Autobody News June 2011 Northeast Edition

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Allstate Will Buy Esurance and Answer Financial In a bid to capture more business from customers who shop online, Allstate Corp. has agreed to buy two popular online insurance sellers—Esurance and the associated site, Answer Financial. Allstate will pay a total price of about $1 billion– $700 million plus the tangible book value of the two firms acquired at close.

Esurance is the third-largest provider of online auto insurance quotes through its website and a 24/7 call center. It sells in 30 states. Over the past five years, Esurance has more than doubled policies in force and grown premiums on average 20 percent per year, according to the company, which advertises heavily. It also

sells other personal lines coverages.

Answer Financial provides auto insurance quote comparisons from 20 brand-name auto insurance companies to buyers in all 50 states. The carriers it represents include Esurance, Travelers, Progressive, Safeco, Met Life Auto & Home, Unitrin and The Hartford. In July, it reported having 324,000 policies in force.

Alltstate is buying the firms from White Mountains Insurance Group, Ltd., a Bermuda-domiciled financial services holding company with interests in property/ casualty insurance and reinsurance, including OneBeacon.

Tornadoes ripped across the southeast portion of the US brought destruction in April and May. States

and Arkansas, and now Missouri. Alabama was the hardest hit in April with over half of the fatalities. As of end of April 28 the confirmed death toll was at least 250, but that will rise as of the May 22 Joplin monster tornado.

“It looked like it was probably a mile wide,” Birmingham, AL, Mayor William Bell said of the funnel cloud to CNN. Tuscaloosa, AL, mayor Walter Maddox predicted it would take months for the town to recover.

President Barack Obama had already expressed condolences by phone to Alabama Gov. Robert Bent-

See Allstate Buys Esurance, Page 32

Tornadoes Devastate South, Halting Local Automakers’ Plants, Inundating Insurers

See storm video at autobodynews.com

hardest hit were Alabama, Mississippi, Tennessee, Georgia, Virginia

See Tornadoes, Page 50

VOL. 1 ISSUE 3 JUNE 2011

Array of Collision Associations Serve New York Regionally and Statewide

by David M. Brown Special to Autobody News

New York is well represented by regional and statewide collision associations. The largest is the Centereach, NY-based New York State Auto Collision Technician Association with 1,500-plus members, including small and large shops, industry-related businesses and 10 regional collision-repair associations.

These regional affiliates represent shops in Greater Binghamton; Syracuse; Rochester/Buffalo; the Capital District, in the Albany area; Rome-Utica; Greater Newburgh; and the Hudson Valley.

Another NYSACT affiliate, The Westchester-Putnam-Rockland Auto Body Association, also serves

SPECIAL INSERT

Duchess County and the Bronx. Two others are the Long Island Auto Body Repairmen’s Association (LIABRA) and the Autobody Craftsmen’s Guild covering the five boroughs of New York City.

Founded in 1982, NYSACT is guided by Executive Director Ed Kizenberger and an elected board of directors led by a president, currently Mike Orso, owner of Nick Orso’s Body Shop and Service Center in Syracuse. Staff also includes legal counsel and a legislative lobbyist.

The organization influences and effects state legislation through its lobbyist as well as with grass roots approaches such as members’ letters and e-mails to representatives and other public relations efforts. “We See NY Collision Assns, Page 13

Shop and Product SHOWCASE

REGIONAL STORIES in this issue...

New York is in an Auto Accident Fraud Crisis . . . . . . . . . . . . . . . .p. 4

Mercedes-Benz USA Ranked One of Best Places to Work in NJ . .p. 4 2,500 Drivers Cited in DE Since Cell Phone Ban Began . . . . . . . .p. 8

Philly Shop Owner, Lawyer, Appraisers, and Cop Charged . . . . .p. 9

New Jersey DOBI Releases Complaints Against Insurers . . . . . .p. 10

COLUMNS in this issue...

Franklin — Focusing Marketing Efforts . . . . . . . . . . . . . . . . . . . . .p. 14

Danalevich — Total Loss Fees Are Profits to be Gained . . . . . . .p. 18

Yoswick — Industry Trends and Changes in Future Vehicles . . .p. 22

Espersen — The Value of Service Repair Information . . . . . . . . .p. 28

Weaver — Shift Happens: The Story of Three Transmissions . . .p. 29

Insurance Insider — Allstate Deserves Credit for DRPs . . . . . . .p. 30

Chess — Getting OSHA-Compliant Part 2 . . . . . . . . . . . . . . . . . . .p. 36

Amaradio — The Good Old Days . . . . . . . . . . . . . . . . . . . . . . . . . .p. 42

Evans — Repairing Quarter Panel, Bumper, and Molding . . . . . .p. 48

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2 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Contents NATIONAL AASP Awards Grants to NABC and Auto Education Institute . . . . . . . . . . . . . . . . 14 AkzoNobel to sell all 40 Company-owned Distributors of Sikkens, Lesonal, U-Tech, to LKQ Corp. . . . . . . . . . . . . . . . . . . . . 25 Allstate Will Buy Esurance and Answer Financial . . . . . . . . . . . . . . . . . . . . . . . . 1 Americans Oppose Accident Response Fees . . . . . . . . . . . . . . . . . . . . . . . . . . 39 ARA, Congress to Ensure Flood Damaged Vehicles Don’t Enter Used Market . . . . 46 ASA Announces its 2011 Government Affairs Committee . . . . . . . . . . . . . . . . 20 ASA Announces its Collision Operations 2011 Committee . . . . . . . . . . . . . . . . . 20 ASA Discusses New Refinish Regulation with EPA Officials. . . . . . . . . . . . . . . . . 20 Auto Glass Replacement Safety Standards Council Promotes Fixing Damaged Windshields. . . . . . . . . . . . . . . . . . . . . 49 Boyd Group Reports Strong 1Q Numbers, Sales Up 48.5% . . . . . . . . . . . . . . . . . 50 CCC Announces 2011 Crash Course in April. . . . . . . . . . . . . . . . . . . . . . . . . 21 Chrysler Will Repay All Govt Bailout Loans this Year . . . . . . . . . . . . . . . . . . . . . . . 39 CIF Makes Donation to Japan Tsunami Relief. . . . . . . . . . . . . . . . . . . . . . . . . . 21 Farmers Insurance’s New DRP Changes Upset Some Owners . . . . . . . . . . . . . . 25 Fix Auto USA Adds Five Franchise Locations In Q1 2011 . . . . . . . . . . . . . . . . . . . . . 20 Ford Has Located Replacement for MerckSupplied Japanese Paint Component . . 43 GA Auto Repair Tax Bill Still Alive in House . 50 GEICO & CREF Award Grants to Four Auto Body Students . . . . . . . . . . . . . . . . . . . 33 Gerber Collision and Glass Acquires Georgia Shop. . . . . . . . . . . . . . . . . . . . 24 GM to Invest $131 Million at Bowling Green, KY, Plant . . . . . . . . . . . . . . . . . . 24 Gunder Supporters Release Infinity Insurance’s Voice Recordings, Insurer Apologizes. . . . . . . . . . . . . . . . . . . . . . 40 Infinity Insurance Apologizes for Gunder’s Auto Center Customer Recordings . . . 41 National Average for Body and Paint Labor Rates Up Only Modestly Since 2006 . . 28 SEMA Show Registration for Exhibitors is up Over Last Year. . . . . . . . . . . . . . . . . 25 Sherwin-Williams’ Next Ecolean Workshop in Toronto, June 22 . . . . . . . . . . . . . . . 33 State Farm to Phase out 24 Field Offices in Midwest. . . . . . . . . . . . . . . . . . . . . . 33 Toyota Profits Dive in 4th Qtr After Severe Supply Problems . . . . . . . . . . . . . . . . . 33 Xirallac® Pigment Plant to Relocate from Japan to Germany Following Tsunami . 41

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

Northeast

COLUMNISTS Amaradio - The Good Old Days . . . . . . . . 42 Chess - Getting OSHA-Compliant on Signage, Electrical and Power Tools . . . 36 Danalevich - Total Loss Fees Are Profits to be Gained, Not Given Back. . . . . . . . 18 Espersen - The Value of Service Repair Information . . . . . . . . . . . . . . . . . . . . . 28 Evans - Repairing Quarter Panel, Bumper, and Molding: No Time, No Money . . . . 48 Franklin - Focusing Marketing Efforts on a Narrow Demographic Yields More Results . . . . . . . . . . . . . . . . . . . . . . . . 14 Insurance Insider - Allstate, Founder of DRPs, Deserves Some Credit for Improving Repair Industry . . . . . . . . . . 30 Schroeder - The Body Shop Garage Opens in Woodward, Oklahoma . . . . . . . . . . . 34 Sisk - Great Bear Auto Teaches Customers What They “Auto Know”. . . . . . . . . . . . 35 Sisk - Keenan Cares About Cars, Charity and Environment, Part 2 . . . . . . . . . . . 47 Weaver - Shift Happens: The Story of Three Transmissions and a Limp Kia SUV . . . . . . . . . . . . . . . . . . . . . . . . 29 Women’s Industry Network Conference Held in San Diego . . . . . . . . . . . . . . . . 44

Yoswick - Industry Trends and Changes in Future Vehicles at WIN Conference. . . . 22

Indexof Advertisers

REGIONAL 2,500 Drivers Cited in DE Since Cell Phone Ban Began . . . . . . . . . . . . . . . . . . . . . . 8 AASP-PA Golf Classic to be Held June 10 at Honey Run. . . . . . . . . . . . . . . . . . . . 12 Array of Collision Associations Serve New York Regionally and Statewide . . . . 1 Auto Insurance Fraud in NY Remains at Crisis Levels, ‘Fraud Tax’ Exceeds $200 Million for Second Year . . . . . . . . 8 Brooklyn DA Takes on City’s Insurance Fraud. . . . . . . . . . . . . . . . . . . . . . . . . . 10 DOBI Releases List of Complaints Against NJ Insurers . . . . . . . . . . . . . . . . . . . . . 10 Mercedes-Benz USA Ranked One of Best Places to Work in NJ . . . . . . . . . . . . . . . 4 New Jersey Body Shop Owner Sentenced to Three Years . . . . . . . . . . . . . . . . . . . 12 New York is in an Auto Accident Fraud Crisis, NY Insurance Association to Testify at Senate Hearing . . . . . . . . . . . . 4 NJ Man Sentenced for Setting Aunt’s Car on Fire . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Northeast Insurers Say Winter Storms Hurt Q1 Profits . . . . . . . . . . . . . . . . . . 10 NY Senators Push to Toughen Texting Laws . 8 PA Moves Graduated Licensing Proposal Forward . . . . . . . . . . . . . . . . . . . . . . . . 8 Philadelphia, PA, Body Shop Owner, Manager, Lawyer, Appraisers, and Cop Charged with Insurance Fraud Scheme. . . . . . . . . . . . . . . . . . . . . . . . . 9 Tornadoes Devastate South, Halting Local Automakers’ Plants, Inundating Insurers. 1

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.

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Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Amato Agency . . . . . . . . . . . . . . . . 22 APRO Equipment . . . . . . . . . . . . . . . 4 Autoland Scientech. . . . . . . . . . . . . 29 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 40 Burdick Chevrolet . . . . . . . . . . . . . . 25 Classifieds. . . . . . . . . . . . . . . . . . . . 50 Chief Automotive. . . . . . . . . . . . . . . 21 Circle BMW . . . . . . . . . . . . . . . . . . . . 8 Equalizer Industries . . . . . . . . . . . . 32 Ford Wholesale Parts Dealers . . . . 30 Franklin Sussex Automall . . . . . . . . 12 Fred Beans Parts . . . . . . . . . . . . . . 52 Fuccillo Auto Group. . . . . . . . . . . . 6-7 Fuccillo Kia . . . . . . . . . . . . . . . . . . . 14 Global PDR . . . . . . . . . . . . . . . . . . . 31 GM Wholesale Parts Dealers . . . . . 35 Hyundai Wholesale Parts Dealers . 37 Jaguar Wholesale Parts Dealers. . . 44 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 43 Koeppel VW-Mazda . . . . . . . . . . . . 13 Lazare Kia . . . . . . . . . . . . . . . . . . . . 19 Lexus Wholesale Parts Dealers . . . 40 Manhattan Automobile Company. 16-17 Maxon Mazda-Hyundai. . . . . . . . . . 18

Mazda Wholesale Parts Dealers . . . 39 Mercedes-Benz Wholesale Parts Center. 9 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 32 Metric Subaru . . . . . . . . . . . . . . . . . 34 MOPAR Wholesale Parts Dealers . . 23 NACE / CARS Registration . . . . . . . 51 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 43 Nucar Mazda. . . . . . . . . . . . . . . . . . 11 Porsche Wholesale Parts Dealers . 45 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Prince & Portnoi . . . . . . . . . . . . . . . 34 Quality Stainless Products . . . . . . . 10 SATA Spray Equipment . . . . . . . . . 24 Scion Wholesale Parts Dealers. . . . 46 Scorpion Coatings . . . . . . . . . . . . . 33 Stadel Volvo . . . . . . . . . . . . . . . . . . 36 Subaru Wholesale Parts Dealers DE, NJ, PA . . . . . . . . . . . . . . . 26-27 Subaru Wholesale Parts Dealers . . 42 Thompson Organization . . . . . . . . . 15 Toyota Wholesale Parts Dealers . . . 38 VIM Tools. . . . . . . . . . . . . . . . . . . . . 48 Volkswagen Wholesale Parts Dealers. 5 Volvo Wholesale Parts Dealers . . . . 20

www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 3

New York is in an Auto Accident Fraud Crisis, NY Insurance Association to Testify at Senate Hearing

Immediate reform of New York’s fraud-riddled no-fault automobile insurance system is needed to stop criminals from cheating the state’s citizens out of hundreds of millions of dollars a year, says the New York Insurance Association, Inc. (NYIA).

In testimony prepared for delivery April 26 at the New York State Senate Insurance Committee regarding no-fault auto insurance fraud, Ellen Melchionni, president of NYIA, identifies how the broken no-fault auto laws are forcing New Yorkers to paying for the fraudulent activities of criminals. Costs are spiraling out of control because bogus medical mills and unscrupulous medical providers, predominantly in the New York City area, are billing for treatments that were never performed, unnecessary or excessive.

“Criminals are committing rampant fraud, imposing a ‘fraud tax’ on honest, hardworking New Yorkers,” Melchionni said. “Meaningful, comprehensive reform of the laws is nec-

essary to fix the broken system that criminals are blatantly exploiting for their personal gain. There is not a silver bullet to solve this problem. Auto accident fraud is a moving target.

The state needs to be vigilant in fighting this vast problem and cracking down on criminals who have created a ‘big business’ of fraud to cash in at the expense of New York residents.”

“NYIA supports the substantive reform introduced by Sen. James Seward and Assemblyman Joseph Morelle, S2816A/A6286,” Melchionni said. “This bill contains numerous remedies including giving insurance carriers adequate time to investigate fraud, encouraging efficient and fair settlement of disputes and creating tougher penalties for fraud.”

“NYIA also supports two bills that would help stop staged auto accidents,” Melchionni said. “We believe the majority of staged accidents occur during the first 60 days of a newly issued policy. Sen. Martin Golden and

Mercedes-Benz USA Ranked One of Best Places to Work in NJ Mercedes-Benz USA (MBUSA) announced April 27 that for the second consecutive year, it has been ranked one of the “Best Places to Work in New Jersey” according to NJBIZ Magazine. This award was designed to identify, recognize and honor the best places of employment in New Jersey, benefiting the state’s economy, its workforce and businesses.

The award program, created in 2005, is produced by NJBIZ and sponsored by Gibbons, P.C. and Novo Nordisk and is in partnership with Garden State Council SHRM, The New Jersey State Chamber, Employers Association of New Jersey and the New Jersey Economic Development Authority.

In its second year as an entrant, MBUSA’s 2011 ranking of No. 6— up from No. 7 last year—is the sole automaker on the list and is part of the large sized category (more than 250 employees).

“MBUSA has a long tradition of doing business in the Garden State and we thank our associates for their commitment and dedication that has led to continued success—both here at our headquarters in Bergen County and our regional offices in Parsippany and Robbinsville,” stated Ernst Lieb, President and CEO, MBUSA. “To achieve this accolade in a recovering

economy is a true statement of how unified we are, working together to inspire our entire organization and deliver the dream that customers associate with the Mercedes-Benz brand.”

The Best Places to Work in New Jersey program is made up of 70 companies split into two groups: 29 small/medium-sized companies (15249 employees) and 41 large-sized companies (more than 250 employees).

To qualify, companies had to fulfill the following eligibility requirements: •Have at least 15 employees in New Jersey; •Be a for-profit, not-for-profit or government entity; •Be a publicly or privately held business; •Have a facility in New Jersey; Companies from across the state entered the two-part process to determine the 70 Best Places to Work in New Jersey. The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. For more information please visit: www.njbiz.com/events.

4 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Assemblyman Carl Heastie have introduced S4507/A6346A, which would allow insurers to cancel new policies purchased with phony checks or credit cards—minimizing the opportunity for fraud. Another piece of legislation, S1685 sponsored by Sen. Seward, was passed in the Senate and now needs to be taken up in the Assembly by passage of A6177 sponsored by Assemblyman David Weprin, to create a necessary deterrent for criminals who prey on innocent motorists by staging car crashes.”

“If there is not comprehensive reform, we are concerned that the present crisis will become progressively worse, leading to a system that is not only broken, but beyond repair,” Melchionni said.

The New York Insurance Association (NYIA®) is a state trade association that has represented the property and casualty insurance industry for more than 125 years.

For more information visit: www.nyia.org.

NJ Man Sentenced for Setting Aunt’s Car on Fire

A Vineland, N.J., man was sentenced to state prison for five years after being convicted of setting his aunt’s automobile ablaze so that she could collect insurance proceeds. Kristopher Wynder, 21, pleaded gulity to second-degree conspiracy to commit aggravated arson Feb. 16 before Superior Court Judge Darrell Fineman, according to the New Jersey Attorney’s Office.

Wynder admitted that between July 28 and Aug. 4, 2008, he conspired with his aunt, Cheryl Wynder, to obtain her 2002 Ford Explorer, take it to a remote location in Vineland, and set fire to the vehicle so that Cheryl Wynder could collect insurance proceeds for the vehicle, that she reported stolen. Wynder admitted that he entered into the conspiracy since his aunt was behind in her payments. Wynder admitted he was also paid $500. Cheryl Wynder was fined $13,531.

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www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 7

Pennsylvania Moves Graduated Licensing Proposal Forward The Pennsylvania House Transportation Committee gave its approval on May 3 to House Bill 9, which would impose stricter driving and licensing restrictions for 16- and 17-year-old drivers.

The state currently requires drivers under the age of 18 who are testing for a junior driver’s license to have 50 hours of supervised “practical driving experience.” The bill would bump up that amount to 65, with at least 10 of those hours being at night and with at least five being in “inclement weather.”

The bill would also put passenger restrictions on licensed young motorists.

If the bill is ultimately signed into law, these drivers would not be able to have more than one passenger under the age of 18 with them in the car without parental approval.

Please visit www.autobodynews.com for background on this program.

NY Senators Push to Toughen Texting Laws

Texting while driving laws in New York may get an upgrade in the coming weeks. Senate Republicans have stated they will push legislation that would allow police to stop and ticket motorists solely for texting while driving.

Using a portable electronic device while at the wheel of a moving vehicle in New York is currently a secondary offense, which means that a person can’t be pulled over for using the device alone. Instead, it must be tacked on to another primary offense.

Legislation sponsored by a dozen Republicans, who currently have majority control of that chamber, would upgrade it to a primary offense.

A group of Senate Democrats have also introduced a similar bill. A companion measure is pending in the Assembly.

Please visit www.nysenate.gov for more information.

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Auto Insurance Fraud in NY Remains at Crisis Levels, ‘Fraud Tax’ Exceeds $200 Million for Second Year Allstate respondedApril 26 to the Insurance Information Institute’s (III) announcement that fraud and abuse in New York State’s no-fault auto insurance system remains at crisis levels. III also revealed the estimated ‘fraud tax’ that New Yorkers paid in 2010 was $204 million—an amount exceeding $200 million for the second consecutive year.

The New York State Senate Insurance Committee is holding a hearing on April 26 to examine the issue more closely.

Krista Conte, New York spokesperson for Allstate Insurance Company, said in response to the III announcement: “We agree with the Insurance Information Institute that the scale of fraud and abuse in New York State’s no-fault auto insurance system today has reached crisis levels. Not only is no-fault fraud (auto accident fraud) costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk.

“Those who would commit this type of crime are taking advantage of the broken no-fault system and they are organized, calculating and part of a big business. In essence, the perpetrators of this crime are imposing a ‘fraud tax’ on honest, hard working

New Yorkers by gaming the auto insurance system.

“Without the support of lawmakers, incidents of fraud will continue to increase. Responsible citizens are the victims. We urge lawmakers to enact comprehensive, meaningful no-fault insurance reform that puts citizens of New York first.”

2,500 Drivers Cited in DE Since Cell Phone Ban Began

More than 2,500 drivers have been cited since Delaware’s hands-free cell phone law went into effect at the beginning of 2011, according to the Delaware Office of Highway Safety.

Office spokeswoman Alison Kirk says more than 350 people were issued cell phone citations in one day during a statewide crackdown on April 21. She says there have been 30 crashes involving cell phones as a distraction since the ban went into effect.

Cell phone users caught talking on their phones can expect a $50 ticket for their first offense. Subsequent offenses can result in fines from $100 to $200.

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Philadelphia, PA, Body Shop Owner, Manager, Lawyer, Appraisers, and Cop Charged with Insurance Fraud Scheme Eleven people have been arrested in connection with an insurance fraud scheme allegedly involving University Collision Centers of Philadelphia.

A Philadelphia police officer, a personal injury lawyer, seven auto damage appraisers and the owner and the manager of a Philadelphia collision repair shop have been charged in an insurance fraud scheme prosecutors say netted them millions over four years, according to reports made by Joseph A. Slobodzian, of the Philadelphia Inquirer.

Prosecutors are alleging a forklift was modified by attaching one of three types of car bumpers to the tongues to create a variety of scrapes, dents and tears on automobiles. City prosecutors allege that University Collision workers would then report the damages to insurance companies for inflated payouts.

Philadelphia District Attorney Seth Williams and Deputy Police

Commissioner Richard Ross announced the filing of felony charges against 11 people, who allegedly worked together to file numerous fraudulent insurance claims, at a Center City news conference.

The charges are the result of a lengthy undercover probe by the DA’s Insurance Fraud Unit (IFU) with assistance from Nationwide Insurance Co., GEICO Insurance Co. and the National Insurance Crime Bureau.

“This is not a victimless crime,” Williams said. “All Philadelphia consumers are affected.”

Among the 11 charged as a result of the 13-month undercover investigation of University Collision Centers by the DA’s Insurance Fraud Unit were: ● Philadelphia police officer Gary Cottrell, 44, a 15-year veteran of the force assigned to the 14th District in Germantown and Chestnut Hill. Cottrell allegedly was a “wreck chaser” who traveled throughout the city in

uniform to direct accident victims to University Collision. A spokeswoman for the police noted that Cottrell had been suspended for 30 days with intent to dismiss. Cottrell faces a maximum of 152 years incarceration. Deputy Police Commissioner Richard Ross said corrupt officers are a minority of the 6,000-member department: “It’s very sad that all the other men and women on the force have to deal with this.” ● Michael Wolf, 52, of Phoenixville, Chester County, a lawyer with a Philadelphia practice.

Wolf allegedly advised University Collision’s owner in the fraud and also filed several phony personal injury claims with them. Wolf is a lawyer who has been licensed in Pennsylvania since 1988, and works at the firm of Kotsopoulos & Wolf P.C. They have offices in King of Prussia and Cherry Hill. He allegedly faces 103 years in prison. ● Edward Hildebrandt, 41, of Philadelphia, owner of University

Collision, with operations in Gray’s Ferry and Manayunk. ● David Coleman, 41, of Chadds Ford, Chester County, identified as manager of University Collision.

The seven vehicle damage appraisers included four from Philadelphia: Arthur Juliano, Addaie Amankwaaw, Cheryl Stanton, and Steve Wilkinson. The others were from South Jersey: Dave Robertson and John Howell, both of Cherry Hill, and Richard Reilly of Mullica Hill,Vicki Markovitz, an Assistant District Attorney, noted that the damage appraisers were independent and reviewed claims for most major insurance companies.

All the defendants ware charged with corrupt organization, dealing with unlawful proceeds, insurance fraud, theft, and conspiracy. Except for Wolf and Coleman, all were also charged with bribery.

Williams said his office was contacted in February 2010 by State Farm Insurance Co. about the opera-

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tions at University Collision Centers.

The undercover investigation showed that the collision centers were “enhancing and creating damage” to vehicles brought to them for repair to justify inflated insurance claims, Williams said.

The University Collision operation worked with the appraisers, who allegedly inflated damage appraisals in exchange for cash kickbacks, Williams said.

University Collision Center remains open, with Augenbraun saying that it would likely continue in business during the prosecution and the trial in order to maintain some assets for victim restitution. He also said the company is being monitored, and that the forklift and other devices were seized by police.

The insurance fraud unit is said to have launched an undercover investigation which the help of a decoy car provided by Nationwide Insurance and National Insurance Crime Bureau, and a decoy insurance policy provided by GEICO. Assistant District Attorney

David Augenbraun, of the Insurance Fraud Unit, said Cottrell allegedly pocketed 20-percent cash kickbacks for each customer he directed to University Collision and also filed false damage claims for some of his own cars. Although investigators are still working to estimate the amount of the operations illegal proceeds, Augenbraun said some of the kickbacks paid were as high as $1,000.

Augenbraun noted that forthcoming arrests are likely, and will probably include customers who knowingly allowed false claims to be filed. “The customers may not feel like victims,” Augenbraun said, “but if they are caught, they will be in very substantial trouble.”

Northeast Insurers Say Winter Storms Hurt Q1 Profits Heavy winter storm activity has taken its toll on motorists and homeowners in the northeastern United States. Pennsylvania-based insurer Harleysville said the effects of severe winter storms over the area in the last few months will hurt its fourth quarter profits.

“We experienced unusually severe winter weather throughout much of the Mid-Atlantic and Northeast, especially in New England and New York,” said CEO Michael Browne, according to Insurance Journal. “The number of events— coupled with their frequency and closeness to one another in time— combined to produce elevated catastrophe and non-catastrophe claims activity throughout commercial and personal lines. We saw an abnormal

increase in water damage, ice dams, roof collapses and fire losses in property, automobile claims, and weatherrelated casualty losses.

“This extreme weather resulted in significant disruption and financial loss for a large number of our policyholders,” he added.

Catastrophe losses will reduce operating income by $0.21 per share.

Harleysville said its combined ratio will reflect significant winter losses not meeting the catastrophe definition, as well as 4.5 points of catastrophe losses for the quarter. In the same quarter, one year-ago, Harleysville has statutory combined ratio of 107.8, which included 10 points of catastrophe losses. Both years’ catastrophe losses exceed the company’s longterm average.

into a multimillion-dollar-a-year criminal enterprise,” said Hynes, standing with state lawmakers sponsoring a tough anti-insurance-fraud bill, according to reports made by the New York Post.

New Yorkers pay one of the highest auto-insurance premiums in the nation and accident fraud has added nearly $1 billion in premium charges since 2005,

according to insurance executives.

Fraudulent insurance claims leave all claimants footing the bill for these false pay-outs the insurance company pays to criminals.

Even if caught, most consumers and insurance companies have a difficult time ever seeing the fraudulently obtained money returned.

Brooklyn DA Takes on City’s Insurance Fraud

Brooklyn DA Charles Hynes announced on May 3 that he would back efforts to stop the $200 million-a-year auto-insurance fraud “industry” in the state of New York.

Fraudulent accident claims often occur when someone stages a phony accidents that leave bystanders badly injured.

“The ‘fraud industry’has ballooned

DOBI Releases List of Complaints Against NJ Insurers The state Department of Banking and Insurance published their annual complaint list again in April—the list details the number of legitimate consumer complaints lodged against each insurer.

Of New Jersey’s 32 auto insurers, nine scored highest on the 2010 list with no “valid complaints,” a term defined as either a violation of state insurance rules or laws, or a consumer controversy that “should have been resolved by the insurer without department intervention.”

Of the nine, two of the state’s six biggest auto insurers were singled out for DOBI’s best ratings based on the ratio of valid complaints to vehicles insured, according to NewJersey.com.

New Jersey Manufacturers Group of West Trenton was listed highest because it received no valid complaints among the 804,801 vehicles it insures.

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Heights was second with no valid complaints out of 229,366 vehicles.

The other seven were Esurance of New Jersey (57,538 vehicles insured), IDS Property Casualty (30,796), Farm Family Casualty (21,316), Chubb of New Jersey (16,975), Founders (13,613), Electric (10,755), and Bankers Standard (10,103).

Besides New Jersey Manufacturers and Palisades Group, here are complaint figures for the four other largest auto insurers:

• AllState (44 out of 676,903 cars insured) • GEICO (19 of 734,466) • State Farm (11 of 536,400) • High Point (1 of 358,147) DOBI gave its worst scores to Personal Service Insurance Co. (3 out of 13,627) and IFA Insurance (6 out of 34,955).

For more information please visit www.state.nj.us/dobi.

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New Jersey Body Shop Owner Sentenced to Three Years A New Jersey auto body repair shop owner was sentenced to three years in prison May 5 and ordered to pay more than $16,000 in restitution for an auto repair insurance scam that prosecutors say he ran from April 2005 to July 2006.

Robert Buckingham, of Hamilton, owner of Robert Christopher Collision, an auto body repair facility which does business on Kuser Road in Hamilton Township, pleaded guilty to second-degree conspiracy to commit insurance fraud and theft by deception in March 2010, according to Trentonian.com.

The Office of Insurance Fraud said Buckingham allegedly billed insurance companies for auto repair work that he failed to finish; billed insurance companies for new parts when he used old parts; billed for replacement parts when he repaired damaged parts, and enhanced damage to cars brought to his shop so he could increase the amount of the insurance claim, according to the website.

The charge was contained in a July 17, 2007, state grand jury indictment.

Superior Court Judge Edward M. Neafsey in Mercer County sentenced Buckingham, who may also face civil insurance fraud fines.

In pleading guilty, Buckingham admitted that between April 2005 and July 2006, he conspired with employees of his company to over-bill insurance companies for the repair of five automobiles.

Buckingham admitted, for example, that he had the frame of a damaged 2004 Cadillac Escalade repaired by welding in a section but billed the insurance company, and was subsequently paid, for the full replacement of the frame.

In August 2008, one of Buckingham’s employees and co-defendants, Paul Failla, 55, of Morganville, pleaded guilty to theft by deception and was subsequently sentenced to two years probation conditioned on 180 days in county jail if he fails to satisfactorily complete probation.

In February 2009, another employee and co-defendant, Hector Henriquez, was admitted into the PreTrial Intervention program.

12 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Among the insurance companies to which false claims were allegedly submitted were New Jersey Manufacturers Insurance Company, Travelers Auto Insurance Company (formerly known as First Trenton Indemnity), Selective Insurance Company and Mercury Insurance Company.

As part of the investigation, a civil complaint seeking forfeiture of property owned and used by Robert Christopher Collision based on fraud was filed.

As a result, the court has ordered Buckingham and Robert Christopher Associates Inc. not to sell or otherwise transfer assets of the business or the real property used by the business.

The pending complaint seeks forfeiture of the assets and real estate from Buckingham and alleges that the property was used to commit the crimes alleged in the indictment.

AASP-PA Golf Classic to be Held June 10 at Honey Run

The Central Pennsylvania Golf Classic has returned.

Join the AASP-PA on Friday, June 10th at Honey Run Golf Club for a day of fun on the fairways.

Day-of Schedule: 7:00 am–7:45am Registration (Practice Area & Putting Green Available) 8:00 am Scramble Classic with Shot-gun Start 12:00 pm Lunch (Full Course Lunch Served) 1:00 pm Door Prizes, 50/50 Drawings and Awards The organization is asking all golfers to report to the golf course no later than 7:30 am.

The registration deadline is Friday, June 3, 2011.

Please make checks payable to: AASP-PA, and mail to 2151 Greenwood Street, Harrisburg, PA 17102 Visit www.aasp-pa.org for registration paperwork.

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Continued from Page 1

NY Collision Assns

have a full legislative program and enjoy broad-based bipartisan support in both the state assembly and senate in Albany,” explains Kizenberger, with two decades-plus in the collision industry.

“Our goal at the state capital is to support legislation that protects consumers and independent auto body shops from unfair claims practices,” notes Orso, who is elected by the board and conducts NYSACT regular meetings.

Toward that end, one of the group’s recent efforts has been to help create an advisory group comprising the state’s Department of Motor Vehicles, its Insurance Department, the insurance companies and the repair industry. The group also sponsors an annual Lobby Day, providing members an opportunity to speak individually with their legislators at the capital.

A fair and equitable marketplace for all collision repair professionals comes about as a result of education, Orso explains. “We are educating our

member shops to best serve their customers with safe proper repairs by elevating their awareness of liability,” he explains.

“Education also means keeping shops reminded as to who the ‘true customer’ is—the consumer,” he adds. “When shops understand the need to remain independent and not acquiesce in the whims of an insurance company, the consumer benefits, too.”

Kizenberger also heads the Long Island group. Founded in 1975, LIABRA is the oldest and largest trade association for collision repair professionals in New York, with 500 members, including shops, dealerships and other related businesses. Its shops are located from the Queens border along the north and south shores of Nassau and Suffolk counties to Montauk, 90 miles east.

The group is similarly administered as NYSACT, with an elected board of directors directed by an executive board, legal counsel and a lobbyist in Albany.

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Westchester-Putnam-Rockland Auto Body Association Harrison, N.Y.-based, WestchesterPutnam-Rockland Auto Body Association was founded in 1952 as the Westchester Auto Body Association and today comprises 100 body shops. Even 60-plus years ago, the shops realized that together they could better affect legislation and insurance company problems as well as exchange ideas and common problems, explains its executive director, Frank Ferraro.

Its mission emphasizes information dissemination and education: “to keep shop owners informed of the constant changes and technological developments in the auto industry” and “to provide education and updates on… new laws and regulations… ” Also, to that end, the association produces a monthly magazine detailing local, state and national news, and regulations relating to the industry, including Environmental Protection Agency changes and updates.

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framework for unifying shop interests such as discontinuing unfair claims practices, Kizenberger explains. With NYSACT, the organization interacts with government regulators to benefit shop owners. In addition, the association recently helped promulgate an industry code of ethics in pursuance of its goal to ensure the public the highest quality and safety standards in auto collision repair.

LIABRA schedules about eight meetings annually as well as offers a number of educational programs on subjects such as time-management, OEM materials, estimating, employee management and environmental compliance.

The association also publishes a monthly magazine for its members and offers workers comprehensive and health care insurance. By joining the Long Island group, shops also become members of NYSACT, Kizenberger explains.

“Associations struggle in the tough economy as all businesses do,” he says. “We’re confronting challenges such as the overcapacity of shops against the amount of work available. Consumers are driving less,

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On Creative Marketing with Thomas Franklin

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

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

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

Focusing Marketing Efforts on a Narrow Demographic Yields More Results

Many years ago I went through a training program offered by a company called Expansion Consultants, Inc. One of my instructors offered the hypothesis that “any unwanted situation can be resolved with sufficient communication.”

He used the expression “universal solvent” to describe how communication can dissolve problems.

I’ve often tested this idea, especially in marketing. At one point I came up with the idea that “any failure to thrive is a combination of not reaching out widely enough, frequently enough or cleverly enough.”

Then one day I spoke to a body shop owner who disproved at least one part of my idea. He had reached out as widely as anyone could in his area. He sent out a piece of promotional literature to 10,000 homes in his area. But he said he had not gotten even one job from that mailing.

Today marketing professionals are focusing on a narrow demographic rather than a wide one. By tracking customer purchases, website searches, and publications read, advertisers target very specific types of prospects.

A collision repair center following this approach would avoid a vast general mailing to all prior customers, and instead focus on specific types like senior citizens, young drivers, parents with children who drive, women who drive specific makes of vehicles, and more.

Another narrow approach used by marketing professionals is a season

and time focus. Mothers Day promotion for adult women, Labor Day promotion for working men, and also start-of-school-year promotions for parents.

For collision shops, collecting information on customers’ teen-agers can be valuable. Young drivers cause a high percentage of accidents. For shops getting involved in the new cosmetic car upgrade market, a Valentines Day promotion could be effective. Self-caused minor damage may be overlooked until a time comes to travel. A pre-vacation Memorial Day promotion could bring in those vehicles.

The Internet has become so much a part of our lives these days, we may sometimes forget that most of that “free” information we get on-line is paid for by advertisers.

If you watch carefully, you’ll notice how the ads on websites change with the time of year. You may also notice how companies that track your on-line searches are able to send you e-mail ads that reflect your personal interests. How might you use this approach to creating more effective promotional reaches out to your customer and prospect base? It all comes back to your effectiveness at collecting and using customer information.

Collision repair shops are generally high velocity workplaces. Estimators are in a hurry to get the keys and get the car in the shop to begin work. The vehicle driver may be in a

AASP Awards Grants to NABC and Auto Education Institute

The Alliance of Automotive Service Providers (AASP) has awarded Industry Improvement Grants to the National Auto Body Council (NABC) and the Automotive Education & Policy Institute (AEPI). The grants were approved at the AASP’s national board of directors meeting in Raleigh, NC in April. The NABC grant will go toward helping create a Spanish-language glossary of collision repair terms for Spanish-speaking shop employees and customers. The money for the AEPI will assist in creating a Webbased collection of legal decisions made in favor of collision repairers.

The AASP also voted to participate in the Society of Collision Repair

hurry to drop off the car and get to work or back with the kids.

A better time to collect information may be when the customer is picking up the repaired vehicle and pleased with the quality of the repair.

If these don’t net information about the customer’s job, family, organizational ties and personal interests, an on-line or phone survey may get what is needed to do targeted promotions.

Shop owners are justified in wanting to minimize the number of front office employees and related costs. But a careful analysis of how many additional vehicles a good data collection person could bring in should reveal that the benefits could greatly outweigh the costs.

The days of waiting for repair customers to drive in are long gone.

These days the certainty of sufficient insurance referrals is diminishing. It’s time for shop owners to catch up with

the times and begin using professional marketing tools to bring in new business.

Take a look at the variety of ads aimed at you. You may sometimes wonder why you are the target of a particular ad. Advertisers are just guessing what will interest you, but obviously they guess right often enough to justify the cost of the ads.

It’s time for you to become more creative with your promotion. Who have you not reached out to? Who have you considered not worth reaching out to?

Who have you given up on reaching out to? (If no response, try something else).

Don’t set limits. Everyone can be reached with some message. If you collect enough information up front, the odds are good that you’ll connect with your prospects a large percentage of the time and that will more than pay for your time and trouble.

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Shop Strategies for Savings

Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.

Total Loss Fees Are Profits to be Gained, Not Given Back with Walter Danalevich

As an auto body shop owner for over 30 years, I understand total loss vehicles are a part our industry’s day to day business. With the addition of more and more electronic gadgets, gizmos, and the installation of additional air bags it is not unusual to have an insurance company choose to total a vehicle, and retain the auction salvage, rather than roll the dice on the possibility of a multi-thousand dollar supplement and being held responsible for other liability issues. This is usually the standard insurance game plan unless you come across a naive insurance appraiser who does not value his job.

Recently our body shop in Santa Barbara, California, was involved in an insurance claim involving a customer’s 2005 limited edition Scion XB which accidentally ran into a shopping center wall while exiting a shopping mall parking structure. The driver must have experienced one heck of a distraction to cause so much damage to the right front of his vehicle.

Upon closer inspection we discovered the right front frame was kinked enough to require replacement of the frame rail. The engine would need to be removed to install the frame rail which resulted in additional labor placing the car in the total loss category.

While the appraiser was leaving our repair facility he commented his insurance company is very attracted to low mileage fuel-efficient compact vehicles such as this one. Later that day, I went out to the Scion and noticed there was a tag on the windshield stating the vehicle now belonged to the insurance company. I asked myself how this could be when the vehicle owner has not been notified or given information on his options of retaining the vehicle or accepting full retail value from his insurance company.

Even more intriguing, the next day I received a phone call from the Insurance Salvage Auction company requesting to pick up the Scion. I was surprised at what felt like a decision to essentially steal the low mileage Scion instead of getting notification from the owner on what he has decided.

Soon after receiving the 24-hour is-the-vehicle-released call from the salvage auction company, I contacted our customer and reported the aggressive efforts by his insurance company who seemed to have overlooked providing us with a completed itemized repair estimate.

Neither did they make a reasonable offer of retail value settlement to their insured. The customer responded he would prefer having his car repaired. I advised him to request a copy of their repair estimate. I also recommended he do his homework in obtaining some comps on the value of his low-mileage vehicle. I advised him not to be “intimidated” or feel rushed by the insurance company who had already sent him an e-mail declaring they will “limit their storage fees to only two days.”

A couple days later, the customer received the insurance repair estimate and forwarded the attachment to our shop where we confirmed the vehicle as a total loss. Vehicle valuation #1 was also sent to the insured who asked if I would assist in the settlement process.

Upon reviewing the valuation report I noted there were several listed comps, which were not from our area, resulting in a lowering the settlement value offered to the insured.

Another major item, to the insurance company’s advantage, was there was no mileage posted on any of the vehicles reported. This alone can significantly reduce the value of the insurance company’s settlement offer. I

reviewed the posted locations and values with five of the proposed comparable listings and discovered four vehicles had significantly higher mileage and sold for almost $1,000 more than what was reported in their #1 valuation report.

This got the attention of our customer and he proceeded with his own follow-up on the posted listings. I recommended he speak to the insurance company, report his findings, and declare several of their valuations not valid. A second valuation was soon received allowing for a $1,500 buy back from his final settlement cost to retain the vehicle.

The customer e-mailed the insurance company creating a paper trail of their inaccurate comps and requested valuation #3. About four days later the customer forwarded me a copy of a new valuation which provided an increase of over $500 from

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the first valuation which the insurance company insinuated he accepts.

Here’s something to think about, calculate how much would result if each insurance company total loss claim was shorted by $500—Gee, what a nice investment fund that would create.

The customer was still undecided about accepting the full insurance settlement offer or go with a ‘buy back.”

After a few days he came to a decision to let his baby go to the “Auto Auction Heaven” and accept the increased settlement offer.

This month’s article savings message is about assisting your customer in their time of crises and not being intimidated by the insurance “SCREW U CUSTOMER CARE HOTLINE.” You have now gained a customer for life while adding to your bottom line for teardown, labor, and storage fees.

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ASA Discusses New Refinish Regulation with EPA Officials

ASA collision leaders met recently with top EPA Office of Compliance officials to discuss the EPA automotive refinishing regulation. ASA members also briefed members of Congress on the new paint regulation. ASA supports the regulation but has been concerned about some enforcement efforts. Some state agencies oversee enforcement of the regulation while others are leaving compliance to the U.S. EPA. This enforcement diversity has created some issues relative to the regulation. One of the concerns is the regulation exemption for “Coatings applied from a hand-held device with a paint cup capacity that is equal to or less than 3.0 fluid ounces.” ASA worked with the U.S. EPA in preparing background for the auto refinishing regulation.

ASA hosted the EPA at its trade show, the International Autobody Congress and Exposition (NACE), and in various ASA member shops around the country to help educate the EPA about shop systems, training and proper equipment. ASA will continue to work with EPA and state agencies on compliance issues for the auto refinishing regulation.

Fix Auto USA Adds Five Franchise Locations In Q1 2011 Fix Auto USA has announced the addition of five franchise locations. The new locations represent Fix Auto’s expansion in the San Diego market to eight locations. Fix Auto USA, which added a franchise model to network membership in January 2011, currently has 39 franchise locations operating in three states: California, Colorado and Oregon.

The new Fix Auto locations include: •Fix Auto El Cajon, formerly East County Auto Collision •Fix Auto Escondido, previously Henson and Son •Fix Auto La Mesa, operated at Drew Collision Repair Center •Fix Auto Mira Mesa, formerly Miramar Collision Center •Fix Auto National City, previously owned by Ball Auto Group Greg Carter, owner of Fix Auto National City, Fix Auto Santee and Fix Auto Mission Valley said the power of a larger network, powered by independent owners played a big role in his decision to franchise.

“We are pleased to expand our franchise group with these operators in San Diego,” said Paul Gange, President and COO of Fix Auto USA.

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Trust your order to the collision parts specialists at these fine Dealers 20 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

ASA Announces its Collision Operations 2011 Committee

ASA has announced its 2011 Collision Division Operations Committee. Dan Stander, Fix Auto Highlands Ranch, Littleton, CO, continues his two-year term as Collision Division director. As such, Stander serves on ASA’s board of directors and is chairman of the ASA Collision Division Operations Committee.

Additional members of the operations committee announced by ASA’s board of directors include Ronald Scott Benavidez, Mr. B’s Paint & Body Shop Inc., Albuquerque, NM, who is serving as assistant division director; Stacy Bartnik, CARSTAR Franchise Systems Inc., Overland Park, KS; Jeff Brunz, Master Europa Paint & Collision, Fort Worth, TX; Tommy Clayton, Tommy’s Dent Service, Gibsonville, NC; Virginia Duncan, AAM, Duncan’s Collision Inc., Boardman, OH; Dustin Eckhart, AAM, Hernandez Collision Center, Hinesville, GA; Mike LeVasseur, Keenan Auto Body Inc., Clifton Heights, PA; and Steve Tomaszewski, Alpine Collision Center, Grand Rapids, MI. Members of ASA’s Collision Division Operations Committee represent shops of varying sizes from across the United States. The committee works on behalf of all ASA collision members.

ASA Announces its 2011 Government Affairs Cmte

ASA has announced its 2011 Government Affairs Committee (GAC).

Members of the GAC include Roy Schnepper, AAM, board representative and committee chairman, Butler’s Collision Inc., Roseville, MI; David Lanspeary, AAM, affiliate representative, Dave’s Auto Repair, Youngtown, AZ; April Hernandez Miller, AAM, collision division representative, Hernandez Collision Center, Savannah, GA; Douglass Kirchdorfer, AAM, mechanical division representative, Downing Street Garage, Denver, CO; and Charles Elder, AAM, member at large, Ray Gordon Brake Service, Tallahassee, FL. Members assumed their positions at the close of ASA’s annual business meeting May 9–11 in the Washington, DC, area.

ASA’s board of directors established the Government Affairs Committee to assist in developing state and national legislative objectives on an annual basis. The committee works closely with Bob Redding, ASA’s Washington, DC, representative.

For more information about ASA’s legislative objectives and activities, see www.TakingTheHill.com.

Continued from Page 13

NY Collision Assns

Autobody Craftsmen’s Guild Officing on Staten Island, the Autobody Craftsmen’s Guild was founded in 1960. Membership in the guild includes membership in NYSACT, explains one of its three executive directors, Joe Amato.

Training is one of ACG’s goals.

“Typically our general meetings are organized around a topic or a task,” he says. “We’ll have a vendor or jobber come in to speak with the members or we will have a class on estimating or about a new product such as waterborne paints.” The group schedules about six of these annually, he notes.

Gas & Repair Shop Association of NY Independent of NYSACT is the Gasoline & Repair Shop Association of N.Y., based in Albany. GRANY represents 330 members in the eastern part of the state, from Westchester County to the Canadian border and Herkimer County to the Vermont, Massachusetts and Connecticut borders.

The association is one of five af-

filiates of the Albany-based New York State Association of Service Stations & Repair Shops, which lobbies on members’ behalfs at the capital and works with state agencies. This group is an affiliate of the Service Station Dealers of America—Allied Trades.

GRANY was founded in 1972 by service station dealers during the first energy crisis, explains its associate director, John Casazza. The executive director is Ralph Bombardiere.

Today, the membership includes 35 percent convenience stores, 45 percent repair shops and 20 percent body shops.

In addition to providing members a variety of insurance and other benefits, GRANY offers professional training for automotive technicians and inspectors.

“Our overriding goal is to protect the interests of these independent businesses as well as the motoring public,” Casazza says.

The biggest challenge in the future for the auto-repair industry, including collision shops? According to Cazazza, it’s clear: “Insurance companies.”

CIF Makes Donation to Japan Tsunami Relief

The Collision Industry Foundation (CIF) is proud to announce its donation of $1,650 to the American Red Cross to benefit the victims of the Japan tsunami from the donations made through the Collision Industry Conference (CIC).

The donations were collected at the CIC meeting held at the Meadowlands Expo Center in New Jersey this past March after industry member Toby Chess suggested a collection for those in need.

“It’s always heartwarming to see people, even in these hard times, reach out to help others who have lost so much” said Bill Shaw, President of the CIF Board of Trustees.

Relief and clean-up efforts are ongoing in Japan due to the catastrophic levels of devastation that resulted from the earthquake and subsequent tsunami back on March 11, 2011.

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CCC Announces 2011 Crash Course in April

In April CCC Information Services Inc. announced the availability of its 2011 Crash Course, titled “Changing Expectations of the Connected Consumer.” In addition to an analysis of traditional market trends, the document developed by CCC Lead Analyst Susanna Gotsch focuses on new technology’s ability to provide transparency to the companies and customers doing business in the autophysical damage industry.

“Peoples’ willingness to be much more transparent as potential customers, means they expect their demands/needs at a minimum will be met,” said Gotsch. “But companies that go beyond simply meeting demands to delight their customers will see their efforts rewarded. A company demonstrating that it knows a customer’s needs/desires, meets them, and exceeds them, is creating an experience that the customer will want to talk about with family and friends.”

In addition to the Adobe® PDF version of 2011 Crash Course available on the CCC News and Insight page, Gotsch presented a Crash Course webinar on April 21st.

For more visit www.cccis.com.

www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 21

Industry Insight with John Yoswick

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

Contact him by email at jyoswick@SpiritOne.com.

Industry Trends and Changes in Future Vehicles at WIN Conference

Current industry trends—and a look ahead at the electric, fuel-efficient and Chinese vehicles that could be showing up in collision shops in the coming years—were the focus of one speaker’s presentation at the recent Women’s Industry Network (WIN) conference.

Greg Horn, vice president of industry relations for Mitchell International, told about 160 attendees at the WIN event in San Diego, that one positive trend for collision repairers had been the rebound through early this year in the total miles driven by U.S. motorists.

“But we’re starting to see the effect of gas prices impact the miles we drive,” Horn cautioned.

He said that MasterCard SpendingPulse, which tracks gas purchases at hundreds of U.S. locations, reported in early May that the 4-week average of retail gas demand had dropped for the sixth consecutive time.

“So we’re potentially in for a pretty significant impact as we get to early summer in the reduction of accidents and repairable cars,” Horn said.

He said insurer data indicated an uptick in claims in the third- and fourth-quarters of last year, boosted in part by some extensive hail and storm damage in several regions of the country.

Shops also have benefited from a sizable rise in the value of used vehicles, which allows for higher repair costs before a vehicle reaches the total loss threshold. Horn said the average vehicle appraised in the first quarter of 2011, for example, had an actual cash value of $12,772, up from the same quarter a year earlier even though the average age of the vehicles appraised in 2011 was almost a year older than that in 2010.

“So a car is older but worth more in value,” Horn said. “That’s a good thing for us in the collision repair business because that means we have more opportunity to repair the cars.

We’ll put more in the repair column than we will the total loss column.”

The percentage of vehicles declared a total loss dipped slightly in 2010, and Horn and others expect that trend to continue this year. Higher gas

prices and the vehicle production disruption caused by the earthquake and tsunami in Japan continue to buoy demand and prices for used vehicles, he pointed out.

“That 3-year-old Honda Accord is 20 percent more valuable than it was last September, and the 3-year-old (Nissan) Sentra is up 12 percent,” Horn cited as examples.

Horn also discussed the impact that increases to federal fuel economy standards are having on automakers. In late 2009, the Corporate Average Fuel Economy (CAFE) requirements were changed to require Greg Horn, each automaker by Mitchell VP, 2016 (rather than Industrial Relations by 2020, as earlier established) to sell a fleet that averages 35.5 miles per gallon.

“That is an ambitious goal,” Horn said. “A lot of auto manufacturers for whom it takes four years to get from the drawing board to the showroom floor, are in a state of panic.”

Global automakers, Horn said, are looking at the most fuel-efficient cars they sell elsewhere in order to bring those vehicles into the U.S. market. Though its late summer debut has been delayed indefinitely by the situation in Japan, the Scion IQ is one ex-

“The good news is you’re going to survive the crash. You’ll suffocate afterwards, but you’ll survive the crash,” Horn joked.

Similarly, Chevrolet is introducing the Sonic, a less-well-equipped version of the Aveo, Horn said, and Nissan is introducing the $9,000 Micra (on which the radio and air conditioning are options). Chrysler will bring in the Fiat 500, which is four inches shorter than a Mini Cooper, and Mini is showing a concept vehicle that is a foot shorter than its existing vehicles.

The problem with many such vehicles for collision repairers, Horn said, is their low values will tend to put them into the total loss category even with only minor damage.

The Ford Fiesta is coming back into the U.S. market at about $14,000, Horn cited as one example. One of the vehicle’s distinctive features are its

long Xenon headlights, which stretch much of the length of the fender and, as Horn said, “are about half an inch from the edge of the front bumper cover.” Replacements sell for $480 each.

Ford Fiesta’s replacement headlights cost $480 each

“In a couple years when those cars are valued at about $10,000, rearending someone and having the bags blow and the windshield and both of those headlights go? You’re not going to be fixing a lot of those Ford Fies-

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ScionIQ, a new microcar was to have sold in the US in late summer, has nine airbags

ample of new micro-cars coming to U.S. streets. The tiny vehicle, powered by a 90-horsepower, 1.3-liter 4-cylinder engine, will be sold as a 4-passenger vehicle even though the headrests for those in the backseats butt up against the back glass. Horn said to help the vehicle meet federal safety standards, it has nine airbags.

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tas,” Horn told the audience at the WIN conference.

Automakers also will continue to try to shed weight from vehicles in an effort to meet tougher fuel economy standards, Horn said. That’s why shops are already seeing increased use of exotic alloys, titanium and aluminum. BMW cut 50 pounds from its 5-series by making the engine cradle out of plastic, Horn said.

“This is going to change how we put cars back together,” Horn cautioned. “The B-pillar for the Volkswagen Passat comes from the factory

laser-welded in. Most techs would open the doors, look at the number of welds, drill out the welds and try to weld it back in. Volkswagen does not allow for that. In the collision repair environment, their requirement is that you use adhesive bonding to put the two pieces, the inner and outer B-pillar, back together. Because it’s a boron-alloy steel, if you weld it back in and you apply too much heat to it in the MIG welding process, you can actually weaken the structure of that metal, throw off the pillar airbag sensors, and potentially cause some se-

Gerber Collision and Glass Acquires Georgia Shop The Boyd Group announced the opening of a new repair center in McDonough, Georgia, on May 3. The center, previously known as McDonough Collision, was recently acquired by the Boyd Group and now operates under the Gerber Collision & Glass trade name.

The new facility is approximately 26,000 square feet in size, with 24,000 square feet of production space. With this addition, the Boyd Group is now able to serve consumers and insurance clients in the county seat of Henry County, 30 miles south of Atlanta. The Boyd Group now owns and operates

12 repair centers in Georgia and a total of 99 in the U.S., including 37 repair centers that operate under the True2Form trade name.

“We continue to execute on our strategy of expanding into select markets and growing our network of repair centers across North America,” said Tim O’Day, President and COO of the Boyd Group’s U.S. Operations. “The new McDonough repair center helps us introduce the Gerber Collision & Glass brand to an additional Georgia market and we are very pleased to be able to serve new customers in this location.”

24 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

vere harm to the passengers in a subsequent collision.”

Horn closed his presentation with a look at some of the vehicles that Chinese automakers—a number of which have plans to enter the U.S. market—currently produce. Horn said Great Wall Motors is predicting a U.S. launch in 2015, following the model used by Kia some years ago, with sales in several states and entry into the rental fleet. The company will use feedback from that limited launch to make improvements before selling on a broader scale.

Horn said the expected low cost of early Chinese vehicles in this country will likely lead to more totals than repaired vehicles. But the success of any of the Chinese automakers here will largely be dependent on their ability to set up the replacement parts infrastructure that is needed, Horn said. Sterling Motors and Daihatsu, he said, failed largely because a lack of parts availability led to repair delays and total losses.

“The folks that have the best infrastructure for supporting their brand will be the Chinese brands that survive going forward,” Horn said.

GM to Invest $131 Million at Bowling Green, KY, Plant General Motors Co announced that they will invest millions into revamping a Kentucky factory to produce a new version of the iconic Chevrolet Corvette sports car, the automaker said on May 4.

“It has a completely different look. Don’t ask me how or what, but people will be really surprised, in a good way,” GM’s North American president Mark Reuss told Reuters.

GM would not say when the new Corvette would be introduced, but automotive insiders have speculated that it will make its debut in 2013.

The automaker will invest $131

million in the Bowling Green, Kentucky plant to retool the factory for production of the seventh generation of the Corvette. The company also plans to hire an additional 250 employees along with the plants remodel.

Reuss told the plant’s nearly 400 production line workers that GM has invested $3.4 billion and created 9,000 jobs at its U.S. plants since mid-2009, the year it went through a $52 billion U.S. government-sponsored bankruptcy.

GM said the current-generation Corvette will be made in Kentucky for at least the next two model years.

AkzoNobel to sell all 40 Company-owned Distributors of Sikkens, Lesonal, U-Tech, to LKQ Corp.

AkzoNobel Automotive & Aerospace Coatings Americas will sell all of its company-owned paint distribution locations in the United States to LKQ Corp. After the deal is effective May 27, 2011, LKQ will carry the Sikkens, Lesonal and U-Tech brands. The deal is part of a plan to broaden AkzoNobel’s North American distribution. The company said it remains committed to the U.S. market and believes a vibrant and diverse distribution network is mandatory for success in the rapidly evolving collision repair industry.

“LKQ Corporation is one of the most recognized and respected names in the automotive industry,” noted AkzoNobel A & AC Americas GM AB Ghosh. “We are proud to have them as a part of our growing North American network of distribution partners.”

Ghosh continued, “We are constantly challenging ourselves to improve our global leadership position.

Our strength exists in our core competencies which are providing exceptional products, technology, and service to the

collision repair industry. By moving toward independent distribution in North America, we can now bring even greater focus to those areas which make us unique and set us apart from our competition.”

“We have long admired the body shop solutions offered by AkzoNobel,” noted LKQ’s co-CEO Robert L. Wagman. “Their ability to deliver value added solutions in combination with being a color technology leader makes it an honor to partner with the world’s largest coatings company.”

Wagman continued, “LKQ currently has relationships with thousands of collision repair shops throughout the United States. We are excited about the opportunity to cultivate new opportunities with the AkzoNobel team. This transaction reflects LKQ’s commitment to being a one-stop-shop solution to the collision repair industry by providing superior products and services. By adding AkzoNobel’s portfolio of brands to our product offerings validates that commitment.”

Farmers Insurance’s New DRP Changes Upset Some Owners

Shop owners are reacting strongly and negatively to the latest DRP agreement from Farmers Insurance’s “Circle of Dependability” program.

Long-term members say that the DRP agreement says shops must perform criminal background checks of employees and not employ anyone who has been convicted of a felony.

Shops must purchase and use CSI services and an electronic estimate auditing tool approved by Farmers.

Like State Farm program members must now charge Farmers based on the most favorable rates offered to any other insurer. Most controvesial of all is a requirement that the shop must at any time allow Farmers to inspect and audit the company’s books and records, including balance sheets and income and cash flow statements. Last year, Farmers Insurance Group limited consumer and collision repair facility choice by directing its DRP shops to sublet PDR jobs exclusively to two national PDR firms, PARS and Dent Wizard.

SEMA Show Registration for Exhibitors is up Over Last Year

Companies are taking SEMA booth space much earlier this year, as indicated in a recent report by Show management. Exhibit space sales in net square footage is up 14% year-to-date and total exhibitors are up 18% yearto-date. This brings the total number of exhibitors as of May 17, to 1,615—a strong indicator that in 2011, the SEMA Show is a top priority for manufacturers and buyers.

The growing collision-repair section of the 2011 SEMA Show is now branded “Collision Repair & Refinish.” The area will be one of 12 floor sections featured at the 2011 SEMA Show, Tuesday–Friday, November 1–4, 2011, in Las Vegas.

“The number of exhibitors and educational seminars for the collision repair and refinish market increases year after year,” said Peter MacGillivray, SEMA vice president of communications and events. “The new name, Collision Repair & Refinish, is just one way that the SEMA Show is evolving to better and more accurately reflect the growing presence of this market.” Details about the SEMA Show are available at www.SEMAShow.com.

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www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 27

Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

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ALL OEM Information

Dan Espersen is ALLDATA® CollisionSM Program Manager. Dan is a Gold Pin Member of the Collision Industry Conference (CIC) and holds an AA Degree in Automotive Technology. He has 35 years of experience split between the collision industry and in the mechanical automotive industry.

The Value of Service Repair Information with Dan Espersen

With the ever changing complexity of today’s vehicles that confront you and your team on a daily basis, access to manufacturer’s repair information is and will be one of the most important tools you will utilize on a daily basis.

Whether you are an Estimator, Manager, Insurance Adjuster, Technician or part of the Production Team, proper repair procedures from the manufacturer will allow you to identify, negotiate and explain key repair plan thought processes. It will also assist and manage critical business Indicators such as cycle times, hours per day, sublet repairs, technician efficiencies, overall productivity and profits.

Many considerations arise when preparing a repair plan for your customers whether they are your Insurance Partners, everyday customers, or Technicians. Issues such as minimal supplements, factory recommendations correct documentation, customer satisfaction and a cost effective repair are only a few issues that one needs to consider.

Questions such as these will confront you or your staff daily. ● Should I section this or replace the entire panel? ● How do I handle this Hybrid? ● What SRS parts do I need to replace after the accident? ● Can we reset the Tire Pressure Monitoring System? ● Does my Technician know how to remove the trim panel on this vehicle?

The national average for body and paint labor rates has risen only modestly year-over-year since 2006, according to figures from CCC Information Services.

● Can we repair this suspension here at our shop? ● How can I provide my customers

June 2011

detailed repair documentation if they require it?

Documentation will be the most critical link you will have when determining a repair strategy.

So when is the best time to access or source this valuable repair information? Pre-Production or During the Production phase of repair?

The answer to both of these is ‘yes,’ based on your collision operation and processes.

Accessing Manufacturer repair information during the Pre-Production phase or at the time of the repair plan is an effective way of properly identifying critical repair decisions. You noticed I said “repair plan” and not estimate?

Often times a certain repair procedure may be available and if you don’t know it, the vehicle can halt in production due to supplements, authorizations, parts orders, or sublet repairs. Whenever a vehicle is stopped or delayed during the production process, cycle times will increase, efficiencies decline and

overall shop profitability is affected.

If thought was given to proper repair techniques, locations and practices during the repair plan or prior to production, these critical performance indicators would ultimately benefit.

For example: You are developing an estimate on a 2007 vehicle that has structural damage to the front. Do you know if the structural component can be repaired or should it be replaced? If you have to replace it, can it be sectioned and where? Without the correct repair procedure, you may develop your estimate based on prior experience, here say, Industry accepted practices or the ever popular guess.

As the vehicle moves into production, parts have been ordered, the estimate has been sent or uploaded and approved and the technician is diligently disassembling it. Upon further examination after disassembly, your technician states that the damaged structural component cannot be repaired with the method on the estimate due to the fact that he or she thinks the component is made of advanced high strength steel.

Production stops, a supplement is generated, approval for additional repairs are pending and parts are re-ordered.

If the proper repair and identification procedures were accessed from the Manufacturer at the time of the repair plan, this scenario could have been avoided. Now ask yourself, “How much time are you now spending reacting to the estimate that was

prepared incorrectly utilizing the prior scenario” and would you ultimately generate less work for yourself if you performed repair research prior to production or when developing a repair plan?

During the production phase, a technician ultimately benefits by being efficient or keeping his hands on the vehicle.

Locations of components, testing procedures, disabling operations, material identification and overall proper repair procedures are only a small portion of what today’s collision technicians face day in and day out.

By providing them with access to Manufacturer’s information, can they increase their overall productivity and efficiencies?

Ask yourself this question the next time that your technician cannot locate a component or remove a certain part without instructions.

If they had access to the procedures would they limit or eliminate these time consuming scenarios?

In summary, vehicle complexity is changing at a rapid pace and in order to be current with all of the complexities, we need to utilize the latest repair strategies and procedures that are available to us.

A proactive approach, a proper repair plan and an awareness and utilization of published procedures from the manufacturer are effective ways to manage our time and your team. This will ultimately provide a safe and accurate repair to our valued customers. Isn’t this what we are all in business for?

The average body labor rate rose from $41.42 in 2006 to $44.67 in 2010, up an average of 2.1 percent per year. The national average hourly rate for paint materials rose slightly faster,

from $22.26 in 2006 to $25.37 in 2010, an average increase of 3.5 percent per year. Overall, according to the U.S. Bureau of Labor Statistics, the Consumer Price Index for auto-

body work rose an average of 3.44 percent per year for that 5-year period. By comparison, the CPI for all products rose an average of 2.2 percent per year.

National Average for Body and Paint Labor Rates Up Only Modestly Since 2006

28 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com

Shift Happens: The Story of Three Transmissions and a Limp Kia SUV with Gonzo Weaver

Jo was a new customer referred by an old-time regular. Her little Kia SUV had a transmission problem that seemed to be getting the best of the transmission shop.

The story goes that the Kia was constantly in limp mode, and would never shift properly—ever. As always seems to be the case when a simple problem can’t be solved simply, somebody started the diagnostics off in the wrong direction. Little did I know this was a simple problem.

But, as I see it, each and every type of diagnostic work that you do requires a certain step by step procedure that you must follow. Missing a step, or completely overlooking a step, usually means you’re going to miss that simple problem all together.

This was no exception.

From what information I could gather the person who diagnosed it at the transmission shop wasn’t the

same person who installed it. So after the tech put the last bolt in the transmission, he set the car out front, and told the front office, “Got the transmission in that Kia.” The front office considered it done, and the call went out for Jo to pick it up. She didn’t make it around the block before she was back at the front counter in a “not-so” pleasant mood. You can just imagine the situation at the counter, not happy I’m sure.

After some deliberation, and very little diagnostics the transmission shop came to the conclusion that it must be a bad transmission. Luckily, the ride that had brought Jo there was still in the parking lot, so she left the Kia for them to re-do the whole job.

A week later, it was supposedly done. This time a different tech had installed the second transmission. Un-

fortunately, he made the same mistake as the first tech. When Jo came to pick up her car the shop owner took her for a ride to be sure that the repairs were made to her satisfaction. It was a short drive.

This time, the owner said he was going to pay for the transmission, and would even purchase one from the dealership just to be sure it wasn’t their mistake in rebuilding it. But even the dealer transmission failed to shift properly. The tranny shop was at a loss, they decided to make a few calls for some help, and that’s when my phone rang.

Now, I’m not one to diagnose anything over the phone. I just don’t think it’s a smart way of taking care of such problems, because you never quite know what you’re getting into.

But the tranny shop owner sounded desperate, and now the repair costs were coming out of his pocket.

From his frantic explanations of no codes, no shift, and no idea of the problem, he kind of put me on the spot, so … I suggested a computer.

Heck, why not… ya changed the tranny three times for Pete’s sake, obviously that ain’t it. I probably shouldn’t have done that, but I think he wanted to try and save as much money as possible without resorting to taking it to another shop.

Well, a new TCM didn’t work either. Now, the car is finally coming my way. Jo was a little unsure whether or not there was anyone out there who could find the problem, but her friend told her that it couldn’t hurt to let me see what I could do for her.

I’ll give it a try.

When the car showed up at the shop I took it around the block once to verify the condition, and then put it up on the lift. While it was on the lift See Three Transmissions, Page 31

www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 29

Inside Insurance with The Insurance Insider

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Allstate, Founder of DRPs, Deserves Some Credit for Improving Repair Industry “The Insider” is an auto insurance company executive who wishes to remain anonymous in order to speak freely. This column offers an unvarnished look at various issues impacting the collision industry from the insurance perspective—Ed. Who benefits the most from direct repair programs? Insurers will tell you the consumer. Repairers will say the insurance company. The consumer has no idea and doesn’t care. They just want their car fixed correctly and quickly.

In my humble opinion, the shop receives the biggest benefit. The insurance company does benefit but not more than the shops on the program.

Yes, many insurance companies report millions in profit every quarter, but do you really think they make their money by not paying for things such as block, prime, and fill or for OEM parts? If you believe that, you

should do some research before you say it. A wise man once said, “Better to keep your mouth shut and let everyone assume you’re stupid, rather than open your mouth and remove all doubt.”

Insurers aren’t raking in doubledigit profits on the backs of the body shops. Insurance companies capitalize on a marketplace that has shops willing to provide discounts for volume.

You wouldn’t do anything different if in a similar position.

Do insurance companies profit from insureds using the direct repair program? Of course they do. Insurers benefit from the reduction in severity and rental car expense, for example. If insurance companies weren’t making money, DRPs wouldn’t exist.

Do the shops make money from participating in a given DRP? You bet.

If shops weren’t making money participating in direct repair programs,

they wouldn’t be working with that carrier.

For every shop owner I see struggling to keep their doors open, I can provide a secondary list of those that are very well-heeled. Don’t misinterpret what I’m saying: I don’t begrudge anyone financial success and independence. But I don’t have the patience or desire to listen to a shop owner complain about losing money as he or she drives to the airport in a new Mercedes for their vacation in the Bahamas.

Even though insurance companies make a lot of mistakes, DRPs aren’t one of them. DRPs took an archaic body shop trade and transformed it into the collision repair industry. For decades, the body shop trade didn’t change. In fact, it has been suggested that the early caveman provided the same level of service that customers received from shops preDRP. I was unable to validate that, but it’s difficult to argue a lack of differences between the caveman and the 1970s shop owner.

For those who are long in the tooth, it seemed like yesterday that the body shop trade with rife with uneducated technicians running their own businesses. There was a “mom and pop” body shop on every corner. The training you received as a body man was from the old guy coughing up a lung as he sanded a 10-foot-long quarterpanel that was supposed to be re-

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placed, according to the handwritten, illegible estimate.

Insert DRP here. That’s when the industry was transformed. In other words, every shop owner in this country should personally thank Allstate for starting what is largely viewed as the industry’s first nationwide DRP. DRPs have done more to change and improve this industry than any other single factor.

You may dispute it, but shops without DRPs are like Sonny without Cher or the Patriots without Tom Brady. Okay, I’m being a little overdramatic. But the fact remains that if you had a toolbox and a cave, before DRPs you too could be a shop owner.

DRPs caused the body shop trade to grow into a legitimate business and industry. You had to change the way you did business or you couldn’t compete. Insurance companies were looking for professional, well-maintained shops.

Most shops, for example, purchased an electronic estimating system because it was required as part of a DRP. Why purchase the equipment and software to upload electronic images of the damaged vehicle? If you

guessed that an insurance company required it, you are right.

Hopefully, you are starting to see a pattern. The collision repair industry doesn’t change very quickly, especially when there is an associated cost.

Unless an insurance requires something as part of a DRP, most body shops won’t do it.

Before anyone drops to their knees to praise Allstate, I should state that the advent of DRPs also spawned a monster called the unethical adjuster. That probably warrants an article itself. I guess you need to take the good with the bad, but to me, the good that DRPs brought significantly outweighs the negative impact caused by the unethical or immoral behavior of some.

The point of this article was to make you think about one thing: Who has benefited the most from the direct repair programs that some shops swear were the demise of this great industry? The answer is obvious: Body shops.

Collision repairers would still be using a hammer and chisel if it wasn’t for insurers demanding a quality, cost-effective repair.

Continued from Page 29

Three Transmissions

I decided to drop it into gear and check it against the scanner.

To my surprise, it shifted perfectly. I’m not kidding—absolutely perfect. I dropped it back on the ground, and went for a ride again. I didn’t even make it around the first corner before it got stuck in limp mode just as it was before, this dang thing can’t pull itself out of a pot hole.

Back up on the lift, and wouldn’t ya know it, shifts perfectly—AGAIN! What’s the deal here? I did it several times, just so I could be sure of the results I was getting. After a few trips I checked the wiring to the transmission while it was on the ground.

Uh-oh, the main ground to the TCM wasn’t there. How in the world was it there when it was in the air?

Ah-ha! It’s moving the wire! Yes, it was moving the wire all right, and a few more than just the TCM ground lead.

The locator page showed the TCM ground wire was bundled with several other ground leads that were

all attached to the main chassis ground, which wasn’t attached to a thing, but was dangling by the battery box.

Turns out the whole problem started when she had her battery changed at a department store repair shop, and they didn’t have the right size to fit the car. They disconnected the chassis ground wire, so the taller battery would fit.

When I told Jo what I found, the two of us pieced together the how and why it happened. Her only comment was, “Well, shift happens.”

All said and done with, the transmission shop paid for the entire repair, and gave her back what she spent with them. Everyone involved was glad to have the problem solved, and the car back on the road as good as new.

I like this gal, she’s become a regular at the shop these days. What a card! Always has some sarcastic comment for me, but at the same time a very understanding nature and takes life in stride. I’d love to have a couple of dozen customers just like her.

As she always tells me… “If you can’t live on the bright side of life… start polishing the dull one.”

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Continued from Page 1

Allstate Buys Esurance

Allstate, which has seen its personal lines business shrink, said the deal lets it expand its service to consumers who prefer to buy direct online rather than through personal agents. It allows it to compete with Progressive and Geico, which have strong web insurance shopping sites.

“Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments,” said Thomas J. Wilson, Allstate’s president, chairman and chief executive officer.

He said Allstate agencies do “an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product.” But Esurance will expand the company’s ability to serve customers who are “more self-directed but still prefer a branded product.”

He said Answer Financial will strengthen Allstate’s offering to indi-

viduals who want to be offered a choice between insurance carriers and are brand-neutral. The move has some Allstate agents concerned.

“Many Allstate agents are viewing the proposed acquisition suspiciously. The company has been hell-bent on growing its direct channel for years, but only recently has it had any success,” said Jim Fish, executive director of the National Association of Professional Allstate Agents, Inc. “Who knows, the success of the Esurance business model and technology platform could ultimately improve and transform Allstate’s direct channel into a powerhouse. Should this come to pass, Allstate agents would feel more expendable than ever.”

According to Fish, Allstate is shedding seasoned agencies in favor of larger agencies with more staff. “[S]o adding this acquisition to the agents’ woes, can only create more angst. Without a doubt, the agents want Allstate to be successful – but not at their expense,” he said.

Allstate said Esurance and Answer Financial will retain their brand names. Esurance has some 1,7000 em-

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ployees and 14 regional offices. Wilson said Allstate would now be the only company serving all of these consumer segments with unique insurance offerings.

“This transaction is also attractive for our shareholders. Association with Allstate will improve Esurance’s marketing effectiveness and it can leverage our world-class pricing and claim capabilities. This also offers us two additional sources of growth and an immediate increase in customer relationships,” Wilson said.

Premiums for policies sold by both Esurance and Answer Financial were $1.2 billion in 2010. Gross premiums written by Esurance were $839 million for the year. Esurance had 839,000 policies-in-force, including 328,000 policyholders at Answer Financial. The Esurance segment added approximately 65,000 policies-inforce during 2010, an increase of 8 percent, according to the company.

The transaction has been approved by both companies’ boards of directors and is expected to close in fall 2011. The transaction is subject to regulatory and other customary closing conditions, including review by

antitrust authorities and state regulators.

White Mountains Chairman and CEO Raymond Barrette said the online insurance operation Allstate is acquiring has grown from a start-up to rank among the top online insurers in 10 years. “We have happily invested significant capital in what we believed was a unique business. Allstate agrees and can now take it to a new level,“ Barrette said.

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GEICO & CREF Award Grants to Four Auto Body Students

The Collision Repair Education Foundation (CREF) and GEICO Philanthropic Foundation named winners of the GEICO Spring Scholarship and Tool Grant, which provides each selected student with a $1,000 scholarship and $500 in tools.

The winning students are: Nicholas Bigelow (Wayne Finger Lakes BOCES, Williamson, NY); Kurt Bundscho (Sarasota County Technical Institute, Sarasota, FL); Zachary Holler (Eastern Center for Arts and Technology, Willow Grove, PA) and Simon Rowe (Cuesta Community College, San Luis Obispo, CA) The grants not only assist students with their educational expenses but also helps to place current tools and technology into their hands to better their career,” said Scott Kruger, CREF Executive Director. “GEICO has stepped up and made a direct investment into the students who will be our future collision repair technicians.

On behalf of these four students, thank you to Mr. Lyons and everyone at GEICO for their continued donations and support.” Visit www.CollisionEducationFoundation.org.

Sherwin-Williams’ Next Ecolean Workshop in Toronto, June 22 The next A-Plus™ EcoLean™ Level 1 workshop from Sherwin-Williams will be held June 22–23 in Toronto.

Sherwin-Williams’ EcoLean Level 1 workshops are designed to help maximize profitability by improving productivity and eliminating waste throughout their facilities. The program is offered to collision center owners from Canada and the United States.

“Our EcoLean workshop curriculum is developed with collision shop operators in mind,” notes Bob Leibel, Director of Sales and Operations, Canada. “We aim to give them a comprehensive look of how they can build a lean culture in their shop from the ground up.” During the upcoming Toronto EcoLean Level 1 workshop attendees will learn practical processes and useful tips on lean production’s practical application in collision repair and methods to make their collision shops more efficient, productive and profitable. Leibel said the program teaches shop owners that environmentally sound business decisions go hand-in-hand with reduction of excessive and duplicative procedure and environmental waste.

Toyota Profits Dive in 4th Qtr After Severe Supply Problems

Toyota has announced 4th quarter profits that are 77% lower after severe supply disruptions caused by the Japanese earthquake and tsunami. This is the lowest profit figures during any time in the past year and a half.

Toyota announced that its declared profit for the three months ending 31st March 2011 was 25.4 billion yen. Sales also dropped by 12% to 4.64 trillion yen. The supply disruptions could cause Toyota to drop behind Volkswagen AG and General Motors in worldwide sales this year.

Toyota said that the company expects local and international production to start recovering by June. This is earlier than the initial forecast of July to August. The company added that production will be roughly 70% of normal levels.

Toyota was able to resume production at all of the company’s Japanese plants on the 18th April, although at only half of the normal capacity. At this stage production is still severely hampered by shortages of rubber and plastics and electronic components.

Honda said at the end of April that its fourth quarter net income decreased by 38% to 44.5 billion yen.

State Farm to Phase out 24 Field Offices in Midwest

State Farm plans to phase out twodozen claims offices in three states in favor of “mobile workers” based in homes, agent offices or collision-repair centers, the Bloomington-based insurer announced. Some of the estimated 1,300 employees affected in Illinois, Indiana and Michigan—including 17 at a Springfield claims center—would remain in the communities were they now work.

“It’s the changes in technology.

Claims are more ‘virtual’ now, and we didn’t necessarily need all of these facilities,” said Missy Lundberg.

State Farm estimated it would save $8 million in leasing and building-operations costs in the next five years. While many workers would remain in their current communities, some managers would move to consolidated fields offices in the three states. The consolidation includes claims-processing centers in Marion, Collinsville, Champaign, Peoria, Moline, Rockford, Elmhurst, Tinley Park and Arlington Heights. The number of claims-processing centers in Michigan and Indiana will be reduced from nine in each state to two.

Agent offices are not affected.

www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 33

Shop Showcase

Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.

The Body Shop Garage Opens in Woodward, Oklahoma with Erica Schroeder

Kevin Ham looks at his shop—The his career and really began making Body Shop Garage—in rural Wood- steps towards having his own business ward, OK, and sees a lifelong dream in 2007. He bought a building on the coming true. While it took almost four with John Yoswickend of Main Street from his cousin’s years for the 45-year-old body man to wife’s grandfather and began the lengthy process of getting the shop get his own shop running, it’s some-

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Shop Showcase with Ed Attanasio

The front of The Body Shop Garage building in 1946

thing that he’s wanted to accomplish since he was 16.

“I’ve just always known I wanted to have my own shop,” said Ham. Ham has worked for other body shops in the area for the duration of

The front of The Body Shop Garage today

ready for his business. Ham rewired the entire place, installed better lighting, sandblasted brick pillars and repainted.

During the 3 years it took Ham to refinish the shop he continued to work for another shop in the area and built

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Woodward is a small town of about 10,000 with only 3 competing repair shops in the area, so buzz that Ham was trying to own his own shop soon started to circulate the town.

One year ago, Ham bought the building connected to the one he was restoring to make his shop space bigger. Then after almost four years of refinishing the place, the small business loan he applied for went through and he was able to finally get his place running.

“Since it’s been going I’ve hardly stopped,” said Ham, “It doesn’t even seem real.”

The business now sits at about 6,100 square-feet, although Ham is also eyeing another adjacent building and may expand there in the near future. Ham, one other full-time repair man and one part-time repair man,

have seen 6–8 cars each week since the shop opened in the first week of March. Ham’s son Kurt also helps with the shop work.

The inside of the shop floor area; the CocaCola sign on the left wall was in the building originally and Ham has decided to restore it to preserve some of the buildings history

Ham projects that the business will be able to gross about $500,000 per year, based on two years of estimates and invoices of his own work he saved while working at another shop.

See Body Shop Garage, Page 38

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Email: dave.metricparts@gmail.com 34 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who works in a variety of fields and subjects, and grew up in a family of NASCAR fans.

She can be contacted at crsisk@chasidyraesisk.com.

Great Bear Auto Teaches Customers What They “Auto Know” with Chasidy Rae Sisk

From the street, Great Bear Auto in Flushing, NY looks like a typical auto

panded to include education as well as repairs.

Great Bear Auto was founded in 1933 at its present location. Four generations of the Fordin family, headed by Oscar Fordin, was involved in the auto salvage yard business and opened the shop when he grew more interested in auto repair.

Originally, the family Great Bear Auto’s 15,000 square-foot building in Flushing, NY owned many shops in the body shop, but the shop is anything Queens area, but the rest of the fambut typical as I found out after a few ily have sold their shops, leaving only Great Bear which was taken over by minutes of conversation with owner, his son, Larry, then Oscar’s grandson, Audra Fordin.

Great Bear Auto has been in the Bill, and now, Bill’s daughter, Audra.

Audra has been in the automotive same location for nearly 80 years and industry for most of her life. Her prohas been run by the same family; however—concurrent with Audra’s own- fessional licenses and certifications include ATTP, NY State Motor Vehicle ership as its first female owner and operator—the shop’s focus has ex- and Motorcycle Inspector, ASE certi-

fication and certification in AC Refrigeration.

Additionally, Audra serves on the advisory committees for Farmingdale Automotive Technology and GoGreen Auto. She has also received many certificates from Professional Technician’s Seminars.

Great Bear Auto employs five people, boasting specialists in every field including diagnostics, auto body and mechanical repair. The shop utilizes computerized diagnostics and up-to-date equipment throughout its 15,000 square feet including a state of the art alignment machine, chassis cooler, ten lifts as well as modern paint mixers and booths. Great Bear is ASE certified and is currently working on becoming I-CAR certified.

Great Bear does not participate in any direct repair programs as they work for the customer; however, they accept all insurance and are happy to

deal directly with the customer’s insurance company. They also accept most extended warranties and offer discount car rentals.

As part of their efforts to sustain the environment, Great Bear Auto recycles tires, metal, anti-freeze, oil and batteries. Additionally, they have recently completed hybrid and alternate fuel training and now service and repair hybrid and electric vehicles.

Not only is the work completed at Great Bear Auto fully guaranteed, the customer is also educated about the repairs needed and performed.

In order to better serve their customers, they also boast free Wi-Fi, easy access to shopping and transportation and a children’s play area in the waiting room. English, Greek, Spanish and Korean is spoken in the shop to best serve their cosmopolitan customer base, and the shop sends email reminders to their See Great Bear Auto, Page 38

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Hey Toby!

Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com

Getting OSHA-Compliant on Signage, Electrical and Power Tools with Toby Chess

The other day I was teaching I-CAR’s • Do you have a spill containment workers protection program and I had container (absorbent material in a the techs show me their blowers. (I’m small garbage can works, but it must referring to the nozzle blowers on air be marked and placed in accessible hoses here, not hand-held dryers.) I area.) found 3 illegal ones. I asked the question “How much is the OSHA fine for Safety & Signage these blowers?”with and the production David McClune manager said it was $7000. I was in Arizona, not California, at the time. I inquired if the shop had been fined and his reply was “I read your article and I am in the process of getting OSHA approved blowers.” It made me feel that all this work is worthwhile. Let’s get started on the second installment of the article.

California Autobody Association

Year in Quotes

Electrical with John Yoswick • Check all extension cords for damage (repaired with electrical tape and broken grounds are a big no no).

• All high voltage boxes labeled with a DANGER Sign?

• Do you have an OSHA approved • All outlet covers installed? first aid kit?

• Are all energized parts of electrical circuits and equipment guarded against accidental contact by approved cabinets or enclosures?

• Make sure there is a 3 foot barrier with Richard Steffen marked around all electrical boxes.

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• Does the facility have enough fire extinguishers as per city ordinances?

• Are all fire extinguishers charged and are properly tagged (you also have someone in the some of the more common ones that are needed in the body shop.

Flammable and Combustible Materials • Is proper storage practiced to minimize the risk of fire including spontaneous combustion?

• Are all hazardous drums with flammable materials grounded?

• Are all flammable liquids kept in closed containers when not in use?

• Are stored oxygen tanks separated by 25 feet from flammable stored gas cylinders?

any inside storage area of flammable materials?

Power Tools • Are portable fans provided with full guards or screens having openings of ½ inch or less?

• Do all power tools have grounded cords?

sheets and safety programs that are necessary for OSHA compliance.

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shop check and sign the tags once a month)?

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www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 37

Know.” Using an analogy to compare parts of the car to parts of the human body, her comprehensive course teaches women about maintenance, safety, tires, brakes, emergencies, power steering, bulbs, coolant, fluids, and wipers, as well as anything her audience may have questions about. Students also learn some easy do-it -yourself car repairs to enable them to save money.

The course has recently expanded to include an iPhone app, Owner Audra Fordin stands under a lift on the shops work floor available through iTunes, customers to keep them updated on the as well as clothing and a DVD which status of their repairs. are available at www.womenautoSeeking to empower women and know.com. put control back in the drivers’ hands, Due to her general expertise in Audra also teaches a free monthly the automotive industry, Audra Fordin workshop: “What Women Auto also sits on a panel of experts which

Continued from Page 35

Great Bear Auto

Continued from Page 34

Body Shop Garage

Ham wanted to estimate how much work he could produce by himself while finding out if owning his own shop would be financially feasible.

“I’m really an ‘Owner/Operator’ —the business depends on my production too,” said Ham. The business has really taken off since it opened, and Ham has decided that he won’t be taking any DRP contracts in his shop. “I’ve really resisted that [DRPs]; there’s supposed to be no

(l-r) Body man Steven Ferguson, Body man Hunter Wellman, Kurt Ham and owner Kevin Ham all wore Marines T-shirts to pay tribute to our armed forces

steering but as far as I’m concerned that’s what it is,” said Ham. Ham feels as though DRP programs put the insurance adjuster’s job on the body shop, and that the quality of his work is all he needs to rely on to bring plenty of work into his shop.

Ham also feels that the ‘benefits’ of a DRP for a shop—the supposed increase in business from insurance companies driving customers to their DRP

shops—isn’t all it’s cracked up to be.

“How do they know I wouldn’t get 80% of the business they’re supposedly driving to my shop on my own?” asks Ham. Ham says he is confident in his abilities and his work as well as his ability to get work into his shop.

“I’ve already got so much going on, I can’t do the adjusters’ job for them too,” said Ham. Ham grew up in Woodward and met a lot of industry people while working for nearby shops over the years, making finding new customers and vendors for his own shop much easier.

Ham relied on English Color and Supply (see Autobody News May 2011) to supply him with all his paint needs, but they went above and beyond what was expected.

“They’re people that will really stand behind you,” said Ham. Ham buys his paint—BASF brand—as well as a spray booth and a used frame machine from English Color. They also supplied him with some items he needed on consignment; a new paint bank, cabinet, scale, a computer and paint shaker. Ham thought they were going to provide these materials used but they came through with all new supplies for the shop.

The biggest obstacles Ham ran into while getting his business started mostly had to do with securing a small business loan. He applied for the loan in May and was not approved until November.

38 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

participate in a weekly show, Autolab, on ABC radio.

teners with questions about their vehicles.

According to Audra, “Everything I do is against the stereotype of the way the automotive industry is run.”

She cites the rarety of being a woman in charge of an auto shop, her motto to “tell NOT sell,” and her focus on educating the customer about vehicle repairs, Audra also participates in a weekly radio show through ABC safety and after care, as called Autolab evidence of what shops During their show on March 5, can do to make themselves stand out 2011, the panel discussed the recent amongst the competition. law in England to charge women and men the same insurance premiums, Great Bear Auto and they responded to a consumer 164-16 Sanford Ave report regarding the reliability of un- Flushing, NY 11358 derride guards on big rigs. The 718-762-6212 panel, as usual, fielded calls from lis- www.greatbearautoshop.com “I really wanted to get this thing started in the summer because I knew the winter would slow things down,” said Ham. But with the bank loan taking so long Ham had no choice but to start getting the business running in

the winter.

Starting in the winter slowed a lot of the supply deliveries Ham needed and made some of the final building renovations difficult. Capital imSee Body Shop Garage, Page 39

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Americans Oppose Accident Response Fees The Insurance Research Council (IRC) found in a survey that 68% of adults oppose local governments charging accident response fees to individuals involved in traffic accidents, according to their insurance industry survey. Requiring insurance companies, rather than the individuals involved in an accident, to pay accident response fees had little impact on the level of support for accident response fees. Lawmakers in a dozen states have enacted legislation prohibiting local governments from imposing accident response fees. Several more have debated similar legislation. The insurance industry generally opposes local response fees. When told that requiring insurance companies to pay accident response fees could mean higher auto insurance costs, 69 percent of survey respondents disagreed with the idea of local governments charging accident response fees.

“Efforts to fund emergency response services through accident response fees stand in direct conflict with the fundamental notion that certain government services should be paid for

by all taxpayers—not just those who are unlucky enough to actually need the services,” said Elizabeth Sprinkel, senior vice president of the IRC. The study, Public Attitude Monitor 2011, Accident Response Fees, was based on telephone interviews with 1,012 adults countrywide conducted in January 2011 by the market research firm Harris Interactive.

The IRC results track with another survey by Harris Interactive for the Property Casualty Insurers Association of America that also found these fees unpopular. In that survey, three out of four adults (76 percent) said they believe their taxes cover the time and services provided by emergency response providers following a traffic accident and additional accident response fees charged by local governments are not necessary. The IRC results track with those of another survey by the Property casualty Insurers of America (PCI). Three out of four adults believe their taxes cover the time and services provided by emergency response providers following a traffic accident.

Chrysler Repays Government Bailout Loans Six Years Ahead

Chrysler Group repaid $7.6 billion in loans to the U.S. and Canadian governments on May 23, nearly two years after the No. 3 automaker was rescued.

The company said it made a payment of $5.9 billion to the U.S. Treasury and $1.7 billion to Export Development Canada, retiring loans that allowed Chrysler to exit bankruptcy in June 2009. Chrysler completed repayment of the loans six years ahead of schedule.

“Less than two years ago, we made a commitment to repay the U.S. and Canadian taxpayers in full and today we made good on that promise,” Sergio Marchionne, chief executive officer, said.

Previously Marchionne announced, “Chrysler is undergoing an extraordinary industrial and financial turnaround, and Fiat is ready to take control, in order to bring even greater stability and strength to the relationship in the interests of both,” he said.

www.autobodynews.com CHECK IT OUT!

Mazda 3 ‘11

Continued from Page 38

Body Shop Garage

provements like pouring new concrete and laying a new roof were put on hold because they are temperaturesensitive tasks.

Ham also found a lot of the local and state coding enforcement to be a hurdle for opening the business, but ever since it’s been open Ham has had a steady stream of work.

“There’s just been this buzz,” said Ham, “I never thought I could do it—and now I’m getting to do it.”

Ham’s hot rod business has not stopped either. Although he’s been trying to focus more on the commercial, body shop end of the business he’s still been getting calls and requests for his hot rod services—the chief reason for his desire to purchase a third connected building and further expand his business.

“I can’t turn off the hot rod business,” said Ham, “It’s part of me.”

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Gunder Supporters Release Infinity Insurance’s Voice Recordings, Insurer Apologizes Barrett Smith, with Autodamage Experts, has released a voice recording of a call made by a representative of Infinity Insurance to one of Ray Gunder’s customers. Listen for yourself by downloading the WAV file at www.autobodynews.com.

The recordings have been widely quoted in the appealed case which was recently resolved in favor of State Farm.

Smith comments: “This type of underhanded practice goes on more often than most are aware or would like to believe and needs to be curtailed, and one sure way is for it to be exposed to the masses and for those who conduct themselves in this way to fear exposure.

“For those of you who know Ray Gunder and the manner in which Gunder’s Auto Center operates, listening to this recording will likely make your blood boil... it did mine. This “supposed” claim professional is trying their best to interfere with and undermine the relationship between Gunder’s and at least one of its customers. Who knows how many times this takes place?

Continues Smith, “One has to ask themselves, what type of person has

the lack of conscience and nerve to lie to a customer about a shop in which this claim-person has never dealt with or have first hand information to support what they say?

“The simple fact is she doesn’t and it is apparent she is merely doing as told and reading from a prepared word track intended and designed to disparage Gunder’s good name and destroy the confidence the customer had in selecting Gunder’s. A selection based upon their experience in having their vehicles repaired at Gunder’s more than once in years past, and have earned their respect!

“This so-called claim professional likely considers herself to be a honest and ethical person who cares for her family and attends church on Sunday; but on Monday, goes to work and does things that she is told….regardless if right or wrong and does so despite her personal, ethical or moral convictions, just as a mercenary or a paid assassin would go about their business, hiding behind the corporate Infinity Badge.

“So one has to ask why a large insurance company would do this? Sim-

ple, because they have an agenda to control the collision industry and they have done so without being held accountable and have reaped huge profits. Profits that were once the collision repairers.

“The very scary part; they and others who chose to conduct business in this manner will continue to do so to discourage any repairers who choose to step up and say no to underpayments for necessary processes and materials needed to properly serve their clients.”

Ray Gunder adds, “Know this and take serious heed. As long as the rewards outweigh the risks, like a child sneaking cookies, insurers will continue to increase their efforts to profit off the backs of others’ hard work and sweat while avoiding the liabilities that come with underpaid repairs. And if you don’t merely submit and allow them free reign over your business, you too will become a victim of this vile and unethical practice of lies and deceit about you and your business.

“Just like slapping the child’s hand for taking too many cookies, or punch-

ing the bully in the nose when he comes to take your lunch money, it’s only when the risks begin to outweigh the rewards that bad behaviors will change.

“Each repair professional out there needs to make a conscientious choice to either become a part of the solution or remain part of the problem.

The choice is yours. Use it wisely.

“As for Gunder’s, we will continue to do our part to instill accountability and deter insurers from harming us and our customers. There is strength in numbers and together we con conquer these types of practices in a short time frame… regardless, you can be assured I’ll continue to “Pound That Rock.” The person or persons responsible for these slanderous, outrageous Original BMW Parts lies (Lisa Whitehurst being one of North C them) will be held personally accountable. I have to wonder if she knows the effectbmwusa.com her hurtful lies could have the (800) 56 twenty-five families dependent on work Original at Gunder’s Auto Center.”

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Infinity Insurance Apologizes for Gunder’s Auto Center Customer Recordings

On May 3, Infinity Insurance’s Regional Claims Manager, Tim Waldron, called and spoke to Ray Gunder of Gunder’s Auto Center in Lakeland, FL, and repeatedly apologized for the recent comments made by an Infinity claims person to one of Gunder’s customers who captured it on a recorder.

The voice heard is that of Infinity Insurance Claim Person, Lisa Whitehurst saying the following word track to one of Gunder’s Auto Center’s customers: “I spoke with our re-inspector, who went out and re-inspected the vehicle at the body shop,” Whitehurst said in the message. “He said that this body shop has been known to give us issues in the past with other vehicles that they’ve repaired and apparently they are known for overcharging a great deal for the amount of damages and trying to add things that aren’t relevant to, you know, the repairs. They’re also known for holding the vehicle hostage until all the payment is made.”

As a result of the egregious statements made by Infinity’s rep-

resentative, Ray Gunder immediately contacted his legal counsel, Brent Geohagan, who promptly sent a letter placing the insurer’s claims manager on notice and demanding that Infinity Insurance agree and confirm, in writing within 10 days, that such wrongful conduct on behalf of any Infinity Insurance representative will cease and desist immediately with no re-occurrences. In response, Tim Waldron, Infinity Insurance Company’s Regional Claims Manager, called and spoke to Ray Gunder personally and repeatedly apologized for the recent comments and conduct of the claims person and her manager and advised Ray that this was an isolated incident and further assured him that the matter would be addressed and that no such conduct would take place in the future with Gunder’s nor any other repairers stating: “this is not the way Infinity conducts its business.” Ray Gunder says he has accepted the apology.

Xirallac Pigment Plant to Relocate from Japan to Germany Following Tsunami ®

Xirallic® pigments from Merck create glitter and sparkle in automotive coatings and provide a distinct shimmer to enhance color intensity and color purity. Xirallic® pigments are suited for exteriors due to their additional layer, which provides improved weather resistance. The only place where Xirallic is made is in Onahama, Japan, about 45 km from Tokyo Electric Power Co’s Fukushima reactor, which was closed soon after the March 11 magnitude 9.0-earthquake.

The shutdown of the plant affected many of the world’s auto makers, including Ford, Chrysler, Volkswagen, BMW, Toyota and GM. Previously Chrysler told dealers that the company plants to limit orders for vehicles in 10 different colors that employ Xirallic pigment. Ford had already told dealers it could no longer take orders for F-150 trucks and other models using “tuxedo black” and three shades of red.

The plant will be one of the first Japanese parts facilities that will move elsewhere as a result of the disaster.

Germany’s Merck said May 10 it will shift production of Xirallic pigments

from Japan to Germany.

Tsunami and radiation damage forced Merck to halt production in March. Operations at Onahama resumed May 8. Regular production output is expected by June. It will continue until Merck has readied its plant in Germany.

According to The Nikkei, timing and location for the new site have yet to be determined.

“Our top priority is to ensure as soon as possible an uninterrupted supply of Xirallic pigments to our customers around the world,” said Peter Halas, Head of the Pigments and Cosmetics unit at Merck.

These parameters no longer fit a plant 35 miles from the Fukushima reactor, and in a town, where tsunami waves as tall as buildings were observed.

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Action Counts The Good Old Days with Lee Amaradio Jr.

Action Counts

The danger in focusing on the past is until I heard some rumors that we that we sometimes forget to deal with were in financial trouble. People had with Lee Amaradio Jr. to draw their own conclusions the present in a productive manner.

By begun this I mean that we want everything to because we had tightened up so much. be as is was and keep thinking that Yes, we needed to adjust and things soon will return to the way they tighten things up, but we were far were pre-recession. from any financial trouble. Other than I’m not trying to say things won’t complaining about my credit lines getreturn to our past prosperity we ting cut nothing I said ever implied with SheilabutLoftus cannot let it control our actions today. that we were in any financial trouble.

I took a look at my shop recently and But simply because we had begun to realized that I was putting off neces- watch everything and make everyone sary maintenance on almost every- accountable people drew their own thing. My mindset was ‘as soon as we conclusions. get the extra money I will get that The danger is that perception can with Loftus done’ or ‘I will buy thatSheila extra piece of become reality, to many people, so to equipment.’ Without realizing it, I had say, “don’t worry, we are fine” didn’t put everything on hold. seem to boost my staff’s confidence. I I was also unconsciously sending had an employee meeting to try to kill a message to my staff that things were any rumors. That seemed to help but much worse that they actually were. there was still a sense of uneasiness This in turn created a trickle down ef- amongst my staff. This was amazing with Janet Chaney fect that affected the morale of the enbecause what concerned them the tire shop. I didn’t realize any of this most was something that I hadn’t even

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Shop Showcase

Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com

thought about, which was their future employment.

As a leader, I was so focused on tightening up that every time anyone ask to spend money on anything I just complained and said ‘no.’ So the result of my attitude created insecurity among those I employed. The attitude I had taken to belt tightening gave them the feeling that they may be my next cut, which was not the case at all. This doesn’t mean that I wouldn’t terminate a deadbeat employee but unconsiously I was making everyone nervous and this was not my intention. I was adding additional stress to my crew and I was neither a good leader nor helping them produce, as they should.

I’ve realized now that even though times are different they are really better than any of us want to admit.

What I mean is that things could be much, much, worse. Everything comes down to how we look at things. The

message we send our employees with our attitude as owners can really change how they see things. I started doing some much-needed maintenance and purchased some more key pieces of equipment. I haven’t thrown caution to the wind because we need everything we have done or purchased but I let employees know it was happening.

The payoff is already evident because I am watching my staff’s attitude become more focused and more relaxed. I am seeing that no matter how often told them ‘everything is fine’ they needed to see action to feel comfortable about their future with me. I was sending the wrong message by not moving ahead because I was looking back all too often. Now, all of my plans are for the future and where we are heading. Because the “good old days” will only be the “good old days” as long as we allow them to be. Look to the “Good New Days” Ahead…

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Industry Insight with John Yoswick

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Ford Has Located Replacement for Merck-Supplied Japanese Paint Component Ford said May 2 that it has found nonmetallic black and metallic red paints to replace colors that were not available after the March 11 Japan earthquake. “Our team has done a wonderful job of putting in replacement colors and those will be produced in the June and July time frame,” Mark Fields, Ford’s president of the Americas told Automotive News. “The order bank is now open again.” On March 25, Ford told dealers they could not order any more metallic tuxedo black and several shades of metallic reds.

German supplier Merck KGaA, the sole producer of a paint pigment for automakers such as Ford and Chrysler Group, hasn’t been able to operate its Japanese factory because it is too close to a nuclear reactor crippled by the quake (see related story this issue.) Merck’s Onahama factory could take four weeks or more to restart once company engineers can gain access to the facility.

Six other metallic colors in Ford Motor Co.’s lineup will go out of production in the next few weeks and

months because of the shortage of Xirallic, Ford spokesman Todd Nissen said. Those are: Bordeaux reserve, lava red, Kona blue, sangria red, earth and bright magenta, Nissen said. Ford will replace those colors with similar metallic shades, he said. “In the end dealers and customers will still have a full range of colors to pick from,” Nissen said. The color replacement will not affect vehicle pricing.

Ford and Lincoln dealers will receive specifics about when certain vehicles and those various colors will go out of production, and when they can order replacement colors. The updates will come in the next few weeks and months, Nissen said.

For now, Ford will replace tuxedo black on 2011 models with a nonmetallic color simply called “black.” It’s similar to the black Ford offers on the 2011 Mustang.

Tuxedo black is featured on the Ford F-150 and Super Duty pickups, the Ford Expedition and Lincoln Navigator SUVs, the Ford Explorer crossover and the Ford Taurus and Lincoln MKS sedans. The metallic

reds are available on the Super Duty, Expedition, Navigator, 2012 Ford Focus compact, the Ford Econoline van and the Ford Ranger pickup.

The color red fire will be replaced by toreador red, Nissen said.

He did not have other replacement color names yet.

The other outgoing colors with Xirallic affect most of the Ford and Lincoln lineup but Ford will slowly phase those out as it offers the replacement shades, Nissen said.

All of Ford’s replacement colors are paints Ford has used in the past or offers now on certain vehicles, such as the Mustang’s black.

“We’re still using the same paint suppliers,” Nissen said. “The metallic look doesn’t only come from Xirallic.

We’ve used pigments before that gave metallic looks.”

In the case of tuxedo black, Ford didn’t have a similar metallic formulation that could be developed in a short period of time, Nissen said.

That’s why Ford is using the same black it has elsewhere in the lineup while it works on a metallic replace-

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Ford does not anticipate the hiccup in the outgoing metallic colors will hurt sales. And Ford plans to bring the original metallic colors back eventually.

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Women’s Industry Network Conference Held in San Diego

The Women’s Industry Network (WIN) held their 5th Annual Conference May 1–3 at the Westin Gaslamp Hotel in San Diego. WIN was organized to enhance the collision repair industry—and the role of women within it—through education, networking, and sharing of resources.

ganizational effectiveness company which focuses upon the optimization of customer value by aligning corporate objectives with the individuals responsible for delivering results. The co-author of Strategy, Leadership, and the Soul gave her thoughts on business strategy in a male-dominated arena.

Sertl gave copies of her book to everyone attending the keynote and awarded audience member, Amanda Shelly of Saint-Gobain Abrasives, with the ‘Ms. Anthony’ award, represented by a contemporary version of Susan B. Anthony’s trademark alligator bag. Sertl had spoken about An-

The Westin Hotel Gaslamp

Attendance for this year’s conference was up 30–40 percent, according to Chairwoman Kim White.

The event attracted over 150 attendees and featured speeches from motivational and industry experts as well as break out sessions where attendees could receive detailed, personalized tips for their businesses. The event was attended by Autobody News’ Assistant Editor, Erica Schroeder, and Barbara Davies, General Manager and Co-owner.

Speakers discussed a variety of topics designed to enhance business and personal skills as a whole.

“We are proud to offer sessions that will spark new ways of thinking, better performance, and greater understanding of industry issues,” said White.

In the opening session White also thanked the current board for their work this year including the organizations first, and very successful, booth at the International Autobody Exposition and Congress (NACE) in 2010.

The organization was able to increase their membership and exposure with the booth as well as their Women’s Track Classes that they offered during NACE.

Executive Coach Jennifer Sertl The information sessions started with keynote speaker Jennifer Sertl discussing Business Strategy and Leadership in the 21st Century. Sertl is president and founder of Jennifer Sertl Agility3R, an or-

Keynote speaker Jennifer Sertl and ‘Miss Anthony’ award winner Amanda Shelley

thony’s influence on her life and the lives of women everywhere during her speech. She supports the Susan B. Anthony House in her hometown of Rochester, NY.

Mitchell’s Greg Horn Greg Horn, from Mitchell International, gave an Industry Trends update following Sertl’s keynote. Horn began by giving some statistics about our driving habits over the last few years.

Accidents are at their lowest rate since 1950 and that Americans have been driving less as gas prices continue to soar—two factors that will no doubt effect the collision repair industry.

Horn gained nods and chuckles from the predominantly female audience when he compared statistics on male driving habits vs female driving habits.

Male drivers are more reckless and cause the vast majority of accidents.

Horn also recounted that the disruption for Japanese automakers caused by the earthquake and tsunami in March could result in more than just scattered and short-term parts shortages. The most popular Japanese sedans are assembled in U.S. plants using locally sourced parts, Horn said, but parts shortages are more likely for the higher-end brands, such as Lexus, and for smaller vehicles such as the

44 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Honda Fit and Toyota Prius, which are still built and imported from Japan.

But Japan also is the third-largest producer of automotive-grade steel, and exports 43 million tons of it a year.

Decreases in output from those factories (all Japanese companies have been asked to reduce their electrical use by 25 percent) are raising steel prices globally, Horn said. That will likely affect pricing for all sheet metal parts, OEM and non-OEM, and as those prices rise, prices for used parts likely will rise as well.

“So you’re going to see this event’s impact stretch well into next year,” Horn said. “We’ll have to wait and see what the final tally is, but we’re going to see inflation overall in average repair severity because of rising parts prices.”

He also talked about the viability of alternative-fueled vehicles in the coming years due to a federally mandated mpg average of 35.5 by 2016 for all new cars and trucks. This will change the way cars are repaired and the cost of repairs due to new technology and materials used in new vehi-

cles to make them meet these standards, said Horn.

WIN then held their Annual Membership Meeting during lunch on May 2, where they acknowledged the work done by their separate committees this year and announced their new board for 2011-2012.

Current Board Member Mary Kunz not only won the Cornerstone 2011 Award for her contributions in 2010, but was also honored as one of the departing board along with Kim White, Jeanne Silver and Geri Kottschade.

The 2011–2012 Executive Committee was named as follows; Victoria Jankowski, Chair, Jennifer Justice-Haley, Vice-Chair, Margaret Knell, Administrative Vice-Chair, Denise Caspersen, Secretary, and Teresa Bolton, Treasurer. Other Board Members for 2011 will be announced shortly. The goals for the 2011–2012 Board will be to grow the network, build a sustainable funding base and align and build an infrastructure to support WIN’s vision.

The six students who won scholarships to attend WIN this year were

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also acknowledged; Ozarks Technical Community College’s Hannah Nickles, Southeast Community College’s Kendy Maddox, Center of Applied Technology North’s Rickia Mines, College of Western Idaho’s Jessica Crowley, Green River Community College’s Jessica Gauthier, and Southeast Community College’s Mollee Lunkwitz.

Jessica Rose Crowley (L) receiving the Cornerstone Scholarship Recipient Award from Teresa Bolton (ASA) and Mary Kunz (R)

Student Jessica Crowley also won the Cornerstone Scholarship Award, an award presented by Teresa Bolton that consists of a financial contribution from WIN to continue school.

“Being awarded the Cornerstone Scholarship is a gift. I plan to use this

gift to give back to others,” said Crowley. “I aspire to emulate each and every woman that I came in contact with at the 2011 WIN Conference.”

Two Instructor Scholarships to attend WIN were given this year to Michele Charlebois-Didreckson with Ozarks Community College and Rodney Bolton with The Center of Applied Technology North.

Two additional scholarships were given to collision repair center employees to attend WIN, winners were Tona Haywood with Gautier’s Auto Body and Glass, Inc. in King George, VA, and Teresa Super with TGIF Body Shop in Fremont, CA. Day two of the conference began with the Annual Scholarship Walk Presented by Enterprise; over 100 women attending the conference participated in the walk and were able to raise over $5,000 through individual and corporate donations.

On the last day, keynote Lauren Fix speaker Lauren

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Fix opened with a discussion entitled www.takeanap.info.

‘Using Your Female Force for Good The conference also consisted of Car-Ma.’ Fix is an automotive writer (Guide to Loving Your Car, The Car Coach) as well as a former race car driver, mechanic, and driving instructor, known for many media appearances.

Fix focused on ‘what comes around, All 2011 scholarship winners lined up at the Opening Session goes around’ and that women in a male dominated innetworking breakfasts and activities dustry need to focus on empowering designed for members to get to know themselves. each other better as well as several “The glass ceiling is only there if one-hour break out sessions in 5 topic you put it there,” said Fix. areas.

Fix said she was impressed with WIN and the conference itself, she Leadership From the Inside Out had excellent feedback from attendees Keynote speaker Jennifer Sertl spoke after her speech and said the group rein a breakout session using the ally represented all different aspects of metaphor of a light bulb’s wattage to the industry. describe how to ‘separate your focus.’

“I’d never heard of the group She told everyone to decide a [WIN] before being asked to speak at ‘wattage’ of focus they have in a given the conference—but I was thoroughly increment of time (weeks or months) impressed,” said Fix. and to separate that wattage into a certain portion for each category including internal relationships, external Napping is a Good Thing The last keynote speaker of the conrelationships, organization, impleference was Dr. Sara Mednick, Dr. mentation, industry education and reMednick is an Assistant Professor of flection.

Psychiatry at UC San Diego, who reSertl also encouraged attendees viewed research on sleep deprivation to make a list of 18 people they hope and naps. Eliciting chuckles from the audience when she announced she would be discussing ‘napping,’ Mednick explained the link between adequate With attendance of over 150, sessions and REM sleep and networking games were quite busy productivity and creativity. Showto meet in their lifetime. This list is not Dr. Sara Mednick ing that adequate so much about meeting the person, but sleep drastically affects their workabout knowing how to handle the sitforce’s productivity had the audience uation if you were to meet the person. taking the topic a bit more seriously “You can’t admire a quality in by the speech’s close. someone without having that quality Mednick showed charts from her or the potential for that quality in research showing that REM sleep duryourself,” said Sertl. ing a daytime nap can make up for sleep deprivation at night, and enSocial Media couraged businesses to allow approSocial Media guru Helen Todd gave a priate rest breaks, including napping. basic overview of how a business’ soWith more productivity demanded by cial networking presence can reach businesses, Mednick showed that getmore clientele if used correctly. She ting adequate REM sleep is not only gave tips on how often to post on socritical, but is a much more permanent cial media pages, what to post and solution then downing a cup of coffee. other advertising options within social More information about Dr. Medmedia that can garner attention for nick’s research can be found at your business.

www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 45

Todd favored social media giant Facebook during the presentation, citing that most of the conference attendees used Facebook above other social networking mediums to promote their businesses.

She also favored a social media presence over a traditional website chiefly due to the fact that a website is really a ‘brochure’ about your services and business while a social media page is interactive and allows users to create a conversation about your services and business—a marketing tool that cannot be quantified. Social media questions can be directed to helen@socialitysquared.com

You Are Your Business Card Ann Fulton presented a lively discussion about how important it is to dress appropriately for your own professional, age and lifestyle and how to

important your own personal coloring is in selecting clothes and accessories.

Ann is the owner of Never Pay Retail in Denver, CO.

Lean in the Front Office Emphasis has been placed on focusing on lean processes in body shops however going lean also applies to processes and organization in the front desk area of any business. There is a large amount of paperwork involved in any repair shop, and assuring that the paperwork is flowing quickly and correctly throughout the job is essential. Eliminating redundancy and clutter and accurately labeling all supplies is a quick way to get started. The quickest, most efficent way paperwork can flow is the path it should take.

Hot Button Employment Issues Jim Webber, an experienced employ-

and not-so-great. See this blog at www. evilskippyatwork.com and also at www.jimwebber.net.

ment lawyer and human resources manager from Washington state, led this session focused on legal requirements for employers. The session covered harassment issues and prevention, workplace ethics, and tips for supervisors.

Webber Jim Webber pointed out that investigating harassment and discrimination complaints can be stressful and frightening. The outcome of an investigation provides the basis for critical employment decisions and a prompt, thorough and unbiased review is an essential part of both preventing liability and maintaining a healthy workplace.

Webber created the blog Evil Skippy at Work to provide an entertaining view of what makes workplaces great

Sponsors The WIN event was sponsored by AkzoNobel, Allstate, ASE, BASF Refinishing, Enterprise, DuPont, State Farm Insurance, Hertz, 3M, Sterling Autobody Centers, GEICO, Fix Auto, CARSTAR, PPG, Marco’s Collision Centers, CSi Complete, ABRA Auto Body and Glass, LKQ, CAPA, Finish Master, Symphony Advisors, 1-800 Radiator, Sherwin-Williams Automotive Finishes, Mitchell International and CCC Information Services.

“WIN has accomplished so much thanks to the support from our members and sponsors ... we are incredibly fortunate and ever grateful for their generosity,” said Kim White. Please see womensindustrynetwork.com

tions under the statute”, Wilson asserts.

Since 1943, the Automotive Recyclers Association (“ARA”) represents an industry dedicated to the efficient removal and reuse of “green”

automotive parts, and the proper recycling of inoperable motor vehicles.

ARA represents the interests of over 4,500 auto recycling facilities in the United States.

ARA, Congress to Ensure Flood Damaged Vehicles Don’t Enter Used Market

The Automotive Recyclers Association (ARA) is calling on Congress to review implementation and enforcement of the National Motor Vehicle Title Information System (NMVTIS). As many of the nation’s waterways hit historic crests, thousands of motor vehicles from Illinois to Mississippi have been submerged under these waters.

Now more than ever, it is essential that NMVTIS be fully implemented and the underlying statute enforced to help prevent the unknowing sale of these flood-damaged vehicles.

NMVTIS, a national electronic system that provides consumers with valuable information about a vehicle’s condition and history, can play a crucial role in helping ensure that these flood-damaged vehicles are not sold to unsuspecting consumers in the usedcar market.

“After Hurricane Katrina, the Department of Justice (DOJ) reported that truckloads of flooded vehicles were being taken out of Louisiana to other states where they were dried out, cleaned, and readied for sale to unsuspecting consumers in states that do not brand flood vehicles”, said Michael Wilson CEO of the ARA . “NMVTIS must be fully implemented and utilized now so that similar events are not repeated, and flood damaged motor vehicles can be efficiently tracked before unsuspecting consumers purchase these vehicles”, Wilson added.

Flood damaged vehicles are considered ticking time bombs, slowly

being eaten away as water corrodes onboard computers and other vital components like airbags systems.

These vehicles are deemed unfit by insurance companies, but too often are given token repairs and sold to unsuspecting consumers.

NMVTIS helps prevent vehicle histories from being “washed” or concealed because it serves as a national repository of vehicle brand information. Fully implemented, NMVTIS will have data from every state and will be queried before any state issues a vehicle a new title, making it extremely difficult to wash a “flood” designation from a motor vehicle.

Such fraudulent and unsafe practices can only be stopped if all states participate fully in NMVTIS and all “individuals” and “entities” that are required to report to the system are held accountable. “Regrettably, DOJ has limited resources to do this. Congress should intercede and permit individual state enforcement agencies to work more closely with DOJ to identify and implement efficient methods to increased participation.

One way to enhance the program’s success is to allow the fines collected from NMVTIS violators to be directly allocated back into the program and its law enforcement activities. Only with sufficient resources can DOJ and the appropriate state law enforcement colleagues target all businesses/individuals whom are operating under the radar and fulfill their obliga-

46 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

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Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who works in a variety of fields and subjects, and grew up in a family of NASCAR fans.

She can be contacted at crsisk@chasidyraesisk.com.

Keenan Cares About Cars, Charity and Environment, Part 2 with Chasidy Rae Sisk

This is a continuation of our article started in April’s Autobody News. To read part one, see www.autobodynews.com

Solar panels sit off to the left of Keenan’s Middleton, DE, location

Keenan Autobody makes efforts toward using green, not just in their logo, but also in their business practices as part of their effort to protect the environment. Keenan at Middletown, Delaware is the only shop of their eight locations which boasts

solar panels, demonstrating Keenan’s efforts to protect the environment.

Few shops in the country use solar energy to operate, but Keenan opened their Middletown shop in 2009 as a prototype with the hopes of expanding the use of solar power to the rest of their shops in the future. Per Craig Camacho, Marketing Director of Keenan Autobody, “we are in growth mode at the moment and are looking to acquire another shop or two prior to expanding our solar, but yes, we will be moving forward with solar at more of our shops”.

Using 248 solar panels which transfer solar energy into usable electricity, Keenan at Middletown utilizes solar power for 65% of their energy needs. When they are not operating, they resell the recycled energy credits back to the grid. According to Vice President of Keenan Autobody,

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Michael LeVasseur, “this was not only the right thing to do for the environment but it was also a solid business decision”.

Several of the solar panels are located on the front left side of the building, but the majority of the panels are installed in the half acre field directly behind the shop. Keenan plans to expand this project to the rest

Keenan Autobody is the only shop of 8 locations to use solar panels

of their shops eventually; however, in the meantime, Keenan Autobody continues to make other efforts as part of their Green initiative aimed at conserving the environment. All Keenan shops use water-borne paint systems and participate in recycling as part of Keenan’s Green Initiative.

The Middletown shop consists of 14,000 square feet and employs fourteen workers. Like Keenan’s other shops, Keenan at Middletown utilizes all of the latest equipment, such as the car-o-liner, the evo-system and the latest inverter-type resistance spot welders. In addition to being ASE certified, they are considered I-Car Gold and a CIC Class A facility.

All of Keenan’s shops are Verifacts VQ shops and are in compliance with Envirosafe. Keenan is affiliated with ASA, CIC, SCRA, NABC, Fix Auto and DuPont Performance Alliance.

Keenan processes insurance claims according to CMS standards per the industry standard, and they participate in up to 21 direct repair programs at each shop.

Keenan Autobody utilizes a 10step production process in order to provide their customers with quality work, and they also offer a national life-time guarantee, promising to correct any future problems regardless of

where the customer moves throughout the nation. Keenan also participates in many fundraisers for local charities, such as the Ronald McDonald House and Recycled Rides, among many others.

In 2010, Keenan at Middletown was one of the shops which were involved for the first time with the First Responder Extrication Event which benefits firefighters, police and EMTs. During this event, professional trainers instructed these civil servants on the proper ways to extract people from cars in order to avoid explosives and ensure safety practices. Keenan plans to participate in this event annually.

Keenan was founded in 1952 by Joseph Keenan in the back of his garage, but the organization has expanded to include eight shops. Although Don Keenan is not often present at the shop, he is the majority owner and President of Keenan Autobody, and he is available for consultation when necessary.

Not only is Keenan Autobody’s road sign green, but so are their shop practices

Keenan Auto Body's 13th Annual Charity Golf Outing will be held June 9, 12 pm to 8 pm at Penn Oaks Country Club. It is benefitting both the Russella Education Fund and Little Smiles. For more information contact Craig Camacho, or call the shop at: Keenan at Middletown 5077 Summitt Bridge Road Middletown, DE 19709 (302) 279-1007

www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 47

Custom Corner

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Repairing Quarter Panel, Bumper, and Molding: No Time, No Money with Rich Evans

Challenges—they seem like they’re always coming up. Since I did the Car Warriors TV show, where we were always fighting the clock with only 72 hours to build a complete car, it seems like everybody wants to hit me with a time challenge. My buddy, Diggity

hammer. When I cut my panel I made sure that the top and the lower part of the quarter panel still had a spot weld holding it to the inner structure. This way when I come in with the slide hammer the quarter panel is still going to move, because otherwise I’ll have

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in. Take your time as you weld it.

Weld very small areas, keep heat control because you don’t want it to warp and then you’ve got to watch the rest of the metal. If you see it start to suck in, get your nail gun and pull out your low areas. Every time you weld it,

So after getting it welded in, I have a little metal finishing to do. I’ll do a skim coat of mud over it just to true it in, get some of those low spots because I don’t have a lot of time to metal finish it completely with a file.

So I shape it with a skim coat.

check it. This will save you a lot of time and a lot of Bondo™. A lot of guys want to slap Bondo™ over it but try to outsmart the metal. That gives you more seat time under your belt to where you can utilize this process on another project.

I usually never skim coat anything any more than twice—once just to get the 36 grit scratches out and any pinholes. Using the 3M Dynamic Mixing System is key for me. Ever since I started using it I don’t have any pinholes. I don’t have to mix

with Thomas Franklin

Dave, you might know him from the to put this up on the frame rack and Pimp My Ride TV show, called me up pull it. I needed to avoid all that beto throw out a challenge. cause of the time constraints.

Dave backed his 2002 This actually worked out pretty with DickEscalade Strom into a brick wall and ripped about a well. I got my window in there, cut three inch tear down the right quarter out the damaged piece of metal. Now panel. He also hit the rear bumper and I can flatten out the piece that I cut out tore the right molding. Here’s the real to use as a pattern. I get another piece problem: Dave’s got to have his SUV of metal, I use the break and bend it. I back the following day, which is ex- clamp the piece I cut out of the metal actly 24 hours, because he’s got a big on there, scribe it, come back, cut it meeting for a new movie he’s doing out. I actually keep them both together and he can’t show up with his ride and use the nibbler to follow around it damaged. as close as I can get it and then follow Now he’s asking to get this fixed up with the grinder. That means it’s in 24 hours (seemingly impossible, with Lee Amaradioexactly Jr. the shape and size I need. right?) so I’m thinking how to create a If you’re putting your template on process that can make this happen in the outside, you’re going to be a little 24 hours. I’ve got to replace the quarbit smaller on the inside because where ter panel, the rear bumper and the that break is. It’s actually going to molding. To top it off, he says, ‘I’ve cause you to be a 20 gauge short so got zero budget’ so this is a ‘bro deal.’ make sure you keep the length at the I’ve got to do what I’ve got to do and end if you’re coming from the inside. use what I have on the table.

If you want to use the pattern on the inHere are the steps and the side then you’ll be an 1/8th inch longer processes that I used to beat the clock. because you want this piece to fit.

You can judge if I was successful. The So you can either TIG weld it or first thing I decide is ‘no parts,’ we’ve MIG weld it. You’ve got to take your with Sheila Loftus got to fix everything. I see that I need time either way. I’m going to TIG to cut a window—try to keep every- weld it. I’ll actually put it in with the thing as small as possible—especially MIG welder just to get it set where I to cut and replace a piece with another need it and then come back with the piece of metal. The metal was actually TIG welder but before that I need to 20 gauge, so I checked the gauge of shape the metal with the English metal to make sure I was replacing it Wheel and flatten it all out. To get it exactly. the right shape you’re going to need I cut a piece out of the quarter to fit it a couple times, go back and panel, then cut the ripped area out of forth, fit it until you’ve got your conthat so I can flatten the panel. I was tour right. able to get inside it and get the strucAs soon as it’s fitting as close as ture part of it straight using a slide you can get it, you’re ready to tack it

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48 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

Bondo™, I don’t have to worry about the mixture, don’t have to worry about air making the pinholes. If you don’t know about the 3M Dynamic Mixing System, check it out. It’s a big time saver and gives you better quality results, less waste, more productivity.

It’s everything you need in one gun.

Once I get the body work done, I’m come back in with some PCL Primer. I’m going to load the primer up and hit it with some 80 grit, 3M longboard. Then I’m going to come back and get rid of the 80 grit

protection, less welding, less sparks, less interior that has to come apart. It’s actually a stronger bond then a weld.

This stuff is amazing. Technology is changing and you’ve got to change with it. The gun makes it a lot easier to apply it. I’m usually feeling pretty spoiled by 3M, they’re definitely the go-to for me when it comes to new products, anything and everything.

3M just about carries it all.

Getting back to the body work, I lay the panel bonding adhesive on the damage area—the bumper—instead

Now we’re down to about three hours before Diggity comes to pick this vehicle up and that gives me just enough time to put the bumper and the bumper sensors on, apply the molding, and get the tail light back in.

That’s another project, another clock, another challenge under my belt. Diggity comes and is just blown away that I ‘pulled another rabbit out of the hat’ as he put it. I tell people ‘never think negative, always go with the positive.’ Think “hey, I can do that,” put yourself to the challenge.

money to fix it or if you owe a favor to somebody, this is a good way to utilize the money because this job would run about $4,000 maybe $4,500 by the time you got done buying the rear bumper, quarter panel, tail light, molding, and all the materials involved in it.

So Diggity Dave came up $4,500 to the good. He owes me a favor now so I’ll hit him up when I’m ready for my favor and maybe I’ll have to put him through the same test he put me through. A challenge on the table, race

scratches with 150. Then I guide coat it again, come back with 400 wet.

Now I’m ready for paint.

I’m going to apply the sealer, the base coat and the clear coat. Whatever system you guys are using in your shop, go with that.

I still have the bumper and the side molding to fix. I don’t know how many guys are using the 08115—the panel bonding adhesive—but I love this stuff. Every day I find a new use for it. This stuff sands really well, it dries and hardens really true, and it’s flexible—so I’m using it as a plastic repair product. It usually takes 24 hours to cure but if you hit it with a heat lamp you can get it to cure within an hour or two. I know a lot of guys use it for putting quarter panels on, which is a better process, less welding, less work. It’s a better repair at the end of the day because when you’re priming each side of the panel and the inner structure of the quarter panel then it’s taking the place of corrosion

of using Bondo™. This is going to adhere and it’s not going to shrink. I sand it with 80 grit on the plastic. I shape it just like the Bondo™. You want to heat these panels first, shape it, get its best shape, take all the low areas out, file it down with some 80.

Come back for the cracks and any low areas, and fill it with the panel bonding adhesive. I sand it with 80, feather everything with 150, then 320 around that. Then back with the PCL flexible primer. It’s more a flexible, durable product for anything moving. You want to make sure you use the right products, especially on a project like this where I don’t have any extra room to breathe. I can’t take any chances of something messing up on me.

Next is getting into the paint booth, getting my color on, come back in with my Transtar clear with the HT hardener, zap that on there. I didn’t use a two-hour clear which is a bit more yellowish. I apply my three coats as I always do.

Make sure you keep your quality because that’s everything. Make sure you do your fits, stay at your level, ask questions. I’m glad I was able to help a good buddy out, Diggity Dave from Pimp My Ride.

Hopefully, this will help some of you guys in similar situations when you get into a time constraint or even if you want to save a few bucks if you’re doing this for a friend or family or somebody that doesn’t have the

against the clock, at the end of the day, his car’s done in 24 hours and I’m on to the next one—that’s what I live for.

Live, breathe and eat building cars, fixing them—never too good to work on anything.

My daily focus is waking up and having something else to work on and always trying to get the cooler projects. If you don’t use it you lose it, that’s the key to my game. I’m never too good to do something and I expect you guys to be the same way, always try to better yourself at what you do, everyday try to learn something new.

I want to thank 3M for their products, especially what I call the ‘Bondo gun’: the 3M Dynamic Mixing System, and the panel bonding adhesive.

Tune into Car Warriors every Wednesday night on Speed channel, go to my Facebook fan page, Rich Evans Designs, and stay up with me on my daily challenges and projects.

We’ll talk to you next month!

The Auto Glass Replacement Safety Standards Council (AGRSS) promotes safe auto glass industry standards, which an auto glass technician should follow. Consumers should ask these questions before a replacement windshield installation: • Will the old adhesive be removed from the vehicle frame? If the adhesive isn’t removed down to the adhesive manufacturer’s recommended level, the fit may not be tight and the new adhesive won’t bond correctly.

• Will the technician wear gloves to keep from contaminating the glass? If oil and dirt get on the edges, the new adhesive (called urethane) may not bond correctly.

• Will the new urethane adhesive stand up to the high deployment pressure of airbags? The best available manufacturer equivalent urethane adhesive should be used, not butyl tape. Ask for adhesive made by Dow, Sika or the original car maker’s adhesive supplier.

• How long does the urethane adhesive

Rich shows Diggity Dave the cutouts he did to repair the quarter panel

Auto Glass Replacement Safety Standards Council Promotes Fixing Damaged Windshields

As shop owners and techs know, car maintenance isn’t just under the hood.

A cracked windshield is a safety risk.

It can impair the driver’s vision and put passengers at risk.

Most automotive safety experts rank the windshield as the third most important safety component in today’s vehicles, behind seatbelts and airbags.

Laws require seatbelt use and prevent tampering with airbags, but there are no laws that govern replacement windshield installation.

need to set until the vehicle can be driven? Every urethane has a “safe drive-away time.”

For more information, visit www.glassdoctor.com.

Search:

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www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 49

Continued from Page 1

Tornadoes

ley when he approved his request for emergency federal assistance on April 28.

In Hueytown, AL, shop owner Jason Wilson was in his business— Jimmy’s Auto—when he heard the tornado warning sirens. He gathered his family, including his two children, and decided to ride out the storm in the shop.

About an hour afterward, Wilson stood in the parking lot, stunned, look-

The front of the building after the storm

Coats Auto Body and Paint in Raleigh, NC, experienced an intense tornado on April 16 that caused major damage to the shop.

“Even though the building has been condemned and is now gone, we are blessed,” said Co-Owner Tana Malerba, “No one was in the building at the time that the tornado hit.

We also found a tempoThe front of Coats’ Raleigh location before the storm hit rary location six miles ing at the roof of the store. The roof down the road from where we were had been blown off the building as located while we rebuild.” they huddled inside, he said.

The tornado took off the entire “We was fixing to go home and roof of Coats brick building and both heard the siren,” he said to Alabama side walls of the building collapsed.

The bays and shop floor were no website al.com. “We took cover. It’s about all you can do. And then it just longer separated from the outdoors blew the roof off.” after the storm.

Wilson, his wife, his father and One thing that did survive the his two children escaped without a storm was the shop’s Garmat spray scratch. booth. The booth did sustain some damage, but all mechanical components and the attached mixing room were saved despite the all but destroyed building that housed the booth. Between Coats’ employees and local vendors, Coats was able to move their business to neighboring Garner, NC, within eight days. Malerba said the business is just waiting on some outside vendors to complete their work before the shop will be back runInside Coats’ Raleigh location before the storm hit

GA Auto Repair Tax Bill Still Alive in House

Georgia House Bill 388 is still alive in the Georgia Legislature. HB 388 aims to create a sales tax on services of many small businesses.

The bill, if passed, could be devastating to the automotive service industry according to ASA—placing additional tax burdens on automotive maintenance, repair, auto body repair, equipment installation services, brake repair, oil changes, motor tuneups, and engine repair and replacement, to name a few.

Despite the fact that no action was taken on Georgia HB 388 before the Georgia Legislature adjourned, the legislation could be considered during

the special session later this summer.

ASA has opposed the proposed automotive repair tax, and is calling on Georgia independent automotive repairers and consumers to contact their respective representatives in opposition to the legislation.

To view full text of the bill and to see how to send a letter to members of the Georgia state legislature, visit ASA’s legislative website at www.TakingTheHill.com.

www.autobodynews.com CHECK IT OUT!

50 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com

ning at 100%. The Garner location will be a temporary home for the business until they can rebuild their original Raleigh location.

Insurers also began the daunting task of tallying the home and auto damages of their clients on April 29.

Alabama Insurance Commissioner Jim Riding said that he is reaching out to the state’s property insurers to provide a coordinated response to the storms as soon as possible.

“We want to hit the ground running to deliver an effective response

Toyota Motor Manufacturing Alabama

to all Alabamians affected by these tragic storms,” he said to Insurance Journal. “As soon as the companies settle on locations for their disaster response headquarters, we will share that information with the public.”

State Farm Spokesperson Jim McCullen said that said by April 28 the insurer already had 3,300 claims in Alabama and the count continues to rise, according to Insurance Journal.

He said that the company was somewhat fortunate in that it already had teams working in Arkansas in the wake of a series of tornadoes that went through the South Central portion of the country in early April and a quick response should ensue.

The dangerous conditions also halted production at the Toyota and

Boyd Group Reports Strong 1Q Numbers, Sales Up 48.5%

Mercedes-Benz plants in Alabama as of April 28.

A Mercedes plant spokeswoman said April 29 that Mercedes had halted operations because suppliers were unable to deliver parts due to the storms, according to the Tuscaloosa News.

A spokeswoman for the automaker also told Automotive News the plant would remain down until May 2 following the tornado. Toyota spokesman Mike Goss said the engine plant stopped work April 27 when it lost power. He said the power could be out at least through May 1.

Other automotive factories in the region, including Hyundai Motor Manufacturing Alabama in Montgomery, and Honda of Alabama Manufacturing in Lincoln, reported no direct damage from the tornadoes.

However, representatives for Honda said the automaker is evaluating the storms impact on their suppliers all across Alabama, which may affect the company’s output later this spring.

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2010, due us to higher of distribuor tions. Net earnings were $0.9 million, kmangum@autobodynews.com compared with $1.9 million in Q1 2010.

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