the last two years.” Blume didn’t provide a timeline for when customers would receive their replacement vehicles, nor did Blume specify the models lost. We know Lamborghini lost 15

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Aventador Ultimae models, though the cargo ship was also transporting Urus SUVs and Huracan supercars. Lamborghini lost 85 vehicles in the incident. VW Group dealers began notifying affected customers in February, with estimates suggesting the lost cars were worth more than $401 million. Bentley, Audi and VW also lost vehicles on the ship. Audi has already announced it will build an extra 1,800 vehicles to compensate for the loss, while Bentley plans to replace half of the 189 vehicles it lost on the ship. Bentley plans to replace the other half of missing cars by the end of this year. There had been hopes that the ship was recoverable, with a large salvage vessel towing the cargo ship to a safer area; however, that didn’t happen. The ship’s extensive damage could not withstand rough weather, dooming the ship. The ship now rests two miles below the ocean’s surface in international waters. The incident happened 220 nautical miles off the coast of Portugal’s Azores Islands in the North Atlantic. It’s unclear who will salvage the ship now.

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General Motors is expediting GMC Hummer EV production after receiving more than 65,000 reservations. “Production’s actually slightly ahead of plan, and we’re putting things in place now to actually expedite that as well, so we can deliver these reservations quicker than we originally thought. We’re seeing momentum building,” Duncan Aldred, GMC’s global vice president, told CNBC. He also said GMC Hummer EV reservations had exceeded expectations. Once again, the demand for electric vehicles remains strong. Ford was in a similar situation with the Mustang Mach-E. Aldred said about 95% of people are converting their Hummer EV reservations into orders, a much higher number than GM expected. Unfortunately, he estimated the company will not be able to fulfill new Hummer EV pickup orders until 2024. Meanwhile, the Hummer EV SUV is expected to arrive in 2023. “What we’re looking at now is how can we build the maximum

amount and how can we deliver, fulfill these reservations as quickly as possible? We’re doing all the studies on that, and we’re confident we can go a lot quicker than we originally thought, but it still means a reservation now probably means delivering in ’24,” said Aldred. GM has invested billions in transitioning from an internal combustion engine producer to an electric vehicle manufacturer. The legacy automaker plans to build most of its EVs at Michigan’s Orion and Factory ZERO facilities. The Orion plant is expected to produce up to 360,000 EVs per year by 2025, while Factory Zero could make up to 270,000 units by mid-decade. GM unveiled the Hummer EV SUV after the pickup version. Megan Hart, assistant marketing manager for the Hummer EV, noted newer reservations seemed evenly split between the SUV and pickup truck versions. In December 2021, GMC announced Factory ZERO had already produced the first 2022 Hummer EV pickup trucks. The announcement kicked off customer deliveries.

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CDK Global Supports ASE Foundation

See The Tesla Cybertruck’s Rear-Wheel Steering Feature in Action by Dan Mihalascu, InsideEVs

CDK Global has expanded its support of the ASE Education Foundation with a second donation of $20,000 to provide technician toolboxes to aspiring automotive students with a demonstrated need. This donation is in addition to the CDK donation announced earlier in March that will support the foundation’s diversity, equity and inclusion program. Data shows 94% of students who focus on a CTE (Career and Technical Education) course of study graduate from high school on time versus 86% for other high school students, a result that holds true in low-income areas as well. For those students to start their first job, they need the basic tools of the trade. Even with a student discount, sets of starter hand tools can cost $1,000 to $2,000, and this can discourage otherwise promising students from pursuing automotive service careers before they even get started. Source: ASE

The Cybertruck was definitely the star of Tesla’s Cyber Rodeo event held April 7 at Gigafactory Texas in Austin.

It even got some time on stage next to CEO Elon Musk after Franz von Holzhausen drove it up there in a moment that reminded everyone of the Cybertruck’s November 2019 launch. This time, Tesla’s design boss refrained from throwing any metal balls at the pickup’s windows, though. Cyber Rodeo attendees got to see some of the electric truck’s updated features, including the doors that no longer feature any handles, the retractable rear glass, the side view cameras located in

the plastic cladding around the front wheels, as well as a charging port on one of the fenders. Visitors also got a chance to look at the interior, but there was nothing to write home about as the prototype didn’t feature a production-ready cabin. For example, the yoke sourced from the Model S and Model X did not feature an airbag and many of the parts were not in final production spec. But there was something special some of the people who kept a close eye on the Cybertruck got to witness at one point: the rearwheel steering feature. While this wasn’t an extensive demo, a video from Cybertruck Owners Club clearly shows the Cybertruck prototype’s rear wheels turn in the opposite direction of the front wheels. This feature will obviously come in handy during low speed maneu-

vers, helping to shorten the pickup’s turning radius and therefore making parking maneuvers easier. Rear-wheel steering is a necessary feature on a vehicle with a longer wheelbase than the Ford F-150. We’ve seen the difference it makes in terms of maneuverability on a massive vehicle like the GMC Hummer EV, although it remains to be seen whether Tesla will go the extra mile and offer something similar to the CrabWalk feature. Musk first announced the Cybertruck’s rear-wheel steering feature last year on Twitter. During the grand opening of Tesla’s new factory in Austin, Musk confirmed production of the Cybertruck would begin there in 2023, likely at the beginning of the year. The electric pickup was originally supposed to enter production in late 2021 and was later postponed to late 2022. Here’s hoping we won’t see another delay and Tesla will start making the Cybertruck in early 2023.

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CONNECTICUT

NEW JERSEY

NEW YORK

Lia Volkswagen Enfield

Flemington Volkswagen Flemington

Hudson Valley Volkswagen Wappingers Falls

860-698-6890

877-NJPARTS 877-657-2787

845-298-2365

Fax: 860-265-7840 M-F 8am-5pm; Sat 8am-12pm aguimaraes@liacars.com

MARYLAND Ourisman VW of Rockville Rockville

855-417-4511 Fax: 240-499-2488 M-F 8am-5:30pm; Sat 8am-5pm rockvilleparts@ourismanautomotive.com

www.rockvillevolkswagen.com

MASSACHUSETTS Volkswagen of North Attleboro North Attleboro

508-695-7131 Fax: 508-695-0321 M-F 8am-5pm; Sat 8am-2pm kenr@driveavw.com www.driveavw.com

Fax: 845-224-3686 M-F 7:30am-5pm; Sat 8am-5pm

Fax: 908-782-1795 M-F 7:30am-5pm www.njparts.com

billsantoro@thepremiercollection.com

Open Road Volkswagen of Bridgewater Bridgewater

516-822-4800

908-685-1068 Fax: 908-685-1547 M-F 7:30am-5pm; Sat 8am-3pm vwb.parts@openroad.com www.openroadvwparts.com

Paul Miller Volkswagen Bernardsville

908-360-1162 Fax: 908-766-6171 M-F 8am-5pm; Sat 8am-4pm aaitchison@paulmiller.com www.paulmillervw.com

Platinum Volkswagen Hicksville Fax: 516-822-4831 M-F 7:30am-5:30pm parts@platinumvw.com www.platinumvw.com

PENNSYLVANIA Ciocca Volkswagen Allentown

610-791-4177 Fax: 610-289-7016 M-F 8am-5pm; Sat 8am-4pm cioccavwparts@cioccadealerships.com

autobodynews.com / MAY 2022 AUTOBODY NEWS 67

68 MAY 2022 AUTOBODY NEWS / autobodynews.com

May 2022 Northeast Edition

Articles inside

Appealing as Gas Prices Soar: Report

Major Concerns in 2022

Their Recycled Ride

CCC Launches Integration with asTech

Auto Body Shops’ To-Do Lists

Weld Testing

Approximately $600,000

Drivers Involved in Hit-and-Run Crashes

Floor, Full Classes

Owners Through Life-Changing Decisions

Camaro Production Stopped

Educational Conference

Repairify Completes Record Scans

Bill